how to draw up a business plan south africa

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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A Simple Guide To Writing A Business Plan Before you type 'how to write a business plan' into your Google search bar, take a look at the only business plan format you'll need to start your business.

By Diana Albertyn

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

A business plan isn't just a document that you use to secure venture capital or start-up funding from the bank. When you learn how to draw up a business plan you create a roadmap for where your business is going.

What is a business plan?

A business plan explains your business's products or services, revenue generation, management and workforce structure, your financial and operational details, and your knowledge of your industry, among other information.

Since the introduction of the lean start-up, the variations in how to write a business plan have increased.

When it comes to a business plan format, ten basic elements must be include when you draft a business plan, according to master of strategy and 40 Most Outstanding Business School Professors Under 40 honouree, Greg Fisher.

The key components you need to include when you draw up a business plan are:

• An executive summary
• A general company description
• Industry insight
• Your business strategy
• A marketing plan
• An operational plan
• A financial plan
• An appendix
• A table of contents

What should I include in my business plan?

Now that you have established the format of your business plan, it's time for thorough research into your market and industry. Don't skip this step, even if you have experience in the field in which you're starting your business.

Related: A Free Business Plan Example to Launch Your South African Business

This research will help you understand the trends affecting your industry and can be obtained from the Internet, experts in your field, vendors and even by studying your competitors.

You may not be good with numbers, so perhaps you should get an accountant in to explain the financial sections of your business plan, but you should write the entire document on your own.

Look at some business plan examples and familiarise yourself with possible challenges and solutions – this information will come in handy when seeking investment.

Here are the critical aspects on how to write a business plan step-by-step:

1. The Executive Summary

A maximum two pages, the executive summary of a business plan is a key component when crafting the business plan format. This page of your business plan will determine whether the reader turns the page and continues to show interest in your business proposal.

Your executive summary should contain a description of your business, products, target market and what gives it a competitive edge. Also include a summary of your financial features like sales, profits, cash flows and return on investment in the business plan format. Additional financial information required covers your start-up and long-term capital needs.

Related: How To Start A Business With No Money

Next, outline your business's legal form of operation, date of establishment, its founders and owners, and your core staff.

It's important when writing a business plan to write the executive summary section last, as you'll have a better idea of how to summarise the crucial aspects of your business plan right at the end.

2. A General Company Description

The next one to two pages give the reader of your business plan an idea of what your business is all about.

Your general company description should be an introduction including the name of your company, ownership, assets, mission statement, its goals, industry insights and your business's key strengths.

This section of the business plan format should be an overview of your business, focusing more on the industry in which your business operates. How big is the industry? Why is the industry you're in so popular?

Your company description also covers your business's revenue-generating avenues and how funding can help with business profitability.

Try your best to keep your business description as general as possible, to avoid going over two pages. A good formula to use when drawing up your business plan is to describe your industry, product/service and your business in one paragraph each.

3. Industry Insight

Remember those trends you researched earlier? It's time to highlight them and explain how they influence your industry's growth. Use this section of the business plan to illustrate that good opportunity exists within your chosen industry include reliable and recent stats and case studies to boost your business case.

This information will also help you when pricing, planning, distributing and creating marketing and publicity strategies. This section of the business plan also maps out your industry's growth prospects and sales potential.

The Gap in the Market

Your reason for starting a business was most probably fuelled by a desire to fill a gap in the market. This subsection of the standard business plan format answers market-related questions. Where is the gap? How was it discovered? How did the gap come about? How can it be filled?

The Industry and Your Market

There are five important questions you need to answer when describing the industry your business will be operating in.

Related: The Future of the Business Plan

• What are the barriers to entry for this field and how do you plan on overcoming them for your business to be successful? These challenges include legal, financial, structural and operational aspects of running your type of business.
• Do you really know your customers? How much are they willing to pay for your product or service? Are you offering them enough options? The answers to these questions will help steer the direction of this aspect of your business plan
• Choosing suppliers depends on several factors, including price, service, distance and availability. Identify vendors in your industry and use this information to determine where your business stands in the industry.
• How strong is your competition in the industry? Whether direct or indirect, your business rivals will impact on how you run your business. Identify how your offering compares to your competitions', if they have alternatives available to your product or service and how important these competitors are to the success of your business.
• What advancements or changes are impacting your industry today and potentially in the future?

When it comes to your target market, your business plan should include the market size, it's rate of growth, your predicted market share, and consumer trends that could affect product development.

4. Your Strategy

You've identified your market, competition and how your business will overcome industry challenges. Now you need to use this section of your business plan to cover how your business plan will be affected by your target market's changing needs and what your primary competitors are doing.

A big part of the strategy section of your business plan will be impacted by how your competition is positioned in the market and how your product or service compares to theirs in terms of meeting your customers' needs.

After establishing this information, it's time to develop a positioning strategy, starting with a statement explaining the basic elements of around how you want your business and offering to be perceived by the market.

Next, outline the focus of your business, in terms of the scope of the market you're aiming to sell to. This section of the business plan is also ideal to include methods you plan on using to stand out from the competition and be unique in the market. This includes added value you'll be offering to customers that they won't get elsewhere.

5. Your Team

This section of your business plan should be about two pages long. If you have less people involved in your business, it can be shorter, but remember to include the founders, the managers, their special skills and qualifications and a chart detailing the organisational structure and each main function.

Key personnel will need job descriptions outlined in the business plan as well.

These two pages of your business proposal also include the management team's individual responsibilities, the requirements for each business division and how much it will cost to sustain the workforce.

Related: 7 Steps to a Perfectly Written Business Plan

Remember to include any owners and shareholders, your board of directors, consultants and special advisors, and key team members and department heads, advises Alejandro Cremades, author of The Art of Startup Fundraising.

Looking ahead, make provision for the possibility of employing support staff and where they may be needed in the business, for it to grow productively and efficiently.

6. Your Marketing Plan

Following intensive market research, the finding should be illustrated in your two-to-three-page marketing plan. This section of your business plan covers the value of your offering to customers, details on who your customers are and how you intend on selling to them, pricing and distribution, as well as your planned PR and advertising efforts.

According to Cremades, your marketing plan section of the business plan should include the following information:

• Competition and market research
• SWOT analysis (Strengths, Weaknesses, Opportunities and Threats)
• Target market research (total market size and total addressable market or TAM)
• Brand and product positioning
• Elevator pitches and taglines
• Target customer personas and profiles
• Results of any testing conducted so far
• Marketing channels to be used
• Marketing budget
• Estimates of cost per action (CPAs)

Your product's pricing will play a role in the success of your business. You need to ensure that your prices cover costs and find ways of lowering your costs. Your prices should also reflect the dynamics of cost, demand, changes in the market and response to your competition.

When deciding on the distribution process of your product or service, analyse your competitors to determine the channels they are using and decide if you want to use the same or an alternative that could provide you with an advantage.

The channel you use will depend on the industry and size of the market, but some of the options available to you include direct sales, OEM (original equipment manufacturer) sales, manufacturer's representatives, wholesale distributors, brokers, retail distributors and direct mail.

Your promotion strategy should be specific; including the advertising budget, creative messages for your advertisements and at least the first quarter's media schedule.

Related: Use These 5 Steps to Create a Marketing Plan

You can also include a description of the packaging strategy and possibly even mock-ups of labels, trademarks or service marks. You need to come up with a publicity strategy that includes a list of media you want to approach and a schedule of planned events.

7. Operational Plan

Detail your facilities, space, technology, equipment and capital needs in this two-page section of your business plan. Your operations plan should also explain the day-to-day running of your business, and everyone and everything involved in making it profitable.

This includes the people, processes and surrounding environment, says Fisher.

While the operational needs of a business depend on the nature of your offering, the basic components to be covered in this section in a standard business plan are, an explanation of the operating cycle including how your business intends on delivering on its product or service.

It's also helpful to include information about the source of the resources and skills you'll need – will you be outsourcing, and if so, how do you plan on managing these external stakeholders?

Although you'll be covering this extensively in the financial plan section of your business plan, you may need to include your business's cash receipts and cash payment cycle, in addition to an operating expense table, the capital requirements table and the cost of goods table, advises Fisher.

"You should also highlight any potential benefits or pitfalls to the community such as new job creation, economic growth and possible effects on the environment from manufacturing and how they will be handled to conform with regulations," he adds.

8. A Financial Plan

The bulk of a standard business plan format covers the financial plan. These three to five pages are basically an approximate prediction of where you see your business's finances in the future.

"It's an honest snapshot of where you are and where you reasonably hope to go, providing you secure the funding you need," says Cremades. "Start-up costs should be thorough, have some additional cushion built in, and focus on development of physical product or intellectual property and growth. Not what you want to pay yourself as a salary."

Related: Well-defined Financial Plan is Essential for a Secured Future

Fisher advises that you don't include too much financial detail in the body of the business plan . "If you have detailed projections and supporting calculations, place them in the appendix," he suggests.

This section is the lengthiest in the whole business plan, because it includes expenses for launching the business and where you'll source this capital; three-year balance sheet projections; your calculated breakeven point; 12-month profit and loss, and cash projections.

Pay careful attention to this section of your business plan, because if you omit anything, it could cost you important investment opportunities. "Investors will determine the odds for continued survival based on the information provided in this section," says Fisher.

The financial plan section in your business plan should include three key financial statements, namely:

Income statement

This monthly report simply explains your business's predicted ability to generate revenue. "It's a score card on the financial performance of your business reflecting when sales are made and when expenses are incurred," says Fisher. "After the income statement, include a short note analysing the statement, emphasising key points."

Cash flow statement

This section of your business plan will outline the amount of cash required to run your business, when you'll need it and where it will be sourced from. These calculations will help you and the reader of your business plan understand how much is going in and coming out of your business and determine the business's annual or monthly profit or loss.

The balance sheet

This annual statement summarises all the above information into the sub-sections; assets, liabilities and equity. You may also need to include your personal balance sheet, should investors ask for it while looking over your business plan.

