BUSINESS PLAN WRITING
WHAT IS A BUSINESS PLAN?
Your Business Plan marks the point at which an idea or opportunity gets into reality. You map out what your Business Plan will entail. A Business Plan is a critically important component of any business, small or large size Enterprises. A proper Business Plan is the foundation of any successful business and is instrumental in securing funds for your Business. Writing a Business Plan should be thought of as an ongoing process and not as the means to an end. In fact, when it comes to writing a Business Plan, the process is just as important as the final outcome.
A Business Plan is a working document that reflects the business strategy of a company, its product/service offerings, operating structure, and most importantly, its financial plan. It needs to show the company’s strategy going forward, to ensure the sustainability and growth of the business. The document should be maintained by all businesses. A Business Plan should also be drafted for a start-up business, then updated when necessary thereafter.
When Entrepreneurs and Financiers talk of a Business Plan, they are referring to a Comprehensive Business Plan, a complete document that provides an in-depth analysis of the critical factors that will determine the business’s success, along with all the underlying assumptions.
It is crucial that the foundations of the Business Plan be based predominantly on verifiable facts and market research including changes in market forces affecting the business, key risks and mitigation factors, as opposed to opinion and belief. The Business Plan should demonstrate that the business venture is commercially viable and that all those involved in the business have the skills and knowledge to deliver on the plan.
A common misconception exists that a Business Plan is only used once-off to acquire funding or investment for a business. Research has shown that Business Owners who manage their businesses according to a well-devised Business Plan are significantly more successful than those who claim to be naturals. There are a number of reasons why a business fails, which could have been avoided if the Entrepreneur had drafted a proper Business Plan. Most of the businesses that fail have never written a Business Plan, while many studies have shown that businesses with Business Plans have a higher probability of success. Experienced business owners will tell you that the Business Plan is a very important management tool.
You don’t need an MBA degree or any other qualification to write a Business Plan, but if you are compiling one for the first time, you likely will need to invest some long hours in order to get it right. If you hire a Business Plan consultant/writer to draft your Business Plan on your behalf, you will be charged for their time to perform all tasks to deliver the Business Plan document.
A Business Plan differs according to the size and technical complexity of the business.
BUSINESS PLANS FOR FUNDING
Many people, including consultants/writers operating in South Africa, use a cheap Business Plan software package that does all the work for them, or use pre-written templates or copy and paste content from existing Business Plans, or use a combination of the above methods to populate documents so that they can churn them out quickly. It takes the said consultant/writer a day or two, to populate such a generic Business Plan document. If a Business Plan will only cost you a few thousand rand, or you will be charged a set price (regardless of what the price is) for your Business Plan, without the complexity of the Business Plan being determined by the consultant/writer, or your Business Plan will be completed in less then three weeks, then it is almost certain you will get a Business Plan document that is populated by the above-mentioned methods. These Business Plan documents, including pre-written/ready-made Business Plan documents sold online, will be generic and not suitable for funding purposes. Most of these consultants/writers have a whistles and bells website, with the right lingo. Financiers can easily distinguish between a cheap/low priced “professional feel” populated Business Plan document and a Proper Business Plan. The submission of a generic Business Plan may jeopardise your chances of securing funding or investment. These sub-standard Business Plan documents are not bankable, irrespective of what is claimed.
The cheaper the Business Plan package/option, the less detail the Business Plan will contain since it will take the said consultant/writer less time to create such a Business Plan document. If you are not required to provide the details of your strategy, business operations, competitors, finances, etc. about your business, this means that you will not participate in the writing of your Business Plan. If you wish not to participate in the writing of your Business Plan, it is unlikely that the business will succeed. This means that you will get a worthless one-size-fits-all Business Plan – a document that will gather dust on your bottom shelf.
