Writing your business plan

What is a business plan?

A business plan is a document in which you describe your short- and long-term goals, as well as your strategy for achieving them. This tool helps you think about what goods or services you will sell, who you will sell them to, how you will organise your business and how much it will cost. 

The quality of this document will significantly affect your ability to convince partners, investors or a bank of the profitability and viability of your future project.  

Business Plan vs Financial Plan

A business plan is a comprehensive document that includes strategy, market analysis, a sales plan, human resources and finances. A financial plan is the numerical section of your business plan; it is a separate appendix. A financial plan is required by law for limited liability companies (SRL), public limited companies (SA) and cooperatives (SC). 

What does a business plan include?

A comprehensive business plan consists of several elements. When presenting your business plan, tailor the amount of detail in your document to your situation and audience.  For a bank, for example, you focus more on the financial aspects, whereas for an investor, other criteria, such as your market analysis, are also important.

1. Summary: a brief description of your project, your objective and your funding needs. Write this text last, but put it at the beginning.
2. Vision and objectives: what is your mission and what are your values? What will contribute to your success? What are your short-term, medium-term and long-term goals? 
3. Product or service: what do you offer? What problem do you solve? What makes your offer unique?
4. Business objectives: who are your current customers? What are your sales goals? What is the timeframe? What are your growth plans? 
5. Market analysis: who are your customers? How big is the market? Who are your competitors and how do you stand out from them?
6. Marketing strategy: how do you reach your target audience? Through which channels and at what price?
7. Management and organisation: who initiated the project? What skills are available and which are still lacking?
8. Financial plan and financing arrangements: projections for turnover, costs, cash flow, opening balance sheet and projected income statement for at least two years.

Is it mandatory to write a business plan?

A business plan is not required, but it is strongly recommended that you write one. However, if you form an SRL, an SC or an SA, you must prepare a financial plan whose minimum content is specified by the Belgian Code of Companies and Associations. 

If your company goes bankrupt within three years of its formation, the judge may determine whether you had set aside sufficient capital at the time of its launch. If your financial plan proves insufficient, you, as a founder, may subsequently be held personally liable.

Do you need help in writing your business plan?

Every region has an organisation that offers free support, templates and training. Don't hesitate to seek help from professionals (accountants, tax advisors, etc.) in drafting these documents; they can identify any weaknesses in your business plan.

The services you can use depend on the location of your business.