Just like you shouldn’t head down a trail without a map, you shouldn’t launch a new startup without a solid business plan. This document can help guide strategy and keep your company moving in the right direction—and it’s one of the best tools for securing investor support.
Below, we’ll outline the step-by-step process of writing a business plan, share templates to get you started, and highlight expert-backed tips to ensure you get it right the first time.
What is a startup business plan, and why do I need one?
A business plan is a formal document that outlines your company, project, funding options, and execution strategy. It’s a tool for both internal planning and external communication—one that can sell potential stakeholders on your idea while aligning your team around clear business goals.
“Your business plan must serve dual purposes: as both an internal strategic document and an external fundraising tool,” said Iliya Zogovic, CEO of DBD Investment Bank. “Strike a balance between detail and readability, maintaining discipline about what truly matters to your business's success.”
A thorough business plan can help garner investors' attention, leading to funding and growth opportunities. Clearly articulating your vision, values, and direction enables you to bring the right people on board, including seasoned executives who believe in what you're building.
“A great business plan doesn’t just describe your business—it reveals the kind of founder you are,” said Jeremy Su, CEO and Co-founder of Bearly Art. “If you can convince someone of your clarity, grit, and ability to learn quickly, you're halfway there.”
What investors look for in a business plan
When pitching your business plan to an investor, craft a compelling, evidence-based story that grabs their attention and proves people want what you’re offering.
“Too many founders fall in love with their own assumptions and skip the uncomfortable step of validating them,” Su explained. “A strong minimum viable product (MVP) is one of the biggest advantages a founder can have. Whether it’s a landing page, a waitlist, a prototype, or early sales, it doesn’t have to be perfect, but it does need to prove that people care enough to engage or pay.”
Beyond the data, your business plan must reflect why you’re the right person to build this business—and how you plan to succeed. It should clearly communicate your motivation, strategy, and staying power.
“Include a compelling and clear narrative that centers your 'why' alongside robust market validation,” said Sage Quiamno, Global Strategic Advisor at Sage PR. “Investors need to see clear problem-solution alignment with real-world evidence of demand.”
Below, we’ll explore all the elements necessary to create an investor-worthy business plan for your startup.
What's included in a business plan
Here is a brief overview of a business plan and the 14 elements that should be included.
1. Your executive summary
An executive summary is a high-level introduction to your business plan used to draw readers in and sell them on your idea. It’s often a stakeholder's first—and sometimes only—impression of your business, giving them insight into your plan without requiring them to read through its entirety.
2. The business opportunity
At the top of your plan, state the endeavor you're looking to pursue. Are you a new startup or an existing company looking to grow? Describe your challenges and how you plan to work through them. This section should be a one- or two-sentence elevator pitch of your business opportunity.
“Put yourself in the investor’s seat,” advised Samyr Laine, Managing Partner and GP at Freedom Trail Capital. “What would you need to believe in order to write a check? Speak to that. Write it, then pressure-test it. Share it with someone who will poke holes in it.”
3. Your company description
When writing your company description, assume the reader knows nothing about your company. Briefly highlight your history and define who you are, identifying your values and why your company is necessary right now. Include details like your organizational structure (LLC, corporation, etc.), legal name, business address, and additional operational locations.
[Read more: Sole Proprietorship vs. LLC: Which Structure Should You Choose?]
4. Your product or service description
This section should describe your company’s offerings, including any patents, trademarks, or copyrights you’ll need to obtain, as well as how your product or service solves a real-world problem for your target audience. This will help stakeholders understand why your business is a worthwhile investment.
“You might love your product, but if you can’t explain how it becomes a business, investors won’t engage,” Laine warned.
5. Your business objectives
Your objectives section should highlight both short- and long-term goals to help stakeholders understand how you plan to grow the business. Be specific about the KPIs you’ll use to track progress and the milestones you’ll strive to achieve.
“The best business plans … tell a story and outline a credible path or narrative to progressing and bringing the vision of that story to life,” said Adam Dexter, CEO and Head Executive Founder Coach at TheStartupFounderCoach.com. “That means grounding the plan in reality while still painting a vivid, compelling future vision that the founder wants to create.”
6. Your talent description
In this section, you’ll want to introduce your team and demonstrate why they are the right fit for your business. Talk about their relevant skills, experience, and background, getting as specific as possible, and denote any percentage of ownership these individuals will have. Providing their track record will reassure potential investors that your business is backed by reliable professionals.
“Your leadership team's relevant experience deserves emphasis,” Zogovic said. “Investors back people first, ideas second.”
Explain any potential hiring plans as well. Demonstrating your intention to expand over time will show you’ve thought through your business plan extensively, both in the short- and long-term.
7. The industry analysis
While writing your plan, it’s important to recognize your industry's outlook and your potential within it. This will also help you identify your competitors and analyze their offerings in comparison to yours, so you can focus on how you might stand out among them. Including a clear competitive analysis in this section demonstrates that you understand your market, where your business fits in, and how to stand out.
“Investors aren’t just evaluating your idea—they’re evaluating you,” Su explained.
8. Your target audience
In this section, you will identify your target audience, defining their demographic, location, and other specific traits. You should describe how you’ll acquire new customers and how you’ll engage and retain them over time.
“While acquiring new customers is essential, it's a mistake to overlook ongoing customer engagement, support, and brand experience,” said Justin Kraft, Co-founder and CEO of Cast Influence Marketing and PR. “A comprehensive plan should address all customer touchpoints to ensure long-term success and retention, which ultimately also makes acquisition easier.”
9. The timeline
Outline your timeline for launching your business or project. Timelines are always subject to change, so make sure you account for alternative scenarios and setbacks. For your business plan, talk about your general timeline, its phases, and why it’s a realistic goal.
