6 Tips for Writing a Great Business Plan

Small businesses need a strong business plan, whether for financial resources or new growth opportunities. A business plan template can be helpful here and assist entrepreneurs in planning their businesses.

What Should You Include in Your Business Plan?

Not all businesses invest much time creating a comprehensive program in the early stages. But most business owners find it helpful to take a step back, define their business idea and target market, identify their point of difference, and develop a successful strategy.

A business plan template consists of several elements. Whether it's a salon business plan or a farm business plan, addressing these elements is essential. While it's not necessary to include every detail, accuracy is critical to creating a successful business plan. Let’s explore these sections in more detail.

1. Executive Summary
An executive summary forms the foundation of your business plan. This provides an overview of your business, products, distinctions, and financial forecasts. Most investors spend the majority of their time in this section. The challenge here is to provide answers to their questions without going into excessive detail.

2. Overview and Business Objectives
In this section, your business plan explains who you are and what you aim to achieve with your business. A description of the industry helps clarify what makes you different. This section should also address the key members of your team and the value they bring. Answering questions like "Who are your team members?" and "What value do they add?" will help paint a clearer picture.

3. Company Description
This section details the values driving your business. It includes a mission statement, which should concisely explain why your company exists. For example, LinkedIn’s mission is to connect the world’s professionals to make them more productive and successful.

4. Target Markets
The success of your company heavily depends on your understanding of the market. Where is your target market located? What are their main concerns? What motivates them to buy from you? These fundamental questions must be addressed here to ensure that you are tapping into the right market.

5. Organization and Management
This section outlines the organizational structure of your company, including the legal system, if applicable. You will want to provide detailed information about your team and their roles. This will help stakeholders understand how the team is structured and how they contribute to the business.

6. Products and Services Provided
While you’ve already touched on your products and services in the executive summary, this section allows you to go deeper. If you offer many products and services, you might opt for a general description of your product lines. If you provide only a few products, a detailed description can be beneficial.

7. Marketing Plan
Your marketing and sales strategy is crucial to multiple stakeholders: investors, employees, and partners. This section should reflect your marketing approach to promote your business and ensure that your products and services reach the right audience. Focus on key marketing elements like product, pricing, advertising, and location.

8. Analysis of Competitors
No matter how carefully you analyze your market, you won’t succeed unless you carefully analyze other businesses in your space. This is important for identifying your differentiators and gaining a competitive edge in the long run. Delving into competitor leadership, history, and product/service offerings is crucial for developing a sustainable strategy.

9. Financial Plan
When you apply for a business loan, lenders will want to understand your financial situation. This section provides an overview of the financial aspects of your company, including three primary components: profit and loss statement, balance sheet, and cash flow statement.

10. Future Business Plans for Development
While working on a business plan, it’s essential to keep both short-term and long-term goals in mind. Where would you like your company to go? What strategies will you use to get there? These questions are essential to consider for planning the future of your business.

11. Summary of Logistics and Operations
Bringing your products and services to market successfully depends on key partners like suppliers and distributors. This section will help you identify essential partners and build a robust supply chain to support your business.

12. Management Summary
The management summary outlines the business’s structure, the people involved, and any external resources. This section should highlight your team’s expertise and any foreign business partners that contribute to your company’s success.

13. Appendix
Your business plan should be concise, but you may have additional information to include. This is where the appendix comes in handy. Here, you can add resumes, market research, legal documents, and product information. For example, if you are creating a business plan for a kindergarten, include relevant certifications and medical experience.

Tips for Writing a Great Business Plan
Here are some tips to ensure your business plan is well-organized and compelling:

• Keep It Short: Aim for a business plan that’s concise and readable. Ideally, it should be no longer than 20 pages.
• Provide Supporting Evidence: Add supporting documents as attachments to make your business plan more convincing.
• Stay Consistent: Make sure the tone, message, and style of the document are consistent.
• Avoid Jargon: Use simple, clear language and avoid industry-specific terms that could confuse the reader.
• Be Clear About Your Purpose: Know the target audience for your business plan—whether it's for investors, your team, or partners.
• Do Your Research: Your business plan should reflect the time and effort you’ve invested in understanding the market and competition.
• Be Transparent: When addressing your company’s financial health, don’t hide any potential problems. Transparency builds trust with investors.
• Update Regularly: A business plan should evolve as your business grows and as market conditions change.