When you're starting a business, it’s easy to get swept up in the excitement of picking a name, designing a logo, or launching your first product. But before diving into the creative details, it’s important to lay the groundwork.

A business plan gives you direction, helps you stay focused, and shows potential partners or investors that you’ve done your homework. In fact, research shows that entrepreneurs who create a formal business plan are 16% more likely to succeed than those who don’t. Let’s go over how to write an effective business plan in just ten easy steps so you can turn your idea into a reality.

Need help deciding on a business to start? Check out this list of small business ideas that are easy to launch on a low budget. You might also consider other online business ideas that require minimal upfront investments.

What is a business plan?

A business plan is a written document that outlines what your business does, who it serves, and how it plans to succeed. Think of it as a blueprint that guides your decisions. It helps you organize your ideas, spot potential challenges early on, and map out a realistic path forward.

For new businesses, a solid plan can be especially helpful when applying for funding, pitching to investors, or simply keeping your team aligned. It doesn’t need to be long or complicated—just clear, focused, and tailored to your goals.

Business plan format examples (with free downloadable templates)

There are two main types of business plans: traditional and lean. Understanding them can help you find the right fit for your business.

Traditional format, plus example

The traditional business plan format is a detailed, step-by-step outline that walks through all the essentials of your business. It usually includes an executive summary, company overview, market research, team structure, product or service details, marketing plan, funding needs, and financial projections. This format is great if you're applying for a loan or pitching to investors because it shows you’ve thought through the details.

Not sure where to start? GoDaddy offers free business plan templates:

Lean format

The lean business plan format is a quicker, more flexible way to map out your business. Instead of diving into long sections and deep research right away, this format focuses on the basics: your key goals, target customers, products or services, revenue streams, and how you’ll measure success. It’s great for entrepreneurs who want to start testing ideas fast or need a simple plan to guide their next steps.

Why do you need a business plan?

From a business perspective, a solid plan helps you communicate your vision to others. It shows you’ve done your research and have a clear plan for reaching your target market, managing operations, and making money. It can also help you set priorities, track performance, and stay focused as new opportunities come your way.

However, writing a business plan isn’t just about impressing banks or investors; it’s a tool that helps you get clear on your goals, your strategy, and what success actually looks like.

When you take time to map things out, you’re more likely to spot potential challenges, stay motivated, and make confident decisions.

It’s also a great way to keep yourself accountable as your business grows and changes. Better yet? Research from the University of Oregon reports that companies with business plans grow 30% faster than those that don’t.

Related: What is a business model?

How to write a business plan

Now that you know what a business plan is, it’s time to delve into the nitty-gritty of writing one. This guide details the 10 steps involved in creating a traditional business plan. Remember, however, that this is your business; your plan will be unique to you. This guide is just a starting point.

1. Create an executive summary

Your executive summary is the first section of your business plan. It is usually one page or less, and gives a quick overview of your business that highlights key details like what you do, who you serve, and what makes your idea worth paying attention to. Essentially, it’s the outline for your business plan.

This is the first thing people will read, so it needs to be clear, concise, and compelling enough to make them want to keep going. The executive summary should capture the big picture of your business in a way that’s easy to understand. Keep the language simple and focused, and avoid going too deep into the details—you’ll expand on each aspect later. Make sure it includes:

Business name, location, and what you offer
Your mission or purpose
A brief description of your target market
An overview of your products or services
Key goals or milestones
A quick look at financial highlights (if available)
Funding needs or business opportunity (if applicable)

2. Describe your company

The company description should give readers a clear picture of who you are, what you do, and why it matters. This section explains your business structure, the problem you’re solving, who your customers are, and what sets you apart. Think of it as the “about us” section of your business plan.

A strong company description should give context, show your purpose, and help people understand your role in the market. A vague description like “We’re a clothing brand that makes shirts for everyone” doesn’t say much. A better version would be: “We’re a sustainable apparel company that creates eco-friendly basics for young professionals who want comfort, style, and a lighter footprint on the planet.” The second one gives a sense of mission, audience, and value.

Here are a few business plan examples of company descriptions and what makes them work:

Example 1: “Swift Meals is a weekly meal prep service that delivers fully cooked, healthy meals to busy professionals in Chicago. Our rotating menu is crafted by chefs and dietitians to balance taste, nutrition, and convenience.”
→ This is a strong description because it tells us what the business does, who it serves, and how it adds value.
Example 2: “Glow & Co. is a beauty brand offering skincare products.”
→ This one’s too vague. There’s no unique angle, target market, or brand personality. It could describe dozens of companies.
Example 3: “Glow & Co. is a clean beauty brand that formulates plant-based skincare for people with sensitive skin. We’re on a mission to simplify routines and help customers feel good in their skin, naturally.”
→ This version is much better. It highlights the brand’s values, audience, and product focus.

