How to Write a Business Plan: A Guide for Aspiring Solopreneurs and Entrepreneurs
Post #21: Because flying by the seat of your pants is not a very good plan for running your small business.
In this Substack, I will walk you through the process of starting, operating, maintaining, and — if needed — selling or closing your own small business.
Today, I am going to talk about the importance of writing a business plan for your new small business.
Specifically,
Why you need a business plan
What you should include in your business plan
What is NOT in a business plan
Who will need to see your business plan
What you can do once you have a business plan
Typical length of a business plan
A well-structured business plan isn’t just a formality—it’s a strategic tool that helps you clarify your vision, make informed decisions, and attract potential partners or investors.
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Why You Need a Business Plan
Starting a business is exciting, but before you dive in, you need a roadmap. That roadmap is your business plan.
A business plan can:
Clarify Your Vision – It forces you to define your goals, target audience, and operational strategy. You may even realize - through the process of creating it - that you should pivot and try something different.
Help Secure Funding – If you need investors, loans, or some other form of funding, a solid business plan will demonstrate to your investors that your business is worth supporting.
Guide Decision-Making – It serves as a reference to keep you on track when making important decisions for your business.
Identify Potential Risks – With a clear roadmap, you can better anticipate challenges before they become problems, make course corrections before you get lost.
Provide Measurable Goals – With clearly outlined objectives, you can track progress, make adjustments, and see new opportunities that fit within your roadmap.
What You Should Include in a Business Plan
While business plans vary by industry and business type, most should include the following sections:
Executive Summary – A concise overview of your business, including your mission, vision, and key objectives.
Business Description – An explanation of what your business does, the problem it solves, and the target market.
Market Analysis – Research on industry trends, competitors, and customer demographics.
Business Model – Details on how you plan to generate revenue (e.g., product sales, subscription model, consulting fees).
Marketing & Sales Strategy – How you plan to attract and retain customers.
Operations Plan – The logistics of running the business, including suppliers, production, and technology.
Financial Plan – Revenue projections, funding needs, pricing strategy, and break-even analysis.
Risk Analysis & Contingency Plan – Potential risks and challenges, and how these might be mitigated.
Team & Management – If applicable, who will be involved in the business and their roles.
Implementation Timeline - Briefly identify short-term milestones and long-term growth plans. Reference other planning documents, such as a roadmap.
Appendix – Supporting documents such as market research data or legal paperwork.
Remember that the purpose of creating a business plan is to define the guiding principles for your business services and/or products.
What is NOT in a Business Plan?
People often confuse a business plan with other documents. Or, they think that it needs to include every little detail under the sun.
💡 Tip: it is better to prepare a brief and simple business plan than to have none at all.
If you craft a document that is excessively detailed or contains too much information about how you envision your business, you could create unnecessary constraints that will prevent your business from being nimble and responsive to market trends or other forces.
So, keep it simple!
Here are things that do NOT belong in your plan:
Personal Goals & Aspirations (…unless they directly impact business operations)
Overly Technical Jargon (Keep it clear for investors, partners, or lenders.)
Day-to-Day Task Lists (That’s for operational documents, not your business plan.)
Unrealistic Revenue Projections (Base forecasts on actual research, not wishful thinking.)
Lengthy Industry History (Focus on key trends relevant to your business.)
Unverified Assumptions (Any assumption should be backed by research or experience.)
Too Much Detail (Capture the highlights or key elements, but don’t go too deep or you may find you have painted yourself into a corner.)
A business plan is more effective when it can be quickly read, reviewed, and understood by other people.
If only you “get it”, then it’s probably not a business plan after all.
Who Will Need to See Your Business Plan?
Your business plan shouldn’t sit on a shelf collecting dust.
When the time is right, be sure to share it with:
Yourself – Yes - you! Regularly revisit your business plan to stay aligned with the original objectives and guidelines. And, as your business grows and changes, you may want to update your business plan to align with these adjustments.
Business Mentors or Advisors – Experts, professionals, and coaches who are not intimately involved with your business have the benefit of being able to see your business as an outsider. These folks may provide useful feedback, identify potential gaps, and offer insights from their unique perspectives.
Potential Investors or Lenders – If you’re seeking funding, your business plan is the key document that you can share to communicate your vision and values. While it is good to prepare a document that is somewhat formal to accommodate these folks, don’t be overly rigid or dry in a way that could be off-putting or disjointed from what they know about you, the Founder.
Trusted Business Partners or Co-Founders – If you set up your business as a Partnership, or have a co-owner in an S-Corp, these folks should be involved with the process of creating (or at least reviewing) your business plan. As partners or co-founders, they should have buy-in on the roadmap that you have defined, and fully commit to the same vision and values for the business.
Given this could be your audience, writing your business plan on the back of a napkin or scribbling it down on scratch paper or sticky notes is not the best path to success (though it may be a great way to capture ideas to get started!).
💡 Tip: download a Business Plan Template and 50-question Builder Questionnaire to create your own custom Business Plan here on my Gumroad store.
How a Business Plan Helps with Decision-Making
Sticking with the analogy of a roadmap, your business plan will serve as an important guide when you are faced with tough decisions in your day-to-day operations.
As a centralized guide for the vision and values for your business, a business plan can provide clarity for critical decisions, such as:
Whether to move forward with the business (Is it viable?)
What business model to use (Service-based, product-based, subscription, etc.)
How to allocate resources (Where should time and money be spent?)
What pricing strategy to implement (Competitive analysis helps determine this.)
How to approach marketing and customer acquisition (Which strategies will work best?)
When to scale or pivot (Your plan’s financial projections help guide expansion decisions.)
When to sell or close the business (You may find someday that you no longer want to keep running the business, or it is time to move on and trade in your chips.)
Don’t leave your business decision-making to chance or whim! Set the goals and define the vision early and you can put more energy into serving your customers and clients.
Typical Length of a Business Plan for a Small Business
The length of a business plan varies, but for solopreneurs and small businesses, a concise and focused document is best.
Lean Business Plan: 1-5 pages (great for internal use and quick pivots)
Standard Business Plan: 10-20 pages (suitable for securing funding or outlining long-term strategies)
Investor-Ready Plan: 20-30 pages (detailed financials and market research included)
Again, try to keep it brief and simple, while accommodating your target audiences.
Writing a business plan doesn’t have to be overwhelming.
Focus on clarity, practicality, and strategy.
Whether you’re launching a one-person operation or planning to scale in the future, your business plan will help you build a strong foundation for success.
Get the Template & Questionnaire
If you want to save your precious time, you can buy a template for your Business Plan along with an editable 50-questions Questionnaire to help you with the right content for your Plan:
Buy this template from Gumroad:
📝 Business Plan Template & Questionnaire- Simple Doc Files (template)
Next Steps
With a vision for your business in hand, you are ready for the next steps of bootstrapping your business.
In the next post, I’m going to dive into business licensing, permits, and regulations that small businesses need in order to operate within the rules and/or laws.
👉 Continue the Journey with Post #23 —>
