By Mxolisi Mhlongo
With more than a million registered companies in South Africa many Afropolitans are venturing into business and most of them find themselves stuck in the early phases of registering a company or struggling to get finance. One of the difficult parts is putting together a business plan and most people struggle to differentiate between a business case and a business plan. As a result, many end up resorting to paying an individual to draft the plan/case which is wrong given that the government has put digital systems in place to assist and guide South Africans Visit: https://www.cipro.gov.za
In a nutshell, a business case is a mechanism through which the company generates its profit while the business plan is just a document presenting the company’s strategy and expected financial performance for the years to come.
It’s easy to use definitions that don’t have practical examples so we are going to go into detail on the differences using simplified words or terms for everyone to understand.
A business plan has three elements: A description of the business model, the marketing model, and financial projections. According to an article on Entrepreneur.com, a business plan is a document that outlines a detailed description of how a business is set up. It is a plan of a business showing the company structure, products, and services. Business plans can be drawn by a start-up businesses or companies that are already operating.
A business case is a business-related concept that is both practical and profitable. Your business case must score high in credibility, accuracy, and practical value. A Business Case is a tool to determine whether the project will be a good investment for the company or not. It is a cost-benefit analysis of a project and its results are used by the project managers to support proposals and arguments and also to justify planned activities and as a benchmark by which the project outcomes will be measured.
Both tools are crucial when starting a business and you might consider asking a family friend or relative for some advice when drafting one if you find the CIPRO process to be too complicated. Entrepreneur Magazine has some reliable templates on their website, which you can use as the foundation of your business plan. But do not solely rely on them. Kaya Bizz’s Gugulethu Mfuphi also holds key conversations on startups during her show every Monday to Thursday from 5 to 6 PM.