business plan nz

How to write a business plan

Writing a business plan will help nail down your idea and give you a blueprint for executing it.

What is a business plan?

A business plan describes your product or service, identifies who the customer is, explains why they need your product or service, and shows how you’ll make money from that opportunity.

Why write a business plan

How you write a business plan will depend on what you need it to do. There are a couple of key jobs a business plan can have. It can:

• explain a business idea
• convince lenders or investors to put money behind that business idea

It doesn’t take a book to do the first job. You can write a business plan that’s short, to the point, and easy to update. That may be all you ever need. But if you’re going for funding, your business plan will need to be a good deal longer and more comprehensive.

Why every business should start with a one-pager

Even if you will eventually write a long business plan, a one-pager is a great place to start. It could take as little as an hour to do your first draft and will make your idea stronger. Writing about customers, competitors, income and expenses will help develop your thinking.

How to write a one-page business plan

You’ll see in the example below that there are nine sections, or things to write about. So give yourself just a small space to write about each. Keeping it short will help you focus on what’s important.

Download a one-page business plan template.

When you need a longer business plan

The greater the risk you’re taking, the more comprehensive your plan should be. For instance, you’ll need to write a long-form business plan if you’re going to fund it with other people’s money. Banks and investors will expect it.

How to write a longer business plan

Long-form business plans touch on all the same things as a one-pager, but they go into more detail and contain fewer assumptions.

Back-of-the-napkin numbers are replaced by forecasts and budgets. And guesstimates for things like costs, market size, customer preferences, and competitor weaknesses need to be backed up with proof. It’s a good idea to involve an accountant or bookkeeper in developing the budgeting and finance sections.

Contents of a business plan:

• Executive summary: A short summary of the main points of your business plan. Write it last.
• Company overview: Identify your industry, what you’re selling, and how you’ll charge.
• Products or services: Include a description of the problem you’re solving for customers.
• Market analysis: Describe your target market, and examine the competition.
• Risk assessment: Flag potential hurdles (including assumptions that could be proved wrong).
• Marketing and sales plan: How will you find customers and make sales? How many sales will there be?
• Milestones: What needs to happen and when?
• Progress reporting: When and how will you report against the milestones?
• Team: Who will be involved in the business? Note their skills and responsibilities.
• Budget: Estimate your costs and income (and any debt that you plan to take on).
• Finance: Show how you’ll fund the business.

You can also add an appendix with any supporting or background documents.

Make a start by downloading our free business plan template.

How not to write a business plan

Avoid these common business planning mistakes:

• Underestimating how much money it will take to get started
• Failing to budget for the first few months of operation (before revenues start flowing)
• Expecting sales to ramp up too fast
• Relying too heavily on one or two customers (or suppliers)
• Not including contingencies for unexpected delays or costs

For more information, visit the MBIE page on writing a business plan , which comes complete with templates to help get you started.

Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.

How to start a business

Thousands of new businesses open every day. If all those people can do it, why not you? Here’s what to do, and when.

Your business idea is clearly inspired. But it helps to check you’re not the only one who thinks so.

It’s time to run some numbers on your business idea. Budgeting and forecasting help with that.

Your prices can influence the number of sales you make and the profit you earn on each transaction.

Your business structure can affect how much tax you pay, and how you're treated by the law.

If you’re starting a business, then you’ll need to get familiar with some accounting basics.

After all the excitement of deciding to start a business, you’ll have some paperwork to do.

Treat your website like an online version of a storefront. It’s the first impression for many customers and prospects.

Now that you’re in business, you want to stay there. Xero’s got resources and solutions to help.

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Get serious with our free business plan template

Turn your business vision into a reality with our free, customisable business plan template. Available in single and multi-page format.

Download your free business plan template

Complete the form and we’ll send you our free, customisable template, so you can get down to business.

Bring your business ideas to life

Our easy-to-use, guided templates give you a roadmap for success.

Map your goals

Start moving in the right direction with a plan that covers all of the essential business basics. Outline your executive summary, vision statement and future goals.

Define products and services

Highlight your unique offerings and market strategy, including what you'll sell (and how you'll sell it). It’s time to show the world how you’re better than anyone else at what you do.

Attract investors

Show potential partners why they should invest in your business. A comprehensive financial forecast is key when looking to secure funding.

Why you need a business plan

Whether you’re an established company or just starting out, a business plan is vital for success. A well thought out plan helps you consider the essential elements of your business and define a winning strategy.

And through the process of writing a business plan, you’ll uncover new opportunities and unlock your business’s true potential.

We’re here to help you grow your business

Access everything you need to start planning your vision and how you’ll achieve it.

A guided experience

Our business plan templates are intuitive and easily accessible, for every business. Each section has helpful tips, prompts and instructions to guide you through all the components of your business plan.

Designed for your needs

We know that writing a business plan is not a one-size-fits all activity. That’s why we’ve put together both a streamlined single-pager and a comprehensive multi-pager. Now you can map out your needs at a high level, or outline your strategy in precise detail.

Helpful resources

Looking for more help on how to write a business plan? We’ve got you covered. Check out our resources on  how to start a business , or our  12-step guide on how to write a plan for your business .

All your questions answered about the MYOB business plan template

What’s included in the business plan template.

Both our single and multi-page templates cover all the essential elements of a business plan, including an business details, vision statement and goal setting, market strategy and customer demographics, funding and investment information. Our multi-pager adds further detail and contains helpful guidance for each section.

Is the business plan template customisable?

Yes! Our templates are completely editable, customisable and available in multiple formats, allowing you the flexibility to choose the structure that best suits your needs.

Do I need a business plan to start a business?

Technically no, however as the saying goes, if you fail to plan you are planning to fail. For instance, how can you measure how things are going, if you don’t know where you're at?

Why create a business plan?

A strong business plan can help you plan for the future, enabling you to foresee potential roadblocks and author the roadmap that will drive you toward success. Through the process of planning, you’ll analyse all the important aspects of your business, provide certainty to future investors, reduce risk and plot an actionable pathway to achieving your ultimate vision.

How often should I update my business plan?

It’s a good idea to update your plan to align with the current state of business, market and strategy. Set aside some time on a regular, periodic basis to review your plan and see what’s working and what needs adjusting.

Planning your business

How to write a simple business plan

This step-by-step guide describes why a business plan is so important, the key elements, and how to write an effective plan for your business.

In this article

The purpose of a business plan.

A business plan involves answering some key questions about your business:

• Your objectives – where do you want your business to go?
• Your tactics – how will it get there? 
• Your budget – what will it cost?

There’s no one set way to write a business plan. The trick is to keep it short and simple. 

How to create an effective business plan

Create a simple, yet effective business plan: from setting SMART objectives to conducting a SWOT analysis, understanding your customers to marketing strategies.

Why you need a business plan

A business plan gives you direction, challenges you to really think through your ideas, helps you prioritise scarce resources, and builds your credibility.

In fact, having a business plan can mean the difference between success and failure. Research published in the Harvard Business Review shows that start-up businesses with a written business plan were 16% more likely to succeed than those without one — .

Getting started

Our business plan template makes it easier to write your business plan. It breaks your plan down into sections, with tips and examples at each stage. You can enter information as you go and save your plan to print out and update later.

Below we’ll explain the key information you should include in your business plan, using the structure in our template as a guide.

