How To Write a Business Plan: 9 Steps, Key Types, and Expert Tips

A business plan is a roadmap to your dreams. It guides you through every decision, from how you reach customers to how you grow and stay successful. A study reveals that entrepreneurs with written business plans are 260% more likely to launch their businesses within a short period. Furthermore, companies with business plans grow about 30% faster than those without one.

Whether you are launching your D2C brand, seeking investors or partners, or expanding your business online, a clear and practical business plan helps you with direction and credibility.

In this blog, you will discover the nine important steps, key plan types, and expert tips to help you draft a business plan.

What is a Business Plan?

A business plan is a clear roadmap that outlines what your business does, who it serves, how it generates revenue, and where it’s headed. It is a document that helps you plan more effectively, make informed decisions, and stay focused on growth. Whether you are starting your business or scaling it up, a business plan shapes your ideas and strategies.

A business plan is also helpful when you are pitching to investors, applying for loans, or aligning your team. A well-crafted business plan demonstrates that you are serious about your business and prepared for growth.

What are the Common Elements of a Great Business Plan

A solid business plan helps you build clarity for your business. Here are some of the common and significant sections that your business plan must include:

• Executive Summary: It’s a quick summary of your business, like what you sell, who you serve/cater to, and why it matters.
• Business Description: It explains your business model, the industry you work in, and what makes your brand different from others.
• Research: Identify your competitors, their strengths, weaknesses, etc. Additionally, determine what sets you and your brand apart from your competitors.
• Market Analysis: Figure out your target audience, their needs, and how your product fills a gap in the market.
• Products or Services Offered: Properly describe the product range or services that you offer. Explain how they solve your customers’ issues.
• Marketing and Sales Strategy: Create a strategy to attract, convert, and retain customers, both online and offline.
• Operations Plan: Outline your logistical aspects, including supply chain, inventory management, shipping, and technological tools that will be utilised in your operations.
• Financial Plan: Include your sales projections, funding needs, investing needs, profit margins, and break-even analysis in the plan.

A Step-By-Step Guide to Structuring Your Business Plan

Once you know the key elements to include, it’s time to bring them together into a structured plan. Here’s a step-by-step guide to help you draft a business plan, such as:

Step 1: Start With the Executive Summary

This is the first section and includes a high-level summary of your business plan, including your business ideas, goals, target market, and what makes your brand unique.

Step 2: Write Your Company’s Description.

Write an introduction about your business. Include your name, location, type of business, and what you’re trying to achieve.

Step 3: Market Research

Demonstrate your understanding of the market by incorporating insights into your target audience’s behaviour, market size, and competitors. Keep this part interesting, simple, and insightful.

Step 4: Describe Your Products/Services.

Provide details of your products/services. Focus on how it solves customers’ problems, why it’s different from others, and your current and future offerings.

Step 5: Mapping Marketing and Sales Strategy

Explain in the plan how you plan to reach customers, such as through social media campaigns or digital ads. Be specific about your marketing methods and the budget required for them.

Step 6: Operations

Give a brief description of your daily operations, like sourcing, production, shipping, staffing, and tools, which can help you in your business.

Step 7: Share Financials

Break down your revenue model, pricing strategies, expenses, profits, etc. 

Step 8: Funding Requirements

If you want to secure an investment or a loan, you must provide the amount and details on how you plan to use it.

Reasons Every Entrepreneur Should Write a Plan

Every brand starts with a clear business plan. And if you’re running and launching your business, having a written plan can make a significant difference. Here are a few reasons how business plans help you:

• You may have the perfect business idea in your head, but writing it down can help you think about your business and what you are building.
• A written business plan gives you a step-by-step map to achieve your goals, like attracting customers, launching a new product, etc.
• If you are planning to raise money or take a business loan, writing a business plan can help your investors understand how you and they can generate profits.
• A clear business plan can help you explain your brand’s purpose and potential.
• From changing market trends to budget issues, your business plan helps you prepare for everything and provides a backup strategy beforehand.
• Written business plans help your business to stay on track, grow, and adapt over time.

Different Types of Business Plans and When to Use Them

The type of business plan that you choose depends on what you are trying to achieve. Some of the common types include.

Traditional Business Plan:

This is a detailed and comprehensive plan that includes a business overview, products, market research, growth strategies, financial projections, and other key elements.

It is ideal for use in fundraising, applying for business loans, or presenting your business to potential investors. It shows that you have thought through a solid plan to grow your business.

Lean Plan:

This business plan is a concise and adaptable version of a comprehensive plan. It focuses on elements such as customer proposition, key resources, customer, revenue streams, and cost.

It is best for startups in the phase of idea validation or for internal use.

One-Page Plan:

It is a concise business plan written on a single page, encompassing what your business does, who it serves, how it generates revenue, and what sets it apart from others.

It’s ideal for solo business owners or internal planning purposes.

