How to Make a Business Plan (and Why You Need One)
Starting or growing a business is exciting, but it can also feel overwhelming. Whether you’re just beginning to explore an idea or looking to scale an existing business, a business plan is a key tool that can set you up for success.
Think of your business plan as your roadmap—a guide to where you want to go and how you’re going to get there. Let’s dive into the importance of a business plan, when to start, and how to create one!
When Should You Make a Business Plan?
There’s never a bad time to create or revisit a business plan, but here are a few times when having one can be especially helpful:
- When You’re Just Starting Out: If you’re exploring a new idea, writing a plan helps you organize your thoughts, identify potential challenges, and create a clear path forward.
- When Seeking Funding: Whether you’re applying for a loan or pitching to investors, a solid business plan shows you’re serious and have thought through every detail.
- When You’re Ready to Grow: Thinking about expanding your business or wanting to increase your capacity/income? A business plan helps you assess resources, set goals, and stay focused as you scale.
- When You Need a Reset: Even established businesses can benefit from revisiting or updating their plans to reflect new goals or market conditions. If you’re feeling lost of unsure of next steps, this can help get you back on track.
How to Make a Business Plan
Now that we know WHEN to make a business plan, let’s talk about how to get started. And trust us- it doesn;t have to be super elaborate or “perfect.” Although more details can help make your path forward more clear, getting some things down on paper (or device) is a great first step. Here are a few tips to get you started:
- Start With an Executive Summary: This is a brief overview of your business—who you are, what you do, and what you’re aiming to achieve. Think of it as your elevator pitch on paper.
- Define Your Mission and Goals: What problem does your business solve, and what are your long-term objectives? Be clear and specific about your purpose and the impact you want to make.
- Know Your Audience: Whether it’s customers, investors, or partners, understanding your target audience is crucial. Include details about who they are and how your business helps meet their needs.
- Crunch the Numbers: Include financial details like startup costs, product/service pricing, revenue projections, and any anticipated expenses. It doesn’t have to be perfect, but you need to show you’ve done the math.
- Stay Flexible: This is a living document. It’s okay if things change as you go—just make sure to update your plan regularly.
Why a Business Plan Matters
And finally, the WHY. Beyond being a requirement for some funding opportunities, a business plan can:
- Boost Your Credibility: When you have a clear, well-thought-out plan, people take you more seriously. This can help you attract investors, secure partnerships, or even build trust with your team.
- Strengthen Your Commitment: Putting your goals and strategies in writing makes them feel more real. It’s a commitment to yourself and your business.
- Keep You Focused: Running a business can pull you in a hundred different directions. A business plan helps you stay focused on what matters most.
Ready to Take the Next Step?
If you’re ready to create or improve your business plan, HOPE2Women is here to help. Our mission is to connect women entrepreneurs and small business owners with the tools and resources they need to succeed.
We offer free business coaching services tailored to your needs—whether you’re just starting out, navigating growth, or preparing to scale. Plus, through our partnership with Verizon you can access Verizon Small Business Digital Ready for FREE.
This platform gives you access to tons of free courses and events for small business owners on topics like:
- Writing a business plan
- Understanding contracts
- Determining your salary
- Understanding small business loans
- And so much more!
These resources are designed to help small business owners like you thrive and take your dreams to the next level. No matter where you are in your journey, HOPE2Women is here to guide and support you!