state the procedure for drawing simple single business plan

Drawing A Simple Single Business Plan

Back to: BUSINESS STUDIES JSS3

Welcome to Class !!

We are eager to have you join us !!

In today’s Business Studies class, We will be learning about Drawing a smile Business Plan.  We hope you enjoy the class!

A business plan is a written document which describes the objectives of a business and the strategies of achieving the objectives. A business plan is like a road map giving the direction of a business. The business plan contains background information about a business venture.

  CHARACTERISTICS OF A BUSINESS PLAN

• A good business plan must be clear in its objectives to be achieved.
• A good business plan must be reasonable and achievable.
• It must be measurable and easy to determine if the business is growing or not.
• It must be time-bound and state how long the objective will be achieved.
• It must be in written form so that it will be easy to refer to.

USES OF A BUSINESS PLAN

• It acts as a guide to the business and its operations.
• It helps the entrepreneur to research into the business they want to pursue
• It helps the employees to know the objectives of the business thereby enabling them to work towards these objectives
• It helps develop the policy or rules for the business
• It helps the investors to know and see how accountable the management is and the structure put into place.

PROCEDURES FOR DRAWING A SIMPLE SINGLE BUSINESS PLAN

• Background/preamble—It has the product/service, its name, logo, vision and goals.
• Market Research—–Find out customers’ want and needs, pricing and competitors in the market.
• Marketing—-Creating awareness for the goods.
• Production—method of production and quality control.
• Organization/management—showing the number of people that will be employed and their duties.
• Finance—-estimating amount to start a business, its source and how it is to be expended.
• Action plan.
• What is a business plan?
• State two uses of a business plan.

READING ASSIGNMENT

WABP Business Studies book 3 Pages54 to 63

GENERAL EVALUATION

• What is an office?
• Mention the types of office that you know and give an example for each.
• State seven functions of an office.
• Give seven components of Business Studies.
• What is trade by barter?

  WEEKEND ASSIGNMENT

• The written form of a business’ objectives and their strategies is called business ___ (a) product   (b) service   (c) plan   (d)  management
• The external factors of a business environment that can have a negative effect on the goals of a business are termed as ___  (a) objectives(b) strengths  (c) threats   (d) weaknesses
• The business plan should describe the business objectives and the ___ of achieving it. (a) layout (b) components    (c) strategies     (d) plan.
• Which one of the following is not a characteristic of a business plan? (a)Achievable (b)Measurable  (c)   Cheap and easy   (d)In written form.
• Which is the first procedure in drawing the business plan? (a)Action plan (b) Market research (c)Background preamble   (d)Production
• Define a business plan.
• State three uses of a business plan to an entrepreneur.

We have come to the end of this class. We do hope you enjoyed the class?

Should you have any further question, feel free to ask in the comment section below and trust us to respond as soon as possible.

In our next class, we will be talking about Consumer Protection Agencies.  We are very much eager to meet you there.

Share this lesson with your friend!

• Click to share on Twitter (Opens in new window)
• Click to share on Facebook (Opens in new window)
• Click to share on Telegram (Opens in new window)
• Click to email a link to a friend (Opens in new window)

ClassNotes.ng is an Afrilearn brand.

• 08051544949
• [email protected]
• Teach for CN
• Testimonials
• Terms of use
• Privacy Policy

Weekly Newsletter

WhatsApp us

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

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

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 .

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. add additional information to an appendix, business plan tips and resources.

A business plan is a document that outlines your business’s financial goals and explains how you’ll achieve them. A strong, detailed plan will provide a road map for the business’s next three to five years, and you can share it with potential investors, lenders or other important partners.

Here’s a step-by-step guide to writing your business plan.

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

This is the first page of your business plan. Think of it as your elevator pitch. It should include a mission statement, a brief description of the products or services offered, 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, which should contain 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, it should cover 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

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

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

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

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.

Your sales strategy.

Your distribution 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.

» 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.

You may also include 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.

» NerdWallet’s picks for setting up your business finances:

The best business checking accounts .

The best business credit cards .

The best accounting software .

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.

List any supporting information or additional materials that you couldn’t fit in elsewhere, such as resumes of key employees, licenses, equipment leases, permits, patents, receipts, bank statements, contracts and personal and business credit history. 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?

Here are some tips to help your business plan stand out:

Avoid over-optimism: If you’re applying for a business loan at a local bank, the loan officer likely knows your market pretty well. Providing unreasonable sales estimates can hurt your chances of loan approval.

