The Perfect Business Plan

The Perfect
Business
Plan
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SUPER GUIDE:
The Perfect
Business Plan
BY DANIEL PEREIRA

© THE BUSINESS MODEL ANALYST
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analyzing business model types, patterns, and innovations
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Daniel Pereira
The Business Model
Analyst Ottawa, ON,
Canada
businessmodelanalyst.com

Copyright © 2022 Daniel Pereira
All rights reserved.
ISBN: 978-1-998892-43-3

TABLE OF CONTENTS
Introduction 10
What Is A Business Plan? 11
Who Needs A Business Plan? 13
Why It Is Important? 14
Strategic Planning 14
Evaluating Ideas 14
Research 15
Recruiting 15
Competitions 16
Types Of Business Plans 17

Traditional Business Plan 17
Lean Business Plan 18
Benefits Of Using A Lean Business Plan 18
Nonprofit Business Plan 20
Why Do We Need A Nonprofit Business Plan? 21
Benefits Of A Perfect Business Plan 22

See The Whole Business 22
Strategic Focus 22
Set Priorities 23
Manage Change 23
Develop Accountability 24
Manage Cash 24
Strategic Alignment 25
Milestones 25

Metrics 26
Realistic Regular Reminders To Keep On Track 26
What Should You Do Before You Write Your Business

Plan? 28
How To Create A Perfect Business Plan: A Step-By-Step

Guide 30
Create Title Page And Contents 31
Draft An Executive Summary 31
What Your Business Plan’s Executive Summary Should
Include 32
Business Concept 33
Business Goals And Vision 33
Product Description And Differentiation 33
Target Market 33
Marketing Strategy 33
Current Financial State 33
Projected Financial State 34
The Ask 34
The Team 34
Describe Your Company 34
Perform A Market Analysis 36
How Big Is Your Potential Market? 37
Understand Your Ideal Customer Profile 37
Research Relevant Industry Trends And
Trajectory 37
Make Informed Guesses 38
Swot Analysis 38
Competitive Analysis 39
Cost Leadership 40
Differentiation 41

Segmentation 41
Outline The Management And Organization 42
List Your Products And Services 43
Perform Customer Segmentation 44
Define A Marketing Plan 45
Provide A Logistics And Operations Plan 46
Suppliers 47
Production 47
Facilities 48
Equipment 48
Shipping And Fulfillment 48
Inventory 49
Make A Financial Plan 49
Cash 51
Cash Sales 51
Receivables 51
Other Income 51
Total Income 52
Material/Merchandise 52
Direct Labor 52
Overhead 52
Marketing/Sales 52
Research And Development 53
General And Administrative Expenses 53
Taxes 53
Capital 53
Loan Payments 53
Total Expenses 54
Cash Flow 54
Cumulative Cash Flow 54

Supporting Documents 54
Common Mistakes When Writing A Business Plan 55

Making A Long-Winded Business Plan 55
Underestimating User Acquisition 56
Striving To Create A 'perfect Plan’ 56
Failing To Research The Target Market 57
Forgetting Cash Flow 57
Thinking A Business Can’t Be Started Without A Formal
Plan 58
Misunderstanding The Plan's Purpose 58
Underestimating The Competition 59
Leaving Little Room To Pivot 60
What To Do After Writing A Business Plan? 61

Get Help 61
Make Sure It Connects To Your Purpose 62
Begin To Test And Measure 62
Use The 80/20 Rule 63
Learn Something New 64
Tips For Writing A Business Plan 66

Don’t Be Long-Winded 66
Show Why You Care 66
Provide Supporting Documents 67
Reference Data 67
Research, Research, Research 67
Clearly Demonstrate Your Points Of Difference 68
Be Objective In Your Research 69
Know The Purpose Of Your Plan 69
Identify Your Audience 69
Avoid Jargon 70

Don’t Be Afraid To Change It 70
Use It 71
Conclusion 72
References 73
About The Author 76

INTRODUCTION
No business can be successful without starting small.
Companies of all sizes have one common thread: they all
begin with a simple idea, a small business. To get your own
business off the ground, it's important to understand the
details involved in making your first hire, dealing with
administrative tasks, and setting yourself up for success. A
great way to make progress on these goals is by writing a
business plan. This document can help to crystallize your
business strategy, allowing you to explore potential paths and
plan for the future. It's also useful for established companies,
which can benefit from revising their existing plan.
Writing a business plan can be an intimidating task, full of

complex details and paperwork. However, there are easy
steps to get started, so don't let the challenge stand in the
way of your business success. By breaking down the process
into manageable steps, you can ensure that your plan
accurately reflects your company's vision and goals. This
super guide comprehensively explains the process of
creating an ideal business plan that can help you achieve
your business goals.

WHAT IS A BUSINESS
PLAN?
A business plan serves as a guidebook, outlining the goals

and objectives of a company, and providing a roadmap for
how to reach them. This document is essential for both new
and established businesses, as it serves to identify the
operational, financial, and marketing elements to be
addressed. It provides a framework to be referenced so that
the company can assess its progress toward the desired
goals.
A well-crafted business plan is like a roadmap for success. It

encapsulates the trajectory of a company, from its products or
services to its revenue-generating capabilities, its
management structure and financing, to its operational
model. Every element is designed to help the company move
towards its desired outcomes while avoiding the pitfalls of
unforeseen roadblocks.
Essentially, it's a tool that serves to direct the company's

energies in the right direction and set the course for
long-term success. With the right strategies in place, a
business plan can be the key that unlocks a company's
success, allowing it to reach its objectives over the next three
or more years.

WHO NEEDS A BUSINESS
PLAN?
A business plan is essential to any business, no matter how

small or large. It serves as a crucial source of guidance,
stability, and direction during the uncertain and unpredictable
early stages of a company's life. It can also be a powerful tool
in helping to make decisions, providing focus and clarity to
the company's goals, and allowing for an intentional approach
to growth amidst the distractions, rapid developments, and
other challenges of entrepreneurship.
For bigger companies, a business plan should be an evolving

document that documents the company's direction and helps
guide decisions. It should be used to inspire and motivate
everyone in the organization to strive for success.
Additionally, it should be a resource for investors and others
who are interested in understanding the business's objectives
and strategies.

WHY IT IS IMPORTANT?
In the context of entrepreneurship or setting up a company, a

business plan is an essential tool for securing financing from
potential investors. However, even without the need for a
loan, multiple benefits come with creating a well-crafted
business plan. From fleshing out ideas to providing a
roadmap for implementation, a business plan can prove to be
an invaluable resource for any business.
Strategic planning
Writing out your plan is a crucial endeavor to crystallize your
ideas and gain a better overview of your business. It is
essential for comprehending the breadth of your project and
pinpointing the financial demands, as well as the amount of
energy, funds, and resources indispensable for launching
your venture. Having a concrete plan will facilitate the
process of commencing your venture and provide you with a
roadmap to success.
Evaluating ideas
A rough business plan acts like a map; it tells you where you
must go and how to get there. When you have multiple ideas
in mind, it can be difficult to decide which one to focus on.
But with a rough business plan, you can understand which
ones have the highest chance of success and dedicate your
time and energy accordingly. It's like having a guide to point
you in the right direction — the rough business plan allows
you to plan ahead and pick the best option for your venture.

With the right business plan, you can confidently move
forward and make the most of your time and energy.
Research
Researching your ideal customer and your competitors'
information is key when it comes to writing a business plan. It
enables you to make more strategic decisions and make
informed decisions when it comes to your business plan.
Knowing your customers' needs, desires, and industry trends
can help you create a plan that sets you apart from the
competition. Also, researching your competitors will give you
insight into their marketing strategies, product offerings, and
pricing.
All of this will help you determine what sets you apart and
how you can make your product stand out. By having this
research to guide you, you can create an effective business
plan that will keep you one step ahead of your competition.
Recruiting
A business plan is a roadmap to success, an invaluable tool
that helps to guide a company in reaching its goals. It offers
potential new hires an overview of the company and a
glimpse into the future. With a well-crafted plan, new hires
can gain faith in the venture, knowing that the path forward is
clearly outlined and achievable.
A business plan also helps to communicate the vision of the

company, giving potential new hires insight into the culture of
the organization. It sparks a sense of hope and optimism in
the venture, inspiring confidence in the team's ability to
overcome any obstacles that may arise. With a plan in place,
new hires can join with a sense of assurance, knowing that
the company has a robust strategy and a clear idea of what it
takes to succeed.
Competitions
Business plan competitions offer an exciting opportunity for
entrepreneurs to get the resources they need to get their
businesses off the ground. With prizes ranging from
mentorship to grants and investment capital, these
competitions can be a great way to jump-start your business's
financial footing. To find the right competition for you, try
searching for phrases such as "business plan competition +
[your location]" or "business plan competition + [your
industry]." With the right research and preparation, a business
plan competition could be the key to unlocking your
business's potential.
A business plan is a perfect playbook for success. It provides

a clear, structured format for presenting and communicating
goals, objectives, and ideas. It allows you to present your
ideas in a way that is easier to understand and comprehend.
It also gives readers an insight into the potential impact of
your ideas.
Plus, when you share your business plan with those who can
help you succeed, they can gain an appreciation of the hard
work and thought that went into creating it. With a business
plan, you can be sure you’re setting yourself up for success
and giving yourself the best chance of achieving your goals.

