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30 Business Plan Templates [+ How-To Guide]

Writing a good business plan involves careful research, realistic projections, and a clear explanation of your business’s path to success.

Here’s how to write a good business plan:

Define your business concept, analyze your market, outline your goals, and detail your strategy, financial plan, and operations. Ensure it’s clear, concise, and based on research to attract stakeholders and guide your growth.

In this comprehensive guide, you’ll learn everything you need to know about crafting a winning business plan.

What Is a Business Plan?

Table of Contents

A business plan is a written document that outlines your business’s goals, the strategies for achieving those goals, and the roadmap for running and growing the business.

Think of it as your company’s blueprint—it guides operations, secures funding, and attracts investors.

A strong business plan isn’t just a formality; it’s a critical document that can define your success.

A good business plan does more than communicate your business ideas—it offers evidence that you understand your industry, the competitive landscape, and the financial requirements involved.

It helps you foresee challenges, understand your market, and motivate others to join or invest in your vision.

Structure of a Business Plan Template

A business plan typically includes the following key sections.

Here’s what each section involves:

• Executive Summary – A concise overview of your business’s mission, product or service, and basic financial information. It’s usually written last but appears first.
• Business Description – Detailed information about your business, including your mission, vision, business model, and what makes your company stand out.
• Market Analysis – Research on the industry, market size, target audience, and competitive landscape. It should demonstrate your understanding of the market and how your product or service fills a need.
• Organization and Management – Describe your business structure, ownership, and key management roles. Include details about your team and their qualifications.
• Product Line or Services – Explain your products or services, including the benefits, lifecycle, and any research or development activities.
• Marketing and Sales Strategy – Describe your marketing plan, how you will attract and retain customers, pricing strategy, advertising channels, and sales process.
• Funding Request (if applicable) – If you’re seeking financing, clearly specify the amount needed, how it will be used, and the future financial plans to repay any loans or offer returns to investors.
• Financial Projections – Include income statements, cash flow statements, and balance sheets. This shows your business’s expected growth and financial health.
• Appendix – Include any additional documents that help build your case—resumes, permits, leases, product photos, etc.

Business Plan Templates

Creating a business plan can be challenging, but using a template makes it significantly easier.

Below, you’ll find 30 detailed business plan templates for different situations and scenarios—each is designed to cater to specific needs, industries, or stages of growth.

1. Startup Business Plan Template

Executive Summary: Briefly describe your business concept, mission, and goals. Outline what product or service you are offering and who your target market is.

Business Description: Provide detailed information about your business, including the problem it solves, your business model, and your competitive advantage.

Market Analysis: Include market research, industry analysis, and target audience information. Describe your competitors and what sets you apart.

Organization and Management: List key team members, roles, and their backgrounds.

Products or Services: Describe your product or service, its benefits, and the current development stage.

Marketing and Sales Strategy: Detail your plan to reach customers, including pricing, promotion, and sales tactics.

Funding Request: State how much funding you need, why you need it, and how it will be used.

Financial Projections: Provide a three-year income projection, cash flow analysis, and break-even point.

Appendix: Include any supporting documents, such as resumes or product designs.

2. Lean Business Plan Template

Business Concept: State your business idea in a few sentences. Be clear and concise.

Key Metrics: Define the metrics that are crucial for tracking success, such as customer acquisition cost or sales volume.

Target Market: Identify who your customers are and why they need your product.

Competitive Advantage: Describe what makes your offering better than others in the market.

Channels: Explain how you will reach your customers—advertising, social media, partnerships.

Revenue Streams: Define how your business will make money—direct sales, subscriptions, licensing.

Expense Summary: Keep it brief—mention the main categories of expenses like rent, inventory, and salaries.

3. Traditional Business Plan Template

Executive Summary: Provide a full overview of your business concept, goals, and plans.

Business Description: Describe your company’s history, mission, and vision.

Market Analysis: Provide detailed research, including customer demographics, market trends, and industry growth projections.

Organization and Management: Detail ownership structure, including an organizational chart.

Products or Services: Provide an in-depth look at your offerings, including any intellectual property rights or unique processes.

Marketing Strategy: Explain how you will market and sell, including specific campaigns, pricing model, and sales channels.

Funding Requirements: Clearly outline what you need and why, with an emphasis on investment returns or loan repayment plans.

Financial Projections: Include monthly cash flow for the first year and annual projections for up to five years.

Appendix: Supply supporting information such as product photos, contracts, or legal documents.

4. Nonprofit Business Plan Template

Executive Summary: Describe your nonprofit’s mission, vision, and objectives. Explain the social issue you’re addressing and the impact you plan to create.

Business Description: Provide detailed information about your nonprofit, including your target beneficiaries, the programs or services offered, and the need for your organization.

Market Analysis: Research your community or industry, describe your beneficiaries, and analyze similar nonprofit initiatives.

Organization and Management: Describe the structure of your organization, including the board of directors and key leadership roles.

Programs or Services: Explain your programs in detail, including benefits to the community and intended outcomes.

Marketing Strategy: Explain how you will promote your programs, build awareness, and attract donors or volunteers.

Funding Requirements: Outline your funding needs, including grant requests, donations, and sponsorships.

Financial Projections: Include financial goals, income sources, and how you plan to maintain financial sustainability.

Appendix: Include documents like team member resumes, letters of support, or fundraising plans.

5. E-commerce Business Plan Template

Executive Summary: Describe your online business concept, including what products you will sell and your target audience.

Business Description: Provide an overview of your e-commerce model, suppliers, and competitive advantages.

Market Analysis: Analyze online retail trends, identify competitors, and understand your target customer’s online shopping habits.

Organization and Management: List the key members of your team and any third-party service providers.

Products or Services: Describe your product lineup, suppliers, and inventory management approach.

Marketing and Sales Strategy: Detail your digital marketing plan, including SEO, PPC ads, social media, and email campaigns.

Funding Request: Outline your funding requirements to launch your e-commerce site and acquire inventory.

Financial Projections: Include sales forecasts, profit margins, and cash flow for the next few years.

Appendix: Provide documents such as supplier agreements, website mockups, or product descriptions.

6. One-Page Business Plan Template

Business Concept: A brief summary of what your business is and what problem it solves.

Target Market: Who are your customers, and what do they need?

Revenue Streams: How will you make money?

Expenses: Key costs associated with the business, such as production, staffing, or advertising.

Goals: Identify the key milestones for the first year.

Unique Selling Proposition: Why should customers choose your business?

7. Growth Business Plan Template

Executive Summary: Summarize your expansion strategy and why now is the time to grow.

Business Description: Describe your business, its current market position, and what growth means for the company.

Market Analysis: Provide data to support your growth goals—new market segments, increased demand, or emerging opportunities.

Organization and Management: Describe new roles or responsibilities that will be introduced to support growth.

Products or Services: Explain any new offerings that will be added as part of the expansion.

Marketing and Sales Strategy: Include growth-focused marketing plans, partnerships, or new sales channels.

Funding Request: Detail funding requirements to support the growth and how those funds will be used.

Financial Projections: Include projections that reflect your anticipated growth.

Appendix: Provide documents like market studies, contracts, or partnership agreements.

8. Franchise Business Plan Template

Executive Summary: Explain your intent to purchase a franchise, including the franchise brand and location.

Business Description: Detail why you chose this franchise and what makes it a good fit for the local market.