Proofread: Spelling, punctuation and grammatical errors can jump off the page and turn off lenders and prospective investors, taking their mind off your business and putting it on the mistakes you made. 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. You can search for a mentor or find a local SCORE chapter for more guidance.

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...

• Starting a Business The tools and resources you need to get your new business idea off the ground.
• Payments Everything you need to start accepting payments for your business.
• Funding & Capital Resources to help you fund your small business.
• Small Business Stories Celebrating the stories and successes of real small business owners.

The only 22 steps to starting a business you'll need in 2023

How to write a business plan in 10 steps + free template

• Running a Business The tools and resources you need to run your business successfully.
• Accounting Accounting and bookkeeping basics you need to run and grow your business.
• Cash Flow Tax and bookkeeping basics you need to run and grow your business.
• Payroll Payroll essentials you need to run your business.
• Taxes Tax basics you need to stay compliant and run your business.
• Employees Everything you need to know about managing and retaining employees.

Cash flow guide: Definition, types, how to analyze in 2023

Financial statements: What business owners should know

• Growing a Business The tools and resources you need to take your business to the next level.
• Sales & Marketing Spread the word: What you need to know about marketing your small business.
• Funding How to find funding and capital for your new or growing business.
• Midsize Businesses The tools and resources you need to manage your mid-sized business.

Small business grants: 20+ grants and resources to fund your future without debt

How to choose the best payment method for small businesses

• Self-Employed The tools and resources you need to run your own business with confidence.
• E-Commerce How to start and run a successful e-commerce business.
• What's New The latest product innovations and business insights from QuickBooks.
• Small Business Data The latest research and insights for Small Businesses from QuickBooks.
• Unwrap Holiday Success Everything you need to thrive during your business's busiest seasons.

Jobs report: Are small business wages keeping up with inflation?

Melissa Skaggs shares the buzz around The Hive

• Multimedia Hub Listen to the Mind the Business podcast by QuickBooks and iHeart. Browse videos, data, interactive resources, and free tools.
• Guide to Pride Browse the Pride toolkit for everything you need to celebrate and make an impact.
• Paycheck Calculator Paycheck calculator for hourly and salary employees.
• Employee Cost Calculator How much do employees cost beyond their standard wages?
• Equity & Investment Calculator How much investment capital should you accept?

Whether you’re a seasoned business owner or just beginning to think about  starting a business , demands come at you fast. Amidst the rush of to-do lists and meetings, determining how to write a business plan—much less following a business plan template—often feels time-consuming and intimidating.

But nearly 70% of business owners who have been there and done that recommend writing a business plan before you start a business, according to  a recent QuickBooks survey . After all, when done right, business plans have enormous payoffs.

And yet, more than 10% of prospective business owners said they do not intend to write a business plan. Another 10% aren’t sure if they need a plan.

It’s more than the old cliche: A failure to plan is a plan to fail. In fact, a wealth of data now exists on the difference a written business plan makes, especially for small or growing companies.

In this post, we’ll cover everything you need to write a successful business plan, step-by-step, and turn your idea into a reality. Even better, if you’re pressed for time, we’ve compiled the  10 steps and examples into a downloadable (PDF) template . The 10 steps to write a business plan are:

• Create an executive summary
• Compose your company description
• Summarize market research and potential
• Conduct competitive analysis
• Describe your product or service
• Develop a marketing and sales strategy
• Compile your business financials
• Describe your organization and management
• Explain your funding request
• Compile an appendix for official documents

But, first things first.

What is a business plan?

A business plan is a comprehensive road map for your small business’s growth and development. It communicates who you are, what you plan to do, and how you plan to do it. It also helps you attract talent and investors.

But remember that a  business idea  or  business concept  is not a plan.

Investors want to know you have:

• Product-market fit:  Have you done the research to determine the demand for your product or service?
• A solid team in place:  Do you have the people you need to support your goals and objectives?
• Scalability:  Can you grow sales volume without proportional growth in headcount and fixed costs?

A templated business plan gives investors a blueprint of what to expect from your company and tells them about you as an entrepreneur.

Why do you need a business plan?

You need a business plan because the majority of venture capitalists (VCs) and all banking institutions will not invest in a startup or small business without a solid, written plan. Not only does a business plan help you focus on concrete objectives, but it gives outside parties reassurance that you’ve thought ahead.

In 2018, entrepreneurial resource center Bplans worked with the University of Oregon to compile and analyze research around the  benefits of business planning . Here’s what they found:

• Businesses with a business plan  grow 30% faster  than those without.
• Owners with business plans are  twice as likely  to grow, get investments, or secure loans than those without.
• Entrepreneurs with a business plan have a  129% increased likelihood  of growing beyond the startup phase and a  260% increased likelihood  of growing from “idea” to “new business.”

