Prepared by research and consulting company M-Vector This guideline is the result of conducted research within the "Economic, Social, Legal and M&E Capacity Building for Sustaining Impacts Project" project of the Eurasia Foundation of Central Asia (EFCA) - Tajikistan which was supported by the Committee of Environmental Protection as part of the Environmental Land Management and Rural Livelihoods (ELMARL) project, funded by the Pilot Program for Climate Resilience (PPCR), Global Environmental Fund and the World Bank. The Committee on Environmental Protection under the Government of the Republic of Tajikistan is not responsible for the content of this guidebook. The purpose of this guideline is the provision of information and useful instructions for trainers, students, entrepreneurs, and especially local entrepreneurs regarding rules, procedures, requirements, opportunities, request of funds and assistance from organizations, government and other sources, and access to the information about business opportunities and sources of investment, as well as commencement of any type of activity for rural populations.
CONTENT
I. TERMS ...... 7 II. GENERAL INFORMATION ...... 12 III. INTRODUCTION ...... 16 IV. START YOUR BUSINESS ...... 24 1. NEW BUSINESS IDEAS AND MARKET RESEARCH ...... 25 1.1. New business ideas ...... 25 1.2. Market research ...... 27 1.3. Self-assessment and working group assessment ...... 28 1.4. Targeted market ...... 30 2. DEVELOPMENT OF BUSINESS PLAN ...... 33 2.1. Market plan ...... 36 2.2. Financial plan ...... 39 3. MOBILIZATION OF RESOURCES ...... 46 3.1. Owner’s resourses ...... 47 3.2. Credits ...... 47 3.3. Grants ...... 48 V. ELIMINATION OF BARRIERS AND ERRORS ...... 50 VI. USEFUL RECOMMENDATIONS TO SUCCEED ...... 53 VII. LITERATURE AND SOURCES OF INFORMATION ...... 55
I. TERMS
Each reader and person doing business must The main function of management of business know the following concepts before starting activities, is the rational use of resources, any income generating activity: organizing sustainable activity on the basis of innovations and economic risk, and the Business is the activity carried out by private responsibility for the realization of all individuals, enterprises or organizations for activities. the production, performance of a service, access and sale of goods or its exchange to Entrepreneurship is an activity and process other goods and currency, so that it is the result of which is creativity, innovation and profitable for both parties. Certain economic, business development. It also means the social and legal conditions should be provided power and desire to establish, organize and for the organization of businesses. A modern manage a commercial business taking the risk, entrepreneur should be well educated in his with a view to earn a profit. The conceptual chosen activity, be ble to adjust to changes in entrepreneurship example is starting a new his environment, be able to resist failures, and business activity. What is needed is the ability be able to draw conclusions from his mistakes to transform ideas into the activities that are to avoid their replication in the future. With an aimed at bringing social benefits through increase of number of business enterprises innovative thinking for the purpose of meeting and comprehensive state support, business the needs of clients. Entrepreneurship is the activity is one of the necessary factors for art for satisfying the buyer's demand with the solving socio-economic issues, i.e. efficient use of resources, which serves for the employment of the population. development of production or other business activities for a long time. Business activity is a necessary part of any economy nowadays. In many countries, the Entrepreneur is a person who creates and business sector is very developed and develops its business idea, and who possesses contributes to a large part of the national courage to establish an enterprise for the economy. After privatization of property, a purpose manufacturing products and services small number of enterprises and organizations to meet the clients’ demands. Entrepreneur is are state-owned and the rest is privatized. a person and entrepreneurship is a process. Most businesses are small and medium size. Both man and woman can be an entrepreneur. I. TERMS
All entrepreneurs are businessmen, but not all Exchange is an openly organized market, in businessmen are enterpreneurs. Successful which the sellers and buyers negotiate the entrepreneur is a person who is always prices. Exchange is a quick proces and looking for new opportunity for requires effective communication and real manufacturing products and new and better decision making. services, and defines the way of creating required resources. Entrepreneur is the Products are goods, opinion, method, organizer of a job place, but not a job seeker. information, service object that were created Entrepreneur is a free and open-minded as a result of activity process and to meet the person with a wide range of perspectives and needs and request. It has material and single minded, responsible, self-rigorous, kind non-material properties (profits, features, to others, clever, self-restrained and brave. functions, usage) that the seller offers the buyer. For example, the tooth paste seller A Fund is any monetary value, that is used as does not only offer the product, but also (1) commonly used financial instrument, (2) pushes the buyers to think more about the credit payment, (3) values standard, (4) unit of health of their teeth. the accounting amount and (5) means of resourse and maintenance of the purchasing Consumers are those who exchange with you, capacity. as you are interested in attraction of people's attention to your advertisement and give you Grant is the help which is provided by the what you need. All consumers can be divided government or organization to start a small into two groups. business. Sometimes government and non-governmental organizations provide the Marketing is the philosophy and art of the perspective entrepreneurs with grant for the entrepreneurship in the developed market purpose of supporting their small businesses. economic countries. Briefly, marketing can be Other information on the assessment of called a comparison management. Marketing funding through grants is provided on the is an English word and consists of two parts, later sections. i.e. «market» and «ing». The translation of the word «market» into tajik is “бозор”, and «ing» means action. I. TERMS
So, marketing means «activity related with market» in tajik. Phillip Cotler, a famous American marketing expert, described marketing as:
«one of the human’s activity, and is aimed to meet people's needs and demands by exchange».
