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

Determined female African-American entrepreneur scaling a mountain while wearing a large backpack. Represents the journey to starting and growing a business and needing to write a business plan to get there.

Noah Parsons

24 min. read

Updated February 2, 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

What’s your biggest business challenge right now?

  • 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: How to collaborate with AI on your 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

Free business plan templates and examples

Kickstart your business plan writing with one of our free business plan templates or recommended tools.

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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.

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Content Author: Noah Parsons

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.

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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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How to Build a Detailed Business Plan That Stands Out [Free Template]

AJ Beltis

Updated: March 29, 2022

Published: March 11, 2022

While starting a company may seem easier now than ever before, entrepreneurs have an uphill battle from the moment they start a business. And without a clear, actionable business plan for selling, marketing, finances, and operations, you're almost destined to face significant challenges.

Entrepreneur builds his business plan template

This is why crafting a business plan is an essential step in the entrepreneurial process.

In this post, we'll walk you through the process of filling out your business plan template, like this free, editable version :

free editable One-Page Business Plan PDF  Template

Download a free, editable one-page business plan template.

We know that when looking at a blank page on a laptop screen, the idea of writing your business plan can seem impossible. However, it's a mandatory step to take if you want to turn your business dreams into a reality.

→ Download Now: Free Business Plan Template

That's why we've crafted a business plan template for you to download and use to build your new company. You can download it here for free . It contains prompts for all of the essential parts of a business plan, all of which are elaborated on, below.

This way, you'll be able to show them how organized and well-thought-out your business idea is, and provide them with answers to whatever questions they may have.

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Building a Successful Business Plan

In the next section, we'll cover the components of a business plan , such as an executive summary and company description. But before we get to that, let's talk about key elements that should serve as building blocks for your plan.

For some entrepreneurs, the thought of writing a business plan sounds like a chore — a necessary means to an end. But that's a bad take.

A solid business plan is a blueprint for success . It's key to securing financing, presenting your business, outlining your financial projections, and turning that nugget of a business idea into a reality.

At the core, your business plan should answer two questions: why your business and why now?

Investors want to know why your business is entering the market, i.e. what problem it's solving and how it's different from what's currently out there. They also want to know why now is the right time for your type of product or service.

At a minimum, your plan should:

  • Be more realistic than idealistic: Too often, business plans focus too much on how things could be instead of how they are. While having a vision is important, your plan needs to be rooted in research and data.
  • Legitimize your business idea : If an idea fails on paper, it's a signal to go back to the drawing board. In doing so, you avoid losing precious time or money chasing an unrealistic idea.
  • Position your business for funding: To get your business off the ground, chances are you'll need financial backing. Even with a solid business idea, investors, lenders, and banks still need convincing. An effective business plan will outline how much money you need, where it's going, what targets you will hit, and how you plan to repay any debts.
  • Lay the foundation: Investors focus on risk – if anything looks shaky, it could be a dealbreaker. Ideally, your business plan will lay down the foundation for how you'll operate your business — from operational needs to financial projections and goals.
  • Communicate your needs: It's nearly impossible to communicate your needs if you don't know what they are first. Of course, a business’ needs are always changing — but your plan should give you a well-rounded view of how your business will work in the short and long term.

So back to the question of why and why now – consider three things:

  • Your industry – How does your product or service fit within your industry? Are you targeting a specific niche? Where do you see the industry going in the next five to 10 years?
  • Your target audience – Who are you targeting? What challenges are they facing? How will your product or service help them in their daily lives?
  • Your unique selling proposition (USP) – What sets you apart from your competitors? Is it your product/service features? Your company values? Price?

Once you know the answers to these questions, you'll be equipped to answer the question: why your business and why now.

How to Build a Business Plan

  • Executive Summary
  • Company and Business Description
  • Product and Services Line
  • Market Analysis
  • Marketing Plan
  • Legal Notes
  • Financial Considerations

Featured Resource: Free Business Plan Template

1. cover page.

Your business plan should be prefaced with an eye-catching cover page. This means including a high-resolution image of your company logo, followed by your company's name, address, and phone number.

Since this business plan will likely change hands and be seen by multiple investors, you should also provide your own name, role in the business, and email address on the cover page.

At the bottom of this page, you can also add a confidentiality statement to protect against the disclosure of your business details.

The statement can read as follows: " This document contains confidential and proprietary information created by [your company name]. When receiving this document, you agree to keep its content confidential and may only reproduce and/or share it with express written permission of [your company name] ."

Remember to keep your cover page simple and concise — and save the important details for other sections.

Why it matters: First impressions are everything, and a clean cover page is the first step in the right direction.

Example of a Cover Page

Business Plan Template: Cover Page

2. Executive Summary

The executive summary of your business plan provides a one- to two-page overview of your business and highlights the most crucial pieces of your plan, such as your short-term and long-term goals.

The executive summary is essentially a boiled-down version of your entire business plan, so remember to keep this section to the point and filled only with essential information.

Typically, this brief section includes:

  • A mission statement.
  • The company's history and leadership model.
  • An overview of competitive advantage(s).
  • Financial projections.
  • Company goals.
  • An ask from potential investors.

Why it matters: The executive summary is known as the make-or-break section of a business plan. It influences whether investors turn the page or not — so effectively summarizing your business and the problem it hopes to solve is a must.

Think of the Summary as a written elevator pitch (with more detail). While your business plan provides the nitty-gritty details, your Summary describes — in a compelling but matter-of-fact language — the highlights of your plan. If it's too vague, complicated, or fuzzy, you may need to scrap it and start again.

Example of an Executive Summary Introduction

"The future looks bright for North Side Chicago, particularly the Rock Hill Neighborhood. A number of high-end commercial and residential developments are well on their way, along with two new condo developments in nearby neighborhoods.

While the completion of these developments will increase the population within the neighborhood and stimulate the economy, the area lacks an upscale restaurant where residents and visitors can enjoy fine food and drink. Jay Street Lounge and Restaurant will provide such a place."

3. Company & Business Description

In this section, provide a more thorough description of what your company is and why it exists.

Business Plan Template: Business Description

The bulk of the writing in this section should be about your company's purpose – covering what the business will be selling, identifying the target market, and laying out a path to success.

In this portion of your business plan, you can also elaborate on your company's:

  • Mission statement
  • Core values
  • Team and organizational structure

Why it matters: Investors look for great structures and teams in addition to great ideas. This section gives an overview of your businesses' ethos. It's the perfect opportunity to set your business apart from the competition — such as your team's expertise, your unique work culture, and your competitive advantage.

Example of a Values/Mission Statement

"Jay Street Lounge and Restaurant will be the go-to place for people to get a drink or bite in an elegant, upscale atmosphere. The mission is to be North Side's leading restaurant, with the best tasting food and the highest quality service."

3. Product & Services Line

Here's where you'll cover the makeup of your business's product and/or services line. You should provide each product or service's name, its purpose, and a description of how it works (if appropriate). If you own any patents, copyrights, or trademarks, it's essential to include this info too.

Next, add some color to your sales strategy by outlining your pricing model and mark-up amounts.

If you're selling tangible products, you should also explain production and costs, and how you expect these factors to change as you scale.

Why it matters: This section contains the real meat of your business plan. It sets the stage for the problem you hope to solve, your solution, and how your said solution fits in the market.

There's no one-size-fits-all formula for this section. For instance, one plan may delve into its ability to market in a more cost-effective way than the competition, whereas another plan focuses on its key products and their unique features and benefits.

Regardless of your angle, it's critical to convey how your offerings will differ from the competition.

Example of a Product/Service Offering

"The menu at Jay Street Lounge and Restaurant will focus on Moroccan cuisine. The stars of the menu (our specialties) are the Moroccan dishes, such as eggplant zaalouk, seafood bastilla, tagine, and chickpea stew. For those who enjoy American dishes, there will also be a variety of options, from burger sliders and flatbread pizza to grilled steak and salads.

The food at Jay Street will have premium pricing to match its upscale atmosphere. During the summer months, the restaurant will have extra seating on the patio where clients can enjoy a special summer menu. We will be open on all days of the week."

4. Market Analysis

Business Plan Template: Market Analysis

It helps to reference your market research documentation in this section, like a Porter's Five Forces Analysis or a SWOT Analysis ( templates for those are available here ). You can also include them in your appendix.

If your company already has buyer personas, you should include them here as well. If not, you can create them right now using the Make My Persona Tool .

Why it matters: Having an awesome product is, well, awesome — but it isn't enough. Just as important, there must be a market for it.

This section allows you to dig deeper into your market, which segments you want to target, and why. The "why" here is important, since targeting the right segment is critical for the success and growth of your business.

It's easy to get lost (or overwhelmed) in a sea of endless data. For your business plan, narrow your focus by answering the following questions:

  • What is my market? In other words, who are my customers?
  • What segments of the market do I want to target?
  • What's the size of my target market?
  • Is my market likely to grow?
  • How can I increase my market share over time?

Example of a Market Analysis

"Jay Street Lounge and Restaurant will target locals who live and work within the Rock Hill Neighborhood and the greater North Side Chicago area. We will also target the tourists who flock to the many tourist attractions and colleges on the North Side.

We will specifically focus on young to middle-aged adults with an income of $40,000 to $80,000 who are looking for an upscale experience. The general demographics of our target market are women between 20 to 50 years old.

A unique and varied Moroccan-American menu, along with our unique upscale atmosphere, differentiates us from competitors in the area. Jay Street will also set itself apart through its commitment to high-quality food, service, design, and atmosphere."

5. Marketing Plan

Unlike the market analysis section, your marketing plan section should be an explanation of the tactical approach to reaching your aforementioned target audience. List your advertising channels, organic marketing methods, messaging, budget, and any relevant promotional tactics.

If your company has a fully fleshed-out marketing plan, you can attach it in the appendix of your business plan. If not, download this free marketing plan template to outline your strategy.

building a solid business plan

Free Marketing Plan Template

Outline your company's marketing strategy in one simple, coherent plan.

  • Pre-Sectioned Template
  • Completely Customizable
  • Example Prompts
  • Professionally Designed

Why it matters: Marketing is what puts your product in front of your customers. It's not just advertising — it's an investment in your business.

Throwing money into random marketing channels is a haphazard approach, which is why it's essential to do the legwork to create a solid marketing plan.

Here's some good news — by this point, you should have a solid understanding of your target market. Now, it's time to determine how you'll reach them.

Example of a Marketing Plan Overview

"Our marketing strategy will focus on three main initiatives:

  • Social media marketing. We will grow and expand our Facebook and Instagram following through targeted social media ads.
  • Website initiatives. Our website will attract potential visitors by offering updated menus and a calendar of events.
  • Promotional events. Jay Street will have one special theme night per week to attract new clients."

6. Sales Plan

It doesn't matter if your sales department is an office full of business development representatives (BDR) or a dozen stores with your products on their shelves.

The point is: All sales plans are different, so you should clearly outline yours here. Common talking points include your:

  • Sales team structure, and why this structure was chosen.
  • Sales channels.
  • Sales tools, software, and resources.
  • Prospecting strategy.
  • Sales goals and budget.

Like with your marketing plan, it might make sense to attach your completed sales plan to the appendix of your business plan. You can download a template for building your sales plan here .

Why it matters: Among other things, investors are interested in the scalability of your business — which is why growth strategies are a critical part of your business plan.

Your sales plan should describe your plan to attract customers, retain them (if applicable), and, ultimately, grow your business. Be sure to outline what you plan to do given your existing resources and what results you expect from your work.

Example of a Sales Plan Overview

"The most important goal is to ensure financial success for Jay Street Lounge and Restaurant. We believe we can achieve this by offering excellent food, entertainment, and service to our clients.

We are not a low-cost dining option in the area. Instead, the food will have premium pricing to match its upscale feel. The strategy is to give Jay Street a perception of elegance through its food, entertainment, and excellent service."

7. Legal Notes

Your investors may want to know the legal structure of your business, as that could directly impact the risk of their investments. For example, if you're looking for business partners to engage in a non-corporation or LLC partnership, this means they could be on the line for more than their actual investment.

Because this clarification is often needed, explain if you are and/or plan to become a sole proprietor, partnership, corporation, LLC, or other.

You should also outline the steps you have taken (or will need to take) to operate legally. This includes licenses, permits, registrations, and insurance.

The last thing your investor wants to hear after they've sent you a big chunk of change is that you're operating without proper approval from the local, state, or federal government.

Why it matters: The last thing your investor wants to hear after they've sent you a big chunk of change is that you're operating without proper approval from the local, state, or federal government.