Perhaps the strongest evidence comes from the  Journal of Business Venturing’s  2010 meta-analysis of 46 separate studies on 11,046 organizations: Its findings confirm that “business planning increases the performance of both new and established small firms.”

When do you need a business plan?

Before you leave a nine-to-five income, your business plan can tell you if you’re ready. Over the long term, it’ll keep you focused on what needs to be accomplished.

It’s also smart to write a business plan when you’re:

• Seeking funding, investments, or loans
• Searching for a new partner or co-founder
• Attracting, hiring, and retaining top talent
• Experiencing slow growth and need a change

How to write a business plan in 10 steps

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?

Defining your audience helps you determine the language you’ll need to propose your ideas as well as the depth to which you need to go to help readers conduct due diligence.

Now, let’s dive into the 10 key elements of your business plan.

1. Create an executive summary

Even though it appears first in the plan, write your executive summary last so you can condense essential ideas from the other nine sections. For now, leave it as a placeholder.

What is an executive summary?

The executive summary lays out all the vital information about your business within a relatively short space.  An executive summary is typically one page or less.  It’s a high-level look at everything and summarizes the other sections of your plan. In short, it’s an overview of your business.

How do I write an executive summary?

Below, you’ll find an example from a fictional business, Laura’s Landscapers. (We’ll use that same company throughout this guide to make each step practical and easy to replicate.)

This executive summary focuses on what’s often called the value proposition or unique selling point: an extended motto aimed at customers, investors, and employees.

You can follow a straightforward “problem, solution” format, or a fill-in-the-blanks framework:

• For [target customers]
• Who are dissatisfied with [current solutions]
• Our [product or service] solves [key customer problems]
• Unlike [competing product], we have [differentiating key features]

This framework isn’t meant to be rigid, but instead to serve as a jumping-off point.

Example of an executive summary

Market research indicates that an increasing number of wealthy consumers in Richmond are interested in landscape architecture based on sustainable design. However, high-end firms in the area are scarce. Currently, only two exist—neither of which focus on eco-friendly planning nor are certified by green organizations.

Laura’s Landscapers provides a premium, sustainable service for customers with disposable incomes, large yards, and a love of nature.

2. Compose your company description

Within a business plan, your company description contains three elements:

• Mission statement

These elements give context to the bigger picture in your business plan, letting investors know the purpose behind your company so the goals make sense as well.

What is a mission statement?

A mission statement is your business’s reason for existing. It’s more than what you do or what you sell, it’s about why exactly you do what you do. Effective mission statements should be:

• Inspirational  to make others believe in your vision
• Emotional  to captivate readers and grab their interest

Throughout every part of your plan, less is more. Nowhere is that truer than your mission statement. Think about what motivates you, what causes and experiences led you to start the business, the problems you solve, the wider social issues you care about, and more.

Tip:  Review your mission statement often to make sure it matches your company’s purpose as it evolves. A statement that doesn’t fit your core values or what you actually do can undermine your marketing efforts and credibility.

How do you describe a company’s history?

Don’t worry about making your company history a dense narrative. Instead, write it like you would a profile:

• Founding date
• Major milestones
• Location(s)
• Number of employees
• Executive leadership roles
• Flagship products or services

Then, translate that list into a few short paragraphs (like the example below).

Why do business objectives matter?

Business objectives give you clear goals to focus on, like the North Star. These goals must be SMART, which stands for:

They must also be tied to key results. When your objectives aren’t clearly defined, it’s hard for employees and team members to work toward a common purpose. What’s worse, fuzzy goals won’t inspire confidence from investors, nor will they have a profitable impact on your business.

Example of a company description

Laura’s Landscapers’ mission is to change the face of our city through sustainable landscaping and help you create the outdoor living space of your dreams.

Founded in 2021 by sisters Laura and Raquel Smith, we have over 25 years of combined landscape architecture experience. Our four employees work in teams of two and have already completed 10 projects for some of Richmond’s most influential business and community leaders.

Our objectives over the next three years are to:

• Solidify a glowing reputation as a service-based business that always exceeds customers’ expectations and honors the environment
• Complete at least 18 projects during year one, 24 in year two, and 36 in year three generated through word of mouth, referrals, and home shows
• Increase revenue from $360,000 in FY2021 to $972,000 in FY2023 based upon 10 completed projects in the last nine months

Feel confident from day one

You're never too small, and it's never too soon to know you're on track for success.

