How To Write a Business Plan
You have a business idea. You want to turn it into something real. A business plan is how you do that in a clear, organized way.
Your plan doesn’t have to be fancy or full of buzzwords. It just needs to explain what you’re doing, who it’s for, how you’ll make money, and what it takes to get there. It also gives lenders, investors, and partners a simple way to understand your business.
This guide walks you through what to include, how to write each section, and how to choose between a short “lean” plan and a detailed traditional one. You’ll also find templates and answers to common questions at the end.
Quick Overview: Business Plan at a Glance
If you’re short on time, start here. You can come back later for the details.
What your business plan should help you do:
- Clarify your idea, your goals, and how you’ll make money.
- Spot gaps and weak points before you spend serious money.
- Explain your business clearly to lenders, investors, and partners.
- Give yourself a simple roadmap you can review and update.
Key sections most plans include:
- Executive Summary
- Company Description
- Market Analysis
- Organization and Management
- Service or Product Line
- Marketing and Sales
- Funding Request
- Financial Projections
- Appendix
Fast-track version (if you need a quick plan):
- Create a one-page “lean” plan that covers your idea, market, basic numbers, and next steps.
- Use it to think things through and make changes as you learn.
- When you’re ready for a loan or investors, expand it into the full version.
Why Your Business Plan Matters
Your plan isn’t just for a bank. It’s mainly for you.
- Road map: It shows how you’ll move from idea to opening and then to growth.
- Decision filter: When new ideas show up, you can check if they fit your plan or pull you off track.
- Communication tool: It helps you explain your business to lenders, partners, and key staff.
- Reality check: It makes you look at costs, sales, and “what if things go slower than I expect?”
- Funding support: Lenders and investors usually want a clear, written plan.
If you’re still early in your thinking, it may help to step back and look at the bigger picture. For more on that, see Points to Consider Before Starting Your Business.
Choose the Type of Business Plan You Need
Not every business needs a long, formal plan on day one. The style you choose depends on what you’re trying to do.
Lean (Short) Business Plan
A lean plan is usually one page. It covers the essentials and is useful when you:
- Are just getting started and want to test your idea.
- Don’t need outside investors yet.
- Want something you can update quickly as things change.
It still explains what you sell, who you serve, how you reach customers, and your basic numbers, but in a short, simple format.
Traditional (Full) Business Plan
A traditional plan is more detailed and structured. It’s often expected when you:
- Apply for a business loan or line of credit.
- Look for investors or partners.
- Plan a larger or more complex operation.
It follows the standard sections listed earlier and includes deeper market research, full financials, and supporting documents.
You can start with a lean plan and grow it into a traditional plan as you move closer to funding or launch.
Options for Creating Your Business Plan
You don’t have to start from scratch. There are many ways to build a plan. The most important part is that you stay involved and understand what’s in it.
Write It Yourself Using This Guide
- Use this article as your roadmap and write your plan in Word, Google Docs, or similar.
- Create simple tables and charts in a spreadsheet for your numbers.
- This option takes more time but gives you the best understanding of your own plan.
Use Templates and Checklists
- Use simple templates for each section, then customize them to match your business.
- Follow the prompts but rewrite the text in your own words.
- Templates save time, but you still need to supply real details and realistic numbers.
Use Business Planning Software
- Planning software can walk you through each section with questions and examples.
- Most tools include built-in tables and charts that update as you enter numbers.
- Software is helpful, but it can also make your plan sound generic. Always review and adjust the final version so it sounds like your business, not a template.
Use AI Tools as a Helper
- AI can help you brainstorm, organize ideas, or clean up the wording.
- You can paste in bullet points and ask for clearer explanations or different versions.
- AI can’t know your exact costs, sales, or market. You must bring the facts, check the output, and make sure everything is accurate and realistic.
Hire a Professional
- You can hire a consultant, accountant, or business plan writer to help you build a polished document.
- This can be useful when financials are complex or when you need a formal plan for serious investors or lenders.
- Even if you hire someone, stay active. Provide detailed input, ask questions, and make sure you understand every section and every number.
No matter what you use—software, AI, templates, or a pro—this guide helps you understand the process. Tools can shape the plan, but you supply the decisions and the story behind the numbers.
Before You Start Writing
1. Confirm the Purpose and Audience for Your Plan
Decide who you’re writing for and what you want the plan to do. That decision will guide how much detail you include and what you focus on.
- If it’s mainly for you, you can keep it shorter and more flexible.
- If it’s for a lender, you’ll need clear financial projections and a realistic funding request.
