How to write an investment project plan?

Source: Internet
Author: User

For start-up risky enterprises, the business plan is particularly important. A brewing project is often vague. by formulating a business plan, both positive and negative reasons are written. I will repeat it one by one. Risk entrepreneurs can have a clearer understanding of this project. In this case, the business plan first promotes the enterprises to be created in the Plan to the risk entrepreneurs themselves.
Secondly, the business plan can also help sell the risky enterprises in the plan to venture capitalists. One of the main purposes of the company's business plan is to raise funds. Therefore, the Business Plan must be described as follows:
1. What is the purpose of enterprise creation? Why do we need to take the risk and spend energy, time, resources, and money to create a risky enterprise?
2. What are the funds required to create an enterprise? Why is it so much money? Why are investors worth injecting money into this?
For risky enterprises, business plans can determine specific directions and priorities for enterprise development, so that employees can understand the enterprise's business objectives, and inspire them to work toward a common goal. More importantly, it enables the enterprise's investors, suppliers, and sellers to understand the company's operating conditions and objectives, and persuade the investors (original or new) provide funds for further development of enterprises.
For the above reasons, the business plan will be the most important business document written by venture capitalists. So how should we develop a business plan?
I. How to write a business plan

For business plans that neither give investors sufficient information nor make investors excited, the final result can only be thrown into the bin. To ensure that the Business Plan can "hit the target", risk entrepreneurs should do the following:

1. Focus on products
All details related to the enterprise's products or services should be provided in the business plan, including all surveys conducted by the enterprise. These questions include: What is the development stage of the product? What is its uniqueness? What are the methods for enterprise distribution products? Who will use enterprise products? Why? What is the production cost and price of the product? What is the plan for enterprises to develop new modern products? Bring the investors to the enterprise's products or services, so that the investors will be as interested in the products as the risk entrepreneurs. In business plans, entrepreneurs should try to use simple words to describe everything ?? Commodities and their attributes are clearly defined for entrepreneurs, but others are not necessarily clear about their meanings. The purpose of preparing a business plan is not only to convince investors that the company's products will have a revolutionary impact in the world, but also to convince them that the company has arguments to prove it. The Business Plan's presentation of products should make the investors feel: "Oh, how wonderful and encouraging this product is! "

2. Dare to compete
In the business plan, risk entrepreneurs should carefully analyze competitors. Who are the competitors? How does their products work? What are the similarities and differences between competitors' products and their products? What is the marketing strategy adopted by competitors? It is necessary to clarify the sales volume, gross profit, revenue, and market share of each competitor, and then discuss the competitive advantages of the enterprise over each competitor, which should be presented to investors, the reason why customers prefer the company is: The company's products are of good quality, fast delivery, moderate positioning, and suitable price. The business plan should convince its readers, this enterprise is not only a strong competitor in the industry, but also a leader in determining industry standards in the future. In the business plan, entrepreneurs should also clarify the risks brought to the enterprise by competitors and the countermeasures taken by the enterprise.

3. Understand the market
The business plan should provide investors with in-depth analysis and understanding of the target market. It is necessary to carefully analyze the impact of economic, geographic, occupation, psychological and other factors on the behavior of consumers who choose to purchase the enterprise's products, and the role of each factor. The business plan should also include a major marketing plan, which should list the areas where the company intends to carry out advertising, promotions and public relations activities, and clarify the budget and income of each activity. In the business plan, we should also briefly describe the company's sales strategy: Do companies use external sales representatives or internal staff? Do enterprises use reseller, distributor, or franchisee? What type of sales training will enterprises provide? In addition, the business plan should pay special attention to the details of sales.

4. Indicate the course of action
An enterprise's action plan should be unsolvable. The business plan should clarify the following questions: how can enterprises push products to the market? How to Design production lines and assemble products? What raw materials are required for enterprise production? What production resources do enterprises need when they own? What are the costs of production and equipment? Do enterprises buy equipment or rent equipment? Explains fixed and variable costs related to product assembly, storage, and delivery.

5. display your management team
The key factor for converting an idea into a successful risky enterprise is to have a strong management team. Members of this team must have a high degree of professional technical knowledge, management skills, and years of working experience. It should give investors the feeling: "Look, who is in this team! If this company is a football team, they will always be in the World Cup finals! "A manager is responsible for planning, organizing, controlling, and guiding the company's actions to achieve its goals. In the business plan, we should first describe the entire management team and its responsibilities. However, we should introduce the special talents, characteristics, and accomplishments of each management personnel separately, carefully describe the contributions each manager will make to the company. The management objectives and organization diagram should also be clarified in the Business Plan.

