There are many reasons to write a business plan.
A business plan is a comprehensive document that outlines your company’s goals, strategies, and tactics for achieving those goals. It typically includes sections on market research, financial projections, marketing and sales strategies, operations plans, and management structures.
Plus, creating a business plan helps work out operating procedures and can put your business at a strategic advantage over other businesses.
To create your business plan, work on collecting the following information and documentation.
Free Download: 2 Essential Business Plan Templates
How To Write a Business Plan
As you work on creating your business plan, it can help to understand fully all the information and data that you need to complete a business plan that is useful for you.
Use this list of information to help you plan and write a business plan so you can build the business you want.
1. A Description of Your Business
This is simply what you do, who you do it for, why you do it, how you do it, and when you do it.
2. Describe the Problem(s) Your Customer Has That You Solve
Make a list of each problem you solve for your customer. Describe them fully and why they need to be solved. It can help to attach the product to the problem for reference.
3. Describe Your Solution
Explain how this solution solves the problem for your ideal customer. Try to write this from their perspective to ensure that you are putting the customer in a central place.
4. Describe Your Target Customer
You may need to describe more than one target depending on your products and services, especially if you have different levels of products, depending on their place in the customer buying journey. This is also a good place for customer avatars.
5. Describe Your Competitive Advantage
This is all about how you are different from the competition. It may be due to price, service, innovation, operation, or something else. Some people also describe this as a unique selling point or unique selling proposition. It’s all about your place in the market and how you can leverage it to your advantage.
6. Describe Your Selling Process
Website, storefront, affiliates, distributors or salespeople, door-to-door, or something else? For example, perhaps you’ll set up a landing page with a freebie to build your list and then nurture your relationship with them via email. Be specific and thorough.
7. Describe Your Business Model
This is a list of your revenue streams and how you’re going to make money. If you have no revenue stream potential, you have no business. For example, starting a blog is not a business until you monetize it.
8. Describe Your Overhead Costs
What are the funds you need to get started or continue your business? List each expense and why you need it.
9. Describe Your Goals and Benchmarks
If you don’t set deadlines, it won’t happen. So make sure you match a deadline or benchmark to each of the goals you’ve set for your business. For example, “I will get 100 new customers each week by hosting two-hour long webinars each week.”
10. Describe Your Business Setup
For example, are you a sole proprietor who outsources to contractors or an employer with a management team? If you plan to hire staff as time goes forward, mention those benchmarks so you know when this will happen.
11. Describe Resources You Have and Need
Make a list of the resources you have available now and how you’ll use them. Also make a list of resources you need to buy, and when you’ll do so based on benchmarks.
Free Download: Your Essential Business Plan Template
Whether you’re starting a business or drafting a formalized document it can be tempting to think of a business plan as simply your company’s name and a description of your product or service. But in reality, planning a business involves thinking through a lot more details.
Check out this free business plan template from the HubSpot Academy that will help and guide you through the steps of writing company and product descriptions, setting sales and marketing goals and plans, and thinking through legal and financial logistics.