How to Write a Business Plan: 6 Key Elements to Focus On.

By Colton Bourquin – AVP, Business Lender | Estimated read time: 4 minutes

Creating a Business Plan: Why It Matters.

In a nutshell, a business plan is a document that outlines your goals and how to achieve them. Whether you’re starting a new business or growing your current one, creating a strong plan can help you stay organized and secure funding.

Studies show that businesses with a written plan can grow up to 30% faster than those without one, so it’s important to know where to start. Even if you have an established business and want to expand into a new market, writing a tailored plan can help you get closer to achieving your next goal.

1. Executive summary

   Although this is usually the first part of a business plan, it’s often written last. That’s because it outlines everything that comes next. This short intro should:

   • Describe your mission and vision.
   • List your products and services.
   • Identify target customers.
   • Highlight opportunities.
   • Note financial goals.

   The idea is to give a snapshot of your business and set the stage for the rest of your plan.

2. Market research

   Market research is an important part of any business plan. It helps you learn about your customers – what they like, how they shop and who they are – so you can adapt to meet their needs.

   It’s also a chance to look at your competitors. By analyzing what they do well and what they don’t, you can find gaps in the market and make your business stand out.

3. Products and services

   This is the part of the document where you list what your business offers. But it’s also a chance to think about what you’re really selling. Is it an experience? A solution? Happiness?

   If you sell a product, focus on what makes it special. If you offer a service, explain how it helps your customers. The goal is to show why customers need what you have. Supply, meet demand!

   Speaking of demand, if you’re submitting your business plan for loan approval, include any relevant surveys, industry trends or other data that highlight the need for your products or services. Additionally, provide details on the average lifecycle of your products, projected profit margins and any patent or trademark filings you have.

4. Marketing tactics

   Be sure to include a section that explains how you plan to attract new customers. It should include details like:

   • How you will advertise (social media, flyers, billboards, online ads, etc.).
   • What deals or discounts you might offer.
   • How you’ll keep customers coming back.

   The goal is to find ways to reach your target audience and get them excited about what you offer.

5. Operations

   Whether you’re starting a new venture or expanding a current one, it’s important to address how your business will run. This section helps you explain how you will handle daily tasks and who will be in charge. Answer questions like:

   • Where will your business be located?
   • How many employees do you need, and what will they do?
   • What equipment or technology do you need?

   Well-organized operations are essential for keeping your business running smoothly.

6. Financial roadmap

   Laying out a financial roadmap is also crucial for your new or growing business. It helps you understand how much money you need to run and make a profit. (As a general rule of thumb, this section should include income projections for the next three to five years.)

   This part of your plan also helps with tasks like figuring out your business’s value, knowing how many sales you need to break even, estimating inventory needs and projecting cash flow. Our business calculators can help with all of the above!