Writing a Business Plan in Luxembourg: Guide and Templates

Structure of a business plan

• Executive summary: 1-2 page overview of the project (problem, solution, market, team, financial needs)
• Company presentation: legal form, registered office, corporate purpose, history
• Market analysis: size of the Luxembourg/European market, target segments, competition
• Business model: revenue sources, pricing, variable and fixed costs
• Operational plan: premises, equipment, processes, suppliers, hiring
• Financial plan: 3-5 year P&L forecast, cash flow plan, break-even point, working capital requirement
• Appendices: CVs of directors, market studies, letters of intent, quotations

Luxembourg specifics

The business plan presented to Luxembourg banks and authorities must integrate Luxembourg-specific charges: employer CCSS contributions (~12.45%), high minimum wage (qualified SSM ~€3,085/month), cost of commercial real estate (€25-50/m²/month in Luxembourg City), domiciliation (€100-500/month) and tax charges (IRC + ICC ~24.94%). Luxembourg banks appreciate prudent projections with a break-even point reachable in 18-24 months and working capital covering 6 months of operations.

Mistakes to avoid

The most common mistakes in Luxembourg business plans include: underestimating salary costs (Luxembourg has the highest salaries in the EU), ignoring the timelines for obtaining the business permit (4-8 weeks), overestimating the local market (630,000 inhabitants) without integrating the cross-border dimension, and neglecting sector-specific regulatory obligations. A business plan drafted in French or English is accepted by Luxembourg banks and authorities.