How to Write a Business Plan

How to Write a Business Plan

How to Write a Business Plan

How NOT to Write a Business Plan	Check *	Get Help **
1.	Don’t include a contents list, don’t number any pages and don’t follow any consistent approach for section heading etc.		See this table of contents and explore the Free-Plan template.
2.	Do write the plan’s summary before you write the plan, or, better still, don’t include any summary.		Check advice at summary of plan.
3.	Do develop your business strategies and ideas progressively as you write the plan. It will draw readers into the process and make the ending more unexpected !		See developing a business strategy, look at mission, strategies and use the Online Strategic Planner.
4.	Do start the plan with your financial projections – the more detail and tables the better !		Review planning to plan and then decide the length of your plan.
5.	Don’t summarize the projections – let readers figure out the full-year totals, profits, cash flows and so on for themselves.		Use PlanWare’s Excel-based templates for financial projections to address these problems.
6.	If you include projected balance sheets, make sure that they don’t balance.		– ditto –
7.	Don’t produce any separate cash flow forecasts, just rename the P&L or income projections.		– ditto –
8.	Do ensure that your financial projections indicate 40% profit margins in the third year. If raising external capital, do explain that the projected return to investors will exceed 100% per annum within three years.		See making financial projections and then look into financial projections and funding. Use Exl-Plan to bring realism to projections.
9.	Do mention in the marketing section that your proposed offering has no competition. This will save you having to do any market analysis.		See how to develop profiles of target market.
10.	Do base the plan’s marketing section around a few quotes from research reports that you found on the web.		– ditto –
11.	Don’t consider customer behavior, needs or trends unless you wish to present a series of supportive (unresearched) theories that will support your plans.		– ditto –
12.	Do base your sales projections on the presumption that you will gain, at least, a 1% share of the total market and don’t bother with any market segmentation.		Take guidance from marketing strategies, sales plans & projections.
13.	Do pad out your sales plan with lots of buzz words like customer-driven, first-to-market, market-led. Do underpin it with a disproportionately small (or large) marketing budget but don’t be too explicit as to how, where and when it will be spent.		– ditto –
14.	Don’t include any background to your business idea/invention, progress to date or current status.		See how to present background and present status.
15.	Do spend at least ten pages describing your offering – do make this as detailed and technical as possible to impress your readers. Don’t mention any benefits as these should be obvious !		Get help describing products/services.
16.	Do anticipate technical breakthroughs and new offerings but don’t discuss related costs or risks.		Review technology & R&D.
17.	Do include a 6-8 page CV for yourself but don’t worry about building a management team or sorting out operational issues like production, delivery etc. Do make some heroic assumptions about these matters and do pledge to address them at a later date.		See how to present operational plans and describe management & administration issues.
18.	Do spend as little time as possible on the plan but do make sure that it runs to at least sixty pages even if this entails lots of padding and inclusion of superfluous or irrelevant material.		Review the length of a plan and preparing a basic/short plan and check the insights into business planning.
19.	Do use as wide a variety of font types, sizes and colors as possible to add style to your plan and don’t bother using a spell checker.		Use the business plan checklist and review the Free-Plantemplate.
20.	Don’t let a qualified outsider see your emerging plan and don’t bother with reading over or redrafting.		Use the business plan checklist.

Checklist for How to Write a Business Plan
You wouldn’t drive 2,000 miles without a map, so don’t start a business
without writing a business plan; it’s your roadmap to success!
As explained in the course, business planning helps to ensure business success. And, as the
blueprint for your business, a business plan is a critical element because it showcases your
business’s vision, product/service, marketing strategies, and financial projections.
Remember, a business plan outlines the complete operating framework of your business by
detailing who you are, why you’re in business, what you do, how you do it, where you operate,
how you will generate profits, who your customers are, and why your business is important.
The checklist below covers information you learned in the course and organizes the checkpoints
based on the sections of the business plan as well as what is outlined in the Build Your Business
Plan tool. Use the checklist to measure where you are in the process of collecting the necessary
material. As you progress, refer to the Build Your Business Plan tool for additional business plan
writing support as needed.
Let’s begin charting your path to writing your business plan!
Note: Checkpoints in italicized bold are included in the Business Plan Writing Tool.
Checkpoint Yes No
Preparing to Write a Business Plan
I have decided the type of business plan to write.
I have a business plan started, in-progress, or complete.
I know the audience of my business plan.
I know the need my business provides to the community.
I know my potential customers.
I know why my potential customers will buy my product or service.
I know how to reach potential customers.
I know where I will get the financial resources to start or grow my business.
Writing My Business Plan: Company Description Section –
For additional information, refer to Section 3 of the Business Plan Writing Tool.
I have a mission statement.
I know my attainable business goals and objectives.
Page 1 of 6




