5 Steps to Writing a Business Plan
The process of writing your business plan gives you opportunities to test your ideas on paper.
WRITING A BUSINESS PLAN
To establish a successful business, you need a good plan
Done right, a business plan is a great tool for securing investors, partners and funders.
A good business plan is like a map
As you start a new business, it’s important to set the course that you want the business to take and the destination you’d like to reach. Include these components:
A clear description
Explain your products and services. Provide an accurate picture of your target customers and competitors. Answer these key questions: Why are you starting the business? What will set it apart? What key strengths do you bring to it?
Your financials
Include cash flow projections, with expected revenue and expenses in detail, as well as estimates for startup costs and any necessary large purchases.
Your path to success
Show your expected growth and how you plan to get there. Detail your goals and opportunities, but also explain the obstacles in your way and your plan to overcome them.
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DEEP DIVE
Presenting Your Business Plan
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Business Plan Executive Summary
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Business Plan Market Analysis
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Business Plan Mission Statement
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Business Plan Company Description
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Business Plan SWOT Analysis
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Business Plan Organization and Management
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Business Plan Products and Services
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Business Plan Proposal for Funding
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Business Plan Marketing and Sales Strategy
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Business Plan Workforce and Support Personnel
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Business Plan Financial Projections
Resources & Insights
Why Your Business Needs a Solid Business Plan
Creating a business plan allows you to map out the main elements of your company so you and others can get a clear picture of how it will operate. Essentially, you can “try out” different outcomes and understand the implications before you spend a dime on launching your business.
Resources & Insights
Building Your Partnership Agreement Checklist
Like any good relationship, the best business alliances provide for communication, expectation, and conflict resolution.
Resources & Insights
What Are the Building Blocks of an Ongoing Business Strategy?
Your business plan put your dream in motion. Now it’s time to consider a strategic plan that will keep that dream moving well into the future.
Top questions, answered by our experts.
Why is a business plan important?
A business plan serves two very important functions. First, it provides you with a clear guide for how to successfully operate your business. And second, it proves to lenders and investors that you have a viable plan for making a profit.
Your business plan is as unique and personal as your business itself. No two are the same, but there are standard sections that lenders and investors will expect to see. Your business plan should include a mission statement, a company description, an executive summary, market analysis, financial projections, a SWOT analysis, an organization and management summary and a products and services summary. In researching and writing these sections, you’ll develop a road map for operating your business. When you’re done, you’ll have a clear vision to present to lenders and investors who might help you with startup financing, including a small business loan, SBA loan or business line of credit.
If you’re writing a business plan, learn more about:
How long should a business plan be?
There is no exact correct length for a business plan. The purpose of a business plan is to provide yourself with a strategy for operating and to prove to lenders and investors that you have a solid plan for making a profit. A complex business with a large staff and multiple product offerings may require a longer business plan. A simpler business with fewer operational variables likely can be summarized with a shorter plan.
While no two business plans are the same, you should be sure to include standard sections like a mission statement, a company description, an executive summary, a market analysis, financial projections, a SWOT analysis, an organization and management summary and a products and services summary. Be clear and concise when writing your plan. When you’re using your business plan to shop for financing, you want a document that captures and holds your reader’s attention. Supporting details can be referenced in your business plan’s appendix.If you’re writing a business plan, learn more about:
Do you write a business plan in first person?
Because a business plan is a formal and important document, it is traditionally written in the third person. But there is no absolute rule. A lot depends on your audience and your style. There could be scenarios where a more relaxed tone and the use of first person is warranted. Just be careful not to be too informal with your business plan. You want to show lenders that you’re serious about what you’re proposing so that you’ll have the best chance at securing a small business loan.
First-person business plan writing involves using the pronouns “I,” we” and “us” to talk about your company. If you’re writing in the third person, you would refer to your company by name each time you referenced your business. It is fine to use terms like “the company” or an abbreviated version of the company name after the first reference if it keeps your plan more concise and makes it easier to read.
If you’re writing a business plan, learn more about:
What is the appendix of a business plan?
The appendix is usually the last section of a business plan and the place where supporting information and additional documentation is presented. The purpose of the appendix is to give the reader an opportunity to drill down on important parts of the business plan. By keeping the nitty-gritty details of the plan in the appendix, the plan itself is more concise and easier to read for potential lenders or investors.
A business plan appendix might include things like trademarks, licenses, patents, building permits, charts, graphs, marketing materials and vendor contracts. The main sections of the business plan will summarize key ideas to make the case that the idea is viable and qualified for financing. The appendix includes any information that supports the points being made in the business plan.
If you’re writing a business plan, learn more about:
Learning Modules
BANKING FOR ENTREPRENEURS
Developing a Business Plan
Learn about the components of a business plan and how to create one that communicates your business’ financial future and health.
BANKING FOR ENTREPRENEURS
Small Business Financial Statements
Learn about the three most important financial statements: balance sheets, profit and loss statements, and cash flow reports.
BANKING FOR ENTREPRENEURS
Financial Wellbeing for Entrepreneurs
Learn more about the financial basics of entrepreneurship.
BUSINESS EDUCATION PORTAL