9. An Appendix

Information like copies of leases or contracts, founders' CVs, business registration documents and brochures are included in this section of your business plan. It's important to put these at the back so the reader can refer to them when they need to, instead of including the information in the relevant section, because you're trying to keep the content of your business plan clean and brief.

Related: How to Create Your First Successful Business Plan

Other documents you may include as appendices include:

• Industry studies
• Trademarks patent registrations
• Blueprints and plans
• Copy of insurance policies
• Maps and photos of location
• Detailed lists of equipment needed for operation
• Letters of support from future customers
• Market research studies
• List of assets available as collateral for a loan
• Detailed financial calculations and projections.

Remember to refer the reader to your appendix in the sections where you mention figures, examples or other proof.

10. Table of Contents

Although this section of your business plan is at the very beginning of your document, you should write it last to ensure your information is in the right place and that your page numbers lead your reader to the correct section.

The final step is ensuring that your projections are as close to accurate as possible and that you focus on the small things, like spelling, grammar and formatting the document.

Although your current business plan format may evolve as your business does, getting your first attempt right will guide you to better understand how your business runs and investors will see where your business is going.

Related: Elements of a Business Plan

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How to write a business plan

Writing a business plan will help nail down your idea and give you a blueprint for executing it.

What is a business plan?

A business plan describes your product or service, identifies who the customer is, explains why they need your product or service, and shows how you’ll make money from that opportunity.

Why write a business plan

How you write a business plan will depend on what you need it to do. There are a couple of key jobs a business plan can have. It can:

• explain a business idea
• convince lenders or investors to put money behind that business idea

It doesn’t take a book to do the first job. You can write a business plan that’s short, to the point, and easy to update. That may be all you ever need. But if you’re going for funding, your business plan will need to be a good deal longer and more comprehensive.

Why every business should start with a one-pager

Even if you will eventually write a long business plan, a one-pager is a great place to start. It could take as little as an hour to do your first draft and will make your idea stronger. Writing about customers, competitors, income and expenses will help develop your thinking.

How to write a one-page business plan

You’ll see in the example below that there are nine sections, or things to write about. So give yourself just a small space to write about each. Keeping it short will help you focus on what’s important.

Download a one-page business plan template.

When you need a longer business plan

The greater the risk you’re taking, the more comprehensive your plan should be. For instance, you’ll need to write a long-form business plan if you’re going to fund it with other people’s money. Banks and investors will expect it.

How to write a longer business plan

Long-form business plans touch on all the same things as a one-pager, but they go into more detail and contain fewer assumptions.

Back-of-the-napkin numbers are replaced by forecasts and budgets. And guesstimates for things like costs, market size, customer preferences, and competitor weaknesses need to be backed up with proof. It’s a good idea to involve an accountant or bookkeeper in developing the budgeting and finance sections.

Contents of a business plan:

• Executive summary: A short summary of the main points of your business plan. Write it last.
• Company overview: Identify your industry, what you’re selling, and how you’ll charge.
• Products or services: Include a description of the problem you’re solving for customers.
• Market analysis: Describe your target market, and examine the competition.
• Risk assessment: Flag potential hurdles (including assumptions that could be proved wrong).
• Marketing and sales plan: How will you find customers and make sales? How many sales will there be?
• Milestones: What needs to happen and when?
• Progress reporting: When and how will you report against the milestones?
• Team: Who will be involved in the business? Note their skills and responsibilities.
• Budget: Estimate your costs and income (and any debt that you plan to take on).
• Finance: Show how you’ll fund the business.

You can also add an appendix with any supporting or background documents.

Make a start by downloading our free business plan template.

How not to write a business plan

Avoid these common business planning mistakes:

• Underestimating how much money it will take to get started
• Failing to budget for the first few months of operation (before revenues start flowing)
• Expecting sales to ramp up too fast
• Relying too heavily on one or two customers (or suppliers)
• Not including contingencies for unexpected delays or costs

Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.

How to start a business

Thousands of new businesses open every day. If all those people can do it, why not you? Here’s what to do, and when.

Your business idea is clearly inspired. But it helps to check you’re not the only one who thinks so.

It’s time to run some numbers on your business idea. Budgeting and forecasting help with that.

Your prices can influence the number of sales you make and the profit you earn on each transaction.

Your business structure can affect how much tax you pay, and how you're treated by the law.

If you’re starting a business, then you’ll need to get familiar with some accounting basics.

After all the excitement of deciding to start a business, you’ll have some paperwork to do.

Treat your website like an online version of a storefront. It’s the first impression for many customers and prospects.

Now that you’re in business, you want to stay there. Xero’s got resources and solutions to help.

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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!

How to Develop a Winning Business Plan in South Africa

A well-crafted business plan is the cornerstone of success for any aspiring entrepreneur in South Africa. Whether you’re launching a new startup, seeking funding, or looking to grow your existing business, a winning business plan serves as a roadmap to guide your journey and secure the support of stakeholders. In this comprehensive guide, we’ll explore the essential elements of developing a winning business plan in South Africa and provide practical tips for crafting a document that sets you up for success.

Understanding the Purpose of a Business Plan

Before diving into the specifics of developing a business plan, it’s essential to understand its purpose and significance. A business plan serves multiple functions, including:

• Clarifying Your Vision : A business plan helps you articulate your vision, mission, and goals for your business, providing clarity and direction for yourself and your team.
• Securing Funding : A well-developed business plan is essential for securing funding from investors, banks, or other financial institutions, as it demonstrates the viability and potential profitability of your business.
• Guiding Decision-Making : A business plan serves as a strategic tool for guiding decision-making and resource allocation, helping you make informed choices and prioritize activities to achieve your business objectives.
• Communicating Your Strategy : A business plan communicates your business strategy, market analysis, and financial projections to stakeholders, including investors, partners, and employees, fostering confidence and buy-in.

Essential Elements of a Winning Business Plan

A winning business plan typically includes the following key elements:

• Executive Summary : The executive summary provides an overview of your business, including its mission, vision, unique value proposition, target market, and key objectives. It should capture the reader’s attention and provide a concise summary of the business opportunity.
• Business Description : This section provides a detailed description of your business concept, industry analysis, market opportunity, competitive landscape, and positioning strategy. It should demonstrate a thorough understanding of your industry and target market.
• Products or Services : Describe the products or services you offer, highlighting their unique features, benefits, and competitive advantages. Provide information about your product development process, pricing strategy, and intellectual property considerations, if applicable.
• Market Analysis : Conduct a comprehensive market analysis to assess the size, growth potential, trends, and competitive dynamics of your target market. Identify your target customer segments, their needs, preferences, and buying behavior, and explain how your business will meet their needs more effectively than competitors.
• Marketing and Sales Strategy : Outline your marketing and sales strategy, including your go-to-market approach, promotional tactics, distribution channels, and sales forecast. Describe how you will attract and acquire customers, build brand awareness, and drive revenue growth.
• Operational Plan : Detail the operational aspects of your business, including your organizational structure, management team, staffing requirements, and day-to-day operations. Identify any operational challenges or risks and explain how you will mitigate them.
• Financial Projections : Present detailed financial projections for your business, including income statements, cash flow statements, and balance sheets. Provide assumptions and rationale behind your projections, such as sales forecasts, pricing assumptions, and expense estimates.
• Funding Requirements : Specify your funding requirements and use of proceeds, whether it’s startup capital, working capital, or expansion funding. Describe any existing funding sources, such as personal investment, loans, or equity financing, and outline your plans for raising additional capital if needed.
• Risk Management Plan : Identify potential risks and challenges that could impact your business’s success, such as market volatility, regulatory changes, or competitive threats. Develop a risk management plan outlining strategies for mitigating risks and minimizing their impact on your business.

Tips for Crafting a Winning Business Plan

Here are some practical tips for crafting a winning business plan in South Africa:

• Tailor Your Plan to Your Audience : Customize your business plan to suit the needs and preferences of your target audience, whether it’s investors, lenders, or internal stakeholders. Highlight the aspects of your business that are most relevant and compelling to your audience.
• Be Realistic and Data-Driven : Base your business plan on realistic assumptions and data-driven analysis rather than wishful thinking or speculation. Use credible sources and market research to support your projections and assumptions.
• Seek Feedback and Revision : Solicit feedback from mentors, advisors, or industry experts to improve the quality and effectiveness of your business plan. Be open to constructive criticism and willing to revise and refine your plan based on feedback.
• Focus on Clarity and Conciseness : Keep your business plan concise and focused, avoiding unnecessary jargon, technical language, or excessive detail. Use clear and straightforward language to communicate your ideas effectively and ensure readability.
• Update Your Plan Regularly : Your business plan is a dynamic document that should evolve over time as your business grows and market conditions change. Regularly review and update your plan to reflect new opportunities, challenges, and strategic priorities.

Crafting a winning business plan is an essential step for aspiring entrepreneurs in South Africa to set their ventures up for success. By understanding the purpose of a business plan, incorporating essential elements, and following practical tips for development, you can create a compelling document that communicates your vision, strategy, and potential to stakeholders. Whether you’re seeking funding, planning for growth, or launching a new venture, a well-crafted business plan serves as a roadmap to guide your journey and maximize your chances of success.

StartUp Magazine

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7 Business Plan Examples to Inspire Your Own (2024)

Need support creating your business plan? Check out these business plan examples for inspiration.

Any aspiring entrepreneur researching how to start a business will likely be advised to write a business plan. But few resources provide business plan examples to really guide you through writing one of your own.

Here are some real-world and illustrative business plan examples to help you craft your business plan .

