3 tips for creating a business plan

How to Write a Business Plan: Step-by-Step Guide + Examples

Noah Parsons

24 min. read

Updated March 18, 2024

Writing a business plan doesn’t have to be complicated. 

In this step-by-step guide, you’ll learn how to write a business plan that’s detailed enough to impress bankers and potential investors, while giving you the tools to start, run, and grow a successful business.

• The basics of business planning

If you’re reading this guide, then you already know why you need a business plan . 

You understand that planning helps you: 

• Raise money
• Grow strategically
• Keep your business on the right track 

As you start to write your plan, it’s useful to zoom out and remember what a business plan is .

At its core, a business plan is an overview of the products and services you sell, and the customers that you sell to. It explains your business strategy: how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

Most business plans also include financial forecasts for the future. These set sales goals, budget for expenses, and predict profits and cash flow. 

A good business plan is much more than just a document that you write once and forget about. It’s also a guide that helps you outline and achieve your goals. 

After completing your plan, you can use it as a management tool to track your progress toward your goals. Updating and adjusting your forecasts and budgets as you go is one of the most important steps you can take to run a healthier, smarter business. 

We’ll dive into how to use your plan later in this article.

There are many different types of plans , but we’ll go over the most common type here, which includes everything you need for an investor-ready plan. However, if you’re just starting out and are looking for something simpler—I recommend starting with a one-page business plan . It’s faster and easier to create. 

It’s also the perfect place to start if you’re just figuring out your idea, or need a simple strategic plan to use inside your business.

Dig deeper : How to write a one-page business plan

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• What to include in your business plan

Executive summary

The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally just one to two pages. Most people write it last because it’s a summary of the complete business plan.

Ideally, the executive summary can act as a stand-alone document that covers the highlights of your detailed plan. 

In fact, it’s common for investors to ask only for the executive summary when evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation , or more in-depth financial forecasts .

Your executive summary should include:

• A summary of the problem you are solving
• A description of your product or service
• An overview of your target market
• A brief description of your team
• A summary of your financials
• Your funding requirements (if you are raising money)

Dig Deeper: How to write an effective executive summary

Products and services description

This is where you describe exactly what you’re selling, and how it solves a problem for your target market. The best way to organize this part of your plan is to start by describing the problem that exists for your customers. After that, you can describe how you plan to solve that problem with your product or service. 

This is usually called a problem and solution statement .

To truly showcase the value of your products and services, you need to craft a compelling narrative around your offerings. How will your product or service transform your customers’ lives or jobs? A strong narrative will draw in your readers.

This is also the part of the business plan to discuss any competitive advantages you may have, like specific intellectual property or patents that protect your product. If you have any initial sales, contracts, or other evidence that your product or service is likely to sell, include that information as well. It will show that your idea has traction , which can help convince readers that your plan has a high chance of success.

Market analysis

Your target market is a description of the type of people that you plan to sell to. You might even have multiple target markets, depending on your business. 

A market analysis is the part of your plan where you bring together all of the information you know about your target market. Basically, it’s a thorough description of who your customers are and why they need what you’re selling. You’ll also include information about the growth of your market and your industry .

Try to be as specific as possible when you describe your market. 

Include information such as age, income level, and location—these are what’s called “demographics.” If you can, also describe your market’s interests and habits as they relate to your business—these are “psychographics.” 

Related: Target market examples

Essentially, you want to include any knowledge you have about your customers that is relevant to how your product or service is right for them. With a solid target market, it will be easier to create a sales and marketing plan that will reach your customers. That’s because you know who they are, what they like to do, and the best ways to reach them.

Next, provide any additional information you have about your market. 

What is the size of your market ? Is the market growing or shrinking? Ideally, you’ll want to demonstrate that your market is growing over time, and also explain how your business is positioned to take advantage of any expected changes in your industry.

Dig Deeper: Learn how to write a market analysis

Competitive analysis

Part of defining your business opportunity is determining what your competitive advantage is. To do this effectively, you need to know as much about your competitors as your target customers. 

Every business has some form of competition. If you don’t think you have competitors, then explore what alternatives there are in the market for your product or service. 

For example: In the early years of cars, their main competition was horses. For social media, the early competition was reading books, watching TV, and talking on the phone.

A good competitive analysis fully lays out the competitive landscape and then explains how your business is different. Maybe your products are better made, or cheaper, or your customer service is superior. Maybe your competitive advantage is your location – a wide variety of factors can ultimately give you an advantage.

Dig Deeper: How to write a competitive analysis for your business plan

Marketing and sales plan

The marketing and sales plan covers how you will position your product or service in the market, the marketing channels and messaging you will use, and your sales tactics. 

The best place to start with a marketing plan is with a positioning statement . 

This explains how your business fits into the overall market, and how you will explain the advantages of your product or service to customers. You’ll use the information from your competitive analysis to help you with your positioning. 

For example: You might position your company as the premium, most expensive but the highest quality option in the market. Or your positioning might focus on being locally owned and that shoppers support the local economy by buying your products.

Once you understand your positioning, you’ll bring this together with the information about your target market to create your marketing strategy . 

This is how you plan to communicate your message to potential customers. Depending on who your customers are and how they purchase products like yours, you might use many different strategies, from social media advertising to creating a podcast. Your marketing plan is all about how your customers discover who you are and why they should consider your products and services. 

While your marketing plan is about reaching your customers—your sales plan will describe the actual sales process once a customer has decided that they’re interested in what you have to offer. 

If your business requires salespeople and a long sales process, describe that in this section. If your customers can “self-serve” and just make purchases quickly on your website, describe that process. 

A good sales plan picks up where your marketing plan leaves off. The marketing plan brings customers in the door and the sales plan is how you close the deal.

Together, these specific plans paint a picture of how you will connect with your target audience, and how you will turn them into paying customers.

Dig deeper: What to include in your sales and marketing plan

Business operations

The operations section describes the necessary requirements for your business to run smoothly. It’s where you talk about how your business works and what day-to-day operations look like. 

Depending on how your business is structured, your operations plan may include elements of the business like:

• Supply chain management
• Manufacturing processes
• Equipment and technology
• Distribution

Some businesses distribute their products and reach their customers through large retailers like Amazon.com, Walmart, Target, and grocery store chains. 

These businesses should review how this part of their business works. The plan should discuss the logistics and costs of getting products onto store shelves and any potential hurdles the business may have to overcome.

If your business is much simpler than this, that’s OK. This section of your business plan can be either extremely short or more detailed, depending on the type of business you are building.

For businesses selling services, such as physical therapy or online software, you can use this section to describe the technology you’ll leverage, what goes into your service, and who you will partner with to deliver your services.

Dig Deeper: Learn how to write the operations chapter of your plan

Key milestones and metrics

Although it’s not required to complete your business plan, mapping out key business milestones and the metrics can be incredibly useful for measuring your success.

Good milestones clearly lay out the parameters of the task and set expectations for their execution. You’ll want to include:

• A description of each task
• The proposed due date
• Who is responsible for each task

If you have a budget, you can include projected costs to hit each milestone. You don’t need extensive project planning in this section—just list key milestones you want to hit and when you plan to hit them. This is your overall business roadmap. 

Possible milestones might be:

• Website launch date
• Store or office opening date
• First significant sales
• Break even date
• Business licenses and approvals

You should also discuss the key numbers you will track to determine your success. Some common metrics worth tracking include:

• Conversion rates
• Customer acquisition costs
• Profit per customer
• Repeat purchases

It’s perfectly fine to start with just a few metrics and grow the number you are tracking over time. You also may find that some metrics simply aren’t relevant to your business and can narrow down what you’re tracking.

Dig Deeper: How to use milestones in your business plan

Organization and management team

Investors don’t just look for great ideas—they want to find great teams. Use this chapter to describe your current team and who you need to hire . You should also provide a quick overview of your location and history if you’re already up and running.

Briefly highlight the relevant experiences of each key team member in the company. It’s important to make the case for why yours is the right team to turn an idea into a reality. 

Do they have the right industry experience and background? Have members of the team had entrepreneurial successes before? 

If you still need to hire key team members, that’s OK. Just note those gaps in this section.

Your company overview should also include a summary of your company’s current business structure . The most common business structures include:

• Sole proprietor
• Partnership

Be sure to provide an overview of how the business is owned as well. Does each business partner own an equal portion of the business? How is ownership divided? 

Potential lenders and investors will want to know the structure of the business before they will consider a loan or investment.

Dig Deeper: How to write about your company structure and team

Financial plan

Last, but certainly not least, is your financial plan chapter. 

Entrepreneurs often find this section the most daunting. But, business financials for most startups are less complicated than you think, and a business degree is certainly not required to build a solid financial forecast. 

A typical financial forecast in a business plan includes the following:

• Sales forecast : An estimate of the sales expected over a given period. You’ll break down your forecast into the key revenue streams that you expect to have.
• Expense budget : Your planned spending such as personnel costs , marketing expenses, and taxes.
• Profit & Loss : Brings together your sales and expenses and helps you calculate planned profits.
• Cash Flow : Shows how cash moves into and out of your business. It can predict how much cash you’ll have on hand at any given point in the future.
• Balance Sheet : A list of the assets, liabilities, and equity in your company. In short, it provides an overview of the financial health of your business. 

A strong business plan will include a description of assumptions about the future, and potential risks that could impact the financial plan. Including those will be especially important if you’re writing a business plan to pursue a loan or other investment.

Dig Deeper: How to create financial forecasts and budgets

This is the place for additional data, charts, or other information that supports your plan.

Including an appendix can significantly enhance the credibility of your plan by showing readers that you’ve thoroughly considered the details of your business idea, and are backing your ideas up with solid data.

Just remember that the information in the appendix is meant to be supplementary. Your business plan should stand on its own, even if the reader skips this section.

Dig Deeper : What to include in your business plan appendix

Optional: Business plan cover page

Adding a business plan cover page can make your plan, and by extension your business, seem more professional in the eyes of potential investors, lenders, and partners. It serves as the introduction to your document and provides necessary contact information for stakeholders to reference.