Market Analysis: Describe the local market, target demographics, and competitors.

Organization and Management: Include franchise requirements and your management plan.

Products or Services: Describe the offerings as per the franchise agreement.

Marketing Strategy: Include the franchisor’s marketing plan and any local initiatives you will undertake.

Funding Requirements: Outline the initial investment, including franchise fees, equipment, and working capital.

Financial Projections: Include break-even analysis and revenue projections for the initial years.

Appendix: Provide franchise agreement excerpts or related contracts.

9. Internal Business Plan Template

Business Objectives: State the internal goals of the business, such as improving efficiency or launching a new project.

Key Metrics: Define metrics that will track the success of internal initiatives.

Team Responsibilities: Outline the roles and responsibilities of each department involved.

Budget Requirements: Describe any funding needed internally to achieve these objectives.

Timeline: Provide a timeline for the project or initiative.

10. Strategic Business Plan Template

Executive Summary: Summarize the strategic goals and how they align with the company’s mission.

Business Overview: Provide a general overview of your company and its current position.

Strategic Objectives: Define your long-term goals and how you plan to achieve them.

Market Analysis: Describe the opportunities and threats in the market that affect your strategy.

Action Plans: Detail how specific departments or teams will contribute to the strategic goals.

Funding Requirements: If applicable, outline funding needs for strategic initiatives.

Performance Metrics: Describe how progress will be measured and evaluated.

Appendix: Include relevant charts, analysis, or reference documents.

11. Restaurant Business Plan Template

Executive Summary: Summarize your restaurant concept, mission, and target market.

Business Description: Provide details on your restaurant type (e.g., fine dining, fast-casual), cuisine, and unique features.

Market Analysis: Include research on the local dining scene, target demographics, and competitors.

Organization and Management: Describe your team structure, key roles, and the experience of chefs or managers.

Menu: Provide an overview of your menu, including signature dishes and pricing strategy.

Marketing Strategy: Explain how you will attract customers—social media, promotions, partnerships with delivery services.

Funding Requirements: Detail the funding needed for build-out, equipment, and staffing.

Financial Projections: Include revenue forecasts, cost of goods sold, and break-even analysis.

Appendix: Include sample menus, layout designs, or permits.

12. Investor Business Plan Template

Executive Summary: Highlight your business opportunity and expected returns for investors.

Business Description: Provide a detailed overview of your business, its market, and why it is a promising investment.

Market Analysis: Describe your industry, market size, and potential for growth.

Organization and Management: Outline the key members of your team and their relevant experience.

Products or Services: Describe your offerings and how they meet market demand.

Marketing and Sales Strategy: Explain your approach to gaining market share and growing revenue.

Funding Request: Specify the amount of investment required, how it will be used, and potential investor returns.

Financial Projections: Provide financial estimates, including ROI and projected profit margins.

Appendix: Include relevant documents like patents, contracts, or detailed financial spreadsheets.

13.   Real Estate Business Plan Template

Executive Summary: Summarize your real estate venture, including its goals and market potential.

Business Description: Describe the type of real estate project—commercial, residential, property flipping—and the location.

Market Analysis: Include data on property trends, target buyers or renters, and local competition.

Organization and Management: Describe the ownership structure and roles of key team members.

Property Details: Outline the properties involved, renovations (if applicable), and expected market value.

Marketing Strategy: Detail your plan to attract tenants or buyers, including advertising and staging.

Funding Requirements: Specify the funding needed for property purchase, development, and marketing.

Financial Projections: Include revenue forecasts, property appreciation, and rental income projections.

Appendix: Include property appraisals, photos, and zoning documents.

14. Technology Startup Business Plan Template

Executive Summary: Provide a snapshot of your tech startup, including the innovative product or service, mission statement, and key objectives.

Business Description: Detail the problem your technology addresses, your solution, and the unique value proposition. Explain the technology behind your product and its potential impact.

Market Analysis: Analyze the technology sector, target market, user demographics, and competitive landscape. Highlight market needs and growth opportunities.

Organization and Management: Outline your startup’s structure, including the founding team, key roles, and any advisors or board members. Highlight relevant expertise and experience.

Product Development: Describe the current stage of your technology, development roadmap, and any proprietary technology or patents. Include plans for future enhancements.

Marketing and Sales Strategy: Explain how you will promote your technology, including digital marketing, partnerships, and sales channels. Detail your customer acquisition and retention strategies.

Funding Request: Specify the amount of funding needed to develop, market, and scale your technology. Break down the use of funds and projected milestones.

Financial Projections: Provide detailed financial forecasts, including revenue streams, expenses, cash flow, and profitability. Include scenarios for different growth rates.

Appendix: Attach technical specifications, product demos, patents, resumes of the founding team, and any other supporting documents.

15. Consulting Business Plan Template

Executive Summary: Introduce your consulting firm, including the services offered, target market, and business objectives.

Business Description: Explain the consulting services you provide, your expertise, and the industries you serve. Highlight what differentiates your firm from competitors.

Market Analysis: Research your target market, client needs, industry trends, and competitor analysis. Identify opportunities for growth and potential challenges.

Organization and Management: Detail the structure of your consulting firm, including key team members, their roles, and qualifications. Include information about any advisory board.

Services Offered: Describe each consulting service in detail, including methodologies, deliverables, and pricing models. Highlight any proprietary processes or tools.

Marketing and Sales Strategy: Outline your plan to attract and retain clients, including networking, content marketing, referrals, and online presence. Detail your sales funnel and client onboarding process.

Funding Requirements: If seeking funding, specify the amount needed for operations, marketing, and scaling. Explain how the funds will be utilized to achieve business goals.

Financial Projections: Provide forecasts for revenue, expenses, and profitability. Include client acquisition costs, projected billable hours, and pricing strategies.

Appendix: Include resumes of key team members, case studies, client testimonials, and any other relevant documents.

16. Manufacturing Business Plan Template

Executive Summary: Provide an overview of your manufacturing business, including the products you produce, mission statement, and key objectives.

Business Description: Detail the manufacturing processes, facilities, and equipment. Explain the types of products you manufacture and their applications.

Market Analysis: Analyze the manufacturing industry, target markets, demand forecasts, and competitive landscape. Identify key trends and opportunities.

Organization and Management: Outline your company’s structure, including management team, production staff, and any advisory boards. Highlight relevant experience and expertise.

Products: Describe the products you manufacture, including specifications, benefits, and unique features. Include information on product lifecycle and any plans for future development.

Marketing and Sales Strategy: Explain how you will market your products, including distribution channels, pricing strategies, and promotional activities. Detail your sales process and customer relationship management.

Funding Requirements: Specify the capital needed for equipment, facilities, inventory, and operations. Provide a breakdown of how funds will be allocated.

Financial Projections: Provide comprehensive financial forecasts that encompass income statements, balance sheets, and cash flow analyses. Provide projections for sales growth, cost of goods sold, and profitability.

Appendix: Attach product samples, manufacturing process diagrams, equipment lists, and any other supporting documents.

17. Healthcare Business Plan Template

Executive Summary: Introduce your healthcare business, including services offered, mission statement, and primary objectives.

Business Description: Detail the healthcare services you provide, your target patient demographics, and the healthcare setting (e.g., clinic, hospital, telehealth).

