How to Write a
Business Plan
Step by Step

25 May 2022
Written By Ivan Radonjic

Writing a business plan can be a difficult task. Many people don’t know how to write a business plan, which is why they choose to work with professional companies, but it’s safe to say the business plan is an important part of your company.

The business plan is a proven method for success, but what does one look like? What characteristics should a business plan have if it’s going to be successful? Let’s take a look at how to write a business plan step-by-step.

#1 - Executive Summaries

Any good business plan begins with an introduction. In this case, the introduction is the way that you engage the reader. You want to get them invested in your business, so this is how you do it.

This is the point where you provide a technical summary of the plan and outline both the operating model of the business as well as what you intend to do. You don’t need much more than a page of detail, but there are certain things you should think about considering. The name of the company, the operating address, key staff positions and names, and then the types of goods or services that you provide.

#2 - Business Description

The business plan uses the executive summary as a way of engaging with the reader, and now the business description is what you use to talk about the business. What do you do? What is your target market? How do you stand out?

This is the moment where you highlight the strength of your business and then use that as a reason to explain why it’s such a worthwhile investment.

#3 - Market and Competitive Analysis

As part of your business plan, you have sat down and done an analysis about the market you want to enter. Any business worth their salt should do this because it means that they get a proper understanding of their industry, and investors will want to see that you’ve done this. This is your moment to talk about the industry that you want to enter and how you will function within it.

You should also be prepared to do a competitor analysis. Take a look at some of the biggest names in the industry, and then identify what makes them successful. This will provide you with useful information about how to thrive.

#4 - Operational Structure

In this section of the business plan, you have to talk about the day-to-day business operations of your company. How are you going to function every day? What does the legal structure of the business look like? If you have multiple individuals and stakeholders who are all involved in the company together, then it’s a good idea to put together a list of who is involved and in what capacity.

#5 - Product Descriptions

We have finally reached the point where you are allowed to freely talk about the product you are intending to sell. This is the time to describe what it does, how it will benefit people, how you market it, how much it costs, and who your target audience is.

Having a proper product description in place also gives you the chance to go back through your product, identify any areas that you’re not happy with, and make corrections.

#6 - Funding

Submitting a request for funding is a normal part of a business plan. In a lot of cases, people write the business plan to present to an investor to secure money for the next stage of the company.

When you submit a funding request, you need to make sure that you have more ready than just asking for money. After all, investors require more information than that to make a decision.

Your funding requests will need to specify how much you want to borrow, what you need it for, and how long it would take you to show a return on investment. So, let’s pretend for a moment that you wanted $60,000 to successfully launch your product. You would need to specify what you’re prepared to offer the investor in return for the money and then give a projected idea of how long it would take to generate a return on the investment.

#7 - Financial Analysis

Financial analysis is necessary even if you haven’t submitted a request for funding. It’s a core part of the business plan because it shows the financial projections and plans that your business has for the future.

If your business has been operating for a while, then you can use the finances that you already have as a way to demonstrate your success. However, if you’re a new business, then you are forced to work with projections, so you need to make sure that they are realistic. If you have only seen a 5% growth each quarter, it’s logical to assume that you will keep seeing a 5% growth. A sudden massive jump up doesn’t look impressive and also doesn’t look feasible.

#8 - Miscellaneous

The last section of your business plan is where you put the important details. So, if there’s something that didn’t fit into the plan before, but you want to mention it, you put it here.

Final Thoughts

Writing a good business plan can be tricky. Knowing how to write a business plan step-by-step is important for getting the best results, but if you want to understand how the process works, this is pretty much how it is.

Maple Content can write business plans for you, but it’s also important to understand the process. You have a responsibility to provide certain information with a business plan, and if you don’t do this, your plan isn’t going to help you. It’s vital to get the business plan right because it’s such an important part of everyday business. Not only can you use it to secure proper funding, but it’s also a good way to develop an internal document that everybody can make reference to when trying to make decisions in the future.