The financing plan is actually a certificate to convince investors. Also known as a business plan. It is a written material compiled by a company, an enterprise or a project unit in order to achieve the financing and other development goals of attracting small and medium-sized enterprises, on the basis of scientific research, analysis, collection and arrangement of relevant materials in the early stage, and according to the specific requirements of certain format and content, to comprehensively show the current situation and future development potential of the company and the project to readers. It is different from the traditional Project Proposal and Project Feasibility Study Report. The business plan considers the problem more comprehensively, pays more attention to operability and economic benefits, and also has different specific requirements in format and content. In addition, the targets of the two are also different. The former is a written material compiled according to the requirements of governments at all levels and other relevant departments in China, while the business plan is the most important written material that needs to be prepared at the beginning for all kinds of potential investors. Moreover, if international SME financing is a category of your SME financing plan, then you must prepare an English business plan.
Action Steps
To write it, we must first understand four contents:
First, why should we write a financing plan?
suggestion: a famous American venture capitalist once said? Inviting people to invest or join in a venture enterprise is like proposing to a divorced lady, not like first love with a girl. Both sides have their own plans, and it is useless to just make empty promises. For venture enterprises seeking funds, the business plan is the phone card of the enterprise. The quality of a business plan often determines the success or failure of an investment transaction.
The process of sorting out and writing a business plan is also the process of first selling the project to enterprises and entrepreneurs themselves. As a financing plan that you don't even believe in yourself, you can't sell it to others, let alone savvy domestic and international investors. On the other hand, even a good project, if it is not fully displayed through the business plan, which is recognized by many investors, is likely to leave the project to the entrepreneurs themselves. Secondly, the business plan can also help to sell the planned venture enterprises to venture capitalists. One of its main purposes is to attract small and medium-sized enterprises for financing and seek greater development. Finally, for the established venture enterprise, it can also set a more specific focus and direction for the development of the enterprise, so that employees can understand the business objectives of the enterprise and encourage them to work hard for the same goals.
the importance of business plan is self-evident. It is almost impossible to succeed in financing small and medium-sized enterprises without a business plan, and it is also hopeless without a formal and complete business plan. A very simple reason is that all investors face your business plan first, not your project.
Second, the materials needed to refer to when writing a financing plan
Suggestion: If you can give a positive answer in the first step and want to know more about financing and financing plan, then I recommend you to refer to the following bibliography:
1) "Financing and Entrepreneurship: How to Write a Good Financing Plan" Author: Zhan Qiang Press: Southwestern University of Finance and Economics Press
First of all, you should draw up a detailed plan to create an enterprise. Whether it is to provide funds for the establishment or expansion of enterprises, most investors must read the financing plan before considering whether to contribute. Business owners should also clarify the goals and objectives of their business activities, and the plan is an excellent form to show them.
2) "Standard and Efficient Operation Rules for Financing Investment" Author: Chen Xingping Publishing House: China Times Economic Publishing House
How can we conduct standardized and efficient business operations? First of all, we should understand and master the relevant laws and regulations of the government. Secondly, we should master modern management theories, concepts and methods. On this basis, we should use modern management technology to optimize the design of business operation procedures. This series of books is designed by officials of relevant government departments, experts engaged in management theory research in enterprises, banks and colleges and universities, and experts who have been engaged in practical management for a long time. It adopts chart form to scientifically design business operation procedures, and provides a set of standardized and efficient business operation roadmap for enterprises, institutions and other units and individuals.
3) Author of Project Financing: Zhang Jijing Publishing House: CITIC Publishing House
The author of this book has rich experience in multinational project financing for many years. From the perspective of enterprise financing, he systematically expounded and introduced the basic principles, methods, structures and cases of internationally accepted project financing, providing readers with an introductory reference book.
3. Know the format and content of the financing plan
Suggestion: Although each business plan has its own characteristics, investors still want to see the similarities, that is, the basic composition and content of the financing plan:
Part I: Summary of the plan. ) The essence of a condensed business plan is mainly used to arouse investors' interest and make it clear at a glance, so that investors can review the plan and make a preliminary judgment within 3 to 5 minutes. )
Part II: Overview. Mainly includes: 1. Company overview; 2. Technology and products (services); 3. Market analysis; 4. Competition analysis; 5. Marketing strategy; 6. Description of investment; 7. Return on investment and exit mechanism; 8. Risk analysis; 9. Personnel and organizational management; 1. Business forecast; 11. Financial planning analysis.
Part III: Appendix (including annexes and schedules, as shown in examples)
Appendix: 1. Photocopy of business license; 2. List and resume of the board of directors; 3. List and resumes of major management teams; 4. Description of technical terms; 5. Patent certificate/production license/appraisal certificate, etc.; 6. Registered trademarks; 7. Corporate image design/publicity materials (logo design, brochures, publications, packaging instructions, etc.); 8. Presentation and report; 9. Proof of venue rental; 1. Process flow chart; 11. Product market growth forecast chart;
schedule: 1. catalogue of main products; 2. List of major customers; 3. List of major suppliers and distributors; 4. List of major equipment; 5. Market questionnaire; 6. Forecast analysis table; 7. Various financial statements and financial estimates;
fourth, do you want to invite a professional consulting company to write a financing plan?
suggestion: you may be starting a venture enterprise, or you may have a good project waiting to operate, but the lack of funds makes you sad, so you are ready or have begun to look for a savior who can solve this problem for you-investors. Through the above introduction, you have learned about some financing plans, and I hope you can make your business plan yourself, because you are the discoverer and pioneer of high-quality projects. However, you may not be clear about the basic procedures and requirements of making a business plan, as well as some serious problems and details that should be paid attention to! Maybe you will say, "I have a Business Plan". Yes, you do, but does your Business Plan show that you have experience in managing the company well? Does it show that you are able to repay the loan? Does it show that you have conducted a complete market analysis? Can you dispel investors' doubts about products/services? Can even a technical layman read it? Is it clear in structure and correct in grammar? Do you want your English business plan to be examined and accepted by critical international investors in language?
..... all these will hinder the progress of your planning, so it will be more effective if you find a professional business plan writing organization to complete this work. They can make your business plan easily avoid the above problems, encourage you to avoid detours in SME financing activities, and provide you with the latest information on SME financing market and assist your SME financing work.
Skills and Strategies
After understanding and participating in the formulation of the financing plan, we still need to master the following skills to make your financing plan more perfect:
First, demonstrate the financing plan. Mainly refers to the feasibility of the planned project and the demonstration of the project's rate of return.
second, you need to know the choice of financing channels around you. As a financier, you should choose a financing method with low cost and quick financing.
For example, issue stocks and securities, borrow money from banks, and accept investment from employees. If your project is in line with the current industrial policy, you can ask the government for financial support.
third, the amount allocation in the financing plan. The funds raised should be earmarked for special purposes, which has ensured the continuity of project implementation.
fourth, plan to determine the return of financing. There is always a time limit for the implementation of the project. Once the implementation of the project begins to recover the principal, it should start to repay the melted funds reasonably.
fifth, the profit distribution in the financing plan.
if you and your financing planner have mastered the above five skills and strategies, I believe this financing plan will be written perfectly.