Business Plan: How to Write It Step by Step (With All Sections)

A business plan is a comprehensive, written description of how your business creates value, who it targets, and how it makes money. It's classically used to get a new business off to a good start, but the same structure is just as relevant when an existing business needs to develop further, secure financing, or change ownership — something we go deep into in our article on the business plan's role in buying and selling a business.

How long should a business plan be?

There's no single answer key. A plan for internal use — where the purpose is primarily to force yourself to think things through — can range from 5 to 50 pages, depending on how complex the business is. If the plan is for a bank or an investor, shorter is generally better: most sources point to somewhere between 10 and 20 pages as a sensible size, with a standalone summary of at most 1–2 pages at the front that can be read on its own.

The sections a good business plan should contain

1. Executive summary

The first section in the plan, but the last one you write. Here you summarize the whole business plan in 1–2 pages: the business idea, the market, the key points from the financial plan, and what you're seeking — for example financing. Many bank and investor readers decide based on the summary alone whether to read further.

2. Business description

Name, legal form, location, ownership, and a brief history if the business already exists. Also describe mission and vision — why does the business exist, and where is it headed.

3. Business idea and value proposition

What does the business specifically do, and what problem does it solve for customers? This is where you describe the core of what sets you apart from the alternatives.

4. Product or service

A concrete description of what you sell — features, quality, any patents or unique rights, and how the product or service develops over time.

5. Market analysis

Who's the target audience, how big is the market, and what trends is it moving with? A good market analysis is built on actual figures and sources, not assumptions.

6. Competitor analysis

Who are the real competitors, what do they do well, and where do you have an advantage? Be honest — a plan that doesn't address competition loses credibility with an experienced reader.

7. Marketing and sales strategy

How do customers find you, and how is that converted into sales? Describe channels, pricing, and the expected customer journey.

8. Organization and management

Who's in management, and what competencies do they bring? For a bank or investor, this is often just as decisive as the idea itself — they're investing heavily in people.

9. Operations plan

Day-to-day operations: suppliers, production, location, key personnel and the practical prerequisites for the business to function day to day.

10. Financial plan

Budget, income statement budget and cash flow budget, plus a clear description of the financing need — how much money is needed, and what will it be used for? This part is often the one read most carefully by a bank or investor.

11. Milestones and timeline

When does what happen? Concrete, dated milestones make the plan operational rather than merely visionary.

Should the plan look different for a bank than for yourself?

Yes, in practice. A version for internal use can be longer and more exploratory. A version for a bank or investor should be sharply prioritized around what the recipient needs to know to make a decision: business model, market position, management's competencies and — not least — the financial plan and financing need.

Frequently asked questions

Should I write my business plan myself?

It's most valuable if you're deeply involved in it yourself — the process of thinking the business through is often just as valuable as the finished document. You can certainly get sparring along the way from an advisor or accountant.

How often should a business plan be updated?

There's no fixed rule, but a plan several years old quickly loses its value as a management tool. Many update it at least once a year, or when significant changes occur — for example new products, new markets, or an upcoming change of ownership.

Is a business plan only relevant when starting a business?

No. It's just as relevant when an existing business needs to develop further, secure financing, or be sold. Read more about this in our article on the business plan's role in buying and selling a business.

Selling your business and want to know how an updated business plan can strengthen the sale process? Book a no-obligation call with us.