• Credit cards
  • View all credit cards
  • Banking guide
  • Loans guide
  • Insurance guide
  • Personal finance
  • View all personal finance
  • Small business
  • View all small business
  • View all taxes

You’re our first priority. Every time.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

How to Write a Business Plan, Step by Step

Rosalie Murphy

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

12 steps of a 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

Compare multiple lenders that fit your business

One blue credit card on a flat surface with coins on both sides.

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

Brought to you by

LivePlan Logo

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

  • 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.

12 steps of a business plan

Free business plan template

Download a free SBA-approved business plan template built for small businesses and startups.

Download Template

12 steps of a business plan

One-page plan template

Download a free one-page plan template to write a useful business plan in as little as 30-minutes.

12 steps of a business plan

Sample business plan library

Explore over 500 real-world business plan examples from a wide variety of industries.

View Sample Plans

12 steps of a business plan

Write your plan faster with LivePlan

Try the business planning and growth tool trusted by over 1-million business owners.

Start your plan

How to write a business plan FAQ

What is a business plan?

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

What are the benefits of a business plan?

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

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

What are the 7 steps of a business plan?

The seven steps to writing a business plan include:

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

What are the 5 most common business plan mistakes?

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

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

What questions should be answered in a business plan?

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

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

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

How long should a business plan be?

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

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

What are the different types of business plans?

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

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

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

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

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

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

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

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

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

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.

Check out LivePlan

Table of Contents

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

Related Articles

12 steps of a business plan

12 Min. Read

Amazon FBA business plan

12 steps of a business plan

9 Min. Read

Write a customer analysis

12 steps of a business plan

8 Min. Read

7. Use the right tools and resources

12 steps of a business plan

11 Min. Read

SaaS business plan

The LivePlan Newsletter

Become a smarter, more strategic entrepreneur.

Your first monthly newsetter will be delivered soon..

Unsubscribe anytime. Privacy policy .

Garrett's Bike Shop

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

LivePlan pitch example

Discover the world’s #1 plan building software

12 steps of a business plan

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

By Joe Weller | October 11, 2021

  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn

Link copied

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

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

What Is a Business Plan?

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

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

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

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

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

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

Business Plan Steps

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

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

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

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

Do I Need a Simple or Detailed Plan?

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

How to Choose the Right Plan for Your Business

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

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

Is the Order of Your Business Plan Important?

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

The Difference Between Traditional and Lean Business Plans

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

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

How to Write a Business Plan Step by Step

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

Step 1: Executive Summary

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

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

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

Step 2: Description of Business

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

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

Step 3: Market Analysis

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

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

Step 4: Competitive Analysis

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

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

Step 5: Description of Organizational Management

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

Step 6: Description of Products or Services

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

Questions to answer in this section are as follows:

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

Step 7: Marketing Plan

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

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

Step 8: Sales Plan

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

Start by answering the following questions:

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

Step 9: Funding Details (or Request for Funding)

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

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

Step 10: Financial Projections

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

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

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

Business Plan Template

Business Plan Template

Download Business Plan Template

Microsoft Excel | Smartsheet

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

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

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

How to Write a Simple Business Plan

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

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

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

Simple Business Plan Template

Simple Business Plan Template

Download Simple Business Plan Template

Microsoft Excel |  Microsoft Word | Adobe PDF  | Smartsheet

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

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

How to Write a Business Plan for a Lean Startup

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

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

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

Lean Business Plan Template for Startups

Lean Business Plan Templates for Startups

Download Lean Business Plan Template for Startups

Microsoft Word | Adobe PDF

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

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

How to Write a Business Plan for a Loan

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

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

Download free financial templates to support your business plan.

Tips for Writing a Business Plan

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

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

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

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

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

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

Resources for Writing a Business Plan

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

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

How a Business Plan Helps to Grow Your Business

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

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

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

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

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

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

Discover why over 90% of Fortune 100 companies trust Smartsheet to get work done.

How to write a business plan in 12 steps (2024 edition) Add Add

How to write a business plan in 12 steps (2024 edition).

Updated 08 January 2024 • 12 min read

This guide breaks down how to write a business plan, step-by-step, detailing what your document needs to include and what you need to think about to make your business plan as persuasive as possible.

What is a business plan?

A business plan is an essential document that can provide immense value for new and existing companies of all sizes. It is an overview that includes an outline of your business, its key objectives and plan for achieving important goals.

This information can be used to communicate strategic actions to internal teams and also attract interest from potential partners and investors . However, writing a business plan can be a lengthy and involved process. For many, using a business plan template can be a good way to get started.

For best results, you’ll need to do a lot of thinking and planning before you start writing your business plan. This way you have all the information and resources you need at your fingertips and won’t be under time pressure to come up with something at the last minute. After all, a well-thought-out business plan can help you avoid generic information and set your company up for success.

Download your free business plan template .

Why write a business plan?

Writing your business plan helps to get your strategy nailed down and onto the page. A plan that stays in your head is probably going to be full of unrealistic assumptions and biases, whereas a strategically thought-out and organised approach forces you to notice your blind spots and find a way forward.

If you’re looking for financing, a bank or investor needs to be persuaded by your business proposal and the opportunity to work with you. Therefore, a well-written business plan can help provide potential financial partners with the confidence that your business can become profitable. Your business plan gives them a comprehensive view of all aspects of your business and details your strategy for achieving your goals.

What are the main sections of a business plan?

Whatever your line of work, your business plan will generally need to provide the following:

An executive summary

A business overview

The market opportunity

Your products/services

How to write a business plan

Make sure you cover each of the following steps when preparing your document:

1. Write an executive summary

This section of your business plan should be 1–2 pages in length and enables potential financiers or partners to get an overview of what your business does and – most importantly — what the opportunity is for them. If they’re interested in the opportunity, they’ll conduct their own due diligence - and this will start with going through your business plan and financials.

It’s a good idea to write your executive summary last, when you’ve clarified your thinking around every section of the document. As an overview section, you don’t want to add any new content that isn’t in your business plan. Aim to keep this summary succinct and engaging by using simple, plain language, as this is much more persuasive than complicated or academic wording.

Use sub-headings and bullet points to help your most important information stand out, especially as busy executives may simply scan your executive summary and use this to decide whether they want to find out more.

What to include in an executive summary?

Make sure you include details on:

What your business does

What the opportunity is

What your unique selling points / differentiators are

How much funding you’re looking for

What the funding will be used for

How you'll succeed

Remember, you’re providing the big picture overview of your business - the detail is in the rest of the document and in the appendices.

2. Write your business overview

This section of your business plan needs to be more than just a list of what your business does. Its purpose is to excite those you’re hoping will work with you or help to fund your business.

Information to address includes:

What's the purpose of your business?

What problem does your business’ product or service solve?

What niche could it fill?

What’s different about your offering?

How are you better than anyone else at what you do?

Consider what your customer value proposition is by deciding what you want to achieve and what your number 1 benefit is for your customer.

3. Identify your USP

Think about what your unique selling points (USP) or differentiators are, and what proof-points you can provide to back them up.

For example, you can use terms like “market-leading” but if you don’t provide any evidence to back up your claims, your reader will take them with a big pinch of salt!

You should certainly reference any awards or endorsements that position you as the best person to provide your product or service, as well as any client testimonials. Make sure you include any education or experience that makes you an expert in your field as well.

4. Describe the market opportunity

Show you understand your industry, market and where you fit in it. While no-one can predict the future, offer up where you think the opportunity is for your business and make sales projections based on that. 

For example, imagine your business is selling personalised cookies - there's little competition in your area and you see your market opportunity to create designs for all calendar and holiday events. You expect to increase sales by 30% in one year and 50% in three years, driven primarily by word-of-mouth referrals.

Make sure you also consider macro trends that may create opportunities for you, such as social, environmental, or technological changes that may affect buying behaviour.

5. Include a SWOT analysis

Whatever your business strengths or opportunities, they’ll always be known and unknown weaknesses and threats; there’s no such thing as certainty in business or in life!

However, you can demonstrate that you’ve examined your business through different lenses and have a thorough understanding of it by doing a SWOT (strengths, weaknesses, opportunities, threats) analysis.

Don’t worry about drawing attention to your business’ shortcomings - every opportunity has them and it’ll give investors and partners confidence in you that you won't bury your head in the sand. Naturally, it's important that you specify what you’re going to do to address these weaknesses and counter these threats.

Here are some areas you can think about to get started: reputation, technology, location, experience, staff, overheads, competition, suppliers and price.

6. Present a competitor analysis

Let’s face it, no matter what industry you’re in, or what you’re selling, there’s going to be other businesses offering the same thing. But instead of worrying about the competition, use this as a positive opportunity to up your game and work out the unique advantages you have that will keep you competitive.

Identify your top 3 competitors and analyse what they're doing well and where they’re coming up short. Try to be as objective as possible and identify how to differentiate yourself from them.

You should also look into who the industry leaders are and what the benchmarks are for your industry so that you can set yourself targets for continuous improvement.

7. Create a customer persona

A customer persona is a fictional person who represents your company's ideal customer. Naturally, the persona can be based on a real person - the more you get to know your ideal customer, the more targeted and successful your marketing efforts will be.

To create a customer persona, you need to conduct research into your ideal customer’s age, sex, income, employment, daily activities, interests and hobbies. If you’re feeling unsure about your customer persona, you may need to give your ideal customer further thought and download the customer persona template to get started.

8. Write your marketing strategy

When you’ve created your customer persona, you need to work out how you’re going to reach them. Do they hang out on social media apps, like Facebook, Instagram, Pinterest, Twitter or LinkedIn? Or are they more used to local, traditional marketing like free local papers or high foot traffic areas?

Once you’ve figured where your audience is likely to hang out, you can outline your strategies for promoting and advertising your products or services in the next 12 months.

Make a list of the marketing channels you’ll use to achieve your advertising strategy and be sure to include your budget. How much can you set aside for advertising? And where are you most likely to see a return on your efforts? Paid ads on Facebook? Half or full paid spreads in an industry magazine? Or even a direct mail out? 

For more structured help around this, check out free course: Business 101 | Get social with your business on Facebook . 

9. Design your customer retention strategy

Business success relies heavily on the relationship you’re able to build with your customers. What techniques will you use to keep them coming back? Consider the following:

What can your business do to increase the number of repeat customers? 

Does your business have a referral or loyalty program? 

Do you have a post-purchase follow up in place?

Will you use surveys to track customer satisfaction?

What ways can you continue delivering outstanding service?

Is there a way to continue educating and adding value to your customers?

10. Present your financials

Most people who are looking at investing their time and/or money in your business will want to see your financial statements - your performance to date and your projections over the short and medium term. They'll also want to know how much you’ve received in funding to date and what these other sources of funding are - including your own investment.

Current finances

You need to show how your business has performed financially over the last year, highlighting metrics such as positive cashflow , net profit and assets.

Financial forecasts

You should also provide a balance forecast projecting total assets, total liabilities and net assets over 1, 2 and 3 years, and a profit and loss forecast for the same periods detailing gross profit/net sales, total expenses and net profit/loss. Finally, you should also provide a cashflow forecast month by month over the next year.

It’s also a good idea to speak to an expert like an accountant or bookkeeper about your finances and get advice on how best to present them in this all-important section of your business plan.

11. Detail how much funding is needed

Naturally, you also need to be very clear about how much money you’re looking for and what you plan to do with it. If you’re looking for a loan , you need to detail what it’s for, over what period it’ll be repaid, and what collateral you have to secure it.

12. Propose an exit strategy

Any financial stakeholder in your business will want a return on investment. If you’re pursuing this type of funding, you should include some detail on your proposed exit strategy . For example, do you want to sell the company at some point or go public?

Similarly, you should outline your succession plan so the business can continue to operate if you decide to step away from it. Likewise, you need a plan for what happens if the business loses money and can’t sustain itself. Documenting this means that everyone is on the same page and potential investors have this information upfront.

Frequently asked questions about writing a business plan:

When to write a business plan.

Typically, entrepreneurs write their business plans within the first year of operations. A business plan is a tool that helps business owners refine their strategy, attract partners and financiers, and grow their business.

If a business plan is written too soon, it may lack the substance that comes with time in the market. However, it’s important to note that a business plan isn't a static document - it can and should change as the business evolves.

How long should your business plan be?

There are no hard and fast rules around how long your business plan should be - it just needs to include all the relevant information. Aim for clear, concise sections and build a business plan that is as easy to read and navigate as possible.

Using a business plan template can help you make sure you have everything covered off, while also having a document that looks as professional as possible. Make sure you run a spelling and grammar check too - any sloppy errors can undermine your credibility.

What’s a business plan on a page?

It’s important to write your business plan as it helps to embed your strategy - as well as communicate what you’re about to potential partners or investors. When you have a comprehensive business plan you can easily adapt it to suit different audiences. For example, a full business plan is essential for raising capital but a business plan on a page may be enough for potential partners or employees.

What do venture capitalists look for in a business plan?

Venture capitalists invest money into businesses with the goal of achieving a return on their investment within the short to medium term. As a result, they’re looking for an attractive market opportunity, a clear point of differentiation, a strong management team, a proven track record, solid financials and, importantly, an exit opportunity.

Where to go for help or more information?

There are many great resources out there to help you fine-tune your business strategy and write your business plan. The Australian Government has a comprehensive website dedicated to supporting businesses at all stages of their journey.

You can also get help from Business Enterprise Centres , business advisors, accountants and fellow business owners. MYOB also has a list of business advisors who can give you feedback on your business plan, so your venture has the very best chance of success. 

Related Guides

How to get a business loan arrow right, how to find investors: a guide for startups arrow right, business models: definitions, types and key components arrow right.

How to make a business plan

Strategic planning in Miro

Table of Contents

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

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

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

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

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

What is a business plan?

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

Products or services

Target market

Competitors

Marketing and sales strategies

Financial plan

Management team

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

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

Business plan vs. business model canvas

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

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

Key partnerships

Key activities

Key propositions

Customer relationships

Customer segments

Key resources

Cost structure

Revenue streams

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

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

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

Why is a business plan important?

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

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

Helps to define the business goals and objectives

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

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

Guides decision-making

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

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

Attracts investors and secures funding

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

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

Identifies potential challenges and risks

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

Is there enough demand for my product or service?

Will I have enough capital to start my business?

Is the market oversaturated with too many competitors?

What will happen if my marketing strategy is ineffective?

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

Provides a basis for measuring success

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

Are we where we want to be at this point?

Did we achieve our goals?

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

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

How to make a business plan step by step

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

1. Create an executive summary

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

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

2. Write your company description

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

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

3. Conduct a market analysis

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

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

What does the current market look like?

Who are your competitors?

What are they offering?

What will give you a competitive advantage?

Who is your target market?

What are they looking for and why?

How will your product or service satisfy a need?