TYPES OF BUSINESS
PLANS
Creating a successful business plan is like creating a

masterpiece painting — it takes time, effort, and creativity. A
business plan can span from a single page to multiple pages
with detailed graphs, reports, and descriptions. It all depends
on the complexity of the business and what information
needs to be presented. There is no single way to create a
business plan, but there are a few common types.
Each type of business plan offers unique insights and

strategies to help ensure success. The common goal of each
plan is to convey the most important information about the
company and its goals to readers, so they can make an
informed decision and provide the necessary resources.
Whether big or small, a well-crafted business plan is the key
to success. Some common types of business plans include
the following:
Traditional Business Plan

These traditional business plans are the cornerstone of
success, the blueprint for achieving financial freedom and
growth. They are the detailed road maps that enable
entrepreneurs and founders to secure venture capital
investments or loans from lenders.
Traditional business plans take time and effort to put together,

requiring the input of market research, financial projections,

and data-driven strategies. These lengthy documents provide
the background details needed to demonstrate the
company's potential and gain the confidence of investors,
outlining the scope and goals of the business and the steps
needed to achieve them.
Lean Business Plan

A lean business plan is like a snapshot of a traditional
business plan, but on a smaller scale. It goes beyond the
surface level and packs essential details into a condensed
version. Companies depend on it to bring on new employees
and adjust plans to better fit a desired target audience. This
plan is the equivalent of a summary, covering the most
integral aspects of the business model concisely. It provides
guidance for the future and demands attention to the most
essential elements without getting bogged down in the
details.
Benefits of using a lean business plan
● Lean business models allow businesses to identify and

capitalize on their core competencies while eliminating
superfluous processes. This allows for increased
efficiency, reduced costs, and better resource
allocation. In addition, developing a core competency
can create a competitive advantage for the business,
providing a unique market offering and greater
customer satisfaction.
● It allows for the development of an easy-to-read,

comprehensive plan that anyone can understand
regardless of business background. It is designed to
eliminate any unnecessary elements that don't align
with the core goals while also maximizing efficiency
and profitability. The streamlined nature of this
blueprint allows companies to focus on the
fundamentals, streamline processes, and reduce costs.
It allows for quick adaptation of strategies in the
ever-evolving business landscape.
● A lean business model provides a comprehensive

visualization of your business operations. By mapping
out the various components of your business, such as
stakeholders, processes, and objectives, you can
quickly identify which elements of your business are
working, and which need improvement. This visual
representation offers a valuable tool for identifying
areas where resources can be more effectively
allocated, enabling a streamlined and efficient
business operation. By understanding the
interconnections between departments, expenses,
and goals, a lean business model allows you to
maximize efficiency and ensure that all elements of
your business are working in unison, ultimately leading
to greater success.
● A lean business model gives you the flexibility to easily

update your plan due to its simplistic approach. By
focusing on the essentials, the model allows you to
quickly add, change, or remove strategies without
adding complexity. You can rapidly adjust the plan to
meet changing customer demands, adjust to new
technology, or react to a competitive market. A lean
business model gives you the agility to update your
plan quickly so that you can stay ahead in the game.
● A lean business model is an efficient way to craft and

hone a business plan. It requires much less time to
create than traditional business plans because it
focuses on the fundamentals of the business and
eliminates unnecessary details. By cutting out the
extra details, a business can develop a solid plan that
is more likely to generate positive results quickly.

Additionally, the model emphasizes testing and
experimentation, which allows for faster iteration and
improvement. This saves a lot of time, as businesses
can quickly see what works and make necessary
changes without having to start over from scratch. With
the lean model, businesses can develop a robust
business plan with fewer resources and minimal time.
Nonprofit Business Plan

A nonprofit business plan is a vital document that outlines the
present and future of your nonprofit organization. It serves as
a roadmap for the next three to five years, providing an
overview of your goals and plans to achieve them. Along the
journey, this living document needs to be adjusted and
updated to keep up with the changing circumstances and
desired destinations. A thorough business plan is a key tool
for nonprofit organizations that want to be successful and
remain in operation for a long time. It helps organizations
prioritize, strategize, and focus on effective, achievable
objectives.
It is a blueprint for any entity dedicated to public and social

benefit, far more comprehensive than a traditional business
plan. It goes beyond just focusing on financials and
operations to include a section on the impact the company
hopes to make. Take, for example, a speaker and headphone
brand that seeks to improve the lives of those with hearing
disabilities. Not only does this plan outline the financials and
operations of the venture, but it also describes the positive
effects it aims to have. This is why donors often request such
a plan before deciding to contribute. Through this plan,
nonprofits can demonstrate the real-world value they can
offer and the difference they can make.

Why do we need a nonprofit business plan?
Your vision, goals, and strategies, as well as the activities
required to achieve them, can be outlined in a nonprofit
business plan. You may also make the most of your
resources, find any possible issues, and spot any existing
gaps by doing this. It is a way for you to describe your
objectives to prospective partners and supporters, as well as
how you intend to go about attaining them.
Having a nonprofit business plan also allows you to make

informed decisions and track your progress. It can be used to
determine what needs to be done and when, and it can be
used to track and measure success. Additionally, it can help
you identify potential areas of growth and uncover new
opportunities and partnerships.
Writing a nonprofit business plan will also help you to create

an organized and efficient organization. It will help you set up
your nonprofit effectively and efficiently. It will assist you in
determining the duties and obligations of each employee, as
well as the projects and objectives that will fall under their
purview. A nonprofit business plan can help you recruit
donors and volunteers because it shows how serious and
dedicated you are to the success of your organization.

BENEFITS OF A PERFECT
BUSINESS PLAN
Here are the top ten benefits of writing a business plan.
See the whole business

When you create a perfect business plan, you are creating a
well-rounded and comprehensive understanding of your
business. Every aspect of your business is connected to the
big picture, allowing you to see where your strategy and
tactics fit in and how they can work together. You can begin
to identify if your sales are lining up with your sales and
marketing expenses, if your products match your target
market, and if your costs are accounted for, including
long-term fixed costs, product development, and working
capital needs.
Through a perfect business plan, you can develop an

understanding of the whole, which is essential to success.
This allows you to make the right business decisions within
your constraints to fit the larger picture.
Strategic Focus
A perfect business plan allows startups and small businesses
to hone in on their unique identities, target markets, and
products/services. This helps them to focus on their
strengths, as well as on the needs and wants of their target
audience. A well-crafted business plan allows these
businesses to customize and tailor their offerings to the exact
needs of their customers. This can help them stand out
among competitors and offer value that the competition can't
match.
The business plan also aids in the development of marketing

and promotional strategies to reach and engage potential
buyers. Having a clear vision and understanding of their
market, target audience, and offerings allows these
businesses to remain agile, cost-efficient, and stay ahead of
the competition. A perfect business plan provides the
structure and strategy needed to help startups and small
businesses thrive.
Set priorities
A perfect business plan is the key to success in any venture.
It helps you prioritize by helping you identify what matters
most. It also ensures that you don't waste your time on any
unnecessary tasks or projects. The plan will also help you
plan for contingencies, and make sure that you are prepared
for anything that may come up. By taking the time to plan for
success, you can make sure that you are steering your
business in the right direction.
You can't do everything, but with a perfect business plan, you

can make sure that you are doing the right things. A perfect
plan will help you focus on the most important tasks, prioritize
them, and properly allocate your time, effort, and resources.
With the right focus, you can make sure that you are taking
the necessary steps to make your business a success.
Manage change
Good business planning is like having a GPS in your car: it
allows you to find your way to your destination while keeping
you informed of any new developments or changes along the
way. By regularly reviewing assumptions and tracking
progress, you can make necessary adjustments to keep you
on the right track. Your plan is the road map, and your plan vs.
actual analysis is the dashboard that helps you see how
you're doing.
With a good planning process, you can make changes to your

