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A Free Business Plan Example to Launch Your South African Business This free Business Plan example provides you with a sample business plan as well as guidance on how to write a business plan and important sections to include in your plan.

By Catherine Bristow Scott • May 28, 2019

You're reading Entrepreneur South Africa, an international franchise of Entrepreneur Media.

It pays to plan.

Research conducted by Harvard Business Review found that "entrepreneurs who write formal plans are 16% more likely to achieve viability than the otherwise identical non-planning entrepreneurs."

Simply put, writing a business plan could make the difference between business success and failure – which is why planning now could pay dividends as your business gets off the ground.

But where do you start when writing a business plan? In this comprehensive business plan example, we provide you with what to include in your business plan and a sample business plan to help you to create a compelling plan for your start-up.

1. Executive Summary

If you have seven seconds to make a strong first impression in person, an Executive Summary will be the make-or-break section of your business plan – so make this section count.

As a brief outline of your company's purpose and goals, the Executive Summary should generally take up 1 to 2 pages of your business plan. Some key components to include in your business plan are:

• A company description
• A brief summary of your products or services
• The company objectives
• A short but thorough overview of the market
• A justification for viability, particularly "why now?"
• A snapshot of your business's growth potential
• A short description of the organisation team
• Your marketing plan
• Financial projections

Importantly, your Executive Summary must clearly depict the Problem, the Solution, and carry a sense of timeliness – why now should your business be considered as the solution to solve this problem.

NOTE: The following Business Plan Example is based on a fictional company. Figures will not reflect the exact financials of a similar company.

Example of a Business Plan Executive Summary

Snug Sneakers is a sneaker shoe range based in Cape Town that currently focuses exclusively on selling locally produced men's and women's custom sneakers.

The business was founded by David Smith and Stewart Bruce, who have both been working within the retail industry for over 20 years, David Smith, a serial entrepreneur has also founded successful brands – Creative Caps and women's cycling brand Pedal Power.

The brand is currently selling online, however has also recently diversified to selling in independent shoe shops.

The company is projecting to sell R2 million in year 1 and R8 million in three years' time. Additionally, there are expansion plans within year 2 to set up distribution networks in Johannesburg, and Durban in the early part of year 3.

Both David and Stewart are social entrepreneurs at heart and believe in providing sustainable jobs for impoverished communities.

As such, the company has started a recycling and training academy in Khayelitsha, where consumers can return old sneakers that are then repaired by Khayelitsha residents and donated to those in need of shoes. This also provides learners within the academy with shoe-making and recycling trade skills.

Industry research has shown that, on average SA consumers own 4 pairs of sneakers, with 4 in 4 consumers indicating that shoe fit and sizes vary across brands.

3 in 4 consumers indicated that their number one concern when purchasing is having to "settle' for the best fitting shoe, despite the fit not being 100% correct.

Based on these and additional industry research statistics, the company's sneaker products are driven to provide the best shoe fit, with the tagline of "shoes that fit so good, you'll never go barefoot again.'

The main competition to Snug Sneakers comes from 1 local brand, SuperStars, and 2 overseas brands Sassy Sneakers and Rock Your Sneakers.

Although SuperStars supports sustainable use of local manufacturers, the competitor does not provide custom fit sneakers. Sassy Sneakers and Rock Your Sneakers both offer custom fit sneakers, both brands are manufactured in China and do not promote sustainable, social conscious value propositions.

The primary means of marketing will mainly be focused on digital marketing, through evidence-based approaches, including search engine optimisation, Google Ads, Facebook Advertising as well as utilising social media channels that have proven very popular for the company, including Instagram, Pinterest and Facebook.

The locally sourced raw materials, which include cotton, rubber and leather, will be supplied from a sustainable cotton mill and tannery in the Limpopo Province.

Funding for the company was derived through the 2 founders, as well as private investment.

2. Business Overview and Objectives

Creating an overview of your business when you are already established makes it easier, but it may be a little harder when you're either just starting out or haven't even kicked off your operations yet.

When you're just starting out, think about your products and services as your starting point.

• What will you be providing your market with?
• How will you be sourcing/ producing these items?
• What do you need to have in place before you can start selling your products?
• Who will be distributing/ manufacturing your products?
• Importantly, who will your target market or customer be?

In our example business plan, Snug Sneakers serves both retail and online customers, although the bulk of the business is through their online clientele.

This means that Snug Sneakers will need a secure e-commerce platform and a website that has carefully considered the user journey when buying custom sneakers.

The company will also need employees to assist with technical challenges, customer support, and warehouse staff for the packing and distribution of their products.

Similarly, you would need to consider the following when identifying their business objectives:

• What industry will you operate in?
• Who will be your customer?
• What is the problem that you will be solving?
• How will you solve this problem?
• Where will my business be located?
• What equipment and resources will I need within my business?
• What type of employees do I need?
• How will I differentiate my offering from my competitors?

After answering these questions, you will have a better understanding of what it is that you will be offering and what you need to make it happen. A summary of these points will make up your Business Overview and Objectives for your Business Plan.

Example of a Business Overview and Objectives

Snug Sneakers, based in Cape Town South Africa, is focused on providing sustainable, locally produced custom footwear to South Africa, and internationally through its e-commerce platform and local distributor network.

Founded by entrepreneurs David Smith and Stewart Bruce in December 2017, from Stewart's garage, Snug Sneakers grew exponentially within 1 year from 5 online purchases a month to an average of 200 per month within 12 months.

From the company's rapid growth, it became very clear to the founders that there is a gap in the South African market for locally produced, quality sneakers.

The founders' vision for Snug Sneakers is to become a socially conscious, sustainable brand that supports the South African economy by buying 80% locally produced raw materials.

Additionally, the duo noticed a gap in the market where consumers were looking for custom-fitted shoes and remain loyal to the brand that fit them best. To this end, Snug Sneakers offers a wide range of shoe sizes including quarter and half sizes to ensure that all customers find the right snug fit for their feet.

The overarching philosophy and ethos for the company are:

• "Soul sneakers' that allow customers to purchase sneakers that promote social consciousness.
• "South African sourced' sourcing locally produced raw materials that provide job sustainability.
• Superior sneakers' ensuring that customers still get a high-quality product that outmatches popular brands in workmanship and quality.

Company Status

Snug Sneakers was registered as a PTY (Ltd) on 1 December 2017. The main directors are David Peter Smith and Stewart Owen Bruce. Company shares are held by the founders.

The company currently operates out of rented commercial property in Blackheath, Cape Town.

Company Objectives

Snug Sneakers is currently selling custom sneakers primarily through its online store https://www.snugsneakers.co.za , with market penetration nationally, and highest market penetration in Johannesburg and Cape Town. Sporadic orders have also been received from the USA and the United Kingdom.

The company has also partnered with 3 independent shoe and clothing retailers focused on selling locally-sourced South African apparel.

The company has identified a 2 phased upscaling approach for growing sales and operations:

• Increase online sales by 40% within a 6-month period of 2019
• Increase brick-and-mortar retail partnerships from 2 stores in Cape Town to an additional 4 stores in Johannesburg by year end.
• Increase online sales by 50% by end of year 2020
• Explore opening up a brick-and-mortar store in the Canal Walk Shopping Centre, Cape Town
• Increase brick-and-mortar retail partnerships to include 1 store in Durban.

3. Products and Services

In this section, you will be unpacking your product and services offering, especially your key product differentiation from your competitors. Importantly, in this section you will also need to validate why your product is needed by your customers.

If you have applied for any patents, copyrights, or trademarks, you would also include these in this section.

Products and services that already exist may not need a deep analysis of what they are within your business plan.

However, if you're creating a completely new product or service (if you were the first Uber of the world), carefully detail in this section what your product is about, it's uses and the value it brings to the market so your readers will be able to evaluate the value of your product and services.

Some important aspects to cover include:

• The anticipated timeline to bring your new product to the market.
• What differentiates your product or service from those already available in the market.
• What will your operating costs be and profit margins.
• How will you source/ manufacture your product.
• How will the product be distributed to customers.

Example of Products and Services

Snug Sneakers will provide a line of custom sneakers for both men and women. The main product lines include:

• Casual Range: Everyday sneaker footwear
• Active Range: Active gym range of sneakers
• Fashion Forward Range: Formal but funky range of sneakers

Current pricing of the sneakers as follows:

• Casual Range: R550
• Active Range: R950
• Fashion Forward Range: R850

Competition

There are three main competitors that have been identified within the market. These include:

Local competitor:

1. SuperStars 40% locally made raw materials, with 60% of the raw materials originating from China. The brand however does not provide custom-fit sneakers.

Foreign competitors:

2. Sassy Sneakers are based in Australia, with the product line produced in China. The company offers custom fit sizes, however customers have to pay extra for the custom fit and product quality is low.

3. Rock Your Sneakers is a US based company, with the product line produced in China. The company offers some custom fit sizes, however the sizes are limited and the product is only available to South African's online and with a long lead time to delivery.

Snug Sneakers products have a unique differentiator within the market:

• A greater range of custom fit sizes ranging from ¼ - to half sizes as well as broad and narrow width ranges.
• The company will be the only brand within South Africa to offer 80% locally manufactured sneakers.
• Quality of the products is superior to the current locally-made competitor, due to locally sourced high-quality raw materials.

Future Products

The company has also been looking into introducing a line of sneaker care products to assist customers in increasing the longevity of their purchases.

4. Competitive and Market Analysis

Providing evidence that there is demand for your product or service is one of the most critical components of your business plan. Key to this is understanding your market and your competition within that market.

Embarking on market research requires you to have a deep understanding of what your market is and the opportunities inherent within it. You should be able to define:

• Target Market. The types of customers you will be targeting with your product or service.
• Market Need. If there is demand for your products and services and whether this is increasing or declining.
• Competition. The positioning of your competitors in the market and how you will differentiate your offering from them.
• Barriers to Entry. What will prevent someone else from providing the same offering or better.
• Regulation. Regulations that will be applicable to the industry that your business will be operating in.

Example of a Market Analysis

Target market.

With our initial line of casual, active and fashion forward sneakers, we're looking to target the following consumer segment:

• Age: 16 -36
• Digital Savvy: Researching and shopping online is part of this customer's DNA. The target market is also very active on social media platforms such as Instagram, Pinterest and Facebook.
• On Trend: Fashion forward and looking to illustrate their unique personalities, the target market is always looking for fashion to express their uniqueness.
• Social Consciousness: The target market is proudly South African and are highly conscious of the socio-economic issues and have a keen desire to take part in improving the SA economy, uplifting communities and supporting local initiatives.

Market Need

According to a Global View Research Marketing Report, the global athletic and leisure footwear market size was valued at USD 67.8 billion in 2017. The report found that this value is expected to expand at a CAGR of over 8.0% from 2018 to 2025.