It takes 150 hours plus to deliver a Proper Business Plan. The duration will depend on the complexity of the Business Plan itself. When submitting a Business Plan to a Financier as part of the funding application process, the content of the Business Plan should contain substantial detail to convince a Financier of the prospective success of the business venture.
Through my experience of 23 years, I can say that a mere 25-page Business Plan, which is a basic detailed document, will not be suitable to submit for funding purposes, regardless of articles published on the internet by so-called “expert commentators”. The more facts in the Business Plan, the easier it is for a potential Financier to decide on whether to fund or invest in a business. Most South African Government Funding Institutions require a detailed Business Plan document, including Financial Projections for five years. The business venture’s funding amount requirement is not the determinant factor to determine the number of years that is required for the Financial Projections and is neither applicable to determine the detail level of a Business Plan. South African Government Funding Institutions (NEF, IDC, DTI, SEFA, etc.), Commercial Banks, Investors and other Financiers expect convincing and substantiated detail in a Business Plan document, regardless of the funding amount requirement.
Financiers require a well-documented Business Plan that needs to be clear and easy to read and understand. Government Funding Institutions and other Financiers criteria regarding a Business Plan are standard, regardless of the funding amount requirement.
You need a Proper Business Plan to get funding or investment. This is obvious, but you only get one opportunity to impress Financiers.
All cheap/low-priced Business Plans and most entry-level Business Plan packages/options offered in South Africa will be off-the-shelf documents. A Financier can easily distinguish between a software/template-driven Business Plan document, an AI-driven Business Plan document, a cookie-cutter (copied and pasted content) Business Plan document, and a Proper Business Plan. The submission of a generic Business Plan could jeopardise your chances of securing funding or investment. These sub-standard Business Plan documents are not bankable, irrespective of what is claimed.
A proper Business Plan is a comprehensive Business Plan document, which is written from scratch. A real Comprehensive Business Plan is a high-end/high-level document, which is obvious. The content of all cheap/low-priced Comprehensive Business Plans and entry/mid-level Business Plan options/packages offered will not be comprehensive, irrespective of what is claimed.
A Business Plan Expert will force you to think about your business.
OUR BUSINESS PLAN WRITING SERVICE
BPC.CO.ZA is not an off-the-shelf or a template-driven Business Plan Company. This means we do not use off-the-shelf Business Plan software, nor do we customise pre-written Business Plan templates to create generic Business Plan documents, therefore we do not have various Business Plan packages/options with set prices. We will write your Business Plan from scratch so that we capture the unique aspects of your business fully. This allows your Business Plan to stand out, especially from businesses similar to yours when Financiers assess them. We also challenge your strategy and assumptions.
Your Business Plan will be fully bankable, written specifically for your business venture. Our primary role is to assist you in writing a clear Business Plan, to show Financiers that your business venture is well thought out, competitive and likely to succeed. Our process will ensure that the Business Model of your business venture is portrayed accurately. We will compile the Financial Projections section of your Business Plan with a Excel-based Financial Forecasting program, specifically developed for BPC.CO.ZA. Your Financial Projections will be compiled in your preferred currency reference. You need a realistic and detailed Financial Projections to show Financiers that your business venture will be profitable, and that the business will have sufficient cash flow available to afford its monthly business loan instalments, operating expenses and other financial commitments.
Your Business Plan will be comprehensive, meaning that you get a full-length detailed Business Plan document that will comply with the criteria of all Commercial Banks, Government Funding Institutions (NEF, IDC, DTI, SEFA, etc.), Investors and other Financiers in South Africa. We have a zero% rejection rate from Financiers and Investors regarding the content quality and structural layout of our Business Plans and Financial Projections since our inception in 2006.
The Business Plan Writing service starts once our quotation is accepted with a 30% deposit payment.