Your cover page should be simple and include:

• Company logo
• Business name
• Value proposition (optional)
• Business plan title
• Completion and/or update date
• Address and contact information
• Confidentiality statement

Just remember, the cover page is optional. If you decide to include it, keep it very simple and only spend a short amount of time putting it together.

Dig Deeper: How to create a business plan cover page

How to use AI to help write your business plan

Generative AI tools such as ChatGPT can speed up the business plan writing process and help you think through concepts like market segmentation and competition. These tools are especially useful for taking ideas that you provide and converting them into polished text for your business plan.

The best way to use AI for your business plan is to leverage it as a collaborator , not a replacement for human creative thinking and ingenuity. 

AI can come up with lots of ideas and act as a brainstorming partner. It’s up to you to filter through those ideas and figure out which ones are realistic enough to resonate with your customers. 

There are pros and cons of using AI to help with your business plan . So, spend some time understanding how it can be most helpful before just outsourcing the job to AI.

Learn more: 10 AI prompts you need to write a business plan

• Writing tips and strategies

To help streamline the business plan writing process, here are a few tips and key questions to answer to make sure you get the most out of your plan and avoid common mistakes .  

Determine why you are writing a business plan

Knowing why you are writing a business plan will determine your approach to your planning project. 

For example: If you are writing a business plan for yourself, or just to use inside your own business , you can probably skip the section about your team and organizational structure. 

If you’re raising money, you’ll want to spend more time explaining why you’re looking to raise the funds and exactly how you will use them.

Regardless of how you intend to use your business plan , think about why you are writing and what you’re trying to get out of the process before you begin.

Keep things concise

Probably the most important tip is to keep your business plan short and simple. There are no prizes for long business plans . The longer your plan is, the less likely people are to read it. 

So focus on trimming things down to the essentials your readers need to know. Skip the extended, wordy descriptions and instead focus on creating a plan that is easy to read —using bullets and short sentences whenever possible.

Have someone review your business plan

Writing a business plan in a vacuum is never a good idea. Sometimes it’s helpful to zoom out and check if your plan makes sense to someone else. You also want to make sure that it’s easy to read and understand.

Don’t wait until your plan is “done” to get a second look. Start sharing your plan early, and find out from readers what questions your plan leaves unanswered. This early review cycle will help you spot shortcomings in your plan and address them quickly, rather than finding out about them right before you present your plan to a lender or investor.

If you need a more detailed review, you may want to explore hiring a professional plan writer to thoroughly examine it.

Use a free business plan template and business plan examples to get started

Knowing what information you need to cover in a business plan sometimes isn’t quite enough. If you’re struggling to get started or need additional guidance, it may be worth using a business plan template. 

If you’re looking for a free downloadable business plan template to get you started, download the template used by more than 1 million businesses. 

Or, if you just want to see what a completed business plan looks like, check out our library of over 550 free business plan examples . 

We even have a growing list of industry business planning guides with tips for what to focus on depending on your business type.

Common pitfalls and how to avoid them

It’s easy to make mistakes when you’re writing your business plan. Some entrepreneurs get sucked into the writing and research process, and don’t focus enough on actually getting their business started. 

Here are a few common mistakes and how to avoid them:

Not talking to your customers : This is one of the most common mistakes. It’s easy to assume that your product or service is something that people want. Before you invest too much in your business and too much in the planning process, make sure you talk to your prospective customers and have a good understanding of their needs.

• Overly optimistic sales and profit forecasts: By nature, entrepreneurs are optimistic about the future. But it’s good to temper that optimism a little when you’re planning, and make sure your forecasts are grounded in reality. 
• Spending too much time planning: Yes, planning is crucial. But you also need to get out and talk to customers, build prototypes of your product and figure out if there’s a market for your idea. Make sure to balance planning with building.
• Not revising the plan: Planning is useful, but nothing ever goes exactly as planned. As you learn more about what’s working and what’s not—revise your plan, your budgets, and your revenue forecast. Doing so will provide a more realistic picture of where your business is going, and what your financial needs will be moving forward.
• Not using the plan to manage your business: A good business plan is a management tool. Don’t just write it and put it on the shelf to collect dust – use it to track your progress and help you reach your goals.
• Presenting your business plan

The planning process forces you to think through every aspect of your business and answer questions that you may not have thought of. That’s the real benefit of writing a business plan – the knowledge you gain about your business that you may not have been able to discover otherwise.

With all of this knowledge, you’re well prepared to convert your business plan into a pitch presentation to present your ideas. 

A pitch presentation is a summary of your plan, just hitting the highlights and key points. It’s the best way to present your business plan to investors and team members.

Dig Deeper: Learn what key slides should be included in your pitch deck

Use your business plan to manage your business

One of the biggest benefits of planning is that it gives you a tool to manage your business better. With a revenue forecast, expense budget, and projected cash flow, you know your targets and where you are headed.

And yet, nothing ever goes exactly as planned – it’s the nature of business.

That’s where using your plan as a management tool comes in. The key to leveraging it for your business is to review it periodically and compare your forecasts and projections to your actual results.

Start by setting up a regular time to review the plan – a monthly review is a good starting point. During this review, answer questions like:

• Did you meet your sales goals?
• Is spending following your budget?
• Has anything gone differently than what you expected?

Now that you see whether you’re meeting your goals or are off track, you can make adjustments and set new targets. 

Maybe you’re exceeding your sales goals and should set new, more aggressive goals. In that case, maybe you should also explore more spending or hiring more employees. 

Or maybe expenses are rising faster than you projected. If that’s the case, you would need to look at where you can cut costs.

A plan, and a method for comparing your plan to your actual results , is the tool you need to steer your business toward success.

Learn More: How to run a regular plan review

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How to write a business plan FAQ

What is a business plan?

A document that describes your business , the products and services you sell, and the customers that you sell to. It explains your business strategy, how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

What are the benefits of a business plan?

A business plan helps you understand where you want to go with your business and what it will take to get there. It reduces your overall risk, helps you uncover your business’s potential, attracts investors, and identifies areas for growth.

Having a business plan ultimately makes you more confident as a business owner and more likely to succeed for a longer period of time.

What are the 7 steps of a business plan?

The seven steps to writing a business plan include:

• Write a brief executive summary
• Describe your products and services.
• Conduct market research and compile data into a cohesive market analysis.
• Describe your marketing and sales strategy.
• Outline your organizational structure and management team.
• Develop financial projections for sales, revenue, and cash flow.
• Add any additional documents to your appendix.

What are the 5 most common business plan mistakes?

There are plenty of mistakes that can be made when writing a business plan. However, these are the 5 most common that you should do your best to avoid:

• 1. Not taking the planning process seriously.
• Having unrealistic financial projections or incomplete financial information.
• Inconsistent information or simple mistakes.
• Failing to establish a sound business model.
• Not having a defined purpose for your business plan.

What questions should be answered in a business plan?

Writing a business plan is all about asking yourself questions about your business and being able to answer them through the planning process. You’ll likely be asking dozens and dozens of questions for each section of your plan.

However, these are the key questions you should ask and answer with your business plan:

• How will your business make money?
• Is there a need for your product or service?
• Who are your customers?
• How are you different from the competition?
• How will you reach your customers?
• How will you measure success?

How long should a business plan be?

The length of your business plan fully depends on what you intend to do with it. From the SBA and traditional lender point of view, a business plan needs to be whatever length necessary to fully explain your business. This means that you prove the viability of your business, show that you understand the market, and have a detailed strategy in place.

If you intend to use your business plan for internal management purposes, you don’t necessarily need a full 25-50 page business plan. Instead, you can start with a one-page plan to get all of the necessary information in place.

What are the different types of business plans?

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. Here are a few common business plan types worth considering.

Traditional business plan: The tried-and-true traditional business plan is a formal document meant to be used when applying for funding or pitching to investors. This type of business plan follows the outline above and can be anywhere from 10-50 pages depending on the amount of detail included, the complexity of your business, and what you include in your appendix.

Business model canvas: The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea.

One-page business plan: This format is a simplified version of the traditional plan that focuses on the core aspects of your business. You’ll typically stick with bullet points and single sentences. It’s most useful for those exploring ideas, needing to validate their business model, or who need an internal plan to help them run and manage their business.

Lean Plan: The Lean Plan is less of a specific document type and more of a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, test, review, refine, and take action based on performance. It’s faster, keeps your plan concise, and ensures that your plan is always up-to-date.

What’s the difference between a business plan and a strategic plan?

A business plan covers the “who” and “what” of your business. It explains what your business is doing right now and how it functions. The strategic plan explores long-term goals and explains “how” the business will get there. It encourages you to look more intently toward the future and how you will achieve your vision.

However, when approached correctly, your business plan can actually function as a strategic plan as well. If kept lean, you can define your business, outline strategic steps, and track ongoing operations all with a single plan.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

Table of Contents

• Use AI to help write your plan
• Common planning mistakes
• Manage with your business plan
• Templates and examples

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10 Game-Changing Tips for Crafting an Unbeatable Business Plan

Will your business idea succeed? Take our quiz - completely confidential and free!

Whether you’re starting your first business or a seasoned entrepreneur, a solid business plan is the foundation for success. It can help you anticipate essential issues and challenges before you start your business.

Studies show that entrepreneurs who take the time to write a business plan are 2.5 times more likely to follow through and get their business off the ground.

With over two decades of experience as an entrepreneur, I’ve crafted or assisted in developing business plans for countless startups and small businesses. From traditional 100-page plans to concise one-page strategies, my business plans have secured millions of dollars from investors. As a mentor, I’ve guided thousands of entrepreneurs in the U.S. and across the globe, helping them establish, manage, and expand their businesses.

Over the past three decades, I’ve tackled countless challenges in building successful businesses. In this guide, I share my experience, insights, and best practices for crafting traditional and one-page business plans.

What is a business plan, and why does it matter?

What is a business plan.

A business plan is a vital strategic tool that outlines a company's goals, strategies, and resources required to achieve those goals. It is essentially a blueprint for the future of the business, providing detailed plans in areas such as marketing, finance, operations, and management.

How can a business plan help you?

