A business plan is a tool for thinking clearly, not a document to file away. A useful one answers: what you sell and the problem it solves, who your customer is, how you will reach them, your pricing and the economics of delivering, your competition, and the key assumptions that must hold for the business to work. For most founders a one-to-two-page plan is enough to start; a full formal plan is mainly for raising investment or borrowing.
Decide what the plan is for
A plan to guide your own decisions can be short and blunt. A plan to raise money needs detail, financials and polish because a third party will scrutinise it. Write the version that matches the purpose; do not write a 30-page document you do not need.
The problem and your solution
State the specific problem you solve, for whom, and why your solution is a good one. Be concrete. “Helping businesses grow” is not a problem statement; “small trades firms lose quotes because they follow up by memory” is.
Your target customer
Describe the customer precisely: who they are, their situation, what they currently do, and what they would pay to change. If you are targeting several segments, rank them and start with one.
Market and competition
Show that the market is real and reachable, and be honest about competitors — including the “do nothing” and “spreadsheet” alternatives. Explain where you are genuinely better or different, not just cheaper.
Your offer and pricing
What exactly do customers buy, and what does it cost them? Sanity-check that the price covers your cost to deliver plus a margin, and that it is credible to the customer. Pricing is a strategic decision, not a leftover calculation.
How you will reach customers
Your route to market: the channels, the message, and roughly what it costs to acquire a customer. Early on this is often direct outreach and network, moving to search and other channels as you learn what works.
The economics
- Revenue: price times realistic volume
- Cost to deliver each sale
- Fixed costs to keep the business running
- Roughly how many sales to break even
- How much cash you need before revenue covers costs
Your key assumptions
List the things that must be true for the plan to work — demand at this price, a reachable channel, a deliverable cost. These are what you test first, because if one is wrong the plan changes.
Keep it living
Revisit the plan as you learn. A plan that never changes is being ignored; a plan updated with real evidence is doing its job. See business plan creation if you want help structuring one.
Frequently asked questions
How long should a business plan be?
As short as it can be while still answering the key questions honestly. One to two pages is enough for most founders starting out. A full formal plan is mainly for investors or lenders.
Do I need financial projections?
A simple version — revenue, cost to deliver, fixed costs, break-even and cash needed — yes, because it forces you to check the business can work. Detailed multi-year models are only needed for external funding.
What is the most common weakness in a business plan?
A vague customer and an untested assumption about demand. Plans fail in reality where they were vague on paper.
Should I pay for a business plan?
You can write the thinking yourself. Paid help is useful for structure, financial modelling, or preparing a plan that will be scrutinised for funding.
Working through a business plan
We can help you pressure-test the idea, the economics and the route to market before you commit.
