The Business Plan Before Launch: What Your Project Needs to Be Ready for Financing

A good idea is not enough to launch a successful project, and it is not enough to obtain financing. What turns an idea into an executable project is a business plan: a document that answers market, operations and financing questions before you spend a single riyal. It is also the first thing financiers and investors ask for.

Why write the business plan before launch?

• It exposes the idea’s weak points before they become losses.
• It determines how much capital the project really needs to reach break-even.
• It gives you a common language with partners and financiers.
• It becomes the reference against which you measure performance after launch.

The core elements of a business plan

1. Executive summary

One page explaining what the project is, who it is for, why it will succeed, how much financing it needs, and when it will start making a profit. It is written last, but placed first.

2. Project description and business model

• The product or service, and the problem it solves.
• How revenue is generated: direct sales, subscription, commission or other.
• The appropriate legal form for the business.

3. Market study

• The size of demand and the target segment.
• Direct and indirect competitors, and what sets you apart.
• Expected pricing and its rationale.

4. Operating plan

• Location, equipment and suppliers.
• The regulatory requirements and licences your activity needs.
• The timeline from formation to commercial operation.

5. Team and management structure

Who will run the project, and what is their experience? Financiers care about the team as much as the idea. A good plan also sets out the hiring plan, including the employment of Saudi nationals.

6. Financial model

This is the heart of the plan for the financier:

• Formation costs (fixed capital).
• The working capital needed until the project covers its expenses from its revenue.
• Expected revenues and costs for three to five years.
• Monthly cash flows in the first year.
• The break-even point and payback period.
• Proposed sources of financing: the owners’ contribution, financier funding and others.

What do financiers look for in your plan?

• Realistic assumptions: Exaggerated growth rates weaken the entire plan.
• Owners’ contribution: Capital from the founders signals commitment and reduces risk.
• Viability: The Kafalah programme, for example, requires the activity to be economically and financially viable in the view of the programme and the financier.
• Repayment capacity: Cash projections showing how the instalments will be repaid.

For an official example of what a financier expects, the Saudi Industrial Development Fund (SIDF), in its feasibility study preparation guide, requires a project description, an organisational structure with a plan for employing Saudi nationals, a detailed implementation schedule, and market, technical and financial studies.

Common mistakes in business plans

• Relying on the “total market size” instead of a realistic, reachable share.
• Neglecting working capital — a common reason projects falter in their first year.
• Copying ready-made templates that do not reflect the nature of the local activity.
• Ignoring risks and not preparing a conservative scenario.

Business plan vs feasibility study: what’s the difference?

A feasibility study answers the question: “Is the project viable?” A business plan answers: “How will we execute it?” A new project usually needs both, especially when applying for financing.

How CBF can help

We work with you from the idea to a complete business plan and a realistic financial model, with a roadmap for formation and operation, so that your project is ready for both the market and financing.

Sources: Kafalah programme FAQ (kafalah.gov.sa); Saudi Industrial Development Fund — feasibility study preparation guide (sidf.gov.sa)

Once your financial model is ready, test its feasibility: Feasibility calculator→