Capital is one of the things that must be provided when starting a business. Capital can be raised in cooperation with investors. The business plan must be designed to attract investors to invest. Through a business draft, investors can understand what kind of business is being carried out, what the mechanism is and of course how much profit can be generated. Therefore, the following explanation of the business draft will be very helpful if you listen to it.
What is a Business Draft
Business Draft is also often called a business proposal. This suggestion is often conveyed when a company wants to hold a project to invite investors. A business plan is a formal document prepared by a company that contains a specific project or business plan to be given to a potential client and is meant to get an agreement between the company and investors. In the outline of the business, a brief description of the business to be carried out is explained in language that is easy to understand and straightforward. So that investors can understand and convince the business plan. In addition, one of the characteristics of a business draft is that it is not standardized. However, a business draft must be made after conducting a business analysis of several aspects, such as:
- Strengths. what are the strengths or strengths of the company so that it can create opportunities to produce good performance.
- Weaknesses . Vulnerabilities owned by the company, so it is necessary to repair or repair these vulnerabilities before threats appear.
- Opportunities , namely factors that can support a success in a business.
- Threats . external factors that cannot be controlled but must still be considered to make a contingency plan as a solution if unwanted problems occur.
Purpose of Business Draft
In general, the purpose of making a business proposal or draft is as follows:
1. Attract Sponsors or Investors
As explained in the discussion of understanding, one of the goals of business planning is to attract investors to invest or to attract sponsors who want to finance a business proposal in a lead system. come back. Therefore, the business plan submitted with the application must be carefully planned before it is written.
2. Outperform Competitors
The business proposal includes a description of the benefits and opportunities of the agreement. Indirectly, this is a way to show the company's superiority over its competitors.
In addition, the business also explains how to take strategic steps so that the business can be successful.
3. Seeing the Feasibility of a Business Idea
From the point of view of the recipient of a business blueprint, the purpose of the blueprint is to determine whether the proposed company is worth investing in or not. For the writer, the purpose of the business outline is to find out whether the business is feasible to compete or not. Because a business outline is a safety device or guide so that the strategic plan you already have is not lost even though its implementation allows for changes.
4. Securing Funding
In addition to providing orientation to the designed business plan viz. securing financing, this was the main goal of creating the business concept. Running a business certainly requires a large amount of capital, and it is not certain where the source will come from. For business cases, the financing can be through bank loans or from investors, because to get investors usually ask for a business case as evidence or material that can be persuaded.
5. Make Business Plans More Effective
The business world is dynamic, so effective management skills are essential in order not to overspend, although you need to stay current. This is important for creating a business outline which allows for more effective business planning. The business is also easy to run because it is systematically planned and recorded in terms of production, sales and capital allocation.
Types of Business Drafts
Based on whether it is requested or not, a business draft is divided into two types, namely as follows:
1. Requested Business Draft
As the name suggests, a requested business draft is a business plan made when a potential customer or investor makes an investment. This allows clients or investors to see business opportunities.
2. Unsolicited Business Draft
One of the roles of a business draft is to collaborate or solicit cooperation, so companies often provide suggestions that have not been requested by clients. It's a way for companies or business owners to engage potential customers, even if they don't ask for it.
Apart from the two types of business drafts or proposals above, drafts are also divided based on their objectives, namely as follows:
1. Direct Draft Direct
business draft is a draft made with the intention of inviting sellers or investors to join the deal. The essence of a business blueprint is to create profits between those who make them and those who receive them. Because in this outline it is hoped that the project or business that is implemented will create a symbiosis of reciprocity or appreciation.
2. Indirect Draft
A draft or indirect business proposal is a sales promotion proposal that can indirectly benefit both parties, ie. creator and receiver. What distinguishes direct and indirect business is the premium. When the first two parties are in a direct draft, the manufacturer really expects a reward, namely investors who invest their capital or sellers who work with the company. On the other hand, in the case of an indirect draft, no reward is really expected here, as the aim of the company is simply to present the company's products or services to the general public.
How to Make a Business Draft
How to make or compile a business draft, namely as follows:
1. Introduction
The first part of the contents of the business draft is the introduction. This introductory section is an introduction before starting the main part of the explanation. This introductory section outlines the background of the business being operated.
Don't forget to include the company's vision and mission, description and goals that will be achieved if the business is carried out in the future. Although only as an opening, this section is not discarded, because through this section the reader is also interested in reading further.
2. Company Profile
Another part that must be included in the business outline is the profile of the company that runs the business. Explain the company profile in a short and clear language. The company profile must contain several things, such as: company name, company location and type of business the company does. With the help of company profiles, investors can see how big the company's business potential is in the market.
3. Company Organizational Structure
The next part of the business outline is the organizational structure of the company. The company organizational structure section can be included if the company being managed already has a good system. This section is a complement that can be used as investment material. In addition, this section may also include human resources or human resources, namely the number and educational background of employees.
4. Details of Products Sold
The explanation section about what products are sold in the shop outline is the section that marks the beginning of the main section after the introduction section. This section describes the product in detail, starting from the type, method of manufacture and benefits.
Detailed product descriptions or details are needed so that investors trust the company to invest. In order not to overestimate a company, it is best to consider consumers, demand, market competition, resource support and consumer purchasing power.
5. Business Location
In addition to explaining the details of the products being marketed, it is also important to mention the location of the company. Because company location is an important aspect of marketing along with sales and price.
6. Target Market
Once you have registered the location, the next step is to clarify the target market the company will choose. The market is a place where goods are sold and bought so that consumers can meet producers. In order not to get the market wrong, the company must determine the target market in terms of market segments, target consumers and product marketing strategies including price issues. The types of markets that are usually described in a business outline are monopoly markets, oligopoly markets, perfectly competitive markets, monopoly markets, and monopoly markets. The type of market can be selected according to the type of business being run.
7. Competition
The essence of explaining business competition in business outline is very important. Companies must be able to explain how the company is in the market and how to compete with other companies. If so, the company must be able to explain how the description of the strategy that will be used to win the competition. The business position is divided into several types, namely market challenger, market leader, market opportunity, and market follower.
8. Financial Reports
The essence of presenting a business plan is to get capital from investors. Therefore, companies must be able to attach detailed financial reports. Business actors must explain plans to increase capital, estimated costs and income if the business is classified as new. However, managed companies must provide detailed financial reports. Some things that must be included in the financial statements are the company's balance sheet, break-even analysis (BEP), income statement and financial sources. By using the points above, investors can realistically assess the ability or potential of the company.
9. Credit Proposals
After the financial statements are presented in the previous section, the next thing is to include loan requests in the business outline. In this section, the company offers several funds needed for business development. Funding requests are written in detail and contain information about the allocation of funds. Perhaps this section is widely known because it is the essence of the grant.
10. Closing
The last part of the business outline is closing. In this section, the company can include other things that can make potential investors more confident about the future business that has been described in the previous section. This section can also be equipped with sayings and prayers for the proposals submitted. Also, thanks to investors for their willingness to read drafts or proposals along the way.
11. Appendices
If the outline is completed with prayers and thanksgiving, an appendix with supporting information can be added. Some supporting information that can be attached is personal information of business owners, business contracts, business licenses, certificates and others.