Market Analysis: Analyze the healthcare industry, target market needs, regulatory environment, and competitive landscape. Identify trends and opportunities for your services.

Organization and Management: Outline the organizational structure, including key healthcare professionals, management team, and support staff. Highlight qualifications and experience.

Services Offered: Describe each healthcare service in detail, including procedures, technologies used, and patient benefits. Explain how your services meet market needs.

Marketing and Sales Strategy: Explain your strategies for attracting and retaining patients, including online presence, partnerships with other healthcare providers, and community outreach.

Funding Requirements: If seeking funding, specify the amount needed for equipment, facilities, staffing, and operations. Detail how the funds will support business growth.

Financial Projections: Provide financial forecasts, including revenue from services, operating expenses, profitability, and cash flow. Include projections for patient volume and service pricing.

Appendix: Include licenses, certifications, staff resumes, facility layouts, and any other relevant documents.

18. Retail Business Plan Template

Executive Summary: Provide an overview of your retail business, including the products you sell, mission statement, and key objectives.

Business Description: Detail the type of retail store (e.g., clothing, electronics, specialty goods), location, and the unique value proposition that sets your store apart.

Market Analysis: Analyze the retail industry, target customer demographics, market trends, and competition. Identify opportunities and potential challenges in the market.

Organization and Management: Outline your store’s organizational structure, including management team, sales staff, and any key roles. Highlight relevant experience and expertise.

Products: Describe the products you sell, including brands, suppliers, and inventory management strategies. Highlight any exclusive or unique offerings.

Marketing and Sales Strategy: Explain your strategies for attracting customers, including in-store promotions, online marketing, loyalty programs, and visual merchandising.

Funding Requirements: Specify the capital needed for inventory, store setup, marketing, and operations. Provide a detailed breakdown of how funds will be used.

Financial Projections: Include sales forecasts, cost of goods sold, operating expenses, and profitability projections. Provide estimates for break-even points and cash flow.

Appendix: Attach product catalogs, supplier agreements, store layouts, and any other supporting documents.

19. Education Business Plan Template

Executive Summary: Introduce your educational institution or service, including mission statement, educational offerings, and key objectives.

Business Description: Detail the type of education business (e.g., private school, tutoring center, online courses), target students, and unique value proposition.

Market Analysis: Analyze the education sector, target student demographics, demand for your offerings, and competitive landscape. Identify trends and opportunities.

Organization and Management: Outline the organizational structure, including administrative team, educators, and support staff. Highlight qualifications and experience.

Educational Programs: Describe the courses or programs offered, curriculum details, teaching methodologies, and any accreditation or certifications.

Marketing and Sales Strategy: Explain your strategies for attracting students, including online marketing, partnerships with schools, community outreach, and referral programs.

Funding Requirements: If seeking funding, specify the amount needed for facilities, equipment, curriculum development, and operations. Detail how funds will be utilized.

Financial Projections: Provide financial forecasts, including tuition revenue, operating expenses, profitability, and cash flow. Include projections for student enrollment and retention.

Appendix: Include curriculum outlines, staff resumes, accreditation documents, and any other relevant materials.

20. App Development Business Plan Template

Executive Summary: Provide an overview of your app development business, including the types of apps you create, mission statement, and key objectives.

Business Description: Detail the focus of your app development services, target platforms (iOS, Android, web), and the unique value proposition you offer to clients.

Market Analysis: Analyze the app development industry, target client segments, market demand, and competitive landscape. Identify trends and opportunities.

Organization and Management: Outline your company’s structure, including key team members, their roles, and relevant experience in app development.

Services Offered: Describe the app development services you provide, such as UI/UX design, coding, testing, and maintenance. Highlight any specialized skills or technologies you use.

Marketing and Sales Strategy: Explain how you will attract clients, including online marketing, networking, partnerships, and showcasing your portfolio.

Funding Requirements: If seeking funding, specify the amount needed for software, tools, marketing, and hiring. Detail how the funds will support business growth.

Financial Projections: Provide financial forecasts, including revenue from app projects, operating expenses, profitability, and cash flow. Include estimates for project acquisition and pricing.

Appendix: Include portfolio examples, client testimonials, resumes of key team members, and any other supporting documents.

21. Social Enterprise Business Plan Template

Executive Summary: Introduce your social enterprise, including its mission to address a social issue, business objectives, and key strategies.

Business Description: Detail the social problem your enterprise addresses, your solution, and the unique value proposition. Explain how your business model integrates social impact with financial sustainability.

Market Analysis: Analyze the social enterprise sector, target beneficiaries, market needs, and competitive landscape. Identify opportunities for impact and growth.

Organization and Management: Outline your organizational structure, including leadership team, board members, and key staff. Highlight relevant experience and commitment to the social mission.

Products or Services: Describe the products or services you offer, including how they contribute to social change. Highlight any innovative approaches or partnerships.

Marketing and Sales Strategy: Explain your strategies for reaching beneficiaries, raising awareness, and generating revenue. Include plans for community engagement, partnerships, and fundraising.

Funding Requirements: Specify the capital needed to launch or scale your social enterprise. Detail how funds will be used to achieve both social and financial goals.

Financial Projections: Provide financial forecasts, including revenue streams, operating expenses, and profitability. Include projections for social impact metrics alongside financial metrics.

Appendix: Include impact reports, case studies, team resumes, and any other supporting documents.

22. Subscription-Based Business Plan Template

Executive Summary: Provide an overview of your subscription-based business, including the products or services offered, mission statement, and key objectives.

Business Description: Detail the nature of your subscription service, target market, and unique value proposition. Explain how your business model ensures recurring revenue.

Market Analysis: Analyze the subscription industry, target customer demographics, market demand, and competitive landscape. Identify trends and opportunities for your service.

Organization and Management: Outline your company’s structure, including key team members, their roles, and relevant experience. Highlight expertise in managing subscription models.

Products or Services: Describe the subscription offerings, including tiers, pricing, and benefits. Explain how your service meets customer needs and encourages long-term engagement.

Marketing and Sales Strategy: Explain how you will attract and retain subscribers, including digital marketing, referral programs, content marketing, and customer loyalty initiatives.

Funding Requirements: If seeking funding, specify the amount needed for platform development, marketing, and scaling operations. Detail how funds will support subscriber growth.

Financial Projections: Provide financial forecasts, including subscriber acquisition rates, churn rates, revenue per user, and profitability. Include cash flow projections and break-even analysis.

Appendix: Include platform mockups, pricing models, customer testimonials, and any other relevant documents.

23. SaaS (Software as a Service) Business Plan Template

Executive Summary: Introduce your SaaS business, including the software solution you offer, mission statement, and key objectives.

Business Description: Detail the problem your software solves, the features and benefits of your SaaS product, and your unique value proposition. Explain your subscription model and pricing strategy.

Market Analysis: Analyze the SaaS industry, target market segments, customer needs, and competitive landscape. Identify trends and opportunities for your software solution.

Organization and Management: Outline your company’s structure, including key team members, their roles, and relevant experience in software development and SaaS management.

Product Development: Describe the development stage of your software, technology stack, and future roadmap. Highlight any proprietary technology or patents.

Marketing and Sales Strategy: Explain your strategies for acquiring and retaining customers, including digital marketing, content marketing, partnerships, and sales funnels. Detail your customer onboarding and support processes.

