how long does it take to write a small business plan

How To Write A Business Plan (2024 Guide)

Updated: Apr 17, 2024, 11:59am

Table of Contents

Brainstorm an executive summary, create a company description, brainstorm your business goals, describe your services or products, conduct market research, create financial plans, bottom line, frequently asked questions.

Every business starts with a vision, which is distilled and communicated through a business plan. In addition to your high-level hopes and dreams, a strong business plan outlines short-term and long-term goals, budget and whatever else you might need to get started. In this guide, we’ll walk you through how to write a business plan that you can stick to and help guide your operations as you get started.

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Drafting the Summary

An executive summary is an extremely important first step in your business. You have to be able to put the basic facts of your business in an elevator pitch-style sentence to grab investors’ attention and keep their interest. This should communicate your business’s name, what the products or services you’re selling are and what marketplace you’re entering.

Ask for Help

When drafting the executive summary, you should have a few different options. Enlist a few thought partners to review your executive summary possibilities to determine which one is best.

After you have the executive summary in place, you can work on the company description, which contains more specific information. In the description, you’ll need to include your business’s registered name , your business address and any key employees involved in the business. 

The business description should also include the structure of your business, such as sole proprietorship , limited liability company (LLC) , partnership or corporation. This is the time to specify how much of an ownership stake everyone has in the company. Finally, include a section that outlines the history of the company and how it has evolved over time.

Wherever you are on the business journey, you return to your goals and assess where you are in meeting your in-progress targets and setting new goals to work toward.

Numbers-based Goals

Goals can cover a variety of sections of your business. Financial and profit goals are a given for when you’re establishing your business, but there are other goals to take into account as well with regard to brand awareness and growth. For example, you might want to hit a certain number of followers across social channels or raise your engagement rates.

Another goal could be to attract new investors or find grants if you’re a nonprofit business. If you’re looking to grow, you’ll want to set revenue targets to make that happen as well.

Intangible Goals

Goals unrelated to traceable numbers are important as well. These can include seeing your business’s advertisement reach the general public or receiving a terrific client review. These goals are important for the direction you take your business and the direction you want it to go in the future.

The business plan should have a section that explains the services or products that you’re offering. This is the part where you can also describe how they fit in the current market or are providing something necessary or entirely new. If you have any patents or trademarks, this is where you can include those too.

If you have any visual aids, they should be included here as well. This would also be a good place to include pricing strategy and explain your materials.

This is the part of the business plan where you can explain your expertise and different approach in greater depth. Show how what you’re offering is vital to the market and fills an important gap.

You can also situate your business in your industry and compare it to other ones and how you have a competitive advantage in the marketplace.

Other than financial goals, you want to have a budget and set your planned weekly, monthly and annual spending. There are several different costs to consider, such as operational costs.

Business Operations Costs

Rent for your business is the first big cost to factor into your budget. If your business is remote, the cost that replaces rent will be the software that maintains your virtual operations.

Marketing and sales costs should be next on your list. Devoting money to making sure people know about your business is as important as making sure it functions.

Other Costs

Although you can’t anticipate disasters, there are likely to be unanticipated costs that come up at some point in your business’s existence. It’s important to factor these possible costs into your financial plans so you’re not caught totally unaware.

Business plans are important for businesses of all sizes so that you can define where your business is and where you want it to go. Growing your business requires a vision, and giving yourself a roadmap in the form of a business plan will set you up for success.

How do I write a simple business plan?

When you’re working on a business plan, make sure you have as much information as possible so that you can simplify it to the most relevant information. A simple business plan still needs all of the parts included in this article, but you can be very clear and direct.

What are some common mistakes in a business plan?

The most common mistakes in a business plan are common writing issues like grammar errors or misspellings. It’s important to be clear in your sentence structure and proofread your business plan before sending it to any investors or partners.

What basic items should be included in a business plan?

When writing out a business plan, you want to make sure that you cover everything related to your concept for the business,  an analysis of the industry―including potential customers and an overview of the market for your goods or services―how you plan to execute your vision for the business, how you plan to grow the business if it becomes successful and all financial data around the business, including current cash on hand, potential investors and budget plans for the next few years.

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Julia is a writer in New York and started covering tech and business during the pandemic. She also covers books and the publishing industry.

Small Business Trends

How to create a business plan: examples & free template.

Whether you’re a seasoned entrepreneur or launching your very first startup, the guide will give you the insights, tools, and confidence you need to create a solid foundation for your business.

Table of Contents

How to Write a Business Plan

Executive summary.

It’s crucial to include a clear mission statement, a brief description of your primary products or services, an overview of your target market, and key financial projections or achievements.

Our target market includes environmentally conscious consumers and businesses seeking to reduce their carbon footprint. We project a 200% increase in revenue within the first three years of operation.

Overview and Business Objectives

Example: EcoTech’s primary objective is to become a market leader in sustainable technology products within the next five years. Our key objectives include:

Company Description

Example: EcoTech is committed to developing cutting-edge sustainable technology products that benefit both the environment and our customers. Our unique combination of innovative solutions and eco-friendly design sets us apart from the competition. We envision a future where technology and sustainability go hand in hand, leading to a greener planet.

Define Your Target Market

Market analysis.

The Market Analysis section requires thorough research and a keen understanding of the industry. It involves examining the current trends within your industry, understanding the needs and preferences of your customers, and analyzing the strengths and weaknesses of your competitors.

Our research indicates a gap in the market for high-quality, innovative eco-friendly technology products that cater to both individual and business clients.

SWOT Analysis

Including a SWOT analysis demonstrates to stakeholders that you have a balanced and realistic understanding of your business in its operational context.

Competitive Analysis

Organization and management team.

Provide an overview of your company’s organizational structure, including key roles and responsibilities. Introduce your management team, highlighting their expertise and experience to demonstrate that your team is capable of executing the business plan successfully.

Products and Services Offered

This section should emphasize the value you provide to customers, demonstrating that your business has a deep understanding of customer needs and is well-positioned to deliver innovative solutions that address those needs and set your company apart from competitors.

Marketing and Sales Strategy

Discuss how these marketing and sales efforts will work together to attract and retain customers, generate leads, and ultimately contribute to achieving your business’s revenue goals.

Logistics and Operations Plan

Inventory control is another crucial aspect, where you explain strategies for inventory management to ensure efficiency and reduce wastage. The section should also describe your production processes, emphasizing scalability and adaptability to meet changing market demands.

We also prioritize efficient distribution through various channels, including online platforms and retail partners, to deliver products to our customers in a timely manner.

Financial Projections Plan

This forward-looking financial plan is crucial for demonstrating that you have a firm grasp of the financial nuances of your business and are prepared to manage its financial health effectively.

Income Statement

Cash flow statement.

A cash flow statement is a crucial part of a financial business plan that shows the inflows and outflows of cash within your business. It helps you monitor your company’s liquidity, ensuring you have enough cash on hand to cover operating expenses, pay debts, and invest in growth opportunities.

Tips on Writing a Business Plan

4. Focus on your unique selling proposition (USP): Clearly articulate what sets your business apart from the competition. Emphasize your USP throughout your business plan to showcase your company’s value and potential for success.

FREE Business Plan Template

To help you get started on your business plan, we have created a template that includes all the essential components discussed in the “How to Write a Business Plan” section. This easy-to-use template will guide you through each step of the process, ensuring you don’t miss any critical details.

What is a Business Plan?

Why you should write a business plan.

Understanding the importance of a business plan in today’s competitive environment is crucial for entrepreneurs and business owners. Here are five compelling reasons to write a business plan:

What are the Different Types of Business Plans?

Using Business Plan Software

Upmetrics provides a simple and intuitive platform for creating a well-structured business plan. It features customizable templates, financial forecasting tools, and collaboration capabilities, allowing you to work with team members and advisors. Upmetrics also offers a library of resources to guide you through the business planning process.

Business Plan FAQs

What is a good business plan.

A good business plan is a well-researched, clear, and concise document that outlines a company’s goals, strategies, target market, competitive advantages, and financial projections. It should be adaptable to change and provide a roadmap for achieving success.

What are the 3 main purposes of a business plan?

Can i write a business plan by myself, is it possible to create a one-page business plan.

Yes, a one-page business plan is a condensed version that highlights the most essential elements, including the company’s mission, target market, unique selling proposition, and financial goals.

How long should a business plan be?

What is a business plan outline, what are the 5 most common business plan mistakes, what questions should be asked in a business plan.

A business plan should address questions such as: What problem does the business solve? Who is the specific target market ? What is the unique selling proposition? What are the company’s objectives? How will it achieve those objectives?

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

How is business planning for a nonprofit different.

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How to Write a Business Plan in 9 Steps (+ Template and Examples)

Every successful business has one thing in common, a good and well-executed business plan. A business plan is more than a document, it is a complete guide that outlines the goals your business wants to achieve, including its financial goals . It helps you analyze results, make strategic decisions, show your business operations and growth.

If you want to start a business or already have one and need to pitch it to investors for funding, writing a good business plan improves your chances of attracting financiers. As a startup, if you want to secure loans from financial institutions, part of the requirements involve submitting your business plan.

Writing a business plan does not have to be a complicated or time-consuming process. In this article, you will learn the step-by-step process for writing a successful business plan.

You will also learn what you need a business plan for, tips and strategies for writing a convincing business plan, business plan examples and templates that will save you tons of time, and the alternatives to the traditional business plan.

Let’s get started.

What Do You Need A Business Plan For?

Businesses create business plans for different purposes such as to secure funds, monitor business growth, measure your marketing strategies, and measure your business success.

1. Secure Funds

One of the primary reasons for writing a business plan is to secure funds, either from financial institutions/agencies or investors.

For you to effectively acquire funds, your business plan must contain the key elements of your business plan . For example, your business plan should include your growth plans, goals you want to achieve, and milestones you have recorded.

A business plan can also attract new business partners that are willing to contribute financially and intellectually. If you are writing a business plan to a bank, your project must show your traction , that is, the proof that you can pay back any loan borrowed.

Also, if you are writing to an investor, your plan must contain evidence that you can effectively utilize the funds you want them to invest in your business. Here, you are using your business plan to persuade a group or an individual that your business is a source of a good investment.

2. Monitor Business Growth

A business plan can help you track cash flows in your business. It steers your business to greater heights. A business plan capable of tracking business growth should contain:

• The business goals
• Methods to achieve the goals
• Time-frame for attaining those goals

A good business plan should guide you through every step in achieving your goals. It can also track the allocation of assets to every aspect of the business. You can tell when you are spending more than you should on a project.

You can compare a business plan to a written GPS. It helps you manage your business and hints at the right time to expand your business.

3. Measure Business Success

A business plan can help you measure your business success rate. Some small-scale businesses are thriving better than more prominent companies because of their track record of success.

Right from the onset of your business operation, set goals and work towards them. Write a plan to guide you through your procedures. Use your plan to measure how much you have achieved and how much is left to attain.

You can also weigh your success by monitoring the position of your brand relative to competitors. On the other hand, a business plan can also show you why you have not achieved a goal. It can tell if you have elapsed the time frame you set to attain a goal.

4. Document Your Marketing Strategies

You can use a business plan to document your marketing plans. Every business should have an effective marketing plan.

Competition mandates every business owner to go the extraordinary mile to remain relevant in the market. Your business plan should contain your marketing strategies that work. You can measure the success rate of your marketing plans.

In your business plan, your marketing strategy must answer the questions:

• How do you want to reach your target audience?
• How do you plan to retain your customers?
• What is/are your pricing plans?
• What is your budget for marketing?

How to Write a Business Plan Step-by-Step

1. create your executive summary.

The executive summary is a snapshot of your business or a high-level overview of your business purposes and plans . Although the executive summary is the first section in your business plan, most people write it last. The length of the executive summary is not more than two pages.

Generally, there are nine sections in a business plan, the executive summary should condense essential ideas from the other eight sections.

A good executive summary should do the following:

• A Snapshot of Growth Potential. Briefly inform the reader about your company and why it will be successful)
• Contain your Mission Statement which explains what the main objective or focus of your business is.
• Product Description and Differentiation. Brief description of your products or services and why it is different from other solutions in the market.
• The Team. Basic information about your company’s leadership team and employees
• Business Concept. A solid description of what your business does.
• Target Market. The customers you plan to sell to.
• Marketing Strategy. Your plans on reaching and selling to your customers
• Current Financial State. Brief information about what revenue your business currently generates.
• Projected Financial State. Brief information about what you foresee your business revenue to be in the future.

The executive summary is the make-or-break section of your business plan. If your summary cannot in less than two pages cannot clearly describe how your business will solve a particular problem of your target audience and make a profit, your business plan is set on a faulty foundation.

Avoid using the executive summary to hype your business, instead, focus on helping the reader understand the what and how of your plan.

View the executive summary as an opportunity to introduce your vision for your company. You know your executive summary is powerful when it can answer these key questions:

• Who is your target audience?
• What sector or industry are you in?
• What are your products and services?
• What is the future of your industry?
• Is your company scaleable?
• Who are the owners and leaders of your company? What are their backgrounds and experience levels?
• What is the motivation for starting your company?
• What are the next steps?

Writing the executive summary last although it is the most important section of your business plan is an excellent idea. The reason why is because it is a high-level overview of your business plan. It is the section that determines whether potential investors and lenders will read further or not.

The executive summary can be a stand-alone document that covers everything in your business plan. It is not uncommon for investors to request only the executive summary when evaluating your business. If the information in the executive summary impresses them, they will ask for the complete business plan.

If you are writing your business plan for your planning purposes, you do not need to write the executive summary.

2. Add Your Company Overview

The company overview or description is the next section in your business plan after the executive summary. It describes what your business does.

Adding your company overview can be tricky especially when your business is still in the planning stages. Existing businesses can easily summarize their current operations but may encounter difficulties trying to explain what they plan to become.

Your company overview should contain the following:

• What products and services you will provide
• Geographical markets and locations your company have a presence
• What you need to run your business
• Who your target audience or customers are
• Who will service your customers
• Your company’s purpose, mission, and vision
• Information about your company’s founders
• Who the founders are
• Notable achievements of your company so far

When creating a company overview, you have to focus on three basics: identifying your industry, identifying your customer, and explaining the problem you solve.

If you are stuck when creating your company overview, try to answer some of these questions that pertain to you.

• Who are you targeting? (The answer is not everyone)
• What pain point does your product or service solve for your customers that they will be willing to spend money on resolving?
• How does your product or service overcome that pain point?
• Where is the location of your business?
• What products, equipment, and services do you need to run your business?
• How is your company’s product or service different from your competition in the eyes of your customers?
• How many employees do you need and what skills do you require them to have?

After answering some or all of these questions, you will get more than enough information you need to write your company overview or description section. When writing this section, describe what your company does for your customers.

The company description or overview section contains three elements: mission statement, history, and objectives.

• Mission Statement

The mission statement refers to the reason why your business or company is existing. It goes beyond what you do or sell, it is about the ‘why’. A good mission statement should be emotional and inspirational.

Your mission statement should follow the KISS rule (Keep It Simple, Stupid). For example, Shopify’s mission statement is “Make commerce better for everyone.”

When describing your company’s history, make it simple and avoid the temptation of tying it to a defensive narrative. Write it in the manner you would a profile. Your company’s history should include the following information:

• Founding Date
• Major Milestones
• Location(s)
• Flagship Products or Services
• Number of Employees
• Executive Leadership Roles

When you fill in this information, you use it to write one or two paragraphs about your company’s history.

Business Objectives

Your business objective must be SMART (specific, measurable, achievable, realistic, and time-bound.) Failure to clearly identify your business objectives does not inspire confidence and makes it hard for your team members to work towards a common purpose.

3. Perform Market and Competitive Analyses to Proof a Big Enough Business Opportunity

The third step in writing a business plan is the market and competitive analysis section. Every business, no matter the size, needs to perform comprehensive market and competitive analyses before it enters into a market.

Performing market and competitive analyses are critical for the success of your business. It helps you avoid entering the right market with the wrong product, or vice versa. Anyone reading your business plans, especially financiers and financial institutions will want to see proof that there is a big enough business opportunity you are targeting.

This section is where you describe the market and industry you want to operate in and show the big opportunities in the market that your business can leverage to make a profit. If you noticed any unique trends when doing your research, show them in this section.

Market analysis alone is not enough, you have to add competitive analysis to strengthen this section. There are already businesses in the industry or market, how do you plan to take a share of the market from them?

You have to clearly illustrate the competitive landscape in your business plan. Are there areas your competitors are doing well? Are there areas where they are not doing so well? Show it.

Make it clear in this section why you are moving into the industry and what weaknesses are present there that you plan to explain. How are your competitors going to react to your market entry? How do you plan to get customers? Do you plan on taking your competitors' competitors, tap into other sources for customers, or both?

Illustrate the competitive landscape as well. What are your competitors doing well and not so well?

Answering these questions and thoughts will aid your market and competitive analysis of the opportunities in your space. Depending on how sophisticated your industry is, or the expectations of your financiers, you may need to carry out a more comprehensive market and competitive analysis to prove that big business opportunity.

Instead of looking at the market and competitive analyses as one entity, separating them will make the research even more comprehensive.

Market Analysis

Market analysis, boarding speaking, refers to research a business carried out on its industry, market, and competitors. It helps businesses gain a good understanding of their target market and the outlook of their industry. Before starting a company, it is vital to carry out market research to find out if the market is viable.

The market analysis section is a key part of the business plan. It is the section where you identify who your best clients or customers are. You cannot omit this section, without it your business plan is incomplete.

A good market analysis will tell your readers how you fit into the existing market and what makes you stand out. This section requires in-depth research, it will probably be the most time-consuming part of the business plan to write.

• Market Research

To create a compelling market analysis that will win over investors and financial institutions, you have to carry out thorough market research . Your market research should be targeted at your primary target market for your products or services. Here is what you want to find out about your target market.

• Your target market’s needs or pain points
• The existing solutions for their pain points
• Geographic Location
• Demographics

The purpose of carrying out a marketing analysis is to get all the information you need to show that you have a solid and thorough understanding of your target audience.

Only after you have fully understood the people you plan to sell your products or services to, can you evaluate correctly if your target market will be interested in your products or services.

You can easily convince interested parties to invest in your business if you can show them you thoroughly understand the market and show them that there is a market for your products or services.

How to Quantify Your Target Market

One of the goals of your marketing research is to understand who your ideal customers are and their purchasing power. To quantify your target market, you have to determine the following:

• Your Potential Customers: They are the people you plan to target. For example, if you sell accounting software for small businesses , then anyone who runs an enterprise or large business is unlikely to be your customers. Also, individuals who do not have a business will most likely not be interested in your product.
• Total Households: If you are selling household products such as heating and air conditioning systems, determining the number of total households is more important than finding out the total population in the area you want to sell to. The logic is simple, people buy the product but it is the household that uses it.
• Median Income: You need to know the median income of your target market. If you target a market that cannot afford to buy your products and services, your business will not last long.
• Income by Demographics: If your potential customers belong to a certain age group or gender, determining income levels by demographics is necessary. For example, if you sell men's clothes, your target audience is men.

What Does a Good Market Analysis Entail?

Your business does not exist on its own, it can only flourish within an industry and alongside competitors. Market analysis takes into consideration your industry, target market, and competitors. Understanding these three entities will drastically improve your company’s chances of success.

You can view your market analysis as an examination of the market you want to break into and an education on the emerging trends and themes in that market. Good market analyses include the following:

• Industry Description. You find out about the history of your industry, the current and future market size, and who the largest players/companies are in your industry.
• Overview of Target Market. You research your target market and its characteristics. Who are you targeting? Note, it cannot be everyone, it has to be a specific group. You also have to find out all information possible about your customers that can help you understand how and why they make buying decisions.
• Size of Target Market: You need to know the size of your target market, how frequently they buy, and the expected quantity they buy so you do not risk overproducing and having lots of bad inventory. Researching the size of your target market will help you determine if it is big enough for sustained business or not.
• Growth Potential: Before picking a target market, you want to be sure there are lots of potential for future growth. You want to avoid going for an industry that is declining slowly or rapidly with almost zero growth potential.
• Market Share Potential: Does your business stand a good chance of taking a good share of the market?
• Market Pricing and Promotional Strategies: Your market analysis should give you an idea of the price point you can expect to charge for your products and services. Researching your target market will also give you ideas of pricing strategies you can implement to break into the market or to enjoy maximum profits.
• Potential Barriers to Entry: One of the biggest benefits of conducting market analysis is that it shows you every potential barrier to entry your business will likely encounter. It is a good idea to discuss potential barriers to entry such as changing technology. It informs readers of your business plan that you understand the market.
• Research on Competitors: You need to know the strengths and weaknesses of your competitors and how you can exploit them for the benefit of your business. Find patterns and trends among your competitors that make them successful, discover what works and what doesn’t, and see what you can do better.

The market analysis section is not just for talking about your target market, industry, and competitors. You also have to explain how your company can fill the hole you have identified in the market.

Here are some questions you can answer that can help you position your product or service in a positive light to your readers.

• Is your product or service of superior quality?
• What additional features do you offer that your competitors do not offer?
• Are you targeting a ‘new’ market?

Basically, your market analysis should include an analysis of what already exists in the market and an explanation of how your company fits into the market.

Competitive Analysis

In the competitive analysis section, y ou have to understand who your direct and indirect competitions are, and how successful they are in the marketplace. It is the section where you assess the strengths and weaknesses of your competitors, the advantage(s) they possess in the market and show the unique features or qualities that make you different from your competitors.

Many businesses do market analysis and competitive analysis together. However, to fully understand what the competitive analysis entails, it is essential to separate it from the market analysis.

Competitive analysis for your business can also include analysis on how to overcome barriers to entry in your target market.

The primary goal of conducting a competitive analysis is to distinguish your business from your competitors. A strong competitive analysis is essential if you want to convince potential funding sources to invest in your business. You have to show potential investors and lenders that your business has what it takes to compete in the marketplace successfully.

Competitive analysis will s how you what the strengths of your competition are and what they are doing to maintain that advantage.

When doing your competitive research, you first have to identify your competitor and then get all the information you can about them. The idea of spending time to identify your competitor and learn everything about them may seem daunting but it is well worth it.

Find answers to the following questions after you have identified who your competitors are.

• What are your successful competitors doing?
• Why is what they are doing working?
• Can your business do it better?
• What are the weaknesses of your successful competitors?
• What are they not doing well?
• Can your business turn its weaknesses into strengths?
• How good is your competitors’ customer service?
• Where do your competitors invest in advertising?
• What sales and pricing strategies are they using?
• What marketing strategies are they using?
• What kind of press coverage do they get?
• What are their customers saying about your competitors (both the positive and negative)?