Use this section to help people understand not just what you sell, but why your business exists and what makes it stand out. Keep it authentic, focused, and easy to read.

3. Introduce team members

Behind every great business is a team making it all happen. This section is your chance to highlight the people helping you build your business and show why they’re the right ones for the job. Investors and partners want to know that the team has the experience, skills, and drive to bring the vision to life. Even if you’re starting solo, include a short bio and note any advisors, freelancers, or key roles you plan to fill soon.

Every introduction should focus on describing what each person brings to the table, like industry experience, past successes, leadership qualities, and unique strengths. Highlight how long they’ve worked in the field, what roles they’ve held, and how they’ve helped grow other businesses.

Passion, hustle, and a track record of getting things done can go just as far as formal credentials. Show that your team has the knowledge and commitment to make your business succeed.

4. State your company goals

Clear goals help you stay focused and give others confidence in your direction. In this section, outline what you want your business to achieve in the short and long term. These goals can include anything from reaching a certain revenue target to launching new products or expanding into new markets. The key is to make your goals specific, realistic, and measurable so you can track your progress over time.

For example, instead of saying “We want to grow our business,” try something like: “Within the first 12 months, we aim to reach $100,000 in sales, gain 500 repeat customers, and maintain a customer satisfaction score of 90% or higher.” These goals are clear, time-bound, and tied to measurable KPIs like revenue, customer retention, and satisfaction, making it easier to stay accountable and adjust as needed.

5. Detail values and a mission statement

Your values and mission statement set the tone for how your business operates and why it exists in the first place. They help define your purpose beyond making a profit and guide the way you interact with customers, partners, and your team. Defining your company values builds trust and shows that your business stands for something meaningful.

Your mission statement should be short, clear, and focused on what your business does and who it serves. It’s not a marketing slogan—it’s a guiding statement that reflects your core purpose. The best mission statements are action-oriented and easy to remember.

For example, a mission statement for a local meal delivery service might be: “To provide fresh, chef-crafted meals that help busy families eat better and save time every day.” This communicates the service, the audience, and the benefit in one sentence. When paired with values like quality, convenience, and sustainability, it gives customers and stakeholders a sense of what they can expect and what your business is all about.

6. List products or services

Now it’s time to break down what your business actually offers. This section should give a clear, straightforward overview of your products or services and explain how they bring value to your customers. Be sure to include:

What your product or service is
How it solves a problem or improves your customer’s life
What makes it unique or competitive in the market

If you run a product-based business, also include:

A general overview of your product costs (you’ll go into more detail later)
Where your products are sourced or manufactured
How much inventory you currently have or plan to maintain

7. Do market research

Market research is one of the most important pieces of your business plan. It gives you the insight needed to understand your audience, analyze the competition, and figure out where your business fits in. When you understand your market, you’re better equipped to spot opportunities, avoid common pitfalls, and build something that people actually want.

The market research section of your business plan should focus on the most relevant and compelling information. For example, if you're opening a boutique fitness studio, include stats about the rise in demand for boutique fitness, who your ideal customer is, and which gyms are already operating in your area. You might keep internal notes about customer behavior trends or hyper-local survey responses for your own reference, but the business plan should stick to the high-level findings that support your strategy.

You may want to summarize your research into a few key categories to make your research easier to follow. Start with your ideal customer: who they are, what they need, and how your business serves them. Then outline your competitors and what gaps exist in their offerings. A simple list can be powerful here. For example:

Studio X: Offers group classes but no childcare
Gym Y: Affordable pricing, but outdated equipment
Wellness Co.: Premium brand but limited hours

Clearly showing where competitors fall short helps readers understand how your business fills a need.

8. Create a marketing and sales plan

Your marketing and sales plan will generally be built from your competitor research. You can use competitive data to get a feel for what’s working. This section shows how you’ll promote your business, what channels you’ll use (like social media, email, or in-person events), and how you’ll turn interest into revenue.

A strong strategy focuses on the right mix of channels, clear messaging, and a plan for turning leads into paying customers. A weak strategy might say, “We’ll post on social media and hope to go viral.” A better version would be: “We’ll use paid social ads targeting local pet owners, partner with neighborhood vets, and launch a referral program to grow word-of-mouth sales.” The more specific and actionable your plan is, the more confidence it builds in your ability to grow the business.

