How to write a business plan

This is a simple but effective guide on how to write a business plan. The following outline of a typical business plan will give you an insight into what is generally required. You can vary it to suit your specific business profile. Breaking down the plan into several components helps make drafting it a more manageable task.

A business plan can be broken down into four parts:

  • Introduction
  • Marketing
  • Financial Management
  • Operations

Outlined below are the four basic segments that go to form a typical business plan:


  • Give a detailed description of the business and its goals.
  • Discuss the ownership of the business and the legal structure.
  • List the skills and experience you bring to the business.
  • Discuss the advantages you and your business have over your competitors.


  • Discuss the products or services offered.
  • Identify the customer demand for your product or service.
  • Identify your market, its size and locations.
  • Explain how your product or service will be advertised and marketed.
  • Explain the pricing strategy.

Financial Management:

  • Explain your source and the amount of initial equity capital.
  • Develop a monthly operating budget for the first year.
  • Develop an expected return on investment and monthly cash flow for the first year.
  • Provide projected income statements & balance sheets for a two year period.
  • Discuss your breakĀ­even point.
  • Explain your personal balance sheet and method of compensation.
  • Discuss who will maintain your accounting records and how they will be kept.
  • Provide “what if” statements that address alternative approaches to any problem that may develop.
Businessman going through financial papers


  • Explain how the business will be managed on a day-to-day basis.
  • Discuss hiring and personnel procedures.
  • Discuss insurance, lease or rent agreements, and issues pertinent to your business.
  • Account for the equipment necessary to produce your products or services.
  • Account for production and delivery of products and services.

About the author
KJohn Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the website.