If your competitors have a website, it is a good idea to visit their websites for more competitors’ research. Check their “About Us” page for more information.

If you are presenting your business plan to investors, you need to clearly distinguish yourself from your competitors. Investors can easily tell when you have not properly researched your competitors.

Take time to think about what unique qualities or features set you apart from your competitors. If you do not have any direct competition offering your product to the market, it does not mean you leave out the competitor analysis section blank. Instead research on other companies that are providing a similar product, or whose product is solving the problem your product solves.

The next step is to create a table listing the top competitors you want to include in your business plan. Ensure you list your business as the last and on the right. What you just created is known as the competitor analysis table.

Direct vs Indirect Competition

You cannot know if your product or service will be a fit for your target market if you have not understood your business and the competitive landscape.

There is no market you want to target where you will not encounter competition, even if your product is innovative. Including competitive analysis in your business plan is essential.

If you are entering an established market, you need to explain how you plan to differentiate your products from the available options in the market. Also, include a list of few companies that you view as your direct competitors The competition you face in an established market is your direct competition.

In situations where you are entering a market with no direct competition, it does not mean there is no competition there. Consider your indirect competition that offers substitutes for the products or services you offer.

For example, if you sell an innovative SaaS product, let us say a project management software , a company offering time management software is your indirect competition.

There is an easy way to find out who your indirect competitors are in the absence of no direct competitors. You simply have to research how your potential customers are solving the problems that your product or service seeks to solve. That is your direct competition.

Factors that Differentiate Your Business from the Competition

There are three main factors that any business can use to differentiate itself from its competition. They are cost leadership, product differentiation, and market segmentation.

1. Cost Leadership

A strategy you can impose to maximize your profits and gain an edge over your competitors. It involves offering lower prices than what the majority of your competitors are offering.

A common practice among businesses looking to enter into a market where there are dominant players is to use free trials or pricing to attract as many customers as possible to their offer.

2. Product Differentiation

Your product or service should have a unique selling proposition (USP) that your competitors do not have or do not stress in their marketing.

Part of the marketing strategy should involve making your products unique and different from your competitors. It does not have to be different from your competitors, it can be the addition to a feature or benefit that your competitors do not currently have.

3. Market Segmentation

As a new business seeking to break into an industry, you will gain more success from focusing on a specific niche or target market, and not the whole industry.

If your competitors are focused on a general need or target market, you can differentiate yourself from them by having a small and hyper-targeted audience. For example, if your competitors are selling men’s clothes in their online stores , you can sell hoodies for men.

4. Define Your Business and Management Structure

The next step in your business plan is your business and management structure. It is the section where you describe the legal structure of your business and the team running it.

Your business is only as good as the management team that runs it, while the management team can only strive when there is a proper business and management structure in place.

If your company is a sole proprietor or a limited liability company (LLC), a general or limited partnership, or a C or an S corporation, state it clearly in this section.

Use an organizational chart to show the management structure in your business. Clearly show who is in charge of what area in your company. It is where you show how each key manager or team leader’s unique experience can contribute immensely to the success of your company. You can also opt to add the resumes and CVs of the key players in your company.

The business and management structure section should show who the owner is, and other owners of the businesses (if the business has other owners). For businesses or companies with multiple owners, include the percent ownership of the various owners and clearly show the extent of each others’ involvement in the company.

Investors want to know who is behind the company and the team running it to determine if it has the right management to achieve its set goals.

Management Team

The management team section is where you show that you have the right team in place to successfully execute the business operations and ideas. Take time to create the management structure for your business. Think about all the important roles and responsibilities that you need managers for to grow your business.

Include brief bios of each key team member and ensure you highlight only the relevant information that is needed. If your team members have background industry experience or have held top positions for other companies and achieved success while filling that role, highlight it in this section.

A common mistake that many startups make is assigning C-level titles such as (CMO and CEO) to everyone on their team. It is unrealistic for a small business to have those titles. While it may look good on paper for the ego of your team members, it can prevent investors from investing in your business.

Instead of building an unrealistic management structure that does not fit your business reality, it is best to allow business titles to grow as the business grows. Starting everyone at the top leaves no room for future change or growth, which is bad for productivity.

Your management team does not have to be complete before you start writing your business plan. You can have a complete business plan even when there are managerial positions that are empty and need filling.

If you have management gaps in your team, simply show the gaps and indicate you are searching for the right candidates for the role(s). Investors do not expect you to have a full management team when you are just starting your business.

Key Questions to Answer When Structuring Your Management Team

• Who are the key leaders?
• What experiences, skills, and educational backgrounds do you expect your key leaders to have?
• Do your key leaders have industry experience?
• What positions will they fill and what duties will they perform in those positions?
• What level of authority do the key leaders have and what are their responsibilities?
• What is the salary for the various management positions that will attract the ideal candidates?

Additional Tips for Writing the Management Structure Section

1. Avoid Adding ‘Ghost’ Names to Your Management Team

There is always that temptation to include a ‘ghost’ name to your management team to attract and influence investors to invest in your business. Although the presence of these celebrity management team members may attract the attention of investors, it can cause your business to lose any credibility if you get found out.

Seasoned investors will investigate further the members of your management team before committing fully to your business If they find out that the celebrity name used does not play any actual role in your business, they will not invest and may write you off as dishonest.

2. Focus on Credentials But Pay Extra Attention to the Roles

Investors want to know the experience that your key team members have to determine if they can successfully reach the company’s growth and financial goals.

While it is an excellent boost for your key management team to have the right credentials, you also want to pay extra attention to the roles they will play in your company.

Organizational Chart

Adding an organizational chart in this section of your business plan is not necessary, you can do it in your business plan’s appendix.

If you are exploring funding options, it is not uncommon to get asked for your organizational chart. The function of an organizational chart goes beyond raising money, you can also use it as a useful planning tool for your business.

An organizational chart can help you identify how best to structure your management team for maximum productivity and point you towards key roles you need to fill in the future.

You can use the organizational chart to show your company’s internal management structure such as the roles and responsibilities of your management team, and relationships that exist between them.

5. Describe Your Product and Service Offering

In your business plan, you have to describe what you sell or the service you plan to offer. It is the next step after defining your business and management structure. The products and services section is where you sell the benefits of your business.

Here you have to explain how your product or service will benefit your customers and describe your product lifecycle. It is also the section where you write down your plans for intellectual property like patent filings and copyrighting.

The research and development that you are undertaking for your product or service need to be explained in detail in this section. However, do not get too technical, sell the general idea and its benefits.

If you have any diagrams or intricate designs of your product or service, do not include them in the products and services section. Instead, leave them for the addendum page. Also, if you are leaving out diagrams or designs for the addendum, ensure you add this phrase “For more detail, visit the addendum Page #.”

Your product and service section in your business plan should include the following:

• A detailed explanation that clearly shows how your product or service works.
• The pricing model for your product or service.
• Your business’ sales and distribution strategy.
• The ideal customers that want your product or service.
• The benefits of your products and services.
• Reason(s) why your product or service is a better alternative to what your competitors are currently offering in the market.
• Plans for filling the orders you receive
• If you have current or pending patents, copyrights, and trademarks for your product or service, you can also discuss them in this section.

What to Focus On When Describing the Benefits, Lifecycle, and Production Process of Your Products or Services

In the products and services section, you have to distill the benefits, lifecycle, and production process of your products and services.

When describing the benefits of your products or services, here are some key factors to focus on.

• Unique features
• Translating the unique features into benefits
• The emotional, psychological, and practical payoffs to attract customers
• Intellectual property rights or any patents

When describing the product life cycle of your products or services, here are some key factors to focus on.

• Upsells, cross-sells, and down-sells
• Time between purchases
• Plans for research and development.

When describing the production process for your products or services, you need to think about the following:

• The creation of new or existing products and services.
• The sources for the raw materials or components you need for production.
• Assembling the products
• Maintaining quality control
• Supply-chain logistics (receiving the raw materials and delivering the finished products)
• The day-to-day management of the production processes, bookkeeping, and inventory.

Tips for Writing the Products or Services Section of Your Business Plan

1. Avoid Technical Descriptions and Industry Buzzwords

The products and services section of your business plan should clearly describe the products and services that your company provides. However, it is not a section to include technical jargons that anyone outside your industry will not understand.

A good practice is to remove highly detailed or technical descriptions in favor of simple terms. Industry buzzwords are not necessary, if there are simpler terms you can use, then use them. If you plan to use your business plan to source funds, making the product or service section so technical will do you no favors.

2. Describe How Your Products or Services Differ from Your Competitors

When potential investors look at your business plan, they want to know how the products and services you are offering differ from that of your competition. Differentiating your products or services from your competition in a way that makes your solution more attractive is critical.

If you are going the innovative path and there is no market currently for your product or service, you need to describe in this section why the market needs your product or service.

For example, overnight delivery was a niche business that only a few companies were participating in. Federal Express (FedEx) had to show in its business plan that there was a large opportunity for that service and they justified why the market needed that service.

3. Long or Short Products or Services Section

Should your products or services section be short? Does the long products or services section attract more investors?

There are no straightforward answers to these questions. Whether your products or services section should be long or relatively short depends on the nature of your business.

If your business is product-focused, then automatically you need to use more space to describe the details of your products. However, if the product your business sells is a commodity item that relies on competitive pricing or other pricing strategies, you do not have to use up so much space to provide significant details about the product.

Likewise, if you are selling a commodity that is available in numerous outlets, then you do not have to spend time on writing a long products or services section.

The key to the success of your business is most likely the effectiveness of your marketing strategies compared to your competitors. Use more space to address that section.

If you are creating a new product or service that the market does not know about, your products or services section can be lengthy. The reason why is because you need to explain everything about the product or service such as the nature of the product, its use case, and values.

A short products or services section for an innovative product or service will not give the readers enough information to properly evaluate your business.

4. Describe Your Relationships with Vendors or Suppliers

Your business will rely on vendors or suppliers to supply raw materials or the components needed to make your products. In your products and services section, describe your relationships with your vendors and suppliers fully.

Avoid the mistake of relying on only one supplier or vendor. If that supplier or vendor fails to supply or goes out of business, you can easily face supply problems and struggle to meet your demands. Plan to set up multiple vendor or supplier relationships for better business stability.

5. Your Primary Goal Is to Convince Your Readers

The primary goal of your business plan is to convince your readers that your business is viable and to create a guide for your business to follow. It applies to the products and services section.

When drafting this section, think like the reader. See your reader as someone who has no idea about your products and services. You are using the products and services section to provide the needed information to help your reader understand your products and services. As a result, you have to be clear and to the point.

While you want to educate your readers about your products or services, you also do not want to bore them with lots of technical details. Show your products and services and not your fancy choice of words.

Your products and services section should provide the answer to the “what” question for your business. You and your management team may run the business, but it is your products and services that are the lifeblood of the business.

Key Questions to Answer When Writing your Products and Services Section

Answering these questions can help you write your products and services section quickly and in a way that will appeal to your readers.

• Are your products existing on the market or are they still in the development stage?
• What is your timeline for adding new products and services to the market?
• What are the positives that make your products and services different from your competitors?
• Do your products and services have any competitive advantage that your competitors’ products and services do not currently have?
• Do your products or services have any competitive disadvantages that you need to overcome to compete with your competitors? If your answer is yes, state how you plan to overcome them,
• How much does it cost to produce your products or services? How much do you plan to sell it for?
• What is the price for your products and services compared to your competitors? Is pricing an issue?
• What are your operating costs and will it be low enough for you to compete with your competitors and still take home a reasonable profit margin?
• What is your plan for acquiring your products? Are you involved in the production of your products or services?
• Are you the manufacturer and produce all the components you need to create your products? Do you assemble your products by using components supplied by other manufacturers? Do you purchase your products directly from suppliers or wholesalers?
• Do you have a steady supply of products that you need to start your business? (If your business is yet to kick-off)
• How do you plan to distribute your products or services to the market?

You can also hint at the marketing or promotion plans you have for your products or services such as how you plan to build awareness or retain customers. The next section is where you can go fully into details about your business’s marketing and sales plan.

6. Show and Explain Your Marketing and Sales Plan

Providing great products and services is wonderful, but it means nothing if you do not have a marketing and sales plan to inform your customers about them. Your marketing and sales plan is critical to the success of your business.

The sales and marketing section is where you show and offer a detailed explanation of your marketing and sales plan and how you plan to execute it. It covers your pricing plan, proposed advertising and promotion activities, activities and partnerships you need to make your business a success, and the benefits of your products and services.

There are several ways you can approach your marketing and sales strategy. Ideally, your marketing and sales strategy has to fit the unique needs of your business.

In this section, you describe how the plans your business has for attracting and retaining customers, and the exact process for making a sale happen. It is essential to thoroughly describe your complete marketing and sales plans because you are still going to reference this section when you are making financial projections for your business.

Outline Your Business’ Unique Selling Proposition (USP)

The sales and marketing section is where you outline your business’s unique selling proposition (USP). When you are developing your unique selling proposition, think about the strongest reasons why people should buy from you over your competition. That reason(s) is most likely a good fit to serve as your unique selling proposition (USP).

Target Market and Target Audience

Plans on how to get your products or services to your target market and how to get your target audience to buy them go into this section. You also highlight the strengths of your business here, particularly what sets them apart from your competition.

Before you start writing your marketing and sales plan, you need to have properly defined your target audience and fleshed out your buyer persona. If you do not first understand the individual you are marketing to, your marketing and sales plan will lack any substance and easily fall.

Creating a Smart Marketing and Sales Plan

Marketing your products and services is an investment that requires you to spend money. Like any other investment, you have to generate a good return on investment (ROI) to justify using that marketing and sales plan. Good marketing and sales plans bring in high sales and profits to your company.

Avoid spending money on unproductive marketing channels. Do your research and find out the best marketing and sales plan that works best for your company.

Your marketing and sales plan can be broken into different parts: your positioning statement, pricing, promotion, packaging, advertising, public relations, content marketing, social media, and strategic alliances.

Your Positioning Statement

Your positioning statement is the first part of your marketing and sales plan. It refers to the way you present your company to your customers.

Are you the premium solution, the low-price solution, or are you the intermediary between the two extremes in the market? What do you offer that your competitors do not that can give you leverage in the market?

Before you start writing your positioning statement, you need to spend some time evaluating the current market conditions. Here are some questions that can help you to evaluate the market

• What are the unique features or benefits that you offer that your competitors lack?
• What are your customers’ primary needs and wants?
• Why should a customer choose you over your competition? How do you plan to differentiate yourself from the competition?
• How does your company’s solution compare with other solutions in the market?

After answering these questions, then you can start writing your positioning statement. Your positioning statement does not have to be in-depth or too long.

All you need to explain with your positioning statement are two focus areas. The first is the position of your company within the competitive landscape. The other focus area is the core value proposition that sets your company apart from other alternatives that your ideal customer might consider.

Here is a simple template you can use to develop a positioning statement.

For [description of target market] who [need of target market], [product or service] [how it meets the need]. Unlike [top competition], it [most essential distinguishing feature].

For example, let’s create the positioning statement for fictional accounting software and QuickBooks alternative , TBooks.

“For small business owners who need accounting services, TBooks is an accounting software that helps small businesses handle their small business bookkeeping basics quickly and easily. Unlike Wave, TBooks gives small businesses access to live sessions with top accountants.”

You can edit this positioning statement sample and fill it with your business details.

After writing your positioning statement, the next step is the pricing of your offerings. The overall positioning strategy you set in your positioning statement will often determine how you price your products or services.

Pricing is a powerful tool that sends a strong message to your customers. Failure to get your pricing strategy right can make or mar your business. If you are targeting a low-income audience, setting a premium price can result in low sales.

You can use pricing to communicate your positioning to your customers. For example, if you are offering a product at a premium price, you are sending a message to your customers that the product belongs to the premium category.

Basic Rules to Follow When Pricing Your Offering

Setting a price for your offering involves more than just putting a price tag on it. Deciding on the right pricing for your offering requires following some basic rules. They include covering your costs, primary and secondary profit center pricing, and matching the market rate.

• Covering Your Costs: The price you set for your products or service should be more than it costs you to produce and deliver them. Every business has the same goal, to make a profit. Depending on the strategy you want to use, there are exceptions to this rule. However, the vast majority of businesses follow this rule.
• Primary and Secondary Profit Center Pricing: When a company sets its price above the cost of production, it is making that product its primary profit center. A company can also decide not to make its initial price its primary profit center by selling below or at even with its production cost. It rather depends on the support product or even maintenance that is associated with the initial purchase to make its profit. The initial price thus became its secondary profit center.
• Matching the Market Rate: A good rule to follow when pricing your products or services is to match your pricing with consumer demand and expectations. If you price your products or services beyond the price your customer perceives as the ideal price range, you may end up with no customers. Pricing your products too low below what your customer perceives as the ideal price range may lead to them undervaluing your offering.

Pricing Strategy

Your pricing strategy influences the price of your offering. There are several pricing strategies available for you to choose from when examining the right pricing strategy for your business. They include cost-plus pricing, market-based pricing, value pricing, and more.

• Cost-plus Pricing: This strategy is one of the simplest and oldest pricing strategies. Here you consider the cost of producing a unit of your product and then add a profit to it to arrive at your market price. It is an effective pricing strategy for manufacturers because it helps them cover their initial costs. Another name for the cost-plus pricing strategy is the markup pricing strategy.
• Market-based Pricing: This pricing strategy analyses the market including competitors’ pricing and then sets a price based on what the market is expecting. With this pricing strategy, you can either set your price at the low-end or high-end of the market.
• Value Pricing: This pricing strategy involves setting a price based on the value you are providing to your customer. When adopting a value-based pricing strategy, you have to set a price that your customers are willing to pay. Service-based businesses such as small business insurance providers , luxury goods sellers, and the fashion industry use this pricing strategy.

After carefully sorting out your positioning statement and pricing, the next item to look at is your promotional strategy. Your promotional strategy explains how you plan on communicating with your customers and prospects.

As a business, you must measure all your costs, including the cost of your promotions. You also want to measure how much sales your promotions bring for your business to determine its usefulness. Promotional strategies or programs that do not lead to profit need to be removed.

There are different types of promotional strategies you can adopt for your business, they include advertising, public relations, and content marketing.

Advertising

Your business plan should include your advertising plan which can be found in the marketing and sales plan section. You need to include an overview of your advertising plans such as the areas you plan to spend money on to advertise your business and offers.

Ensure that you make it clear in this section if your business will be advertising online or using the more traditional offline media, or the combination of both online and offline media. You can also include the advertising medium you want to use to raise awareness about your business and offers.

Some common online advertising mediums you can use include social media ads, landing pages, sales pages, SEO, Pay-Per-Click, emails, Google Ads, and others. Some common traditional and offline advertising mediums include word of mouth, radios, direct mail, televisions, flyers, billboards, posters, and others.

A key component of your advertising strategy is how you plan to measure the effectiveness and success of your advertising campaign. There is no point in sticking with an advertising plan or medium that does not produce results for your business in the long run.

Public Relations

A great way to reach your customers is to get the media to cover your business or product. Publicity, especially good ones, should be a part of your marketing and sales plan. In this section, show your plans for getting prominent reviews of your product from reputable publications and sources.

Your business needs that exposure to grow. If public relations is a crucial part of your promotional strategy, provide details about your public relations plan here.

Content Marketing

Content marketing is a popular promotional strategy used by businesses to inform and attract their customers. It is about teaching and educating your prospects on various topics of interest in your niche, it does not just involve informing them about the benefits and features of the products and services you have,

Businesses publish content usually for free where they provide useful information, tips, and advice so that their target market can be made aware of the importance of their products and services. Content marketing strategies seek to nurture prospects into buyers over time by simply providing value.

Your company can create a blog where it will be publishing content for its target market. You will need to use the best website builder such as Wix and Squarespace and the best web hosting services such as Bluehost, Hostinger, and other Bluehost alternatives to create a functional blog or website.

If content marketing is a crucial part of your promotional strategy (as it should be), detail your plans under promotions.

Including high-quality images of the packaging of your product in your business plan is a lovely idea. You can add the images of the packaging of that product in the marketing and sales plan section. If you are not selling a product, then you do not need to include any worry about the physical packaging of your product.

When organizing the packaging section of your business plan, you can answer the following questions to make maximum use of this section.

• Is your choice of packaging consistent with your positioning strategy?
• What key value proposition does your packaging communicate? (It should reflect the key value proposition of your business)
• How does your packaging compare to that of your competitors?

Social Media

Your 21st-century business needs to have a good social media presence. Not having one is leaving out opportunities for growth and reaching out to your prospect.

You do not have to join the thousands of social media platforms out there. What you need to do is join the ones that your customers are active on and be active there.

Businesses use social media to provide information about their products such as promotions, discounts, the benefits of their products, and content on their blogs.

Social media is also a platform for engaging with your customers and getting feedback about your products or services. Make no mistake, more and more of your prospects are using social media channels to find more information about companies.

You need to consider the social media channels you want to prioritize your business (prioritize the ones your customers are active in) and your branding plans in this section.

Strategic Alliances

If your company plans to work closely with other companies as part of your sales and marketing plan, include it in this section. Prove details about those partnerships in your business plan if you have already established them.

Strategic alliances can be beneficial for all parties involved including your company. Working closely with another company in the form of a partnership can provide access to a different target market segment for your company.

The company you are partnering with may also gain access to your target market or simply offer a new product or service (that of your company) to its customers.

Mutually beneficial partnerships can cover the weaknesses of one company with the strength of another. You should consider strategic alliances with companies that sell complimentary products to yours. For example, if you provide printers, you can partner with a company that produces ink since the customers that buy printers from you will also need inks for printing.

Steps Involved in Creating a Marketing and Sales Plan

1. Focus on Your Target Market

Identify who your customers are, the market you want to target. Then determine the best ways to get your products or services to your potential customers.

2. Evaluate Your Competition

One of the goals of having a marketing plan is to distinguish yourself from your competition. You cannot stand out from them without first knowing them in and out.

You can know your competitors by gathering information about their products, pricing, service, and advertising campaigns.

These questions can help you know your competition.

• What makes your competition successful?
• What are their weaknesses?
• What are customers saying about your competition?

3. Consider Your Brand

Customers' perception of your brand has a strong impact on your sales. Your marketing and sales plan should seek to bolster the image of your brand. Before you start marketing your business, think about the message you want to pass across about your business and your products and services.

4. Focus on Benefits

The majority of your customers do not view your product in terms of features, what they want to know is the benefits and solutions your product offers. Think about the problems your product solves and the benefits it delivers, and use it to create the right sales and marketing message.

Your marketing plan should focus on what you want your customer to get instead of what you provide. Identify those benefits in your marketing and sales plan.

