How to Start a Business Plan: A Step-by-Step Guide
By Hal Sheef, Senior Business Plan Consultant · Updated 2026-10-24 · Written by the team at Business Plan Writers USA
Quick answer
To start a business plan, define your business idea and goal, research your market and competitors, describe your products and customers, set out your marketing, operations and team, then build three to five years of financial projections. Write the executive summary last, once every other section is finished.
1. Decide who the plan is for
A plan written for an investor reads differently from one written for a landlord, a lender, a partner or your own team. Write down the reader and the decision you want them to make before you write anything else. That single choice decides how much detail you need in the financials, how formal the tone is and which sections deserve the most space.
2. Write a one-paragraph business concept
Describe what you sell, who buys it, why they buy it from you and how you make money. If you can't explain it in five sentences, the rest of the plan will wander. This paragraph later becomes the core of your executive summary.
3. Research your industry and market
- Market size: how many potential customers exist in your area or niche, and what they spend.
- Trends: is demand growing, flat or shrinking, and why.
- Competitors: list at least five, with their prices, strengths and gaps.
- Target customer: age, income, location, business type or buying habits.
4. Describe products, services and pricing
Explain each offer, what it costs you to deliver, and what you charge. Show how your pricing compares with competitors and why customers will accept it.
5. Plan marketing and sales
Name the channels you'll use (search, social, referrals, partnerships, direct sales), the budget for each, and the number of customers you expect each channel to bring in during year one.
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6. Set out operations and management
Location, equipment, suppliers, daily workflow, licenses, and who runs what. Include short bios for the owners and key hires, and an organization chart if you have more than three people.
7. Build financial projections
- Startup costs and how they are funded.
- Sales forecast by month for year one, then by year for years two to five.
- Profit and loss, cash flow and balance sheet.
- Break-even point and the key assumptions behind every number.
8. Add risks and milestones
List the main risks (cost overruns, slow sales, staffing, regulation) with a response for each, then a dated timeline of milestones for the first 12 to 24 months.
9. Write the executive summary last
Summarize the opportunity, the business, the team, the financial highlights and what you are asking for, in one to two pages. Many readers only read this section, so it must stand on its own.
How long does it take?
| Approach | Typical time | Best when |
|---|---|---|
| Do it yourself with a template | 4 to 8 weeks | Internal planning, small budgets |
| DIY plus expert review | 3 to 5 weeks | You have the data but want a second opinion |
| Professional business plan writer | 1 to 3 weeks | Investors, partners, lenders or immigration use |
Frequently asked questions
What is the first step in writing a business plan?
Decide who the plan is for and what you want them to do after reading it. That choice shapes every section that follows.
How many pages should a business plan be?
Most plans run 20 to 40 pages plus appendices. A lean internal plan can be under 10 pages; an investor or immigration plan is usually longer and more detailed.
Can I write a business plan with no experience?
Yes. Follow a standard outline, research your market carefully and be honest in your projections. Many founders write a first draft and then have a professional refine it.
Do I need financial projections for a new business?
Yes. Readers need to see startup costs, expected sales and when the business becomes profitable, with the assumptions behind each figure.
Want a professionally written business plan instead?
1,100+ plans created. Four fixed-price tiers from $1,200, $500 upfront and the balance due upon delivery.
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