Thanks to business plans companies may thoroughly assess investment profitability. A business plan is prepared when a development investment is being planned, a business is planned to be expanded or when a business profile is to be changed. This service is also essential for potential investors, stockholders, banks or experts qualifying the project for financial support in order to assess the project. This document must be presented when you apply for investment loans, grants and funds for your own projects.
As such, a business plan may be developed for both internal or external needs.
- External functionality – the business plan is a project presentation in order to obtain funds from investors.
- Internal functionality – the business plan is a document that will enable you to manage the project and facilitate you that task.
A project is evaluated both on the basis of a financial model containing financial projections, and based on a detailed project description composed of the following elements:
- Plan summary
- Business characteristics
- Market analysis
- Marketing strategy
- Production profile
- Financial plan
- Evaluation of project profitability (NPV and IRR calculation)
A well-developed business plan may be a key to the success of the entire project. The summary is often the factor that will encourage the investor to read the entire business plan or to reject the project, if they find the summary to be unpromising.