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How to Write a Startup Business Plan

May 28, 2022 - 10 min read

Yuvika Iyer

A startup business plan is an outline of your ideas and strategies for what you’ll need to do to start, manage, and even complete your startup’s mission. Creating one might sound simple enough, but because it’s a startup’s roadmap for success, it can be a complex document to create. 

Writing a business plan can make a world of difference for entrepreneurs who desire external funding. It involves determining your target customers, understanding what makes them tick, and figuring out how to reach them through marketing campaigns. 

In this blog post, we’ve explained why you should have a startup business plan, different types of startup business plans, and we’ve included 12 of the most effective tips for writing a startup business plan. If you’re ready to start with now, we have a product launch template to get you started quickly. 

What is a startup business plan?

A startup business plan is a written document that outlines your ideas and strategies for launching, managing, and eventually exiting your new venture. 

A well-constructed business plan can be crucial to the success of any entrepreneurial endeavor . As you prepare your proposal, keep in mind that it will evolve as you learn more about your market.

To start, create an outline of the most important items you'd like feedback on before writing anything down officially.

Then ask yourself these questions:

  • What do I want?
  • Why does my company exist?
  • How will I make money?
  • What are my long-term goals?

A detailed business plan helps you set milestones for measuring success. You can share the plan with investors who may want some reassurance on the viability of their investment in your company.

The best way to create a successful startup business plan is by including everything in an organized and easy-to-read document — marketing strategies, financial projections, team bios, timelines, and more.

What is a lean startup business plan?

A lean startup business plan is a method for developing products that relies on iterative experimentation to reduce uncertainty. 

It has been used by companies such as Google , Amazon, and Facebook in the early stages of their development, and involves testing your idea with real customers early in development.

Lean startups are less likely to fail because they have tested their product or service with live feedback from consumers. Doing this allows them to make changes quickly without wasting resources on something no one wants.

The goal is not to build an extensive business plan but rather a "lean" one that can be changed based on customer feedback and then re-evaluated in regular intervals until it reaches market potential — or fails.

A lean startup business plan is a strategy that focuses on getting a product in front of customers as quickly and cheaply as possible. Use the lean startup business plan to validate your ideas before wasting time and resources.

Why do you need a small startup business plan?

A small startup business plan is one of the most important steps in building a company. Apart from helping you to focus on company goals, it aids in obtaining feedback from potential partners and keeps the team on the same page.

The best thing about starting small? You can change course at any time! If you need help developing or tweaking your small startup business plan, use this guide for entrepreneurs to get started.

You've built a product and you're ready to take the next step, but what's your plan? First, you need a strategy in place. Do you know how much money it will cost, or where exactly that funding should come from? What about marketing strategies for getting customers in the door? 

Mobile image promo promo

You’ll also need to find ways to retain them afterwards so they keep coming back again and again (and spending more).

product launch startup template

Obtain external funding

If you want to get funding from lenders or investors, you need a startup business plan. Lenders want to make sure they're investing in a company that will last and grow.

A well-organized idea shows passion for its purpose and outlines clear goals for helping customers. At the same time, having an exit strategy is also important.

Making a plan for when things don’t pan out as desired lets investors understand how much value there can be while giving customers (and yourself) peace of mind.

Understand your target market

One key piece of your business plan is knowing how to conduct a market analysis. To do this, consider the industry, target market, and competitors. 

Are there any market trends or competitor factors that can affect your business? Review them closely and get ready to make required changes to your business plan.

Prioritize high ROI strategies

In business, ROI is important. Any business that doesn’t generate as much cash as it burns is likely to fail.

With a startup business plan in place, the strategies with the highest ROI become crystal clear. You'll know exactly what to tackle first and how to prioritize the rest of your tasks.

Accelerate financial health

Business plans are not crystal balls, but they can help forecast your financial health. Planning for expenses is vital to keep operations steady and identify problems as soon as possible. 

Cash flow projections can help you see if goals are achievable or highlight upcoming issues that need correction before it's too late.

How to write a small startup business plan

Use this guide for entrepreneurs to develop or tweak a startup business plan. By following this easy six-step process, you'll soon have a clear path to startup success.

1. Clarify the startup vision, mission, and values

The first step to writing a startup business plan is understanding the startup itself.

Once you know what your startup does, ask yourself why. What is the startup's mission? What problem will it help customers solve? The startup's mission statement helps define its reason for existing.

It’s usually expressed in a simple sentence, but can also be written as a short paragraph.

Try to answer these questions: What does your startup do? How will it make money? How quickly do you hope it will grow? Are there any significant milestones or deadlines that need to be met?

2. Outline the executive summary

Now that you have an idea for your startup, its mission, and a vision in mind, it's time to write your startup business plan executive summary.

Keep it simple and precise. Begin by writing a one-sentence startup business plan introduction that showcases the core customer need/pain point and how you propose to solve it.

3. Develop startup goals and milestones

Next, write down the milestones and goals for your startup business plan. This is a crucial step that many entrepreneurs forget when they're starting out.

Do you want to focus on getting new customers? Or attaining a specific revenue number?  Without clear short-term goals, it can be hard to know how to prioritize startup tasks.

4. Write a company description

Answer the two fundamental questions — who are you and what will you do? Then, give an introduction to why you're in business.

Provide a summary of introspective goals, clarifying intangible aspects such as values or cultural philosophies. Make sure to mention:

  • Proposed business structure (limited partnership, sole proprietorship, incorporated company, or a general partnership)
  • Business model
  • Business vision and mission statement
  • Background information of your team members

writing business plan for startup

5. Conduct market analysis

Choosing the right market is crucial to your organization’s success. There are different kinds of products and services that a business can offer and each has particular requirements for a successful market fit.

If you choose one that doesn't have a large enough customer base or is not profitable enough, your company may end up struggling for every sale.

Ensure that there is a clear market niche — an ideal audience of customers with a need or a pain point that your business can help solve.

6. Develop startup partnerships and resources

When you're launching a small startup, one of the most important things that your business needs is capital. There are several ways to get going on this front.

When thinking about sources of funding for startups , consider startup grants, startup loans, startup investors, and startup accelerators.

7. Write a startup marketing plan and startup budget

Your startup business plan is almost complete! All that's left is to create a startup marketing plan and budget. Your startup marketing plan will help you define your company’s target audience and brand image.

The startup budget is an integral part of any startup that helps you take the guesswork out of writing expenses.

Examples of startup business plans

Business plans differ based on the nature of the business, target market, competitive advantage, delivery of product/service, scope, and size.

Though the core business plan template remains the same, the content and flow change. Here is an example of an accounting firm's business plan:

Vision statement

At our company, ABC Accounting Services LLC, we work hard to provide the best service and build a strong team. Our vision is for this brand to be recognized as #1 throughout NYC by both smaller businesses and larger corporations.

Our values are reflected in all that we do: integrity (ethical behavior), service (giving top priority to clients' needs), excellence ("doing it right"), teamwork (working together).

Executive summary

ABC Accounting Services LLC is the premier accounting firm in New York City and will handle various financial services. We specialize in audits, bookkeeping, tax preparation/compliance work, and budgeting assistance with high-quality consulting.

Business structure

ABC Accounting Services LLC will be structured as an LLC — a Limited Liability Company in the state of New York. It will provide accounting, bookkeeping, taxation, auditing, and compliance-related services to small, medium, and large enterprises situated in New York City.

Marketing strategy and competitive advantages

Despite the fact that there are many established accounting services firms in our industry, we have a great chance of becoming successful because of the high demand for financial consulting. 

Often, small businesses don't need full-time employees but would rather hire an accounting service provider like us to handle their bookkeeping and tax returns on time every year.

It is best to find a unique niche or carve out your own market in the financial consulting services industry. If you're able to create an identifiable brand identity for your accounting business, then you will likely see less competition from other firms.

Startup milestones

ABC Accounting Services LLC will focus on delivering an exceptional client experience to grow the business and expand market share.

Startup business plan template

Here's a template you can follow when creating your startup business plan:

writing business plan for startup

Top tips for writing a startup business plan

The following tips will help you create a compelling startup business plan without getting overwhelmed.

Know your audience

To write an effective business plan, tailor your language and level of detail to match the audience reading it. 

Have a simple and clear goal

If you have a goal of securing funding for your business, it will be an uphill task with lots of work and research.

Simplifying and breaking down bigger goals into smaller, actionable tasks will assist you in getting through them faster.

Spend time researching

Avoid assuming anything about your target audience, product/service, or the market need.

Spending adequate time and effort on research from primary and secondary sources will help you develop an accurate business plan.

Build a startup toolkit

The process of creation becomes easier if you have the right startup tools and software by your side. Pick the right ones that will help you in your journey.

Keep it precise

Short and easy-to-read business plans are best kept within 20 pages. If you have additional documents, consider adding them as appendices or provide a link if available online.

Ensure tonal consistency

Keep the tone consistent by having just one author write your startup business plan. Otherwise, be sure to edit it thoroughly before you finalize it.

Add reference points

All information regarding the market, your competitors, and your customers should reference authoritative data points.

Be ready to pivot

A business plan should be fluid and flexible. Think of it as an evolving document that will continue to change over time.

How to create a business plan with Wrike

A good business plan is a powerful tool and can be a key predictor of future progress, but simply filling in a startup business plan won’t help you achieve success. You need to create action steps with accountability that will help you reach your goals. 

Wrike’s project management software can help your organization deliver successful projects and maximize individual and team productivity, and our product launch template can help you turn your startup business plan goals into actionable steps. 

Start a free trial of Wrike today to see how it can help to simplify work, showcase progress to stakeholders, and achieve startup success.

Yuvika Iyer

Yuvika Iyer

Yuvika is a freelance writer who specializes in recruitment and résumé writing.

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How to Write a Business Case (With Example & Template)

How to Write a Business Case (With Example & Template)

A business plan is a straightforward document. In it, you’ll include market research, your overall goals for the business, and your strategies for achieving those goals.  But what is a business case and why do you need one if a business plan outlines everything else? A business case takes a closer look at a specific problem and how you can solve it. Think of a business case as the reason you create a project you’re going to manage in the first place.  The article provides a step-by-step guide on how to write a successful business case, including a checklist for identifying problems, researching solutions, and presenting to stakeholders. As a bonus, we’ll show you how to use Wrike to manage your product business cases with a requirements management template or implement them with a project scheduling template. What is a business case? A business case is a project you’ll assemble for identifying, addressing, and solving a specific business problem.  The key to a business case is the change it creates in your business. Developing a business case starts with identifying a problem that needs a permanent solution. Without that lasting change, a business case is only an observation about what’s going wrong. A complete business case addresses how a company can alter its strategy to fix that problem. Front-to-back, a business case is a complete story. It has a beginning, a middle, and an end. It typically looks like this: Beginning: Someone identifies a problem within the business and presents the business case to the key decision-makers. Middle: With the project go-ahead, the company launches an internal team to address the business case and deliver results. End: The team delivers a presentation on the changes made and their long-term effects. In short, a business case is the story of a problem that needs solving.   Examples of business cases The problem for many companies is that they can turn a blind eye to challenges that are right in front of their faces. This is even the case when the company has a compelling product to sell. Consider the example of Febreze. In the mid-1990s, a researcher at Procter & Gamble was working with hydroxypropyl beta-cyclodextrin. His wife noticed that his clothes no longer smelled like cigarettes, which was a frequent complaint. P&G had something of a miracle product on its hands. However, their approach was wrong. They initially marketed Febreze as a way to eliminate embarrassing smells. Predictably, the product flopped.  But P&G stuck at it. They had a potential business case on their hands: a highly marketable product proved difficult to market. What was going wrong? Working on the business case from beginning to end provided the answer. After some focus group testing, P&G found out that few consumers recognized the nasty odors they were used to. Instead, they learned to use a different business case for Febreze: it was a cleaning product now, a way to make the house smell nice when the floors are vacuumed and the counters are wiped clean. They gave it its own pleasant smell and fashioned it into a cleaning product. And because it worked so well, so did the campaign.  That’s an example of a business case overall. But let’s get specific: developing a business case is easier when you have a template to look at. Let’s build an example using a made-up company, ABC Widgets, and a hypothetical business case. Let’s call our business case example “Operation Super Widgets”: Business Case: ABC Widgets Section 1: Summary Briefly describe the problem and the opportunities.  ABC Widgets’ latest widget, the Super Widget, is suffering from supply issues, requiring higher shipping costs to procure the necessary resources, and eating into profits. We need to switch to a new supplier to restore the viability of the Super Widget. Section 2: Project Scope This section should include the following: Financial appraisal of the situation. Super Widgets are now 20% more expensive to produce than in the year prior, resulting in -1% profits with each Super Widget sold. Business objectives. To get revenues back up, we need to restore profit margins on Cost Per Unit Sold for every Super Widget back to 2020 levels. Benefits/limitations. Restoring Cost Per Unit Sold will restore 5% of sagging revenues. However, we are limited to three choices for new Super Widget suppliers. Scope and impact. We will need to involve supply chain managers and Super Widget project management teams, which may temporarily reduce the number of widgets we’re able to produce, potentially resulting in $25,000 in lost revenue. Plan. Project Management Teams A and B will take the next two weeks to get quotes from suppliers and select one while integrating an immediate plan to bring in new Super Widget parts for manufacturing within four weeks. Organization. Team Member Sarah will take the lead on Operation Super Widget Profit. Both teams will report to Sarah. This is a bare-bones example of what a business case might look like, but it does hit on the key points: what’s the problem, how can you fix it, what’s the plan to fix it, and what will happen if you succeed? How do you write and develop a business case? When writing your own business case, the above example is a good guide to follow as you get started with the basics.  But, once you’re more familiar with the nuts and bolts, it’s also worth being prepared for some potential roadblocks you could face along the way.  Challenges of writing a good business case Why don’t more companies create a business case? It might come down to a lack of good communication. Many people don’t even know how to write a business case, let alone present one. “The idea may be great, but if it’s not communicated well, it won’t get any traction,” said Nancy Duarte, communication and author who wrote The HBR Guide to Persuasive Presentations. The key challenge, notes Duarte, is taking abstract business concepts (like lagging numbers) and turning them into an immediately recognizable problem. After all, if a company already had perfect awareness that it was making a mistake, it likely would find a way to stop the error in its tracks.  A business case is challenging because it usually means you’ll have to persuade someone that change is needed. And change can be difficult. In a thriving business, it’s especially problematic because it’s easy to point to the bottom line and say that whatever the company is doing is already working. How do you present a business case? The tips and examples above give you some nice remedies for creating a business case without the typical problems. But you’ll still want to present a business case with the straightforward proposals and numbers you’d associate with any new project.  Essentially, it all comes down to how well your business case can persuade the decision-makers. That’s why you shouldn’t just build a case off of raw numbers. The bottom line might be a compelling argument, but it’s not always what “clicks.”  If you’re presenting a business case, you’re a salesperson. And not every sale is a matter of precise logic. It’s also about emotion—the story of why something’s gone wrong and what needs doing if you’re going to overcome it.  The art of a good business case is the art of persuasion. Keep these specific points in mind as you craft one of your own: Point to an example of a bad business case and liken it to the present case. No one likes the idea of watching themselves walk into a mistake. Presenting an example of a business that made the same mistake your company is making and then translating it into the present moment is a compelling way to craft a business case that makes ears perk up. Build a narrative. Nancy Duarte pointed out that in one business case, a client convinced a CEO to follow through with a project by using simple illustrations. It’s not that the idea of adding illustrations to the business case was so great. It’s that the illustrations were able to tell a compelling story about why the case needed to go through. Distill the idea into an elevator pitch. Try this exercise: get your business case down to one sentence. If you can’t explain it any more simply than that, your business case might not be as memorable as it needs to be to sway decision-makers. Use analogies to drive the point home. Let’s say you discovered a problem in a growing business. Overall, revenues are good — but you’ve noticed an associated cost that has the potential to explode in the future and tank the business. But it’s not compelling to use dollars and cents when the business is doing so well. Instead, consider introducing the business case with a simple analogy: “Without repair, every leaky boat eventually sinks.” You now have their attention. Use the numbers to drive the point home, but not to make the point. If you’re presenting a business case to decision-makers, remember that it’s not only the logic of your argument that will convince people — it’s how persuasive you can be. Business case checklist Before you can check “learn how to write a business case” off your list, you have to know the essentials. Make sure you include the following elements in your business case checklist (and, of course, your business case itself): Reasons. This should be the most compelling part of your business case. You can tell a story here. And the most compelling stories start with a loss or a complication of some sort. What is the threat to the business that needs remedy? What are the reasons for moving forward? Potential courses of action. It’s not a complete story until we know the next chapter. A business case isn’t just about the problem — it’s about rectifying a problem through the solution. Recommend a few specific courses of action to help spur discussion about what to do next. Risks and benefits. Not every solution is going to be perfectly clean. There are going to be solutions with downsides. There are going to be costs along with the benefits. Make sure to include each of these to give a clear and complete picture. This is the time to manage expectations — but also the time to inspire action. Cost. What’s it going to cost to complete the project? The people making the decisions need to know the bottom line figure to assess which business cases to prioritize. Timeline. A good project isn’t only measured in dollars but in days, weeks, and months. What is the expected timeline for the business case? How quickly can the problem meet its solution?  With every business case, specificity is key. A vague timeline won’t help — a timeline with specific weekly milestones looks more achievable. To make your business case more compelling, always look for the specific details that tie your story together. Business case template A business case template is a document that outlines the key elements of a business case in a structured format. By using a standardized template, companies can ensure that all relevant information is captured and shared in a clear and consistent manner. Depending on the size of your business and the scope of your project, your business case template can be as detailed or as simple as you like. For a smaller project, you can use a one-pager to get started, detailing the main points of your project, which include: Executive summary: An overview of your project, its goals, and the benefits of completing it for your business Team and stakeholders: A list of the relevant people involved in your project, and their contact information SWOT analysis: An analysis of how your strengths, weaknesses, opportunities, and threats weigh up against your competitors Risk analysis: An overview of the kind of risks that are involved with your project and how you may avoid them Budget and financial plan: Details of your budget and where you may secure financing for your project Project plan: A schedule of how you plan to implement your project and what tasks are involved Let's see what that might look like. Executive summary   Team and stakeholders   SWOT analysis   Risk analysis   Budget   Project plan   How to write a business case with Wrike Wrike’s project management software can step in and turn a business case from the seedling of an idea to a full-fledged initiative.  The requirements management pre-built template can help you document and track project requirements in a structured manner. The template includes sections for capturing stakeholder requirements and business cases, as well as any constraints that may affect the project’s success. By using this template, you can ensure that all necessary requirements are identified and that potential issues are addressed early in the project planning process. If you want to move from the business case description to the actual implementation faster, consider using the project scheduling template. This template can help you create a detailed project timeline with milestones, identify task dependencies, and assign resources. By utilizing this template, you can ensure that the project is realistically achievable and meets all business needs, giving stakeholders confidence in the project’s success.