Executive summary

Think of this as your ‘elevator pitch’. Imagine you’re in an elevator with someone you want to invest in your business, and you only have until the elevator gets to their floor to convince them. You need to get straight to the point and describe what your business (or business idea) is about in no more than three or four short paragraphs.

People usually write this section last once they’ve thought through all the other aspects of their business plan.

Your business goals and objectives

Write down where your business is going and what you want to achieve. Your objectives should be realistic, otherwise you’ll lose motivation. 

They should also be SMART:

• S pecific – if the goal is too general, you will lose focus
• M easurable – so you can tell whether you’re on track or need to make changes
• A chievable – large goals can seem daunting, so break them down into smaller steps
• R elevant – your objectives should directly contribute to your overall business goals
• T ime framed – having a deadline provides urgency and focus.

Examples of SMART goals might include:

• Financial – to achieve turnover of $x and profits of $y by the end of the financial year.
• Strategic – to gain two corporate customers by the end of the year.
• Operational – to increase productivity by 20% by the end of the second year.
• Sales – to increase e-commerce sales by 10% by 1 June next year.

Once you’ve established your goals, identify who is responsible for achieving them.

Your products and services

Describe exactly what you’re offering, the key features of your products or services, and how they compare with what your competitors are offering. 

Pricing is key. Consider and explain how you’ll price your offering. This figure shouldn’t be plucked out of thin air – it should be based on solid research.

SWOT analysis

A SWOT analysis outlines your:

• Opportunities 

This helps you compare your business against your competitors, build on your strengths and opportunities, and mitigate your weaknesses and threats.

When you’re doing your SWOT analysis think about both internal factors (such as staffing) and external factors (like market or demographic trends). Above all, be honest.

This is also a good time to think about your competitive advantage. Determine why customers should choose your business over competitors. Are you competing on price, service, aftersales support, unique knowledge and expertise, or a distinct brand proposition? It’s important to be aware of your competitive edge, as your customers will not know if you don’t know either.

Your target customer

Who are you targeting your products or services at? How old are they, where do they live, and what are their interests? Understanding your customer will help you shape your products and marketing in a way that is most likely to reach them and appeal to them.

Your marketing strategy and sales planning

Consider how you will promote your business and what you offer. Will this be through advertising, direct marketing, social media, PR campaigns, or a combination of these methods? Determine how they can buy from you, such as online, through distributors, or at your own retail outlet.

Set some sales targets and develop a strategy to achieve them. For example, decide if you’ll focus on selling to new customers, or increasing sales to existing customers. Determine if training your staff in new sales methods is required. 

Set a budget for achieving your sales plan and be clear about how you’ll measure success.

Assets and equipment

Determine what assets or equipment you will need to get your business up and running, and keep it operating. These one-time expenses are also known as capital costs, and include purchases of buildings, land, vehicles, machinery, and equipment.

Financial forecasts

Your financial forecasts are one of the most important parts of your business plan. They show how much money you need to make to cover your operating expenses and make a profit. They’re also critical if you’re approaching investors. 

At a minimum, your business plan should include a cash flow forecast and a balance sheet forecast. Your accountant or an ANZ Business Specialist can help you review your financial assumptions and help ensure they’re realistic.

Your human resources (HR) policies

Great people are key to the success of any business. How will you attract, train, retain, and reward the right people – and ensure you get the best from them?

Reviewing and updating your business plan

No market stays the same – your business will face different challenges and opportunities over time. That’s why it’s essential that you regularly review and update your business plan. Annually is a good rule of thumb.

Contact an ANZ Business Specialist

Our specialists understand your kind of business and the challenges you face as a business owner. We can help you figure out how to make your business grow and succeed.

Popular planning your business articles

Essential tips for business goal setting, how to write your business elevator pitch, how to gain awareness for a new business, how to plan for a new business, business plan template, calculators, cash flow forecast calculator.

Calculate your cash flow forecast with our simple template. This will help you understand how much cash you have coming in and going out of the business each month and can be a good indicator of the need for an overdraft or other lending.

Break-even point calculation

Your break-even point indicates the minimum level of sales or income that you need to meet overhead expenses and achieve your profit margin.

Important information

We’ve provided this material as a complimentary service. It is prepared based on information and sources ANZ believes to be reliable. ANZ cannot warrant its accuracy, completeness or suitability for your intended use. The content is information only, is subject to change, and isn’t a substitute for commercial judgement or professional advice, which you should seek before relying on it. To the extent the law allows, ANZ doesn’t accept any responsibility or liability for any direct or indirect loss or damage arising from any act or omissions by any person relying on this material.

Please talk to us if you need financial advice about a product or service. See our financial advice provider disclosure at anz.co.nz/fapdisclosure

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5 Best Free Business Plan Templates 2024

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Whether you're starting a new business or looking to update your existing plan, having a well-crafted business plan is essential for guiding your growth. If you're unsure of where to begin, we've compiled a list of the top free online business plan templates specifically designed for New Zealand businesses. These templates will provide you with the necessary structure and guidance to set your goals and steer your business in the right direction.

1. Ministry of Business, Innovation and Employment Business Plan Templates

MBIE, in collaboration with Stats NZ, has developed two Business Plan templates to cater to the needs of aspiring entrepreneurs and established businesses alike. The comprehensive full business plan template, available in Word format, is specifically designed for those venturing into the world of business. It offers a ready-to-use structure complete with detailed explanations and convenient links throughout. On the other hand, the quick-focus template, presented as a PDF, is ideal for regular business health and strategy check-ins, making it perfect for quarterly or yearly assessments. Fill it out by hand for a more personalized touch.

Tip: MBIE recommends using Stats NZ’s Data for Business website to find useful business tools and statistics.

2. ANZ Biz Hub Business Plan Tool

Are you new to business planning? If so, this convenient online template is perfect for beginners. It will guide you through the process of writing a comprehensive business plan step-by-step, providing helpful prompts and tips for each section. Once you've completed your plan, you can easily download and print the finished version in Word document format.

3. One-Page Business Plan By The $100 Start-up

This template is a valuable tool for exploring innovative business ideas, as well as for experimenting with new products, services, or promotional strategies for existing businesses. It can also serve as a concise summary of your comprehensive business plan, which you can refer to during your monthly or quarterly business planning sessions.

4. Microsoft Office Business Plan Template

Microsoft Office provides a diverse selection of complimentary business document templates that seamlessly integrate with their suite of products. These templates are equipped with a variety of charts and graphs to effectively showcase your market research and forecasting data. Additionally, they offer comprehensive, step-by-step instructions throughout the templates to assist you in creating a professional and organised business plan.

Tip: Don't forget to add your logo and change the document colours and font to suit your brand

5. Strategyzer Business Model Canvas

The Strategyzer Business Model Canvas is not your typical business plan template. Instead, it is a powerful visual tool that allows you to effectively map out all the crucial elements of your business and gain a deeper understanding of how they interconnect. This canvas serves as an excellent brainstorming aid, enabling you to jot down all your brilliant ideas, important facts, and essential figures before diving into the creation of your comprehensive business plan. It's the perfect way to organise your thoughts and set a solid foundation for your future success.

Tip: Use the Business Model Canvas as a tool for running a thought-starter exercise with your team to review and refine your strategy and goals before you write your business plan.

