Whether you are starting a business, seeking funding or planning a new venture inside a company, a business plan needs a clear structure. The sections below are the standard framework used by lenders, investors and business schools. Adapt the depth to your audience.
1. Executive summary
A one-page overview of the whole plan: what the business does, who it serves, why it will succeed, what you need (such as funding) and the headline financials. Write it last, but put it first. Many readers will only read this page.
2. Company description
What the business is, its legal structure, location, history (if any), mission and goals. Keep it factual and brief.
3. Market analysis
Evidence that there is demand:
- Target market: who your customers are and how many there are.
- Market trends: growth, changes and opportunities.
- Competitor analysis: who else serves these customers and how you are different.
4. Products or services
What you sell, the problem it solves, pricing and what makes it better or different.
5. Marketing and sales strategy
How you will reach customers and win them: channels, messaging, sales process and customer retention.
6. Operations plan
How the business will run day to day: suppliers, premises, technology, processes and key milestones.
7. Management and organisation
Who is running the business, their experience and any gaps you plan to fill. Investors often back people as much as ideas.
8. Financial plan
- Sales forecast
- Profit and loss forecast
- Cash flow forecast (often the most important for small businesses)
- Break-even analysis
- Key assumptions behind the numbers
9. Funding request (if relevant)
How much you need, what it will be used for and how it will be repaid or what investors get in return.
10. Appendices
Supporting material: CVs, market research, letters of intent, detailed financials.
Did you know? In the UK, the government-backed Start Up Loans scheme asks applicants for a business plan and a cash flow forecast as part of the application. Getting these two documents right is often the difference between a plan that is approved and one that is not.
How long should it be?
- Internal or early-stage plan: 5 to 10 pages.
- Bank or investor plan: 15 to 30 pages plus appendices.
- One-page plan: useful for testing an idea quickly.
Clarity matters more than length.
Common mistakes
- Overly optimistic forecasts with no stated assumptions.
- Ignoring competitors or claiming there are none.
- No clear goals or milestones. See should goals come before or after a business plan.
The bottom line
A strong business plan covers the summary, company, market, offer, marketing, operations, team, financials and funding, supported by evidence. Our Business Planning and Goal Setting course walks through each section with real examples, and our overview of entrepreneurship, innovation and business planning explains how planning fits into building a venture.