Topic 1 · Foundation

Business Planning & Management

A clear business plan unlocks funding, guides decisions, and keeps your team aligned.

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Business Plan Financial Planning Legal Structure Growth Strategy

Writing a Nepal SME Business Plan

Banks, investors, and grant funders all ask for a business plan. Here's the Nepal-standard structure.

Required Sections

1
Executive Summary
1 page. Business name, product/service, target market, key financial projections. Write this last.
2
Company Description
Legal structure, ownership, location, history, mission. Include OCR/CSIO registration details.
3
Market Analysis
Who your customers are, market size, competition, trends. Use CBS/FNCCI data for Nepal context.
4
Marketing & Sales Plan
How you'll reach customers — social media, agents, trade fairs, distributors.
5
Financial Projections
3-year income statement, cash flow, break-even analysis, loan repayment schedule.

Free Templates

🏛️ FNCCI Business Plan Template — standard format accepted by most Nepal banks. Download at fncci.org.
🏛️ NRB-approved format — required for SME loan applications above NPR 1Cr. Request from your bank.
🌐 IFC Business Plan Template — internationally recognized. Good for export-focused SMEs.

Business Planning Support

FNCCI — Provincial chambers offer free business advisory.
SNV / ILO Nepal — free BDS in select provinces.
GIZ-GRAPE II — embedded in provincial offices. Contact your Province Hub.

Financial Planning Basics

Three Key Statements

Income Statement (P&L)
Revenue − Cost of Goods = Gross Profit − Expenses = Net Profit
Prepare monthly. Required for VAT returns and audits.
Cash Flow Statement
Cash In − Cash Out = Net Cash Position
Most SMEs fail from cash flow problems, not unprofitability. Track weekly.
Balance Sheet
Assets = Liabilities + Equity
Required for bank loans. Prepare annually with your auditor.

Break-Even Calculation

Break-Even Units/Month
Fixed Costs ÷ (Price − Variable Cost)
Example: Fixed NPR 50,000/mo · Price NPR 500 · Variable NPR 200
= 167 units/month to break even

Working Capital Tips

✅ Keep 2–3 months of fixed expenses in reserve
✅ Invoice immediately — don't wait until month-end
✅ Offer 2% discount for early payment (within 10 days)
✅ Negotiate 30–60 day credit terms with suppliers
✅ Use BFI overdraft for short-term cash gaps

Growth Strategy

4 Growth Pathways

📈 Market Penetration — sell more to existing customers. Loyalty programs, volume discounts. Lowest risk.
🗺️ Geographic Expansion — move from local to provincial to national using distributors or agents.
📦 Product Diversification — add related products. E.g., tea producer adds honey, herbs, organic spices.
🌏 Export Entry — start with India, then regional. TEPC can connect you with international buyers.

CDF Lifecycle Stages

🌱 Startup / Seed — Validate idea, register business, get first customers.
📈 Growth — Scale production, hire staff, access SME loans.
🏭 Expansion — New markets, certifications, brand building, technology upgrade.
🌏 Export — International markets, SPS compliance, buyer relationships.
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Use the SME Journey tool for a personalized checklist for your stage.