Funding Requirements: If seeking funding, specify the amount needed for software development, marketing, and scaling operations. Detail how funds will be allocated to support growth.

Financial Projections: Provide financial forecasts, including subscription revenue, customer acquisition costs, lifetime value (LTV), and profitability. Include cash flow projections and break-even analysis.

Appendix: Include software demos, technical documentation, team resumes, and any other supporting materials.

24. Manufacturing Startup Business Plan Template

Executive Summary: Provide an overview of your manufacturing startup, including the products you intend to produce, mission statement, and key objectives.

Business Description: Detail the manufacturing processes, facilities, and equipment required. Explain the type of products you will manufacture and their applications.

Market Analysis: Analyze the manufacturing industry, target markets, demand forecasts, and competitive landscape. Identify trends and opportunities for your products.

Organization and Management: Outline your startup’s structure, including the management team, production staff, and any advisory boards. Highlight relevant experience and expertise.

Products: Describe the products you plan to manufacture, including specifications, benefits, and unique features. Explain your product development process and any proprietary technology.

Funding Requirements: Specify the capital needed for equipment, facilities, inventory, and operations. Provide a detailed breakdown of how funds will be used.

25. Mobile App Business Plan Template

Executive Summary: Introduce your mobile app, including its purpose, target audience, mission statement, and key objectives.

Business Description: Detail the app’s features, functionality, and the problem it solves. Explain the unique value proposition and how it stands out in the market.

Market Analysis: Analyze the mobile app industry, target user demographics, market demand, and competitive landscape. Identify trends and opportunities for your app.

Organization and Management: Outline your team’s structure, including developers, designers, marketers, and any advisors. Highlight relevant experience and expertise.

App Development: Describe the development process, technology stack, and timeline for launching the app. Include information about design, testing, and any planned updates.

Marketing and Sales Strategy: Explain your strategies for promoting the app, including app store optimization (ASO), digital marketing, social media campaigns, and influencer partnerships. Detail your user acquisition and retention strategies.

Funding Requirements: If seeking funding, specify the amount needed for development, marketing, and scaling operations. Detail how funds will support user growth and feature enhancements.

Financial Projections: Provide financial forecasts, including revenue from in-app purchases, subscriptions, advertising, and other monetization strategies. Include estimates for user acquisition costs and profitability.

Appendix: Include app mockups, user flow diagrams, team resumes, and any other supporting documents.

26. Import/Export Business Plan Template

Executive Summary: Provide an overview of your import/export business, including the products you trade, mission statement, and key objectives.

Business Description: Detail the types of products you import or export, target markets, and the value proposition you offer to suppliers and customers.

Market Analysis: Analyze the global trade industry, target markets, demand for your products, and competitive landscape. Identify trends, opportunities, and potential challenges.

Organization and Management: Outline your company’s structure, including key team members, their roles, and relevant experience in international trade.

Products: Describe the products you plan to import or export, including specifications, sourcing strategies, and any quality control measures.

Marketing and Sales Strategy: Explain your strategies for finding suppliers and customers, including trade shows, online platforms, partnerships, and direct sales. Detail your pricing strategy and distribution channels.

Funding Requirements: Specify the capital needed for inventory, shipping, marketing, and operations. Provide a detailed breakdown of how funds will be used.

Financial Projections: Include financial forecasts, such as revenue from sales, cost of goods sold, operating expenses, and profitability. Provide estimates for cash flow and break-even analysis.

Appendix: Attach supplier agreements, contracts, import/export licenses, and any other supporting documents.

27. Agricultural Business Plan Template

Executive Summary: Introduce your agricultural business, including the type of farming or agricultural services offered, mission statement, and key objectives.

Business Description: Detail the agricultural activities you engage in, such as crop farming, livestock raising, or agribusiness services. Explain your farming methods and sustainability practices.

Market Analysis: Analyze the agricultural industry, target markets, demand for your products, and competitive landscape. Identify trends and opportunities in the market.

Organization and Management: Outline your farm’s structure, including ownership, management team, and key staff. Highlight relevant experience and expertise in agriculture.

Products or Services: Describe the agricultural products you produce or services you offer, including production methods, quality standards, and any value-added products.

Marketing and Sales Strategy: Explain your strategies for marketing your agricultural products, including distribution channels, pricing strategies, and promotional activities. Detail your plans for reaching local and regional markets.

Funding Requirements: Specify the capital needed for land acquisition, equipment, seeds or livestock, infrastructure, and operations. Provide a detailed breakdown of how funds will be used.

Financial Projections: Include financial forecasts, such as revenue from product sales, cost of production, operating expenses, and profitability. Provide estimates for cash flow and break-even analysis.

Appendix: Attach land leases, equipment lists, production schedules, and any other supporting documents.

28. Fashion Business Plan Template

Executive Summary: Provide an overview of your fashion business, including the type of fashion products you offer, mission statement, and key objectives.

Business Description: Detail the focus of your fashion business, such as apparel, accessories, or footwear. Explain your design philosophy, target market, and unique value proposition.

Market Analysis: Analyze the fashion industry, target customer demographics, market trends, and competitive landscape. Identify opportunities and potential challenges.

Organization and Management: Outline your company’s structure, including key team members, their roles, and relevant experience in the fashion industry.

Products: Describe your fashion products in detail, including design, materials, production processes, and any unique features. Highlight any proprietary designs or trademarks.

Marketing and Sales Strategy: Explain your strategies for promoting your fashion brand, including online marketing, social media, influencer partnerships, and retail distribution. Detail your sales channels and pricing strategy.

Funding Requirements: Specify the capital needed for design, production, inventory, marketing, and operations. Provide a detailed breakdown of how funds will be used.

Appendix: Attach design sketches, production samples, supplier agreements, and any other supporting documents.

29. Transportation Business Plan Template

Executive Summary: Introduce your transportation business, including the services you offer, mission statement, and key objectives.

Business Description: Detail the type of transportation services you provide, such as logistics, freight forwarding, passenger transport, or courier services. Explain your service areas and unique value proposition.

Market Analysis: Analyze the transportation industry, target markets, demand for your services, and competitive landscape. Identify trends and opportunities in the market.

Organization and Management: Outline your company’s structure, including key team members, their roles, and relevant experience in transportation and logistics.

Services Offered: Describe each transportation service in detail, including coverage areas, types of vehicles or equipment used, and any specialized services offered.

Marketing and Sales Strategy: Explain your strategies for attracting and retaining clients, including online marketing, partnerships, networking, and customer service initiatives. Detail your pricing strategy and sales process.

Funding Requirements: Specify the capital needed for vehicles, equipment, technology, marketing, and operations. Provide a detailed breakdown of how funds will be used.

Financial Projections: Include financial forecasts, such as revenue from services, operating expenses, profitability, and cash flow. Provide estimates for growth and scalability.

Appendix: Attach licenses, permits, vehicle lists, insurance documents, and any other supporting materials.

30. Entertainment Business Plan Template

Executive Summary: Provide an overview of your entertainment business, including the services or products you offer, mission statement, and key objectives.

Business Description: Detail the focus of your entertainment business, such as event planning, talent management, film production, or digital content creation. Explain your unique value proposition.

Market Analysis: Analyze the entertainment industry, target audience demographics, market trends, and competitive landscape. Identify opportunities and potential challenges.

Organization and Management: Outline your company’s structure, including key team members, their roles, and relevant experience in the entertainment sector.

