Write a Business Plan

Business Plan Templates

A business plan will help you understand what you need to get started. You can access a guide for writing your business plan on SBA's website. 

1. Operating resources: Think about what it will take to run the business each day. Will you need employees? What will the hours of the business be? Will you close for weekends and holidays?

2. Overall market plan: This section should answer questions like: Who are the target customers for the business? Are there any businesses providing the same service that might be in competition with your business? Would a particular location in the city be important for your business to succeed?

3. Cost and sales structure: Each product you sell costs something to make, and each service you provide takes staff time. Carefully calculate your costs so that you know how much you need to charge customers in order to make money.

4. Financial management and business growth: Using your estimates of what it will cost to open your business, operate, do marketing, and sell to customers, calculate how much money you need to start. Keep in mind that there may be a gap in time between when you start on the path to opening your business and when you receive the first profits. Have a plan to help finance your business and consider reaching out to a Community Development Financial Institution (CDFI), which will provide credit and financial services to entrepreneurs. A business plan is required if applying for funding through a bank.

Every business needs a way to get customers. Write about how you plan to advertise and sell your goods. Make sure to note what those marketing and sales activities will cost and how long they will take.

5. Understand start up costs: The key to a successful business is preparation. Before your business opens its doors, you’ll have bills to pay. Understanding your expenses will help you launch successfully.

Exceptions to Business Plans: Some Community Development Financial Institutions (CDFI) that do a lot of microlending have stopped requesting and relying on business plans. These lenders may use other factors to get a sense of whether new entrepreneurs have the knowledge and experience to execute on the idea they have for a business and the level of revenues and other financial resources needed to make the loan payments.

If you’re a new entrepreneur, consider starting small and growing over time. For example, consider selling your products at farmers markets or flea markets; hold informal dinners at your home or for family and friends before opening a full-scale catering business; or cater events or serve at pop-ups before you go to a food truck or to a restaurant or café. That way you can test your markets, products, and selling skills before you take on the expenses and debt associated with a larger venture.