TALLINN UNIVERSITY OF TECHNOLOGY

SCHOOL OF BUSINESS AND GOVERNANCE

DEPARTMENT OF BUSINESS ADMINISTRATION

BUSINESS PLAN
Business definition:

Authors :

Date of submission:

Tallinn
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TABLE OF CONTENTS

Type chapter title (level 1)..............................................................................................1

Type chapter title (level 2).............................................................................................2
Type chapter title (level 3).........................................................................................3
Type chapter title (level 1)..............................................................................................4
Type chapter title (level 2).............................................................................................5
Type chapter title (level 3).........................................................................................6

Note: All information in business plan is confidential

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Business name:
Contacts:

1. SUMMARY

Includes brief overview of the business plan: brief idea, the problem and results of business plan, need for
investment; when and how it will be used; how much of it will be financed with a loan; the net profit of
the first three years, etc., about 1 page.

1.1. PROJECT COST

1.2. LOAN REQUIREMENT

Amount, duration and interest rate of the loan; reference to the loan amortization table or copy the table
here)

2. GENERAL DESCRIPTION OF ENTERPRISE

 Legal form:

 Date of (planned) registration:

 Total equity capital:

of that
- monetary payments (amount):
- non-monetary payments (list and values):

Name Type of share, value No of shares Contributions

subscribed
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2.1. ENTERPRISE’S MISSION, VISION AND OBJECTIVES

Mission statement

Vision statement

Short term objectives (1 year):

Long term objectives (2-3 years):

3. ENTREPRENEURSHIP ENVIRONMENT, INDUSTRY AND

COMPETITION

3.1. ENTREPRENEURSHIP ENVIRONMENT

Possible environmental influence of the external environment over the next 3 years and their impact on
the business plan (PEST concept)

3.2. INDUSTRY ANALYSIS AND TRENDS

Analyse the industry, current status, profitability and possible changes in the industry (new products,
technologies) in the next three years, and their impact on business projects, the opinions of experts and
market leaders (see: Porter 5 Forces)

3.3. COMPETITION ANALYSIS

Describe and analyse direct competitors through their strengths and weaknesses. Add also (with another
colour) what is different in your company (can use Blue Ocean strategy canvas).
Give an overview of non-direct and potential competition
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4. BUSINESS MODEL
Add a canvas (Osterwalder)

4.1. PRODUCT/SERVICE

4.1.1. Nature of product/service

Product/service description and value proposition in detail, its particular characteristics, composition,
maintenance etc.
(Suggested to use also drawings, graphs and visuals)

4.1.2. Factors affecting the demand of the product/service

Give proof! (Statistics, expert opinions, market research etc.)

If you want, fill table below or create your own

Factors influencing demand Direction Unit of Information source

of impact measure
(+/-)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

4.2. CUSTOMER SEGMENTATION

Customer specification, descriptive characteristics (geographic, demographic, behavioural).

4.3. REVENUE

Revenue sources. Sales estimations (share) by customers, regions; by products or packages

5. MARKETING PLAN

5.1. MARKET DESCRIPTION AND EVALUATION

Size of entire market – available and potential market

Bases of target market selection (NB Look your customer segmentation), specification of market share
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5.2. MARKET RESEARCH

You make a separate assignment about the market research, write here a summary of the description of
the survey and interview and main results.

5.3. POSITIONING

Positioning strategy. Find your position among direct competitors: differentiate, address and articulate.
Explain and choose according pricing policy

5.4. MARKETING

Start with aims – what you want to achieve

general overview of communication and marketing principles

5.4.1. Channels

Description of sales and/or communication channels (place)

Estimate costs (e.g. fees, rent)

5.4.2. Advertising and sales promotion

Establish tools (print, outdoor, social medial) and plan

expenses

5.4.3. Total marketing costs

Type of cost price volume Sum

6. OPERATION PLAN

Change based on your idea needs – delete chapters of no relevance and add new if necessary

6.1. The company's explanation for selection of the location

Transport hubs, vendors, markets (customers) proximity, engineers, networks etc

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6.2. Acquisition of production building

Based on business needs, existing capital and a suitable location, and infrastructure (construction,
purchase of needed space rental cost)

6.3. Process map, description of manufacturing and technological scheme

Good place for visualisation, schema drawing

6.4. Production effects of the external environment

E.g. amount of waste, handling, cleaning equipment

6.5. Access to raw materials, price, possible changes

6.6. Manufacturing capacity

Investment drawn planned capacity, the percentage of growth; length of the production cycle, the
exchange coefficient

6.7. Equipment necessary for the production

Device type, new, existing or second hand, important features and price

6.8. The company's asset insurance

Types of insurance based on operational needs, the cost

7. ORGANISATION AND MANAGEMENT

7.1. Company’s management

Name Position Area of responsibility Monthly salary

Explain the choice of responsibility

7.1.1. Company executives - description

Strengths and weaknesses of the executives, areas of responsibility

7.1.2. Management structure

Graph
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7.2. Labour requirement

