Free business plan template, built with AI

What is a business plan?

A business plan is a document that explains what your business does, who it serves, how it will make money and what it needs to grow. It turns an idea into a concrete plan with goals, a strategy and financial projections. Founders use it to raise money, get a bank loan, bring in partners, or simply to think through their business before spending money.

Writing one from scratch is daunting. This business plan template breaks it into nine short sections with sample text for each, so you always know what to write next.

Do you need a business plan?

If you’re asking anyone for money, yes. Banks, the SBA, angel investors and many grant programs expect one. Even if you’re self-funding, a short plan helps you test your idea, spot gaps in your numbers and stay focused. Many successful founders use a lean, one- or two-page version, like this template, and update it every few months rather than writing a 40-page document once.

The 9 sections of a business plan

1. Executive summary

A short overview of the whole plan: what you do, who for, why now, how much money you need and when you’ll be profitable. Write it last, but put it first.

2. Company description

Your legal structure, location, founders, mission and what makes the business different.

3. Market analysis

The size of your market, your target customers and your main competitors. Use real local or industry numbers wherever you can.

4. Products and services

What you sell, how it’s priced and how it solves your customers’ problem.

5. Marketing and sales strategy

How customers will find you and why they’ll buy: channels, pricing, promotions and partnerships.

6. Operations

How the business runs day to day: location, staff, suppliers, tools and opening hours.

7. Management team

Who’s running the business and why they’re the right people to do it. Investors back people as much as ideas.

8. Financial projections

Revenue, costs and profit for the next three years, with the key assumptions behind them. A simple table is enough for a first version.

9. Funding request

How much you need, exactly what you’ll spend it on, and how investors or lenders will get their money back.

How to write a business plan, step by step

1. Research first. Gather market data, competitor prices and your startup costs before you write a word.
2. Write the middle sections. Start with products, market and operations; they’re the easiest.
3. Build the numbers. Estimate monthly sales and costs, then roll them up into yearly figures.
4. Write the executive summary last, pulling the strongest points from every section.
5. Ask for feedback from someone who’ll be honest, such as a mentor, accountant or SCORE advisor.

Common business plan mistakes

• Overly optimistic sales projections with no assumptions behind them.
• Saying you have “no competitors”. Every business has some, even if they’re indirect.
• A vague funding request instead of an exact amount and breakdown.
• Too much jargon and too many pages. Clear and short wins.

Business plan questions