Business plan consulting
Business plan consulting – A business plan is a report in which an entrepreneur describes his or her business process. This report, also called a business plan, is often prepared to attract potential investors or partners, while an entrepreneur can identify the strengths and weaknesses of his plan.
Business plan to questions such as: “Where are we now?”, “Where are we going?” And “How do we get there?” answers.
In other words, a business plan is a descriptive and comprehensive writing about the business of an institution, group or entrepreneur. This plan contains detailed reviews of a company’s products or services, market and customers, competitors, human resources, financing sources, technology and technical dimensions of the product or service, and so on. One of the most important functions of a business plan is that by formulating it, the entrepreneur can identify the internal and external factors involved in a business and examine their effect on their activity.
Another function of a business plan is to make it easier for investors or lenders to decide whether or not to invest in a plan. In fact, due to the estimated operating costs and revenue forecast of the project, the necessary information is provided to investors or lenders about the risks in the project as well as the expected profit. Usually the most important part of a business plan is the value proposition of the product or service. The business plan must have the necessary arguments to convince people that the product or service meets the needs of customers and at the same time has superior features over other competitors or alternative products.
Also, the executive summary is the first part of any business plan that is completed at the end and should not be more than one page, and at the same time, it should briefly and comprehensively describe the advantages of the plan as well as the revenue model.
Business plan content in Business plan consulting
As mentioned in the definitions, a precise, predetermined and fixed definition of a business plan cannot be provided, but a business plan can be defined contingently in different situations. Naturally, the business plan framework and the type and amount of information contained in business plans are also different.
Business plans are a tool for decision making. They do not have a predefined and fixed content. The content and format of a business plan is determined by its goals and audience. The general rule for determining the information that should be included in a business plan is: All the information needed to decide whether or not to pursue a goal.
In fact, for what organization (for-profit, non-profit, or government) is a business plan written? Which stakeholders (internal or external) use it; And what is the purpose of writing the plan (receiving a loan, attracting an investor, selling a business, entering the stock market or…); How a business plan is defined, its components, and how it is written.
Organizations can be for-profit or non-profit. For-profit business plans usually focus on financial goals. Nonprofit business plans and government organizations focus on service goals.
A business plan can be prepared focusing on the organization or outside it. Out-of-organization schemes pursue goals that are important to external stakeholders, especially financial stakeholders. These plans accurately represent the information of the organization and the implementing team. The main external stakeholders are for-profit organizations, investors and customers, while in the case of non-profit organizations, they are donors and employers of services. In the case of government agencies, foreign stakeholders, including taxpayers, higher-level government agencies, and international lenders such as the Fund
The International Monetary Fund is the World Bank, and economic institutions such as the United Nations, and development banks.
In-house-focused business plans consider intermediate goals to achieve outside the organization. They may consider developing a new product, a new service, a new system, a financial restructuring, or an organizational restructuring as a goal. An in-house business plan is usually developed based on a balanced scorecard or key success factors to measure its success. A business plan that identifies internal goals but provides only general guidelines for achieving those goals is called a strategic plan.
The purpose of writing the design and its audience can also affect its format and content. For example, in the business plan of a non-profit organization, the plan and mission of the organization are coordinated. Banks are very concerned about non-payment of debts, so a business plan written for a bank should clearly show that the company has the ability to repay its debts, the main concern of venture capitalists is the amount of initial investment, its justifiability, and The final price of the business is when the investor leaves it. A business plan written for the sale of stocks should show why existing resources, growth opportunities ahead, and sustainable competitive advantage make the company more expensive in the future. Changing the brand and mentality of the customer, employer, or community can also be the goal of business plans.
A business plan that is written with the aim of changing the mindset is called a marketing plan.
Reasons to write a business plan
Basically, a Business plan consulting is written so that it can guide the organization in its activities to achieve its goals in the first place. In addition, the main application of a Business plan consulting is when the organization needs to convince an individual or organization to do something. Although a business plan is usually used to raise capital, it is also used in other situations such as the sale of a business and the merger of two companies (Merger & Acquisition) and a project venture agreement (Joint Venture).
1) Obtaining a loan: In order to obtain a loan, whether in the form of issuing participation bonds or bonds or receiving money from a bank, it is necessary for the company to present its business plan. In case of issuing bonds, the bank or issuing institution will perform a financial credit rating based on the company’s business plan and will determine the interest rate and issue the bonds accordingly.
2) Attracting Investors: One of the most important applications of a business plan, especially for entrepreneurs who are in the process of starting their own business, is to attract start-up capital through venture capitalists. These investors provide part or all of the start-up capital or, in some cases, the development plans of a company in exchange for a partnership in a business.
3) Participate in business plan competitions: Participating in business plan competitions (Business Plan Competition) is another motivation for writing a plan. Such competitions, which are held at the university and national levels in different countries of the world, pursue the goal of entrepreneurship development. Young people, especially students, write plans to turn their ideas into for-profit and non-profit businesses, and by participating in competitions, they will benefit from prizes and help to start their own business.
4) Presence in growth centers and technology parks: Growth centers and technology parks have been set up in the country for several years. These centers allow established companies to have facilities such as offices, consulting services, office facilities, and some financial facilities. Applicants to attend centers and parks must first prepare their business plan and be able to demonstrate the justification and technology of their business.
5) Listing on the stock exchange: Companies that intend to offer their shares to the public, need to provide full details of the current situation of the company, future plans, and their forecasts for the future of the company to the stock exchange organization and buyers. The business plan of these companies should be from a coherent and thoroughly accurate financial sector, including financial analysis, especially stock valuation.
6) Negotiate and receive business concessions: For various reasons, two companies may enter into negotiations with each other. The company may intend to represent another company, or enter into a joint venture with the company, or produce under a company license. In all these cases, it is necessary for the bidding company to present its business plan before or during the negotiation. Naturally, in such projects, the main focus is on the current state of the company and its existing capabilities and potentials.