plan as needed to ensure that you reach your goal. By taking
the time to review your expectations and assumptions, track
progress, and adjust your plan, you can make sure that you
arrive at your destination with confidence.
Develop accountability
A perfect business plan is an essential tool for ensuring
expectations are met, and results are tracked. By conducting
regular plan reviews and holding employees accountable for
their tasks and accomplishments, it serves as a guidepost to
identify discrepancies and areas for improvement.
For each plan that is developed, there should be a

comparison between the plan and the actual results. This
provides an opportunity to celebrate successes and
troubleshoot any areas of concern. With this review system,
any changes that need to be made can be quickly identified
and addressed. A perfect business plan not only sets
expectations and tracks results, but also helps foster
continuous improvement.
Manage cash
A perfect business plan is like a financial roadmap, providing
the framework for successful cash flow management. It helps
you plan for the future by accurately forecasting sales,
expenses, and investments. It also enables business owners
to anticipate cash flow hiccups and take preventative
measures before a crisis arises.
With a detailed plan in place, you can assess which clients

are slow-paying and adjust your inventory management
accordingly. Moreover, a plan gives you the power to invest in
assets and make timely repayments on debts, while also
freeing up cash to use in other areas of the business. Good
business planning equips you with the insight and foresight
necessary to navigate the complexities of cash flow and keep
your business profitable.
Strategic alignment
A perfect business plan helps establish this strategic
alignment. It lays the foundation for success by creating clear
goals and objectives and identifying the right strategies and
tactics to achieve them. It aids in making sure that all parties
engaged in the company are on the same page and working
toward the same goals. This is what is called "strategic
alignment."
For example, if a gourmet restaurant offers drive-thru service,

there could be a mismatch between the intended strategy
and the tactics used to execute it. A perfect business plan
reveals these hidden mismatches and helps to establish a
connection between the day-to-day operations and the
overarching business strategy.
Milestones
Milestones act as a sort of compass, helping you stay on track
and giving you the motivation to keep going. Milestones in a
business plan are like a lighthouse for a ship. They help you
navigate difficult waters and give you a visible sign of where
you want to be going. Milestones provide a clear path to
success and act as a powerful motivator to keep you and
your team focused on the goal.
Good business planning sets milestones that help you

monitor the progress of your business and move forward in
the right direction. They remind you of your ultimate goals
and provide challenges along the way so that you can
improve and stay on track. With milestones, there are clear
measures of success and progress, which helps you stay
accountable and motivated to keep achieving.
Metrics
A perfect business plan can provide direct insight into the
performance of your business and help create realistic goals
for your company. Putting performance indicators and
numbers into the plan, and tracking them monthly, allows for
more accurate tracking and measurement of data. This data
can include sales and expenses, calls, web traffic, conversion
rates, returns, etc. By tracking these key metrics, you can
more effectively monitor business progress and make better
decisions to ensure success. These metrics help to identify
trends, highlight areas for improvement, and provide a more
comprehensive understanding of the overall performance of
your business.
Realistic regular reminders to

keep on track
A good business plan becomes a roadmap that you can refer
to periodically, to help you stay on track and meet your goals.
Creating a plan forces you to look closely at where you are
and where you want to be. It's a way to prioritize and keep
focused on the bigger picture. It also promotes consistency,

since it keeps you focused on the same long-term goals as
opposed to being distracted by more short-term concerns
that may arise. With regular reminders, you can continue to
evaluate performance, track progress, and adapt accordingly.
This ensures that you are reaching your goals practically and
realistically by providing a detailed plan that you can refer to
as needed.

WHAT SHOULD YOU DO
BEFORE YOU WRITE YOUR
BUSINESS PLAN?
Before you start writing your business plan, it's important to

critically assess your goals, resources, and objectives. Taking
the time to answer the questions below can help you focus
your attention on the necessary components of your business
plan and create a successful, attractive document for
potential investors and employees.
What is my goal? What do I want my business to accomplish?

Spend some time considering your ultimate goal. Keep in
mind that it should be achievable and measurable. This will
give you a target to aim for when creating your plan.
What resources do I have to achieve this goal? Take stock of

the resources you have available, such as start-up capital,
equipment, skills, and experience. Do you have a support
network of friends and family that can help you? What other
potential investments or collaborations could help you reach
your goal? How can you turn these resources into a
successful business? Have you identified a potential target
market? What competitive advantages do you have? What
strategies will you use to get your business off the ground
and ensure long-term success?
In terms of finances, what factors should you consider? What

amount of capital do you need to start the business? In what

respects are you prepared to cede management to investors?
When can you and other investors anticipate seeing a profit
on your initial investment? What are the projected profits over
time? Who is the intended audience for your business plan? Is
it a document to solicit investment or recruit workers? Will it
be seen by suppliers?
Can you devote the necessary time and resources to

completing your project? Be honest with yourself. Consider
the possibility that the assumptions you have made may not
turn into a successful business.
By taking the time to answer these questions, you'll have a

better idea of what you hope to accomplish with your
business and what should go into your business plan. It's
important to be realistic with yourself and your plans; this will
help you create a plan that is achievable and successful.
Also, consider consulting with a professional who can provide

additional insight into the financial and legal aspects of your
business plan. They can help ensure that your plan meets the
requirements, is attractive to potential investors, and
accurately reflects the goals and objectives of your business.

HOW TO CREATE A
PERFECT BUSINESS PLAN:
A STEP-BY-STEP GUIDE
A blank page can be daunting, like an empty canvas with no

color or texture. Taking a step back and creating an outline
for your business plan is the best way to start. It's like
preparing the canvas, mapping out the basic structure before
you start to fill it in. An outline allows you to identify the key
elements and sections of the plan and can act as the skeleton
for your finished document.
Many websites offer a free business plan template, which is a

great way to get your ideas organized and avoid the terror of
a blank page. Once you've got your outline in place, it's time
to flesh it out with all the details. Break it down into smaller,
more manageable sections, and work your way through it
until you have a complete plan. With enough structure and
guidance, even a blank page can become the foundation for
a successful business.
Below, there is a step-by-step guide for creating a perfect

business plan.

Create Title Page and Contents
A business plan is a gateway to the success of a venture, and
the key to making it stand out is a well-crafted presentation
binder. It should be professional and organized, with a clear
cover to draw attention. The cover should include the
business name, the names of the principals, and contact
information such as an address, phone, email, web address,
and date. To make the plan shine, the font should be easy to
read, and a logo and table of contents should follow the
executive summary. When potential investors and partners
see the plan, it will leave a lasting impression and brighten
the prospects for the business's future. With a well-crafted
plan, the company can be sure to stand out from the
competition.
Draft an executive summary

The executive summary is like a summary of your business
plan, condensing the key points into a short, powerful
summary. It should include the idea behind the business, the

cost, and financing requested, the expected return on
investment and time frame, the risk level, market position, the
management team, product, and competitive strategies, a
marketing plan, and an exit strategy. It should be kept to
one-half to a full page in length to ensure the reader stays
engaged. By including the points outlined above in a few
paragraphs, the executive summary can be crafted for
maximum impact.
What your business plan’s executive summary should

include
An executive summary should be a concise, yet
comprehensive overview of the most important points of your
business plan. It should be detailed enough for a quick
glimpse into what your business is about and succinct
enough that it doesn't overwhelm the reader. It should be no
more than one or two pages long and include an introduction
to your business, a description of the products or services
you offer, information about your target market, information
about your financials, and a summary of your marketing
strategies.
The purpose of an executive summary is to provide a quick,

condensed version of your business plan while still hitting all
the main points and leaving the reader with a clear
understanding of what your business is about.
Business concept
A concise overview of your business idea, outlining what it
does, how it works, and why it's unique.
Business goals and vision

The executive summary of your business plan should outline
your business's goals and vision — a journey of purpose and
direction that will guide your venture toward long-term
success. It should detail the ambition, intent, and purpose of
your venture to realize your desired future.
Product Description and differentiation

Your business plan's executive summary should include a
concise yet compelling overview of your product's features,
describing how they are distinct from competitors' offerings
and how they meet customer needs.
Target market
It should include an overview of your target market: who
you're aiming to sell to, their needs and preferences, and
where to find them. Provide insight into how your business
can satisfy its needs.
Marketing strategy
The executive summary should outline the business'
marketing strategy — how it will capture leads, reach its
target audience, optimize conversions, and ultimately build
brand loyalty to grow the business.
Current financial state

It should provide an overview of the current financial state of
the business, including income and expenses, cash flow,
assets and liabilities, and any other pertinent financial

information.
Projected financial state

Include a snapshot of what you anticipate your business will
look like financially in the future. Outline potential cash flow,
revenue, expenses, and profits over the short and long terms.
Give a realistic outlook on where your business should be in
the next few years.
The ask
An executive summary should include the "ask": what your
business needs, the expected outcomes, and potential risks,
as well as the resources and timeline needed to achieve the
desired result.
The team
The executive summary should provide a snapshot of the
team's qualifications and experience, covering who is driving
the business forward. It should detail the key players, their
roles and responsibilities, and why they are the perfect
choice for the job. Above all, it should demonstrate the team's
passion and commitment to making the business a success.
Describe your company

The business description is an important part of your
business plan; it provides a holistic overview of the industry,
market, and business. Starting with the industry, provide a
short overview of the industry, including its current outlook
and future potential. Be sure to use data and trusted sources
to back up your analysis. Additionally, explain any trends that
may affect the industry, such as new competitors,
technological advancements, and changes in consumer
preferences. This can help investors better understand the
industry and how it may affect your business.