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

4. Describe your products and services

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

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

5. Design a marketing and sales strategy

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

Pricing strategy

Advertising and promotional tactics

Sales channels

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

6. Determine budget and financial projections

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

Some details to include in this section are:

Startup costs

Revenue projections

Profit and loss statement

Funding you have received or plan to receive

Strategy for raising funds

7. Set the organization and management structure

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

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

8. Make an action plan

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

Types of business plans

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

Startup business plan

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

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

Strategic business plan

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

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

Operational business plan

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

Organizational structure

Staffing plan

Production plan

Quality control

Inventory management

Supply chain

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

Growth-business plan

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

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

One-page business plan

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

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

Best practices for how to make a good business plan

Here are some additional tips for creating a business plan:

Use a template

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

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

Be practical

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

Be specific

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

Be thorough with your research

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

Get input from others

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

Review and revise regularly

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

Create a winning business plan to chart your path to success

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

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

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

Get on board in seconds

Join thousands of teams using Miro to do their best work yet.

TIME Stamped

Personal Finance

How to start a business in 12 steps.

How to Start a Business

Our evaluations and opinions are not influenced by our advertising relationships, but we may earn a commission from our partners’ links. This content is created independently from TIME’s editorial staff. Learn more about it.

Starting a business can be a daunting process. There are so many things to consider—finances, business structure, permits, taxes, bookkeeping, hiring, and providing a great-quality product or service to your clients or customers. How can one person keep track of it all?

Here are 12 steps to use as a guide to make sure you’re checking off all those pre-opening boxes.

Define business concept

You have a business idea. That’s the first step. Next, you’ll need to ask yourself two questions:

  • Am I good at it?
  • Can I make a profit doing it?

Then it's time to conduct market research to see if your idea is viable. Market research involves a deep understanding of the following:

  • Demand: Do people want your product or service?
  • Market size: Approximately how many people are interested in your product or service?
  • Economic indicators: What are the average incomes in your area and the current employment rate?
  • Location: Is your planned location near your prospective customers’ homes or work?
  • Market saturation: Are there already competitors in the same market?
  • Pricing: What can you charge for this product or service in your area?

Write a business plan

A business plan is useful for your own planning, and it may be required if you plan to access financing through outside lenders or investors. It is the guide that serves as a roadmap for your new business. You should include the following sections in your business plan :

  • Executive summary.
  • Company description.
  • Market analysis.
  • Organization and management.
  • Product or service description.
  • Marketing plan.
  • Funding request (if applicable).
  • Financial projections.

Consider finances and fund business

Do you have all the money you’ll need to open this business? If you don’t, you’ll need to consider whether you’ll raise the capital through debt financing or equity financing. Debt financing comes from lenders who expect a repayment of the borrowed funds over a number of years, in addition to an interest expense. Equity financing has no repayment obligation, but it allows your investors to become part owners in your business.

Find business location

“Location, location, location.” It’s a common marketing and real-estate phrase for a reason. Depending on the type of business you plan on opening, it may be better to be closer to your prospective customers’ homes or places of business. Since you’ve already done all the legwork in the market-research phase, you should be able to narrow down your focus pretty quickly when searching for a space to rent or buy.

Choose a legal business structure

There are a number of legal business structures to choose from before you open your business. The structure you choose affects the ownership and control of your business, your level of personal liability, and how you file your taxes. Here are the common business structures :

Sole proprietorship

A sole proprietorship is the easiest business structure to form. You will automatically be considered a sole proprietorship if you do not register as any other business type. You will simply file taxes for your business on the Schedule C of your personal income tax return, Form 1040 . Sole proprietorship offers no protection from personal liability resulting from your business activities, so it’s a good choice for a low-risk business.

Partnership

A partnership is a business structure for two or more people who own a business together. There are two types of partnerships: Limited partnerships (LPs) and limited liability partnerships (LLPs). A limited partnership means that one partner has unlimited liability while all others have limited liability . The limited liability partners also have limited control of the business. The partner with unlimited liability must also pay self employment taxes like a sole proprietor. A limited liability partnership, on the other hand, allows limited liability for all partners.

Partnerships have a tax obligation that passes through to the partners. You will file an informational tax return, Form 1065 , for the partnership to declare its profit or loss for the year. Each partner will receive a Schedule K-1 with their personal share of the profit or loss. The partners will then report and pay taxes on that amount when they file their personal income tax return, Form 1040.

Limited liability company (LLC)

An LLC protects you from being personally liable for your business activities. You can have a single- or multi-member LLC. A single-member LLC files taxes like a sole proprietor. A multi-member LLC is typically treated like a partnership for tax purposes. The same process is followed with Form 1065 and Schedule K-1, and the LLC members report and pay taxes on their share of the profit or loss. You also have the option to file Form 8832 and file taxes as a corporation.

C corporation

A C corporation, commonly referred to as a corporation, is a separate legal entity from its owners. As a separate entity, it allows owners protection from personal liability. The corporation is taxed separately from its owners, and it files a Form 1120 . The drawback is that some profits are subject to double taxation—first at the corporation level and then on personal tax returns when dividends are paid to the shareholders.

S corporation

An S corporation, or S corp, is a special tax designation allowed by the IRS that avoids the double taxation of a C corp. It also allows limited liability. There are very specific rules to qualify as an S corp, which the IRS spells out on its website . S corps pass profits or losses through to the shareholders, who pay taxes on their personal tax returns.

Register business name

Once you’ve decided on a legal business structure, you’ll need to register your business name with various governmental entities. If you have decided on a sole proprietorship, you may want to register a fictitious name—known as a “doing business as” (DBA) name. You can do this directly with your state or through a website like LegalZoom that will handle the process for you. This allows you to open a bank account under the business’s name. If you’ve formed a business entity other than a sole proprietorship, the name you chose will be automatically registered with your state so no other business can be formed with the same name.

Get federal and state tax IDs

You’ll need federal and state tax IDs in order to file your business tax or informational returns. You can apply on the IRS website for an Employer Identification Number (EIN) . If you’re opening a business bank account, you’ll need an EIN. Depending on the state you are in, you may need a state tax ID as well.

Apply for licenses and permits

Depending on your location and business activities, you may need city, county, state, or federal licenses and permits. The U.S. Small Business Administration lists federal licenses and permits you may be required to obtain. Be sure to check with your local municipality to see which local licenses and permits are required for your business.

Open a business bank account

Having a separate business bank account is useful for bookkeeping and tax purposes, even if you’re operating as a sole proprietorship. If you have chosen another business structure, you should be able to open a business bank account as soon as you have an EIN.

Purchase business insurance

There are several types of business insurance. Depending on the industry, certain types of insurance may apply more than others. If you provide a service, for example, consider liability insurance. There are general liability insurance policies that cover property damage, bodily injury, or personal injury to yourself, your employees, or your customers.

Market your business

You’ll want to get your name out there before you open. Create a logo to brand your business. Use social media to start networking and making contacts in the industry. Market to your friends and family, and ask them to share with their contacts. A well-designed website is a great tool for potential customers to see your product or service, so it may be worth it to hire a website designer. Make sure your business is showing up in Google searches.

Open your business

Plan an opening day. Schedule a grand opening event within a month of your soft opening. This gives you time to work out the kinks before inviting the public into your space.

TIME Stamp: A solid plan lays a great foundation

Taking the time up front to do market analysis, design a solid business plan, and chart the course for your business will pay off when you do eventually open your business. Following the process above will make sure you don’t miss important steps along the way. Be sure to contact an accountant or lawyer if you have any professional questions specific to your industry, locality, or business.

Frequently asked questions (FAQs)

What are the best states to start a business.

The best states to start a business are the ones with favorable taxes for small business owners, high consumer spending in the state, and strong business survival rates. According to Management Library , here are some of the best states to start a business:

  • Texas: Best overall.
  • Utah: Best for business financing.
  • Montana: Best for business=friendly policies.
  • Georgia: Best for cost of labor.
  • Florida: Best state for starting a business for tax purposes.
  • California: Best for innovation.
  • Oklahoma: Best for cost of doing business.
  • Idaho: Best for real estate.
  • North Carolina: Best for starting an LLC.
  • Delaware: Best for privacy protection.

How do I start a small business with no money?

Starting a business with no money is easiest if you have a marketable service to sell. You can start small, out of your home. Consider starting your business as a side gig while you keep your full time job. This limits your risk if the business does not take off.

If you have your heart set on a business that requires capital up front, you’ll need to look for alternative funding sources. Have your business plan solidified before you seek funding from third-party sources. Consider the following funding options:

  • Friends and family.
  • Small business grants.
  • Small business loans.
  • Venture capitalists.
  • Angel investors.
  • Crowdfunding.

How do I start a business online?

Online businesses offer the advantage of being relatively cheap compared to their brick-and-mortar counterparts. You will want to follow the same steps outlined above from defining your business concept to marketing your business. A key component to a successful online business is having a strong online presence and well-designed website.

Do I need a business credit card?

If you want to establish a business credit score, you should eventually plan to get a business credit card. Prior to opening your business, it’ll be harder to get a business credit card because you have no business credit history—or history in business at all, if this is your first venture. Some business credit cards will allow you to use your personal credit score to qualify. Others may require six months or a year in business before you qualify.

Revenued offers a combination line of credit and a prepaid card. You may be able to get approved with little to no business history or credit. Once your application is approved, you may have access to your funds within 24 hours.

Once you have one year in business under your belt, you can apply for a PayPal business credit card. You can apply online, and your virtual card will be linked to your PayPal business account immediately.

What are the best business checking accounts?

There are a wide variety of business checking accounts to choose from. For example, U.S. Bank’s business checking accounts are a good choice if you use its merchant services. Your funds can be deposited into your business checking account even faster—within hours of batch closure, including weekends.

If you’re looking for a convenient app to keep track of your banking, bookkeeping, and tax information in one place, consider the Foundsmall business banking app. If you have multiple owners who would like joint business account access, Lili provides multi-user access and a debit card for each business owner, with exclusive benefits including a Metal Visa® Business Debit Card and priority support.

How much does it cost to create a business?

The cost to start a business varies considerably based on location and industry. According to Small Business Trends , the average small business startup and first-year costs fall between $30,000 to $40,000.

How do I get a loan for a new business?

You can get a loan for your new business from a private lender or the U.S. Small Business Administration (SBA). Startup business loans can help you cover startup expenses such as:

  • Purchasing or leasing a space.
  • Paying utility bills during the startup phase.
  • Purchasing equipment and inventory.

To be approved for a startup business loan, you’ll first need a solid business plan. With no business history, lenders will rely heavily on your extensive research and financial projections in the business plan. Despite being called a startup loan, many private lender startup loans have a minimum-of-six-months-in-business requirement to qualify for the loan. Requirements vary by lender. You may be able to qualify for a business loan with a strong personal credit score or significant collateral—something of value put up as security for the loan in case you default on payments.

The SBA 7(a) loan program offers small businesses a loan guarantee, up to $5 million, if certain qualifications are met. It is not provided directly by the SBA, but it is instead offered through approved third-party lenders. To qualify, your business must:

  • Be actively operating.
  • Operate for profit.
  • Be located within the United States.
  • Meet size requirements for a small business according to the SBA.
  • Not be an ineligible business.
  • Not be able to obtain reasonable terms through any other private loan source.
  • Be creditworthy.
  • Be able to repay the loan.

If you are unable to secure a business loan, a personal loan is another option. You may also be able to take a 401(k) loan out of your employer-sponsored retirement plan. Unless a lower limit applies to your plan, the maximum you can take from your 401(k) is $50,000 or 50% of your vested account balance, whichever is less.

What are some of the best business ideas in 2023?

This TIME article covers 12 great business ideas in 2023. There are:

  • Flower arrangements.
  • Meal delivery service.
  • Event planning.
  • Pet sitting.
  • Cleaning service.
  • Professional organizing.
  • Music performer.
  • Home delivery.
  • Online teaching.
  • Online bookkeeping.
  • Host a group program.

The information presented here is created independently from the TIME editorial staff. To learn more, see our About page.

  • Search Search Please fill out this field.

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.

12 steps of a 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 ."

  • How to Start a Business: A Comprehensive Guide and Essential Steps 1 of 25
  • How to Do Market Research, Types, and Example 2 of 25
  • Marketing Strategy: What It Is, How It Works, and How to Create One 3 of 25
  • Marketing in Business: Strategies and Types Explained 4 of 25
  • What Is a Marketing Plan? Types and How to Write One 5 of 25
  • Business Development: Definition, Strategies, Steps & Skills 6 of 25
  • Business Plan: What It Is, What's Included, and How to Write One 7 of 25
  • Small Business Development Center (SBDC): Meaning, Types, Impact 8 of 25
  • How to Write a Business Plan for a Loan 9 of 25
  • Business Startup Costs: It’s in the Details 10 of 25
  • Startup Capital Definition, Types, and Risks 11 of 25
  • Bootstrapping Definition, Strategies, and Pros/Cons 12 of 25
  • Crowdfunding: What It Is, How It Works, and Popular Websites 13 of 25
  • Starting a Business with No Money: How to Begin 14 of 25
  • A Comprehensive Guide to Establishing Business Credit 15 of 25
  • Equity Financing: What It Is, How It Works, Pros and Cons 16 of 25
  • Best Startup Business Loans 17 of 25
  • Sole Proprietorship: What It Is, Pros & Cons, and Differences From an LLC 18 of 25
  • Partnership: Definition, How It Works, Taxation, and Types 19 of 25
  • What is an LLC? Limited Liability Company Structure and Benefits Defined 20 of 25
  • Corporation: What It Is and How to Form One 21 of 25
  • Starting a Small Business: Your Complete How-to Guide 22 of 25
  • Starting an Online Business: A Step-by-Step Guide 23 of 25
  • How to Start Your Own Bookkeeping Business: Essential Tips 24 of 25
  • How to Start a Successful Dropshipping Business: A Comprehensive Guide 25 of 25

12 steps of a business plan

  • Terms of Service
  • Editorial Policy
  • Privacy Policy
  • Your Privacy Choices

Home > Business > Business Startup

How To Write a Business Plan

Stephanie Coleman

We are committed to sharing unbiased reviews. Some of the links on our site are from our partners who compensate us. Read our editorial guidelines and advertising disclosure .

How-to-write-a-business-plan

Starting a business is a wild ride, and a solid business plan can be the key to keeping you on track. A business plan is essentially a roadmap for your business — outlining your goals, strategies, market analysis and financial projections. Not only will it guide your decision-making, a business plan can help you secure funding with a loan or from investors .

Writing a business plan can seem like a huge task, but taking it one step at a time can break the plan down into manageable milestones. Here is our step-by-step guide on how to write a business plan.

Table of contents

  • Write your executive summary
  • Do your market research homework
  • Set your business goals and objectives
  • Plan your business strategy
  • Describe your product or service
  • Crunch the numbers
  • Finalize your business plan

12 steps of a business plan

By signing up I agree to the Terms of Use and Privacy Policy .