Position Labour requirement Salary (per month) Salary (per year)

(no of people)
2018 2019 2020 2018 2019 2020 2018 2019 2020

TOTAL

Explain employees’ availability in the region, possible changes in the labour market, the labour price
change forecast, salary explanation

NB! For fair calculation add (local) tax burden to salary (then name it “Staff cost” instead of salary) or
separately

• Employees’ availability in the region, possible changes in the labour market, the labour price change
forecast

• Employee training and motivation plan

8. STRATEGY
8.1. Companies establishment plan

Describe (draw) main activities in timeline (costs go to 9.1) with responsibility indication

8.2. SWOT analysis

Strengths Weaknesses

Opportunities Threats

Beneath the table, write analysis of each factor

8.3. RISK MANAGEMENT

Evaluate risks for business. How to minimize the weaknesses and threats
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9. INVESTMENTS

9.1. Launching the project

(Expenses by months before production has been started)

Activity 1 2 3 4 5 6 7 8 9 10 11 12 TOTA
L
Writing the business plan
Company registration
Renovating/adjusting
space
Buying equipment
Advertising

TOTAL

9.2. Machinery and equipment

Machine/equipment Number of Cost of one Total cost Depreciation (EUR in

units unit (EUR) (EUR) a year)

TOTAL

9.3. Investment plan

Planned investments

1. Fixed assets
1.1. Land
1.2. Buildings
1.3. Machinery and equipment

2. Current assets
2.1. Cash
2.2.

Total investments

9.4. Financial resources

9.4.1. Financing

Years

1. Equity

2. Debt (loans)
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2.1. Short-term loans

2.2. Long-term loans

3. Capital lease

TOTAL

9.4.2. Loan amortization table

Loan balance at the

beginning of the Loan Loan balance at the
Period period Interest Loan principle payment end of the period

10. EXPENSES

10.1. Variable costs

10.1.1. Variable raw material costs

Name of the material Measuring Unit Consumption Number Total cost in
unit cost per unit (?) of a year
products
in a year

TOTAL

10.1.2. Variable staff costs (cost for employer)

Occupation Staff costs (EUR a Staff costs (EUR a
month) year)

TOTAL

10.1.3. Total variable costs

Cost EUR a year

1. Raw material costs

2. Staff costs
3.

TOTAL
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10.2. Fixed costs

10.2.1. Fixed staff costs (cost for employer)
Occupation Planned staff costs Planned staff costs (EUR a year)
(EUR a month)

TOTAL

10.2.2. Other fixed costs

Cost EUR a year

TOTAL

11. PRICING CALCULATIONS

11.1. Self-cost
Cost
Product 1 Product 2 Product 3
PRODUCTION COSTS

Direct production costs

1.
2.
3.

General production costs

1.
2.
3.
4.

PERIODIC COSTS
1.
2.

Total costs
Number of units
Self-cost of a product/service

11.2. Pricing

Product/service Self-cost Profit margin Sales price

(without VAT)
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11.3. Sales estimation

Product/service Unit Unit Sales prognosis (in units) Sales revenue prognosis
sales (EUR)
price

11.4. Break-even analysis

12. CASH FLOW STATEMENT

CASH BALANCE AT THE BEGINNING OF THE PERIOD

CASH INFLOW
Sales revenue inflow
Equity capital inflow
Long-term loans
Short-term loans
TOTAL CASH INFLOW

CASH OUTFLOW
Cash outflow from investments

Total cash outflow from investments

Cash outflow from operations

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Total cash outflow from operations

Cash outflow from financing

Short-term loan payments (principle + interests)
Long-term loan payments (principle + interests)
Dividend payments
Total cash outflow from financing
TOTAL CASH OUTFLOW
NET CASH FLOW
CASH BALANCE AT THE END OF THE PERIOD

13. INCOME STATEMENT

Sales revenue
Cost of sales
Gross profit/loss
Marketing expenses
Administrative and general expenses
Other operating revenue
Other operating charges
Operating profit/loss
Financial income and expenses
Profit/loss before income tax
Income tax expense
Net profit/loss for financial year

14. BALANCE SHEET

ASSETS YEARS

CURRENT ASSETS
Cash
Short-term investments
Receivables and prepayments
Inventories
Total current assets

Fixed assets
Long-term investments
Investment properties
Tangible fixed assets
Intangible fixed assets
Total fixed assets
TOTAL ASSETS

LIABILITIES AND EQUITY

LIABILITIES
Current liabilities
Loan liabilities
Debts and prepayments
Total current liabilities
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Long-term liabilities
Long-term loan liabilities
Other long-term payables
Total long-term liabilities
TOTAL LIABILITIES

EQUITY
Share capital (nominal value)
Retained profit/loss
Net profit/loss for financial year
TOTAL EQUITY

TOTAL LIABILITIES AND EQUITY

15.CONCLUSION