How to write a business plan

1. Executive Summary (100-150 words)

Purpose: A brief overview of your business, what it does, and its mission.

Key elements to include:

Business name and location.

The problem you're solving or the need you're addressing.

Your unique selling point (USP) and product or service offering.

Basic financials (e.g., expected profit, revenue).

Example:

"XYZ Tech is a software company dedicated to streamlining inventory management for small retail businesses. By offering an intuitive mobile app, we help businesses track inventory in real time, reducing waste and improving operational efficiency. We aim to capture 10% of the small business market in our first year, with projected revenues of $500,000."

2. Company Description (100-150 words)

Purpose: Describe your business in detail.

Key elements to include:

Industry background.

Business structure (sole proprietorship, LLC, etc.).

Vision and mission statements.

Target market.

Example:

"XYZ Tech operates in the growing SaaS industry. We are an LLC based in San Francisco, offering cloud-based software solutions. Our mission is to empower small businesses with affordable tools to manage their operations more efficiently. Our target market consists of small retail businesses with annual revenues between $100,000 and $1 million."

3. Market Research (100-150 words)

Purpose: Provide insight into the industry and your target market.

Key elements to include:

Market size and trends.

Competitive analysis.

Target customer demographics.

Customer needs and pain points.

Example:

"The small business SaaS market is expected to grow at a CAGR of 15% over the next five years. Our main competitors include ABC Solutions and RetailPro, but we stand out by offering a mobile-first platform with more intuitive features at a lower price point. Our customers are small retail business owners aged 30-50, primarily operating in urban areas."

4. Products or Services (100-150 words)

Purpose: Explain what your business offers.

Key elements to include:

Product or service description.

Benefits to the customer.

How your offering meets customer needs.

Example:

"XYZ Tech offers a cloud-based inventory management system accessible via a mobile app. Key features include real-time stock tracking, automatic order alerts, and integration with popular POS systems. These features help retail businesses reduce overstocking and improve sales forecasting."

5. Marketing and Sales Strategy (100-150 words)

Purpose: Describe how you’ll attract and retain customers.

Key elements to include:

Pricing strategy.

Sales channels (online, retail, direct sales).

Marketing tactics (social media, content marketing, etc.).

Example:

"We plan to offer a freemium pricing model with a 30-day free trial and subscription options starting at $29 per month. Our marketing strategy will focus on targeted Facebook and Google ads, along with SEO-optimized content for small business blogs. Additionally, we’ll offer referral discounts to encourage word-of-mouth marketing."

6. Financial Plan (100-150 words)

Purpose: Provide a snapshot of your financial projections.

Key elements to include:

Revenue and expense projections for the first 1-3 years.

Funding requirements (if any).

Break-even point.

Example:

"We project $500,000 in revenue within the first year, with a 20% growth in the following years. Operating costs, including salaries, marketing, and development, will total $250,000 in the first year. We aim to break even by month 8. We are seeking $200,000 in funding to support initial development and marketing costs."

7. Conclusion (50-100 words)

Purpose: End the plan with a strong statement on your business’s potential.

Key elements to include:

Reinforce your business’s potential for success.

Call to action (if applicable, such as seeking funding or partnerships).

Example:

"XYZ Tech is positioned to capitalize on the growing need for efficient inventory management among small businesses. With a strong product, a clear marketing strategy, and a scalable business model, we are confident in our ability to succeed. We look forward to potential investment opportunities to accelerate our growth."