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  • The Definitive Guide to Writing a Business Plan

writing business plan for startup

  • Startup Culture
  • Business Skills

Last Updated: July 25, 2023 By TRUiC Team

A cartoon man leans enthusiastically over a desk while writing rapidly

This free step-by-step guide to writing a business plan was built just for you, if you aren't really sure what planning a business is all about. To save time, stress and energy we'll walk you through everything you need to know without fluff or heavy brain work.

Instead, we're focusing on the basics. If you're looking to create a super-dense collegiate 40-page plan, then you should probably take a business planning course at the nearest college.

This guide just covers what your average startup needs to dramatically increase chances of follow-through and success. Enjoy!

Note: Business planning software  can help you write a professional business plan that will lead you to success.

Step 1) Create A Business Plan Shortcut

For the sake of argument, let’s say you’re the most gifted cat burglar on earth-- a real savvy savant of the steal. Put yourself in the mindset where strategy and planning are time-erasing pleasures, delicious treats that reward you with immense prosperity-- not complex tasks that can be skipped or shelved.

Too many entrepreneurs perceive putting a business plan together as some kind of chore. It's not. When the product or service is something you believe in, it’s as awesome as it is for those cat burglars in the movies, except you're plotting honest work.

Fact : It’s possible to create your initial business plan in less than an hour!

Let’s build a “lean plan” that’s simple to create and helps you identify core assets. You start with a pitch, a single page overview which can become your executive summary later on. It’s your business strategy all on one page that's easy to update as you evolve.

You may be thinking,

“ Wait a minute. If I’m not raising money from investors, why do I need a pitch? ”

Well, after years working with entrepreneurs we've found a pitch is really the ideal format to document your business idea , share it with others, and quickly adjust as you learn more about/analyze how you’re going to build your brand.

Furthermore, once you have your pitch done you can easily convert it into a presentation-ready business plan with massive clarity. To begin, follow the simple outline below or allow tools like LivePlan (what we used for Startup Savant) to walk you through the entire process with examples and video tutorials.

What To Include in Your Pitch

As you tackle your one-pager, mentally channel Twitter and try to keep each section as short/concise as possible-- the size of a solid tweet.

  • Mini-Pitch : Typically a refined sentence summarizing your USP (unique selling proposition).
  • Market Need : The problem your business solves for your customers.
  • Your Solution : How you’re solving the problem through your products and services.
  • Primary Competition : The products and services your customers choose today instead of yours.
  • Target Market : This is where you detail your ideal client and niche.
  • Sales & Marketing : How you plan on marketing.
  • Budget & Sales Goals : How much do you project/calculate you’ll sell and how much is it going to cost to make your product or deliver your service? Also, show other key expenses when your business is up and running.
  • Milestones : What you’ve achieved so far and your major goals for the next few months and years.
  • Team : Why you and your team are the right people to make your company successful.
  • Partners & Resources : List primary companies/organizations needed to go the distance.
  • Funding Needs : If you need to raise money, how much and where will this capital be going (channels)?

That might seem like a fair amount of work if you’ve never put together a real pitch before, but remember, that’s just one page of content. Another way to look at it is a one page resume for your business.

A Couple Writing Tips

First, you start with the putty. Don’t try to self-edit or curate, just barf everything out on paper as it flows from your brilliant mind. Format each section out and just let it go. That’s putting the basic shape together.

Now you need to let it dry, so walk away for a day (week) or two. After that, begin chipping away and condensing. Cut the fat and keep tightening the ideas until you’re down to one page. Be brutal! Stick to the facts. Numbers are easier, but when you’re tackling words remember the average person these days has a shorter attention span (if not compelled by your ideas) than a goldfish.

Taking Action on This Step

Create a pitch outline from the points mentioned above and refine down to one or two sentences. If you need help, check out LivePlan. It’s a solid tool that walks you through the entire process. Plus, they offer a 50% Discount .

Step 2) What To Include in Your Plan

Now that you have a running outline, it’s time to go deeper into the framework of your platform.

Perhaps you’re thinking the one-page pitch is all you’ll need? That would be like going on a road trip in unfamiliar territory with a map that only shows destinations-- no routes, no roads, no other icons whatsoever. Even if you never plan on showing this to anyone, the process of creating a solid plan optimizes everything about you and your business! Here’s a quick overview of what you need to include in your business plan:

  • Cover Page/Pitch
  • Executive Summary
  • Products & Services
  • Target Market
  • Marketing & Sales Plan
  • Milestones & Metrics
  • Company & Management Team
  • Financial Plan

If you need extra space for product images, detailed financial forecasts, or general additional info, use the appendix. There are three layers of complexity here. First, your pitch with a very brief summary. Then, your Executive Summary that adds details and context. Then into the finer points of the overall business plan.

Not too shabby, right?

Taking Action on The Step

Please revisit your pitch and find a good way to optimize it just a smidgen. The better your pitch, the better the overall plan.

As you fill in the structure, first focus on providing “mental barf” data you can go through and optimize later. Remember, if you need help, LivePlan will walk you through the entire process with video tutorials and examples.

Step 3) Create a Unique Selling Proposition

When copywriters are given a business idea to optimize, they often begin by defining the USP (unique selling proposition) and mini-pitch. A USP can be just a couple words or an incomplete sentence, while the mini-pitch is usually one or two concise sentences.

Just in case you’re fuzzy on the whole copywriter thing, these folks are paid big bucks to write sales and marketing copy which often includes core slogans.

As an example, here’s what the USP and Pitch for Startup Savant sound like:

USP : " Entrepreneurship Simplified "

Pitch : " Startup Savant is a free website that shows you how to start a business and own your future ." Now let’s get past the “How to Write Your USP 101” stuff and dive straight into three core truths.

USPs & Pitches Evolve

The first thing a copywriter will tell you if you’re struggling with this is to relax. They know sales and branding copy optimizes (matures) over time, especially in the first 2-5 years in business.

If possible, avoid thinking your USP is set in stone, never to be altered. It’s more like a sculpture that the market chips away at. Your pitch evolves as you and your platform do. What matters is whether your USP & Pitch are as refined as they can be based on where you are now.

  • USPs can be creative & full of personality, but they also need to make sense.
  • Is your pitch wordy and confusing? Hazy or unclear?
  • Sometimes you have the right words, they just need to be in an optimized order.

Always be ready to “kill your darlings” as copywriters would say. Meaning, get rid of any and all words,

“ That aren’t necessary for the idea or concept you’re conveying to make perfect sense within the context it’s delivered, and to whom it’s being written to. ”

You can begin with half a page, but systematically chisel down to a core concept like, Entrepreneurship Simplified.

Your Ideal Customers Will Do It For You

Copywriters care what you have to say as a business owner or marketing manager, but they know you’re not the ultimate authority in terms of advertising copy.

They’re writing for buyers. In any and all ways your business can optimize over the years, your customers, clients and users should steer the course as much as possible. Be on the lookout for their valuable signals and indications!

Hop at 20 Questions

Copywriters ask TONS of questions. They’re a bit like copy-detectives in how they search high and low for very precise data from their clients. Never fear giving your users, clients or customers a megaphone with which to bark their concerns.

We all love sharing our opinions, right? Yes we do. Let us. Prompt us. Ask us. Bribe us with incentives and discounts… then listen… carefully. Easily 9 out of 10 entrepreneurs are given the ultimate USPs on silver platters by their customers but fail to recognize when they see, read, or hear them.

  • If you’ve been stressing on your USP, relax. If it doesn’t feel perfect right now, or 100% distilled, let it happen naturally.
  • Your audience can and will steer the course if you choose to notice their cues. Ask three people you haven’t spoken to before how they feel about your product or service.
  • Are there any indications out there waiting to be plucked? Blog or social media comments and reviews are primary starting points. It only takes one solid indicator for the magic “pivots” to cause your business or brand to see huge boosts.

Step 4) Crafting the Executive Summary

In brief, what exactly is an executive summary? An executive summary (ES) is an overview of your business and your vision. It comes first in formal/informal business plans and is ideally 1-2 pages.

The ES introduces your business to your reader. If you don’t nail it, no one’s going to read any further. And if an ES sucks, despite it being professionally crafted, then the business model itself needs work or isn’t worth your time. Every ES should include a brief overview of the following:

  • The problem your business addresses.
  • Your solution.
  • Your target market.
  • Why the timing’s right for your brand.
  • Financial forecast highlights, along with initial/current customer acquisition costs (CAC) and lifetime customer value (LCV).

If you’re raising money or presenting to investors, you’ll also want to cover:

  • Your existing team and partners.
  • How much money you’re looking to raise and the type of exit strategies in place.

Ideally your ES should fit on one or two pages and be able to stand alone, apart from your business plan. A common strategy is to send your ES out to investors/family/friends and then the complete plan if more detail is requested.

Remember to try and position your writing for people who don’t know anything about your business before they start reading. Explain things simply so that anyone can understand your opportunity, whether they be an in-tune player, an 8th grader, or a grandma.

  • Over the next couple weeks, refresh your ES!
  • Who is the first person you’re going to send your ES to that has no real previous knowledge of what your business is? It helps having someone in mind when writing.
  • Find one amazing ES to read over and see what you can learn from it. Here and here are two great examples.

Well done, in the next step we’ll help you explain your product or service and how it makes an impact on customers.

Step 5) Understanding Customers

Once upon a time there was this lovely, vibrant and ambitious entrepreneur who decided to sell organic breast enlargement cream. It sold well for a while, but then her numbers plateaued, and eventually began to decline.

She knew her business needed a makeover after years in the trenches. So, she created an automated incentive program, a 25% discount coupon code offer sent with every order in exchange for an anonymous review with a photograph. Just a simple before/after image showing the front of their body from neckline to belly button (to confirm usage).

They started rolling in and here are the gems she unearthed :

  • A small portion of her customers were husbands buying a discreet gift for their wives/girlfriends, but most (85%) were transgender folks in transition.
  • For the vast majority of her cis-female customers, larger breasts had more to do with enhancing self-esteem/identity and filling out clothes than attracting mates.
  • Almost 100% really hammered down on the fact her cream was all-natural, organic and didn’t cause irritation or allergic reactions.

She went back and dusted off her original copy she put together years before.

From: “ A certified organic breast enlargement cream. ”
To something more along the lines of: “ Increase confidence and femininity through an organic non-allergenic breast enlargement cream. ”

When stuck in a rut, and we all get there as entrepreneurs, the quickest and most effective way out is to look at your predicament from different perspectives.

Begin with the fundamental question, “What problem does my product/service solve for customers?” then look deeper and from unique angles. Who are your buyers? They have the answer. And remember, actions speak louder than words.

Oftentimes we rationalize buying things for one reason, but in reality have a more potent ulterior motive. Sure, her customers want larger breasts, that’s what prompt initial sales. But the needs her product solves in their day-to-day lives are more interesting. It actually made her customers feel more confident, happy, and healthy.

Find one deeper way your product or service materializes in everyday life for your customers. Pay close attention to the simple verbiage you and others use to describe it, e.g. “Your earphones really get rid of all the noise on the bus.”

If possible, get hold of one fresh buyer perspective. Who and where are they? That woman in our example had spent years excluding nearly half her customer base in her advertorial copy. Do you use your own product or service? If so, find a way to record yourself explaining it in the most natural language possible. Use a smartphone or leave yourself a voicemail. Then, just listen.

But wait, what if you’re just starting out and don’t have much to draw on in terms of direct customer or user feedback? Glad you asked! In the next section we’re going to talk about competition, which is another valuable source of indicators.

Step 6) Leveraging Competition

What products and/or services are people choosing instead of yours?

Whether you’re new to the market or not, these so-called “competitors” are really the ideal source of optimization for your brand. And it’s not about being better per se. All things equal, it’s more about uniqueness.

Would you rather be a prettier, more flashy brand trying desperately to stand out, or develop intense brand-character that the right people notice? Once you’ve narrowed down your competitors, look at them from new angles to discover what makes you distinctive.

  • Can they help you better define your target market/sub-markets?
  • How effective are their social media marketing methods and website copy?
  • What do you know about their buyers’ needs?
  • What do they make “stand out” when shoulder to shoulder with your brand?

A common practice entrepreneurs use in pitch presentations to venture capitalists or investors is the Comparison Matrix.

Comparison Matrix

You’ve seen these a zillion times. In short, list your competitors across the top of the page and your features and benefits along the side, then check the boxes for which company offers each. Don’t forget you can be creative here. You may even already use one of these on your website, or within some other marketing media.

  • Could these features and benefits be communicated in different, more compelling ways?
  • What real need-based copy is being left out?
  • How can you simplify it? An easy way is to reduce the number of competitors, so shoot for less players with more interesting copy.

Got time to put something simple together? In reality what we’re looking for are the things about your competitors that help you stand out.

  • Think about your biggest competitor: what do they make obvious about your brand?
  • What are you doing with more personality from the perspective of ideal clients or customers?
  • Could you take your primary competitor’s copy and make it clearer, or more optimized?

All in all, understanding your competition is an important part of the planning process. This is where you find your true competitive advantage.

For a more in-depth look at how you stand up to the competition, check out LivePlan's Benchmark feature. You can see at-a-glance how you compare to companies just like yours. Tell LivePlan your industry and location, and it shows if/how you're doing better or worse than your competition.

Now let's talk about your unique marketing approach. This will help you stand out and connect with your customers on multiple levels.

Step 7) Create a Marketing Plan

Fred is a brand spanking new entrepreneur with a neat new fitness product he believes is going to make a big splash.

He knows exactly who his ideal customers are and his niche is carved out like a Renaissance marble sculpture. Fred’s also managed to get his hands on $100k in debt-free funding (don’t ask us how, this is hypothetical)…

  • His product costs exactly $32 to source, make and package.
  • To be competitive, and account for shipping/processing, he’s going live at $55.
  • Initial margin is about $13 per sale.

Admittedly, that would be pretty amazing, but that’s because we’re coming from a standpoint of experience. Fred’s just showing up to the 21st-Century party. He’s never built, owned, or managed a business before, let alone an ecommerce platform.

He’s never outsourced a graphic artist or content writer before; never had to choose which analytic dashboard to use; never designed a conversion model or tangled with paid advertising platforms. Let’s say Fred called and begged us to lunch. We accepted. And so there we are, the three amigos with Fred sitting on a huge meal ticket drooling for answers.

“ How Do I Market My Product? ”

Once the table conch gets passed to us, we’re going to hit him hard with massive bombshells:

  • Tight responsive funnels can be constructed in a couple months with the right designer, or design agency (website, landing pages, ecommerce setup, branding packages, etc.).
  • Initial market testing and adjustment can be bootstrapped.
  • There are a variety of intuitive and relatively simple software tools, apps, plugins, add-ons, and cloud-based solutions that range from free to expensive.
  • It takes a savvy mix of highly-focused content, social exposure and paid advertising.
  • It takes a team.

Question is, what advice would you give Fred? That’s what we’d like you to consider. And it needs to be marketing-based. The money’s there, the production system’s in place, it’s just a matter of reaching his fitness-based audience and selling.

Let’s imagine Fred’s offered you a lifetime, no questions asked, 5% share of his company from now till doomsday. All you have to do is provide valuable direction in these three areas:

  • Content : What kind of content should he invest in? Blogs, video, infographics, imagery, etc.
  • Social : How to handle social media if he a) doesn’t have the time, b) has no clue what works?
  • Paid Advertising : AdWords? Facebook? TV? Magazine ads? How does he get to buyers?

Just let your mind wander, and don’t worry, in the next section we’ll talk about setting milestones for your business.

Step 8) Set Milestones

If there’s one specific part of the entrepreneurial journey that we get really nerdy about, it’s the way people verbally describe their trials and successes. We’re listening intently for clues as to how they set milestones and metrics and then track them.

Let's spend some time pondering the way(s) you’re measuring your journey and how you approach KPIs (key performance indicators) in relation to both your marketing and your competition. Or, if you’re trying to figure out how viable a product idea is, how you’re calculating acceptable setbacks and struggle.

What have you achieved so far and what are your major goals for the next few months or years?

