5 Tips for Writing a Business Plan

asbtdc.org/5-tips-for-writing-a-business-plan

ASBTDC Staff

Writing a business plan is one of the first and most important steps to the beginning of a new
business. It sets the stage for your business idea, organizing and clarifying your thinking
process for what you want the end result to be.

That said, knowing exactly where to begin can be tricky. For example, how do you know what
to include (or not include)? How long should it be? Who will be reading it? Where can you
look for a good sample business plan?

These are some of the tough questions we hope to crack for you with our top five tips for
writing a business plan.

Where Should You Start?

You may be tempted to look for a sample business plan first—and that’s okay. It is good to
look for examples of successful plans, as well as business planning tools, rather than entering
this important process blindly.

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However, it is often better to focus on learning how to write a business plan yourself, as this
will help you in plotting out your business idea instead of simply copying someone else’s.
Let’s explore some helpful ideas for how to do this.

1. Take Your Time and Do Your Research

You want your business plan to be a comprehensive document that includes everything
lenders and potential investors will be looking for. After all, a business plan is often one of
the most vital first steps toward getting your business funded. However, it is best not to rush
through your plan in anticipation of said funding.

There are several parts to a business plan, but in short, it should act as a showcase that
summarizes, then thoroughly describes, your chosen products/services, the current market
for your business, current industry benchmarks, your operations and management plans,
and your budget.

Note that with this much information being shared, you cannot expect to finish in 2-3 days,
and you shouldn’t focus on a minimum or maximum number of pages, either. Focus instead
on including all of the essential parts.

Do thorough research and reflection to answer the key questions—the who, what, when,
where, why, how, and how much of your business—but let your business plan be an organic,
unique document, without the pressure of tight deadlines or page number targets. One way
to get started is with a one-page Business Model Canvas.

Note: You can also review our Sample here!

2. Cater to Your Audience (and Don’t Be Afraid Of Them)

It is essential to identify and write toward the correct audience as you craft your business
plan. It may seem unimportant, as this audience may feel invisible or faceless in some ways.
However, writing specifically with them in mind will help you focus on what they need from
your plan, instead of only on what you need.

In most cases, your primary audience will be the potential investors you hope to persuade to
fund your business. Make sure that, depending on your business focus, you write with
language they both understand and support, as they may be paramount to your business
starting.

This may seem intimidating, but it does not have to be. As you write your plan, be reasonable
and honest, but bold. Tell the truth—especially when it comes to your finances. Yet, be
confident in your business idea and plan so that lenders or other potential investors will be
confident in them, too.

3. Include Market Research

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Market research is an incredibly important part of your business plan. The market research
you conduct can tell you the current climate for the industry you hope to join, as well as the
demand for your particular idea in a given geographical area. Things like competitor listings,
demographic and psychographic data (i.e., who is partaking in the industry the most and
why), and consumer behaviors are all things that can be determined by market research, and
which are essential to determining the feasibility of your business idea.

Alongside market research is a helpful tool called “SWOT Analysis.” SWOT stands for
strengths, weaknesses, opportunities, and threats and is a method of evaluation to determine
where you currently stand with your business idea.

Tying SWOT Analysis to your market research findings can be immensely helpful in showing
you how feasible your business really is.

4. Include Your Financial Plan and Projections

The financial section of your plan should include a breakdown of your project cost as well as
a monthly budget or income statement projection (use our worksheet). As mentioned above
(in Tip #2), you must be honest about your finances in order to gain good rapport with
investors and to pique their interest in offering you funds.

The financial plan and projections segment of your business plan deserves a full article in
itself, but, in short, ensure that your projections are realistic and based on the truth of your
current financial standing.

5. Submit Your Plan to Your Local ASBTDC for Review

One of the final and most helpful tips for writing a business plan is to submit your draft to
your local Arkansas Small Business and Technology Development Center (ASBTDC) for
review. Our expert consultants can work with you one-on-one and look over your draft to tell
you what is missing, what needs to be reworked or removed, and overall, how complete your
current business plan is.

The ASBTDC also offers more general help with business plans on our website. There you can
find our “To the Point” business plan outline, which guides you through a checklist of the
essential parts that should be included in your plan. Additionally, we have a highly requested
“To the Point” sample business plan, which shows how the outline can be put into practice
for an example business.

Let the ASBTDC Help You

The ASBTDC is Arkansas’s go-to for everything small business, and we offer much more than
business plan help alone. We offer training opportunities, confidential one-on-one business
consulting, and market research services—all at no cost.

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Let your local ASBTDC help you get your business up and running. Learn more about us and
our services, as well as any other general business questions you may have here. If you are
ready to partake in our no-cost business consulting services, call us toll-free at 800-862-
2040, or contact us online today!

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