3. Summarize market research and potential

The next step is to outline your ideal potential customer as well as the actual and potential size of your market. Target markets—also known as personas—identify demographic information like:

By getting specific, you’ll illustrate expertise and generate confidence.  If your target market is too broad, it can be a red flag for investors.

• Example:  If your product is perfect for people with money to hire landscape architects, listing “anyone with a garden” as your target market might not go over so well.

The same is true with your market analysis when you estimate its size and monetary value. In addition to big numbers that encompass the total market, drill down into your business’s addressable market—meaning, local numbers or numbers that apply the grand total to your specific segments. You may even  map your customer’s journey  to get a better understanding of their wants and needs.

Example of market research and potential

Laura’s Landscapers’ ideal customer is a wealthy baby boomer, a member of Gen X, or a millennial between the ages of 35 and 65 with a high disposable income. He or she—though primarily, she—is a homeowner. They’re a working professional or have recently retired. In love with the outdoors, they want to enjoy the beauty and serenity of nature in their own backyard, but don’t have the time or skill to do it for themselves.

Market research shows the opportunity for Laura’s Landscapers has never been better:

• In the U.S., total revenue for landscaping services increased from $69.8 billion in 2013 to $99 billion in 2019. ( 1 )
• Among landscaping contractors, designing and building is the second fastest growing service offering. ( 2 )
• What’s more, landscape design and construction is the number one “new service” existing companies plan to add over the next year. ( 3 )

In Richmond, leading indicators for interest in green, eco-friendly, and sustainable landscaping have all increased exponentially over the last five years:

• Online search volume for those terms is up 467%
• 10 new community organizations have been formed
• 73 high-profile projects have been covered by local media
• And currently 13% of Richmond’s residents have a household income of $125,000 or more (compared to the U.S. average of 5%)

4. Conduct competitive analysis

Competitive research begins with identifying other companies that currently sell in the market you’re looking to enter. The idea of carving out enough time to learn about every potential competitor you have may sound overwhelming, but it can be extremely useful.

Answer these additional questions after you’ve identified your most significant competitors:

• Where do they invest in advertising?
• What kind of press coverage do they get?
• How good is their customer service?
• What are their sales and pricing strategies?
• How do they rank on third-party rating platforms?

Spend some time thinking about what sets you apart. If your idea is truly novel, be prepared to explain the customer pain points you see your business solving. If your business doesn’t have any direct competition, research other companies that provide a similar product or service.

Next, create a table or spreadsheet listing your competitors to include in your plan, often referred to as a competitor analysis table.

Example of competitive analysis

Within Richmond’s residential landscaping market, there are only two high-end architectural competitors: (1) Yukie’s Yards and (2) Dante’s Landscape Design. All other businesses focus solely on either industrial projects or residential maintenance.

Yukie’s Yards

• Average cost per project: $12,000
• Ongoing maintenance fee: $200 per month
• Google My Business: 3.1 stars from 163 reviews
• Environmental certifications: None
• Primary marketing channels: Google Ads

Dante’s Landscape Design

• Average cost per project: $35,000
• Ongoing maintenance fee: $500 per month
• Google My Business: 3.7 stars from 57 reviews
• Primary marketing channels: Home shows

5. Describe your product or service

This section describes the benefits, production process, and life cycle of your products or services, and how what your business offers is better than your competitors.

When describing benefits, focus on:

• Unique features
• Translating features into benefits
• Emotional and practical payoffs to your customers
• Intellectual property rights or any patents that protect differentiation

For the production process, answer how you:

• Create existing and new products or services
• Source raw materials or components
• Assemble them through manufacturing
• Maintain quality control and quality assurance
• Receive and deliver them (supply chain logistics)
• Manage your daily operations, like bookkeeping and inventory

Within the product life cycle portion, map elements like:

• Time between purchases
• Up-sells, cross-sells, and down-sells
• Future plans for research and development

Example of product or service description

Laura’s Landscapers’ service—our competitive advantage—is differentiated by three core features.

First, throughout their careers, Laura and Raquel Smith have worked at and with Richmond’s three leading industrial landscaping firms. This gives us unique access to the residents who are most likely to use our service.

Second, we’re the only firm certified green by the Richmond Homeowners Association, the National Preservation Society, and Business Leaders for Greener Richmond.

Third, of our 10 completed projects, seven have rated us a 5 out of 5 on Google My Business and our price points for those projects place us in a healthy middle ground between our two other competitors.

• Average cost per project:  $20,000
• Ongoing maintenance fee:  $250 per month
• Google My Business:  5 stars from 7 reviews
• Environmental certifications:  Three (see Appendix)
• Primary marketing channels:  Word of mouth, referrals, and home shows

6. Develop a marketing and sales strategy

Your marketing strategy or marketing plan can be the difference between selling so much that growth explodes or getting no business at all. Growth strategies are a critical part of your business plan.

