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Who can help build a business plan

3 Ways to Get Help Writing a Business Plan

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Thinking of starting a business? Working for yourself is awesome, but it can also be a risky prospect: Your income depends upon your success, and many small businesses fail.

One of the key things that sets successful companies apart from those that don’t make it is a solid plan for success. A business plan can create a roadmap to profitability and business growth, but it’s up to you to create a detailed plan.

A business plan will help guide your decisions as you start your company, will give you an idea of whether the business is viable, and will help you to qualify for loans or attract investors — but making a plan isn’t as simple as it seems.

If you’re thinking of starting a company, or if you have a start-up but no business plan in place, these three categories of resources can provide you with invaluable help.

Image source: Getty Images.

1. Free (and low cost) consultants

Talking with experts who understand the business planning process is a surefire way to make a solid business plan. The good news is that this doesn’t have to cost you a fortune. There are even some free sources of professional advice you can tap into.

Organizations that can help with your business plan include:

    : Formerly the Service Corps of Retired Executives, SCORE is a nonprofit network of more than 10,000 volunteers willing to serve as expert business mentors. You can get paired with a professional in your area willing to offer advice on business planning, take interactive online training courses on developing a business plan, or attend a live webinar. : SBDCs exist in every state, and are staffed by advisors with expertise in business plan development and other key issues affecting entrepreneurs. Universities and state economic development agencies host these centers; you can find them using resources from the Small Business Administration.

You can also hire paid business-plan consultants, although costs vary. If you go this route, ask for referrals from trusted sources and check reviews of anyone you’re considering working with.

2. Business plan apps

Today, there’s an app for everything — including creating a business plan. In fact, there is a wide range of different programs for your mobile devices or computer that walk you through the business planning process. Options include:

  • The Small Business Administration’s tool to build a business plan: This will guide you step-by-step through the process of creating a plan to cover three to five years of business operations. You can save your plan online and update it at any time. : Made available through the state’s One Stop Business Portal, the Wizard walks you through every step of the process of creating a completed business plan. : You can create a simple business plan for free, or upgrade to create multiple plans or plans containing images. This tool makes planning easy: Simply add your business information and it will generate financial forecasts and business-plan text for you. : This $9.99 iOS app was touted by Entrepreneur as a full-featured app that writes a detailed business plan. Creating your plan is easy, as the app leads you through the process. Plus, you can download the finished document as a Word doc.

These suggested tools are free or very-low-cost. There are also apps and programs that cost hundreds of dollars. Compare features and reviews before deciding which app or tool is right for you.

3. Business plan templates and guides

Thanks to the Internet, there’s an endless array of resources available to those who want to write a business plan — including comprehensive templates and guides.

While your best option may be to search for templates in the form you prefer, there are also plenty of general tools out there to suit any business. These include:

  • The Small Business Administration’s business-plan template: You can download and fill in this 33-page PDF template to create a comprehensive business plan that will provide a roadmap for your company’s success.
  • The Department of Veterans Affairs’ guide to writing a business plan: This basic PDF guide details why you want to write a business plan, gives guidelines for the plan, and discusses common mistakes. It also walks you through what each page of your business plan should contain.
  • The Maine Small Business Development Centers’ sample business plan: This PDF explains each of the sections of a small-business plan and provides a sample to inspire you.

Looking at these resources can help you understand not only what sections should be in your business plan and what information to include, but also the types of language used in these professional documents.

Start your business plan today

Creating a business plan may seem daunting. But don’t let your fear or reluctance to create a plan stop you from moving forward.

Just use these tools to get your plan underway, and you’ll be ready to start providing products or services to customers before you know it.

How to Write a Perfect Business Plan in 9 Steps

A great business plan can help you clarify your strategy, identify potential roadblocks, decide what you’ll need in the way of resources, and evaluate the viability of your idea or your growth plans before you start a business.

Not every successful business launches with a formal business plan, but many founders find value in taking time to step back, research their idea and the market they’re looking to enter, and understand the scope and the strategy behind their tactics. That’s where writing a business plan comes in.