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Free business plan template for small business

Create a professional business plan with our our easy-to-use business plan template., the importance of a business plan.

Writing a business plan gives your business the best chance of success helping you to flesh out your business proposal, outline key business processes and gives an action plan of what you want to achieve over time. While it can seem overwhelming, the time and effort you put in is worth it for your long-term success. Use our free business plan template below to get you started!

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Business plan template FAQs

What should a business plan include.

A business plan consists of a single document with different sections that represent different aspects of your business. Most business plans include the following:

• Business overview
• Executive summary
• Team & Management
• Product & Services
• Market Analysis
• Competitor Analysis
• Marketing & Promotions
• Financial Analysis
• Future & Goals

How do you write a business plan?

Writing a multi page business plan when you are just starting out can seem overwhelming. The key to getting started is to keep it simple and add to it as you grow. Start with key headings (or use our template) and some bullet points mapping out your business overview, vision, market analysis and financial forecasts.

Tips for writing a business plan?

Check out this blog article for more information

7 Tips for writing a Business Plan >

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Create a successful business plan.

A thorough business plan is priceless for any business - if you're trying to grow your business in a crowded marketplace, it could be your biggest asset.

Current state vs future business goals.

Think about where your business is now and where you want it to be in five years' time. You should make note of this in an executive summary that introduces your business plan. It's best to write the summary after you finish writing the plan itself.

The purpose of your business.

The first part of your business plan should detail the reason for your business - its purpose. Detail your business structure, the number of staff you have, your physical address and region where you're based. You may have locations spread out across New Zealand or the world if you export.

Explain how your business is different from your competition, the products or services you've developed, and define your competitive advantage. Consider:

• Where the opportunities are for your business - are there gaps in the market that you can exploit with a new product or service?
• Your strengths and weaknesses - what does your business do well and where is there space for improvement? For example, do you have outstanding customer service?
• Any threats to your business on the horizon - are you aware of any new competitors or marketing campaigns from your rivals that could impact heavily on your bottom line?

Formulate a SWOT analysis

Have a brainstorming session with your staff to identify your business's strengths, weaknesses, opportunities and threats. You can even ask your loyal customers for their opinions.

A SWOT analysis helps you pinpoint the positives and negatives of your business, both internally and in your control (strengths and weaknesses), and externally and outside of your control (opportunities and threats).

Your competitive advantage.

A competitive advantage is simply what you do better than anyone else. It's important to be specific about why consumers choose your business over your competitors' businesses. What exactly is it about your operation that is an advantage?

• Prime location - say you have a burger joint that's in a prime location, on the main street with huge foot traffic. Your competitors are off the main street, giving you a key competitive advantage over them
• Regular cut-price discounts - perhaps you sell electronics and are well known for having sales competitors can't match every two weeks. This would mean your sales can be marketed as a main advantage
• Personalised after-sales service - perhaps you have a business that sells and installs ovens, and sends staff to people's homes one month after each sale. If competitors aren't offering similar after-sales service, this is a crucial competitive advantage.

The smarter you can be about developing and promoting your competitive advantage, the better placed your business will be to succeed. Be careful not to generalise with words like 'price' or 'quality' - you have to be more specific.

Scope out your competitors.

When building your business plan, describe your main competitors. Consider all possibilities - you may have competitors on the same street, elsewhere in your town or city, throughout the country, worldwide and on the Internet. As soon as new competitors enter the market, you'll want to know about them too.

There may be competitors who aren't in your precise sector of business, but you may still be competing with them for the same consumer dollar.

It's a good idea to also do a SWOT analysis on each of your main competitors. Then make use of this information by assessing how your business could reduce your competitors' strengths and opportunities, while taking advantage of their weaknesses and threats.

No market without marketing.

How you'll position your business in the marketplace and how you'll continue to trade in the long-term should be answered with an intelligent marketing strategy. Plan your marketing budget and how you'll use it to help return a profit.

Market research will enable you to focus your marketing budget on targeted consumers, rather than just sporadic advertising. Detail how you're going to get the information you need to target potential consumers with channels such as print, TV, radio, social media, paid search, online display or email.

Position your product or service

Take into account the four Ps of marketing when coming up with your strategy. They are:

• Product - having products (or services) that are right for the market you're promoting to
• Price - ensure your products or services are selling for a price that will make your target customers feel like they received value for money
• Promotion - explore the numerous opportunities to promote your offerings. Some examples include magazine ads, flyers, Facebook posts and press releases
• Place - think about where and how you'll get your products or services to your customers. They have to be able to easily access them.

Creating a business plan is a process of thinking through all the variables that are going to affect your sales. 

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Things you should know.

The material on this webpage is provided for information purposes only and is not a recommendation or opinion.

The material on this webpage does not take your particular financial situation or goal into account. We recommend you seek independent legal, financial and/or tax advice.

Links to other sites are provided for convenience only and Westpac accepts no responsibility for the availability or content of such websites.

Creating Your Business Plan

A good business plan will guide business development, give focus to a team, and create measurable actions & goals. essentially, you should be able to use it every day..

Why You Need a Business Plan

When seeking funding, banks or investors will want to see your business plan and believe that it’s built for success (thus, reducing their risk). For this alone, it’s good to come prepared. But getting your financials in shape is only the first benefit...

A business plan will become your roadmap for achieving goals and your greater vision. By following it you can keep track of what’s important and make smarter decisions that lead to constructive action.

What’s more, a business plan will bring your team together and help them get on the same page. So why not get them involved from the beginning? Having your team participate in a business planning session will increase their moral buy-in and create accountability for results.

And for those teams of one, a business plan will help organise your thoughts and create focus. Ready to get started? 

What Your Plan Needs:

Forget writing up a 10-20 page document that details everything about your business. It will look great, but will you ever read it again?

 One page is all you need.

One page is easy to modify as your environment (market, financial, competition, etc.) changes. It’s easy to stick to a wall and refer to. And it’s easy to communicate with your team. Now, here’s what you need on that page. ‍

Vision and Goals

What will your business look like in 5 years? How do you imagine your life/workload balance? Do you want to be the leader in your marketplace? Are you building something to sell or as a retirement income?

You may have a simple vision or a grandiose one. Your vision may change over time too. It’s not fixed in concrete, but rather gives you something to shoot for.

Once you have your vision you can set goals to get there. These need to be SMART : 

• Achievable with a stretch
• Relevant to the vision
• Time-bound (when will we achieve the goal?) ‍

Running a SWOT analysis is important for crafting a bespoke and effective action plan. The planning technique will have you examine four main aspects of your business:

• Opportunities

What to do with your analysis? Put it into action! Use strengths to your advantage, make moves on opportunities, and ensure weaknesses/threats are addressed - not ignored. ‍

Unique Selling Proposition

What problem are you solving? What is the value to the customer? Why will they buy from you? 

Answering these questions will shape your marketing decisions, customer interactions, and staff education. 

Ultimately, you need to have a proposition that is unique, valuable to the customer, and will make them want to buy from you. Will you guarantee that they will get that value?  

Core Values

Your core values will give potential clients a feel of your business persona and how you fit with them . We use ours to guide how we deal with customers, staff behaviour, and to measure that behaviour.  ‍

Key Performance Indicators are simply indicators for measuring business performance. Normally you will have financial ones such as revenue, profitability, expenses, and positive cashflow. And you may even measure the direct cost percentage against industry standards. 