Example of Legal Notes

"Jay Street Lounge and Restaurant is up-to-date on all restaurant licenses and health permits. Our business name and logo are registered trademarks, presenting the possibility of expanding locally."

8. Financial Considerations

Ultimately, investors want to know two things:

  • When they will earn their money back.
  • When they will start seeing returns on their initial investment.

That said, be clear, calculated, and convincing in this section. It should cover:

  • Startup costs.
  • Sales forecasts for the next several months/quarters.
  • Break-even analysis for time and dollars.
  • Projected profit and loss (P&L) statement.

Facts and figures are key here, so be as specific as possible with each line item and projection. In addition, explain the "why" behind each of these sections.

However, keep in mind that information overload is a risk, especially when it comes to data. So, if you have pages upon pages of charts and spreadsheets for this section, distill them into a page or two and include the rest of the sheets in the appendix. This section should only focus on key data points.

Why it matters: One of the most important aspects of becoming "investor ready" is knowing your numbers. More importantly, you need to understand how those numbers will enhance your business.

While it's easy to write a number down on paper, it's more important to understand (and communicate) why you need capital, where it's going, and that your evaluation makes sense.

Example of Financial Projections

"Based on our knowledge and experience in the restaurant industry, we have come up with projections for the business.

Starting with an expenditure of $400,000 in year 1, we forecast sales of $1,500,000 and $2,800,000 for years two and three. We expect to achieve a net profit of 15% by year three."

9. Appendix

A detailed and well-developed business plan can range anywhere from 20 to 50 pages, with some even reaching upward of 80.

In many cases, the appendix is the longest section. Why? Because it includes the supportive materials mentioned in previous sections. To avoid disrupting the flow of the business plan with visuals, charts, and spreadsheets, business owners usually add them in the last section, i.e. the appendix.

Aside from what we've already mentioned – marketing plan, sales plan, department budgets, financial documents – you may also want to attach the following in the appendix:

  • Marketing materials
  • Market research data
  • Licensing documentation
  • Branding assets
  • Floor plans for your location
  • Mockups of your product
  • Renderings of your office space or location design

Adding these pieces to the appendix enriches the reader's understanding of your business and proves you've put the work into your business plan without distracting from the main points throughout the plan.

Why it matters: An appendix helps the reader do their due diligence. It contains everything they need to support your business plan.

Keep in mind, however, that an appendix is typically necessary only if you're seeking financing or looking to attract business partners.

Use a Business Plan Template to Get Started

Writing a business plan shouldn't be an insurmountable roadblock to starting a business. Unfortunately, for all too many, it is.

That's why we recommend using our free business plan template. Pre-filled with detailed section prompts for all of the topics in this blog post, we're confident this template will get your business plan started in the right direction.

Editor's note: This post was originally published in June 2017 and has been updated for comprehensiveness.

Business Plan Template

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How to Write a Business Plan, Step by Step

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Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

What is a business plan?

1. write an executive summary, 2. describe your company, 3. state your business goals, 4. describe your products and services, 5. do your market research, 6. outline your marketing and sales plan, 7. perform a business financial analysis, 8. make financial projections, 9. summarize how your company operates, 10. add any additional information to an appendix, business plan tips and resources.

A business plan outlines your business’s financial goals and explains how you’ll achieve them over the next three to five years. Here’s a step-by-step guide to writing a business plan that will offer a strong, detailed road map for your business.

Bizee

A business plan is a document that explains what your business does, how it makes money and who its customers are. Internally, writing a business plan should help you clarify your vision and organize your operations. Externally, you can share it with potential lenders and investors to show them you’re on the right track.

Business plans are living documents; it’s OK for them to change over time. Startups may update their business plans often as they figure out who their customers are and what products and services fit them best. Mature companies might only revisit their business plan every few years. Regardless of your business’s age, brush up this document before you apply for a business loan .

» Need help writing? Learn about the best business plan software .

This is your elevator pitch. It should include a mission statement, a brief description of the products or services your business offers and a broad summary of your financial growth plans.

Though the executive summary is the first thing your investors will read, it can be easier to write it last. That way, you can highlight information you’ve identified while writing other sections that go into more detail.

» MORE: How to write an executive summary in 6 steps

Next up is your company description. This should contain basic information like:

Your business’s registered name.

Address of your business location .

Names of key people in the business. Make sure to highlight unique skills or technical expertise among members of your team.

Your company description should also define your business structure — such as a sole proprietorship, partnership or corporation — and include the percent ownership that each owner has and the extent of each owner’s involvement in the company.

Lastly, write a little about the history of your company and the nature of your business now. This prepares the reader to learn about your goals in the next section.

» MORE: How to write a company overview for a business plan

building a solid business plan

The third part of a business plan is an objective statement. This section spells out what you’d like to accomplish, both in the near term and over the coming years.

If you’re looking for a business loan or outside investment, you can use this section to explain how the financing will help your business grow and how you plan to achieve those growth targets. The key is to provide a clear explanation of the opportunity your business presents to the lender.

For example, if your business is launching a second product line, you might explain how the loan will help your company launch that new product and how much you think sales will increase over the next three years as a result.

» MORE: How to write a successful business plan for a loan

In this section, go into detail about the products or services you offer or plan to offer.

You should include the following:

An explanation of how your product or service works.

The pricing model for your product or service.

The typical customers you serve.

Your supply chain and order fulfillment strategy.

You can also discuss current or pending trademarks and patents associated with your product or service.

Lenders and investors will want to know what sets your product apart from your competition. In your market analysis section , explain who your competitors are. Discuss what they do well, and point out what you can do better. If you’re serving a different or underserved market, explain that.

Here, you can address how you plan to persuade customers to buy your products or services, or how you will develop customer loyalty that will lead to repeat business.

Include details about your sales and distribution strategies, including the costs involved in selling each product .

» MORE: R e a d our complete guide to small business marketing

If you’re a startup, you may not have much information on your business financials yet. However, if you’re an existing business, you’ll want to include income or profit-and-loss statements, a balance sheet that lists your assets and debts, and a cash flow statement that shows how cash comes into and goes out of the company.

Accounting software may be able to generate these reports for you. It may also help you calculate metrics such as:

Net profit margin: the percentage of revenue you keep as net income.

Current ratio: the measurement of your liquidity and ability to repay debts.

Accounts receivable turnover ratio: a measurement of how frequently you collect on receivables per year.

This is a great place to include charts and graphs that make it easy for those reading your plan to understand the financial health of your business.

This is a critical part of your business plan if you’re seeking financing or investors. It outlines how your business will generate enough profit to repay the loan or how you will earn a decent return for investors.

Here, you’ll provide your business’s monthly or quarterly sales, expenses and profit estimates over at least a three-year period — with the future numbers assuming you’ve obtained a new loan.

Accuracy is key, so carefully analyze your past financial statements before giving projections. Your goals may be aggressive, but they should also be realistic.

NerdWallet’s picks for setting up your business finances:

The best business checking accounts .

The best business credit cards .

The best accounting software .

Before the end of your business plan, summarize how your business is structured and outline each team’s responsibilities. This will help your readers understand who performs each of the functions you’ve described above — making and selling your products or services — and how much each of those functions cost.

If any of your employees have exceptional skills, you may want to include their resumes to help explain the competitive advantage they give you.

Finally, attach any supporting information or additional materials that you couldn’t fit in elsewhere. That might include:

Licenses and permits.

Equipment leases.

Bank statements.

Details of your personal and business credit history, if you’re seeking financing.

If the appendix is long, you may want to consider adding a table of contents at the beginning of this section.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Here are some tips to write a detailed, convincing business plan:

Avoid over-optimism: If you’re applying for a business bank loan or professional investment, someone will be reading your business plan closely. Providing unreasonable sales estimates can hurt your chances of approval.

Proofread: Spelling, punctuation and grammatical errors can jump off the page and turn off lenders and prospective investors. If writing and editing aren't your strong suit, you may want to hire a professional business plan writer, copy editor or proofreader.

Use free resources: SCORE is a nonprofit association that offers a large network of volunteer business mentors and experts who can help you write or edit your business plan. The U.S. Small Business Administration’s Small Business Development Centers , which provide free business consulting and help with business plan development, can also be a resource.

On a similar note...

Find small-business financing

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Blog Business

How to Create a Business Plan to Win Over Investors (7+ Business Plan Templates)

By Midori Nediger , Jul 11, 2023

Business Plan Blog Header

A compelling business plan is essential to every new and growing business.

It’s the primary document that prospective investors use to evaluate the potential of a business, going hand in hand with a business pitch deck .

For a business plan, you need to organize a lot of information into a single, easy-to-read document. More than that, your business plan’s design should be engaging, inspire confidence in your stakeholders and motivate them to back your company and its vision. 

Gone are the days when designing a business plan from scratch was a time-consuming and challenging task. Today, business plan templates offer a convenient solution by providing pre-designed layouts that simplify the process.

In this blog, I’m going to break it down for you. I’ll share the six things you need to know to put together a compelling, engaging business plan. Ready to get started now? Venngage’s online Business Plan Maker  lets anyone create a winning business plan quickly and easily.

Just so you know, some of our business plan templates are free to use and some require a small monthly fee.  Sign-up  is always free, as is access to Venngage’s online drag-and-drop editor.

Click to jump ahead:

  • How to format your business plan

Startup business plan templates

Simple business plan templates.

  • How to write your business plan
  • How to design an engaging executive summary
  • How to use charts and graphs to present data
  • How to communicate growth strategies in your business plan
  • How to present financial data in your business plan

1. How to format your business plan

To format your business plan:

  • Start with a clear title page.
  • Include an executive summary.
  • Provide a company description.
  • Conduct a market analysis.
  • Describe your product or service offering.
  • Outline your marketing and sales strategy.
  • Include organizational or business structure and management information.

A typical business plan is an in-depth document and covers every facet of your business (present and future). Creating a traditional business plan makes sense when you have a clear growth plan for the next three to five years, are in need of major funding, or want to attract long-term partners.  

A professional business plan typically has the following sections: 

  • Table of Contents
  • Executive summary
  • Company description
  • Market analysis
  • Organization and management
  • Service or product line
  • Marketing and sales
  • Funding request
  • Financial projections
  • An appendix

A business plan can span a dozen or more pages because it presents the big picture, as complete as possible, to reassure others to invest in you. Investment can mean a few different things – usually financial, but also as partners or employees. 

The sections that can take a lot of research and add to the bulk of your business plan are your market analysis, marketing and sales plans, and financial projections. 

These are the sections that demonstrate your business acumen, your long-term vision, and your accountability. Whereas, sections like the executive summary are meant to grab attention, inspire and get people excited about your business. 

Start with a business plan template

To get started on your business plan, save yourself some time and use a template.

Most business plan templates will include things like a cover page, table of contents and the main sections you need. It will also have pre-formatted pages with placeholder text and charts that you can swap out. 

Green Simple Business Plan Template

It takes time to do market research, present growth plans, put together financial projections, analyze your customer base, create competitor breakdowns…the list goes on.

The last thing you want to do is spend precious time formatting the resulting document. 

Save time by building your business plan from an existing business plan template, and customize it with your own content.

With a clean, consistent structure and clear headings, this template is the perfect starting point:

business plan template

Then you’re free to customize the template with helpful visual elements like charts, tables, and diagrams, that will make your pitch deck impossible to resist.

A Venngage business plan template is designed to help you communicate visually  and explain complex ideas easily. The right business plan template for you depends on the length and detail of your business plan, your brand and style, and the different sections you want to cover.

If your small business doesn’t have a dedicated design team, but you still need to learn how to write a business plan to present to investors–build off of a pre-designed business plan template:

Simple Business Plan TemplateSimple Business Plan Template

There are just a handful of our business plan templates that can be customized in the Venngage editor. Browse more business plan templates,  choose one that’s best for you and start editing right away.

Structuring your startup business plan involves organizing it into sections such as executive summary, company description, market analysis, product/service offering, marketing and sales strategy, financial projections, and operational plan.

Here are some business plan template examples:

startup business plan template

Short Business Plan Template

short business plan template

Number your pages and include a table of contents

A table of contents is crucial to help readers navigate your document and quickly find specific sections that are of interest to them.

It’s a good idea to include page numbers, main section headings, and section subheadings here for easy reference.

business plan template

Keeping these tips in mind will ensure that your business plan design feels clean and professional and doesn’t distract from your content. You want your information, not your formatting, to be the focus!