The ever-growing awareness with regards to the health benefits of sports and fitness activities, as well as an expanding retail e-commerce sector globally, including increasing levels of disposable income amongst millennials are estimated to be the key reasons for increasing market growth in this market.

Additionally, the Global Sneaker Market 2018 Industry Trends and Sales report found that although the global brands reported increased profit margins in 2017, these have decreased by 1.5% from 2016.

On the other hand, independent Sneaker retailers have reported a 15% increase in sales, particularly online, in 2017, indicating that consumers are moving away from global brands to pursue lesser known boutique footwear retailers.

• SuperStars is based in Johannesburg and provides sneakers with 40% locally made raw materials, with 60% of the raw materials originating from China. The brand however does not provide custom-fit sneakers.
• Sassy Sneakers are based in Australia, with the product line produced in China. The company offers custom fit sizes, however customers have to pay extra for the custom fit and product quality is low.
• Rock Your Sneakers is a US based company, with the product line produced in China. The company offers some custom fit sizes, however the sizes are limited and the product is only available to South African's online and with a long lead time to delivery. (Repeated above)

5. Marketing/Sales Strategy

You're on the right track when you have established that there's a market for your product and service and you have identified who your target market is quantifiably, but how will your market segments know to look out for or even buy your product and services?

This is where your marketing and sales strategy comes into play.

A well-defined marketing strategy goes beyond simply advertising your product and service – it includes a deeper understanding of how your customers will view your brand, what is the best way to reach your customers, the benefits that your customer will receive from using your service or buying your product.

Your marketing strategy must also include the budget for your marketing and sales efforts, whether you will require sales staff to sell your products and offer post-sales support, as well as how you will measure your marketing and sales efforts to evaluate their effectiveness.

Example of a Marketing Strategy

Marketing plan.

• Search Engine Optimisation : Our website pages will be optimised for search engine rankings, with the objective to rank within the top 3 search positions for keywords "custom sneakers", "custom size sneakers" and "custom made sneakers".
• Paid Search : Snug Sneakers will be investing in Google Ads and Facebook Advertising and well as Programmatic Advertising to increase landing page conversion rates.
• Social Media : We will be establishing a targeted social media strategy to increase followers across the social media platforms that have shown the highest engagement with the target market. High frequency posts will be created target at highest engagement times to increase engagement and brand awareness.
• Business Network : We will partner with independent apparel and footwear retailers to drive link building and link sharing both on website and on social media.

Customer Value Proposition and Value Differentiator

Although there is one locally produced sneaker competitor within the market, the founders believe that the customer value proposition being brought to the market is a unique offering and therefore a strong differentiator within the market.

The founders are cognisant that without this differentiator, the only differentiator will be price, which will ultimately have a negative impact on profit margins.

As a unique differentiator and value proposition, Snug Sneakers provides customers with Sneakers with South African Sole, leveraging the Proudly South African heritage and support for local initiatives to help grow South Africa's job economy and promote community upskilling and learnership programmes.

Additionally, Snug Sneakers will ensure that the quality of the products far outweighs those of global brands manufacturing in China. The most important differentiator, however is the ability to custom size shoes to each individual's unique size requirements.

6. Staffing and Operations

Strategy is irrelevant without execution – which is where your Operations Plan comes into play in your business plan. How will you serve your customers, while keeping your operating costs low enough to make sufficient profitability?

Your Operations Plan will detail how you will manufacture, staff, fulfil and stock your products, including your day-to-day operational requirements. Ultimately, this section describes how you will run your business.

Some questions to answer in this section include:

• Where will your operations be based?
• What is your management structure?
• What are your staffing requirements?
• What equipment, facilities and supplies will you need?
• How will you establish your suppliers?
• What will be the operational changes required should your company grow?
• What will your production methods entail?
• How will you service/ deliver goods to customers?
• What regulatory requirements must be in place? (Licences, permits etc.)
• How will you manage your inventory levels?

Example of Staffing and Operations

Management team.

David Smith is a serial entrepreneur who founded successful and well-known brands Creative Caps and women's cycling apparel Pedal Power.

David graduated from Stellenbosch University with a B Comm in Economics and went on to study an MBA at GIBS Business School. David heads up Snug Sneakers as the Chief Executive Officer (CEO).

Stewart Bruce has worked in the retail industry as a Senior Designer for well-known retail brands, including Puma and Sketchers.

With over 20 years' experience in designing active and casual footwear, as well as sourcing and overseeing materials for the product range, Stewart brings excellent experience to the management mix as Chief Design Officer.

7. Financial Projections

The bottom line counts the most when it comes to writing your business plan.

Without the numbers to prove whether your business will be profitable or not, potential investors or lenders will have a difficult time objectively deciding if your business will be a sound investment.

Aside from persuading potential investors, crucially, the numbers that you have crunched will also indicate whether you have a viable business.

There are five basic reports or cash projections to include in your business plan:

• Income Statement
• Balance Sheet
• Cash Flow Statement
• Operating Budget
• Break-Even Analysis

It's important to come up with credible financial projections for your business to illustrate that it is feasible.

One way to tackle this section is to break down the figures into various components, such as by sales channel or target market segment.

At this stage, you won't be able to supply exact figures, because you're still estimating your future financials, but by breaking down your guesses into components you will be able to determine a more realistic figure for each component, rather than hazarding guesses as a whole.

The business plan should be an ongoing, living document that can be used as your guide for running your business. It requires continuous adjustment as your business changes and grows.

Entrepreneur Staff

Sales Enablement - Content Division Manager

Catherine Bristow Scott is the Content Division Manager for Entrepreneur South Africa. With specialist expertise in developing SEO content, effective sales enablement content to drive lead generation, as well as digital strategy, Catherine brings an in-depth understanding of developing both written and video content to assist businesses in remaining competitive and growing their revenue.

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Professional Business Plan Specialists

News and articles, how to write a business plan: jtb answers your top 21 questions.

• Thommie Burger
• November 21, 2023

This comprehensive guide will systematically explore the process of writing a business plan. A business plan is a vital tool that helps entrepreneurs bring their ideas to life. It serves as a roadmap for a business’s success and growth and allows investors to assess a venture’s viability. This guide by JTB Consulting covers all the critical elements and questions answered around the concept of “How to Write a Business Plan in South Africa”.

How to Write a Business Plan in 2023

The guide also emphasises the importance of tailoring the plan to the specific needs and interests of the audience and being realistic and conservative in the financial projections . It also highlights the significance of creating a marketing plan to reach the target audience. By following these guidelines, entrepreneurs can create a compelling business plan to help their businesses succeed.

How to Write a Business Plan #1: Define Your Business

Before you begin writing your business plan, you must define your business. This involves determining your target market, unique value proposition, and competitive advantage. You should also research your industry to understand your customers and competitors better.

The executive summary is the business plan’s first section, providing an overview of the entire document. It should be concise, engaging, and compelling, as it is often the only part of the plan that investors read. The summary should include a description of the business, the products or services offered, the target market, the competition, the revenue model, and the financial projections.

How to Write a Business Plan #2: Create a Company Overview

The next step is to create a company overview. This should include a brief history of your company, your mission statement, and your company’s vision for the future. You should also have information on your company’s leadership and management team and your company’s legal structure.

How to Write a Business Plan #3: Market Analysis

In the market analysis section, you should provide a detailed analysis of the industry, the target market, and the competition. This includes the size and growth of the industry, the demographics of the target market, the buying habits and preferences, and the strengths and weaknesses of competitors. You should also explain how your business will differentiate itself and gain a competitive advantage.

How to Write a Business Plan #4: Develop Your Product or Service

In this section, you should describe your product or service in detail. This should include information on how your product or service works, its customer benefits, and its uniqueness from your competitors. You should also include information on your pricing strategy and any patents or trademarks you have.

How to Write a Business Plan #5: Outline Your Operational Plan

Your operational plan outlines how your business will run on a day-to-day basis. This should include information on your production process, supply chain, and distribution strategy. You should also have information on your staffing plan and any necessary technology or equipment.

How to Write a Business Plan #6: Define your Marketing Strategy

Your marketing strategy is how you plan to reach your target market and promote your product or service. This should include information on your target audience, your marketing channels, and your advertising budget. You should also have information on your sales and customer acquisition strategies.

How to Write a Business Plan #7: Create a Financial Plan

Your financial plan outlines how you plan to make and spend money. This should include your revenue streams, expenses, and profit margins. You should also have information on your cash flow, break-even point, and financial projections.

The financial projections section is one of the most critical parts of the business plan. It should provide a detailed analysis of the business’s revenue, expenses, and profits. You should include a sales forecast, a cost of goods sold forecast, a personnel expense forecast, a marketing and advertising expense forecast, and a capital expenditure forecast. You should also provide a cash flow statement, a balance sheet, and an income statement.

In conclusion, writing a comprehensive business plan is crucial in turning your entrepreneurial dreams into a successful reality. A well-written and researched plan can provide a roadmap for success, convince potential investors and lenders of the viability of your business, and help you make informed decisions. By following the steps outlined in this guide, you can create a business plan that is both comprehensive and compelling and set your business up for success.

Who can write a Business Plan?

A reputable Business Plan Consultant has experience working in and working with a broad range of businesses. The accumulated business history of a Business Plan Consultant makes the consultant treasured. A good Business Plan Consultant is experienced in several different types of companies and industries and has particular experience running a business. Knowledgeable Business Plan Writers have experience with companies at all stages of growth, from startup to maturity.

The Business Plan Consultant may also specialise in Business Coaching, Business Analysis, Executive Coaching and Change/Turnaround Management , helping struggling companies turn around and succeed. In other words, a good Business Plan Consultant has broad, specific experience and typically 15 years or more of accumulated business experience. Having an MBA or CA qualification isn’t enough. The Business Plan Specialist must have substantial real-world experience engaging with many client companies and within various industries to be an effective Consultant.

The Credentials of JTB Consulting, South Africa’s #1 Business Planning Company since 2006:

• Written Client Testimonials .
• Professional LinkedIn Recommendations .
• Past Clients we have worked with.
• Verified 5-Star Google Business Reviews .
• Expert Articles Written by our Team.
• Who is JTB Consulting? (https://bit.ly/2DtvJYo).
• Digital (Online) Video Resume of Dr Thommie Burger , our Founder.

What should you avoid in a Business Plan?

A business owner or entrepreneur must have a well-thought-out business plan to guide your company’s growth and success. However, not all business plans are created equal. Some may contain mistakes or oversights that can hinder your company’s progress. Here are the key things to avoid when creating a business plan.

