Vector of a single page with folded corner and a pencil. Represents preparing to write a business plan.

How to Write the Best Business Plan (2023 Guide)

Noah Parsons | May 31, 2023

Writing a business plan doesn’t have to be complicated. The more you know about what goes into your plan, the easier it will be to write.

In this step-by-step guide, you’ll learn how to put together a strong, detailed business plan. One that will impress bankers and potential investors, while helping you start, run, and grow a successful business.

Step-by-step guide for writing a business plan

Follow these simple steps and download one of our free business plan templates to make writing your business plan quick and easy.

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Start with a one-page plan

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Outline all of your important business details with a brief and focused document that’s incredibly easy to update and expand. You may even find that it’s all you need to run your business.

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Write an executive summary

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Create a brief and convincing introduction to your business. This is the first, and possibly only, thing investors, employees and anyone else will read. It’s second on this list, but the last thing you should write.

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Describe your products and services

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This is where you describe what you are selling and how it solves a problem for your target market. Any other information, like initial traction or patents, should further demonstrate how your product/service stands out.

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Document your market analysis

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When writing a business plan you’ll need to spend some time collecting information about your customers. The tricky part is taking all of that data and turning it into an informative description of your target market.

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Show that you know the competition

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Everyone has competition and you should show that you understand who they are and how you compare as part of your business plan.

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Outline your marketing and sales plan

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Describe how you plan to reach and sell to your potential customers, what your sales strategy will be, and what marketing activities you will use to make your business successful.

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Provide an overview of your operations

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It’s important to address the specific day-to-day operations and setup for your business. This includes your location, distribution efforts, partnerships, and anything else that keeps you running.

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Track milestones and metrics

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While not required to complete your business plan it can be incredibly useful to map out key business milestones and the metrics you’ll be tracking along the way.

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Describe your company and team

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Explore the human element of your business by creating a company description that includes an overview of your history, management team, potential hires, and legal structure.

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Make a financial plan and starting forecasts

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Creating a financial forecast and budget prepares you with the necessary financial statements and forecasts to set goals and pursue business loans and investments.

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Add supporting information to an appendix

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A place for additional data, charts, or other information that supports or just doesn’t fit into specific sections of your plan.

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Business plan templates and tools

Kickstart your plan writing by downloading one of our free business plan templates.

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Traditional business plan template

Download a free SBA-approved business plan template built for small businesses and startups.

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One-page plan template

Download a free one-page plan template to write a useful business plan in as little as 30 minutes.

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Sample business plan library

Explore over 500 free real-world business plan examples from a wide variety of industries to inspire and guide your own plan.

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How to write a business plan FAQ

A document that describes your business, the products and services you sell, and the customers that you sell to. It explains your business strategy, how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

Having a business plan is your most valuable strategic tool when exploring a business idea, looking to set strategic milestones, or pursuing funding. When written correctly, it can be useful for any entrepreneur at any business stage.

A business plan helps you understand where you want to go with your business and what it will take to get there. It reduces your overall risk, helps you uncover your business’s potential, attract investors, and identify areas for growth. It ultimately makes you more confident as a business owner and more likely to succeed for a longer period of time.

The length of your business plan fully depends on what you intend to do with it. From the SBA and traditional lender point of view, it needs to be whatever length necessary to fully explain your business. This means that you prove the viability of your business, show that you understand the market, and have a detailed strategy in place. If you intend to use your business plan for internal management purposes, you don’t necessarily need a full 25-50 page business plan. Instead, you can start with a one-page plan to get all of the necessary information in place.

1. Not taking the planning process seriously. 2. Having unrealistic financial projections or incomplete financial information. 3. Inconsistent information or simple mistakes. 4. Failing to establish a sound business model. 5. Not having a defined purpose for your business plan.

A business plan covers the “who” and “what” of your business. It explains what your business is doing right now and how it functions. The strategic plan explores long-term goals and explains “how” the business will get there. It encourages you to look more intently toward the future and how you will achieve your vision.

The core elements of business planning are the same for nonprofit organizations and for-profit businesses. However, it’s far more important for a nonprofit to thoroughly outline how and from who they will continue to receive funding. This includes promotional, partnership, and fundraising strategies.