Marketing is primarily connected with the terms of need, demands, comparison, goods, exchange, commitment and market.
Needs are persons’ feelings about missing or lack of something necessary for life. A picture of training seminar about the market.
Demand is a need, which forms per the current state of the economic and its degree of development in a country.
Goods are things that attempt to meet any needs or demands, and are offered to the market to attract people’s attention to buy and to consume.
Commitment is the exchange of a wide range of goods between different parties, usually the seller and the buyer.
Competition occurs if there are two or more entrepreneurs, producing the same type of product and offering to the same market. In the process of competition, there is a struggle for good production conditions and product offers in the market. - Value competition – Entering the market due to setting lower prices; - Competition of product quality; - Competition of service (non-valuable competition).
Market is a complex of relations between producers and consumers on the purchase and sale of goods. It is also a complex of goods and services and demands of buyers able to purchase. I. TERMS
Strength and weakness analysis:
Strong points (S - Strength),
Lack and weak points (W -Weakness).
Price is a value set for the product. It depends on the cost of production, segment allocation, the payments market capacity, the supply and demand and other direct and indirect factors. There are several types of pricing, each of which is connected with a common business plan. Pricing can also be used for classification, difference, and improvement of the product description.
Sales location are important in all spheres, because attracting the buyer to buy products quickly is the main goal/ "strategy" of placement. The product must be in sight and close to the buyer. In fact, a successful business strategy is "suitable placing".
Accounting is one of the most important terms of the managing the organization, enterprise, institution and individual entrepreneurs, by method of carrying out regular monitoring of the economic activity. No activity, in particular, planned activities, public affairs have no meaning without proper accounting. Accounting is a an integral part of the management, by means of which the data is collected on the status and volume of processes and economic objects.
Resources are for example money, but there are also other resources that are important for the commencement of business; for example, skills, workers, factors of production (seeds, tools, land, etc.).
Mobilization mechanisms of the resources are a process of request or acquisition of resources, for example, writing requests, conducting measures to seek for money, selling goods, selling services, meetings, etc.;
Funding sources are banks, micro-credit organizations, government organizations and charitable organizations.
II. GENERAL INFORMATION
The Environmental Land Management and improve natural resource management and Rural Livelihoods (ELMARL) project is in line resilience to climate change in selected with the strategies and policies of the climate vulnerable sites. Government of the Republic of Tajikistan. The To this end, the ELMARL project has also National Development Strategy (2015) and organized trainings for the purpose of Poverty Reduction Strategy (PRS, 2012) improving the knowledge and skills, considers it important to promote economic organization of the activities for farmers and growth, especially in rural areas, and farms, which is important for the recognizes the importance of resolving improvement of the land resource ecological issues, including the land management and climate change adaptation. management to achieve the country's goals and to reduce the level of poverty. In Project activities on small grants for farmers connection with these national strategies, the gave ample opportunities and were ELMARL project makes an effort to ensure implemented in the following areas: sustainable development of the population, water and energy security, long-term health 1. Production of agricultural products; - and social protection. The National Productivity of cultivated lands and gardens Environmental Plan also mentions that the (by means of: crop rotation, adaptation of country's primary problems are land drought-resistant crops, organization of the degradation, including deterioration of vegetable seeds farms at the local level, pasture conditions, irrigated lands and forests. available small greenhouses), effective usage In the future, the government plans to of animal products (including; breeding introduce new measures to strengthen pure-bred animals, veterinary services), disaster risk management, weather forecasts processing of agricultural products and access and adaptation to climate change, to mitigate to the market. vulnerability and, therefore, to produce 2. Rational use of land resources, - pasture agricultural products. management (including; pasture rotation, The overall Project Development Objective construction of water drink areas for livestock, and Global Environmental Objective of the perennial weeds in various parts of the ELMARL project is to: Enable rural .people to pasture), water management (by: drip increase their productive assets in ways that irrigation, collection and storage of water), II. GENERAL INFORMATION soil fertility (by: mulching), insect control, capacity building of rural populations for building stair-gardens on sloping lands, improving economic, social and leagel building gardens and protection forests. sustainablity of the ELMARL supported 3. Internal production infrastructure, resto- projects. The mentioned services were ration of irrigation and drainage systems, small provided through gender-sensitive trainings, workshops for repairing service facilities, adapted to the local circumstances of the natural energy production (from sun) and economic and legal issues for project rational use of energy (by: installation of beneficiaries and other interested parties. heating stove and other improved heating means, heat preserving means).