What should you avoid in a Business Plan #1: Overly Optimistic Projections

One of the most common mistakes in business plans is including overly optimistic projections. While having a positive outlook on your company’s growth is essential, it’s equally important to be realistic. If your projections are too optimistic, it can lead to disappointment and frustration when your company fails to meet those goals. It’s important to base your forecast on solid research and historical data to ensure they are achievable.

What should you avoid in a Business Plan #2: Lack of Market Research

Another common mistake in business plans is a lack of market research. Understanding your market is crucial to the success of your business. Without proper research, you may not fully understand your target audience, their needs, and how to reach them effectively. Conduct thorough market research and include it in your business plan to demonstrate your understanding of the industry.

What should you avoid in a Business Plan #3: Vague or Unrealistic Goals

Your business plan should outline clear, realistic, and measurable goals. Vague or unrealistic goals can be challenging to achieve and may not give you a clear direction to guide your company’s growth. Be sure to set goals that are attainable and directly tied to the success of your business.

What should you avoid in a Business Plan #4: Ignoring competition

Ignoring your competition is a common mistake that can seriously affect your business. Your competition is essential to your company’s success, and you must understand its strengths and weaknesses. Include a detailed analysis of your competition in your business plan to demonstrate your understanding of the market and your strategy to differentiate your company.

What should you avoid in a Business Plan #5: Lack of Financial Planning

Finally, a lack of financial planning is a critical mistake in business planning. Your financial plan should include realistic projections, cash flow analysis, and contingency plans in case of unexpected events. Without proper financial planning, your business may be unable to weather unforeseen circumstances or achieve its growth potential.

In conclusion, a well-crafted business plan is crucial to your company’s success. Avoiding these common mistakes will help you create a realistic, well-informed, achievable plan. Demonstrating your understanding of the market, competition, and financials will set your business up for success.

How much should I pay someone to write a business plan?

This is a common question that many business owners or aspiring entrepreneurs ask themselves. Writing a business plan can be daunting, especially if you are unfamiliar with the process. But, when searching for a Business Plan Consultant on Google, you may ask how much you should pay someone to write a business plan.

The cost of a business plan varies depending on a few factors, such as the project’s complexity, the industry you are in, and the experience of the person you are hiring to write the plan. In Southern Africa, you can expect to pay anywhere from R18,000 (US$1,000) to R90,000 (US$5,000) for a professional business plan. The higher-end priced Business Plans are generally for niche multi-billion Rand projects that can take weeks to compile.

There are roughly ten business plan companies operating in South Africa. Their prices range between R3,500 (these are the 3threeconsultancies that use Business Plan Templates and Business Plan Software to compile your business plan) and R25,000 (these are the handful of consultancies that make an effort to write a custom business plan and do not use any templates). The latter adds value to your business.

When hiring someone to write your business plan, it is essential to research qualified and experienced professionals. Look for someone with a successful track record and who can provide references. You should also look for someone with experience in your industry or a related field.

A seasoned (non-fly-by-night) business plan consultant can work with you to create a customised plan that meets your specific needs. They can also help you with market research, financial projections, and other aspects of the project.

It is important to remember that the cost of a business plan is an investment in your business. A well-written plan can help you secure financing, attract investors, and grow your business. It is not something you should skimp on.

In addition to the plan’s cost, you should also consider the value of your time. Writing a business plan can be time-consuming and take longer if you are unfamiliar with the process. Hiring a professional can save time and allow you to focus on other aspects of your business.

Do’s and Don’ts of Business Planning

• Define your business goals and objectives: Clearly define what you want to achieve with your business and how you plan to achieve it.
• Conduct market research: Understand your target market, industry trends, competitors, and consumer preferences to identify gaps and opportunities.
• Create a comprehensive business plan: Develop a detailed and well-structured business plan that includes financial projections, marketing strategies, operational procedures and risk management strategies.
• Identify your unique value proposition: Clearly articulate what sets your business apart from competitors and why customers should choose your products or services.
• Establish a budget and cash flow plan: Develop a budget outlining your projected expenses and cash flow projections to ensure you have sufficient funds to support your operations.
• Develop a marketing plan: Create a comprehensive marketing plan that includes strategies for building brand awareness, attracting customers, and promoting your products or services.
• Build a strong team: Hire skilled and experienced employees who are passionate about your business and have the expertise necessary to support its growth.
• Establish strong relationships with suppliers and partners: Develop strong relationships with suppliers and partners who can provide the resources and support you need to achieve your business goals.
• Monitor and evaluate performance: Continuously monitor and evaluate your business performance to identify areas for improvement and make necessary adjustments to your strategy.
• Stay flexible and adaptable: Remain open to change and be prepared to adapt your strategy based on changing market conditions, customer feedback, and emerging trends.

• Rush into starting your business without a plan: Failing to plan is planning to fail. Don’t make the mistake of rushing into starting your business without a comprehensive plan.
• Ignore market research: Don’t assume you know everything about your industry, target market, or competitors. Conduct thorough market research to identify gaps and opportunities.
• Rely solely on personal intuition: Personal intuition can be helpful but should not be the basis for business decisions. Use data and analysis to make informed decisions.
• Neglect financial planning: Don’t overlook the importance of financial planning. Develop a budget and cash flow plan to ensure that you have sufficient funds to support your operations.
• Overlook the importance of branding: Your brand is the face of your business. Don’t neglect the importance of building a strong brand that resonates with your target audience.
• Underestimate marketing power: Don’t assume customers will automatically find your business. Develop a comprehensive marketing plan to promote your products and services.
• Hire the wrong people: Your employees are the backbone of your business. Don’t make the mistake of hiring people who lack the skills, experience, or passion necessary to support your business.
• Fail to build strong relationships with suppliers and partners: Don’t underestimate the importance of building strong relationships with suppliers and partners who can provide the resources and support you need to achieve your business goals.
• Ignore performance metrics: Don’t neglect to monitor and evaluate your business performance. Use performance metrics to identify areas for improvement and make necessary adjustments to your strategy.
• Remain inflexible and resistant to change: Don’t be rigid in your approach to business. Remain open to change and be prepared to adapt your strategy based on changing market conditions, customer feedback, and emerging trends.

How many hours does it take to write a Business Plan?

The amount of time it takes to write a business plan can vary widely depending on several factors, such as the complexity of the business, the amount of research required, and the plan’s purpose.

A simple business plan that outlines the basics of a small business concept can typically be completed within a few days to a week, assuming the entrepreneur has a clear idea of the business concept and has already done some preliminary research.

A more comprehensive business plan that includes detailed financial projections, market analysis, and a comprehensive marketing strategy may take several weeks or months to complete. This type of plan requires extensive research, financial analysis, and market testing to ensure the business is viable and has a strong chance of success.

In general, allocating enough time to develop a comprehensive and well-researched business plan is important to serve as a blueprint for the business’s success. Rushing through the process can lead to oversights and errors that can be costly in the long run.

When should you start a business plan?

Starting a business plan as early as possible is important when considering starting a new business. A business plan is an essential tool for any entrepreneur to help clarify their business idea, identify potential challenges, and develop a roadmap for the successful launch and growth of the business.

Ideally, the business plan should be developed during the pre-launch phase of the business, well before any investment is made or any significant expenses are incurred. This will allow the entrepreneur to thoroughly evaluate the business concept, assess the potential market demand, and determine the resources needed to start and operate the business.

Starting a business plan early in the process also allows the entrepreneur to identify any potential challenges or risks that may need to be addressed. By identifying these challenges early, the entrepreneur can develop contingency plans or adjust their business model as necessary to minimize risks and increase the chances of success.

Will a Business Plan guarantee I receive funding from investors?

All South African funders and investors require a sound and feasible Business Plan supporting your funding application, but that doesn’t necessarily guarantee that you will receive funding. Every Investor will evaluate several issues when making a business loan or investment decision. They typically consider the validity of the business- and financial model, the entrepreneur’s experience, market potential, reliable market research, use of funding, ability to repay the business loan, the entrepreneur’s personal credit history and the collateral available to secure the loan.

JTB Consulting will assist you in developing a bankable Business Plan, but you will need to provide the credit history, collateral and any other requirements that the Investor may require. These factors are beyond our control.

What makes a good Business Plan?

Developing a solid business plan is essential for the success of any business. A good business plan is more than just a document to secure funding; it is a roadmap for the future of your business.

• Executive Summary: The Executive Summary is the first section of your business plan and should provide an overview of your entire plan. The Executive Summary aims to grab your reader’s attention and encourage them to read further. It should include a brief introduction of your business, a summary of your products or services, your target market, and your unique selling proposition. Remember that the Executive Summary is a summary, so keep it concise and to the point.
• Company Description: The Company Description section is where you provide more detailed information about your business. It should include your mission statement, business history, legal structure, and location. You should also describe your products or services in more detail and explain how they meet the needs of your target market.
• Market Analysis: T he Market Analysis section is where you demonstrate that you have a deep understanding of your industry and your target market. This section should include information on the size of your market, the industry’s trends and challenges, and an analysis of your competition. You should also describe your target market in detail, including demographics, psychographics, and buying behaviour.
• Products or Services: The Products or Services section is where you explain what you are selling and how it solves a problem for your target market. You should describe your products or services, including features and benefits, and explain how they differ from your competition. You should also include information on your pricing strategy and any intellectual property you may have.
• Marketing and Sales: The Marketing and Sales section is where you explain how you will reach your target market and sell your products or services. It would be best to describe your marketing strategy, including the channels you will use to reach your target market and the messaging you will use to differentiate yourself from your competition. You should also include your sales strategy, including your sales process, your pricing strategy, and your sales goals.
• Operations: The Operations section is where you describe how your business will operate on a day-to-day basis. This includes your production processes, supply chain, and human resources strategy. You should also include information on your business’s legal or regulatory requirements.
• Financial Projections: The Financial Projections section is where you provide a detailed forecast of your financial performance. This includes your revenue, expenses, and profits for the next three to five years. You should also include information on your funding requirements, including how much funding you need and how you will use it.

Established in 2006, we have successfully written hundreds of bankable and world-class Business Plans  for clients across 25 countries. As South Africa’s Leading Business Plan Company , we are confident that we would be able to assist you too. Kindly note that we also offer “Investor Pitch Decks”, “Excel-based Financial Models”, and “Proposal/Tender Writing Services” in addition to our Custom Business Plan Writing Service . Please visit our Services  page for more information.

We look forward to being of service to you. Please feel free to contact our Founder, Dr Thommie Burger, on +27 79 300 8984 should you have any questions. He is also available via email and LinkedIn .

JTB – Your Business Planning Partner.

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How to write a business plan in south africa [ free template].

It is never too early to start planning for your business! This blog post is all about writing a business plan in South Africa. 