2. How to write your business plan 

Crafting a solid business plan is vital for the success of your venture. It serves as a roadmap that outlines your objectives, strategies, and financial projections. Here are three tips for writing your business plan to ensure it’s easy to read, appears professional and is memorable.

Use bulleted lists, bold text, and a clear type hierarchy for ‘skimmability’

Business plans need to be understandable at a glance to attract funding . Investors are looking for information that will help them understand your business quickly and without much effort.

Take a look at this snippet of the business plan template from above:

business plan

What stands out to you?

To me, the large green headers pop out first, making it easy to scan through the sections to find what I want to focus on.

This is because there’s a defined type hierarchy, giving more visual weight to the headers over the body text.

business plan

Next, the unique selling points of this business–superior quality products, unique glass carving and brass inlays, and excellent service–jump out. Because they’re presented in an indented list , they’re easier to see at a glance, which will likely make them more memorable.

Finally, I’m drawn to the bolded stats–“top 30% of the industry” and “4 out of 5 households spent money on renovation”.

Key statistics like these can go a long way towards convincing your investors that you’re worth their time and money. If you’re going to include them within larger paragraphs, make sure they stand out by increasing their font weight.

To sum up: make your report skimmable. Draw attention to important takeaways with indented lists, bolded text, and a clear type hierarchy.

Consider using a one-column or two-column grid

business plan

If your business plan contains only text, stick with a single-column layout that reinforces the linear flow of the document. If your business plan includes some supporting data in the form of charts and tables, use a two-column layout to juxtapose text with its corresponding data.

Maintain page margins that set text at a readable line length

When we read long passages of text, the ease at which we read depends on how the text flows on the page. Something called line length (the number of characters in a horizontal line of text) plays a huge role in readability, and is something you should consider when formatting your business plan.

To dictate line length, designers and typesetters play with the width of page margins (the edges of a document that don’t contain any text or images) with the aim of maximizing readability.

It’s generally accepted that the ideal line length sits somewhere between 40 and 90 characters per line. Any longer or shorter and you’ll find that something feels “off” about your document.

business plan

How do you achieve this in your business plan?

If you use a single-column layout, use nice wide margins (1 ½ to 2 inches) to limit your text to less than 90 characters per line.

business plan template

With a two-column layout, you might need to use narrower margins (possibly as little as ½ an inch on either side) to make sure there’s enough space for at least 40 characters per line of text.

business plan template

The last thing to remember about margins and line length–don’t play around with them from page to page. Use consistent margins across your whole document.

3. How to design an executive summary

An executive summary is a snapshot of your business plan. It should be concise and hook your readers. It should reassure stakeholders that your business plan will be a worthwhile read.

How you choose to structure your executive summary is key. You can deliver a lot of excellent information that simply gets lost in a sea of text and paragraphs. Even if someone reads through it entirely, they may have missed something.

To make key information stand out, use vibrant headings, incorporate visuals throughout, and break up the layout of your text.

Executive Summary Business Plan Template

Not every investor looks for the same thing. Some will care more about who you or your executive team are, while another is interested solely in the financials of the business. Identifying each section makes it easy for readers to find exactly what they’re looking for.

You can also list out the key takeaways, briefly explaining them in the executive summary. If your reader finds everything they needed to know in the executive summary, they’ll happily move onto the rest of the business plan.

Executive Summary Blue Business Plan Template

4. Use one feature color to tie your business plan together

Color should be used with restraint in professional documents like business plans. Instead of adding color solely for aesthetic purposes, think of color selection as another tool to highlight information you want your reader to focus on and to tie the document together.

You shouldn’t need more than a single color (ideally one of your brand colors ) to achieve this in a business plan.

In business plan charts, color should be used only to clarify trends and relationships. Use color to emphasize single important data points, differentiate between real and projected values, or group related data:

business plan template

In the rest of your business plan, keep color to a minimum. At most, use it to make headers stand out or to highlight key points in long-form text, diagrams, or tables.

The nice thing about keeping document colors this simple? It’s hard to mess up, and without any complex design work, it creates a sense of cohesion and unity within a document.

4. How to use charts and graphs to present your data

Since your business plan should be backed by solid data, you might want to include some of that data as evidence, in the form of  charts, tables or diagrams . Even simple visuals can communicate better than long paragraphs of text.

I’ll touch on some specific types of charts commonly used in business plans next, but first let’s review a few general chart design tactics.

Use descriptive titles and annotations to spell out chart takeaways

Avoid generic headers whenever possible. Maximize your chart’s value and impact by providing takeaway messages right in the title.

business plan

In the same vein, add direct annotations to data points or trends that support your case.

business plan

Repeating key messages within a chart, in the title, annotations, and captions, may improve viewers understanding and recall of those messages .

Aid understanding of market size and market share with area charts and pie charts

A market potential analysis is a fundamental pillar of your business plan. Market size and market share are two major components of a market potential analysis.

These numbers are typically in the millions and billions (the bigger the better, really), but most people have trouble grasping the meaning of such big numbers . At a surface level we can understand that one billion is one thousand times larger than one million, but we often struggle to comprehend what that really means.

This is the perfect opportunity to add some visual aids to your business plan.

Use bubble charts to represent market size

Bubble charts are useful for showing general proportions among numbers. Check out this one from our redesigned version of AirBnb’s first pitch deck :

business plan

Without having to think about the absolute values of these very large numbers, we can quickly see how they relate to one another.

While bubble charts are good for making quick, general comparisons, they’re less useful when it comes to precise measurements. To help readers make slightly more accurate judgements of proportion:

Use pie or donut charts to represent market share and market composition

Pie and donut charts are the industry standard for showing market share and market composition, since they’re the most widely understood method for representing part-to-whole relationships.

The way Uber breaks down their market with a simple donut chart makes their biggest segment (a key takeaway) really stand out, while the subtler differences between the smaller segments are still evident.

business plan

When you present a market analysis, use pie charts, donut charts, or bubble charts to aid the reader understanding proportions and part-to-whole relationships.

Use histograms and bar charts to represent demographic distributions in market segmentation summaries

Another part of analyzing market potential is about identifying and understanding target customers. This means segmenting customers by geography, interests, demographics…really anything that might affect purchasing behaviour.

Two standard metrics that most businesses include in a market segmentation summary are customer age and gender. These data are easily summarized in a histogram, with bars that represent age group distribution.

business plan template

Bar charts can then be used to contrast the key behaviors and lifestyle choices of the top consumer segments.

business plan template

Histograms and bar charts are standard features of a market segmentation summary. Use them together to identify and present information about top customer segments.

Outline major milestones with a Gantt chart

Stakeholders will want to see that you have a concrete plan in place to help you reach your revenue goals. When formulating your goals, use the SMART principle to provide your stakeholders with a very clear vision of how you intend to achieve them. 

Use a Gantt chart (a sort of modified bar chart) to outline the major milestones and phases of your business strategy. Try to include a multi-year plan, broken down by quarter and by project or department.

business plan

You can create your own Gantt chart with Venngage.

5. How to communicate growth strategies in your business plan

No matter how impressive your product line or services, your business won’t just magically grow. You concrete marketing and sales plans in place, and effectively communicate strategies to your stakeholders.

Start by acknowledging your target market – who are you going after? This is what your marketing and sales efforts will revolve around after all.

Demonstrate an understanding of the competitor landscape. You will always have direct or indirect competition, and showing how your planning accounts for it is key. Then you can talk about actual plans and strategies you wish to implement.

Present your target audience with persona guides

A product may great on its own. But its value is determined when there is a clear and obvious market for it. You can point out shortcomings of your competition, but you also need to show that your target audience exists and how you’re serving them.

A persona guide provides a great deal of context to readers of your business plan. It’s the best way for them to understand who cares about your product or service, how it aligns with their lifestyle and needs, and why your marketing and sales tactics will work.

Business Plan Persona Guide Template

A persona guide needs to be detailed, and share an intimate understanding of your target audience. The more you can divulge, the more reassuring your research and overall business plan will be.

Business Plan Detailed Persona Guide Template

Even if you don’t have a substantial customer base, you can still create an ideal persona guide to show who you’re pursuing.

Business Plan Ideal Persona Guide Template

Highlight competitors and differentiate yourself with a SWOT analysis

Every business plan should include an analysis of the competitive landscape–an assessment of the strengths and weaknesses of competitive businesses.

In terms of visuals, this competitive analysis is typically summarized in a SWOT analysis matrix .

Business Plan SWOT Analysis Template

You can also present the SWOT analysis as a table or a list. The layout is up to you, but you want to focus on strengths, weaknesses, opportunities and threats in relation to your competition.

Business Plan SWOT analysis Table Template

While the SWOT analysis framework provides valuable insights, it’s not the entire reflection of your competitive landscape. For example, it doesn’t make it easy to see at a glance the qualities that differentiate your business from your competitors.

To highlight those offerings that set you apart from your competitors, a comparison matrix is more effective. Take a look at these two templates:

Business Plan Competitor Comparison Template

With a direct competitor comparison, it’s easy to present the key differentiators between the existing options for a product or service, and your business.

Alternatively, a “ Magic Quadrant ” can be useful when you’re focused on comparing across two main metrics ( key differentiators ):

business plan

Finally, in a competitive market, there are going to be a lot of players who compete directly or indirectly with you.  A breakdown of them all may not be necessary. Instead, you can point visually to the space that you will address, that has been so far ignored up to now.

To do that, a prioritization chart can be used. By plotting competing businesses on a prioritization chart, you highlight experiences existing competitors focus on, and where your business falls. 

business plan

Use roadmaps to present your marketing and sales plans

To explain any long-term marketing or sales plan, you want visuals. It’s easier to break down strategies you’ll be deploying every month or each quarter, when you can actually show what you’re talking about.

Keep in mind, those reading your business plan may not be marketers or sales executives. Being able to lay out your approach in a way that’s organized, shows how much thought you’ve given to your growth strategies.

You can design a simple roadmap that points to what you’ll be doing throughout the year. The more detailed you can get, the better.

Business Plan Marketing roadmap Template

You can also present your product roadmap , with your marketing roadmap how the business will be growing overall.

Business Plan Product Roadmap Template

You don’t need to use a traditional roadmap layout, either. Experiment with different formats as you may find one easier to work with than another. As long as the time period for different strategies is clear, your roadmap will be easy to understand.

Business Plan Marketing Roadmap Template

6. How to present financial data in your business plan

Presenting financial data isn’t easy. You have to crunch a lot of numbers before you can share projections with confidence. You’ll also need to explain how you arrived at the numbers and prepare for your answers.

Understanding how to organize your information is key to walking potential investors and other stakeholders through your projections.

Use organizational flow charts and summary tables for budget breakdowns and financial summaries

The financials section of your business plan will get a lot of attention from stakeholders. Simple bar charts and pie charts won’t suffice, as they can’t present financial data in very much detail.

If your business has already been operating for some time, stakeholders will expect a detailed report of revenues and expenses. Tables are usually the best choice for this kind of financial summary, as they provide an unbiased view of the numbers and allow stakeholders to look up specific values.

business plan templates

If you’re interested in highlighting a particular trend, however, you may want to include a line chart featuring a smaller snapshot of your financial data:

business plan templates

If you’re just starting your business and you don’t have any detailed revenue data, you can still provide useful information about your budget. Outline higher-level budget allocation with an organizational flow chart .

business plan

Use line or bar graphs to visualize financial trends

You can use different types of graphs to also show how your business has performed thus far. 

You can share results over the course of a year with a line graph. This is effective to show an overall set of trends and growth rates. 

Business Plan Sales Chart Template

You can also compare previous years to highlight how your business has grown.

Your audience should be able to draw conclusions from your data within seconds. If there is simply too much information, or it’s hard to find important information, they will lose interest. 

Business Plan Revenue Projection Template

Looking for a business plan software to help save time and reduce errors? Pick from one of these 7 best business plan software to get started.

A quick summary 

A business plan is the one key document that every young business needs to present their vision to potential investors and other stakeholders.

The quality of a business plan can make or break a young business Here’s a quick recap of what we covered for you to keep in mind:

  • Get started with a template
  • Use a table of contents and numbered pages
  • Use lists, bold headings and aim for skimmability
  • Consider using a one-column or two-column
  • Maintain page margins
  • Use headings to identify the most important information
  • Use one thematic color palette for your design
  • Use descriptive titles and annotations
  • Use area and pie charts to explain market size and market share
  • Use pie/donut charts to visualize marketing share and market composition
  • Use bar charts and histograms to capture demographics data
  • Highlight major milestones with a gantt chart
  • Identify your target audience using persona guides
  • Differentiate yourself with a SWOT analysis/competitor chart
  • Use roadmaps to visualize your marketing and sales plans
  • Use flow charts and summary tables for financial breakdowns
  • Use line or bar graphs for financial trends and projection

You can always reference this post as you work on your business plan. I’ve also included additional blog posts you can reference for specific areas of your business plan.