Non-financial indicators, however, differ greatly between businesses. They could focus on social media audience, job profitability, response times for customer support, or upselling rate.

When devising KPIs, think about what’s important for you to keep on top of things. Typically you’ll want 4-5 main indicators with additional KPIs for each specific area of your business. ‍

Financial Targets

This requires building a budget , cash flow forecasting, and setting measurable targets for each week/month/quarter/year depending on what works for your business. ‍

Action Plan

What actions must the business take to achieve its goals and vision? What actions must we take to build on strengths, take advantage of opportunities, and resolve weaknesses/threats?

The best way to create your action plan is to set high-level actions and then devise what you will do in the next month/quarter to complete the action or to progress for longer-term goals.

Note: make sure every action has an owner and a deadline. This gives everyone focus and accountability. ‍

Collecting Data: Business Systems and Processes

You may find your action plan requires reviewing your systems and processes to enable collecting data for measuring. 

Your financial system (we recommend Xero) should deliver all key financial measurements which may be fed by other systems such as inventory, e-commerce, project management, or job management.

Linking these and getting your processes efficient is critical to making this job easier and minimising the impact on staff. You don’t want to spend hours collecting information to tell you how many billable hours each staff member has performed!

Plan for Change

It’s inevitable that your situation will change which is why you need to make your plan adaptable...

How will you use this plan and modify it as business needs and your environment changes? When will you formally review the plan? Monthly, quarterly, annually? 

I don’t know many people (none) these days who do it annually. Most businesses are reviewing their plans monthly as the environment is so changeable and quick reactions are essential for keeping ahead of the game. An added benefit of setting regular review points is that it reduces your brain drain by knowing new issues are managed in a controlled way.

Finally, keeping your plan to one page makes it easy to sit down, run through what has changed, and modify your action plan accordingly.

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How to create a simple business plan for your small business

A business plan is a document created to provide a clear road map for your business. It outlines the fundamentals of your business: the services or products you will offer, the financial plans, marketing strategies, and your business structure. By laying out these elements in a written document, you gain a clear understanding of your vision.

What exactly is a business plan?

A business plan is a roadmap that you create for your business. It details the fundamental principles of your business and how you will go about generating revenue and ultimately a profit. This may cover the different strategies that you are going to use, your organisational structure and the products or services that you are going to market.

By putting everything down on paper, you are committing your thoughts to a workable plan.

Why have a business plan?

Going through the process of writing a business plan forces you to think strategically about your business. If you are presenting to potential partners or investors, they will want to know that you have detailed the opportunity, the risks, your product or service and have a good understand of your marketplace.

Gain clarity in processes

Business plans help to give you clarity about the processes that you are going to follow. A plan puts a timeframe on your goals, which can tune your dreams into actions. A business plan is not about having a day-to-day schedule of what you’re going to do; it is about developing your long-term roadmap and vision.

Define you unique selling points

If you’re starting your own business, you’re probably already thinking about what sets you apart from competitors. Coming up with your unique value proposition (UVP) or unique selling proposition (USP) creates a strong foundation for all your marketing messages and strategies for engaging and acquiring new customers.

Defining your target customers

You need to figure out who your ideal customers are. Your target market or target customers are a group of consumers or organisations that are most likely to buy your products or services. Marketing to these buyers is the most effective and efficient approach. The alternative – marketing to everyone – can be both inefficient and expensive.

Defining your focus

The day-to-day of running a business can be overwhelming. It’s easy to get sidetracked by a multitude of things that aren’t necessarily the most valuable thing you can do for your business.

By having a business plan, you can continually revert to the roadmap and understand which activities are going to drive you towards your goals

What should go into your business plan?

A business plan will usually include an executive summary, a description of the business, your goals and objectives, details about the product and or service, marketing direction and strategies, how the business will be managed and operated, and the financial plan for your business. The below bullet points may be helpful in structuring your document.

Don’t obsess over every detail to start with. That will make the plan long and hard to change and adapt as you go. Keep it short and concise initially.

Executive summary

• Target Market
• Customer Descriptions
• The Opportunity
• Competitor Analysis
• Financial Plan
• Operating Plan

Although this should be the first section in your plan, it’s often easier to write it last. It’s one of the hardest sections to write well, as it needs to be concise but capture the main points. You have to answer the question “what do you do?” in as few words as you can, while making sure it’s interesting and memorable. This summary is sometimes called an elevator pitch. Try to imagine you’re riding a few floors with a potential investor, adviser, employee, or customer.

Your elevator pitch could be something like: “I run a business called (name) that provides (product/service category) mainly for (target market). We provide (unique customer benefit/business purpose) by (how you achieve that). It’s something we believe in and do really well.”

Target market

If you try to sell your products or services to everyone, it’ll be almost impossible to outdo your various competitors. You’ll also risk wasting time and money on people who don’t need or value what you sell. That could mean disappointing a lot of people, who then have a less-than-positive story to share about you.

To define your target market, begin with the big picture then speak with some potential customers and trusted advisers to see if your assumptions are correct. Gradually refine your market definition as you continue testing your ideas. Here are some thoughts to get you started.

• Will you sell to businesses or consumers?
• Will you make isolated sales to customers or develop an ongoing relationship with regular clients?
• If you’re selling to businesses, describe the size, turnover, and sectors you have in mind.
• What business roles will benefit from your product or service, and who is likely to make the purchase decision – CEO, sales manager, HR director, marketing manager, property manager, etc.
• Their age group, gender identity, socio-economic attributes
• Where they’re located
• Particular employment, profession or interest groups you might be targeting

Customer descriptions

Once you’ve tested and defined your target market, it can help to create a few specific customer descriptions. These are sometimes called customer personas. They describe fictional individuals who represent your main customer groups, as though you know them personally. Business customer personas contain more about the individual and their work. Consumer personas focus more on their life away from work.

While often used for marketing purposes, personas can also help you, your employees, and your advisers to make better decisions based on customer needs. You can even use an image library picture of someone the persona would typically look like. Before long you’ll be referring to them by name, and whether a business decision will benefit so-and-so or which option they’d prefer.

Here’s an example for a Christchurch-based expert gardening service designed for older people.

Mary has been a keen gardener for as long as she can remember. She knows a lot about plants and takes great pride in her garden. She likes the exercise and being out in the fresh air. Mary is straight up and direct. She enjoys a good laugh but doesn’t have much time for pretenders. Now in her 80s and still reasonably well off, she’s living alone in the family home in Fendalton but finds it increasingly difficult to keep things in order. Many of her friends have moved into retirement villages and they seem to visit less and less often. Sometimes she feels a bit lonely. Her daughter has suggested hiring a gardener, but Mary says it would have to be someone trustworthy who knows what they’re doing and can work alongside her. It would also be handy if they could get supplies for her from the local garden centre. And maybe stay for a cuppa from time to time. As with many things these days, her daughter says she’ll see what she can find and then they can talk it over.

The opportunity

In this section you can describe your assessment of the immediate market potential, but also demonstrate your understanding of how the business can grow. What is the wider potential, how will you reach that market and scale up to meet the demand? Can you sell your products or services online? Will you have to hire more people? Are physical premises required in new locations? How will you ensure you retain your point of difference and service standards? What new opportunities will expansion bring?

