It used to be a lot tougher to create a traditional business plan using just pen and paper. Nowadays, with tons of help available online, it's easier than ever. But with so many resources out there, where do you even start?
Luckily, we’re here to help you out. We've crafted the ultimate small business plan template to make your life simpler. Doesn't matter if you're launching a startup or looking to grow your existing business because our template covers all the bases. From your elevator pitch to financial projections, we've got your back.
We'll go through each section and show you how to create a business plan that not only impresses investors but also sets you up for success. Grab a coffee, get comfy, and let's get planning with our special template.
Why small businesses need a business plan
Think a business plan is just for big corporations? Not so fast! Small businesses need them too, and for good reason. If you’re running just about any business, you need a business plan, as it::
- Helps you set and stick to your goals.
- Makes it easier to get loans or investments.
- Speeds up your business growth.
- Forces you to think critically about your business idea.
- Gets everyone in your company on the same page.
- Helps you hire good employees.
- Lets you adapt quickly to changes.
- Gives you a way to measure your progress.
- Allows you to use your money and time wisely.
- Helps you spot potential problems early.
A business plan is a practical tool that guides your decisions and helps your business succeed. It's worth the time to create one, whether you're just starting out or have been in business for years.
If you're still unconvinced, here are some interesting statistics about business plans:
- 70% of businesses that last more than five years use a business plan.
- 50% of businesses die within the first five years. More than 30% of them did not have a business plan in place.
- Business leaders who make plans for their business have a 152% higher chance to launch it.
- Businesses that lack plans grow about 30% slower than those with a plan.
Our business plan template includes all nine elements that make up a successful small business plan, and these are the kinds of elements you should always find in a plan. Check them below!
9 key elements of a small business plan template
1. Executive summary
The executive summary is one of the most important parts of your business plan. Think of it as a quick snapshot that captures the essence of your business. It needs to be compelling and succinct because it’s the first thing future partners, investors, and stakeholders will read.
Its primary purpose is to provide a brief yet comprehensive overview of your business so that it's easy for readers to understand your business at a glance. It should entice them to read the rest of the plan. The executive summary usually consists of:
- Company overview: Introduce your business—the name, location, and brief history.
- Mission statement: State your business’s purpose and core values.
- Goals: Outline your short-term and long-term goals.
- Product/service summary: Focus on what makes your products or services special as you quickly describe what you have to offer.
- Management team: Highlight the key players in your team and their expertise.
- Financial highlights: Provide a snapshot of your financial projections, such as expected revenue streams, profitability, and funding requirements.
To get it right, follow these steps:
- Try to keep it to one or two pages at most, and be clear and to the point.
- Focus on the most important parts of your business plan and leave out any details to emphasize the main points.
- Create interest by writing in a compelling manner and by using strong, positive language that shows you believe in your business.
- Finally, revise and polish your summary multiple times to ensure it is error-free and clearly conveys your message.
The executive summary sets the tone for the entire business plan. Your business planning will go a lot further if you take the time to write a strong, impactful summary.
2. Business description
The business description is your opportunity to introduce your startup business. It answers the “who,” “what,” and “why” of your business. This section helps you and others understand the core aspects of your company.
Writing a business description clarifies your business goals and strategies. It serves as a foundation for your business plan, ensuring that you have a clear understanding of what your business is about.
A proper business description has these elements:
- Business name: The official name of your business.
- Location: Where your business operates.
- Legal structure: Sole proprietorship, partnership, LLC, etc.
- History: Brief background on how and why the business was founded.
- Business model: How your business makes money.
- Vision: What you aspire to achieve in the long run.
- Mission statement: The purpose and core values of your business.
The meat and potatoes of any business plan are the company description. You lay a solid groundwork for your business plan by providing a clear description of yourself, your key activities, and your goals.
3. Market analysis
Market research helps you spot your strengths, recognize opportunities, avoid potential pitfalls, and better meet your customers' needs.
A market analysis is essential because it provides insights into industry trends, promising new products and services, customer behavior, and competitive analysis. With it, your marketing strategy can be improved, your offerings can be customized, and you can make more informed decisions.
The steps to perform a market analysis are as follows:
- Start with an industry overview to understand the overall market environment, with factors like growth trends and major players.
- Next, analyze target market demographics—age, gender, income, location, and buying habits of your potential customers.
- Identify market needs and how your product or service addresses them.
- Keep an eye on trends that could impact your business, such as technological advancements or changes in consumer preferences.