Step 1: Write your executive summary

Though this will be the first page of your business plan , we recommend you actually write the executive summary last. That’s because an executive summary highlights what’s to come in the business plan but in a more condensed fashion.

An executive summary gives stakeholders who are reading your business plan the key points quickly without having to comb through pages and pages. Be sure to cover each successive point in a concise manner, and include as much data as necessary to support your claims.

You’ll cover other things too, but answer these basic questions in your executive summary:

  • Idea: What’s your business concept? What problem does your business solve? What are your business goals?
  • Product: What’s your product/service and how is it different?
  • Market: Who’s your audience? How will you reach customers?
  • Finance: How much will your idea cost? And if you’re seeking funding, how much money do you need? How much do you expect to earn? If you’ve already started, where is your revenue at now?

12 steps of a business plan

Step 2: Do your market research homework

The next step in writing a business plan is to conduct market research . This involves gathering information about your target market (or customer persona), your competition, and the industry as a whole. You can use a variety of research methods such as surveys, focus groups, and online research to gather this information. Your method may be formal or more casual, just make sure that you’re getting good data back.

This research will help you to understand the needs of your target market and the potential demand for your product or service—essential aspects of starting and growing a successful business.

Step 3: Set your business goals and objectives

Once you’ve completed your market research, you can begin to define your business goals and objectives. What is the problem you want to solve? What’s your vision for the future? Where do you want to be in a year from now?

Use this step to decide what you want to achieve with your business, both in the short and long term. Try to set SMART goals—specific, measurable, achievable, relevant, and time-bound benchmarks—that will help you to stay focused and motivated as you build your business.

Step 4: Plan your business strategy

Your business strategy is how you plan to reach your goals and objectives. This includes details on positioning your product or service, marketing and sales strategies, operational plans, and the organizational structure of your small business.

Make sure to include key roles and responsibilities for each team member if you’re in a business entity with multiple people.

Step 5: Describe your product or service

In this section, get into the nitty-gritty of your product or service. Go into depth regarding the features, benefits, target market, and any patents or proprietary tech you have. Make sure to paint a clear picture of what sets your product apart from the competition—and don’t forget to highlight any customer benefits.

Step 6: Crunch the numbers

Financial analysis is an essential part of your business plan. If you’re already in business that includes your profit and loss statement , cash flow statement and balance sheet .

These financial projections will give investors and lenders an understanding of the financial health of your business and the potential return on investment.

You may want to work with a financial professional to ensure your financial projections are realistic and accurate.

Step 7: Finalize your business plan

Once you’ve completed everything, it's time to finalize your business plan. This involves reviewing and editing your plan to ensure that it is clear, concise, and easy to understand.

You should also have someone else review your plan to get a fresh perspective and identify any areas that may need improvement. You could even work with a free SCORE mentor on your business plan or use a SCORE business plan template for more detailed guidance.

Compare the Top Small-Business Banks

Data effective 1/10/23. At publishing time, rates, fees, and requirements are current but are subject to change. Offers may not be available in all areas.

The takeaway

Writing a business plan is an essential process for any forward-thinking entrepreneur or business owner. A business plan requires a lot of up-front research, planning, and attention to detail, but it’s worthwhile. Creating a comprehensive business plan can help you achieve your business goals and secure the funding you need.

Related content

  • 5 Best Business Plan Software and Tools in 2023 for Your Small Business
  • How to Get a Business License: What You Need to Know
  • What Is a Cash Flow Statement?

Best Small Business Loans

12 steps of a business plan

5202 W Douglas Corrigan Way Salt Lake City, UT 84116

Accounting & Payroll

Point of Sale

Payment Processing

Inventory Management

Human Resources

Other Services

Best Inventory Management Software

Best Small Business Accounting Software

Best Payroll Software

Best Mobile Credit Card Readers

Best POS Systems

Best Tax Software

Stay updated on the latest products and services anytime anywhere.

By signing up, you agree to our Terms of Use  and  Privacy Policy .

Disclaimer: The information featured in this article is based on our best estimates of pricing, package details, contract stipulations, and service available at the time of writing. All information is subject to change. Pricing will vary based on various factors, including, but not limited to, the customer’s location, package chosen, added features and equipment, the purchaser’s credit score, etc. For the most accurate information, please ask your customer service representative. Clarify all fees and contract details before signing a contract or finalizing your purchase.

Our mission is to help consumers make informed purchase decisions. While we strive to keep our reviews as unbiased as possible, we do receive affiliate compensation through some of our links. This can affect which services appear on our site and where we rank them. Our affiliate compensation allows us to maintain an ad-free website and provide a free service to our readers. For more information, please see our  Privacy Policy Page . |

© Business.org 2023 All Rights Reserved.

12 steps of a business plan

  • Case Studies
  • Flexible Products

12 steps of a business plan

  • Expert Insights
  • Research Studies

12 steps of a business plan

  • Creativity and Culture
  • Management and Leadership
  • Business Solutions

12 steps of a business plan

  • Member Spotlight
  • Employee Spotlight

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.

WeWork 511 West 25th St in New York.

Companies of all sizes have one thing in common: They all began as small businesses.  Starting small  is the corner for those just getting off the ground. Learn about how to make that first hire, deal with all things administrative, and set yourself up for success.

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.

WeWork 222 Exhibition Street in Melbourne, Australia.

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? 

Related articles

Outside shot of WeWork Collyer Quay

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 .

12 steps of a business plan

Short-term leases can offer startups and established companies some much-needed flexibility

Deducting taxes from employee paychecks.

From federal taxes to 401(k)s, figuring out payroll deductions can be a headache. Here’s how to get started

12 steps of a business plan

Does your company culture still reflect your goals and values? If not, it might be time for a change

  • Sources of Business Finance
  • Small Business Loans
  • Small Business Grants
  • Crowdfunding Sites
  • How to Get a Business Loan
  • Small Business Insurance Providers
  • Best Factoring Companies
  • Types of Bank Accounts
  • Best Banks for Small Business
  • Best Business Bank Accounts
  • Open a Business Bank Account
  • Bank Accounts for Small Businesses
  • Free Business Checking Accounts
  • Best Business Credit Cards
  • Get a Business Credit Card
  • Business Credit Cards for Bad Credit
  • Build Business Credit Fast
  • Business Loan Eligibility Criteria
  • Small-Business Bookkeeping Basics
  • How to Set Financial Goals
  • Business Loan Calculators
  • How to Calculate ROI
  • Calculate Net Income
  • Calculate Working Capital
  • Calculate Operating Income
  • Calculate Net Present Value (NPV)
  • Calculate Payroll Tax

12 Key Elements of a Business Plan (Top Components Explained)

' src=

Starting and running a successful business requires proper planning and execution of effective business tactics and strategies .

You need to prepare many essential business documents when starting a business for maximum success; the business plan is one such document.

When creating a business, you want to achieve business objectives and financial goals like productivity, profitability, and business growth. You need an effective business plan to help you get to your desired business destination.

Even if you are already running a business, the proper understanding and review of the key elements of a business plan help you navigate potential crises and obstacles.

This article will teach you why the business document is at the core of any successful business and its key elements you can not avoid.

Let’s get started.

Why Are Business Plans Important?

Business plans are practical steps or guidelines that usually outline what companies need to do to reach their goals. They are essential documents for any business wanting to grow and thrive in a highly-competitive business environment .

1. Proves Your Business Viability

A business plan gives companies an idea of how viable they are and what actions they need to take to grow and reach their financial targets. With a well-written and clearly defined business plan, your business is better positioned to meet its goals.

2. Guides You Throughout the Business Cycle

A business plan is not just important at the start of a business. As a business owner, you must draw up a business plan to remain relevant throughout the business cycle .

During the starting phase of your business, a business plan helps bring your ideas into reality. A solid business plan can secure funding from lenders and investors.

After successfully setting up your business, the next phase is management. Your business plan still has a role to play in this phase, as it assists in communicating your business vision to employees and external partners.

Essentially, your business plan needs to be flexible enough to adapt to changes in the needs of your business.

3. Helps You Make Better Business Decisions

As a business owner, you are involved in an endless decision-making cycle. Your business plan helps you find answers to your most crucial business decisions.

A robust business plan helps you settle your major business components before you launch your product, such as your marketing and sales strategy and competitive advantage.

4. Eliminates Big Mistakes

Many small businesses fail within their first five years for several reasons: lack of financing, stiff competition, low market need, inadequate teams, and inefficient pricing strategy.

Creating an effective plan helps you eliminate these big mistakes that lead to businesses' decline. Every business plan element is crucial for helping you avoid potential mistakes before they happen.

5. Secures Financing and Attracts Top Talents

Having an effective plan increases your chances of securing business loans. One of the essential requirements many lenders ask for to grant your loan request is your business plan.

A business plan helps investors feel confident that your business can attract a significant return on investments ( ROI ).

You can attract and retain top-quality talents with a clear business plan. It inspires your employees and keeps them aligned to achieve your strategic business goals.

Key Elements of Business Plan

Starting and running a successful business requires well-laid actions and supporting documents that better position a company to achieve its business goals and maximize success.

A business plan is a written document with relevant information detailing business objectives and how it intends to achieve its goals.

With an effective business plan, investors, lenders, and potential partners understand your organizational structure and goals, usually around profitability, productivity, and growth.

Every successful business plan is made up of key components that help solidify the efficacy of the business plan in delivering on what it was created to do.

Here are some of the components of an effective business plan.

1. Executive Summary

One of the key elements of a business plan is the executive summary. Write the executive summary as part of the concluding topics in the business plan. Creating an executive summary with all the facts and information available is easier.

In the overall business plan document, the executive summary should be at the forefront of the business plan. It helps set the tone for readers on what to expect from the business plan.

A well-written executive summary includes all vital information about the organization's operations, making it easy for a reader to understand.

The key points that need to be acted upon are highlighted in the executive summary. They should be well spelled out to make decisions easy for the management team.

A good and compelling executive summary points out a company's mission statement and a brief description of its products and services.

Executive Summary of the Business Plan

An executive summary summarizes a business's expected value proposition to distinct customer segments. It highlights the other key elements to be discussed during the rest of the business plan.

Including your prior experiences as an entrepreneur is a good idea in drawing up an executive summary for your business. A brief but detailed explanation of why you decided to start the business in the first place is essential.

Adding your company's mission statement in your executive summary cannot be overemphasized. It creates a culture that defines how employees and all individuals associated with your company abide when carrying out its related processes and operations.

Your executive summary should be brief and detailed to catch readers' attention and encourage them to learn more about your company.

Components of an Executive Summary

Here are some of the information that makes up an executive summary:

  • The name and location of your company
  • Products and services offered by your company
  • Mission and vision statements
  • Success factors of your business plan

2. Business Description

Your business description needs to be exciting and captivating as it is the formal introduction a reader gets about your company.

What your company aims to provide, its products and services, goals and objectives, target audience , and potential customers it plans to serve need to be highlighted in your business description.

A company description helps point out notable qualities that make your company stand out from other businesses in the industry. It details its unique strengths and the competitive advantages that give it an edge to succeed over its direct and indirect competitors.

Spell out how your business aims to deliver on the particular needs and wants of identified customers in your company description, as well as the particular industry and target market of the particular focus of the company.

Include trends and significant competitors within your particular industry in your company description. Your business description should contain what sets your company apart from other businesses and provides it with the needed competitive advantage.

In essence, if there is any area in your business plan where you need to brag about your business, your company description provides that unique opportunity as readers look to get a high-level overview.

Components of a Business Description

Your business description needs to contain these categories of information.

  • Business location
  • The legal structure of your business
  • Summary of your business’s short and long-term goals

3. Market Analysis

The market analysis section should be solely based on analytical research as it details trends particular to the market you want to penetrate.

Graphs, spreadsheets, and histograms are handy data and statistical tools you need to utilize in your market analysis. They make it easy to understand the relationship between your current ideas and the future goals you have for the business.

All details about the target customers you plan to sell products or services should be in the market analysis section. It helps readers with a helpful overview of the market.

In your market analysis, you provide the needed data and statistics about industry and market share, the identified strengths in your company description, and compare them against other businesses in the same industry.

The market analysis section aims to define your target audience and estimate how your product or service would fare with these identified audiences.

Components of Market Analysis

Market analysis helps visualize a target market by researching and identifying the primary target audience of your company and detailing steps and plans based on your audience location.

Obtaining this information through market research is essential as it helps shape how your business achieves its short-term and long-term goals.

Market Analysis Factors

Here are some of the factors to be included in your market analysis.

  • The geographical location of your target market
  • Needs of your target market and how your products and services can meet those needs
  • Demographics of your target audience

Components of the Market Analysis Section

Here is some of the information to be included in your market analysis.

  • Industry description and statistics
  • Demographics and profile of target customers
  • Marketing data for your products and services
  • Detailed evaluation of your competitors

4. Marketing Plan

A marketing plan defines how your business aims to reach its target customers, generate sales leads, and, ultimately, make sales.

Promotion is at the center of any successful marketing plan. It is a series of steps to pitch a product or service to a larger audience to generate engagement. Note that the marketing strategy for a business should not be stagnant and must evolve depending on its outcome.

Include the budgetary requirement for successfully implementing your marketing plan in this section to make it easy for readers to measure your marketing plan's impact in terms of numbers.

The information to include in your marketing plan includes marketing and promotion strategies, pricing plans and strategies , and sales proposals. You need to include how you intend to get customers to return and make repeat purchases in your business plan.

Marketing Strategy vs Marketing Plan

5. Sales Strategy

Sales strategy defines how you intend to get your product or service to your target customers and works hand in hand with your business marketing strategy.

Your sales strategy approach should not be complex. Break it down into simple and understandable steps to promote your product or service to target customers.

Apart from the steps to promote your product or service, define the budget you need to implement your sales strategies and the number of sales reps needed to help the business assist in direct sales.

Your sales strategy should be specific on what you need and how you intend to deliver on your sales targets, where numbers are reflected to make it easier for readers to understand and relate better.

Sales Strategy

6. Competitive Analysis

Providing transparent and honest information, even with direct and indirect competitors, defines a good business plan. Provide the reader with a clear picture of your rank against major competitors.

Identifying your competitors' weaknesses and strengths is useful in drawing up a market analysis. It is one information investors look out for when assessing business plans.

Competitive Analysis Framework

The competitive analysis section clearly defines the notable differences between your company and your competitors as measured against their strengths and weaknesses.

This section should define the following:

  • Your competitors' identified advantages in the market
  • How do you plan to set up your company to challenge your competitors’ advantage and gain grounds from them?
  • The standout qualities that distinguish you from other companies
  • Potential bottlenecks you have identified that have plagued competitors in the same industry and how you intend to overcome these bottlenecks

In your business plan, you need to prove your industry knowledge to anyone who reads your business plan. The competitive analysis section is designed for that purpose.