More Resources for business planning and growth:

Growth Strategy Checklist: Plan Your Business Goals With These 5 Templates

Growth Strategy Checklist Template Blog Post Header

What is a Marketing Plan and How to Make One?

marketing plan header

How to Communicate Strategy Effectively Using Visuals [Templates]

communicating strategy header

30+ Business Report Templates That Every Business Needs [+ Design Tips]

30+ Business Report Templates That Every Business Needs

business plan

How to Write a Business Plan in 2023: The Ultimate Guide for Every Entrepreneur

Are you starting a new business or trying to get a loan for your existing venture? If so, you’re going to need to know how to write a business plan. Business plans give entrepreneurs the opportunity to formally analyze and define every aspect of their business idea .

In this post, you’ll learn how to put together a business plan and find the best resources to help you along the way.

building a solid business plan

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building a solid business plan

What is a Business Plan? 

A business plan is a formal document that outlines your business’s goals and how you will achieve those goals. Entrepreneurs who start out with business plans are 16 percent more likely to build successful companies , according to the Harvard Business Review.  Developing a business plan ensures sustainable success, guiding you as you grow your business, legitimizing your venture, and helping you secure funding (among countless other benefits). 

What Are the Main Purposes of a Business Plan?

Most financial institutions and service providers require you to submit a detailed business plan to obtain funding for your business. Online businesses will likely have a low overhead to start, so they may not need funding and therefore may not feel the need to write a business plan. That said, writing a business plan is still a good idea as it can help you secure a drastic increase limit on your credit card as your business grows or open a business account. This varies per bank.

If you’re growing your business, use it to help you raise expansion capital, create a growth strategy, find opportunities, and mitigate risks.Palo Alto software found that companies who make business plans are twice as likely to secure funding . .

→ Click Here to Launch Your Online Business with Shopify

If you’re just starting your business, making a business plan can help you  identify your strengths and weaknesses, communicate your vision to others, and develop accurate forecasts.

business plan format

How to Make a Business Plan: The Prerequisites 

Here are the prerequisites to creating a solid business plan:

  • Establish goals
  • Understand your audience
  • Determine your business plan format
  • Get to writing! 

Establish Goals

There are two key questions to ask here: 

  • What are you hoping to accomplish with your business?
  • What are you hoping to accomplish with your business plan?

Approaching your business plan through that lens will help you focus on the end goal throughout the writing process. These also provide metrics to measure success against. 

Before writing your business plan, gather the content and data needed to inform what goes in it. This includes researching your market and industry – spanning everything from customer research to legalities you’ll need to consider. It’s a lot easier to start with the information already in front of you instead of researching each section individually as you go. 

Turn to guides, samples, and small business plan templates to help. Many countries have an official administration or service dedicated to providing information, resources, and tools to help entrepreneurs and store owners plan, launch, manage, and grow their businesses. 

The following will take you to online business plan guides and templates for specific countries.

  • United States Small Business Administration (SBA) – The “write your business plan page” includes traditional and lean startup business plan formats, three downloadable sample business plans, a template, and a step-by-step build a business plan tool.
  • Australian Government – The “business plan template” page includes a downloadable template, guide, and business plan creation app.
  • UK Government Business and Self-Employed – The “write a business plan” page includes links to a downloadable business plan template and resources from trusted UK businesses. .
  • Canada Business Network – The “writing your business plan” page includes a detailed guide to writing your business plan and links to business plan templates from Canadian business development organizations and banks.

These business resource sites also offer a wealth of valuable information for entrepreneurs including local and regional regulations, structuring, tax obligations, funding programs, market research data, and much more. Visit the sites above or do the following Google searches to find official local business resources in your area:

  • your country government business services
  • your state/province government business services
  • your city government business services

Some Chamber of Commerce websites offer resources for business owners, including business plan guides and templates. Check your local chapter to see if they have any.

Banks that offer business funding also often have a resource section for entrepreneurs. Do a Google search to find banks that offer business funding as well as business plan advice to see the business plans that get funding. If your bank doesn’t offer any advice, search for the largest banks in your area:

  • business plan guide bank name
  • business plan samples bank name
  • business plan template bank name

If you’re looking for more sample business plans, Bplans has over 500 free business plan samples organized by business type as well as a business plan template. Their collection includes 116 business plans for retail and online stores. Shopify also offers business plan templates intended to help small business owners and aspiring entrepreneurs identify functional areas of a business they may not have considered.

building a solid business plan

Understand Your Audience

Because business plans serve different purposes, you’re not always presenting it to the same audience. It’s important to understand who’s going to be reading your business plan, what you’re trying to convince them to do, and what hesitations they might have. 

That way, you can adapt your business plan accordingly. As such, your audience also determines which type of business plan format you use. Which brings us to our next point…

Which Business Plan Format Should You Use? 

The United States Small Business Administration (SBA) presents two business plan formats: 

  • The traditional business plan format is for entrepreneurs who want to create a detailed plan for themselves or for business funding. 
  • The lean startup business plan format, on the other hand, is for business owners that want to create a condensed, single-page business plan.

If the business plan is just for you and internal folks, draft a lean startup business plan or a customized version of the traditional business plan with only the sections you need. If you need it for business funding or other official purposes, choose the formal business plan and thoroughly complete the required sections while paying extra attention to financial projections.

If your business operates outside the U.S., clarify the preferred format with your bank.

How to Create a Business Plan: Questions to Ask Yourself

As you write a business plan, take time to not only analyze your business idea, but yourself as well. Ask the following questions to help you analyze your business idea along the way:

  • Why do I want to start or expand my business?
  • Do my goals (personal and professional) and values align with my business idea?
  • What income do I need to generate for myself?
  • What education, experience, and skills do I bring to my business?

building a solid business plan

How to Write a Business Plan Step by Step

According to the business plan template created by SCORE, Deluxe, and the SBA , a traditional business plan encompasses the following sections. 

  • Executive summary
  • Company description
  • Products & services
  • Market analysis
  • Marketing & sales
  • Management & organization
  • Funding request
  • Financial projections
  • SWOT analysis

Since not everyone is aware of the key details to include in each section, we’ve listed information you can copy to fill in your business plan outline. Here’s how to build a business plan step by step.  

Executive Summary

The Executive Summary is the first part of your business plan, so this is where you need to hook readers in. Every business plan starts this way — even a simple business plan template should kick off with the Executive Summary. Summarize your entire business plan in a single page, highlighting details about your business that will excite potential investors and lenders. 

Explain what your business has to offer, your target market , what separates you from the competition, a little bit about yourself and the core people behind your business, and realistic projections about your business’ success.

While this is the first section of your business plan, write it after you’ve completed the rest of your business plan. It’s a lot easier because you can pull from the sections you’ve already written, and it’s easier to identify the best parts of your business plan to include on the first page.

Company Description

In the Company Description, share 411 about your business. Include basic details like: 

  • Legal structure (sole proprietor, partnership, corporation, etc.)
  • Business and tax ID numbers
  • When the business started
  • Ownership information
  • Number of employees

Your mission statement , philosophy and values, vision, short- and long-term goals, and milestones along with a brief overview of your industry, market, outlook, and competitors should also be in the Company Description.

Pro tip: These are the details you’ll use each time you create a business profile, whether that's on social media, business directories, or other networks. Keep your information consistent to reduce confusion and instill more confidence in potential customers. 

Products & Services

The Products & Services section details what you plan to sell to customers. For a dropshipping business , this section should explain which trending products you’re going to sell, the pain points your products solve for customers, how you’ll price your products compared to your competitors, expected profit margin, and production and delivery details.

Remember to include any unique selling points for specific products or product groupings, such as low overhead, exclusive agreements with vendors, the ability to obtain products that are in short supply / high demand based on your connections, personalized customer service, or other advantages.

For dropshipping businesses selling hundreds or even thousands of products, detail the main categories of products and the number of products you plan to offer within each category. By doing this, it’s easier to visualize your business offerings as a whole to determine if you need more products in one category to fully flesh out your online store.

Market Analysis

The Market Analysis section of your business plan allows you to share the research you have done to learn about your target audience — the potential buyers of your products. People requesting a business plan will want to know that you have a solid understanding of your industry, the competitive landscape, who’s most likely to become your customers. It’s important to demonstrate that  there’s a large enough market for your product to make it profitable and/or to make a strong return on investment .

To complete the Market Analysis component of your business plan, check out the following resources for industry, market, and local economic research:

  • U.S. Embassy websites in most countries have a business section with information for people who want to sell abroad. Business sections include a basic “getting started” guide, links to economic and data reports, trade events, and additional useful business links for a particular region.
  • IBISWorld is a provider of free and paid industry research and procurement research reports for the United States , United Kingdom , Australia , and New Zealand .  
  • Statista offers free and paid statistics and studies from over 18,000 sources including industry reports, country reports, market studies, outlook reports, and consumer market reports.   

Use these websites and others to learn about the projected growth of your industry and your potential profitability. You can also use social media tools like Facebook Audience Insights to estimate the size of your target market on the largest social network

Another way to research your market and products is through Google Trends . This free tool will allow you to see how often people search for the products your business offers over time. Be sure to explain how your business plans to capitalize on increasing and decreasing search trends accordingly.

Marketing & Sales

Knowing your target market is half the battle. In the Marketing & Sales section, share how you plan to reach and sell products to your target market. Outline the marketing and advertising strategies you intend to use to market your product to potential customers – search marketing , social media marketing , email marketing , and influencer marketing methods .

If you’re unsure how to market your business’ products, analyze your competitors for some inspiration. Discovering your competition’s marketing tactics will help you customize your own strategy for building a customer base and ultimately taking your business to the next level. 

Do a Google search for your competitor’s business name to find the websites, social accounts, and content they’ve created to market their products. Look at the ways your competitor uses each online entity to drive new customers to their website and product pages.

Then come up with a plan to convert a similar audience with your marketing and advertising messages. For dropshipping businesses, conversions will typically take place on your website as people purchase your products and/or by phone if you take orders over the phone. 

Management & Organization

In the Management & Organization piece of your business plan, describe the structure of your business. In terms of legal structure and incorporation, most businesses are classified as sole proprietorships (one owner), partnerships (two or more owners), corporations, or S corporations.

Draft a condensed resume for each of the key members of your business. If you’re a solopreneur , include how your past education and work experience will help you run each aspect of your business. If you have one or more partner(s) and employee(s), include their relevant education and experience as well.

Think of this as a great way to evaluate the strengths of each individual running your business. When self-evaluating, you’ll be able to identify the aspects of your business that’ll be easier to manage and which ones to delegate to freelancers, contractors, employees, and third-party services. This also makes it easier to find the best way to utilize their strengths for business growth.

Funding Request

Chances are, you don’t have a funding request for a startup dropshipping business since the appeal to dropshipping is the low upfront investment . If you’re looking for a loan, however, this would be the section where you outline the dollar amount you need, what you plan to invest in, and how you see the return on your investment.

Another way to use this section is to analyze the investment you have or plan to make when starting or growing your business. This should include everything from the computer you use to run your website to the monthly fee for business services.

Financial Projections

In Financial Projections, share your projected revenue and expenses for the first or next five years of your business. The idea here is to demonstrate that the revenue you’re anticipating will easily lead to a return on any investment, whether from your personal finances or a capital lending service.

building a solid business plan

If you’re looking for funding, you’ll need to go into detail with projected income statements, balance sheets, cash flow statements, and capital expenditure budgets. If you aren’t looking for funding, it won’t hurt to create these types of financial projections so you can realistically plan for the future of your business.

The Appendix of your business plan includes any supplemental documents needed throughout the sections of your business plan. These may include, but are not limited to: 

  • Credit histories
  • Product brochures
  • Legal forms
  • Supplier contracts

If you’re submitting your business plan for funding, contact the lender to see what documentation they want included with your funding request.

SWOT Analysis

In addition to the above sections, some business plans also include a SWOT Analysis. This is a one-page summary of your business’s strengths, weaknesses, opportunities, and threats. The strengths and weaknesses you include will be internal, whereas opportunities and threats you include will be external. 

