Simple Business Plan Template for Entrepreneurs

Follow This Business Plan Outline to Write Your Own

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Think you have a great idea for a business? The best way to find out whether your idea is feasible is to create a business plan.

A solid, well-researched business plan provides a practical overview of your vision. It can be used to ground your ideas into workable actions and to help pitch your idea to financial institutions or potential investors when looking for funding.

The standard business plan consists of a single document divided into several sections for distinct elements, such as a description of the organization, market research, competitive analysis, sales strategies, capital and labor requirements, and financial data. Your plan may include more or fewer sections to best represent your business.

The template presented here will get you well on your way toward your simple business plan.

Pros and Cons of Using a Business Plan Template

Pros
  • Ready-made layouts

  • Variations

  • Free downloads

Cons
  • Generic, not customized

  • No financial guidance

  • Additional skills needed

Pros

  • Ready-made layouts: Templates offer general guidance about what information is needed and how to organize it, so you’re not stuck looking at a blank page when getting started. Especially detailed templates may offer instructions or helpful text prompts along the way.
  • Variations: If you know what type of business plan you need—traditional, lean, industry-specific—chances are you can find a specialized template.
  • Free downloads: There are many free business plan templates available online, which can be useful for comparing formats and features, or refining your own.

Cons

  • Generic, not customized: Templates typically contain just the basics, and there will still be a lot of work involved to tailor the template to your business. For instance, you'll have to reformat, refine copy, and populate tables.
  • No financial guidance: You’ll need enough industry knowledge to apply financial models to your specific business, and the math skills to generate formulas and calculate figures.
  • Additional skills needed: Some degree of tech savvy is required to integrate charts and graphs, merge data from spreadsheets, and keep it all up-to-date.

Do I Need a Simple or Detailed Business Plan?

A corporate business plan for a large organization can be hundreds of pages long. However, for a small business, it's best to keep the plan short and concise, especially if you're submitting it to bankers or investors. Around 35 to 50 pages should be sufficient, and more allowed for extras, such as photos of products, equipment, logos, or business premises or site plans. Your audience will likely prefer solid research and analysis over long, wordy descriptions.

An entrepreneur who creates a business plan is nearly twice as likely to secure financing and grow their business compared with those who do not have a plan.

How to Use This Business Plan Template

The business plan template below is divided into sections as described in the table of contents. Each section can be copied into a document of your own; you may need to add or delete sections or make adjustments to fit your specific needs.

Once complete, be sure to format it attractively and get it professionally printed and bound. You want your business plan to convey the best possible impression. Make it engaging, something people will to want to pick up and peruse.

Title Page

Enter your business information, including the legal name and address. If you already have a business logo, you can add it at the top or bottom of the title page.

  • Business Plan for "Business Name"
  • Date
  • Business address
  • Phone
  • Email
  • Website URL

If you're addressing it to a company or individual, include:

  • Presented to "Name"
  • At "Company"

Table of Contents

  1. Executive Summary................................................Page #
  2. Business/Industry Overview.................................Page #
  3. Market Analysis and Competition.........................Page #
  4. Sales and Marketing Plan.......................................Page #
  5. Ownership and Management Plan.......................Page #
  6. Operating Plan..........................................................Page #
  7. Financial Plan............................................................Page #
  8. Appendices and Exhibits........................................Page #

Section 1: Executive Summary

The executive summary introduces the plan, but it is written last. It provides a concise and optimistic overview of your business and should capture the reader's attention and create a desire to learn more. The executive summary should be no more than two pages long, with highlights or brief summaries of other sections of the plan.

  • Describe your mission—what is the need for your new business? Sell your vision.
  • Introduce your company briefly, sticking to vital details such as size, location, management, and ownership.
  • Describe your main product(s) and/or service(s).
  • Identify the customer base you plan to target and how your business will serve those customers.
  • Summarize the competition and how you will get market share. What is your competitive advantage?
  • Outline your financial projections for the first few years of operation.
  • State your startup financing requirements.

Section 2: Business/Industry Overview

This section provides an overview of the industry and explains in detail what makes your business stand out.

  • Describe the overall nature of the industry, including sales and other statistics. Note trends and demographics, as well as economic, cultural, and governmental influences.
  • Explain your business and how it fits into the industry.
  • Mention the existing competition, which you'll expand upon in the following section.
  • Identify what area(s) of the market you will target and what unique, improved, or lower-cost products and/or services you will offer.

Many business plans cover their products/services in a standalone section to add more detail or emphasize unique aspects.

Section 3: Market Analysis and Competition

This section focuses on the competitive factor of your business and justifies it with financial models and statistics. You need to demonstrate that you have thoroughly analyzed the target market, assessed the competition, and concluded that there is enough demand for your products/services to make your business viable.

  • Define the target market(s) for your products/services in your geographic locale.
  • Explain the need for your products/services.
  • Estimate the overall size of the market and the units of your products/services that the target market might buy. Include forecasts of potential repeat-purchase volume and how the market might be affected by economic or demographic changes.
  • Estimate the volume and value of your sales in comparison with any existing competitors. Highlight any key strengths over the competition in easily digestible charts and tables.
  • Describe any helpful barriers to entry that may protect your business from competition, such as access to capital, technology, regulations, employee skill sets, or location.  

