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Developing a sound business plan

A business plan is a written description of your business's future, a document that tells what you plan to do and how you plan to do it. In its simplest form, a business plan is a guide—a roadmap for your business that outlines goals and details how you plan to achieve those goals. You can visit our small business encyclopedia to learn more about business plans or our Form Net area to get the necessary forms to get started.

Developing a sound business plan

Developing a sound business plan

Your plan shows how you will get from here to there. In addition to the numbers, the financial plan should include analytical narrative – your analysis of what the numbers tell you – and the assumptions that underlie your projections.

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  • If you jot down a paragraph on the back of an envelope describing your business strategy, you've written a plan, or at least the germ of a plan. You start here, today, with certain resources and abilities.


    Developing a sound business plan

    Developing a sound business plan

    Developing a sound business plan

    To attain these five objectives, say our experts, you need to start with a financial plan that includes both a historical record and future projections. Don’t swallow the obsolete idea of the business plan must be a long, formal document, as if it were some term paper you have to write. While every business has huge benefits to gain from going through the business planning process, only a small subset needs the formal business plan document required for seeking investors or supporting a commercial loan.

    Developing a sound business plan

    This article is part of our “Business Planning Guide”—a curated list of our articles that will help you with the planning process! THE LOVE OF SPORTS ESSAY For the rest of us, this is great news because it makes the planning process much less daunting. You don’t do anything that doesn’t have a business purpose, so you don’t describe your management team (to name one example) unless you need to for outsiders. The formal document, the pitch deck, the summary memo—those are outputs of the planning process, not the actual plan.


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