How to write a great business plan

Writing a business plan takes work, but it is a necessary step for any business.

If you’re thinking of launching a business, one of the first things you’ll need is a business plan. Ideally, you’d have one before you even come in to see us for the first time (so we can talk through it with you).  

But for business owners who are experts in a specific area – whether that’s window cleaning or digital marketing – a business plan may well be new territory for you. The good news is that it doesn’t need to be overly complicated.  

What is a business plan?  

Think of a business plan as your roadmap. It should outline your company’s goals and how you plan to reach them. It will include other basics such as your target market, marketing strategy, a description of your products and services, and your financial plans.  

There are a couple of main purposes of a business plan. For you, it’s a guide that will keep you on track, so you don’t get too stuck in the weeds of the day-to-day running of the business. It will remind you of your overall goals, and refresh your memory when you need to come back to your strategy for achieving those goals.  

Importantly, a business plan is also an important tool in your toolbox when it comes to securing investment. Whether you’re borrowing funding from a bank, from us with our loan services, or from another source, any lender will want to see a clear, practical business plan.  

Steps for writing a business plan  

1. Outline the business opportunity  

This section should cover who you are, what you do, and what your products and/or services are. It should explain whether the business offering is unique, or how it stands apart from the competition. Don’t forget to include basics such as the name of the business, the industry it’s in, when it was registered, and what kind of business it is (sole proprietorship, corporation etc).  

2. Explain your marketing strategy  

Your marketing strategy should begin with a thoughtful explanation of your target audience. Remember that a target audience should be specific, as no marketing strategy can target everyone at once.  

Include who your customers will be, and how you will reach them. Spend time researching your competition, and write down what their strengths and weaknesses are, and how you could compete. Explain what will set your business apart from this competition, and outline your pricing strategy. 

3. Plan out your team  

You might not have a team yet, but you will need to plan for one in this business document. A diagram of the levels of management can be useful for larger teams, although a simple list will be fine for smaller teams.  

Include what each position will do, what skills they will need, and how you will go about recruiting your team. Be sure to consider wages as well as training costs.  

4. Include business operations   

How will everything run, not just every day, but year-round? This section of the business plan will cover the basics that you will need to operate, from suppliers to your physical location, IT systems to inventory control, and seasonal considerations for your supplies and output.  

5. Lay out your finances  

Planning your finances can be difficult if you’re using a business plan to apply for finances, but write as if you have achieved the funding you’re looking for, so the lender can see how the cash will be put to work.  

This section should have a clear plan for the first year, as well as forecasts for the next three to five years. Include your forecasts for salary costs, operating expenses, lease agreements, profit and loss projections, and anything else that will see money either coming in or going out.  

Be sure to include details on repayment plans for any loans for the business.  

6. Add any other important documents  

   
   

Gather together all your documents and add them to the plan.  

This can include:  

• Contracts 

• Lease agreements 

• Financing 

• Permits 

• Registration 

• Any other documents you have  

This will help you keep all of your important paperwork in one neat place, and keep it on hand should you need to refer to it in other sections.  

7. Add an Executive Summary  

Finally, write the Executive Summary. This is essentially an overview of your business plan, and is often considered the most important part. However, even though it appears first in your plan, it is usually easiest to write it last, once all the information throughout the plan is clear and fresh in your mind.  

An Executive Summary should cover the main points from each section but remain concise at no more than two pages long.  

Writing a business plan  

It’s your job to write your business plan, but that doesn’t mean you can’t talk to friends, colleagues, mentors, editors, and other experts to help you flesh out the details.  

At Community Futures Howe Sound, we love to see entrepreneurs make a good start on their business plan before we add our own expertise. If (or when!) you get stuck or need advice on how to continue, that’s when we’re happy to sit down with you and talk through the plan, offering our input on any sections you’re struggling with. Alternatively, we’re happy to look over a finished business plan and offer advice and tips on how to improve it, or on how to fill in any gaps you might have missed.  

Learn more about our free business advice sessions here.  

Business plan templates  

There are plenty of tools available to help business owners, so don’t be afraid to use a business plan template to get started and ensure you’re ticking all the boxes.  

BDC offers a good business plan template here, as does Futurpreneur here. There’s even a Community Futures business plan template here!  

Got questions about your business plan, or want to sit down with us to go over yours? Book a free, no strings attached business advice session here!