Business / Article • Apr '24 • Damian London

Crafting an Effective Business Plan: Tips and Templates

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One of the most common questions I’m asked by founders is what should I include in a business plan?  Should it be short or long?  How much detail do I go into? These are questions that require thought and time.  In essence, the amount of detail you put into your business plan depends largely on the size and complexity of the business you wish to launch or have already launched and if you are looking to raise capital or borrow funds.

A business plan is a document providing a summary of your business for both internal and external individuals to gain an insight into what you currently do or are aiming to achieve with your business.  As pointed out previously, it outlines the reasons as to why the business was formed, the business strategies, the core business objectives, the environment you operate in, your products or services and what problems they are solving, your belief as to why your business has a competitive edge over others in your category and where you have weaknesses.  The business plan may also include details on budgets, marketing, operational strategy and competitive analysis.  

Formation of a business plan from the commencement of operating your business can be the difference between success and failure.  SMEs that lack business plans are more likely to fail than those who do have a business plan (Perry, S.C., 2001).  As discussed in Chapter One, evidence surrounding the reasons why businesses fail include cashflow issues, creation of a product where there is no interest and inaccurate market research.  An effective and well formulated business plan can eliminate many of these issues before the business has even launched.  Creating a detailed business plan allows you as a founder to position your business to meet the challenges it will face throughout its life, including challenging economic environments, competition pressures, operational dilemmas and changing customer needs and desires.  The majority of business plans contain the following information:

You can access a multitude of ready to go business plan templates online and there are plenty of online courses that can guide you through in detail completing your first business plan.

Traditional Business Plan Structure
Here's a template for a simple traditional business plan:

  1. Executive Summary - The executive summary should provide an overview of the entire business plan and should include a brief description of the company, its mission statement, its objectives, and its competitive advantages. 
  2. Company profile - The description of the business should include information about the company's history, its current operations, and its future.
  3. Mission & Vision Statements - The mission and vision statements of a business plan are a short, concise statement of the purpose and goals of the company.
  4. Values/Value Proposition - The value proposition section of your business plan is essentially the selling point of your business. It is the part of your business plan that defines what makes your product or service stand out from the competition.
  5. Scope (optional) - Whilst not common in a business plan and more common in project plans, adding a scope allows you to summarize objectives and requirements to achieve your ultimate business outcomes.
  6. Product/Service overview - A products and services section in a business plan outlines the goods or services that a company offers.
  7. Market Analysis - Once you have identified which type of revenue model best suits your business needs, it’s time to analyze potential growth opportunities within each one. Your goal should be to identify areas where you can increase sales or reduce costs so that you can maximize profits over time.
  8. Sales and Marketing Plan - Business owners and managers need to include detailed information about their marketing and sales goals in their business plans or include a summary and reference separate marketing and sales plans.
  9. Operations Plan - How will your business operates?
  10. Financial Plan (Budget, break even analysis etc.) - Expectations of your income and spend to generate business profits.
One Page Business Plans
A one-page business plan is exactly like what it sounds like: a single page that outlines the essential elements of a business plan in an easy-to-read format. This type of plan does not include detailed information about the company or its products or services; instead, it focuses on the major points and provides an overview of the company’s goals and objectives. The one-page format makes it easy to share with potential investors or partners quickly and easily.   You can use the one-page business plan as a base to either develop a more detailed plan or in conjunction with supplementary documentation such as financial projections, market research, and competitive analysis.

Seven core areas to include in one-page business plans

  1. Executive Summary: This section should provide a brief overview of the company, its mission, and its goals.
  2. Company Description: This section should provide a brief description of the company, including its history, products or services offered, target market, and competitive advantages.
  3. Market Analysis: This section should include an analysis of the target market, including size and growth potential. It should also include an analysis of the competition and any potential barriers to entry.
  4. Financial Plan: This section should include an overview of the company’s financials, including revenue projections, expenses, and capital requirements.
  5. Strategic Plan: This section should outline the company’s strategic plan for achieving its goals and objectives. It should include a timeline for implementation and any key milestones.
  6. Management Team: This section should provide an overview of the company’s management team and their qualifications.
Startup Business Plan
A startup business plan is specifically tailored to entrepreneurs who are starting a new venture. This type of business plan typically includes detailed information about the company’s products or services, target market analysis, financial projections, exit strategy and management team bios. This type of business plan can help entrepreneurs identify potential risks associated with their businesses and develop strategies to mitigate those risks.  

Startup business plans are ideal for entrepreneurs who are looking to secure funding from investors or lenders and are developed in such a way that they are not only organization friendly, but investor friendly.  Investors when looking at startup business plans expect to see a well-thought-out plan that includes a clear vision and strategy for the business, a detailed market analysis, financial projections, and an exit strategy. Additionally, investors want to see that the management team has the experience and knowledge necessary to execute the plan.  Remember, when writing a startup business plan, it needs to be written in such a way that investors are convinced that the business is worth investing in and are sold on your product or service offering.

Developing a comprehensive business plan vital for any small to medium business owner looking to succeed in today’s competitive market environment. Following the above steps small to medium businesses can rest assured that their plan will give them a significant advantage over their competition when it comes time to take their business to the next level.

For further information about Business Plan creation we recommend the "How to Write a Business Plan - Entrepreneurship 101" video from Gillian Perkins,

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