7 business plan examples: section by section

The business plan examples in this article follow this template:

• Executive summary.  An introductory overview of your business.
• Company description.  A more in-depth and detailed description of your business and why it exists.
• Market analysis.  Research-based information about the industry and your target market.
• Products and services.  What you plan to offer in exchange for money.
• Marketing plan.   The promotional strategy to introduce your business to the world and drive sales.
• Logistics and operations plan.  Everything that happens in the background to make your business function properly.
• Financial plan.  A breakdown of your numbers to show what you need to get started as well as to prove viability of profitability.
• Executive summary

Your  executive summary  is a page that gives a high-level overview of the rest of your business plan. It’s easiest to save this section for last.

In this  free business plan template , the executive summary is four paragraphs and takes a little over half a page:

• Company description

You might repurpose your company description elsewhere, like on your About page, social media profile pages, or other properties that require a boilerplate description of your small business.

Soap brand ORRIS  has a blurb on its About page that could easily be repurposed for the company description section of its business plan.

You can also go more in-depth with your company overview and include the following sections, like in the example for Paw Print Post:

• Business structure.  This section outlines how you  registered your business —as an  LLC , sole proprietorship, corporation, or other  business type . “Paw Print Post will operate as a sole proprietorship run by the owner, Jane Matthews.”
• Nature of the business.  “Paw Print Post sells unique, one-of-a-kind digitally printed cards that are customized with a pet’s unique paw prints.”
• Industry.  “Paw Print Post operates primarily in the pet industry and sells goods that could also be categorized as part of the greeting card industry.”
• Background information.  “Jane Matthews, the founder of Paw Print Post, has a long history in the pet industry and working with animals, and was recently trained as a graphic designer. She’s combining those two loves to capture a niche in the market: unique greeting cards customized with a pet’s paw prints, without needing to resort to the traditional (and messy) options of casting your pet’s prints in plaster or using pet-safe ink to have them stamp their ‘signature.’”
• Business objectives.  “Jane will have Paw Print Post ready to launch at the Big Important Pet Expo in Toronto to get the word out among industry players and consumers alike. After two years in business, Jane aims to drive $150,000 in annual revenue from the sale of Paw Print Post’s signature greeting cards and have expanded into two new product categories.”
• Team.  “Jane Matthews is the sole full-time employee of Paw Print Post but hires contractors as needed to support her workflow and fill gaps in her skill set. Notably, Paw Print Post has a standing contract for five hours a week of virtual assistant support with Virtual Assistants Pro.”

Your  mission statement  may also make an appearance here.  Passionfruit  shares its mission statement on its company website, and it would also work well in its example business plan.

• Market analysis

The market analysis consists of research about supply and demand, your target demographics, industry trends, and the competitive landscape. You might run a SWOT analysis and include that in your business plan. 

Here’s an example  SWOT analysis  for an online tailored-shirt business:

You’ll also want to do a  competitive analysis  as part of the market research component of your business plan. This will tell you who you’re up against and give you ideas on how to differentiate your brand. A broad competitive analysis might include:

• Target customers
• Unique value add  or what sets their products apart
• Sales pitch
• Price points  for products
• Shipping  policy
• Products and services

This section of your business plan describes your offerings—which products and services do you sell to your customers? Here’s an example for Paw Print Post:

• Marketing plan

It’s always a good idea to develop a marketing plan  before you launch your business. Your marketing plan shows how you’ll get the word out about your business, and it’s an essential component of your business plan as well.

The Paw Print Post focuses on four Ps: price, product, promotion, and place. However, you can take a different approach with your marketing plan. Maybe you can pull from your existing  marketing strategy , or maybe you break it down by the different marketing channels. Whatever approach you take, your marketing plan should describe how you intend to promote your business and offerings to potential customers.

• Logistics and operations plan

The Paw Print Post example considered suppliers, production, facilities, equipment, shipping and fulfillment, and inventory.

Financial plan

The financial plan provides a breakdown of sales, revenue, profit, expenses, and other relevant financial metrics related to funding and profiting from your business.

Ecommerce brand  Nature’s Candy’s financial plan  breaks down predicted revenue, expenses, and net profit in graphs.

It then dives deeper into the financials to include:

• Funding needs
• Projected profit-and-loss statement
• Projected balance sheet
• Projected cash-flow statement

You can use this financial plan spreadsheet to build your own financial statements, including income statement, balance sheet, and cash-flow statement.

Types of business plans, and what to include for each

A one-page business plan is meant to be high level and easy to understand at a glance. You’ll want to include all of the sections, but make sure they’re truncated and summarized:

• Executive summary: truncated
• Market analysis: summarized
• Products and services: summarized
• Marketing plan: summarized
• Logistics and operations plan: summarized
• Financials: summarized

A startup business plan is for a new business. Typically, these plans are developed and shared to secure  outside funding . As such, there’s a bigger focus on the financials, as well as on other sections that determine viability of your business idea—market research, for example.

• Market analysis: in-depth
• Financials: in-depth

Your internal business plan is meant to keep your team on the same page and aligned toward the same goal.

A strategic, or growth, business plan is a bigger picture, more-long-term look at your business. As such, the forecasts tend to look further into the future, and growth and revenue goals may be higher. Essentially, you want to use all the sections you would in a normal business plan and build upon each.

• Market analysis: comprehensive outlook
• Products and services: for launch and expansion
• Marketing plan: comprehensive outlook
• Logistics and operations plan: comprehensive outlook
• Financials: comprehensive outlook

Feasibility

Your feasibility business plan is sort of a pre-business plan—many refer to it as simply a feasibility study. This plan essentially lays the groundwork and validates that it’s worth the effort to make a full business plan for your idea. As such, it’s mostly centered around research.

Set yourself up for success as a business owner

Building a good business plan serves as a roadmap you can use for your ecommerce business at launch and as you reach each of your business goals. Business plans create accountability for entrepreneurs and synergy among teams, regardless of your  business model .

Kickstart your ecommerce business and set yourself up for success with an intentional business planning process—and with the sample business plans above to guide your own path.

Business plan examples FAQ

How do i write a simple business plan, what is the best format to write a business plan, what are the 4 key elements of a business plan.

• Executive summary: A concise overview of the company's mission, goals, target audience, and financial objectives.
• Business description: A description of the company's purpose, operations, products and services, target markets, and competitive landscape.
• Market analysis: An analysis of the industry, market trends, potential customers, and competitors.
• Financial plan: A detailed description of the company's financial forecasts and strategies.

What are the 3 main points of a business plan?

• Concept: Your concept should explain the purpose of your business and provide an overall summary of what you intend to accomplish.
• Contents: Your content should include details about the products and services you provide, your target market, and your competition.
• Cashflow: Your cash flow section should include information about your expected cash inflows and outflows, such as capital investments, operating costs, and revenue projections.

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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 .

Related Documents

Download a Free Research Proposal Template

Download a Free Project Plan Template

Download a Free Competitor Analysis Template

Download a Free Gap Analysis Template

Download a Free SWOT Analysis Template

Download a Business Case Template

Download a Budget Template (Excel)

Download a Marketing Plan Template

Download a Free Business Proposal Template

Download a Free Company Profile Template

Download an Organogram Template (Organisational Chart)

Wednesday, June 19, 2024

BUSINESS 101: Four tips on how to draft your first business plan

One of the first steps you may take in your journey to becoming a successful entrepreneur is learning how to draft a business plan, says the author.

Published Feb 12, 2023

One of the first steps you may take in your journey to becoming a successful entrepreneur is learning how to draft a business plan. You could think of a business plan as your blueprint – a roadmap that will lay the foundation for you to get your venture off the ground.

There are several reasons why writing a business plan should be top of your list before you take the plunge. For one, venture capitalists and small business financiers may require you to submit a business plan as part of your application for business funding.

However, even if applying for a business loan is not at the top of your agenda, drafting a business plan is a crucial step in getting to know your market and will help you understand if your service or product is addressing a gap in the market.

The research you conduct to formulate the plan and the critical thinking that the process involves will help you to evaluate the feasibility of your idea, look at what your competitors are doing, give you an idea of how much start-up capital you will need and which partnerships you can leverage to get ahead.

Here are four tips to help you kickstart the process of drafting your own business plan:

Start with your ‘why’

If you haven’t already, do yourself a favour and look into Simon Sinek’s model of ‘starting with your why.’ According to Sinek, great leaders inspire action by communicating and drawing inspiration from their ‘why’ or their higher purpose for starting a brand or business.

Try and sum up your business’ purpose in a sentence or short statement, and put it front and centre on your business plan. Then, reference it often as a way of checking that you’re on the right path and headed in the direction of something meaningful – whatever that may mean to you. This piece of information can become part of your executive summary or be used as the introduction to your business plan and objective.

Gain an in-depth understanding of the problem you’re solving

At the heart of every successful entrepreneurial story is an airtight strategy for solving a problem. As an aspiring entrepreneur, you will have the best level of knowledge about the product you’re trying to take to market, but do you understand the problem you’re trying to solve?

This is where market research will serve you well. Use a combination of desktop research, surveys, studies, focus groups and social media listening to understand what it is that your target audience wants – no time spent on market research is ever a waste. The information you gather during this process will form part of the market and competitor analysis section of your business plan.

Understand your customer

One of the best investments you can make as a first-time entrepreneur is getting to know your customer. Some marketers recommend segmenting your target audience into groups characterised by different demographics like age, economic status, shopping behaviour and lifestyle preferences.

However, if you choose to learn more about the people you’re selling to, make sure you know all the ins and outs. Aspects like what their hobbies and interests are or their online browsing behaviour can give you important clues on how to market your business to them. The insights you gather for this component will become part of your business strategy.

Explore different pricing strategies

It is exceptionally important for you to ensure that the pricing of your product or service is sufficient enough to generate a profit but also competitive enough to attract customers.

A great deal of competitor research needs to go into how you price your products. There are various strategies that you can employ to gain a competitive edge, some of which include value pricing, bundling, cost-plus pricing and price skimming. This may be a good time to enlist the services of a business development specialist to help you make the right decisions. In a traditional business plan, this information will form part of your sales strategy.

Ben Bierman is the managing director of Business Partners.