7. Management and Organization

Management and organization are key components of a business plan. They define its structure and how it is positioned to run.

Whether you intend to run a sole proprietorship, general or limited partnership, or corporation, the legal structure of your business needs to be clearly defined in your business plan.

Use an organizational chart that illustrates the hierarchy of operations of your company and spells out separate departments and their roles and functions in this business plan section.

The management and organization section includes profiles of advisors, board of directors, and executive team members and their roles and responsibilities in guaranteeing the company's success.

Apparent factors that influence your company's corporate culture, such as human resources requirements and legal structure, should be well defined in the management and organization section.

Defining the business's chain of command if you are not a sole proprietor is necessary. It leaves room for little or no confusion about who is in charge or responsible during business operations.

This section provides relevant information on how the management team intends to help employees maximize their strengths and address their identified weaknesses to help all quarters improve for the business's success.

8. Products and Services

This business plan section describes what a company has to offer regarding products and services to the maximum benefit and satisfaction of its target market.

Boldly spell out pending patents or copyright products and intellectual property in this section alongside costs, expected sales revenue, research and development, and competitors' advantage as an overview.

At this stage of your business plan, the reader needs to know what your business plans to produce and sell and the benefits these products offer in meeting customers' needs.

The supply network of your business product, production costs, and how you intend to sell the products are crucial components of the products and services section.

Investors are always keen on this information to help them reach a balanced assessment of if investing in your business is risky or offer benefits to them.

You need to create a link in this section on how your products or services are designed to meet the market's needs and how you intend to keep those customers and carve out a market share for your company.

Repeat purchases are the backing that a successful business relies on and measure how much customers are into what your company is offering.

This section is more like an expansion of the executive summary section. You need to analyze each product or service under the business.

9. Operating Plan

An operations plan describes how you plan to carry out your business operations and processes.

The operating plan for your business should include:

  • Information about how your company plans to carry out its operations.
  • The base location from which your company intends to operate.
  • The number of employees to be utilized and other information about your company's operations.
  • Key business processes.

This section should highlight how your organization is set up to run. You can also introduce your company's management team in this section, alongside their skills, roles, and responsibilities in the company.

The best way to introduce the company team is by drawing up an organizational chart that effectively maps out an organization's rank and chain of command.

What should be spelled out to readers when they come across this business plan section is how the business plans to operate day-in and day-out successfully.

10. Financial Projections and Assumptions

Bringing your great business ideas into reality is why business plans are important. They help create a sustainable and viable business.

The financial section of your business plan offers significant value. A business uses a financial plan to solve all its financial concerns, which usually involves startup costs, labor expenses, financial projections, and funding and investor pitches.

All key assumptions about the business finances need to be listed alongside the business financial projection, and changes to be made on the assumptions side until it balances with the projection for the business.

The financial plan should also include how the business plans to generate income and the capital expenditure budgets that tend to eat into the budget to arrive at an accurate cash flow projection for the business.

Base your financial goals and expectations on extensive market research backed with relevant financial statements for the relevant period.

Examples of financial statements you can include in the financial projections and assumptions section of your business plan include:

  • Projected income statements
  • Cash flow statements
  • Balance sheets
  • Income statements

Revealing the financial goals and potentials of the business is what the financial projection and assumption section of your business plan is all about. It needs to be purely based on facts that can be measurable and attainable.

11. Request For Funding

The request for funding section focuses on the amount of money needed to set up your business and underlying plans for raising the money required. This section includes plans for utilizing the funds for your business's operational and manufacturing processes.

When seeking funding, a reasonable timeline is required alongside it. If the need arises for additional funding to complete other business-related projects, you are not left scampering and desperate for funds.

If you do not have the funds to start up your business, then you should devote a whole section of your business plan to explaining the amount of money you need and how you plan to utilize every penny of the funds. You need to explain it in detail for a future funding request.

When an investor picks up your business plan to analyze it, with all your plans for the funds well spelled out, they are motivated to invest as they have gotten a backing guarantee from your funding request section.

Include timelines and plans for how you intend to repay the loans received in your funding request section. This addition keeps investors assured that they could recoup their investment in the business.

12. Exhibits and Appendices

Exhibits and appendices comprise the final section of your business plan and contain all supporting documents for other sections of the business plan.

Some of the documents that comprise the exhibits and appendices section includes:

  • Legal documents
  • Licenses and permits
  • Credit histories
  • Customer lists

The choice of what additional document to include in your business plan to support your statements depends mainly on the intended audience of your business plan. Hence, it is better to play it safe and not leave anything out when drawing up the appendix and exhibit section.

Supporting documentation is particularly helpful when you need funding or support for your business. This section provides investors with a clearer understanding of the research that backs the claims made in your business plan.

There are key points to include in the appendix and exhibits section of your business plan.

  • The management team and other stakeholders resume
  • Marketing research
  • Permits and relevant legal documents
  • Financial documents

Was This Article Helpful?

Martin luenendonk.

' src=

Martin loves entrepreneurship and has helped dozens of entrepreneurs by validating the business idea, finding scalable customer acquisition channels, and building a data-driven organization. During his time working in investment banking, tech startups, and industry-leading companies he gained extensive knowledge in using different software tools to optimize business processes.

This insights and his love for researching SaaS products enables him to provide in-depth, fact-based software reviews to enable software buyers make better decisions.

Adobe Discount Banner

How To Create The Perfect Business Plan In 12 Steps

A business plan is a step-by-step guide that helps a business owner outline an idea and how to take it from concept to reality. It also includes financial projections, which help business owners plan for the future.

To create the perfect business plan template, you must first understand what components are essential to a successful business. Next, you must map how your company will function in the next five years and its financial goal. 

The next step is to take all of this information and present it in a clear, concise  timeline template  that can be used as a guide for your business. So, let's get started! Here are 12 steps on how to create the perfect business plan.

Table of Contents

What Is A Business Plan?

What Is A Business Plan.png

The traditional business plan is a written document that outlines an organisation's strategy and goals. It is a plan the company presents to investors and potential stakeholders who want to join them in the business venture. It provides a roadmap for how the organisation intends to achieve those goals and serves as the company's foundation.

A well-crafted business plan encompasses an executive summary, product or service overview, market analysis, competitive analysis, and financial projections. To ensure success, businesses create objectives around key performance indicators that are measurable, actionable, and aligned with the company's core values. 

Additionally, developing and adhering to concise action plans for meeting milestones can help companies keep on track from the project discovery phase  to reach their objectives promptly. In short, the purpose of a traditional business plan is to lay the foundation for the creation of any business enterprise.

Primary Purposes Of A Business Plan

A business plan helps keep businesses on track toward achieving their strategic goals in an agile manner while aligning them with changing customer preferences and emerging technologies. The primary purposes of business planning are:

  • First and foremost, it is a tool for decision-making for potential investors, lenders, and stakeholders. Essentially, the plan acts as a set of guidelines that provide insight into the key elements that define a newly established or existing business, such as policies, staffing needs, marketing efforts, objectives, financial allocations, etc.
  • It analyses entrepreneurs' overly optimistic assumptions regarding long-term strategies and future economic scenarios.
  • The plan is an incentive to constantly review these decisions and ensure they are up-to-date with current market trends .

12 Steps To Create The Perfect Business Plan

Every great business starts with a well-crafted plan. But what goes into a good business idea? Here are some key components:

1 – Chose A Business Plan Format 

Before creating a traditional business plan template, it's essential to consider the format most beneficial. In general, there are two commonly used approaches, the simple business plan, aka lean startup business plan and the traditional one.

The lean startup business plan may be suitable for those businesses that need to make decisions quickly and take action without needing in-depth detail. On the other hand, traditional plans contain more comprehensive details about every aspect of your business, such as a specific description of products or services offered and detailed financial statements, which makes them ideal for presenting to potential investors. 

So, deciding which format is best for you can guide each step of your overall approach toward constructing an effective business plan template.

2 – Create An Executive Summary

Business Plan Template Executive Summary

Once you've researched and discovered vital components to creating a successful business plan, it is essential to summarise these elements to present an executive summary. This section provides an overview of your entire business plan and should include your company's mission statement, vision, values, goals, and objectives. It should also provide an overview of your team, products or services, target market, competitive landscape, and growth strategy.

Moreover, an executive summary highlights your business's specific goals and objectives and what will be necessary for their realisation. In addition, this short section is designed to emphasise any innovative approaches or solutions that make your plan stand out from the competition.

Furthermore, the executive summary should also include a brief overview of your financial projections. This allows potential investors or stakeholders to understand the benefits of supporting your venture. Once this part of your business plan template is complete, you can move on to other steps necessary for launching a successful enterprise.

3 – Include the Company Description

Creating a comprehensive business description is the third step to crafting the perfect business plan. This section should include key details about the company and what it does, such as:

  • Organisational structure
  • The legal form of ownership
  • Information about founders and key figures
  • Information about the founders
  • Mission and vision statement
  • Current status of your company in terms of revenues and employees
  • Financial investments that have been made to date
  • Listing of corporate goals and objectives
  • How your products or services differ from other businesses in its industry while also expressing what sets your product or service apart from competitors

Moreover, As staffing needs inevitably change over time, providing a headcount overview in the company description is an effective way of recording critical information for future business growth . Once you have included all relevant data in your company description, potential investors can make well-informed decisions based on their understanding of your business operations.

4 – Conduct A Market Analysis

What Is A Market Analysis

The next step in creating the perfect business plan template is to conduct a market analysis. This requires thoroughly examining the external factors that influence and shape a company. Such factors include the industry environment, competitors, customer preferences, and demographic and economic trends.

A target market analysis helps to determine a company's competitive edge to craft strategies that will allow it to stay ahead of its competitors. In addition, this step enables businesses to identify potential buyers whom they can target more effectively through their marketing campaigns . 

Ultimately, conducting an in-depth target market analysis ensures that companies can make well-informed decisions regarding developing their products and services.

5 – Evaluate Your Competition

In this critical section, you must evaluate your competition with b2b data lists and supporting research. And describe who your main competitors are in the space. This includes researching the direct and indirect competitors in the industry, assessing their strengths and weaknesses, and analysing how they are positioned against each other.

This allows you to strategically differentiate your product or service from competitors to create an attractive value proposition for customers. Furthermore, by conducting competitor analysis regularly, businesses can stay informed of any changes in the marketplace and adjust their strategies accordingly. 

This will result in more innovative ways of positioning oneself competitively to attract potential customers and gain a competitive edge over rivals.

6 – Explain Your Service Or Product Line

Restaurant Marketing Usp Guide

This step is critical when preparing a plan as it gives potential investors, lenders, and customers all the necessary information about your company's offerings. In this section, you will describe your products or services, including features, benefits, value, and proposition. 

It should also include pricing information, if applicable. Clearly outline the product's features, pricing, relevant details, and any advantages your services offer over the competition.

A thorough explanation of each product line should also include all the necessary specifications, such as material costs, production methods, and expected timeline for completion. Furthermore, be sure to explain how each offering fits into the overall mission of your business, as well as why it will be beneficial in helping you achieve success.

7 – Describe Marketing And Sales Strategies

The next step in writing a business plan is thoroughly describing your product or service's marketing and sales strategies. You must explain who the target market is, what messages have been created for them, and how they will be delivered. 

Additionally, you need to show how sales will be managed, including forecasting sales, pricing strategies, and how you will service customers. Investing the time in detailing your marketing and sales strategies can make a huge difference in whether or not your business proposal receives the funding it needs. 

You must provide the following:

  • Thorough research.
  • Refined messaging and thoughtful price structures.
  • Plans for delivering exceptional customer service.

8 – Outline Funding Requirements

Constructing a perfect plan involves outlining the necessary funding requirements. It is vital to understand the total amount of capital needed and the sources it could come from. 

These may include investments from owners, directors, shareholders, and lenders, government-funded grants, or other forms of financial assistance. Knowing exactly which types of capital you need and where it should come from will make all the difference in evaluating your business plan's success. 

With detailed funding information specified in advance, you can be sure your perfect plan has considered every aspect of capital needs for the future.

9 – Create Financial Projections

Business Plans Financial Projection

Creating financial projections is easily the most challenging when you write a business plan. This step touches on a few different areas, including a balance sheet, profit and loss statement, and cash flow statement. 

Each of these can be daunting to compile, but measuring a business's success over time is imperative. To complete this step accurately, you must evaluate your organisation's current position financially and understand all potential future costs of goods sold and the variance between anticipated expenditures and actual expenses. 

Completing this step properly can give any plan holder excellent insight into how well your business operates throughout its lifespan.

10 – List Customer Segments

Identifying customer segments is an essential step in writing a perfect business plan. Differentiating customers into various segments allows for more focused and targeted marketing for each specific group. Additionally, it helps outline a product pricing structure that considers the different needs of each segment.

When segregating customer segments to create tailored solutions, it is also essential to consider geographic differentiation, distribution channels, and age demographics. All these efforts will prove vital for developing a successful business plan.

11 – Detail Operation Strategies

How To Create A Marketing Plan Outline

To ensure all components are complete, creating detailed operation strategies before beginning is essential. This step allows for identifying any possible discrepancies in the plan's layout. Additionally, this section includes delving into all financial aspects and knowing how the actions of specific departments impact others.

Companies should also remember that running a successful business relies on devising practical performance standards, procedures, and processes. To compile a comprehensive plan, you must closely examine all areas of your company's operations while creating an organised yet insightful structure. 

Proving all relevant data collected can support the outlined goals. Crafting these strategies carefully will achieve unparalleled success in various business endeavours or projects.

12 – Create An Appendix

Constructing an appendix for a business plan is a great way to supplement the data in the plan's body. In essence, an appendix serves as a helpful reference tool that will provide additional information that can be beneficial to understanding the complete picture. 

It's also essential for clarifying and corroborating any insights turned up throughout the research stages of developing a business plan. Commonly filed items in the appendix include organisational charts, licenses, resumes and biographies for crucial personnel, supporting documents such as letters of intent or reference, patents, and product specifications. 

Allowing more room for comprehensive study, including an appendix when writing a business plan, will make it stand out from competitors and potentially increase investors' interest level.

Avoid These Common Mistakes When Writing A Business Plan 

Writing a business plan is no small task. It requires time, research, and strategic planning to cover all the bases necessary for success. It would help if you got it right the first time with so much on the line.

To help you with writing, we've compiled a list of five common mistakes you should avoid when writing your business plan. 

Beware Of Boring Business Ideas

One of the most important aspects of any business plan is its concept. If your business idea is innovative and marketable, it will survive today's competitive landscape. 

Before you invest too much time and energy into writing a plan, make sure your concept is unique and feasible that has the potential for long-term success. 

