Every good entrepreneur should first do market research before starting a business and find out what are the chances of realizing his/her business idea. You should draw up a business plan. A business plan is also required by banks when applying for a loan. A business plan is also a necessary part of the application for a residence permit. A good business plan is the foundation of any long-term successful business. A business plan is also the most effective way of reducing business risk. A business plan helps a business to estimate the sources of finance it will need. The business plan covers the technical, legal, organizational and economic aspects of the business.
A business plan helps to answer questions such as:
– Where do I get the idea?
– How much money will I need to get started?
– Will I be able to compete?
– Where do I start?
– Should I hire someone?
The technical side of the business includes activities related to the business, i.e. what products or services the entrepreneur wants to provide in the marketplace. The starting point is the choice of the right technology, material and human resources.
The correct choice of the organizational structure enables the enterprise to determine what the division of labour will be within the enterprise, whether the enterprise will also be subdivided into smaller business units and what the relationships between them will be. This is also related to the decision on the location of the enterprise.
The economic side of the business examines whether the business will be profitable. It is about answering the questions of what capital appreciation can be expected, what are the current possibilities, but also the possibilities in terms of the prospects of establishing itself on the market. The economic analysis includes:
– calculation of expected sales revenue, expected costs and profit,
– calculation of the capital required to finance the needs of the business,
– calculation of indicators of expected production efficiency.
The business plan should answer 3 questions:
1. Where am I? – the situation of the company at present
2. Where do I want to be (where am I going)? – the goals for the future
3. How will I get there? – the way to reach the business goal
There are 3 types of business plans:
1. founding business plan (business plan),
2. strategic business plan,
3. financial plan.
The key parts of the business plan are an analysis of the market, the business environment, the competition as well as economic trends in the area.
Founders’ budget
A founding budget is also part of the business plan. All financial resources can be broken down as follows:
1. expected revenues, costs, economic result, overview of financial flows,
2. the amount of long-term and short-term assets, the sources of their financial cover,
3. the expected profitability of the enterprise, return on equity.
Calculation
The most significant factor that most influences sales is the price of the product. If the price of the product is to influence the customer and hence the sales of the product, the firm must pay maximum attention to it. The basis of pricing is costing. Every business must measure all the costs involved in creating a given product. Costs enter into the calculation of the price of a product or service and are divided into:
– direct – directly related to the production process (direct material costs, direct wages and other direct costs)
– indirect – they contribute indirectly to the cost of the product or service (e.g. other operating costs)
If you want some inspiration for a business plan when starting your (online) business, you can ask our team of economic experts for help.