BUSINESS REPORT

Related Topics:

Business Plans

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Awesome you're in the right place. we write business plans for businesses just like yours. and not the fill-in-the-blank type of business plan that you have probably already tried to complete on your own either,, but solid, implementable plans, written by a real business planning expert, that are professional, worthy of funding, and contains everything that you need to reach your goals. in short - the type of plan that can help you to become more successful., all our business plans meet the requirements of the nef, idc and all major south african funding institutions. plus we will guide you to apply for funding and prepare all due diligence requirements from funders., what is a business plan, why do you need a business plan.

• You need start-up or expansion funding from a bank, sme development fund or private investor.
• To apply to be an approved agent to import and export goods
• You want to manage business more professionally and be more in control.
• You plan to lease a business premise.
• You are submitting a tender.
• You need project finance.
• You are starting up a new business unit in an existing company.
• You are buying a business or franchise.
• You are applying for a government or international grant.
• You want to lay a strategic map for your business, understadn your competition and of course outsmart them

What should a Business Plan contain?

How do you make a business plan, templates & market research, the role of bplans consultants.

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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.

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DPO White Papers

How to create a business plan for entrepreneurs, an introduction to the african startup landscape.

Africa has one of today’s most exciting entrepreneurial landscapes. Tech startups attracted 16.8% more funding in 2016 than they did in 2015, with 146 startups raising a joint $129 million in 2016. South Africa, Kenya and Nigeria are currently the leading countries for attracting startup investments, together accounting for close to 75% of the total funding volume in the region. Fintech startups garnered 29.6% of all monies invested in African startups in that year.

As of July 2016, there were over 300 incubator hubs in Africa (including accelerators, makerspaces etc.), up from 170 in 2014. Many of these hubs offer partnerships with technology leaders such as Microsoft and Google, and with mobile operators, such as Orange and Vodafone.

African Tech Startup Challenges

With its comparatively young yet immense population entering the workforce, leading to a growing middle class, Africa presents a huge market opportunity. However, due to certain aspects of African society, startups in this region need to face a number of significant challenges. These include:

Access to capital: While startup investment is on the rise, the fact is that there is still a lack of funding available to African startups. This is especially true regarding funding from within Africa. In many cases, entrepreneurs must raise money internationally.

Market size: While Africa is a very populous region, and the African middle class is growing, the majority of this huge target market is still not connected to the internet, rendering the actual target market size as significantly smaller than the total African market.

Teaching the market: In many cases, African startups are introducing a completely new sector to their target audience. In other cases, such as the switch to mobile payments, it is necessary to change consumer behavior. As the African society is still largely unaccustomed to digital payments, this poses a marketing challenge to the fledgling business.

The First Steps in Building an African Startup

Entrepreneurs with a novel idea must first perform a Go/No-Go analysis in which they study the market potential, estimate the startup and ongoing operation costs, and ensure that there are no intellectual property constraints surrounding their solution.

If the basis of the business is novel, an intellectual property advisor should be consulted. If the business is based on existing technologies, proper agreements will need to be put into place. A regulatory advisor should be consulted with as well, in order to ascertain with which regulations and standards the business will need to comply.

Once the entrepreneur has confirmed that there is sustainable business opportunity, a business plan should be created, both to guide the critical steps in the entrepreneurial evolution, and to present to potential investors, towards funding raise.

A business plan is a living document, in that as certain assumptions are confirmed, or as timelines change, so should the business plan, so that at any given moment the plan represents all the actual knowledge concerning the business to date, and an accurate portrayal of how the business will be launched and run.

A Business Plan Outline

As each business is unique, there is no one-size-fits-all business plan. Below is a general outline of the chapters most commonly found in a business plan, but entrepreneurs should adapt this outline to suit their specific businesses and needs.

1. Executive Summary This is an introduction to the business plan, which is found first, but generally written last. It is a short summary of all the main points of the business plan (listed below). A typical executive summary is no longer than 2-3 pages.

2. The Company If the company is an existing company, with a proven track record, then the first section should be about the company, with an explanation of the key company activities and achievements, such as:

• Existing products on the market
• Previous annual sales
• Significant strategic partnerships

If key management are accomplished, with proven achievements, a description of the team can be placed here as well (instead of at the end of the document).

3. The Business Opportunity or The Market Need Most new startups choose to present the business opportunity as the first section of the business plan (following the executive summary). This section presents the window of opportunity, preferably as a specific value, such as a sizeable market, or unnecessary costs.

For instance, a company with a fintech solution for the unbanked should present the scope of this market need, while a company with a novel tool for agriculture could present the costs savings potential within the target market. It is important to backup data with respectable sources.

4. The Product or The Solution In this section the proposed business solution is presented. If there is research and development involved it should be presented here as well, along with development milestones until market ready.

Specific product features should be discussed, and a section on the advantages of the solution should be created, such as technological superiority over existing products, or new and innovative features.

Intellectual property (IP), such as patent applications or designs submitted for registration, can be discussed here as well, along with future plans to protect the company’s IP.

5. Market Analysis This section should present the industry and market trends, as well as the specific target market. Specific market traits should be presented, as a basis for the company’s strategy. The total market potential can be calculated as a function of the target market and the projected price, for instance:

If the target market for an e-commerce site in Africa is the 18-40 demographic, of middle class and above, in Kenya and Nigeria, then data on this total market size should be presented, or calculated, based on logical assumptions.

Projected growth should be discussed, whether due to growth in population, or expansion of this market segment due to economic growth of the region. Assumptions of the total volume of sales and revenue per sale, together with an assumption of a logical percentage of users from the target market, will together enable presenting the market potential for the business.

6. Competitive Analysis The existing competitors that are active within the target market, even those with significantly inferior solutions, should be presented, including a clear comparison of the business offerings as opposed to existing players and solutions.

For instance, a new e-tailer in Africa should analyze existing market players, such as Jumia, Konga, and MallforAfrica as well as key international players who ship to Africa.

Advantages of the new business, such as larger selection of goods or lower prices, should be presented in a comparison table, as well as disadvantages, such as competitors’ existing market share or international reach.

7. The Strategy This section presents the company’s strategy, such as go-to-market strategy, with a timeline for market penetration, marketing strategy to the different target markets, such as business to business (B2B) or business to customer (B2C), and other strategic considerations. For instance, an online travel sites may target both African consumers and African businesses.

A SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis may be included in this section as well. A SWOT summarizes, in a single diagram, many points covered in the previous business plan sections. An effective strategy for market penetration, target market focus and pricing levels can often be built as a result of laying out the various considerations in this summary chart.

8. Business Model The business model includes the price for goods and services, throughout the value chain, including payment to distributors, or manufacturing costs when relevant. E-businesses should present pricing plans as well as their hosting costs. This section can also present payment options, for both online and offline sales, such as integration of a payment service provider (PSP) like DPO which caters to the African online payment market, enabling online and mobile payment acceptance, both from private customers when a B2C model is used, or from businesses, in cases of B2B business models.

9. Operations This section should summarize how the business will be run, in terms of human resources, and facilities, such as offices, warehouses, servers and more.

10. The Team Short bios on the key personnel and management team. Projected hires and the desired employee profile can be included here as well for critical positions.

11. Financial Projections A 4-5-year profit and loss as well a cash flow analysis should be presented here. The company’s financial advisors or accountants can assist in this section – you should not attempt to do this part yourself. In depth calculations, as well as assumptions should be included in the Appendix.

12. Investment Opportunity In this section, you should present the total required investment based on:

• The development milestones that define the time to market
• Cash flow projections of the resources for development
• Operations during the R&D stage
• Preliminary projected marketing costs

13. Appendices Any additional information such as compelling CVs, market research, intellectual property status, financial calculation and more can be added here, at the end of the business plan.

Business Plan Creation Tools

Now that you know what needs to be included in a sound business plan, it is time to start putting all the information together. Here are a few examples of automated tools that can help in creating business plans and the financial forecasts:

Enloop’s patented system automatically generates basic text for each section of the business plan. Users can edit the text, delete it entirely or add their own text. The tool includes financial forecasting based on user inputs, automatically generating sales, profit & loss, cash flow and balance sheet forecasts on-the-fly. Enloop offers a limited freemium version, and extended subscription-based package.

LivePlan simplifies business planning, budgeting, forecasting, and performance tracking for small businesses and startups. This site offers links to free templates, as well as an affordable tool for automated business plan, one pager and financial plan generation, with step-by-step instructions, geared towards young startups.

PlanGuru is an integrated income statement, balance sheet, and cash flow planning tool with over 20 forecasting methods.

VCforU creates automated, aesthetic one-pagers, based on answers provided in their step-by-step startup business questionnaire.

New African startups must thoroughly research the market, in terms of:

• Competitive environment
• Market potential
• Growth trends

A complete and comprehensive business plan should be created based on this in-depth analysis as well as:

• Data regarding development times
• Intellectual property considerations
• Financial projections

Your business plan, summarizing all crucial aspects of the venture, will help you complete your investment pitch deck and increase your chances of success when looking for funding.

DPO Group provides a real-time, cloud-based processing platform, with state-of-the-art technology that supports multiple transaction types with online and offline capabilities. The technology supports all modes of payments, all cards, mobile money, all currencies, mobile apps & card readers. The DPO customer care team provides a single point of contact for you and your end customers. We support all levels of transactions by implementing a unique approach to ensure total conversion.

How To Draft A Business Plan In South Africa

What should a business plan include.

A business plan is a written statement of the journey your business is going to take. It should provide details of how you intend to develop the business, who is going to play a role in this business and how the financial side of the business will be managed.

Clarity on these issues is particularly important if you’re looking for finance, investment or using the business plan to support an immigration application. Your plan should at least include:

• An executive summary This is an overview of the business you want to start. This is essential – first impressions count! Many people will be influenced by how well the summary is presented based on the first few pages of your plan.
• Short description of the business opportunity This details who you are, what product or service you will supply and why, who you will supply the product to and how.
• Operations Including such things as manpower, premises, IT infrastructure, future expansion.
• Marketing and sales strategy Who will buy your service or product and why. How will you promote the service in terms of product, placement and pricing.
• Financials One of the most important aspects of the business plan. These documents and tables translate everything form the business plan into figures.