Depending on the revelations of this section, you may or may not want to make a SWOT analysis when submitting your business plan formally unless it is requested.

building a solid business plan

Summary: How to Create a Business Plan

As you can see, creating a business plan for your dropshipping business is a great way to validate your business idea , discover your business’s strengths and weaknesses, and make a blueprint for your business's future.

In summary, here are the sections you will need to write for your business plan, step by step:

  • SWOT analysis (Optional)

If you haven’t already, take the time to create a business plan to launch or grow your business in 2023!

Want to Learn More?

  • How to Start a Dropshipping Business
  • How to Register a Business in the USA
  • How to Launch Your Ecommerce Store in Less Than 30 Minutes Flat
  • 30+ Amazing Startup Business Ideas That’ll Make You Money

building a solid business plan

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What Is a Business Plan?

Understanding business plans, how to write a business plan, common elements of a business plan, how often should a business plan be updated, the bottom line, business plan: what it is, what's included, and how to write one.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

building a solid business plan

A business plan is a document that details a company's goals and how it intends to achieve them. Business plans can be of benefit to both startups and well-established companies. For startups, a business plan can be essential for winning over potential lenders and investors. Established businesses can find one useful for staying on track and not losing sight of their goals. This article explains what an effective business plan needs to include and how to write one.

Key Takeaways

  • A business plan is a document describing a company's business activities and how it plans to achieve its goals.
  • Startup companies use business plans to get off the ground and attract outside investors.
  • For established companies, a business plan can help keep the executive team focused on and working toward the company's short- and long-term objectives.
  • There is no single format that a business plan must follow, but there are certain key elements that most companies will want to include.

Investopedia / Ryan Oakley

Any new business should have a business plan in place prior to beginning operations. In fact, banks and venture capital firms often want to see a business plan before they'll consider making a loan or providing capital to new businesses.

Even if a business isn't looking to raise additional money, a business plan can help it focus on its goals. A 2017 Harvard Business Review article reported that, "Entrepreneurs who write formal plans are 16% more likely to achieve viability than the otherwise identical nonplanning entrepreneurs."

Ideally, a business plan should be reviewed and updated periodically to reflect any goals that have been achieved or that may have changed. An established business that has decided to move in a new direction might create an entirely new business plan for itself.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. These include being able to think through ideas before investing too much money in them and highlighting any potential obstacles to success. A company might also share its business plan with trusted outsiders to get their objective feedback. In addition, a business plan can help keep a company's executive team on the same page about strategic action items and priorities.

Business plans, even among competitors in the same industry, are rarely identical. However, they often have some of the same basic elements, as we describe below.

While it's a good idea to provide as much detail as necessary, it's also important that a business plan be concise enough to hold a reader's attention to the end.

While there are any number of templates that you can use to write a business plan, it's best to try to avoid producing a generic-looking one. Let your plan reflect the unique personality of your business.

Many business plans use some combination of the sections below, with varying levels of detail, depending on the company.

The length of a business plan can vary greatly from business to business. Regardless, it's best to fit the basic information into a 15- to 25-page document. Other crucial elements that take up a lot of space—such as applications for patents—can be referenced in the main document and attached as appendices.

These are some of the most common elements in many business plans:

  • Executive summary: This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations.
  • Products and services: Here, the company should describe the products and services it offers or plans to introduce. That might include details on pricing, product lifespan, and unique benefits to the consumer. Other factors that could go into this section include production and manufacturing processes, any relevant patents the company may have, as well as proprietary technology . Information about research and development (R&D) can also be included here.
  • Market analysis: A company needs to have a good handle on the current state of its industry and the existing competition. This section should explain where the company fits in, what types of customers it plans to target, and how easy or difficult it may be to take market share from incumbents.
  • Marketing strategy: This section can describe how the company plans to attract and keep customers, including any anticipated advertising and marketing campaigns. It should also describe the distribution channel or channels it will use to get its products or services to consumers.
  • Financial plans and projections: Established businesses can include financial statements, balance sheets, and other relevant financial information. New businesses can provide financial targets and estimates for the first few years. Your plan might also include any funding requests you're making.

The best business plans aren't generic ones created from easily accessed templates. A company should aim to entice readers with a plan that demonstrates its uniqueness and potential for success.

2 Types of Business Plans

Business plans can take many forms, but they are sometimes divided into two basic categories: traditional and lean startup. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

  • Traditional business plans : These plans tend to be much longer than lean startup plans and contain considerably more detail. As a result they require more work on the part of the business, but they can also be more persuasive (and reassuring) to potential investors.
  • Lean startup business plans : These use an abbreviated structure that highlights key elements. These business plans are short—as short as one page—and provide only the most basic detail. If a company wants to use this kind of plan, it should be prepared to provide more detail if an investor or a lender requests it.

Why Do Business Plans Fail?

A business plan is not a surefire recipe for success. The plan may have been unrealistic in its assumptions and projections to begin with. Markets and the overall economy might change in ways that couldn't have been foreseen. A competitor might introduce a revolutionary new product or service. All of this calls for building some flexibility into your plan, so you can pivot to a new course if needed.

How frequently a business plan needs to be revised will depend on the nature of the business. A well-established business might want to review its plan once a year and make changes if necessary. A new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.

What Does a Lean Startup Business Plan Include?

The lean startup business plan is an option when a company prefers to give a quick explanation of its business. For example, a brand-new company may feel that it doesn't have a lot of information to provide yet.

Sections can include: a value proposition ; the company's major activities and advantages; resources such as staff, intellectual property, and capital; a list of partnerships; customer segments; and revenue sources.

A business plan can be useful to companies of all kinds. But as a company grows and the world around it changes, so too should its business plan. So don't think of your business plan as carved in granite but as a living document designed to evolve with your business.

Harvard Business Review. " Research: Writing a Business Plan Makes Your Startup More Likely to Succeed ."

U.S. Small Business Administration. " Write Your Business Plan ."

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How to write a business plan in seven simple steps

When written effectively, a business plan can help raise capital, inform decisions, and draw new talent.

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Writing a business plan is often the first step in transforming your business from an idea into something tangible . As you write, your thoughts begin to solidify into strategy, and a path forward starts to emerge. But a business plan is not only the realm of startups; established companies can also benefit from revisiting and rewriting theirs. In any case, the formal documentation can provide the clarity needed to motivate staff , woo investors, or inform future decisions.  

No matter your industry or the size of your team, the task of writing a business plan—a document filled with so much detail and documentation—can feel daunting. Don’t let that stop you, however; there are easy steps to getting started. 

What is a business plan and why does it matter? 

A business plan is a formal document outlining the goals, direction, finances, team, and future planning of your business. It can be geared toward investors, in a bid to raise capital, or used as an internal document to align teams and provide direction. It typically includes extensive market research, competitor analysis, financial documentation, and an overview of your business and marketing strategy. When written effectively, a business plan can help prescribe action and keep business owners on track to meeting business goals. 

Who needs a business plan?

A business plan can be particularly helpful during a company’s initial growth and serve as a guiding force amid the uncertainty, distractions, and at-times rapid developments involved in starting a business . For enterprise companies, a business plan should be a living, breathing document that guides decision-making and facilitates intentional growth.

“You should have a game plan for every major commitment you’ll have, from early-stage founder agreements to onboarding legal professionals,” says Colin Keogh, CEO of the Rapid Foundation—a company that brings technology and training to communities in need—and a WeWork Labs mentor in the UK . “You can’t go out on funding rounds or take part in accelerators without any planning.”

How to make a business plan and seven components every plan needs

While there is no set format for writing a business plan, there are several elements that are typically included. Here’s what’s important to consider when writing your business plan. 

1. Executive summary 

No longer than half a page, the executive summary should briefly introduce your business and describe the purpose of the business plan. Are you writing the plan to attract capital? If so, specify how much money you hope to raise, and how you’re going to repay the loan. If you’re writing the plan to align your team and provide direction, explain at a high level what you hope to achieve with this alignment, as well as the size and state of your existing team.

The executive summary should explain what your business does, and provide an introductory overview of your financial health and major achievements to date.  

2. Company description 

To properly introduce your company, it’s important to also describe the wider industry. What is the financial worth of your market? Are there market trends that will affect the success of your company? What is the state of the industry and its future potential? Use data to support your claims and be sure to include the full gamut of information—both positive and negative—to provide investors and your employees a complete and accurate portrayal of your company’s milieu. 

Go on to describe your company and what it provides your customers. Are you a sole proprietor , LLC, partnership, or corporation? Are you an established company or a budding startup? What does your leadership team look like and how many employees do you have? This section should provide both historical and future context around your business, including its founding story, mission statement , and vision for the future. 

It’s essential to showcase your point of difference in your company description, as well as any advantages you may have in terms of expert talent or leading technology. This is typically one of the first pieces of the plan to be written.

3. Market analysis and opportunity

Research is key in completing a business plan and, ideally, more time should be spent on research and analysis than writing the plan itself. Understanding the size, growth, history, future potential, and current risks inherent to the wider market is essential for the success of your business, and these considerations should be described here. 

In addition to this, it’s important to include research into the target demographic of your product or service. This might be in the form of fictional customer personas, or a broader overview of the income, location, age, gender, and buying habits of your existing and potential customers. 

Though the research should be objective, the analysis in this section is a good place to reiterate your point of difference and the ways you plan to capture the market and surpass your competition.

4. Competitive analysis 

Beyond explaining the elements that differentiate you from your competition, it’s important to provide an in-depth analysis of your competitors themselves.

This research should delve into the operations, financials, history, leadership, and distribution channels of your direct and indirect competitors. It should explore the value propositions of these competitors, and explain the ways you can compete with, or exploit, their strengths and weaknesses. 

5. Execution plan: operations, development, management 

This segment provides details around how you’re going to do the work necessary to fulfill this plan. It should include information about your organizational structure and the everyday operations of your team, contractors, and physical and digital assets.

Consider including your company’s organizational chart, as well as more in-depth information on the leadership team: Who are they? What are their backgrounds? What do they bring to the table? Potentially include the résumés of key people on your team. 

For startups, your execution plan should include how long it will take to begin operations, and then how much longer to reach profitability. For established companies, it’s a good idea to outline how long it will take to execute your plan, and the ways in which you will change existing operations.

If applicable, it’s also beneficial to include your strategy for hiring new team members and scaling into different markets. 

6. Marketing plan 

It’s essential to have a comprehensive marketing plan in place as you scale operations or kick off a new strategy—and this should be shared with your stakeholders and employees. This segment of your business plan should show how you’re going to promote your business, attract customers, and retain existing clients.

Include brand messaging, marketing assets, and the timeline and budget for engaging consumers across different channels. Potentially include a marketing SWOT analysis into your strengths, weaknesses, opportunities, and threats. Evaluate the way your competitors market themselves, and how your target audience responds—or doesn’t respond—to these messages.

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7. Financial history and projections  

It’s essential to disclose all finances involved in running your company within your business plan. This is so your shareholders properly understand how you’re projected to perform going forward, and the progress you’ve made so far. 

You should include your income statement, which outlines annual net profits or losses; a cash flow statement, which shows how much money you need to launch or scale operations; and a balance sheet that shows financial liabilities and assets. 

“An income statement is the measure of your financial results for a certain period and the most accurate report of business activities during that time, [whereas a balance sheet] presents your assets, liabilities, and equity,” Amit Perry, a corporate finance expert, explained at a WeWork Labs educational session in Israel.

It’s crucial to understand the terms correctly so you know how to present your finances when you’re speaking to investors. Amit Perry, CEO and founder of Perryllion Ltd.

In addition, if you’re asking for funding, you will need to outline exactly how much money you need as well as where this money will go and how you plan to pay it back. 

12 quick tips for writing a business plan 

Now that you know what components are traditionally included in a business plan, it’s time to consider how you’ll actually construct the document.

Here are 12 key factors to keep in mind when writing a business plan. These overarching principles will help you write a business plan that serves its purpose (whatever that may be) and becomes an easy reference in the years ahead. 

1. Don’t be long-winded

Use clear, concise language and avoid jargon. When business plans are too long-winded, they’re less likely to be used as intended and more likely to be forgotten or glazed over by stakeholders. 

2. Show why you care

Let your passion for your business shine through; show employees and investors why you care (and why they should too). 

3. Provide supporting documents

Don’t be afraid to have an extensive list of appendices, including the CVs of team members, built-out customer personas, product demonstrations, and examples of internal or external messaging. 

4. Reference data

All information regarding the market, your competitors, and your customers should reference authoritative and relevant data points.  

5. Research, research, research

The research that goes into your business plan should take you longer than the writing itself. Consider tracking your research as supporting documentation. 