A well-crafted business plan provides clarity and direction for your team and helps attract potential investors by showcasing the viability and growth potential of the business. Furthermore, it helps identify potential risks and provides a roadmap for mitigating them.

A business plan can help you in the following ways:

• Clarity of vision. A well-crafted business plan serves as a roadmap, providing clear direction for the business. For instance, an organic skincare brand can use a business plan to detail how it will source ethically-produced ingredients and establish partnerships with eco-conscious retailers. A tech startup may use its business plan to illustrate the development pathway of its revolutionary app, from prototyping to market launch.
• Mitigating risks. Business plans can identify potential risks and provide strategies to reduce them. A restaurant, for instance, can outline risks such as food safety concerns or fluctuating food prices and propose risk management strategies. Meanwhile, a manufacturing company can use its business plan to address potential supply chain disruptions or machinery breakdowns and outline contingency plans.
• Attracting investors. Business plans can be invaluable tools for attracting investment. For example, a biotech firm might detail its innovative research and projected market share to attract investors. On the other hand, a sustainable fashion brand can highlight its unique business model and commitment to ethical practices to attract socially-responsible investors.
• Strategic planning. A business plan is essential for strategic planning. A digital marketing agency, for instance, can outline its strategies for acquiring new clients and retaining current ones. Similarly, a logistics company could use its business plan to strategize about optimizing routes and improving delivery efficiency.
• Performance monitoring. Business plans can be used as benchmarks to monitor the company’s performance. For example, a fitness studio might have membership growth and retention targets, which can be tracked against the business plan. A retail business could similarly set sales targets for each product line and compare actual sales to projections in the plan.

In this article, we will distill the key concepts from our comprehensive guide on how to write a business plan . However, we strongly recommend you read the complete guide to gain an in-depth understanding and effectively tailor a plan to your unique business needs.

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Ten business plan types

Although most people think there’s only one type of business plan, this isn’t accurate. Businesses have different needs, and some require specialized business plan types. Here are some common types:

Mini business plans. These are short, concise plans that provide a high-level overview of a business. For a consultancy firm, a mini-plan could quickly outline services, target clients, and revenue streams.

Working plans. These are more detailed and include operational information. A retail store might use a working plan to detail its inventory management, supply chain logistics, and day-to-day operations.

Presentation plans. These are formal business plans to be shown to outsiders like investors or banks. A tech startup seeking venture capital would likely prepare a presentation plan emphasizing market potential and growth strategy.

Growth plans. These plans are for businesses that intend to scale. An e-commerce platform planning to expand its market might use a growth plan to chart out customer acquisition strategies and operational scalability.

Feasibility plans. These plans are used to determine if a business idea is worth pursuing. A restaurant chain looking to introduce a new menu item could create a feasibility plan to analyze cost, demand, and potential return.

Operations plans. These focus on the logistics of running a business. A manufacturing company could use an operations plan to detail production processes, equipment maintenance, and quality control measures.

Strategic plans. These provide an overview of a company’s strategy and how it plans to achieve its goals. A digital marketing agency might use a strategic plan to set client acquisition and retention targets and outline strategies to meet those targets.

Internal plans. These are designed for internal use to track the implementation of a strategy or project. An events management company could use an internal plan to track progress on organizing a major conference, detailing tasks, responsibilities, and timelines.

Lean startup plans. These are high-level summaries of your business strategy, often used by startups. A software development company might use a lean startup plan to summarize its business model, target customer segments, and key performance indicators (KPIs).

Exit plans. These outline a business’s strategy for exiting the market, usually through a sale, merger, or IPO. A health tech startup could have an exit plan detailing potential paths, such as acquisition by a larger company or an IPO.

How to develop a business plan and the six sections every plan needs

A traditional business plan has six sections. You might need to add other sections depending on your business and industry. But be sure you include at least the six sections we list below:

1. Executive summary

The Executive Summary is the first section of your business plan, but you should write it last. It’s a concise overview of your plan, covering the critical points in a high-level snapshot.

For example, a food delivery service’s executive summary might highlight the unique selling proposition of delivering locally sourced, organic meals. A tech startup, on the other hand, might emphasize its innovative AI-powered product that disrupts current market practices.

2. The opportunity

This section describes the problem your business solves or the need it fulfills. It should detail your target market and explain why your solution is uniquely positioned to address the problem.

For instance, a biotech firm might discuss the opportunity to develop a new drug to treat a prevalent health condition. Meanwhile, a children’s educational toy company might highlight the need for entertaining and cognitively stimulating toys for children’s development.

3. Marketing and sales plan

You outline your strategies for reaching your target audience and driving sales here. This can include pricing, promotion, distribution, and sales strategies.

A retail clothing store, for example, might focus on social media marketing and host pop-up events in trendy neighborhoods. A B2B software company might emphasize inbound marketing through content creation and a direct sales model targeting specific industries. It’s also essential to deliberate on whether or not to put your prices on your website .

4. The management team and company

This section presents your team’s qualifications and your company’s organizational structure. Highlight the skills and experience that each team member brings.

A fintech startup can emphasize its founders’ expertise in tech and finance. On the other hand, a restaurant should spotlight its team’s culinary and hospitality expertise.

5. Financial plan

The Financial Plan provides detailed projections of your business’s revenue, expenses, and profitability. It also outlines your funding requirements and how you plan to use the funds.

An e-commerce startup should present sales forecasts based on website traffic and conversion rates. A real estate development company could outline projected property sales and rental revenue.

6. Appendix

The Appendix contains supporting documents or additional information not included in the main body of the plan. This could include product photos, legal documents, or detailed market research.

For a manufacturing company, you could include product specifications or patent documentation. A service-based business like a consulting firm could include case studies demonstrating past success so that you can quickly show prospective investors supporting documents reinforcing the likelihood your business will succeed.

With a clear understanding of the traditional components of a business plan, let’s look at the process of constructing your plan. Here are ten crucial principles to guide you in crafting a business plan that fulfills its intended purpose and is a valuable reference in future years.

10 Tips for Crafting an Unbeatable Business Plan

Tip 1: Keep it simple and focused Tip 2: Conduct thorough market research Tip 3: Set realistic financial projections Tip 4: Define your operational processes Tip 5: Create a strong marketing plan Tip 6: Address legal and regulatory considerations Tip 7: Develop a financial plan Tip 8: Establish a marketing strategy Tip 9: Plan for scalability and growth Tip 10: Include an exit strategy

Here are ten proven tips to help you write a great business plan:

Tip 1: Keep it simple and focused

People are busy. Few read 50-page business plans. Even fewer read 100-page business plans. Most will read only the high-level executive summary and flip through other sections of your business plan.

A business plan doesn’t have to be complicated. Keep it simple, clear, and focused on your goals. Use readable fonts and a clean layout.

Your plan is a roadmap to guide your business, so make sure it’s easy to understand and follow.

Remember, you’re not reinventing the wheel here. For example, you can get a free business plan template for a traditional business plan and a one-page business plan .

And remember that there’s no universal business plan format. Use examples to compare what you like and don’t like, look at each plan’s business and revenue models, and build a business plan following the best practices you find in the example plans you read.

Pay special attention to executive summaries.

The executive summary of a business plan is designed to capture the reader’s attention and briefly explain your business, the problem you are solving, the target market, and critical financial projections. You can also include a brief mission statement in the summary.

If the executive summary lacks specific information or does not capture the reader’s attention, the rest of the plan might not be read.

If your executive summary is strong, you increase the prospects of having a further conversation with a potential investor or partner to make your pitch in person. So,

• Write the executive summary after you have written the rest of the business plan. This will allow you to summarize the larger details quickly.
• Keep it short. Include the essential steps with as little extra language as possible. Your goal is to excite the reader to read all the specific details in your business plan.
• Organize the executive summary based on the most vital points.
• Don’t talk about your management team’s passion for hard work.  These qualities are the minimum shared by all entrepreneurs.
• Don’t say you will be the next Facebook, Uber , or Amazon. Amateurs make this comparison to try and show how valuable their company could be. Instead, in your mission statement and business plan copy, focus on providing facts proving you have a strong company. It’s better if the investor gives you this accolade because they see the opportunity.

Here are five examples of how to keep focus and clarity when writing your business plan:

Example 1: Retail Clothing Store. A retail clothing store’s business plan should focus on its target market, the types of products it will offer, and its strategies for attracting customers. The plan should outline store location, pricing strategy, and merchandising techniques. Additionally, it should address seasonality and inventory management to ensure a balanced product offering throughout the year.

Example 2: E-commerce Business Selling Handmade Crafts. An e-commerce business selling handmade crafts should outline its product offerings, target audience , and marketing strategies for driving online traffic and sales. The plan must address shipping and fulfillment logistics, customer service policies, and procedures for dealing with returns and exchanges. Also, it should cover how the company will scale production to meet increased demand.

Example 3: Mobile App Development Company. A mobile app development company’s business plan should focus on the types of apps it specializes in, its target clientele, and its approach to app development and project management. The plan should outline the company’s pricing model, strategies for attracting clients, and methods for staying up-to-date with industry trends and technological advancements.

Example 4: Event Planning Agency. An event planning agency should focus its business plan on the types of events it specializes in (e.g., wedding planning , corporate events, nonprofit events ), its target market, and its approach to event management. The plan should outline the agency’s marketing and networking strategies, as well as its vendor relationships and strategies for managing event logistics, budgets, and client expectations.

Example 5: Boutique Fitness Studio. A boutique fitness studio’s business plan should focus on its fitness niche (e.g., yoga, pilates), target market, and strategies for attracting and retaining clients. The plan should outline the studio’s class offerings, membership options, and pricing strategy. Additionally, it should address instructor recruitment and training, facility management, and strategies for maintaining a positive and engaging studio atmosphere.

Tip 2: Conduct thorough market research

Market research is vital for understanding your industry, target audience, and competition. Gather market size, trends, and consumer preferences data for business decisions.

Don’t mess around – research everything thoroughly.

If you are launching a new business and expect to be the market leader in 2 years, you must demonstrate why this is possible and how you’ll meet this goal.