The mentioned activities were implemented by the project in pilot districts with a specific geographical location, i.e., low lands - Farkhor and Kulob, middle hills - Baljuvon and Khovaling and uplands - Sangvor and Tavildara districts.
The project uses a number of technologies for the environmental management of the land and strategies for improving livelihoods. Most of these technologies are effective for the conditions of Tajikistan, and reflect best practices. The project uses local knowledge and technology, as well as international best practices, and introduced mechanisms, including financial incentives, to participate in the management of community interest groups.
The Eurasia Foundation of Central Asia – Tajikistan is supporting the CEP in provision of II. GENERAL INFORMATION
The involved organizations assisted in the following issues: a) raising skills and knowledge on income generation through gender sensitive capacity development programs based on project outcomes and research; b) supporting the capacity development with regard to the main issues of the relevant law for support of efforts beyond the project range and improvement of cooperation with local authorities and beneficiaries; c) development of mechanisms, such as tenders, to encourage participants (especially women) to create acquired capacities through supporting their economic ideas about income sources and starting business or other forms of performance, deep understanding of the content of capacity building for the economic, legal, social and monitoring within the subprojects; and d) preparation of modules to increase the financial, economic, and legal capacity and monitoring the ELMARL and future projects.
III. INTRODUCTION
Today's modern economic development their efforts on improving the quality of process can be characterized by the products and ensuring their competition in development of small and medium businesses, the market according to the price factor. which is directly related to the changing social and economic situation of the society. Types of entrepreneurship Development of entrepreneurship requires of its participants new and non-traditional Type of entrepreneurship is a complex of solutions which are aimed at the realization of standards and regulation of legal standards on innovation processes and the entrepreneurs’ organizing business activities within the range income growth. High level of competition as a of the firm itself, between the firms and other leading force of social and economic economic object and between the different development invites the entrepreneurs to state organizations and enterprises, which can carry out activities in uncertain and risky provide the process of economic development conditions, and to use new, innovative and and the public's level of improvement. reasonable decisions and methods to achieve the goal. According to the number of the owners, the business activities can be individual and Entrepreneurship has a feature that can fully collective. In individual entrepreneurship, the change the economic future of individual, ownership belongs to an individual. In enterprise and even economy of the country. collective entrepreneurship, ownership An entrepreneur has an important status in simultaneously belongs to several entities the market condition, and the process of with the determination of the share of each of market development, the level of its them (share ownership) or without the satisfaction, introduction of scientific and determination of the shares (joint ownership). technical innovations and sustainable The ownership, use and disposal of the economic growth in the production depends property which is in the collective ownership, on the effectiveness of his business. shall be implemented as per agreement Development of external economic activity between all owners. requires of the agricultural producers to focus III. INTRODUCTION
A physical person who wishes to be engaged in business activity without establishing a legal entity must apply for a patent, and address to the district (city) tax inspectorate of the place of activity. The type of entrepreneurship activity that the enterpreuner intends to be involved in, must be indicated in the application. In this case, the tax authorities shall accept the required documents and carry out the state registration of the individual entrepreneur within the time limit established by the law, and give patent to the applicant for a period of one calendar year.
Individual entrepreneurship is an Manufacturing entrepreneurship is a independent activity of an individual, without business where entrepreneur is engaged establishing a legal entity, on its behalf, with directly in manufacturing pruducts, goods, its own risk, and with its own property services, information and moral values that responsibility for receiving profit (income). will be subsequently sold to the buyers. From Business activity of the citizens without point of view of cottage industry, the establishing a legal entity is one of the manufacturing entrepreneurship is simplest forms of organization of such considered to be a leading type of activity. entrepreneurship, because it produces the Currently, business activity of the citizens products necessary for society. Besides, without establishing a legal entity became Manufacturing entrepreneurship is one of very popular. This is related to the advantages the high-risk activities. All types of goods and of individual entrepreneurship in comparison services are manufactured by the entities of with the other forms of economic activity. manufacturing entrepreneurship (population, business and state organizations) for the special consumers. III. INTRODUCTION
Patent is a document that identifies the citizen's state registerion as entrepreneur and gives the right to take part in business activity. A person whose name is indicated in the patent has the right to use it. The patent gives right to the entrepreneur to carry activity only in the sphere and place mentioned in it.