6. Clearly demonstrate your points of difference

At every opportunity, it’s important to drive home the way your product or service differentiates you from your competition and helps solve a problem for your target audience. Don’t shy away from reiterating these differentiating factors throughout the plan. 

7. Be objective in your research

As important as it is to showcase your company and the benefits you provide your customers, it’s also important to be objective in the data and research you reference. Showcase the good and the bad when it comes to market research and your financials; you want your shareholders to know you’ve thought through every possible contingency. 

8. Know the purpose of your plan

It’s important you understand the purpose of your plan before you begin researching and writing. Be clear about whether you’re writing this plan to attract investment, align teams, or provide direction. 

9. Identify your audience

The same way your business plan must have a clearly defined purpose, you must have a clearly defined audience. To whom are you writing? New investors? Current employees? Potential collaborators? Existing shareholders? 

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10. Avoid jargon

Avoid using industry-specific jargon, unless completely unavoidable, and try making your business plan as easy to understand as possible—for all potential stakeholders. 

11. Don’t be afraid to change it

Your business plan should evolve with your company’s growth, which means your business plan document should evolve as well. Revisit and rework your business plan as needed, and remember the most important factor: having a plan in place, even if it changes.

A business plan shouldn’t just be a line on your to-do list; it should be referenced and used as intended going forward. Keep your business plan close, and use it to inform decisions and guide your team in the years ahead. 

Creating a business plan is an important step in growing your company 

Whether you’re just starting out or running an existing operation, writing an effective business plan can be a key predictor of future success. It can be a foundational document from which you grow and thrive . It can serve as a constant reminder to employees and clients about what you stand for, and the direction in which you’re moving. Or, it can prove to investors that your business, team, and vision are worth their investment. 

No matter the size or stage of your business, WeWork can help you fulfill the objectives outlined in your business plan—and WeWork’s coworking spaces can be a hotbed for finding talent and investors, too. The benefits of coworking spaces include intentionally designed lounges, conference rooms, and private offices that foster connection and bolster creativity, while a global network of professionals allows you to expand your reach and meet new collaborators. 

Using these steps to write a business plan will put you in good stead to not only create a document that fulfills a purpose but one that also helps to more clearly understand your market, competition, point of difference, and plan for the future. 

For more tips on growing teams and building a business, check out all our articles on  Ideas by WeWork.

Caitlin Bishop is a writer for WeWork’s  Ideas by WeWork , based in New York City. Previously, she was a journalist and editor at  Mamamia  in Sydney, Australia, and a contributing reporter at  Gotham Gazette .

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5 Steps to Developing a Solid Business Plan

Choncé maddox.

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You have a great business idea and want to jump right in. The one thing holding you back may be lack of a clear business plan . While some would say having a business plan is an absolute must, others would argue that you can get started and be successful without one.

I think the answer lies in how confident you are in your idea and how organized you are in terms of executing it. If you already have a clear plan in your head along with the steps you need to take and the means to take them, you may not see the need to create a 20-page business plan.

On the flip side, if your idea lacks clarity and you are considering seeking out funding from others sources, it would be best if you came up with a solid business plan. The good news, is that you can sit down and create a business plan in under a day. It doesn’t have to be super extensive so long as you hit all your main points and follow stick to outlining these steps.

Table of Contents

1. Executive Summary

The executive summary is the first part of your business plan. This is where you capture the reader’s attention be explaining the specifics of your business. What is the name? What will you be doing? What is the mission of your business and what are your goals?

Be sure to include what makes your business unique and summarize why you feel it will succeed.

2. Market Analysis

Next you want to analyze the market in order to prove that there is a need and target audience for your business. This is a great way to validate your business idea as well. If you can’t narrow down your target market or find that they aren’t interested in what you are offering, that could be a huge red flag.

Be sure to clarify who you wish to serve along with some detailed statistics that describe them, their interests, what products and services they buy, along with and their needs and wants.

3. Financial Projections

The financial projections section is where you get to have some fun with numbers. Map out the financial progress you plan to make with your business over the next 3-5 years. Include revenue goals and you might want to specify how much you’d need from an investor or a loan to bring those goals to fruition.

This is also a great place to mention various different start-up costs you’ll have so investors can know why you need money to support your business.

4. Organizational Structure

Have you ever thought about how your business will operate and be structured? Will you act as the CEO? Will you have a team or hire interns ? Will you eventually need to work with accounting, sales, and marketing experts? Or will you be more of a solopreneur.

This is a great section to answer all of those questions and map out how you might expect your business to grow in the future and which roles you’ll have and need.

5. Products or Services

Finally, in step 5 you want to go into more detail about your products and services. Most people start with this step (especially if they don’t consider making a business plan) but it’s best to end here after you’ve covered your bases in the previous steps.

Discuss what makes your product or service unique and how you plan to execute it in a competitive marketplace. If you’re going to be selling products include descriptions and images along with whether you’d need to trademark anything.

A business plan can be a crucial tool to help you get organized and perform neccessary research before moving forward with your new venture. If you’re considering asking for funding or financial assistance, a solid business plan is usually a requirement.

Even so, it’s a great way to get crystal clear on your goals and intentions so you can focus in on carrying out your plans and being successful.

Choncé Maddox

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A Comprehensive Guide to Creating a Solid Business Plan

Business plans aren’t just helpful ways to get a loan. Start drafting yours now.

In order to create a successful company, you need a solid business plan. Some people try to skip this step and jump right into the nuts and bolts of starting a business. Others think that you only need a business plan if you’re applying for a loan. While that’s one valid reason to create a thorough business plan, it’s by no means the only one. A business plan clarifies your goals and helps you proceed in an organized manner.

Here’s how to get started, and what to include.

Why You Need a Business Plan

Before we discuss some tips for actually creating a workable business plan, let’s look at why you need one in the first place.

  • Identify your goals and methods.  The main function of a business plan is to clarify the center purpose of your business and how you are going to run it. It will also cover issues such as your products, target markets and promotional strategies.
  • Raise capital.  You definitely need a business plan if you plan to raise money or get a loan. This goes not only for borrowing from banks and other financial institutions, but for anyone who might lend you money.
  • Create a unified strategy.  If you have partners, it’s important that everyone shares the same vision. When you start writing everything down, any differences of opinion become immediately clear and you can work them out.

What to Include in Your Business Plan

Too many business plans are vague or leave out essential information. This should be a concise document, not a meandering essay. There are certain characteristics that every business plan should include:

  • Who, What, Where and How.  List who is involved in your business and where it’s located (if it has a physical location). Describe what the business will do on a day to day basis — e.g. make t-shirts, create content for websites, repair jewelry — as well as any equipment that will be used. Finally, discuss your main marketing strategy.
  • Your Market.  Who is your target market? What is the current state of this industry and who is your main competition? These questions are vital for yourself as well as any possible investors.
  • Financials.  How much capital do you need to get started? What are your expenses? What are your expected sales? What is your profit margin? Create a cash flow statement that is as realistic as possible.

These are fundamental points to include in your business plan. If you’ve never created one before, you should look over some existing business plan templates.

Remember to Be Realistic

One of the most important qualities of a good business plan is realism. There are millions of business plans written each year; some are highly accurate in terms of their projections, while others are more fanciful.

You have the challenge of writing a detailed description of something that does not yet exist. This can make it tempting to be overly optimistic in your predictions. You should avoid this temptation, as it will cause you to lose credibility with investors. Even worse, it will make it more difficult for you to succeed, as you might be ignoring practical considerations that are likely to limit your cash flow or profits.

When creating a business plan, be as conservative as possible. Although you don’t want to be pessimistic when starting a new business — if you weren’t optimistic about your endeavor you wouldn’t be starting it — you also have to be thorough and down to earth in your approach. Many new businesses underestimate things like expenses and the amount of time it takes to accomplish basic tasks (such as setting up a retail store, building a website, getting a new product ready for the market, etc.). They may also overestimate demand for their product or service.

Do Your Research

Researching your market and competition is one of the best ways to prepare for creating a viable business plan. This is what allows you to make realistic projections on sales and cash flow. It also informs you regarding your competition and what you need to do to capture your share of the market.

Your business plan is the blueprint of your business. Just as the blueprint for a building ensures that the structure will be stable, a business plan guides you through the early stages of your enterprise. This is equally essential for you and any prospective partners or investors.

Shawn Porat

CEO Scorely

Shawn Porat founded Scorely and Judgment Marketplace. Contributed to Forbes, Time and Money Magazine.

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  • The Dos and Don’ts of Writing a Solid Business Plan

Business Plans 201: The dos and don’ts of writing a solid business plan

building a solid business plan

We get it. That new business or venture that you’ve been dreaming about can be nerve-racking, but it’s possible. 

Starting a new business starts with an idea which comes to life with a strong business plan. Your business plan is more than a piece of paper or a writing exercise. It’s a roadmap that will keep you focused and give you a baseline for measuring success and achieving your goals. 

It isn’t a fixed or final artifact. Instead, think of it as a living document that you’ll revisit, learn from and adjust as your business grows. 

Writing your plan at first may take a lot of effort and it’s normal to go through several drafts. Consult your advisory team as they can support your plan’s development. And your plan will develop as you get new ideas, make new decisions and learn about changing business developments. 

Your plan is also key to unlocking funding. Whether you finance your business or solicit investors, either party will want to learn more about your plan before they invest. Effective language is key to communicating your business plan successfully to potential investors.

Follow these guidelines to start writing a solid business plan that communicates your vision and speaks to your audience.

The “dos” for writing a solid business plan

Be professional yet simple.

Writing with a professional tone allows investors to appreciate your vision and understand your short- and long-term goals. At the same time, it’s best to write in a simple manner. Aim for your plan to be understood by a non-expert. Replace jargon with active verbs. You can always get your final draft edited by a professional.

Refer to your business in third person

Writing in third person allows objectivity which can be more convincing and accepted by audiences like banks and investors. Avoid using “we” or “I” throughout your business plan. Writing in first person may come across as too personal. Remember to keep it business, not personal.

Be direct throughout your plan. Avoid ambiguous or vague language. Being direct allows you to be convincing about the steps you’ll take to bring your idea to life.

Supply evidence 

Do your research and present data to support your case. Showing statistics about your business, competitors, customers and industry allows investors to get a bigger picture of the survival and growth of your business.

Be realistic 

Avoid adding assumptions in your business plan. Instead of over-promising, show solid data backed up by research on how your business can be successful.

Practice makes perfect

Read your business plan out loud. Ask yourself these questions: Does it sound effective? Does it have the tone of confidence? Is it easily understood by your audience? What are the strengths and opportunities to tackle in your plan? Have a friend read your plan and summarize it back to you .

Be optimistic

The language of your business plan should be assertive, yet optimistic. Allow your passion to shine through in your business plan and show your advisor that you’re serious about bringing your vision to life.

The “don’ts ” of writing your business plan

Avoid acronyms and abbreviations.

Use industry specific abbreviations and acronyms only if necessary and if they’re part of your business operations. 

Don’t assume the reader knows your industry

Investors and advisors are here to support you. Allow them to understand what industry your business lives in. Provide in-depth knowledge of your industry so they can understand your business functions.

Don’t turn it into an essay

When writing your business plan and conducting industry research, sometimes it’s easy to get sidetracked and turn your plan into an essay. Make sure your business plan has a solid focus and includes all the required information. 

Avoid extensive research

Use only credible sources and findings for your research and analysis. It’s a great practice to use government-issued statistics and data. Use this data in your own language for business projections and goals. Simplicity is key.

Don’t be repetitive

Avoid repeating yourself throughout the plan. You can do this by reading your plan out loud and removing duplicate ideas. Include the key points and messages you need to relay.

Don’t forget about it

Be proactive and don’t forget to follow up with your advisor within the right time frame. Communicate with your advisory team and take advantage of your relationships with your investors, business partners and CIBC business advisor. 

Updating your business plan on a quarterly basis is a great practice for staying on track of your business growth. Our team is here to support you as you develop your plan and assemble your team.

To create a tailored plan for your business needs and help you achieve your goals, meet with us opens in a new window. . We’re here to help. Talk to a CIBC Business Advisor today by calling 1-866-992-7223 . Opens your phone app.

building a solid business plan

Written By Lauren Rabindranath

Lauren Rabindranath is a copywriter and communications consultant based in Toronto, Ontario, who works with clients across industries. Working with CIBC Business Banking, Lauren supports content development for online platforms, relating her personal experience as an entrepreneur to CIBC’s tailored services.

