In brief: A business plan in Morocco should include an executive summary, team presentation, market analysis, marketing strategy (the 4Ps), and a detailed financial plan covering 3 to 5 years. It is essential for securing bank financing and investor confidence.
With over 15 years of experience helping entrepreneurs structure their projects and secure financing, Upsilon Consulting’s chartered accountants provide authoritative guidance on business plan preparation.
First and foremost, writing a business plan is a necessary step before creating your company.
The business plan is an important document for organizing your project and obtaining external financing.
The business plan is therefore the tool that:
- presents the project’s philosophy,
- defines the strategy to bring the project to life and achieve its objectives,
- tests the financial assumptions.
Furthermore, the business plan must be built in a professional manner.
For example, it must take into consideration the various financial, operational, legal, and tax assumptions. Neglecting a component of the project can prove to be a thorn in the project’s side, ultimately leading to failure.
Most project holders do not know how to write a business plan. They have an idea they think is brilliant but have never tested it against the numbers.
It is a matter of being methodical and rigorous in building a solid business plan.
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How to Write a Business Plan?
To begin with, a professional business plan must contain the following elements:
First, an Introduction to the Business Plan
After understanding the purpose of a business plan, it is time to get started!
To write a business plan, the introduction must contain an executive summary of the project. This is a short, concise presentation that outlines the overall vision of the project. This introduction must answer the What questions.
What company? What activity? What project? What market? What competitors? What product and service?…
Writing this part of the business plan is an opportunity to refine the project “Pitch.” This is the part that will convince investors, bankers, and partners…
Then, Present the Team Behind the Project in the Business Plan
Every project needs a team that drives and defends it. For the project to be compelling, this team must be highlighted in the document.
This part of the business plan answers the Who question.
Who are the founders? What are their values? Why should they be trusted? What are their backgrounds? Their skills? Their educational qualifications?
If there are several project holders, the role of each person in the overall construction of the project should be specified.
Business Plan, Things Get Serious… What Market
Developing a business plan inevitably requires a market analysis.
Whether for a new and innovative offering or for a simple and conventional project, the founders must be able to answer the following questions:
What is the specificity of their offering compared to the market? Who are the main direct and indirect competitors?
Generally, the project will be justified by the existence of a gap in the current market.
Example:
There are many private schools, but not enough that offer online courses… My niche is to develop the “Online” segment. I think it will work better because more and more people are getting used to learning remotely.
Competitors represent an important part of the analysis. Is it coherent to present an offering that already exists at a price that cannot be beaten?
Who are the potential customers? Can they afford my service?
Before finalizing the answers, one must first analyze the available supply in the target market. The business plan must present an offering that is consistent with what exists and addresses the current market gaps.
With the development of communication tools, it has become even easier to collect feedback from potential customers, through online surveys for example.
Then, Present Your Marketing Strategy
Marketing specialists know it. A marketing strategy is a chain. The chain is only as strong as its weakest link.
A marketing strategy must address the different components of the marketing mix known as: the 4Ps.
First, P for Price:
The business plan must establish a list of products or services that the company plans to market. For each of these products, a pricing policy should be developed containing: selling price, commission rate, potential discounts, etc.
This grid will then facilitate the construction of the financial model.
Second, P for Product
The business plan must establish a list of products or services that the company plans to market. This is a catalog that presents for each product:
- Technical characteristics;
- Packaging where applicable, and offers;
- Differentiation from the competition.
Third, P for Place
The distribution strategy is a very important component to define. For example, one needs to know whether the company will have points of sale or wholesale distributors. Whether it will opt for online marketing.
Finally, P for Promotion
This involves knowing how to make the project known to potential customers (Facebook advertising, influencer marketing, YouTube spots, trade show participation, phone calls…).
Indeed, it is necessary to present this product promotion policy in the business plan. It is also necessary to set the projected promotion costs.
Business Plan - The Final Step, the Financial Plan
It is common for project holders to confuse the business plan with the financial plan. The financial plan, as we have seen, is only the final step.
Now that we understand how to write a business plan through the different steps, let us move on to the financial plan.
The financial plan allows, indeed, to determine and validate the business model. It is composed of several forecast tables.
These include, notably, the following elements:
- The projected revenue table: Based on the elements indicated in the commercial strategy, a sales forecast for the next 3 or 5 years is developed;
- The purchase cost table: To achieve the revenue, what raw materials, supplies, and goods need to be purchased and at what costs;
- The fixed cost table, which includes for example: salary costs, premises rent, water/electricity, telephone, promotional costs
- The tax model: based on the above assumptions, identify the potential tax implications and taxes to be paid (notably: VAT, Corporate Tax, Professional Tax, Personal Income Tax on salaries, CNSS, Housing Tax, Communal Services Tax, sector-specific taxes, etc.)
- The projected income statement, which is a table that summarizes the various assumptions and determines a projected result;
- The financing plan: based on investor contributions, determine in particular the amount of credit the company will need.
But also,
The business plan must finally undergo a stress test of its assumptions. This test consists of:
- Determining the key assumptions that could impact the project’s success (up to what level of sales does the project remain profitable);
- What is the minimum financing needed to get the project off the ground;
- …
The business plan at this stage allows you to determine:
- The total needs required to start the project;
- The resources already available (self-financing for example).
By difference, one determines the need for bank financing (or external capital). It is time to seek your financing.
In conclusion,
- The business plan is based on reliable commercial assumptions
- Do not neglect any financial or tax assumption
- The actual financing to be requested must maintain a margin relative to the project’s stress level.
Do you need to build your business plan? Contact Upsilon Consulting for professional support.
Frequently Asked Questions
What should a business plan include in Morocco?
A business plan in Morocco should include an executive summary, market analysis, commercial strategy, operational plan, financial projections (including income statement, balance sheet, and cash flow forecasts), and a financing plan. It should also address the legal structure, tax obligations, and any sector-specific regulatory requirements applicable in Morocco.
Is a business plan mandatory to create a company in Morocco?
A business plan is not legally required to register a company in Morocco. However, it is essential when seeking bank financing, applying for government support programs like Intilaka, or attracting investors. Banks and financial institutions in Morocco will not approve loan applications without a well-structured business plan.
How long should a business plan cover in Morocco?
A business plan in Morocco typically covers a period of three to five years, which is the standard horizon expected by banks and investors when evaluating financial projections. The first year should be detailed on a monthly basis, while subsequent years can be presented annually. This timeframe allows you to demonstrate the project’s viability, stress-test key assumptions, and accurately determine total financing needs as outlined in your operational and financial forecasts.
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