Business plan template

Business templates

Use this free editable Word document to plan a small business or start-up. It suits plans for a bank or funder, or for your own use. Prompts cover customers, operations, funding, risks and financial forecasts. Fill in bracketed fields, adapt the tables and attach records supporting your figures.

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What's in the template

Small business plan

Complete each bracketed prompt and replace examples with details that fit your business. Use rand for financial figures. Review the plan when your assumptions or business details change.

Business details

Business name	[Business name]
Trading name, if different	[Trading name or not applicable]
Business address	[Street, suburb, town and province]
Owner or contact person	[Full name]
Contact details	[Telephone and email]
Prepared for	[Bank, funder or own planning]
Plan prepared on	[Date]
Plan period	[Start date to end date]

Executive summary

Complete this section after the rest of the plan. Summarise the business, its customers, what it sells and how it will earn income.

Business at a glance	[Brief description of the business]
Customer need	[Need or problem your business will address]
Products or services	[Main products or services]
Business goals	[What you aim to achieve during the plan period]
Funding sought, if applicable	[Amount in rand and purpose, or not applicable]

Business and offer

Business structure	[Sole trader, partnership, company or other]
Business stage	[Idea, start-up or trading business]
What makes the offer useful	[Main benefit to customers]
Where and how customers will buy	[Shop, online, market, delivery or other channel]

Market and customers

Describe the people or organisations most likely to buy from you. Use what you have observed or confirmed through customer conversations.

Target customers	[Describe the customers you want to reach]
Customer location	[Area, town, province or online market]
Customer needs and buying habits	[What customers need and how they choose suppliers]
Evidence of demand	[Enquiries, orders, interviews or other evidence]

Competitor or alternative	What they offer	Their strengths	How this business will differ
[example: Neighbourhood bakery]	[example: Fresh bread and cakes]	[example: Known in the area]	[example: Custom celebration orders]
[Competitor or alternative]	[Products or services]	[Strengths]	[Your difference]

Marketing and sales

Main message	[What customers should understand about your offer]
Ways to reach customers	[Word of mouth, local groups, market stall or other channels]
Sales process	[How a customer enquires, orders and pays]
Pricing approach	[How you will set and review prices]
Customer service and repeat business	[How you will support customers and encourage repeat orders]

Operations

Explain how the business will deliver its products or services from day to day.

Operating location	[Where the work will happen]
Opening or service hours	[Days and hours]
Equipment and supplies	[What you need to operate]
Suppliers	[Supplier names or how you will choose them]
Production or service process	[Main steps from order to delivery]
Records and payments	[How you will record sales, costs and payments]

Ownership, people and administration

Name	Role	Relevant experience	Main responsibilities
[Owner or team member]	[Role]	[Experience or skills]	[Responsibilities]
[Team member or planned hire]	[Role]	[Experience or skills]	[Responsibilities]

Business registration or trading status	[Current status or action to check]
Tax administration	[Current status or action to check]
Municipal or site requirements	[Requirements to check for your location and activity]

Check current registration and tax rules with CIPC and SARS. Ask your municipality about requirements for your location and activity. Seek professional advice where needed.

Funding needs and use

Complete this section if you need funding. Match each request to a clear business cost and explain how the money will support trading.

Funding item	Estimated amount in rand	What it will pay for	When it is needed
[example: Baking equipment]	[example: R amount]	[example: Oven and mixing equipment]	[example: Before trading begins]
[Funding item]	[Amount in rand]	[Purpose]	[Timing]

Owner contribution	[Amount in rand or not applicable]
Funding requested	[Amount in rand or not applicable]
Repayment or funding arrangement	[Proposed arrangement or not applicable]

Financial plan

Use estimates you can explain. Add a column for each forecast period. Subtract cost of sales from sales to calculate gross profit. Subtract total operating expenses from gross profit to show profit before finance costs. Then subtract finance costs, such as loan interest, to calculate profit before tax. Record loan repayments as cash payments; the principal portion is not a profit-and-loss expense. For cash flow, add receipts to opening cash and subtract payments. Carry each closing cash balance into the next period's opening cash.

