Different funders have different expectations for business plans. While the core structure is similar, SEDFA may accept a simpler plan than the IDC, and NYDA looks for youth-focused elements that other funders don't require. This guide compares business plan requirements across major South African funders.
Why Funders Need a Business Plan
A business plan serves multiple purposes for funders:
- Demonstrates viability: Shows you've thought through your business model
- Explains fund use: Details exactly how funding will be deployed
- Assesses capability: Reveals management competence and industry knowledge
- Enables monitoring: Provides benchmarks to track progress post-funding
Universal Business Plan Elements
Regardless of the funder, most business plans should include these sections:
- Executive Summary
1-2 page overview of the entire plan - written last but placed first
- Company Description
Legal structure, history, location, ownership, and core business
- Products/Services
What you sell, unique value proposition, pricing strategy
- Market Analysis
Industry overview, target market, market size, trends
- Competitive Analysis
Competitors, your differentiators, competitive advantages
- Marketing Strategy
How you'll reach customers, sales process, marketing channels
- Operations Plan
Location, equipment, suppliers, production process
- Management Team
Key personnel, experience, organisation structure
- Financial Plan
Projections, funding request, break-even analysis
- Appendices
Supporting documents, CVs, quotes, contracts
Requirements by Funder
SEDFA Business Plan Requirements
Key Requirements
- For loans under R500,000: Simplified plan acceptable
- For loans over R500,000: Comprehensive plan required
- 3-year financial projections (monthly Year 1)
- Clear use of funds breakdown
- Market research showing demand
SEDFA-Specific Elements
- Job creation estimates (SEDFA prioritises employment)
- B-BBEE ownership structure
- Township/rural focus (if applicable)
- SEDA support received (if any)
Support Available
SEDFA branches offer free business plan workshops and can review draft plans before submission.
IDC Business Plan Requirements
Key Requirements
- Detailed financial model (Excel-based, 5-year projections)
- Comprehensive market study with primary research
- Technical feasibility assessment
- Management capability evidence
- Environmental and social impact assessment
IDC-Specific Elements
- Industrial development contribution
- Export potential and import substitution
- Technology transfer and innovation
- Supply chain localisation
- Employment creation metrics (jobs per R1m invested)
Financial Model Requirements
IDC typically requires a separate Excel financial modelwith monthly projections, assumptions sheet, and sensitivity analysis.
NEF Business Plan Requirements
Key Requirements
- Comprehensive plan for any loan over R250,000
- 5-year projections with clear assumptions
- Detailed ownership structure analysis
- Management CVs and track record evidence
NEF-Specific Elements
- Black economic empowerment rationale
- Transformation impact (ownership, employment, supply chain)
- Exit strategy (especially for equity investments)
- Shareholder agreements and governance structures
- Rural development potential (iMbewu Fund)
Due Diligence Expectations
NEF conducts thorough due diligence. Your plan should anticipate and address likely questions about market, management, and financial viability.
NYDA Business Plan Requirements
Key Requirements
- Business plan required for grants over R50,000
- 3-year projections sufficient
- Simpler format acceptable for first-time entrepreneurs
NYDA-Specific Elements
- Youth ownership proof (IDs showing ages 18-35)
- Skills development plan for young owners
- Mentorship needs identification
- Innovation and technology use
- Social impact (youth employment creation)
Support Available
NYDA offers free business plan training through their branches. You can also access plan development via NYDA vouchers.
DTIC Business Plan Requirements
Key Requirements
- Requirements vary significantly by incentive programme
- Black Industrialist requires most comprehensive plan
- 5-year projections with detailed job creation
DTIC-Specific Elements
- Industrial policy alignment
- Sector masterplan contribution
- Value chain integration
- Export targets and import replacement
- Transformation commitments
- Skills development programmes
Application Format
DTIC applications are submitted through the Online Incentive System (OIS) which has specific fields and upload requirements.
Commercial Bank Requirements
Key Requirements
- Strong focus on financial viability and cash flow
- Collateral and security details
- Personal financial statements of owners
- Debt service coverage analysis
Bank-Specific Elements
- Clear loan repayment schedule
- Working capital cycle analysis
- Industry risk assessment
- Management credit history
Length and Format Guidelines
| Funder | Typical Length | Format | Attachments |
|---|---|---|---|
| SEDFA (small loans) | 10-15 pages | Word/PDF | Financials in Excel |
| SEDFA (large loans) | 20-30 pages | Word/PDF | Excel model required |
| IDC | 30-50 pages | Word/PDF + Excel | Detailed financial model |
| NEF | 25-40 pages | Word/PDF + Excel | Ownership proof, CVs |
| NYDA | 15-25 pages | Word/PDF | Training certificates |
| DTIC | 20-40 pages | OIS upload format | Per incentive requirements |
Common Business Plan Mistakes
- Generic templates: Copy-paste plans without customisation
- Unrealistic projections: Hockey-stick growth without justification
- Missing market evidence: No primary research or market data
- Weak management section: Not demonstrating team capability
- No competition analysis: Claiming "no competitors"
- Vague use of funds: Not specifying exactly what funding buys
- Ignoring funder priorities: Not addressing jobs, B-BBEE, etc.
Templates and Support Services
Free Resources
- SEDFA/SEDA business plan workshops (all provinces)
- NYDA business plan training courses
- GEP enterprise development programmes (Gauteng)
- Municipal LED unit support
Paid Services
- Business plan consultants (R5,000 - R50,000)
- Accounting firms with business advisory
- SEDFA vouchers can cover business plan preparation
Tips for Success
- Check specific requirements: Download the funder's template if available
- Address their priorities: Jobs for SEDFA, transformation for NEF, industrial impact for IDC
- Be specific: Use numbers, dates, and concrete details throughout
- Get feedback: Have someone review before submitting
- Update regularly: Funders may ask for revisions - keep your plan current
Next Steps
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