If you say your product will be viral , you must support this statement with facts.

If you say your management team is experienced and qualified to help the business succeed, you have to support that claim with resumes that demonstrate the experience of your team members.

It’s easy to lose credibility – and investors – if you’re making claims you can’t fully support.

Need specific insights on how to write a great business plan?

Here are five examples of the type of research businesses in different industries must do when writing a business plan:

Example 1: New Restaurant . To identify market gaps and opportunities, a new restaurant should research the local food scene, competitors, and customer preferences. The plan should include an analysis of the area’s demographics, popular cuisine types, and existing restaurants’ strengths and weaknesses. This research will inform menu development, pricing strategy, and overall restaurant concept .

Example 2: Online Tutoring Service. An online tutoring service should analyze the market for similar services, the demand for tutors in various subjects, and the target demographic’s preferences for online learning. The plan should address strategies for attracting tutors, developing a user-friendly platform, and marketing to students and parents. Additionally, it should consider differentiating itself from competitors by offering specialized subject matter expertise or personalized learning plans.

Example 3: Green Cleaning Service. A green cleaning service should research the demand for eco-friendly options, local competitors, and potential customers’ preferences and concerns. The plan should outline the company’s environmental policies, its selection of non-toxic cleaning products, and strategies for marketing its eco-friendly services. Additionally, it should consider potential partnerships with environmentally conscious organizations or businesses.

Example 4: Coworking Space. A coworking space should research the demand for shared office spaces in its target area, the existing supply, and potential customer’s preferences and needs. The plan should address the coworking space’s design, amenities, membership plans, and pricing strategy. It should also outline strategies for attracting and retaining members and potential partnerships with local businesses or networking events to foster a sense of community.

Example 5: Subscription Box Service. A subscription box service should research the market for similar offerings, target customer preferences, and trends in the subscription box industry. The plan should outline the service’s product curation process, packaging design, pricing strategy, and shipping logistics. It should also address marketing strategies to attract and retain subscribers and potential partnerships with influencers or niche communities to grow its customer base.

Tip 3: Set realistic financial projections

Accurate financial projections are crucial for securing funding and managing your business’s growth. Be realistic about your revenue, expenses, and growth potential, and be prepared to adjust your projections as your business evolves.

Here are five examples of the types of financial projections businesses in different industries must make in their business plan:

Example 1: Food Truck Business. A food truck business should create financial projections that account for the initial investment in the truck, equipment, and inventory. The plan should also factor in ongoing expenses such as fuel, permits, insurance, and staffing. Revenue projections should consider the truck’s daily sales, seasonality, and potential catering opportunities.

Example 2: Digital Marketing Agency. A digital marketing agency should create financial projections considering client acquisition costs, retainer fees, and potential project-based revenue. The plan should factor overhead costs such as office space, equipment, and staffing. Projections should also account for the time needed to establish a client base and the potential for fluctuating income based on client retention and project completion.

Example 3: Independent Bookstore. An independent bookstore should create financial projections considering the initial investment in inventory, store fixtures, and leasehold improvements. The plan should also consider ongoing expenses such as rent, utilities, and staffing. Revenue projections should consider the store’s sales, the potential for hosting events, and additional income streams like in-store cafes or merchandise sales.

Example 4: Home-Based Catering Business. A home-based catering business should create financial projections considering the initial kitchen equipment and inventory investment. The plan should also factor in ongoing expenses such as food costs, permits, insurance, and marketing. Revenue projections should consider the number and size of catering events, potential corporate clients, and seasonal demand.

Example 5: Mobile App Startup. A mobile app startup should create financial projections for the initial investment in app development, marketing, and user acquisition. The plan should also factor in ongoing expenses such as app maintenance, updates, and staffing. Revenue projections should consider potential income streams like in-app purchases, advertising, and subscription fees.

Tip 4: Define your operational processes

Clearly outline your business’s operational processes to ensure efficiency and consistency.

Detail how you will manage production, inventory, staffing, and distribution to provide a seamless experience to customers .

Here are five examples of the operational processes businesses in different industries must define in their business plan:

Example 1: Bakery. A bakery should detail its production schedule, inventory management, staff roles, and distribution channels to ensure consistent product availability and quality. The plan should also address strategies for managing seasonal demand, such as offering holiday-themed products or adjusting staffing levels.

Example 2: Software Development Company. A software development company must define its project management processes, team structure, and communication channels to keep projects on track and meet client expectations. The plan should also address strategies for acquiring new clients, such as networking events, online marketing, and strategic partnerships.

Example 3: Real Estate Agency. A real estate agency should outline its processes for listing properties, managing client relationships, and closing transactions. The plan should also address strategies for attracting new clients, such as hosting open houses, utilizing digital marketing, and participating in local community events.

Example 4: Pet Grooming Business. A pet grooming business should detail its grooming process, appointment scheduling, and inventory management to ensure a smooth and efficient customer experience. The plan should also address strategies for attracting new clients, such as offering loyalty programs, partnering with local pet stores or veterinarians, and utilizing social media marketing.

Example 5: Online Coaching Business. An online coaching business should outline its processes for onboarding new clients, delivering coaching sessions, and tracking clients’ progress. The plan should also address strategies for attracting new clients, such as offering free discovery calls, leveraging social media marketing , and creating valuable content like blog posts or webinars.

Tip 5: Create a strong marketing plan

A well-defined marketing plan is crucial for attracting and retaining customers.

Develop a plan that outlines your target audience, competitors, marketing channels, and strategies for promoting your products or services.

Some business owners avoid talking about potential competitors.

This is a mistake.

Unless you’re creating a new industry, you will have competitors. And you’ll need to figure out how to beat or compete with them.

You must do market research to understand your competitors and the industry. A good business plan that carefully lays out this information in a detailed target market analysis appears more credible and will better prepare you for success with your new business.

And potential investors and banks tend to trust business owners more when they see a detailed target market analysis in a business plan and a strategy for finding potential customers. They are more comfortable seeing this level of detail because they will see that the business owner is better prepared to launch their business and make money over the long term.

There are multiple methods for conveying this data, referred to as TAM, SAM, and SOM .

TAM is the Total Addressable Market. This would show investors the yearly revenue opportunity or units sold for your product or service if you achieved 100% of the available market. It’s a quick way to address the potential size of your operating space.

SAM is the Serviceable Addressable Market. You intend to serve this subset of TAM (Total Addressable Market) with your service or product.

SOM is the Serviceable Obtainable Market. This is the subset of SAM (Serviceable Addressable Market) that is realistic to achieve. If you can get your business to meet this goal, you will have succeeded.

Invest some time and effort and do it correctly. A business can’t succeed if the owners don’t understand their industry, target customers, or the competition.

Here are five examples of the ways to focus the marketing plan of your business plan:

Example 1: Specialty Coffee Shop. A specialty coffee shop should develop a marketing plan that targets coffee enthusiasts, local professionals, and students. The plan should leverage social media, local print media, and in-store promotions to showcase its unique offerings, such as artisanal coffee, specialty drinks, and a cozy atmosphere.

Example 2: Graphic Design Studio. A graphic design studio should create a marketing plan that targets local businesses, entrepreneurs, and organizations. The plan should utilize online marketing (e.g., social media, email marketing), networking events, and local partnerships to showcase the studio’s design expertise in creating unique company logos and website design , and attracting new clients.

Example 3: Organic Skin Care Brand. An organic skincare brand should develop a marketing plan that targets eco-conscious consumers and those interested in natural beauty products . The plan should leverage influencer marketing, content marketing, and online advertising to promote the brand’s unique selling points , such as sustainable packaging and ethically sourced ingredients.

Example 4: Fitness Center. A fitness center should create a marketing plan that targets local residents interested in improving their health and wellness. The plan should utilize traditional advertising (e.g., billboards and local radio ads) and digital marketing (e.g., social media and email campaigns ) to promote its membership options, class offerings, and state-of-the-art facilities.

Example 5: Virtual Reality Arcade. A virtual reality arcade should develop a marketing plan that targets gamers, tech enthusiasts, and families looking for unique entertainment options. The plan should utilize online advertising, social media, and local partnerships to showcase the arcade’s cutting-edge technology and immersive gaming experiences.

Tip 6: Address legal and regulatory considerations

Outline any legal and regulatory requirements relevant to your industry, the type of business structure you’ve selected, and how your business will meet these requirements.

Here are five examples of the legal and regulatory requirements businesses in different industries should address in a business plan:

Example 1: Food Truck Business. A food truck business must comply with local health department regulations, obtain necessary permits, and adhere to zoning requirements. The business plan should outline the steps required to obtain the necessary permits and the strategy for ensuring ongoing compliance with health and safety regulations.

Example 2: E-commerce Store. An e-commerce store must navigate various legal considerations, including privacy policies, data protection regulations, and sales tax collection. The business plan should outline how the store will comply with these requirements and any additional industry-specific rules that may apply.

Example 3: Home Health Care Agency. A home health care agency must adhere to strict licensing and accreditation requirements and HIPAA regulations for protecting patient information. The business plan should detail the steps required to obtain proper licensing, maintain accreditation, and ensure ongoing compliance with healthcare regulations.

Example 4: Real Estate Agency. A real estate agency must comply with state licensing requirements, adhere to fair housing laws, and maintain proper records. The business plan should outline how the agency will obtain the necessary licenses, ensure compliance with fair housing laws, and establish record-keeping procedures.

Example 5: Craft Brewery. A craft brewery must navigate a complex landscape of federal, state, and local regulations related to alcohol production, distribution, and sales. The business plan should detail how the brewery will obtain the required permits, maintain compliance with alcohol regulations, and establish relationships with distributors and retailers.

Tip 7: Develop a financial plan

A comprehensive financial plan is essential for any business. Include a detailed financial forecast outlining your revenue projections, expenses, and cash flow analysis.

Here are five examples of what a financial plan for businesses in different industries should address in a business plan:

Example 1: Subscription Box Service. A subscription box service should include a financial plan detailing the costs of sourcing products, packaging, shipping, and marketing. The plan should also outline revenue projections based on the number of subscribers, average customer lifetime value, and potential upsell opportunities.