Starting with the structure of a business is key to a good
description. What kind of company are you running — retail,
service, or wholesale? How long has it been around? Who
exactly are the business's owners, and who are its clients?
Explain your distribution channels and how you plan to
support sales. Following this, cover your products and
services, explaining how they differ from the competition and
how they provide a competitive advantage. You can cite any
trade secrets, patents, or other resources that give your
business an edge.
Fundraising is all about enticing investors with the promise of

increased profits. To do this, it’s important to demonstrate the
efficiency and effectiveness of your business, as well as the
impact of any new investments. Show potential investors how
the business is structured, who’s involved, and what makes it
unique. Point out the advantages of your location, service, or
product. Explain how your business will benefit from the new
investments, whether it be by increasing efficiency or
workflow.
Prove that you’ve done your research and have the support
of industry professionals. Show your investors the potential
for success with the help of experts and your business plan.
With these strategies, investors can be confident that their
investments will be profitable.
Perform a Market Analysis

Starting a business is like rolling the dice. You can have a
great product and the best business plan, but your success
ultimately hinges on the market you choose. If you make the
right choice, you can expect to hit the jackpot. But if you don't
select the right market, your business may fail before it even
starts. That's why it's essential to do a thorough market
analysis when creating your business plan.
You must review the size of the potential market, determine

how well your business will fit into it, and consider the
competition. Your research should be supported by facts and
figures that will both guarantee success and convince
investors. Without proper market analysis, you'll be flying
blind, taking risks that could sink your business before it even
gets off the ground.

How big is your potential market?
What is the reach of your product? How many people could
benefit from it? Estimating your potential market size can be a
complex task, but it can be done with the right data. Gather
as much independent information as possible to determine
your estimated potential market. Here are some suggestions
for getting started:
Understand your ideal customer profile

If you're aiming to engage the young adult population of the
U.S., the initial step is to research the size of the
demographic. Utilizing government data can provide an
overview of the current number of individuals within the
desired age range. Furthermore, it is important to examine
the anticipated shifts in the size of the target age group in the
future. This will assist you in forming a more comprehensive
picture of who your perfect consumer is.
Research relevant industry trends and trajectory

If you're marketing to retirees, it's important to take the time
to understand the population you're targeting. Analyze the
number of individuals who will be leaving their jobs in the
next five years and evaluate their buying habits. Knowing
what they want and need will be key to delivering the right
message.
For example, if you're selling fitness gear, you'll need to look

into the gym memberships, wellness levels, and overall health
of the retirees you're targeting. You'll also want to consider
the expected changes in the industry in the near future.
Retirees are a unique demographic, and their needs and

wants are different from other age groups. Taking the time to
analyze the data and understand their buying habits will be
essential to success. With the right strategy, you can make
sure your message resonates, and your product is the perfect
fit.

Make informed guesses
Making informed guesses is like playing a game of chess. You
can never have all the pieces in the game, but you can use
what you have to make the best move you can. You have to
think ahead and consider all the factors that could affect the
outcome. You need to look at the data points that are
available to you and use them to make an educated guess.
You can use market research, surveys, and other sources to
get an idea of the size of your total addressable market.
As you collect more information, you can refine your guess

and get a more accurate estimate. In the end, it's important to
remember that you can never have perfect, complete
information, so you need to rely on your best judgment and
make an informed guess.
SWOT analysis
A SWOT analysis is an important tool for any business looking
to gain a better understanding of its current situation and
potential future. It stands for strengths, weaknesses,
opportunities, and threats.
Strengths and weaknesses are the internal factors of a

company that should be identified first. Strengths are the best
things about a company, such as a strong customer base,
innovative products, experienced staff, or any other positive
factors that give the business an edge. Weaknesses should
also be taken into account, such as outdated technology,
inefficient processes, or a lack of market knowledge.
Opportunities and threats are usually external factors that can

be taken advantage of or need to be guarded against.
Opportunities include any market or industry shifts that could
be taken advantage of to create new products or services.
Threats could be anything from a new competitor entering
the market, changes in customer preferences, or any other
external factor that could affect the success of the business.

A SWOT analysis is important for businesses, as it gives a
comprehensive overview of their current situation and
potential future. By understanding the strengths, weaknesses,
opportunities, and threats of a business, companies can make
informed decisions that will help them succeed. With this
knowledge, businesses can identify areas of improvement,
capitalize on new opportunities, and protect themselves from
potential threats.
Competitive analysis
Your business plan is only as strong as the competitive
analysis it contains. An open and frank assessment of your
rivals' strong and weak points, as well as an outline of how
you plan to use them to your advantage, should be included
here. A comprehensive competitive analysis should include
both direct and indirect competitors, with a short and
long-term outlook.
Take into account market weaknesses, and consider how you

can capitalize on them to gain an edge. This analysis can

provide the reader with an understanding of how you plan to
stay ahead of the competition and what barricades you can
build to protect your business from their advances. Assemble
the facts, make informed suggestions, and craft a competitive
analysis that will help you gain the lead.
You can competitively differentiate your business in three

ways:
Cost leadership
Cost leadership is the strategy of offering goods or services
at a lower price than the majority of your competitors while
still making a profit. This strategy is used by companies such
as Mejuri and Endy, which offer high-quality merchandise at
affordable prices. This allows them to attract and retain
customers, as well as maximize their profits.
For a company to successfully implement cost leadership, it

must have effective cost-control measures in place and a
comprehensive understanding of its market. Companies
should also be able to respond quickly to changes in their
market and keep their costs low. Cost leadership can be
implemented in a variety of ways, including using economies
of scale, cutting costs through automation, and offering
discounts or other promotions.
Differentiation
Differentiation is vital in any industry and is the foundation of
success for companies like Knix and Qalo. These companies
have established themselves as cost leaders by providing
something distinct and unique that sets them apart from their
competition. By offering products and services that are
different from their competitors, they can capture the
attention of consumers and provide them with something
valuable. Differentiation is all about being creative, finding
ways to stand out, and finding ways to make your product or
service better than the competition.
Segmentation
Segmentation is a strategy used by businesses to focus on a
specific target market and gain traction with a smaller
audience. Companies like TomboyX and Heyday Footwear
have succeeded with this strategy, first focusing on a niche
and then gradually expanding their reach to broader markets.
Segmentation entails a deep understanding of the target

market and their needs so that the product or service
offerings can be tailored to meet their exact requirements. By
targeting a specific audience, businesses can build stronger
relationships with their customers, allowing them to create a
more personalized experience. The goal is to build a loyal
customer base and develop a successful product by catering
to a small, yet specific, market segment. In the long run,
segmentation can lead to more consistency and increased
profits for businesses.

Outline the management and
organization
The management and organization of your business plan are
vital for readers or investors to comprehend the structure of
your company. Emphasizing the legal structure, like whether
you have an S corporation, a limited partnership, or a sole
proprietorship, gives readers an informed perspective on the
inner workings of the business.
An organizational chart is also useful in displaying the

complex relationships between the management team, their
roles and responsibilities, and how they will band together to
help the business succeed. This section is designed to
effectively communicate the organization of the company and
illustrate how the company will be effectively managed.