Sure, it’s cliché to talk about tracking milestones in an era of big data, but truth be told too many aspiring entrepreneurs either skip this part until much further down the road when it can’t be ignored anymore, or they only take it seriously in the beginning then fail to stick to the plan.

Avoid Drowning Out Customer Journey!

Of course there are folks who obsess on this part and try to manage a small army of analytic dashboards and amazing software solutions like FreshBooks or Xero.

Once it becomes too much they end up transforming their perspective of the customer journey from something organic into a mesh of math and graphs. Most of their day is spent pouring over dense numbers or marketing data and trying to figure out how to alter this metric or that.

  • How many of your milestones are focused entirely on your customers instead of you and your business?
  • Instead of views, likes, and shares, what about the amount of service calls you’re getting? How many people are actually reaching out with questions and concerns?
  • How well do your metrics allow you to understand each part of their trek from initially discovering your business to making a purchase?

Find ways to do more with less data. It’s always within reach these days, especially when you’re tuned in to your customers!

  • Find one way to streamline how you’re dealing with milestones/metrics, or how you intend to.
  • Also, look for one single way to be more holistic in your approach to setting goals.
  • Find a part of your customer journey/behavior and decide if current metrics help or hinder it.

Need help in this area? LivePlan has a really impressive dashboard  to help you set goals and stay accountable over the lifetime of your business. This dramatically increases your chances of success.

Step 9) Refine Aquisition Costs

Without question, failure to clearly know the cost of acquiring customers is a mighty new business demolisher. It’s crushed more entrepreneurial dreams than every economic collapse combined since the creation of fiat currency. To come to grips, or optimize your Customer Acquisition Costs (CAC), begin by figuring out exactly how you’re reaching customers.

Or, if you’re building an initial business plan, how much will it cost to reach buyers on the platforms where they spend their time? Your financials should easily allow you to calculate CAC.

Now, in the simplest terms here’s how:

  • Take (estimate) the entire cost of sales and marketing over whatever period of time you’re dealing with, for example when forecasting sales and financials. Make sure to include salaries and any other headcount-related costs.
  • Divide that number by the amount of buying customers/clients/users that were acquired within this time.

If you happen to run a purely web-based business, headcount likely doesn’t need to grow as you scale customer acquisition, but it’s a useful metric to include nonetheless.

The second part of this is your Lifetime Customer Value, or LCV, because in most cases 80% of your revenue will come from 20% of overall customers and happen AFTER the initial sale. Never shortchange the follow-through!

If your CAC is too high, it must be able to come down through optimization. If LCV is horrid, then in the long run it’s an unsustainable business model. Or in other words, once CAC exceeds LCV, something needs to change or you’ll have to close shop.

  • Begin looking at one stream of cost per lead. So for example, maybe a Google AdWords or Facebook advertising campaign.
  • What’s one single way you could get more in touch with a hot-spot within your customers’ buyer experience?
  • Let your mind stew a little on the level of ‘touch’ required to increase LCV. How can you up-sell or generate more revenue from each customer long term?

After you make these calculations three or four times, it starts becoming second nature. LivePlan's forecasting  handles this pretty well. It walks you through creating expenses that are a certain percentage of sales.

Step 10) Forecast Sales

Smart entrepreneurs start forecasting sales early on.

And while ‘the numbers’ part of business planning can be intimidating, this exercise is definitely a small mountain worth karate chopping down.

Keep in mind that if you get stuck at any point, LivePlan's Forecasting and Budgeting  feature is extremely helpful. Whether you're starting a bakery, a subscription software business, or a manufacturing company, LivePlan walks you through the entire forecasting process within a few clicks.

How Detailed Does it Need to Be?

Don’t be too generic and just forecast sales for your entire business. But on the other hand, don’t go nuts and create a forecast for everything you sell if you’ve got a large assortment.

For example, if you’re starting a restaurant you don’t want to create forecasts for each item on the menu.

Instead, focus on broader categories like lunch, dinner, and drinks. Or if you’re starting a clothing brand, forecast key categories like outerwear, casual wear, and so on.

Top-Down or Bottom-up?

In our humble opinion, forecasting “from the top down” can be costly. What that means is figuring out the total size of the market you’re in and trying to capture a small percentage.

For example, in 2015, more than $1.4 billion smartphones were sold worldwide. It’s pretty tempting for a startup to say they’re going to get 1% of that total market. After all, 1% is such a tiny little sliver it’s got to be believable, right?

The problem is this kind of guessing isn’t based on reality. Sure, it looks like it might be credible on the surface, but you have to dig deeper.

  • What’s driving those sales?
  • How are people finding your new smartphone company?
  • Of the people that find out, how many will buy?

Instead of “from the top down,” do a “bottom-up” forecast. Just like the name suggests, bottom-up starts at the bottom and works its way up to a forecast. Start by thinking about how many potential customers you might be able to make contact with.

This could be through advertising, sales calls, or other marketing methods. Of the people you can reach, how many do you think you’ll be able to bring in the door or get onto your website?

And finally, of the people that come in the door, get on the phone, or visit your site, how many will buy?

Here’s an example:

  • 10,000 people see my company’s ad online,
  • 1,000 people click from the ad to my website,
  • 100 people end up making a purchase.

Obviously, these are all nice round numbers, but it should give you an idea of how bottom-up forecasting works. The last step of the bottom-up forecasting method is to think about the average amount that each of those 100 people in our example ends up spending (remember LCV).

On average, do they spend $20? $100? It’s fine to guess here, and the best way to refine your guess is to go out and talk to potential customers. You’ll be surprised how accurate a number you can get with a few simple interviews.

How Far to Forecast

Try forecasting monthly for a year into the future and then just annually for another three to five years.

The further your forecast into the future, the less you’re going to know and the less benefit it’s going to have for your company. After all, the world’s going to change, your business is going to change, and you’ll be updating your forecast to reflect them.

And don’t forget, all forecasts are wrong—that’s fine. Your forecast is just your best guess at what’s going to happen. As you learn more about your business and your customers, you’ll adjust. It’s not set in stone.

  • First, remind yourself that ALL forecasts are wrong. Forecasting is more about learning and evolving.
  • Without adding too much to your plate, take a look at your monthly sales chart and see what kinds of optimizations forecasting might bring to light. If you aren’t already charting sales, start today or begin planning how.
  • Try two easy bottom-up projections with nice round numbers to get the feel for it.

Just remember that sales forecasting doesn’t have to be hard. Anyone can do it and you, as an entrepreneur, are the most qualified to do it for your business. You know your customers and you know your market, so you can forecast your sales.

But if you decide you'd appreciate help, we highly recommend forecasting your sales with LivePlan. LivePlan  automatically generates all the charts and graphs you need and automatically includes them in your plan.

Wrapping Up: Formatting Your Plan

The format of your business plan is critical. It goes a long way toward refining and achieving your goals: raising money, setting the strategy for your team and growing your platform. That being the case, let's breeze through seven tips that can help you create, refine, and optimize your brilliant business plan.

1. Always Start with Your Executive Summary

An ES should be written for ideal readers, customers, potential investors or team members, or even just to help you ‘goal-map’ your way to where you need to be. Regardless, nailing the Executive Summary is critical in terms of understanding the potential behind your business idea.

2. End with Supporting Documents

The appendix is composed of key numbers and other details that support your plan. At a minimum, your appendix should include financial forecasts and budgets. Typically, it’s wise to include a Profit & Loss statement, Cash Flow forecast, and a Balance Sheet. With practice and a smidgen of savvy software like LivePlan these pages can take a couple hours or so.

You might also use your appendix to include product diagrams or detailed research findings, depending on your business, your industry, and how deep your business plan needs to go given the reader/purpose.

Quick Recap of the Lineup Pitch Executive Summary Products & Services Target Market Marketing & Sales Plan Milestones & Metrics Company & Management Team Financial Plan & Appendix

3. Keep it Short

Let’s face it: no one has time to read a 40-page business plan. If you’ve nailed your ES, you’ll want to follow up with 8 to 12 additional pages at most in support. Instead of trying to cram everything in using small fonts and tiny margins, focus on trimming down your writing (‘kill your darlings’). Use direct, simple language that gets to the point.

4. Get Visual

As the old adage goes, “ A picture is worth a thousand words. ” This is especially true when you’re formatting a business plan. Use charts and graphs to explain forecasts. Add pictures of your product(s). Again, there are plenty of software solutions that make it easy to do more showing and less telling. That said…

5. Don’t Obsess on Looks

It’s your ideas that matter. A beautiful plan that talks about an ill-conceived business with incomplete financial forecasts is never going to beat a plan that’s formatted poorly but discusses a great, clearly explained vision. Spending days making a beautiful plan isn’t going to make your business ideas better. Instead, focus on polishing the words. Trim extra content you don’t need, and make sure ideas are well-presented.

6. Keep Formatting Simple

  • For general formatting use single spacing with an extra space between paragraphs.
  • If you’re printing your plan, use a nice serif font like Garamond or Baskerville.
  • If your plan will mostly be read on a computer screen, go with a sans serif font like Verdana or Arial.

Why choose different fonts for on-screen versus off-screen? Well, research shows readers have higher comprehension when they read a document with a serif font on paper, and higher comprehension reading with a sans serif font on a screen.

Don’t stress too much about this, though. Choose any one of the four fonts mentioned above and move forward.

  • For font size, 10 to 12 point is usually ideal and readable for most people. If you need to reduce the font size to make your plan shorter, then you should be cutting content, not adjusting the font size.
  • The same rule goes for margins: use typical one-inch margins to make the plan readable.

Cover pages are always a good idea, too. Use the cover page to show off your logo, tagline, and pitch.

Finally, make sure your plan document flows well and doesn’t have any “widows” or “orphans” when it prints out. A “widow” is when the last line of a paragraph appears alone at the top of a page, and an “orphan” is a single word that gets left behind at the bottom of a paragraph.

7. Get a Second Pair of Eyes

The last piece of advice is to get a second pair of eyes. When you’re the only one working on your plan, you can become blind to common errors. Recruit a friend or family member, or even hire a copy-editing professional to give it that last bit of polish. There’s nothing worse than a plan with grammatical or spelling errors. A second pair of eyes will go a long way toward catching the majority of those potential problems or holes.

  • Who’s your second, third, and possibly fourth pair of eyes going to be?
  • What’s one part of your business plan you could optimize today?
  • What’s one piece of visual content you could add to your appendix?

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How to Write a Business Plan for a Startup

Last Updated: December 22, 2023 Fact Checked

This article was co-authored by Jack Herrick . Jack Herrick is an American entrepreneur and wiki enthusiast. His entrepreneurial projects include wikiHow, eHow, Luminescent Technologies, and BigTray. In January 2005, Herrick started wikiHow with the goal of creating "the how-to guide for everything." He has a Master of Business Administration (MBA) from Dartmouth College. There are 13 references cited in this article, which can be found at the bottom of the page. This article has been fact-checked, ensuring the accuracy of any cited facts and confirming the authority of its sources. This article has been viewed 114,490 times.

As a startup, you will need a business plan. For example, you will need to show your plan to a bank if you are seeking a loan. You also need to show the plan to any investor. Business plans are helpful because they force you to step back and analyze your business critically. You should consider your target market, the products or services you will offer, and your projected finances. Writing a business plan isn’t difficult, though it will require considerable research and planning.

Explaining Your Marketing Plan

Step 1 Describe your mission and objectives.

  • Your mission. What is your driving goal every day? Don’t simply write, “Make money.” Identify how you will make money. For example, you can write: “Our mission is to offer residents of the Lakeview neighborhood the best day spa experience in the Near North Side of Chicago. We are committed to providing value and quality in a fun atmosphere that is never predictable.”
  • Your goals. For example, a day spay might have the following goal: “To attract a minimum of 35 customers each day in the first year of operations.” Make your goals as concrete as possible.
  • Description of the industry. Explain whether the industry is growing or poised for growth in the short and long term.
  • The factors that will drive your success. How will you set yourself apart? For example, “You All Day will separate itself from the pack based on the owner’s deep experience running a day spa in Seattle for ten years. This experience includes familiarity with successful marketing techniques and trends analysis.”
  • Your legal form. Are you a sole proprietorship, partnership, limited liability company (LLC), or corporation? Also explain why you selected this form.

Jack Herrick

Jack Herrick

Don’t skimp on how much energy and time you put into your mission. When asked about creating wikiHow’s mission, Jack Herrick, founder of wikiHow, responded: “We had the whole management team — alongside members of the wikiHow community — reviewing it, discussing it, and going back and forth on the wording. Those two sentences were many hours of work.”

Step 2 Discuss your industry.

  • You can search for industry information in other places. For example, talk to people in your industry at trade shows. Also search online. Many industries have trade associations, which have websites with information.
  • For example, when analyzing the day spa industry, you might want to talk about how it is growing because more upper-income men in urban areas are visiting. (If that’s true).
  • By analyzing the industry, you gain insight as to your likely target market and how you can reach them.

Step 3 Identify your target market.

  • Age. What is the average age of your likely customer? If you don’t know, then visit similar businesses and note the ages of the clientele.
  • Gender. Will men or women—or both—primarily use your products or services?
  • Location. Generally, your market will be located near your business. However, if you have a web-based business, your target audience could have no geographic boundaries.
  • Income level.
  • Occupation. For example, a day spa might target stressed-out white collar professionals.
  • Education level. There is often a link between education, income, and occupation—though not always. For example, a discount bookstore might target an educated audience that nevertheless has a lower income.

Step 4 Scope out your competition.

  • To find competitors, look in the phone book and do a general Google search. Make sure to read their website and stop into the business.
  • If you’re opening a restaurant, you’ll want to see a sample menu, as well as the hours of operation.
  • Also identify indirect competitors. For example, a day spa is competing with more than other spas. You also compete with any business that offers relaxation, such as massage parlors or meditation centers.
  • Name of your competitor.
  • What you offer that they don’t. Think about products and services, but also location, ease of ordering, etc. What will make the consumer experience different at your business?
  • What they offer that you don’t. Identify why you don’t offer their products or services. For example, they may be serving multiple niches while you are focused on only one. Alternately, they may have a favorable location.

Step 6 Describe your products and services.

  • Whether you will sell pizza by the slice, as whole pies, or both
  • How big your pizzas will be
  • What toppings your customers can offer
  • If you will have take-out and delivery options
  • What other food items will be sold

Step 7 Devise your marketing...

  • What type of advertising or promotion will you use? How often will you use paid promotion?
  • What other promotion other than paid advertising will you use? For example, you might use social media, professional networks, etc.
  • Will you create a logo and use it on cards, letterhead, websites, etc.?
  • How large will your promotional budget be?

Discussing Your Business Organization

Step 1 Explain your daily operations.

  • State how much you expect to pay each employee in your first three years of business.
  • Also name your professional support, such as your business lawyer, accountant, and insurance agent. Professionals are independent contractors you use but don’t employ. Calculate how much you expect to spend on each professional.

Step 2 Identify management.

  • You might write: “Lisa Jones is the sole proprietor of You All Day and will run day-to-day operations. As a certified massage therapist, she ran the Relax! chain of day spas in the Greater Seattle area for ten years. A former accountant, Lisa has an MS in accounting from the University of New Hampshire and worked as a CPA briefly before going into the spa business.”
  • If you are asking for a loan, then include resumes for each owner. You can put them in the appendix at the end of the document.

Step 3 Provide personal financial statements.

  • You should create professional-looking financial statements using a spreadsheet.
  • You’ll have to gather quite a bit of information to make the financial statement. For example, you will need information on your assets, investments, and personal debts.
  • You might also want to get a free copy of your credit report and review it as you draft your business plan.

Analyzing Business Finances

Step 1 Explain your start-up costs.

  • Common startup costs include insurance, licenses, equipment, advertising, and employee expenses. [9] X Trustworthy Source U.S. Small Business Administration U.S. government agency focused on supporting small businesses Go to source
  • Also identify the source of the startup capital. For example, if your startup has three initial owners, state how much each is contributing to the business and their ownership percentage.
  • If you need financing, state how much. Include the terms of any proposed loan.

Step 2 Forecast profits for the first year.

  • You’ll need to make some assumptions in order to come up with a forecast of sales. You should explain these assumptions in your business plan.
  • For example, you can write, “We assume continued interest in day spas in the Chicago area.”
  • Another assumption is the overall health of the economy. “Although the Chicagoland economy has grown more slowly than other regions of the country, we assume that the Chicago economy will grow on par with other large metropolitan areas in the coming decade.”
  • You can also include a four-year projection, though this is optional.

Step 3 Identify expected cash...

  • Also talk about how you will build up your cash reserves. For example: “In addition to normal cash flow, we will focus on obtaining sufficient cash reserves for emergencies. These reserves include a line of credit with a bank, which we can use when business is slow. We will also invest excess cash in certificates of deposits at our bank.”

Step 4 Provide a break-even analysis.

  • Fixed costs: these don’t vary depending on your sales volume. For example, your rent, employee salaries, and insurance are fixed costs.
  • Variable costs: these fluctuate depending on your sales and include shipping, inventory, and manufacturing costs.

Finishing Your Business Plan

Step 1 Format your document.

  • Add a cover page to your document. You can title it “[Company Name]’s Business Plan” or “Business Plan for [Your Name].” If you have a logo, include that too.

Step 2 Draft your executive summary.

  • For example, you can write, “You All Day is a start-up dedicated to providing men and women in Chicago a high-quality day spa experience at an affordable price. We specialize in pedicures, manicures, massage, and herbal aromatherapy. The Near North Side of Chicago has grown substantially over the past 20 years, with young, educated millennials settling in to start families. This area is currently under served, and we hope You All Day can meet the demand of the local market.”

