Write a Business Plan

People make a lot of mistakes when they start a new business and rush into things before considering the important aspects of their business. A business plan can help you plan so that you can anticipate important issues and possible challenges before you start your business.

A business plan a vital part of any new venture. Your business plan doesn’t need to be 100 pages long. Keep it short and concise and focus on the key details.

Studies show that entrepreneurs who take the time to write a business plan are 2.5 times more likely to follow through and get their business off the ground. The work that goes into creating a business plan also helps new entrepreneurs build skills that will be invaluable later.

Traditional business plans have the following sections:

• An executive summary. This section summaries the entire plan, so it is generally written last. Anyone reading your plan will read this first, so it’s an important element.


• An industry overview. This section gives a brief overview of the industry sector your business will operate in. It includes key players, industry trends, and estimates of industry sales.


• Market analysis. This looks at the target market for your product or service. It has a breakdown of your market segments, their geographic location, and what their needs are. This section shows anyone reading that you have a thorough understanding of the people you plan to sell to or serve.


• Competitive analysis. Who are your direct and indirect competitors? How do they currently meet your target market’s needs, and how will you differentiate your product or services?


• Sales and marketing plan. What is your unique selling proposition? How are you going to promote your business and persuade your target audience to buy? This section goes into detail on questions like these. There are many different business models – include the potential models that apply to your business.


• Management plan. This section outlines your legal and management structure. It shows who your leadership team is and what your staffing needs will be. If you plan to seek funding, you should describe your advisory board here, as well.


• Operating plan. Your business location, facilities, equipment, and what kind of employees you’ll need are in this section. Any suppliers, manufacturing processes, and any other operating details also appear here.


• Financial plan. This section is for all things financial. There are three key financial documents of any business that go here: an income statement, a balance sheet, and a cash flow statement.


• Appendices and Exhibits. Any information that helps support your business idea goes here, including market studies, legal agreements, photos of your products, and more.

Also, remember to consider an exit strategy in your business plan.

Some people want to operate a sustainable, profitable business for the long-term. Others want to start a new business and operate it for a few years before exiting the business by selling it.

A business plan will help you figure out how you’ll build the new business, how you’ll grow it, what you’ll need to sustain the business and the milestones you’ll need to reach to sell it.