No Exit Strategy

You should include a well-thought-out exit strategy in every business plan. An exit strategy outlines how and when you intend to leave your business if things don't work out as planned. 

This could involve selling to another entrepreneur, liquidating your assets, and closing the shop. Whatever the case, having an exit strategy will save you from costly mistakes.

Inaccurate Financial Projections

Financial projections are a significant component of any successful business plan and must be taken seriously. If not done correctly, inaccurate financial projections can lead to unforeseen problems. 

Such as insufficient capitalisation or cash flow issues that could kill your project before it gets off the ground. To ensure accuracy in your projections, it's essential to consult with experienced professionals who specialise in this area before finalising anything in your plan.

Spelling And Grammar Errors

No matter how great an idea may be or how soundly constructed its financials are, spelling and grammar errors can immediately destroy its credibility. 

To avoid this pitfall, ensure all sections are thoroughly edited by yourself or an experienced editor before submitting them to potential investors or lenders.

Unbalanced Teams

The team behind any successful business is just as important as the idea itself. When forming your team to write a business plan, ensure everyone involved has skills and experience related to the project. 

This means filling roles such as marketing expert, financial analyst, operations manager, etc., depending on what kind of company you're starting up and its needs. 

Tips To Make A Standout Business Plan 

Business Plan Creator

As we know, a business plan is essential for any entrepreneur who wants to be successful in their venture. It outlines your goals, strategies, and resources to help you reach them.

The goal of a business plan should be to get potential investors interested in your project on board. And provide them with all the necessary information to make an informed decision. 

However, writing a good business plan can be daunting, but it doesn't have to be. Here are practical tips to help you create a business plan that stands out from the rest: 

Know Your Audience

Before you start writing your business plan, you must understand your audience and what they expect from your business. 

Knowing this will help you tailor the content according to your plan so that it's geared toward the people reading it, making it more appealing and convincing.  

Have A Clear Goal

Having a clear goal will give your business plan a candid structure and ensure all aspects are focused on achieving that goal. 

It should clearly define what success looks like for you, whether it's getting funding or launching a new product line.

Invest Time In Research

Researching the industry, market trends, competitors, and potential partners is essential in creating an effective business plan. 

This research will help you make informed decisions and strategies throughout the process and ensure your plans are realistic and achievable based on current market conditions. 

Keep It Short & To The Point

Investors don't have time to read lengthy documents; they want concise information about why they should invest in your project quickly and easily. 

Keep things brief but still provide enough details for them to understand what makes your project unique and profitable. Make sure they remember you when considering potential investments.

Make It Easy To Read

Your business plan should be easily read with clear headings, section titles, and bulleted lists. 

It will ensure that they can quickly scan through the document without reading through paragraphs of text which can become tedious.

Keep Tone & Style Consistent

Consistency across both tone and style will help to keep them engaged. You don't want to confuse investors with conflicting styles throughout different sections or pages.

So, use a consistent style and keep the tone formal. It will provide you with all the information they need quickly and effectively without getting distracted from critical points when reading your planning proposal.

Invest In Quality Design & Printing

A well-designed document with quality printing reflects professionalism which can help build trust with investors. It will give the investors confidence that their money would be put to good use if invested in projects like yours.

Use A Business Plan Software

Many software programs available online provide templates for creating professional-looking documents. As well as guidance on how to write each section and include relevant financial information. They make it easier and faster than starting from scratch when creating an effective business plan. 

These programs also allow you access to editing capabilities at any point throughout the creation process, thus giving complete control over the final output before presenting the finished product. Venngage is wildly popular for providing useful templates to create your business plans with easy-to-use editors in no time. 

An effective business plan takes time, effort, research, planning, and design skills . Your business plan is a document that should grow and change as your business grows and changes. The most important parts of your business plan are your business goals and objectives. These are the foundation upon which you will build your research, company structure, marketing, and sales strategies. Keep these items in your mind as you develop your business plan.

Business Plans FAQs

What's the most important thing to consider when creating a business plan.

It would help if you always started with your purpose. You must figure out your purpose and why you are creating your business. Your business plan should answer these questions.

How do I write a business plan?

The first step to writing a business plan is to write down your purpose and goals. Then, it would help if you decided who will be involved in your business and how you will operate.

How do I make sure my business plan is perfect?

You will want to write your business plan in the third person so it has a different voice than you. You also want to ensure that your business plan is easy to read.

What is the difference between a business plan and a mission statement?

A business plan is a document that describes your company, while a mission statement is a summary of what you stand for.

What should I include in my business plan?

You should include all of the information you have about your business. You should also include information about your company's history, employees, competitors, and plans.

What is the best way to get feedback on my business plan?

It would be best to get feedback on your business plan from your lawyer, accountant, and other advisers.

Is it possible to have too many goals in a business plan?

You may have too many goals, but it depends on how you plan to achieve them.

What should I consider when making decisions about a new business?

When starting a new business, you must consider your risk tolerance. It would be best to consider how much capital you have available.

How can I make my business plan more concise?

When writing your business plan, you can make it more concise by eliminating unnecessary information. You also can make your business plan more concise by using bullet points to summarise your information.

Author Bio:  Muhammad Aqeel is an experienced professional specialising in content creation. He has been working with Venngage Infographics, a leading graphic design platform. He is an expert in producing creative and engaging content on online tools and software.

Subscribe to the Blog

Signup for the Best Design, Branding and Business Marketing Insights by Email. Once a Week. No Spam. Ever.

You have successfully joined our subscriber list.

Photo of author

Stuart Crawford

Need help building your brand.

Let’s talk about your logo, branding or web development project today! Get in touch for a free quote.

Leave a Comment Cancel reply

Trusted by businesses worldwide to create impactful and memorable brands.

At Inkbot Design, we understand the importance of brand identity in today's competitive marketplace. With our team of experienced designers and marketing professionals, we are dedicated to creating custom solutions that elevate your brand and leave a lasting impression on your target audience.

swiss flag

Writing a business plan: The 12 steps

Building a business plan is no easy task. It requires that you have a very clear vision of your market, to understand where you are going to set foot. The objective is to help you show investors that your idea is well-grounded and that it will create value over time. And since this is an absolutely essential step when you want to launch your business, you will need a method to fully realize it. So, here are the steps you will need to look at!

PART 1: Understanding the market

When you set up your company, you must first and foremost understand the market you want to operate in. To do this, you have to proceed carefully.

Step 1: Market analysis

To begin, you need to define the scope of your market. So start by asking yourself if there is a demand for the offer you want to set up! Skip this step and you don't need to go any further in your analysis...

Next, define your field of action : are you limited to the national territory or do you plan to expand internationally as well? Your research depends greatly on this point.

Finally, define who you wish to propose your offer to? In order to analyse your market, define your target as precisely as possible: age, buying habits, socio-professional category, location, everything must be taken into account!

Step 2: The size of the market

Once you have defined your target and your scope of action, you need to ask yourself several questions about the competition. Are there many players on the market? Start by listing them, then analyze how they operate in the market. What is their communication strategy? How do they distribute their products? Also, analyze their pricing and the specific target(s) they are aiming to reach.

Take stock of the number of people who might be interested in your product or service, to be as accurate as possible. Cross-reference demographics and define the size of your market rigorously, without being overly optimistic, but factual!

Step 3: How do you get started?

Next, you need to establish what your business needs to get started. Minimum capital for articles of association, premises, offices, payroll charges, telephone, car, etc.: list everything, and be comprehensive, so as not to be surprised. If you find costs are getting too high, look for alternatives. In the beginning, don't necessarily try to purchase the best equipment. Start slowly with the bare essentials, and you'll invest as the business takes off.

Also factor in the amount of time you'll need for research and development to create your product. Time is money, indeed. In your business plan, every detail counts!

Step 4: The importance of the prototype  

If you need investors, this is an essential step. You need to create a sample of your product, to show exactly what it will look like. To do this, determine what resources will be necessary to create your prototype: cost of materials, cost of research and development to improve the prototype, cost of design, etc.

Step 5: Where will you locate your business?

In your business plan, specify the location of your structure. Are you going to rent or buy? Compare prices and rents in several areas to make sure you make the right choice in terms of location. Also, ask yourself which professionals can be found in your target market. Are you faced with the direct competition? Could it represent a hindrance to your development?

Step 6: Understanding investors

When writing your business plan, you should have only one goal in mind: to make your idea as solid and viable as possible. Ask yourself what investors are looking for to put money into your business. Your concept must be attractive: be precise, factual, and talk about profitability. If your market is competitive, insist on what extra assets you have that your competitors lack!

And of course, once your arguments are ready, you will need to identify these potential investors. In order for banks to lend you money, they will analyze the risk your business represents. They need to be sure that they are investing money in a project that is capable of generating revenue.

PART 2: Structuring your business

After understanding the market, your customers, competitors and investors, you will need to start structuring your business.

Step 7: Define your company

To begin, you will need to make a short description of your business . Talk about the people behind the project and present your team. Explain where you want to go and what your objectives are. By reading this summary, you should have a very clear initial overview of your activity, and understand what your expectations are.

Once you have talked about your objectives and your team, talk about your products and services .  Describe the functions they will perform and the needs they will meet. Also, emphasize their competitive advantages and what they bring to the market.

Step 8: Define your strategy

After analyzing your market at length, broadly, and across the board, you can now define a strategy to carve out a place for yourself in it. You know everything about your competitors and your targets. This enables you to define which strategy you need to succeed.

Are you going to opt for a differentiation strategy ? Are you going to focus on design ? On service ? On a product that delivers better performance and impeccable quality ? A strategy based on low prices? A strategy targeting the higher end of the market?

In short, define your guideline , the one you will determine to follow, no matter what!

Step 9: Organize your company

If your team includes many people, each person's role must be very clearly defined! You will have to shape and organize your team, based on each person's skills and qualities. Who will be in charge of sales? Who will manage marketing? Who will handle the financial side?

Also ask yourself if you will have to hire staff : How many? When? To carry out what tasks and meet what objectives? Also talk about the profile of the people you will need to employ, the skills they will need to have and the experience you will require from them.

Remember, a business plan is not just a matter of talking about the present: you have to project yourself over several years to make an accurate turnover forecast .

To convince investors, you will have to show that your managerial skills and your ability to develop a business are real.

Step 10: Put together the marketing plan

Thanks to the market analysis you have conducted, you will be able to define a marketing plan that will stand the test of time. Indeed, this is a crucial step. After all, what's the point of having the best product or service if you can't deliver to the right people, in the right place, and in the right way? Your marketing plan spells it all out!

Here, you will talk about the ways and means you will implement to reach your target:

Which market segment will this product appeal to?

What will the price of such a product be?

Which sales argument should be made for which segment of the customer base?

What communication plan will be set up? Which media will you opt for, how long, and on what budget?

Step 11: Building your sales pitch

A salesperson needs a sales pitch. In this part of your business plan, you will have to list and explain each of the sales arguments, which will also help you set up your marketing plan. You need to find a sales philosophy that attracts your customers. Build your slogan and define the lines you will rely on to create a privileged relationship with your customers and build your audience.

Step 12: The financial plan

Finally, you will create your financial plan in your business plan. It includes both your business model and all the figures that will help you assess the value creation of your business.

And here, the challenge is to leave nothing out. On a set of tables, you need to present essential data such as :

Sales forecasts

The amount of investment required

Amounts of expenses (salaries, rent, purchases, equipment...)

Expected profitability

Cash position

To ensure that all your data is clearly processed, you will need to create a profit and loss forecast , planned balance sheet , financing plan , and cash budget .

Your aim here is to supplement the editorial part you have already completed with concrete figures that show everything about your strategy. You will have to convince investors, showing them that your project will be profitable and will bring value .

Tools to help you create your business plan

Luckily, you're not alone in carrying out all these tedious steps! In order to organize yourself as well as possible and not to forget any data, you can resort to a number of solutions such as Liveplan or Strategyzer . These online tools will allow you to build your business plan quickly.

With Liveplan , you rely on concrete models and are surrounding yourself with professionals who are available to give you advice.

Strategyzer helps you build a canvas of all the blocks that make up your business plan: this way, you describe, designate and manage your project easily!

And to succeed in convincing your investors, this type of reliable tools might well make the difference! You integrate all your data, your market analyses, your segments, your financial, marketing and communication strategies, your differentiation keys and you steer your project from wherever you want.

And since all members of your team can have access to this data, and manage their own part, collaboration is now much easier: you clearly know where you're going, and how you're going to get there.

Conclusions

To operationalize your project and give you every chance to develop it, the business plan is an essential step: it brings together all the important data and all the strategies you need to put in place to make your business work. Don't hesitate, and be as precise as possible: you must be convincing and investors must have a clear idea of who you are, what you want to do and how you are going to deliver. So, get reliable tools to make your decisions and make your objectives clear!

Form your company with NewCo

The easiest and fastest way to form a company in switzerland..

12 Steps to a Successful Business Plan

10 steps to the perfect business plan for your creative venture

The perfect business plan is your first step to success in the creative sector.

A notebook lies open on a desk with Business Plan written on one page

Writing the perfect business plan is one of the most important first steps to launch your own creative venture, but it can also be one of the most daunting. It's the first real stage in properly planning your venture, which can help make your dream design business feel a lot more real, but it can also be hard to know where to start. You might even be tempted to skip this step altogether, but would be a mistake.

The perfect business plan provides clarity and direction for your whole enterprise. It can help you raise cash from banks and or other investors, but even if you're not looking for that, it can help you home in on a gap in the market and work out how your design business will fill it (and turn a profit in the process).

So before you start looking at website wireframes, choosing a logo or shopping around for studio space, it's time to put pen to paper. Your plan should be focused, readable, and most importantly explain why your business will be a success. In the guide below, we'll look at the 10 traditional ingredients that any business plan should cover, with pointers on what to include in each. For more tips on setting up your creative venture, see our guide to how to start a design business and how to improve your graphic design skills .

The perfect business plan: what should it include?

There's no one layout or formula for the perfect business plan, but there are general conventions on what a business plan should include. Exactly how you write it will depend a little on who you're writing for – for example, if you aim to present it to a bank or other potential investors or just to serve as a guide for yourself and colleagues. 

The best business plans are usually fairly brief and keep things simple. They succinctly explain what you want to do, how you will get there and what you need to do to reach that goal. While there are no set rules, we'll look at the more traditional elements to include in your business plan below.

01. Write an executive summary

An executive summary essentially summarises your design business in a quick, succinct pitch. This is the part that investors or banks will read first so it needs to be concise and to the point; certainly no more than a couple of pages. Above all it needs to explain your business idea. 

The executive summary should include your company name and the reason you chose it, your mission statement, details of your product or service, and basic information about your company’s leadership team, employees, and location. You should also make sure you cover what makes your creative business different, who will you sell your services to and a list of short- and long-term goals. For example, where exactly do you see your business in five or so years?