You should briefly reiterate topics such as your:

• Value proposition
• Ideal target markets
• Existing customer segments

Then, add your:

• Launch plan to attract new business
• Growth tactics for established businesses to expand
• Retention strategies like customer loyalty or referral programs
• Advertising and promotion channels such as search engines, social media, print, television, YouTube, and word of mouth

You can also use this section of your business plan to reinforce your strengths and what differentiates you from the competition. Be sure to show what you’ve already done, what you plan to do given your existing resources, and what results you expect from your efforts.

Example of marketing and sales strategy

Laura’s Landscapers’ marketing and sales strategy will leverage, in order of importance:

• Word of mouth
• Reviews and ratings
• Local Google Ads
• Social media
• Direct mail

Reputation is the number one purchase influencer in high-end landscape design. As such, channels 1-4 will continue to be our top priority.

Our social media strategy will involve YouTube videos of the design process as well as multiple Instagram accounts and Pinterest boards showcasing professional photography. Lastly, our direct mail campaigns will send carbon-neutral, glossy brochures to houses in wealthy neighborhoods.

7. Compile your business financials

If you’re just starting out, your business may not yet have  financial data , financial statements, or comprehensive reporting. However, you’ll still need to prepare a budget and a financial plan.

If your company has been around for a while and you’re seeking investors, be sure to include:

• Income statements
• Profit and loss statements
• Cash flow statements
• Balance sheets

Other figures that can be included are:

• How much of your revenue you retain as your net income
• Your ratio of liquidity to debt repayment ability
• How often you collect on your invoices

Ideally, you should  provide at least three years’ worth of reporting.  Make sure your figures are accurate and don’t provide any profit or loss projections before carefully going over your past statements for justification.

Avoid underestimating business costs

Costs, profit margins, and sale prices are closely linked, and many business owners set sale prices without accounting for all costs. New business owners are particularly at risk for this mistake.  The cost of your product or service must include all of your costs, including overhead.  If it doesn’t, you can’t determine a sale price to generate the profit level you desire.

Underestimating costs can catch you off guard and eat away at your business over time.

• Example:  Insurance premiums tend to go up annually for most forms of coverage, and that’s especially true with business insurance. If an employee gets injured, Laura’s Landscapers’ workmen’s compensation insurance to cover this risk will increase.

Example of business financials

Given the high degree of specificity required to accurately represent your business’s financials, rather than create a fictional line item example for Laura’s Landscapers, we suggest using one of our free Excel templates and entering your own data:

• For new businesses:  Start up budget template
• For existing businesses:  Income statement template

Once you’ve completed either one, then create a big picture representation to include here as well as in your objectives in step two.

In the case of Laura’s Landscapers, this big picture would involve steadily increasing the number of annual projects and cost per project to offset lower margins:

Current revenue for FY2022:  $200,000

• 10 completed projects
• ~$20,000 per project
• 15% profit margins
• $30,000 net

FY2022 projections:  $360,000

• 18 completed projects
• $54,000 net

FY2023 projections:  $552,000

• 24 completed projects
• ~$23,000 per project
• 12% profit margins
• $66,240 net

FY2024 projections:  $972,000

• 36 completed projects
• ~$27,000 per project
• 10% profit margins
• $97,200 net

Get the latest to your inbox

Relevant and timely resources to help you start, run, and grow your business.

Thanks for subscribing.

Fresh business resources are headed your way!

8. Describe your organization and management

Your business is only as good as the team that runs it. Identify your team members and explain why they can either turn your business idea into a reality or continue to grow it.  Highlight expertise and qualifications throughout —this section of your business plan should show off your management team superstars.

You should also note:

• Roles you still need to hire to grow your company
• The cost of hiring experts to assist operations

To make informed business decisions, you may need to budget for a  bookkeeper , a CPA, and an attorney. CPAs can help you review your monthly  accounting  transactions and prepare your annual tax return. An attorney can help with client agreements, investor contracts (like shareholder agreements), and with any legal disputes that may arise.

Ask your business contacts for referrals (and their fees), and be sure to  include those costs in your business plan.

Example of organization and management

Laura Smith, Co-founder and CEO

• Professional background
• Awards and honors
• Notable clients

Raquel Smith, Co-founder and Chief Design Officer

Laura’s Landscapers’ creative crews

• Cumulative years of experience

9. Explain your funding request

When outlining how much money your small business needs, try to be as realistic as possible. You can provide a range of numbers if you don’t want to pinpoint an exact number. However,  include a best-case scenario and a worst-case scenario.

