how to write a great business plan
Sitting down to write a business plan may seem tedious, but a well-planned document can be your roadmap as you start, manage, and grow your business. If you are seeking funding, your business plan can instill confidence in potential investors, serve as the foundation for detailed marketing plans, and sets forth the vision for growth, which can inform investment decisions and personnel additions.1
A great business plan does not have to be long or complex — it should be straightforward and include just the information you need. Additional details like comprehensive marketing plans and pricing guides should be separate documents. Your business plan should include:
1. Executive summary
Introduce your company, including your mission statement, product or service, and a basic overview of location and leadership team. Write the executive summary as if a potential investor or partner will stop reading after this section. Include relevant big picture information and explain why your business will be successful. If you plan to ask for financing, include high-level plans and financial information.1
2. Business overview
Go into detail about your company and your competitive advantages. Explain the problem your business solves, and the consumers or businesses you will serve. Use this section to tell readers what sets you apart from your competition and what specific advantages you have on the way to success, like a great location or subject matter expert.2 Include a full listing of your management team, organizational structure, current team members, and any critical vacancies. If relevant, include resumes or CVs of key leadership team members.1
3. Products and services
Describe your service or the product you sell. Begin with the benefits for consumers, then outline the product lifecycle.1 Walk readers through the product development process, including any research and development. This is also where you should include intellectual property plans like patent filings or copyrights.
4. Market and competitor analysis
What is your target market? Where does your company fit? Explain the current state of the industry and your competition. Use this information to contextualize as you detail the customers you plan to target and how you plan to capture market share. Be as specific as possible, citing any sources from your research and identifying themes across the industry.3
5. Marketing and sales
This section is the most fluid in your business plan. Marketing and sales strategies can (and should) change over time in response to market and business needs.2 Use this section to explain how your company will attract and retain customers, including the specifics of how a sale will happen – from prospect to final delivery. If you have any marketing campaigns planned for the next 6-12 months, include them here. This should not be a full marketing plan, just a general overview of strategy including social media, in-person events, paid media, and other strategies you plan to employ. Reference your market analysis as relevant to support sales and marketing planning.
6. Funding request(s)
If you are seeking funding, use this section to articulate your funding needs. Clearly explain what funding you need and how it will be spent over the next 3-5 years. Include specific terms, if you’d like debt or equity, and the timeline for your request.1 Conclude with a description of strategic financial plans for the future (debt payoff, selling your business, etc.).
7. Financial projections
Establish your company’s financial picture for potential partners or investors. All business plans should include financial estimates and targets. Businesses already in operation should add financial statements, balance sheets, and other financial information. If you have collateral that you could put against a loan, list it here.1 This section may benefit from charts or graphs to support the financial story you’re presenting.
Summary
A business plan should be as unique as each individual business. Use the sections outlined above as a guideline to build a plan that reflects your company’s needs and plans.
If you have information or details that fall outside of these recommendations but will benefit your business case; include them! Use all the resources you can to clearly and concisely tell your business story and convey your future plans. As you build these plans, utilize your available resources and work with us to develop a trust-based banking relationship and strong business foundation.