We will discuss the various sections of the plan, and how to fill them out. There are also plenty of resources at the end that will help you get started on this important process.

Table of Contents

What is a business plan? 

A business plan is a written, formal strategy that outlines your goals and how to achieve them.

Even the smallest companies need some kind of plan for their future success. 

It is like prepping before you go on vacation: you are not guaranteed any problems will happen, but it helps if you know where all the closest gas stations are just in case there’s an issue with getting more fuel.

The same principle applies here: writing a business plan in South Africa gives you time to think through everything and make sure nothing slips between the cracks.

Why do you need a business plan? 

Business plans give you a chance to assess your company’s strengths and weaknesses. 

When it comes down to the nitty-gritty, business planning is all about making sure that you are prepared for anything in this unpredictable world of entrepreneurship.

What should I include? 

There isn’t one standard format for every company; however, most plans follow these general guidelines: 

• Executive Summary 
• Company Description 
• Mission & Goals Strategies 
• Financials Appendix 

If sounds intimidating or confusing don’t worry! We’ll go over each section in detail.

How To Write a Business Plan in South Africa

What is an executive summary .

The executive summary is a high-level overview of your business plan, and it’s one of the first things people will see when they are reading through your business plan in South Africa. 

This section needs to be short (about two or three pages) but comprehensive; that means you should include all the critical information here while still keeping it interesting for readers. 

It should do four important jobs: 

• Introduce yourself and your company 
• Give background on why you started this project 
• Describe what you want to accomplish with this document 
• Highlight any challenges ahead 

Remember, if someone were deciding whether or not to read further, would their decision change based on what they learned from the executive summary alone?

What goes in the company description? 

The company description is a little more detailed than an overview, but not quite as long or involved as the rest of your business plan in South Africa.

In this section, you will want to state what industry you are in and why it is important (how does this help customers?). 

You should also describe how big your market is , where your competition lies, and who will be buying from you.

What do I put in my mission statement? 

Your mission statement highlights your goals for expanding into new markets/products/services. 

It includes details on why exactly yours is a worthwhile venture. 

Think about the reason behind setting up shop: if someone approached you with funding tomorrow would that have anything to do with why you started doing whatever it is you do? 

If not, then your mission statement might need some work.

What are strategies and how should I use them? 

Strategies detail the steps you’re taking to accomplish your goals! 

These can range from building a team to developing new products. 

You don’t want to get too specific here; that is what the financial section is for–strategies are more about giving yourself time management tools so you know when milestones will be reached! 

It also helps if these plans have an element of flexibility in case something unexpected happens along the way.

How much does it cost? 

The final sections of your business plan in South Africa involve numbers: revenue projections, expenses, etc. 

There isn’t one standard format or formula but there are plenty of resources available on how to calculate them. 

Basically, you want your financial section to show how the business will make money and what it will cost to run it!

What else do I need? 

Your business plan in South Africa should also include a cover page (with all of these details on there as well) and an appendix for additional information such as market research or employee resumes. 

With so much involved in creating a successful business plan in South Africa, don’t be afraid if this stage takes a while–just remember that once you have got everything together you are really one step closer to making your dreams come true.

When do you need a business plan?

• You need a business plan if you are;
• Seeking funding, investments, or loans
• Searching for a new partner or co-founder
• Attracting, hiring, and retaining top talent
• Experiencing slow growth and need a change

Tips to write a business plan in South Africa that will stand out

A). easy to read.

Make sure your business plan is easy to read and the sections flow together. 

Showcase lots of visuals and charts – these will keep readers’ attention ! 

The goal here isn’t just about getting people interested in what you’re doing, it’s about convincing them that they should invest or buy into your idea too.

b). Keep it brief

Don’t go overboard with the length of your business plan! 

A page a day doesn’t seem like much but by month’s end, you’ll have a sixty-page document that will turn off all but the most dedicated readers. 

Just give enough information to paint a picture and then let it shine through the action

c). Be smart about what you include

The financial section is going to be one of, if not THE most important part of your business plan–don’t forget that! 

It needs concise explanations as well as relevant numbers; don’t just write down random expenses or revenue projections (unless this is how you actually work) because these things need context in order for someone reading this document now to understand them later on when they’re doing their own calculations.

Remember that a business plan in South Africa isn’t just about making your idea look great, it is also about getting you closer to achieving the goals YOU set out for yourself.

Be confident in what you’ve written and make sure any feedback from readers is constructive rather than telling them they should have done something differently if there wasn’t a reason why they did it this way instead.

d). Proofread!

Nothing is worse than typos or grammatical errors in a business plan–it makes you look unprofessional and careless. 

Make sure everything has been double-checked before submitting! 

Remember that this document should be your guiding light throughout the entire process so take care of it as best you can to ensure it’s always working for YOU rather than against you.

Business plan template in South Africa

Even if you don’t plan to seek investments, it is good to write a business plan. There are other reasons for this, use this business plan template in South Africa:

• Writing out your goals helps you see what you want to accomplish. You can make more of a plan for what to do next.
• It is a chance to better understand your market (e.g., demographics, behaviors)
• You can make sure that everyone on your team is doing their job. Set up the roles for each person and tell them how to do these jobs. Make sure you set goals for each person.
• Team members can also refer to the document to stay on track
• Catching errors before they happen is important. It helps you make sure financial projections are accurate.
• You’ll be able to see the problems that could come up in the future.

Final thoughts on how to write a business plan in South Africa

Writing a business plan can be tough, but it’s also one of the most important steps in starting your own company. 

Remember to take care of every aspect and don’t let anyone tell you that their way is the only way.

It doesn’t matter if this is your first time writing or your fiftieth–just make sure everything comes together as soon as possible so you can actually get started on building YOUR empire!

Free business plan template

• Download business plan template
• Try Xero for free

Download a business plan template and start bringing your ideas to life. Choose a one-pager, or multi-pager. Or try Xero accounting software for free.

Download the business plan template

Fill in the form to get a free business plan template as an editable PDF. We’ll send a one-pager and a multi-pager to choose from.

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Getting started with the business plan template

We’ll send you two types of business plan template – a one-pager and a multi-pager. Choose the one that’s right for you. They come with instructions to help fill them out.

Doing a business plan will improve your idea. It helps you think about your business from different points of view. The process will flag up unseen risks, but also new opportunities. Aside from helping refine your idea, a business plan will move it forward. It’ll give you a concrete set of steps to go from ‘I should’ to ‘I did’.

One-page business plan template

Great for making a start

Helps you pin down the main idea

Easy to update as things evolve

Multi-page business plan template

Ideal for nailing down the details

Required by most investors and lenders

Good if you face big startup costs

Tips to help with your business plan

Don’t obsess over every detail to start with. That will make the plan long and hard to change. Keep it short and concise initially.

Financing your business

Need cash to get going? Check out our finance guide.

How to finance your business

Starting a business

Check out our guide for information about getting started.

How to start a business

Find a bookkeeper or accountant

Accoutnants and bookkeepers can help build financial resilience into your business budgets.

Find a financial advisor near you

Plan on making business fun

Are you looking forward to the bookkeeping and accounting that comes with a new business? Na, we didn’t think so. Xero can automate a lot of that stuff away for you.

Xero does not provide accounting, tax, business or legal advice. This template has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business.

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Download a Business Plan Template

Business Plan Template by Being Boss and FreshBooks

So, you’re ready to take the first steps in starting your business – congratulations!

Though you have a lot of work ahead of you, starting and growing a company from the ground up is a bold endeavor. And, if set up correctly it will deliver many things you want out of your professional career, as well as help you achieve some life goals.

Freedom, creativity, control, impact… all of these things are possible with a small business. But only if you start with a clear understanding of yourself, your offering, and the customers you serve.

So, how do you make sure that the business you start will be everything you want it to be? To put you on the right path towards the business you’ve always dreamed of, you need to start with a business plan.

To many, building a business plan sounds like a daunting task, but with big ideas and even bigger goals, it’s an important step to ensure you have a clear picture of what kind of company you’re building. A business plan helps you lay a foundation and iron out the details so you have a succinct short-term and long-term idea of what you’re building. If you’re not sure where to start business plan template documents can help.

What Is a Business Plan Template and How Can It Help You?

A business plan template is a basic framework for building a powerful business plan document for your new company. With a business plan template, you get a head start on identifying key elements of your business. By identifying these key elements, your path becomes clear and easier to navigate. A business planning template can take many forms, from a series of questions about your skills, offering, customers, and goals to a sample document where you can store information for the kind of company you wish to build.

Whatever the format, a business planner template guides your business planning to keep you focused, help you get clear, and creates a structure for bringing your new ideas into a concise document to guide your actions, as well as present your plans to people you might approach for help, such as investors.

Why Do You Need a Business Plan?

To begin, simply writing a business plan is a wonderful way to find clarity, purpose, and a path for your new company, because if we know anything about entrepreneurs, it’s this: you have a gazillion ideas and goals for your new venture. A business plan helps you hone in on the most important and relevant ideas for your new company, and helps you organize those thoughts into a usable plan.

Beyond finding clarity and organizing your ideas, your business plan is a place where you set goals for yourself and your business, as well as predict any struggles you may face to reach those goals. Additionally, business plans lay out a clear strategy for reaching those goals, setting you on the right path from the very beginning.

Also, there are several key elements you must understand about your new business before you begin. You need to have a clear understanding of the products and services you offer, who your dream customers are (aka your target market), and who your competitors are (through doing a market analysis). You also need to see if your business idea is even viable by doing financial projections, which will determine if the product or service you offer is actually capable of creating enough income (aka revenue) to cover expenses (aka cost).

Because an offering that doesn’t make money isn’t a business, it’s a hobby. With all of this information laid out, business plans act as a concise rundown of all the major parts of your business, which you’ll use to go from idea to small business and beyond. This detailed summary of the business you’re starting includes a plan for actually making it happen. Trust us: there’s a bit of magic that comes from getting clear on these aspects of your new business because from clarity comes power, and with power… nothing will stand in your way.

How to Structure a Business Plan

A business plan that you’re using for your own clarity and purposes can look like anything you want – include the elements that are important to you, write it on a series of napkins if you want to, or add as much creative flair as you need to inspire you to get it done. Then get started with your business. The important thing is that you simply get it down “on paper” so that you have the information you need to effectively provide the product or service of your business to those in your target market so that you can begin reaching your goals.

But, if you’re wishing to seek funding for your new business, whether that’s from a bank, from an investor, or even from your family, it’s very important that you have a plan with a clear structure and with key elements presented. That way not only you will find clarity in the direction and purpose of your new business, but others can see it as well.

