Business plan in Morocco: what should a financial study include?
Assumptions, forecasts, financing plan, cash flow: what a bank or investor expects to find in your financial study.
A business plan has two parts: a written part (the project, the market, the strategy) and a financial study that turns all of this into figures. That second part is what a bank or investor examines first. It must answer three questions: is the project profitable, how much money does it need, and will it be able to repay?
1. Clear, justified assumptions
Every forecast rests on assumptions: selling prices, volumes, average basket, payment terms, salaries, rent… These are what your reader will challenge. A good assumption is sourced (quotes, market study, sector data, track record) and cautious.
2. The revenue forecast
This is the most sensitive assumption. Build it from concrete elements rather than an overall target:
- By product or service: unit price × quantities sold;
- By channel: shop, online sales, key accounts…;
- With a realistic ramp-up: a business rarely runs at full capacity from month one.
3. Costs and investments
Separate variable costs (which move with sales: purchases, commissions, transport) from fixed costs (rent, salaries, insurance, subscriptions). Then list the investments: fit-out, equipment, vehicles, software, deposits — and don't forget start-up costs.
4. The forecast income statement
Over 3 to 5 years, it shows whether the business makes a profit. It includes revenue, costs, depreciation, financial expenses and tax. It is also where you read the break-even point: the revenue level from which the business makes money.
5. The financing plan
It sets needs (investments, working capital requirement, loan repayments) against resources (partners' contributions, bank loans, support programmes, self-financing capacity). It must balance every year.
| Needs | MAD | Resources | MAD |
|---|---|---|---|
| Investments | 600,000 | Partners' contribution | 250,000 |
| Start-up working capital | 150,000 | Bank loan | 500,000 |
| Start-up costs | 50,000 | Other resources | 50,000 |
| Total | 800,000 | Total | 800,000 |
Illustrative example.
Forgetting the working capital requirement is the most common mistake: even a profitable business that must wait 60 or 90 days to be paid needs cash to hold on.
6. The cash-flow plan
Month by month over the first year, it shows actual receipts and payments. It reveals pressure points the income statement does not: a large investment early in the year, strong seasonality, customers who pay late.
7. Scenarios
Present at least a cautious scenario and a central one. Showing that the project remains viable if sales are 20% below forecast is far more convincing than a single, very optimistic scenario.
Mistakes that undermine a file
- Revenue that doubles every year with no explanation;
- Underestimated costs (owner's salary forgotten, social contributions missing);
- A financing plan without working capital;
- Figures that don't match across tables;
- No explanation of where the assumptions come from.
In summary
A solid financial study is a consistent whole: assumptions → income statement → financing plan → cash flow. Every figure must be explainable. That is what separates a file people leaf through from a file that gets funded.
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