5. Focus on Differentiation

Your marketing and sales plan should look for a unique angle they can take that differentiates your business from the competition, even if the products offered are similar. Some good areas of differentiation you can use are your benefits, pricing, and features.

Key Questions to Answer When Writing Your Marketing and Sales Plan

• What is your company’s budget for sales and marketing campaigns?
• What key metrics will you use to determine if your marketing plans are successful?
• What are your alternatives if your initial marketing efforts do not succeed?
• Who are the sales representatives you need to promote your products or services?
• What are the marketing and sales channels you plan to use? How do you plan to get your products in front of your ideal customers?
• Where will you sell your products?

You may want to include samples of marketing materials you plan to use such as print ads, website descriptions, and social media ads. While it is not compulsory to include these samples, it can help you better communicate your marketing and sales plan and objectives.

The purpose of the marketing and sales section is to answer this question “How will you reach your customers?” If you cannot convincingly provide an answer to this question, you need to rework your marketing and sales section.

7. Clearly Show Your Funding Request

If you are writing your business plan to ask for funding from investors or financial institutions, the funding request section is where you will outline your funding requirements. The funding request section should answer the question ‘How much money will your business need in the near future (3 to 5 years)?’

A good funding request section will clearly outline and explain the amount of funding your business needs over the next five years. You need to know the amount of money your business needs to make an accurate funding request.

Also, when writing your funding request, provide details of how the funds will be used over the period. Specify if you want to use the funds to buy raw materials or machinery, pay salaries, pay for advertisements, and cover specific bills such as rent and electricity.

In addition to explaining what you want to use the funds requested for, you need to clearly state the projected return on investment (ROI) . Investors and creditors want to know if your business can generate profit for them if they put funds into it.

Ensure you do not inflate the figures and stay as realistic as possible. Investors and financial institutions you are seeking funds from will do their research before investing money in your business.

If you are not sure of an exact number to request from, you can use some range of numbers as rough estimates. Add a best-case scenario and a work-case scenario to your funding request. Also, include a description of your strategic future financial plans such as selling your business or paying off debts.

Funding Request: Debt or Equity?

When making your funding request, specify the type of funding you want. Do you want debt or equity? Draw out the terms that will be applicable for the funding, and the length of time the funding request will cover.

Case for Equity

If your new business has not yet started generating profits, you are most likely preparing to sell equity in your business to raise capital at the early stage. Equity here refers to ownership. In this case, you are selling a portion of your company to raise capital.

Although this method of raising capital for your business does not put your business in debt, keep in mind that an equity owner may expect to play a key role in company decisions even if he does not hold a major stake in the company.

Most equity sales for startups are usually private transactions . If you are making a funding request by offering equity in exchange for funding, let the investor know that they will be paid a dividend (a share of the company’s profit). Also, let the investor know the process for selling their equity in your business.

Case for Debt

You may decide not to offer equity in exchange for funds, instead, you make a funding request with the promise to pay back the money borrowed at the agreed time frame.

When making a funding request with an agreement to pay back, note that you will have to repay your creditors both the principal amount borrowed and the interest on it. Financial institutions offer this type of funding for businesses.

Large companies combine both equity and debt in their capital structure. When drafting your business plan, decide if you want to offer both or one over the other.

Before you sell equity in exchange for funding in your business, consider if you are willing to accept not being in total control of your business. Also, before you seek loans in your funding request section, ensure that the terms of repayment are favorable.

You should set a clear timeline in your funding request so that potential investors and creditors can know what you are expecting. Some investors and creditors may agree to your funding request and then delay payment for longer than 30 days, meanwhile, your business needs an immediate cash injection to operate efficiently.

Additional Tips for Writing the Funding Request Section of your Business Plan

The funding request section is not necessary for every business, it is only needed by businesses who plan to use their business plan to secure funding.

If you are adding the funding request section to your business plan, provide an itemized summary of how you plan to use the funds requested. Hiring a lawyer, accountant, or other professionals may be necessary for the proper development of this section.

You should also gather and use financial statements that add credibility and support to your funding requests. Ensure that the financial statements you use should include your projected financial data such as projected cash flows, forecast statements, and expenditure budgets.

If you are an existing business, include all historical financial statements such as cash flow statements, balance sheets and income statements .

Provide monthly and quarterly financial statements for a year. If your business has records that date back beyond the one-year mark, add the yearly statements of those years. These documents are for the appendix section of your business plan.

8. Detail Your Financial Plan, Metrics, and Projections

If you used the funding request section in your business plan, supplement it with a financial plan, metrics, and projections. This section paints a picture of the past performance of your business and then goes ahead to make an informed projection about its future.

The goal of this section is to convince readers that your business is going to be a financial success. It outlines your business plan to generate enough profit to repay the loan (with interest if applicable) and to generate a decent return on investment for investors.

If you have an existing business already in operation, use this section to demonstrate stability through finance. This section should include your cash flow statements, balance sheets, and income statements covering the last three to five years. If your business has some acceptable collateral that you can use to acquire loans, list it in the financial plan, metrics, and projection section.

Apart from current financial statements, this section should also contain a prospective financial outlook that spans the next five years. Include forecasted income statements, cash flow statements, balance sheets, and capital expenditure budget.

If your business is new and is not yet generating profit, use clear and realistic projections to show the potentials of your business.

When drafting this section, research industry norms and the performance of comparable businesses. Your financial projections should cover at least five years. State the logic behind your financial projections. Remember you can always make adjustments to this section as the variables change.

The financial plan, metrics, and projection section create a baseline which your business can either exceed or fail to reach. If your business fails to reach your projections in this section, you need to understand why it failed.

Investors and loan managers spend a lot of time going through the financial plan, metrics, and projection section compared to other parts of the business plan. Ensure you spend time creating credible financial analyses for your business in this section.

Many entrepreneurs find this section daunting to write. You do not need a business degree to create a solid financial forecast for your business. Business finances, especially for startups, are not as complicated as they seem. There are several online tools and templates that make writing this section so much easier.

Use Graphs and Charts

The financial plan, metrics, and projection section is a great place to use graphs and charts to tell the financial story of your business. Charts and images make it easier to communicate your finances.

Accuracy in this section is key, ensure you carefully analyze your past financial statements properly before making financial projects.

Address the Risk Factors and Show Realistic Financial Projections

Keep your financial plan, metrics, and projection realistic. It is okay to be optimistic in your financial projection, however, you have to justify it.

You should also address the various risk factors associated with your business in this section. Investors want to know the potential risks involved, show them. You should also show your plans for mitigating those risks.

What You Should In The Financial Plan, Metrics, and Projection Section of Your Business Plan

The financial plan, metrics, and projection section of your business plan should have monthly sales and revenue forecasts for the first year. It should also include annual projections that cover 3 to 5 years.

A three-year projection is a basic requirement to have in your business plan. However, some investors may request a five-year forecast.

Your business plan should include the following financial statements: sales forecast, personnel plan, income statement, income statement, cash flow statement, balance sheet, and an exit strategy.

1. Sales Forecast

Sales forecast refers to your projections about the number of sales your business is going to record over the next few years. It is typically broken into several rows, with each row assigned to a core product or service that your business is offering.

One common mistake people make in their business plan is to break down the sales forecast section into long details. A sales forecast should forecast the high-level details.

For example, if you are forecasting sales for a payroll software provider, you could break down your forecast into target market segments or subscription categories.

Your sales forecast section should also have a corresponding row for each sales row to cover the direct cost or Cost of Goods Sold (COGS). The objective of these rows is to show the expenses that your business incurs in making and delivering your product or service.

Note that your Cost of Goods Sold (COGS) should only cover those direct costs incurred when making your products. Other indirect expenses such as insurance, salaries, payroll tax, and rent should not be included.

For example, the Cost of Goods Sold (COGS) for a restaurant is the cost of ingredients while for a consulting company it will be the cost of paper and other presentation materials.

2. Personnel Plan

The personnel plan section is where you provide details about the payment plan for your employees. For a small business, you can easily list every position in your company and how much you plan to pay in the personnel plan.

However, for larger businesses, you have to break the personnel plan into functional groups such as sales and marketing.

The personnel plan will also include the cost of an employee beyond salary, commonly referred to as the employee burden. These costs include insurance, payroll taxes , and other essential costs incurred monthly as a result of having employees on your payroll.

3. Income Statement

The income statement section shows if your business is making a profit or taking a loss. Another name for the income statement is the profit and loss (P&L). It takes data from your sales forecast and personnel plan and adds other ongoing expenses you incur while running your business.

Every business plan should have an income statement. It subtracts your business expenses from its earnings to show if your business is generating profit or incurring losses.

The income statement has the following items: sales, Cost of Goods Sold (COGS), gross margin, operating expenses, total operating expenses, operating income , total expenses, and net profit.

• Sales refer to the revenue your business generates from selling its products or services. Other names for sales are income or revenue.
• Cost of Goods Sold (COGS) refers to the total cost of selling your products. Other names for COGS are direct costs or cost of sales. Manufacturing businesses use the Costs of Goods Manufactured (COGM) .
• Gross Margin is the figure you get when you subtract your COGS from your sales. In your income statement, you can express it as a percentage of total sales (Gross margin / Sales = Gross Margin Percent).
• Operating Expenses refer to all the expenses you incur from running your business. It exempts the COGS because it stands alone as a core part of your income statement. You also have to exclude taxes, depreciation, and amortization. Your operating expenses include salaries, marketing expenses, research and development (R&D) expenses, and other expenses.
• Total Operating Expenses refers to the sum of all your operating expenses including those exemptions named above under operating expenses.
• Operating Income refers to earnings before interest, taxes, depreciation, and amortization. It is simply known as the acronym EBITDA (earnings before interest, taxes, depreciation, and amortization). Calculating your operating income is simple, all you need to do is to subtract your COGS and total operating expenses from your sales.
• Total Expenses refer to the sum of your operating expenses and your business’ interest, taxes, depreciation, and amortization.
• Net profit shows whether your business has made a profit or taken a loss during a given timeframe.

4. Cash Flow Statement

The cash flow statement tracks the money you have in the bank at any given point. It is often confused with the income statement or the profit and loss statement. They are both different types of financial statements. The income statement calculates your profits and losses while the cash flow statement shows you how much you have in the bank.

5. Balance Sheet

The balance sheet is a financial statement that provides an overview of the financial health of your business. It contains information about the assets and liabilities of your company, and owner’s or shareholders’ equity.

You can get the net worth of your company by subtracting your company’s liabilities from its assets.

6. Exit Strategy

The exit strategy refers to a probable plan for selling your business either to the public in an IPO or to another company. It is the last thing you include in the financial plan, metrics, and projection section.

You can choose to omit the exit strategy from your business plan if you plan to maintain full ownership of your business and do not plan on seeking angel investment or virtual capitalist (VC) funding.

Investors may want to know what your exit plan is. They invest in your business to get a good return on investment.

Your exit strategy does not have to include long and boring details. Ensure you identify some interested parties who may be interested in buying the company if it becomes a success.

Key Questions to Answer with Your Financial Plan, Metrics, and Projection

Your financial plan, metrics, and projection section helps investors, creditors, or your internal managers to understand what your expenses are, the amount of cash you need, and what it takes to make your company profitable. It also shows what you will be doing with any funding.

You do not need to show actual financial data if you do not have one. Adding forecasts and projections to your financial statements is added proof that your strategy is feasible and shows investors you have planned properly.

Here are some key questions to answer to help you develop this section.

• What is your sales forecast for the next year?
• When will your company achieve a positive cash flow?
• What are the core expenses you need to operate?
• How much money do you need upfront to operate or grow your company?
• How will you use the loans or investments?

9. Add an Appendix to Your Business Plan

Adding an appendix to your business plan is optional. It is a useful place to put any charts, tables, legal notes, definitions, permits, résumés, and other critical information that do not fit into other sections of your business plan.

The appendix section is where you would want to include details of a patent or patent-pending if you have one. You can always add illustrations or images of your products here. It is the last section of your business plan.

When writing your business plan, there are details you cut short or remove to prevent the entire section from becoming too lengthy. There are also details you want to include in the business plan but are not a good fit for any of the previous sections. You can add that additional information to the appendix section.

Businesses also use the appendix section to include supporting documents or other materials specially requested by investors or lenders.

You can include just about any information that supports the assumptions and statements you made in the business plan under the appendix. It is the one place in the business plan where unrelated data and information can coexist amicably.

If your appendix section is lengthy, try organizing it by adding a table of contents at the beginning of the appendix section. It is also advisable to group similar information to make it easier for the reader to access them.

A well-organized appendix section makes it easier to share your information clearly and concisely. Add footnotes throughout the rest of the business plan or make references in the plan to the documents in the appendix.

The appendix section is usually only necessary if you are seeking funding from investors or lenders, or hoping to attract partners.

People reading business plans do not want to spend time going through a heap of backup information, numbers, and charts. Keep these documents or information in the Appendix section in case the reader wants to dig deeper.

Common Items to Include in the Appendix Section of Your Business Plan

The appendix section includes documents that supplement or support the information or claims given in other sections of the business plans. Common items you can include in the appendix section include:

• Additional data about the process of manufacturing or creation
• Additional description of products or services such as product schematics
• Additional financial documents or projections
• Articles of incorporation and status
• Backup for market research or competitive analysis
• Bank statements
• Business registries
• Client testimonials (if your business is already running)
• Copies of insurances
• Credit histories (personal or/and business)
• Deeds and permits
• Equipment leases
• Examples of marketing and advertising collateral
• Industry associations and memberships
• Images of product
• Intellectual property
• Key customer contracts
• Legal documents and other contracts
• Letters of reference
• Links to references
• Market research data
• Organizational charts
• Photographs of potential facilities
• Professional licenses pertaining to your legal structure or type of business
• Purchase orders
• Resumes of the founder(s) and key managers
• State and federal identification numbers or codes
• Trademarks or patents’ registrations

Avoid using the appendix section as a place to dump any document or information you feel like adding. Only add documents or information that you support or increase the credibility of your business plan.

Tips and Strategies for Writing a Convincing Business Plan

To achieve a perfect business plan, you need to consider some key tips and strategies. These tips will raise the efficiency of your business plan above average.

1. Know Your Audience

When writing a business plan, you need to know your audience . Business owners write business plans for different reasons. Your business plan has to be specific. For example, you can write business plans to potential investors, banks, and even fellow board members of the company.

The audience you are writing to determines the structure of the business plan. As a business owner, you have to know your audience. Not everyone will be your audience. Knowing your audience will help you to narrow the scope of your business plan.

Consider what your audience wants to see in your projects, the likely questions they might ask, and what interests them.

• A business plan used to address a company's board members will center on its employment schemes, internal affairs, projects, stakeholders, etc.
• A business plan for financial institutions will talk about the size of your market and the chances for you to pay back any loans you demand.
• A business plan for investors will show proof that you can return the investment capital within a specific time. In addition, it discusses your financial projections, tractions, and market size.

2. Get Inspiration from People

Writing a business plan from scratch as an entrepreneur can be daunting. That is why you need the right inspiration to push you to write one. You can gain inspiration from the successful business plans of other businesses. Look at their business plans, the style they use, the structure of the project, etc.

To make your business plan easier to create, search companies related to your business to get an exact copy of what you need to create an effective business plan. You can also make references while citing examples in your business plans.

When drafting your business plan, get as much help from others as you possibly can. By getting inspiration from people, you can create something better than what they have.

3. Avoid Being Over Optimistic

Many business owners make use of strong adjectives to qualify their content. One of the big mistakes entrepreneurs make when preparing a business plan is promising too much.

The use of superlatives and over-optimistic claims can prepare the audience for more than you can offer. In the end, you disappoint the confidence they have in you.

In most cases, the best option is to be realistic with your claims and statistics. Most of the investors can sense a bit of incompetency from the overuse of superlatives. As a new entrepreneur, do not be tempted to over-promise to get the interests of investors.

The concept of entrepreneurship centers on risks, nothing is certain when you make future analyses. What separates the best is the ability to do careful research and work towards achieving that, not promising more than you can achieve.

To make an excellent first impression as an entrepreneur, replace superlatives with compelling data-driven content. In this way, you are more specific than someone promising a huge ROI from an investment.

4. Keep it Simple and Short

When writing business plans, ensure you keep them simple throughout. Irrespective of the purpose of the business plan, your goal is to convince the audience.

One way to achieve this goal is to make them understand your proposal. Therefore, it would be best if you avoid the use of complex grammar to express yourself. It would be a huge turn-off if the people you want to convince are not familiar with your use of words.

Another thing to note is the length of your business plan. It would be best if you made it as brief as possible.

You hardly see investors or agencies that read through an extremely long document. In that case, if your first few pages can’t convince them, then you have lost it. The more pages you write, the higher the chances of you derailing from the essential contents.

To ensure your business plan has a high conversion rate, you need to dispose of every unnecessary information. For example, if you have a strategy that you are not sure of, it would be best to leave it out of the plan.

5. Make an Outline and Follow Through

A perfect business plan must have touched every part needed to convince the audience. Business owners get easily tempted to concentrate more on their products than on other sections. Doing this can be detrimental to the efficiency of the business plan.

For example, imagine you talking about a product but omitting or providing very little information about the target audience. You will leave your clients confused.

To ensure that your business plan communicates your full business model to readers, you have to input all the necessary information in it. One of the best ways to achieve this is to design a structure and stick to it.

This structure is what guides you throughout the writing. To make your work easier, you can assign an estimated word count or page limit to every section to avoid making it too bulky for easy reading. As a guide, the necessary things your business plan must contain are:

• Table of contents
• Introduction
• Product or service description
• Target audience
• Market size
• Competition analysis
• Financial projections

Some specific businesses can include some other essential sections, but these are the key sections that must be in every business plan.

6. Ask a Professional to Proofread

When writing a business plan, you must tie all loose ends to get a perfect result. When you are done with writing, call a professional to go through the document for you. You are bound to make mistakes, and the way to correct them is to get external help.

You should get a professional in your field who can relate to every section of your business plan. It would be easier for the professional to notice the inner flaws in the document than an editor with no knowledge of your business.

In addition to getting a professional to proofread, get an editor to proofread and edit your document. The editor will help you identify grammatical errors, spelling mistakes, and inappropriate writing styles.

Writing a business plan can be daunting, but you can surmount that obstacle and get the best out of it with these tips.

Business Plan Examples and Templates That’ll Save You Tons of Time

1. hubspot's one-page business plan.

The one-page business plan template by HubSpot is the perfect guide for businesses of any size, irrespective of their business strategy. Although the template is condensed into a page, your final business plan should not be a page long! The template is designed to ask helpful questions that can help you develop your business plan.

Hubspot’s one-page business plan template is divided into nine fields:

• Business opportunity
• Company description
• Industry analysis
• Target market
• Implementation timeline
• Marketing plan
• Financial summary
• Funding required

2. Bplan’s Free Business Plan Template

Bplans' free business plan template is investor-approved. It is a rich template used by prestigious educational institutions such as Babson College and Princeton University to teach entrepreneurs how to create a business plan.

The template has six sections: the executive summary, opportunity, execution, company, financial plan, and appendix. There is a step-by-step guide for writing every little detail in the business plan. Follow the instructions each step of the way and you will create a business plan that impresses investors or lenders easily.

3. HubSpot's Downloadable Business Plan Template

HubSpot’s downloadable business plan template is a more comprehensive option compared to the one-page business template by HubSpot. This free and downloadable business plan template is designed for entrepreneurs.

The template is a comprehensive guide and checklist for business owners just starting their businesses. It tells you everything you need to fill in each section of the business plan and how to do it.

There are nine sections in this business plan template: an executive summary, company and business description, product and services line, market analysis, marketing plan, sales plan, legal notes, financial considerations, and appendix.

4. Business Plan by My Own Business Institute

My Own Business Institute (MOBI) which is a part of Santa Clara University's Center for Innovation and Entrepreneurship offers a free business plan template. You can either copy the free business template from the link provided above or download it as a Word document.

The comprehensive template consists of a whopping 15 sections.

• The Business Profile
• The Vision and the People
• Home-Based Business and Freelance Business Opportunities
• Organization
• Licenses and Permits
• Business Insurance
• Communication Tools
• Acquisitions
• Location and Leasing
• Accounting and Cash Flow
• Opening and Marketing
• Managing Employees
• Expanding and Handling Problems

There are lots of helpful tips on how to fill each section in the free business plan template by MOBI.

5. Score's Business Plan Template for Startups

Score is an American nonprofit organization that helps entrepreneurs build successful companies. This business plan template for startups by Score is available for free download. The business plan template asks a whooping 150 generic questions that help entrepreneurs from different fields to set up the perfect business plan.

The business plan template for startups contains clear instructions and worksheets, all you have to do is answer the questions and fill the worksheets.

There are nine sections in the business plan template: executive summary, company description, products and services, marketing plan, operational plan, management and organization, startup expenses and capitalization, financial plan, and appendices.

The ‘refining the plan’ resource contains instructions that help you modify your business plan to suit your specific needs, industry, and target audience. After you have completed Score’s business plan template, you can work with a SCORE mentor for expert advice in business planning.

6. Minimalist Architecture Business Plan Template by Venngage

The minimalist architecture business plan template is a simple template by Venngage that you can customize to suit your business needs .

There are five sections in the template: an executive summary, statement of problem, approach and methodology, qualifications, and schedule and benchmark. The business plan template has instructions that guide users on what to fill in each section.

7. Small Business Administration Free Business Plan Template

The Small Business Administration (SBA) offers two free business plan templates, filled with practical real-life examples that you can model to create your business plan. Both free business plan templates are written by fictional business owners: Rebecca who owns a consulting firm, and Andrew who owns a toy company.

There are five sections in the two SBA’s free business plan templates.

• Executive Summary
• Company Description
• Service Line
• Marketing and Sales

8. The $100 Startup's One-Page Business Plan

The one-page business plan by the $100 startup is a simple business plan template for entrepreneurs who do not want to create a long and complicated plan . You can include more details in the appendices for funders who want more information beyond what you can put in the one-page business plan.

There are five sections in the one-page business plan such as overview, ka-ching, hustling, success, and obstacles or challenges or open questions. You can answer all the questions using one or two sentences.

9. PandaDoc’s Free Business Plan Template

The free business plan template by PandaDoc is a comprehensive 15-page document that describes the information you should include in every section.

There are 11 sections in PandaDoc’s free business plan template.

• Executive summary
• Business description
• Products and services
• Operations plan
• Management organization
• Financial plan
• Conclusion / Call to action
• Confidentiality statement

You have to sign up for its 14-day free trial to access the template. You will find different business plan templates on PandaDoc once you sign up (including templates for general businesses and specific businesses such as bakeries, startups, restaurants, salons, hotels, and coffee shops)

PandaDoc allows you to customize its business plan templates to fit the needs of your business. After editing the template, you can send it to interested parties and track opens and views through PandaDoc.