Is a Business Plan for My Benefit or Others?

Often there is a misconception that the formation of a business plan is a once off exercise. All the research and effort that has gone in it is therefore in vain. Your business plan should always be the first document you review your success with, measure your financial achievements with and ensure you are staying on track.

Economic,Social And Personal Circumstances That Can Affect Your Business Plan

Economic, social and personal circumstances change and your business plan may need adapting to ensure that it is still in line with your strengths. Your business may need to develop new strategies to strengthen weaknesses, exploit opportunities and develop counter measures against threats.

The process of building a business plan focuses the mind on how the business will need to operate to give it the best chance of success. in South Africa.

Researching a business plan , formulating it and ensuring the business plan is realistic and workable are just some of the key criteria when commencing a new business.

When such a business plan is presented as supporting evidence to immigration authorities its importance becomes even more valid.

A business plan is a written document that describes the business, the business objectives, strategies, market segment, forecasts and financial resources.

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You will be assisted by our  Business Plan Specialist , registered with the NSBC (National Small Business Chamber of South Africa). Our professional Small Business Plans comply with SEDA, SEFA, Dti, NEF, IDC, and Private Financial Institutes and Bank Requirements in South Africa. We have completed over 1000 Business Plans since 2013 – and consulted numerous Start-ups and Companies in South Africa. To start the process, apply on this page below or call our toll-free number 0800 007 269  for free consultation.

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FAQ's & Info on Business Plans in South Africa

More faq's & info on our business plans, what is a business plan.

A business plan is a written document that describes and summarises the operational and financial objectives of a business and outlines how it is going to practically achieving its goals.

What are the Main Advantages of a Business Plan?

Firstly, you have a clear plan to follow: Your business plan is your company’s ‘roadmap’ to start with. It will change over the first few months in business, but it gives you focus and direction – which is very important when you start a business.

Secondly, being compliant: Certain governmental regulating bodies or institutions, require your company to have a specific industry related business plan to apply. For example PSIRA.

Lastly, it will enable you to apply for outside financing / funding: Investors want to know exactly what your business will do, who your target market is and if your business is profitable before they will consider your application for business finance or funding.

Do I really need a Business Plan?

Yes, you do. Even if you think you have a clear idea of how you are going to start and develop your business, setting it out on paper forces you to be more objective and attentive to details. It is human nature to tend to be optimistic about future schemes. However, the process of drafting the plans will help you assess whether you have actually taken all relevant factors into account, or your plan’s success depends on outcomes you have no way of assuring.

Isn't a Business Plan necessary if I'm looking for financing?

No. It is a mistake to think that business plans are just something to give an investor looking for assurances that your business has a good chance of turning a profit. The benefits of a business plan are primarily for you, the owner. At the onset of your venture, a comprehensive plan will help you get a realistic picture of your capabilities and viable strategies. As your business continues to grow, your plan will help you assess whether you are meeting your goals, or a change of direction is needed.

Will I get funding?

Our business plan writer:.

Our Head Business Plan Writer is Brend Badenhorst – a SETA Business Facilitator. He has written over 500 Plans for new and existing businesses. He has a team of dedicated Business Plan Consultants who will guide you through the process to setup the correct Plan for your Company.

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What is the difference between a Business Plan and a Company Profile?

Your objective with a Company Profile is to provide an overview of your organization. A biography emphasizes professional and personal achievements. A Business Plan contains marketing, sales, and operations strategies.

Do Business Plans Need to Include Visual Elements?

While not mostly visual, incorporating graphics like charts and images in certain sections can significantly enhance a business plan’s effectiveness. At Company Partners, we value the impact of a visually appealing plan. By integrating graphs, charts, and pertinent images, we help convey key data and strategies, ensuring your business plan is both engaging and informative.

What is the Cost of a Professional Business Plan?

The cost varies based on your approach – whether you’re crafting it yourself or enlisting professional help like Company Partners. We offer customized services to fit various budgets, emphasizing quality and strategic insight. A professionally developed plan for a small business, around 20+ pages, typically costs R3490.

How To Write A Business Plan?

Begin by defining your business idea, conducting thorough market research, and outlining your marketing and operational strategies. If organizing these elements seems daunting, consider utilizing quality free templates online. Company Partners also offers examples and guidance, ensuring your plan is comprehensive and tailored for the South African market. . You can also view the Company Partners example to act as a guide you through this process.

What are the characteristics of a Strong Business Plan?

A good plan is clear, concise, and detailed, with a strong emphasis on market analysis and financial projections. The professionals which view your business plan to make a decision whether to invest or fund you needs to have a clear picture of your trajectory and if their investment/money will be well spent. Company Partners ensures that your plan is adaptable and strategically aligned with your business goals.

What is the Role of a Business Plan Consultant?

A consultant, like those at Company Partners, specializes in assisting businesses to create strategic and effective business plans. The specialist consultants have years of experience through working in companies to give them an in-depth understanding of how it works. Our experts bring this in-depth knowledge of market trends and financial modelling into the writing process.

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How To Start A Business In 11 Steps (2024 Guide)

Updated: Apr 7, 2024, 1:44pm

Table of Contents

Before you begin: get in the right mindset, 1. determine your business concept, 2. research your competitors and market, 3. create your business plan, 4. choose your business structure, 5. register your business and get licenses, 6. get your finances in order, 7. fund your business, 8. apply for business insurance, 9. get the right business tools, 10. market your business, 11. scale your business, what are the best states to start a business, bottom line, frequently asked questions (faqs).

Starting a business is one of the most exciting and rewarding experiences you can have. But where do you begin? There are several ways to approach creating a business, along with many important considerations. To help take the guesswork out of the process and improve your chances of success, follow our comprehensive guide on how to start a business. We’ll walk you through each step of the process, from defining your business idea to registering, launching and growing your business .

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The public often hears about overnight successes because they make for a great headline. However, it’s rarely that simple—they don’t see the years of dreaming, building and positioning before a big public launch. For this reason, remember to focus on your business journey and don’t measure your success against someone else’s.

Consistency Is Key

New business owners tend to feed off their motivation initially but get frustrated when that motivation wanes. This is why it’s essential to create habits and follow routines that power you through when motivation goes away.

Take the Next Step

Some business owners dive in headfirst without looking and make things up as they go along. Then, there are business owners who stay stuck in analysis paralysis and never start. Perhaps you’re a mixture of the two—and that’s right where you need to be. The best way to accomplish any business or personal goal is to write out every possible step it takes to achieve the goal. Then, order those steps by what needs to happen first. Some steps may take minutes while others take a long time. The point is to always take the next step.

Most business advice tells you to monetize what you love, but it misses two other very important elements: it needs to be profitable and something you’re good at. For example, you may love music, but how viable is your business idea if you’re not a great singer or songwriter? Maybe you love making soap and want to open a soap shop in your small town that already has three close by—it won’t be easy to corner the market when you’re creating the same product as other nearby stores.

If you don’t have a firm idea of what your business will entail, ask yourself the following questions:

• What do you love to do?
• What do you hate to do?
• Can you think of something that would make those things easier?
• What are you good at?
• What do others come to you for advice about?
• If you were given ten minutes to give a five-minute speech on any topic, what would it be?
• What’s something you’ve always wanted to do, but lacked resources for?

These questions can lead you to an idea for your business. If you already have an idea, they might help you expand it. Once you have your idea, measure it against whether you’re good at it and if it’s profitable.

Your business idea also doesn’t have to be the next Scrub Daddy or Squatty Potty. Instead, you can take an existing product and improve upon it. You can also sell a digital product so there’s little overhead.

What Kind of Business Should You Start?

Before you choose the type of business to start, there are some key things to consider:

• What type of funding do you have?
• How much time do you have to invest in your business?
• Do you prefer to work from home or at an office or workshop?
• What interests and passions do you have?
• Can you sell information (such as a course), rather than a product?
• What skills or expertise do you have?
• How fast do you need to scale your business?
• What kind of support do you have to start your business?
• Are you partnering with someone else?
• Does the franchise model make more sense to you?

Consider Popular Business Ideas

Not sure what business to start? Consider one of these popular business ideas:

• Start a Franchise
• Start a Blog
• Start an Online Store
• Start a Dropshipping Business
• Start a Cleaning Business
• Start a Bookkeeping Business
• Start a Clothing Business
• Start a Landscaping Business
• Start a Consulting Business
• Start a Photography Business
• Start a Vending Machine Business

Most entrepreneurs spend more time on their products than they do getting to know the competition. If you ever apply for outside funding, the potential lender or partner wants to know: what sets you (or your business idea) apart? If market analysis indicates your product or service is saturated in your area, see if you can think of a different approach. Take housekeeping, for example—rather than general cleaning services, you might specialize in homes with pets or focus on garage cleanups.

Primary Research

The first stage of any competition study is primary research, which entails obtaining data directly from potential customers rather than basing your conclusions on past data. You can use questionnaires, surveys and interviews to learn what consumers want. Surveying friends and family isn’t recommended unless they’re your target market. People who say they’d buy something and people who do are very different. The last thing you want is to take so much stock in what they say, create the product and flop when you try to sell it because all of the people who said they’d buy it don’t because the product isn’t something they’d buy.

Secondary Research

Utilize existing sources of information, such as census data, to gather information when you do secondary research. The current data may be studied, compiled and analyzed in various ways that are appropriate for your needs but it may not be as detailed as primary research.

Conduct a SWOT Analysis

SWOT stands for strengths, weaknesses, opportunities and threats. Conducting a SWOT analysis allows you to look at the facts about how your product or idea might perform if taken to market, and it can also help you make decisions about the direction of your idea. Your business idea might have some weaknesses that you hadn’t considered or there may be some opportunities to improve on a competitor’s product.

