Business Growth Plan Example
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What to Look for When Writing a Business Growth Plan
As a rule, a business plan can be used for:
- attraction of external financing;
- enhancing efficiency of financial management in the organization;
- strategic planning;
- planning of business restructuring.
Let’s consider the features of the business plan types mentioned above.
A business plan for the attraction of external financing. In the business plan created for attraction of investments, a comprehensive evaluation of how the realization of the project will influence the general cost of the company and what benefit an external investor will get should be included. A market oriented approach is in the basis of such a business plan. With the help of marketing research, the structure of demand for goods and services are studies which are expected to be sold, the competitive situation is analyzed, and the schedule of expected sales is created. Then required sources of all functional departments are counted which are required for achieving the planned volume of sales on the market. Moreover, financial indexes of the business are presented: profitability, payback period, the volume of external financing, financial coefficient, and so on. In the conclusion, the evaluation of financial and technical risks is presented.
A business plan as a tool of financial management. While using a business plan for inner planning, it is considered as a basis for management of corporate finances – effective budgeting and controlling. Wherein, any short-term or long-term aim (from new product market launch to modernization of informational system) is considered a separate project for which cash flows, and financial result and efficiency are counted. Thus, a business plan from a market oriented document becomes financially oriented. As a result of financing, the company gets a tool for planning financial activity for a mid-term perspective (1-3 years). Money allocated for implementation of effective projects is reflected in the general investment budget of an organization.
The structure and order of creating a business plan for internal usage in general coincides with the structure of a business plan for attraction of investments. The single difference is in the degrees of reasonableness of initial data: inner business plans are usually made according to less strict requirements (for example, while creating a business plan for an external investor, as a rule, the meaning of the used discount rate should be substantiated, and while creating a business plan for financial management of the company, a discount rate is often used which is set on the level of minimal return on investments required by auctioneers).
A business plan as a tool of strategic planning. A business plan for strategic planning is a description of a strategy of achieving global aims of the company for a certain period (as a rule, 3-5 years). It includes analysis of external changes and consistency of the company development level to requirements of the external environment by each functional area (marketing, production, management, finance) or by structural departments (centers of responsibility) of each period (for example, a year). Ideally, such plan should be created during the company opening, and then complemented and changed in accordance of the development stage.
A strategic business plan is also created like an investment plan, but with lesser detailing, and it can be used either for the inner aims of the company (planning, control), or for presentational functions (presentation of business for future buyers, investors, partners).
A business plan for business restructuring. The aim of the business plan for restructuring of the enterprise is a transfer from an inefficient (current) state to an efficient one (for example, with help of isolation of non-core types of business or transfer from linear-functional organizational structure to a divisional structure). Such a business plan is organizationally oriented and must contain answers to the following questions:
- Which departments (lines of business) will be closed, changed, or created?
- What is the organizational structure of the company?
- How will the business process of new structural departments be organized, and how will they be coordinated in the frame of the entire company?
- What centers of financial responsibility will be highlighted in the new organizational structure?
The Main Requirement for a Business Growth Plan
General requirements for the business plan must be taken into account for the proper preparation of the document. This is important, since the business plan is the first source that potential investors will be acquainted with. After reading the plan, it should create an impression of the company as the most profitable way of investing money. This approach does not mean that you need to worry too much about writing catchy phrases or praising your own business.
The structure of the plan should correctly concentrate attention, and at the same time remain unobtrusive. General requirements for the business plan include the following:
- For convenience of perception, the content should not exceed 40-50 pages.
- The plan should contain more concrete facts and figures; all secondary or reference information should be presented as additions.
- Preparation of summary: this is what any business plan starts with. The summaries are what investors read first of all. It should leave an impression, and at the same time have a volume of no more than a page.
- The text should be stated in clear and accessible language. Requirements for the development of a business plan allow for the use of different terminology, but the terms should be common and understandable.
- The business plan should be based on realistic data and have an honest analysis.
- Assumptions and possible forecasts are not allowed in the text if they can not be confirmed by calculations.
- All risks that may arise during the work should be described in the text.
- The plan should contain a description of strategies, the use of which will be directed to the future development of the business.
If all the requirements for preparing a business plan are met, then it will not be difficult to achieve the desired result.
The preparation of a business plan should have a clear time frame. Do not stretch the writing of the project for a long period, because the economic conditions change quickly enough and you may simply not have the time to take them into account, or the calculations already made will have to be done anew, which will prolong the time even longer.
If collection of data for the plan takes a rather long period of time, it may be possible to make amendments or changes to the draft, or additions will act as annexes. The timing of preparation is important to consider for investment projects, since sometimes a small hitch in the work can lead to the loss of the investor. Therefore, it is better to decide in advance how long the preparation of the project will take and leave spare time for unforeseen situations.
Requirements for the development of a business plan in each specific case may vary depending on the characteristics associated with the work of enterprises. Each section of the business plan should be given full attention, and important points should not be missed. Requirements for the business plan which are worth paying special attention to are as follows:
- Price. It is calculated both in constant and current prices. Information on constant prices is relevant in the case of an investment project.
- Taxes. Requirements for the business plan include compulsory calculation of taxes, which the owner of the enterprise will be obliged to pay. It is necessary to take into account the organizational and legal form of the enterprise. For convenience, you can specify the period of payment of taxes, which will avoid penalties for their late payment.
- Payback of the project. The period during which the payback on the business will occur is indicated. The time frame will depend on the type of enterprise, the services it offers, and the work performed.
How a Business Growth Plan Template Can Help You
Requirements for writing a business plan may seem difficult to stick to. In this case, we offer you to read through a business growth plan example presented on our site to understand how to deal with your own paper. When writing, you should adhere to the recommended structure that is used for writing our samples.
Your business plan should be informative to investors. As you can see, each business plan growth strategy example presented on our site is informative and includes all necessary details. The sample is especially important for those who have never written any business papers. You will get an understanding of what to include in your paper and what to avoid.
On our site, you can find more than just a business growth plan sample. Depending on the type of project, you can find guides on how to write growth business plan, samples, and topic ideas. Using such help if you don’t have writing experience is mandatory. If you correctly take into account our recommendations for business papers, it will allow you to spend less time on writing, take your paper to a higher level, and attract new investors ready to invest money into the development of the enterprise!