10. Invoiceberry Templates for Word, Open Office, Excel, or PPT

InvoiceBerry is a U.K based online invoicing and tracking platform that offers free business plan templates in .docx, .odt, .xlsx, and .pptx formats for freelancers and small businesses.

Before you can download the free business plan template, it will ask you to give it your email address. After you complete the little task, it will send the download link to your inbox for you to download. It also provides a business plan checklist in .xlsx file format that ensures you add the right information to the business plan.

Alternatives to the Traditional Business Plan

A business plan is very important in mapping out how one expects their business to grow over a set number of years, particularly when they need external investment in their business. However, many investors do not have the time to watch you present your business plan. It is a long and boring read.

Luckily, there are three alternatives to the traditional business plan (the Business Model Canvas, Lean Canvas, and Startup Pitch Deck). These alternatives are less laborious and easier and quicker to present to investors.

Business Model Canvas (BMC)

The business model canvas is a business tool used to present all the important components of setting up a business, such as customers, route to market, value proposition, and finance in a single sheet. It provides a very focused blueprint that defines your business initially which you can later expand on if needed.

The sheet is divided mainly into company, industry, and consumer models that are interconnected in how they find problems and proffer solutions.

Segments of the Business Model Canvas

The business model canvas was developed by founder Alexander Osterwalder to answer important business questions. It contains nine segments.

• Key Partners: Who will be occupying important executive positions in your business? What do they bring to the table? Will there be a third party involved with the company?
• Key Activities: What important activities will production entail? What activities will be carried out to ensure the smooth running of the company?
• The Product’s Value Propositions: What does your product do? How will it be different from other products?
• Customer Segments: What demography of consumers are you targeting? What are the habits of these consumers? Who are the MVPs of your target consumers?
• Customer Relationships: How will the team support and work with its customer base? How do you intend to build and maintain trust with the customer?
• Key Resources: What type of personnel and tools will be needed? What size of the budget will they need access to?
• Channels: How do you plan to create awareness of your products? How do you intend to transport your product to the customer?
• Cost Structure: What is the estimated cost of production? How much will distribution cost?
• Revenue Streams: For what value are customers willing to pay? How do they prefer to pay for the product? Are there any external revenues attached apart from the main source? How do the revenue streams contribute to the overall revenue?

Lean Canvas

The lean canvas is a problem-oriented alternative to the standard business model canvas. It was proposed by Ash Maurya, creator of Lean Stack as a development of the business model generation. It uses a more problem-focused approach and it majorly targets entrepreneurs and startup businesses.

Lean Canvas uses the same 9 blocks concept as the business model canvas, however, they have been modified slightly to suit the needs and purpose of a small startup. The key partners, key activities, customer relationships, and key resources are replaced by new segments which are:

• Problem: Simple and straightforward number of problems you have identified, ideally three.
• Solution: The solutions to each problem.
• Unfair Advantage: Something you possess that can't be easily bought or replicated.
• Key Metrics: Important numbers that will tell how your business is doing.

Startup Pitch Deck

While the business model canvas compresses into a factual sheet, startup pitch decks expand flamboyantly.

Pitch decks, through slides, convey your business plan, often through graphs and images used to emphasize estimations and observations in your presentation. Entrepreneurs often use pitch decks to fully convince their target audience of their plans before discussing funding arrangements.

Considering the likelihood of it being used in a small time frame, a good startup pitch deck should ideally contain 20 slides or less to have enough time to answer questions from the audience.

Unlike the standard and lean business model canvases, a pitch deck doesn't have a set template on how to present your business plan but there are still important components to it. These components often mirror those of the business model canvas except that they are in slide form and contain more details.

Using Airbnb (one of the most successful start-ups in recent history) for reference, the important components of a good slide are listed below.

• Cover/Introduction Slide: Here, you should include your company's name and mission statement. Your mission statement should be a very catchy tagline. Also, include personal information and contact details to provide an easy link for potential investors.
• Problem Slide: This slide requires you to create a connection with the audience or the investor that you are pitching. For example in their pitch, Airbnb summarized the most important problems it would solve in three brief points – pricing of hotels, disconnection from city culture, and connection problems for local bookings.
• Solution Slide: This slide includes your core value proposition. List simple and direct solutions to the problems you have mentioned
• Customer Analysis: Here you will provide information on the customers you will be offering your service to. The identity of your customers plays an important part in fundraising as well as the long-run viability of the business.
• Market Validation: Use competitive analysis to show numbers that prove the presence of a market for your product, industry behavior in the present and the long run, as well as the percentage of the market you aim to attract. It shows that you understand your competitors and customers and convinces investors of the opportunities presented in the market.
• Business Model: Your business model is the hook of your presentation. It may vary in complexity but it should generally include a pricing system informed by your market analysis. The goal of the slide is to confirm your business model is easy to implement.
• Marketing Strategy: This slide should summarize a few customer acquisition methods that you plan to use to grow the business.
• Competitive Advantage: What this slide will do is provide information on what will set you apart and make you a more attractive option to customers. It could be the possession of technology that is not widely known in the market.
• Team Slide: Here you will give a brief description of your team. Include your key management personnel here and their specific roles in the company. Include their educational background, job history, and skillsets. Also, talk about their accomplishments in their careers so far to build investors' confidence in members of your team.
• Traction Slide: This validates the company’s business model by showing growth through early sales and support. The slide aims to reduce any lingering fears in potential investors by showing realistic periodic milestones and profit margins. It can include current sales, growth, valuable customers, pre-orders, or data from surveys outlining current consumer interest.
• Funding Slide: This slide is popularly referred to as ‘the ask'. Here you will include important details like how much is needed to get your business off the ground and how the funding will be spent to help the company reach its goals.
• Appendix Slides: Your pitch deck appendix should always be included alongside a standard pitch presentation. It consists of additional slides you could not show in the pitch deck but you need to complement your presentation.

It is important to support your calculations with pictorial renditions. Infographics, such as pie charts or bar graphs, will be more effective in presenting the information than just listing numbers. For example, a six-month graph that shows rising profit margins will easily look more impressive than merely writing it.

Lastly, since a pitch deck is primarily used to secure meetings and you may be sharing your pitch with several investors, it is advisable to keep a separate public version that doesn't include financials. Only disclose the one with projections once you have secured a link with an investor.

Advantages of the Business Model Canvas, Lean Canvas, and Startup Pitch Deck over the Traditional Business Plan

• Time-Saving: Writing a detailed traditional business plan could take weeks or months. On the other hand, all three alternatives can be done in a few days or even one night of brainstorming if you have a comprehensive understanding of your business.
• Easier to Understand: Since the information presented is almost entirely factual, it puts focus on what is most important in running the business. They cut away the excess pages of fillers in a traditional business plan and allow investors to see what is driving the business and what is getting in the way.
• Easy to Update: Businesses typically present their business plans to many potential investors before they secure funding. What this means is that you may regularly have to amend your presentation to update statistics or adjust to audience-specific needs. For a traditional business plan, this could mean rewriting a whole section of your plan. For the three alternatives, updating is much easier because they are not voluminous.
• Guide for a More In-depth Business Plan: All three alternatives have the added benefit of being able to double as a sketch of your business plan if the need to create one arises in the future.

Business Plan FAQ

Business plans are important for any entrepreneur who is looking for a framework to run their company over some time or seeking external support. Although they are essential for new businesses, every company should ideally have a business plan to track their growth from time to time.  They can be used by startups seeking investments or loans to convey their business ideas or an employee to convince his boss of the feasibility of starting a new project. They can also be used by companies seeking to recruit high-profile employee targets into key positions or trying to secure partnerships with other firms.

Business plans often vary depending on your target audience, the scope, and the goals for the plan. Startup plans are the most common among the different types of business plans.  A start-up plan is used by a new business to present all the necessary information to help get the business up and running. They are usually used by entrepreneurs who are seeking funding from investors or bank loans. The established company alternative to a start-up plan is a feasibility plan. A feasibility plan is often used by an established company looking for new business opportunities. They are used to show the upsides of creating a new product for a consumer base. Because the audience is usually company people, it requires less company analysis. The third type of business plan is the lean business plan. A lean business plan is a brief, straight-to-the-point breakdown of your ideas and analysis for your business. It does not contain details of your proposal and can be written on one page. Finally, you have the what-if plan. As it implies, a what-if plan is a preparation for the worst-case scenario. You must always be prepared for the possibility of your original plan being rejected. A good what-if plan will serve as a good plan B to the original.

A good business plan has 10 key components. They include an executive plan, product analysis, desired customer base, company analysis, industry analysis, marketing strategy, sales strategy, financial projection, funding, and appendix. Executive Plan Your business should begin with your executive plan. An executive plan will provide early insight into what you are planning to achieve with your business. It should include your mission statement and highlight some of the important points which you will explain later. Product Analysis The next component of your business plan is your product analysis. A key part of this section is explaining the type of item or service you are going to offer as well as the market problems your product will solve. Desired Consumer Base Your product analysis should be supplemented with a detailed breakdown of your desired consumer base. Investors are always interested in knowing the economic power of your market as well as potential MVP customers. Company Analysis The next component of your business plan is your company analysis. Here, you explain how you want to run your business. It will include your operational strategy, an insight into the workforce needed to keep the company running, and important executive positions. It will also provide a calculation of expected operational costs.  Industry Analysis A good business plan should also contain well laid out industry analysis. It is important to convince potential investors you know the companies you will be competing with, as well as your plans to gain an edge on the competition. Marketing Strategy Your business plan should also include your marketing strategy. This is how you intend to spread awareness of your product. It should include a detailed explanation of the company brand as well as your advertising methods. Sales Strategy Your sales strategy comes after the market strategy. Here you give an overview of your company's pricing strategy and how you aim to maximize profits. You can also explain how your prices will adapt to market behaviors. Financial Projection The financial projection is the next component of your business plan. It explains your company's expected running cost and revenue earned during the tenure of the business plan. Financial projection gives a clear idea of how your company will develop in the future. Funding The next component of your business plan is funding. You have to detail how much external investment you need to get your business idea off the ground here. Appendix The last component of your plan is the appendix. This is where you put licenses, graphs, or key information that does not fit in any of the other components.

The business model canvas is a business management tool used to quickly define your business idea and model. It is often used when investors need you to pitch your business idea during a brief window.

A pitch deck is similar to a business model canvas except that it makes use of slides in its presentation. A pitch is not primarily used to secure funding, rather its main purpose is to entice potential investors by selling a very optimistic outlook on the business.

Business plan competitions help you evaluate the strength of your business plan. By participating in business plan competitions, you are improving your experience. The experience provides you with a degree of validation while practicing important skills. The main motivation for entering into the competitions is often to secure funding by finishing in podium positions. There is also the chance that you may catch the eye of a casual observer outside of the competition. These competitions also provide good networking opportunities. You could meet mentors who will take a keen interest in guiding you in your business journey. You also have the opportunity to meet other entrepreneurs whose ideas can complement yours.

Exlore Further

• 12 Key Elements of a Business Plan (Top Components Explained)
• 13 Sources of Business Finance For Companies & Sole Traders
• 5 Common Types of Business Structures (+ Pros & Cons)
• How to Buy a Business in 8 Steps (+ Due Diligence Checklist)

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How to Write a Business Plan, Step by Step

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What is a business plan?

1. write an executive summary, 2. describe your company, 3. state your business goals, 4. describe your products and services, 5. do your market research, 6. outline your marketing and sales plan, 7. perform a business financial analysis, 8. make financial projections, 9. summarize how your company operates, 10. add any additional information to an appendix, business plan tips and resources.

A business plan outlines your business’s financial goals and explains how you’ll achieve them over the next three to five years. Here’s a step-by-step guide to writing a business plan that will offer a strong, detailed road map for your business.

LLC Formation

A business plan is a document that explains what your business does, how it makes money and who its customers are. Internally, writing a business plan should help you clarify your vision and organize your operations. Externally, you can share it with potential lenders and investors to show them you’re on the right track.

Business plans are living documents; it’s OK for them to change over time. Startups may update their business plans often as they figure out who their customers are and what products and services fit them best. Mature companies might only revisit their business plan every few years. Regardless of your business’s age, brush up this document before you apply for a business loan .

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

This is your elevator pitch. It should include a mission statement, a brief description of the products or services your business offers and a broad summary of your financial growth plans.

Though the executive summary is the first thing your investors will read, it can be easier to write it last. That way, you can highlight information you’ve identified while writing other sections that go into more detail.

» MORE: How to write an executive summary in 6 steps

Next up is your company description. This should contain basic information like:

Your business’s registered name.

Address of your business location .

Names of key people in the business. Make sure to highlight unique skills or technical expertise among members of your team.

Your company description should also define your business structure — such as a sole proprietorship, partnership or corporation — and include the percent ownership that each owner has and the extent of each owner’s involvement in the company.

Lastly, write a little about the history of your company and the nature of your business now. This prepares the reader to learn about your goals in the next section.

» MORE: How to write a company overview for a business plan

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

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

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

» MORE: How to write a successful business plan for a loan

In this section, go into detail about the products or services you offer or plan to offer.

You should include the following:

An explanation of how your product or service works.

The pricing model for your product or service.

The typical customers you serve.

Your supply chain and order fulfillment strategy.

You can also discuss current or pending trademarks and patents associated with your product or service.

Lenders and investors will want to know what sets your product apart from your competition. In your market analysis section , explain who your competitors are. Discuss what they do well, and point out what you can do better. If you’re serving a different or underserved market, explain that.

Here, you can address how you plan to persuade customers to buy your products or services, or how you will develop customer loyalty that will lead to repeat business.

Include details about your sales and distribution strategies, including the costs involved in selling each product .

» MORE: R e a d our complete guide to small business marketing

If you’re a startup, you may not have much information on your business financials yet. However, if you’re an existing business, you’ll want to include income or profit-and-loss statements, a balance sheet that lists your assets and debts, and a cash flow statement that shows how cash comes into and goes out of the company.

Accounting software may be able to generate these reports for you. It may also help you calculate metrics such as:

Net profit margin: the percentage of revenue you keep as net income.

Current ratio: the measurement of your liquidity and ability to repay debts.

Accounts receivable turnover ratio: a measurement of how frequently you collect on receivables per year.

This is a great place to include charts and graphs that make it easy for those reading your plan to understand the financial health of your business.

This is a critical part of your business plan if you’re seeking financing or investors. It outlines how your business will generate enough profit to repay the loan or how you will earn a decent return for investors.

Here, you’ll provide your business’s monthly or quarterly sales, expenses and profit estimates over at least a three-year period — with the future numbers assuming you’ve obtained a new loan.

Accuracy is key, so carefully analyze your past financial statements before giving projections. Your goals may be aggressive, but they should also be realistic.

NerdWallet’s picks for setting up your business finances:

The best business checking accounts .

The best business credit cards .

The best accounting software .

Before the end of your business plan, summarize how your business is structured and outline each team’s responsibilities. This will help your readers understand who performs each of the functions you’ve described above — making and selling your products or services — and how much each of those functions cost.

If any of your employees have exceptional skills, you may want to include their resumes to help explain the competitive advantage they give you.

Finally, attach any supporting information or additional materials that you couldn’t fit in elsewhere. That might include:

Licenses and permits.

Equipment leases.

Bank statements.

Details of your personal and business credit history, if you’re seeking financing.

If the appendix is long, you may want to consider adding a table of contents at the beginning of this section.

How much do you need?

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Here are some tips to write a detailed, convincing business plan:

Avoid over-optimism: If you’re applying for a business bank loan or professional investment, someone will be reading your business plan closely. Providing unreasonable sales estimates can hurt your chances of approval.

Proofread: Spelling, punctuation and grammatical errors can jump off the page and turn off lenders and prospective investors. If writing and editing aren't your strong suit, you may want to hire a professional business plan writer, copy editor or proofreader.

Use free resources: SCORE is a nonprofit association that offers a large network of volunteer business mentors and experts who can help you write or edit your business plan. The U.S. Small Business Administration’s Small Business Development Centers , which provide free business consulting and help with business plan development, can also be a resource.

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How To Write a Business Plan

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

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

Table of contents

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

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Step 1: Write your executive summary

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

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

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

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

Step 2: Do your market research homework

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

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

Step 3: Set your business goals and objectives

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

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

Step 4: Plan your business strategy

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

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

Step 5: Describe your product or service

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

Step 6: Crunch the numbers

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

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

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

Step 7: Finalize your business plan

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

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

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The takeaway

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

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How to Write a Business Plan: Your Step-by-Step Guide

So, you’ve got an idea and you want to start a business —great! Before you do anything else, like seek funding or build out a team, you'll need to know how to write a business plan. This plan will serve as the foundation of your company while also giving investors and future employees a clear idea of your purpose.

Below, Lauren Cobello, Founder and CEO of Leverage with Media PR , gives her best advice on how to make a business plan for your company.

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What is a business plan, and when do you need one?

According to Cobello, a business plan is a document that contains the mission of the business and a brief overview of it, as well as the objectives, strategies, and financial plans of the founder. A business plan comes into play very early on in the process of starting a company—more or less before you do anything else.

“You should start a company with a business plan in mind—especially if you plan to get funding for the company,” Cobello says. “You’re going to need it.”

Whether that funding comes from a loan, an investor, or crowdsourcing, a business plan is imperative to secure the capital, says the U.S. Small Business Administration . Anyone who’s considering giving you money is going to want to review your business plan before doing so. That means before you head into any meeting, make sure you have physical copies of your business plan to share.

Different types of business plans

The four main types of business plans are:

Startup Business Plans

Internal business plans, strategic business plans, one-page business plans.

Let's break down each one:

If you're wondering how to write a business plan for a startup, Cobello has advice for you. Startup business plans are the most common type, she says, and they are a critical tool for new business ventures that want funding. A startup is defined as a company that’s in its first stages of operations, founded by an entrepreneur who has a product or service idea.

Most startups begin with very little money, so they need a strong business plan to convince family, friends, banks, and/or venture capitalists to invest in the new company.

Internal business plans “are for internal use only,” says Cobello. This kind of document is not public-facing, only company-facing, and it contains an outline of the company’s business strategy, financial goals and budgets, and performance data.

Internal business plans aren’t used to secure funding, but rather to set goals and get everyone working there tracking towards them.

As the name implies, strategic business plans are geared more towards strategy and they include an assessment of the current business landscape, notes Jérôme Côté, a Business Advisor at BDC Advisory Services .

Unlike a traditional business plan, Cobello adds, strategic plans include a SWOT analysis (which stands for strengths, weaknesses, opportunities, and threats) and an in-depth action plan for the next six to 12 months. Strategic plans are action-based and take into account the state of the company and the industry in which it exists.

Although a typical business plan falls between 15 to 30 pages, some companies opt for the much shorter One-Page Business Plan. A one-page business plan is a simplified version of the larger business plan, and it focuses on the problem your product or service is solving, the solution (your product), and your business model (how you’ll make money).

A one-page plan is hyper-direct and easy to read, making it an effective tool for businesses of all sizes, at any stage.

How to create a business plan in 7 steps

Every business plan is different, and the steps you take to complete yours will depend on what type and format you choose. That said, if you need a place to start and appreciate a roadmap, here’s what Cobello recommends:

1. Conduct your research

Before writing your business plan, you’ll want to do a thorough investigation of what’s out there. Who will be the competitors for your product or service? Who is included in the target market? What industry trends are you capitalizing on, or rebuking? You want to figure out where you sit in the market and what your company’s value propositions are. What makes you different—and better?

2. Define your purpose for the business plan

The purpose of your business plan will determine which kind of plan you choose to create. Are you trying to drum up funding, or get the company employees focused on specific goals? (For the former, you’d want a startup business plan, while an internal plan would satisfy the latter.) Also, consider your audience. An investment firm that sees hundreds of potential business plans a day may prefer to see a one-pager upfront and, if they’re interested, a longer plan later.

3. Write your company description

Every business plan needs a company description—aka a summary of the company’s purpose, what they do/offer, and what makes it unique. Company descriptions should be clear and concise, avoiding the use of jargon, Cobello says. Ideally, descriptions should be a few paragraphs at most.

4. Explain and show how the company will make money

A business plan should be centered around the company’s goals, and it should clearly explain how the company will generate revenue. To do this, Cobello recommends using actual numbers and details, as opposed to just projections.

For instance, if the company is already making money, show how much and at what cost (e.g. what was the net profit). If it hasn’t generated revenue yet, outline the plan for how it will—including what the product/service will cost to produce and how much it will cost the consumer.

5. Outline your marketing strategy

How will you promote the business? Through what channels will you be promoting it? How are you going to reach and appeal to your target market? The more specific and thorough you can be with your plans here, the better, Cobello says.

6. Explain how you’ll spend your funding

What will you do with the money you raise? What are the first steps you plan to take? As a founder, you want to instill confidence in your investors and show them that the instant you receive their money, you’ll be taking smart actions that grow the company.

7. Include supporting documents

Creating a business plan is in some ways akin to building a legal case, but for your business. “You want to tell a story, and to be as thorough as possible, while keeping your plan succinct, clear, interesting, and visually appealing,” Cobello says. “Supporting documents could include financial projects, a competitive analysis of the market you’re entering into, and even any licenses, patents, or permits you’ve secured.”

A business plan is an individualized document—it’s ultimately up to you what information to include and what story you tell. But above all, Cobello says, your business plan should have a clear focus and goal in mind, because everything else will build off this cornerstone.

“Many people don’t realize how important business plans are for the health of their company,” she says. “Set aside time to make this a priority for your business, and make sure to keep it updated as you grow.”

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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 in 30-Minutes

Posted may 15, 2024 by noah parsons.

Writing a traditional business plan can take hours, days, or even weeks. 

We recommend a simpler plan—a one-page plan—that you can complete in under an hour. 

Sounds too good to be true? 

We successfully used this easy business plan format to build LivePlan , and it’s a major reason why the product is so successful.

With a one-page business plan, we:

• Quickly documented our business idea
• Made fast changes as we refined our idea
• Optimized our business strategy
• Figured out what it would take to be profitable

You can do this, even if you’ve never written a business plan. The key is to stick to the structure I will teach you and not worry about perfection.

What is a one-page business plan?

A one-page business plan is a short and simple document that explains the main parts of a business idea. It fits on a single page and covers:

• What the business will sell
• Who it will sell to
• How it will make money,
• What makes it special compared to other businesses 

A one-page plan helps entrepreneurs like you quickly share your business idea and get feedback without spending too much time writing a long, detailed plan.

By focusing on a single page, you get to skip all the formatting, complete sentences, and paragraphs of text that most people don’t read. 

