Business plan


In this part of business plan, show readers the current financial result (assuming you're running a business for some time), and forecasts regarding its shape in the future. Regardless of whether your project is an extension of existing operations, or a completely new venture, business plan readers will want to know what venture capital is needed for its implementation. Show your funders the information about the amount of money you need and how you plan to use it. Depending on the size and the nature of the investment industry, present your plan in terms of several years. For larger projects, describe the project for over, for example, 10-12 years . The length of the plan is proportional to the size of the project, with a recommended minimum period of 5 years. In the financial plan, specify the source of revenues, introduce direct costs associated with the service provided. Subtract from the profit, the direct costs of revenue - this way you get the gross margin. Depending on its size think whether it is consistent with your expectations, if not - you need to reduce costs. Define and calculate other costs such as spending on promotion, advertising, office rent, cars leasing, etc. In the financial plan, include information on the expected investment costs and depreciation. Subtract from the gross margin all the operating costs and see what is the net margin. Try to compare the net margin ratio divided by the amount of revenue (volume per year) to other businesses in this industry. If this value is much lower, think about why this is happening. Maybe you have not chosen effective methods of operation or the cost is too high? This is the most common cause. Try to reduce costs, but do not overdo it. In this way, you get gross profit.