9. Create a financial projection

Your financial projection gives a snapshot of how your business will make money and manage expenses. It helps you plan for the future, set realistic goals, and prepare for challenges before they happen. For investors or lenders, this section is a key part of the business plan because it shows the financial potential of your idea and how long it might take to become profitable. A few key areas your financial projections should cover are:

Sales forecast
Cash flow statement
Expenses budget
Breakeven analysis
Balance sheet

The top figures most investors want to see are projected revenue, expenses, and your estimated time to profitability. To build these numbers, start with your pricing model, expected sales volume, and known costs like inventory, marketing, or salaries. Be sure to include notes on any assumptions you’ve made, like growth rate or customer acquisition costs. This adds context and shows that your numbers are based on research, not guesswork. Keep your estimates realistic and back them up with data from your market research or industry benchmarks.

10. Add an appendix

The appendix includes any documents, data, or sources that support the claims you’ve made throughout your business plan. It isn’t always required by investors or other interested parties, but it’s a great addition that proves you’ve done your research and are serious about the details. Consider adding things like:

Resumes of key team members
Detailed market research data and analysis
Legal documents like incorporation papers, patents, or trademarks
Marketing samples like flyers, social posts, or brand assets
Customer testimonials, survey results, or focus group takeaways
Product photos, prototypes, or lab test results
Any other supporting info you referenced in your business plan
White papers, if available

Keep it organized, clearly labeled, and easy to reference. The goal is to give readers everything they need to understand and trust your vision.

Related: How to write white papers

How often should you update your business plan?

Your business plan should grow and evolve alongside your business. A good rule of thumb is to review and update your plan at least once a year. Even if you’re not using it to pitch investors or apply for funding, keeping your plan current helps you stay focused, track progress, and make smarter decisions. If your team is growing or you're exploring new opportunities, an updated plan also keeps everyone on the same page.

When you update your business plan, focus on the sections that are most likely to shift, including your financial projections, marketing and sales strategies, team structure, and business goals. Market conditions can change fast, and so can your customer base, so it's important to revisit your research and adjust your strategy if needed.

Tips for writing a small business plan

Before you jump into writing your business plan, take a moment to check out these practical tips. They’ll help you stay focused and build a plan that actually works for you.

Use a business plan template

Business plans are not new, so why not start with a tried and tested template? There’s plenty of space to turn the template into something unique that feels like yours. Using a template provides structure and helps you avoid getting overwhelmed. Check out this free business plan template you can download and customize.

Write for yourself, not just investors

Your business plan is a tool for you. It’s where you map out your ideas, get organized, and set goals you can build on. Sure, you’ll want to include everything an investor or lender might look for, but the plan should also make sense to you. If it helps, start with a full version for yourself, then create a leaner version if you need one for outside audiences.

Demonstrate what makes you unique

You're likely entering a competitive space, so make it clear how your business is different. What do you offer that others don’t? Why should someone choose you over the next option? This is your chance to explain your edge and show that you’re not just another face in the crowd.

Use concrete data and examples

A great business plan is grounded in facts. Use real numbers, solid research, and examples wherever you can. This helps you prove that your business has potential and shows you’ve done the work to understand your market.

Be realistic in your projections

It’s okay to be excited about big goals, but your financial projections should be realistic. Aim for numbers that are both optimistic and achievable. This helps you stay motivated and avoid burnout. It also builds trust with anyone reading your plan.

A business plan is just one part of the journey of starting a new business. For the entire step-by-step process, check out our guide on how to start an online business.

Conclusion

Writing a business plan might seem like a big task, but it’s one of the most valuable steps you can take when starting a business. It gives you clarity, helps you stay focused, and sets the foundation for growth.

Remember, your business plan isn’t set in stone. It should grow and evolve along with your business. Use it as a guide, revisit it regularly, and don’t be afraid to make changes as you learn more about your market and your goals.

Ready to put your plan into action? Use GoDaddy Airo to start your online business today!

Business plan FAQ

How do I write a simple business plan?

A simple business plan covers the basics: what your business does, who it serves, how it makes money, and what your goals are. Start with a one-page outline that includes your mission, product or service, target audience, marketing approach, and a few financial projections. This version is great for getting started or organizing your thoughts before diving into a full plan. You can always build it out more later.

Can I write a business plan myself?

Absolutely! You don’t need a business degree or outside help to create a business plan. Start with a template, keep your goals in mind, and take it step by step.

How long should a business plan be?

There’s no one-size-fits-all answer, but most traditional business plans are between 7 and 15 pages. If you're just writing it for yourself or starting out small, a one- or two-page lean business plan can do the job. Focus on including only what’s necessary to explain your business clearly.

How long should it take to write a business plan?

It depends on your business and how much research you’ve already done. Some plans come together in a few days, while others might take a few weeks. Don’t rush it; take the time to get your ideas organized and your numbers right.

How to write a business plan in 10 steps

What is a business plan?