Commercial entrepreneurship is a type of Financial entrepreneurship is considered to entrepreneurship, related to the purchase and be one of the type of commercial sale of goods, exchange of goods and entrepreneurship, because the object of its commercial and financial operations. This purchase and sale is a special item - money, activity is fast, adaptable to changes, because currency, securities (shares, bonds), i.e. the it is directly associated with particular sale of one share to another share takes place consumer. It is considered that two conditions with a price that provides profits. are necessary for the development of Each entrepreneur must learn these commercial entrepreneurship, sustainable resolutions and carry out his activity on this demands for the goods to be sold (therefore, it basis and pass the state registration: The is necessary to know the market well), and information is provided in the table below, also, cheaper price of the purchase from the in order to fully register the your activity, see producers that allows the traders to cover the the Law of the Republic of Tajikistan On state costs and get the necessary profit. registration of legal entities and individual entrepreneurs. III. INTRODUCTION III. INTRODUCTION
Also, in the event of business liquidation, an 3. Based on the notification letter on the legal entrepreneur must be aware of these articles entity's liquidation, the state registration of the legislation: authority shall make the entry to the Unified State Register on the decision of liquidation of 1. State registration of liquidation of a legal a legal entity. entity based on the decision of the founder (founders), authorized body of a legal entity 4. State registration of liquidation of a legal on the basis of a court decision adopted by the entity shall be carried out at the location legislation of the Republic of Tajikistan shall be (address) of a legal entity, by the authority performed after completing liquidation of the performing the state registration authority legal entity stipulated in the legislation of the within five working days from the day of Republic of Tajikistan. submission of the documents specified in Article 20 of the present Law. 2. The founder (founders) and authorized body of a legal entity and court, who took a 5. The liquigation of the withdrawn legal decision to liquidate a legal entity, shall entity and the legal entity that has terminated undertake to inform the state registration its activity shall be recognized only after authorities within three business days from making entry to the Unified State Register, the date of making a decision with the and with issuing Extract by the Unified State annexation of the decision on liquidation of Register. See Section 4 – Law of the Republic of the legal entity. Tajikistan On state registration of legal entities and individual entrepreneurs. III. INTRODUCTION
Small wool processing machine in Lakhsh The people of Qashqaterak village are mostly engaged in cattle breeding and sowing agricultural crops on their arable lands. Most women in the village are housewives, and are engaged in crop farming in their homestead lands. There are 2985 small cattle in the village and each of them gives up to 7-10 kg wool. Karomat who learnt making wool products from her mother and grandmother, has been preparing it by hand for the members of her family. Also, in her spare time she has been teaching the young women of the village this handicraft. Within the framework of the Environmental Land Management and Rural Livelihoods project, Karomat organized a group of women of the village and they purchased a small wool processing machine for 16,796 somoni. 20 housesitting girls and women have been taught the art of weaving and have found a source of steady income. In addition, the residents of the village do not throw away the wool of cattle and thus, there is no negative affect to the environment. They can sell one kilogram of wool for 2 to 4 TJS. At the initial stage, 5 types of woolen products are produced and sold at the local, center and Dushanbe markets. In future, Karomat and the group members want to improve the quality and productivity of the product, with the installation of weaving machine. They believe that customer needs will be increased to the beautiful and high quality woolen products.
IV. START YOUR BUSINESS
How to start your business? 1. NEW BUSINESS IDEAS AND MARKET RESEARCH
1.1. New business ideas
Make a list of different ideas that you think is possible to be implemented and are sustainable. (Chicken farming, cattle breeding, bee-keeping, vegetable production, fruit production, storage, crafts, baking, selling etc.). From to the listed ideas, choose the one which you think is the best for the development of business. While planning pay attention to the environmental, social and economic issues. Your business idea on service or selling of goods should attract customers’ attention and should meet market demands. Your mentioned activity, which takes a higher grade, will be suitable for the development and realization. Then, we will see if it is sustainable and useful to ecosystem. You have chosen one business idea, and think you can afford it and you can attract clients. So you have to develop your own plan. This manual is aimed at proper way of developing the business idea. The proposed action plan should be well defined to ensure that all business members understand it and to be familiar with the goals of the business. Each idea should be tested according to the following strategy: 1. NEW BUSINESS IDEAS AND MARKET RESEARCH
Where will your product or service be sold?
Market is...
A crowded place and A place of offering an indicator of prices products and for different products experience, at the same time listening to the opinions of the buyers and others
An interesting way to An easy way of learning generate income and the ability to promote learning new opportunities, business skills while communicating 1. NEW BUSINESS IDEAS AND MARKET RESEARCH
1.2. Market research
Market research will be conducted in order to collect information that will help you to make the right decision regarding sales / services. The main purpose of this activity is to identify the habit of buying products by the people and its competitiveness. Market research is a systematic, targeted process and information analysis about the market which is under consideration, competitiveness or environment and usually the first step is to define ability of business ideas. After developing business idea, you need to find out information about customers and your competitors so that you can identify your business position for the purpose of increasing the customers and competitive ability. Market research helps to assess business ability.
The way of conducting market research When do they buy? 1. Talk to possible customers: Ask them, for example: How much do they buy?
What products and services do they want to What price do they buy for? buy? What are their priorities? What are they buying currently? Do they receive any additional services / Where do they buy them from? products?