Strategic Plan:

It focuses on long-term business direction and covers your company’s vision, goals, mission, strategic initiatives, etc.

These plans are ideal for establishing future growth goals and ensuring your business remains competitive.

Start-Up Plan:

A start-up plan is designed for launching a new business. It includes your unique new idea, market needs, target audience, launch strategy, pricing, and startup costs.

It is ideal for businesses that are still in the development stage. This is your go-to document when preparing to enter the market or pitch to investors.

Practical Tips for First-Time Business Planners

Starting your first business plan can be overwhelming. But here are some practical tips that can help you get it right from the beginning.

• Start with a basic version, such as a lean-up plan or a one-page plan, and later add more details to it.
• Your business plan should align with your target audience. So, focus on goals and how you can execute them.
• Avoid any fluff and fake promises.
• Always back up your business plan with realistic financials and practical market research. Don’t overpromise; be honest about costs, margins, timelines, etc.
• Try to understand your customers’ views, the type of industry you’re in, and your competitors to gain confidence in your plan.
• Use graphics, charts, tables, bullets, etc., wherever needed. A well-written plan is easier to understand and more engaging than lengthy texts.
• Ask a peer, mentor, or team member to review it. A secondary view with a secondary perspective can help you catch gaps or unclear sections.
• Show in your business plan that you’ve thought about risks as well and how you will handle them. This builds trust and shows that you are prepared for real business conditions.

What Not to Do When Writing Your Business Plan?

Every strong business idea can fail if your business plan misses something. Here are some of the common mistakes to avoid while writing business plans:

• Don’t start your plan by just having a written plan. Know the purpose behind drafting it, be it to secure funding, set internal goals, or launch.
• Avoid overusing buzzwords or technical terms that only you understand. Keep your language simple, clear, and direct.
• Every business has competition, whether it’s direct or indirect. Try to acknowledge those competitors and explain how you will stand out.
• Avoid overwhelming readers with pages of fluff or giving too little information.
• Missing sections, typos, and messy formatting can make your plan look unprofessional.
• People connect with purpose. To be sure, include your mission, values, or vision that shows what drives your business beyond profit.

How To Keep Your Business Plan Relevant Over Time?

As your company grows, goals change, or the market shifts, updating your business plan also becomes essential. Here are some points that you can consider to keep your plan relevant,

• Set a reminder every quarter or twice a year to review your business plan. This can help you stay aligned with changing trends and needs.
• Track your sales, marketing results, and customer retention. If the numbers don’t reflect your goals, then you must change your strategy.
• Re-evaluate your target market and marketing strategies to see that your plan reflects who you’re trying to reach.
• A price change, marketing tactic, or new service from a competitor might push you to adapt or change your business plan.
• If your business structure or team changes, you must update your business plan accordingly.
• Utilise cloud-based tools like Google Docs or Notion to ensure your plan can be updated or shared in real-time, eliminating confusion.

Tips For Presenting Your Plan to Investors or Partners

The next step after drafting the business plan is to present it. Whether you are pitching it to an investor, partner, or someone else, the way you present your strategy can make all the difference. Here are a few tips to present your business plan:.

• Be confident! Know your business plan inside out, like every detail, number, goal, target market, business model, etc.
• Start with a powerful summary of what your business does, who it serves, and why it matters.
• Utilise graphics, charts, and clear slides to simplify complex data and make it easier to understand. Try to avoid any bulky text.
• Show a realistic view of risks to show how prepared you are; try not to sugarcoat things.
• Rehearse your pitch and business plan until it’s perfect and natural. Keep detailed knowledge of what you are going to talk about. However, be sure to remain flexible so that you can respond effectively to questions and reactions.

How Does Shiprocket Checkout Streamline Online Payment Setup?

A smooth online payment setup today is a must-have for everyone. If your payment process is confusing or complex, customers may frequently abandon their carts. This is where Shiprocket Checkout helps you to simplify your online payment setup. It is a user-friendly solution that is designed to make payments easy for your customers. Here is how we help you:

• With Shiprocket Checkout, you can include different courier options, COD, wallets, UPIs, credit/debit cards, etc., all at one dashboard.
• You can customise the checkout page to add your brand logos, colours, and messages. This helps customers recall your brand. 
• We integrate a secure payment process that ensures your customers’ transfers are safe and compliant.
• We have a smart shipping workflow that reduces the manual effort and speeds up the fulfillment process.
• We help you manage returns easily while maintaining a positive brand experience.

Conclusion

A well-written business plan helps your business grow by enabling faster and smarter choices to turn your business goals and dreams into reality.

Take that first step, put your ideas on paper, and stay flexible. While building your D2C brand, smart tools and partners like Shiprocket Checkout can help you streamline the experience and payment process for your customers.

Are you ready to turn your business vision into reality? Start drafting your business plan today and take control!