6. Excellent plan summary
The plan summary in the Business Plan is also very important. It must make Readers interested and eager to get more information. It will give readers a long-lasting impression. The plan summary will be the last part of the content written by venture capitalists, but it will be the first thing investors should look at. It will extract the most relevant details from the plan: including the company's internal basic information, the company's capabilities and limitations, the company's competitors, marketing and financial strategies, the company's management team, and so on. If a company is a book, it is like the cover of the book. Doing well can attract investors. The venture capital has the impression that "the company will become a giant in the industry and I can't wait to read the rest of the plan. "

Ii. Business Plan content

1. Plan Summary
The plan summary is listed at the beginning of the Business Plan book, which is the essence of the concentrated business plan. The plan summary covers the key points of the plan, so that readers can review the plan and make judgments in the shortest time.
The Plan Summary generally includes the following: company Profile, main products and business scope, market overview, marketing strategies, sales plans, production management plans, managers and their organizations, financial plans, capital requirements, etc.
When introducing an enterprise, we should first describe the idea of creating a new enterprise, the formation process of the new idea, and the enterprise's goals and development strategies. Secondly, we need to explain the current situation, past background, and business scope of the enterprise. In this part, we should make an objective comment on the past situation of the enterprise and avoid mistakes. Pertinent analysis tends to win more trust, making it easy for people to recognize the company's business plan. At last, I would like to introduce the background, experiences, experiences and expertise of venture capitalists. The quality of entrepreneurs often plays a key role in the performance of enterprises. Here, entrepreneurs should try their best to highlight their advantages and express their strong enterprising spirit, in order to give investors a good impression.
In the Plan Summary, enterprises must also answer the following questions:
(1) The nature and scope of the industry and operation of the enterprise;
(2) content of main enterprise products;
(3) Where the enterprise's market is, who are the enterprise's customers and what needs they have;
(4) Who are the partners and investors of an enterprise;
(5) who is the competitor of an enterprise and what is the impact of the competitor on its development.

The abstract should be concise and vivid as possible. In particular, it is necessary to explain in detail the differences between enterprises and the market factors for successful enterprise acquisition. If an entrepreneur understands what he is doing, the abstract will only take two pages. If an entrepreneur doesn't know what he is doing, the abstract may take over 20 pages.

2. Product (service) Introduction
During the evaluation of investment projects, one of the most important issues for investors is whether or not the products, technologies, or services of enterprises can solve the problems in real life. Or, can risky enterprise products (services) help customers save money and increase revenue. Therefore, product introduction is an essential part of the business plan. Generally, the product introduction should include the following: product concept, performance and characteristics, main product introduction, product market competitiveness, product research and development process, new product development plan and cost analysis, product market prospect prediction, product brand and patent.
In the product (service) introduction section, entrepreneurs should give a detailed description of the product (service), which should be accurate and easy to understand, so that investors who are not professionals can understand it. Generally, product prototypes, photos, or other introductions must be attached to the product introduction. Generally, you must answer the following questions about the product introduction:
(1) What problems do customers want their products to solve and what benefits do customers get from their products?
(2) What are the advantages and disadvantages of enterprise products compared with those of competitors? Why do customers choose their products?
(3) What protection measures the enterprise has taken for its own products, what patents and licenses the enterprise has, or what agreements have been reached with the manufacturers that have applied for patents?
(4) Why does the product pricing of an enterprise make enough profits for the enterprise? Why do users purchase enterprise products in large quantities?
(5) Methods used by enterprises to improve product quality and performance, and plans for developing new products.
Product (service) content is more specific, so it is relatively easy to write. Although praising your product is necessary for sales promotion, you should note that every commitment made by the company is "a debt" and efforts should be made to fulfill it. Remember that entrepreneurs and investors are establishing long-term partnerships. Empty promises can only be satisfied with the moment. If an enterprise fails to fulfill its promise or pay off its debt, its reputation will inevitably suffer great damage, and thus it is the disdain of a real entrepreneur.

3. Personnel and Organizational Structure
With the product, the second step for entrepreneurs is to form a competent management team. The quality of enterprise management directly determines the size of business risks. High-quality management personnel and a good organizational structure are important guarantees for good enterprise management. Therefore, venture capitalists will pay special attention to the evaluation of the management team.
Enterprise Managers should be complementary and team-oriented. An enterprise must have professionals responsible for product design and development, marketing, production operations management, and financial management. In the business plan, the main management personnel must be clarified to introduce their abilities, their positions and responsibilities in the company, their past Detailed experiences and background. In addition, the company structure should be briefly introduced in this part of the business plan, including: organization chart of the Company; functions and responsibilities of each department; heads and key members of each department; remuneration System of the Company; shareholder list of the company, including the share options, proportions and privileges; Board members of the company; background information of directors.