CONTENTS OF THE BUSINESS PLAN
• A cover sheet with the business logo
• Table of Contents
• Executive Summary
• Description of the business opportunity
• Mission and Vision Statement
• Core values
• Objectives
• Keys to success
• Description of the business
• Sales and Marketing Plan
• Product(s)/service(s) description
• Pricing
• Market and Industry Analysis (including target market)
• Macro-Economic Analysis
• Competitors Analysis (an evaluation of the competitive environment)
• Competitive advantage
• SWOT Analysis (strengths, weaknesses, opportunities and threats)
• Development/Expansion Plan
• Milestones and Timelines
• Ownership and Shareholding
• Human Resources Plan (including staff remuneration)
• Organogram
• Operational Plan (including Location and Supplier Analysis, if relevant)
• Regulatory compliance
• Risk and Mitigation
• Production Plan (if relevant)
• Production processes (if relevant)
• Production costs (if relevant)
• Socio-economic benefits (required by Government Funding Institutions)
• Financial Plan with detailed Financial Projections
The service includes the compiling of Financial Projections for five years
• Sales Projections (the revenue streams, including sales volume and revenue per unit) – monthly for the first 24 months, then annual for years 1 to 5
• Income and Expense Statements (operating expenses, depreciation, business loan(s) interest costs, income tax, EBITDA, etc.) – monthly for the first 24 months, then annual for years 1 to 5
• Cash Flow Statement – monthly for the first 24 months, then annual for years 1 to 5
• Balance Sheets – monthly for the first 24 months, then annual for years 1 to 5
Also included:
• Breakdown of business set-up costs (fixed assets to be purchased, initial stock requirement, start-up expenses, working capital, contingency, etc.)
• Breakdown of the funding requirement
• Breakdown of the Business Loans
• Funding Amortisation Table for each business loan
• Breakdown of the Fixed Assets to be purchased with Depreciation
• Split of the Revenue, if relevant – the Revenue Streams
• Assumptions for revenue drivers
• Break-even Analysis
• Projected key Financial Ratio Analysis
• Sensitivity Analysis (planned, optimistic and pessimistic scenarios)
• Explanatory notes to the Financial Projections
APPENDICES
Supporting documents.
PAGE COUNT
50+ pages. The length of the Business Plan will depend on the complexity and scope of the business operations of the Company to be contained in the Business Plan document.
OTHER INCLUDED
1. We will conduct our own market research (secondary) to supplement the information you already have available. We get the industry and market information from credible sources in journal articles and databases on your industry, specifically for the South African market. The latest available data are used.
2. Professional and personal service by an “ex-Business Bank Manager” with twenty years of business funding experience gained in various senior positions.
3. Step-by-step guidance throughout the entire Business Plan process.
4. Regular progress updates.
5. A signed Non-Disclosure Agreement (protecting your interest).
6. A Project Debrief Session (if required).
7. Narrative colour charts and graphics.
8. The text part of the Business Plan is presented in Microsoft Word format for future editing.
9. Your Business Plan document is presented in electronic media.
10. A print- and read friendly PDF format version of the Business Plan (one PDF document).
11. We provide you with a post-project guarantee.
Duration
The duration will depend on the complexity of the Business Plan to be written.
Process overview
1. We request a 30% deposit to start the Business Plan writing service.
2. We will request initial information regarding the business operations, strategy and finances of the business venture.
3. We require a second payment upon submission of the required information.
4. After receiving all the required information, we will conduct our own Market Research (secondary) and write your Business Plan.
5. Upon receipt of the balance payment, we will send you the full Business Plan document for review.
Additional value-added service
As an additional value-added service, we can provide you with a Business Plan Pitch Deck, designed to international best practices. A Business Plan Pitch Deck is a brief presentation (created using PowerPoint) and is used to provide your audience with a quick overview of your Business Plan. You will use your Business Plan Pitch Deck during personal (face-to-face) or online meetings with potential financiers, partners, clients and other stakeholders. The Business Plan Pitch Deck can, at an additional fee, be created after the Business Plan has been completed.
Click on the tab below if you require a Business Plan Writing service.