Why do they buy? What do they think about your competitors? 1. NEW BUSINESS IDEAS AND MARKET RESEARCH
Learn your competitors’ business 1.3. Self-assessment and working activities: group assessment Find out: Their product and services, for example The good news is that the owner of a small quality and design; business, i.e., entrepreneur has full freedom Their price; for managing funds and make decisions. This What do they actually sell? way, you will have a permanent job place What is the difference between your and you will also be able to provide others products and their products? with job. Where do they get initial resources (production factors) from? Assessment of substantiality (SW) Where do they sell their products? According to the simple rule of the SW How do they promote their products / (strength and weakness), you can analyze services? yourself and your assets and realise your Do they have any special method to find out plan: the customers' needs? How can you compete with them? - By analyzing strong and weak points, you can test your business internally, in order to Ask the resource suppliers (factors) and find out what you are able to have an business partners: influence on: What kind of product they sell; - Strong point is that you have the best What services the farmers pay for; condition. For example, Your products may What they think about your business idea; be better than your competitors, or your What they think about the product of your store is on the right place, your employees competitor. are highly experienced. 1. NEW BUSINESS IDEAS AND MARKET RESEARCH
- Weak points are weak sides of your 3. Do your educational position corresponds business. Your product, for example, is more to your chosen field? expensive than your competitor’s, you have 4. Does business activity which you are going no enough money for the advertisement, or to start, depends on your business you can not make the service that your experience? Can your work experience help to competitor does. develop the business? 5. Are you ready for research, planning and While examining the opportunities and risks, long-term job? Do you have the ability to you will be out of the frame of your business identify and solve the problems and take the and find out points that do not depend on problems as opportunities? you. 6. Can you make short-term and long-term goals, and then follow it? Do you regularly After completing the SW analysis, you can identify your tasks, and then evaluate its understand your business and decide: implementation? - whether you will make your intention and 7. Can you evaluate and manage financial fully develop your business plan; and other risks that appear in business - whether you will go back to your business activity? concept to change it; 8. Can you identify different risk influences in - whether it’s better to completely give up this your business? idea. 9. Can you accept the success as a learning process? Before starting activity, you should ask 10. Do you make examination and use it? Do yourself these questions: you consider the opinion of the people about 1. Do you have the necessary resources to your business? start your business? You need to think about 11. Do you show an initiative and accept what you need to start your business. responsibility for your business? 2. Have you been dealing with small 12. Can you involve necessary persons into businesses or entrepreneurship before ? What your business? Selection of partners, did you learn from your experience and why stakeholders, and key staff is very important. you think you will be successful? 1. NEW BUSINESS IDEAS AND MARKET RESEARCH
13. Are you aware of the laws and rules of questions positively, then you have all the business development? Have you considered necessary qualifications for business. the licenses, work staff, labor relations, taxes, 15. To improve your skills, consider the accounting records, stakeholder agreements? questions that you had difficulties with. 14. If you have answered all of these
1.4. Targeted market Who are the main competitors, how can you resist them and their influence? The targeted market is defined as a relatively Does this business have many competitors? If large group of potential clients. Your product they are many, portion of your market is low, can be aimed at consumers or other clients, which means that you have to promote and but despite of it, your product must be try to ensure transparency; available regardless of whether the buyer is a Does your product need advertisement, if yes, separate person, or a representative of any then what kind of expenses are needed for it? organization. It is important to know the What is the tendency in sales price? Is it customers, and their interest in purchasing seasonal? this or that product. The following information is important to Entrepreneur should have deep and identify the targeted market: substantial answers in determining and solving all the questions mentioned in this Geographical characteristics of business section, particularly 15 questions that is location; necessary for each businessman; then he can Is there local demand for the product, if not, own a business idea to identify the targeted how can it be found? market and start his business planning. 1. NEW BUSINESS IDEAS AND MARKET RESEARCH
Pastry shop in Khovaling Fayzali, the resident of the 8 March village of Khovaling District having worked in the city of Dushanbe for many years, has acquired extensive experience in the production of confectionery. Due to the lack of permanent job place, youths of the village have no other choice but leaving their village and moving to the town . Due to the project, 22 residents of the village had opportunity to learn how to establish pastry shop and have developed plan. As Faizali mentioned, the needs of the people of the village are very high for the establishment of this place. Because there is no bread and pastry products in the village, and this kind of products come from the city of Dushanbe, which is very expensive. Now with the grant support pastry shop was fully provided with equipments and 6 housewives were provided with permanent job. “The establishment of pastry shop made it easy for women to work, and now they can buy these products for any party or going out on a visit. In case of full commissioning, we can produce 180 breads, 400 various pastries, 250 small breads and other other kinds of sweets per day. Daily income of the enterprise is up to 400 TJS, which is used for salary, payment of taxes and purchase of products”. Fayzali plans to increase production and create more vacancies.
2. DEVELOPMENT OF BUSINESS PLAN
BUSINESS PLAN 2. DEVELOPMENT OF BUSINESS PLAN
1. Purpose of the business should be known. business. It describes the main sources of And all staff or group members should have business activity, the analysis of the specific information. Each initiative group, challenges ahead and the best ways of their institution, organization or production group solutions. begins its activity with business, which will The business plan provides objective reflected a range of challenges for reaching information on opportunities for growth in goals. Identifying difficulties in some separate production, ways of product movement in the parts of the business plan provides the best market, price, income opportunities, main possible ways of solutions. Business plan is a economic results of the financial and management (management system), which economic activity of the company, improves the business of the company determining the risk and ways of reducing it. regardless of the field of activity. Based on it, the internal issues related to the Business plan is used not only in the internal company management are solved, and document, but also to enhance profitability. external issues on strengthening relationships Business plan is an objective evaluator of own with other companies or organizations.