Step 3 Assemble the pieces.

  • Executive Summary
  • Company Description
  • Industry Analysis
  • Market and Competition
  • Products and Services
  • Marketing and Sales Plan
  • Operations and Management
  • Financial Forecasts
  • Exhibits/Appendix

Step 4 Add attachments in the appendix.

  • Review for typos and other errors. An accountant should check your numbers to make sure they are accurate.
  • Analyze the overall presentation. Is the information crammed in so that the document is tiring to read? If so, spread out the information so that there is a lot of white space on each page.
  • You can also show the plan to a business adviser. If you live in the U.S., you can show it to someone at your nearest Small Business Development Center, which provides help drafting business plans. You can find your nearest SBDC by visiting this website: https://www.sba.gov/tools/local-assistance/sbdc .

Step 6 Print and bind the plan.

  • You might want to include tabbed partitions between each section of your business plan. This will make it easier for someone to flip through it and find what they are looking for.

Expert Q&A

  • Don’t be afraid to change your business plans as you research and draft the document. That’s one of the reasons for writing the plan in the first place. For example, you might have intended to target women as consumers only to realize that there are growth opportunities with men. You can adjust your plans accordingly. Thanks Helpful 1 Not Helpful 0

writing business plan for startup

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  • ↑ https://business.vic.gov.au/business-information/marketing-and-sales/increasing-sales-through-marketing/do-market-research
  • ↑ https://openstax.org/books/entrepreneurship/pages/7-5-reality-check-contests-and-competitions
  • ↑ https://www.sba.gov/business-guide/plan-your-business/market-research-competitive-analysis
  • ↑ https://www.indeed.com/career-advice/career-development/business-plan-product-description
  • ↑ https://business.gov.au/planning/business-plans/develop-your-marketing-plan
  • ↑ https://openstax.org/books/entrepreneurship/pages/11-4-the-business-plan
  • ↑ https://www.sba.gov/business-guide/plan-your-business/calculate-your-startup-costs
  • ↑ https://www.alberta.ca/preparing-financial-projections-and-monitoring-results.aspx
  • ↑ https://www.pwc.com/gx/en/services/entrepreneurial-private-business/small-business-solutions/blogs/preparing-a-cash-flow-forecast-simple-steps-for-vital-insight.html
  • ↑ https://www.sba.gov/business-guide/plan-your-business/write-your-business-plan
  • ↑ https://smallbusinessbc.ca/article/5-reasons-business-plan-review/

About This Article

Jack Herrick

To write a business plan for a startup, break your plan up into several sections, including an executive summary, a description of your company, an industry analysis, market and competition information, your products and services, your marketing and sales plan, operations and management information, your financial forecasts, and finally, an appendix. To format your business plan, use a professional font, like Times New Roman, and include a cover page with your company's name and logo on it. To learn how to write each section of your business plan, read on! Did this summary help you? Yes No

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How To Write a Business Plan

Stephanie Coleman

We are committed to sharing unbiased reviews. Some of the links on our site are from our partners who compensate us. Read our editorial guidelines and advertising disclosure .

How-to-write-a-business-plan

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

writing business plan for startup

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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?

writing business plan for startup

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.

Related content

  • 5 Best Business Plan Software and Tools in 2023 for Your Small Business
  • How to Get a Business License: What You Need to Know
  • What Is a Cash Flow Statement?

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Start » startup, writing a business plan here’s how to do it, step by step.

At the foundation of every strong business is a solid business plan. Looking to develop a business plan for your new venture? Here’s what to include in each step.

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At the foundation of every strong business is a solid business plan. A business plan outlines important information regarding a company’s operations and goals, and serves as a blueprint for how to achieve those goals. This document not only helps entrepreneurs think through and research their venture thoroughly, it also demonstrates to investors the viability of the business idea.

If you’re looking to develop a business plan for your new venture, it’s important to include all the necessary information. Here are the nine sections to include in a strong business plan, step by step.

1. Executive summary.

Your business plan should begin with an executive summary, which outlines what your company is about and why it will succeed. This section includes your mission statement, a brief description of the product or service you are offering, a summary of your plans and basic logistical details about your team.

2. Company description.

Your company description should further detail the logistics of your business, such as its registered name, address and key people involved. Here, you should also provide specific information about your product or service, including who your business serves and what problem you solve for that population.

3. Market analysis.

Conducting thorough market research can help you understand the nature of your industry, as well as how to stand out from competitors. Include a summary of your research findings in this section. Consider any trends or themes that emerge, what other successful businesses in the field are doing (or failing to do) and how your business can do better.

[Read: How to Conduct a Market Analysis ]

4. Organization and management.

This section should include your business’s legal structure — for example, whether you are incorporating as an S or C corporation, forming a partnership or operating as an LLC or sole proprietor. Provide pertinent information on your leadership team and other key employees, including each relevant individual’s percent of ownership and extent of involvement.

Describe how you will attract and retain your customer base, including what makes you stand out from competitors, and detail the actual sales process.

5. Products/services.

Your product or service is the crux of your business idea, so you’ll want to ensure you make a strong case for it being on the market. Use this section to elaborate on your product or service throughout its life cycle, including how it works, who it serves, what it costs and why it is better than the competition. If you have any pending or current intellectual property, include this information here. You can also detail any research and development for your product or service in this section.

6. Marketing and sales.

In this section, you should explain what your marketing and sales strategies are, and how you will execute them. (Note that these strategies will likely evolve over time, and you can always make adjustments as needed.) Describe how you will attract and retain your customer base, including what makes you stand out from competitors, and detail the actual sales process.

[Read: 5 KPIs to Measure Your Business’s Marketing Success ]

7. Funding request.

If you’re seeking funding, this section is critical for investors to understand the level of funding you need. Specify what type of funding you need (debt or equity) and how much, as well as how that capital will be used. You should also include information on any future financial plans, such as selling your business or paying off debts.

8. Financial projections.

The goal of your financial projections section is to show that your business is viable and worth the investment. Offer a financial forecast for the next five years, using information from current or projected income statements, balance sheets and cash flow statements to support it. Graphs and charts can be an especially helpful tool in visualizing your business’s finances.

9. Appendix.

Finally, use the appendix for any information that could not fit or did not apply to other sections of the document. Information such as employee resumes, permits, credit history and receipts are often included in this section. If you have a long appendix, consider adding a table of contents to make it easier for the reader.

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How to Write a Business Plan, Step by Step

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Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

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.

ZenBusiness

ZenBusiness

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

writing business plan for startup

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?

with Fundera by NerdWallet

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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Free Startup Business Plan Templates and Examples

By Joe Weller | May 6, 2020

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In this article, we’ve rounded up a variety of the top, professionally designed startup business plan templates, all of which are free to download in PDF, Word, and Excel formats.

Included on this page, you’ll find a one-page startup business plan template , a business plan outline template for startups , a startup business planning template with a timeline , and a sample startup business plan .

Startup Business Plan Template

writing business plan for startup

Download Startup Business Plan Template - Word

Word | Smartsheet

This startup business plan template contains the essential components you need to convey your business idea and strategy to investors and stakeholders, but you can customize this template to fit your needs. The template provides room to include an executive summary, a financial overview, a marketing strategy, details on product or service offerings, and more.

One-Page Startup Business Plan Template

One Page Business Plan For Start Up Template

Download One-Page Startup Business Plan Template

Excel | Word | PDF

This one-page business plan is ideal for startup companies that want to document and organize key business concepts. The template offers an easy-to-scan layout that’s ideal for investors and stakeholders. Use this plan to create a high-level view of your business idea and as a reference as you flesh out a more detailed roadmap for your business.

For additional resources, visit " Free One-Page Business Plan Templates with a Quick How-To Guide ."

Simple Fill-In-the-Blank Business Plan Template for Startups

Simple Fill In The Blank Business Plan Template

Download Simple Fill-in-the-Blank Business Plan Template for Startups

This comprehensive fill-in-the-blank business plan template is designed to guide entrepreneurs through the process of building a startup business plan. This template comes with a customizable cover page and table of contents, and each section includes sample content that you can modify to fit the needs of your business. For more fill-in business templates, read our  "Free Fill-In-the-Blank Business Plan Templates"  article.

Lean Business Plan Template for Startups

Lean Business Plan Templates for Startups

Download Lean Business Plan Template for Startups

This Lean business plan template takes a traditional business plan outline and extracts the most essential elements. Use this template to outline your company and industry overview, convey the problem you are solving, identify customer segments, highlight key performance metrics, and list a timeline of key activities.

Business Plan Outline Template for Startups

Simple Business Plan Outline Template

Download Business Plan Outline Template for Startups

You can use this business plan outline as a basis to create your own business plan. This template contains all the elements of a traditional business plan, including a title page, a table of contents, and information on what to include in each section. Simplify or expand this outline based on the size and needs of your startup business.

Startup Business Planning Template with Timeline

Simple Business Planning Template with Timeline

Download Startup Business Planning Template with Timeline

Excel | Smartsheet

As you create your business plan, this business planning template doubles as a schedule and timeline to track the progress of key activities. This template enables you to break down your plan into phases and provides space to include key tasks and dates for each task. For a visual timeline, shade in the cells according to each task’s start and end dates. The timeline ensures that your plan stays on track.

Business Plan Rubric Template for Startups

writing business plan for startup

Download Business Plan Rubric Template for Startups

Excel | Word | PDF | Smartsheet

If you’re starting a business and want to keep all your ducks in a row, use this rubric to evaluate and score each aspect of your startup business plan. You can tailor this template to the needs of your specific business, and can also highlight areas of your plan that require improvement or expansion. Use this template as a tool to make sure your plan is clear, articulate, and organized. A sharp, insightful, well thought-out plan will definitely get the attention of potential investors and partners.

For additional resources to help support your business planning efforts, check out “Free Startup Plan, Budget, and Cost Templates.”

What’s the Best Business Plan Template for Startups?

The template you choose for your startup business depends on a number of factors, including the size and specific needs of your company. Moreover, as your business grows and your objectives change, you will need to adjust your plan (and possibly your choice of template) accordingly. 

Some entrepreneurs find it useful to use a Lean business plan template design in order to jot down a business concept and see if it’s feasible before pursuing it further. Typically one to three pages, a Lean business plan template encourages you to highlight core ideas and strategic activities and remain focused on key points.

Other entrepreneurs prefer a template with a more traditional business plan design, which allows you to go into greater detail and ensure you include every detail. A traditional plan can range from 10 to 100 pages and cover both the high-level and granular particulars of your overall concept, objectives, and strategy.

There is no one-size-fits-all solution, but the following section outlines the minimum that your business plan template should include in order to gain buy-in from potential investors.

What to Include in a Startup Business Plan

Whether you choose to use a template to develop your startup business plan or decide to write one from scratch, you need to include the following elements:

  • An overview of your company and the industry in which it operates
  • The problem you are solving and the proposed solution
  • A description of your product or service offerings, including key features
  • The existing alternatives that customers use and your competitive advantage
  • The target customer segments and the channels you will use to reach them
  • The cost structure and revenue streams associated with your business
  • A financial plan, including sales and revenue projections (ideally 3-5 years)
  • If applicable, the financial requirements to get your business running, including how you will source and allocate funds

Each of the following sections provides an example of a business plan that you can use for reference as you develop your own.

One-Page Lean Business Plan Example

This Lean business plan example displays a visually appealing and scannable one-page illustration of a business plan. It conveys the key strategies you need to meet your main objectives. Each element of this concise plan provides stakeholders and potential investors with links to resources that support and expand upon the plan’s details, and it can also serve as an investor pitch deck.

One Page Business Plan Example

Startup Business Plan Sample

This business plan sample contains all the aspects of a standard business plan. Using a fictional food truck business as the basis for a startup business plan, this sample will give you all the ideas you need to make your plan outstanding.

Basic Business Plan Sample

Download Startup Business Plan Sample - PDF

When the time comes that you need more space to lay out your goals and strategies, choose from our variety of  free simple business plan templates . You can learn how to write a successful simple business plan  here . 

Visit this  free non-profit business plan template roundup  or of you are looking for a business plan template by file type, visit our pages dedicated specifically to  Microsoft Excel ,  Microsoft Word , and  Adobe PDF  business plan templates. Read our articles offering  free 30-60-90-day business plan templates  to find more tailored options.

Top 10 Tips to Create a Startup Business Plan

Putting together a business plan can be overwhelming and time consuming, especially if you aren’t sure where to begin. Below, we share tips you can use to help simplify the process of developing a startup business plan of your own. 

  • Use a business plan template, or begin with a business plan outline that provides all the elements of a standard plan to get your ideas down on paper in a structured manner. (You can choose from the selection of templates above.)  
  • Remove sections from your outline that aren’t relevant or that aren’t necessary to launch and operate your business.
  • Compile the data you have gathered on your business and industry, including research on your target market and product or service offerings, details on the competitive landscape, and a financial plan that anticipates the next three to five years. Use that information to fill in the sections of your plan outline. 
  • Get input and feedback from team members (e.g., finance, marketing, sales) and subject matter experts to ensure that the information you’ve included in the plan is accurate.
  • Make certain that the objectives of your plan align with marketing, sales, and financial goals to ensure that all team members are moving in the same direction.
  • Although this section of the plan comes first, write the executive summary last to provide an overview of the key points in your business plan.
  • Prepare a pitch deck for potential clients, partners, or investors with whom you plan to meet in order to share vital information about your business, including what sets you apart and the direction you are headed. 
  • Who are the founders and management executives, and what relevant experience do they bring to the table?
  • What is the problem you are solving, and how is your solution better than what currently exists? 
  • What’s the size of the market, and how much market share do you plan to capture?
  • What are the trends in your market, and how are you applying them to your business?
  • Who are your direct competitors, and what is your competitive advantage?
  • What are the key features of your product or service that set it apart from alternative offerings, and what features do you plan to add in the future?
  • What are the potential risks associated with your business, and how do you plan to address them?
  • How much money do you need to get your business running, and how do you plan to source it?
  • With the money you source, how do you plan to use it to scale your business?
  • What are the key performance metrics associated with your business, and how will you know when you’re successful?
  • Revisit and modify your plan on a regular basis as your goals and strategies evolve.
  • Use a work collaboration tool that keeps key information across teams in one place, allows you to track plan progress, and captures updates in real time.

Successfully Implement Your Startup Business Plan with Real-Time Work Management in Smartsheet

Empower your people to go above and beyond with a flexible platform designed to match the needs of your team — and adapt as those needs change. 

The Smartsheet platform makes it easy to plan, capture, manage, and report on work from anywhere, helping your team be more effective and get more done. Report on key metrics and get real-time visibility into work as it happens with roll-up reports, dashboards, and automated workflows built to keep your team connected and informed. 

When teams have clarity into the work getting done, there’s no telling how much more they can accomplish in the same amount of time.  Try Smartsheet for free, today.

Discover why over 90% of Fortune 100 companies trust Smartsheet to get work done.

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How to Write a Startup Business Plan

Sveta Cherednichenko

The startup environment is fast, and often, entrepreneurs struggle with finding a balance between planning and high pace. Learn how to plan your future business effectively without losing precious time to market.

Most startups fail . The major reason for that is poor market fit and lack of planning.  This harsh reality doesn’t have to stop you from trying, though.  Entrepreneurs continue to develop and test ideas, and investors pay close attention to business plans and hard data rather than merely a vision. 

Business plans are valuable for companies of all sizes, whether you’re planning to launch a small business or a future corporation.

A business plan helps startups to focus on their future growth based on data-based projections and estimates

In this article, you’ll learn how to write a realistic business plan for a startup that will help you to check your product’s feasibility, keep the focus on your business goals and generate more investments for developing your idea. 

What is a startup business plan?

A startup business plan is a document that describes your product or service from the business and financial perspective. Basically, this plan answers the question, “How will your business make money?”.

To do this, a startup business plan must also answer other supporting questions like:

  • What’s my product or service about?
  • How much initial capital do I have to start this business?
  • What profits do I need to make to keep my business operating?
  • What growth do I expect in terms of users, revenue, etc.?
  • What marketing strategy will allow me to achieve my business goals?

So, a startup business plan is a structured layout of your future business processes, strategy, business structure, and marketing. Creating it isn’t easy, so why do you need it in the first place?

Why do you need a startup business plan?

Founding a business without a plan is like building a house without a blueprint. If you’re lucky and a genius, the house may turn out great. 

benefits of a startup business plan

Although, the probability of it happening is very low: you don’t know what kind of soil you’re building it on, how many floors it’ll have, how much it will cost, and how many people will buy apartments from you. 

So, what other reasons are there apart from predictability? Let’s discuss this.

Higher success rate

The importance of planning for business is proven by studies and data: a plan increases your chances for success by 30%! Why is that? 

A plan gives you a better understanding of your internal processes and allows you to test your ideas. Although a business plan is theoretical, it still uses real concepts and puts your future business in context. 

A plan can be a great starting point for your MVP or a lean startup launch.

More funding

Writing a startup business plan is associated with higher funding. Surely, in the past, companies like Microsoft and Apple started without any plan. For example, Apple had no plan until they needed $250K in financing to build the Apple II inventory.

In the golden age of Silicon Valley, investors were ready to give money to entrepreneurs with disruptive, bold, and innovative ideas. 

