The Ultimate Guide To Writing Your Business Plan

Writing a business plan is an essential step for any entrepreneur looking to build or grow a business. It helps you outline your vision, goals, and strategies, making it easier to communicate your plans to stakeholders, attract investors, and stay on track.

If you decide to write a business plan on your own, Skip recommends that your business plan include these 14 key sections, explained below and grouped into 3 sections for clarity - your business plan introduction, your business plan description, and your business plan metrics.

If you decide to use software that exists to write and review your plan, consider Skip's Business Plan Software (recommended) which can generate your business plan in a few minutes. Be sure to read to the end to get our final thoughts on what a business plan is good for — and what it's not good for.

Your Business Plan Introduction  - What Should You Include?

The introduction of your business plan is the most important part for two reasons: In general, this is a summary of your entire plan so it should distill everything you will cover in the rest of the plan. Secondly, the vast majority of viewers (if you do decide to share your plan) may only read the first part of your plan.

You should have the following 4 sections in the introductory portion of your business plan:

• Cover Page
• Table of Contents
• Executive Summary
• Company Description

Here's more detail on what should be included in these sections:

• Cover Page: Include your business name, logo, and contact information to create a polished, professional document.
• Table of Contents: A table of contents makes it easy for readers to navigate the plan, especially if they’re looking for specific details.
• Executive Summary: This is a high-level overview of your business plan, summarizing your goals, products or services, target market, and financial projections. It’s often the first (and sometimes only) section investors read, so make it compelling.
• Company Description: Offer a snapshot of your business, including its mission, vision, history, and unique value proposition.

Why It’s Important: These elements provide context and clarity, helping readers quickly understand the purpose and scope of your business.

Your Business Plan Description — What Should You Include

The second section is the bulk of your business plan and comprises your business plan narrative. This section will take readers through the business opportunity, vision, market, and go-to market strategies. Here's the recommended sections here:

• Business Opportunity
• Vision
• Team
• Target Market
• Pricing Strategy
• Marketing and Promotion
• Industry Analysis

Here's more detail on what should be included in these sections:

• Business Opportunity: Describe the problem or gap in the market your business will solve and why it matters.
• Vision: Paint a clear picture of where you see your business in the future, inspiring confidence in your direction.
• Team: Highlight the skills and experience of your team members, demonstrating your capacity to execute the plan.
• Target Market: Define your ideal customers, their needs, and how your product or service addresses those needs.
• Pricing Strategy: Explain your pricing model and how it aligns with your target market and competitive landscape.
• Marketing and Promotion: Detail how you’ll attract and retain customers through advertising, social media, partnerships, and other methods.
• Industry Analysis: Provide insights into the industry landscape, including trends, competition, and growth potential.

Why It’s Important: Demonstrating a deep understanding of your market and industry helps build credibility and shows that your business is grounded in research and data. Plus, a well-defined strategy ensures that your business is not just a good idea but a viable and executable plan.

Your Business Plan Metrics and Financials - What Should You Include?

This last section covers the numbers and resources to make your business successful. It's important to note that in early stages you may not have much data to put in here, but it's important to do the exercise no matter what stage your at.

If you are using a business plan to apply for financing, it's likely that the lender or bank will also want to look at bank statements, profit and loss statements, and other financial statements outside of a business plan.

Here are the recommended sections for this final part of your business plan:

• Milestones and Key Objectives
• Financial Summary
• Funding Required

And here's more detail on each section:

• Milestones and Key Objectives: Set measurable goals and timelines to track progress and maintain focus.
• Financial Summary: Include income statements, cash flow projections, and balance sheets to show the financial health and viability of your business.
• Funding Required: Specify how much funding you need, how you plan to use it, and what investors can expect in return.

Why It’s Important: Financial details are critical for attracting investors and ensuring you have a realistic understanding of your business’s potential profitability and sustainability.

You can also attach a profit/loss statement, balance sheet and projections to add more to the business plan, although not always required for business loans many times this is a requirement. We can also help with this when you schedule an Expert Help call.

Final Thoughts on Creating Your Business Plan

For most business owners and entrepreneurs, the most important part of doing your business plan is doing it for yourself. The exercise of going through each section and thinking critically about your business, vision, go-to market, and beyond - this is crucial to evaluating and thinking through your business.

Your plan will change constantly - that is guaranteed. The exercise of writing down your plan, gathering your thoughts, and then reviewing and updating it periodically is one of the best exercises you can do as a business owner or founder.

And don't forget, if you don't want to Do It Yourself you can use software out there to help you formulate and create your business plan, such as Skip's business plan software. Good luck!