How to create a business plan: Step-by-step.
In a well-written business plan, every section should tell a story. This story follows where your business came from, where it’s (hopefully) going, and how you plan to get there. Whether you’re pitching to investors, applying for funding, or simply clarifying your own thinking, the content of your business plan will determine how convincing it is.
Here’s how to approach each section of your business plan:
1. Part 1: Executive summary.
The executive summary may appear at the beginning, but it’s not actually your first step when writing a business plan. In fact, you may find it easier to write it last.
It’s the elevator pitch version of your plan, and your opportunity to condense key takeaways into just one page. Concisely summarise what you do, who you serve, your key objectives, and what makes you stand out.
Your goal here is to set the scene with the most important information at a glance, to spark interest and invite the reader to explore the rest of your business plan.
2. Part 2: Business description.
Next, explain your business idea. Start with the basics:
Then, you can go into further detail about the inspiration behind your business, your values, and long-term goals. It’s your chance to give the reader a sense of the bigger picture. When writing your business plan, be careful to keep the tone balanced between factual and inspirational.
3. Part 3: Market analysis.
Here you can really show you’ve done your homework and demonstrate your knowledge of your industry, competition and target market. You’ll want to:
- Describe the industry you’re entering, who your customers are, and how your competitors operate.
- Use reliable sources and data wherever possible (and don’t forget to cite the sources).
- Define your target audience in detail: demographics, behaviours, preferences, and pain points.
- Explain where your business fits in and how you’ll position yourself to meet your target audience’s demands.
A thorough market analysis builds credibility and sets the stage for your strategy. Plus, by taking an in-depth look at the market, you can ensure your business really has a shot at being successful.
4. Part 4: Business goals.
In this area of your business plan, you may decide to include your short and long-term objectives and your strategy to reach them. This can help keep it focused and reassure your audience that you have a carefully thought-out plan.
5. Part 5: Products or services.
Next, describe what you’re offering. Make your descriptions easy to understand – even for someone outside your industry.
It’s important to go beyond the technical or general features and explain your benefit to the customer. What problem does your product or service solve? What needs does it meet? How is it better than the competition? You can also include pricing models, lifecycle information, or intellectual property considerations here.
6. Part 6: Marketing and sales.
When writing your business plan, you’ll need to consider marketing, advertising and sales. This part of your plan outlines how people will find your business and how they’ll buy from it.
Follow these suggestions to nail the marketing and sales portion of your business plan:
- Be specific. Describe how you’re intending to sell your product or service (for example, a storefront, your own online shop, or other platforms) and which marketing channels you’ll use (for example, digital, social media, email newsletter, print, or events).
- Describe how you came to these decisions. What led you to this choice? Show that you understand your customer’s journey and explain how you’ll guide them through it.
- Avoid being vague. Go into as much detail as possible and tell the readers how and why your marketing and sales activities support your goals.
7. Part 7: Operations and management.
A business plan is quite theoretical – but this doesn’t mean it should miss out practical aspects of running a business.
In this section, outline how your business will operate – from sourcing and production to delivery and customer service.
Introduce key team members (current or future), their roles, and what makes them suitable. If you’re a solo founder, show how you’ll manage the workload or where you’ll outsource. Mention tools, software, suppliers or partners that are essential to your workflow to reassure your audience that you’ve thought through the logistics.
8. Part 8: Finances.
Numbers can make or break a business plan. This section should present realistic financial projections, backed by assumptions you can justify. Include cash flow forecasts, profit and loss estimates, and break-even analysis.
If you’re applying for funding, be clear on how much you need, how you’ll use it, and how you plan to repay it (if applicable). Avoid being overly optimistic and allow yourself to think critically – investors will expect transparency. A clear financial plan shows that your business model is sustainable and realistic.
9. Part 9: Appendices.
Use this final section to include extra materials or documents that may be helpful. These could be product images, testimonials, CVs of team members, licences, or more detailed data sets.
Don’t treat the appendices as a dumping ground. Only include what strengthens your business plan and refer to these documents in the relevant sections, so they add value in context.
10. Part 10: Review, review, review.
Once you’ve finished creating your business plan, ensure you leave enough time to check the accuracy and review for any typos. This is an important business document, and it’s crucial to get off on the right foot with potential investors or other stakeholders. The last thing you want are silly errors or typos bringing down the quality of your hard work.