A traditional business plan begins with a broad overview of your new company, including your business mission and goals, and moves into being more detailed, with your first steps of action, along with plenty of information in between. Your plan is a product of lots of research about your industry, your ideal customer, and your offerings. It also represents in-depth planning, by outlining your skills and how you’ll grow them, how much it’s going to cost to get started, and financial projections for your first years. This plan will come together in a single document with clear organization that you can access anytime to keep you focused on taking just the right next step on your path.

What Goes Into a Business Plan?

There are several key elements that go into a complete and thorough business plan. With these elements, you have a complete picture of the company you’re here to start, which will become an invaluable resource as you begin taking your first steps, as well as when you begin checking-in in the coming months and even years. These elements include:

1. EXECUTIVE SUMMARY

Think of your executive summary as your birds-eye view of your company. It’s a summary of all other elements included in your business plan, and is the first (and sometimes only) element looked at by investors.

2. MISSION + VISION

Why are you starting your business? What do you imagine it being in 5 years? In this section of your business plan you share the reasons behind your business and where you see it going in the near and distant future.

Laying out clear goals for your business will give you context for all the work ahead. Think about business and life goals, and create goals for the short-term (6-12 months), mid-term (12-24 months), and long-term (24 months +).

4. SKILLS + EXPERIENCE

Think of this section as a personal resume; what skills and experience do you have that will be relevant for this venture, but also what skills do you need to grow or gain to make you a valuable asset to your new business?

5. PRODUCTS/SERVICES

Now we begin getting to the meat of business plans: a clear description of your products and/or services, including what they are and how you will be delivering them to your clients or customers. This should include description, deliverables, benefits for your customers, and price.

6. TARGET MARKET

You know what you’re doing, but who are you doing it for? Getting very clear on your dream customers, the group or groups of people you will be serving with your business is an important element for shaping your product or service correctly, as well as marketing effectively.

7. INDUSTRY/COMPETITION

An understanding of your industry (24-hour gyms, or bakeries, or web developers) and your competition is important to crafting the right product or service, and making sure your idea is viable.

8. OPERATIONAL PLANS

In order to get your business off the ground, what do you need? Perhaps it’s a few hires, or sourcing some information or products; whatever you need, this is where you lay it out.

9. MARKETING PLAN

With a full layout of what you’re selling and who you’re selling it to, it’s time to get an understanding of how you’ll get your offering in front of the right people with a clear marketing plan.

10. SALES FORECAST/FINANCIAL PROJECTIONS

How effectively do you think your marketing will be? How long will it take for you to meet your goals? Through financial projects, you’re able to see the work you have to do to meet your version of success.

11. START-UP EXPENSES

Finally, what do you need to get the ball rolling? A clear understanding of your start-up expenses is imperative for jumpstarting your business towards success.

Find Your Community

You’re on your way! Being the boss of a business you built for yourself is highly gratifying, especially when your actions align with your values, which is what this business plan template will help you do. And if you need help fleshing it out, let me walk you through it step-by-step in this special episode of the Being Boss podcast.

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A Step-By-Step Guide On How To Start A Business In South Africa

How do you start a business in South Africa and what are the small steps that lead to building a big business? Starting a business takes time; from planning and developing your ideas to rolling things out, you always have to have your finger in many pies. Here's what you need to know if you’re starting a business.

Research and development

If you want to start a business, a business plan can help you find out if it will be successful before you spend a lot of time or money on it. It helps to understand what steps need to be taken, what resources you'll need to reach your business goals, and when you can expect to see results. When you plan your business well, you connect all the pieces so you can see the big picture. It helps you ask strategic questions so you can step back and look at the situation as a whole. 

Setting up the business

In South Africa, by law, there are five different kinds of companies that people can start: private companies, personal liability companies, public companies, non-profit companies and state-owned companies. If you want to start a new business but aren't sure what kind of business you want to start or didn't know there were so many choices, it's important to know what each type of business means. By turning your small business into a legal corporation, you can protect your personal assets. The legal structure of a business or organisation with limited liability means that a profit loss can't be bigger than the amount of money put into the business. When you register your business, you protect yourself from having to pay for any debts or liabilities that your business might get into. Depending on the size of your business, this structure can also protect all business owners and partners. You can register your company online at the Companies and Intellectual Property Commission ( CIPC ) website or at Bizportal.gov.za , a CIPC platform which offers company registration and other related services.  You can also register your business through your bank. You can also register your business by giving the paperwork to a company that knows how to do company registration and other related tasks. 

Securing Funding 

There are a lot of places you can get money to help you finance your business, from banks to venture capitalist firms and even the government. You just have to know what kind of business funding will work best for your business. The South African government offers a variety of ways to get money, such as grants, tax breaks, loans, and options for financing with equity. You can apply for different kinds of funding through the Industrial Development Corporation or the Government Investment Incentives at the Department of Trade and Industry. South Africa's Seda (Small Enterprise Development Agency) also helps small businesses grow. People who want to start a business can go to Seda for help. You can also get money from the private sector as well as from the government. Loan financing, equity financing, venture capital financing, angel investment financing, and personal debt financing are some of the options. 

Setting up your business operations

Depending on what type of industry your business is operating in, marketing, sales, and customer service are usually part of your business operations. This would also include production, product and order management. Your business operations will be aimed at maximising your business assets. These assets include the people who work there, the tools they use, and the information they collect. Business operations set up the systems, processes, patterns, and templates that your business will use every day to run. An operations ecosystem makes sure that your team has the right tools to do its work and that those tools produce useful information for leadership without overburdening your team. More specifically, business operations are the core activities that turn inputs like raw materials, labour, and capital into outputs like streamlined products and services. 

Promotion and Marketing 

Marketing is important for all businesses, but for new businesses, it's even more vital. If people don't know about your new business and what it has to offer, they probably won't buy anything from you. Start-ups need to put a lot of energy into running marketing campaigns which cost very little or nothing. Email marketing, blogging, and social media are all important parts of any start-up strategy as it affords you the opportunity of attracting customers to your startup for little or no cost. 

The bottom line

These areas highlight a bird’s eye view of the important things you need to keep in mind when starting a business. Remember that every business begins with an idea, but with the right energy invested in strategic places, you can take that idea out of your mind and turn it into a reality.

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Do it all with a comprehensive business plan

A business plan is a roadmap of your business. It details how your business wants to achieve its goals and should include its operational, financial and marketing strategies.

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A good business plan should answer the following questions

• What type of business do I want to run - will I be selling products, services, or both?
• What products or services will I be selling?
• Will the business be manufacturing products or buying them from a manufacturer?
• Will I be in business by myself or in a partnership?
• How will the business be funded?
• What market will the business be serving - in other words, who are my customers?
• Who are my competitors and how will I overcome competition to succeed?

You can use a standard format to draft a business plan

• Business details - include the name of the business and/or trading name as well as the physical address.
• Business overview - describe what your business is all about.
• Business operations - state what you sell as well as how and who you will sell to.
• Business environment - describe factors that will impact your business, like; sales, customers and debtors.
• Sales and customers - describe in detail your sales projections, the number of customers you want to attract and their locations.
• Debtors - state how you will deal with customers when it comes to credit.
• Creditors/Suppliers - describe how you will relate with suppliers when it comes to payment and deliveries.
• Competitors - identify your key competitors and describe your competitive advantage over them.
• Financial review - for a start-up this may not apply but for established businesses include your financial reports, your business’s current financial position and your financial plans going forward.

Need more help?

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15 Key Steps to Starting Your Own Business in South Africa

Starting a business in South Africa can be a challenging but rewarding experience. With a vibrant economy (if you look past the government corruption, load shedding, broken infrastructure, and other challenges), South Africa still has a (potential) growing entrepreneurial community.

There are plenty of opportunities for those willing to take the leap and turn their ideas into reality. However, starting a business in South Africa requires careful planning and preparation. This blog post will cover 15 key topics to help you start a business in South Africa and embark on your entrepreneurial journey.

Tip #1: Understanding the South African market and economy

Before starting a business in South Africa, it is important to understand the local market and economy well. Research the latest economic trends, consumer behaviour, and demographic information to determine the potential of your business idea. In addition, consider the current state of the industry you are interested in and what sets your business apart from others in the market.

Tip #2: Identifying your niche and target audience

Once you understand the market better, you can identify your niche and target audience. For example, who is your ideal customer (Customer Analysis)? What are their needs and wants? How will your product or service meet those needs? A clear understanding of your target audience will help you make informed decisions about your business strategy.

The COVID-19 pandemic forced many SME businesses to re-evaluate their business models, moving from the traditional “in-person” and “social” setting to “digitised brands” where they market and deliver their products and services via an online presence.

No longer can SMEs ignore having an online presence, which, given the current rapid move from the 4th to the 5th Industrial Revolution, would be a death sentence for those businesses that ignore moving their products and services online.

Tip #3: Develop a comprehensive business plan

A comprehensive business plan is crucial for any startup. It outlines your business goals, strategies, action plans, and a realistic financial projection. A business plan will also help you secure funding and attract potential investors.

Tip #4: Raising capital and securing funding

Raising capital is a critical step in starting a business in South Africa. Consider all your funding options, including loans, grants, and investments from friends, family, and investors. You may also consider crowdfunding or pitching your business idea to venture capitalists.

Tip #5: Registering your business and obtain the necessary licenses and permits

To legally operate a business in South Africa, you must register and obtain the necessary licenses and permits. The process of registering a business can be complicated, so consider seeking the assistance of an attorney or accountant to help you navigate the requirements.

Tip #6: Choosing a suitable business structure and registering with SARS

South Africa offers several business structures, including sole proprietorship, partnership, and limited liability companies. Choose a structure that suits your business needs and goals, and register your business with the South African Revenue Service (SARS).

Tip #7: Setting up a physical or virtual office space

Whether you set up a physical or virtual office space, creating a professional and functional environment that supports your business operations is important. Consider location, cost, and accessibility when choosing a workspace.

Tip #8: Hiring and building a team

As your business grows, you may need to hire employees to support your operations. Hiring and building a team requires careful planning, from defining job roles and responsibilities to offering competitive compensation and benefits packages.

Tip #9: Marketing and promoting your business

Marketing and promoting your business are crucial for attracting customers and building brand awareness. Consider a comprehensive marketing strategy incorporating digital marketing, advertising, public relations, and other tactics.

Tip #10: Establishing a strong online presence

A strong online presence is essential for any business in today’s digital age. Please create a website and social media accounts to reflect your brand image and messaging.

Tip #11: Navigating South African tax laws and regulations

South Africa has a complex tax system, and it’s important to comply with all tax laws and regulations. Consider seeking the assistance of an accountant or tax specialist to help you navigate the requirements and minimise your tax liability.

