Learn It 8.4.3: How to Start a Business

Create Your Business Plan

a hand-drawn, humorous illustration labeled "MY BUSINESS PLAN." The illustration consists of stick figures, a chicken, and a bottle of milk leading to bags of money.
Figure 1. A business plan is a document that contains a range of details about how your business such as organization, operations, and financing.

The SBA recommends prospective entrepreneurs address the following nine elements in their business plan:

  1. Executive Summary
  2. Company Description
  3. Market Analysis
  4. Organization & Management
  5. Service or Product Line
  6. Marketing & Sales
  7. Funding Request
  8. Financial Projections
  9. Appendix

The SBA provides two example business plans for reference: consulting firm example business plan and toy manufacturer example business plan.

Note that the length and depth of business plans vary depending on the audience and objective. For example, a business owner(s) seeking a traditional bank loan will likely need a more detailed plan.

An alternative is the lean business plan, which Palo Alto Software and BPlan founder and CEO Tim Berry claims can be completed in an hour. The process and timeframe are probably more applicable to a seasoned entrepreneur, but it may be worth reading Berry’s Fundamentals of Lean Business Planning blog post to see if it’s a fit for you.

There are a number of one page business plan templates freely available online; to view a range of options, conduct an image search on “one page business plan template.” A final approach for consideration is venture capitalist Guy Kawasaki’s 10/20/30 formula: 10 slides, 20 minutes, 30 point font. In those 10 slides, Kawasaki recommends eliminating pitch-speak and focusing on the topics that matter to an early stage investor:

  1. Problem
  2. Your solution
  3. Business model
  4. Underlying magic/technology
  5. Marketing and sales
  6. Competition
  7. Team
  8. Projections and milestones
  9. Status and timeline
  10. Summary and call to action