How to Write a Business Plan That Works

Starting a business can be exciting, but without a clear plan, it's easy to get lost. Whether you're launching a new product, opening a shop, or offering services online, a solid business plan is essential. It helps you understand your goals, anticipate challenges, and map out your path to success. In this guide, we’ll walk you through how to write a business plan that works – practical, purposeful, and ready to impress investors.

What is a Business Plan?

Before we dive in, let’s clarify what a business plan actually is. A business plan is a written document that outlines your business goals and explains how you intend to achieve them. It covers everything from your target market and marketing strategy to financial forecasts and operational plans. A good business plan helps you stay on track and is often required when applying for loans or attracting investors.

Now, let’s break down how to write a business plan that works – one that’s not just a document, but a living guide for your business.

1. Start with a Clear Executive Summary

The executive summary is the first thing people will read, but it should be written last. Think of it as a snapshot of your entire plan. It should include:

A short description of your business
Your mission statement
A summary of your products or services
Key financial information
Future plans and goals

Although it’s short, the executive summary is crucial. It’s your first chance to grab attention, so make it clear, concise, and compelling.

Example:
"GreenLeaf is an eco-friendly cleaning company based in Manchester. We provide non-toxic, sustainable cleaning services for homes and offices. Our goal is to reduce chemical waste in local communities while offering affordable and effective solutions."

2. Describe Your Business

This section is where you introduce your business in detail. It should explain:

Your business name and location
What your business does
Your business structure (sole trader, partnership, limited company)
The history behind your idea
What makes your business unique

When thinking about how to write a business plan that works, this section should feel personal yet professional. Share your passion and the problem you're solving.

Tip: Highlight what sets your business apart – your unique selling point (USP). This shows readers why your business is worth paying attention to.

3. Conduct Market Research

No plan is complete without a deep understanding of your market. This section should answer:

Who are your target customers?
What are their needs and habits?
Who are your competitors?
What are the market trends?

How to gather this information:

Use surveys or interviews with potential customers
Read industry reports and online reviews
Visit competitor websites and physical locations
Use tools like Google Trends, Statista, or local government data

Example:
"Our target market includes environmentally conscious households and small businesses in Greater Manchester. Surveys show that 65% of residents would switch to an eco-friendly cleaner if prices were competitive."

4. Outline Your Products or Services

Now’s the time to showcase what you’re offering. This section should explain:

What products or services you provide
The benefits they bring to customers
How your offerings compare to competitors
Future plans for new products or features

Use clear and simple language to explain how your product or service works. If possible, include diagrams, photos, or product mock-ups.

Don’t forget: If you’re creating something new, explain how it works and how you’ll protect it – such as through patents, copyrights, or trademarks.

5. Develop a Marketing and Sales Strategy

No matter how good your product is, people won’t buy it if they don’t know about it. A solid marketing plan shows how you’ll attract and retain customers. This section should cover:

Your branding (logo, tone of voice, style)
Your pricing strategy
Where and how you'll advertise (social media, print, TV, etc.)
Promotional offers or loyalty schemes
Your sales process (online checkout, in-store purchase, B2B sales, etc.)

How to write a business plan that works here? Make your marketing realistic and budget-friendly. You don’t need to be on every platform – just the ones your customers use.

Example:
"We’ll use Instagram and TikTok to target eco-conscious millennials, supported by a referral programme that rewards existing customers for introducing new clients."

6. Include an Operational Plan

This section shows how your business will run day-to-day. It's especially important if you're applying for funding, as it demonstrates that you’ve thought about logistics and management.

Include:

Your location and facilities
Equipment and technology required
Supply chain and stock management
Staff roles and hiring plans
Key suppliers or partners

Example:
"We will operate from a small warehouse in Salford, using electric vans for local deliveries. Our cleaning staff will be hired and trained in-house, and we’ll partner with EcoSource UK for our non-toxic cleaning supplies."

7. Set Up a Management and Organisation Structure

Who’s running the business? Even if you’re a solo founder, it’s useful to show how tasks are divided and how decisions are made.

Include:

The leadership team (founders, directors, advisors)
Team roles and responsibilities
An organisational chart (optional but helpful)
Plans for hiring or outsourcing

Investors want to know that the right people are in place. Highlight relevant experience and skills, but keep it brief.

Tip: If you're still building your team, include a timeline for hiring.

8. Create Financial Projections

Now we get to the numbers – one of the most important sections in your business plan. Financials show how your business will make money and manage costs. This section should include:

A startup cost breakdown
Profit and loss projections (12 months minimum)
Cash flow forecast
Balance sheet
Break-even analysis

Don’t worry if it sounds daunting. You don’t need to be a financial expert. Use spreadsheets, and ask an accountant or mentor for help if needed. There are also free templates online.

Key advice: Be realistic and back up your figures with research. Don’t just guess – use market data, past experience, or pilot results.

9. Include Funding Requirements (if applicable)

If you're seeking investment, loans, or grants, be clear about what you need and how it will be used.

Answer these questions:

How much funding do you need?
What will the money be spent on?
What’s the return on investment?
Will the funding be a loan, equity, or grant?

Be specific. Investors don’t just want to know how much – they want to know why and how.

Example:
"We are seeking £30,000 to fund two electric vehicles, staff training, and digital marketing over the first 12 months. This will allow us to service up to 100 clients monthly and reach break-even by month 10."

10. Write an Appendix (Optional but Useful)

An appendix is a good place to add supporting information without cluttering the main sections of your plan. You might include:

Market research data
Charts and graphs
Product images
Legal documents
CVs of key staff
Licences, contracts, or permits

It shows that you’ve done your homework and adds credibility to your plan.

Bonus Tips: How to Write a Business Plan That Works

Keep it Simple and Clear

Avoid jargon or complicated language. A business plan should be easy to understand by anyone, even if they don’t know your industry. Use headings, bullet points, and short paragraphs.

Tailor It to Your Audience

If you’re writing your plan to get funding, focus on profitability and market demand. If it’s for internal use, highlight goals and operational plans.

Update It Regularly

A business plan isn’t a one-time document. Review it every few months and update it as your business grows or changes. This keeps you focused and adaptable.

Use Visuals

Graphs, charts, and infographics can make your financials and market data easier to understand. Visuals also make your plan more engaging to read.

Use Templates If Needed

If you're unsure where to start, many free business plan templates are available online. Just be sure to personalise it so it reflects your business properly.

Common Mistakes to Avoid

Even with the best intentions, people often make mistakes when writing a business plan. Here are a few to watch out for:

Being too vague: Use concrete numbers, examples, and data.
Overestimating sales: Be optimistic but grounded in reality.
Ignoring the competition: Every business has competition, direct or indirect.
Underestimating costs: Include everything – from rent and insurance to software and marketing.
Writing too much: Keep it focused. Around 15-20 pages is ideal.

Conclusion: A Business Plan That Works Is One You Use

Knowing how to write a business plan that works isn’t just about impressing investors – it’s about setting yourself up for success. A well-thought-out plan gives your business direction, helps you make informed decisions, and keeps you on track.

Whether you’re launching your first startup or growing an existing business, your plan should reflect your vision, your strategy, and your practical steps to get there.

And remember – your business plan isn’t just a box to tick. It’s your roadmap, your pitch, and your daily guide. Keep it close, update it often, and let it evolve as your business does.