Instead, you’ll prioritize outlining your business strategy, the business model you’ll use to make money, and the marketing and sales strategies you’ll use to grow.

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What are the benefits of a one-page business plan? 

A one-page business plan is a great tool because it:

• Saves time by focusing on the most important parts of the business idea
• Makes it easy to quickly share and explain the idea to others
• Helps you spot potential problems or missing pieces early on
• Acts as a clear roadmap to guide the business as it grows
• Can be updated easily as things change and you learn more about your business and your customers

By keeping things simple and focused, a one-page plan will help you move forward without getting bogged down in too many details too soon.

The one-page plan format is also part of the growth planning process —an iterative process that helps you refine your business idea and quickly adapt as you build your business.

How to make your one-page business plan

Start by downloading our free one-page plan template and fill it in as you follow this guide.

When putting together your one-page business plan, the goal is to keep each section as short as possible. So, try to stick with bullet points and short sentences. 

Here is what you need to include, along with an example of a bike shop business plan I put together (using LivePlan) in just 27 minutes.

1. Value proposition

This section answers the question, “What does your business do?” 

Your goal is to communicate the value you provide to your customers in as few words as possible. Think of it like this—if you’re at a party and someone asks you what your business does, can you describe it in a single sentence? 

If you’re struggling to create your value proposition , you can always try using a simple formula like this:

We help [Target Customer] who want to [Customer Need] by [Unique Benefit/Solution] unlike [Competitors or Current Solutions].

Use what will work best for your business—just make sure you describe:

• What you are selling
• Who you are selling it to
• Either how you are different or what the customer needs are

For my bike shop example, I used an even simpler formula to create my value proposition. Here’s what that looked like::

We offer [Unique Benefit/Solution] for [Target Customer], unlike [Competitors or Current Solutions]

2. Problem worth solving

The next section of your plan expands a bit on the customer need from your value proposition. Customer need and “problem worth solving” are really the same thing and explain:

• What’s the problem you solve for your customers? 
• Why would they go out shopping for a solution? 
• Why does your business need to exist? 
• Why would they choose you over other alternatives? 

If you can’t answer these questions, try talking to your potential customers so you can get a strong understanding of the problems they are trying to solve and how your business can solve them. 

When you interview potential customers, you’ll discover what their real pain points are and how your products or services might fit into their lives.

Describing the problem your business solves is one of the most important sections of our business plan. Your business has to fill a real need for your customers or it will be very difficult to find success. 

In the bike shop example below, I explain that there aren’t good local bike shops focused on serving families.

3. Your solution

Next, describe your product or service and why it’s better than the alternatives. 

Essentially, what would your answer be if someone asked you what you sell? Your solution should address the market need that you described in the previous section.

In our bike shop example, I highlight that this shop is different from bike shops that focus mostly on serving serious cyclists.

4. Target market

Describe your ideal customer . Who are they? 

Be as specific as possible—age, gender, shopping habits, etc. 

If you target different types of people, create market segments for each group. List each segment and its approximate size, if you know it. 

If you don’t know the size, don’t worry about it—you can come back and do that research later. 

For our bike shop example, I listed the following target market segments.

Initially, I just listed the types of people I thought would shop at this kind of bike shop. Later, I figured out how many of each type lived in the city where the bike shop was located and added that information.

5. Competition

Every business has competition . 

Who do your customers buy from if they aren’t going to buy from you? What makes your business and products better than the alternatives out there?

You can either list specific businesses as competitors or just groups of businesses to cover the different types of competition. 

For the bike shop, I decided to use groups of businesses instead of listing out every bike shop in town.

6. Sales channels

These are the places where you will sell your products. 

If you’re selling online, your online store is a sales channel. If you also have a physical store, that’s another sales channel.

Many businesses are fairly simple and only have a single sales channel – that’s normal and fine. Don’t add more sales channels than you’ll actually have.

7. Marketing activities

What will you do to market your business ? 

If you plan on buying advertising, list the types of advertising you plan on doing here. Remember, different target markets might need different marketing activities to get your product in front of them.

Tip: If you’re unsure what marketing and sales channels are right for your business, use the LivePlan Assistant to generate recommendations and incorporate them into your plan.

8. Budget and sales goals

How much will it cost to run your business? What sales goals do you need to reach for your business to be a success? 

Don’t sweat the details to start; just think in broad strokes to get a rough idea of how your business will work financially . 

You can start by just listing your primary revenue streams and your major expenses. As you learn more about the details, you can start to add estimates for how much sales you’ll bring in and what your actual expenses will be.

Eventually, you’ll expand these broad estimates into a more detailed forecast , but initially just stick to high-level estimates.

For the bike shop, I started with simple lists of revenue streams and major expenses.

I later came back and added in details so I could calculate potential profits. With that information, I changed the list into a few simple charts to show my revenue, expenses, and profitability at a glance.

9. Milestones

What are the major tasks you need to accomplish to get your business up and running? 

Defining what to do and when will help you stay on track and meet your goals. 

For most businesses, you should focus on the near term and highlight what you want to accomplish in the next few months. Shorter-term milestones might include signing a lease on an office or designing your first prototype.

Other businesses may have very long research and development cycles and should map out key milestones for the next 12-24 months. These businesses might have milestones for getting regulatory approval or entering clinical trials.  

Regardless of the timeframe, assign a date and specific people to each milestone, so you have real responsibility and accountability.

Even if you’re starting out with just yourself as the only employee of your business, write a few quick bullets about why you’re the right person to run this business. 

If you need to hire key people in the future, list those positions as well, even if you don’t know who specifically will fill those positions right now. 

You also don’t need to include headshots, but there may be some value in putting a face to the name depending on your audience.

11. Funding needs

Nearly every business needs some money to get off the ground. Think about how much money you’ll need and how you plan on using it. 

Even if you’re starting your business with your own savings or using credit card debt, it’s a good idea to plan how you will use the funds until you start making sales.

If you don’t know how much money you need, just skip this section for now.

Remember, the goal is to get your initial plan done quickly. You can always come back to this section once you’ve had a chance to figure out what it will take to start and run your business.

Example of a complete one-page business plan

Let’s put all of those sections together to get a look at our full one-page plan.

See how easily you can understand my business without having to read a 40-page document?

While I used LivePlan to create this plan, you can start by downloading this free one page business plan template . 

4 tips to quick-start your business plan writing

To put together your business plan in 30 minutes, you’ll need focus and a willingness to let go of perfection. 

Here are a few tips to get you started:

• Don’t worry about the details—you can come back and fill those in later.
• Write what you know and skip what you don’t know. Don’t let a single section prevent you from getting to the rest of your plan.
• Know who your customer is—knowing who you are building your business for makes the rest of the process much easier.
• Skip the numbers at first, but don’t ignore them. Afterall, your business has to be sustainable eventually.

Remember, you likely won’t get your idea right the first time—you have to adapt and adjust to find the right formula. A one-page plan will make this process easier, but only if you commit to making it short and imperfect on your first attempt. 

What to do after completing your simple business plan

Now that you’ve saved all that time writing your business plan, what should you do next? 

With an initial plan in place, you’re primed to use a process known as growth planning that helps both startups and existing businesses grow more quickly and nimbly than their competitors. 

Here are the initial steps you can take to put your new plan into action and start growth planning:

Test your idea and revise your plan

It’s rare to get a business idea right the first time. Almost every business owner makes changes to their initial idea to become a successful, growing company. 

That’s why it’s important to test your idea early and make adjustments before you sink too much money into your business. 

There are plenty of ideas in the article linked above, but the core concept of validating your business idea is to go out and talk to potential customers and gather feedback. 

It doesn’t matter if you’re starting a tech company or a cookie business. Get your app design or your cookie samples into potential customers’ hands and hear what they have to say.

Once you have feedback, revise your plan. 

Your marketing or sales strategy might change, or perhaps you decide to change your overall value proposition. Either way, revise your plan and test again until you have a business model that works.

Expand into a more detailed business plan

The one-page plan is simple and effective, but there may be a time when you need to expand your plan. 

Lenders and potential investors may want to see a more detailed business plan or financial projections if only to prove that you’ve taken time to think through all the details of getting your business up and running. 

Or, maybe you just want to expand beyond the single page to make the plan more useful. This may include more robust market research, expanded financial forecasts, etc.

Luckily, by starting with a simple business plan format, you can easily expand on the necessary sections without having to start over. 

The real value in detailed planning is the process that you go through to create the plan. 

You’ll be forced to answer questions about your business that you might have been tempted to gloss over or ignore completely if you skip the planning process. 

If a detailed format sounds like the type of business plan you need, check out our step-by-step guide , and download a free template to fill out as you read.

Review your performance and adjust

Once your business is up and running, it’s important to set aside time to review your business performance. 

You’ll want to hold a monthly “plan review” meeting to go over your sales, expenses, and cash flow. The goal of the meeting will be to compare your actual performance to your plan and see if you’re on track financially.

Based on your performance, your sales goals might need to be adjusted or you might need to adjust your expense budget. During this process, you might change your business strategy,  use different marking and sales tactics, or pivot to try and sell to a different type of customer. 

Your one-page plan is a great place to document those changes and will help you track your progress toward your goals .

When you update your plan, you set new goals to strive for. You also ensure that your business strategy is documented and ready to share with new business partners, investors, and employees. 

I’ve found that sharing my company’s plan with employees improves transparency and gives everyone the big picture of what we’re trying to do. It ensures that everyone is moving in the same direction.

Free template and one-page planning tool

Ready to write your one-page plan?  Download our free one-page plan template . With that, you will be well on your way to a better business strategy, without all the time and hassle of drafting a lengthy business plan.

To elevate your ability to build a healthy, growing business, you should consider using LivePlan . It includes a one-page plan builder with a built-in AI Assistant to help generate ideas and draft sections of your plan. 

Plus, you get access to all the tools you need to build a complete financial forecast. 

When your business is up and running, you can keep using LivePlan to automatically track your actual results compared to your sales forecast, expense budget, and cash flow.

Try LivePlan today risk-free and start creating a business plan that is more than a simple document. 

How long does it take to write a business plan?

You can write a simple, one-page business plan in as little as 30 minutes. A detailed business plan may take a few days to complete, depending on how much research you need to do. 

Some of the most time-consuming parts of business planning are doing market research and gathering the information required to define your target market, revenue streams, and expenses. Using a good business planning tool will automatically create the financial reports you need, saving you time and effort.

How do I start a business plan?

The simplest way to start a business plan is to fill in what you know first—you can start anywhere that you’re comfortable. If you know the most about your product or service, start by describing it first. Then move on to describing your target customer. From there, working on your financial forecasts is a good place to focus on next.

How do I write a simple business plan?

To write a simple business plan your best option is to use the one-page plan format. It covers the essentials of a business plan in the most basic way possible while not excluding critical details. 

If you’re writing a detailed business plan, you can keep it simple by using bullet points instead of long paragraphs of text. Be sure to also write your plan for your audience and exclude sections of the plan that your audience doesn’t need. 

For example, if you’re writing an internal plan, your audience probably doesn’t need a section discussing company history and location.

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Noah Parsons

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• Business planning

How to write a business plan

24 April 2024

• More like this Less like this

If you're planning to launch a start-up or small business, this guide on how to write a business plan will help you create an effective road map to success. A thoughtfully researched, well-structured business plan can give you greater clarity on your business’s vision, help you avoid potential pitfalls and can help ensure you stay on track for your business goals. Read on to discover the essential elements of business planning, common mistakes to avoid, and business plan tips on how to make your plan compelling and ready for investors.

What is a business plan? Why is a business plan important? What to consider when writing a business plan? What to include in a business plan? Business plan formats How to write a business plan How to start a business plan What does a business plan look like? How long should a business plan be? Common business plan mistakes FAQ on creating a business plan

What is a business plan?

A business plan is a strategic document that details your business's objectives and the steps you’ll take to achieve them.

It is a tool that covers everything from your business strategy and key goals to financial projections and management structure. A business plan is also your opportunity to describe your company or proposed project in detail, showcasing both your short-term and long-term goals, budget details, and unique selling propositions (USPs).

Let's dive into understanding what a business plan looks like, why it's so important, and how you can create one for your business.

Why is a business plan important?

A business plan is important because it helps you create an effective plan for your new enterprise that allows you to make informed decisions, set clear goals, and manage your enterprise effectively.

The importance of a business plan becomes clear when you want to set your business apart from the competition.

Here’s how a business plan can help:

• Guidance and structure: A plan outlines your goals and strategies, providing a roadmap for your business.
• Attracting investment: It's essential for attracting investors and lenders who need to understand your strategy before funding it.
• Identifying strengths and weaknesses: Business plan writing helps identify potential pitfalls and strengths in your business idea.
• Planning for growth: Creates a strategy for facilitating future growth and expansion.
• Understanding your market: Includes research that helps you understand your target audience and competition.

What to consider when writing a business plan

When you write a business plan, there are important questions you need to consider.

Step 1. Understand your target market

The first step is understanding your target market. Who are they? What do they need? How will your product or service cater to these needs?

Your business plan should be designed to serve this audience. You’ll need to conduct thorough market research and include this data in your plan.

Step 2. Define your business goals

The second step is to clearly define your business goals. What do you want to achieve in the next year, five years, or ten years?

Having clear, measurable objectives will guide your business plan and help you stay focused on your end goal.

Step 3. Know your USP

Next, consider your unique selling proposition (USP). This is what sets you apart from the competition. Highlighting your USP in your business plan will not only help you stand out but also attract potential investors.

The financial aspect is another key factor. You need to have a clear understanding of your financial needs, cash flow projections, and profitability forecasts. This information is particularly important if you're seeking funding from investors or lenders.

Lastly, remember that your business plan is a living document. It should evolve as your business grows and changes.

Be prepared to review and update it regularly to reflect new goals, strategies, or market conditions. This flexibility will ensure that your business plan remains relevant and effective.

What should you include in a business plan?

When developing a business plan, it can be helpful to first look at business plan examples in your relevant industry. There is no fixed business plan template, but many plans will include the following elements:

1. Executive summary

Your business plan should start with a succinct overview of your plan that highlights the key points and creates a strong initial impression. It should be compelling enough to encourage readers to read further.

2. Company description

This section should provide an overview of what your business does, the problems it solves, and the market it serves.

3. Market analysis

The market analysis section requires a thorough understanding of your industry, target market, and competition. You should demonstrate knowledge of market trends, customer needs, and the competitive landscape.

4. Business goals

Define both your short-term and long-term objectives to provide a clear vision of where you want your business to be in the future. You can also describe how you plan to achieve these goals.

5. Products and services

You should describe what you're selling or what services you offer, highlighting how your offerings stand out from the competition.

6. Financial plan

You should include a detailed overview of your finances, including cash flow statements and profit projections. This section shows potential investors that you have a solid understanding of the financial aspects of running a business.

Your business plan is a marketing document. It should be concise, engaging, and persuasive, convincing potential investors, partners, and employees of the viability and potential of your business.

Business plan formats

Business plan format can vary depending on industry. For instance, a restaurant's business plan might feature a sample menu and location demographics, while a tech start-up may focus on development timelines and patent protections.

A small business plan is likely to look very different to a large business plan. Tailor your business plan to your specific industry and business type.

The complexity of your business plan might also depend on its purpose. If you're seeking significant investment, you'll need detailed financial projections. However, if the plan is mainly for internal use, you might focus more on strategy and team organisation.

In short, while there are common components in every business plan, the specifics can vary widely. Ensure your business plan is relevant to your industry, audience, and business needs.

Writing a business plan requires research and attention to detail for each section. Below, you’ll find a 9-step guide for researching and defining each element in the plan.

• Write an executive summary
• Draft a business description
• Conduct market analysis
• List your management and organisation structure
• Outline services or products
• Define your marketing and sales strategy
• Describe your funding needs
• Plan financial projections
• Appendix of supporting documents

1. Write an executive summary

This is a brief overview of your business plan. It should include your business’s name, location, and the products or services you offer. Also mention your mission statement and your business’s USP (unique selling proposition). Remember, the executive summary should be concise yet compelling, persuading the reader to learn more about your business.

Your executive summary should include:

• Business concept: What does your company do? What are your products or services? This section should clearly articulate your business’s core concept.
• Company information: Include the company’s name, when it was founded (if applicable), the names of the founders and their roles, the team and size, and location of premises.
• Growth highlights: If your business is already established, describe how much it has grown since inception, including financial or market highlights.
• Products/services: Describe what you sell or the service you offer. Explain how it benefits your customers and what makes it unique to the market.
• Financial information: If you’re seeking funding from investors, include a brief overview of your projections and what you’re asking for.
• Future plans: Summarise where you plan to take your business in the future. This could include potential growth, new products or services, or expansion into new markets.

2. Draft a business description

Describe your business in detail. Include the business structure (sole trader, partnership, limited company), the nature of your business, and the marketplace needs that your business aims to fulfil.

3. Conduct market analysis

This is where you demonstrate that you understand your industry and market. Include information about your target customers, including their demographics and buying habits. Also analyse your competition, outlining their strengths and weaknesses.

What else to include:

• Industry overview: This gives a broad view of your industry. You can include its size, growth rate, trends, and outlook.
• Target market: Identify who your customers are. You should define them by demographic factors like age, gender, income level, and geographic location. Also consider psychographic factors such as lifestyle, values, and attitudes.
• Market need: Determine what problem your product or service solves for your target market. This could be a gap in the market, an unfulfilled need, or an improvement on existing products or services.
• Competition analysis: Identify your direct and indirect competitors. Analyse their strengths and weaknesses, and how your business compares.
• Pricing and forecast: Set your pricing strategy based on your understanding of the market and competition. Include a forecast for your potential market share and sales.
• Regulatory environment: Understand any laws or regulations that could impact your industry. This includes permits, licenses, or regulatory compliance requirements.
• SWOT analysis: Identify your business's Strengths, Weaknesses, Opportunities, and Threats (SWOT). This helps you understand your business's position within the marketplace.

4. List your management and organisation structure

Outline your business's organisational structure. Identify the owners, management team, and any key employees. Include an organisational chart if possible.

5. Outline services or products

Describe what your business offers. If you sell products, explain how they are produced, their cost, and how you will sell them. If you provide services, describe them in detail, and list any associated costs.

6. Define your marketing and sales strategy

Detail how you plan to attract and retain customers. Include your sales strategy and the marketing channels you plan to use. Here's what it should include:

• Target market: Define who your customers are - their demographics, behaviours, and needs – and what kinds of marketing message they are likely to respond to. This will guide your marketing efforts.
• Unique selling proposition (USP): Identify what makes your product or service unique. How does it stand out from the competition? How will you convey this in your marketing?
• Pricing strategy: Explain how you have priced your products or services and why this will appeal to your target market.
• Sales plan: Detail how you'll sell your product. Will it be online, in a physical store, or both? Will you have a sales team? How will you bring your business to the target market?
• Promotional strategy: Describe how you will promote your business. This could include social media marketing, SEO, content marketing, advertising, public relations, and more.
• Retention strategy: Outline how you plan to keep your customers coming back. This could involve excellent customer service, loyalty programs, regular updates or improvements to the product or service, etc.
• Partnerships and collaborations: If applicable, discuss any partnerships or collaborations that will play a role in your marketing and sales plan.
• Measurement: Define how you'll measure the success of your marketing and sales efforts. This could be through key performance indicators (KPIs) like website traffic, conversion rates, customer acquisition cost, customer lifetime value, etc.

Your marketing and sales strategy should be flexible. As you learn more about your market and customers, adjust your strategies accordingly.

7. Describe your funding needs

If you are seeking investors or applying for business loans, you should include a funding request section within your business plan. It should include:

• Funding request: Start with the exact amount of funding you are seeking. Be clear and specific.
• Use of funds: Explain in detail how you plan to use the funds. This could be for starting costs, working capital, business expansion, or any other business expenses.
• Future funding: If you anticipate needing additional funding in the future, mention this. Provide an estimate of how much you might need, when you might need it, and what for.
• Business financials: Provide a snapshot of your financial statements and forecasts. Include your income statement, balance sheet, cash flow statement, business loans, and any other relevant financial data.
• Exit strategy: If you're seeking equity investment, describe your exit strategy. This could be selling the company, merging with another company, or going public with an IPO (initial public offering).
• Repayment plan: If you're requesting a loan, outline your plan for repaying it. Provide a schedule and method of repayment.

When considering where to secure funding, it's essential to explore your options. You may want to consider our app-based HSBC Kinetic Current Account for sole traders and single director shareholder businesses, or our Small Business Bank Account for small enterprises. Eligibility criteria apply.

Both accounts are designed to support the growth and financial management of your business. These platforms provide a range of services that cater to your business's needs, from daily transactions to long-term financial planning.

8. Plan financial projections

Provide a forecast of your business's financial future. This can include balance sheets, income statements, and cash flow statements for the next three to five years. Consider incorporating HSBC Kinetic into your financial planning for a comprehensive and digital-first approach to managing your business finances. Eligibility criteria apply.

Here are examples of what to include:

• Sales forecast: This is the amount of money you anticipate from sales of your products or services. It should be broken down monthly for the first year, then annually for the following two to five years.
• Income statement (profit and loss statement): This document shows your business’s profitability over time. It should include revenue, costs of goods sold, operating expenses, and net income.
• Cash flow statement: This demonstrates where your business is earning and spending money by highlighting how balance sheets and income affect your cash or cash equivalents.
• Balance sheet: This document provides a snapshot of your business's financial position at a particular moment in time. It lists your assets, liabilities, and equity.
• Capital expenditure budget: If there are large expenses for long-term assets such as property or equipment, these should be detailed here.
• Break-even analysis: This analysis shows when your company can cover all the expenses and make a profit.
• Financial ratios: These ratios compare financial metrics from your financial statements to assess your company’s financial health. They can provide valuable insights into how well the company is performing.

Your projections should be realistic, with all assumptions clearly stated. If you're a start-up with no financial history, base your projections on research and industry averages. If you're an existing business, use your past financial performance as a guide.

It can be beneficial to seek professional advice when preparing this section of your business plan, as it will be scrutinised by investors and lenders.

9. Appendix of supporting documents

An optional section that includes any additional supporting documents such as legal documents, permits, and contracts.

Writing a business plan is not a one-time event. It should be updated regularly as your business grows and changes.

How to start a business plan

Starting a business plan generally involves seven practical steps and may require consultation with other professionals. Here's a step-by-step guide on how to start:

Understand the purpose of your plan:

Research your industry:, outline your plan:, write the plan:, review and edit:, get feedback:, finalise your plan:.

