I wrote my first business plan when I was six. I've learned a lot since then, and in hindsight, I can see why the investors around my family's Christmas table didn't take my space Marine cowboy ranch pitch seriously. I didn't put a lot of thought into what it would take to make the idea work, and I certainly didn't do the market research. Also, it was a space Marine cowboy ranch business.
My point is that thinking about the outcome before considering the many variables that pave the way is counterproductive. A business plan may not seem like the most critical or complicated document, but it can guide an entire organization, keeping success at the top of everyone's mind. It's the difference between a successful investor pitch and crying on Christmas.
To show you what I mean, I've put together a simple business plan template to get you started.
Table of contents:
Simple business plan template
This simple business plan template outlines key business objectives, strategies, and financial projections. Compiling this information into one document will not only prepare you for the realities of running a business but will also guide your team, business partners, and investors as they navigate the plan.
After some good old-fashioned data entry, you should have a polished business plan that's ready to share. Regardless of what stage your business is in, this template is flexible enough to accommodate your needs.
Business plan example
Here's a business plan example I put together using the template above, to give you an idea of what it might look like once it's complete.
I built this example around a made-up company, GreenTech, but it includes all the important details that go into real business plans: mission and vision statements, an organization chart, product information, competitor analysis, marketing plans, and a whole lot more. It should give you an idea of what your own filled-in business plan template might look like, though you can always cut sections that aren't relevant to your specific organization.
What is a business plan?
A business plan is a document that clearly defines your company's goals, strategies, and operational details. It's essentially a roadmap for your team and investors. Think of it as boiling your entire business (concept, vision, dreams, and everything in between) down to one document.
A formal business plan will include an overview of your products or services, marketing and sales strategies, targeted markets, financial details, and even a description of what you're building.
Of course, business plans are unique snowflakes, so there's no one size fits all. Depending on what you're trying to do—attract investors, guide project expansion, align team members—your plan will look a little different. I'll dig into the different types of business plans in a bit.
What makes a business plan so important?
In its simplest form, a business plan turns your concept into a reality. In more tangible terms, it also helps you achieve necessary business goals like securing funding. You'll have a hard time finding investors if you show up to a pitch meeting with only a winning smile and a can-do attitude—a strong business plan can show them a clear path to a return on their investment.
Investors and their judgmental silence aside, this document is critical for guiding internal decision-making, setting goals, and providing a clear direction for the business and its vision.
Parts of a business plan
While no two business plans will look the same, there's a handful of key components virtually all good business plans have in common. So, if you haven't already looked through the template, here's what you can expect to find.
Title page: Impress readers with a unique presentation. This is your first opportunity to showcase your brand.
Table of contents: No one likes being lost in a document. A TOC can help readers navigate the various sections and get an overview of what's inside.
Executive summary: Provide an overview of the business, summarizing its mission, goals, and key highlights.
Market analysis: Include your research and data on the target market. Make sure to outline industry trends, competition, and customer demographics.
Products/services: Detail your services or products. You'll want to expand on your unique selling points and customer benefits.
Marketing and sales strategy: Outline your plans for promoting your business. If you've already identified marketing and sales channels, include those, too.
Financial plan: Define all financial details, from required funding and business budget to projected income and profit.
The organization: Showcase how your business will function on a structural level. Make sure to talk about your team's different positions and functions, and how it will all be managed.
Types of business plans
Depending on your organization and its needs, you might benefit from a more specialized business plan than the simple one I showed you. There are a number of business plan types that include different components based on their purposes—I'll walk through five here.
| Startup business plan | Internal business plan | Strategic business plan | Expansion business plan | Feasibility business plan |
|---|---|---|---|---|---|
Use | External | Internal | Internal | Internal & external | External |
Contents | Business concept, strategy, and financial projections | Specific projects, departments, and initiatives | SWOT analysis, mission, vision, and SMART goals | Strategies, resources, new product lines, new markets | Market research, financial projections, and potential risks |
Purpose | - Early-stage planning - Securing funding and investors | - Aligning team members - Allocating resources effectively | - Defining long-term goals - Guiding the overall strategic direction | - Outlining expansion plans and timelines - Defining new markets and growth opportunities | - Assessing the viability of a business idea - Determining if the business concept is worth pursuing |
Startup business plan
No business needs a clear roadmap quite like a startup. A startup business plan does more than direct your company from its earliest stages—it also shows potential investors your game plan. A strong business plan could be the difference between getting funding and moving back in with your parents.
Internal business plan
If you'll excuse the James Bond reference, some business plans are for internal eyes only. This kind of plan is best for established organizations that need to align their teams toward company-wide goals. You could also create an internal business plan for a specific department.
Strategic business plan
This kind of business plan is also internal, but it's more focused on actionable strategies than concepts or unique selling points. Strategic business plans should feature a SWOT analysis, mission and vision statements, and SMART goals.