Now, everything’s changed. Investors like to see actual plans that bring tangible results rather than blindly trusting entrepreneurs’ visions. So, if you draw up a detailed plan backed by research, you’ll have more chances to get funded and build a successful product. 

Deep understanding of your target market

While writing a business plan for a startup, you’ll think about what factors and market trends can affect your business. These factors include new technologies, current competitors, and potential marketing strategies that work for your business. 

All of this will help you get a deeper understanding of your business, target audience, and your place in the chosen market. 

Focus on effective strategies

A plan that contains all your operations and strategies will help you focus on activities that matter most to your success and generate the most revenue. 

Easier financial planning

Many startups fail after quickly running out of cash because they don’t track it and underestimated their expenses before launch. 

A business plan allows you to focus on what really matters for your ROI and make sure your startup not only stays afloat but also grows at a steady, predictable pace. 

How to write a startup business plan?

A typical startup business plan structure looks like this:

  • An executive summary
  • A description of a company
  • Market research report
  • Detailed product/service description
  • Management and operational structure
  • Marketing and sales strategy
  • Financial strategy

business plan structure

Let’s discuss the key steps to writing a business plan for a startup company. 

Step 1. Write an executive summary

This is an introduction to your plan, and it should contain brief information about your business, its goals, and purpose, and what services or products it will provide. 

The most important characteristic of a good executive summary is clear objectives. You can also describe your vision for your company’s future, as well as your mission and values.

A summary is similar to a pitch: this is the first thing potential investors will read, so you want to keep it short and sweet. I suggest laying it out first but polishing it after the whole business plan is ready.

Step 2. Describe your company

In this section, you need to provide formal information about your company that includes:

  • Your company’s registered name
  • The legal address of your company
  • Names of key people that run the company and their roles, skills, and expertise
  • Your business model

Give information about the structure of your company, including the ownership structure and company hierarchy.

In this section, you can also mention the history of your company, if it has changed over time.

Step 3. Define your business goals

Now it’s time to describe what you plan to accomplish in the near and far future, so make sure you include both short and long-term plans and goals. The goals can differ from expected revenue to the number of employees, users, or offices in different locations. 

This section should justify your request if you’re creating a startup business plan to raise money. Show your investors what you need funding for and how you plan to reach your goals. 

For example, if you’re expanding your team to another location, you can explain how funding will help you fund a new office and expand the team and how you think this will grow your business and sales next year. 

Step 4. Do your target market research

You want to see your company in a market context. For this, you need to perform market research that includes competitor analysis. Look at what similar products already exist in your market, how they generate sales, and what services they provide. 

This will give you an insight into your target market and let you figure out your place in it. 

Investors want to know that there is a market for your product and that it will be a great fit. They also need to see that you’re able to stand the competition and that you can offer the audience something better and different from what already exists.

Along with market and competitor research, you also need to study your target audience. If you already running your company and have clients, describe them and divide them into categories if possible. 

If you don’t have any clients yet, study your competitors and their current customers and develop hypotheses about your ideal customer. Include these parameters into your description:

  • demographic
  • psychographic

Start with broad parameters like:

  • income level

Narrow down each parameter until you get a detailed description of your typical user. You can create user personas based on this research — this will help you later in marketing. 

Step 5. Describe your product or service

In this section, you need to give a detailed description of what you offer. Include this information about your future or current product or service:

  • How your product or service works
  • Your pricing or monetization model
  • What your typical customer looks like
  • Your supply chain and delivering a product or service
  • Your sales strategy
  • Your distribution strategy

Step 6. Outline your company structure

You already mentioned it in your company description section, but now it’s time to give a more detailed description of your company structure. The company structure is all its departments and people responsible for separate business, sales, and marketing processes. 

how to write a startup plan

Show what your company looks like now, the roles and responsibilities of your stakeholders, and how many people are on each team. 

Then, describe how you plan to scale your company as it grows so that you don’t need fundamental restructuring when it happens. 

In this section, you need to clearly state who is responsible for what and who has the final say in key company decisions, especially if you have investors. 

Step 7. Plan your marketing and sales 

It’s common practice to start marketing before the product is even in development, so you need to get your strategy in place. Show your investors that you’ll make sure your target audience finds your product. 

Use your competitor analysis and market research to develop a marketing plan: show what resources you’ll use to get your product in front of the right people. Your marketing plan should cover these topics:

  • Business objectives
  • Marketing priorities
  • Marketing goals and their connection with business objectives
  • Marketing strategy
  • Key marketing activities
  • Risks and dependencies

Be sure to create a strategy for both finding and retaining customers. 

Step 8. Estimate your budget

Now, you need to figure out how much money you’ll need to launch and operate your business. This includes the cost of:

  • Software development
  • Human resources
  • Buying or renting property

Make your estimate as accurate as possible, and if you’re in doubt, always estimate higher — it’s always better to get some extra money as a safety net in case something happens.

Also, estimate a separate budget for your marketing and advertising activities. Many startups make a mistake by only calculating their operating costs, but marketing is a crucial part of business planning. Without it, the whole startup will quickly run out of cash. 

Step 9. Write a financial plan 

This step is different from budgeting. Here, you need to plan your financial growth rather than just figure out how to stay operational. 

If you don’t yet have a business running and you can’t use your historical data, just make projections. Make assumptions about your future growth, and come up with three scenarios: pessimistic, realistic, and optimistic. 

A financial plan should cover 3 to 5 next years with major milestones in consideration, and include both pessimistic and optimistic scenarios

Your financial projections should cover 3 to 5 next years with major milestones in consideration. For example, if you’re planning to open a new office in 2 years, this should be reflected in your financial projections. 

Remember that your company may break even for the first few years or be unprofitable. This is okay, as most of your budget may go to marketing and further growth. Just make sure you’re realistic with your projections and expenses. 

Step 10. Write an appendix

Here, you can add everything that didn’t fit in the previous parts of your document, for example, key people’s resumes, property leases, licenses, permits, legal documents, receipts, credit history, contracts, and bank statements. 

This is it! Your business plan is ready. Now let me give you some tips on making a business plan for a startup that guides you through your business launch and gets you the funding you need. 

Tips for writing an effective business plan

Consider all possibilities.

When developing a business plan, you need to be realistic. Don’t make your plan overly optimistic in order to impress investors. It’s best to consider potential scenarios, risks, constraints, and dependencies. This will prepare you for any circumstances and increase your chances of success.

Proofread your business plan

Grammatical errors, wrong punctuation, and formatting can make a bad impression on investors. That’s why, if your business plan’s main purpose is to raise money, make sure your document looks neat. 

Make your plan flexible

A startup environment is very volatile, so you need to keep your business plan flexible. Be ready to pivot, make changes to your services or adjust your financial plan to real-world circumstances in order to succeed.

Keep it concise

A successful startup business plan includes many details and information about your business, but it still needs to be short and to the point. Keep only the necessary information in your business plan, so it’s clear for your reader, whether it’s you or your investors. 

Startup business plan templates

You can create your business plan yourself from scratch or use special software. Here are some resources that can help you quickly create your business plan documentation:

Enloop 

writing a business plan for a startup company

This is a simple and minimalist business plan software that allows you to create a structured business plan, share it with your co-founders and investors, generate financial reports, and detect issues. It has a 7-day free trial, and the paid plan starts at $19.95 a month.

This is a perfect business planner for startups that offers inspiration from sample business plans and step-by-step instructions. It has templates for creating one-page pitches, financial reports, and business plans. The cost of LivePlan starts at $15 per month.

BizPlan business planner for startups

This service offers you a guided business plan creator, self-guided courses, and masterclasses from experts to help you build an effective business plan. BizPlan is specifically designed for entrepreneurs who seek funding.

Other similar online services for creating business plans for startups are:

  • Business Sorter

Wrapping up

Getting a plan for your business is a great way to increase your chances for success, get focused on what matters most, and generate funds for your future or existing company. 

It may seem daunting at first, especially when you don’t know how your product or service should look to find its place in the market. This is what we can help with. 

Our clients often come to us with just a vision, and we turn it into a fully-fledged working product with defined requirements. To do this, we interview our clients, dive into their business ideas, and perform market research, target audience, and competitor analysis. 

All this is included in our discovery phase. So, if you’d like to build a software product for your business, don’t hesitate to contact us. We can help you create your business plan and research and create a prototype to show to your investors or test in real-world conditions. 

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Writing Business Plans for Startup

Each startup begins with a precise idea and a readiness to work. But before any activities are done, you should first create a business plan mind map to make your business successful.

It may lead you to success assisting in your thoughts organization and capital raising.

According to the industry estimations, 16% of successful startups acted upon their business plan, and 71% of high-developing companies raised more because of a thorough roadmap for their future startup .

A business plan can become your indispensable helper in conducting the viability check and even generating new ideas. However, to obtain success, you should obey the following composition:

  • Executive summary
  • Company Overview

Marketing Plan

  • Finance plan & forecasts
  • The structure of the team
  • Business Plan Components

This article will cover writing a startup business plan, presenting every section in detail. You’ll find out how to create a business plan for your startup, avoiding common mistakes.

Executive Summary

This part serves as an intro, representing your business plan as a whole. Remember: a perfectly made executive summary attracts attention to your business plan , giving your startup essence briefly. Below we’ll find out what parts should be contained in the executive summary.

  • Business description – Get people acquainted with your plans and offers as to your upcoming startup. This part should be about 1-3 sentences and no more.
  • Destination market – Represent the most valuable business goals of your future product, focusing on users’ pains you would like to solve, the market overview, etc.
  • Competition – Write about your possible business competitors and point out characteristics that will make your business unique. For example, offer quality or price much different from your rivals’ ones.
  • Monetary funds – Describe your business aspirations and focus on specific steps that need financial predictions. Then, illustrate your future sales, revenue, and ROI with charts understandable for investors.
  • Staff – Make a short representation for investors about people developing your idea. Describe reasons for their cooperation with you. Characterize shortly each team member as well as their experience level. If you’ve got a shortage of specialists, it’s worth noting as well.
  • Finances and costs – At the end of your executive summary, tell about the amount of money necessary for your concept implementation. Such information should be presented to your future investors beforehand.

6 Essential Tips for an Excellent Executive Summary

We want to offer you some mistake-free tips for an executive summary that will tone all the business plans.

  • Since the executive summary represents your business plan, on the whole, it should be written in the last turn. Complete the survey for the rest of your startup business plan, and then prepare your executive summary.
  • You should grab people’s attention by highlighting the essential characteristics of the startup. Stay away from adding unnecessary details, but care about the excitement and interest that your future customers may feel after reading your executive summary.
  • Your executive summary should be structured appropriately. It will help you send your business plan message to the customers. So, make all the executive summary components short but meaningful to represent clear conclusions to your customers.
  • You should tell your exit strategy to the investors. For instance, mention employee buyout, technical due diligence, or share selling conducted before another company’s acquisition.
  • Investors may be assured if your words are confirmed by undisputed facts. This way, your business aims, perspectives, and experience will be convincing. For that purpose, you can additionally describe a projected share of your business or a market valuation.
  • You should keep away from banalities. Don’t write about your team’s excellence because it’s not interesting for the investors. They have seen a lot of enthusiastic and passionate staff, and it’s not news to them. Describing your project, avoid other cliches like “next Instagram/Facebook,” breathtaking, etc.

Overview of The Company

A company overview is the shortest part of the business plan but one of the most essential. Here you can place your startup history, aims, team structure, and so on. In this part of the business plan, you should write more about the following:

  • The history of your startup. Such a description entirely depends on your company’s current stage. Tell something about your background if you’ve got an existing business: when your company was founded and where, your previous projects, etc. If you are a startup without a great history, you can tell about its founders or the process of finding a technical co-founder , and how it was embodied in life.
  • Your placement. Give a brief description of your company location indicating a physical address or tell about your future location. If you rent or buy an office or have a home, you may also indicate such a fact.
  • An industry you participate in. Don’t write something brief like “We sell/buy articles.” Name a business type your startup relates to healthcare, travel, hospitality, etc. Finally, describe your industry in a few words.
  • A team representation. Start with the info about yourself, and then tell about your team that will work on your startup. If you’ve got a shortage of experts, don’t hesitate to mention it and offer ways for such a shortage to be fulfilled.
  • Ownership and a legal framework. Investors should know such information because taxation details depend on it. Define if you’re in a partnership or a sole proprietorship (S-Corp), LLC or a corporation, and so on. Indicate the founders of the business and how much stock each of them has.
  • Values and missions. Put down one or two creative sentences describing the most valuable goals of your organization. Place there a piece of information that characterizes the most your missions and values.

Such a plan is an essential representation of your marketing aims and advantages. It assists you in producing an appropriate business strategy and finding a business niche to work in. Such a plan contains the following parts competitor survey, target audience research, and SWOT analysis.

Competitor Survey

By conducting a competitor survey, you can find out more about your rivals: their strategies, services, target market, etc. To know more about it, you should keep up the following steps:

Start to search for your rivals. Find their sites in Google by common search requests. Choose the closest to your idea and industry, and make up a list with obtained results. Then dive deeper, checking their customer feedback, social media content, etc.

Investigate them. Continue the in-depth survey. You can do it using such tools as Alexa, SimilarWeb, or Ahrefs which will simplify the process. Pay special attention to such points as:

  • Time spent on the market – Verify the domain registration date, contact information, and server statistics using the WHOis.net resource. It will help you realize if you’re dealing with a business newbie or a big player and count your cards.
  • Organic traffic – Conduct an analysis of your competitors’ popularity by the number of visitors who came through the Google search results. You can do it with the help of Ahrefs or Alexa.
  • Costs – Study their pricing as well. This way, you can define your price, is optimal for your business. However, remember that it shouldn’t be lower than your rivals’ one.
  • References in social media – Find out what people think about your rivals. For that purpose, you can verify the social media shares, engagement ratings, keywords used, and so on with the help of Sprout Social or Followerwonk.

Sort out your rivals. After a detailed study of your competitors’ data, stay informed following their moves. Forewarned is forearmed. With this purpose, you can also divide your competitors into three categories, noting their “danger level”: main (or primary), secondary, and tertiary rivals.

Target Audience Research

To start with, you should identify who’s going to buy your products. Then, make a simple brainstorming session, commonly analyzing your future customers by criteria like gender, ethnicity, age, education and location, income, etc.

For instance, you would like to launch your website selling automotive parts on the US Eastern Seaboard. This way, your target audience will practically look like that: ordinary service station workers or drivers (males) about 18-65 y.o., having secondary education, and located somewhere in Florida with $60,000-75,000 in revenue.

After a general assumption, you should dig deeper, collecting online and offline focus groups. So, carry out profound research. This way, you can define patterns and details that will assist you in a better service organization for your customers.

Study the rivals’ audience. Investigate the marketing channels used by your opponents and bear in mind: that your websites or social media should solve the customer’s pain points better than your competitors’ ones.

Make up a buyer persona. It means you should create a profile of your future average customer according to the research made due to the previous steps. Try to find out their challenges, activities during their spare time, etc.

SWOT Analysis

It is the concluding step in preparing a marketing plan used by entrepreneurs to collect all the necessary points in one place. Undertaking such analysis, you should identify your Strengths , Weaknesses , Opportunities , and Threats . So, let’s discuss it in detail.

  • Strengths. Find out your strongest features that will help you meet challenges and stand your ground in rivalry.
  • Weaknesses. These are the drawbacks that will bother you during your startup development.
  • Opportunities. These possible situations or occasions will assist you in your startup development.
  • Threats. Such outside menaces are not dependent on your decisions; however, they may affect your business.

Finance Plan & Forecasts

You’ll obtain no money if you don’t represent a plan for your future expenses and profit forecasts. Therefore, making a financial plan is also vital for every startup business plan because it helps turn your aims into accomplished missions.

This section should contain the next parts:

  • Accounting balance sheet – Here you should indicate your actual financial resources. However, if you look for investments in your project, you may predict your upcoming financial status in this part of the finance plan.
  • Future cost consumptions – In preparing this part, you need to predict the costs of your concept implementation. It’s necessary to make your startup clearer for investors.
  • Revenue forecasts – In this part of the finance plan, you should predict the number of sales as well as the future revenue of your solution.
  • Future cash flow – Preparing the last part of your financial plan, you need to forecast your upcoming cash flow for a certain period. Define all the spending and profits. It can help you control your company balance at every stage of development.

Tips for a Finance Plan Completion

Making a finance plan is tricky and challenging but crucial for every startup. So, these tips are gathered to understand all the hidden pitfalls better and avoid mistakes during a finance plan completion.

  • Keep being optimistic but realistic – Look positively at your financial perspectives; however, don’t get carried away. You should have a healthy balance between representing your project as an appealing one and the ground truth.
  • Your financial plan should correspond to your business plan. All the digits given in your financial forecasts should coincide with everything mentioned earlier in your business plan. For instance, if you launch your product in a particular month or quarter, your financial plan has to contain all the expenses for an indicated period.
  • If you don’t know how to represent a finance plan and where to start, you can use templates. These templates have got all the columns and sheets needed for your financial estimations and forecasts.
  • Make your economic predictions clear – The majority of investors want to know not only your cash flow but also how you can manage your funds. So prepare enough data (like market and competitor surveys, etc.) to prove your financial guesses.

