How to create a business plan

By: Amanda Phagan, Edited by: Rebecca Munday

Published: June 13, 2025

Does your company have a business plan? If you plan to apply for a business loan or find investors for your company, you will need to create one.

Our guide can help you define your company's vision, goals, and operational roadmap. Whether you work at a startup or plan to start your own business, knowing how to create a business plan can help you start or grow your business.

Steps to create a business plan

1. Craft an executive summary

An executive summary is your company's elevator pitch — a succinct and persuasive overview of your mission, products/services, and financial plan. An executive summary is typically just one to two pages, so conciseness is key. After all, you want to convince your busy reader to invest in your business.

An executive summary should include the following components:

• Hook: Invite the reader to learn more with an attention-grabbing fact, statistic, or statement.
• Company description: Briefly summarize what you sell, where your company is based, when it was founded, and your founders/executive team.
• Market analysis: Describe your main competitor(s), the demand for your products/services, and your business's competitive advantage.
• Product list: Highlight your top products/services and why customers would buy yours over others.
• Financials: Provide an overview of your current sales, projections, and any funding you have already secured.
• Goals: Conclude your executive summary with a brief description of how prospective funding will be used — and why investing in your business will pay off.

2. Write a business overview

Your business overview expands upon the company description provided in the executive summary. If your business has a website, your "About" page is a good place to start. Your business overview should include:

• Your company's name: Use your entire business name as it appears on official paperwork.
• Your business type: Specify whether your business is a sole proprietorship, LLC, or corporation.
• Your location: List your company's locations and specify where you are headquartered.
• Your leaders: Name your business's key leaders, including owners, founders, and C-suite executives.
• Your history: Tell a concise and compelling story about your business's founding.
• Your customer profile: Describe your ideal customer and how your product/service meets their needs.
• Your mission and goals: State the problem your business solves for customers — and your plans for future growth.

3. Define your business goals

This section — sometimes called an objective statement — outlines your business's short- and long-term goals and how you plan to use any funding your business receives.

In this section, you'll want to convince investors that your company presents a unique opportunity for profit. Be sure to mention any upcoming plans for product/service releases that may increase sales.

4. Describe your operations model

In this section, you'll summarize your business's operations structure. This is your chance to introduce the departments or teams that are vital to your business. Include the following information:

• How many people work for your business
• An organizational chart or list of each team/department
• A summary of each department's responsibilities
• Call-outs and/or résumés for exceptional employees who contribute to your competitive advantage

5. List your products/services

Your products/services section is a chance to go into more detail about your revenue streams. In this section, you should include:

• An explanation of how your product/service works
• Your pricing for each product/service and how it relates to cost
• A description of your supply chain strategy
• An overview of how you fulfill orders
• Your product's life cycle
• A list of any patents or trademarks associated with your product/service

6. Analyze the market and industry

In your market analysis section, you'll detail your competitors, their strengths and weaknesses, and how you're positioned to perform in comparison based on industry characteristics. Include:

• A description of your market, including size
• The customer personas you serve
• Whether your market is unique or underserved
• Your estimated market value (the percentage of the market you plan to convert and how much revenue that would create)
• Your barriers to entry into the market/industry
• Any supporting research, including compelling statistics
• Data visualization components like charts and graphs

7. Create a marketing and sales plan

Your marketing and sales plan is a blueprint for recruiting new customers, creating repeat customers, and developing a unique brand presence. This section should include information on:

• Your go-to-market strategy
• Your sales strategy
• The channels you target (or plan to target)
• The cost of your marketing and sales programs
• Data that illustrates the success of your programs, if applicable

8. Collect financial data and projections

You may not yet have access to the financial data that is most valuable to a business plan — but if you do, include it in this section. You may present revenue statements, a balance sheet, or cash flow statements. Your goal for this section is to convince investors or lenders that your business will be profitable. Consider highlighting numbers such as:

• Your net profit margin
• Your debt-to-income ratio
• Monthly or quarterly sales
• Future expense and profit estimates

If you haven't started doing business yet, use this section to discuss your financial goals and projections in more detail.

9. Include an appendix

Adding an appendix to your business plan allows you to offer supporting materials and information without overwhelming your reader. This section can include:

• Business licenses, retail licenses, and permits
• Patents
• Contracts
• Financial and/or credit statements