The business plan includes information about activities (what should be done, how it should be done, when it should be done), activity (what is required), financial details (existing resources, credit opportunities, financial resources), and opportunities and market strategies as well as personal information of Entrepreneur . A business plan is a document that is used for brief information on the business purpose of Entrepreneur, providing legal status and mobilization of resources for starting business. 2. DEVELOPMENT OF BUSINESS PLAN
Functions of business plan: 2. Market plan is one of the key components Improvement and perfection of the company's of the successful plan and it includes all goal; product and market movements. Maintainance of cooperation and deep 3. Many types of business are the form of relations of the company; goods and services, or the combination of Assessment of production and non-production these two which is offered to the clients. This expenditures; part of the plan explains how to set up a Analyzing and identifying the acting business that is called operation plan. companies, pricing, clients and others; 4. It is difficult to conduct a good financial Permanent assessment of the company's management properly, because only after the financial condition on the basis of existing commencing the activity it is clear, where resources; expenditure and income is. It is important to establish a good financial plan so that the What does business plan give to the company could manage its income. Provision company? of future sustainability of the company on how Company promotion in the market and much will be earned and how much funds has economic changes; to be expected. For example, if the Increasing intellectual ability of the company expenditure is more then income, then the staff; price will be higher. The business plan provides Possibility of maintaining the investment opportunities to access bank credit, because resources and attracting investments; most banks want to know the sales, Involvement of qualified specialists; expenditures, and income expected, as well as Finding client and a strategy of promoting money turnover before issuing a loan. The work with competitors; business plan provides details of the required The company's or enterprise's access to resources and can be given to the potential permanent raw materials without advance investors. payment; Prevention of the probability of bankruptcy. 2. DEVELOPMENT OF BUSINESS PLAN
5. To complete all these activities, qualified buy and install machine, aggregate or some specialists are required and it is necessary for equipment for the promotion of his business, the company to develop a group plan. which is called a management and 6. It is most likely that the company or maintanance plan. enterprise, in the process of its activity, will
2.1. Market plan 2. DEVELOPMENT OF BUSINESS PLAN
Product or service: What should be sold? How much the market can raise; Production or thinking about the same goods On the basis of loss-free analysis and or service that should be sold; provision of targeted profit; Looking for the same goods or services that attracts the client; How is the market price determined? Finding materials at affordable prices and Demand – Usually consumer has сlose offering with reasonable price as well; demand if the price is low. If the market price Improving the quality of goods and services; is high, consumers are reducing the volume Packaging of goods; of their purchase.
Price is the expression of product value, in Types of price other way - it is money, buyers pay for your product or service. It brings income, covers Wholesale price; all expenses and provides some profits. Retail price; Prices for new products - attractive prices Methods of pricing Prices for the high quality products; Method of expenses of total profit; Contract prices; Comparative method, price of your Competitive prices; competitors; Free prices.
We bring carrot as an example that manufacturer wants to grow it. He wants to learn the market, and while learning he finds out information about the price of carrot and the demands for its quantity. The table below shows how many kg the consumers buy at different prices; when the price of carrots is very high, the consumers may consume other vegetable as an alternative. They are called replacing products and cheap and consumers can buy them in large quantities. 2. DEVELOPMENT OF BUSINESS PLAN
Why do the prices change? Types of advertisements (market news, propagation and agitation): The prices change according to demand and supply. As a result of these changes, product Advertising through radio, newspapers, prices are also changing. Manufacturers need magazines, mass media; to understand these changes and adapt their Reducing price for providing the product in business activities to it. large quantities; Signs; Offering the product to the market Posters; Free samples; This section is the main source of marketing Trade with the product delivery; for sale, which is attraction of demand to the Culture of trade and servicing; products and services. Advertising is the way Quality and duration warranty; of describing the products quality to the Product reliability; buyers. It includes various advertisements, Offers to attract customers to see new public relations, study activities and products information directed to the buyers. Selling the implements; Establishment of cheap selling plan, which is based on the volume and total price of the sale.
