BUSINESS PLAN DEVELOPMENT

Business plan is a document which is required by investors (banks, owners, government authorities and others) or managers to make a decision about investments in the project and its implementation. So business plan should open all important for the interested in the project people. Thus, business plan should disclose all aspects relevant to those concerned parties.

Developing a business plan can be time consuming and involve different specialists (consultants, financiers, technical experts, lawyers and others). Organization of the joint working group should be directed to speedy and quality solutions of tasks assigned by a client.

We provide a wide range of services in the investment planning: preparation of feasibility studies and business plans for investment projects, detailed examination and express assessment of investment projects, project’s financing plan optimization, developing recommendations on project promotion and implementation.

Our advantages:

• Full complex of services: from the project expertise till marketing researches and project implementation accomplishment
• Long term relations with investors and credit institutions
• 10 year experience of business plan development
• Business plan development in the international standards (UNIDO) considering Russian specifics
• Work with highly qualified experts and analysts in different fields

Our consultants are ready to assist companies and organizations in the field of business planning. In addition, we are ready to assist investors in evaluation and expertise of reviewed projects.

Work on investment project preparation includes 3 stages:
1. Expert conclusion formation;
2. Development of a business plan for investment project;
3. Project presentation to potential investors.

We can fully realize all stages or work only in those questions where consultants’ assistance is needed..

Depending on the tasks which client faces, the work on business plan preparation may vary from 2 days of the finished business plan express estimation to the strategic business plan development, when consultants together with client’s experts work on from scratch all aspects of investment projects management: from market research and forecasting sales to the analysis of equipment suppliers.

Further you will see a complete work plan on investment project preparation for presentation to investors.

Detailed description of the works performed

Objective: To prepare an expert conclusion on financial solvency and economic efficiency of the project, to create financial and economic model.

Responsibilities:
Assessment of completeness and reliability of project’s input data;
Project risks analysis;
Calculations, necessary for financial solvency and economic efficiency of the project assessment.

Result:

• Expert conclusion including the following sections:
  • Description of goals and interests of project’s participants;
  • Assessment of the project’s feasibility;
  • Assessment of the project’s financial solvency, including estimation of the overall needs in the project financing;
  • Economic efficiency estimation from the perspective of the owner and operator of the project;
  • Determination of the basic parameters under which the project provides an acceptable level of yield and financial solvency.
• Project’s financial model
• The list of missing document and materials.
• Recommendations of changes in the investment project concept

Consultants accompany the enterprise’s specialists on input data preparation, necessary for project commercial feasibility substantiation and business plan development. Solution of specific tasks on input data preparation can be accepted by consultants themselves. In particular:

• Marketing researches: substantiation of the sales volume and project competitiveness assessment;
• Project carrying costs substantiation;
• Investment costs substantiation, including non-current assets creation costs and necessity in working capital financing.

The result of this work is properly prepared and accurate information that will be used by the enterprise for business plan preparation.

Objective: To prepare a document containing a substantiation of project’s feasibility and commercial solvency, which corresponds client’s goals, Russian and international standards, as well as the usual business practice.

The main goal of the document is to attract an investor. Information provided in the investment memorandum allows investors to get an idea about the company and the project, to compare their principles of economic and corporate culture and business management with the actual state of affairs in the company. If necessary, the document can be formed in both: Russian and English language.

Responsibilities:

Necessary market researches (consumers, suppliers of equipment and resources);
Analysis of the current state of existing enterprise;
Calculations necessary to substantiate project’s financial solvency and economic efficiency;
Selection of the optimal sequence of project implementation;
If the project is realized at the operating enterprise, its efficiency is assessed with the help of “increase” method and financial solvency is defined considering cash flow of the enterprise.

Result:

• Marketing research and recommendations on company’s market strategy
• Recommendations on the choice of equipment suppliers.
• Recommendations on optimal business form of the company.
• Recommendations on optimal structure of the company.
• Business plan including the following main sections:
  • Summary: general information about the project (goals, participants and project state at the moment of feasibility assessment), description of benefits and proof of project’s feasibility;
  • Project initiator reputation: evaluation of current state and prospects of existing enterprise, credit history, work experience in certain industry;
  • Marketing aspects of the project:
    • General characteristic of the industry and development forecast;
    • Features of project’s products;
    • Capacity and market structure description, expected share of the market;
    • Competitors;
    • Main consumers;
    • Distribution policy characteristics (sales system, promotion methods, pricing);
  • Production technology:
    • Technological scheme of production;
    • Substantiation for the choice of technology and equipment suppliers, contractors;
    • Need for resources.
  • Organizational plan
  • Schedule of organizational events and financial transactions during the investment period of the project;
  • Financial plan of the project;
  • Project’s feasibility assessment methods;
  • Description of conditions for calculations;
  • Project’s financial solvency assessment;
  • Project’s credit rating;
  • Detailed assessment of the project’s economic efficiency from the project operator’s point of view. Assessment includes the calculation and interpretation of indexes:
    • Simple and discounting payback period of investments;
    • Project’s NPV;
    • ROI;
    • Project’s IRR;
    • Maximum rate of interest on debt financing
  • Sensitivity analysis. Delimitation of borders in the basic parameters changes when the project provides an acceptable level of yield and financial solvency;
  • The analysis of the project’s implementation risk and arrangements on their prevention;
  • Conclusion.

Sections in this list give only main and more spread questions raised in business plan. The format and the content of this document differ depending on the project’s essence and client’s goals. Documents presented in bank are not alike the business plan for venture fund, external investor attraction requires information disclosure different from the materials presented to holding top managers. Considerable influence on requirements renders the industry to which the project corresponds. We are well acquainted with all refinements in this sphere and we will offer you materials structure which corresponds analyzed project the best.

After finishing the work on business plan the project is being given for acquaintance to potential investors. At this stage the client can use our services on project maintenance.