Business Plan

Plan or market ... Do I need to plan the business and any other activity or the invisible hand of the market all the rational in its place and will automatically provide the economic security of society as a succession of generations? In this logic operation union "or" Russian reformers out of ignorance or intentionally gave only excluding the value at which, if true an assertion is false then another, and the whole sentence is not true even when both positions are valid.

In fact the logical result of combining two arguments in the connective disconnecting disjunction can acquire true meaning and, in cases when each of them valid. Therefore, quite naturally, this apparent, but rather false than real dilemma has long been refuted by many years of experience of developed countries and brutally protracted crisis in the Russian economy, one of the fundamental causes of which was a hasty destruction of the planning elements in the country. After all, life itself has convincingly proved that social progress is not achieved in the way of opposing the plan and the market, and reasonable and appropriate combinations thereof.

Business planning - not so much, and not only one of the essential elements of socialism, but rather a natural result of the search of human society the most efficient and effective tools and methods of its historical development and survival. It took place and exists in one form or another and the relevant regulations in all socio-economic systems in any enterprise, the family from the very beginning of its appearance and even the individual.

World experience shows that the distribution of scarce resources and products can be efficiently implemented in three ways:

- Based on market self-regulation;

- A system of adequate planning mechanisms;

- By the simultaneous use of market and planning began. Not by chance the author of Japan's economic miracle C. Okioto persistently pointed out the necessity of combining market mechanisms and government planning and regulation.

Planning in general as the greatest achievement of the human mind is almost a natural and necessary element of human behavior and at home and at work. Man's work always involves a conscious purposeful activity to achieve the desired result, the image (plan, draft) of which he is perfectly at the start of any work, including in business. Since it is known that self-organization is not the primary properties of things, such as disorganization (chaos) and requires special care, administration, whose most important functions is to plan. Therefore, planning can be considered as the design process of creating order out of disorder and increase its degree, which reduces the uncertainty or entropy in this case the system of entrepreneurship.

Planning for industrial and commercial activity is not only possible but essential for all legal forms of enterprises. The market does not suppress or deny the planned character at all, but merely moves it mainly in the primary production units - enterprises and their associations. Even in a country as a whole range of necessary planning is not fully replaced the invisible hand regulating the market. And in the West and the East of the state define its strategy for economic development, global environmental problems, major social and scientific and technical programs, the distribution of the national budget, defense, etc. At the level of the same enterprises are not only strategic (long term) samoplanirovanie, but the detailed development of operational ( current) plans for each office, and even the workplace. In schedule (monthly, decadal, quarterly, semi-annual) are specified in detail the objectives and tasks set by promising to medium term. Production schedules include information about orders, providing them with material resources, the degree of capacity utilization, and their use with the timetable for the execution of each order. It also provides for the renovation of existing facilities, replacement of equipment, training of employees and others in market conditions, stable enterprises make extensive use of the advantages of planning in the competition.

Not dividing the disjunction "plan or the market, and integrative formula" and the market and the plan "is inherently more fully meets both the personal interests of business and the overall regional and state the problem of lifting the economy and accelerated the crisis.

Numerous special studies in the United States has long identified a strong positive correlation between planning in market conditions and the success in conducting business in different business areas. Known for certain that in their planning firms have significantly better economic results than those without systematic planning.

Therefore, anyone who seriously wants to do business and make profits in the market environment must be well thought out and fully justify a detailed plan - a document that defines the strategy and tactics of doing business, the choice of objectives, techniques, technology, production and sales. The presence of a well-designed plan allows you to actively develop business, to attract investors, partners and credit resources. It also offers an opportunity to:

- Identify ways and means to achieve these goals;

- Maximize the competitive advantages of the enterprise;

- To prevent erroneous actions;

- Keep track of new trends in economics, engineering and technology and use them in their activities;

- To prove and demonstrate the validity, reliability and feasibility of the project;

- Mitigate the impact of the weaknesses of the company;

- Determine the need for equity and cash;

- Time to take protective measures against various risks;

- Better use of innovation in its activities;

- Objectively assess the results of industrial and commercial activity:

- Justify the economic viability of areas of enterprise development (project strategy).

Simultaneously, the plan is a guide to action and implementation. It is used to test ideas and goals to improve business management and forecasting performance. As the implementation and change of circumstances the plan may be refined through adjustment of relevant indicators.

See Sample Business Plans

Permanent reduction of the business plan in line with new conditions makes it possible to use it as a tool to assess the practical performance of the enterprise.

Therefore, to overcome the systemic crisis in the Russian market mechanisms should be combined with the indicative-contractual planning and development of business plans in a system of interrelated targets of which are the basis for long-term contracts between enterprises and the formation of the budgets of all levels of governance in the country.

But only in 1999, the Ministry of Economy of Russia found that the choice of strategy and development plans for the development of production and sales in a market as one of the priorities of the reform of enterprises, and above all, budget-making that allows you to:

- Really predict revenue based on financial plans of key enterprises in the region;

- Improve the management of public enterprises and enterprises with equity participation of the state by controlling the execution of their plans;

- Develop quality business plans, investment projects and to prepare professionals and business leaders to attract investment;

- Create conditions for the rational use of budgetary resources earmarked for state support to enterprises;

-Strengthen the culture of corporate governance in a market environment.

In Tula, Kaluga, and several other areas have been successfully implemented programs to implement the strategic plan and develop business plans for enterprises. Wide implementation of such programs can improve the efficiency of utilization of productive capacity in the country by 20-30%.

Unfortunately, many people, especially beginners, Russian entrepreneurs tend to underestimate the role of corporate planning in general, and preparing a credible business plan in particular. In this case, they rely on their own intuition and experience, established informal ties to the business community, seemingly good market prospects, and other circumstances. And many of them face serious difficulties when trying to clear and definite system to articulate their vision of business and even the justification of economic and financial indicators. Preparation and compilation of a detailed business plan for turning them in the most difficult duty that still need to perform and not something like a high professional level.

Develop specific business plans in most cases, a creative process based on the consideration not only the general laws of business and specific conditions, personal experience and knowledge of the entrepreneur. Depending on the actual circumstances of the preparation of business plan can be arranged in different ways:

- By entrepreneurs with relevant experience:

- A team of entrepreneurs, which will continue to implement the project;

- The specialized company for a fee.

In all cases, invaluable guidance to students in the preparation of projects and dissertations, as well as developers can have a professionally drawn up sample business plans as typical examples that may serve them well-known example for a detailed justification of its own plan. Of course, in each case, any plan is specific as to the subject of activity and the manner of its implementation, and in qualitative and especially quantitative terms - pricing, cost standards resources, markets, and other metrics. And therefore need to make appropriate adjustments presented in this section of our site rough plan that could serve as a good guide, a basic foundation, groundwork feasibility of their project, and help save time, effort and money the employer or learner.

The practice of using model projects that take into account the specifics of various spheres and sectors of business, quite widespread not only among aspiring entrepreneurs, but also in the professional community development business plans. However, published in Russian books and pamphlets presented mainly with various common methodological techniques of business plans, revealed their role and importance in achieving the goals and little is systematically based sample design decisions.