Competitor analysis

Ignoring the competition will only lead to problems and it’s a sure sign you’re not very business-savvy at all. Although it may be hard to focus on what could undermine your business, it’s an essential part of planning for success. Here are some ideas for this section.

• List all direct competitors – the ones that are primarily focused on selling the same service or products as you, particularly if it’s to the same market segments.
• List your indirect competitors – the ones that cross over with your business, but their focus isn’t the same as yours.
• Write down the challenges or barriers that will help to prevent more competitors appearing in the market.
• Describe what sets you apart from competitors, your unique selling proposition (USP) and why it’s likely to remain unique to your business. For example, if you sell products, you might have a way to differentiate your business based on quality, service, price, or range. This needs to be believable, so stick to facts not wishful thinking.

Financial plan

Include high-level financial information about your set-up costs, ongoing expenditure and projected income. An accountant or some types of business software can help you create a draft cash flow forecast that shows how your business will survive. A summary is all you need to include here.

Marketing plan

Most marketing plans address what are known as the five Ps. Just remember to keep things brief and stick to the facts.

• Product: What are you selling? What need or issue does it address? What are its unique benefits? How will it be packaged/delivered? Is there a warranty? And so on.
• Price: What will you charge? How does this cover your expenses? How do you know your customers are willing to pay this amount? Does it fit with your brand? How does it compare to your competitors’ charges? What is your expected profit per item?
• Place: Where will you sell your product/service? How does this make it easy to reach your target customers or meet their expectations? How will this change as you expand? Will you have temporary variations for things like events or seasonal changes?
• Promotion: How will you promote your product or service? How does this align with your target customer groups? How have you worked out which methods will provide the best return on investment?
• People: How will you attract the best employees? Collaborate with others? Build strong connections with customers? Make it easy for people to become your social promoters or ‘brand evangelists’?

Operating plan

Focusing on the present or immediate future, describe the day-to-day tasks required to make your business successful. Like a project plan, this section needs to include what needs to be done, who does each task and when does it have to be done by. It should cover all aspects of the business at a high level. It basically shows in a simplified form that you’ve thought all your processes through, including the points at which they depend on inputs and outputs from each other.

What skills and experience does your business need to succeed and where will they come from? What people will you need to employ? What skills and experience can you tap into as required, through the likes of contractors, advisers, and business professionals? How will you identify, attract, and retain the best you can afford and those you can trust?

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Business Plan: What It Is and How to Write One in 9 Steps

Business plans aren’t just for entrepreneurs who need to secure funding—they can help you plan and evaluate new ideas or growth plans, too. Find out how to write a business plan and get the most out of the process in this comprehensive guide.

A great business plan can help you clarify your strategy, identify potential roadblocks, determine necessary resources, and evaluate the viability of your idea and growth plan before you start a business .

Not every successful business launches with a formal business plan, but many founders find value in the process. When you make a business plan, you get to take time to step back, research your idea and the market you’re looking to enter, and understand the scope and the strategy behind your tactics.

Learn how to write a business plan with this step-by-step guide, including tips for getting the most of your plan and real business plan examples to inspire you.

What is a business plan?

A business plan is a strategic document that outlines a company’s goals, strategies for achieving them, and the time frame for their achievement. It covers aspects like market analysis , financial projections, and organizational structure. Ultimately, a business plan serves as a roadmap for business growth and a tool to secure funding.

Often, financial institutions and investors need to see a business plan before funding any project. Even if you don’t plan to seek outside funding, a well-crafted plan becomes the guidance for your business as it scales.

The key components of a business plan

Putting together a business plan will highlight the parts of your company’s strategy and goals. It involves several key business plan components that work together to show the roadmap to your success.

Your business plan’s key components should include: 

• Executive summary: A brief overview of your entire plan.
• Company description: An explanation of what your business does and why it’s unique. 
• Market analysis: Research on your industry, target market, and competitors.
• Organization and management: Details about your business structure and the people running it.
• Products or services: A description of what you’re selling and how it benefits customers. 
• Customer segmentation: A breakdown of your target market into different groups.
• Marketing and sales plan: The strategy for promoting and selling your products and services.
• Logistics and operations: An overview of how your business will run its daily activities and manage resources.
• Financials: A complete look at projected income, expenses, and funding needs. 

How to write a business plan in 9 steps

• Draft an executive summary
• Write a company description
• Perform a market analysis
• Outline the management and organization
• List your products and services
• Perform customer segmentation
• Define a marketing plan
• Provide a logistics and operations plan
• Make a financial plan

Few things are more intimidating than a blank page. Starting your business plan with a structured outline and key elements for what you’ll include in each section is the best first step you can take.

Since an outline is such an important step in the process of writing a business plan, we’ve put together a high-level overview to get you started (and help you avoid the terror of facing a blank page).

Once you have your business plan template in place, it’s time to fill it in. We’ve broken it down by section to help you build your plan step by step.

1. Draft an executive summary

A good executive summary is one of the most crucial sections of your business plan—it’s also the last section you should write.

The executive summary distills everything that follows and gives time-crunched reviewers (e.g., potential investors and lenders) a high-level overview of your business that persuades them to read further.

Again, it’s a summary, so highlight the key points you’ve uncovered while writing your plan. If you’re writing for your own planning purposes, you can skip the summary altogether—although you might want to give it a try anyway, just for practice.

An executive summary shouldn’t exceed one page. Admittedly, that space constraint can make squeezing in all of the salient information a bit stressful—but it’s not impossible. 

Your business plan’s executive summary should include:

• Business concept. What does your business do?
• Business goals and vision. What does your business want to accomplish?
• Product description and differentiation. What do you sell, and why is it different?
• Target market. Who do you sell to?
• Marketing strategy. How do you plan on reaching your customers?
• Current financial state. What do you currently earn in revenue?
• Projected financial state. What do you foresee earning in revenue?
• The ask. How much money are you asking for?
• The team. Who’s involved in the business?

2. Write a company description

This section of your business plan should answer two fundamental questions: 

• Who are you?
• What do you plan to do? 

Answering these questions with a company description provides an introduction to why you’re in business, why you’re different, what you have going for you, and why you’re a good investment. 

For example, clean makeup brand Saie shares a letter from its founder on the company’s mission and why it exists.

Clarifying these details is still a useful exercise, even if you’re the only person who’s going to see them. It’s an opportunity to put to paper some of the more intangible facets of your business, like your principles, ideals, and cultural philosophies.

Here are some of the components you should include in your company description:

• Your business structure (Are you a sole proprietorship, general partnership, limited partnership, or incorporated company?)
• Your business model
• Your industry
• Your business’s vision, mission, and value proposition
• Background information on your business or its history
• Business objectives, both short and long term
• Your team, including key personnel and their salaries

Brand values and goals

To define your brand values , think about all the people your company is accountable to, including owners, employees, suppliers, customers, and investors. Now consider how you’d like to conduct business with each of them. As you make a list, your core values should start to emerge.

Your company description should also include both short- and long-term goals. Short-term goals, generally, should be achievable within the next year, while one to five years is a good window for long-term goals. Make sure your goal setting includes SMART goals : specific, measurable, attainable, realistic, and time-bound.

Vision and mission statements

Once you know your values, you can write a mission statement . Your statement should explain, in a convincing manner, why your business exists, and should be no longer than a single sentence.

