A business plan is the design and construction plan for a great small business. If you wanted to build a house, you wouldn’t walk over to an empty lot and just start nailing boards together. You’d follow a blueprint that tells everyone what the finished product should look like and how to build the home. Essentially, a business plan serves the same purpose.
What does a business plan contain?
A business plan contains sections such as: Marketing Plan, Startup Expenses and Capitalization, Management and Organization, Products and Services, and Operational Plan.
A business plan is usually developed around the answers to three common questions:
- Where are we now?
- Where do we want to be?
- How are we going to get there?
And is usually written for one or more of these five reasons:
- To test the feasibility of your business idea and work out any bugs on paper first.
- To develop strategies ahead of time for marketing, finance, operation and human resources, instead of when you’re in the fast-paced start-up stage.
- To get funding, such as a bank loan.
- To attract investors.
- To have a roadmap to follow for at least the first year in business.
Download our free business plan template
A great deal of time and effort should be spent planning before your new company’s products and services ever reach the market. You need a good foundation and planning before you invest all your time and money.
To get started, check out our free One-Page Business Plan – happy planning!