Here are some people you might want to talk to when you write a business plan:

• Industry peers or mentors: People with experience in your field can provide valuable insights and advice.
• Business advisors or coaches: These professionals can offer guidance and help you avoid common pitfalls.
• Accountants: They can assist with the financial aspects of your plan, including projections and identifying potential costs.
• Potential customers: Speaking with your target audience can help you understand their needs and preferences, which can inform your marketing and sales plan.
• Legal advisors: If your business has any legal considerations, such as patents or regulations, a legal advisor can ensure these are properly addressed in your plan.

A business plan isn't a static document - it should evolve with your business. Regularly updating your plan can help you adapt to changes and stay on track towards your goals.

How long should a business plan be?

The recommended length of a business plan can vary depending on the complexity of your business model and the purpose of the plan. However, a typical business plan ranges from 15 to 35 pages.

What does a business plan look like?

Your business plan can and should be branded to reflect your business identity. Here's how:

Cover page:

Headers and sub-headers:, colour scheme:, images and graphics:, tone of voice:, consistency:.

Your plan is a reflection of your business. By incorporating your brand into the design, you're not just creating a strategy document - you're showcasing your business's identity.

FAQ on creating a business plan

You may have many questions when creating your new business plan. Below we look at some of the common ones.

How much information should I include in my business plan?

Your business plan should be concise yet comprehensive, providing all the necessary information. The length might also depend on whether you're writing the plan for internal use, for potential investors, or for a loan application, as each audience might have different expectations.

It can be helpful to mark out which sections are for which audience, so that you can edit into a new document as required, rather than starting a new business plan from scratch.

What is the proper business plan format?

Printed versions of your business plan should be on standard A4 paper, bound neatly, and presented in a professional manner. All electronic versions should be in a PDF format and have a clear file name for ease of sharing.

The layout should be clear and easy to navigate, with headers, sub-headers, bullet points, and plenty of white space to make the document easy to read.

Common business plan mistakes

There are common mistakes that businesses can make when writing a plan. These include:

Lack of planning:

Wrong audience:, it’s too long:, insufficient market research:, unrealistic financial projections:, not addressing potential risks:, poor grammar, spelling, and punctuation:, unclear business model:.

Writing a business plan may seem like a daunting task at first, but with careful planning, thorough research, and thoughtful consideration of each section - from the executive summary to financial projections - you can create a powerful document that serves as a roadmap for your business's success.

Business plan template

Remember, a business plan is not a static document. As your business grows and evolves, so too should your business plan. Regular reviews and updates will ensure your plan remains relevant and continues to guide your strategic decision-making.

Whether you're seeking investment, planning for growth, or simply setting the course for your day-to-day operations, a well-crafted business plan is an invaluable tool for every business owner. With the advice and guidance provided in this guide, you're now well-equipped to create a robust and compelling business plan.

HSBC Business Bank Accounts

When Should You Write a Business Plan?

Noah Parsons

11 min. read

Updated May 10, 2024

When’s the right time to write a business plan? My favorite answer is from this proverb:

The best time to plant a tree was 20 years ago. The second best time is now.

Things are changing for business owners at a much faster rate. There’s an increasing level of uncertainty about the future and in order to survive and grow you need to plan now and plan often. The right kind of business planning is something that happens regularly and continues forever.

That’s because business planning is not just about producing a document. Instead, planning is an ongoing, repeating process that helps your business grow healthily. You create a strategy, build budgets, and set goals so that you can measure your progress and make changes when you need to.

Much like the proverb about the tree would imply, planning can be hard to get started. But if you understand the basics of the planning process it can be much easier than you’d think.

• When should you write a business plan?

As I said in the introduction, there’s really no wrong time to write a business plan. Whether you have a new business idea or your business has been up and running for years, putting together a plan is beneficial and necessary . 

The real question is, what kind of planning should you do for the stage your business is in? Should a five-year-old business use the same business plan template as a new startup? 

The answer is no. Planning isn’t one-size-fits-all. It’s about finding the right size plan for your business stage and needs.

Here are some common times when you should create a plan for your business along with recommendations on the right kind of plan for each specific situation:

When you have a new idea for a business

Figuring out if you can turn an idea into a business can be challenging. 

Are your potential customers going to want what you are selling? Will you be able to make a profit? How much money will you need to get off the ground? What do you need to turn your side hustle into a full-time gig? At this stage, the most important thing you can do is write down a quick summary of your business idea using a one-page business plan . This will help you think about who your customers will be and create a rough sketch of what your business numbers look like. You can use a one-page plan to test your assumptions. 

Are your customers who you think they are? Will they be willing to pay what you want to charge? 

As you gather information, you can quickly revise your plan until you have a business plan and business model that works for turning your idea into a business. This kind of planning will help reduce your risk and get you started the right way, without investing too much time in the planning process.

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When you’re starting a business

If you’ve found product-market fit for your business idea, you’re ready to turn it into a business. You have evidence that your business fills a real need for customers and they’re willing to pay for your solution. This is when a more detailed business plan is useful. You’ll focus on building out revenue forecasts and more detailed expense budgets. This will help you understand what it’s going to take to get your business off the ground and sustain it through the early days. You’ll also expand your business plan to define your target market, detail your marketing and sales strategies, and solidify your operational plans.

When you’re seeking funding

If you need funding to get your business off the ground, you’ll need a thorough business plan with complete financial forecasts . Whether you’re seeking a loan or looking for investors—you’ll need to understand exactly how much money to ask for and how long that money will last as your business grows. 

This is where having a cash flow forecast in place pays off. With this forecast, you can predict how much money you’ll need and when you’ll need it. Investors may never ask to see your actual business plan. But, they’ll definitely ask questions that you’ll only be able to answer if you’ve put one together. 

They’ll want to know about your target market and market size, details about your competition, your sales and marketing plans, and more. This is all in addition to your financial forecasts. If you’re looking for a loan, many lenders require a business plan as part of the loan application process. Having a polished and impressive plan can even help with the loan process, even though loans are most often made based on the collateral you have rather than the quality of your business idea.

When business conditions are changing

We live in a world of uncertainty. Supply chains get disrupted , the labor market changes, and the price of materials is always shifting. If you think your industry or your market is headed for a significant shift, it’s a good idea to make sure you have a plan in place. This kind of planning focuses on a shift in strategy. Will your marketing and sales strategies change? What expenses will you shift around? How will potential changes in future revenue impact your business and do you have the cash on hand that you need to weather the changes? Planning for change often involves running different financial scenarios and documenting different strategic directions your business may take. Having an initial business plan to base these adjustments on will make the process easier.

When you’re growing your business

Growth should certainly be celebrated, but it often comes with its own significant challenges. For businesses that make and sell products, managing inventory and handling rapidly increasing orders can create a cash crunch. That’s where planning for growth comes in, specifically focused on cash flow . The right kind of planning will help you ensure that you can handle fast growth and give you the time to line up any additional funding you need— before you need it.

When you want to run a healthy business

Most people think of business planning only when they’re starting a business or seeking funding. The reality is that it’s a crucial component of running a business. Just like with personal finance, it’s important to have a budget and revenue goals and then track how things are going on a regular basis. This kind of ongoing planning —where you build a financial forecast and budget and then track your progress as you go—helps you spot problems before they happen and find opportunities for growth that you might have missed. This planning is called growth planning and helps you run your business better.

When you’re buying or selling a business

If you’re buying a business, you’ll want to get a good look at the books before you make a purchase decision. You can use the business’s accounting data and historical performance to create forecasts for future profits and cash. And, if you plan on investing more into the business, you’ll need a plan to know when you’ll be able to recoup your investment. If you’re selling a business, a strong business plan is a valuable sales tool. The business plan explains to prospective buyers how the business works and what the buyer can expect regarding revenue, profits, and cash flow. The more clearly laid out your business operations and performance are for the buyer, the smoother your exit will be.

• Is there a best time to write a business plan?

As an entrepreneur, you have a vision for your business and the drive to turn that vision into a reality. A business plan can certainly help with that. But when is the best time to write one? The answer, like so many things in business, is that it depends.

A recent Harvard Business Review study found that business planning had the most positive impact on businesses when the business plan was written between 6 and 12 months after deciding to start a business. In fact, planning at this stage increased the chances of success by 8%. 

I’ll add a caveat to this study, though. The study did not look at the types of business plans that were written at the different stages of business. 

If all of the business plans were in-depth, comprehensive, and detailed, they certainly wouldn’t have as much impact at the idea stage as they have later on in the startup process. Doing detailed planning a bit later in the game makes sense. Detailed planning early on is really a waste of time.

That’s why we recommend a different approach: start with a simple one-page business plan in the beginning, and then expand to a more detailed plan only as you need it. 

After you’ve validated your business idea and are in startup mode, a more detailed plan makes sense. You need to explore and understand your operational plan , detailed marketing plan, budgets, and financial forecast.

When you’re fully up and running with a business model that works and a few years of experience under your belt, your planning may simplify again . Planning for established businesses tends to focus mostly on financial management and less on documenting target markets and operations. 

This type of flexible and right-sized planning is most likely to have a positive impact throughout the lifecycle of your business. So, instead of waiting for the exact right time to start planning, start with the right kind of planning based on your business stage.

• When can you skip writing a business plan?

There are some situations where writing a business plan may be unnecessary. For example, if you’re starting a very small, simple business that doesn’t require any kind of significant investment, you might be able to get by without a formal plan. 

However, even in these cases, it’s still a good idea to take the time to think through your business and write down your goals and strategies. A one-page plan is perfect for these situations and won’t take long to write.

• How long should you spend writing your plan?

The amount of time you should spend writing a business plan depends on several factors—including the size and complexity of your business, and how much detail you need in your plan. On average, it can take anywhere from several weeks to several months to write a comprehensive business plan.

That said, planning doesn’t have to take that long and shouldn’t for most businesses. In fact, a useful one-page plan can be put together in under an hour . You can then add more detail in as little as a day. Then plan to expand your plan as you go, based on what you’ve learned from actually building your business.

Just don’t get too bogged down in the details of planning. The goal of a business plan is to help you focus on what’s important and give you a roadmap for success, not to create a document that will sit on a shelf and collect dust. 

So, spend enough time to create a useful plan. Don’t get so caught up in the process that you lose sight of your ultimate goal: building a successful business.

A final word of warning: don’t fall into the trap of letting planning go on for months. 

Any time spent planning beyond 3 months is generally a waste of time because your information gets stale. You also miss out on building your business and learning what does and doesn’t work. You’re just stuck in a planning cycle without any results to review and build upon.

• The ideal time to write a business plan is now

Writing a business plan can be a valuable tool for entrepreneurs at any stage of their journey. The key is to write the kind of plan that your business needs for the stage your business is in.

Planning should always start small: What problem are you solving ? Who are you solving it for? Can you make money doing it?

If you can start to answer these questions, you have a business that can work. From there, flesh out the details as needed. If you’re raising money, you’ll need a more detailed plan. If not, focus on a plan that has the details you need to help you achieve your goals. 

Whether you write your plan before opening your doors or after you’ve been in business for a while, the important thing is to have a plan that you use to guide your business to success. A good business plan is all about good management—and that’s what all long-lasting businesses need.

If you need additional guidance, check out our roundup of the best free business plan templates .

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.

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When Should Entrepreneurs Write Their Business Plans?

• Francis J. Greene
• Christian Hopp

Don’t write a plan before you understand your customer.

It pays to plan. Entrepreneurs who write business plans are more likely to succeed, according to research. But while this might tempt some entrepreneurs to make writing a plan their very first task, a subsequent study shows that writing a plan first is a really bad idea. It is much better to wait, not to devote too much time to writing the plan, and, crucially, to synchronize the plan with other key startup activities.

It pays to plan. Entrepreneurs who write business plans are more likely to succeed, according to our research, described in an earlier piece for Harvard Business Review . But while this might tempt some entrepreneurs to make writing a plan their very first task, our subsequent study shows that writing a plan first is a really bad idea. It is much better to wait, not to devote too much time to writing the plan, and, crucially, to synchronize the plan with other key startup activities.

• FG Francis J. Greene is Chair in Entrepreneurship in the University of Edinburgh Business School.
• CH Christian Hopp is Chair in Technology Entrepreneurship in the TIME Research Area, the Faculty of Business and Economics, RWTH Aachen University.

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

Updated 26 June 2024 • 12 min read

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

What is a business plan?

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

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

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

Download your free business plan template .

Why write a business plan?

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

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

What are the main sections of a business plan?

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

An executive summary

A business overview

The market opportunity

Your products/services

How to write a business plan

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

1. Write an executive summary

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

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

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

What to include in an executive summary?

Make sure you include details on:

What your business does

What the opportunity is

What your unique selling points / differentiators are

How much funding you’re looking for

What the funding will be used for

How you'll succeed

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

2. Write your business overview

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

Information to address includes:

What's the purpose of your business?

What problem does your business’ product or service solve?

What niche could it fill?

What’s different about your offering?

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

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

3. Identify your USP

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

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

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

4. Describe the market opportunity

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

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

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

5. Include a SWOT analysis

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

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

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

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

6. Present a competitor analysis

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

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

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

7. Create a customer persona

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

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

8. Write your marketing strategy

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

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

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

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

9. Design your customer retention strategy

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

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

Does your business have a referral or loyalty program? 

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

Will you use surveys to track customer satisfaction?

What ways can you continue delivering outstanding service?

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

10. Present your financials

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

Current finances

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

Financial forecasts

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

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

11. Detail how much funding is needed

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

12. Propose an exit strategy

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

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

Frequently asked questions about writing a business plan:

When to write a business plan.

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

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

How long should your business plan be?

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

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

What’s a business plan on a page?

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

What do venture capitalists look for in a business plan?

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

Where to go for help or more information?

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

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

Related Guides

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

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How Long Does It Take to Write a Business Plan?

Ideally, a traditional business plan can take just a few hours or maybe days to put together. And although there’s nothing wrong with taking as much time as possible, it is better if you already know what you are doing and have the data you need. Notably, it is possible to write your initial business plan in under an hour; however, it depends on how quickly you can answer the most pressing questions, and access some data to back up your assumptions.

If you have a perfect understanding of the business you want to venture into, then it should not take you more than 2–3 hours to get your initial and basic business plan done. From there, it can take you extra 2 hours every month to review and readjust it. You keep a basic plan at the core and as you have to present to outsiders – such as investors or bankers – you inculcate fresh summaries and text descriptions that are extra to your core basic plan.

Have it in mind that a Business Plan is a constantly evolving document so in reality it is never finished. It is your guide to doing business and since every Business Plan is different, it is better not to be tempted to use those many online programs that promise to make writing your business plan as simple as nursery rhythms.

Putting together your business plan should involve a deep reflection of every part and detail of your idea. Sometimes, it even takes seasoned professionals between 3 and 6 months to write a plan after collecting all the information necessary. In short, with most answers and data sorted, working full time, 10 days sounds right. However, business owners wear many hats, so setting aside 10 whole days is a big request, so, safely a month.

Dedicating a little time to research and planning before starting your business reduces the risk that you will lose money and make business mistakes. Your plan will help you find out if your business can indeed generate revenue and various other things that you really need to make it successful. Indeed, you could jump right in and start your business without a plan, but it is much more likely that you’ll waste time, money, and resources—unless you have a plan.

Components of a Good and Workable Business Plan

First and foremost, note that a plan is mainly measured by its readability and summarization. A good business plan is meant to leave a reader with a good general idea of its primary contents even after only a quick glance. Format, headings, white space, and illustrations all tend to make a huge difference. Summaries are very critical and the main points should show up in a business plan as quickly as they do in a business presentation. Nonetheless, here are the basic components of a good business plan .

Executive Summary

When putting together a workable business, note that your executive summary is expected to appear first. This is the section that summarizes everything you expect your business to accomplish. Since it is meant to express what you intend to discuss in the rest of the plan, experts suggest that you write this section last.

Also, note that a good executive summary is enticing. It extensively tells the company’s mission statement, along with a short description of its products and services.

Market Analysis

Note that this is where you are expected to show that you have a concrete understanding of your business industry and the specific market you intend to enter. This is the section where you have to substantiate the strengths that you highlighted in your company description with data and statistics that extensively explain your industry trends and themes.

You will also have to show what other businesses are doing and whether they are succeeding or failing. Note that your market analysis should also help visualize your target customers — how much money they make, what their buying habits look like, which services you think they want and need, etc. In addition, the numbers should help answer why your business can do it better.

Company Description

This section includes all vital information about your business, goals, and the target customers that you intend to serve. Also note that this is where you describe why your company stands out from other competitors in the industry and break down its strengths, including the services or solutions you offer customers, and the competitive advantages that will offer your business an edge to succeed.

Description of Management and Organization

Your business plan is expected to outline how your organization is set up. You will have to introduce your company managers here and summarize their skills and main job responsibilities. Note that a simple way could be to use a diagram that maps out your chain of command.

Also remember to indicate whether your business will operate as a partnership, a sole proprietorship or a business with a different ownership structure. If you have a board of directors, this is where you have to identify the members.

Competitive Analysis

Every good business plan needs to showcase a clear comparison of your business vs. your direct and indirect competitors. Note that this section is where you show your knowledge of the industry by breaking down their strengths and weaknesses.

Always remember that the end goal is to show how your business will meet up in the market. And if there are any issues that could limit you from venturing into the market, like high upfront costs, this is where you will have to be plain. Your competitive analysis will go in your market analysis section.

Breakdown of Your Products and Services

Although your company description is an overview, a detailed breakdown of your products and services is meant to provide a direct but extensive description of the products that you are creating and selling, how long they could last and how you intend them to meet existing demand.

Note that this section is where you are expected to mention your suppliers, as well as other key information about how much it will cost to make your products and how much money you intend to generate also. Ensure to also list all relevant information pertaining to patents and copyright concerns here as well.

Sales Strategy

This is where you are expected to answer how you intend to sell the products that you are producing or offer the services that you intend to bring to the market. Note that your sales strategy is expected to be specific. Ensure to carefully break down how many sales reps you will need to employ and how you intend to recruit them and bring them on board. Also, make sure to include your sales targets as well.

Marketing Plan

Have it in mind that this is where you explain how you intend to get your products and services into the market and also reach your target customers . In this section, break down the steps that you will take to promote your products and the budget that you will need to implement your strategies.

Request for Funding

If you also need external funding, this section is where you have to focus on the amount of money you need to build your business and how you intend to leverage the capital that you are looking for. You should consider including a timeline here for additional funding that you require to complete other crucial projects.

Financial Projections

Note that this is the final section and where you explain the financial goals and expectations that you have set based on market research. This is the section where you report your anticipated revenue for the first 12 months and your annual projected earnings for the second, third, fourth and fifth years of business. However, if you intend on applying for a personal loan or a small business loan, you can always add an appendix or another section that offers extra financial or background information.

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How Long Does It Take to Write A Business Plan? Well, It Depends.

You've been thinking about this for a decade. You are going to open the perfect coffee shop. You've worked at three different cafés in the last nine years (four if you include the one where they didn't have a POS and you only lasted a week). Your list of what-not-to-do is as long as your list of to-dos. You even have your eye on a spot with great sidewalk seating. You bought some rad chairs last month and have them stored in your cousin’s garage.

But you know that starting a coffee shop is expensive, and you’re going to need more money than you have saved. So the first thing you think to do is call your bank, and the first thing they ask you is if you have a business plan. You pause, and for a split second, you think to reply, “Yeah, my plan is to open a café.” But you're smarter than that, and you know that can't be what she's asking. “Um,” you say, formulating your thoughts, “I’m still working on the formal plan. Will I need that ready for next month’s meeting?” The banker says yes, and you start to sweat.

So after hanging up, you Googled “how long does it take to write a business plan,” and that brought you here. And now you’re waiting for us to get to the point and finally tell you the answer. First, take a deep breath. You got this.

What Is a Business Plan?

Let’s start with a simple definition:

A business plan is a document that describes a company's objectives and its marketing, financial, and operational strategies for achieving them.

Depending on the needs of your business, the length of your plan (and the time needed to create it) will vary. But one thing is certain: your business plan should be written with the audience in mind, and the closer you are to opening your business, the more details and specifics they'll want to see.

A business plan should not only be a guide for you but also be a way for you to share your vision with others. And a business plan isn’t just for startups; it should be a living document that is flexible and can expand to meet your needs.

However, keep in mind that not every type of business plan is useful when it comes to obtaining a bank loan, but we'll get to that later. First, let's go over the four different kinds of business plans and what they're used for.

The Back-of-Napkin Business Plan

Time consideration.

30 minutes to 1/2 day

Key Elements

Ideation and initial thoughts.

This type of business plan is all about spontaneity and creativity. It's where the business owner jots down initial thoughts, market analysis, potential customers, and even a rough financial projection. It's a free-flowing brainstorming session that captures the essence of a business idea.

The Spontaneity of Ideas

The Back-of-Napkin Business Plan thrives on spontaneity. Whether you're an aspiring small business owner or an experienced entrepreneur, this plan allows you to explore your business goals, target market, and competitive advantage without the constraints of a formal business plan format.

Application and Use

Capturing inspiration.

Capturing inspiration is vital for crafting a good business plan. It's about recognizing a good idea when it strikes and having the foresight to jot it down. This plan is not about detailed industry analysis or a polished executive summary. It's about the raw, unfiltered vision that could become a success story.

Part of the Process

Writing a business plan is an iterative process. No one sits down the day they come up with a new business idea and just cranks out a full business plan. The Back-of-Napkin Business Plan is that beginning step. It may lead to a more solid business plan, complete with a company description, mission statement, business model, and company overview, or it may inform you what market research is necessary to pursue. But no matter what comes next, the Back-of-Napkin Business Plan is a stepping stone towards achieving your entrepreneurial dreams.

Audience: Yourself, Trusted Friends & Family

The audience for this plan is limited to yourself and perhaps a few trusted friends or family members. It's not meant for a potential investor or the Small Business Administration. It's a personal, intimate document that serves as a starting point for your business planning.

The Lean Business Plan

1/2 day to a week

The Lean Business Plan represents a significant step forward in the business planning process. It's more structured than the Back-of-Napkin Plan but retains a sense of flexibility and agility. This plan typically takes anywhere from half a day to a week to complete, depending on the complexity of the business idea.

Unique Value Proposition

At the heart of the Lean Business Plan is the Unique Value Proposition. This is where you define what your business is trying to accomplish, the problem it will solve, and who it will solve this problem for. It's a concise statement that encapsulates the essence of your business and sets it apart from competitors.

Goals, Timelines, and Metrics

The Lean Business Plan is about setting clear goals, timelines, and metrics. It's a roadmap that guides you from where you are to where you want to be. It includes considerations for finances, potential competition, and strategies for finding your first customers.

Flexibility

Unlike more detailed plans, the Lean Business Plan thrives on flexibility. Bullet points, simple charts, and concise language make it a living document that can adapt to changes and new insights.