Services or Products: Describe the entertainment services or products you offer in detail, including production processes, distribution channels, and any unique features.

Marketing and Sales Strategy: Explain your strategies for promoting your entertainment offerings, including digital marketing, partnerships, events, and influencer collaborations. Detail your sales channels and pricing strategy.

Funding Requirements: Specify the capital needed for production, marketing, talent acquisition, and operations. Provide a detailed breakdown of how funds will be used.

Financial Projections: Include financial forecasts, such as revenue from services or products, cost of production, operating expenses, and profitability. Provide estimates for cash flow and break-even analysis.

Appendix: Attach portfolios, show reels, contracts, talent agreements, and any other supporting documents.

Business Plan Example

To illustrate how to create a comprehensive and effective business plan, below is an example for Green Leaf Cafe , a startup focused on providing organic, locally-sourced meals in a welcoming neighborhood setting.

Executive Summary:

Green Leaf Cafe aims to deliver healthy, organic, and locally-sourced meals to health-conscious individuals in downtown Springfield. Our mission is to promote sustainable eating habits while offering a comfortable and inviting atmosphere for our customers. We seek an initial investment of $150,000 to cover startup costs and operations for the first year. Our projected revenue for the first year is $300,000, with a break-even point expected within 18 months.

Business Description:

Green Leaf Cafe is a limited liability company (LLC) located in downtown Springfield. We specialize in organic, farm-to-table meals, including breakfast, lunch, and a selection of beverages. Our unique value proposition lies in our commitment to sustainability, from sourcing ingredients locally to using eco-friendly packaging. We cater to busy professionals, students, and families who prioritize health and sustainability.

Market Analysis:

The organic food market in Springfield is growing, with an increasing number of consumers seeking healthier and environmentally friendly dining options. Our target market includes individuals aged 25-45 with disposable income and a preference for organic and locally-sourced foods. The competitive landscape includes three other cafes in the area; however, none offer the same level of commitment to sustainability and local sourcing as Green Leaf Cafe. Market trends indicate a rising demand for plant-based options and eco-conscious business practices, which aligns perfectly with our offerings.

Organization and Management:

Green Leaf Cafe is founded by Jane Doe, who has over 10 years of experience in the restaurant industry, and John Smith, an expert in sustainable agriculture. The management team includes a head chef, a marketing manager, and an operations manager. Each team member brings specialized skills essential for the successful operation of the cafe. Additionally, we will employ part-time staff for daily operations and customer service.

Products or Services:

We offer a variety of organic meals, including breakfast items like avocado toast and smoothie bowls, lunch options such as quinoa salads and veggie wraps, and a selection of herbal teas and organic coffees. All our ingredients are sourced from local farms, ensuring freshness and supporting the local economy. Additionally, we offer catering services for local businesses and events, providing healthy meal options for meetings and gatherings.

Marketing and Sales Strategy:

Our marketing strategy includes a strong online presence through social media platforms and a user-friendly website with online ordering capabilities. We will engage in community events, offer loyalty programs, and partner with local fitness centers and wellness influencers to reach our target audience. Our sales strategy focuses on excellent customer service, high-quality products, and creating a welcoming environment to encourage repeat business. We will also implement seasonal promotions and limited-time offers to attract new customers.

Funding Request:

Green Leaf Cafe is seeking $150,000 in funding to cover startup costs, including leasing a space, purchasing equipment, initial inventory, and marketing expenses. The funds will be allocated as follows:

• Lease and Renovations: $50,000
• Equipment and Inventory: $30,000
• Marketing and Advertising: $40,000
• Working Capital: $30,000

Financial Projections:

Our financial projections indicate steady growth in revenue, with the first-year revenue expected to reach $300,000. We project operating expenses of $250,000, resulting in a net profit of $50,000. Cash flow statements and balance sheets are included in the appendix, showing a healthy financial outlook and a break-even point within 18 months. By the end of year two, we anticipate a 20% increase in revenue as brand recognition grows and customer loyalty strengthens.

Included in the appendix are the resumes of the founding team, sample menus, lease agreements, supplier contracts, and detailed financial projections. Additionally, we have included letters of intent from local suppliers and testimonials from potential customers who have previewed our menu. Photographs of the proposed cafe layout and design sketches are also provided to give a clear vision of our establishment.

20 Prompts for Writing Business Plans

To guide you through this process, here are 20 prompts that will help you develop each section of your business plan effectively:

• What is your business concept? Describe the core idea behind your business, including the products or services you will offer.
• What is your mission statement? Define the purpose and primary objectives of your business.
• Who are your target customers? Clearly define the unique demographic attributes, purchasing behaviors, and specific needs of your ideal clientele.
• What problem does your business solve? Explain the pain points or challenges your business addresses for your customers.
• What is your unique value proposition? Describe what sets your business apart from competitors and why customers should choose you.
• What is your business model? Outline how your business will generate revenue, including pricing strategies and sales channels.
• Who are your main competitors? Identify key competitors in your industry and analyze their strengths and weaknesses.
• What are the market trends affecting your business? Discuss current trends in your industry that could impact your business’s success.
• What are your short-term and long-term goals? Define specific, measurable objectives for the next year and the next five years.
• What is your organizational structure? Describe the hierarchy of your business, including key roles and responsibilities.
• What are your staffing needs? Identify the number and types of employees you will need to operate effectively.
• What is your marketing strategy? Outline how you plan to promote your business and attract customers.
• What are your sales strategies? Describe the methods you will use to sell your products or services.
• What are your funding requirements? Specify how much capital you need to start and grow your business, and how it will be used.
• What are your financial projections? Provide estimates of your revenue, expenses, and profitability for the next few years.
• What are the key risks and how will you mitigate them? Identify potential challenges and outline strategies to address them.
• What are your operational plans? Detail the day-to-day operations required to run your business, including suppliers and production processes.
• What is your product or service development plan? Explain how you will develop and improve your offerings over time.
• How will you measure success? Define the key performance indicators (KPIs) you will use to track your business’s progress.
• What is your exit strategy? Outline your plans for the future, such as selling the business, merging, or passing it on to successors.

Now that you have your template and prompts, watch this video on how to write your business plan:

Final Thoughts: Business Plan Templates

Use these business plan templates to jump start your business plan — and, eventually, your business.

You might need to know how to write other things, too, so check out some of our other guides below.

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What is a Business Plan? Definition, Tips, and Templates

Updated: June 28, 2024

Published: August 04, 2020

Years ago, I had an idea to launch a line of region-specific board games. I knew there was a market for games that celebrated local culture and heritage. I was so excited about the concept and couldn't wait to get started.

But my idea never took off. Why? Because I didn‘t have a plan. I lacked direction, missed opportunities, and ultimately, the venture never got off the ground.

And that’s exactly why a business plan is important. It cements your vision, gives you clarity, and outlines your next step.

In this post, I‘ll explain what a business plan is, the reasons why you’d need one, identify different types of business plans, and what you should include in yours.

Table of Contents

What is a business plan?

What is a business plan used for.

• Business Plan Template [Download Now]

Purposes of a Business Plan

What does a business plan need to include, types of business plans.

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A business plan is a comprehensive document that outlines a company's goals, strategies, and financial projections. It provides a detailed description of the business, including its products or services, target market, competitive landscape, and marketing and sales strategies. The plan also includes a financial section that forecasts revenue, expenses, and cash flow, as well as a funding request if the business is seeking investment.