Tip #12: Building and maintaining relationships with suppliers and clients

Building strong relationships with suppliers and clients is essential for the success of your business. Establish clear communication and maintain regular contact with your suppliers to ensure the timely delivery of goods and services. Building a strong network of satisfied customers will also help you grow your business and attract new customers through word-of-mouth referrals.

Tip #13: Staying compliant with labour laws and regulations

South Africa has strict labour laws and regulations, so staying up-to-date with the latest developments is important. To avoid legal consequences, you must comply with minimum wage requirements, working hours, and other labour laws.

Tip #14: Ensuring the financial stability of your business

Keeping your finances in order is critical to the success of your business. Create a budget, track expenses, and seek professional financial advice when necessary. Regularly monitoring your finances will help you identify areas where you can cut costs and maximise profits.

Tip #15: Staying up to date with the latest industry trends and developments

Staying current with the latest industry trends and developments is essential for staying ahead of the competition. Attend trade shows, conferences, and other events, and engage with industry experts to stay informed about the latest innovations and trends.

Something Extra ― 10 FAQs asked by People that are thinking of Starting a Business in South Africa

Faq #1 ― what steps must i take to start my own business from home.

Starting a business from home can be a cost-effective way to launch your entrepreneurial journey, but you still need to take important steps to ensure success. First, you need to validate your business idea to make sure there is a market for your product or service. You can do this by researching and reaching out to potential customers.

Next, you must create a business plan outlining your goals, strategies, and budget. This will help you stay focused and on track as you build your business. Finally, you must register your business, obtain necessary licenses and permits, and set up a legal structure, such as a sole proprietorship or limited liability company.

Real-world example:  Sarah, a stay-at-home mom, wanted to start a business selling handmade baby clothing. She validated her business idea by contacting local maternity stores and asking if they would be interested in carrying her products, which they weren’t. After creating a business plan and registering her business, she started selling her products online and at local markets.

FAQ #2 ― What are the unique challenges of starting a business in South Africa?

Starting a business in South Africa can be both exciting and challenging. One of the biggest challenges is navigating the country’s complex regulatory environment, including strict labour and tax regulations. Another challenge is securing funding for your business, as access to capital can be limited for new businesses. Additionally, South Africa has a highly competitive business environment, so it can be difficult to stand out and gain market share.

FAQ #3 ― How can I find business ideas that will be successful in South Africa?

Finding a business idea that will be successful in South Africa starts with understanding the local market and consumer needs. One approach is to identify a gap in the market and create a product or service to fill that gap. You can also look for business opportunities that align with current trends, such as renewable energy or e-commerce. Networking with other entrepreneurs and industry experts can also be a great way to get inspiration for a new business idea.

FAQ #4 ― What business opportunities are available in South Africa for entrepreneurs?

South Africa offers entrepreneurs various business opportunities, including tourism, agriculture, technology, and renewable energy. The country is also home to a growing middle class, creating retail, finance, and health services opportunities. Additionally, South Africa has a large and vibrant small business sector, making it a great place to start a business in any number of industries.

FAQ #5 ― Do I need a startup coach to guide me through starting my own business?

While hiring a startup coach can be helpful, starting your own business is unnecessary. Many resources, such as online courses, books, and mentorship programs, can provide the guidance and support you need to succeed. Hiring a Startup Coach will ultimately depend on your needs, budget, and experience level.

Real-world example:  A recent college graduate, Lucy, wanted to start a business selling handmade jewellery. She found a mentorship program that gave her the support and guidance to get her business up and to run. With her mentor’s help, she created a successful business plan, secured funding, and launched her business.

FAQ #6 ― I fear the risks of starting my own business. What should I do?

Starting a business will always involve some risk, but there are ways to minimise that risk. First, thoroughly researching and validating your business idea is important to ensure a market for your product or service. Next, create a solid business plan that outlines your goals, strategies, and budget. This will help you stay focused and on track as you build your business. Finally, consider seeking advice from an experienced mentor or business coach to help you navigate the challenges of starting a business.

Real-world example:  Thabo, a former corporate employee, was afraid to leave his secure job and start his own business. He sought advice from a business coach, who helped him validate his business idea and create a solid plan. With the coach’s support, Thabo launched a successful marketing consulting firm.

FAQ #7 ― How can I validate my idea before starting a business in South Africa?

Validating your business idea is an important step to ensure that there is a market for your product or service. One way to validate your idea is by conducting market research to determine if there is a demand for your offer. You can also reach out to potential customers for feedback on your idea. Finally, consider talking to industry experts and entrepreneurs to get their insights on your idea and the market you are entering.

FAQ #8 ― What resources are available for entrepreneurs starting a business in South Africa?

Many resources are available for entrepreneurs looking to start a business in South Africa, including government programs, business incubators, and mentorship programs. In addition, the South African Department of Trade and Industry supports small businesses, including access to funding and resources for business growth.

In addition, several business incubators throughout the country offer resources and support to entrepreneurs, including office space, mentorship, and access to funding. Entrepreneurs can also seek advice and guidance from business organisations, such as the South African Chamber of Commerce and Industry (SACCI) and the National Small Business Chamber (NSBC).

FAQ #9 ― What are some common challenges entrepreneurs face when starting a business in South Africa?

Entrepreneurs in South Africa can face many challenges when starting a business, including limited access to funding, a challenging economic environment, and a lack of government support. In addition, entrepreneurs may struggle to find the right talent and resources to grow their businesses and may face competition from established businesses. However, with the right approach and support, these challenges can be overcome, and entrepreneurs can be successful in South Africa.

FAQ #10 ― Can you start a successful South African business, even with limited resources?

Yes, even with limited resources, starting a successful business in South Africa is possible. The key is to start small and build a strong foundation for your business. Then, find ways to reduce costs, such as working from home or outsourcing certain tasks, and strategically allocate your resources.

With a solid business plan and a willingness to learn and grow, you can build a successful business in South Africa, no matter your starting point.

In conclusion, starting a business in South Africa requires careful planning and preparation. However, by following these 15 key topics, you will be well on your way to turning your entrepreneurial vision into a successful reality. Good luck!

Wrapping Up:

We at ShopShipShake have been working with businesses like yours with fulfilling experiences. We offer one-stop services, including an efficient supply chain, over 10 thousand of China’s suppliers, over 1,000,000 SKU and more. With a successful track record of over 100,000 clients, we are sure to deliver your orders requirements.

Let’s get in touch to build, sustain, and grow your businesses! If you would like to know more details about us, please contact us:   blog.shopshipshake.com . If you are interested in cooperating with us. Please register on:  https://shop.shopshipshake.com/shop/register/business

Source: https://jtbconsulting.co.za/how-to-start-your-own-business-in-south-africa/

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Starting a business in South Africa checklist

• July 20, 2021

There’s a lot of things you might miss when starting a business, this is a checklist of everything you need when starting a business in South Africa.

The first thing you need is capital, capital is not only limited to money, it can include other resources like equipment and machinery. Businesses are different, some need hundreds of millions to start while others require only your skill and a tiny portion of capital.

However, starting a business with no capital at all is near impossible, everything you need to run your business is basically tied to capital. Make sure you have adequate capital before starting out.

2. Operating space

You need an operating space or premises, again; different businesses will need different types of premises. It doesn’t really matter if you run an online business, you still need a space whereby you will sit and do your work from your laptop/computer, be it your bedroom or an office.

Some businesses work on the client’s premises, like grass cutting services, this won’t require a lot of space from your side. Nevertheless, you still need space to store all your tools, a vehicle can also count as an operating space if most of your work is conducted from it.

For online businesses, you need both a physical and virtual space, to get virtual space you will have to pay for servers, hosting, cloud services or other subscription services that provide you with a virtual environment to run your business.

You need people who will actively work on running your business, be it you or employees. A business can’t function without labour, make sure that you calculate all your labour needs because this can easily be one of your biggest expenses.

How many people will be needed to run your business? Will it only be you or will you need a cashier, a security guard, an assistant, someone who will clean, an accountant, an IT person and so forth. You should also anticipate the amount of money you will spend in salaries.

4. Licenses and registrations

This is a bit of a grey area, not all businesses should be registered. These are typically small businesses that are headed by sole proprietors. South Africa has a very huge informal sector, with millions of unregistered businesses, there’s nothing wrong or illegal about this in most cases.

A person who is selling sweets or magwinya in an informal setting doesn’t have to register his/her business. However, if you want to set up a professional company then you should definitely register with the CIPC, the process usually takes 2 weeks and it’s something you can do by yourself without any assistance, it currently costs R125.

Some businesses; like restaurants and taverns need special licenses in order to operate, be it a food permit or liquor license. Please make sure that you have all the relevant licenses pertaining to your business.

Nice to haves

The above are the most important things on this checklist, the things listed below are nice to haves, things that are not that crucial.

5. Business bank account

A business bank account will make your business to appear that much more professional and trustworthy. However, this is a privilege that you have to pay for every month, which can easily add up to your expenses.

I don’t recommend opening a business bank account unless you really need to, especially when you are the only one running your business. I am not going to say that not opening a business account early on can save you an unnecessary tax burden, I am not going to say it. Rather speak to a tax account about that.

Also, TymeBank offers business banking accounts with no monthly fees, but these are only for sole proprietors. You can open the account directly from the TymeBank app.

6. A website

Businesses usually open websites so that they can appear on Google and get some credibility. A website is not really crucial to the success of your business unless you are using it as a lead conversion tool or using it to market your business in general, which is what you should probably be doing.

If you are running an online business then a website is not a nice to have, it falls somewhere between capital and operating space. A website will also give you a nice, professional email address, to avoid using Gmail.

7. Social media presence

All these nice to haves are basically to make you appear more professional, you should probably open some social media accounts. However, don’t expect to make any sales from social media, rather open the accounts as a way to easily interact with customers.

One of the best social media accounts to open is Pinterest, for businesses selling physically goods like clothes, furniture and antiques. Pinterest is one social platform that can actually bring you customers that rival any paid marketing platform.

8. Business plans

Unless you are going to use the business plan to pitch your idea to some government officials who demand it then I highly don’t recommend it. The business landscape is very unpredictable and there’s no telling what will happen even 6 months from now.

The last thing you want is an expensive piece of paper that proclaims to know where your business will be in five years. I don’t think there is any business plan that could have predicted the events of 2020 and mid 2021 in South Africa.

However, there are some people who need to feel secure and a business plan gives them just that. If you are one of those people then you should probably get one, or just draft it yourself.

See also: How to start a business in South Africa

This was a checklist of everything you need to start your business in South Africa. Most of the things that are not mentioned here probably fall under capital or only belong to specific businesses. Do you have any thoughts or questions? Comment below.

