Wednesday 2 February 2022

Business projects

A business project is a synthesis of an idea and a documented set of actions for its implementation, as a result of which a product, service or technology appears. Sometimes the concept of business projects is considered in opposition to the concept of the enterprise. However, the current interpretations make it possible to combine these concepts and, in some cases, to make project business management the main format of the enterprise' activities.

Distinctive features of business projects

Business project on a smartphone screen.

  • setting a specific goal,
  • determination of the start and end time of work,
  • personnel, financial and other resource constraints,
  • formulation of the uniqueness of the trade offer for the market,
  • clarification of special needs for costs, quality, time of work,
  • implementation of specific project management with the involvement of experts and specialists.

In business project management, it is customary to distinguish 7 specific characteristics of management:

  • Focus on solving consumer problems.
  • Professionalism as an obligation of professional competence.
  • Treating the project as a planned future and, as a result, careful planning of the result.
  • Focus on expanding the circle of communication with the introduction of an interdisciplinary character.
  • Evaluation of the effectiveness of the project according to its results.
  • The uniqueness of the project and its results.
  • Attitude to teamwork, which is done by people for people.

The logic of the development of the process is simple and predictable:

  • First, the idea of creating a product, services, technologies is born - something potentially in demand, absent from the market in sufficient quantities or at all.
  • This idea is then tested for viability, which involves a more detailed study of the current state of the market and its prospects, taking into account the risks and opportunities. For this purpose, experts are involved, methods of analysis are used.
  • In order for project participants and stakeholders to understand what exactly should be subject to verification, the goal of the project is always formulated. A clear goal contains information about time, costs and quality. This means that as a result of the implementation of the project, quality standards must be met, the planned costs must not be exceeded and the deadlines for completion must not be violated.
  • All information about the project is entered into the plan, according to which the business process is then checked and reporting is compiled.
  • As a result, a typical structure is formed with sections describing the history of the enterprise and its place in the market, the essence of the project, the analysis of the situation in the industry, the strengths and weaknesses of competitors, marketing, financial, production, organizational plans, a section devoted to project risks. After filling in all the sections, a summary is drawn up, which is put at the beginning of the business plan for a quick but full acquaintance with the idea of the project.

However, there are no absolutely identical business projects, since there are always some unique factors that distinguish one project from another. Not only new, but also standard familiar business models are subject to adjustment, if, for example, they are adjusted to specific conditions or the customer. Therefore, the existing examples of business plans from real practice in the network should be considered as examples, bringing their own specifics to them.

The investment project provides for the solution of various types of tasks. They can be economic, commercial, social, productive miles of a different nature. In particular, it can include one or more business projects.

Investment planning is necessary in order to ensure the effectiveness of the investment. The business projects included in it can be considered as a program of specific activities. The difference between them can be determined more accurately, noting what features they have.


This is a document that specifies:

  • mission of the company;
  • the goals it sets for itself;
  • the challenges it faces;
  • the resources that will be used to perform them;
  • main areas of work and specific plans;
  • executors who will be responsible for the implementation of the set goals.
  • It is mainly about planning and monitoring the implementation of specific activities during the nearest time period.

Investment project

This document reflects the planning of a complex set of activities related to the incoming investments in the company. The main task is the most thoughtful and efficient use of the incoming resources.

The purpose of this document is to receive investments. It is created at the initial stage of the project. Usually there are no detailed plans. Usually, the goals of the work are formulated here and the means to achieve them are described. It is important for the investor what income will be received as a result of the work. He is interested in the most profitable investment.

What types of business projects exist

Business projects can be classified according to various characteristics. They, for example, can be simple monoprojects or complex, consisting of several simple ones.Classification of business projects.

Projects can be divided by scale depending on the amount of funding required, the number of participants and other parameters. The type of project is its main focus. It can be industrial, organizational, social or any other.

You can classify projects by the degree of complexity of implementation - they can be, for example, relatively simple, complex or very complex. Subject areas of activity may vary: research, educational, organizational, production or mixed.

Osterwalder's business model

This model is a strategic planning tool. It is suitable for both new and actively operating enterprises. The scheme used includes 9 blocks that must be filled. This tool is actively used. It has proven its effectiveness for both small startups and large corporations.Structure of Osterwalder's business model.

To work with the Osterwalder business model, you need to do the following:

  • A detailed analysis of the various areas for further action should be undertaken. Usually, thinking about the future. You have to choose from several possibilities. It is necessary to objectively evaluate each of them.
  • It is necessary to find the direction that is planned to be made a priority. We are talking about the activities from which it is planned to receive the greatest profit. It is important to build a long-term strategy of work in this area.
  • It is necessary to conduct a market study to determine which products are in high demand, and which ones are not promising. At this stage, it is important to choose the right direction of activity, abandoning those that will lead to a waste of effort and money.
  • It is necessary to think over the plan of marketing activities related to the chosen direction of activity.

Having drawn up at least in general terms, a plan for the development of the company, you can begin to fill in the blocks of the scheme in question. In total, you need to consider 9 sections:

  • Specify information about key partners.
  • List key activities.
  • Write about the resources that will be used in the process of work.
  • Formulate value propositions.
  • Talk about customer relationships.
  • It is necessary to consider in detail what distribution channels are supposed to be used.
  • List the user segments that will be worked with.
  • The cost structure should be described in detail.
  • It is important to list and substantiate in detail the types and amount of estimated income.
  • This tool is popular because of its simplicity. At the same time, in order to ensure the efficiency of use, you need to seriously work on filling each block.