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How to Build the Best Business Plan Ever: Step-by-Step Guide

By Diane Amato

building a solid business plan

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Published March 21, 2023 • 8 Min Read

Creating a business plan is a crucial task for any business, and one which requires you to be thoughtful about the direction of your business, consider the goals most important to you, and how you will go about achieving them.

A solid business plan will give you the confidence that you will find success, and may even reveal some gaps and risks. In fact, studies show entrepreneurs who start with a written business plan are more successful than those who don’t.

Whether you’re creating a roadmap to follow as a new business owner, need a pitch to attract investors or a document to engage stakeholders, a business plan is a living document you’ll want to update regularly as your business, goals and circumstances evolve.

While some business owners consider writing a business plan an overwhelming step, it doesn’t have to be. Creating the best business plan ever is a matter of breaking it down into individual steps — and then taking them one at a time.

7 steps to building a business plan.

1. introduction.

The substance of your introductory section (beyond your cover page and table of contents) is the Executive Summary . The Executive Summary should identify what your business does, covering:

Your industry and target market(s)

Your company’s goals

How you stand out from your competition

Whether your business is a sole proprietorship, partnership or incorporated business

The stage of your business — whether it is a start-up or already in operation

Your team’s experience and credentials

Your projected financial performance

While your Executive Summary has to work hard, it should be clear and to the point, grabbing the reader’s attention and compelling them to read more — a good rule of thumb is to keep this section to one page. While the Executive Summary is structurally the first section of your plan, many owners will write it last, since it’s a summary of everything else you’ve written about.

Important things to consider as a new business owner

Because you’re a new business owner, your bank and potential investors don’t have historical data to review. Your plan therefore must clearly convey your strategy, competencies and the reasons your venture will be successful.

Detailed, well-thought-out financial projections are an important component of your business plan. You’ll want to show how your business could service debt, how you’ll drive revenue and detail both fixed and variable costs.

As you write your plan, focus on your competitive advantage — what separates you from other businesses, your key success factors, your team and areas of opportunity and focus over the next six to 18 months.

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2. The Business Environment

This Business Environment section sets out the history and summary of your business in detail, identifying what you’re selling and how you’re solving a problem or need in the market. If your business is already established, you’ll want to cover its path to this point — where you started and how you got here. If you’re starting a new business, be sure to include any pre-market research or testing you’ve conducted that speaks to the viability of your idea.

You will also want to highlight the industry trends and growth prospects, as well as how your business fits into the current environment. Identifying your competition and how you stand apart from them will also help you determine your position within the industry.

Considerations for seasoned business owners

Your business plan should identify what differentiates your business from others, what’s working (and what’s not) and outline costs, efficiencies, competitors and objectives.

As an important vehicle to help you secure funding, your business plan should include cash flow projections and the objectives for the management team – including expansion opportunities, asset accumulation and projected financing needs.

As you’re writing or revising your plan, identify the teams who support you, your talent pipeline, your succession plan and your plan to remain competitive in an increasingly competitive environment.

3. The Marketing Plan — Where you want to go and how you will get there

Your Marketing Plan explains how you’re going to get your customers to buy your products or services. Part of this exercise involves defining your target market — the group of customers you want to sell to. Your Marketing Plan should also include:

Your products, service and unique selling proposition (USP).  What are the features of your product or service and what makes it unique? How is it different from what your competitors offer?

Your pricing strategy.  Determining the price to charge can seem tricky – you want it to be competitive but still make a reasonable profit. Calculating your costs, estimating the benefits to customers and comparing your offering to others can help you come up with the price

Your sales and delivery strategy.  How will your product or service get to your customers? And how much will it cost? How will you manage your inventory and transaction processing?

Your advertising and promotion strategy.  Here you’ll want to describe how you’re going to deliver your unique selling proposition to your prospective customers. Start by thinking about the message you want to deliver and the advertising and promotional tactics you’ll use (e.g., company website, social media, emails, radio, etc.) to reach your audience most effectively and efficiently. Be sure to prioritize your activities and budget for them accordingly.

4. Operations

The Operations section of your business plan describes what’s physically necessary for your business.

This section contains two main categories:

Your stage of development: This should highlight what you’ve done to date to get your business operational, then an explanation of what still needs to be done.

The production process: This lays out the details of your business’s day-to-day operations, including your hours of operation, and manufacturing details such as facility, equipment and material requirements, inventory, costs and more.

5. Financing and Cash Flow Planning

The Financing and Cash Flow Planning section is your opportunity to determine how strong the financials are for your business. Be realistic about your expenses and projected income so you can properly assess your business’ financial health as early as possible.

If you’re running an existing business, your goal for the Financing and Cash Flow Planning section is to address three main financial areas:

Your cash flow statement: how much money your business has at a particular point in time

Your income statement: your profit and loss for a period of time

Your balance sheet: a financial snapshot of your business

In order to do that you’ll need to calculate your income and your expenses — both your one-time and ongoing operating costs.

If you haven’t started your business yet, you will only be able to populate your expenses, which are important to calculate ahead of time as they will reveal how much start-up financing you may need to get your business up and running.

6. The Team

Great ideas need great teams behind them, so this section should describe your current team as well as anyone you might need to hire for your company. Be sure to address your own background, skills and strengths. Include detailed management team profiles, credentials of your Board of Advisors (if you have one), and the professional partners you have relationships with, such as lawyers, accountants, bankers and any consultants.

An overview of your Human Resources processes, which will address labour, compensation, training and other operational aspects of managing your people, can round out this section.

7. Risks and Conclusions

Every business comes with some risk — so it’s better to be prepared for risks now rather than be surprised by them later. In this section, include all the possible risks your business could face. This may include the economy, your competition, potential supply chain disruptions, losing key team members or security issues. You’ll then want to detail how you plan to address these risks if they occur.

In the Conclusions section, restate your goals and objectives. If the purpose of your business plan is to get financing, you will want to clearly state the amount required and what it will be used for. As with your Executive Summary, your conclusion should be succinct, clear and leave a positive impression on the reader.

Keep in mind, your business plan is a living, breathing document that should be regularly revisited — regardless of whether you are a new owner or run an established business.

You’ll want to review your plan to understand how your goals, priorities, competitive environment and operating model are coming together to deliver on your ambitions. And, as the more business planning and sales forecasting become part of your routine, the more prepared you will be to make strategic decisions to drive the business outcomes you’re striving for. The result is greater confidence and agility to take on new challenges and opportunities as they appear.

Diane Amato is a Toronto-based freelance writer who loves to talk about finances, travel and technology.

Things our lawyers want you to know Things our lawyers want you to know

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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How To Write a Business Plan for Building Materials Supplier in 9 Steps: Checklist

By alex ryzhkov, resources on building materials supplier.

  • Financial Model
  • Business Plan
  • Value Proposition
  • One-Page Business Plan

Welcome to our blog post on how to write a business plan for a building materials supplier! With the growing demand for eco-friendly and sustainable building practices, this industry is experiencing significant growth. In fact, according to recent industry reports, the global green building materials market is projected to reach a value of over $595 billion by 2027, registering a CAGR of 11.2%.

Whether you're an entrepreneur looking to start your own building materials supply business or an existing supplier wanting to expand your offerings, a well-crafted business plan is vital for success. In this post, we'll guide you through nine essential steps to help you develop a comprehensive business plan for your venture.

Step 1: Identify your target market

Step 2: Conduct in-depth market research

Step 3: Assess your competition

Step 4: Define your unique selling proposition

Step 5: Determine your pricing strategy

Step 6: Outline your marketing and sales strategies

Step 7: Develop a detailed budget and financial projections

Step 8: Secure necessary funding sources

Step 9: Gather legal and regulatory information

Each of these steps is crucial for building a solid foundation for your business. By following this checklist, you'll be well-equipped to tackle the challenges and opportunities that come your way in the building materials supply industry.

Stay tuned as we dive deeper into each step in upcoming blog posts. Whether you're a seasoned business professional or a newcomer to the industry, this series will provide valuable insights to ensure your business plan sets you up for success.

Identify Target Market

The first step in writing a business plan for a building materials supplier is to identify your target market . This involves determining who your ideal customers are and understanding their needs and preferences. By clearly defining your target market, you can tailor your products and services to meet their specific requirements, which will increase the chances of success for your business.

When identifying your target market, consider factors such as demographics (age, gender, location, income level), psychographics (values, interests, lifestyle), and behavior (buying patterns, preferences, brand loyalty). This information will help you create customer profiles or buyer personas that accurately represent your target audience.

Tips for identifying your target market:

  • Conduct market research to gather data on potential customers and their preferences.
  • Observe the trends and demands in the construction industry, especially regarding eco-friendly and sustainable building materials.
  • Utilize online tools and platforms to gather insights about your target market, such as social media analytics and keyword research.
  • Consider surveying your potential customers to gain direct feedback and understand their pain points.
  • Segment your target market into different groups based on specific criteria to create targeted marketing campaigns.

By identifying your target market and understanding their needs, you can develop effective marketing strategies, create compelling messaging, and differentiate your business from competitors in the building materials industry.

Conduct Market Research

Market research is a crucial step in developing a business plan for a building materials supplier. It involves gathering and analyzing data to understand your target market, industry trends, customer preferences, and competitive landscape. By conducting market research, you can make informed decisions and develop effective strategies to position your business for success.

Here are the key steps to conducting market research:

  • Define your objectives: Clearly outline what you want to achieve with your research. Are you looking to identify potential customers, understand market trends, or assess the demand for eco-friendly building materials?
  • Identify your target market: Determine the specific segment of construction companies and DIY renovators that you want to target. Consider factors such as location, size, and preferences.
  • Collect primary research: Use methods like surveys, interviews, or focus groups to directly gather information from your target market. This will provide you with valuable insights into their needs, preferences, and buying behaviors.
  • Collect secondary research: Explore existing data sources, such as industry reports, market studies, and competitor analysis, to gain a broader understanding of the building materials market. This information can validate your assumptions and provide context for your business plan.
  • Analyze the data: Organize and evaluate the collected data to identify patterns, trends, and opportunities. Use statistical tools or software to generate meaningful insights from the gathered information.
  • Identify market gaps: Determine areas where demand for eco-friendly and sustainable building materials is not being adequately met. This knowledge will help you position your business as a solution provider in those segments.
  • Assess customer preferences: Understand the factors that drive customers to choose eco-friendly building materials. Consider aspects like price, quality, durability, and environmental impact. This knowledge will guide your product selection and marketing strategies.
  • Evaluate the competitive landscape: Analyze your direct and indirect competitors to identify their strengths, weaknesses, and market share. Assess their pricing strategies, product offerings, and customer service to identify opportunities for differentiation and competitive advantage.

Tips for conducting market research:

  • Start by exploring online resources, industry publications, and trade associations to gather preliminary information about the building materials industry.
  • Consider leveraging social media platforms to engage with potential customers and gain insights into their preferences and pain points.
  • Collaborate with industry experts, consultants, or research firms to gain access to specialized knowledge and resources.
  • Regularly update your market research to stay informed about evolving trends and customer needs.

Assess Competition

Assessing the competition is a crucial step in developing a business plan for a building materials supplier. Understanding your competitors will help you identify gaps in the market and differentiate your business from others. Here are some important aspects to consider when assessing the competition:

  • Identify Competitors: Begin by identifying your direct competitors, such as other suppliers of eco-friendly and sustainable building materials. Additionally, consider indirect competitors, such as traditional building material suppliers who may also offer green alternatives.
  • Analyze Competitor Strengths and Weaknesses: Evaluate your competitors' strengths and weaknesses in terms of product offerings, pricing, marketing strategies, customer service, and brand reputation. This analysis will help you understand the areas where your business can gain a competitive advantage.
  • Examine Market Share: Determine the market share held by your competitors and analyze their customer base. This information will give you insights into the market potential and help you plan your marketing and sales strategies accordingly.
  • Gather Customer Feedback: Seek feedback from customers who have chosen your competitors' products or services. Understand the reasons behind their preferences and take note of any shortcomings mentioned. This information will guide you in refining your own offerings.
  • Evaluate Pricing: Study your competitors' pricing strategies to determine if they are offering competitive prices for similar products. Assess whether you can offer better value without compromising on profitability.
  • Regularly monitor your competitors' websites, social media platforms, and industry publications to stay updated on their latest offerings, promotions, and strategies.
  • Consider attending industry trade shows and events where you can learn more about your competitors and meet potential customers.
  • Find opportunities to collaborate with your competitors by forming partnerships or participating in joint marketing initiatives that benefit both parties.

