CDP Grant Business Plan To Meet Your Requirements

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The CDP Grant aims to promote industrialisation, sustainable economic growth and job creation needs of South Africa through cluster development and industrial parks. Its objective is to enhance competitiveness of enterprises within a cluster or Industrial Parks. Assistance will also be prioritised for Industrial Parks in former homeland areas and/or townships. Grants of up to 80% are offered.

The first component, the shared infrastructure grant is towards investment in assets such as buildings, machinery, equipment, tools, jigs, dies and commercial vehicles. The grant is up to 80% of the qualifying investment to a maximum grant of R10 million per cluster.

The second component, Business Development Services, supports business development services initiatives of the cluster such as conformity assessments (standards accreditation), financial management, Information Technology services, logistics management, professional services, Human Resource Management, benchmarking exercises, market research, feasibility studies, etc. A grant of up to 80% of the investment is offered, to a maximum grant of R5 million per cluster.

The third component, Cluster Management Organisation Funding, is aimed at supporting strong dynamics amongst enterprises and other stakeholders in the cluster. The CMO purpose is to manage core operation and delivery by the cluster. A grant of up to 80% of the costs payable at the establishment of the CMO is offered, to a maximum grant of R5 million per Cluster.

Thinking of starting a new, expanding your current or buying an existing business and need a professional Business Plan developed?  A business plan is the most essential element of the early stage planning of your business. Most business strategists agree that planning is one of the most important parts of running a business. There’s the common known saying that “if you fail to plan, you plan to fail” and no matter whether it is a large multinational corporation trying to plan an expansion or a small business launching an exciting new product, the importance of a well-executed business plan is of the utmost importance. We’ve seen numerous clients whose businesses shortcomings could have very well been avoided. Our developments are used regularly to create a vision, secure funding, secure non-repayable business grants, attract team members and/or manage the Company

The essential elements for a well-structured CDP Grant Business Plan include:

  • Legal entity: Your executive summary should include copies of all registration documents, and the income tax and VAT certificates of the business entity.
  • Shareholders and management: Add detailed CV’s of all directors, members, and key personnel to motivate that management has the necessary experience to manage the operational, administrative, human resources, marketing and financial aspects of the business. A Broad-Based Black Economic Empowerment (BBBEE) rating and organogram must be added.
  • Capital expenditure: Include copies of recent quotations for land and buildings, equipment and soft assets (computers, etc).
  • Development: Provide a copy of the development plan, and cluster layout. Also include a detailed bill of the infrastructure required, with recent quotations for all material costs. Describe the key staff involved in the cluster development and a transfer of skills plan.
  • Staffing: This section defines the cost to company of all salaried, waged, part-time and contract employees, historical and going forward. Ensure that salaries and wages are preferably market-related and not below minimum wage guidelines for the industry. Outline your process for identifying and hiring new staff.
  • Marketing analysis: Projected turnover levels need to be based on secured contracts, letters of intent, and/or detailed market research. Include copies of these documents and/or write-ups of the research conducted. Draw up and implement a general and specific marketing strategy to detail how the business will attract market share and achieve projected turnover levels. Some of the areas that the market research should focus on include-
    • Competitors’ analysis;
    • Competitive edge of the business;
    • Demand versus supply;
    • Sustainability of the business;
    • Future developments (technological, new market entrants, alternate products, etc);
    • Contracts with clients;
    • Letters of intent from potential clients;
    • Other networks and potential relationships that might have been created; and
    • Strategic location of the business.
  • For acquisitions: Obtain the past three years’ historical financial statements and latest management accounts for the current year. The valuation will be based on the Discounted Cash Flow Method (valuing the operations of the business based on its income-generating potential, based on historical and projected future performance), and not necessarily the value of the assets.
  • Financial projections: Eight documents comprising of the management account, income statement, balance sheet, cash flow, cash forecast, break even analysis, loan amortization schedule and fixed asset schedule with all necessary ratios, graphs and calculations.
  • Appendix: Statutory information needed by funders in an application (contact us for the complete list).

At DTC we understand the complexities of the various requirements and the unique criteria for a customized and accurate business plan.  If using the document to raise funding and/or non-repayable business grants, we guide you forward through the process and provide you access to our vast network of venture capital companies, private equity companies, angel investors, banks, Government B-BBEE initiatives, Silicon Cape investment organisations, rent to own asset funding companies, crowd funds and more for you to seamlessly meet your objectives.

Contact us for more information & an affordable quotation for your CDP Grant Business Plan.