- If it’s for investors, you’ll need to show growth potential, a capable team, and a clear return.
2. Understand the Day-to-Day Reality of the Business
Your plan will be stronger if you understand what daily life looks like in this business. Talk to people already doing similar work. Ask about their typical day, their biggest headaches, and what they wish they knew before starting.
For practical ideas on how to do this, see An Inside Look Into the Business You Want To Start.
3. Gather Key Information First
Before you start writing, collect some basics:
- Notes about your products or services.
- Information about your target customers and competitors.
- Rough estimates of startup costs and monthly expenses.
- Any sales history, if you’re already open.
Having this ready keeps you from guessing or getting stuck when you reach the financial and market sections.
What to Include in Your Business Plan
Most traditional business plans include the following sections. You can adjust them to fit your situation.
- Executive Summary
- Company Description
- Market Analysis
- Organization and Management
- Service or Product Line
- Marketing and Sales
- Funding Request
- Financial Projections
- Appendix
Next, you’ll see what each part is about, what to include, and where to find the information you need.
Full Business Plan: Section-by-Section Guide
1. Executive Summary
What this section is about: A quick overview of your whole plan. It gives a busy reader a fast, clear picture of your business.
What to include:
- What your business does and who you serve.
- The main problem you solve and how you solve it.
- Why this is a good time to start or grow this business.
- Key numbers such as revenue goals, profit potential, and when you expect to break even.
- If you need funding, how much you need and what you’ll use it for.
Where to get this information:
- Short summaries of the other sections in your plan.
- Your own goals and timeline.
- Details from your funding request and financial projections.
Lean plan note: In a one-page plan, turn this into two or three simple sentences at the top.
2. Company Description
What this section is about: Who you are, what you do, and why your business exists.
What to include:
- Your business name, location, and legal structure (sole proprietorship, LLC, corporation, etc.).
- The type of business (retail, service, manufacturing, online, or a mix).
- The problem you solve for customers.
- Your target market and the area you serve.
- Your main strengths and advantages compared to competitors.
Where to get this information:
- Your current business idea and decisions you’ve already made.
- Basic research on your industry and competitors.
- Conversations with mentors, advisors, or experienced business owners.
Lean plan note: Combine this with the executive summary in a short, clear paragraph.
3. Market Analysis
What this section is about: Your industry, your ideal customers, and your competition.
What to include:
- A short overview of your industry and key trends.
- A description of your ideal customers and what they care about.
- Rough estimates of market size or demand in your area or niche.
- A summary of your main competitors and how they work.
- Where you fit in and how you plan to stand out.
Where to get this information:
- Online research, including competitor websites and customer reviews.
- Industry reports, trade groups, and government business sites.
- Direct conversations with potential customers and people in the industry.
Lean plan note: Capture the basics: your ideal customer, a few main competitors, and your edge over them.
4. Organization and Management
What this section is about: How your business is set up and who runs what.
What to include:
- Your legal structure and why you chose it.
- Names and roles of owners and key managers.
- Short backgrounds that highlight skills and experience.
- Advisors or outside professionals such as your accountant or lawyer.
Where to get this information:
- Your own decisions about ownership and roles.
- Resumes or notes about each person’s background.
- Advice from professionals who helped you choose a structure.
Lean plan note: A short list of owners and key roles is enough for a one-page plan.
5. Service or Product Line
What this section is about: What you sell and why people will want it.
What to include:
- Simple descriptions of your main products or services.
- The main benefits for the customer, not just features.
- Your pricing approach and how it fits your market.
- Any patents, trademarks, or other intellectual property.
- New products or services you plan to add later.
Where to get this information:
- Your product notes, sketches, or service outlines.
- Supplier lists and competitor offerings.
- Feedback from potential customers during your research.
Lean plan note: Focus on your main offer, your price range, and why customers will choose you.
6. Marketing and Sales
What this section is about: How people will find you and how you’ll turn them into paying customers.
What to include:
- Your main marketing channels (website, social media, local ads, referrals, partnerships, etc.).
- How you want to be seen (for example, low cost, premium, fast, or specialized).
- Your sales process from first contact to completed sale.
- How you’ll keep customers coming back and referring others.
- The key numbers you’ll track, such as leads, conversion rate, and repeat business.
Where to get this information:
- Examples from similar businesses in your industry.
- Advice from marketing guides, mentors, or local business centers.
- Your own tests with small ads, posts, or offers.
Lean plan note: Write down your top one or two marketing methods and a simple sales path.