Asking pertinent questions during a SWOT analysis can help you identify and address weaknesses before they tank your new business.

A business plan is a dynamic document that serves as a roadmap for establishing a new business. This document makes it simple for potential investors, financial institutions and company management to understand and absorb. Even if you intend to self-finance, a business plan can help you flesh out your idea and spot potential problems. When writing a well-rounded business plan, include the following sections:

• Executive summary: The executive summary should be the first item in the business plan, but it should be written last. It describes the proposed new business and highlights the goals of the company and the methods to achieve them.
• Company description: The company description covers what problems your product or service solves and why your business or idea is best. For example, maybe your background is in molecular engineering, and you’ve used that background to create a new type of athletic wear—you have the proper credentials to make the best material.
• Market analysis: This section of the business plan analyzes how well a company is positioned against its competitors. The market analysis should include target market, segmentation analysis, market size, growth rate, trends and a competitive environment assessment.
• Organization and structure: Write about the type of business organization you expect, what risk management strategies you propose and who will staff the management team. What are their qualifications? Will your business be a single-member limited liability company (LLC) or a corporation ?
• Mission and goals: This section should contain a brief mission statement and detail what the business wishes to accomplish and the steps to get there. These goals should be SMART (specific, measurable, action-orientated, realistic and time-bound).
• Products or services: This section describes how your business will operate. It includes what products you’ll offer to consumers at the beginning of the business, how they compare to existing competitors, how much your products cost, who will be responsible for creating the products, how you’ll source materials and how much they cost to make.
• Background summary: This portion of the business plan is the most time-consuming to write. Compile and summarize any data, articles and research studies on trends that could positively and negatively affect your business or industry.
• Marketing plan: The marketing plan identifies the characteristics of your product or service, summarizes the SWOT analysis and analyzes competitors. It also discusses how you’ll promote your business, how much money will be spent on marketing and how long the campaign is expected to last.
• Financial plan: The financial plan is perhaps the core of the business plan because, without money, the business will not move forward. Include a proposed budget in your financial plan along with projected financial statements, such as an income statement, a balance sheet and a statement of cash flows. Usually, five years of projected financial statements are acceptable. This section is also where you should include your funding request if you’re looking for outside funding.

Learn more: Download our free simple business plan template .

Come Up With an Exit Strategy

An exit strategy is important for any business that is seeking funding because it outlines how you’ll sell the company or transfer ownership if you decide to retire or move on to other projects. An exit strategy also allows you to get the most value out of your business when it’s time to sell. There are a few different options for exiting a business, and the best option for you depends on your goals and circumstances.

The most common exit strategies are:

• Selling the business to another party
• Passing the business down to family members
• Liquidating the business assets
• Closing the doors and walking away

Develop a Scalable Business Model

As your small business grows, it’s important to have a scalable business model so that you can accommodate additional customers without incurring additional costs. A scalable business model is one that can be replicated easily to serve more customers without a significant increase in expenses.

Some common scalable business models are:

• Subscription-based businesses
• Businesses that sell digital products
• Franchise businesses
• Network marketing businesses

Start Planning for Taxes

One of the most important things to do when starting a small business is to start planning for taxes. Taxes can be complex, and there are several different types of taxes you may be liable for, including income tax, self-employment tax, sales tax and property tax. Depending on the type of business you’re operating, you may also be required to pay other taxes, such as payroll tax or unemployment tax.

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When structuring your business, it’s essential to consider how each structure impacts the amount of taxes you owe, daily operations and whether your personal assets are at risk.

An LLC limits your personal liability for business debts. LLCs can be owned by one or more people or companies and must include a registered agent . These owners are referred to as members.

• LLCs offer liability protection for the owners
• They’re one of the easiest business entities to set up
• You can have a single-member LLC
• You may be required to file additional paperwork with your state on a regular basis
• LLCs can’t issue stock
• You’ll need to pay annual filing fees to your state

Limited Liability Partnership (LLP)

An LLP is similar to an LLC but is typically used for licensed business professionals such as an attorney or accountant. These arrangements require a partnership agreement.

• Partners have limited liability for the debts and actions of the LLP
• LLPs are easy to form and don’t require much paperwork
• There’s no limit to the number of partners in an LLP
• Partners are required to actively take part in the business
• LLPs can’t issue stock
• All partners are personally liable for any malpractice claims against the business

Sole Proprietorship

If you start a solo business, you might consider a sole proprietorship . The company and the owner, for legal and tax purposes, are considered the same. The business owner assumes liability for the business. So, if the business fails, the owner is personally and financially responsible for all business debts.

• Sole proprietorships are easy to form
• There’s no need to file additional paperwork with your state
• You’re in complete control of the business
• You’re personally liable for all business debts
• It can be difficult to raise money for a sole proprietorship
• The business may have a limited lifespan

Corporation

A corporation limits your personal liability for business debts just as an LLC does. A corporation can be taxed as a C corporation (C-corp) or an S corporation (S-corp). S-corp status offers pass-through taxation to small corporations that meet certain IRS requirements. Larger companies and startups hoping to attract venture capital are usually taxed as C-corps.

• Corporations offer liability protection for the owners
• The life span of a corporation is not limited
• A corporation can have an unlimited number of shareholders
• Corporations are subject to double taxation
• They’re more expensive and complicated to set up than other business structures
• The shareholders may have limited liability

Before you decide on a business structure, discuss your situation with a small business accountant and possibly an attorney, as each business type has different tax treatments that could affect your bottom line.

Helpful Resources

• How To Set Up an LLC in 7 Steps
• How To Start a Sole Proprietorship
• How To Start a Corporation
• How To Start a Nonprofit
• How To Start a 501(c)(3)

There are several legal issues to address when starting a business after choosing the business structure. The following is a good checklist of items to consider when establishing your business:

Choose Your Business Name

Make it memorable but not too difficult. Choose the same domain name, if available, to establish your internet presence. A business name cannot be the same as another registered company in your state, nor can it infringe on another trademark or service mark that is already registered with the United States Patent and Trademark Office (USPTO).

Business Name vs. DBA

There are business names, and then there are fictitious business names known as “Doing Business As” or DBA. You may need to file a DBA if you’re operating under a name that’s different from the legal name of your business. For example, “Mike’s Bike Shop” is doing business as “Mike’s Bikes.” The legal name of the business is “Mike’s Bike Shop,” and “Mike’s Bikes” is the DBA.

You may need to file a DBA with your state, county or city government offices. The benefits of a DBA include:

• It can help you open a business bank account under your business name
• A DBA can be used as a “trade name” to brand your products or services
• A DBA can be used to get a business license

Register Your Business and Obtain an EIN

You’ll officially create a corporation, LLC or other business entity by filing forms with your state’s business agency―usually the Secretary of State. As part of this process, you’ll need to choose a registered agent to accept legal documents on behalf of your business. You’ll also pay a filing fee. The state will send you a certificate that you can use to apply for licenses, a tax identification number (TIN) and business bank accounts.

Next, apply for an employer identification number (EIN) . All businesses, other than sole proprietorships with no employees, must have a federal employer identification number. Submit your application to the IRS and you’ll typically receive your number in minutes.

Get Appropriate Licenses and Permits

Legal requirements are determined by your industry and jurisdiction. Most businesses need a mixture of local, state and federal licenses to operate. Check with your local government office (and even an attorney) for licensing information tailored to your area.

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Open a Business Bank Account

Keep your business and personal finances separate. Here’s how to choose a business checking account —and why separate business accounts are essential. When you open a business bank account, you’ll need to provide your business name and your business tax identification number (EIN). This business bank account can be used for your business transactions, such as paying suppliers or invoicing customers. Most times, a bank will require a separate business bank account to issue a business loan or line of credit.

Hire a Bookkeeper or Get Accounting Software

If you sell a product, you need an inventory function in your accounting software to manage and track inventory. The software should have ledger and journal entries and the ability to generate financial statements.

Some software programs double as bookkeeping tools. These often include features such as check writing and managing receivables and payables. You can also use this software to track your income and expenses, generate invoices, run reports and calculate taxes.

There are many bookkeeping services available that can do all of this for you, and more. These services can be accessed online from any computer or mobile device and often include features such as bank reconciliation and invoicing. Check out the best accounting software for small business, or see if you want to handle the bookkeeping yourself.

Determine Your Break-Even Point

Before you fund your business, you must get an idea of your startup costs. To determine these, make a list of all the physical supplies you need, estimate the cost of any professional services you will require, determine the price of any licenses or permits required to operate and calculate the cost of office space or other real estate. Add in the costs of payroll and benefits, if applicable.

Businesses can take years to turn a profit, so it’s better to overestimate the startup costs and have too much money than too little. Many experts recommend having enough cash on hand to cover six months of operating expenses.

When you know how much you need to get started with your business, you need to know the point at which your business makes money. This figure is your break-even point.

In contrast, the contribution margin = total sales revenue – cost to make product

For example, let’s say you’re starting a small business that sells miniature birdhouses for fairy gardens. You have determined that it will cost you $500 in startup costs. Your variable costs are $0.40 per birdhouse produced, and you sell them for $1.50 each.

Let’s write these out so it’s easy to follow:

This means that you need to sell at least 456 units just to cover your costs. If you can sell more than 456 units in your first month, you will make a profit.

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There are many different ways to fund your business—some require considerable effort, while others are easier to obtain. Two categories of funding exist: internal and external.

Internal funding includes:

• Personal savings
• Credit cards
• Funds from friends and family

If you finance the business with your own funds or with credit cards, you have to pay the debt on the credit cards and you’ve lost a chunk of your wealth if the business fails. By allowing your family members or friends to invest in your business, you are risking hard feelings and strained relationships if the company goes under. Business owners who want to minimize these risks may consider external funding.

