Writing a Business Plan: Who It's Really For

Why Most Business Plans Collect Dust

Let's get this out of the way: most business plans are written once, printed, handed to a bank, and never opened again. That's a waste.

A business plan should be a working document. Something you reference when you're deciding whether to hire, when to expand, or whether a new service line is worth the risk. If yours doesn't do that, you either wrote it wrong or wrote it for the wrong audience.

Who Your Business Plan Is Actually For

You. First and foremost. A business plan forces you to think through the logic of your business before you bet your savings on it. It makes you answer hard questions: Who is your customer? Why would they choose you? How do you make money after expenses?

Your partners. If you have a co-founder or business partner, a plan gets you aligned. Disagreements about direction are cheaper on paper than in the field.

Lenders and investors. Yes, banks want to see a plan. But they're looking for specific things: cash flow projections, collateral, and evidence you've thought past the first six months. The SBA has specific guidance on what lenders expect to see in a plan.

The Core Sections You Need

Executive Summary

Write this last. It's a one-page overview of everything below. If someone reads only this section, they should understand what your business does, who it serves, how it makes money, and what you need.

Company Description

What do you do? What problem do you solve? What's your legal structure? Keep it tight. Two paragraphs, not two pages.

Market Analysis

Who are your customers? How big is the market? What trends affect demand? This is where you prove you understand the playing field. Use real data from the Census Bureau and Bureau of Labor Statistics to back up your claims.

Organization and Management

Who runs what? If you're a one-person operation, that's fine. Describe your role and any contractors or advisors. If you have a team, map out who owns which responsibilities.

Products or Services

What exactly are you selling? How is it delivered? What's your pricing model? Be specific. "We do renovations" is not enough. "We specialize in kitchen and bathroom remodels for homes built between 1960-1990 in the greater metro area" tells a real story.

Marketing and Sales Strategy

How do customers find you? How do you close deals? What's your sales cycle look like? This section should be practical, not aspirational. If you get most of your work from referrals, say that and describe how you nurture referral relationships.

Financial Projections

This is where most people struggle. You need at minimum:

• Revenue projections for 12 months (monthly) and 3 years (annually)
• Expense breakdown including fixed costs (rent, insurance, salaries) and variable costs (materials, subcontractors)
• Cash flow statement showing when money comes in and goes out
• Break-even analysis showing the volume you need to cover costs

Don't fabricate numbers. Use industry benchmarks and your actual costs. Being wrong by 20% is fine. Being wrong by 200% means you didn't do the work.

Funding Request

If you're seeking capital, state exactly how much you need, what it's for, and how you'll pay it back. Lenders want specificity. "I need $150,000 for equipment, a work truck, and three months of operating capital" is far better than "I need money to get started."

Keep It Alive

Review your plan quarterly. Compare projections to actuals. Update your market analysis when conditions change. A business plan that evolves with your business is worth ten times more than one that sits in a drawer.

The best plans are short, honest, and used. Aim for 15-20 pages, not 50. If you can't explain your business clearly in that space, you might not understand it well enough yet.