Since a new business doesn’t have a track record of generating profits, it’s likely that you’ll sell equity to raise capital in the early years of operation. Equity means ownership—when you sell equity to raise capital, you are selling a portion of your company.

• Remember:  An equity owner may expect to have a voice in company decisions, even if they do not own a majority interest in the business.

Most small business equity sales are private transactions. The investor may also expect to be paid a dividend, which is a share of company profits, and they’ll want to know how they can sell their ownership interest. Additionally, you can raise capital by borrowing money, but you’ll have to repay creditors both the principal amount borrowed and the interest on the debt.

If you look at the capital structure of any large company, you’ll see that most firms issue both equity and debt. When drafting your business plan, decide if you’re willing to accept the trade-off of giving up total control and profits before you sell equity in your business.

• Tip:  Put together a timeline so your potential investors have an idea of what to expect. Some customers may not pay for 30 days or longer, which means the business needs a cash balance to operate.

The founder can access cash by contributing their own money into the business by securing a line of credit (LOC) at a bank or applying for  QuickBooks Capital . If you raise cash through a LOC or some other type of loan, it needs to be paid off ASAP to reduce the interest cost on debt.

Example of a funding request

Laura’s Landscapers has already purchased all necessary permits, software, and equipment to serve our existing customers. Once scaled to $972,000 in annual revenue—over the next three years and at a 10% profit margin—our primary ongoing annual expenses (not including taxes) will total $874,800.

While already profitable, we are requesting $100,000 in the form of either a business loan or in exchange for equity to purchase equipment necessary to outfit two additional creative crews.

10. Compile an appendix for official documents

Finally, assemble a well-organized appendix for anything and everything readers will need to supplement the information in your plan. Consider any info that:

• Helps investors conduct due diligence
• Gives context and easy access to you or your employees

Useful details to cover in an appendix include:

• Deeds, local permits, and legal documents
• Certifications that bolster your credibility
• Business registries and professional licenses pertaining to your legal structure or type of business
• Patents and intellectual properties
• Industry associations and memberships
• State and federal identification numbers or codes
• Key customer contracts and purchase orders

Your appendix should be a living section of the business plan, whether the plan is a document for internal reference only or an external call for investors.

• Tip:  As you include documents in the appendix, create a miniature table of contents and footnotes throughout the rest of the plan linking to or calling attention to them.

How to make a business plan that stands out

Investors have little patience for poorly written documents. You want your business plan to be as attractive and readable as possible.

• Keep it brief.  A typical business plan can range from 10 to 20 pages. As long as you cover the essentials, less is more.
• Make it easy to read.  Divide your document into distinct sections, so that investors can quickly flip between key pieces of information.
• Know your margins.  List every cost your business incurs, and make sure that you’re assigning those costs to each product or service that you sell.
• Proofread.  Double-check for typos and grammatical errors. Then, triple-check. Otherwise, you might risk your credibility.
• Invest in quality design and printing.  Proper layout, branding, and decent printing or bookbinding give your business plan a professional feel.
• Be prepared in advance.  Have everything ready to go at least two weeks ahead so you have time to make revisions in case of a last-minute change.

3 tips to update your business plan

It’s a good idea to periodically revisit your business plan, especially if you are looking to expand. Conducting new research and updating your plan could also provide answers when you hit difficult questions.

Mid-year is a good time to refocus and revise your original plans because it gives you the opportunity to refocus any goals for the second half of the year. Below are three ways to update your plan.

1. Refocus your productivity

When you wrote your original business plan, you likely identified your specific business and personal goals. Take some time now to assess if you’ve hit your targets.

• Example:  If you planned to launch a new tips and trends video series and it hasn’t happened yet, what’s stopping you? Put a timeline together and set a launch date.

If you only want to work a set number of hours per week, you must identify the products and services that deliver the returns you need to make that a reality. Doing so helps you refocus your productivity on the most lucrative profit streams.

Also, use what you’ve achieved and the hard lessons you’ve learned to help you re-evaluate what is and isn’t working.

2. Realign with your goals

Do a gut check to determine whether all of your hard work is still aligned with your original goals and your mission statement. Ask yourself these questions:

• Are my goals still relevant?
• Am I still focused on the big picture?
• Where do I want to be a year from now?
• Will my existing plan still take me where I want to go?

These questions may be tough to answer at first glance, but they reveal your ties to your goals and what most likely needs to change to achieve new wins.