Table of Contents

What is a business plan?

A business plan is a roadmap describing a business, its products or services, how it earns (or will earn) money, its leadership and staffing, its financing, its operations model, and many other details essential to its success.

We had a marketing background but not much experience in the other functions needed to run a fashion ecommerce business, like operations, finance, production, and tech. Laying out a business plan helped us identify the ‘unknowns’ and made it easier to spot the gaps where we’d need help or, at the very least, to skill up ourselves.

Jordan Barnett, Kapow Meggings

Why write a business plan?

Investors rely on business plans to evaluate the feasibility of a business before funding it, which is why business plans are commonly associated with getting a loan. But there are several compelling reasons to consider writing a business plan, even if you don’t need funding.

Strategic planning

Writing out your plan is an invaluable exercise for clarifying your ideas and can help you understand the scope of your business, as well as the amount of time, money, and resources you’ll need to get started.

Evaluating ideas

If you’ve got multiple ideas in mind, a rough business plan for each can help you focus your time and energy on the ones with the highest chance of success.

Research

To write a business plan, you’ll need to research your ideal customer and your competitors—information that will help you make more strategic decisions.

Recruiting

Your business plan is one of the easiest ways to communicate your vision to potential new hires and can help build their confidence in the venture, especially if you’re in the early stages of growth.

Partnerships

If you plan to approach other companies to collaborate, having a clear overview of your vision, your audience, and your business strategy will make it much easier for them to identify whether your business is a good fit for theirs—especially if they’re further along than you in their growth trajectory.

Competitions

There are many business plan competitions offering prizes such as mentorships, grants, or investment capital. To find relevant competitions in your industry and area, try Googling “business plan competition + [your location]” and “business plan competition + [your industry].”

If you’re looking for a structured way to lay out your thoughts and ideas, and to share those ideas with people who can have a big impact on your success, a business plan is an excellent starting point.

Free: Business Plan Template

Business planning is often used to secure funding, but plenty of business owners find writing a plan valuable, even if they never work with an investor. That’s why we put together a free business plan template to help you get started.

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We own a brick-and-mortar and ecommerce jewelry business that moved from Magento over to Shopify. We created a business plan for the move, just as we did with our original website and ecommerce business. Our business plan included an overview of why we were making the move, the issues with the current business, the benefits of moving to a new platform, the potential issues during the move, the main task, added costs, and a timeline. It really covered everything we felt was the most important. This business plan was given to everyone working on the project, from the photographers to the marketing team to the developers. This way, we were all on the same page. It worked pretty well the first time and even better this time around.

Jeff Moriarty, Tanzanite Jewelry Designs

Business plan formats

Business plans can span from one page to multiple pages with detailed graphs and reports. There’s no one way to create a business plan. The goal is to convey the most important information about your company for readers.

Common types of business plans we see include, but are not limited to, the following:

  • Traditional.These are the most common business plans. Below, we’ll cover the standard elements of a business plan and go into detail for each section. Traditional business plans take longer to write and can be dozens of pages long. Venture capitalist firms and lenders ask for this plan.
  • Lean. A lean business plan is a shorter version of a traditional business plan. It follows the same format, but only includes the most important information. Businesses use this plan to onboard new hires or modify existing plans for a specific target market.
  • Nonprofit. A nonprofit business plan is for any entity that operates for public or social benefit. It covers everything you’ll find in a traditional business plan, plus a section describing the impact the company plans to make. For example, a speaker and headphone brand that aims to help people with hearing disabilities. Donors often request this plan.

Check out real-world examples of different business plans by reading The Road to Success: Business Plan Examples to Inspire Your Own.

How to write a business plan in 9 steps

You can also start with a free business plan template and use it to inform the structure of your plan.

Few things are more intimidating than a blank page. Starting your business plan with a structured outline and key elements for what you’ll include in each section is the best first step you can take.

Since an outline is such an important step in the process of writing a business plan, we’ve put together a high-level overview you can copy into your blank document to get you started (and avoid the terror of facing a blank page).