Introducing or advertising is the process of raising awareness of customers about products and services and attracting the clients to purchase them. Advertisment and announcement, include the advertisment of sale, public announcement and individual sale. Attract the clients by means of advertisement to buy your products and services. The best way to advertise is the sign, board, banner, handouts, business cards, price lists, photos and magazines. 2. DEVELOPMENT OF BUSINESS PLAN
2.2. Financial plan donated from donors or taken as credit; The total amount requested must be clear (and not exceeding the amount of permanent Budget All enterptises must have a budget. Budget is grants); the calculation of value or the price of the Calculate the trade / sale price. It should project, and always comes from spendings - exceed the total expenditure (if it’s less, there project expenditures and incomes – the is no income); resources that are included in the project to pay the spendings. It is impossible to control Spending of money and determine the project implementation Make a list of all the expenditures; without budget. If you don't know the price, Calculate the cost of all the expenditures (in you do not know how much money you need. the currency determined in the list); Your caculation should be real (show total calculation); Income Involve all sources important for funding the The money should be spent in accordance project (own resources, contribution of with the planned activity program; participants, grants, materials, and donated Calculate the rental payments of the things services and loans, and funds requested from taken from the private sector and mark them the investors. under the expenditures (and receipts); Calculate the rental payments of the items Calculate the total spending;
Formula of determination of net price of the product: 2. DEVELOPMENT OF BUSINESS PLAN
After considering the influencing factors, the begins. This requires the study and careful entrepreneur must set goals regarding the review. Why it is important to determine the product price. These goals can be: increase of cost of goods / services offered by the profit, increase of sales volume or taking a businesses? competitive position. Then, the pricing process
Simple example from the market: It shows that the seller should sell almost 180 kg of potatoes every day in order to cover the expenditures and get income. If the seller sells 180 kg of potatoes every day, this quantity of product is considered to be loss-free for the seller. 2. DEVELOPMENT OF BUSINESS PLAN
Simple formulas for small entrepreneur:
Recording of a daily product turnover is very important for the entrepreneur (example);
DAILY CASH RECORDS Date ...... 2. DEVELOPMENT OF BUSINESS PLAN
Breeding The Gulshan-4 village is the border of Hamadoni district and is suitable for agricultural activities. The village has 158 households and its population is 974. Firuz Nurkhonov is one of the activists of Gulshan village, and he was the first to offer cattle breeding in the village. A group of likeminded people have developed a plan on raising the production of cattle and improving the quality of cattle and offered to analyze it in the area. The members of Chaman CIG under the leadership of Nurkhonov Firuz have set themselves a goal to increase the productivity of the cattle in the Gulshan-4 village of Farkhor district with breeging the Swedish breed. At the same time, with realizing this subproject, they had a goal to reduce the poverty rate in the village, and improve livelihood of village households and make additional income in CIG households. - Planning and studying the market - Before submitting subproject, Firuz has studied the local market and identified the needs of the people. According to his studies, he realized that by introducing large productive livestock breed, he could raise the local livestock and fully provide people with milk. For raising livestock the Chaman CIG that has 25 members, has purchased 6 Swedish cattle in March 2016. In that period, each cow has been giving from 8 to 15 liters of milk and the members of the group have been using this milk in abundance. The number of cows up to date has reached to 14. “- We purchased 6 cattle of Swedish breed at the expense of the Ecological Land Management Project. Everybody knows that this type of cattle has too much milk and meat. Therefore, we went to the Khojamumin cattle farm of Farkhor district and have purchased the biggest and youngest cows, so that they could calve more than once. Up to now, we have been drinking its milk, and giving to the members of the CIG.” 2. DEVELOPMENT OF BUSINESS PLAN
Future plan At the same time, Firuz aims to increase the number of cattle to 30 and then distribute it among the group members. With this purpose, he wants to get his goal ahead of time. If he starts the distribution of cattle today, the cattle growth will be slow. Firuz says they have all conditions for breeding and wintering the cattle. “- Moreover, we aim to raise the number of cattle up to 30, as we have opportunity to provide more than 30 cattle with feed. This year I reserved 3 tons of livestock feed for the winter. Nowadays, calved cows give up to 40 liters of milk, which is enough both for delivering to the members of the group and buying feed for the livestock.” The most amusing is that from the profit of selling milk Firuz has purchased another Swedish cow with its calf and the total number of cows reached to 12. At the same time, as veterinary specialist Firuz aims to increase the number of this cattle breed to 30 and expand breeding farm and it gives opportunity to create new vacancies. Last year, members of the group sold 12 local breed cows and purchased feed for the cows of pedigree stock. This means that during the year, 6% of low-productive cattle was decreased. Besides, through Swedish cattle 100 local livestock were artificially inseminated and 80 per cent of it was successful. As a specialist, Firuz wants to explain to the village people about both ecological and economic benefits of productivity of livestock. 2. DEVELOPMENT OF BUSINESS PLAN
Business conclusion making comes to an end Use the qualified experts advice for timely and when you plan every step of your business qualitatively completion of the planning separately and focus on the issues raised phases; above, and do not ignore the simplest Do not ignore the main priorities while shorcomings. Because in the future, this will planning; be the only document that will strengthen Try to reduce risks that threaten your business. your confidence against creditors and banks Example: The goods you produce should have and, of course, you will succeed. the buyer, or your production is not enough for customers and others. Use these operating rules to get your job done: That is, after proper preparation of the Try to work with your group at all stages and business plan, it is time to search and find divide the tasks and responsibilities among the capital. team members;