3. Repurpose your offerings

If your time has become more focused on small projects rather than tangible growth and building a valuable client list, consider packaging your existing products or services differently. Can you bundle a few things together?

• Example:  Laura’s Landscapers might be able to offer a special pool and patio package. Doing so might help them bring in fewer yet higher-paying projects. Perhaps they can offer a maintenance package as well to keep that customer long term.

You must deliberately manage your revenue streams, and that might require shuffling things around a little to focus on what is working for you.

Business plan template

Even if you don’t plan on seeking investments early on, there are other important reasons to use a business plan template to write a great business plan:

• Clarifies what you’re trying to accomplish
• Identifies opportunities to understand your market, like demographics and behaviors
• Establishes the role of each team member
• Gives team members a benchmark to reference and stay on track
• Helps catch errors to make sure financial projections are accurate
• You’ll see the holes and blind spots that could cause future issues

Download the following template to build your business plan from the ground up, considering all the important questions that will help your investors and employees.

The old cliche is still true today: A failure to plan is a plan to fail. Your business plan is crucial to the growth of your business, from giving direction, motivation, and context to employees, to providing thoughtful reassurance and risk mitigation to financers. Before you get your small business up and running , put down a plan that instills confidence and sets you up for success.

Recommended for you

Starting a business

June 30, 2023

pricing strategy

14 pricing strategies to try in 2023 + how to pick one

August 24, 2023

Running a business

Financial forecasting: Definition, 7 methods + how to do it in 2023

June 2, 2023

Relevant resources to help start, run, and grow your business.

By clicking “Submit,” you agree to permit Intuit to contact you regarding QuickBooks and have read and acknowledge our Privacy Statement .

This content is for information purposes only and should not be considered legal, accounting, or tax advice, or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Intuit Inc. does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit Inc. does not warrant that the material contained herein will continue to be accurate nor that it is completely free of errors when published. Readers should verify statements before relying on them.

We provide third-party links as a convenience and for informational purposes only. Intuit does not endorse or approve these products and services, or the opinions of these corporations or organizations or individuals. Intuit accepts no responsibility for the accuracy, legality, or content on these sites.

Looking for something else?

From big jobs to small tasks, we've got your business covered.

Firm of the Future

Topical articles and news from top pros and Intuit product experts.

QuickBooks Support

Get help with QuickBooks. Find articles, video tutorials, and more.

• Canada (English)
• Canada (French)
• United Kingdom
• Other Countries

Call Sales: 1-877-683-3280

© 2023 Intuit Inc. All rights reserved.

Intuit, QuickBooks, QB, TurboTax, Mint, Credit Karma, and Mailchimp are registered trademarks of Intuit Inc.

By accessing and using this page you agree to the Website Terms of Service .

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

Noah Parsons

24 min. read

Updated November 30, 2023

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.

What’s your biggest business challenge right now?

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

• 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.

Free business plan template

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

Download Template

One-page plan template

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

Sample business plan library

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

View Sample Plans

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

Noah is currently the COO at Palo Alto Software, makers of the online business plan app LivePlan.

Table of Contents

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

Related Articles

3 Min. Read

How Long Should a Business Plan Be?

12 Min. Read

Do You Need a Business Plan? Scientific Research Says Yes

14 Min. Read

How to Write a Five-Year Business Plan

5 Min. Read

How to Highlight Risks in Your Business Plan

The LivePlan Newsletter

Become a smarter, more strategic entrepreneur.

Your first monthly newsetter will be delivered soon..

Unsubscribe anytime. Privacy policy .

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.

Our biggest savings of the year

Cyber Sale Save 60%

for life on the #1 rated business plan software

Faspay Blog

Cari tahu tentang tips bisnis online, teknologi pembayaran, pemasaran digital, dan segala yang ingin diketahui tentang Faspay

5 Steps to Create a Business Plan for Beginners

Table of Contents

Whether you are having a business or planning to build a business, you need a well-thought-out plan to run and build a successful business. Therefore, you have to make a good business plan.

This business plan as your guide in running and managing your business. Without a business plan, your business will lose its way. Let's find out more about the definition of business plans, its benefits, and how to make a good business plan in the article below. Don't forget to read until the end of the article!

What is a Business Plan?

A business plan is a document that contains details of business goals and how to achieve these goals. A business plan is a detailed guide including marketing, financial, operational and other points of view. In short, a business plan is a plan that contains business analysis, business targets, market research, goals and other business objectives.

Benefits Business Plan for Business

A business plan is made not only for formality, but also it has so many benefits. What are the benefits? Let’s see in the following below!