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Small Business Development

• Cooperatives Incentives Scheme

Black Business Supplier Development Programme

• Khula Enterprise Finance Ltd
• South African Micro-Finance Apex Fund

Technology for Sustainable Livelihoods

• Registering Your Business
• National Youth Service
• South African Women in Construction
• Technology for Women in Business

Gender and Women Empowerment Unit

Small enterprise development agency (seda).

Seda   supports the growth of small business. People can go to Seda for help to start a business or, if they already have a business, to make it stronger and more profitable. There is a Seda branch in each district municipality. These branches offer:

• information, advice and referrals
• tender information and advice
• import and export training
• trade information
• business assessments and business mentoring
• technical support
• market access
• business linkages

In addition to helping individuals in business, Seda has a special focus on co-operative enterprises , where a group of entrepreneurs share the profits and responsibility of a business.

Contact Seda :  012 441 1000 Business Information Centre :  0860 103 703 Website : www.seda.org.za

How to write a business plan

The first thing you need to do is state clearly and specifically what your business idea is. Very simply, you need to say what you intend doing, how you plan on doing it, when you plan to do it and why you believe you will succeed. In the process of doing that, you need to do some research into whether your idea and your plan will really work.  Your business plan should cover four main areas:

• Your strategic focus (your “niche”, or “core business”):  What exactly is it that your business will do? What makes it special? What won’t your business do?
• The marketing plan: How are you going to promote your product?  How are you going to price your product?  How do you plan on getting your product to your market?
• The operations plan: What staff will you have and what will they do?  Who will supply you with what you need?  How will you manage your business?
• The financial plan: What profits and losses will you make?  How much sales do you need to make to break even?  How much cash do you need to cover costs each month?  What is the source of your funds?  How will you use your funds?  If you need a loan, then what can you offer as security for that loan?

Important advice:

• Work out how big your market is (the total number of people who will buy your product).
• Is the market growing or not?  (Is there increasing demand for your product or is there an over-supply?)
• List all the factors about your business that will bring you success (e.g.  is it in a good place, is it cheap, is it very high quality?).

Look carefully at your situation and make a list of the following:

• your strengths and weaknesses in comparison with your competitors
• all the obvious market opportunities and threats
• the advantages you have over your competitors
• advantages that your competitors have over you
• ways of using your advantages to your benefit
• how you will deal with the disadvantages you face
• what must be done, when it must be done and how it be done.

Co-operatives Incentive Scheme (CIS)

Successful applicants are given cash grants so that their cooperative can obtain good quality services that will help them to grow their business. The Cooperative Incentive Scheme helps cooperatives from all industries: textiles, services, energy, agriculture, print, film, and video production, consumer and housing. For a cooperative to qualify for a grant, it needs to:

• be mainly black-owned
• be actively helping to create employment and overcome poverty
• be registered according to the Cooperatives Act, 14 of 2005
• have a simple Business Plan, which must be attached to applications forms
• provide quotations for the services for which it requires funding.

How to register a co-operative

To register your cooperative, you will need to fill in Form CR1 – Application for registration of primary/secondary/tertiary cooperative. You will then be notified of the other forms you will need to fill in, in the course of registering your cooperative.

Contact the Department of Trade and Industry: 012 394-1425/394-1608 Website: www.thedti.gov.za

This programme offers grants in a cost-sharing scheme to black-owned business for the purpose of business skills training. It offers support to black-owned enterprises by helping to improve their core competencies and management abilities, and enabling them to become more competitive. The scheme helps people with promotional marketing materials, software development and other activities such as quality improvement, processes and product improvement.

Companies that are majority black-owned (15% or more) and which have a significant representation of black managers on their management team quality for the grant. Companies should not earn more than R12 million per annum and must have been trading for at least a year. They need to be registered with CIPRO and with SARS. The maximum grant for which a single company can qualify is R100 000.

Application procedure : Obtain application guidelines and an application form.  Complete the application form. Obtain and attach a tax clearance certificate, and submit the application.

Contact the Department of Trade and Industry Customer Care Centre :  0861 843 384 Website : www.thedti.gov.za

Finance for Small Businesses

Khula enterprise finance ltd.

Khula helps SMMEs to get loans from banks. It does not lend money itself. Khula also provides mentorship to entrepreneurs, helping them to manage their businesses successfully. The mentorship programme includes the transfer of skills on a face-to-face basis, the development of viable business plans, and pre- and post-loan services.

Contact Khula :  012 394-5560/5900 or 0800 11 88 15 Website :  www.khula.org.za

South African Micro Finance Apex Fund (Samaf)

Samaf gives financial services to small-scale entrepreneurs living in rural and outer urban areas. Samaf does not lend money directly to the public. It uses existing institutions within communities to handle the funds and lend to qualifying entrepreneurs. Samaf has three products:  the Micro-Credit Fund (gives loans to entrepreneurs), the Capacity Building Fund (gives funds to be used for equipping the institutions with skills, system and equipment) and the Savings Mobilisation Fund (encourages savings).

Contact Samaf :  012 394-1805 Websites : www.samaf.org.za ; www.thedti.gov.za

This is a programme of the Department of Science and Technology (DST). It aims to create jobs for communities by helping to establish SMMEs. In particular, it makes use of technologies which can add value to SMMEs and makes them accessible to communities. At the same time, the programme helps to make these SMMEs successful by offering skills development and training.

The DST offers technological assistance in the following areas:

• Aquaculture : Communities are trained to farm indigenous fish as a business. They receive technology in terms of infrastructure (production cages) and training to manage a fish farm, including diseases and harvesting.
• Essential oils: These are valuable oils that are extracted from the leaves and flowers of plants. Communities benefit from skills development and training, and their businesses are linked to the local essential oils market.
• Indigenous medicinal plants :  Communities are taught to grow indigenous herbs commercially. These plants have special medicinal properties which have been scientifically proven. Communities receive training in farming methods and in how to start a commercial enterprise and their businesses are linked to local markets.

The DST does not support individuals, only communities and community groups. These communities are then helped to form a viable community business, in the form of a Section 21 Company or cooperative. In order to use these technologies and produce valuable crops in essential oils and indigenous medicinal plants, communities need to have access to suitable agricultural land.  Similarly, communities that want to benefit from fish farming must have access to irrigation dams.

Contact the DST Technology for Sustainable Livelihoods :   012 843-6421/18

Registering your business

When you start a business, it needs to be registered. To do so, fill in the relevant forms and submit them to the Companies and Intellectual Property Registration Office (CIPRO).

Contact CIPRO :  0861 843 384

Support For Youth

The Umsobomvu Youth Fund helps youth set up, expand and develop their businesses by teaching them essential business skills. Umsobomvu has the following programmes:

• The Franchise Fund helps youth to start and maintain their businesses. Through loans and a voucher system, it helps young people to access business support.
• Entrepreneurship Education Training: This training is aimed at helping young people understand the concepts and principles of entrepreneurship and business.
• Cooperative Training: This is basic training for young people on setting up and running a youth cooperative business.
• Graduate Development Training: This is a training programme for unemployed graduates to enhance their life and professional skills.
• Business Consulting Services Voucher: These are services designed to help youth set up, expand or develop their businesses.

Umsobomvu youth Advisory Centres (YACs) are walk-in centres around the country where youth can receive information, training and referrals services – in fact, everything they need to find employment or start their own businesses. YACs provide outreach services to communities that are unable to get to the centres, by taking career information, skills development and entrepreneurial advice to local schools in Mobile YACs.

Contact Umsobomvu :  08600 YOUTH (96884) Contact Umsobomvu Business Partnership :  011 470-3111 Websites :  www.youthportal.org.za

National Youth Service (NYS)

The National Youth Services is about involving young people in the development of our country. It is an opportunity for young people to actively serve their communities. The National Youth Service Programme aims to create a culture of service. It develops the skills, knowledge and abilities of young people. It also improves youth employability by giving opportunities for work experience and skills development, and by providing further learning opportunities.

For more information on the NYS, turn to the Expanded Public Works Programme.

Support For Women

South african women in construction (sawic).

Sawic is a national association of women enterprises or professionals and technical staff in all areas of construction, from the skilled trades to business ownership, with international affiliation to the National association of Women in Construction (Nawic). Sawic administers, facilitates, advocates and lobbies all the Departments of Public Works for the empowerment of its members.

Contact Sawic :  012 337-2400/2174

Technology for Women in Business (TWIB)

This programme aims to make science and technology more accessible to women in business, especially those in SMMEs.

Contact TWIB :  012 394-1644 Website :  www.twib.co.za

The Gender and Women Empowerment Unit of the Department of Trade and Industry (the dti) manages the South African Women Entrepreneurs Network (SAWEN). SAWEN helps women overcome the obstacles that they still experience in business.

It compiles a database of women-owned enterprises, in order to help women help one another. It organises networking forums, facilitates capacity-building programmes, and lobbies and advocates for policies that support women entrepreneurs.

Contact the Department of Trade and Industry:  012 394-1606

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Download a Free Business Plan Template

What is a business plan.

The written plan of goals you want to achieve with your business, and how you want to achieve them, is called a business plan. It is a decision-making tool used when beginning or extending a venture.

Any new business requires a business plan to ensure that the business can make a profit. Fund-seeking entrepreneurs use a formal business plan to convince investors to contribute towards the capital of the business.

Existing businesses – looking to expand or change the business – also use business plans to prospect for new business, attract key employees or deal with suppliers. By revising their business plan regularly, existing companies can devise strategies to manage their companies better.

Most commonly, a business plan is used to apply for a bank loan to fund a business. To learn how to create a business plan for a bank in South Africa, see FNB and Standard Bank’s business plan guidelines. You can also download Standard Bank’s free business plan template in Word or PDF format.

A business plan consists of three primary parts:

• The business concept – details about the industry, the structure of the business, the product or service and the strategy for the success of the business.
• The marketplace section – an analytical description of potential customers and the strategy for achieving success against competitors.
• The financial section – the income and cash flow statement, balance sheet and other financial information.

The length of a business plan varies depending on the nature of the business and the purpose of the business plan. Typically, a business plan is 15 to 20 pages long. It usually details the goals for the business for the next three to five years.

An important part of compiling a business plan is in-depth research into the market and industry. Try to gain as much insight into the market you are targeting by talking to business owners, suppliers, potential customers, existing customers, staff members, business experts, etc. Also, research the industry online.

Business plan format

Although there are several types, the key components of all business plans are essentially the same. The format varies based on who the intended reader of the business plan is. Here is an example of a standard business plan format:

1. Table of Contents (1 page)

The table of contents page should include the correct page numbers of the sections of the business plan. Therefore, it is best to write this page last. In addition to the table of contents page, the plan must also have a cover and a title page.

2.  Executive Summary (2 pages)

The purpose of the executive summary of a business plan is to entice the reader to read the rest of the plan. The executive summary is an overview of the key aspects of the plan. It should be compelling but also concise.