Now that you’ve got your business plan outline in place, it’s time to fill it in. We’ve broken it down by section to help you build your plan step by step.

1. Draft an executive summary

A good executive summary is one of the most crucial sections of your plan—it’s also the last section you should write.

The executive summary’s purpose is to distill everything that follows and give time-crunched reviewers (e.g., potential investors and lenders) a high-level overview of your business that persuades them to read further.

Again, it’s a summary, so highlight the key points you’ve uncovered while writing your plan. If you’re writing for your own planning purposes, you can skip the summary altogether—although you might want to give it a try anyway, just for practice.

An executive summary shouldn’t exceed one page. Admittedly, that space constraint can make squeezing in all of the salient information a bit stressful—but it’s not impossible. Here’s what your business plan’s executive summary should include:

  • Business concept. What does your business do?
  • Business goals and vision. What does your business want to do?
  • Product description and differentiation. What do you sell, and why is it different?
  • Target market. Who do you sell to?
  • Marketing strategy. How do you plan on reaching your customers?
  • Current financial state. What do you currently earn in revenue?
  • Projected financial state. What do you foresee earning in revenue?
  • The ask. How much money are you asking for?
  • The team. Who’s involved in the business?

2. Describe your company

This section of your business plan should answer two fundamental questions: who are you, and what do you plan to do? Answering these questions provides an introduction to why you’re in business, why you’re different, what you have going for you, and why you’re a good investment bet.

Clarifying these details is still a useful exercise, even if you’re the only person who’s going to see them. It’s an opportunity to put to paper some of the more intangible facets of your business, like your principles, ideals, and cultural philosophies.

Here are some of the components you should include in your company overview:

  • Your business structure (Are you a sole proprietorship, general partnership, limited partnership, or incorporated company?)
  • Your business model
  • Your industry
  • Your business’s vision, mission, and value proposition
  • Background information on your business or its history
  • Business objectives, both short and long term
  • Your team, including key personnel and their salaries

Some of these points are statements of fact, but others will require a bit more thought to define, especially when it comes to your business’ vision, mission, and values. This is where you start getting to the core of why your business exists, what you hope to accomplish, and what you stand for.

This is where you start getting to the core of why your business exists, what you hope to accomplish, and what you stand for.

To define your values, think about all the people your company is accountable to, including owners, employees, suppliers, customers, and investors. Now consider how you’d like to conduct business with each of them. As you make a list, your core values should start to emerge.

Once you know your values, you can write a mission statement. Your statement should explain, in a convincing manner, why your business exists, and should be no longer than a single sentence.

As an example, Shopify’s mission statement is “Make commerce better for everyone.” It’s the “why” behind everything we do and clear enough that it needs no further explanation.

Next, craft your vision statement: what impact do you envision your business having on the world once you’ve achieved your vision? Phrase this impact as an assertion—begin the statement with “We will” and you’ll be off to a great start. Your vision statement, unlike your mission statement, can be longer than a single sentence, but try to keep it to three at most. The best vision statements are concise.

Finally, your company overview should include both short- and long-term goals. Short-term goals, generally, should be achievable within the next year, while one to five years is a good window for long-term goals. Make sure all your goals are SMART: specific, measurable, attainable, realistic, and time-bound.

3. Perform a market analysis

No matter what type of business you start, it’s no exaggeration to say your market can make or break it. Choose the right market for your products—one with plenty of customers who understand and need your product—and you’ll have a head start on success. If you choose the wrong market, or the right market at the wrong time, you may find yourself struggling for each sale.

Market analysis is a key section of your business plan, whether or not you ever intend for anyone else to read it.

This is why market research and analysis is a key section of your business plan, whether or not you ever intend for anyone else to read it. It should include an overview of how big you estimate the market is for your products, an analysis of your business’ position in the market, and an overview of the competitive landscape. Thorough research supporting your conclusions is important both to persuade investors and to validate your own assumptions as you work through your plan.

How big is your potential market?