Profit-and-loss line	[Period]	[Period]	[Period]
Sales	[Rand amount]	[Rand amount]	[Rand amount]
Less: cost of sales	[Rand amount]	[Rand amount]	[Rand amount]
Gross profit	[Rand amount]	[Rand amount]	[Rand amount]
Rent and utilities	[Rand amount]	[Rand amount]	[Rand amount]
Wages and contract work	[Rand amount]	[Rand amount]	[Rand amount]
Transport and delivery	[Rand amount]	[Rand amount]	[Rand amount]
Marketing	[Rand amount]	[Rand amount]	[Rand amount]
Telephone and data	[Rand amount]	[Rand amount]	[Rand amount]
Insurance	[Rand amount]	[Rand amount]	[Rand amount]
Bank and payment charges	[Rand amount]	[Rand amount]	[Rand amount]
Repairs and maintenance	[Rand amount]	[Rand amount]	[Rand amount]
Other operating costs	[Rand amount]	[Rand amount]	[Rand amount]
Total operating expenses	[Rand amount]	[Rand amount]	[Rand amount]
Profit before finance costs	[Rand amount]	[Rand amount]	[Rand amount]
Finance costs, such as loan interest	[Rand amount]	[Rand amount]	[Rand amount]
Profit before tax	[Rand amount]	[Rand amount]	[Rand amount]

Cash-flow period	Opening cash in rand	Receipts in rand	Payments in rand	Closing cash in rand
[Period]	[Opening cash]	[Receipts]	[Payments, including loan repayments]	[Calculated closing cash]
[Next period]	[Previous period closing cash]	[Receipts]	[Payments, including loan repayments]	[Calculated closing cash]
[Following period]	[Previous period closing cash]	[Receipts]	[Payments, including loan repayments]	[Calculated closing cash]

Financial assumptions	[Explain your sales, cost and payment assumptions]
How figures will be reviewed	[Who will review them and how often]

Risks and responses

Risk or challenge	Possible effect	Planned response	Person responsible
[example: Supplier delay]	[example: Orders may be late]	[example: Keep an alternative supplier]	[example: Owner]
[Risk]	[Possible effect]	[Response]	[Person]

Action plan

Action	Person responsible	Target date	Progress or notes
[example: Confirm supplier prices]	[example: Owner]	[example: Date]	[example: Not started]
[Action]	[Person]	[Date]	[Progress]

Supporting documents

[Owner identity or contact documents, if requested]
[Supplier quotations or price lists]
[Market research or customer feedback]
[Business registration or tax records, where relevant]
[Financial records or forecasts]
[Other supporting document]

Confirmation

The people signing below confirm that they have reviewed the information in this plan. Update the plan if important assumptions or business details change.

Owner or founder: [Full name and signature]

Co-owner or partner: [Full name and signature, if applicable]

Prepared by: [Full name and signature]

Date: [Date]

How to fill it in

Complete the cover details Enter your business name, contact person and plan period. State whether the plan is for a bank, funder or your own use.
Describe your business Describe the offer and explain how customers will buy. Add target customers, their needs and evidence of demand.
Compare your market Compare local alternatives in the competitor table. Explain how your offer differs in a way customers can see.
Set out sales and operations Explain how customers find, order and pay for your offer. Describe your location, suppliers, equipment and daily process.
List people and checks Assign each person a role and responsibility. Note registration, tax and municipal matters you need to check.
Explain funding needs Match each funding item to a business cost. Record your contribution and proposed funding arrangement, if relevant.
Complete the financial forecasts Enter sales and cost of sales, then calculate gross profit. Deduct operating expenses and finance costs to reach profit before tax. Use the cash-flow table for receipts, payments and balances.
Review risks and sign Assign a response and action to a named person. Attach relevant records, check the figures and complete the confirmation section.

Tips before you send it

Separate cost of sales from running costs, then show the gross profit subtotal.
List loan interest under finance costs; keep loan repayments in the cash-flow table.
Use sales assumptions you can explain, such as observed enquiries or confirmed orders.
Carry each closing cash figure into the next opening balance; profit is not cash.
Match each funding request to a listed business cost and forecast period.

Questions & answers

Can I use this plan for a bank or funder?

Use it to explain your business, costs and funding needs. Ask whether the bank or funder requires extra records or a particular format.

What is the difference between profit and cash flow?

Profit compares sales with costs over a period. Cash flow records when money comes in and goes out, including opening and closing balances.

How should I estimate sales and costs?

Use information you can explain, such as customer enquiries, orders and supplier prices. State your assumptions beside the forecasts.

Do I need to complete every section?

Complete the sections that apply to your business and explain any that do not. A bank or funder may request more information.

Should I include registration and tax details?

Record the status and checks relevant to your business. Check current requirements with CIPC, SARS or your municipality.