When you think about your project, the question arises: “Where to start?”, “How to create a business plan yourself?”, “How to check the feasibility of your idea?”, “Is it possible to make a business plan from scratch?”
Everything turns out to be extremely simple. Only 4 steps:
- We choose the idea that we will implement (or several ideas);
- Consider whether the idea is interesting and realistic for us;
- We study the market and make a business plan based on the information collected, ie describe the steps of the project;
- Implement the idea!
The process of implementing a business idea and preparing a business plan is shown in the scheme.
It is also important to consider the following points to start the activity:
- Implement an idea that you are interested in, that inspires you;
- Start small: with a minimum investment of money, with test samples;
- Set specific goals and objectives;
- Be sure to have a plan of action to implement the idea. It is very convenient to do it in the form of a business plan. A business plan will also help test the idea for viability and realism. For example, it will be clear at once what initial investments are needed, what their payback period is, and whether it suits you.
How to create a business plan from scratch on your own?
What is a business plan? It is a document that specifies the steps to implement a project, including:
- initial investment: how much start-up capital is needed for the project and whether you need it.
- market analysis: what stage the market is at, how much competition there is, what market share can be taken;
- costs: what resources we need for implementation and in what time frame, their cost, i.e. what costs will be incurred;
- income: what income we can expect from the sale of the product or service (sales forecasts);
- financial result: what kind of profit is possible. Profit is the difference between revenues and expenses.
- financial analysis: in what time frame to implement the project and return the investment; the construction of projected financial statements;
- other information.
A business plan is prepared for 3-5 years, depending on the size of the project. If the project is small, with little initial investment, it’s enough to forecast information for 3 years.
Structure of business plan
A business plan consists of the following sections, you can read more about the components of a business plan in detail in the article “Components of a business plan:
Section 1. “Firm Capabilities (Summary).”
Section 2. ” General description of the company”
Section 3. “Types of goods (services)”
Section 4. “Market analysis”
Section 5. “Marketing and sales plan”.
Section 6. “Production plan”
Section 7. “Organizational plan”
Section 8. “Risk Assessment and Insurance.”
Section 9. “Financial Plan.”