The potential market is an estimate of how many people need your product. While it’s exciting to imagine sky-high sales figures, you’ll want to use as much relevant independent data as possible to validate your estimated potential market.

Since this can be a daunting process, here are some general tips to help you begin your research:

  • Understand your ideal customer profile. If you’re targeting millennial consumers in the US, you first can look for government data about the size of that group. You also could look at projected changes to the number of people in your target age range over the next few years.
  • Research relevant industry trends and trajectory. If your product serves retirees, try to find data about how many people will be retiring in the next five years, as well as any information you can find about consumption patterns among that group. If you’re selling fitness equipment, you could look at trends in gym memberships and overall health and fitness among your target audience or the population at large. Finally, look for information on whether your general industry is projected to grow or decline over the next few years.
  • Make informed guesses. You’ll never have perfect, complete information about the size of your total addressable market. Your goal is to base your estimates on as many verifiable data points as necessary for a confident guess.

Some sources to consult for market data include government statistics offices, industry associations, academic research, and respected news outlets covering your industry.

SWOT analysis

A SWOT analysis looks at your strengths, weaknesses, opportunities, and threats. What are the best things about your company? What are you not so good at? What market or industry shifts can you take advantage of and turn into opportunities? Are there external factors threatening your ability to succeed?

These breakdowns often are presented as a grid, with bullet points in each section breaking down the most relevant information—so you can probably skip writing full paragraphs here. Strengths and weaknesses—both internal company factors—are listed first, with opportunities and threats following in the next row. With this visual presentation, your reader can quickly see the factors that may impact your business and determine your competitive advantage in the market.

Here’s an example:

Free: SWOT Analysis Template

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Competitive analysis

There are three overarching factors you can use to differentiate your business in the face of competition:

  • Cost leadership. You have the capacity to maximize profits by offering lower prices than the majority of your competitors. Examples include companies like Mejuri and Endy.
  • Differentiation. Your product or service offers something distinct from the current cost leaders in your industry and banks on standing out based on your uniqueness. Think of companies like Knix and Qalo.
  • Segmentation. You focus on a very specific, or niche, target market, and aim to build traction with a smaller audience before moving on to a broader market. Companies like TomboyX and Heyday Footwear are great examples of this strategy.

To understand which is the best fit, you’ll need to understand your business as well as the competitive landscape.

You’ll always have competition in the market, even with an innovative product, so it’s important to include a competitive overview in your business plan. If you’re entering an established market, include a list of a few companies you consider direct competitors and explain how you plan to differentiate your products and business from theirs.

For example, if you’re selling jewelry, your competitive differentiation could be that, unlike many high-end competitors, you donate a percentage of your profits to a notable charity or pass savings on to your customers.

If you’re entering a market where you can’t easily identify direct competitors, consider your indirect competitors—companies offering products that are substitutes for yours. For example, if you’re selling an innovative new piece of kitchen equipment, it’s too easy to say that because your product is new, you have no competition. Consider what your potential customers are doing to solve the same problems your product solves.

4. Outline the management and organization

The management and organization section of your business plan should tell readers about who’s running your company. Detail the legal structure of your business. Communicate whether you’ll incorporate your business as an S corporation or create a limited partnership or sole proprietorship.

If you have a management team, use an organizational chart to show your company’s internal structure, including the roles, responsibilities, and relationships between people in your chart. Communicate how each person will contribute to the success of your startup.

5. List your products and services

Your products or services will feature prominently in most areas of your business plan, but it’s important to provide a section that outlines key details about them for interested readers.

If you sell many items, you can include more general information on each of your product lines; if you only sell a few, provide additional information on each. Describe new products you’ll launch in the near future and any intellectual property you own. Express how they’ll improve profitability.

It’s also important to note where products are coming from—handmade crafts are sourced differently than trending products for a dropshipping business, for instance.

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6. Customer segmentation

Your ideal customer, also known as your target market, is the foundation of your marketing plan, if not your business plan as a whole. You’ll want to keep this person in mind as you make strategic decisions, which is why an overview of who they are is important to understand and include in your plan.