The business plan is an undeniably critical component to getting any company off the ground. It's key to securing financing, documenting your business model, outlining your financial projections, and turning that nugget of a business idea into a reality.

The purpose of a business plan is three-fold: It summarizes the organization’s strategy in order to execute it long term, secures financing from investors, and helps forecast future business demands.

Business Plan Template [ Download Now ]

Working on your business plan? Try using our Business Plan Template . Pre-filled with the sections a great business plan needs, the template will give aspiring entrepreneurs a feel for what a business plan is, what should be in it, and how it can be used to establish and grow a business from the ground up.

In an era where 48% of businesses survive half a decade on, having a clear, defined, and well-thought-out business plan is a crucial first step for setting up a business for long-term success.

Here’s why I think a business plan is important:

1. Securing Financing From Investors

Since its contents revolve around how businesses succeed, break-even, and turn a profit, a business plan is used as a tool for sourcing capital. This document is an entrepreneur's way of showing potential investors or lenders how their capital will be put to work and how it will help the business thrive.

I’ve seen that all banks, investors, and venture capital firms will want to see a business plan before handing over their money. Therefore, these investors need to know if — and when — they‘ll be making their money back (and then some).

Additionally, they’ll want to read about the process and strategy for how the business will reach those financial goals, which is where the context provided by sales, marketing, and operations plans come into play.

2. Documenting a Company's Strategy and Goals

I think a business plan should leave no stone unturned.

Business plans can span dozens or even hundreds of pages, affording their drafters the opportunity to explain what a business' goals are and how the business will achieve them.

To show potential investors that they've addressed every question and thought through every possible scenario, entrepreneurs should thoroughly explain their marketing, sales, and operations strategies — from acquiring a physical location for the business to explaining a tactical approach for marketing penetration.

These explanations should ultimately lead to a business' break-even point supported by a sales forecast and financial projections, with the business plan writer being able to speak to the why behind anything outlined in the plan.

3. Legitimizing a Business Idea

I’ve seen that everyone‘s got a great idea for a company — until they put pen to paper and realize that it’s not exactly feasible.

A business plan is an aspiring entrepreneur's way to prove that a business idea is actually worth pursuing.

As entrepreneurs document their go-to-market process, capital needs, and expected return on investment, entrepreneurs likely come across a few hiccups that will make them second guess their strategies and metrics — and that's exactly what the business plan is for.

It ensures you have everything in order before bringing their business idea to the world and reassures the readers that whoever wrote the plan is serious about the idea, having put hours into thinking of the business idea, fleshing out growth tactics, and calculating financial projections.

4. Getting an A in Your Business Class

Speaking from personal experience, there‘s a chance you’re here to get business plan ideas for your Business 101 class project.

If that's the case, might I suggest checking out this post on How to Write a Business Plan , which provides a section-by-section guide on creating your plan?

5. Identifying Potential Problems

Business plans act as early warning systems that identify potential problems before they escalate into major obstacles.

How? When you conduct thorough market research, analyze competitor strategies, and evaluate financial projections, your plan pinpoints vulnerabilities and risks. This allows you to develop contingency plans and risk mitigation strategies.

This helps you prevent costly mistakes and shows investors and lenders you’re well-prepared and have considered various scenarios.

6. Attracts and Retains Talent

A well-articulated plan outlines your company's vision, mission, and values, showcasing a clear direction and purpose. People who want meaningful work that aligns with their ambitions will love this.

Also, it shows the company's potential for growth and stability. This instills confidence in employees and assures them of a secure future and opportunities for career advancement.

When you show growth potential and highlight a positive work culture, your business plan becomes a magnet for top talent.

7. Provides a Roadmap

A business plan provides a detailed roadmap for your company's future. It outlines your objectives, strategies, and the specific actions you need to achieve your goals.

When you define your path forward, a business plan helps you stay focused and on track, even when you face challenges or distractions. It’s a great reference tool that allows you to make smart decisions that align with your overall vision.

This way, having a comprehensive roadmap in the form of a business plan provides direction and clarity at every stage of your business journey.

8. Serves as a Marketing Tool

A business plan is not only an internal guide but also serves as a powerful marketing tool. Your business plan can showcase your company‘s strengths, unique value proposition, and growth potential when you’re looking for investors, partnerships, or new clients.

It provides a professional and polished overview of your business, which shows your commitment and strategic thinking to potential stakeholders.

Your business plan helps you attract the right people by clearly articulating your target market, competitive advantages, and financial projections. In summary, it acts as a persuasive sales pitch.

• Business Plan Subtitle
• Executive Summary
• Company Description
• The Business Opportunity
• Competitive Analysis
• Target Market
• Marketing Plan
• Financial Summary
• Funding Requirements

1. Business Plan Subtitle

Every great business plan starts with a captivating title and subtitle. You’ll want to make it clear that the document is, in fact, a business plan, but the subtitle can help tell the story of your business in just a short sentence.

2. Executive Summary

Although this is the last part of the business plan that you’ll write, it’s the first section (and maybe the only section) that stakeholders will read.

The executive summary of a business plan sets the stage for the rest of the document. It includes your company’s mission or vision statement, value proposition, and long-term goals.

3. Company Description

This brief part of your business plan will detail your business name, years in operation, key offerings, and positioning statement.

You might even add core values or a short history of the company. The company description’s role in a business plan is to introduce your business to the reader in a compelling and concise way.

4. The Business Opportunity

The business opportunity should convince investors that your organization meets the needs of the market in a way that no other company can.

This section explains the specific problem your business solves within the marketplace and how it solves them. It will include your value proposition as well as some high-level information about your target market.

5. Competitive Analysis

Just about every industry has more than one player in the market. Even if your business owns the majority of the market share in your industry or your business concept is the first of its kind, you still have competition.

In the competitive analysis section, you’ll take an objective look at the industry landscape to determine where your business fits. A SWOT analysis is an organized way to format this section.

6. Target Market

Who are the core customers of your business and why? The target market portion of your business plan outlines this in detail. The target market should explain the demographics, psychographics, behavioristics, and geographics of the ideal customer.

7. Marketing Plan

Marketing is expansive, and it’ll be tempting to cover every type of marketing possible, but a brief overview of how you’ll market your unique value proposition to your target audience, followed by a tactical plan, will suffice.

Think broadly and narrow down from there: Will you focus on a slow-and-steady play where you make an upfront investment in organic customer acquisition? Or will you generate lots of quick customers using a pay-to-play advertising strategy?

This kind of information should guide the marketing plan section of your business plan.

8. Financial Summary

Money doesn’t grow on trees. Even the most digital, sustainable businesses have expenses. Outlining a financial summary of where your business is currently and where you’d like it to be in the future will substantiate this section.

Consider including any monetary information that will give potential investors a glimpse into the financial health of your business. Assets, liabilities, expenses, debt, investments, revenue, and more are all useful additions here.

So, you’ve outlined some great goals, the business opportunity is valid, and the industry is ready for what you have to offer. Who’s responsible for turning all this high-level talk into results?

The “team” section of your business plan answers that question by providing an overview of the roles responsible for each goal.

Don’t worry if you don’t have every team member on board yet. Knowing what roles to hire for is helpful as you seek funding from investors.