Next, craft your vision statement : What impact do you envision your business having on the world once you’ve achieved your vision? Phrase this impact as an assertion—begin the statement with “We will” and you’ll be off to a great start. Your vision statement, unlike your mission statement, can be longer than a single sentence, but try to keep it to three at most. The best vision statements are concise.

3. Perform a market analysis

Market analysis is a key section of your business plan, whether or not you ever intend for anyone else to read it.

No matter what type of business you start, whether a home-based business or service-based, it’s no exaggeration to say your market can make or break it. Choose the right market for your products—one with plenty of customers who understand and need your product—and you’ll have a head start on success. 

If you choose the wrong market, or the right market at the wrong time, you may find yourself struggling for each sale. Your market analysis should include an overview of how big you estimate the market is for your products, an analysis of your business’s position in the market, and an overview of the competitive landscape. Thorough research supporting your conclusions is important both to persuade investors and to validate your own assumptions as you work through your plan.

How big is your potential market?

The potential market is an estimate of how many people need your product. While it’s exciting to imagine sky-high sales figures, you’ll want to use as much relevant independent data as possible to validate your estimated potential market.

Since this can be a daunting process, here are some general tips to help you begin your research:

• Understand your ideal customer profile. Look for government data about the size of your target market , learn where they live, what social channels they use, and their shopping habits.
• Research relevant industry trends and trajectory. Explore consumer trends and product trends in your industry by looking at Google Trends, trade publications, and influencers in the space.
• Make informed guesses. You’ll never have perfect, complete information about your total addressable market. Your goal is to base your estimates on as many verifiable data points as necessary.

Some sources to consult for market data include government statistics offices, industry associations, academic research, and respected news outlets covering your industry.

Read more: What is a Marketing Analysis? 3 Steps Every Business Should Follow

SWOT analysis

A SWOT analysis looks at your strengths, weaknesses, opportunities, and threats. 

That involves asking questions like: 

• What are the best things about your company? 
• What are you not so good at? 
• What market or industry shifts can you take advantage of and turn into opportunities? 
• Are there external factors threatening your ability to succeed?

SWOT is often depicted in a grid or otherwise visual way. With this visual presentation, your reader can quickly see the factors that may impact your business and determine your competitive advantage in the market.

Competitive analysis

There are three overarching factors you can use to differentiate your business in the face of competition:

• Cost leadership. You have the capacity to maximize profits by offering lower prices than the majority of your competitors. Examples include companies like Mejuri and Endy .
• Differentiation. Your product or service offers something distinct from the current cost leaders in your industry and banks on standing out based on your uniqueness. Think of companies like Knix and QALO .
• Segmentation. You focus on a very specific, or niche, target market, and aim to build traction with a smaller audience before moving on to a broader market. Companies like TomboyX and Heyday Footwear are great examples of this strategy.

To understand which is the best fit, you’ll need to understand your business as well as the competitive landscape.

You’ll always have competition in the market, even with an innovative product, so it’s important to include a competitive overview in your business plan. If you’re entering an established market, include a list of a few companies you consider direct competitors and explain how you plan to differentiate your products and business from theirs.

For example, if you’re selling jewelry , your competitive differentiation could be that, unlike many high-end competitors, you donate a percentage of your profits to a notable charity or pass savings on to your customers.

If you’re entering a market where you can’t easily identify direct competitors, consider your indirect competitors—companies offering products that are substitutes for yours. For example, if you’re selling an innovative new piece of kitchen equipment, it’s too easy to say that because your product is new, you have no competition. Consider what your potential customers are doing to solve the same problems.

4. Outline the management and organization

The management and organization section of your business plan should tell readers about who’s running your company. Detail the legal structure of your business. Communicate whether you’ll incorporate your business as an S corporation or create a limited partnership or sole proprietorship.

If you have a management team, use an organizational chart to show your company’s internal structure, including the roles, responsibilities, and relationships between people in your chart. Communicate how each person will contribute to the success of your startup.

5. List your products and services

Your products or services will feature prominently in most areas of your business plan, but it’s important to provide a section that outlines key details about them for interested readers.

If you sell many items, you can include more general information on each of your product lines. If you only sell a few, provide additional information on each. 

For example, bag shop BAGGU sells a large selection of different types of bags, in addition to home goods and other accessories. Its business plan would list out those categories and key details about the products within each category.

Describe new products you’ll launch in the near future and any intellectual property you own. Express how they’ll improve profitability. It’s also important to note where products are coming from—handmade crafts are sourced differently than trending products for a dropshipping business, for instance.

6. Perform customer segmentation

Your ideal customer, also known as your target market, is the foundation of your marketing plan , if not your business plan as a whole. 

You’ll want to keep this buyer persona in mind as you make strategic decisions, which is why an overview of who they are is important to understand and include in your business plan.

To give a holistic overview of your ideal customer, describe a number of general and specific demographic characteristics. Customer segmentation often includes:

• Where they live
• Their age range
• Their level of education
• Some common behavior patterns
• How they spend their free time
• Where they work
• What technology they use
• How much they earn
• Where they’re commonly employed
• Their values, beliefs, or opinions

This information will vary based on what you’re selling, but you should be specific enough that it’s unquestionably clear who you’re trying to reach—and more importantly, why you’ve made the choices you have based on who your customers are and what they value.

For example, a college student has different interests, shopping habits, and pricing sensitivity than a 50-year-old executive at a Fortune 500 company. Your business plan and decisions would look very different based on which one was your ideal customer.

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7. Define a marketing plan

Your marketing efforts are directly informed by your ideal customer. That’s why, as you outline your current decisions and future strategy, your marketing plan should keep a sharp focus on how your business idea is a fit for that ideal customer.

If you’re planning to invest heavily in Instagram marketing or TikTok ads , for example, it makes sense to include whether Instagram and TikTok are leading platforms for your audience. If the answer is no, that might be a sign to rethink your marketing plan.

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Most marketing plans include information on four key subjects. How much detail you present on each will depend on both your business and your plan’s audience.

• Price: How much do your products cost, and why have you made that decision?
• Product: What are you selling and how do you differentiate it in the market?
• Promotion: How will you get your products in front of your ideal customer?
• Place: Where will you sell your products? On what channels and in which markets?

Promotion may be the bulk of your plan, since you can more readily dive into tactical details, but the other three areas should be covered at least briefly—each is an important strategic lever in your marketing mix.

8. Provide a logistics and operations plan

Logistics and operations are the workflows you’ll implement to make your business idea a reality. If you’re writing a business plan for your own planning purposes, this is still an important section to consider, even though you might not need to include the same level of detail as if you were seeking investment.

Cover all parts of your planned operations, including:

• Suppliers. Where do you get the raw materials you need for production, or where are your products produced?
• Production. Will you make, manufacture, wholesale , or dropship your products? How long does it take to produce your products and get them shipped to you? How will you handle a busy season or an unexpected spike in demand?
• Facilities. Where will you and any team members work? Do you plan to have a physical retail space? If yes, where?
• Equipment. What tools and technology do you require to be up and running? This includes everything from software to lightbulbs and everything in between.
• Shipping and fulfillment. Will you be handling all the fulfillment tasks in-house, or will you use a third-party fulfillment partner?
• Inventory. How much will you keep on hand, and where will it be stored? How will you ship it to partners if required, and how will you approach inventory management ?