You may opt to split the target market description and competitive analysis into two separate sections, if either (or both) portray your business especially favorably.

Section 4: Sales and Marketing Plan

Here's where you dive into profits, giving detailed strategic view of how you intend to entice customers to buy your products and/or services, including advertising or promotion, pricing, sales, distribution, and post-sales support.

Product or Service Offerings

If your products and/or services don't take up a standalone section earlier in the plan, here is where you can answer the question: What is your unique selling proposition? Describe your products and/or services, how they benefit the customer and what sets them apart from competitor offerings.

Pricing Strategy

How will you price your products/services? Pricing must be low enough to attract customers, yet high enough to cover costs and generate a profit. You can base pricing decisions on a number of financial models, such as markup from cost or value to the buyer, or in comparison with similar products and/or services in the marketplace. 

Sales and Distribution

For products, describe how you plan to distribute to the customer. Will you be selling wholesale or retail? What type of packaging will be required? How will products be shipped? If you offer a service, how will it be delivered to the customer? What methods will be used for payment?

Advertising and Promotion

List the various forms of media you will use to get your message to customers (e.g., website, email, social media, or newspapers). Will you use sales promotional methods such as free samples and product demonstrations? What about product launches and trade shows? Don't forget more everyday marketing materials such as business cards, flyers, or brochures. Include an approximate budget.

Section 5: Ownership and Management Plan

This section describes the legal structure, ownership, and (if applicable) management and staffing requirements of your business.

  • Ownership structure: Describe the legal structure of your company (e.g., corporation, partnership, LLC, or sole proprietorship). List ownership percentages, if applicable. If the business is a sole proprietorship, this is the only section required.
  • Management team: Describe managers and their roles, key employee positions, and how each will be compensated. Include brief résumés.
  • External resources and services: List any external professional resources required, such as accountants, lawyers, or consultants.
  • Human resources: List the type and number of employees or contractors you will need, and estimate the salary and benefit costs of each.
  • Advisory board: Include an advisory board as a supplemental management resource, if applicable.

Section 6: Operating Plan

The operating plan outlines the physical requirements of your business, such as office, warehouse, or retail space; equipment; supplies; or labor. This section will vary greatly by industry; a large manufacturer, for instance, should provide full details about supply chain or specialty equipment, while a therapist's office can get by with a much shorter list.

If your business is a small operation (like a one-person, home-based consulting firm), you might choose to eliminate the operating plan section altogether and include the operating essentials in the business overview.

  • Development: Explain what you have done to date to identify possible locations, sources of equipment, supply chains, and other relevant relationships. Describe your production workflow.
  • Production: For manufacturing, explain how long it takes to produce a unit and when you'll be ready to start production. Include factors that may affect the time frame of production and how you'll deal with potential problems, such as rush orders.
  • Facilities: Describe the physical location of the business. Include geographical or building requirements; square footage estimates (with room for expansion if expected); mortgage or leasing costs; and estimates of maintenance, utilities, and related overhead costs. Include zoning approvals and other permissions that are necessary in order to operate.
  • Staffing: Outline expected staffing needs and the main duties of staff members, especially the key employees. Describe how the employees will be sourced and the employment relationship (i.e., contract, full-time, part-time) as well as any training needs and how these will be provided.
  • Equipment: Include a list of any specialized equipment needed, along with cost, whether it will be leased or purchased, and sources.
  • Supplies: If your business is, for example, manufacturing, retail, or food services, include a description of the materials needed, reliable sources, major suppliers, and how you will manage inventory.

Section 7: Financial Plan

The financial plan is the most important section for lenders or investors. The goal is to demonstrate that your business will grow and be profitable. To do this, you will need to create realistic predictions or forecasts.

To avoid inflated expectations, a prudent financial plan underestimates revenues and overestimates expenses.

  • Income statements: The income statement displays projected revenues, expenses, and profit. Do this on a monthly basis for at least the first year for a startup business.
  • Cash-flow projections: The cash-flow projection shows your monthly anticipated cash revenues and disbursements for expenses. To be considered a good credit risk, it is important to demonstrate that you can manage your cash flow.
  • Balance sheet: The balance sheet is a snapshot summary of the assets, liabilities, and equity of your business at a particular point in time. For a startup, this would be on the day the business opens.
  • Breakeven analysis: Including a breakeven analysis will demonstrate to lenders or investors what level of sales you need to achieve to make a profit.

Section 8: Appendices and Exhibits

The appendices and exhibits section contains any detailed information needed to support other sections of the plan.  

Possible Appendix or Exhibit items include:

  • Credit histories for the business owners
  • Detailed market research and analysis of competitors
  • Résumés of the owners and key employees
  • Diagrams and/or research about your products and/or services
  • Site, building, or office plans
  • Copies of mortgage documents or equipment leases (or quotes)
  • Marketing brochures and other materials
  • References from business colleagues
  • Links to your business website
  • Any other material that may impress potential lenders or investors