To build a successful business, you need a blueprint that details everything from your offerings and promotional strategy to your finances and organizational management. In other words, you need a business plan.

In this article, you'll learn how to write a business plan for any industry. By the end, you'll have the tools you need to create a plan that helps with setting business goals, securing funding, and growing your company.

Why You Need a Business Plan

Starting a small business requires research and planning. Think of your business plan as the document that gives your company direction. It's essential for guiding how you structure your company, plan your product or service lines, and reach important milestones.

Taking the time to develop a business plan can help you succeed. Entrepreneurs who write out a business plan are 16% more likely to build a viable business.

Because a business plan requires a market analysis, it helps you understand how to position your company against the competition. And because it includes a marketing and sales strategy, it prompts you to map out these key elements of your business growth.

In some cases, your business plan might be an internal document that only your executive team reads. But in other cases, you can use it to secure funding from financial institutions or individual investors. As a result, a business plan is crucial for long-term planning.

What to Include in Your Business Plan

The structure of a traditional business plan is relatively simple and includes the following elements. Use the sections below as a free business plan template to build your own strategic plan.

Executive Summary

Start with a brief introduction to your company that summarizes all the other sections of the business plan. Your executive summary should outline:

• What your company does
• What makes your company unique
• Your company's mission statement
• Your company's executive team
• Basic financial projections
• Growth plans for your business

Financial projections and growth plans aren't essential for every business. However, they are important if you intend to use your business plan to request funding.

Company Description

While the executive summary provides an introduction to your business, the company description should go into detail. Use this section to address your business's biggest strengths, including:

• Problems Your Business Solves: Explain why these issues matter and how your offerings fix them.
• Customers Your Business Helps: Describe your ideal customer profile and buyer personas in detail.
• Competitive Advantages: Discuss what gives you an edge over the competition and how you'll win.
• Business Location: Talk about your company's unique location and why it's so important.

Market Research

To launch a successful new business, you need a strong understanding of your target market. In this section, share the market research you've done to show your team or potential investors how you'll differentiate.

Include a description of your industry, its current state, and possible opportunities. Then, walk through competitive research, including competitors' strengths and weaknesses. Explain how you'll outdo them.

Organization and Management

Next, discuss how you plan to organize and manage your business. Specify the legal structure you intend to use. For example, you might form a limited liability company (LLC) or incorporate your business.

Include a chart that clarifies who manages what within the business. Introduce yourself and each member of your executive team. Detail their qualifications and what they'll manage.

Product Line or Services

Discuss the products or services you'll offer to customers. Detail any research and development you've done, and describe how you intend to protect your business's intellectual property.

If you're opening a service-based business, detail the services you'll offer and how you'll provide them. If you're opening a product-based business, walk through each item and include visuals.

Whether you're a product- or a service-based business, explain your pricing strategy. Mention how your pricing compares to other options in the market.

Marketing and Sales Strategy

Next, detail how you'll promote your products or services to potential customers. Outline your marketing plan, including the channels you intend to use. In your marketing strategy, make sure to estimate your budget.

Explain how sales factors into your business. For example, will you need a dedicated sales team to reach out to customers and nurture leads? Will you need a sales team to negotiate with customers and close deals?

Financial Projections

A good business plan gives the reader confidence that the company can succeed and that it has a plan for growth. In this section, project your financial plans for the next five years.

Use your estimates to develop an income statement, balance sheet, and cash flow statement for this time period. If you've already launched your business, include these financial statements for the previous three years as well.

Funding Request

If you intend to share your business plan with investors or financial institutions, include a funding request in the document. This section is your opportunity to detail how you plan to grow your business.

In this section, detail the funding you need, why you need it, and how you'll use it. Clarify the financing terms you're seeking, too.

Additional Materials

At the end of your business plan, include an optional appendix with additional materials. This section is ideal for documents like executive team CVs, legal contracts, and trademark or patent documentation.

How to Update Your Business Plan

A business plan isn't something you should set and forget. Instead, think of it as a living document.

Make a point of revisiting your business plan regularly. For example, you might update it when your products and services change or when your organizational structure evolves.

Business consultant Joseph Fairchild recommends revisiting your business plan quarterly. Compare your actual results to your plan and rate how well your business performed.

"You could then prioritize the updates based on the area(s) that need the most attention," Fairchild suggests. "The important part is to periodically update the plan to reflect where you are—and where you want to go—at the time you update your plans."

Common Business Plan Mistakes to Avoid

As you write your business plan, make sure to avoid some common mistakes, including:

• Overestimating Financial Performance: Aim for realistic projections and be aware of challenges.
• Neglecting Market Research: Assess the competition so you can position your business effectively.
• Being Too Vague: Keep your plan as focused as possible to make it compelling for potential investors.

In addition, business consultant Pat O'Brien advises business owners not to ignore their audience. Keep in mind that investors, business partners, and employees will likely read your plan.

"Know your audience and tailor your plan to them," O'Brien suggests. "If you're seeking investment, focus on what matters most to investors: ROI, market opportunity, and risk mitigation."

Next Steps After Writing a Business Plan

Creating a business plan is a key step in launching a successful company. Next, explore legal services to make your business official or browse business funding options to reach more ambitious goals.

About Anna Sonnenberg: SaaS Expert

Anna Sonnenberg is a seasoned B2B SaaS writer and small business owner. Specializing in martech, sales automation, and productivity software, Anna turns complex topics into clear, actionable insights. As a fellow entrepreneur, she's dedicated to helping you harness the right tools to grow your business.