The Structure of the Team

The last part of your business plan should contain a representation of your startup team to the investors. You need to tell about:

  • Management team. Describe your key workers’ experience, indicating how their skills connect to their responsibilities. For instance, you can show the investors that you have picked a reliable and robust team if you tell them that your Sales VP increased the company profit from 5 million to 15 million, and so on. This way, you’ll also emphasize the value of every team member.
  • Management Team Gaps. It’s okay when startups haven’t got enough management team members while writing their business plans. So, you should list the missing workers and describe the requirements for them, their level of experience, etc. 
  • Board Members. It should be mentioned that startups rarely have a Board of Advisory or a Board of Directors — a group of managers that provide effective leadership for a startup and are paid for that.  However, you can think about it and include it in the structure of your startup team.

Wrapping Up

Writing a business plan is a complex but necessary thing for every startup founder. Bear in mind that you can apply to already prepared templates, though no template matches every business.

If you need more information, you should apply to an experienced team. The skilled specialists will give answers to the most nerve-wracking business questions and provide you with the most appropriate solutions to your problems.

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How to Write a Business Plan for Your Startup

Want to just get started? Click here to sign up for LivePlan and write a business plan today.

Anyone can have a great idea. But turning an idea into a viable business is a different ballgame.

You may think you’re ready to launch a startup company . That’s great news, and you should be excited about it.

Before you start seeking legal advice, renting office space, or forming an LLC, you need to put your thoughts on paper. This will help you stay organized and focused.

You’ll also be able to share this plan with others to help you get valuable feedback. We don’t recommend starting a company without consulting people first.

A typical business plan consists of the following elements:

  • An executive summary
  • A company description
  • Market research
  • Descriptions of products and/or services
  • The management and operational structure
  • Marketing and sales strategy

We recommend using the LivePlan business plan so ftware to help guide you through structuring your business plan in the proper way.

Thoroughly writing out your plan accomplishes several things.

Save your business plan progress in one place across all the document apps you use.

First, it gives you a much better understanding of your business. You may think  you know what you’re talking about, but putting it on paper will truly make you an expert.

Writing a formal plan increases your chances of success  by 16%.

Having a business plan also gives you a better chance of raising capital for your startup  company. No banks or investors will give you a dollar if you don’t have a solid business plan.

Plus, companies with business plans also see higher growth rates  than those without a plan.

image1 5

If you have an idea for a startup company but not sure how to get started with a business plan, we can help you out. We will show you how to write different elements of your business plan and provide some helpful tips along the way.

Top Business Plan Software to Write a Business Plan

If you want to write a business plan, you’ll need a business plan software. Here’s the best options.

  • Enloop  – Best Free Business Plan Software
  • LivePlan  – Best Business Plan Software For Startups
  • GoSmallBiz  – Best Business Plan Software For Business Consulting
  • BizPlan  – Best Business Plan Software For Raising Capital
  • Business Sorter  – Best Business Plan Software For Simple Business Plan
  • PlanGuru  – Best Business Plan Software For Financial Reporting & Forecasting

8 Steps to Write a Business Plan

Here’s what you need to know to get started.

  • Make sure your company has a clear objective
  • Identify your target market
  • Analyze your competition 
  • Budget accordingly
  • Identify your goals and financial projections
  • Clearly define the power structure
  • Discuss your marketing plan
  • Keep it short and professional

Step 1 – Make sure your company has a clear objective

When writing a company description, make sure it’s not ambiguous.

“We’re going to sell stuff”

isn’t going to cut it.

Instead, identify who you are and when you plan on going into business. State what kinds of products or services you’ll be offering and in what industry.

Where will this business operate? Be clear whether you’ll have a physical store, operate online, or both. Is your company local, regional, national, or international?

Your company description can also incorporate your mission statement.

This is an opportunity for you to gain a better understanding of your startup. The company summary forces you to set clear objectives. The type of company you have and how you will operate should be obvious to anyone who reads it.

Include the reasons for going into business. For example, let’s say you’re opening a restaurant. A reason for opening could be that you identified that no other restaurants in the area serve the cuisine you specialize in.

You can briefly discuss the vision and future of your startup company, but you don’t need to go into too much detail. You’ll cover that in greater depth as you write the rest of your business plan.

Keep in mind, this description is a summary, so there’s no reason for you to write a ton. This section should be pretty concise and no more than three or four paragraphs.

Step 2 – Identify your target market

Your business isn’t for everyone. Although you may think everyone will love your idea, that’s not a viable business strategy.

One of the first steps to launching a successful business is clearly identifying the target market of your startup .

But to find out whom you’ll target, you need to conduct market research .

Target market infographic

This is arguably the most important part of launching a startup company. If there’s no market for your business, the company will fail. It’s as simple as that.

All too often we see entrepreneurs rush into a decision because they fall in love with an idea. Due to this tunnel vision, they don’t take the necessary steps to conduct the proper research.

Sadly, those businesses don’t last.

But if you take the time to write a business plan, you may discover there’s not a viable market for your startup before it’s too late. It’s much better to learn this information in these preliminary stages than after you’ve dumped a ton of money into your venture.

To figure out your target market, start with broad assumptions and slowly narrow it down. Typically, the best way to segment your audience is using these four categories:

  • demographic
  • psychographic

Start with things like:

  • income level

As we said earlier, start broadly. For example, you may start by saying your target market lives in North America, and then narrow it down to the United States.

But as you continue going through your market research, you can get even more specific. You can target customers living in New England, for example.

By the time you’re finished, the target market could look something like this:

  • ages 26 to 40
  • living in the Boston area
  • with an annual income of $55,000-$70,000
  • who are into recycling

This profile encompasses all four demographic segments we mentioned earlier. Plus, it’s very specific.

Your business plan should talk about the research you conducted to identify this market. Talk about the data you collected from surveys and interviews .

You’ll use this target market in other sections of the business plan as well when you discuss future projections and your marketing strategy. We’ll cover both of those topics shortly.

Step 3 – Analyze your competition

In addition to researching your target market, you need to conduct a competitive analysis as well. You’ll use this information to create your brand differentiation strategy .

Brand Essence infographic

When you’re writing a business plan, your startup doesn’t exist yet. Nobody knows about you. Don’t expect to be successful if you’re planning to launch a competitor’s carbon copy.

Customers won’t have a reason to switch to your brand if it’s the same as the company they already know and trust.

How will you separate yourself from the crowd?

Your differentiation strategy could involve your price and quality. If your prices are significantly lower, that can be your niche in the industry. If you have superior quality, there is a market for that as well.

Competitive analysis should be conducted simultaneously with identifying your target audience. Both of these fall under the market research category of your business plan.

Once you figure out who your competitors are, it will be easier to determine how your company will be different from them. But this information will be based on your target market.

For example, let’s say you’re in the clothing industry. Your competitors will depend on your target market. If you’re planning to sell jeans for $50, you won’t be competing with designer brands selling jeans for $750.

Or you can base your price differentiation on what you learned about your target market. From there, you’ll be able to identify your competitors.

As you can see, the two go hand in hand.

Step 4 – Budget accordingly

You need to have all your numbers in order when you’re writing a business plan, especially if you’re planning on securing investment funding.

Figure out exactly how much money  you need to start the business and stay operational; otherwise, you’ll run out of money.

The top 20 reasons startups fail infographic

Running out of cash is one of the most common reasons why startup companies fail. Taking the time to sort your budget out before you launch will minimize that risk.

Consider everything. Start with the basics like:

  • equipment costs
  • property (buying or leasing)

Here’s an example  of what this will look like in your business plan:

Startup budget example

These numbers need to be accurate. When in doubt, estimate higher. Things don’t always go according to plan.

In the example above, although the total startup expenses are less than $28k, it may not be a bad idea to raise $40k or even $50k. That way, you’d have some extra cash in the bank in case something comes up.

You don’t want poor budgeting to be the reason for your startup’s failure.

Step 5 – Identify your goals and financial projections

Let’s continue talking about your financials. Obviously, you won’t have any income statements, balance sheets, cash flow reports, or other accounting documents if you’re not fully operational.

However, you can still make projections. You can base these projections on the total population of the target market in your area and what percentage of that market you think you can penetrate.

If you have an expansion strategy in mind, this would also be outlined in your financial projections.

These projections should cover the first three to five years of your startup. Make sure they are reasonable. Don’t just say you’ll make $10 million in your first year. In fact, your company may not be even profitable for the first couple of years.

As long as you’re being honest with yourself and potential investors, your financial plan will cover your break-even analysis.

Break-even analysis infographic

While it’s reasonable to expect your sales revenue to increase each year, you still need to take all factors into consideration.

For example, if you’re planning to expand to a new location in year four, your financial projections need to be adjusted accordingly.

You may not be profitable until your third year of operation, but if you’re opening a new facility in year four, that year may have a net loss as well. Again, this is completely fine as long as you’re planning and budgeting accordingly.

Another example of a goal could be launching an ecommerce store in addition to your brick-and-mortar locations. Just don’t try to bite off more than you can chew. Keep everything within reason.

Step 6 – Clearly define the power structure

Your business plan should also cover the organizational structure of your startup. If it’s a small company with just you and maybe one or two business partners, this should be easy.

But depending on how you’re planning to scale the company, it’s best to get this sorted out sooner rather than later. Here’s an example of what your organizational chart  may look like:

Organizational chart example

It’s really important to have this hierarchy in place before you get started. That way, there’s no debate over who reports to which position. It’s clear who is in charge of specific people and departments.

Don’t get too complex with this.

If you put too many layers of managers, directors, and supervisors between the top of the chart and the bottom of the chart, things can get confusing.

You don’t want any instructions or assignments to get lost in translation between levels. You also don’t want anyone to be confused about who is in charge.

This is an opportunity for you to outline how your company will operate in terms of board members and investors. Who has the final say in decisions?

While we understand you may need to give up some equity in your startup to get off the ground, we recommend keeping the power in your hands.

Step 7 – Discuss your marketing plan

Your marketing plan relies on everything else we’ve talked about so far.

How will you acquire customers based on the market research of your target audience and competitive analysis?

This strategy needs to be aligned with your budget and financial projections as well.

We could sit here and talk about different marketing strategies all day. But there’s no right or wrong way to approach this for your startup company.

Our recommendation would be to stay as cost-effective as possible. Be versatile and well-balanced too.

Acquiring customers is expensive. You don’t want to dump your entire marketing budget into one strategy. If it doesn’t work, you’ve got nothing to fall back on.

Take these categories into consideration when you’re coming up with a marketing plan:

Marketing plan infographic

Before you try anything too crazy, get the basics sorted out first:

  • launch a website
  • stay active on social media platforms
  • start building an email subscriber list
  • focus on customer retention
  • come up with customer loyalty programs.

Don’t ease into this one step at a time. Come out fast. Even before your company officially launches, you can start building your website and social media profiles.

The last thing you want is for consumers to find out about your brand but then be unable to find your website or contact information. Or worse, get directed to a website that’s broken or unfinished.

Step 8 – Keep it short and professional

We’ve talked about many different components of your business plan. It may sound overwhelming, but don’t be alarmed.

This shouldn’t be a 100-page dissertation.

You definitely want it to be detailed and thorough, but don’t go overboard. There’s no exact number of pages it should be, but have at least one page per section.

It should also be written cleanly and professionally. Don’t use slang terminology.

Proofread it for grammatical and spelling errors.

Remember, you may need to use this to raise capital. People may be hesitant to give you money if you overlook the small stuff like proper grammar.

Launching a startup company is exciting. It’s easy to get so caught up in the moment that you rush into things.

If you want to set yourself up for success, you need to take a step back and plan things out.

Going through the process of writing a formal business plan will increase your chances of securing an investment and also improve your potential growth rate.

The market research you’ll need to conduct in order to write this plan will also help you determine whether this is a viable business venture to proceed with.

If you’ve never written a business plan, use this post as a guide for what you should include. Follow our tips for best practices.

Writing a business plan may seem like a tedious task right now, but we promise it will keep you organized and save you lots of headaches down the road.

Get started by using LivePlan business plan software to create your perfect business plan today. Good luck!

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Startup Business Plan

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Starting a business is an exciting and overwhelming prospect at the same time. Having a business gives you autonomy but comes with a lot of responsibility at the same time.

But you don’t need to worry! If you plan your business down to the last detail, all the overwhelming aspects of your business can become easier to manage.

Proper business planning also helps you get the maximum out of your business efforts and writing a business plan is the first step for any business planning.

A well-written business plan helps you grow your business rapidly and optimally. To make the business plan writing process easy and faster, we have created this startup business plan.

First, let’s understand an important question.

What is Business Plan Template?

A business plan template is a guide that consists of an outline of all the required sections of a perfect business plan. It also includes step-by-step instructions on how to write each section of the business plan.

A good business plan usually consists of an executive summary, business overview, market analysis, operations plan, and so on.

Now that you know what a business plan template is, let’s move on to understand why you need one.

Why do you need a business plan for your startup?

If you’ve recently set up your startup business, it’s understandable why you might be dumbstruck. There’s a lot that needs to be done and it’s not always obvious why. Fortunately, we can help you create a business plan. Some of the reasons why you need a business plan are:

  • Getting started: Getting a business up and running may seem chaotic. You may be unsure of where to begin, and here’s when a business plan can help you set things straight. It helps prioritize and organize your business activities.
  • Predict challenges: Creating a startup business plan helps determine the risks and obstacles that your startup is likely to face in the future. This helps you stay prepared with suitable tactics to overcome these challenges.
  • Funding: Attracting investors to score funding is essential for startups. Whether you’re applying for a loan or seeking investors, a business plan helps gain their trust. Having a business plan conveys that you are serious about your business and are trustworthy.
  • Goals and milestones: A business plan helps you create measurable goals . It further helps induce focus and track your progress. Witnessing the progress motivates you and your team to perform better and achieve more milestones.
  • Finances: Finances are one of the trickiest aspects of a business, especially for a startup. Every decision you make has a financial implication. Hence, it is vital to consider every aspect in decision-making. A business plan helps you manage, track, and predict your finances.
  • Revising strategies: When you’re just setting up your business, you’re bound to make the wrong assumptions. A business plan helps you identify your mistakes and revamp your strategies to get back on track.

Types of Business Plan Template

Moreover, business plan templates come in different forms and you can select the one that fits your needs the best.

Here are the two most common ones:

Simple Business Plan

Traditional business plan.

Let’s understand what’s the difference between these business plans and which one is best for you.

A simple business plan template is super handy to write a quick and concise business plan.

It helps you cover all the pointers necessary to attract investors as well as for creating a well-rounded plan.

A lean business plan is not only easy to write but it is also written in a way that helps you take action to solve business problems as well as to introduce product and service-based solutions in the market.

Here are the 9 sections of a simple or lean business plan:

  • Problem:  This section consists of a brief description of the market problem you are trying to solve with your product or service.
  • Solution:  This section would consist of how you’ll solve the concerned market problem, and how is your solution different from the already existing ones.
  • Key Metrics:  Include all your data including sales target, break-even analysis, funding requirements, and so on in this section.
  • Unique Proposition:  In this section, you’ll describe the USP of your product and the data to support your claim. It can either be in the form of surveys or customer and competitive analysis.
  • Unfair Advantage:  This section will help you take note of all the unfair advantages of your competitors and how you’ll prevent them from using the same.
  • Channels:  In this section list down mediums through which you can market and distribute your product or service.
  • Target Audience:  Through this section, you’ll describe the key attributes of your ideal customer or draw out your customer persona .
  • Cost Structure:  This section would consist of the cost structure and describe its feasibility.
  • Revenue Streams:  In this section list out your revenue stream and when you plan on starting it.

In conclusion, a lean business plan is a great tool if you are just starting and don’t want to get into the hassle of writing a 30-page-long business plan . Moreover, it can also serve as a pitch for investors.

But despite all of its advantages, a lean business plan might not be your cup of tea. Or if you plan on growing your business you might need a more detailed and elaborate plan.

And for that, a traditional business plan is a very handy tool. It might seem tedious to write, but it acts as a guide at every step of your business.

And here’s what you’ll include in a traditional business plan.

A traditional business plan is a living document that grows alongside your business. It helps you grab opportunities unforeseen by unplanned businesses and helps you tackle obstacles smartly and smoothly. A business plan is one of the best investments of time that you can put into your business.

Here are a few major sections of a traditional business plan:

  • Business Overview
  • Mission Statement
  • Product/Service Summary
  • Market Opportunity Summary
  • Traction Summary
  • Vision Statement
  • Capital Request
  • Problem Analysis
  • Market Size & Growth
  • Market Trends
  • Market Segments
  • Industry Success Stories
  • Market position
  • Unique selling position
  • Pricing strategy
  • Value to customer
  • Revenue Channels
  • Critical Costs
  • Cost Maturation & Milestones
  • Investment Costs
  • Operating Efficiencies
  • Competitor 1
  • Competitor 2
  • Similarities & Differences
  • Customer Definition
  • Channel Cost Assumptions
  • SWOT – internal and external forces
  • Launch Strategy and Budget
  • Distribution Channels
  • Product Development
  • Manufacturing/Distribution
  • Early Customers & Revenue
  • Testimonials & Social Proof
  • Partnerships
  • Intellectual Property
  • Press Mentions
  • Organization Chart
  • Hiring Plan
  • Funding Goal
  • Use of Funds
  • Why Invest? / Conclusion
  • Income Statement
  • Balance Sheet
  • Break-Even Analysis

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Why Choose a Traditional Business Plan?

Startups are very different from established businesses. The most obvious reason is that startups don’t have any previous data on how to run their business. This is precisely why a traditional business plan will work for any startup.