 Checklist for How to Write a Business Plan
Checkpoint Yes No
Is my product or service new and exciting?
I know how my product is developed or service is provided.
I know who will buy my product or service.
I know how my business will compare to competitors in my industry.
I know how my business will manage foreseeable industry changes.
I know how my company management is organized and who makes the
decisions.
Do I anticipate my business management structure changing?
I know the values that drive my business.
I know how many employees I have, what they do, and how they are paid.
I know the principal members of my business and their roles.
I can include a brief resume on each key manager within my business.
I know the legal structure of my business, such as licenses and/or permits my
company operates with or needs.
Writing My Business Plan: Market Research Section –
For additional information, refer to Section 4 of the Business Plan Writing Tool.
I know my industry.
I know my industry’s current size and what share of that market I will
have.
I know my competitors in my industry.
I know my direct competitors in my industry.
Are there regulations that apply to my industry?
I know the trends in my industry (growth, consumer preferences, product
development)?
I know how and where my company fits in the industry.
I know the advantages and/or disadvantages I have over my competitors.
I know the barriers to entering this industry. (examples: high initial capital
costs, unique technology, customer need for brand recognition, etc.)
I know the demographics of my current or prospective customers.
Page 2 of 6

 Checklist for How to Write a Business Plan
You wouldn’t drive 2,000 miles without a map, so don’t start a business
without writing a business plan; it’s your roadmap to success!
As explained in the course, business planning helps to ensure business success. And, as the
blueprint for your business, a business plan is a critical element because it showcases your
business’s vision, product/service, marketing strategies, and financial projections.
Remember, a business plan outlines the complete operating framework of your business by
detailing who you are, why you’re in business, what you do, how you do it, where you operate,
how you will generate profits, who your customers are, and why your business is important.
The checklist below covers information you learned in the course and organizes the checkpoints
based on the sections of the business plan as well as what is outlined in the Build Your Business
Plan tool. Use the checklist to measure where you are in the process of collecting the necessary
material. As you progress, refer to the Build Your Business Plan tool for additional business plan
writing support as needed.
Let’s begin charting your path to writing your business plan!
Note: Checkpoints in italicized bold are included in the Business Plan Writing Tool.
Checkpoint Yes No
Preparing to Write a Business Plan
I have decided the type of business plan to write.
I have a business plan started, in-progress, or complete.
I know the audience of my business plan.
I know the need my business provides to the community.
I know my potential customers.
I know why my potential customers will buy my product or service.
I know how to reach potential customers.
I know where I will get the financial resources to start or grow my business.
Writing My Business Plan: Company Description Section –
For additional information, refer to Section 3 of the Business Plan Writing Tool.
I have a mission statement.
I know my attainable business goals and objectives.
Page 1 of 6



 Checklist for How to Write a Business Plan
Checkpoint Yes No
Is my product or service new and exciting?
I know how my product is developed or service is provided.
I know who will buy my product or service.
I know how my business will compare to competitors in my industry.
I know how my business will manage foreseeable industry changes.
I know how my company management is organized and who makes the
decisions.
Do I anticipate my business management structure changing?
I know the values that drive my business.
I know how many employees I have, what they do, and how they are paid.
I know the principal members of my business and their roles.
I can include a brief resume on each key manager within my business.
I know the legal structure of my business, such as licenses and/or permits my
company operates with or needs.
Writing My Business Plan: Market Research Section –
For additional information, refer to Section 4 of the Business Plan Writing Tool.
I know my industry.
I know my industry’s current size and what share of that market I will
have.
I know my competitors in my industry.
I know my direct competitors in my industry.
Are there regulations that apply to my industry?
I know the trends in my industry (growth, consumer preferences, product
development)?
I know how and where my company fits in the industry.
I know the advantages and/or disadvantages I have over my competitors.
I know the barriers to entering this industry. (examples: high initial capital
costs, unique technology, customer need for brand recognition, etc.)
I know the demographics of my current or prospective customers.
Page 2 of 6

How to Write a Business Plan