How to write a business plan

# Why write a business plan

A business plan makes you step back and examine every part of the business at once: what you sell, who will buy it, how you will deliver it, who is running it, and how the numbers work. Writing the plan exposes gaps, clarifies goals, and creates a record to track progress and milestones. A well-prepared plan also helps explain the business to potential hires and investors.

# What a good plan looks like

First impressions matter. Present a professional document with a cover, contents and accurate proofing. Keep it concise — long, detailed plans often get shelved. Open with an executive summary of one to two pages that outlines the opportunity, your approach, and the main financial points.

Be realistic in claims and forecasts, and back assertions with evidence. Include what might go wrong and how you will respond. Update the plan regularly as the business develops.

# Essential sections to include

• One- to two-page snapshot of the plan and the industry context.

• Company background, legal structure and why the founder(s) matter. Describe the product or service and relevant industry experience.

• State who your customers are, whether you already have customers lined up, and why they will choose you over competitors.

• Pricing policy, sales channels and the end-to-end supply-to-customer journey. List marketing tactics (for example social media or direct marketing).

• Team structure, key roles and realistic workload expectations.

• Premises, IT and accounting systems, and any regulatory requirements.

• Short-, medium- and long-term forecasts showing turnover, costs and profit expectations. Use a SWOT analysis to name strengths, weaknesses, opportunities and threats and set specific, timed objectives.

# Practical finance guidance

Set honest and achievable goals. If the business won't make a profit in the first 12 months, say so and explain the pathway to profitability. Use available tools for cash-flow forecasting and financial management to inform decisions.

# Common mistakes to avoid

Not doing enough research. Support market and growth claims with data on industry outlook and customer segments by demographics, location and behaviour. Identify direct and indirect competitors and understand their pricing and positioning.

Overly detailed plans. Long documents can become a barrier to action. Keep the core plan focused and append supporting data that readers can consult.

Unrealistic projections or promises. Don't promise results you can't back with evidence. Highlight risks and mitigation steps.

# How to keep the plan useful

Treat the business plan as a live document. Review and update it regularly to reflect actual performance, changes in the market or shifts in strategy. Use the plan to set measurable milestones and to communicate priorities to staff and potential partners.

# Final practical tips

• Start with a clean executive summary that can stand alone.
• Be specific about who your customers are and how you reach them.
• Show the numbers you used to build forecasts and state assumptions clearly.
• Use SWOT to focus on a small number of high-impact objectives with timebound milestones.

These steps create a practical, navigable plan that helps you run the business and explain it to others.