A business plan is a thinking tool first and a document second. A good one answers a handful of hard questions clearly, so that you, a lender or an investor can see how the business will work. Here are the sections that matter.
Executive summary
One page, written last. It states the customer, the problem, your solution, how you make money, what you need and what you expect. If a reader stops here, they should still understand the business.
Customer and problem
Describe who exactly you serve and the problem you solve for them, in their words. Include how they solve it today, because that is your real competition and your price benchmark.
Solution and offer
Explain what you sell, how it solves the problem better than the current alternative and what you are not offering. Keep the first version small enough to launch quickly.
Market and competition
Show who else serves this customer and why customers would choose you. Use sources you can cite, such as government data and published industry reports, and mark estimates as estimates.
Go-to-market plan
Say how you will reach your first customers, what that costs and how you will know it is working. Specific channels and numbers beat general statements about social media.
Operations, legal and compliance
List how the work gets done and the legal basics: business structure, licenses and permits, insurance and any rules specific to your sector and state. Confirm the details with a qualified professional.
Financial plan
Show start-up costs, pricing, margin per sale, monthly costs, the break-even point and how many months of cash you have. Keep assumptions visible so a reader can change them.
Risks and next steps
Name the biggest risks and what you will do about each one. Close with a dated action list for the next 30, 60 and 90 days.
What to leave out
- Long company history that does not help the reader decide.
- Market size claims with no source, such as "everyone is a customer".
- Five-year projections that nobody can defend. Be precise for the first year.
- Generic template text that could describe any business.
How Grant helps
Grant builds the plan from your advisory conversations instead of from a template. On paid plans he produces a Business Plan, a Market Analysis with cited sources and a Legal Checklist for your idea. You can read an example on the sample business plan page.
Quick answers
How long should a business plan be?
As short as it can be while answering the questions above. For most small businesses, a focused plan of ten to twenty pages is plenty, with a one-page summary on top.
Do I need a business plan to get a loan?
Lenders usually ask for one, along with financial statements or projections. Requirements vary by lender, so ask them what they need before you write.
This guide is general information, not legal, financial or tax advice. Rules vary by state: confirm important decisions with a qualified professional.