Expansion business plan
Unlike a startup business plan, expansion business plans are for established companies seeking growth. You can use an expansion plan to explore new markets, new strategies, or even mergers and acquisitions. It can be internal or external (if, for example, you're seeking additional funding).
Feasibility business plan
A feasibility business plan lets you consider how viable an idea is. It should feature market research, risk assessment, budget requirements, and financial projections. You can use it externally to attract investors.
Not all businesses are in the same stage, so be sure to find a plan that fits your current needs. A new startup's checklist is different from that of an expanding business, and so is its business plan.
Write a business plan in 7 steps
A business idea and a feasible business plan are two very different things. Follow these seven steps to solidify your ideas into a clear roadmap.
1. Define your mission statement
A mission statement is a way for you to tell your company's story and communicate the vision you have for it. It should reflect your values, goals, and what you hope to achieve, setting the tone for your entire business plan. Ask yourself if your mission statement makes your business sound credible, feasible, and profitable.
2. Outline a detailed company description
Don't be shy about the details. Provide your readers with a comprehensive overview of your company, its history, founders, legal structure, location, and the concept it's all built around. You might even include photos and illustrations for an extra flair.
3. Set your business goals
Set out your short- and long-term business goals. Use the SMART technique to outline goals that are specific, measurable, achievable, relevant, and timely. Make sure these goals align with your mission statement.
4. Detail your services or products
Describe your services or products and lean heavily on their unique selling points. Discuss benefits, features, and the problems they solve for the target market you're aiming to reach. Include some visuals of your product or service to really drive the point home.
5. Analyze your target audience
Describe the market you're targeting and the audience demographics you've identified in your research. Understanding your future customers is essential for marketing and sales strategies. Put together ICPs to define your ideal customer base and create buyer personas to keep your team on track.
6. Set milestones for marketing and sales
Showcasing that you've identified your target audience isn't enough. You need to prove that you know how to speak to it and how to appeal to it while promoting your products and services. Some businesses set up milestones such as X amount of sales, Y number of acquired clients, or, in my case, the successful integration of Cowboy Ranch into the International Space Station.
7. Perform a financial analysis
Conduct a thorough financial analysis that includes details such as income statements, balance sheets, and cash flow statements. Outline your financial projections and your funding requirements. This section should prove how financially feasible your business concept is.
Once you have these points outlined and fleshed out, it's only a matter of representing each and every one of them in detail, ensuring that the voice and tone of your business plan reflect your brand and embody the unique concept you want to get across.
Tips for using business plans
Now that you've written a business plan, it's time to put it to work. Here are some tips to get the most out of yours.
Perform quarterly or annual reviews: It's important to review your business plan throughout the year (or at least once a year) to see if you're on track to meet your goals. If not, it may be time to revise or pivot.
Provide easy access: To keep your business plan top of mind across your organization, you should make it easily accessible by sharing and resharing it as needed. Otherwise, it might be a document you finish and forget.
Incorporate visual aids: Depending on how design-savvy you are, you can augment the text in your business plan with charts, graphs, or other graphics (or have someone do it for you).
Leverage for funding: This might seem obvious, but a business plan can be a key tool to bring in funding for both startups and established companies. The more effective your plan is, the more attractive it'll be to investors.
Talk to an advisor or consultant: If your business plan is safe to share externally, consider seeking outside feedback from a business advisor, consultant, or industry veteran who can offer constructive criticism.
Automate your business with Zapier
Your business plan is the sum of your ideas, passion, vision, and the lessons you learn as your business develops. Over the years, it will likely go through a few iterations and changes, but the plan you write today will guide you through the beginning stages.
In the meantime, you can use Zapier to optimize your business with no-code automation that scales with you. Whether you want to supercharge your RevOps, close more deals, or go hands-off with marketing tasks, Zapier's automation toolkit lets you streamline workflows for every team—no developers required.
Zapier is a no-code automation tool that lets you connect your apps into automated workflows, so that every person and every business can move forward at growth speed. Learn more about how it works.
Business plan FAQ
If you're looking for quick answers to questions about business plans, look no further than this refresher course.
How can I write a simple business plan?
The easiest way to write a simple business plan is to use our template and fill in the included sections. You can also refer to our business plan example if you need a bit of inspiration.
What are the 7 steps to create a business plan?
We cover the seven steps to making a business plan above, but here they are again if you need a quick review:
Define your mission statement
Outline a detailed company description
Set your business goals
Detail your services or products
Analyze your target audience
Set milestones for marketing and sales
Perform a financial analysis
How long should a business plan be?
A complete business plan will usually be around 15-20 pages, but it can be shorter or longer depending on your organization's size, goals, and timelines. Our template is designed to be 15 pages.
Related reading:
Business startup checklist: How to launch a startup step by step
10 free small business budget templates for future-proofing your finances
This article was originally published in November 2023. The most recent update, with contributions from Dylan Reber, was in November 2024.