This section should signal to your reader that you’ve got a solid understanding of your supply chain, with strong contingency plans in place to cover potential uncertainty. If your reader is you, it should give you a basis to make other important decisions, like how to price your products to cover your estimated costs, and at what point you anticipate breaking even on your initial spending.

9. Make a financial plan

No matter how great your idea is—and regardless of the effort, time, and money you invest—a business lives or dies based on its financial health. At the end of the day, people want to work with a business they expect to be viable for the foreseeable future.

The level of detail required in your financial plan will depend on your audience and goals, but typically you’ll want to include three major views of your financials: an income statement, a balance sheet, and a cash-flow statement. It also may be appropriate to include financial data and projections.

Here’s a spreadsheet template that includes everything you’ll need to create an income statement, balance sheet, and cash-flow statement, including some sample numbers. You can edit it to reflect projections if needed.

Let’s review the types of financial statements you’ll need.

Income statements

Your income statement is designed to give readers a look at your revenue sources and expenses over a given time period. With those two pieces of information, they can see the all-important bottom line or the profit or loss your business experienced during that time. If you haven’t launched your business yet, you can project future milestones of the same information.

Balance sheets

Your balance sheet offers a look at how much equity you have in your business. On one side, you list all your business assets (what you own), and on the other side, all your liabilities (what you owe). 

This provides a snapshot of your business’s shareholder equity, which is calculated as:

Assets - Liabilities = Equity

Cash flow statements

Your cash flow statement is similar to your income statement, with one important difference: it takes into account when revenues are collected and when expenses are paid.

When the cash you have coming in is greater than the cash you have going out, your cash flow is positive. When the opposite scenario is true, your cash flow is negative. Ideally, your cash flow statement will help you see when cash is low, when you might have a surplus, and where you might need to have a contingency plan to access funding to keep your business solvent .

It can be especially helpful to forecast your cash-flow statement to identify gaps or negative cash flow and adjust operations as required.

📚 Read more: Cash Flow Management: What It Is & How To Do It (+ Examples)

Why write a business plan?

Investors rely on business plans to evaluate the feasibility of a business before funding it, which is why business plans are commonly associated with getting a business loan. 

Business plans also help owners identify areas of weakness before launching, potentially avoiding costly mistakes down the road. “Laying out a business plan helped us identify the ’unknowns’ and made it easier to spot the gaps where we’d need help or, at the very least, to skill up ourselves,” says Jordan Barnett, owner of Kapow Meggings .

There are several other compelling reasons to consider writing a business plan, including:

• Strategic planning. Writing out your plan is an invaluable exercise for clarifying your ideas and can help you understand the scope of your business, as well as the amount of time, money, and resources you’ll need to get started.
• Evaluating ideas. If you’ve got multiple ideas in mind, a rough business plan for each can help you focus your time and energy on the ones with the highest chance of success.
• Research. To write a business plan, you’ll need to research your ideal customer and your competitors—information that will help you make more strategic decisions.
• Recruiting. Your business plan is one of the easiest ways to communicate your vision to potential new hires and can help build their confidence in the venture, especially if you’re in the early stages of growth.
• Partnerships. If you plan to collaborate with other brands , having a clear overview of your vision, your audience, and your business strategy will make it much easier for them to identify if your business is a good fit for theirs.
• Competitions. There are many business plan competitions offering prizes such as mentorships, grants, or investment capital. 

If you’re looking for a structured way to lay out your thoughts and ideas, and to share those ideas with people who can have a big impact on your success, making a business plan is an excellent starting point.

Business plan types

Business plan types can span from one page to multiple pages, with detailed graphs and reports. There’s no one right way to create a business plan. The goal is to convey the most important information about your company for readers.

Common business plans we see include, but are not limited to, the following types:

Traditional business plans

These are the most common business plans. Traditional business plans take longer to write and can be dozens of pages long. Venture capitalist firms and lenders ask for this plan. Traditional business plans may not be necessary if you don’t plan to seek outside funding. That’s where a lean business plan comes in.

Lean business plans

A lean business plan is a shorter version of a traditional business plan. It follows the same format, but only includes the most important information. Businesses use lean business plans to onboard new hires or modify existing plans for a specific target market. If you want to write a business plan purely for your own planning purposes when starting a new small business, a lean business plan is typically the way to go. 

Nonprofit business plans

A nonprofit business plan is for any entity that operates for public or social benefit. It covers everything you’ll find in a traditional business plan, plus a section describing the impact the company plans to make. For example, a speaker and headphone brand would communicate that they aim to help people with hearing disabilities. Donors often request this type of business plan.

📚 Read more: 7 Business Plan Examples to Inspire Your Own (2024)

7 tips for creating a small business plan

There are a few best practices when it comes to writing a business plan. While your plan will be unique to your business and goals, keep these tips in mind as you write.

1. Know your audience

When you know who will be reading your plan—even if you’re just writing it for yourself to clarify your ideas—you can tailor the language and level of detail to them. This can also help you make sure you’re including the most relevant information and figure out when to omit sections that aren’t as impactful.

2. Have a clear goal

When creating a business plan, you’ll need to put in more work and deliver a more thorough plan if your goal is to secure funding for your business, versus working through a plan for yourself or your team.

3. Invest time in research

Sections of your business plan will primarily be informed by your ideas and vision, but some of the most crucial information you’ll need requires research from independent sources. This is where you can invest time in understanding who you’re selling to, whether there’s demand for your products, and who else is selling similar products or services.

4. Keep it short and to the point

No matter who you’re writing for, your business plan should be short and readable—generally no longer than 15 to 20 pages. If you do have additional documents you think may be valuable to your audience and your goals, consider adding them as appendices.

5. Keep the tone, style, and voice consistent

This is best managed by having a single person write the plan or by allowing time for the plan to be properly edited before distributing it.

6. Use a business plan template

You can also use a free business plan template to provide a skeleton for writing a plan. These templates often guide you through each section—from financial projects to market research to mission statement—ensuring you don’t miss a step.

7. Try business plan software

Writing a business plan isn’t the easiest task for business owners. But it’s important for anyone starting or expanding a business. 

Fortunately, there are tools to help with everything from planning, drafting, creating graphics, syncing financial data, and more. Business plan software also has business plan templates and tutorials to help you finish a comprehensive plan in hours, rather than days.

A few curated picks include:

• LivePlan : the most affordable option with samples and templates
• Bizplan : tailored for startups seeking investment
• Go Small Biz : budget-friendly option with industry-specific templates

📚 Read more:  6 Best Business Plan Software Platforms (2024)

Common mistakes when writing a business plan

Other articles on business plans would never tell you what we’re about to tell you: Your business plan can fail. 

The last thing you want is for time and effort to go down the drain, so avoid these common mistakes:

• Bad business idea. Sometimes your idea may be too risky for potential investors or too expensive to run, or there’s no market. Aim for small business ideas that require low startup costs.
• No exit strategy. If you don’t show an exit strategy, or a plan for investors to leave the business with maximum profits, you’ll have little luck securing capital.
• Unbalanced teams. A great product is the cost of entry to starting a business. But an incredible team will take it to the top. Unfortunately, many business owners overlook a balanced team. They focus on potential profits, without worrying about how it will be done operationally. 
• Missing financial projections. Don’t forget your balance sheet, cash flow statements, P&L statements, and income statements. Include your break-even analysis and return-on-investment calculations in your financial projections to create a successful business plan.
• Spelling and grammar errors. All the best organizations have an editor review their documents. If someone spots typos while reading your business plan, sloppy errors like those can evoke a larger sense of distrust in your capabilities to run a successful company. It may seem minor, but legibility and error-free writing helps make a good impression on your business plan’s audience. 