After that, take a look at your competitors. Evaluate them by scrutinizing their strengths and weaknesses. Understand their market position, pricing strategies, reviews, and customer base. This will help you pin down your competitive advantage and areas where you can differentiate your business.
We cannot forget about the SWOT analysis, which is also super important to put into this section.
A SWOT analysis helps you evaluate your business's Strengths, Weaknesses, Opportunities, and Threats.
- Strengths and weaknesses are internal factors, such as your business's resources or operational efficiency.
- Opportunities and threats are external factors, like market trends or economic conditions.
With SWOT, you can see exactly where your business stands right now, which also helps you plan for its future growth.
This section can be as long and detailed as you like. The more information you can fit, the more conclusions you can draw from a market analysis. However, make sure to do so in a visually engaging way. Graphs, charts, bullet points, and infographics are your friends. Your business plan doesn't have to be tedious to read.
4. Products and services
The products and services section of your business plan describes the value proposition of your business and why it's useful to your target customers. It should be thorough but not too long, so people can easily understand what you have to offer.
To write it, make sure to:
- First, create a list of all the goods and services you offer and briefly describe them.
- Explain how these meet the needs of customers and what makes them special.
- Include details about what makes your products or services different from others on the market (your unique selling proposition, or USP).
- Talk about the product lifecycle, from development to decline, as well as any plans you have for new services or products in the future.
Your goal is to provide a snapshot of your products and services that showcases their value and uniqueness. This helps potential partners, customers, and anyone else understand why your business stands out in the market.
5. Marketing plan
The marketing strategy section outlines how your small business will attract and retain customers.
Several important elements make up this part:
- Market positioning: Defines how you want your brand to be seen by your target market.
- Branding: Includes your logo, tagline, copy, and overall visual identity that sets you apart from competitors.
- Promotional strategies: These are the methods you will use to get the word out about your business, such as online ads, SEO, social media, and local events.
- Sales strategy: Explains how you plan to turn prospects into paying customers by focusing on sales techniques and how you will interact with them.
- Pricing strategy: Involves how you price your products or services to remain competitive while maximizing profitability.
- Distribution channels: The paths through which your products or services reach your customers, whether through physical stores, online platforms, or direct delivery.
A well-crafted marketing strategy section shows how you plan to reach your target market, differentiate your brand, distribute your goods, and drive sales.
It demonstrates that you have a clear plan for growing your startup business and meeting customer needs. Here are some ideas on how to write it:
- Showcase what sets your marketing approach apart from competitors.
- Use market research data and metrics to support your strategies.
- Clearly outline specific tactics for each area of your marketing strategy.
- Connect each marketing activity to your business goals.
- Outline backup strategies to prepare for potential challenges.
The marketing strategy doesn't need to be super long as long as it's supported by data and solid evidence that the tactics actually work.
6. Operational plan
An operational plan is the nuts and bolts of your business plan, detailing how you'll run your company day-to-day. Think of it as your business's playbook - it outlines who's doing what, when they're doing it, and how it all comes together to score those business goals.
Why do you need one? It keeps everyone on the same page and moving in the right direction.
Your operational plan breaks down your big-picture strategy into actionable steps. It covers everything from where you'll set up shop to how you'll manage your supply chain.
Key elements include:
- Business location and facilities: Discloses where your business operates from.
- Technology and equipment needs: Shows whatever you need to keep your business up and running such as hardware, CRM, ERP, and other systems.
- Production process details: Outlines the entire process of how your product or service comes to life.
- Supply chain management: Explains the details of your logistics.
- Quality control measures: Describes how your product will retain its golden standard.
When writing this section, be specific and realistic. Don't just say you'll have "state-of-the-art equipment" - detail exactly what you need and why. Paint a clear picture of your daily operations, from opening your doors to closing up shop. Here are some tips for nailing your operational plan:
- Be detailed but concise - cover all bases without writing a novel.
- Include a timeline with key milestones.
- Don't forget about your budget - outline costs for each aspect of your operations.
- Be flexible - your plan should be adaptable as your business grows and changes.
Your operational plan is the bridge between your big ideas and making them happen. It's where the rubber meets the road in your business journey, so give it the attention it deserves!
7. Management and organization
The following part is all about showcasing who's running the show and how your business is structured. That is why it is so important: it shows potential backers and investors that you have the right team and infrastructure to make your company a success.
So, what's in this section? Think of it as your business's family tree and resume rolled into one. You'll want to add:
1. Your business structure (LLC, corporation, partnership, etc.)
2. An org chart showing who reports to whom
3. Profiles of your key players (owners, executives, board members)
4. Roles and responsibilities of each team member
Any advisors or mentors you've got in your corner
Why is this so important? Simple - people invest in people. A rock-solid idea with a shaky team is not going anywhere as quickly as you’d like. Now, for some tips to make this section shine:
- Keep it concise but compelling. Highlight the most impressive bits of each team member's background.