Defining the Business

The Lean Business Plan helps you articulate your business idea in a more formal way. It's about getting the idea out on paper, exploring how much money you'll need, where you could get those resources, and how you'll find your target market.

Collaboration and Feedback

Share your plan with someone you trust, like a friend or family member, to gain perspectives and enhance collaboration. The more collaboration, the better the plan becomes.

A Tool for Vision Sharing

Once you have your Lean Business Plan, it becomes a perfect tool to share your vision with possible business partners. It gives you a sense of what you know, what you need to know, and the next steps to take.

Audience: Yourself, Potential Partners, Advisors, Internal Strategy

This plan is meant for a broader audience than the Back-of-Napkin Business Plan, including potential partners, advisors, and as an internal strategy document. It's a tool to share your vision and gain insights from others. 

The LeanPlus Business Plan

A week to 2 weeks

10-12 Pages

The LeanPlus Business Plan is a document that combines clarity and conciseness with a high-level overview of the business, including simple financials. This plan is designed to be presented to landlords, pre-seed investors, vendors, and partners. But how long does it take to write a business plan of this nature? The time consideration for the LeanPlus Business Plan ranges from a week to two weeks.

Clarity & Conciseness

The LeanPlus Business Plan emphasizes clarity and conciseness. It provides a high-level executive summary and includes a simple Profit & Loss Statement. Unlike the Lean Business Plan, the LeanPlus Business Plan should be a narrative document with key headers for organization. It's a document that's prepared for an outside party to read, offering a clear and concise overview of the business idea, target market, and financial projections.

High-Level Overview

This plan offers a high-level overview of the business, addressing key aspects such as the problem or opportunity, product or service features, marketplace, target customers, revenue model, and management team. It's a snapshot of the business that provides essential information without delving into excessive detail.

Simple Financials

The financial aspect of the LeanPlus Business Plan is simplified, focusing on expected revenue, Cost of Goods Sold, and key expenses like marketing, rent, and utilities. However, it's worth noting that for pre-revenue companies, especially those in a development phase like SaaS, the financial forecast may not include revenue forecasting at all. Instead, they may opt for a cash burn analysis, which measures the rate at which the company spends its cash reserves, or a burdened cash flow analysis, which provides a comprehensive view of how money will be spent over time, including all associated expenses.

Presenting to Outsiders

At some point during the business planning process, you will almost certainly need to present your vision to outsiders. The LeanPlus Business Plan serves this purpose, providing a more professional document that offers a general overview of the business. It's a tool for sharing your vision and securing support from key stakeholders.

A Professional Document

The creation of the LeanPlus Business Plan is a professional endeavor. It requires careful consideration of the content, structure, and presentation. The LeanPlus Business Plan bridges the gap between the initial ideation and the detailed Traditional Business Plan. It's a document that reflects the entrepreneur's evolving understanding of the business, the market, and the path to success. It's a tool for communication, collaboration, and progress, aligning with the goals of the business owner and the expectations of potential investors and partners.

Audience: Landlords, Pre-Seed Investors, Vendors & Partners

The LeanPlus Business Plan is tailored for landlords, pre-seed investors, vendors, and partners. It's a document that conveys the essence of the business without overwhelming the reader with complexity. It's suitable for presenting to stakeholders who have a vested interest in the company's success but don't require exhaustive detail.

Traditional Business Plan

1 month to 12 months

40 to 60 pages

The Traditional Business Plan is the most comprehensive and detailed of all business plans. It's the tool you need when you want to confidently convince someone to share their money with you, and it's also useful for setting key goals and tracking your progress as your business grows. 

Cited Market Research

The Traditional Business Plan is characterized by its thoroughness. It covers a lot of the same topics as the Lean and LeanPlus Business Plans but in much more detail. It requires meticulous market research and citation, adhering to an established business plan outline.

Pro Forma Financials

This plan includes a full financial projection, with a detailed five-year revenue forecast and key financial statements such as the Balance Sheet and Profit & Loss Statement. It's a comprehensive financial plan that provides potential investors, banks, and other stakeholders with a clear understanding of the business's financial forecast. A full financial model typically comprises 12-15 pages of the document.

Demonstrates Deep Understanding

The Traditional Business Plan is a comprehensive document that requires careful planning and consideration. It's not merely a written document but a strategic roadmap for the business. This plan demands a deep understanding of various aspects, including the industry, the target customer (and a marketing strategy for reaching them ), and a full competitive analysis that includes a profile of each key competitor and your competitive advantage.

Not Done In One Sitting

Creating a Traditional Business Plan is an iterative and time-consuming process. It's not something that can be done in one sitting. Instead, it requires continuous drafting, thinking, re-writing, researching, and re-thinking. 

Audience: Banks, Investors, Government Agencies, Board of Directors

The Traditional Business Plan is typically employed to solicit funding for startups from banks and investors. It also plays a crucial role in various government applications, such as petitioning the USCIS for entrepreneurship visas or applying for specific licensing, such as in the cannabis industry. While all Traditional Business Plans are well-researched and written in a professional manner, it's essential to recognize that each audience has distinct needs that must be addressed. This customization ensures that the plan resonates with the specific stakeholders, aligning with their expectations and requirements.

Crafting a Sustainable Business Through Planning

Planning is the backbone of a successful business, serving as a bridge that aligns vision with reality. It transforms ideas into actionable strategies, guiding entrepreneurs through the multifaceted journey of starting and growing a business. Whether a fleeting sketch or a comprehensive Traditional Business Plan, proper planning harmonizes all aspects of the business, defining competitive advantages, shaping marketing strategies, and forecasting financial needs.

Going Beyond the Clock

Creating a business plan transcends mere time constraints. It's not about plugging your information into a business plan template; it's about capturing the essence of the business idea, analyzing the market, and devising robust strategies. The emphasis is not on the hours and days but on the depth and breadth of understanding required to lay a solid foundation for the business.

The Role of Professional Guidance

Business plans are complex, and entrepreneurs don’t have to go it alone. Professional business planners like Masterplans provide expertise in aligning vision with reality and transforming ideas into actionable strategies. We serve as invaluable sounding boards, allowing entrepreneurs to refine their ideas with experienced insights.

A good business plan writer can take your ideas and tailor them to the specific needs of diverse audiences, whether investors, lenders, or government agencies like USCIS. It's a collaborative process that goes beyond mere document-creation.

A Living Document

A business plan is not a static document but a living guide that evolves with the business. It must be revisited and updated regularly to reflect changes in the market, goal-setting, and strategies to reach those goals. This continuous journey ensures alignment with the dynamic landscape of business, reinforcing the plan's role as an essential tool for sustained success.

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Does your business plan need a push?

Writting a business plan can be a springboard exercise for your business, and it's not as difficult as people think. All it takes is a bit of method, and some efficient tools. The good news our free articles and paid course have you covered!

Resources on Business Plan Writing :

An article of the Accelerated MBA written by:

Antoine Martin (Ph.D) | Business coach

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In this article:

How long does it take to write a business plan.

Writing a business plan is usually a time-consuming process, and many business owners and entrepreneurs get quickly put off by it. As a result, we often receive questions from small business owners who wonder how much time they should spend writing their business plans. How long does it take to write a business plan? How much time should I spend on it? What parts should I really focus on? Should I write it myself or have someone else write it for me? So forth and so on.

In this article, we not only answer those questions.

We also give you tips on approaching business plan writing efficiently and effectively. We bust a myth or two since we’re at it. And we put you on tracks to get things started, easy as 1, 2, 3.

Long story short? Writing a business plan takes time, especially when you don’t have a clear framework to follow and tools to use to facilitate the process. And, no, having it written by someone else makes no real sense. Why? Because the point of business plan writing is not to get a damn pdf (Excuse our French). It is to conduct an impactful business planning exercise that’ll give you some perspective on how to get your business to its next level.

Before we dig into the topic, though, please keep three essential points in mind!

First, in this article, we will not explain what a business plan is and why it is important to your business . As we’ve said before, a business plan is a storytelling tool that you should use to show your interlocutors that you have a business AND a strategic plan for that business . If that concept doesn’t sound very clear to you, please follow the link and read the other article before moving on. It’s fundamental.

Second, this article is part of a comprehensive series of blog posts on business plan writing that we’ve made available on Impactified for free. We’re trying to make your life easier with these, so give them a look!

Third, if you wonder how to write your business plan in no time and without breaking the bank, our best-selling Business Plan Builder module was designed for you.

That module includes a complete business plan template, two designer-made decks, a work tool to get you started and tell you what to write (and how), the automated financial tables you’ve been dreaming of, and over two hours of video designed to take you by the hand! So, if writing a business plan is a serious issue for you, you have no excuse!

Now, back to our topic: how long does it take to write a business plan? And is it worth having it written by someone else? Let’s dig.

Why does writing a business plan take time?

Before we elaborate on how long it takes to write a business plan, we first want to clarify ‘why’ business plan writing takes time. There are several factors and variables to take into account here.

Format vs. Substance

One of the critical factors you have to consider here is that people often confuse format and substance.

we know. Let us explain.

For instance, those who think that a business plan is a matter of getting a pdf document written, quick and dirty, to make the bankers happy typically see the exercise as a matter of formatting. Put the information into boxes, format the boxes, and you are done.

However, the essential keyword in the previous paragraph is not “getting a pdf document written”. Instead, it relates to the importance of gathering information. Not generic information, though, the correct information for the right interlocutor.

Said differently, business plan writing is a time-consuming exercise because it involves a very significant amount of work on the information-gathering side of things. In contrast, formatting is very straightforward and doesn’t create any specific issue – especially if you follow the right section structure and have access to a proper template. We’ll get back to that later

Alone vs. By someone else

Another critical factor to consider is ‘who’ writes the document.

On the one hand, working on your business plan yourself will take time and is very likely to slow you down. Depending on how well you know your business and on how deep you have pushed your strategic thinking, the exercise could take between a couple of days and a couple of months.

A couple of days, if your ideas are clear and all you have to do is format your information. A couple of months, if you can’t explain clearly what makes you different. Or what your business model is and what traction you have.

Not to forget the financial projections you have in mind , so forth, and so on. Then, of course, add the work you need to do alongside your writing, and you quickly get a couple of months of work.

On the other hand, having someone to work on your plan will also take time, but for different reasons. Whoever does the writing will need to know your business as precisely as possible before they can come up with anything serious.

Hence they will require you to spend time on data compilation and clarification. Perhaps more importantly, you will have to go through all the work and trust that their research reflects your market and positioning. Of course, you will also lose a fantastic opportunity to develop your thinking on your own business.

Think about time-saving twice.

Timewise, business plan writers will promise to deliver results within a few weeks. Still, of course, they won’t come up with miracles if you have no clue about your own business. More on business plan consultants and writers here by the way.

That being said, one clever exception to that logic could be to delegate the brainstorming and writing exercise to someone close to you.

For instance, someone from your team. Someone who knows the business well enough to develop sharp insights and relevant ideas. In that case, though, you will still need to spend some time on collaboration, clarification, questioning. Needless to say, you will also need to digest and assimilate the plan well enough to defend it when the time comes.

Deep plan vs. Surface scratching

Of course, the time you will need to spend on your business plan writing exercise also depends on how deep you want to go into your thinking.

Please stop smiling. we’m trying to be serious here!

Suppose your goal is to write a one-page business plan , quick and dirty style, without going into the details? You could probably come up with results you’ll like after a couple of days. However, the issue is that nobody cares if you like the result you obtain. What matters is not what YOU think, but what THEY think about your business proposal and whether you give them the type of information THEY want to hear. That’s a very different story.

In contrast, conducting a deep business planning exercise will take you a lot more time. Still, you will develop genuine insights regarding your business and your industry. In addition, you will gain some forecast on your earning potential to help you communicate with stakeholders. And all these will equip you to formulate storytelling your interlocutors will want to listen and remember.

The choice is yours here. But we’re sure you understand what we’d do if we were in your seat right now.

Don’t forget the pitching preparation

One last thing, before we move on to the next point. Another critical factor to consider when assessing how long you’ll need to write your business plan is the preparation time you’ll have to put into the exercise.

Whether you write your plan or whether someone does that for you, you will have no choice but learn to defend it yourself in front of investors if you write an investor proposal for funding purposes . Or in front of a banker if you write a business plan to obtain a loan .

From there, the work thus becomes a matter of working on your pitch. Then a matter of working on your pitch again. Then a question of actually pitching it, pitching it again, and revising that pitch until someone bites. But, again, that takes a lot of time – specifically when someone else wrote the damn thing for you.

Either way, having your document ready is only the beginning, and you have no choice but to think thoughtfully about what to do AFTER creating your business plan .

Four time-consuming variables when writing a business plan

• Focusing on substance vs. just working on formatting
• Writing the business plan yourself vs. paying someone to do it
• Going deep into the topic vs. scratching the surface
• Pitching preparation, pitching, and pitching revision

Four typical time-wasters that systematically ruin a business plan

Now that we’ve explained why the exercise typically takes time, let me explain what entrepreneurs and business owners usually waste their time on. Spoiler alert: the following paragraphs are strategic business killers (or savers, it depends), so don’t just skim through them.

Time waster #1: Figuring out what’s expected from you

First, business owners typically get into their business plan writing exercise fast to get the thing done once and for all. However, they forget to start with the basics by doing this, i.e., understanding what their final reader or interlocutor expects from the pitch and wants to hear.

That’s a business killer because, by building their pitch around what makes sense for themselves, these business owners shoot themselves in the foot.

For instance? If you ask us a million dollars to boost your business because you think that your idea is excellent and you are convinced that it is the next unicorn, then think twice. Your point needs to be a lot better than that, and it’d better be built around something more reasonable than “trust me!” or “I can feel it in my bones”.

Please don’t roll your eyes here; that’s typical.

As investors, we expect some persuasive arguments! First, say, on market research and the traction you have obtained so far. Then, some numbers showing how viable the business is. More numbers and insights as to how you’ll spend our million. And something to show me how you estimate the company’s valuation a few years from now.

Let us provoke you here: we won’t explain why we wrote the previous paragraph like this. If you understand our point, then keep reading. If you don’t, then do yourself a favor and watch our videos on the business plan logic. You have no chance whatsoever if you can’t master that kind of discussion.

The expectations, by the way, are also super important as far as the structure of your business plan is concerned. Business plan writing is a codified exercise, remember? Hence your interlocutors will expect a few points to be treated one by one, in a specific order.

We explain all these points in our Business Plan Builder module, so go for it if you need clarification.

If you’d rather try and find some free information first, our articles on what a business plan outline should look like and how long a business plan should be will give you some food for thought.

Time waster #2: Clarifying what creates a viable opportunity worth betting on

Second time-waster and business plan killer: business owners typically focus on obtaining what they want. However, they usually fail to explain what viable opportunity they create for the partners and why it is worth the investment.

There are a few critical points in what we just said.

One, the point is not to explain what YOU want. It is to explain what you want AND why that makes sense from an investment perspective.

Two, the point is not to say that you are producing the next unicorn.

Seriously, that’s how it looks.

No. The point is It is to show that you are giving investors an opportunity to put money into a viable and promising new venture that mainly needs capital to grow exponentially.

And if you are talking to a banker? Don’t waste your time on the promising side of the business. Instead, show that your finances and sales projections are viable enough to repay the loan asap. Period.

Three, the point is not to convince your interlocutor to give you money. Instead, it is to show them that their money will provide them with access to a successful business that will pay back – money in their pocket – down the road.

Said differently, what matters is not you. It’s them. And writing a business plan without having this clearly in mind will waste your time (and theirs) without the slightest doubt.

Time waster #3: Coming up with numbers that make no sense in the medium and long term

Third-time-waster and business-killer: business owners typically struggle with building and writing their business plan’s financial statements.

The complexity, indeed, is not simply to find a comprehensive template. That’s pretty easy these days. However, that template needs to tell you what needs to be done. It should tell you why things have to be done this or that way. And it has to explain how understanding the logic can help you from a storytelling perspective!

In plain English? Can you tell me, right now, without thinking more than five seconds, how much your business is worth? And no, not now. Five years from now.

Again, this question is fundamental, and you have no choice but to have a clear answer for it. If you can’t give me that answer, or if the logic isn’t clear, you need to clarify quickly.

We have some good news, though: the Impactified Business Plan Builder tool and videos can help! It will provide you with video explanations, and with the automated financial tables you’ll need to get to a result you’ll be able to use – you have no excuse.

Okay. You sound fantastic, so here’s a hint. The money you can raise relates directly to the amount of shareholding you’ll have to give away. And both depend on the valorization of your business, not now but in three to five years. As to how to get those numbers, everything is in the module; give it a try!

Time waster #4: Building some storytelling with real sex-appeal

Fourth time-waster and business killer: storytelling is super, duper, important. And you have to prepare it sharp, sharp, sharp.

We heard a guy once who thought that he would get people in his pocket by being natural. In plain English? He refused pitch training because he had a natural talent and thought people wanted authenticity rather than a fake, prepared pitch.

Well, guess what? That guy was an ass.

Excuse our French (again), but he really was.

He spoke so much that his point wasn’t clear. Worse, his pitching was boring because it was all about him and him again, so people lost interest after a couple of minutes. We won’t tell you the feedback we had on that guy: if the previous paragraph was rude, the next would be indecent.

The lesson here is simple: the point is not you, and it’s not to build a pitch based on boring facts and numbers either. No, the point is to use your business plan as an excuse to develop some strong business planning skills and to build storytelling with so much sex appeal that people will want to hear more and get on board.

The four biggest time waster with business plan writing

• Not knowing what you are expected to provide
• Failing to show that you are creating a viable business opportunity worth investing in
• Coming up with numbers that make no sense
• Going to war when your storytelling sucks (and you have no clue)

Is there a format I can use to save on preparation time?

Still with me? Great.

If you wonder how long it takes to write a business plan, the next question on the list often relates to formatting. And there, the answer is easy: yes, you can use template formats to save a lot (lot, lot) on preparation time. You just have to opt for the proper one, however.

Again, we’ve explained what your business plan outline should look like in another article, so we’re not coming back on this here. Still, there are two routes to consider here as far as short formats are concerned.

Is the one-pager a good idea?

First route: from a pure formatting perspective, business owners often look to write a one-page business plan . In their mind, this is a time-saver because one page is more accessible to write than a complete plan; hence the idea is smart.

Okay. But not okay.

Like it or not, the only way your one-pager can make sense is if it is built as an innovative and highly visual executive summary . However, getting there implies that you have gone through the whole process of business planning. Otherwise, what can you summarize?

That’s not what you wanted to read, but we’re a business coaches, not a candy seller. Oopsie but no sorrrieees!

Using a pitch deck template makes a lot more sense

Second route: relying on a business plan writing framework and using a predefined template will save you tons of time.

Shameless plug here again, but really, as business coaches and entrepreneurs, we know that writing a business plan is complicated when you don’t know where to start. So, we built a package tool:

One is a preparation template. It gives you all the points you need to deal with in the correct order and with a world limit—no way to go crazy with the number of words.

Then, two design-made templates to put your work into a visually appealing shape. One gives you a comprehensive format to give people a clean document with your storytelling, eight pages max. And the other gives you a slides-shaped structure, ideal if you prefer presenting your business plan on a screen.

Of course, we also provide you with a dummy case you can use for educative purposes. And finally, we added a complementary set of videos (two hours, guys!) to ensure that you get all the logic right.

Look, it’s simple. Business plan writing can kill your business because focusing on the wrong things and is a waste of time from A to Z !

We built this tool to make sure that doesn’t happen to you – there isn’t much we can add to that – except perhaps that the rest depends on you.

Wrap up: How long does it take to write a business plan? Depends on your goal…

To wrap things up? Writing your business plan is likely to require two days if your mind and storytelling are crystal clear, up to a couple of months if you have to build things from scratch.

Some do it themselves or with a team. Others just leave this with a consultant, so you have several options. The latter typically makes no sense and won’t make you save on costs for sure , so we would advise against it.

However, going through the exercise is important whether you are a Palo Alto startup or a small business. And doing the exercise yourself or with your team will give you a real opportunity to put some vital business planning into place. Beyond writing a stupid pdf, that’s one of the best ways available to get your business to its next step.

And just in case you wondered – no, we won’t write your business plan for you because that makes no sense (and you can read our opinion about business plan consultants here ). However, our Business Plan Builder with its framework, templates, and videos was made to get you started, so give it a look.

Alternatively, a business coach will also guide you through the exercise ( you can book a business coach here ). And they will also be at best to facilitate dedicated workshops if you want to build your business plan while involving your team. Get in touch!

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Topics related to How long does it take to write a business plan?:

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More Insights on Business Plan Writing

Financial Projections: How to write the financial plan in business plan

Hey coach! I’m writing a business plan and I’m wondering how to build the financial projections part of the document. What’s the importance of financial projections exactly – I mean, isn’t it absolute BS? How do I write the financial plan in business plan, and even more importantly, how can I make sense of all those messy tables? Can you help me understand this? Thanks in advance!

Do I Need a Business Plan Consultant? No, You Don’t!

Hey there Coach! I’m a small business owner and I need to find some support with my business plan. People suggested that I find a business plan consultant near me, but that’s a big cost and I’m not too sure about what to expect from that. What’s your opinion about business plan consultants in general? Is there any alternative you would highly recommend? Thanks!

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Hey coach! I was wondering – how much does a business plan cost? I need one, and I’m thinking about having it written for me, so I’d love your insights. Also, I’ve heard business plan writers cost a lot of money, so I’m interested if you have tips for writing a low-cost business plan! Thanks!

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Writing an Effective One-Page Business Plan: What You Need to Know (+ Free Template)

By Homebase Team

If you’ve started—or are starting—a small business, you’ve probably heard the words ‘business plan’ thrown around. That’s because a business plan is an important document with important information! Even a one-page business plan can help you address key questions early in the planning process.

That’s right—we said  one page. In many cases, there’s no need for a supermassive document that takes ages to create. In this article, we walk you through what a good business plan needs—and what a business plan one-pager should contain. 

Whether you’re writing your business plan for the first time or giving your existing plan a refresh, we’ve got your back. We’ve even got a free, downloadable business plan template to help you get started. Let’s get into it!

Why do you need a business plan?

A business plan is a blueprint for your business. It outlines everything your business needs, from goals to market to the steps you need to implement.

Business plans serve two main purposes:

• To help you set your business up for success. As you put together your business plan, you’ll be forced to think strategically about all your business goals and activities . Are they realistic? Is something likely to go wrong? What haven’t you thought of? The goal is for you to walk away feeling confident in the future of your business.
• To communicate the value of your business to others. It’s rare that entrepreneurs like yourself will go it 100% alone. You’ll likely work with partners, investors, or vendors to bring your small business to life. A business plan gives your collaborators confidence in you and your business and helps them support you in the best way possible.