The executive summary should include:

• the business concept (a description of the business, product, market and target market);
• key financial aspects (sales, profits, cash flows, investment returns and capital requirements); and
• a short company overview (type of company, date formed, owners and key personnel and achievements).

3. Company Overview (1 – 2 pages)

This section is a high-level overview of the company and the industry in which it operates. It is a description of the business, the product and the industry.

The following should be included in the company overview:

• The name of the company and the type of ownership and registration;
• Details about the business location (address, zoning, reason for choosing location, monthly rentals, etc.)
• Significant assets and financial contributions to the business;
• The mission statement of the business;
• Company objectives and goals;
• The main features of the industry in which the business will operate;
• The most important company strengths and core competencies;
• An explanation of the product, target market and profitability of the plan.

4. The Opportunity, Industry and Market Description (2 – 3 pages)

The research you conducted will come into play in this section. This section offers a detailed explanation of the market and industry and the business’ position therein.

They key is to determine who your target market is through a market analysis. Then clearly explain how your products/services will fulfil the needs of your target market. A market analysis also helps to determine pricing, distribution strategies and growth potential within the industry.

Describe the following:

• The opportunity – the gap in the market;
• The industry – the forces affecting the industry (i.e. obstacles to entry, customers, suppliers, substitute products and competition); and
• The market – insights into the target market (i.e. size, growth and trends).

5. Strategy (1-2 pages)

Detail your positioning strategy and how the business will compete in the chosen market. In other words, what is unique about your product/service and how will the target market benefit from what you have to offer.

6. Business Model Explanation (1 page)

The business model depicts how the business will make money/profit. A business model covers the following aspects:

• Sources of revenue;
• Costs involved in generating the revenue;
• The profitability of the business (revenue minus costs);
• The investment required to get the business up and running; and
• Success factors and assumptions for making the profit model work.

7. Management and Organisation (2 pages)

The biographies of the members of your management team and their roles in the business. Who will be responsible for running the business and why are they well-suited to the task?

This section should include:

• The founders of the company and their qualifications and experience;
• The day-to-day management team and their individual competencies and responsibilities;
• The type of support staff needed to run the business; and
• An organisational chart to show the management hierarchy.

8. Marketing Plan (2 – 3 pages)

The marketing plan is a comprehensive explanation of your marketing strategy. In other words, how will you sell your service/product to your target market?

Your marketing plan should include:

• The value of your product/service to customers;
• A detailed description of the target market;
• How you want your target market to perceive your product/service;
• The pricing strategy for the product/service;
• Sales and distribution channels that will be used to get the product/service to the customer; and
• The promotion strategy (budget, public relations activities, promotions, advertising, etc.).

9. Operational Plan (2 pages)

The operational plan is a description of how the business will function. Include a description of the following:

• The operating cycle – how the business will deliver the service or create and sell the product;
• How skills and materials will be sourced;
• Which tasks will be outsourced and how business relationships will be managed; and
• The cash payment cycle of the business.

10. Financial Plan (3 – 5 pages)

A very important part of any business plan is the financial plan. It is a reasonable projection of the company’s financial future.

A good financial plan will determine how much capital the business needs to launch and/or grow. This section is especially important to potential investors and banks – who will determine the odds for the continued survival of the company based on this information.

A financial plan should include:

• Start-up expenses and capital: What it would cost to start/grow the company and how the money will be generated.
• Profit and loss projections/income statement : Financial sales and expenses projections (i.e. income, cost of goods, gross profit margin, net profit, total expenses, etc.).
• Cash flow projection: Reflects how much cash will be needed to cover expenses and when it will be needed. The cash flow projection amounts to a profit or loss at the end of each month or year.
• A balance sheet: A summary of the business’ equity, assets and liabilities.
• A break-even calculation

Income statements and cash flow projections must be generated for every month of the first year, every quarter of the second year and annually for every year thereafter. The balance sheet is only generated on an annual basis.

Short summaries of the analyses of the income statement, cash flow projection and balance sheet must also be included. Do not include too much detail in this section. Additional projections, charts and calculations must be added to the Appendix.

11. Appendix

Additional reference documents are included in the appendix. This could include:

• Brochures and advertising materials;
• Industry studies and market research;
• Plans and blueprints;
• Photos and maps of location;
• Magazine or other articles;
• Detailed lists of equipment owned or to be purchased;
• Copies of leases and contracts;
• Letters of support from future customers;
• List of assets available as collateral for a loan; and/or
• Detailed financial calculations and projections.

Find more business plan examples and templates from Entrepreneur Magazine .

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How To Draft A Business Plan In South Africa

When starting a business in South Africa, it is important to have a business plan. This document will outline your goals, strategies, and market analysis for your venture. There are many different ways to write a business plan, so it is important to find an approach that works for you. Some tips for drafting a business plan in South Africa include:

Starting with a clear, concise objective

Developing a business strategy

Identifying your market

Developing revenue and expense forecasts

Analyzing your business risks

Making necessary changes based on results

Table of Contents

How to write a business plan to start your own business | For funding | South Africa

Defining your business plan’s purpose.

The first step in writing a business plan is to understand why you are starting a business. What is your business about? What problem are you trying to solve? Once you have a good understanding of your business, you can develop a marketing strategy and determine the financial needs and resources required to succeed.

When writing a business plan, you should also consider the following:

• The market you are targeting.
• The competitive landscape.
• The financial resources you will need.
• The risks and challenges you will face.
• The timeline for your business.
• The key elements of your business.
• How you will measure success.

When outlining your business plan, it is important to keep in mind the following key points:

• Define your target market. Who is your target audience? What problems do they face? What do they want or need?
• Research the competition. What are their strategies? What are their products or services? What are their financial resources? What obstacles do they face?
• estimate your costs and resources. How much will it cost to start up? How much will it cost to maintain your business? How much will you need to produce your product or service? How will you track your progress?
• identify sources of funding. What public or private resources are available

Conducting market research

There are a few things you need to know to effectively target your market. Firstly, you need to know what they want. This can be done through market research or by simply asking people what they would like to see in a product or service. Secondly, you need to know what your competitors are doing. This will help you to understand what features your customers might want and what they might be afraid of. Lastly, you need to know your own strengths and weaknesses. Knowing where you can improve will help you to carve out a competitive advantage in the market.

Once you have identified your target market and what they want, you need to research your competition. This will give you an idea of what they are offering and what features might be important to your customers. It will also help you to understand what could be a potential threat to your business.

Once you have researched your competition and have a good understanding of what they are offering, you need to develop a marketing strategy. This will include things like target markets, pricing, and distribution. It will also include things like advertising and public relations. It is important to keep in mind that a good marketing strategy must be flexible and able to change as the market changes.

Once you have a marketing strategy and have implemented it, you need to

Outlining your business model

A business plan is a document that provides a strategic overview of a business and its objectives. It should include an overview of the company’s history, management and operations as well as a plan for expanding the business. The plan should also identify the company’s key markets and customer base, as well as the company’s competitive advantages.

There are a number of different formats for business plans, but most follow a similar structure. The first section of the plan is usually an executive summary, which provides a brief overview of the business and its key strategies. The second section is the business model, which outlines the company’s revenue and cost structures. The third section is the financial analysis, which details the company’s cash flow and balance sheet. The fourth section is the market analysis, which assesses the company’s competitive environment. The final section is the conclusion, which provides a summary of the business plan and provides a roadmap for future growth.

There is no one blueprint for a successful business plan, but there are a few key components that should always be included. First, a business plan should provide a clear overview of the company’s history, management and operations. This will help readers understand the company’s strengths and weaknesses and help them make an informed decision about investing in the business. Second, a business plan should identify the company’s key markets and customer base. This will help you identify areas of growth

Drafting your financial projections

Every business needs a financial plan, which is a document that spells out how much money your business will need to stay afloat for an extended period of time. This document can take many different forms, but all businesses need to know where their money is going and how they’re going to make it work.

When you’re drafting your financial plan, you need to first understand your business’s sector and how the market is evolving. Markets can change rapidly, so you don’t want to be caught off guard by any shifts. Once you know your sector, you need to determine how much money your business is currently making and what it could make in the future.

Next, you need to project how much money your business will need every year to stay afloat. This number will change depending on your business’s specific situation, but it’s important to have a solid estimate. You need to include everything from costs for products and services to taxes and employee wages.

Once you have your financial projections, you need to figure out how you’re going to make all the money you need. This means looking at your business’s revenue streams and figuring out where you can make the most money. You can also look at ways to reduce costs or find new revenue streams.

Finally, you need to create a timeline for your financial plan. This document should show how long it will take you to make the money you

Creating your management team

The best way to start your business in South Africa is by finding the right individuals to help you achieve your goals. You will need to appoint a CEO, CFO, marketing director, and administrative staff to run your business.

When choosing your top management team, it is important to consider your business’s goals and objectives. Who will be responsible for making sure that these are met? Do you want someone who is hands-on with the operation of the company, or would you rather have someone who can focus on long-term planning?

Once you have decided on your top management team, you will need to create a business plan. This will outline your company’s objectives, strategies, and tactics for reaching those objectives. The plan will also include a financial analysis and a timeline for reaching your goals.

Finally, you will need to recruit the best talent available to help you achieve your objectives. You will need someone with experience in the industry you are entering, as well as the skills necessary to carry out your business plan. Remember, your management team is the key to your success in South Africa!

Writing your executive summary

When it comes to writing your business plan for south africa, the executive summary is one of the most important sections. Your executive summary should provide a concise and easy-to-read overview of your company and its goals, with a focus on the unique selling points of your business.

The summary should be written in a clear and concise manner, and should be easy to follow. You should use clear, concise language and avoid long paragraphs and technical terms.

In order to make your executive summary stand out, you should focus on the key reasons why your business is different from the competition. You should also highlight the benefits of being affiliated with your business, and explain how your company can benefit customers and shareholders.

Finally, you should list your company’s key employees, and provide a brief biography of each individual. This will help potential customers to understand how your company operates, and will also give you a chance to promote your employees to potential investors.

When writing your executive summary, it is important to remember that you are not required to provide a full business plan. Instead, your executive summary should provide a concise overview of your company and its goals.

If you would like help writing your executive summary, or would like to discuss your business plan in more detail, please feel free to contact us. We would be happy to provide you with a free consultation, and to help you to create a winning business plan for south africa.

A business plan is a roadmap to success. In order to create a successful business plan, you must first have a clear idea of what you want to achieve. Next, you need to identify the key challenges and potential roadblocks that will need to be overcome. Finally, you need to create a detailed financial plan and a timeline for achieving your goals. By following these steps, you can create a successful business plan in South Africa.

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