10. Funding Requirements

Remember that one of the goals of a business plan is to secure funding from investors, so you’ll need to include funding requirements you’d like them to fulfill.

Considering that global funding fell 61% from 2021 to 2023 , it’s very important to be clear in this section. Include the amount your business needs, for what reasons, and for how long.

• Startup Business Plan
• Feasibility Business Plan
• Internal Business Plan
• Strategic Business Plan
• Business Acquisition Plan
• Business Repositioning Plan
• Expansion or Growth Business Plan

There’s no one size fits all business plan as there are several types of businesses in the market today. From startups with just one founder to historic household names that need to stay competitive, every type of business needs a business plan that’s tailored to its needs. Below are a few of the most common types of business plans.

For even more examples, check out these sample business plans to help you write your own .

1. Startup Business Plan

As one of the most common types of business plans, a startup business plan is for new business ideas. This plan lays the foundation for the eventual success of a business.

I think the biggest challenge with the startup business plan is that it's written completely from scratch. Startup business plans often reference existing industry data. They also explain unique business strategies and go-to-market plans.

Because startup business plans expand on an original idea, the contents will vary by the top priority goals.

For example, say a startup is looking for funding. If capital is a priority, this business plan might focus more on financial projections than marketing or company culture.

Eric Heckstall , the founder and CEO of EDH Signature Inc ., which offers premier grooming products, also suggests keeping your startup business plan short.

“The traditional business plan can be 40+ pages, which is too large of a document to really be useful, can be difficult for staff to understand, and have to dig for information which most people won’t do,” Heckstall says.

Conversely, a one-to-two-page business plan improves clarity and focus. Heckstall says this format “is easy to use on a day-to-day basis, teams as well as potential investors can understand the purpose and direction of the company, and can easily be incorporated into team meetings.”

2. Feasibility Business Plan

This type of business plan focuses on a single essential aspect of the business — the product or service. It may be part of a startup business plan or a standalone plan for an existing organization. This comprehensive plan may include:

• A detailed product description.
• Market analysis.
• Technology needs.
• Production needs.
• Financial sources.
• Production operations.

Startups can fail because of a lack of market need and mistimed products. Plus, nearly half of entrepreneurs , founders, CEOs, and COOs report that price sensitivity and evolving market conditions are the number one prospect and customer challenges they face right now.

Some businesses will complete a feasibility study to explore ideas and narrow product plans to the best choice. They conduct these studies before completing the feasibility business plan. Then, the feasibility plan centers on that one product or service.

Zach Dannett , co-founder at rug company Tumble highlights how some business owners take a very idealistic approach too. And forget barriers to entry like regulatory issues in the process.

He adds how considering this aspect in their business plan helped.

Before launching the team, Dannett first took time to understand regulatory requirements in our industry, checking to make sure we needed to secure any certifications or licenses.

Then, “we reviewed financial requirements, which would cover initial investments, operational costs, and potential expenses. We then conducted thorough market research to understand our market, how saturated this market is, and identify major competitors with significant market share,” Dannett says

3. Internal Business Plan

Internal business plans help leaders communicate company goals, strategy, and performance. This helps the business align and work toward objectives more effectively.

Besides the typical elements in a startup business plan, an internal business plan may also include:

• Department-specific budgets.
• Target demographic analysis.
• Market size and share of voice analysis.
• Action plans.
• Sustainability plans.

Most external-facing business plans focus on raising capital and support for a business. But, an internal business plan helps keep the business mission consistent in the face of change.

You can also reduce your workload by using a free business template that helps you get a headstart on what to include.

4. Strategic Business Plan

Strategic business plans focus on long-term objectives for your business. They usually cover the first three to five years of operations. This is different from the typical startup business plan which focuses on the first one to three years. The audience for this plan is also primarily internal stakeholders.

These types of business plans may include:

• Relevant data and analysis.
• Assessments of company resources.
• Vision and mission statements.

It's important to remember that, while many businesses create a strategic plan before launching, some business owners just jump in.

David Sides , marketing specialist at The Gori Law , highlights how it’s important not to create this plan in isolation and involve key stakeholders from across the organization in the planning process.

“We make a point of bringing together attorneys, paralegals, and support staff to discuss our long-term goals and how we can work together to achieve them. This not only helps ensure buy-in and alignment, but it also allows you to tap into a wider range of perspectives and ideas,” Sides says.

This way, the strategic business plan can add value by outlining how your business plans to reach specific goals and considering a holistic perspective from the most important stakeholders. This type of planning can also help a business anticipate future challenges.

5. Business Acquisition Plan

Investors use business plans to acquire existing businesses, too — not just new businesses.

I recommend including costs, schedules, or management requirements. This data will come from an acquisition strategy.

A business plan for an existing company will explain:

• How an acquisition will change its operating model.
• What will stay the same under new ownership.
• Why things will change or stay the same.
• Acquisition planning documentation.
• Timelines for acquisition.

Ilia Tretiakov , owner and lead strategist, at So Good Digital , a marketing agency suggests adding a Day Zero Plan. This is a thorough plan outlining the steps you will take the moment the acquisition is completed.

It consists of stakeholder communication plans, critical system integration, quick operational adjustments, and cultural alignment initiatives.

Here’s why Ilia believes it’s important.

“A Day Zero Plan establishes the framework for the integration process and guarantees a seamless transition. This comprehensive strategy goes above and beyond the typical post-acquisition integration plan, taking care of urgent issues and laying the groundwork for long-term success,” Tretiakov says,

Apart from this, I believe the business plan should speak to the current state of the business and why it's up for sale.

For example, if someone is purchasing a failing business, the business plan should explain why the business is being purchased. It should also include:

• What the new owner will do to turn the business around.
• Historic business metrics.
• Sales projections after the acquisition.
• Justification for those projections.

6. Business Repositioning Plan

When a business wants to avoid acquisition, reposition its brand, or try something new, CEOs or owners will develop a business repositioning plan.

This plan will:

• Acknowledge the current state of the company.
• State a vision for the future of the company.
• Explain why the business needs to reposition itself.
• Outline a process for how the company will adjust.

Companies planning for a business reposition often do so — proactively or retroactively — due to a shift in market trends and customer needs.

For example, shoe brand AllBirds plans to refocus its brand on core customers and shift its go-to-market strategy. These decisions are a reaction to lackluster sales following product changes and other missteps.

7. Expansion or Growth Business Plan

When your business is ready to expand, a growth business plan creates a useful structure for reaching specific targets.

For example, a successful business expanding into another location can use a growth business plan. This is because it may also mean the business needs to focus on a new target market or generate more capital.

This type of plan usually covers the next year or two of growth. It often references current sales, revenue, and successes. It may also include:

• SWOT analysis.
• Growth opportunity studies.
• Financial goals and plans.
• Marketing plans.
• Capability planning.

These types of business plans will vary by business, but they can help you quickly rally around new priorities to drive growth.

Getting Started With Your Business Plan

At the end of the day, a business plan is simply an explanation of a business idea and why it will be successful. The more detail and thought you put into it, the more successful your plan — and the business it outlines — will be.

I personally recommend using the feasibility business plan template. It helps me assess the viability of my business idea before diving in head-first.

By completing a feasibility plan, I feel more confident and prepared to tackle the full business plan. Plus, it saves me time and effort in the long run by ensuring I'm pursuing an idea with real potential.