List your products and
services
If you're a business owner, you know that your products and
services are the lifeblood of your company. For potential
investors and partners, a clear understanding of the products
and services you offer is critical. To ensure they know what
you have to offer, it's important to provide a section of your
business plan that outlines critical details about each item.
Depending on how many products and services you offer, this
could include more general information on each product line
or more specific information on each item.
From food to furniture, financial services to software, it's

important to clearly explain to your audience what you're
providing. Make sure every detail is included in your business
plan so that potential investors can easily assess what you're
offering and decide if they'd like to partner with you.
For a bag shop like BAGGU, the plan should first list out all

the bags and key details that are currently being offered, as
well as any new products to be launched in the near future.
The plan should also include an explanation of how the
products will improve the company's profitability. It is
important to note any suppliers that are being used, as well
as how the products are sourced, since handmade crafts will
require a different approach than a drop-shipping business.
This will ensure that the business plan is detailed and
comprehensive.
Perform customer
segmentation
Customer segmentation involves understanding and dividing
customers into different groups or segments based on some
shared characteristics. By doing so, companies may hone in
on their ideal audience and develop more targeted
campaigns. To do this, businesses will need to research
customer demographics such as age, gender, income,
location, occupation, education level, and other behavioral
characteristics. Businesses will also need to identify common
customer values, opinions, and beliefs that can influence
purchasing decisions.

With customer segmentation, businesses will be able to more
accurately target their ideal customer — the one they want to
reach, understand, and serve. This will enable them to create
more personalized marketing campaigns and better
understand their customers' wants and needs. By breaking
down their clientele into distinct groups, businesses may
better target their advertising and develop specialized
offerings for their ideal customers.
Define a marketing plan

A marketing plan is a blueprint for the goals, strategies, and
actions you plan to take to engage your ideal customer. It
outlines the current decisions you have made and a future
strategy for achieving success in your market. Your marketing
plan should focus on how your ideas align with your
customer's needs, wants, and desires. If, for example, you
plan to invest heavily in Instagram marketing, it would be wise
to include whether Instagram is a popular platform for your
target audience — if not, this could be a sign to reconsider
your marketing plan.

Every effective marketing plan should include four key
components: price, product, promotion, and place. The price
covers how much your product costs and why you chose that
pricing structure. Product discusses what you’re selling and
how it’s differentiated in the market. Promotion outlines how
you’ll get your product in front of your intended customer,
and place explains where you will sell your products.
Although promotion may take up most of the plan, it’s
important to include some details about the other three
components as well. A comprehensive marketing plan will
help you stay on track with your business goals and
objectives.
Provide a logistics and

operations plan
Logistics and operations are the nuts and bolts of making
ideas come to fruition. From allocating resources to
scheduling activities, a logistics and operations plan outlines
all necessary steps to bring a project or plan to life.

The plan might suggest the order of operations and the
timeline to complete the job. It should also consider who will
be involved and how resources will be moved from point A to
point B. A comprehensive logistics and operations plan
outlines the sequence of tasks, details the resources needed,
and assigns responsibilities for each step. By accounting for
all these elements, a logistics and operations plan ensures
that the project will be completed on time and within budget.
Suppliers
Tracking down the right suppliers is critical to the success of
any business. Consider where to acquire the necessary
supplies and determine if production can be completed
in-house or outsourced. Research the marketplace to ensure
that reliable vendors can provide the raw materials needed
for a profitable venture.
Production
Production is a key factor here — decide if you'll manufacture
your products yourself, wholesale them, drop-ship them, or a
combination of those. It's important to plan ahead and
estimate how long it'll take to produce and ship your products
— if there's an influx of orders, will your current process be
able to handle them? The ability to anticipate this kind of
situation and have a reliable procedure in place is essential
for success.
Facilities
Where will your business be based? Will you have a physical
location, or will you operate solely online? If you plan to have
a physical location, where will it be located? Are you working
alone, or will you have a team to help you with your
operations? Will they be based in the same office as you, or
will you be working remotely? Think through all the details of
what kind of space you need to run your business.
Equipment
Starting a business calls for a wide array of tools and
technology. From computers and phones to lightbulbs and
cleaning supplies, they are all essential components of
getting the business off the ground. Every business will have
its own unique set of needs, so it is important to make sure
that you have identified all the necessary equipment to get
the operation running. This can include major investments
such as office furniture, as well as minor details such as paper
clips and pens. Taking the time to consider all the items you
will need can save you time and money in the long run.
Shipping and fulfillment

To ensure efficient delivery of services, it is wise to determine
whether the tasks associated with shipping and fulfillment will
be managed directly or whether a partner will be employed
to lend their expertise. In-house management of shipping and
fulfillment may be preferred if the organization has the
necessary infrastructure and resources. However, an external
third party may be considered if the job requires more
specialized knowledge.

Inventory
Inventory management is a key component of a successful
business plan. How much will you have on hand? Should you
have it stored in-house or somewhere else? With the
possibility of having to ship to partners, what is the best way
to handle shipping and inventory tracking? These are all
important questions to answer as you create your business
plan.
Make a financial plan

A financial plan can help you understand your current
financial state, set achievable goals, and devise a strategy to
achieve them. It's like a roadmap for your business, so you
can identify where you are, where you're headed, and what
you need to do to get there. Begin by understanding your
current financial health. Prepare an income statement,
balance sheet, and cash-flow statement to get a clear picture
of your financial situation.
Once you have a clear picture, you can set realistic financial
goals. Establish both short and long-term goals, then break
them down into actionable steps. Finally, create a strategy for
achieving these goals. Monitor your financial progress
regularly and adjust your strategy as needed to ensure
greater success.

These three financial mainstays: the income statement,
cash-flow statement, and balance sheets — will be the
cornerstones of your plan. Let's take a deeper look into each.
The income statement is the key to unlocking the potential

of a business to generate money. It is the backbone of a
business plan and uses financial models to combine sales,
expenses, and costs. It is a simple tool to determine if a
business is making a profit or a loss.
The supporting piece to the income statement is the cash

flow statement, which is critical to understanding how a
business will meet its obligations when it needs money, and
how it will obtain money. If a cash flow statement reveals a
continuous loss of money, it can be a warning sign for both
the business and potential investors. Regular monitoring of
the cash flow statement is encouraged. By keeping an
up-to-date income statement and cash flow statement, a
business can stay on the right track and remain profitable.
The balance sheet is the third financial statement for a

business. It's a snapshot that shows all the equity, assets, and
liabilities of the business at a particular point in time.
To create a balance sheet for an existing business, review the
previous period's records. For a brand-new business, use
your best judgment to estimate assets and liabilities over
time. To gain investor confidence and effectively express the
potential of your business, including a personal financial
statement in your business plan. After compiling the figures,
provide a brief analysis of the main points to draw attention to
the soundness of your business. The balance sheet is a vital
tool to give investors assurance in your business and its
potential. Below, there are seventeen components to be
factored into your cash flow statement.
Cash
Money that's readily available for the company to use, hard
currency in its holdings.
Cash sales
Income from monetary transactions made directly with cash.
Receivables
These are the revenues earned from customers who promise
to pay for services or products at a later date. In essence,
customers owe money to the business for products or
services previously purchased, and it's up to the business to
collect and tally this income. Reaching out to customers to
collect the money owed secures the business's financial
stability and keeps the cash flow going.
Other income
Other income is a financial blessing in disguise; it is cash
generated outside normal operations that can be used to
fund expansions, pay off debts, or provide a cushion for
tougher times. It's the money that comes from liquidating
assets, collecting interest from loans, or getting returns from
investments.

Total income
Total income is the full picture of financial gain; it is the
culmination of all cash earnings, sales transactions, what is
owed to you, and other income sources. Together, these
components provide the total amount of income.
Material/merchandise
Whether you are producing a product from raw materials,
selling goods in a retail setting, or providing a service, you
need the right supplies to keep your business running. From
the fabric for a garment maker to office supplies for an
accountant, these materials/merchandise are essential for
any business to succeed.
Direct labor
Direct labor is the labor force that is needed to make a
product or provide a service. This includes all workers who
directly contribute to the production of a product, such as
welders, cutters, packers, assemblers, and so on. It excludes
the cost of supporting staff, such as office personnel,
administrative staff, or supervisors. Direct labor includes the
wages paid to the worker, as well as any benefits or other
costs associated with their employment.
Overhead
Overhead is the umbrella term for the costs of running a
business — the variable cost that shifts with the seasons and
the fixed cost that stays the same. From the rent to the
payroll, from the marketing campaigns to the office supplies,
overhead covers it all.
Marketing/sales
Marketing and sales departments are the driving force behind
any successful business, and their financial costs reflect that.
Salaries, commissions, and additional costs are all part of the
package, ensuring that the departments have the resources
they need to produce results.