To give a holistic overview of your ideal customer, describe a number of general and specific demographic characteristics. Customer segmentation often includes:

  • Where they live
  • Their age range
  • Their level of education
  • Some common behavior patterns
  • How they spend their free time
  • Where they work
  • What technology they use
  • How much they earn
  • Where they’re commonly employed
  • Their values, beliefs, or opinions

This information will vary based on what you’re selling, but you should be specific enough that it’s unquestionably clear who you’re trying to reach—and more importantly, why you’ve made the choices you have based on who your customers are and what they value.

For example, a college student has different interests, shopping habits, and pricing sensitivity than a 50-year-old executive at a Fortune 500 company. Your business plan and decisions would look very different based on which one was your ideal customer.

7. Define and marketing plan

Your marketing efforts are directly informed by your ideal customer. Your plan should outline your current decisions and your future strategy, with a focus on how your ideas are a fit for that ideal customer.

If you’re planning to invest heavily in Instagram marketing, for example, it might make sense to include whether Instagram is a leading platform for your audience—if it’s not, that might be a sign to rethink your marketing plan.

Most marketing plans include information on four key subjects. How much detail you present on each will depend on both your business and your plan’s audience.

  • Price. How much do your products cost, and why have you made that decision?
  • Product. What are you selling and how do you differentiate it in the market?
  • Promotion. How will you get your products in front of your ideal customer?
  • Place. Where will you sell your products?

Promotion may be the bulk of your plan since you can more readily dive into tactical details, but the other three areas should be covered at least briefly—each is an important strategic lever in your marketing mix.

8. Provide a logistics and operations plan

Logistics and operations are the workflows you’ll implement to make your ideas a reality. If you’re writing a business plan for your own planning purposes, this is still an important section to consider, even though you might not need to include the same level of detail as if you were seeking investment.

Cover all parts of your planned operations, including:

  • Suppliers. Where do you get the raw materials you need for production, or where are your products produced?
  • Production. Will you make, manufacture, wholesale or dropship your products? How long does it take to produce your products and get them shipped to you? How will you handle a busy season or an unexpected spike in demand?
  • Facilities. Where will you and any team members work? Do you plan to have a physical retail space? If yes, where?
  • Equipment. What tools and technology do you require to be up and running? This includes everything from computers to lightbulbs and everything in between.
  • Shipping and fulfillment. Will you be handling all the fulfillment tasks in-house, or will you use a third-party fulfillment partner?
  • Inventory. How much will you keep on hand, and where will it be stored? How will you ship it to partners if required, and how will you approach inventory management?

This section should signal to your reader that you’ve got a solid understanding of your supply chain and strong contingency plans in place to cover potential uncertainty. If your reader is you, it should give you a basis to make other important decisions, like how to price your products to cover your estimated costs, and at what point you plan to break even on your initial spending.

9. Make a financial plan

No matter how great your idea is, and regardless of the effort, time, and money you invest, a business lives or dies based on its financial health. At the end of the day, people want to work with a business they expect to be viable for the foreseeable future.

The level of detail required in your financial plan will depend on your audience and goals, but typically you’ll want to include three major views of your financials: an income statement, a balance sheet, and a cash-flow statement. It also may be appropriate to include financial data and projections.

Here’s a spreadsheet template that includes everything you’ll need to create an income statement, balance sheet, and cash-flow statement, including some sample numbers. You can edit it to reflect projections if needed.

Income statement

Your income statement is designed to give readers a look at your revenue sources and expenses over a given time period. With those two pieces of information, they can see the all-important bottom line or the profit or loss your business experienced during that time. If you haven’t launched your business yet, you can project future milestones of the same information.

Balance sheet

Your balance sheet offers a look at how much equity you have in your business. On one side, you list all your business assets (what you own), and on the other side, all your liabilities (what you owe). This provides a snapshot of your business’ shareholder equity, which is calculated as:

Assets – Liabilities = Equity

Cash flow statement

Your cash flow statement is similar to your income statement, with one important difference: it takes into account when revenues are collected and when expenses are paid.