There are some vital differences between a traditional business plan and a simple business plan. These differences exist due to several reasons:

  • Lack of a definite business model In the early stages, it’s difficult to state the structure of your business model because your business idea and its execution are still in the testing phase. Only after a certain period of trial and error, you would be able to describe your business model.
  • No performance history While creating financial projections, an established company examines its credit history, past sales, revenue, expenditure, and growth rate. In contrast, a startup needs to begin with assumptions. You have to predict sales, costs, expenses, growth rate, etc. To increase the accuracy of your predictions, you need to gather reliable factual data to back your predictions.
  • Increased risk Startups have an increased risk factor compared to established businesses. This is because startups lack a loyal customer base, an expert team, brand recognition, etc. Devise strategies to overcome the potential risks and challenges that may come your way in the future.

These are the reasons why you need a dedicated business plan for your startup that helps focus on the essential elements while setting up your business.

Before you start writing your business plan, go through the below checkpoints to make sure you are ready for it.

Tips to Create a Business Plan for Your Startup

Writing your first business plan can be overwhelming and confusing. However daunting it may seem, it is still something you can’t avoid.

  • Use a startup business plan template: It can be hard to start from scratch, especially when you are unsure of where to begin. A business plan template helps you get started quickly. You can use it to navigate and structure your plan according to your standards
  • Tailor your plan: After choosing a template, it is essential to customize it to your business requirements. Remove sections that are irrelevant and create your business plan based on the purpose you need it for. For instance, if you are building a business plan to get funding, the financial section of your business plan needs more emphasis.
  • Research thoroughly: Every section of your business plan needs extensive research. Collect data about your market, industry, and competitors. Study their pricing strategies and market trends. Run surveys and talk to your potential customers to understand their needs and problems.
  • Compose according to your objectives: It can be easy to lose sight of your objectives and get lost in the process of writing your business plan. To avoid that, make sure that your marketing strategies, operations, and financial goals are aligning with your business objectives.
  • Ask for feedback: Once you finish creating a business plan, get your team and various experts to provide your feedback. This helps you revise and make adjustments to your plan before presenting it to an investor or client.
  • Be prepared to answer questions: Before you present your startup business plan, it is crucial to prepare yourself to answer any questions related to your plan. It can be because the reader of your business plan may not understand a specific topic or want to test your knowledge. Regardless, keep yourselves informed and ready.

Download a sample startup business plan

Need help writing your business plan from scratch? Here you go;  download our free startup business plan pdf  to start.

It’s a modern business plan template specifically designed for your house-flipping business. Use the example business plan as a guide for writing your own.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

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In conclusion, a business plan is an extremely handy device to get the best out of your efforts if you use it the right way. Planning your business involves consideration of several aspects that make up your business like the type of your industry, the stage of your business, the number of competitors, market size, etc.

Nonetheless, business planning always acts as a plus while tackling the challenges your business will face. It provides you with a proper structure to deal with your business problems head-on.

So, are you thinking of starting your own business? Then go ahead and start planning!

After getting started with Upmetrics , you can copy this startup business plan template into your business plan, modify the required information, and download your startup business plan pdf or doc file. It’s the fastest and easiest way to start writing a business plan for your new startup.

Related Articles On Business Plan Writing

  • How to Write a Business Plan Step by Step
  • Deciding the Ideal Length of Your Business Plan
  • How to Write an Operations Plan for Your Business Plan
  • Browse Through 400+ Free Business Plan Examples
  • How to Design a Detailed Table of Contents for Your Business Plan

About the Author

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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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550+ Free Sample Business Plans

Need help writing your business plan? Explore over 550 industry-specific business plan examples for inspiration. Go even further with LivePlan , which harnesses AI-assisted writing features and SBA-approved plan examples to get you funded.

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Example business plan format

Before you start exploring our library of business plan examples, it's worth taking the time to understand the traditional business plan format . You'll find that the plans in this library and most investor-approved business plans will include the following sections:

Executive summary

The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally only one to two pages. You should also plan to write this section last after you've written your full business plan.

Your executive summary should include a summary of the problem you are solving, a description of your product or service, an overview of your target market, a brief description of your team, a summary of your financials, and your funding requirements (if you are raising money).

Products & services

The products & services chapter of your business plan is where the real meat of your plan lives. It includes information about the problem that you're solving, your solution, and any traction that proves that it truly meets the need you identified.

This is your chance to explain why you're in business and that people care about what you offer. It needs to go beyond a simple product or service description and get to the heart of why your business works and benefits your customers.

Market analysis

Conducting a market analysis ensures that you fully understand the market that you're entering and who you'll be selling to. This section is where you will showcase all of the information about your potential customers. You'll cover your target market as well as information about the growth of your market and your industry. Focus on outlining why the market you're entering is viable and creating a realistic persona for your ideal customer base.

Competition

Part of defining your opportunity is determining what your competitive advantage may be. To do this effectively you need to get to know your competitors just as well as your target customers. Every business will have competition, if you don't then you're either in a very young industry or there's a good reason no one is pursuing this specific venture.

To succeed, you want to be sure you know who your competitors are, how they operate, necessary financial benchmarks, and how you're business will be positioned. Start by identifying who your competitors are or will be during your market research. Then leverage competitive analysis tools like the competitive matrix and positioning map to solidify where your business stands in relation to the competition.

Marketing & sales

The marketing and sales plan section of your business plan details how you plan to reach your target market segments. You'll address how you plan on selling to those target markets, what your pricing plan is, and what types of activities and partnerships you need to make your business a success.

The operations section covers the day-to-day workflows for your business to deliver your product or service. What's included here fully depends on the type of business. Typically you can expect to add details on your business location, sourcing and fulfillment, use of technology, and any partnerships or agreements that are in place.

Milestones & metrics

The milestones section is where you lay out strategic milestones to reach your business goals.

A good milestone clearly lays out the parameters of the task at hand and sets expectations for its execution. You'll want to include a description of the task, a proposed due date, who is responsible, and eventually a budget that's attached. You don't need extensive project planning in this section, just key milestones that you want to hit and when you plan to hit them.

You should also discuss key metrics, which are the numbers you will track to determine your success. Some common data points worth tracking include conversion rates, customer acquisition costs, profit, etc.

Company & team

Use this section to describe your current team and who you need to hire. If you intend to pursue funding, you'll need to highlight the relevant experience of your team members. Basically, this is where you prove that this is the right team to successfully start and grow the business. You will also need to provide a quick overview of your legal structure and history if you're already up and running.

Financial projections

Your financial plan should include a sales and revenue forecast, profit and loss statement, cash flow statement, and a balance sheet. You may not have established financials of any kind at this stage. Not to worry, rather than getting all of the details ironed out, focus on making projections and strategic forecasts for your business. You can always update your financial statements as you begin operations and start bringing in actual accounting data.

Now, if you intend to pitch to investors or submit a loan application, you'll also need a "use of funds" report in this section. This outlines how you intend to leverage any funding for your business and how much you're looking to acquire. Like the rest of your financials, this can always be updated later on.

The appendix isn't a required element of your business plan. However, it is a useful place to add any charts, tables, definitions, legal notes, or other critical information that supports your plan. These are often lengthier or out-of-place information that simply didn't work naturally into the structure of your plan. You'll notice that in these business plan examples, the appendix mainly includes extended financial statements.

Types of business plans explained

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. To get the most out of your plan, it's best to find a format that suits your needs. Here are a few common business plan types worth considering.

Traditional business plan

The tried-and-true traditional business plan is a formal document meant to be used for external purposes. Typically this is the type of plan you'll need when applying for funding or pitching to investors. It can also be used when training or hiring employees, working with vendors, or in any other situation where the full details of your business must be understood by another individual.

Business model canvas

The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea.

The structure ditches a linear format in favor of a cell-based template. It encourages you to build connections between every element of your business. It's faster to write out and update, and much easier for you, your team, and anyone else to visualize your business operations.

One-page business plan

The true middle ground between the business model canvas and a traditional business plan is the one-page business plan . This format is a simplified version of the traditional plan that focuses on the core aspects of your business.

By starting with a one-page plan , you give yourself a minimal document to build from. You'll typically stick with bullet points and single sentences making it much easier to elaborate or expand sections into a longer-form business plan.

Growth planning

Growth planning is more than a specific type of business plan. It's a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, forecast, review, and refine based on your performance.

It holds all of the benefits of the single-page plan, including the potential to complete it in as little as 27 minutes . However, it's even easier to convert into a more detailed plan thanks to how heavily it's tied to your financials. The overall goal of growth planning isn't to just produce documents that you use once and shelve. Instead, the growth planning process helps you build a healthier company that thrives in times of growth and remain stable through times of crisis.

It's faster, keeps your plan concise, and ensures that your plan is always up-to-date.

Download a free sample business plan template

Ready to start writing your own plan but aren't sure where to start? Download our free business plan template that's been updated for 2024.

This simple, modern, investor-approved business plan template is designed to make planning easy. It's a proven format that has helped over 1 million businesses write business plans for bank loans, funding pitches, business expansion, and even business sales. It includes additional instructions for how to write each section and is formatted to be SBA-lender approved. All you need to do is fill in the blanks.

How to use an example business plan to help you write your own

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How do you know what elements need to be included in your business plan, especially if you've never written one before? Looking at examples can help you visualize what a full, traditional plan looks like, so you know what you're aiming for before you get started. Here's how to get the most out of a sample business plan.

Choose a business plan example from a similar type of company

You don't need to find an example business plan that's an exact fit for your business. Your business location, target market, and even your particular product or service may not match up exactly with the plans in our gallery. But, you don't need an exact match for it to be helpful. Instead, look for a plan that's related to the type of business you're starting.

For example, if you want to start a vegetarian restaurant, a plan for a steakhouse can be a great match. While the specifics of your actual startup will differ, the elements you'd want to include in your restaurant's business plan are likely to be very similar.

Use a business plan example as a guide

Every startup and small business is unique, so you'll want to avoid copying an example business plan word for word. It just won't be as helpful, since each business is unique. You want your plan to be a useful tool for starting a business —and getting funding if you need it.

One of the key benefits of writing a business plan is simply going through the process. When you sit down to write, you'll naturally think through important pieces, like your startup costs, your target market , and any market analysis or research you'll need to do to be successful.

You'll also look at where you stand among your competition (and everyone has competition), and lay out your goals and the milestones you'll need to meet. Looking at an example business plan's financials section can be helpful because you can see what should be included, but take them with a grain of salt. Don't assume that financial projections for a sample company will fit your own small business.

If you're looking for more resources to help you get started, our business planning guide is a good place to start. You can also download our free business plan template , or get started right away with LivePlan .

Think of business planning as a process, instead of a document

Think about business planning as something you do often , rather than a document you create once and never look at again. If you take the time to write a plan that really fits your own company, it will be a better, more useful tool to grow your business. It should also make it easier to share your vision and strategy so everyone on your team is on the same page.

Adjust your plan regularly to use it as a business management tool

Keep in mind that businesses that use their plan as a management tool to help run their business grow 30 percent faster than those businesses that don't. For that to be true for your company, you'll think of a part of your business planning process as tracking your actual results against your financial forecast on a regular basis.

If things are going well, your plan will help you think about how you can re-invest in your business. If you find that you're not meeting goals, you might need to adjust your budgets or your sales forecast. Either way, tracking your progress compared to your plan can help you adjust quickly when you identify challenges and opportunities—it's one of the most powerful things you can do to grow your business.

Prepare to pitch your business

If you're planning to pitch your business to investors or seek out any funding, you'll need a pitch deck to accompany your business plan. A pitch deck is designed to inform people about your business. You want your pitch deck to be short and easy to follow, so it's best to keep your presentation under 20 slides.

Your pitch deck and pitch presentation are likely some of the first things that an investor will see to learn more about your company. So, you need to be informative and pique their interest. Luckily, just like you can leverage an example business plan template to write your plan, we also have a gallery of over 50 pitch decks for you to reference.

With this gallery, you have the option to view specific industry pitches or get inspired by real-world pitch deck examples. Or for a modern pitch solution that helps you create a business plan and pitch deck side-by-side, you may want to check out LivePlan . It will help you build everything needed for outside investment and to better manage your business.

Get LivePlan in your classroom

Are you an educator looking for real-world business plan examples for your students? With LivePlan, you give your students access to industry-best business plans and help them set goals and track metrics with spreadsheet-free financial forecasts. All of this within a single tool that includes additional instructional resources that work seamlessly alongside your current classroom setup.

With LivePlan, it's not just a classroom project. It's your students planning for their futures. Click here to learn more about business planning for students .

Ready to get started?

Now that you know how to use an example business plan to help you write a plan for your business, it's time to find the right one.

Use the search bar below to get started and find the right match for your business idea.

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writing business plan for startup

How To Write a Startup Business Plan

This course will teach why a business plan is crucial for startup success and what investors want to see when evaluating one. We will take you through all the steps of writing a business plan and show you why it isn’t just a piece of paper you show investors, but the very DNA of your business.

writing business plan for startup

Table of contents

  • The Business Plan is The Backbone Of Your Company
  • When You're Done Reading
  • What is a Business Plan
  • Here's What to Put in Your Startup Business Plan
  • Useful Tools for Business Planning
  • Convincing Yourself and Stakeholders
  • What are the Main Concerns of Your Investors and Partners?

The Business Plan Is The Backbone Of Your Company

If you’re interested in entrepreneurship or dreaming of starting your own business, you’ve probably also heard about the importance of a Business plan. Maybe you’ve even downloaded one of the endless numbers of templates you can find online. And perhaps you’re already exhausted from just thinking about climbing the Business Planning mountain. If you don’t exactly know where to begin, writing a Business plan can seem like a daunting task. But don’t lose faith! With the right knowledge and tools, It’s actually not that hard.

Writing a business plan as a startup doesn’t have to be a 30-page task. Luckily, more and more investors want to see short, precise, and to-the-point business plans that won’t take them forever to chew through.

This doesn’t mean that your business plan isn’t a vital document for your business. And it doesn’t mean that it’s not a big task either. It just means it’s doable, even without a business degree. 

When You're Done Reading, You'll Know

  • Why you should write a business plan
  • What you will gain from planning your business
  • What elements to include in your business plan..... And everything in-between 🧠

So, What Is A Business Plan? 🧐

The business plan is the backbone of your company. Contrary to popular belief, it’s not “just” a document you need to present to your bank or to potential investors. It’s essentially the creation of your business on a piece of paper. While a piece of paper isn’t an actual business, it is a great way to prepare, control, and grow your idea into an actual profitable business.

A great Business plan will help grow a business up to 34% faster. It also gives you a sense of direction, making it 16% more likely to reach profitability. A Business plan is also a tool to raise the money you need for your idea by showing investors you know how to make your business succeed. 

Don't spend endless amounts of precious time writing a long, formal, perfect document. Instead, think of your business plan as a short(er), sharp, work-in-progress description of your business strategy. Continually reevaluate and update it, and use it as a tool to gain a more extensive understanding of your business and the mission you're trying to accomplish.

Are you looking for a digital template for your startup business plan? We've made one. And it's fully guided and filled with examples from real-life business plans too!  Sign up for Cuttles  and start your planning today. We have a freemium edition so that it won't cost you a penny!

Why Should You Write A Business Plan?

We're going to take a wild guess and say that the entrepreneur inside you would probably instead jump straight to building your  product than write a business plan. Right? It's in human nature to want to skip what is complex, demanding, and tedious. It's universal that people don't want to do homework or their taxes, and business planning sure feels a lot like a mixture of the two. 

But to add some perspective, writing your business plan is an essential part of building your business. And we recommend that you get started as soon as possible while your idea and your motivation are fresh!

Here are the main reasons why you shouldn’t cut corners on this one:

No pain, no money gain

The sad truth is that you'll need a business plan if you want to raise seed money for your idea.   Actually, you'll need one every time you are raising funds. We know we just said that the business plan is not just a document for investors. That is very true. But if you plan to go out and pitch your startup to investors, you will have to show them that you have a good handle on making your business succeed, and the tool for that is a business plan. It's an essential requirement that almost any investor worth their salt needs to see to access if your idea and plan are valid.

... If you would like to learn about where and how to get startup money, this is the article for you!

🧬 You’re building the DNA of your business 

Writing your business plan forces you to think about every detail of your business. It will ultimately make you smarter about the market, your customers, and your competition. It will also help you make important decisions, overcome critical challenges, and minimize the risks that inevitably come with building a startup.

Writing is technically thinking. When you put all the different pieces down on paper, you'll be able to see your company from a birds-perspective, clue all the fragmented pieces together, and see the bigger picture. You'll be able to detect if your master plan makes sense or if you need to make some changes before you hit a wall. 

Remember, most startups fail.  Almost 90% doesn't hit the three-years-of-operation mark. What's crazy is that 50% of startup failure is related to poor planning, so if you're serious about your project, you need to find a way to do business planning. Having a solid plan is key to making your business a success.

Set goals, achieve milestones, prioritize and strategize

Building a business is all about setting goals and reaching them. To do that, you need to strategize, prioritize, and work hard, of course. While a business plan won’t do the hard work for you, it will help you know where to focus your resources and energy.

No need to be book-smart

Okay, we’re pretty sure that you understand the value of business planning now. Let’s move on to actually writing the thing. We’re not going to lie. It will take time to write the first edition of your business plan. The most important things to remember are to keep your business plan short, to the point, and always, always, always have your audience in mind.

Steer clear of technical terms that no one understands. It’s time to make yourself understandable, professional, and to convince and intrigue your team as well as external stakeholders. 

What Sections Do I Need In My Business Plan?