Research and development
Research and development require an immense amount of
creative energy and labor. It requires a team of skilled minds
to identify possibilities, understand the changes and
advancements in the industry, and create products that push
the boundaries and explore new trends. You should include
labor expenses for research and development, since they are
necessary to ensure that the right people are in place to drive
the innovation and progress of the organization.
General and administrative expenses

A variety of labor costs go into G&A, such as salaries, office
space rental, insurance, taxes, and more. These expenses are
necessary to ensure a company’s continued operations,
growth, and ability to generate a profit. General and
administrative expenses are often the backbone of any
business. Without them, a business won’t have an organized
infrastructure to further its mission and objectives.
Taxes
Taxes are a major factor in a cash-flow statement. From
corporate income taxes to goods and services taxes, all taxes
must be accounted for accurately. Though payroll taxes are
not included, these statements show a comprehensive
overview of all other taxes paid or accrued to ensure fiscal
responsibility.
Capital
Cash flow statements outline a company's inflow and outflow
of cash and provide a detailed account of the capital required
to purchase equipment.
Loan payments
Loan payments in cash-flow statements offer a way to keep
long-term debt in check and ensure that financial liabilities
are met. They symbolize progress and success, as they
signify that your business is up and running, and successfully

managing its debt. Loan payments offer a way to keep cash
flow steady and finances in order.
Total expenses
Total expenses paint a clear picture of the financial health of
an organization, with each expense item representing a piece
of the puzzle. From material/merchandise to loan payments,
the total expenses provide tangible data to navigate the
financial path a business has taken.
Cash flow
This is the difference between total income and total
expenses and determines the amount of money to carry over
to the next period. It's a simple yet effective equation:
subtracting total expenses from total income to give the
all-important cash flow number. It's a vital part of any
business's financial health.
Cumulative cash flow

Cumulative cash flow is the difference between two periods.
It's like the "year-to-date" total of cash flow. It's simple:
subtract the previous period's cash flow from the current
period's, and you'll have the cumulative cash flow. It's an
essential component of any cash-flow statement to gain a
clear picture of the current cash position.
Supporting documents
Supporting documents are a fundamental piece of any
business plan. They include vital contracts, letters of
reference, the business's lease, and legal documents, and
provide an additional layer of detail that increases the
credibility of the plan. These documents can demonstrate the
business's ambition and capability, as well as any
commitments and obligations, to the reader or investor.
Moreover, including them can make the difference between
getting the necessary funding and investments or not.
COMMON MISTAKES WHEN
WRITING A BUSINESS
PLAN
If you're starting a new business, writing a business plan can

feel overwhelming. From researching the market to
forecasting revenue, it can be difficult to know where to start.
But even more daunting is the fact that you may be making
mistakes without even knowing it.
Below, there are some common mistakes new businesses

and entrepreneurs often make when writing a business plan.
Making A Long-Winded Business

Plan
Candice Lu of OnPrem Solution Partners has experienced the
business world from both the perspective of a large company
and her startup and has concluded that a large, 50-page
business plan is no longer the way to go for startups. With the
business world rapidly changing, the plan could become
outdated by the time it is finished.
Lu has been using the Lean Startup Methodology's one-page

business model canvas to create mission and vision
statements and has found this approach to be successful in
her nine years of operation. To her clients, she highly

recommends this strategy rather than the traditional 50-page
plan. She believes this model to be far more efficient and
effective, allowing startups to stay agile and up-to-date in the
ever-changing business world.
Underestimating User
Acquisition
Entrepreneurs must recognize that user acquisition starts with
building a product that consumers want, but it will not end
there. Thoughtful and creative strategies must be employed
and adapted as the market changes. These strategies must
reach the right audience and incentivize them to not only use
the product, but also share it with other potential users. User
acquisition is a continuous process that entrepreneurs must
be willing to invest in to ensure their product and vision reach
the right market.
Striving To Create A 'Perfect

Plan’
New business owners often make the fatal mistake of trying
to write the perfect business plan. The pressure of having
every detail planned out before starting a business can be so
overwhelming that it ends up becoming a roadblock.
The best way to tackle this is to make a basic plan and then
get going. As the journey progresses, things may change,
and adjustments will be necessary. Taking notes and
reflecting on the experience is a great way to stay on track
and make adjustments. Don't let the fear of not having the
perfect blueprint stop you from starting your business — have

a basic plan and get started!
Failing To Research The Target

Market
For any new entrepreneur, research into their target market is
key to success. Without proper research, it can be virtually
impossible to create an effective marketing strategy.
Understanding the needs of their customers, their buying
habits, and how to reach them is essential for a successful
business plan.
Researching the target market helps entrepreneurs create a

comprehensive and tailored marketing plan that meets their
customers' needs. This can help them generate more sales
and be more successful. Failing to properly research the
target market can be a huge setback and lead to costly
mistakes.
Forgetting Cash Flow

Entrepreneurs can easily become consumed with the quest
for profitability, but it is equally essential to pay attention to
cash flow. You can generate a handsome profit yet still find
yourself unable to pay your bills due to debt or backlogged
stock. Keeping a careful eye on the cash conversion cycle
and finding ways to reduce it are key when it comes to
ensuring your business remains financially robust.
Additionally, allocate a portion of your budget for possible

shortages in the cash flow, even if the business is profitable.
Profitability will guarantee continued success in the long
term, but cash flow will determine if your business can survive
in the short run. Cash flow should be a significant

consideration when it comes to planning your business
strategy; otherwise, you may find yourself stuck in an
unprofitable bind.
Thinking A Business Can’t Be

Started Without A Formal Plan
Many entrepreneurs assume that a professional, polished
business plan is a mandatory requirement when it comes to
starting a business. However, many successful business
owners have come to find that this isn't always the case.
Instead, they have used trial and error to develop their
businesses. This is not to say that a business plan is not
beneficial; it can help to keep things on track as the business
evolves. But starting out, it's more important to focus on
meeting the needs of the market and getting your feet wet.
Overcoming the mental roadblocks that can prevent the

launch of a business should be the priority, not creating a
formal business plan. The plan can grow and become more
detailed as the business grows. The main point is that
entrepreneurs should not be intimidated by the prospect of a
business plan and should focus on the task at hand first.
Misunderstanding The Plan's

Purpose
When drafting a business plan, entrepreneurs occasionally
err by failing to recognize their intended audience. As such,
they need to know the difference between writing a business
plan to seek venture capital, a loan from a bank, or showing
potential customers or partners. Each of these requires

different information.
The plan also needs to be concise, fluid, and targeted at the

target audience. It can be as short as one page or even
written on a napkin. Still, it needs to include the basic idea or
concept, a thorough examination of the competition and
viability of the product/service, a 1-year marketing plan and
budget, and a 1-year financial plan. Knowing who your
business plan is for and what information to include will help
you craft a successful plan that meets their needs.
Underestimating The
Competition
As a new entrepreneur, it is easy to get caught up in the thrill
of creating something new and innovative that you may
overlook potential competitors. However, failing to identify
competition can be a costly mistake in a business plan.
Before launching, ensure you take a step back to evaluate

the situation and to determine if there are any existing
solutions to the same problem. Even if you think your product
or service is unique, there very well may be alternative
solutions that people could turn to. Being aware of the
competition and its possible threats is essential to your
business plan’s success. Don’t let yourself get carried away
with the excitement of having a unique product, but rather,
recognize the potential competition and create a plan that
can be successful despite them.

Leaving Little Room To Pivot
Entrepreneurs need to think of their business plan as a
roadmap rather than a rigid set of rules. It should provide
guidance and a framework to help make important decisions.
The plan should be seen as fluid and capable of adjusting to
market changes and customer feedback. Flexibility within
plans allows entrepreneurs to quickly identify their
product-market fit, adapt their product or service, and
respond to customer feedback. Without flexibility, businesses
can quickly become too rigid and out of touch with the
current market. Being flexible gives businesses the room to
pivot, modify, and adapt — all of which are key components
to long-term success.

WHAT TO DO AFTER
WRITING A BUSINESS
PLAN?
Following the completion of your business plan, you should

focus on the following five things:
Get help
Knowing when to ask for help can be a tricky decision, and
understanding what help you need can be daunting. That
said, getting help can be the best decision you make when
you don't know what to do next. Whether you’re trying to
increase sales figures or build brand awareness, seeking
advice from an experienced professional can be a valuable
asset. Such a professional will be able to offer you advice and
guidance, as well as technical and creative work such as
building websites, creating logos, and copywriting.
While hiring an expert for the job may not be possible for
everyone, there are alternatives to consider, such as bartering
services or finding cost-effective solutions online. By
researching your options and exploring various platforms,
you can find the right person for the job or even negotiate a
mutually beneficial arrangement. Ultimately, the key to getting
the most out of the help you seek is knowing what you need
and finding the right professional or platform to equip you
with the necessary skills and expertise.