Example 2: Clothing Boutique. A clothing boutique should develop a financial plan for inventory costs, rent, utilities, marketing expenses, and employee wages. The plan should also include revenue projections based on foot traffic, average transaction value, and seasonal trends.

Example 3: Mobile App Development Company. A mobile app development company should create a financial plan that outlines the costs of software development , marketing, and ongoing maintenance. The plan should also include revenue projections based on app sales, in-app purchases, and potential partnerships or licensing deals.

Example 4: Coworking Space. A coworking space should develop a financial plan for lease costs, utilities, insurance, marketing expenses, and staff wages. The plan should also include revenue projections based on the number of members, membership pricing tiers, and ancillary services like event rentals or meeting room bookings.

Example 5: Catering Business. A catering business should create a financial plan outlining food, equipment, transportation, and marketing costs. The plan should also include revenue projections based on the number of events, average event size, and pricing structure.

Tip 8: Establish a marketing strategy

Develop a comprehensive marketing strategy outlining how to reach your target audience, build brand awareness, and drive sales.

Here are five examples of what should be included in the marketing strategy for businesses in different industries:

Example 1: Fitness Studio. A fitness studio should develop a marketing strategy that includes social media campaigns, influencer partnerships , and local community outreach. The plan should also outline promotional offers, such as introductory pricing or referral incentives, to attract new members and retain existing ones.

Example 2: Organic Grocery Store. An organic grocery store should create a marketing strategy that emphasizes the store’s commitment to sustainability , local sourcing, and high-quality products. The plan should include strategies for reaching eco-conscious consumers, such as targeted social media ads, partnerships with local farmers, and participation in community events.

Example 3: Software-as-a-Service (SaaS) Company. A SaaS company should develop a marketing strategy focusing on content marketing, SEO , and targeted advertising to reach potential customers. The plan should also include strategies for customer retention, such as email marketing campaigns and personalized onboarding experiences .

Example 4: Restaurant. A restaurant should create a marketing strategy that includes a mix of online and offline tactics, such as social media promotions, local print advertising, and hosting special events. The plan should also outline strategies for generating positive reviews and word-of-mouth referrals.

Example 5: Digital Marketing Agency. A digital marketing agency should develop a marketing strategy that showcases its expertise and success stories through case studies, blog posts, and webinars. The plan should include targeted advertising campaigns and networking events to attract new clients and build industry relationships.

Tip 9: Plan for scalability and growth

Consider how your business can scale and grow over time, and outline strategies for managing this growth in your business plan.

Here are five examples of how businesses in different industries should address scalability and growth in their business plan:

Example 1: Online Tutoring Platform. An online tutoring platform should outline plans to expand its tutor network, improve its technology, and enter new markets. The plan should also consider potential partnerships with schools or educational institutions to drive growth.

Example 2: Bakery. A bakery should include plans for scaling its operations, such as opening additional locations, expanding its product line, or offering catering services. The plan should also outline strategies for managing increased production and staffing needs as the business grows.

Example 3: Graphic Design Agency. A graphic design agency should outline plans for scaling its services, such as hiring additional designers, expanding into new service areas, or partnering with complementary businesses. The plan should also include strategies for managing increased project volume and maintaining quality standards.

Example 4: Solar Panel Installation Company. A solar panel installation company should plan for growth by outlining strategies for entering new markets, expanding its service offerings, or forming partnerships with complementary businesses. The plan should also consider the potential impact of regulatory changes or technological advancements on the industry.

Example 5: Event Planning Company. An event planning company should outline growth plans, such as expanding its service offerings, targeting new market segments, or forming partnerships with complementary businesses. The plan should also include strategies for managing increased demand and maintaining high levels of customer satisfaction.

Tip 10: Include an exit strategy

Outline potential exit strategies for your business, such as a merger, acquisition, or initial public offering (IPO). This will help you plan for the future and demonstrate to investors that you have a long-term vision for your business.

Here are five examples of how businesses in different industries can summarize their exit strategy in a business plan:

Example 1: Mobile Game Development Studio. A mobile game development studio might plan for an exit strategy that includes being acquired by a larger gaming company, merging with another studio, or pursuing an IPO if the company achieves significant success.

Example 2: Healthtech Startup. A health tech startup could consider exit strategies such as being acquired by a larger healthcare or technology company, merging with a complementary business, or pursuing an IPO if the company experiences rapid growth and widespread adoption of its products or services.

Example 3: E-commerce Platform. An e-commerce platform might plan for exit strategies such as being acquired by a larger retailer, merging with a complementary business, or pursuing an IPO if the platform achieves significant market share and revenue growth.

Example 4: Boutique Marketing Agency. A boutique marketing agency could consider exit strategies like being acquired by a larger agency, merging with a complementary business to expand its service offerings, or pursuing a management buyout if the founders wish to retire or move on to other ventures.

Example 5: Green Energy Company. A green energy company might plan for exit strategies such as being acquired by a larger energy company, merging with a complementary business in the renewable energy space, or pursuing an IPO if the company achieves significant market share and technological advancements.

When crafting a comprehensive business plan, remember to focus on your target audience, clearly define your business model, conduct thorough market research, establish a strong organizational structure, create realistic financial projections, set strategic goals, develop a marketing strategy, plan for scalability and growth, and include an exit strategy.

But remember that most people don’t invest in a business plan.

Most people invest in a person.

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How to make a business plan

Table of Contents

How to make a good business plan: step-by-step guide.

A business plan is a strategic roadmap used to navigate the challenging journey of entrepreneurship. It's the foundation upon which you build a successful business.

A well-crafted business plan can help you define your vision, clarify your goals, and identify potential problems before they arise.

But where do you start? How do you create a business plan that sets you up for success?

This article will explore the step-by-step process of creating a comprehensive business plan.

What is a business plan?

A business plan is a formal document that outlines a business's objectives, strategies, and operational procedures. It typically includes the following information about a company:

Products or services

Target market

Competitors

Marketing and sales strategies

Financial plan

Management team

A business plan serves as a roadmap for a company's success and provides a blueprint for its growth and development. It helps entrepreneurs and business owners organize their ideas, evaluate the feasibility, and identify potential challenges and opportunities.

As well as serving as a guide for business owners, a business plan can attract investors and secure funding. It demonstrates the company's understanding of the market, its ability to generate revenue and profits, and its strategy for managing risks and achieving success.

Business plan vs. business model canvas

A business plan may seem similar to a business model canvas, but each document serves a different purpose.

A business model canvas is a high-level overview that helps entrepreneurs and business owners quickly test and iterate their ideas. It is often a one-page document that briefly outlines the following:

Key partnerships

Key activities

Key propositions

Customer relationships

Customer segments

Key resources

Cost structure

Revenue streams

On the other hand, a Business Plan Template provides a more in-depth analysis of a company's strategy and operations. It is typically a lengthy document and requires significant time and effort to develop.

A business model shouldn’t replace a business plan, and vice versa. Business owners should lay the foundations and visually capture the most important information with a Business Model Canvas Template . Because this is a fast and efficient way to communicate a business idea, a business model canvas is a good starting point before developing a more comprehensive business plan.

A business plan can aim to secure funding from investors or lenders, while a business model canvas communicates a business idea to potential customers or partners.

Why is a business plan important?

A business plan is crucial for any entrepreneur or business owner wanting to increase their chances of success.

Here are some of the many benefits of having a thorough business plan.

Helps to define the business goals and objectives

A business plan encourages you to think critically about your goals and objectives. Doing so lets you clearly understand what you want to achieve and how you plan to get there.

A well-defined set of goals, objectives, and key results also provides a sense of direction and purpose, which helps keep business owners focused and motivated.

Guides decision-making

A business plan requires you to consider different scenarios and potential problems that may arise in your business. This awareness allows you to devise strategies to deal with these issues and avoid pitfalls.

With a clear plan, entrepreneurs can make informed decisions aligning with their overall business goals and objectives. This helps reduce the risk of making costly mistakes and ensures they make decisions with long-term success in mind.

Attracts investors and secures funding

Investors and lenders often require a business plan before considering investing in your business. A document that outlines the company's goals, objectives, and financial forecasts can help instill confidence in potential investors and lenders.

A well-written business plan demonstrates that you have thoroughly thought through your business idea and have a solid plan for success.

Identifies potential challenges and risks

A business plan requires entrepreneurs to consider potential challenges and risks that could impact their business. For example:

Is there enough demand for my product or service?

Will I have enough capital to start my business?

Is the market oversaturated with too many competitors?

What will happen if my marketing strategy is ineffective?

By identifying these potential challenges, entrepreneurs can develop strategies to mitigate risks and overcome challenges. This can reduce the likelihood of costly mistakes and ensure the business is well-positioned to take on any challenges.

Provides a basis for measuring success

A business plan serves as a framework for measuring success by providing clear goals and financial projections . Entrepreneurs can regularly refer to the original business plan as a benchmark to measure progress. By comparing the current business position to initial forecasts, business owners can answer questions such as:

Are we where we want to be at this point?

Did we achieve our goals?

If not, why not, and what do we need to do?

After assessing whether the business is meeting its objectives or falling short, business owners can adjust their strategies as needed.

How to make a business plan step by step

The steps below will guide you through the process of creating a business plan and what key components you need to include.

1. Create an executive summary

Start with a brief overview of your entire plan. The executive summary should cover your business plan's main points and key takeaways.

Keep your executive summary concise and clear with the Executive Summary Template . The simple design helps readers understand the crux of your business plan without reading the entire document.

2. Write your company description

Provide a detailed explanation of your company. Include information on what your company does, the mission statement, and your vision for the future.

Provide additional background information on the history of your company, the founders, and any notable achievements or milestones.

3. Conduct a market analysis

Conduct an in-depth analysis of your industry, competitors, and target market. This is best done with a SWOT analysis to identify your strengths, weaknesses, opportunities, and threats. Next, identify your target market's needs, demographics, and behaviors.

Use the Competitive Analysis Template to brainstorm answers to simple questions like:

What does the current market look like?

Who are your competitors?

What are they offering?