You'll also want to include details on financial goals and growth plans, especially if you plan to seek investors. Set out the turnover you expect to make and the cash you think you'll have at the end of the first year; plus where you'll get money from (grants etc); and how much money you plan to invest yourself.

02. Compose an elevator pitch

An 'elevator pitch' is a much briefer summary of your business that serves to sell it to potential investors, or to clients, in few words. It should be possible to read an elevator pitch in under two minutes. The idea is that you could deliver it to any potential investor you might happen to cross in an elevator, but don't worry if that kind of meeting doesn't tend to happen to you; the pitch will still prove useful for understanding the real selling point of your future business. 

Your elevator pitch should include the name of your business, your mission, what your design business will do, who it will do that for and what makes it different. It should be direct, to the point and free from any kind of jargon or waffle.

03. Describe yourself (and any partners)

The next section in the perfect business plan should describe the people behind the business – that means you (and your partners if you have any). You should outline your experience and training, why you want to start your creative business and why you will make it a success. 

Do the same for every partner in the business and attach well-crafted résumés (see our guide to the perfect résumé for creatives ). The aim of this section is to show investors why you have the know-how to make your business successful, and also to allow you and your partners to take stock of your strengths and how you plan to use them.

04. Define your design business's offering

The next thing to include in the business plan for your design venture is to define the service that you're going to deliver. This should be more specific than you might first think because unless you're planning to launch a fully fledged agency, you're probably not going to be able to cover everything. Are you going to offer graphic design, motion design, web design, mobile, 3D? Are you going to cater to anyone and everyone or will you aim to serve a specific industry or niche?

Remember that any bank or other potential investor will probably know very little about the subject area, so try to describe exactly what the services will entail and what your business's output will be. Don't worry if it sounds patronising or overly simplified. You may know what motion graphics means, but will your bank manager? You should also mention here whether you plan to expand into other services in the future. So if you're starting in graphic design, are you planning to expand to offer full branding services?

05. Describe your clients

The perfect business plan doesn't only describe who you are and what your business will offer; it also offers a very clear description of your target customer. Where are they based? What needs do they have and how will you fulfil them? Asking these questions can be a good test of just how well you understand the client you're aiming at and may reveal a need to do more research. Be sure you really understand your target customer and there's more chance an investor will understand.

You need to describe your typical client and what makes them buy design services, whether you have worked with them before and whether you have any future jobs lined up already. Try to be as detailed as possible. If you've already worked for a specific client in some capacity (maybe in a freelance job) explain this here too since this demonstrates an ability to generate business.

06. Do a SWOT analysis

Remember that your customers aren't the only influence on your business. There are also competitors and the state of the economy as a whole. How big is the market you'll serve? How much is the market expected to grow in the future? Who will be your main competitors now and can you expect more competition in the future? These are some of the questions you'll need to answer in your market analysis. 

You should make a simple SWOT analysis (strengths, weaknesses, opportunities, threats) to define the opportunities and threats in your market and compare them to your business’s strengths and weaknesses. Draw up a list of competing businesses, both big and small. Analyses what they do well and what they do badly, and consider what will make your offering different. Opportunities are external factors that could make your business thrive (is the market changing? are clients demanding a certain kind of work that you do well?). Threats are the same but opposite (if you're an illustration studio and budgets dry up, what will you do?).

This research will help to define where there are gaps and where you need to focus (once you've done this, go back through your sections and make sure your business still seems relevant. Any market research you can do in the field (perhaps talking to past clients and getting their take on the market) can be included here as well).

07. Outline your marketing strategy

How are you going to reach potential customers? Word of mouth? Advertising? Promotional material? Social media? Your own website? This is a question that should ideally be answered after carrying out market research to find out how potential clients find and contract the services you'll be providing. 

Make sure the marketing strategy you define in your business plan outlines the expected costs for all of these things because, with the possible exception of word of mouth, they're far from free (see finance below).

08. Define your USP

Once you've carried out a SWOT analysis, including analysis of your competitors, you're ready to define your USP, or unique selling point. This is incredibly important to include this in your business plan. It sums up in a nutshell why a client choose your business over another creative business? So what will you do better? 

A USP is usually summed up in a single sentence; two at the most. This can be a challenge but the shorter the better since that will make it easier to focus on delivering it. 

09. Forecast your budgets

Now it's time to explain how you'll actually make money. Consider details such as how long you spend on projects and how you'll charge for this. If you'll have an hourly rate that state what that will be. You also need to say how you'll get paid (almost certainly on invoice).

You'll also need to define your costs here. This will be of great interest to any potential investors, so pay great attention to it. You'll need to outline both one-off costs such as the equipment you'll need to set up to regular outgoings such as staff, rent (explain where you'll be working from), software subscriptions, bills and insurance.

Calculate your total costs per month and other costs of running the business and define How much income you will need each month to realistically survive as a business, and how much you aim to make. A cash-flow forecast shows how much money will enter and leave your design business and will help identify whether you're going to be able to make things work financially. This can be a sobering moment. 

Be pessimistic and realistic. Don't assume you will be working flat out at your maximum rate from the start because it's unlikely that you'll achieve that. It’s better to underestimate how you'll perform and overachieve than the other way around. In this section, you also need to outline any financial needs you have for potential investors. In this case, outline the length of time your request will cover and give a detailed description of how you'll use the funds.

10. Make a backup plan

Finally, what if things don't work out. We've stressed the importance of taking the time to make the perfect business plan, but a plan is a plan and something things turn out differently. This is why it's important that you also have a back-up plan.

If things aren't working out, what will you change in the short or long term in order to turn things around. If you aren't making money, do you plans ready for what you could do to make the business more profitable? Could you sacrifice international clients/pitches for local ones? Could you employ freelancers as and when they are needed instead of hiring a junior designer full-time? Could you downsize your planned studio space or switch to a coworking space (See our guide to the world's coolest coworking spaces for inspiration).

There's a lot to think about when writing a business plan for a creative business, but with careful consideration, it can help you prepare for the undertaking ahead and keep you focused no matter what challenges you face. If you're passionate about making your business a success, writing your plan will be the first step on that path.

  • The best places to sell design online
  • What are NFTs?  Non-fungible tokens explained
  • NFT marketplaces you should know

Thank you for reading 5 articles this month* Join now for unlimited access

Enjoy your first month for just £1 / $1 / €1

*Read 5 free articles per month without a subscription

Join now for unlimited access

Try first month for just £1 / $1 / €1

Get the Creative Bloq Newsletter

Daily design news, reviews, how-tos and more, as picked by the editors.

Joseph Foley

Joe is a regular freelance journalist and editor at Creative Bloq. He writes news and features, updates buying guides and keeps track of the best equipment for creatives, from monitors to accessories and office supplies. A writer and translator, he also works as a project manager at London and Buenos Aires-based design, production and branding agency Hermana Creatives, where he manages a team of designers, photographers and video editors who specialise in producing photography, video content, graphic design and collaterals for the hospitality sector. He enjoys photography, particularly nature photography, wellness and he dances Argentine tango.

Related articles

  • Auto Insurance Best Car Insurance Cheapest Car Insurance Compare Car Insurance Quotes Best Car Insurance For Young Drivers Best Auto & Home Bundles Cheapest Cars To Insure
  • Home Insurance Best Home Insurance Best Renters Insurance Cheapest Homeowners Insurance Types Of Homeowners Insurance
  • Life Insurance Best Life Insurance Best Term Life Insurance Best Senior Life Insurance Best Whole Life Insurance Best No Exam Life Insurance
  • Pet Insurance Best Pet Insurance Cheap Pet Insurance Pet Insurance Costs Compare Pet Insurance Quotes
  • Travel Insurance Best Travel Insurance Cancel For Any Reason Travel Insurance Best Cruise Travel Insurance Best Senior Travel Insurance
  • Health Insurance Best Health Insurance Plans Best Affordable Health Insurance Best Dental Insurance Best Vision Insurance Best Disability Insurance
  • Credit Cards Best Credit Cards 2024 Best Balance Transfer Credit Cards Best Rewards Credit Cards Best Cash Back Credit Cards Best Travel Rewards Credit Cards Best 0% APR Credit Cards Best Business Credit Cards Best Credit Cards for Startups Best Credit Cards For Bad Credit Best Cards for Students without Credit
  • Credit Card Reviews Chase Sapphire Preferred Wells Fargo Active Cash® Chase Sapphire Reserve Citi Double Cash Citi Diamond Preferred Chase Ink Business Unlimited American Express Blue Business Plus
  • Credit Card by Issuer Best Chase Credit Cards Best American Express Credit Cards Best Bank of America Credit Cards Best Visa Credit Cards
  • Credit Score Best Credit Monitoring Services Best Identity Theft Protection
  • CDs Best CD Rates Best No Penalty CDs Best Jumbo CD Rates Best 3 Month CD Rates Best 6 Month CD Rates Best 9 Month CD Rates Best 1 Year CD Rates Best 2 Year CD Rates Best 5 Year CD Rates
  • Checking Best High-Yield Checking Accounts Best Checking Accounts Best No Fee Checking Accounts Best Teen Checking Accounts Best Student Checking Accounts Best Joint Checking Accounts Best Business Checking Accounts Best Free Checking Accounts
  • Savings Best High-Yield Savings Accounts Best Free No-Fee Savings Accounts Simple Savings Calculator Monthly Budget Calculator: 50/30/20
  • Mortgages Best Mortgage Lenders Best Online Mortgage Lenders Current Mortgage Rates Best HELOC Rates Best Mortgage Refinance Lenders Best Home Equity Loan Lenders Best VA Mortgage Lenders Mortgage Refinance Rates Mortgage Interest Rate Forecast
  • Personal Loans Best Personal Loans Best Debt Consolidation Loans Best Emergency Loans Best Home Improvement Loans Best Bad Credit Loans Best Installment Loans For Bad Credit Best Personal Loans For Fair Credit Best Low Interest Personal Loans
  • Student Loans Best Student Loans Best Student Loan Refinance Best Student Loans for Bad or No Credit Best Low-Interest Student Loans
  • Business Loans Best Business Loans Best Business Lines of Credit Apply For A Business Loan Business Loan vs. Business Line Of Credit What Is An SBA Loan?
  • Investing Best Online Brokers Top 10 Cryptocurrencies Best Low-Risk Investments Best Cheap Stocks To Buy Now Best S&P 500 Index Funds Best Stocks For Beginners How To Make Money From Investing In Stocks
  • Retirement Best Gold IRAs Best Investments for a Roth IRA Best Bitcoin IRAs Protecting Your 401(k) In a Recession Types of IRAs Roth vs Traditional IRA How To Open A Roth IRA
  • Business Formation Best LLC Services Best Registered Agent Services How To Start An LLC How To Start A Business
  • Web Design & Hosting Best Website Builders Best E-commerce Platforms Best Domain Registrar
  • HR & Payroll Best Payroll Software Best HR Software Best HRIS Systems Best Recruiting Software Best Applicant Tracking Systems
  • Payment Processing Best Credit Card Processing Companies Best POS Systems Best Merchant Services Best Credit Card Readers How To Accept Credit Cards
  • More Business Solutions Best VPNs Best VoIP Services Best Project Management Software Best CRM Software Best Accounting Software
  • Manage Topics
  • Investigations
  • Visual Explainers
  • Newsletters
  • Abortion news
  • Coronavirus
  • Climate Change
  • Vertical Storytelling
  • Corrections Policy
  • College Football
  • High School Sports
  • H.S. Sports Awards
  • Sports Betting
  • College Basketball (M)
  • College Basketball (W)
  • For The Win
  • Sports Pulse
  • Weekly Pulse
  • Buy Tickets
  • Sports Seriously
  • Sports+ States
  • Celebrities
  • Entertainment This!
  • Celebrity Deaths
  • American Influencer Awards
  • Women of the Century
  • Problem Solved
  • Personal Finance
  • Small Business
  • Consumer Recalls
  • Video Games
  • Product Reviews
  • Destinations
  • Airline News
  • Experience America
  • Today's Debate
  • Suzette Hackney
  • Policing the USA
  • Meet the Editorial Board
  • How to Submit Content
  • Hidden Common Ground
  • Race in America

Personal Loans

Best Personal Loans

Auto Insurance

Best Auto Insurance

Best High-Yields Savings Accounts

CREDIT CARDS

Best Credit Cards

Advertiser Disclosure

Blueprint is an independent, advertising-supported comparison service focused on helping readers make smarter decisions. We receive compensation from the companies that advertise on Blueprint which may impact how and where products appear on this site. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impact any of the editorial content on Blueprint. Blueprint does not include all companies, products or offers that may be available to you within the market. A list of selected affiliate partners is available here .

How to start a small business at home in 2024

Blair Travers

Sierra Campbell

Sierra Campbell

“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.

Published 8:07 a.m. UTC Feb. 16, 2024

  • path]:fill-[#49619B]" alt="Facebook" width="18" height="18" viewBox="0 0 18 18" fill="none" xmlns="http://www.w3.org/2000/svg">
  • path]:fill-[#202020]" alt="Email" width="19" height="14" viewBox="0 0 19 14" fill="none" xmlns="http://www.w3.org/2000/svg">

Editorial Note: Blueprint may earn a commission from affiliate partner links featured here on our site. This commission does not influence our editors' opinions or evaluations. Please view our full advertiser disclosure policy .

Featured Image

PeopleImages, Getty Images

Starting a small business at home can help you turn your passions, skills or ideas into financial prosperity. There are some unique perks and challenges to consider when deciding to start a home-based business. 

You’ll also want to have a solid plan and follow some key steps to get your business off on the right foot. It’s helpful to know where you can find ideas, answers to your questions and other resources you need to run an at-home business successfully.

Should you start a business at home?

There are many factors to consider when deciding to start a small business at home. On the one hand, it’s important to make sure there is demand for your business. On the other hand, you want to be able to handle the amount of business you receive. Gauging things like demand, profit margins and the ability to scale your business early on can help you avoid trouble down the road.

Across the country, at-home businesses make up a large portion of small businesses. C.E. “Tee” Rowe is the president and CEO of America’s Small Business Development Centers (SBDC), which provides free or low-cost support for small businesses in partnership with the U.S. Small Business Administration. “Here at America’s SBDC, we have seen an uptick in home-based businesses that started during the pandemic but continues to date,” said Rowe. 

Pros of a home business

Here are some key benefits to starting a business at home:

  • Increased flexibility: Set your own hours, freeing you up for other commitments as needed.
  • Less commuting: Save time and money by skipping the drive to work.
  • Comfortable work environment: Design your workspace how you want it. After all, it is your home.
  • Money-saving perks: Pay lower startup costs compared to larger businesses by avoiding costs like renting retail or office space. Take advantage of tax breaks for at-home businesses.
  • Reduce risk: Protect yourself by limiting your liability and avoiding the cost and risk of maintaining commercial space.
  • Rewards for your hard work: Work hard for your business, and your business reaps the benefits instead of some other employer.