Make sure it connects to your
purpose
You know you have a purpose in your business... But what is
it? That deeper WHY behind what you do? It's more than just
wanting to make money — there's probably something more
profound that drives you each day.
Take some time to think about what your WHY is. Why did
you decide to start this business? What are your passions,
dreams, and goals? When you identify this purpose and use it
as your guide throughout your business journey, it can make
all the difference.
Your WHY will be the light that guides you through challenges
and difficult decisions. It will be a rallying cry when things get
tough. It will help you prioritize tasks and narrow down your
focus. It will help you draw people in and keep them loyal as
they relate to your purpose.
Your WHY can be the muse that drives your business forward
and helps you create something meaningful and lasting. So
take some time to reflect and answer the questions of your
WHY. Knowing this purpose can be the key to success.
Begin to test and measure

Testing and measuring your plan is an essential step in
turning your concept into a successful business. Your plan
may be well-thought-out, but the only way to truly know how
effective it is to start collecting data related to it. This data can
range from sales numbers to return on investment
measurements. By testing and measuring, you can begin to
understand how the different elements of your plan affect

one another and how they work together to help achieve
your business goals.
Measuring your sales is an obvious place to start, which helps

you understand how well your plan is being implemented. But
it is important to look deeper to gain a more comprehensive
understanding of your plan's effectiveness. For instance, if
you are using Google Ads, tracking your conversion rate can
give you insight into what strategies you need to tweak or
optimize. Additionally, by looking at other metrics such as
website visits, time on page, or even customer loyalty, you
can get a holistic view of your plan's performance.
Testing, measuring, and adjusting your plan is an ongoing

process that should be applied constantly to ensure you are
getting the most out of it. By consistently monitoring your
plan's success, you can make sure your business is heading
in the right direction. The more measurements you make, the
better you will be able to refine your plan and optimize it for
maximum success.
Use the 80/20 rule

The 80/20 rule is an invaluable tool for any business looking
to maximize its profit. By simply observing an unbalanced
distribution of work and reward, you can make smart
decisions when it comes to allocating resources. Start by
examining daily habits, processes, clients, and marketing
activities to determine where the most effort is being put in
versus the returns. You might find that only 20% of your
advertising generates 80% of your revenue, or that 80% of
your advertising generates only 20% of your revenue. Taking
this insight into account, you can adjust the balance of funds
to the more successful areas.
Furthermore, the 80/20 rule is a great way to identify areas

for improvement. For instance, if you are spending more time
on certain tasks than the reward justifies, it may be time to
consider streamlining or outsourcing. Or, if you are investing
too much money in certain marketing activities or clients and
not getting the desired results, it may be time to rethink your
strategy.
To maximize your success and save time, it is important to

make use of the 80/20 rule. Regularly assess the amount of
work put in against the returns and adjust accordingly. Doing
so will ensure that you are spending your resources most
effectively while minimizing any losses or inefficiencies.
Learn something new

For many entrepreneurs, taking the leap into owning their
own business can be daunting. While they may have the skill
set necessary to begin, the often-overlooked knowledge and
understanding of the other aspects of operations can be
overwhelming. Plumbers, accountants, health trainers, and
web developers are just a few of the professions that are
often unprepared for the marketing, copywriting, and SEO
(Search Engine Optimization) that comes along with owning a
business.
When an entrepreneur finds themselves in a position where

they must hire someone to do the job, they should ask
themselves if they'll be able to tell if the person is doing a
good job. To adequately assess the job, the entrepreneur
should make an effort to understand the task and acquire the
skill, if possible. Although some may not possess the capacity
to learn the skill quickly, they must determine if they're willing
to take the time to learn and understand the task at hand.
In some cases, the entrepreneur may be content to hire out

the job and not worry about mastering the skill. However, this

can lead to them “working within their business instead of on
it.”
“Work on it, not just in it” is a reminder to assess the bigger

picture — take a breath, and observe the overall landscape of
your work or situation. It encourages business owners to
zoom out and evaluate their progress instead of just being
consumed by the small, tedious details of everyday tasks.
To avoid this, the entrepreneur should make an effort to learn

the skill and assess the work the hired person is doing. They
can gain a better understanding of their business and make
better decisions as a result.

TIPS FOR WRITING A
BUSINESS PLAN
When creating a business plan, keep in mind these 12

principles. They will help you create a useful document that
meets your goals and can be referred to as your company
expands and moves forward.
Don’t be long-winded
A business plan is an essential tool when launching,
expanding, or restructuring a business, but when it's too
long-winded, it can easily be forgotten or ignored. This is
because lengthy plans are harder to follow and can be
bogged down in unnecessary details. Clear, concise
language is essential for the success of a plan, and using
jargon can create confusion or cause readers to become
overwhelmed.
Having a concise plan with direct and concise language

makes it easier for stakeholders to understand and can help
ensure that the business plan is used as intended. Making
sure that your business plan is well-thought-out but succinct
is essential to getting the most out of it.
Show why you care

When it comes to your business, you know how important it is
to show that you genuinely care. It's not just about the
services and products you provide, but about how much you
truly believe in them. Demonstrate why you care by letting
your enthusiasm and passion for the business shine through.
Show employees and investors that you're committed to the

success of the business not only for financial gain but for the
impact it can have on the world. Show that you care by
staying up-to-date on the latest industry trends and investing
time and resources into developing innovative solutions.
Provide supporting documents

A successful business plan needs to be well documented to
demonstrate its validity and success potential. Gather all the
necessary supporting documents that illustrate the details of
your plan. These could include the CVs of your team,
customer personas, product demonstrations, and messaging
samples. Don't let the details slip through the cracks; having
an extensive list of appendices in your plan will show you're
serious about your business.
Reference data
As part of your business plan, it's critical to include data from
reliable sources regarding the market, your rivals, and your
target audience. This can help give your roadmap a solid
foundation and provide you with the evidence you need to
back up your assumptions and conclusions. Taking this step
can help you demonstrate competence and show your plan is
based on sound research.
Research, research, research

You need to analyze the products that your competitors offer,
their prices, and their customer service. If you have a retail
business, look into foot traffic in the area. Evaluate the

population, the median age, and the household income of the
area to determine if it’s an ideal location for your business.
Research what works and what doesn’t in your specific

industry. Look at case studies to learn from the successes
and failures of businesses in the past. Use this to your
advantage when developing your plan. It’s worth the time to
dig into the details of your business concept and make sure it
will be profitable.
Doing the research upfront can save you time and money in
the long run. Make sure you have a full understanding of the
market and how your business will fit in.
Clearly demonstrate your

points of difference
Standing out from the crowd is critical for success, especially
in a competitive business landscape. To truly make an impact,
it's important to clearly show how your solution is different.
This involves highlighting why your product or service is
better than the competition and how it can effectively solve a
problem for your target audience.
Incorporate this distinction into your business plan.

Emphasize exactly why you are unique, how your approach is
superior, and how you can solve the customer's problem
better than anyone else. Doing so will help make sure your
message is heard and understood. Subtly emphasize your
product or service's strengths and make sure you are driving
home the point of difference.

Be objective in your research
Provide relevant, fact-based data when reporting, and make
sure to share the conclusions you've drawn from the
research. Leave the opinion out of it and provide the facts. It's
essential to be neutral when analyzing the data and
conducting research for your business plan. Instead of just
showcasing the strengths of your business, provide an
honest picture by including both the positives and negatives
in your market research and financials.
Present factual information that is relevant to your subject,

and make sure to explain the deductions you have made
from the gathered information. Facts should remain
paramount to present a balanced and clear picture to your
shareholders; leave out any personal viewpoints and stick to
the facts.
Know the purpose of your plan

To be sure you are heading in the right direction, it is
essential to know what the purpose of your business plan is.
Before you spend hours researching and writing, you must be
crystal clear about why you are doing this. Is it to attract
potential investors? To get your teams on the same page? Or
provide direction for your business? Knowing the answer to
this question will ensure your plan meets the needs of your
business. Clarity at the onset will save you time and energy in
the long run.
Identify your audience

Identifying your audience is essential when writing a business
plan. Without knowing who you're writing for, it's like shooting
in the dark — you may hit your target, but it's far less likely.

