The quality of the business and financial plans is crucial to convince your future partners of the seriousness of the project, its profitability and viability. They are also necessary when you are going to submit a credit application to a lending institution.
For the establishment of a PLC (Public Limited Company), a LTD (Private Limited Company), or a SCOP (Cooperative Society), the submission of a business and financial plan is required by law while it is also recommended for sole proprietors.
The business plan is a document in which you detail your short- and long-term goals and your strategy for achieving those goals. The financial plan is the numerical part of the business plan.
You can call on accountants to help you with your plans as they can detect any weaknesses and give you advice. The different regions also provide free templates and useful resources to facilitate the creation of your business plan.
Resources to create a business plan (Brussels, Wallonia (FR), Flanders (NL))
Business plan
The business plan allows you to demonstrate the quality of your business opportunity, identify main risks, define the future strategy and vision, project growth and establish targets.
As a strategic tool for entrepreneurs, the business plan include a project description, a commercial offer, a market analysis, a commercial plan, the human resources, the long-term vision and the financial plan.
Financial plan
The financial plan, which contains the financial data about your company, is the part of the business plan that is required by law for corporations (NV, BV, CV). It can be used to assess your liability as a founder if your company is declared bankrupt within three years. If the initial assets are judged manifestly insufficient, you can be held personally liable.
The financial plan documents your business's short- and long-term financial goals and includes a strategy to achieve them. Try to make a realistic, feasible estimate, for a few years ahead. As a minimum, it should include:
- An overview of all sources of funding
- An opening balance sheet
- A projected income statement after 12 and 24 months
- A budget of projected revenues and expenses for a period of at least two years
- A description of the assumptions made in estimating projected revenues and profitability