When the cash you have coming in is greater than the cash you have going out, your cash flow is positive. When the opposite scenario is true, your cash flow is negative. Ideally, your cash flow statement will help you see when cash is low, when you might have a surplus, and where you might need to have a contingency plan to access funding to keep your business solvent.

It can be especially helpful to forecast your cash-flow statement to identify gaps or negative cash flow and adjust operations as required. Here’s a full guide to working through cash-flow projections for your business.

Download your copy of all three templates to build out these financial statements for your business plan.

Tips for creating a small business plan

There are a few key things to keep in mind to help you write an effective business plan.

Know your audience

When you know who will be reading your plan—even if you’re just writing it for yourself to clarify your ideas—you can tailor the language and level of detail to them. This can also help you make sure you’re including the most relevant information and figure out when to omit sections that aren’t as impactful.

Have a clear goal

You’ll need to put in more work and deliver a more thorough plan if your goal is to secure funding for your business versus working through a plan for yourself or even your team.

Invest time in research

Sections of your business plan will primarily be informed by your ideas and vision, but some of the most crucial information you’ll need requires research from independent sources. This is where you can invest time in understanding who you’re selling to, whether there’s demand for your products, and who else is selling similar products or services.

Keep it short and to the point

No matter who you’re writing for, your business plan should be short and readable—generally no longer than 15 to 20 pages. If you do have additional documents you think may be valuable to your audience and your goals, consider adding them as appendices.

Keep the tone, style, and voice consistent

This is best managed by having a single person write the plan or allowing time for the plan to be properly edited before distributing it.

Use a business plan software

Writing a business plan isn’t the easiest task for business owners. But it’s important for anyone starting or expanding a business. Fortunately, there are tools to help with everything from planning, drafting, creating graphics, syncing financial data, and more. Business plan software also have templates and tutorials to help you finish a comprehensive plan in hours, rather than days.

A few curated picks include:

  • LivePlan: the most affordable option with samples and templates.
  • Bizplan: tailored for startups seeking investment.
  • GoSmallBiz: budget friendly option with industry-specific templates.

Common mistakes when writing a business plan

Other articles on business plans would never tell you what we’re about to tell you: your business plan can fail. The last thing you want is for time and effort to go down the drain. Avoid these common mistakes:

  • Bad business idea.Not every idea is going to win. Sometimes your idea may be too risky and you won’t be able to get funding for it. Other times it’s too expensive or there’s no market. Aim for low-investment business ideas you start with little money and bypass traditional startup costs.
  • No exit strategy. Investors reading your business plan want to know one thing: will your venture make them money? If you don’t show an exit strategy, or a plan for them to leave the business with maximum profits, you’ll have little luck finding capital.
  • Unbalanced teams. A great product is the cost of entry to starting a business. But an incredible team will take it to the top. Unfortunately, many business owners overlook a balanced team. They assume readers want to see potential profits, without worrying about how you’ll get it done. If you’re pitching a new software idea, it makes sense to have at least one developer or IT specialist on your team.
  • Missing financial projections. Your numbers are the most interesting part for readers. Don’t leave out your balance sheet, cash flow statements, P&L statements, and income statements. Include your break-even analysis and return-on-investment calculations to create a successful business plan.
  • Spelling and grammar errors. Some businesses think hiring a professional editor is overkill. The reality is, all the best organizations have an editor review their documents. If someone spots typos while reading your business plan, how can they believe you’ll run a successful company?

Read through the following business plan example. You can download a copy in Microsoft Word or Google Docs and use it to inspire your own business planning.

Business planning gives you a solid foundation for growth

A business plan can help you identify clear, deliberate next steps for your business, even if you never plan to pitch investors—and it can help you see gaps in your plan before they become issues. Whether you’ve written a business plan for a new online business idea, a retail storefront, or growing your existing business, you now have a comprehensive guide and the information you need to help you start working on the next phase of your own business.