1. Become a Guideline in Running a Business

A business plan that contains your plans for the foreseeable future will serve as a guideline for running a business so that your business will not lose its way in the middle of the road. This is very important to keep your business growing. A business plan is made so that you can find out what steps can be taken to achieve certain business goals.

2. As a Basis for Making Decisions

Why can a business plan be the basis for making business decisions? The answer is because the business plan contains facts and data that have gone through research, so that it can be used as a basis for decisions. In addition, decisions based on data and facts will be more logical and make sense.

3. Clarify Business Goals and Focus

In building a business, of course, you have to know the goals and focus of your business, so the business has a clearer direction. If you don't have a clear purpose, your business can't grow. A business plan contains projections of your business in the future, not only that, a business plan usually contains marketing, budgeting and other strategies that will clarify the course of your business.

4. Minimize Your Business Failure

With a business plan, you can minimize failures that may occur when running a business. That's because in a business plan, you know the market conditions and weaknesses of your business so you can find out what potential failures might occur and prepare strategies to minimize them. With a business plan, your business will be far from failure.

5. Obtain Funding or Bring in New Business Partners

The Business Plan is useful to assist your business in obtaining funding from investors. Not only that, with a business plan, it will be easier for your business to get business partners.

Why? Because your partner will know the goals and direction of your business in the future. Investors will not invest carelessly and cause them to lose. Therefore they will tend to provide funding to businesses that are directed, have clear goals and well-thought-out plans.

Types of Business Plans

Before starting to discuss business plans further, it's good to know the types of business plans that exist. There are various types of business plans, including:

1. Strategic Business Plan

A strategic business plan is the most important business plan, containing various plans, goals and ways or strategies to achieve these goals. This type of business plan is more complex and more specific than the others because it is prepared comprehensively and involves all parts and functions in the business.

2. Startup or General Business Plan

The general business plan is usually used by startups or MSMEs who are targeting funding. Usually, in this type of business plan, details regarding your business finances are in the spotlight because investors need to know your business financial plan. In this business plan, you can explain in detail about your business budgeting in the future, what the funds will be used for.

3. Growth Business Plan

In a growth business plan, it contains planning with a more specific focus or goal, namely a business development plan in the future. This type of business plan describes business development plans in the next one to two years. Growth plans are usually made quarterly. At the end of each quarter, the company can review the goals achieved and goals missed during the period.

4. Operations Business Plan

Finally, the type of operations business plan relates to business operations or things that will be carried out by the business and is usually used by external parties as a guide. Operations business plan contains a discussion of planning and regulations regarding the operation of a business.

5 Steps to Create a Business Plan

After knowing various types of business plans, then the next step is to know how to make a good business plan. There are 5 steps in making a business plan, including:

1. Conduct Market and Competitor Research Analysis

The first step in preparing a business plan is to conduct market research and your business competitors. It is very important to identify the target market for your business. In addition, competitor research is also very important. Why? Because with competitor research, you can find out the gaps of competitors and use them as an advantage that your business can use. Research is very important for businesses in developing strategies.

2. Create A Business Description

Try to make a detailed description of your business, such as background, vision and mission, organizational structure and business goals. You can also include a section that explains your business profile at the start of the business plan starting from the business name, company name, date of establishment, organizational structure. Make an attractive business description so you can “sell” in the eyes of those who read your business plan.

3. Know Your Business SWOT

SWOT or the abbreviation of Strengths, Weaknesses, Opportunities and Threats is an in-depth analysis of your business. By analyzing SWOT, you can find out and evaluate the strengths, weaknesses, opportunities and threats in your business.

4. Create Timelines

Don't forget to make a timeline that will describe when each of your business plans will run. Usually the timeline is made quarterly each year. At the end of the quarter an evaluation will be carried out.

5. Make Budgets

In making a business plan, budgeting is very important. Especially if you aim to get funding from investors. Budgeting is made to know what your business funds will be used for.

Well, if you already know the meaning, benefits, types and steps in making a business plan, hopefully it can be useful to be your guide in making a business plan. In addition, when building a business, don't forget to prepare an online payment system that can provide various payment channels for consumers. Faspay can be the only payment gateway option that provides the most complete payment channels. Register Faspay now!

Lihat Artikel Lainnya

Studi Strategis Dalam Negeri Bank Indonesia Institute ke Faspay

Apa Itu Faspay Business: Sistem Pembayaran Online untuk Bisnis Anda Yang Bertumbuh

6 Cara Transfer Uang Melalui Mandiri Virtual Account Mandiri !

Peran Key Opinion Leader untuk Bisnis Anda dan Tips Memilihnya