Cons of a home business

These are some of the disadvantages of starting a business at home:

  • Limited space: You give up part of your home, and even then, you may still need more space for your business.
  • Distracting work environment: Crying babies, barking dogs and loud neighbors can all be distracting when running a business at home.
  • Professional boundaries: Some people may feel awkward about meeting to discuss business at your home or a public location.
  • Increased mental health risks: Running a home business can feel isolating for some. A lack of social interaction, time outside, work-life balance or effective time management can also threaten mental health.
  • Growth restrictive: If your home-based business scales too rapidly, you may outgrow your workspace quickly. In this situation, success creates a problem for home businesses to solve.
  • Increased costs: Whether you’re paying new employee salaries or wages or forking over more money for higher utility bills, you may feel the financial squeeze.

Featured LLC service offers

Zenbusiness.

12 steps of a business plan

Via ZenBusiness’ website

Free version available

Lowest published package price

12 steps of a business plan

Via LegalZoom’s website

Northwest Registered Agent

12 steps of a business plan

Via Northwest’s website

7 steps to start a home business

After considering the pros and cons, does the idea of taking the reins and starting a home business appeal to you? You’re not alone. 

“When we work with individuals seeking to start a home-based business, it is frequently based on a desire to control their own circumstance and success, which are great reasons, but it always needs to be thought out carefully,” Rowe explained.

Planning is key. From creating a business plan and determining your business structure to securing funding and setting your marketing strategy, there’s a lot to think through. Follow the steps below to get on the right track to starting a small business at home.

1. Find your niche

Plenty of successful at-home businesses arise from emotion: a passion to do what you love, a frustration with the status quo or excitement to seize on a timely opportunity.

If you’re struggling to find your niche, ask yourself:

  • What do you love to do that others may find challenging?
  • What is a need that no business currently has the right solution for?
  • What are you good at? What do people ask for your help with?
  • What high-demand skills or services do you have to offer?

2. Draft a business plan

Having a business plan is essential for running your business effectively. As Rowe pointed out, “Every business needs a solid, comprehensive plan to guide them to success. That plan needs to focus on skills, finance, revenue and marketing.”

A business plan outlines the direction of the business — its goals, strategies, structure, ways of measuring success and plans for dealing with things like change and risk. Simply put, it’s the roadmap to success for your business.

When creating your business plan, include key sections such as an executive summary, a business description, market analysis and financial projections. For more on what to cover, check out this step-by-step guide to drafting a business plan .

3. Select a business structure

According to the IRS, the most common business structures are sole proprietorships, partnerships , corporations and limited liability companies (LLC) . Each business structure comes with its own set of operational, legal, financial and tax considerations. 

A sole proprietorship is a business owned and operated by a single individual, while a partnership is jointly owned by two or more individuals who share responsibilities. 

In contrast, corporations — like C corporations and S corporations — are independent legal entities. C corporations limit shareholder liability but are highly complex. S corporations feature pass-through taxation, distributing income (and losses) to shareholders.

While sole proprietorship is a common structure for just starting out, LLC is another popular option for at-home businesses. It combines elements of a corporation and a partnership, offering limited liability to its members and the flexibility of pass-through taxation. Members of an LLC can choose to be taxed as a sole proprietorship, partnership, C corporation or S corporation.

4. Register your business and get an EIN

After you choose a business structure, you’ll need to register your business with state and federal governments. Select a business name , pay fees and provide required documents, which vary by state.

After getting registered with your state, you can then apply for an Employer Identification Number (EIN) from the IRS. Once you’re approved, you’ll receive this unique nine-digit number that is essential for all sorts of business purposes, from filing your taxes to hiring employees. 

Not all businesses need an EIN, such as sole proprietors and single-member LLCs with no employees.

5. Get any required licenses and permits

Depending on your industry and federal, state and local requirements, you may also need to obtain licenses and permits for your business. 

Here are some examples of licenses and permits you may need, depending on your business:

  • Occupational, professional or trade licenses.
  • Online business permits.
  • Sales tax permits.
  • Health department permits.
  • Safety permits.
  • Home-based child care licenses.
  • Zoning, signage, environmental and other permits to operate an at-home business, as required by local government, HOA or deed restrictions.

6. Obtain funding for your business

Many owners fund their businesses using their own savings. Self-funding is a viable choice if you can get up and running without much money, can come up with the needed funding from your own accounts or can ask for help from family or friends. 

You can also apply for a business loan . Banks will likely want to see a rock-solid business plan, strong financial projections, good personal and/or business credit history and any collateral you’ll use for your loan. If you are a good candidate for lending, make sure that shows in your application so that you can get the best funding and terms for your business.

If you don’t have much personal or business credit history, it may be easier to get a business credit card . This gives you benefits like payment flexibility, credit card rewards and essential early or emergency spending power. It will also help your business establish or strengthen its credit so you can get favorable terms on future loans and other credit.

7. Launch and market your business

You’ve planned out your business, defined its structure and gotten your business registered, licensed, permitted and even paid for. Now it’s showtime. For many who seek to start a small business at home, the launch is the most exciting part of the journey. You are now ready to conduct business.

It’s also important to get others excited about your small business — and keep them engaged. Here are some of the most common marketing strategies for small home-based businesses:

  • Social media marketing: Reach potential customers on platforms like Facebook, Instagram, TikTok and X (formerly Twitter) by sharing engaging content and updates.
  • Business website: More than just a place to sell your products or services online, your business website should help users find what they want to meet their needs. It should also help achieve business objectives by offering features like payment services or e-commerce functionality .
  • Advertising: Platforms such as search engines and social media can help you reach your target audience.
  • Content marketing: Write blog posts, produce videos or create helpful graphics to explain what your business offers and to establish trust and authority.
  • Email marketing: To keep business coming back, build an email list to communicate using promotions, newsletters and updates.
  • Word of mouth: In the early stages, many small home-based businesses rely on word of mouth. You can also ask for customer reviews on platforms like Google and Yelp.

Weigh the costs and benefits when deciding on your marketing plan, so you choose what’s best for your business.

Top home business ideas

Check out these home business ideas to find the right fit for you:

  • Retail: Sell products you make — including crafts and customized gifts — or resell products you get for less than what you pay for them.
  • Case-based services: Open up an in-home daycare, provide home-based care for adults or even take care of pets by offering pet sitting and mobile grooming.
  • Events: Plan weddings and events. Create the perfect look as a makeup artist or stylist. Play music in a band or take your place on the 1s and 2s as a DJ.
  • Art and creative services: Capture the moment as a photographer, or maybe you’d rather bring your vision to life as an artist. More of a words person? Write, edit or translate content. 
  • Education: Teach the next generation how to do math, play an instrument or learn a new language. Provide adults with specialized training in arts and crafts, life coaching or test preparation.
  • Health and wellness: Become a personal trainer to get people in the best shape of their lives or a mental health counselor to help them find their inner peace.
  • Home and real estate: Transform homes by organizing, decorating or even staging. Produce virtual home tours for real estate agents, or become a realtor yourself.

Resources to start a business

For more resources and guidance on how to start a small business at home, check out these guides and articles:

  • Follow our step-by-step guide on how to start a business from the ground up.
  • Learn how to start an LLC if that’s your chosen business structure.
  • Discover how to start a business with no money so funding doesn’t hold you back.
  • Skip the overhead that comes with brick-and-mortar stores and find out how to start an online business .
  • Explore options to accept payments online and start making money in your sleep.
  • Find the cheapest payroll services to pay your employees and contractors.
  • Build a successful business by attracting loyal, repeat customers. 

Frequently asked questions (FAQs)

The cost of starting a business at home varies widely and depends on several factors. Some businesses, including sole proprietorships, can get away with paying little to no money to start their business. Other home-based businesses, including those with manufacturing or inventory expenses, could have considerably higher startup costs.

Yes, you can use your home address to register a business. However, you’ll want to make sure that usage does not go against local laws, HOA bylaws or property covenants. It’s also a good idea to check with your mortgage and homeowners insurance companies to make sure that running a business out of your home does not introduce unforeseen headaches.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy . The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Blair Travers

Blair Travers is a business writer and content strategist with over a decade of experience breaking down complex problems to help businesses move forward with confidence. He brings a wide range of technology, banking and retail expertise. Blair enjoys helping businesses figure out complex processes and make choices that are right for them. His work has been published in U.S. News & World Report and Carfax.

Sierra Campbell is a small business editor for USA Today Blueprint. She specializes in writing, editing and fact-checking content centered around helping businesses. She has worked as a digital content and show producer for several local TV stations, an editor for U.S. News & World Report and a freelance writer and editor for many companies. Sierra prides herself in delivering accurate and up-to-date information to readers. Her expertise includes credit card processing companies, e-commerce platforms, payroll software, accounting software and virtual private networks (VPNs). She also owns Editing by Sierra, where she offers editing services to writers of all backgrounds, including self-published and traditionally published authors.

How to start a small business: A step-by-step guide

How to start a small business: A step-by-step guide

Business Eric Rosenberg

  • United States
  • United Kingdom

How to start a franchise

12 steps to franchising a business..

Avatar

In this guide

How to start a franchise business

How to buy a franchise with no money, buying a franchise vs. starting a business, bottom line, frequently asked questions.

Small business resources

Small business guides

Business formation

Opening a franchise allows you to flex your entrepreneurial skills without starting from scratch. You get a proven business model while still being your own boss. However, the startup fees can be pricey, and you must sign a contract committing to the franchisor’s playbook.

Starting a franchise can take three to four months from your initial research to the final purchase, according to the Small Business Administration (SBA) (1) .1 After you’ve signed the contract, it could take another two to six months until you’re ready to welcome customers.

That said, running your own franchise can be rewarding — and lucrative. These 12 steps can help guide you from conception to opening day.

1. List your top companies or businesses

When putting together a list of franchises you’d like to own, start by thinking about your favorite businesses. Consider your strengths, weaknesses and passions against what you think could make you money.

Franchises are available in nearly every industry:

  • Business services
  • Convenience stores
  • Real estate
  • Educational and learning
  • Entertainment
  • Specialty retailers
  • Travel agents
  • Health and fitness
  • Home healthcare

2. Research the franchise market

You can gather information about market conditions in your area, including demand and predictions for economic growth, through the SBA, the Census Bureau and private market firms to help you choose which franchise to open.

Take advantage of the resources at your local Small Business Development Center or a business school at a nearby college or university.

People who already own franchises can be invaluable resources. Ask about their experience and whether the process was worth it.

3. Evaluate investment and franchise costs

After you’ve pinpointed a market, research and compare the costs associated with your top picks. Franchise costs vary widely depending on the industry and business you choose to invest in, not to mention where you live or plan to do business. (2)

Note that some franchise owners — called franchisors — require a minimum net worth for franchisees.

When calculating the cost of starting your chosen franchise, look beyond upfront fees to costs that come with everyday business ownership.

4. Request a franchise disclosure statement

Reach out to the franchisor for a copy of its franchise disclosure document (FDD), which contains detailed legal information about its franchise group, along with financial data like the average gross revenue of its locations.

Sometimes you can find FDDs available for free from online databases around the web. Just make sure you obtain the most recent version, as franchisors release a new FDD every year.

Also, consider the retention rates for your chosen franchise. A retention rate is the percentage of locations that close each year. Section 20 of the FDD breaks down closures by state, so you can see how many have closed in your area compared to those in operation.

What else can I find in the franchise disclosure document?

An FDD covers more than 20 elements of buying a franchise, such as fee requirements, estimated initial investments and performance and revenue details.

It’s the legal information a franchisor is required to disclose to you, the franchisee, as part of due diligence before you invest.

The franchisor must provide you with the FDD at least 14 days before you sign a contract, though it’s a good idea to request a copy for your initial research. You can typically download a PDF of the FDD, though some franchisors might send you a hard copy.

5. Consider forming an LLC or corporation

Purchasing a franchise as a limited liability company (LLC) or corporation, rather than as a sole proprietor , provides financial and legal protection of your personal assets.

As an LLC or corporation, you aren’t held personally accountable for debt incurred by the franchise. If you remain a sole proprietor, you’re legally indistinguishable from your business — so you must cover business debt out of pocket, if necessary.

The same goes for lawsuits. As an LLC or corporation, your personal assets are covered if someone decides to sue your franchise.

6. Write a comprehensive business plan

A good business plan can help you analyze costs, predict sales and estimate profits before signing an agreement. Research what to expect in the months and years ahead to gather the information you need to take the next step — or pause if you’re not ready.

A successful business plan typically includes eight key components:

  • Executive summary
  • Company description
  • Market research
  • Organization structure
  • Product research
  • Financial analysis and funding needs
  • Financial projections

A business plan is necessary if you plan to apply for funding. Lenders want to see a viable plan for turning a profit and sustaining your business over the long haul, as it helps them evaluate if you’ll repay.

7. Get the financing you need.

If you don’t have the initial investment costs at the ready, you may need outside financing to launch or run your franchise. Many banks, the SBA and franchise-specific lenders offer financial help for would-be franchisees.

Other options include crowdfunding or lenders based entirely online. Online lenders like Kiva and Bluevine tend to leverage technology for more streamlined or automated approval processes. You could also use an online business marketplace like Lendio or Fundera to compare a network of funding options in one spot.

Some franchisors, like the UPS Store, Chem-Dry Carpet Cleaning and Cruise Planners, offer financing assistance, either through in-house programs or partnerships with third-party lenders. For example, Cruise Planners finances 50% of your franchise costs over the first 12 months, while Chem-Dry offers in-house financing for the initial licensing fee. This information is available in section 10 of the FDD.

8. Apply for the franchise and an interview

How you apply depends on the franchise you choose. For example, McDonald’s allows you to fill out an application online, while Chick-fil-A requires an expression of interest form to get the ball rolling.

Plan to attend interviews with the company, which allows time to parse through important details and determine if you’re a match for the franchise.

Expect questions that cover your plans, experience, finances and support, including your:

  • Goals, timeline and territory
  • Previous franchise and industry experience
  • Reasons for choosing the industry and franchise
  • Personal support system
  • Financial capital and business plan
  • Leadership experience
  • An exit strategy

9. Review and sign the franchise contract or agreement

If after your interview you and the franchisor decide it’s a good match, it’s time for the paperwork. You’re required to complete a franchise contract, which is a binding legal document that details:

  • Location and territory
  • Equipment and operations
  • Royalties and ongoing fees
  • Advertising and marketing
  • Trademarks, patents and signage
  • Training and ongoing support
  • Quality control and insurance
  • Dispute resolution
  • Renewal rights
  • Termination and cancellation policies
  • Exit strategies

Franchise contracts come with terms of five to 20 years. At the term’s end, you can often choose whether to renew the contract or discontinue your franchise.