Knowing your target is just as important as having a clearly
defined goal. Are you writing for new investors? Maybe you're
trying to motivate existing staff to reach the next level.
Perhaps you're attempting to entice potential collaborators. It
could even be that existing shareholders are the ones you
want to impress. Whatever the case, it's important to
understand who's on the other side of the page. That way,
you can craft a plan that speaks to their needs, resonating
with them and making them want to join your cause. In the
end, it's all about understanding who you're writing to — it's
the first step to getting the results you need.
Avoid jargon
Create a plan that is as accessible and easy to comprehend
as possible. Jargon should be avoided wherever possible so
that all of your potential stakeholders can understand and
comprehend the message. Even if certain industry-specific
terms and acronyms are required, make sure to explain them
as clearly and simply as possible.
When crafting your plan, keep your language as clear and

concise as possible. That doesn't mean that you have to be
simplistic or dumb down the information; it should be
presented in a way that allows all stakeholders to understand
the fundamentals of what you are putting forward. Opt for
clarity over jargon to make sure everyone involved is on the
same page.
Don’t be afraid to change it

It's important to think of your company's growth as an
ongoing exercise. You can't just establish a plan and then
stick to it forever. The reality is that as your business grows
and develops, so should your plan. Your business plan should
be thought of as a living document that is consistently
reviewed, refined, and improved as time goes on. Change
can sometimes be intimidating, but don't be scared to adjust
or update your business plan; it's necessary for success.
Use it
A business plan isn't something to just check off your to-do
list and forget about. It's a document that should accompany
you at all times, working as a reference for the progression of
your company. This should be actively taken into account
when making decisions, as it's been made based on careful
consideration of your business goals. It should always be
within reach, giving you a sense of direction when
maneuvering through the often tricky terrain of
entrepreneurship.
As time passes, it's vital not to lose sight of your plan.

Keeping a close eye on it will ensure your business remains
on the right track, steadily moving in the direction you want it
to go.

CONCLUSION
Your business plan is like a map pointing the way to success.
It's the cornerstone of all your successes and the foundation
upon which you'll build your business. A well-thought-out
business plan is the key to achieving your goals and bringing
your vision to fruition. With the right knowledge and the right
tools, you can create a plan that outlines all the necessary
steps to reach success.
Take the time to carefully plan and dedicate yourself to the

task, since it's an investment in your future success. With a
solid plan in place, you have the assurance of a successful
journey ahead.
Creating an ideal business plan requires careful thought and

attention to detail. From market research to financial
projections, it's important to be mindful of what is necessary
for a successful outcome. A reliable plan outlines your goals
and establishes a path to reach them. It's essential to get the
plan right because it can be the deciding factor between
success and failure.
To create the best plan, take the time to develop a

well-rounded strategy that considers all the important facets
of your business. Establishing an overall vision and then
breaking it down into achievable steps will help you move
forward and stay on track. This super guide can provide
useful tips and advice to help you create a plan that will set
you up for success.

REFERENCES
The following references were consulted to create this Super

Guide:
➔ https://www.indeed.com/career-advice/career-dev
elopment/lean-business-plan-template
➔ https://www.entrepreneur.com/starting-a-business/
how-to-prepare-and-write-the-perfect-business-pla
n-for-your/371082
➔ https://wisebusinessplans.com/financial-plan-in-bus
iness-plan/
➔ https://www.accountingtools.com/articles/advantag
es-of-a-good-business-plan
➔ https://hbr.org/1985/05/how-to-write-a-winning-bus
iness-plan
➔ https://sbdctampabay.com/needs-business-plan-an
yway/
➔ https://www.nerdwallet.com/article/small-business/
business-plan
➔ https://www.builderfly.com/how-to-write-a-business
-plan-for-my-ecommerce-business/
➔ https://www.waveapps.com/blog/importance-of-a-b
usiness-plan
➔ https://www.questionpro.com/blog/what-is-market-
segmentation/
➔ https://www.liveplan.com/blog/my-business-plan-is-
finished-now-what/
➔ https://www.investopedia.com/terms/b/business-pl

an.asp
➔ https://www.forbes.com/sites/theyec/2022/06/30/n
ine-common-business-plan-mistakes-to-avoid-as-a-
new-entrepreneur/
➔ https://timberry.bplans.com/10-benefits-of-business
-planning-for-all-businesses/
➔ https://www.thebalancemoney.com/what-to-do-wit
h-ideas-for-business-1200673
➔ https://www.inc.com/jeff-haden/how-to-write-perfec
t-business-plan-a-comprehensive-creating-guide.ht
ml
➔ https://www.investopedia.com/terms/m/marketing-
plan.asp
➔ https://www.wework.com/ideas/professional-devel
opment/business-solutions/how-to-write-a-busines
s-plan
➔ https://www.entrepreneur.com/starting-a-business/
expert-advice-10-tips-to-craft-a-strong-business-pla
n/241079
➔ https://www.sba.gov/business-guide/plan-your-busi
ness/write-your-business-plan
➔ https://www.shopify.com/blog/lean-business-plan
➔ https://www.london.edu/think/what-to-do-before-yo
u-write-a-business-plan
➔ https://blog.hubspot.com/marketing/sample-busine
ss-plans
➔ https://www.crowdspring.com/blog/business-plan-ti
ps/
➔ https://www.savvysme.com.au/article/7151-5-things-
to-do-after-you-write-your-business-plan
➔ https://articles.bplans.com/one-thing-write-busines
s-plan/

➔ https://www.indeed.com/career-advice/career-dev
elopment/importance-of-business-plan-for-entrepr
eneurs
➔ https://donorbox.org/nonprofit-blog/nonprofit-busin
ess-plan
➔ https://www.businessagility.net.au/post/the-top-5-b
enefits-of-having-a-business-plan
➔ https://www.roimaint.com/effective-logistics-planni
ng-driven-by-the-business-goals/
➔ https://www.shopify.com/blog/business-plan
➔ https://smallbusinessbc.ca/article/10-common-busi
ness-plan-mistakes/
➔ https://www.sbdc.duq.edu/Blog-Item-The-Importan
ce-of-a-Business-Plan
➔ https://www.bdc.ca/en/articles-tools/marketing-sale
s-export/marketing/how-evaluate-competition
➔ https://web.uri.edu/risbdc/seven-common-business
-plan-mistakes/

ABOUT THE AUTHOR
Daniel Pereira is a Brazilian-Canadian entrepreneur that has

been designing and analyzing business models for over 15
years. You can read more about his journey as a Business
Model Analyst here.
E-mail Daniel if you have any questions

at: daniel@businessmodelanalyst.com
You can connect with Daniel at Linkedin:
https://www.linkedin.com/in/dpereirabr/


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The Perfect

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The Business Model Analyst is a website dedicated to

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What Is A Business Plan? 11

Who Needs A Business Plan? 13

Types Of Business Plans 17

Benefits Of A Perfect Business Plan 22

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What Should You Do Before You Write Your Business

How To Create A Perfect Business Plan: A Step-By-Step

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Common Mistakes When Writing A Business Plan 55

What To Do After Writing A Business Plan? 61

Tips For Writing A Business Plan 66

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About The Author 76

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Writing a business plan can be an intimidating task, full of

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A business plan serves as a guidebook, outlining the goals

A well-crafted business plan is like a roadmap for success. It

Essentially, it's a tool that serves to direct the company's

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A business plan is essential to any business, no matter how

For bigger companies, a business plan should be an evolving

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In the context of entrepreneurship or setting up a company, a

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A business plan also helps to communicate the vision of the

A business plan is a perfect playbook for success. It provides

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Creating a successful business plan is like creating a

Each type of business plan offers unique insights and

Traditional Business Plan

Traditional business plans take time and effort to put together,

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Lean Business Plan

Benefits of using a lean business plan

● Lean business models allow businesses to identify and

● It allows for the development of an easy-to-read,

● A lean business model provides a comprehensive

● A lean business model gives you the flexibility to easily

● A lean business model is an efficient way to craft and

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Nonprofit Business Plan

It is a blueprint for any entity dedicated to public and social

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Having a nonprofit business plan also allows you to make

Writing a nonprofit business plan will also help you to create

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Here are the top ten benefits of writing a business plan.

See the whole business

Through a perfect business plan, you can develop an

The business plan also aids in the development of marketing

You can't do everything, but with a perfect business plan, you

With a good planning process, you can make changes to your

For each plan that is developed, there should be a

With a detailed plan in place, you can assess which clients

For example, if a gourmet restaurant offers drive-thru service,