- Show how your team's skills complement each other. You want a well-rounded squad, not a bunch of clones.
- If you've got gaps in your team, acknowledge them and explain your plan to fill them.
- Use visuals! An org chart can say more at a glance than paragraphs of text.
- Don't forget to mention any rock star advisors or board members - their credibility can boost yours.
This is your chance to brag a little. Show off your team's accomplishments, but keep them relevant to your business goals.
8. Financial plan
Simply put, the financial plan is your business's roadmap. It shows where your money's coming from, where it's going, and how you'll keep the cash flowing.
Why do you need it? Because money makes the business world go round! With this section, you prove you're not dreaming - you've got a solid plan to make and manage money.
It breaks down your finances into digestible chunks, showing potential investors (or yourself) that you've got a grip on the numbers.
The financial plan has key elements like:
- Initial funding requirements: The amount of money you need to get your business off the ground.
- Financial projections: These are forecasts of your business's financial performance. They typically consist of:
- Income statement: Shows your expected revenues, expenses, and profits over time.
- Cash flow statement: Illustrates how cash is expected to flow in and out of your business.
- Balance sheet: Provides a snapshot of your company's assets, liabilities, and equity at a specific point in time.
- Break-even analysis: Calculation that shows the point at which your total revenue equals your total costs. It indicates when your new business will become profitable.
- Financial assumptions: Educated guesses and estimates you make about factors that will affect your business's financial performance, such as sales growth rates or operating costs.
- Funding strategy: Outlines how you plan to secure the necessary capital for your business, whether through a funding request, loans, bootstrapping, investors, or other sources.
- Investment requirements: Details the specific amounts of money needed at different stages of your business's growth and what these investments will be used for.
- Risk analysis and mitigation: Identifies potential financial risks to your specific business and outlines strategies to minimize or manage these risks.
Now, for some tips to nail this section:
- Be realistic. Overly optimistic projections will raise eyebrows.
- Show your work. Explain how you arrived at your numbers.
- Use visuals. Graphs and charts can make complex data easier to grasp.
- Include multiple scenarios. Best case, worst case, and most likely case.
- Don't forget about taxes and inflation.
- Be specific about funding needs. How much do you need and what for?
- Address risks head-on. Show you've thought about what could go wrong and how you'll handle it.
The financial plan is all about showing you've got a solid monetary foundation and a clear path to profitability. You're giving yourself a financial blueprint to follow. Keep it clear and realistic, and show that you've done your homework. Your financial plan is your chance to prove that your great business idea is more than a pie in the sky.
9. Appendix
The appendix is your business plan's backstage area - it's where you stash all the extra supporting documents that supplement your main show.
It keeps your plan sleek while still providing all the juicy details for those who want to dig deeper.
What goes in it? Think resumes of your dream team, glamour shots of your products, links to market research that backs up your claims, and any legal documents like intellectual property, contracts, or leases that show you're legit.
The appendix is crucial because it adds credibility to your plan. It shows you've thought it through and have the evidence to back up your big ideas.
Tips for a phenomenal appendix:
- Keep it organized - use clear labels and sections.
- Only include relevant stuff - quality over quantity.
- Reference it in your main plan - don't let it be forgotten.
- Keep it updated - old info is worse than no info.
Your appendix is there to support, not steal the show. Use it wisely!
Downloadable small business plan template
Now that you're equipped with this knowledge, our startup business plan template is here to help! We've created a roadmap that makes planning simple and straightforward.
Say goodbye to the intimidating blank page. Our template guides you through each key section, from your compelling elevator pitch to detailed financial projections.
It's comprehensive, easy to use, and fully customizable to fit your unique business vision.
Why let your great idea remain just a thought? Download our template now and start turning your business dreams into reality!
<link to downloadable small business template>
Wrapping up
We've covered a lot of ground in this post, from the nitty-gritty of financial projections to the art of crafting a killer executive summary. A business plan isn't just a document - it's your roadmap to success.
Whether you're a seasoned entrepreneur or just starting out, take the time to create a solid business plan, and you will see the difference. It forces you to think critically about your business, helps you secure funding, and keeps you on track as you grow.
Don't let the idea of writing a business plan intimidate you. Take it one section at a time, be honest about your strengths and weaknesses, and don't be afraid to seek help if you need it.