7. Funding Request
What this section is about: How much money you need, what it’s for, and how it will be paid back or rewarded.
What to include:
- The total amount of funding you need and for how long.
- What kind of funding you’re looking for (loan, line of credit, investment, etc.).
- A breakdown of how you’ll use the money (equipment, inventory, marketing, staffing, working capital).
- How you plan to repay a loan or give investors a return.
Where to get this information:
- Quotes from suppliers and contractors.
- Your startup budget and financial projections.
- Talks with your accountant or financial advisor.
Lean plan note: If you’re not looking for outside funding, you can skip this or briefly note how you’ll self-fund.
8. Financial Projections
What this section is about: A simple look at future sales, costs, and profit, based on your best estimates.
What to include:
- Sales forecasts for at least the first year, and usually three to five years.
- Projected income statements (profit and loss).
- Projected cash flow statements.
- Projected balance sheets.
- A basic break-even analysis.
Where to get this information:
- Your cost and pricing details.
- Realistic guesses based on market research and capacity.
- Help from an accountant or local business support center, if you need it.
Lean plan note: Use a simple monthly sales estimate, rough costs, and a rough idea of when you’ll break even.
9. Appendix
What this section is about: Extra documents that support your plan without cluttering the main sections.
What to include:
- Resumes of owners and key managers.
- Copies of licenses, permits, or certifications.
- Sample marketing materials or product photos.
- Detailed market research or technical information.
- Contracts, leases, or letters of intent.
Where to get this information:
- Documents you already have on file.
- Paperwork from government agencies, suppliers, and landlords.
- Materials you create while planning your marketing and operations.
Lean plan note: You may not need an appendix for a one-page plan, but keep these documents organized for later.
Full Business Plan Summary Checklist
Once you’ve written your detailed plan, use this checklist to see if anything is missing.
- Executive Summary: Does it give a clear, honest snapshot of the business and what you’re asking for?
- Company Description: Can a new reader quickly understand what you do and who you serve?
- Market Analysis: Have you shown that there’s demand and that you know your competition?
- Organization and Management: Is it clear who is responsible for what and why they’re qualified?
- Service or Product Line: Is it obvious why customers would want what you’re selling?
- Marketing and Sales: Do you explain how people will find you and how you’ll turn interest into sales?
- Funding Request: If you need money, have you clearly explained how much, why, and how it will be repaid?
- Financial Projections: Are your numbers realistic and consistent with the rest of the plan?
- Appendix: Have you included only documents that add value?
Short Business Plan Template (One-Page Lean Plan)
Use this when you want a quick, working plan you can build on later. You can pull the details from the full guide above.
- Business Name and Summary: One or two sentences that explain what you do and for whom.
- Problem and Solution: The main problem your customer faces and how your product or service solves it.
- Target Market: The specific groups of customers you plan to serve.
- Offer and Pricing: What you sell and how you price it.
- Marketing and Sales: The main ways you’ll reach customers and close sales.
- Basic Numbers: Rough estimates of monthly sales, main costs, and expected profit.
- Key Milestones: A short list of your next important steps and target dates.
How to Use Your Plan After You Write It
A business plan works best when you keep it alive. It’s not meant to sit in a drawer.
- Review it regularly, at least once or twice a year.
- Update your numbers when real results come in.
- Change your strategies when you learn what works and what doesn’t.
- Add new goals and milestones as your business grows.
The goal isn’t a perfect plan. The goal is a clear, honest tool that helps you make better choices.
Business Plan FAQs
Do I really need a written business plan?
You can start very small without a formal plan, but writing one helps you think clearly and avoid surprises. If you want a loan or investors, a written plan is usually required.
How long should my business plan be?
There’s no strict rule. Many full plans end up around 15–25 pages plus an appendix. A one-page plan is fine for early stages. Focus on clarity, not page count.
How often should I update my plan?
Update it when something important changes, like your pricing, main products, or market. At a minimum, review it once a year and compare it to your actual results.
Should I write the plan myself or hire someone?
You can hire help, but stay involved. No one knows your business better than you. If you use a consultant, software, or AI, treat them as tools to organize and polish your thinking—not as a replacement for it.
Do I need different versions of my plan?
Sometimes. You might keep a detailed version for yourself and a shorter version for lenders, investors, or partners. The core story stays the same, but you highlight what each audience cares about most.
Sources
- U.S. Small Business Administration – Write Your Business Plan
- U.S. Small Business Administration – Plan Your Business
- SBDCNet – Business Plan Overview
- Shopify – Business Plan Examples & Templates