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home / resources and information / how to draw out a business plan

How to draw out a business plan

What is a business plan?

A business plan is the basic presentation of an idea and modalities of implementing it

The accomplishment of a realist business plan necessitates a careful study of the market, a correct estimate of all expenses and resources necessary for obtaining the desired result and last but not the least, as good as possible a knowledge of the competition and its strategies.

Why do you need a business plan?

A business plan is useful not only to the external financers, but also to the company owners, because many entrepreneurs must draw up a business plan only when it is requested by a potential investor, in fact, its drawing up must be one of the first steps in starting each business.
On drawing up the business plan, the entrepreneurs are “forced” to take into account aspects which would slip in a superficial approach, but this plan helps you getting a realistic idea over the business without ignoring the existent risks and problems.

How is drawn up and what must contain a business plan?

The business plan does not have necessarily a physical structure; it may vary depending on the informational requirements which it must answer – for example, depending on:

The accomplishment of a classic business plan may last up to 6 months and may have as a result a very extended document (20-100 pages), but it must be taken into account the fact that one of the most important stages for the accomplishment of a business plan, is that of market research, the examination of the competition, of products and its strategies in the identification of potential customers and the products demand on the market.

There are basic elements, which are found in the most business plans:

Many problems concern a foreign entrepreneur, when entering a new market, especially a new, atypical and still unforeseeable market like the Romanian market:

Beside these questions, you should find the answer to a series of issues which involves you personally, but which are related directly to the future of the business envisaged by you:

The problems may address to many aspects which make the “charm” of quotidian life of the entrepreneur and in order to render such problems inexistent or, at any rate in order to keep them under control, it is necessary that the future entrepreneur finds in advance, still before entering a new market, the answers for the above-mentioned questions, adapted to the realities of this market.

The most frequent mistakes, done when entering on a market, less known or unknown market, are the following:

1. The aptitudes and the professional qualification of the staff are insufficient
2. No clear strategy is adapted to the new market
3. The insufficient knowledge of the local competitors
4. The excessive dependency on certain suppliers
5. The excessive dependency on the parent company
6. Insufficient capacity for recruitment and selection of the personnel on the new market
7. The ignorance of the legal regulations of the new market
8. Insufficient financial resources
9. Wrong assessment of the operational expenses
10. Overestimation of the capacity to achieve a profit
11. The imprudent policy within the investments fields
12. The erroneous planning of the liquidities
13. Incorrect calculation of the costs
14. Inadequate and incomplete accounting 
15. The ignorance of the fiscal obligations
 16. Inadequate choice of business partners
17. Inadequate choice of the location

Draft of the business plan - Private kindergarten

The content of the business plan:

  1. summary
  2. Company’s presentation
  3. marketing plan
  4. production activity
  5. Company’s management
  6. financial plan
  7. addenda

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Summary:

Company’s presentation

Marketing plan (market study)

Production activity

Company’s management

Financial plan

Addenda

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