What will give you a competitive advantage?

Who is your target market?

What are they looking for and why?

How will your product or service satisfy a need?

These questions should give you valuable insights into the current market and where your business stands.

4. Describe your products and services

Provide detailed information about your products and services. This includes pricing information, product features, and any unique selling points.

Use the Product/Market Fit Template to explain how your products meet the needs of your target market. Describe what sets them apart from the competition.

5. Design a marketing and sales strategy

Outline how you plan to promote and sell your products. Your marketing strategy and sales strategy should include information about your:

Pricing strategy

Advertising and promotional tactics

Sales channels

The Go to Market Strategy Template is a great way to visually map how you plan to launch your product or service in a new or existing market.

6. Determine budget and financial projections

Document detailed information on your business’ finances. Describe the current financial position of the company and how you expect the finances to play out.

Some details to include in this section are:

Startup costs

Revenue projections

Profit and loss statement

Funding you have received or plan to receive

Strategy for raising funds

7. Set the organization and management structure

Define how your company is structured and who will be responsible for each aspect of the business. Use the Business Organizational Chart Template to visually map the company’s teams, roles, and hierarchy.

As well as the organization and management structure, discuss the legal structure of your business. Clarify whether your business is a corporation, partnership, sole proprietorship, or LLC.

8. Make an action plan

At this point in your business plan, you’ve described what you’re aiming for. But how are you going to get there? The Action Plan Template describes the following steps to move your business plan forward. Outline the next steps you plan to take to bring your business plan to fruition.

Types of business plans

Several types of business plans cater to different purposes and stages of a company's lifecycle. Here are some of the most common types of business plans.

Startup business plan

A startup business plan is typically an entrepreneur's first business plan. This document helps entrepreneurs articulate their business idea when starting a new business.

Not sure how to make a business plan for a startup? It’s pretty similar to a regular business plan, except the primary purpose of a startup business plan is to convince investors to provide funding for the business. A startup business plan also outlines the potential target market, product/service offering, marketing plan, and financial projections.

Strategic business plan

A strategic business plan is a long-term plan that outlines a company's overall strategy, objectives, and tactics. This type of strategic plan focuses on the big picture and helps business owners set goals and priorities and measure progress.

The primary purpose of a strategic business plan is to provide direction and guidance to the company's management team and stakeholders. The plan typically covers a period of three to five years.

Operational business plan

An operational business plan is a detailed document that outlines the day-to-day operations of a business. It focuses on the specific activities and processes required to run the business, such as:

Organizational structure

Staffing plan

Production plan

Quality control

Inventory management

Supply chain

The primary purpose of an operational business plan is to ensure that the business runs efficiently and effectively. It helps business owners manage their resources, track their performance, and identify areas for improvement.

Growth-business plan

A growth-business plan is a strategic plan that outlines how a company plans to expand its business. It helps business owners identify new market opportunities and increase revenue and profitability. The primary purpose of a growth-business plan is to provide a roadmap for the company's expansion and growth.

The 3 Horizons of Growth Template is a great tool to identify new areas of growth. This framework categorizes growth opportunities into three categories: Horizon 1 (core business), Horizon 2 (emerging business), and Horizon 3 (potential business).

One-page business plan

A one-page business plan is a condensed version of a full business plan that focuses on the most critical aspects of a business. It’s a great tool for entrepreneurs who want to quickly communicate their business idea to potential investors, partners, or employees.

A one-page business plan typically includes sections such as business concept, value proposition, revenue streams, and cost structure.

Best practices for how to make a good business plan

Here are some additional tips for creating a business plan:

Use a template

A template can help you organize your thoughts and effectively communicate your business ideas and strategies. Starting with a template can also save you time and effort when formatting your plan.

Miro’s extensive library of customizable templates includes all the necessary sections for a comprehensive business plan. With our templates, you can confidently present your business plans to stakeholders and investors.

Be practical

Avoid overestimating revenue projections or underestimating expenses. Your business plan should be grounded in practical realities like your budget, resources, and capabilities.

Be specific

Provide as much detail as possible in your business plan. A specific plan is easier to execute because it provides clear guidance on what needs to be done and how. Without specific details, your plan may be too broad or vague, making it difficult to know where to start or how to measure success.

Be thorough with your research

Conduct thorough research to fully understand the market, your competitors, and your target audience . By conducting thorough research, you can identify potential risks and challenges your business may face and develop strategies to mitigate them.

Get input from others

It can be easy to become overly focused on your vision and ideas, leading to tunnel vision and a lack of objectivity. By seeking input from others, you can identify potential opportunities you may have overlooked.

Review and revise regularly

A business plan is a living document. You should update it regularly to reflect market, industry, and business changes. Set aside time for regular reviews and revisions to ensure your plan remains relevant and effective.

Create a winning business plan to chart your path to success

Starting or growing a business can be challenging, but it doesn't have to be. Whether you're a seasoned entrepreneur or just starting, a well-written business plan can make or break your business’ success.

The purpose of a business plan is more than just to secure funding and attract investors. It also serves as a roadmap for achieving your business goals and realizing your vision. With the right mindset, tools, and strategies, you can develop a visually appealing, persuasive business plan.

Ready to make an effective business plan that works for you? Check out our library of ready-made strategy and planning templates and chart your path to success.

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How to Write the Perfect Business Plan: 10 Essential Steps

Whether you’re starting a new small business or are already years into operating one, a business plan is one of the best ways to clarify your long-term vision. Follow our step-by-step guide to writing a highly effective business plan.

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hether you’re starting a new small business or are already years into operating one, a business plan is one of the best ways to clarify your long-term vision. While every business plan is different, there are several key elements to consider that will benefit you in the long run. 

Follow our step-by-step guide to writing a highly effective business plan. 

What is a business plan?

A business plan is a document that outlines your business goals and how you plan to achieve them. Ideally, this will become your roadmap for marketing, sales, finance, and growth. 

In other words, a business plan is...

• An explanation of your overall vision.
• A valuable tool to plan and track your business fundamentals.
• An overview of your path to profitability, which can help get funding for your company.

Do You Need A Business Plan?

While it’s not a requirement, having a business plan is strongly recommended. In a recent QuickBooks survey , nearly 70% of current business owners recommended writing a business plan.

Creating a business plan is especially useful in the following scenarios:

• Applying for business loans
• Seeking additional rounds of funding or investors 
• Growing your employee headcount  
• Attracting top-level management candidates 
• Looking for opportunities to scale your business

10 Steps To Creating A Comprehensive Business Plan

While not every business plan is the same, there are a few key steps you should take to create an effective and comprehensive document:

1. Create an executive summary

Think of an executive summary as your company's elevator pitch in written form. It should be 1 to 2 pages in length and summarize important information about your company and goals. If you are pitching your business plan to get funding, you should ensure your executive summary appeals to investors.

What should you include in an executive summary?

• An overview of your business
• Your company mission statement
• A concise description of products or services offered
• A description of your target market and customer demographics
• A brief analysis of your competition
• Financial projections and funding requirements
• Information about your management team
• Future plans and growth opportunities
• An overall summary of your business plan

2. Write your company description

Your company description is a more detailed and comprehensive explanation of your business. It should provide a thorough overview of your company, including your company history, your mission, your objectives, and your vision. A company description should help the reader understand the context and background of the business, as well as the key factors that contribute to its success.

What should you include in your company description?

• Official company name 
• Type of business structure
• Physical address(es)
• Company history and background information
• Mission statement and core values
• Management team members and their qualifications
• Products and services offered
• Target market and customer segmentation
• Marketing and sales strategy
• Goals (both short- and long-term)
• Vision statement

Novo Note : The company description is your chance to expound on the pain points your company solves. It should also give a reader an accurate impression of who you are. 

3. Conduct and outline market analysis

This is one of the most important steps in building a business plan. Here, you will assess the size and dynamics of the market your business operates in.

How to conduct a market analysis

Market analyses include both quantitative and qualitative data. You may want to conduct surveys or lean on existing industry research to gather this information. You’ll want to answer:

• What is the size of the market?
• How much revenue does your industry generate?
• What trends are impacting this industry?
• Where are opportunities for innovation?
• What are the most well-known companies in the industry? What tactics do they use to sell to customers? How do they price their offering?
• Where are there gaps in the market? 
• What are your customer demographics? What problems do they have that need solving? What are their values, desires, and purchasing habits?
• What barriers to entry, if any, exist? These could include startup costs, legal requirements, environmental conditions that impact consumer behavior, and market saturation.

What is your target market?

In this section, you will specify the customer segment(s) you’re targeting . You can divide customers into small segments organized by age, location, income, and lifestyle. The goal is to describe what type of consumer will be most interested in your offering.

Novo Note : Regardless of your company’s size, understanding the trends and opportunities within your target market enables you to build a more effective marketing plan to distinguish yourself from the marketplace and grow your business. This analysis might also help you find potential customers or new products you could offer. 

4. Analyze your competitors

After conducting a market analysis, you need to do a deep dive into your competitors. Look at how the competition is succeeding or failing and how each competitor has positioned itself. For example, you might want to evaluate your competitors’ brand, pricing, and distribution strategies. 

How to conduct a competitive analysis

You’ll want to research your competitors and ask the following questions:

• What are their strengths?
• What are their weaknesses?
• What are their customer reviews like?
• How do they price their offering(s)?
• What are their value propositions?
• What marketing and sales channels do they leverage?
• How are they growing and evolving?

Novo Note : After you develop a strong understanding of the competitive landscape, consider how your business is unique. Solidifying your competitive advantage can help you appeal to your target audience.  

5. Describe your products or services

This is your chance to go into more detail about the products and services you offer! Use this opportunity to note where your offering or service differs from others in the industry. Highlight the standout features of your product, your company’s unique ability to solve customer problems, and your product roadmap.

What to include:

• Your product catalog
• Key differentiating features
• Information about the production process
• The resources required for production
• Plans for future product releases

6. Define your marketing and sales strategy

Your marketing plan describes your strategy for connecting with your target market and generating leads. It doesn't need to be full-fledged at this point, but it should answer who you're trying to sell to and how you plan to target them. Investors also want to know how you plan on selling your brand and breaking into the market, so make sure to consider their perspective as you develop your marketing strategy.