Taking the time to create a business plan can feel like you’re wasting all-too-precious time, but it can help keep you focused and increase efficiency down the road. It’ll also help you make better business decisions off the bat so you can grow your small business quickly and wisely. 

What are the 7 main points in a business plan?

Every business plan is unique, which is part of the reason writing one can feel a tad overwhelming. You can’t just copy and paste the plan from another business—instead, you need to assess your business’s idea within its niche.

Luckily, the skeleton of every plan is usually very similar. Whether you’re creating a plan for a neighborhood daycare or that cool new bar down the street , here are a few main points to put into any comprehensive business plan.

1. Executive summary

Your executive summary is an overview of your business plan. 

Think about this section like a TL;DR or too long, don’t read . If someone wants to understand the gist of your business plan in just a few minutes, what information would they need to know?

2. Company overview and description

In this section, you should introduce your business to the reader. By the time they finish reading this section, they should have a good idea of who you are, what you do, and what you sell—in other words, your business’s niche.

Don’t be afraid to dive into your own background and why you decided to start this business. Building a small business is personal, and your story can go a long way in giving the reader some context.

3. Market and competitive analysis

Every business needs customers. Here’s where you’ll detail who they are and the potential target market of your business, including your ideal customer.

You’ll also want to take note of potential competitors that may impact your business. These might be direct competitors, but could also be similar businesses that may compete for your customers’ time and money. For example, if you’re opening a cycling studio, you might consider any other type of fitness studio to be a competitor.

Competition isn’t a bad thing, but being aware of your competition is one way to ensure your business stands out from the crowd. 

4. Business offerings

Here’s where you’ll outline what products or services your business will offer in more detail. It doesn’t have to be a complete laundry list, but it should give readers a general idea and show a certain degree of forethought and attention to details.

For example, if you’re opening a bakery , this might be a sample of your menu. Or if you’re an HVAC repair company , you might share an overview of the services you’ll offer your customers. This section might even mention the products or services you won’t offer and why, especially if it helps clarify how your business is unique.

5. Management and operational plan

From managing employees and inventory to securing equipment and a lease, there’s a lot that happens behind the scenes to keep things running smoothly. Every business plan should touch on how you’ll manage the day-to-day of your business.

This is also a great place to indicate key milestones and timelines so you know that you’re on track for a successful grand opening. 

6. Sales, marketing, and PR strategy

Now that you’ve got all the research and operational plans in place , it’s time to start attracting customers and securing those sales. Even with the best products or services in town, every business can use a little marketing boost. Feel free to get creative. From social media to paid ads, there are tons of ways you can spread the word about your budding business . 

7. Financial forecast and budget

No one loves to crunch financials, but when it comes to business, money talks. And a strong financial plan is key to the long-term success of your business.

This final section of your business plan should estimate the costs, revenue, and profits of your business in the short and long term. How do you plan to finance your business? What costs will you incur before opening day ? What are the ongoing costs?

Not only will this give your vendors and investors confidence in your business, but it helps you make sure that your business is profitable in the long run.

What is a one-page business plan?

A one-page business plan is essentially a condensed version of a full business plan.  

It covers all the core information about your business without overwhelming the reader with details. The goal is to summarize your business plan for yourself and potential stakeholders so they can understand your business at a glance.

Depending on your business needs, this concise document may even be all you need to get your business off the ground. Or it could serve as a stepping stone to a more robust plan in the future. 

Top benefits of a one-page business plan.

Bigger isn’t always better—and one-page business plans are here to prove it.

Here are some benefits and reasons why you might opt for a one-page business plan:

• To kickstart your business planning: A full business plan can be incredibly daunting. A one-page business plan gives you a place to start without feeling overwhelmed with the nitty gritty. 
• To share and distribute: Sometimes potential vendors, partners, or investors want to get more information about your business before they sign on officially. Instead of leaving them with a massive document, a one-page business plan helps you share the relevant need-to-know information easily.
• To focus on the key details: If you’re early on in the business ideation process and want to make sure you have all the important information, a one-page business plan can help you easily validate your business plan.
• To save time: In the long term, you may still expect to put together a full business plan at some point. However, if you’re in a time crunch, a one-page plan can help you get the important insights without the time commitment.
• To easily edit: In an ever-changing business environment, a one-page business plan is much easier to keep updated. 

Key details to include in a one-page business plan.

Above, we outlined the key components of any business plan. The key with a one-pager is to keep it brief without losing any of those important details. 

Let’s look at the sections of a business plan one-pager and dig into how you can adapt them to cover all the details of your business—all on one page. 

Summary and overview

Start your one-page plan by sharing the name of your business, what you do, and your main value proposition.

The problem—and your solution

In a few sentences, share the problem that your business solves and how you solve it. This clarifies why your business should exist, so it’s an important section!

Depending on your business, you may also want to share a few of your team members to help readers put a face to your business. Great examples include the executive chef for a restaurant, or the lead veterinarian for your vet clinic.

Target market

Briefly describe who you expect to be a customer and their characteristics. This could be in the form of a short “ideal customer” profile.

Competitor overview

Here, you’ll touch on potential competitors and what makes your business stand out.

Business timeline

Share the key milestones for your business. For example, pitch when you’ll start marketing your business, when you’ll hire employees , and when you expect to open.

Sales and marketing plan

Here, you’ll quickly highlight the key marketing activities that you’ll use to drive new customers to your business. Try to stick to the most interesting or high-value stuff, like a website or social media .

Financial projections

Outline your expected revenue , expenses, and profits to give the reader an idea of your financial future.

Our tips for creating a one-page business plan.

If you’ve ever written something with a limited word count, you know that sometimes keeping things concise can be easier said than done.

As you get writing your one-page business plan, here are some of our top tips so you can make the most of that one page.

• Focus on the need-to-know information.
• Avoid fluff and keep your sentences short.
• Link out to additional resources and material if more information is necessary.
• Don’t be afraid to strategically incorporate visuals to emphasize the important points.
• Feel free to up sections or have different versions of your one-page business plan based on who’s reading it. 
• Get creative with formatting to keep information organized.

One-page business plan example.

If you’re skeptical that all that information can fit on one page—we have proof!  Here’s an example that you can use to start thinking about your business plan.

Download our free one-page business plan template.

A one-page business plan is one of the most important pages you’ll write for your business. While there’s a lot to think about, it’s worth the effort to give both you and your partners peace of mind.

The good news is that we’ve done the heavy lifting for you! If the above one-pager looks good to you, we’ve pulled it together as a download for you. All that’s left for you to customize it for your unique business, fill in the sections, and get ready to launch your business.

Download your one-page business plan template PDF

Get your team in sync with our easy-to-use, all-in-one employee app.

One-page business plan FAQs

Why should you create a business plan.

There are several reasons you should create a business plan, such as:

• Improving your decision-making as you start and grow your business.
• Setting realistic goals and timelines.
• Attracting top-notch suppliers, investors, and even employees.
• Keeping your business profitable and your financials in order.

What types of companies need a business plan?

From brand-new small businesses to established corporations, companies of all shapes and sizes need a business plan. It’s a key part of setting your business up for success and improving your business trajectory.

Even if you already have a business plan in place, revisiting it from time to time can help you stay on track with your goals and adapt as your business changes.

Can a business plan be one page?

Yes, in many cases a business page can be one page. The trick to creating an effective one-page business plan is making sure that you’re covering the most important pieces of information. 

Our top tips? Keep it as concise and organized as possible, so you can effectively communicate the value of your business to your audience.

Writing a one-page business plan is simple. You can create a business plan from scratch or use a free template like the one above to stay on track, but generally, the steps to writing a one-page business plan include:

• Start with a short executive summary and value proposition to introduce your business.
• Share the problem your business solves and your solution.
• Give an outline of top competitors and how your business compares.
• Create a timeline of key milestones.
• Outline your sales and marketing plan for attracting customers.
• Summarize your financial projections and funding plans.

Remember:  This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.

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Business Plan Length: How Long Should a Business Plan be?

Business Plan Template

• April 17, 2024

What should be my business plan length? It is a common question for entrepreneurs who are new to business planning.

Certain people hold the opinion that a business plan should be one page long, while some believe a business plan should be extensive and filled with minute details.

Every business plan and business is different. While some may be heavily text-based and include extensive market research, others may rely on graphics to make their points.

If your business plan is too brief, you’re probably not offering potential investors enough details about your operation. In contrast, if it goes on for too long, you will bore them, and they will lose interest since you are giving them too much information.

Confused about the length of a business plan? Make sure your business plan is detailed enough to show that investing in or getting involved with your business is a good idea.

In light of this, a business plan length should typically be between 15-30 pages . Let’s see the detailed guide on how long should a business plan be

Length Depends on the Purpose of Your Business Plan

Don’t overlook the main mission of your plan while you determine the ideal length of your business plan. The goal of your plan is to persuade readers to support your business, financially or by being an active part of your business.

Certain questions to answer to know your purpose are:

• Who is the target audience, first, for whom you are creating a business plan? (E.g., banks, investors, potential partners, etc.)
• Will it have details of the business and the management team that everyone can read?
• Do you require showing the whole business plan or only the executive summary to your readers?
• Does it contain thorough research, plans, designs, and charts?

Length Also Depends on the Type of Business Plan

The page count of a business plan also depends on its type. There are three types of business plans , let’s deep dive into them, and then you can decide the ideal length of your business plan.

One-Page Business Plan

A business owner prefers a one-page business plan to introduce their business to investors. A one-page startup business plan encompasses the key elements of the company into just one page, much like an executive summary.

One of the advantages is that investors can read it quickly because it is simply one page long and has just enough details to pique their interest.

Mini Business Plan

A mini business plan contains 1 to 10 pages and has every component that is in a normal traditional business plan, but all are synchronized.

A short plan has all the essential elements of your business in bullet points to make it concise. Even though it contains some of the same details, a detailed business plan is still necessary.

If an investor asks for further details, after reading a one-page business plan, then this mini-business plan can come in handy.

This version will contain more detailed information, such as the problem, the solution, the marketing plan, the expected financial results, the target market, the company and management team, short financial tables, business charts, and the details to secure funding.

The Comprehensive Business Plan

Comprehensive business plans can range in length from 15 to 35 pages and beyond.

This business plan provides readers with a complete overview of the company, including the market problem, the proposed solution, company description, objectives, and goals, as well as its marketing plan, competitive analysis, operational plan, financial projections, management team, and funding request.

A comprehensive plan starts with an executive summary and then expands on it with supporting data. This plan includes essential research to validate the overall business idea.

These business plans should only be provided upon request and following the delivery of a one-page or mini-business plan. An extensive business plan gives investors a complete picture of the company while raising the starting capital.

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Elements to Include in a Business Plan

Now that you know the types of businesses and the average length of a plan, let’s move ahead with what to actually include in a plan. By exploring these essential components , you will be able to create a solid plan.

Executive summary

It is an overview of the whole business plan. Generally, entrepreneurs prefer to write it at the last, after having the clarity of each section of the business plan.

Company description

There is a detailed introduction to your business in this section, including the structure, name of your business, location, history, etc.

Market analysis

This is the section where you provide information about the market, like market size, market trends, target market, industry trends, regulatory environment, etc.

Products or services

Mention the products or services you will provide in this section, including the competitive advantage, unique value proposition, and benefits of the product or service.

Sales and marketing strategy

Here should be your marketing plan on how will attract new and retain old customers.

Management team

Here, mention the names, roles, and experiences of key members, managers, and owners.

Financial projections

Attach financial forecasts of at least 3 years to 5 years in this section, including income statement, balance sheet, and cash flow statement.

Additional information that supports the main sections of the business plan, such as resumes, market research data, legal documents, and any other relevant materials.

Tips for Writing a Concise Business Plan

Writing a concise business plan is essential for capturing the attention of potential investors and partners. Here are some tips to help you write a concise business plan:

1. The Length of an Executive Summary is Crucial

The executive summary is typically the whole overview of the business plan, so it is one of the essential components. Therefore, make sure your summary is well-presented and brief with all the details.

The executive summary’s opening paragraph, in particular, is of utmost significance, since if you don’t grab the reader’s attention right away, they won’t continue reading.

It should normally be one to two pages long to get the reader’s interest in your plan.

A good executive summary should be 5-10% of the whole business plan, so write all the information in a synchronized yet clear manner.

Your business plan has six essential components after the executive summary. These sections should each be between one and two pages long.

2. Correctly Format Your Plan

By organizing your plan, you can avoid including information that would make the plan too cluttered, long, and difficult to read.

Formatting will:

• Give readers a more enjoyable experience
• Make it simple for them to locate the exact information
• Help you fit in the ideal length of the business plan
• Increases engagement and your chances of getting results
• Will also help you understand key elements of your business

3. No One Wants a Novel

When it comes to your business plan length, no one would be interested in reading 100 long pages.

If you include every minute detail of your business, then the plan will be excessively lengthy, and the majority of readers will become bored. Keep in mind that no one will read a 100-page business plan.

Instead, include the most significant information in the executive summary, and then in the other sections of your plan, validate what you mentioned in the executive summary.

4. Move Supporting Documents to the Appendix

While an executive summary gives a quick overview of your whole plan, the appendix supports the data presented in the plan, making it simple to read with all the evidence.

For instance, the primary component of your plan includes revenue projections for years 1 and 5. You can include the specifics of how those forecasts were made in your appendix, rather than putting all pertinent information in the main text.

Therefore, to make your plan clutter-free, move all the supporting documents to the appendix.

5. The 15 Minutes Readability

The 15-minute readability is an actual answer to the question; how long should a business plan be? After quickly scanning the main points of a strong business plan for 15 minutes, the reader should have a good understanding of its main components.

Format, headlines, white space, and graphics all significantly impact readability. The main ideas of a business strategy should be presented as rapidly as they are in a business proposal or business presentation.

If you are still confused about how to write a business plan, then you can also use free business plan samples to make your plan perfect.

6. Use Graphics Wisely

Never reduce a plan by removing helpful graphics. Readability and understanding of the plan are much more important with the help of graphics.

Make your financial projections easier to understand by using business charts to illustrate the numbers. As much as possible, use pictures and drawings to illustrate locations, items, sample menus, product images, and other things.

Are You Ready for Your Business Plan?

In final words, a business plan’s length depends on various factors, like the type & complexity of your plan, the audience of your plan, the purpose of the plan, and many more.

The thing that only matters is your plan should reflect all the main elements of your business, whether it is 15 pages or 30 pages with clarity.

Don’t worry if the ideal length of your business plan is still confusing, because you can always rely on a good business plan software like Upmetrics for writing a business plan. So, start writing, and all the best!

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About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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This question is about careers .

How long does it take to write a business plan?

The time it takes to write a business plan can vary greatly, but it generally takes between two weeks to two months. Depending on its complexity and the availability of necessary information, the time it takes to write a business plan can vary.

The timeframe for writing a business plan may greatly vary depending on several factors. One of these factors includes the complexity of the business plan. For instance, a simple business plan for a small startup could take only a few weeks to prepare, while a comprehensive business plan for a larger, more complex organization could take several months.

Another factor is the availability and accessibility of necessary information. If all relevant data is readily available and well-organized, the process will be quicker. On the other hand, if key information is missing or hard to gather, it can take longer to write the business plan.

Additionally, the writer's experience and familiarity with business planning can influence the time it takes to write a business plan. Experienced writers might complete it faster compared to those who are new to the process.

Lastly, an external deadline (such as a pitch competition or investor meeting) can also determine how long it takes to write a business plan. Under such circumstances, you might have to complete your plan in just a few days or weeks.

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UK election latest: New cabinet in place - but 'shock' as PM Keir Starmer snubs senior figure

Sir Keir Starmer has named the bulk of his cabinet, with Rachel Reeves the first female chancellor. Rishi Sunak said "sorry" to voters as he resigned as Tory leader. His party endured a torrid election night, with the Lib Dems (71 seats) and Reform (five seats) making big strides.

Friday 5 July 2024 23:47, UK

• General Election 2024

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Need to know

• Sir Keir Starmer pledges to 'end era of noisy performance' after winning landslide | Work to bring change starts 'immediately'
• New PM names cabinet | Emily Thornberry snubbed
• Sam Coates: One of the most orderly and stable entrances to power
• Tory wipeout: Sunak says sorry as he resigns as Tory leader | Liz Truss shock loss | 12 cabinet ministers booted out
• Nigel Farage one of five Reform MPs - but speech sabotaged by protesters
• Record 71 seats for Lib Dems | SNP collapse
• Sam Coates analysis : A loveless landslide
• Jon Craig: Who will become next Tory leader?
• Labour vote share down in areas with large Muslim populations
• How Reform vote compares to UKIP in 2015 - is it really a big gain?
• How night unfolded in eight videos - from exit poll to defeated Rees-Mogg's film quote
• Ed Conway : The new political geography
• Results in every constituency

Live reporting by Samuel Osborne, Mark Wyatt, Emily Mee and Bhvishya Patel

US secretary of state Antony Blinken has held a call with the UK's new Foreign Secretary David Lammy this evening.

During the call, the US official congratulated Mr Lammy for his appointment, spokesperson Matthew Miller said.

Mr Miller said: "The pair emphasised the enduring and essential importance of the US-UK special relationship in addressing the most pressing global challenges, including reaching an immediate and enduring ceasefire in Gaza, and supporting Ukraine against Russia's brutal aggression.

"The secretary noted that he looks forward to welcoming the foreign secretary to the NATO summit in Washington next week."

Labour MP Jess Phillips is back with Beth and Ruth to un-pick the election results. 

On this episode they discuss how Jess was heckled when she narrowly held her seat of Birmingham Yardley. 

They also look at the wider Labour results and talk about Rishi Sunak’s resignation speech, as well as discussing why Reform and the Liberal Democrats took seats from the two main parties.

Email Beth, Ruth, and Jess at [email protected] , post on X to @BethRigby, or send a WhatsApp voice note on 07934 200 444.

Sir Keir Starmer and Irish premier Simon Harris have committed to reset and strengthen Anglo-Irish relations "with urgency and ambition".

The taoiseach "warmly congratulated" Sir Keir on his appointment as prime minister and said he looked forward to a "close and constructive" working relationship.

He also accepted an invite to visit Downing Street on 17 July.

"The taoiseach and the prime minister spoke of their shared determination to reset and strengthen the bilateral relationship between Ireland and the United Kingdom and to set about that task with urgency and ambition," a statement said.

"They discussed Northern Ireland, welcoming the restoration of the institutions, including the full operation of North-South and East-West Good Friday Agreement institutions, as well as legacy issues."

Northern Ireland First Minister Michelle O'Neill and Deputy First Minister Emma Little-Pengelly also spoke to Sir Keir by phone and congratulated him.

Some of Sir Keir Starmer's appointments have come as a surprise this evening - not least Timpson's chief executive James Timpson becoming minister for prisons parole and probation. 

The business leader is also chair of the Prison Reform Trust and has a history of employing ex-convicts within his company. 

The prime minister also appointed Sir Patrick Vallance - a household name during the COVID pandemic - as minister for science, and human rights lawyer Richard Hermer KC as attorney general. 

In effect, he appears to be choosing experts in their fields - but how could they be appointed without being elected as MPs? 

Essentially, the prime minister has the power to appoint anyone as a minister if they first make them a peer in the House of Lords. 

A similar tactic was used by Rishi Sunak to bring back former prime minister David Cameron to fill the role of foreign secretary. 

Sir Keir Starmer's declaration a few days ago that he would clock off at 6pm on Fridays to spend time with his family was derided by Conservatives. 

But Labour peer and former home secretary Lord Blunkett - someone who himself has experience in government - tells Sky News that Gordon Brown used to work 18-hour days, seven days a week, and it "didn't work". 

'Let go of the reins'

He says this caused a "massive log jam in decision-making", and that Sir Keir could quickly face problems with "getting momentum and energy back into government". 

Lord Blunkett says it's time for Sir Keir to "let go of the reins a bit", appoint a cabinet and "let them get on with it". 

He argues that without this decentralisation, the government could "ground to a standstill". 

The Labour leader could also face difficulties with the number of new MPs he has, Lord Blunkett says. 

It will be a "substantial challenge" and they must feel "they've got a part to play", he says. 

If you want to find out who your MP is now, you can search for your constituency in our article below. 

Only one constituency - Inverness, Skye and West Ross - is yet to declare. 

Number 10 has released pictures of Sir Keir Starmer with his newly appointed cabinet.

Boris Johnson has described Labour's landslide victory as an  "atomic bomb that has detonated over the British political landscape".

In a piece for the Daily Mail , the former prime minister said "our worst fears have been realised" and "matters have developed".

He said the Tories had allowed Sir Keir Starmer - "a glottaly challenged north London lawyer" to lead Labour to one of their biggest victories ever and "too many good former colleagues have lost their seats in a cull that has been in many ways unjust".

"It has been miserable to watch, and it has taken me some time to rouse myself from the sofa and get to the keyboard to compose my thoughts," he said.

Mr Johnson said his prayers were now with the 121 "Tory survivors" who were the "bedraggled remnants of the explosion" and whose role was not to "hold this Starmergeddon majority to account".

On Nigel Farage, he said the "cheroot-puffing Pied Piper of Clacton" had "played a significant part" in the "destruction of the Tory government". 

He went on to say "Labour's majority is built on sand" and if the past five years proved anything it was that "the electorate can flip over a seemingly impregnable position, as a child demolishes a fortress of Lego".

Rachel Reeves has today become the first woman to hold the role of chancellor of the exchequer.

The MP for Leeds West and Pudsey has a huge amount of work to get on with in No 11 as she will be tasked with bringing stability back to the economy.

There will no doubt be plenty of change in the Treasury department, not least in the toilets, Times reporter Rachel Sylvester told Sky News.

She said: "The Treasury are desperately going around looking at whether they need to redo the loo in the chancellor's office to remove that urinal because we've never had a woman in that job before!"

News outlets around the world have been reacting to the news that the Labour Party have won a landslide victory in the UK general election.

Sir Keir Starmer's big win is on the front page of newspapers and dominating the websites of outlets in the US, Brazil, Spain, Canada, Italy, Ireland, and New Zealand, among others.

The New York Times' website ran with the news of a Labour landslide, while Spanish daily  El Pais spoke of a "historic victory of Labour".

New Zealand's second-largest newspaper The Press had a large picture of Sir Keir on the front cover.

Brazil's leading daily newspaper O Globo showed reaction to Thursday's exit poll with the caption: "Labour returns to power in the United Kingdom after 14 years."

Le Monde 's homepage features both the UK election and the French, with the second round of parliamentary election voting happening this weekend across France.

Elsewhere, German broadcaster DW 's website led with the UK's general election throughout Friday.

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