External funding includes:

• Small business loans
• Small business grants
• Angel investors
• Venture capital
• Crowdfunding

Small businesses may have to use a combination of several sources of capital. Consider how much money is needed, how long it will take before the company can repay it and how risk-tolerant you are. No matter which source you use, plan for profit. It’s far better to take home six figures than make seven figures and only keep $80,000 of it.

Funding ideas include:

• Invoice factoring: With invoice factoring , you can sell your unpaid invoices to a third party at a discount.
• Business lines of credit: Apply for a business line of credit , which is similar to a personal line of credit. The credit limit and interest rate will be based on your business’s revenue, credit score and financial history.
• Equipment financing: If you need to purchase expensive equipment for your business, you can finance it with a loan or lease.
• Small Business Administration (SBA) microloans: Microloans are up to $50,000 loans that can be used for working capital, inventory or supplies and machinery or equipment.
• Grants: The federal government offers grants for businesses that promote innovation, export growth or are located in historically disadvantaged areas. You can also find grants through local and regional organizations.
• Crowdfunding: With crowdfunding , you can raise money from a large group of people by soliciting donations or selling equity in your company.

Choose the right funding source for your business by considering the amount of money you need, the time frame for repayment and your tolerance for risk.

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You need to have insurance for your business , even if it’s a home-based business or you don’t have any employees. The type of insurance you need depends on your business model and what risks you face. You might need more than one type of policy, and you might need additional coverage as your business grows. In most states, workers’ compensation insurance is required by law if you have employees.

Work With an Agent To Get Insured

An insurance agent can help determine what coverages are appropriate for your business and find policies from insurers that offer the best rates. An independent insurance agent represents several different insurers, so they can shop around for the best rates and coverage options.

Basic Types of Business Insurance Coverage

• Liability insurance protects your business against third-party claims of bodily injury, property damage and personal injury such as defamation or false advertising.
• Property insurance covers the physical assets of your business, including your office space, equipment and inventory.
• Business interruption insurance pays for the loss of income if your business is forced to close temporarily due to a covered event such as a natural disaster.
• Product liability insurance protects against claims that your products caused bodily injury or property damage.
• Employee practices liability insurance covers claims from employees alleging discrimination, sexual harassment or other wrongful termination.
• Workers’ compensation insurance covers medical expenses and income replacement for employees who are injured on the job.
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Business tools can help make your life easier and make your business run more smoothly. The right tools can help you save time, automate tasks and make better decisions.

Consider the following tools in your arsenal:

• Accounting software : Track your business income and expenses, prepare financial statements and file taxes. Examples include QuickBooks and FreshBooks.
• Customer relationship management (CRM) software : This will help you manage your customer relationships, track sales and marketing data and automate tasks like customer service and follow-ups. Examples include Zoho CRM and monday.com.
• Project management software : Plan, execute and track projects. It can also be used to manage employee tasks and allocate resources. Examples include Airtable and ClickUp.
• Credit card processor : This will allow you to accept credit card payments from customers. Examples include Stripe and PayPal.
• Point of sale (POS) : A system that allows you to process customer payments. Some accounting software and CRM software have POS features built-in. Examples include Clover and Lightspeed.
• Virtual private network (VPN) : Provides a secure, private connection between your computer and the internet. This is important for businesses that handle sensitive data. Examples include NordVPN and ExpressVPN.
• Merchant services : When customers make a purchase, the money is deposited into your business account. You can also use merchant services to set up recurring billing or subscription payments. Examples include Square and Stripe.
• Email hosting : This allows you to create a professional email address with your own domain name. Examples include G Suite and Microsoft Office 365.

Many business owners spend so much money creating their products that there isn’t a marketing budget by the time they’ve launched. Alternatively, they’ve spent so much time developing the product that marketing is an afterthought.

Create a Website

Even if you’re a brick-and-mortar business, a web presence is essential. Creating a website doesn’t take long, either—you can have one done in as little as a weekend. You can make a standard informational website or an e-commerce site where you sell products online. If you sell products or services offline, include a page on your site where customers can find your locations and hours. Other pages to add include an “About Us” page, product or service pages, frequently asked questions (FAQs), a blog and contact information.

Optimize Your Site for SEO

After getting a website or e-commerce store, focus on optimizing it for search engines (SEO). This way, when a potential customer searches for specific keywords for your products, the search engine can point them to your site. SEO is a long-term strategy, so don’t expect a ton of traffic from search engines initially—even if you’re using all the right keywords.

Create Relevant Content

Provide quality digital content on your site that makes it easy for customers to find the correct answers to their questions. Content marketing ideas include videos, customer testimonials, blog posts and demos. Consider content marketing one of the most critical tasks on your daily to-do list. This is used in conjunction with posting on social media.

Get Listed in Online Directories

Customers use online directories like Yelp, Google My Business and Facebook to find local businesses. Some city halls and chambers of commerce have business directories too. Include your business in as many relevant directories as possible. You can also create listings for your business on specific directories that focus on your industry.

Develop a Social Media Strategy

Your potential customers are using social media every day—you need to be there too. Post content that’s interesting and relevant to your audience. Use social media to drive traffic back to your website where customers can learn more about what you do and buy your products or services.

You don’t necessarily need to be on every social media platform available. However, you should have a presence on Facebook and Instagram because they offer e-commerce features that allow you to sell directly from your social media accounts. Both of these platforms have free ad training to help you market your business.

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To scale your business, you need to grow your customer base and revenue. This can be done by expanding your marketing efforts, improving your product or service, collaborating with other creators or adding new products or services that complement what you already offer.

Think about ways you can automate or outsource certain tasks so you can focus on scaling the business. For example, if social media marketing is taking up too much of your time, consider using a platform such as Hootsuite to help you manage your accounts more efficiently. You can also consider outsourcing the time-consumer completely.

You can also use technology to automate certain business processes, including accounting, email marketing and lead generation. Doing this will give you more time to focus on other aspects of your business.

When scaling your business, it’s important to keep an eye on your finances and make sure you’re still profitable. If you’re not making enough money to cover your costs, you need to either reduce your expenses or find ways to increase your revenue.

Build a Team

As your business grows, you’ll need to delegate tasks and put together a team of people who can help you run the day-to-day operations. This might include hiring additional staff, contractors or freelancers.

Resources for building a team include:

• Hiring platforms: To find the right candidates, hiring platforms, such as Indeed and Glassdoor, can help you post job descriptions, screen résumés and conduct video interviews.
• Job boards: Job boards such as Craigslist and Indeed allow you to post open positions for free.
• Social media: You can also use social media platforms such as LinkedIn and Facebook to find potential employees.
• Freelance platforms: Using Upwork, Freelancer and Fiverr can help you find talented freelancers for one-time or short-term projects. You can also outsource certain tasks, such as customer service, social media marketing or bookkeeping.

You might also consider partnering with other businesses in your industry. For example, if you’re a wedding planner, you could partner with a florist, photographer, catering company or venue. This way, you can offer your customers a one-stop shop for all their wedding needs. Another example is an e-commerce store that partners with a fulfillment center. This type of partnership can help you save money on shipping and storage costs, and it can also help you get your products to your customers faster.

To find potential partnerships, search for businesses in your industry that complement what you do. For example, if you’re a web designer, you could partner with a digital marketing agency.

You can also search for businesses that serve the same target market as you but offer different products or services. For example, if you sell women’s clothing, you could partner with a jewelry store or a hair salon.

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To rank the best states to start a business in 2024, Forbes Advisor analyzed 18 key metrics across five categories to determine which states are the best and worst to start a business in. Our ranking takes into consideration factors that impact businesses and their ability to succeed, such as business costs, business climate, economy, workforce and financial accessibility in each state. Check out the full report .

Starting a small business takes time, effort and perseverance. But if you’re willing to put in the work, it can be a great way to achieve your dreams and goals. Be sure to do your research, create a solid business plan and pivot along the way. Once you’re operational, don’t forget to stay focused and organized so you can continue to grow your business.

How do I start a small business with no money?

There are several funding sources for brand-new businesses and most require a business plan to secure it. These include the SBA , private grants, angel investors, crowdfunding and venture capital.

What is the best business structure?

The best business structure for your business will depend entirely on what kind of company you form, your industry and what you want to accomplish. But any successful business structure will be one that will help your company set realistic goals and follow through on set tasks.

Do I need a business credit card?

You don’t need one, but a business credit card can be helpful for new small businesses. It allows you to start building business credit, which can help you down the road when you need to take out a loan or line of credit. Additionally, business credit cards often come with rewards and perks that can save you money on business expenses.

Do I need a special license or permit to start a small business?

The answer to this question will depend on the type of business you want to start and where you’re located. Some businesses, such as restaurants, will require a special permit or license to operate. Others, such as home daycare providers, may need to register with the state.

How much does it cost to create a business?

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What are some easy businesses to start?

One of the easiest businesses to start also has the lowest overhead: selling digital goods. This can include items such as e-books, online courses, audio files or software. If you have expertise in a particular area or niche, this is a great option for you. Dropshipping is also a great option because you don’t have to keep inventory. You could also buy wholesale products or create your own. Once you create your product, you can sell it through your own website or third-party platforms such as Amazon or Etsy.

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There is no one answer to this question because the most profitable type of business will vary depending on a number of factors, such as your industry, location, target market and business model. However, some businesses tend to be more profitable than others, such as luxury goods, high-end services, business-to-business companies and subscription-based businesses. If you’re not sure what type of business to start, consider your strengths and interests, as well as the needs of your target market, to help you choose a profitable business idea.

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Ukraine war latest: Putin and Kim sign new defence deal - as UK says 'bizarre scenes' should be warning

Vladimir Putin and Kim Jong Un have signed a new deal in Pyongyang, making a vow of mutual aid if either of their countries is attacked as both face escalating stand-offs with the West. Got a question on the Ukraine war? Submit it below for our specialists to answer.