• Your sales and marketing budget
• Your key sales and marketing objectives
• Details about your sales process and sales goals
• Platforms or strategies you’ll employ to reach your target audience
• PR initiatives, content ideas, and social media strategies

7. Gather your business financials and outline financial projections

Your financials section lays out your company's past and current performance. You can also include a roadmap that dives into financial projections for your business. Aim to include projections for the next five years at a minimum.

• Income statements
• Cash flow statements
• Balance sheets
• Explanation of any significant changes

Novo Note : Novo offers integrations with accounting software like Quickbooks and Xero , allowing you to seamlessly access all your financial information within your business checking account .

8. Describe your organization

Your business plan should also include an organizational chart that maps your company’s structure. 

What to include :

• Company’s management structure
• Other key personnel, along with their roles and responsibilities
• Expertise of your team (feature any specialists or experts)

Novo Note : This is also a good place to explain the legal structure of your company — for example, if you are an LLC , a corporation, or a sole proprietorship . 

9. Outline your funding requests

If you’re looking for business funding, include an outline of any funding requests and requirements.

• Why you are requesting funding
• What the funding will be used for specifically
• Desired terms and conditions of funding
• The length of time over which the funding will be used
• Type of funding required (for example, debt or equity)

Novo Note : Propose a five-year funding plan, and aim to be as detailed as possible about how you will utilize the funds to grow your business. 

10. Create an appendix

The last section, the appendix, includes supporting documents and additional information not listed elsewhere in your business plan. Not all of these items are necessary to include, so you’ll need to evaluate which are most relevant to your business. You might also want to include a table of contents to help keep the appendix organized.

Items to consider including:

• Bank statements
• Business credit history
• Legal documents
• Letters of reference

Sample Business Plans

Need an example to help you through the process? Check out the Small Business Administration’s downloadable examples or this even more in-depth one from Harvard Business School.

Tips For Creating A Great Business Plan

Here are some of our favorite tips for creating the most effective and efficient business plan:

• Keep it short and sweet : You want to be sure people will actually read your business plan, so stay on topic and to the point.
• Make it digestible : No need to use the fanciest terminology or draft up the most complex graphs. Keep wording and ideas simple and straightforward — it’s the most impactful way to get your information across.
• Triple-check your work : There’s nothing worse than noticing a grammar, spelling, or mathematical error when you’re presenting your vision. So proofread… and then proofread again!
• Start early : It’s never too late to write a business plan, but the earlier you do it, the stronger your strategy for growth and expansion will be from the start.
• Reference credible sources : If you are going to reference third-party research in your business plan, lean on sources that are widely recognized as authorities. Try tapping into trade associations and government resources, like U.S. Census data or data from the Bureau of Labor Statistics.
• Set yourself apart : Wherever you can, explain why your product or service stands out and how it can solve a problem.
• Be objective : Avoid the instinct to only showcase the good. Stakeholders and investors want to know that you are realistic and have a contingency plan if you hit a bump in the road.

Updating Your Business Plan

As with most situations in business (and life), things change! So don’t think that your business plan has to be set in stone after you create it. Instead, you should plan to return to it once a year and make updates.

Be sure to do the following when you review and update your business plan:

• Analyze your progress: Review your original business plan and compare it to your actual financial data. Are you moving in the right direction, or do you need to reevaluate your strategy?
• Consider whether your product offerings need to be adjusted: For example, decide if you want to diversify your product offerings or scale back and focus on a singular product. 
• Reassess your overall goals: Perhaps your sales goals have changed with your new marketing strategy. Or maybe your customer’s needs have changed. In any case, be flexible where needed. 

We know there’s a lot that goes into creating a business plan, but it’s worth it. There’s no one-size-fits-all formula for developing a business plan, but our steps outlined above will put you on the right track for developing a comprehensive, investor-friendly document.

Take time to review your business plan annually and make changes as your needs and goals change.

Novo Platform Inc. strives to provide accurate information but cannot guarantee that this content is correct, complete, or up-to-date. This page is for informational purposes only and is not financial or legal advice nor an endorsement of any third-party products or services. All products and services are presented without warranty. Novo Platform Inc. does not provide any financial or legal advice, and you should consult your own financial, legal, or tax advisors.

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Step-by-Step Guide to Writing a Simple Business Plan

By Joe Weller | October 11, 2021

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A business plan is the cornerstone of any successful company, regardless of size or industry. This step-by-step guide provides information on writing a business plan for organizations at any stage, complete with free templates and expert advice. 

Included on this page, you’ll find a step-by-step guide to writing a business plan and a chart to identify which type of business plan you should write . Plus, find information on how a business plan can help grow a business and expert tips on writing one .

What Is a Business Plan?

A business plan is a document that communicates a company’s goals and ambitions, along with the timeline, finances, and methods needed to achieve them. Additionally, it may include a mission statement and details about the specific products or services offered.

A business plan can highlight varying time periods, depending on the stage of your company and its goals. That said, a typical business plan will include the following benchmarks:

• Product goals and deadlines for each month
• Monthly financials for the first two years
• Profit and loss statements for the first three to five years
• Balance sheet projections for the first three to five years

Startups, entrepreneurs, and small businesses all create business plans to use as a guide as their new company progresses. Larger organizations may also create (and update) a business plan to keep high-level goals, financials, and timelines in check.

While you certainly need to have a formalized outline of your business’s goals and finances, creating a business plan can also help you determine a company’s viability, its profitability (including when it will first turn a profit), and how much money you will need from investors. In turn, a business plan has functional value as well: Not only does outlining goals help keep you accountable on a timeline, it can also attract investors in and of itself and, therefore, act as an effective strategy for growth.

For more information, visit our comprehensive guide to writing a strategic plan or download free strategic plan templates . This page focuses on for-profit business plans, but you can read our article with nonprofit business plan templates .

Business Plan Steps

The specific information in your business plan will vary, depending on the needs and goals of your venture, but a typical plan includes the following ordered elements:

• Executive summary
• Description of business
• Market analysis
• Competitive analysis
• Description of organizational management
• Description of product or services
• Marketing plan
• Sales strategy
• Funding details (or request for funding)
• Financial projections

If your plan is particularly long or complicated, consider adding a table of contents or an appendix for reference. For an in-depth description of each step listed above, read “ How to Write a Business Plan Step by Step ” below.

Broadly speaking, your audience includes anyone with a vested interest in your organization. They can include potential and existing investors, as well as customers, internal team members, suppliers, and vendors.

Do I Need a Simple or Detailed Plan?

Your business’s stage and intended audience dictates the level of detail your plan needs. Corporations require a thorough business plan — up to 100 pages. Small businesses or startups should have a concise plan focusing on financials and strategy.

How to Choose the Right Plan for Your Business

In order to identify which type of business plan you need to create, ask: “What do we want the plan to do?” Identify function first, and form will follow.

Use the chart below as a guide for what type of business plan to create:

Is the Order of Your Business Plan Important?

There is no set order for a business plan, with the exception of the executive summary, which should always come first. Beyond that, simply ensure that you organize the plan in a way that makes sense and flows naturally.

The Difference Between Traditional and Lean Business Plans

A traditional business plan follows the standard structure — because these plans encourage detail, they tend to require more work upfront and can run dozens of pages. A Lean business plan is less common and focuses on summarizing critical points for each section. These plans take much less work and typically run one page in length.

In general, you should use a traditional model for a legacy company, a large company, or any business that does not adhere to Lean (or another Agile method ). Use Lean if you expect the company to pivot quickly or if you already employ a Lean strategy with other business operations. Additionally, a Lean business plan can suffice if the document is for internal use only. Stick to a traditional version for investors, as they may be more sensitive to sudden changes or a high degree of built-in flexibility in the plan.

How to Write a Business Plan Step by Step

Writing a strong business plan requires research and attention to detail for each section. Below, you’ll find a 10-step guide to researching and defining each element in the plan.

Step 1: Executive Summary

The executive summary will always be the first section of your business plan. The goal is to answer the following questions:

• What is the vision and mission of the company?
• What are the company’s short- and long-term goals?

See our  roundup of executive summary examples and templates for samples. Read our executive summary guide to learn more about writing one.

Step 2: Description of Business

The goal of this section is to define the realm, scope, and intent of your venture. To do so, answer the following questions as clearly and concisely as possible:

• What business are we in?
• What does our business do?

Step 3: Market Analysis

In this section, provide evidence that you have surveyed and understand the current marketplace, and that your product or service satisfies a niche in the market. To do so, answer these questions:

• Who is our customer? 
• What does that customer value?

Step 4: Competitive Analysis

In many cases, a business plan proposes not a brand-new (or even market-disrupting) venture, but a more competitive version — whether via features, pricing, integrations, etc. — than what is currently available. In this section, answer the following questions to show that your product or service stands to outpace competitors:

• Who is the competition? 
• What do they do best? 
• What is our unique value proposition?

Step 5: Description of Organizational Management

In this section, write an overview of the team members and other key personnel who are integral to success. List roles and responsibilities, and if possible, note the hierarchy or team structure.

Step 6: Description of Products or Services

In this section, clearly define your product or service, as well as all the effort and resources that go into producing it. The strength of your product largely defines the success of your business, so it’s imperative that you take time to test and refine the product before launching into marketing, sales, or funding details.

Questions to answer in this section are as follows:

• What is the product or service?
• How do we produce it, and what resources are necessary for production?

Step 7: Marketing Plan

In this section, define the marketing strategy for your product or service. This doesn’t need to be as fleshed out as a full marketing plan , but it should answer basic questions, such as the following:

• Who is the target market (if different from existing customer base)?
• What channels will you use to reach your target market?
• What resources does your marketing strategy require, and do you have access to them?
• If possible, do you have a rough estimate of timeline and budget?
• How will you measure success?

Step 8: Sales Plan

Write an overview of the sales strategy, including the priorities of each cycle, steps to achieve these goals, and metrics for success. For the purposes of a business plan, this section does not need to be a comprehensive, in-depth sales plan , but can simply outline the high-level objectives and strategies of your sales efforts. 

