A business plan is a set of answers to questions any lender, investor or partner will ask. This guide lists each section in the order it usually appears and explains what to put in it. Our startup business plan template follows the same structure.
Cover page and contact details
Business name, owner names and titles, address, phone, email and website. Add a confidentiality note if the plan contains sensitive information.
Executive summary
The basics of the business: what you will sell, the services you will provide, who will run the business and who your customers will be. Include the key numbers and how much money you are asking for. Write it last.
About the company
What field is the business in, and what will you and the people you work with do on a daily, weekly and monthly basis?
Business goals
How far do you want the business to go? Where should it be one year from now, and in five years?
Company values
What does the business stand for? Briefly name the values and principles the business will be based on.
Type of ownership
Will the business be a sole proprietorship, corporation, LLC or partnership? Explain why you chose that structure.
Products and services
What will the business sell, and what services will it provide? How will what you offer be better than the alternatives?
Benefits and advantages
Describe the good things your products or services will do for customers: time saved, money saved, problems solved.
Market research
However good your product is, the business will not succeed without customers who want it and a way to reach them.
Market focus and information
Include market profiles, local news, census data and any research that helps you understand your customers. See our market analysis template.
Economic facts
Information about your industry: size, growth, trends and what drives demand.
Potential competitors
List the businesses that compete with you now or could in the future, along with their strengths and weaknesses. A competitive analysis helps.
Marketing strategy
Strategic outlook
Your overall approach to marketing in your particular niche, and how you will position the business.
Promotion plan
How you will get the attention a new business needs: launch events, advertising, social media, partnerships and referrals.
Marketing budget
The total projected cost of promotion, broken down by channel. Our marketing plan template includes a budget table.
Location
Where the business will be located and why that place suits the way it needs to operate.
Distribution
How your products or services will reach customers: in store, online, delivery, wholesale or through partners.
Sales projection
Once you have described your products, customers, marketing and budget, you can estimate the sales you expect. Use the sales forecast template.
Operations plan
Day-to-day details of running the company: location, supplies, equipment, employees and processes.
Production
How your products will be made or your services delivered, and how you will control quality.
Facilities
The characteristics your space needs, such as size, zoning, parking, utilities or foot traffic.
Legal requirements
Licenses, permits, insurance, and any patents or trademarks that need to be filed or reviewed.
Employees
How many people you will hire, in what roles, and when.
Suppliers
Your main suppliers, their terms and your backups.
Credit policies
Whether you will sell on credit, your payment terms and how you will collect.
Management
The people who will run the business day to day, their experience, and any advisors or board members.
Financial plan
Personal financial statement
Lenders usually ask each owner for a statement of personal assets and debts. Use our personal financial statement template.
Startup costs
Costs you will have before the business opens, such as deposits, equipment and inventory. Try the startup costs calculator.
Profit and loss projection
Most owners consider this the core of the financial plan. It shows expected revenue, costs and profit. See the profit and loss template.
Balance sheet
A snapshot of assets, liabilities and equity that helps you track the health of the business. Use the balance sheet template.
Cash flow forecast
A projection of the cash you expect to come in and go out each month. See the cash flow forecast.
Break-even analysis
How much you need to sell to recover your costs. Use the break-even analysis template.
Raising money
Bank loans
How much you want to borrow, what the money will be spent on and how you will repay it.
Investors
Investors look at things differently from banks. They expect growth and want a share of the profits, so explain the opportunity and how they will earn a return.
Appendix
Resumes, permits, leases, quotes, market research, product photos and detailed financial statements. If your business is technology-based, include product details, technical diagrams or development plans here.
Frequently asked questions
What are the main sections of a business plan?
Most plans include an executive summary, company description, products and services, market analysis, competition, marketing and sales, operations, management, financial plan, funding request and appendix.
Do I need every section?
Not always. A plan for your own use can be shorter. Lenders and investors will expect the full set, especially the financial sections.
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