Business planning

The birth of new investment projects implies a preliminary economic justification of their feasibility, the subsequent planning of the necessary costs for their implementation and the expected final results. Business planning allows the Initiators and Entrepreneurs not only to justify the need to develop an investment project, but also the possibility of its implementation in the current market conditions.
The main objects of business planning in modern realities are highly profitable and competitive investment projects. As you know, the modern market, based on the observance by all producers and consumers of a balance between supply and demand and the measurement of their income and expenses, will always give preference in lending and financing to those production, business or commercial offers that in the future will give the greatest socio-economic result . Business plans are mainly intended to facilitate the entry into the market of highly competitive new types of goods and services.
Therefore, any investment business project should have an appropriate business plan for substantiating the optimal indicators of production and sale of goods and services both in the domestic and foreign markets. In market relations, the business plan itself turns into a kind of product, the promotion of which in the surrounding enterprise external banking and credit or financial and investment environment should bring maximum income to the developers of the new project. In other words, a business plan is a valuable intangible asset that has its value and is capable of being one of the methods to ensure investment safety.
Business plans are one of the types of on-farm or intra-company planning. Business plans are developed for various objects or processes related to the design or creation of new firms and their divisions, development and delivery of the required goods and services to the market, reconstruction of enterprises and expansion of output, improvement of technology and organization of production, improvement of the quality of goods and labor productivity . They substantiate a specific socio-economic goal, as a rule, having a completed creative result: profit growth, increasing market share, satisfying customer requirements, accelerating the turnover of products, creating new jobs, etc.
The chosen socio-economic goal of the company for the upcoming period of its production, business or other activities should be most fully reflected in the developed business plan. A comprehensive business plan is developed for newly created or opened firms and enterprises in accordance with the project, including detailed technical and economic calculations for all sections and indicators of the design, construction and development of a new production of goods and services. In existing enterprises, business plans are usually created in order to achieve the corresponding strategic, tactical or operational areas or tasks related to the further development of production or functional units, restructuring or expansion of the organization, etc. With stable and stable operation of the enterprise, a business plan can be aimed at updating fixed assets and developing new technologies. With a significant decline in production during the transition period, the business plan should include the search for new markets, expanding sales of products, etc. In some cases, the development of integrated business plans is required, in others, local business projects. Business plans are needed to open any new project or business to all manufacturers and entrepreneurs.
A business plan is a document that describes aspects of a future commercial enterprise, analyzes the problems it may encounter, and also establishes ways to solve them. The business plan should ultimately give the right answer to such important issues of market relations as the possible cost of the project and planned revenues. Every entrepreneur should know how much the new project will cost and whether this business will bring income, and if it does, then when and what is the degree of risk? The answers to these questions of rational management in complex market relations are given by a correctly drawn up business plan. Best practices show that in the conditions of the market all manufacturers need to draw up plans for both long-term and current activities. This means that all entrepreneurs and initiators should also have business plans. The preparation of a business plan is the first step of each novice entrepreneur in the field of investment projects, economic, commercial or investment activities. The development of such a plan requires not only a comprehensive economic assessment of the future business project by professional managers, but also the direct participation of the entrepreneurs themselves and senior managers of the enterprise or company. Joint participation in the preparation of business plans of economists and initiators is especially necessary in enterprises that have many years of experience in the preparation of tactical and strategic, in particular five-year and annual plans.
In the conditions of the modern market, the main planned tasks of each enterprise are reduced to solving the following issues:
  • what type of product or what new business to choose to enter the domestic and foreign market;
  • what will be the market demand for the offered goods and services and how will it change;
  • what resources and in what quantities will be required to organize a business project;
  • how much the necessary resources will cost and where to find reliable suppliers;
  • what will be the costs of organizing the production and sale of products and services in relevant markets;
  • what can be the market price for this product and how will competitors influence it;
  • what may be the total income and how it should be distributed among all participants in the business project;
  • What will be the indicators of business performance and how can they be improved.

Alfa Resonance Capital Ltd offers investment project initiators and entrepreneurs their qualified services in writing and substantiating truly investment-attractive business plans in accordance with international standards UNIDO, EBRD, KPMG, TACIS, BFM, etc.