There is a reason why so many entrepreneurs don't prioritize business planning – it's a tedious and challenging task. But don't lose faith. Focus on one section at a time, and before you know it, you'll cross the finish line. We promise!If you would like to give it a go on your own, here are the 11 sections you should include in your business plan:

Your concept

What is the main idea of your business? You want to get people to read your whole business plan. That’s why you should start with:

  • A catchy introduction
  • Your mission and vision statements

The opportunity

Next, it’s all about describing the opportunity you’ve seen. It’s important that you focus on the outside for now and don’t spend a whole lot of time focusing on your company. We’ll save that for later. The opportunity should include:

  • The problem you’ve seen in the market
  • The smart solution to that problem
  • Your company’s unique value proposition
  • The market you want to enter

Your product

Now’s the time to present what your company actually wants to do. Go crazy! The product description includes:

  • The product you want to build
  • Your pricing strategy
  • Distribution channels to get your product from desk to customers

The business model

How are you going to make money and what do you need to do to succeed? In the business model, include these things:

  • The key resources you need to make things work
  • The key activities you’ll need to carry out to make your business work
  • The partnerships you’ll need to establish
  • A description of your cost structure
  • A presentation of your revenue streams and how you’ll ultimately make some cash
  • Your competitors

Time to get to know who you’re up against. This section should present:

  • Your competitive advantages

Your customers

Who’s going to buy your product? This section of your business plan should provide a detailed description of the customers you want to reach and how. Include:

  • Who your customers are
  • The different segments you can divide them into
  • The value you bring to the people you serve

Your marketing plan

How are people going to know about you? This section is all about how to reach your audience. Write about these things:

  • Cover the basics with a SWOT analysis
  • The marketing channels you’ll use to reach your customers
  • How you’ll build a strong customer relationship
  • The brand position you want your business to have

It’s time to break down the road ahead. Describe the steps you need to take to make all of this happen. Include things such as:

  • Key milestones you want to reach
  • Key actions you need to take

Risks and challenges

The better you are at predicting, avoiding, and planning for the things that can go wrong, and the challenges ahead the more likely you will succeed in the game of entrepreneurship. It's a considerable strength to spend time to reflect on what can go wrong and show stakeholders that you're aware.

Introduce your team

Your team is probably your most important asset. It’s the people who will drive your idea to where it needs to be and the people who will convince investors to bet on you. Present your team and the reasons why it's the right constellation to accomplish the mission at hand. 

What’s your closing statement? End your business plan on a high note by presenting the winning argument that’ll ultimately convince people that your idea and your business is destined for success.

And just a friendly reminder. It's not writing a business plan that'll get you ahead. It's going through the actual planning process and doing the work. Combine that with  these steps to start a startup , and you will have a business by the end of it. 

Useful Tools & Resources for Business Planning

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Planning Your Business Is The Same As Convincing Yourself And Your Stakeholders

In the end, the goal of your business plan is to convince - to show that your startup idea is equitable and thereby convincing yourself and others to invest time and money into your business.

Who else should your business plan convince?

Growing your business involves outside stakeholders. From financial investors to partners and employees. We have listed the key agents of your business venture right here:

1. Investors

To evaluate the potential of your business, investors require a solid business plan. They will want to see that you've thought of everything, have a strategy, and that you're going in a smart (yes, that means profitable) direction.

2. Financial sources

You might need capital from banks or financial institutions. To assess the risks of loans, the business plan provides lenders with the right insights to determine that risk.

3. Employees

Acquiring the right employees to help the business prosper takes convincing. Your plan can help employees to understand the goals and how you plan to achieve them.

4. Partnerships

Over time you might find it beneficial to partner with other companies. The business plan will help convince both parties whether joining ranks is the most beneficial move.

What Are The Main Concerns Of Your Investors and Partners? 

We have reduced it to five principles:.

  • To invest in an industry to which they can relate. So, if you are creating a tech-business, this is the area for which you should look for investors as well.
  • To match with a team of people on a personal level. Sometimes it comes down to chemistry. So, if your investors are doubtful about your idea, they might choose to invest based on you, your team, and your professional experience.
  • To find a competitive advantage in the market. It doesn't only matter how big a market you are looking to conquer, but whether you have a competitive advantage in that market.
  • That your business is not just based on dreams but has a valid position in the market. It is key to show investors that your business can attain substantial growth.
  • To show how you plan to cover expenses for your business. This includes the cash flow plan as to how much money you spend and earn.

As your business grows, you may need to refine and change some aspects of your business, such as customer group, product, service, or your target market. When you can identify what challenges your business may be facing, you can adapt to new opportunities.

The bottom Line

If you think business planning is only for business professionals with a five year-degree, you are wrong. Building a business takes work, but anyone can get started with the right tools and mindset to follow their dream. We believe in yours! Ready? Set. Build your business!

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Do you want to increase the odds that your business startup will be a success? Download this step-by-step business plan template to lay the groundwork for your new business.

Writing a business plan allows you to carefully think through every step of starting your company so you can better prepare and handle any challenges. While a thorough business plan is essential in the financing process, it's helpful even if you don’t need outside financing.

Creating a business plan can:

  • Help you discover any weaknesses in your business idea so you can address them before you open for business
  • Identify business opportunities you may not have considered and plan how to take advantage of them
  • Analyze the market and competition to strengthen your idea
  • Give you a chance to plan strategies for dealing with potential challenges so they don’t derail your startup
  • Convince potential partners, customers, and key employees that you’re serious about your idea and persuade them to work with you
  • Force you to calculate when your business will make a profit and how much money you need to reach that point so that you can be prepared with adequate startup capital
  • Determine your target market and how to reach them

A detailed, step-by-step plan gives you a blueprint you can refer to during the startup process and helps you maintain momentum.

What this business plan template includes

Writing a business plan for a startup can sometimes seem overwhelming. To make the process easier and more manageable, this template will guide you step-by-step. The template includes easy-to-follow instructions for completing each business plan section, questions to help you think through each aspect, and corresponding fillable worksheet/s for critical sections.

After you complete the 11 worksheets, you will have a working business plan for your startup to show your SCORE mentor .

Business plan sections covered in this template:

  • Executive Summary
  • Company Description
  • Products and Services
  • Marketing Plan
  • Operational Plan
  • Management and Organization
  • Startup Expenses and Capitalization
  • Financial Plan

The Appendices include documents that supplement information in the body of the plan.  These might be contracts, leases, purchase orders, intellectual property, key managers’ resumes, market research data or anything that supports assumptions or statements made in the plan.

The last section of the template, “Refining Your Plan,” explains ways to modify your plan for specific purposes, such as getting a bank loan, or for specific industries, such as retail or manufacturing.

Complete the Business Plan Template for a Startup Business to create a working business plan for your startup.

Then, contact a  SCORE mentor  to review and refine your plan online or in person.

Quick Start Business Plan The aim of this module is to give you the tools, direction and ideas you need to build a business plan. If you're starting a business then a business plan is essential, because it forces you to think through your ideas and options.

10 Business Planning Tips for Starting a Business In this webinar, you'll learn 10 business planning tips to help you start your entrepreneurial journey on the right path.

Business Plan 101: Sales & Marketing The sales and marketing section of your business plan describes how you intend to sell your product. Learn what you should include in this section.

Copyright © 2024 SCORE Association, SCORE.org

Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.

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Here's Why You Should Use a Business Model Canvas for Your Startup

I s the thought of writing a business plan holding you back from starting a business? If you’re eager to get your business idea off the ground—without the drudgery of creating a massive document first—a business model canvas for startups might be right for you.

What is a business model canvas for startups?

A business model canvas is a quick-start alternative to a business plan. It helps you think through the most important aspects of startup—such as your product or service, your target market, and the resources you'll need to launch—in a brief, chart format.

When to use a business model canvas

Why might you want to use a business model canvas instead of a traditional business plan? Here are some situations where a business model canvas might be appropriate:

  • You suddenly have an opportunity you want to act on. Maybe a restaurant space is for lease in the exact area you dream of launching your restaurant. Perhaps you have the chance to form a partnership with someone who has lots of the resources you need to start a business. Using a business model canvas can enable you to act quickly before opportunity slips away.
  • You want to beat the competition . If you have an innovative business idea, such as a software application or invention, using the business model canvas can help you be first to market. In a highly competitive space, other startups are likely planning launches similar to yours; the business model canvas can help you get the jump on them.
  • You don’t need outside financing . If you are trying to get a bank loan, angel capital, or venture capital, you’ll need to have a traditional business plan ready to show the financing source. But if you have sufficient startup capital on your own, there’s no law saying that you have to follow the traditional business plan format.
  • You want to rapidly assess the viability of your idea . Writing a traditional business plan will reveal any flaws in your idea; however, a business model canvas can help you pinpoint problems faster. Using a business model canvas, you can decide immediately if your idea will fly or if you need to revise it or scrap it and move on to another concept.

Of course, some people just prefer the speed of a business model canvas and don’t want to spend weeks or months crafting a lengthy traditional business plan. If this is you, go ahead and try the business model canvas. Just keep in mind this format isn’t an excuse for neglecting the details of planning your startup.

Other Articles From AllBusiness.com:

  • The Complete 35-Step Guide for Entrepreneurs Starting a Business
  • 25 Frequently Asked Questions on Starting a Business
  • 50 Questions Angel Investors Will Ask Entrepreneurs
  • 17 Key Lessons for Entrepreneurs Starting A Business

What’s included in a business model canvas for startups

The business model canvas for startups takes a high-level view of your business idea and focuses on the key elements you’ll need to make it viable. Developed by Alexander Osterwalder , it’s a one-page document in chart form that covers the nine “building blocks” that help your business startup make money.

  • Key partners : Who are the buyers, suppliers, partners and other alliances that can help you accomplish core business activities?
  • Key activities : What are the most important actions you need to take in order to fulfill your value propositions, strengthen customer relationships, secure distribution channels, and maximize revenue streams?
  • Key resources : What essential resources are needed to launch and run your business and create value for your customers?
  • Unique value proposition : What products and services do you plan to offer? What customer needs do they meet? How do they differentiate your business from your competition
  • Customer segments : What customer groups will your business serve? Identify the customer personas that your business provides value for.
  • Customer relationships : What relationships will you build with your customer segments? What kind of relationship does each customer segment expect?
  • Channels : What distribution methods will you use to deliver your products or services to your target market?
  • Cost structure : What will it cost to start and sustain your business? Which resources and activities will be the most expensive?
  • Revenue streams : How will your business make money? How will you price your products and services? Are there other potential revenue streams?

You can create a business model canvas on paper or a whiteboard. There are also several apps you can use to create your business model canvas; they allow you to incorporate additional information, easily save and share the business model canvas, and more.

Where to get help with the business model canvas

There are several places to get help creating your business model canvas. You can start by taking this SCORE webinar on using the Business Model Canvas. Then visit Strategyzer , Canvanizer and Xtensio to find a business model canvas tool you can use. You’ll also find sample business model canvas examples, resources, and training to help.

Both the traditional business plan and the business model canvas can help startup entrepreneurs evaluate their ideas and make important decisions about startup.

Of course, you can use both methods if you want: Many entrepreneurs start with a business model canvas to give them a “jump start” and then flesh out a traditional business plan further down the road.

(Disclosure: SCORE is a client of my company.)

RELATED: Don’t Waste Time on a Startup Business Plan—Do These 5 Things Instead

Here's Why You Should Use a Business Model Canvas for Your Startup

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COMMENTS

  1. How To Write A Business Plan (2024 Guide)

    Describe Your Services or Products. 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 ...

  2. Write your business plan

    Executive summary. Briefly tell your reader what your company is and why it will be successful. Include your mission statement, your product or service, and basic information about your company's leadership team, employees, and location. You should also include financial information and high-level growth plans if you plan to ask for financing.

  3. How to Write a Business Plan: Guide + Examples

    Download a free one-page plan template to write a useful business plan in as little as 30-minutes. Explore over 500 real-world business plan examples from a wide variety of industries. Try the business planning and growth tool trusted by over 1-million business owners.

  4. How to Write a Simple Business Plan

    Write the Executive Summary. This section is the same as in the traditional business plan — simply offer an overview of what's in the business plan, the prospect or core offering, and the short- and long-term goals of the company. Add a Company Overview. Document the larger company mission and vision.

  5. How to Write a Startup Business Plan

    Keep it simple and precise. Begin by writing a one-sentence startup business plan introduction that showcases the core customer need/pain point and how you propose to solve it. 3. Develop startup goals and milestones. Next, write down the milestones and goals for your startup business plan.

  6. How To Write A Business Plan: A Comprehensive Guide

    1. Investors Are Short On Time. If your chief goal is using your business plan to secure funding, then it means you intend on getting it in front of an investor. And if there's one thing investors are, it's busy. So keep this in mind throughout writing a business plan.

  7. How to Write a Business Plan: Beginner's Guide (& Templates)

    Step #3: Conduct Your Market Analysis. Step #4: Research Your Competition. Step #5: Outline Your Products or Services. Step #6: Summarize Your Financial Plan. Step #7: Determine Your Marketing Strategy. Step #8: Showcase Your Organizational Chart. 14 Business Plan Templates to Help You Get Started.

  8. How to Write a Startup Business Plan

    Outline your timeline for launching your business or project. Timelines are always subject to change, so make sure you account for alternative scenarios and setbacks. For your one-page business plan, talk about your general timeline, its phases and why it's a realistic goal. 7. Your marketing plan.

  9. How to Write a Business Plan: A Step-by-Step Guide

    Step 7: Financial Analysis and Projections. It doesn't matter if you include a request for funding in your plan, you will want to include a financial analysis here. You'll want to do two things here: Paint a picture of your business's performance in the past and show it will grow in the future.

  10. The Definitive Guide to Writing a Business Plan

    Finally, make sure your plan document flows well and doesn't have any "widows" or "orphans" when it prints out. A "widow" is when the last line of a paragraph appears alone at the top of a page, and an "orphan" is a single word that gets left behind at the bottom of a paragraph. 7. Get a Second Pair of Eyes.

  11. How to Write a Business Plan for a Startup (with Pictures)

    Make the business plan look as professional as possible. Open a word processing document and set the font to Times New Roman or Garamond. Add a cover page to your document. You can title it " [Company Name]'s Business Plan" or "Business Plan for [Your Name].". If you have a logo, include that too. 2.

  12. Simple Business Plan Template (2024)

    However, if you're seeking startup funding or partnership opportunities, you'll need a write a business plan that details market research, operating costs and revenue forecasting.

  13. How To Write a Business Plan

    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 ...

  14. 9 Steps to Writing Your Business Plan

    Here are the nine sections to include in a strong business plan, step by step. 1. Executive summary. Your business plan should begin with an executive summary, which outlines what your company is about and why it will succeed. This section includes your mission statement, a brief description of the product or service you are offering, a summary ...

  15. Business Plan: What it Is, How to Write One

    Learn about the best business plan software. 1. Write an executive summary. This is your elevator pitch. It should include a mission statement, a brief description of the products or services your ...

  16. Free Startup Business Plan Templates

    This one-page business plan is ideal for startup companies that want to document and organize key business concepts. The template offers an easy-to-scan layout that's ideal for investors and stakeholders. Use this plan to create a high-level view of your business idea and as a reference as you flesh out a more detailed roadmap for your business.

  17. How to Write a Business Plan

    That market research you've done will come in handy for the market analysis section of your business plan. This section should include your analysis of your target market, your competition's strengths and weaknesses, and relevant industry trends. When outlining your target market, make sure to include detailed descriptions of demographics ...

  18. How to Write a Startup Business Plan

    Financial strategy. Let's discuss the key steps to writing a business plan for a startup company. Step 1. Write an executive summary. This is an introduction to your plan, and it should contain brief information about your business, its goals, and purpose, and what services or products it will provide.

  19. Writing Business Plans for Startup

    Business description - Get people acquainted with your plans and offers as to your upcoming startup. This part should be about 1-3 sentences and no more. Destination market - Represent the most valuable business goals of your future product, focusing on users' pains you would like to solve, the market overview, etc.

  20. How to Write a Business Plan for Your Startup

    Step 3 - Analyze your competition. In addition to researching your target market, you need to conduct a competitive analysis as well. You'll use this information to create your brand differentiation strategy. When you're writing a business plan, your startup doesn't exist yet.

  21. How to Write a Startup Business Plan + Free Templates (2024)

    The following are the key elements of a startup business plan template: 1. Executive Summary. An executive summary is the first and foremost section of your startup business plan. It provides a high-level overview of your entire document and summarizes it for a clear understanding of your business.

  22. 550+ Sample Business Plan Examples to Inspire Your Own

    Ready to start writing your own plan but aren't sure where to start? Download our free business plan template that's been updated for 2024. This simple, modern, investor-approved business plan template is designed to make planning easy. It's a proven format that has helped over 1 million businesses write business plans for bank loans, funding ...

  23. How To Write a Startup Business Plan

    Writing a business plan as a startup doesn't have to be a 30-page task. Luckily, more and more investors want to see short, precise, and to-the-point business plans that won't take them forever to chew through. This doesn't mean that your business plan isn't a vital document for your business. And it doesn't mean that it's not a big ...

  24. Business Plan Template for a Startup Business

    Writing a business plan for a startup can sometimes seem overwhelming. To make the process easier and more manageable, this template will guide you step-by-step. The template includes easy-to-follow instructions for completing each business plan section, questions to help you think through each aspect, and corresponding fillable worksheet/s for ...

  25. Here's Why You Should Use a Business Model Canvas for Your Startup

    Of course, you can use both methods if you want: Many entrepreneurs start with a business model canvas to give them a "jump start" and then flesh out a traditional business plan further down ...