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A business plan is a management tool common in a market economy, the basis of a specific marketing, financial, logistical, personnel policy of running your own business.
The development of a business plan is mandatory in the formation of new enterprises, the reconstruction of existing ones, in order to justify the effectiveness of investments.

The main sections of the business plan are as follows:

1. Description of the enterprise.
2. Characteristics of products (services)
3. Marketing Plan
4.Plan production
5. Financial plan and risk prediction

The resume should occupy no more than one page and contain the following information:
– full name of the company;
– offered products or services, to whom they will be offered with a description of competitive advantages;
– explanations why the consumer needs this product or service;
– the purpose and task of the enterprise;
– forecast of sales, profits and cash flow;
– how much money is needed, and when the results of the invested funds will be visible.

Description of the enterprise.
This section contains all information about the company – the organizational and legal form, the date of creation, the purpose and characteristics of business activities, a description of products or services, patents, licenses, etc.

Characteristics of products (services).
This section is a detailed description of the business. The advantages and disadvantages of competing firms are also indicated.

Marketing plan
The general marketing strategy outlines specific principles for the distribution of products (services), pricing methods, and return on invested capital.

Production plan
It describes the geographical location of the enterprise, especially the location of buildings, the advantages and disadvantages of the current location. The description of the production process (services), qualification requirements for employees, the schedule of works are also indicated.

Financial plan and risk prediction.
This section summarizes the previous sections and is provided in terms of value. To substantiate a business plan, three basic forecasts should be prepared for a period of 3-5 years: a profit and loss forecast, a cash flow distribution project, a loan recovery project. Important are the break-even point calculations and the justification of the project risks.

The last section of the business plan determines the necessary amount of money for the development of the project, the types and amount of guarantees that are provided to investors and a brief description of the prospects for increasing capital.

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