When writing your business plan, you’ll benefit from extensive research, feedback from your team or board of directors, and a solid template to organize your thoughts. If you need one of these, download HubSpot's Free Business Plan Template below to get started.

Editor's note: This post was originally published in August 2020 and has been updated for comprehensiveness.

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

By Joe Weller | October 11, 2021

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

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

What Is a Business Plan?

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

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

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

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

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

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

Business Plan Steps

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

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

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

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

Do I Need a Simple or Detailed Plan?

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

How to Choose the Right Plan for Your Business

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

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

Is the Order of Your Business Plan Important?

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

The Difference Between Traditional and Lean Business Plans

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

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

How to Write a Business Plan Step by Step

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

Step 1: Executive Summary

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

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

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

Step 2: Description of Business

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

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

Step 3: Market Analysis

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

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

Step 4: Competitive Analysis

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

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

Step 5: Description of Organizational Management

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

Step 6: Description of Products or Services

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

Questions to answer in this section are as follows:

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

Step 7: Marketing Plan

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

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

Step 8: Sales Plan

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

Start by answering the following questions:

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

Step 9: Funding Details (or Request for Funding)

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

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

Step 10: Financial Projections

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

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

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

Business Plan Template

Download Business Plan Template

Microsoft Excel | Smartsheet

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

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

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

How to Write a Simple Business Plan

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

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

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

Simple Business Plan Template

Download Simple Business Plan Template

Microsoft Excel |  Microsoft Word | Adobe PDF  | Smartsheet

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

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

How to Write a Business Plan for a Lean Startup

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

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

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

Lean Business Plan Template for Startups

Download Lean Business Plan Template for Startups

Microsoft Word | Adobe PDF

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

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

How to Write a Business Plan for a Loan

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

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

Download free financial templates to support your business plan.

Tips for Writing a Business Plan

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

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

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

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

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

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

Resources for Writing a Business Plan

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

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

How a Business Plan Helps to Grow Your Business

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

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

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What Is a Business Plan?

Understanding business plans, how to write a business plan, common elements of a business plan, 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.

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A business plan is a document that outlines a company's goals and the strategies to achieve them. It's valuable for both startups and established companies. For startups, a well-crafted business plan is crucial for attracting potential lenders and investors. Established businesses use business plans to stay on track and aligned with their growth objectives. This article will explain the key components of an effective business plan and guidance on how to write one.

Key Takeaways

• A business plan is a document detailing a company's business activities and strategies for achieving its goals.
• Startup companies use business plans to launch their venture and to attract outside investors.
• For established companies, a business plan helps keep the executive team focused on short- and long-term objectives.
• There's no single required format for a business plan, but certain key elements are essential for most companies.

Investopedia / Ryan Oakley

Any new business should have a business plan in place before beginning operations. Banks and venture capital firms often want to see a business plan before considering making a loan or providing capital to new businesses.

Even if a company doesn't need additional funding, having a business plan helps it stay focused on its goals. Research from the University of Oregon shows that businesses with a plan are significantly more likely to secure funding than those without one. Moreover, companies with a business plan grow 30% faster than those that don't plan. According to a Harvard Business Review article, entrepreneurs who write formal plans are 16% more likely to achieve viability than those who don't.

A business plan should ideally be reviewed and updated periodically to reflect achieved goals or changes in direction. An established business moving in a new direction might even create an entirely new plan.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. It allows for careful consideration of ideas before significant investment, highlights potential obstacles to success, and provides a tool for seeking objective feedback from trusted outsiders. A business plan may also help ensure that a company’s executive team remains aligned on strategic action items and priorities.

While business plans vary widely, even among competitors in the same industry, they often share basic elements detailed below.

A well-crafted business plan is essential for attracting investors and guiding a company's strategic growth. It should address market needs and investor requirements and provide clear financial projections.

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, gathering the basic information into a 15- to 25-page document is best. Any additional crucial elements, such as patent applications, can be referenced in the main document and included as appendices.

Common elements in many business plans include:

• 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 : Describe the products and services the company offers or plans to introduce. Include details on pricing, product lifespan, and unique consumer benefits. Mention production and manufacturing processes, relevant patents , proprietary technology , and research and development (R&D) information.
• Market analysis : Explain the current state of the industry and the competition. Detail where the company fits in, the types of customers it plans to target, and how it plans to capture market share from competitors.
• Marketing strategy : Outline the company's plans to attract and retain customers, including anticipated advertising and marketing campaigns. Describe the distribution channels that will be used to deliver products or services to consumers.
• Financial plans and projections : Established businesses should include financial statements, balance sheets, and other relevant financial information. New businesses should provide financial targets and estimates for the first few years. This section may also include any funding requests.

Investors want to see a clear exit strategy, expected returns, and a timeline for cashing out. It's likely a good idea to provide five-year profitability forecasts and realistic financial estimates.

2 Types of Business Plans

Business plans can vary in format, often categorized into traditional and lean startup plans. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

• Traditional business plans : These are detailed and lengthy, requiring more effort to create but offering comprehensive information that can be persuasive to potential investors.
• Lean startup business plans : These are concise, sometimes just one page, and focus on key elements. While they save time, companies should be ready to provide additional details if requested by investors or lenders.

Why Do Business Plans Fail?

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

How Often Should a Business Plan Be Updated?

How frequently a business plan needs to be revised will depend on its nature. Updating your business plan is crucial due to changes in external factors (market trends, competition, and regulations) and internal developments (like employee growth and new products). While 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 ideal for quickly explaining a business, especially for new companies that don't have much information yet. Key sections may include a value proposition , major activities and advantages, resources (staff, intellectual property, and capital), partnerships, customer segments, and revenue sources.

A well-crafted business plan is crucial for any company, whether it's a startup looking for investment or an established business wanting to stay on course. It outlines goals and strategies, boosting a company's chances of securing funding and achieving growth.

As your business and the market change, update your business plan regularly. This keeps it relevant and aligned with your current goals and conditions. Think of your business plan as a living document that evolves with your company, not something carved in stone.

University of Oregon Department of Economics. " Evaluation of the Effectiveness of Business Planning Using Palo Alto's Business Plan Pro ." Eason Ding & Tim Hursey.

Bplans. " Do You Need a Business Plan? Scientific Research Says Yes ."

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

Harvard Business Review. " How to Write a Winning Business Plan ."

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

SCORE. " When and Why Should You Review Your Business Plan? "

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How to Write a Business Plan for a Small Business

Noah Parsons

24 min. read

Updated September 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 writing a business plan

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

You understand that writing a business plan helps you: 

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

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

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

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

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

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

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• What to include in your business plan

Executive summary

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

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

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

Your executive summary should include:

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

Dig Deeper: How to write an effective executive summary

Products and services description

When writing a business plan, the produces and services section 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

When writing a business plan, 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

The last section of your business plan is your financial plan and forecasts. 

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 to write a business plan is to leverage it as a collaborator , not a replacement for human creative thinking and ingenuity. 

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

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

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

• Writing tips and strategies

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

Determine why you are writing a business plan

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

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

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

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

Keep things concise

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

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

Have someone review your business plan

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

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

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

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

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

There are plenty of great options available (we’ve rounded up our 8 favorites to streamline your search).

But, if you’re looking for a free downloadable business plan template , you can get one right now; 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

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 writing 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.

Writing 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 writing 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.

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

Table of Contents

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

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