4. Market Prediction
When enterprises want to develop a new product or expand to a new market, they must first make market forecasts. If the prediction results are not optimistic or the prediction reliability is doubtful, investors must take on more risks, which is unacceptable for most venture capitalists.
Market Prediction first needs to predict the demand: Is there a demand for such products in the market? Can the degree of demand bring the desired benefits to the enterprise? What is the scale of the new market? What is the future trend and status of demand development? What are the factors that affect the demand. Second, the market forecast should include competition in the market ?? Analysis of the competitive landscape faced by enterprises: What are the main competitors in the market? Is there any market gap that is conducive to the enterprise's products? What is the estimated market share of the Enterprise? What kind of reaction will this enterprise bring to competitors when they enter the market? What is the impact of these reactions on the Enterprise? And so on.
In the business plan, the market forecast should include the following content: market status overview; competitive vendor overview; target customers and target markets; market position of the enterprise's products; market regions and features.
Risk enterprises should make predictions on the market based on rigorous and scientific market research. The markets faced by risky enterprises are inherently more variable and unpredictable. Therefore, risk enterprises should try their best to expand the scope of information collection, pay attention to the prediction of the environment and use scientific prediction methods and methods. Risk entrepreneurs should keep in mind that market forecasts are not just imagined, and wrong understanding of the market is one of the main causes of business failures.

5. Marketing Strategy
Marketing is the most challenging stage in enterprise operation. The main factors that affect marketing strategies include:
(1) Consumer features;
(2) product features;
(3) The situation of the enterprise itself;
(4) Factors in the market environment. The factors that ultimately affect marketing strategies are marketing costs and marketing benefits.

In a business plan, marketing strategies should include the following:
(1) Selection of marketing institutions and marketing channels;
(2) marketing team and management;
(3) promotion plans and advertising strategies;
(4) Price Decision.

For start-up enterprises, it is difficult to enter the stable sales channels of other enterprises due to low product and enterprise visibility. Therefore, enterprises have to temporarily adopt high-cost and low-efficiency marketing strategies, such as door-to-door sales, advertising large commodities, making profits to wholesalers and retailers, or selling profits to any enterprise that is willing to distribute goods. For developing enterprises, on the one hand, it can use the original sales channels, on the other hand, it can also develop new sales channels to adapt to the development of enterprises.

6. Manufacturing Plan
The production and manufacturing plan in the business plan should include the following content: product manufacturing and technology equipment status quo; new product production plan; technical upgrade and equipment update requirements; quality control and quality improvement plan.
In the process of seeking funds, in order to increase the pre-investment evaluation value of enterprises, risk entrepreneurs should try to make the production and manufacturing plans more detailed and reliable. Generally, the production and manufacturing plan should answer the following questions: how is the factory and equipment required for the enterprise's production and manufacturing? How can we ensure the stability and reliability of new products when they enter mass production; the introduction and installation of equipment, who is the supplier, what is the design of the production line and product assembly, and the pre-period and resource demand of the supplier; formulation of production cycle standards and production operation plans; material demand plans and their assurance measures; methods of quality control; and other related issues.

7. Financial Planning
Financial planning requires a lot of effort for specific analysis, including the cash flow statement, balance sheet and income statement preparation. Liquidity is the lifeline of an enterprise. Therefore, when an enterprise starts or expands, it needs to have a thorough plan and strict control in the process. The profit and loss statement reflects the profitability of the enterprise, it is the business result of an enterprise after a period of operation. The balance sheet reflects the situation of the enterprise at a certain time, investors can use the ratio indicators obtained from the balance sheet to measure the company's operating conditions and possible return on investment.

Financial planning generally includes the following:
(1) condition assumptions of the business plan;
(2) estimated balance sheet, estimated income statement, cash income and expenditure analysis, and source and use of funds.

In this case, a business plan outlines the things that risk entrepreneurs need to do in the financing process, while a financial plan provides support and instructions for the business plan. Therefore, a good financial plan is critical for assessing the amount of funds required by a risky enterprise and improving the possibility of obtaining funds from a risky enterprise. If the financial planning is not well prepared, it will give investors the impression of lack of experience of enterprise management personnel, reduce the evaluation value of risk enterprises, and increase the operational risks of enterprises, so how should we make a good financial plan? This depends first on the prospective planning of a risky enterprise? Whether to create a new product for a new market or to enter an existing market with more financial information.
Start-ups focusing on a new technology or innovative product cannot refer to existing market data, prices, and marketing methods. Therefore, it needs to predict the growth rate and possible benefits of the market, and sell its ideas, management teams and financial models to investors. Risk Enterprises preparing to enter an existing market can easily describe the scale of the entire market and the improvement methods. A risky enterprise can plan the sales scale of the enterprise in the first year based on the information obtained from the target market.
The enterprise's financial planning should be consistent with the assumptions in the Business Plan. In fact, financial planning and enterprise production planning, human resources planning, marketing planning and so on are inseparable. To complete financial planning, you must clarify the following issues:
(1) What is the outgoing amount of products during each period?
(2) When will the product line expand?
(3) What is the production cost of each product?
(4) What is the pricing of each product?
(5) What distribution channels are used, and what are the expected costs and profits?
(6) which types of people need to be hired?
(7) When will the Employment Start and what is the wage budget? And so on.

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