Writing a business plan is one of the most valuable things you can do as a business owner. But it can also be one of the most challenging if you’re doing it for the first time.
To help you get right to the value of having a complete business plan, here are seven simple tips that will make business plan writing easier.
1. Understand What to Include in Your Business Plan
Take the time to understand the broad structure of a business plan and what information should be included in each section. This helps you avoid writing aimlessly and gives you a checklist to mark off as you go.
To get started, here is a brief overview of the most common sections of a business plan:
- Executive Summary: Summary of the full business plan, typically covering the problem, solution, target market, team, and financial highlights.
- Products and Services: Description of what you offer, the problem it solves, and any progress or traction.
- Market Analysis: Research on your target market, its size, segments, and trends.
- Competition: Analysis of competitors and how your business compares.
- Marketing and Sales: Strategies for reaching and selling to customers.
- Operations: Overview of your operations including technology, equipment, and facilities.
- Milestones and Metrics: Key goals and performance indicators.
- Company Overview and Team: Organizational structure, company history, and team bios.
- Financial Plan: Sales, expense, and cash flow forecasts along with standard financial statements like your profit and loss, cash flow statement, and balance sheet.
- Appendix: Additional information, such as detailed financial statements, resumes, and other supporting documents.
This list is not exhaustive, so, if you need additional details, look into lengthier business plan outlines or just go on to step two and three in this guide.
2. Consider Starting With a One-Page Business Plan
You don’t necessarily need to write a traditional business plan. If you’re exploring an idea or planning to use it as an internal tool—then a one-page business plan may be a better option.
A one-page business plan is basically a condensed version of a traditional business plan that outlines your business’s key points in a single page. It’s faster and easier to create, simpler to edit and adjust as your business evolves, and it can always be expanded into a more detailed plan later on.
And even though it’s on one page, it still works as a fully functioning business plan. You just get the benefit of starting small, focusing on the essentials.
3. Download a Business Plan Template
Using a business plan template can provide additional guidance and structure to the planning process. With the right template, you’ll get step-by-step instruction, simple fill-in-the-blank sections, and potentially even tips from entrepreneurs or planning experts.
There are plenty of free business plan templates out there, but the best will be written by experts, recently updated, and available in a format that will meet the expectations of lenders and investors. Additionally, just be sure it’s available on software like Microsoft Word or Google Docs so you can get right into using it.
4. Review Business Plan Examples
Sometimes the best thing you can do is to see what the end result can look like. So, when writing a business plan you should explore and review a handful of business plans examples. Ideally, business plan examples are created by professionals or are real-world samples from existing businesses like yoga studios.
If you can, find a sample business plan that’s from the same industry as your own business. Pay attention to the structure, how the plan is written, and what information is unique to your specific industry. You should also take time to flag anything that you don’t think is done well as something to avoid in your own plan.
Keep in mind, you should not copy and paste these examples. Use them to inspire your plan and don’t replicate it.
5. Prioritize the Sections You Already Know
There may be a preferred order for structuring your business plan, but that doesn’t mean you have to write it that way. Instead of going from beginning to end, start with the sections that you already have ideas for and know best.
This will help you avoid just staring at a blank page and actually get information down. You may even find that it makes writing other sections easier as you start thinking more and more specifically about your business.
6. Set a Time Limit
Do not spend hours at a time writing your business plan. You’ll get burnt out, make mistakes, and likely end up seriously disliking the whole process.
To avoid this, set a time limit for your writing to be between 30-minutes and an hour. This is just enough time to actually write and work through sections while making it an easy time investment to fit around your busy schedule.
Keep in mind, this may mean you don’t finish your business plan. That’s totally fine and potentially beneficial. Step away, schedule a follow up writing session, and get back to it. It may end up taking two, three, maybe even four times but you’ll still end up with a complete business plan.
7. Have Someone Review Your Business Plan
Lastly, don’t do this writing process solo. Get someone you trust, like a friend, family member, or mentor, to review your plan as you go. Have them read it and provide feedback like:
- Do you understand how my business works?
- Is the business plan clear and easy to read?
- Are there areas that are confusing, make jumps in logic, or need more explanation?
Take their feedback and apply it to your plan. If you do this before completing the plan, you may end up saving time and catch any issues before they’re prevalent throughout the entire document. If you’re concerned about the quality or not getting enough feedback, consider hiring a professional plan writer or reviewer to take a look instead.
Writing a Business Plan Doesn’t Have to Be Difficult
The hardest part about writing a business plan is getting started. But by developing a framework, knowing what you’re getting into, and finding the right support it can be a lean and effective process.
So, take one or all of these tips and start writing your business plan. You’ll be happy you did.