Start by answering the following questions:

• What is the sales strategy?
• What are the tools and tactics you will use to achieve your goals?
• What are the potential obstacles, and how will you overcome them?
• What is the timeline for sales and turning a profit?
• What are the metrics of success?

Step 9: Funding Details (or Request for Funding)

This section is one of the most critical parts of your business plan, particularly if you are sharing it with investors. You do not need to provide a full financial plan, but you should be able to answer the following questions:

• How much capital do you currently have? How much capital do you need?
• How will you grow the team (onboarding, team structure, training and development)?
• What are your physical needs and constraints (space, equipment, etc.)?

Step 10: Financial Projections

Apart from the fundraising analysis, investors like to see thought-out financial projections for the future. As discussed earlier, depending on the scope and stage of your business, this could be anywhere from one to five years. 

While these projections won’t be exact — and will need to be somewhat flexible — you should be able to gauge the following:

• How and when will the company first generate a profit?
• How will the company maintain profit thereafter?

Business Plan Template

Download Business Plan Template

Microsoft Excel | Smartsheet

This basic business plan template has space for all the traditional elements: an executive summary, product or service details, target audience, marketing and sales strategies, etc. In the finances sections, input your baseline numbers, and the template will automatically calculate projections for sales forecasting, financial statements, and more.

For templates tailored to more specific needs, visit this business plan template roundup or download a fill-in-the-blank business plan template to make things easy. 

If you are looking for a particular template by file type, visit our pages dedicated exclusively to Microsoft Excel , Microsoft Word , and Adobe PDF business plan templates.

How to Write a Simple Business Plan

A simple business plan is a streamlined, lightweight version of the large, traditional model. As opposed to a one-page business plan , which communicates high-level information for quick overviews (such as a stakeholder presentation), a simple business plan can exceed one page.

Below are the steps for creating a generic simple business plan, which are reflected in the template below .

• Write the Executive Summary This section is the same as in the traditional business plan — simply offer an overview of what’s in the business plan, the prospect or core offering, and the short- and long-term goals of the company. 
• Add a Company Overview Document the larger company mission and vision. 
• Provide the Problem and Solution In straightforward terms, define the problem you are attempting to solve with your product or service and how your company will attempt to do it. Think of this section as the gap in the market you are attempting to close.
• Identify the Target Market Who is your company (and its products or services) attempting to reach? If possible, briefly define your buyer personas .
• Write About the Competition In this section, demonstrate your knowledge of the market by listing the current competitors and outlining your competitive advantage.
• Describe Your Product or Service Offerings Get down to brass tacks and define your product or service. What exactly are you selling?
• Outline Your Marketing Tactics Without getting into too much detail, describe your planned marketing initiatives.
• Add a Timeline and the Metrics You Will Use to Measure Success Offer a rough timeline, including milestones and key performance indicators (KPIs) that you will use to measure your progress.
• Include Your Financial Forecasts Write an overview of your financial plan that demonstrates you have done your research and adequate modeling. You can also list key assumptions that go into this forecasting. 
• Identify Your Financing Needs This section is where you will make your funding request. Based on everything in the business plan, list your proposed sources of funding, as well as how you will use it.

Simple Business Plan Template

Download Simple Business Plan Template

Microsoft Excel |  Microsoft Word | Adobe PDF  | Smartsheet

Use this simple business plan template to outline each aspect of your organization, including information about financing and opportunities to seek out further funding. This template is completely customizable to fit the needs of any business, whether it’s a startup or large company.

Read our article offering free simple business plan templates or free 30-60-90-day business plan templates to find more tailored options. You can also explore our collection of one page business templates . 

How to Write a Business Plan for a Lean Startup

A Lean startup business plan is a more Agile approach to a traditional version. The plan focuses more on activities, processes, and relationships (and maintains flexibility in all aspects), rather than on concrete deliverables and timelines.

While there is some overlap between a traditional and a Lean business plan, you can write a Lean plan by following the steps below:

• Add Your Value Proposition Take a streamlined approach to describing your product or service. What is the unique value your startup aims to deliver to customers? Make sure the team is aligned on the core offering and that you can state it in clear, simple language.
• List Your Key Partners List any other businesses you will work with to realize your vision, including external vendors, suppliers, and partners. This section demonstrates that you have thoughtfully considered the resources you can provide internally, identified areas for external assistance, and conducted research to find alternatives.
• Note the Key Activities Describe the key activities of your business, including sourcing, production, marketing, distribution channels, and customer relationships.
• Include Your Key Resources List the critical resources — including personnel, equipment, space, and intellectual property — that will enable you to deliver your unique value.
• Identify Your Customer Relationships and Channels In this section, document how you will reach and build relationships with customers. Provide a high-level map of the customer experience from start to finish, including the spaces in which you will interact with the customer (online, retail, etc.). 
• Detail Your Marketing Channels Describe the marketing methods and communication platforms you will use to identify and nurture your relationships with customers. These could be email, advertising, social media, etc.
• Explain the Cost Structure This section is especially necessary in the early stages of a business. Will you prioritize maximizing value or keeping costs low? List the foundational startup costs and how you will move toward profit over time.
• Share Your Revenue Streams Over time, how will the company make money? Include both the direct product or service purchase, as well as secondary sources of revenue, such as subscriptions, selling advertising space, fundraising, etc.

Lean Business Plan Template for Startups

Download Lean Business Plan Template for Startups

Microsoft Word | Adobe PDF

Startup leaders can use this Lean business plan template to relay the most critical information from a traditional plan. You’ll find all the sections listed above, including spaces for industry and product overviews, cost structure and sources of revenue, and key metrics, and a timeline. The template is completely customizable, so you can edit it to suit the objectives of your Lean startups.

See our wide variety of  startup business plan templates for more options.

How to Write a Business Plan for a Loan

A business plan for a loan, often called a loan proposal , includes many of the same aspects of a traditional business plan, as well as additional financial documents, such as a credit history, a loan request, and a loan repayment plan.

In addition, you may be asked to include personal and business financial statements, a form of collateral, and equity investment information.

Download free financial templates to support your business plan.

Tips for Writing a Business Plan

Outside of including all the key details in your business plan, you have several options to elevate the document for the highest chance of winning funding and other resources. Follow these tips from experts:.

• Keep It Simple: Avner Brodsky , the Co-Founder and CEO of Lezgo Limited, an online marketing company, uses the acronym KISS (keep it short and simple) as a variation on this idea. “The business plan is not a college thesis,” he says. “Just focus on providing the essential information.”
• Do Adequate Research: Michael Dean, the Co-Founder of Pool Research , encourages business leaders to “invest time in research, both internal and external (market, finance, legal etc.). Avoid being overly ambitious or presumptive. Instead, keep everything objective, balanced, and accurate.” Your plan needs to stand on its own, and you must have the data to back up any claims or forecasting you make. As Brodsky explains, “Your business needs to be grounded on the realities of the market in your chosen location. Get the most recent data from authoritative sources so that the figures are vetted by experts and are reliable.”
• Set Clear Goals: Make sure your plan includes clear, time-based goals. “Short-term goals are key to momentum growth and are especially important to identify for new businesses,” advises Dean.
• Know (and Address) Your Weaknesses: “This awareness sets you up to overcome your weak points much quicker than waiting for them to arise,” shares Dean. Brodsky recommends performing a full SWOT analysis to identify your weaknesses, too. “Your business will fare better with self-knowledge, which will help you better define the mission of your business, as well as the strategies you will choose to achieve your objectives,” he adds.
• Seek Peer or Mentor Review: “Ask for feedback on your drafts and for areas to improve,” advises Brodsky. “When your mind is filled with dreams for your business, sometimes it is an outsider who can tell you what you’re missing and will save your business from being a product of whimsy.”

Outside of these more practical tips, the language you use is also important and may make or break your business plan.

Shaun Heng, VP of Operations at Coin Market Cap , gives the following advice on the writing, “Your business plan is your sales pitch to an investor. And as with any sales pitch, you need to strike the right tone and hit a few emotional chords. This is a little tricky in a business plan, because you also need to be formal and matter-of-fact. But you can still impress by weaving in descriptive language and saying things in a more elegant way.

“A great way to do this is by expanding your vocabulary, avoiding word repetition, and using business language. Instead of saying that something ‘will bring in as many customers as possible,’ try saying ‘will garner the largest possible market segment.’ Elevate your writing with precise descriptive words and you'll impress even the busiest investor.”

Additionally, Dean recommends that you “stay consistent and concise by keeping your tone and style steady throughout, and your language clear and precise. Include only what is 100 percent necessary.”

Resources for Writing a Business Plan

While a template provides a great outline of what to include in a business plan, a live document or more robust program can provide additional functionality, visibility, and real-time updates. The U.S. Small Business Association also curates resources for writing a business plan.

Additionally, you can use business plan software to house data, attach documentation, and share information with stakeholders. Popular options include LivePlan, Enloop, BizPlanner, PlanGuru, and iPlanner.

How a Business Plan Helps to Grow Your Business

A business plan — both the exercise of creating one and the document — can grow your business by helping you to refine your product, target audience, sales plan, identify opportunities, secure funding, and build new partnerships. 

Outside of these immediate returns, writing a business plan is a useful exercise in that it forces you to research the market, which prompts you to forge your unique value proposition and identify ways to beat the competition. Doing so will also help you build (and keep you accountable to) attainable financial and product milestones. And down the line, it will serve as a welcome guide as hurdles inevitably arise.

Streamline Your Business Planning Activities with Real-Time Work Management in Smartsheet

Empower your people to go above and beyond with a flexible platform designed to match the needs of your team — and adapt as those needs change. 

The Smartsheet platform makes it easy to plan, capture, manage, and report on work from anywhere, helping your team be more effective and get more done. Report on key metrics and get real-time visibility into work as it happens with roll-up reports, dashboards, and automated workflows built to keep your team connected and informed. 

When teams have clarity into the work getting done, there’s no telling how much more they can accomplish in the same amount of time.  Try Smartsheet for free, today.

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