Wednesday 19 June 2024 19:00, UK

• Vladimir Putin visited North Korea for the first time in 24 years today. He is now on his way to Vietnam
• Catch up: Everything you need to know about Putin's visit
• Kim and Putin share 'pent up inmost thoughts'
• Russia and North Korea sign new defence deal
• Analysis: China keeping close eye on cosy friendship
• A limousine, a dagger and artworks - the leaders swap gifts
• 'Bizarre scenes' should be warning, UK says
• Listen to the Daily above and tap here to follow wherever you get your podcasts

Ask a question or make a comment

Volodymyr Zelenskyy has announced two more signatures have been added to his Peace Summit communique. 

He said the Organisation of American States, which represents countries in North and South America, and Antigua and Barbuda have signed it.

"We view the entire world as equals, and this is our ideological difference from Russia in international relations," the Ukrainian president said.

"Putin, however, wants only his voice to matter, or those he chooses. This is a typically colonial world view that we, together with all our partners, must break." 

He said the format of the Peace Summit will ensure "fair treatment for every nation", including, of course, Ukraine. 

Nearly 80 countries have already approved the final communique covering steps toward nuclear safety, food security, and the release of prisoners and deportees, including thousands of children abducted by Russia.

One person has been killed and three others have been injured in a Russian shelling attack in Donetsk, Ukraine's police force has said. 

In a post on Telegram, it said there had been 2,291 strikes in the eastern region in the last 24 hours. 

Russia used "aviation, rocket salvo systems and artillery", it added. 

Over the past few months, fighting has been surging across the frontline in the eastern Donetsk region. 

Russian forces have been trying to reach the key hilltop city of Chasiv Yar and other strategic hubs in the region. 

Russian troops also launched an offensive in Ukraine's northeastern Kharkiv region. 

Mr Putin said he wanted to establish a buffer zone there to prevent Ukrainian cross-border attacks.

The offensive drew some Ukrainian fighters away from Donetsk, but many remain. 

Reuters captured these photos of Ukraine troops operating in the area. 

Russia has been attempting to replace "significant losses" by recruiting soldiers from African countries, the UK's defence ministry has said. 

Ukrainian intelligence has been reporting increased Russian efforts to recruit from several African countries in recent days. 

"This recruitment campaign is likely an attempt to replace significant battlefield losses and sustain offensive activity across the front," the MoD said. 

"Russia is likely expanding its recruitment across the global south to avoid additional mobilisations within Russian itself."

It added that previous mobilisations within Russia had resulted in a record labour shortage and the mass departure of skilled workers. 

Vladimir Putin's visit to North Korea has come to an end, with the Russian president leaving Pyongyang after a busy day of diplomacy.

His next stop is Vietnam.

The headline from Mr Putin's visit is no doubt the agreement signed between the two countries that, its leaders say, covers security, trade, investment and cultural and humanitarian ties among other things.

The deal has triggered plenty of reaction from around the world, with Washington and Seoul among those expressing concern about the growing military ties between Russia and North Korea.

Below, we've taken a look at exactly how Mr Putin's visit shaped up.

Opening remarks

The warm words between the Kremlin and Pyongyang started before Mr Putin's plane had even touched down, with the Russian leader penning an open letter in North Korean state media.

It was here that we first got confirmation of an agreement that would be signed by the two countries. Mr Putin called it a partnership that would help in the "fight against the imperialist hegemonistic policies of the US and its satellites against the Russian Federation".

There was also some appreciation shown for North Korea's "firm support" for Russia's ongoing invasion of Ukraine. 

Mr Putin claimed the US were doing everything they could to "prolong and inflame" the conflict, which Russia began in February 2022.

'Rock star' welcome in Pyongyang

When Mr Putin arrived in Pyongyang in the early hours of the morning, he was met personally by Kim Jong Un, a red carpet and a bouquet of roses.

State television then showed his motorcade driving through brightly lit neighbourhoods, with the 105-storey Ryugyong Hotel glowing with LED lights that said "Welcome Putin".

The streets of the capital were lined with hundreds of thousands of people holding flowers and waving Russian and North Korean flags, welcoming Mr Putin back on to North Korean soil for the first time in 24 years.

There was then a lavish ceremony in Pyongyang's main square, crowded with people and colourful decorations, where Mr Kim introduced key members of the North Korean leadership.

As a military band played, the two leaders walked down another red carpet and greeted dignitaries. Artillery guns fired a welcoming salvo.

As our Asia correspondent Nicole Johnston put it, North Korea gave Mr Putin "a rock star's welcome".

The 'comprehensive strategic partnership pact'

Fundamental to this trip for both Russia and North Korea is the document signed by the two nations, which both of its leaders have been at pains to describe in bold terms.

Mr Kim calls it the "strongest ever treaty", while for Mr Putin, it's a "breakthrough document".

The two leaders were first joined by ministers from both countries for initial talks. They then engaged in one-on-one talks that lasted two hours, according to reports.

This new agreement marks a new period of relations between the two countries, one that, according to North Korea's leader, is "incomparable". 

It reportedly covers everything from investment to strengthening cultural ties and cooperating on health, medical education and science. 

But it's the inclusion of a mutual defence clause, in case of "aggression", as Mr Putin put it, that stands out.

Mr Kim told reporters that North Korea will respond "without hesitation" to "incidents or wars" facing either his country or Russia. 

He did not elaborate on what the response will entail, though he did say the agreement is "defensive and peaceful in nature".

Russia also doesn't rule out the "development" of military-technical cooperation between the two nations. 

There's already an assumption that North Korea is sending Russia ammunition to use in Ukraine, while there are fears that Moscow will pass on aid for Pyongyang's nuclear and missile programmes in return. 

The signing of this agreement will do little to subdue those concerns.

Gifts and goodbyes

With business out the way, Mr Putin and Mr Kim spent the next few hours having a bit of fun.

There was the exchanging of gifts, with the Russian leader receiving works of art depicting himself.

For Mr Kim there was a tea set, an admiral's dirk (a type of dagger) and a Russian-built limousine, which both leaders took turns at driving.

Mr Putin then laid a wreath at the Liberation monument in Pyongyang, which was erected in 1946 in memory of Red Army soldiers killed liberating the Korean Peninsula from Japanese occupation.

Keeping with that theme, both leaders took their seats at a gala concert, where songs performed all evoked war and defence of the nation.

Russian state media reported the concert included excerpts from wartime songs, including Where the Motherland Begins, We Need One Victory and Katyusha, as well as song by groups who regularly support Mr Putin at political rallies.

Putin's opinion piece

As Mr Putin heads for Vietnam, a newspaper in the country has published an opinion piece he has written. 

In the piece, he praised Vietnam for its "balanced" stance on the Ukraine war and applauded the communist-ruled country for supporting "a pragmatic way to solve" the conflict. 

He also said Russia and Vietnam shared "similar assessments of the situation in the Asia-Pacific region".

He is due to arrive in Hanoi overnight and plans to meet Vietnamese leaders tomorrow, on the heels of his trip to North Korea.

It will be his first trip to the country since 2017.

One of the gifts given by Vladimir Putin to Kim Jong Un during his visit to North Korea today was a luxury Russian limousine. 

We're now got footage of the Russian president driving his host around, and other highlights from his trip...

Vladimir Putin has praised Vietnam for its "balanced" stance on the Ukraine war in an opinion piece published in the newspaper of Vietnam's Communist Party.

In the piece, timed for his state visit to Vietnam tomorrow, the Russian leader applauded the communist-ruled country for supporting "a pragmatic way to solve the crisis" in Ukraine.

Energy, he said, was "an area of strategic importance in bilateral cooperation" and cited Russia-Vietnam joint ventures on fossil fuels in the South China Sea and in northern Russia.

The comments were published in the Nhan Dan newspaper.

Vietnam, which officially pursues a neutral foreign policy in its relations with major world powers, has abstained from condemning Russia's war in Ukraine.

Mr Putin is due to arrive in Hanoi overnight and plans to meet Vietnamese leaders tomorrow, on the heels of his trip to North Korea.

Russia has "significant amounts" of Western assets and property on its territory that could be targets for retaliation if the West seizes income from Russian assets, a foreign ministry official has said.

Last week, leaders of the G7 agreed at a summit in Italy to use interest from Russian assets frozen in the West to provide a $50bn loan to Ukraine.

But Russia has now said the action is illegal and will rebound against the West.

"Our country has significant amounts of Western funds and property that are under Russian jurisdiction; all of this may be subject to Russian retaliatory policies and retaliatory actions," spokeswoman Maria Zakharova told reporters.

"Of course, no one will disclose the nature of these retaliatory actions to you. But the arsenal of political and economic countermeasures is wide."

A French defence and technology company has signed three deals with Ukraine, including one announcing the intent to create a joint venture in the country that will boost the delivery of military gear.

"Domains of cooperation include electronic warfare, tactical communications, air defence systems and radars, as well as unmanned aircraft systems," Thales said.

For context : France and other NATO member states are keen to step up military production capacity in the wake of Russia's invasion of Ukraine.

Last week, NATO defence ministers approved a plan to provide reliable long-term security aid and military training for Ukraine after delays in Western deliveries of funds, arms and ammunition.

Kyiv's Western backers have mostly concentrated their efforts through the Pentagon-run Ukraine defence contact group, a forum for around 50 countries to drum up the weapons and ammunition the country needs most.

The effort has been described as a way to "Trump proof" NATO backing for Ukraine, a reference to concern that Donald Trump might withdraw US support for Kyiv should he return to office.

A Ukrainian soldier who was allegedly beheaded by Russian soldiers has been identified, according to Ukraine's prosecutor general.

In a statement on X, Andriy Kostin said there had been an investigation into the soldier's death in the eastern Donetsk region and he had now been identified.

He said the authorities had also identified the Russian commanders potentially responsible for the beheading.

"This information is currently undergoing verification," he said.

"This fact serves as further evidence that complete disregard for international law and basic human morals is the state policy of the terrorist state of Russia. 

"Every world leader who shakes hands with Putin must realise that he is shaking hands with a person who tolerates barbaric murders."

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