Updating and revising a business plan

Business plans aren’t static documents. The business world moves fast and your plan will need to keep up. You don’t want it to get stale. 

Here’s a good rule of thumb for business plan revisions:

• Monthly: Update KPIs like sales, website traffic, and customer acquisition costs. Review your cash flow. Is your money situation as expected? Make the necessary changes.
• Quarterly : Are you hitting your targets? Be sure to update your financial performance, successful marketing campaigns, and any other recent milestones achieved.
• Yearly : Think of this as a big overhaul. Compare projections to actuals and update your forecasts. 

When updating your plan, don’t just go with your gut. Use data like surveys and website analytics to inform each update. Using outdated information will only lead to confusion and missed opportunities.

Remember not to just update one part of your plan—it’s all connected. Fortunately, with business plan software you can easily give your plan attention and help your business thrive. 

How to present a business plan

Here are some tips for presenting your business plan to stakeholders.

Understand your audience

Start by doing homework on who you’ll be presenting to. Are they investors, potential partners, or a bank? Each group will have different interests and expectations. 

Consider the following about your presentation audience:

• Background: What’s their professional experience?
• Knowledge level: How familiar are they with your industry?
• Interests: What aspects of your plan will excite them most?
• Concerns: What might make them hesitant about your idea?

Depending on who you’re presenting to, you can tweak your presentation accordingly. For example, if you’re presenting to a group of investors, you’d probably want to highlight financial projections and market analysis. 

Structure your presentation

Once you know your audience, you can organize your presentation. Think of this as the story you’ll tell listeners. A well-structured presentation helps listeners follow along and remember key points. 

Your opening should grab attention and give a snapshot of what’s to come. It’s kind of like an elevator pitch that gives an overview of your business idea. 

From there, break your presentation into clear sections:

• Problem: What issue are you solving?
• Solution: How does your business address this problem?
• Market: Who are your potential customers?
• Competition: Who else is in this space, and how are you different?
• Business model: How will you make money?
• Financial projections: What are your expected costs and revenues?
• Team: Who’s involved, and what makes them qualified?

Use visual aids to support your points. Graphs, charts, and even simple illustrations can make your information more digestible. Remember to practice your timing, too. A good presentation flows smoothly, giving each section the right amount of attention for its intended audience. 

Handle objections and questions

Facing objections or questions can be nerve-wracking, but it’s actually a great opportunity. It shows your listeners are engaged and thinking critically about your idea. The key is to be prepared and stay calm. 

Try to anticipate potential questions. Put yourself in the listener’s shoes: What would you want to know if you were them? Come up with clear answers to these questions ahead of time.

When handling questions:

• Listen carefully: Make sure you fully understand the question before answering.
• Stay positive: Even if the question seems critical, respond with enthusiasm.
• Be honest: If you don’t know something, it’s OK. Offer to find out and follow up. 

Use questions as a way to highlight the strengths of your business plan. If a question needs more thought or refresh, it’s perfectly fine to say, “That’s a great question. I’d love to look further into it and get back to you with a detailed answer.”

Handling questions well shows that you’re knowledgeable, thoughtful, and open to feedback—all things that will impress listeners and make them feel confident in your business plan. 

Prepare your business plan today

A business plan can help you identify clear, deliberate next steps for your business, even if you never plan to pitch investors—and it can help you see gaps in your plan before they become issues. 

Whether you’re working on starting a new online business idea , building a retail storefront, growing your established business, or purchasing an existing business , you now understand how to write a business plan that suits your business’s goals and needs.

Feature illustration by Rachel Tunstall

Business plan FAQ

How do i write a business plan.

Learning how to write a business plan is simple if you use a business plan template or business plan software. Typically, a traditional business plan for every new business should have the following components:

• Executive summary
• Company description, including value proposition
• Market analysis and competitive analysis
• Management and organization
• Products and services
• Customer segmentation
• Marketing plan
• Logistics and operations
• Financial plan and financial projections

What is a good business plan?

A good business plan clearly communicates your company’s purpose, goals, and growth strategies. It starts with a strong executive summary, then adequately outlines idea feasibility, target market insights, and the competitive landscape. 

A business plan template can help businesses be sure to follow the typical format of traditional business plans, which also include financial projections, details about the management team, and other key elements that venture capital firms and potential investors want to see.

What are the 3 main purposes of a business plan?

The three main purposes of a business plan are: 

• To clarify your plans for growth
• To understand your financial needs
• To attract funding from investors or secure a business loan

What are the different types of business plans?

The types of business plans include startup, refocusing, internal, annual, strategic, feasibility, operations, growth, and scenario-based. Each type of business plan has a different purpose. Business plan formats include traditional, lean, and nonprofit. Find a business plan template for the type of plan you want to write.

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Tauranga City Council pauses hotel and convention centre plan amid funding uncertainty

An artist's impression of what Te Manawataki o Te Papa, Tauranga's future civic precinct, will look like.

By Libby Kirkby-McLeod of RNZ

The Tauranga City Council has paused looking at developing a convention centre and hotel.

The move comes as central Government directs councils to “ rein in the fantasies ” and get back to core business.

In March 2024, the city’s commissioners (who ran the city at the time) approved the preparation of a business case to “fully examine the costs, risks, and benefits” of having a hotel and conference centre as part of Te Manawataki o Te Papa .

Developing a business case was anticipated to cost up to $200,000 and there was an existing budget in the council’s long-term plan to cover the cost.

The findings of the business case were to be reported back to the council in the second half of this year.

However, council confirmed that developing the business case was on hold.

“Work on preparing the business case is on hold while we investigate funding opportunities for the project,” said the council’s general manager of city development and partnerships, Gareth Wallis.

Wallis said council wanted to wait until it knew more about these funding opportunities before committing to work that might not be needed.

A summary of development costs for the proposed hotel and conference centre was estimated at over $147 million in March. A report to the commissioners said that the success of the conference centre would be dependent on new hotel supply.

“Establishing funding for the conference centre is likely to provide investor confidence, thereby encouraging private sector funding for the hotel development.”

The council said it was exploring a wide variety of central government and private sector funding opportunities and wanted to pause the business plan until it knows which pathway it might want to pursue.

“There’s no point spending ratepayer funds on developing information that might not be needed,” a council spokesperson said.

New mayor Mahé Drysdale said he supported placing the business case on hold until the council knew more about how a hotel development could be funded.

“From the outset, this was envisaged largely as a private sector investment opportunity, with council’s involvement being as a facilitator and the landowner.”

2019 Statistics New Zealand data showed that Tauranga was far behind neighbouring cities when it came to the number of hotel rooms available, having 494 compared to 687 in Hamilton and 1828 in Rotorua.

In March 2023, property development and investment partner Willis Bonds prepared a report for the council which identified that when it came to hotel space in the city there was “current evidence of market failure, where the private sector is unable to fulfil a public need”.

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