At contract signing, you’ll likely need to also pay any upfront fees or initial investment expenses. Talk with the franchisor about preferred payment methods so you’re prepared.

10. Comply with state and local permit requirements

Most state and local governments require you to obtain licenses before launching your franchise — including health permits, occupational licenses, tax registrations and business licenses — or face fees.

While most states require the franchisor to apply for business licensing, a handful of states require a franchisee to register:

  • Connecticut
  • North Dakota
  • Rhode Island

You may also need to register for a license on a county or city level. Your franchisor should be able to help you anticipate permits required for your area and navigate the legal requirements. The SBA also provides information about franchise licenses that depend on your industry and state.

11. Build your location and assemble your team

The franchisor provides you with the essential elements of preparing your space — like signage, blueprints, fixtures and general decor — but you’re in charge of hiring contractors for the construction work.

You’re also responsible for hiring and training employees . Most franchisors provide training resources for franchisees, even sending a representative to help bring everyone up to speed about company branding, culture and expectations.

12. Stage a grand opening

In the days and weeks leading up to opening day, generate an awareness of your brand within the surrounding community. Most franchisors provide a marketing game plan and might even send a corporate team to help with your grand opening.

When preparing for your big day, a few tips can help make it a success:

  • Choose a date with high traffic to attract as many people as possible.
  • Send press releases to local media and advertise to your market.
  • Invite friends, family and city officials.
  • Decorate the store to attract attention and generate a festive feeling.
  • Organize exciting activities on opening day, like door prizes or giveaways.

If you’re short on cash, you aren’t disqualified from starting a franchise — but you’re going to need to explore funding and financing to get from planning to opening day.

  • Small business loan . Available amounts for small business loans range from $5,000 to $5 million, and rates start at around 5%.
  • Personal loan for business . A personal loan typically comes with fewer requirements. However, they often max out at $50,000, and expect rates from 4% to 36%.
  • SBA loan . Loans from the Small Business Administration (SBA) are known for low interest rates, but strict requirements and a lengthy application.
  • Home equity loan or HELOC . Consider borrowing against the equity in your home as a home equity loan or line of credit . But, because your financing is tied to your home, you risk losing your property.
  • Rollovers for business startups . A rollover for business startups — or ROBS — allows you to invest retirement funds into your business without paying taxes, fees or interest. However, this puts your retirement at risk.
  • Business partnership . Partners can assume part of the financial risk if you can’t fund the business alone. However, while you split the funding, you also split the profit.

When deciding between buying a franchise and starting your own business from scratch, a major difference is the initial investment compared to the ongoing fees. Buying a franchise usually costs more upfront, while the expense of starting your own business varies widely but is typically cheaper in the beginning. (3)

How important is autonomy to you? With a franchise, you’re buying into an existing business with limited control, as you’ll need to follow strict branding, marketing and legal guidelines. Starting your own business, on the other hand, offers more creative freedom. But, that comes with the challenge of building a customer base from nothing.

Overall, buying a franchise means you’re part of a proven system with more restrictions, but also with the benefit of brand recognition and corporate support. A new business means you’re building everything from the ground up, with more risk but also more freedom.

Case study : Opening a Critter Control franchise

Let’s say you want to open a Critter Control franchise in San Jose, California — a city with a population of about 1 million people. At an average of $582,828 gross revenue for that market, according to Critter Control, here’s what you could reasonably expect.

To estimate your profits in the first year of opening, you’d subtract the franchise fee, initial investment, operating costs and royalties from the average gross revenue.

Average gross revenue – (franchise fee + estimated initial investment) – operating costs – royalties

= First-year profit

$582,828 – ($70,100 + $116,550) – $326,384 – $46,626

Using this equation, you can expect to pocket about $23,168 after your first year in business. Because the franchise fee and initial investment are one-time fees, you should be able to make more money in the following year — some $209,818, assuming your average gross revenue stays about the same. As the business grows — and your gross sales increase — your profit is expected to increase over time, barring unforeseen circumstances in the market and industry.

Starting a franchise might be the right choice if you’ve got a solid game plan for raising funds and like the idea of following a tried-and-true business model. But if you’re still on the fence or want to research other options, browse our small business guides to starting, buying or growing a business.

How much money do you need to start a franchise?

The cost of buying a franchise depends on various factors, such as the location and industry. A restaurant in New York will cost significantly more than one in a small town — even just for the real estate alone. Startup costs can range from $10,000 to $5 million, with the average falling between $100,000 and $300,000, according to APD.2

How profitable is owning a franchise?

The profitability of a franchise varies significantly based on the brand’s strength, industry, startup costs and other factors. Data from 2017 shows that for food and beverage franchises, the median annual income is around $70,000 for two years or more in business and around $50,000 for startups. Only 34 percent earned more than $100,000, while many earned much less, according to a survey by the Franchise Business Review.3

How do franchise owners get paid?

Franchise owners and franchisors profit from the business’ success. Franchisors earn income through the royalties and fees paid by their franchisees, while franchise owners generate income from the net profits of sales and services, which is the remaining revenue after deducting overhead expenses. These overhead expenses include the cost of equipment, inventory, staffing and maintenance of a physical location, including utilities like electricity and internet.

  • “How long does it take to start a franchise?,” US Small Business Administration, September 6, 2018
  • “Franchise startup costs,” ADP
  • “How much do franchise owners make and is it profitable?,” Franchise Business Review, October 6, 2018

12 steps of a business plan

Holly Jennings

Holly Jennings is an editor and updates writer at Finder, working with writers across all niches to deliver quality content to readers. She’s edited hundreds of financial articles ranging from credit cards to investments. With empathy at heart, she especially enjoys content that breaks down complex financial situations into easy-to-understand information. Prior to her role at Finder, she collaborated with dozens of small businesses to maximize the reach and impact of their blog posts, website copy and other content. In her spare time, she is an award-winning author for Penguin Random House, writing about virtual reality worlds, magical girls and lasers that go pew-pew.

More guides on Finder

Analysis of data on how much the average employed American spends working from an office full-time and hybrid.

Compare the key differences in investment options, contribution limits and tax advantages between Roth IRAs and savings accounts.

Compare the key differences in investment options, contribution limits and tax advantages between brokerage accounts and Roth IRAs.

Check out our picks for the brokers with the best cash sweep rates on uninvested cash.

How to avoid taxes and penalties when you move funds from one retirement account to another.

A step-by-step guide on how to choose a financial adviser.

A property management software and account designed for landlords.

Looking to fund your business? Discover the best strategies for getting the funding you need from banks and online lenders, investors and more.

From budgeting to taking advantage of cashback rewards, use these five tips to help you manage your money.

Navigate your business taxes with these forms, deadlines and filing tips for small businesses.

Ask an Expert

Click here to cancel reply.

How likely would you be to recommend finder to a friend or colleague?

Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.

Advertiser Disclosure

finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.

Trump's civil fraud verdict appeal may hinge on 'no victims' defense

  • Private Escapes Platinum One Central Park West, Llc Follow
  • Trump Organization Inc Follow

Former U.S. President and Republican presidential candidate Trump holds a rally in Rochester

Reporting by Jack Queen; editing by Will Dunham, Noeleen Walder and Amy Stevens

Our Standards: The Thomson Reuters Trust Principles. , opens new tab

12 steps of a business plan

Thomson Reuters

Legal correspondent specializing in politically charged cases.

Read Next / Editor's Picks

U.S. energy regulators on Friday said they would decide quickly on liquefied natural gas developer Venture Global LNG's request for a one-year extension to its construction permit for its Calcasieu Pass LNG plant in Louisiana.

U.S. President Joe Biden tours the SK Siltron CSS facility in Bay City, Michigan

Industry Insight

12 steps of a business plan

Mike Scarcella, David Thomas

12 steps of a business plan

Karen Sloan

12 steps of a business plan

Henry Engler

12 steps of a business plan

Diana Novak Jones

IMAGES

  1. 12 Steps for Developing & Driving Stronger Business Strategies

    12 steps of a business plan

  2. How to Write a Business Plan

    12 steps of a business plan

  3. Creating a Business Plan: Why it Matters and Where to Start

    12 steps of a business plan

  4. Step-By-Step Guide to Write Your Business Plan + Template

    12 steps of a business plan

  5. A Step-by-Step Outline on How to Write a Business Plan

    12 steps of a business plan

  6. Business Plan

    12 steps of a business plan

VIDEO

  1. New Business Plan

  2. business plan

  3. Business Plan 🤪

  4. Business plan

  5. 5 Steps to success in life #shorts #shortvideo

  6. BUSINESS PLAN PREPARATION ll Business plan presentation discussion ll How to make business plan

COMMENTS

  1. Business Plan: What it Is, How to Write One

    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....

  2. How To Write A Business Plan (2024 Guide)

    Bottom Line Frequently Asked Questions Show more Every business starts with a vision, which is distilled and communicated through a business plan. In addition to your high-level hopes and...

  3. How to Write a Business Plan: Guide + Examples

    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.

  4. Write your business plan

    Include your mission statement, your product or service, and basic information about your company's leadership team, employees, and location. You should also include financial information and high-level growth plans if you plan to ask for financing.

  5. How to Write a Simple Business Plan

    Get free Smartsheet templates By Joe Weller | October 11, 2021 A business plan is the cornerstone of any successful company, regardless of size or industry. This step-by-step guide provides information on writing a business plan for organizations at any stage, complete with free templates and expert advice.

  6. Business Plan: What It Is + How to Write One

    A business plan is a written document that defines your business goals and the tactics to achieve those goals. A business plan typically explores the competitive landscape of an industry, analyzes a market and different customer segments within it, describes the products and services, lists business strategies for success, and outlines ...

  7. How to Write a Business Plan: A Step-by-Step Guide

    Step 1: Write an Executive Summary As with any other piece of writing, this introduction to your plan is the hook. Why should the reader believe in your business? Sell your business and explain why it matters.

  8. How to write a business plan in 12 steps (2024 edition)

    1. Write an executive summary This section of your business plan should be 1-2 pages in length and enables potential financiers or partners to get an overview of what your business does and - most importantly — what the opportunity is for them.

  9. How to Write a Business Plan: Beginner's Guide (& Templates)

    Step #1: Write Your Executive Summary Step #2: Put Together Your Company Description Step #3: Conduct Your Market Analysis Step #4: Research Your Competition Step #5: Outline Your Products or Services Step #6: Summarize Your Financial Plan Step #7: Determine Your Marketing Strategy Step #8: Showcase Your Organizational Chart

  10. How To Make A Business Plan: Step By Step Guide

    The steps below will guide you through the process of creating a business plan and what key components you need to include. 1. Create an executive summary. Start with a brief overview of your entire plan. The executive summary should cover your business plan's main points and key takeaways.

  11. How to Start a Business in 12 Steps

    Here are 12 steps to use as a guide to make sure you're checking off all those pre-opening boxes. Define business concept. You have a business idea. That's the first step. ... Write a business ...

  12. Business Plan: What It Is, What's Included, and How to Write One

    Business Plan: A business plan is a written document that describes in detail how a business, usually a new one, is going to achieve its goals. A business plan lays out a written plan from a ...

  13. How To Write a Business Plan

    Step 2: Do your market research homework. The next step in writing a business plan is to conduct market research. This involves gathering information about your target market (or customer persona), your competition, and the industry as a whole. You can use a variety of research methods such as surveys, focus groups, and online research to ...

  14. A First-Time Entrepreneur's Cheat Sheet

    A query of U.S. Census Bureau data reveals that through 2023, Americans submitted nearly 62% more applications for new businesses than the same time period in 2019. The post-pandemic drivers for ...

  15. 10-part business plan template and how write a business plan

    First, know your audience Start with a clear picture of the audience your plan will address. Is it a room full of angel investors? Your local bank's venture funding department? Or is it you, your leaders, and your employees?

  16. How to write a business plan in seven simple steps

    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?

  17. 12 Key Elements of a Business Plan (Top Components Explained)

    Here are some of the components of an effective business plan. 1. Executive Summary. One of the key elements of a business plan is the executive summary. Write the executive summary as part of the concluding topics in the business plan. Creating an executive summary with all the facts and information available is easier.

  18. Simple Business Plan Template (2024)

    This section of your simple business plan template explores how to structure and operate your business. Details include the type of business organization your startup will take, roles and ...

  19. How to write a business plan (with steps and example)

    How to write a business plan. If you want to learn how to write a business plan, consider the following steps: 1. Write a comprehensive executive summary. Also known as a company description, the executive summary explains the business and its goals to partners, investors and lenders.

  20. How To Create The Perfect Business Plan In 12 Steps

    1 - Chose A Business Plan Format Before creating a traditional business plan template, it's essential to consider the format most beneficial. In general, there are two commonly used approaches, the simple business plan, aka lean startup business plan and the traditional one.

  21. Create a business plan in 12 steps

    5 key elements to include in your business plan. To create a truly robust and meaningful plan: Outline your vision - explain WHY you're in business and how you intend to add value for customers. For example 'We promote a healthy lifestyle through organic produce'. Set out your goals - outline your personal goals as a founder, and your ...

  22. Writing a business plan: The 12 steps

    Step 11: Building your sales pitch. A salesperson needs a sales pitch. In this part of your business plan, you will have to list and explain each of the sales arguments, which will also help you set up your marketing plan. You need to find a sales philosophy that attracts your customers. Build your slogan and define the lines you will rely on ...

  23. Twelve Steps to Building a Business Plan

    12 Steps to a Successful Business Plan. Assess Concept. Industry and Marketplace Analysis. Begin Marketing Plan. Begin Operations Plan. Begin Development Plan. Build Strategy. Forecast Revenues and Costs. Create Financials.

  24. 12 steps to the perfect business plan

    01. Write an executive summary An executive summary essentially summarises your design business in a quick, succinct pitch. This is the part that investors or banks will read first so it needs to be concise and to the point; certainly no more than a couple of pages. Above all it needs to explain your business idea.

  25. The Secret To Writing A Business Plan

    "As a special offer our PBD listeners receive free access to Fund&Grow's Business Funding Masterclass: $250,000 in Business Credit and Avoiding Interest for ...

  26. How to Start a Small Business at Home in 2024

    A business plan outlines the direction of the business — its goals, strategies, structure, ways of measuring success and plans for dealing with things like change and risk. Simply put, it's ...

  27. How to Start a Franchise: A 12-Step Guide

    6. Write a comprehensive business plan. A good business plan can help you analyze costs, predict sales and estimate profits before signing an agreement. Research what to expect in the months and years ahead to gather the information you need to take the next step — or pause if you're not ready. A successful business plan typically includes ...

  28. Trump's civil fraud verdict appeal may hinge on 'no victims' defense

    Donald Trump's planned appeal of a $355 million judgment against him in his civil fraud case may focus on the former president's contention that there were no actual victims from his conduct at ...