A Step-By-Step Guide For Writing A Business Plan

Starting a business can be an exciting time for many entrepreneurs. However, it can also be tough to know where to start, especially if this is your first time getting a company off the ground. Even if things go to plan, how are you supposed to know if you’re on track? What if you start to lose your way as the months go by?

These are just some of the problems new businesses face as they get going. Thankfully, a step-by-step guide for writing a business plan could be all we need to get started. Why? It helps to keep us on track, gives us goals to aim for, and means we can show others our plans during business and pitch meetings.

1. Create an executive summary

The first thing to do when writing a business plan is to create an executive summary. What’s that? A short pitch that includes the mission statement for your company, a brief outline of the products or services you offer, and a general summary of where you see the business financially going over time. It’s the first thing people will see and should clearly outline what you and your company are about. 

2. Describe your business in detail

The next thing to do is describe your company. This means the name your business is registered under, the address, and the names of key people in the company. You can even add technical expertise and unique skills next to their names. This should define your structure, such as who is in charge and the hierarchy of people working in the business. It should also outline the percent ownership and people’s involvement. Finish off this section with a history of the company and how things have changed up to the current day. 

3. Outline your business goals

Want someone to understand your business plan? Make sure you clearly outline your business goals. This is exactly as it sounds: what you hope to achieve in the short and long term. This shows potential partners or investors where money will be spent and how this will help your company grow. This could be things like plans to launch a new product and how this will help your business expand while adding the money needed to make that dream come true.

4. Detail the services and products on offer

One aspect of writing a business plan that many forget is detailing the services and products on offer. This means going into each element, such as how they work, the cost, and how many customers you typically serve a month. This is also a chance to include the supply chain step-by-step, how you sell your services or products, and your distribution strategy. 

5. Do some market research

If there’s one thing partners and investors look for, it’s why your product or service is the one to invest in over others. Knowing how to set yourself apart from the rest all starts with market research, so you can compare what else is on the market. This doesn’t mean you have to downplay their achievements. Instead, you can highlight the things they do well - and how you do them better. This is also a chance to explain why your business is different from others on the market. 

6. Create an outline of your marketing and sales plan

Learning how to outline your marketing and sales plan is more than just writing you want to sell things to people. This details how you plan on convincing them to purchase what you’re offering as well as future services you may offer. This section of your business plan is also an excellent chance to explain how you plan on developing customer loyalty, so you have repeat business in the future.

7. Estimate your financial projections

Let’s face it; most business plans are used to talk about finances. This is why having a section about your estimated financial projections is so important. However, leaving it to the end should mean that whoever is reading your business plan is already emotionally invested in your company. This is where you need to show how you plan to generate enough revenue to pay any loans and expand your business in the future. This is usually done by breaking things down into monthly or quarterly expenses and profits - depending on what’s more appropriate - and forecasting what’s to come for at least three years. You can also add a section about how that would alter if you get the loan you need to expand.

Having a business plan is a vital part of starting any new company. Not only does it keep our minds focused on where we’re supposed to be heading, but it can also be used to tempt investors and partners into our company. That’s why learning how to write a business plan is such an important skill for new startups.