3. MOBILIZATION OF RESOURCES
In order to mobilize resources efficiently, three Mechanisms of resource mobilization - elements should be emphasized that together they Mechanisms are a real process of request or are called a framework of resource mobilization. acquisition of resources, for example, writing the Three components of this framework are the requests, conducting the money search events, following: selling the goods, selling the services, meetings, Resources - Money is one of the key resources, but etc.; there are also other resources that are important Funding sources are banks, micro-credit for commerce; example, skills, workers, factors of organizations, government organizations and production (seeds, tools, land, etc.); charitable organizations. However, the sources mentioned above have both advantages and disadvantages: 3. MOBILIZATION OF RESOURCES
A new entrepreneur needs to learn a lot about which must be repaid later with a certain financing sources, to get the best terms of additional percentage. According to the repayment. Types of important funding for contract, the loan may be paid in whole or in business startups are own resources, loans part. Due to the repayment requirements, the (private or credit program) and grants. loan usually puts pressure on business. The more loan you take, the more is the percentage 3.1. Owner’s resourses and partial payment. Money can be borrowed for the following: This is a private fund that has been put into Land and building; business. In some cases, it is called dangerous Equipment; fund, because if business fails, the money will Work materials. be lost. It's dangerous to put your money into a business, but in comparison with credit it has To request a loan, there are following less pressure. It's dangerous to put your own requirements: money into a business, but in comparison with A detailed business plan with a business idea loan, it has less pressure. It's dangerous to put that the credit organization believes in it; your own money into a business, but it shows Collateral may be required. Collateral is that you believe your business idea. It can also guarantee that a credit organization requires encourage others to make investment. If you for the loan repayment. This may be business, do not have enough money, find a partner who house, car and other equipment; wants to invest in your ideas. The partner can To have an account or to be the member of or cannot be involved in business, but can bank, credit organization or assosiation, and make investment. Make sure that your using your account successfully for a long time; partnership terms are clear, so that in the Keeping a part of the credit on the account as a future there is no misunderstanding beetween guarantee; you two. Information about person / persons and the of loan repayment ability; 3.2. Credits Certain age (usually 18 or older); Guarantor (honest persons and having good position in society). Loan for commencing the business is money, 3. MOBILIZATION OF RESOURCES
When a loan should be taken? 3.3. Grants In case of a reasonable lack of funds in the business investment plan; Grant is the help that the government or In case if resoursing and group financing organization offers to start a business. are impossible; Sometimes government and In case if there is good opportunity and is non-governmental organizations are able necessary to take immediate amount of to provide entrepreneurs with the support money. of their small businesses. Other information on the assessment of funding Where a loan can be taken from? through grants is provided in the later Banks and financial organizations; sections. Communities and associations; Friends, relatives, family members; Suppliers; Government; Resource and credit cooperatives.
“Your first plan should assess the goals, expenses and pricing for the service. After starting a business, you'll find out that the plan should be updated on the basis of daily activity. A business plan is a document that is unstable and may change in every situation. It is not guaranteed that your business will succeed, but well written and researched business plan plays an important role in your business success”.
V. ELIMINATION OF BARRIERS AND ERRORS
In many cases, traders activity lasts not more than 2-3 years. Regardless of this fact, there are many conditions for supporting business development in the Republic. Barrier of development of the new entrepreneurs is simple mistakes, that they face, and they terminate their busines. They think that after making one mistake, the entrepreneurship activity is over for them, but it's not like that, look at the table below; V. ELIMINATION OF BARRIERS AND ERRORS
VI. USEFUL RECOMMENDATIONS TO SUCCEED
1. Carry out the work that you like: And if you have not found yet then look fot it; 2. Be consistent and persistent in your aspirations, because only in this case you will achieve something. 3. Learn more about the experience of others and use the best for yourself. 4. Always analyze your strengths and weaknesses before starting your work, because you will miss the time. 5. Try to do your best to increase your relationship with partners and don't be upset from failure in business. 6. Don't stay in one place, search for new ideas every day and gradually expand the direction of the activity. 7. Take the activity into your own had and control the legal and law aspects of business continuously. 8. Learn from your work and become better in it. Because you have put aside other activities and ideas for this one. 9. Always ask customers about the quality of your products. And collect more nice friends aroud youself. 10. Don't run away from mistakes but learn more from them.
VII. LITERATURE AND SOURCES OF INFORMATION
1. businessdictionary.com 2. economictimes.indiatimes.com 3. 2009, Project for Public Spaces, Inc, by David K O’Neil 4. durahshon.tj 5. Law of the Republic of Tajikistan About State Support And Protection of Business 6. Michigan Small Business Development Center, 2016 7. WWF, Handbook in Entrepreneurship, 2012 Sweden 8. Department of innovation, trade and rural development, [email protected] 9. Prescott-Russell Community Development Corporation, www.sdcpr-prcdc.ca 10. Writing a Business Plan, SBDC 11. masterclassmanagement.com