How to write a business plan, with an example

A business plan isn't a document for a drawer. It's the cheapest way to test an idea before you spend money on rent, equipment and wages. And when you ask for a loan, a grant or a partner, it's the first thing you're asked for.

Who you're writing it for#

The content is the same, but the emphasis changes:

• For yourself: is the idea worth it and how much money do you need.
• For the bank: can you repay the loan, with what collateral and what happens if sales are lower.
• For donors: how many jobs you create, what impact the project has and whether it can continue after the grant.
• For a partner or investor: how much the business can grow and what they get.

The structure of a business plan#

1. Executive summary#

One page. What you do, for whom, why people will buy from you, how much money you need and for what. Write it last, when the other parts are done.

2. The business and its owners#

Name, legal form, location, owners and their experience. If the business exists, its registration date and NUI. Banks check this in ARBK or on Kerko, so the details must match.

3. Product or service#

What you sell, at what price and what makes it different. Avoid vague words like "high quality". Write something the customer notices: same-day delivery, a two-year warranty, open until midnight.

4. Market and customers#

Who your customers are, how many and where. For a local business, municipal figures are enough. For export, the target market. Use verifiable sources such as the Kosovo Agency of Statistics.

5. Competition#

Name your real competitors. On Kerko you can search them by activity and municipality to see how many there are and how long they have operated. A simple table of their prices, strengths and weaknesses is more convincing than any paragraph.

6. Marketing and sales#

How customers will find you: location, social media, Google, referrals, contracts with businesses. What each channel costs per month.

7. Operations and staff#

Premises, equipment, suppliers, opening hours and how many employees you need. Don't forget the full cost of an employee, not just net pay. See Payroll tax and pension contributions and Minimum wage.

8. Financial plan#

The part that gets read most carefully. It should include:

• initial investment: equipment, renovation, rent deposit, first stock, registration;
• fixed monthly costs: rent, wages, contributions, electricity, internet, accountant;
• a sales forecast for the first 12 months, month by month, and for 3 years;
• cash flow, because many profitable businesses close for lack of cash;
• funding sources: your savings, a loan, a grant, partners.

9. Risks#

What could go wrong and what you'd do then: sales 30% lower, a rent increase, losing a big client. Banks value a plan that acknowledges risk.

Break-even point, with an example#

A small café has fixed monthly costs of €4,000 (rent, wages, electricity, accountant). A coffee sells for €1.20 and its direct cost (coffee, milk, cup) is €0.30. The margin per unit is €0.90.

Break-even = €4,000 / €0.90 ≈ 4,445 coffees a month, or about 150 a day. If the premises can't sell that many, the idea needs to change before you sign the lease.

The most common mistakes#

• A sales forecast with no basis, at full level from month one.
• Leaving taxes, contributions and VAT out of costs.
• No reserve for the first 3 to 6 months.
• Competition described as "weak" without a single fact.

Once the plan is ready, the funding steps are in Business loans and Grants for businesses. If you're still looking for an idea, start with Business ideas in Kosovo.