By thoroughly assessing the competition, you will gain a clear understanding of the market dynamics, identify areas of differentiation, and make informed decisions that will contribute to the success of your building materials supply business.

Define Unique Selling Proposition

When it comes to running a successful business, it is crucial to understand what sets you apart from your competitors and why customers should choose your products or services. This is where defining your unique selling proposition (USP) becomes essential. Your USP is a statement or a combination of factors that make your business and products distinctive and appealing to your target market.

One of the first steps in defining your USP is to thoroughly understand your target market. Who are your ideal customers? What are their needs and pain points? By identifying their specific requirements, you can tailor your USP to address their concerns and position your business as the solution they are looking for.

To define your USP, consider the following:

  • Identify your strengths: Determine your business's unique features, whether it's the quality of your products, your commitment to sustainability, or exceptional customer service.
  • Research your competitors: Examine what your competitors are offering and how they position themselves in the market. Find a gap that you can fill or differentiate yourself by excelling in a particular aspect.
  • Address customer needs: Your USP should directly address your target audience's pain points and provide a clear benefit or advantage that your competitors don't offer.
  • Create a compelling message: Once you have identified your strengths and unique qualities, distill them into a concise and compelling message that clearly communicates the value your business brings to customers.
  • Highlight your USP in marketing: Integrate your USP into all aspects of your marketing strategy, from your website and promotional materials to your social media campaigns and customer communications.

Tips for defining your USP:

  • Focus on what makes your business stand out - whether it's the range of eco-friendly materials you offer or your personalized consultation services.
  • Consider conducting surveys or gathering feedback from your existing customers to understand what they find most valuable about your business.
  • Keep your USP simple and easy to understand. Avoid using technical jargon or complex terms that may confuse potential customers.
  • Regularly reassess and refine your USP as your business evolves and customer needs change.

By clearly defining your unique selling proposition, you can differentiate your building materials supplier business and effectively communicate the value you provide to customers. This will not only help attract new customers but also build customer loyalty and long-term success.

Determine Pricing Strategy

When setting your pricing strategy as a building materials supplier, it is crucial to consider various factors to ensure profitability while remaining competitive in the market. Here are essential steps to help you determine the best pricing strategy for your business:

1. Cost Analysis: Begin by analyzing all the costs associated with your operations, including manufacturing or sourcing costs, transportation costs, storage costs, and overhead expenses. This will give you a clear understanding of your cost structure and help you set a baseline for pricing.

2. Market Analysis: Conduct a thorough market analysis to determine the price points at which your competitors are selling similar eco-friendly and sustainable building materials. This will provide insight into the current market trends and help you position your pricing strategy accordingly.

3. Value Proposition: Identify the unique selling points and value proposition of your eco-friendly building materials. Determine if your materials offer any additional benefits, such as durability or energy efficiency, which may justify a higher price point.

4. Target Market: Understand your target market's willingness to pay for eco-friendly materials and their purchasing behaviors. Consider the affordability and budget constraints of your potential customers when setting your pricing strategy.

5. Pricing Model: Decide on the pricing model that aligns with your business goals and customer preferences. You may consider options such as cost-plus pricing, where you add a markup to your costs, or value-based pricing, where you set prices based on the perceived value your products offer.

6. Discounts and Incentives: Consider offering introductory discounts, bulk purchase discounts, or loyalty programs to incentivize customers to choose your building materials over competitors. These strategies can help attract and retain customers while still maintaining profitability.

  • Regularly review and adjust your pricing strategy based on changes in costs, market conditions, and customer feedback.
  • Monitor your competitors' pricing strategies to ensure you stay competitive without compromising your profitability.
  • Consider offering flexible pricing options, such as tiered pricing for different customer segments or customization options with varying prices.
  • Do not undervalue your eco-friendly building materials; clearly communicate the value they bring to customers to justify your prices.

By carefully considering these factors and following a well-defined pricing strategy, you can strike the right balance between profitability and competitiveness as a building materials supplier. Remember to periodically evaluate and adapt your pricing strategy to ensure it remains aligned with your business objectives and meets the evolving needs of your customers.

Outline Marketing And Sales Strategies

Once you have identified your target market and conducted thorough market research, it is time to outline your marketing and sales strategies. These strategies will help you effectively promote your eco-friendly and sustainable building materials to construction companies and DIY renovators.

1. Define your target audience: Determine the specific demographic and psychographic characteristics of your ideal customers. This will help you tailor your marketing efforts and messages to effectively reach and resonate with them.

2. Develop a strong brand identity: Create a compelling brand image that reflects your commitment to providing eco-friendly and sustainable building materials. This will differentiate your business from competitors and attract environmentally-conscious customers.

3. Utilize online marketing channels: Establish a strong online presence by creating a user-friendly website, optimizing it for search engines, and leveraging social media platforms to engage with your target audience. Consider utilizing content marketing techniques such as creating blog posts, videos, and infographics to educate and inspire your potential customers.

4. Build strategic partnerships: Collaborate with construction companies, architects, and other industry professionals who share your values and target the same customer base. These partnerships can help increase brand awareness, generate referrals, and open doors to new opportunities.

5. Offer exceptional customer service: Focus on providing exceptional customer service to build strong relationships with your customers. This includes being responsive to inquiries, delivering orders on time, and offering personalized, knowledgeable assistance throughout the buying process.

Tips for implementing effective marketing and sales strategies:

  • Regularly monitor and analyze the performance of your marketing campaigns to identify areas for improvement.
  • Invest in search engine optimization (SEO) to increase organic visibility and attract qualified website traffic.
  • Attend trade shows and industry events to showcase your eco-friendly building materials and network with potential customers.
  • Establish referral programs or incentivize customers to recommend your products to others.
  • Consider offering educational workshops or seminars on sustainable building practices to position yourself as an industry expert.

By outlining your marketing and sales strategies, you will be well-equipped to efficiently promote your eco-friendly and sustainable building materials, attract loyal customers, and contribute to the growing demand for green building practices in the construction industry.

Develop A Detailed Budget And Financial Projections

Developing a detailed budget and financial projections is a crucial step in creating a business plan for a building materials supplier. This step involves forecasting the financial aspects of your business and creating a plan to manage and allocate your resources effectively. By estimating your costs and projecting your revenue, you can identify potential financial risks and opportunities, and make informed decisions to ensure the financial success of your business.

When developing your budget and financial projections, it is important to consider all the necessary expenses and revenue streams associated with your building materials supplier. Here are some key aspects to consider:

  • Operating Expenses: Identify all the costs involved in running your business, including rent, utilities, salaries, marketing expenses, and any other recurring expenses. It is important to be thorough and realistic in estimating these costs to create an accurate budget.
  • Capital Expenses: Determine any initial investments required for equipment, machinery, vehicles, or inventory. These costs should be included in your budget to ensure proper allocation of funds.
  • Revenue Streams: Assess your potential sources of revenue, such as sales to construction companies and DIY renovators. Determine your pricing strategy and estimate the volume of sales you expect to achieve. Consider any additional revenue streams, such as offering installation services or partnering with other businesses.
  • Profit Margins: Calculate your projected profit margins by considering your costs and sales revenue. This will help you understand the profitability of your business and make adjustments if necessary.
  • Cash Flow: Develop a cash flow projection to track the inflow and outflow of cash in your business. This is essential to ensure you have enough working capital to cover your expenses and maintain a healthy financial position.
  • Use reliable financial analysis tools or software to facilitate budgeting and financial projections.
  • Consider consulting with a financial professional to ensure accuracy and completeness of your budget and financial projections.
  • Regularly review and update your budget and financial projections as your business evolves.
  • Include contingency plans in your budget to account for unexpected expenses or changes in the market.

Developing a detailed budget and financial projections requires careful consideration and research. It is essential to ensure that your business is financially viable and sustainable in the long run. By accurately estimating your expenses and projecting your revenue, you can make informed decisions and effectively manage your resources, setting your building materials supplier up for success.

Secure Necessary Funding Sources

Securing funding is an essential step in launching your building materials supply business. Without sufficient capital, it can be challenging to finance inventory, equipment, marketing efforts, and other startup costs. Here are some crucial steps to take to secure the funding you need:

  • Assess your financial needs: Before approaching potential funders, determine how much capital you require. Consider all the expenses involved in launching and operating your business, including product procurement, marketing, staffing, and overhead costs. Having a clear understanding of your financial needs will help you negotiate better terms with potential funders.
  • Explore traditional financing options: Traditional financing options, such as loans from banks or credit unions, can be a viable choice for securing funding. Prepare a detailed business plan along with financial projections to present to potential lenders. Be prepared to provide collateral or personal guarantees, as they may be required by financial institutions.
  • Consider alternative funding sources: If securing a traditional loan proves challenging, consider alternative funding sources such as angel investors, venture capitalists, or crowdfunding platforms. These sources may be more willing to invest in a sustainable and eco-friendly business model like yours. Research and reach out to potential investors who align with your values and mission.
  • Seek out government grants and programs: Many governments and organizations offer grants and programs specifically designed to support sustainable and environmentally friendly businesses. Research and apply for grants that are relevant to your industry and business model. These funds can provide a valuable source of capital without the burden of repayment.
  • Prepare a comprehensive and well-documented business plan that highlights the potential profitability and social impact of your sustainable building materials supply business.
  • Network with industry professionals, attend conferences, and join relevant associations to connect with potential investors and funding opportunities.
  • Consider partnering with strategic investors who can bring not only capital but also industry expertise and connections to help your business grow.
  • Be prepared to negotiate the terms of funding, including interest rates, repayment schedules, and equity arrangements if applicable.

Securing funding for your building materials supply business may require persistence, patience, and a well-crafted pitch. Remember to demonstrate the potential for profitability and the positive environmental impact of your business to appeal to potential funders who share your vision.

Gather Legal And Regulatory Information

When starting a business as a building materials supplier, it is essential to ensure that you comply with all the necessary legal and regulatory requirements . Failing to do so can lead to fines, legal issues, and even the closure of your business. Here are some crucial steps to consider:

  • Business Structure: Determine the most suitable business structure for your building materials supply business. Options include sole proprietorship, partnership, limited liability company (LLC), or a corporation. Each structure has its own legal and tax implications, so it's important to consult with a lawyer or accountant to choose the right one for your specific needs.
  • Business Licenses and Permits: Research and acquire all the necessary licenses and permits required to legally operate your building materials supply business. This may include a general business license, sales tax permit, employer identification number (EIN), and any specific permits related to the handling and distribution of building materials.
  • Environmental Regulations: As a provider of eco-friendly and sustainable building materials, it's important to understand and comply with relevant environmental regulations. This may include obtaining certifications or adhering to specific guidelines regarding the sourcing, production, and disposal of materials.
  • Employee Laws: If you plan on hiring employees, familiarize yourself with labor laws and regulations to ensure compliance with hiring practices, wages, benefits, and workplace safety standards. Consult with an employment attorney or HR professional to stay up to date on any legal changes.
  • Contractual Agreements: As a building materials supplier, you will likely engage in contracts with customers, suppliers, and contractors. It's crucial to seek legal advice to draft comprehensive and legally binding agreements that protect your rights and minimize any potential liabilities.
  • Stay informed about changes in local, state, and federal regulations related to the building materials industry by regularly consulting with industry associations and legal professionals.
  • Consider consulting with an attorney specialized in business and construction law to ensure you have a solid understanding of the legal landscape for your building materials business.
  • Maintain accurate and organized records of all legal and regulatory documentation, including licenses, permits, contracts, and employee records, to demonstrate compliance and facilitate smooth business operations.

In conclusion, writing a business plan for a building materials supplier can be a complex process, but by following these nine steps, you can ensure that you are well-prepared to start and grow your business. Identifying your target market, conducting market research, assessing competition, defining your unique selling proposition, determining pricing strategy, outlining marketing and sales strategies, developing a detailed budget and financial projections, securing necessary funding sources, and gathering legal and regulatory information are all crucial aspects to consider.

By catering to the increasing demand for eco-friendly and sustainable building materials, you can position your business to take advantage of the growing market for green building practices. Remember to conduct thorough market research and assess your competition to ensure that your business stands out from the rest. Additionally, developing a solid financial plan and securing necessary funding sources will be vital for the success of your business.

Overall, a well-written business plan is a roadmap for success. It allows you to have a clear understanding of your target market, pricing strategy, marketing and sales strategies, and financial projections. By following this checklist, you will be setting yourself up for a strong start in the building materials supplier industry.

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