Write a Business Plan

by Bethany K. Laurence, J.D.

Here's what to include in your business plan to attract investors and keep your business on track.

1. Problem statement.
Successful businesses share a common attribute: They do something useful for their customers. One way to determine what is useful for your customers is to identify and describe the problem that your business will solve. For example, a window washing service solves the customer’s twin problems of wanting clean windows, but lacking the time or physical ability to clean windows him or herself.

2. Business description.
Your business description should explain exactly what you will provide for the customer, as well as what you’ll exclude. Each of the choices you make in your business description will affect the amount of money you’ll need to start or expand, and how much sales revenue you can expect.

3. Résumé of business accomplishments.
If you are looking for money from investors or lenders, they will want to be certain you have the experience, education, and desire necessary to make your business a success. This shouldn’t take the form of a traditional resume, but rather it should be a statement of everything you have accomplished that has a direct bearing on your business objectives.

4. Marketing plan.
Your marketing plan should cover areas ranging all the way from determining how your business fits into the national and local economies to deciding what color your logo should be. Your marketing plan should describe your target customer, decide how to reach customers, analyze competing businesses, include a marketing budget, and discuss how you will differentiate your business from the competition. A good resource on how to market effectively is Marketing Without Advertising: Inspire Customers to Rave About Your Business to Create Lasting Success, by Michael Phillips and Salli Rasberry (Nolo).