Are IRR and NPV applicable for business projects?

IRR indicates how much profit is expected from the invested funds. It is assumed that if borrowed funds are received, the rate should be less than the correctly calculated indicator. If it exceeds its value, then the investment will become unprofitable.

NPV is the difference between the funds received for work and the total costs and payments. Which will need to be done during the activities envisaged by the project. Here we are talking about total values without taking into account the duration of the time interval. This parameter indicates the economic result of the project - its profitability or unprofitability. In the latter case, it will have to be considered as unpromising.

These indicators allow you to assess the estimated profitability of the business project. The figures obtained in the calculation of indicators can become the basis for a decision on its necessity and become base values in the planning.

Registration and licensing of activities:

  • Registration of a legal entity.
  • Federal Law on Beekeeping.
  • Sanitary and veterinary rules for keeping bees.

Marketing plan:

  • The state of beekeeping in the region and the types of farms. For example: "The region has a secured fodder base, a long tradition of beekeeping and a stable demand for products as a historically productive activity. European beekeepers are represented mainly by amateurs of 5-50 families on the farm. Industrial apiaries have up to 500 bee colonies, etc."
  • Review of competitive USA apiaries.
  • Significant factors for beekeeping: productive breeds of bees, their vital activity.

Beekeeping products with a list of all products (from honey and propolis to royal jelly and wax) and consumer preferences for varieties of the main product.

Cost calculation.

  • Prospects for promotion and sales.
  • Investment plan:
  • Volume and distribution of initial investments.
  • Calendar and phased plan for financing the project.
  • Conditions for attracting investments.

Production plan:

  • Principles and rules of organization of beekeeping.
  • Conditions of location of the apiary.
  • Assessment of honey resources.
  • Requirements for equipping the apiary with the division of the volume and cost of raw materials and additional equipment by months (and stages). It also clarifies the difference in price for hives and components made of wood and expanded polystyrene, as well as the justification for the purchase of bee colonies and their insurance program.
  • Processing and storage of beekeeping products, product prices and apiary journaling.

Employees: listing of all personnel from the payroll reasoning.

  • Analysis and assessment of risks, ways to reduce them:
  • Qualitative analysis.
  • Determination of the break-even point with the provision of a graph.
  • Determination of NPV when the quantitative values of the main parameters in the tables change.
  • Diseases of bees as a risk factor and their classification by probability and danger.

Financial plan:

  • Comments and suggestions to the calculations.
  • Plan of profitability of the farm with the structure of receipts, the volume of revenues by type of product, taking into account seasonality (in graphs and tables).
  • Plan and parameters of current costs.
  • Cash transfer plan.
  • Profit-loss plan with a schedule of estimated net profit.
  • Taxation and the structure of tax deductions.
  • Investor's income with a clear demonstration (on the chart and / or in the table) of the effectiveness of investments, NPV.
  • Income of the lender (it is assumed that part of the funds for the project will be taken as a bank loan) with a loan repayment schedule, including the payment of interest and the "body" of the debt, as well as with a schedule for obtaining a loan on time.
  • General financial and economic parameters of the project.
  • Conclusion with conclusions and motivation that is not included in the main part.
  • Since each individual project has its own specifics, it is necessary to place a separate emphasis on it.

Other Small Business Project Options

The relevance of a particular line of business is changing:

  • when filling the market niche with suppliers of goods and services (for example, all entrepreneurs began to open cafes while maintaining the number of consumers) or when a new major player appeared,
  • when changing the solvency of the target audience and changing its composition and quality (for example, with the influx of the number of migrants, the need for goods with a characteristic national identity increases),
  • with a change in external conditions (for example, with the liberalization of legislation regulating a separate field of activity, making it more profitable than before),
  • when changing trend and fashion, etc.

However, with all the volatility of the market, some business projects retain a relatively stable attractiveness for years:

  • Production of pellpets. Processing of recyclables requires the acquisition of an industrial line (about 300-400 thousand dollars) and the availability of suitable premises. However, the profitability with the correct calculations is 90-100%. And if seasonal risks are associated with fuel pellets (demand in the heating season), then, for example, the manufacture of fillers for cat toilets is an off-season product.
  • Among the seasonal businesses is often called the summer trade in kvass. However, this business project is more interesting for several seasons, since the approximate investments in permits and thermal tanks are about 100 thousand dollars, and the monthly profit is about 40 thousand.
  • It is believed that 30 m2 is enough to start, and the initial costs for the purchase of animals, equipment, cages and food fit 300 thousand dollars. with an estimated monthly profit of 50 thousand dollars. consumer interest, preservation of consistently high sanitary requirements for maintenance, climatic conditions.
  • Production of stained glass windows. In the manufacture of cheap film stained glass windows, the approximate investment is about 300 thousand dollars, and the profitability is 15-30%, but there are prospects for development by attracting craftsmen and narrow specialists to an already operating business to create more expensive products. Among the business ideas that require the embodiment of the manufacturer's skill, wood carving with small investments and quick payback, furniture retraction (investments from 70 thousand with an expected monthly profit of 40 thousand dollars), a euro repair workshop with a profit of 100 thousand dollars are often called.

Regional and climatic features, in most cases, impose certain restrictions on these activities, but with proper implementation, they allow you to bypass less agile competitors at the same time.

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