“Timing is everything,” said Lesya Liu, CEO and Founder of Boundless Agency. “Investors need to believe this moment won’t come around again. That sense of urgency is often missing.”
10. Your marketing plan
How will you get the word out about your new business or project? Identify the avenues you and your company will choose to explore and how you plan to meet your target audience there. For example, consider your social media efforts, digital marketing, and other methods that you seek to execute.
“Include your customer acquisition math,” Liu advised. “It doesn’t have to be perfect, but showing how you’ll actually find and convert customers builds so much more credibility than glossy market size slides.”
[Read more: 7 Ps of Marketing: A Guide to Building Your Marketing Plan]
You might love your product, but if you can’t explain how it becomes a business, investors won’t engage.Samyr Laine, Managing Partner and GP at Freedom Trail Capital
11. Your operations plan
A startup’s operations plan typically includes two parts—the developmental plan and the production plan.
- The developmental plan: Outline the steps required to move from planning to execution. Describe the strategies you’ll use, along with any risks or liabilities that could arise and how you’ll address them. “Be honest about risk,” Laine said. “Show that you’ve thought through what could go wrong and how you’d adjust. Resilience isn’t just about surviving setbacks. It’s about being prepared for them before they hit.”
- The production plan: This section gets into the nitty-gritty of how your business will operate day-to-day. Explain who will be in charge of what, what tools or systems you’ll use, and how key processes will run. You should also outline your potential inventory needs and name the suppliers or manufacturers you intend to work with.
12. The financial summary
Here, clearly define your cost structure and revenue streams, describing your sales methods and post-launch goals, as well as how you will achieve them. Be sure to include both your long- and short-term financial goals and benchmarks.
“Financial projections must demonstrate thoughtful assumptions, not just hockey-stick growth,” Zogovic said. “Include detailed unit economics and a clear path to positive cash flow.”
13. Your funding requirements
One of the primary reasons you write a business plan is to help obtain funding. In this section, talk about the amount of funding you'll need from investors and where that funding will go. You should also be clear about how you plan to pay back your investors through your financial plan.
“Use bottom-up projections based on realistic assumptions,” Kraft said. “Prepare for follow-up questions about customer acquisition cost, lifetime value, and burn rate. Any investor who is serious will ask these questions.”
14. The appendix
The appendix is where you can include all your supporting documents, including relevant permits, licenses, identification information, executive resumes, patents and intellectual properties, and certifications. This supplemental information provides extra context to readers and helps validate your business plan by showing you’ve done your due diligence.
How to write an executive summary
A well-written executive summary can be the difference between securing the funding you need to start your business and heading back to the drawing board. This section should capture your audience and communicate your vision.
Start by briefly explaining the problem your audience is facing and how your business will solve the problem—i.e., your value proposition. Keep it concise, engaging, and focused on the highlights, not the details.
In no more than one page, include the following key elements:
- Problem and solution.
- Mission statement.
- Company overview.
- Business objectives.
- Target audience.
- Leadership team.
- Market insights.
- Financial summary.
- Competitive overview.
- Conclusion.
Use clear, jargon-free language, and always spell out acronyms. This ensures your summary is accessible and shows you understand your business and industry without relying on buzzwords to make your case.
“Too many founders try to impress with jargon or unrealistic projections,” Laine said. “I’d rather see a clear path to your first win than a vague plan for world domination.”
Only include the most pertinent information in your executive summary—most of these topics will be explored in greater detail later in your full business plan.
[Read more: How to Register a Business Name]
Business plan template examples
While business plans can be general, it’s helpful to gear yours toward your industry. Here are five business plan templates for specific industries or situations:
- For first-time entrepreneurs: The United States Small Business Administration (SBA).
- For getting your ideas down: $100 Startup.
- For law firms: Cilo.
- For established businesses: SCORE.
- For additional industries: LawDepot.
Common business plan mistakes to avoid
As you write your business plan, watch out for these common mistakes that could undermine your hard work—or worse, cost you funding opportunities.
Neglecting the important details
When a business plan is vague, it may leave the audience with questions or doubts about your business’s foundation. Avoid this by being thorough and including all relevant details. Anticipate potential questions by sharing as much insight about your business as possible.
Ignoring your audience
Writing a business plan without your target audience in mind can lead you to emphasize the wrong priorities, overlook key details, and ultimately fail to connect with the people you’re trying to persuade.
“One of the hardest shifts for first-time founders is realizing you are not your customer,” Dexter said. “You may have been the spark, but at scale, your job is to listen to what the market is telling you and evolve accordingly.”
Embellishing the truth
Overstated projections, unsubstantiated claims, and downplayed market risks can damage your credibility, ruin investor relationships, and jeopardize your business’s future. Instead, stick with honest, accurate, and well-supported information—even if it’s less flashy.
“I've found investors—particularly when evaluating underrepresented founders—value authentic storytelling backed by data over perfection or hyperbole,” noted Quiamno.
Forgetting to proofread your plan
While it may seem simple, grammar, spelling, and formatting errors can leave a poor impression on investors and undermine your credibility. Mistakes can signal that your business isn’t professional or that you lack attention to detail. If writing isn’t your strong suit, consider hiring someone with experience and a keen eye to help polish your plan.
Considering your business plan ‘finished’
While your business plan is meant to guide your organization, it shouldn’t be treated as final. Revisit and adapt your business plan as needed to reflect changes in direction, strategy, or market conditions.
“Your plan is a living document,” Quiamno said. “The process of creating it is as valuable as the final product because it forces strategic thinking about every aspect of your business.”
Dan Casarella contributed to this article.
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