How to format your next business plan
Introduction
You know what a good business plan is supposed to look like, but how do you actually write one? I'm going to show you the basics of how to format your next business plan.
Write a one-page executive summary.
An executive summary is a one-page document that answers the essential questions investors need to know about your company, including:
What problem does your company solve?
How fast is it growing?
What are its key metrics?
How much funding has been raised, and where did it come from?
Who are the founders/executives of the company, and what are their qualifications?
Make it easy to read.
When you're writing your plan, use a clear font and font size. If you can't read it, neither can anyone else. Use bold text sparingly to emphasize important points, but avoid using too many colors and fonts across the board; they will only confuse readers and make your business look unprofessional.
When presenting information in lists or bullet points, keep them short (3-4 items) and close together for easy visual scanning by readers. If possible, use templates in Microsoft Word or Google Docs that already have these formatting options built in so that all you need to do is fill out each section of the plan with content from your research rather than spend time worrying about how everything looks on paper before sending it off!
Use bullet points in descriptions.
Bullet points are an effective way to keep your plan short, sweet and focused. They help the reader focus on what’s important as well as see the structure of the plan. Bullet points also make it easier for you to write your business plan because you can write shorter sentences with fewer words.
The reason bullet points work so well is that they create a visual hierarchy that makes it easy for readers to understand where they are in the document at all times – whether they are looking at a section heading or sub-heading or paragraph conclusion. You can use bullets when summarizing sections or specific chapters within chapters; however, do not use bullet points within paragraphs unless they provide additional information separate from what has already been said in earlier paragraphs (for example: “Our second point…”).
Keep it simple.
Keep it simple. The last thing you want is for your potential investors to get lost in the weeds of your business plan. Don't use jargon, speak in plain English, and keep things short and sweet. A good rule of thumb is that if more than a handful of people can't understand what you're saying within three minutes, there's something wrong with your writing style.
Keep it clear by using bullet points and diagrams where appropriate. If a chart or diagram makes sense, use one! This will not only help break up the text but also convey information quickly and clearly to readers who might be skimming through instead of reading deeply into every detail of your proposal.
Use charts sparingly (if at all). Charts can be very effective visual tools—they can make complex data easy to digest—but they should only be used when necessary or when absolutely necessary; otherwise they take away from the overall look of the document and may distract readers from focusing on what really matters: your business plan itself
Estimate numbers realistically.
When estimating numbers, don't start with a number you hope to reach and then work your way backwards. Instead, start with the numbers you've been able to achieve in the past—the ones that were realistic given the resources and skills at your disposal.
Keep in mind that your estimates will change as you move through and add more detail to your plan. As you grow more familiar with what will be involved in reaching each goal, you'll gain an understanding of how much time it takes and how much money is required. If there's any doubt about whether or not you can realistically reach a certain number by a certain date, leave room for revision!
Stick to the facts.
When you're writing your plan, stick to the facts. Don't make up numbers; use data to support your points. Don't use personal anecdotes or anecdotes from others that aren't based on objective research.
For example: If a team member says they've worked with 10 other companies in the past and that they're “the best at helping them grow,” don't put this in your business plan as evidence of how good their services are. Instead, back up their claim with statistics and third-party research (if you can find any).
Set goals and deadlines.
To achieve your goals and deadlines, you'll need to establish a timeline for the activities that will get you there. This is where your business plan comes in handy. If you've already started one, look back at the chapter(s) on key milestones and revenue streams. Summarize your progress here: what's been completed, how much money is coming in from each revenue stream and why those numbers are important to achieving your goals?
This section isn't just about setting up a formalized plan; it's also about making sure you're meeting deadlines as they come along. Deadlines are essential because they force you to stay on track with regular reporting so that nobody gets blindsided by bad news when they least expect it.
A good business plan is clear and concise.
A good business plan is clear and concise.
Use short sentences.
Use shorter paragraphs.
Use bullet points instead of long lists of text to present your ideas, especially when you are writing a plan for an investor or lender who needs to quickly scan through the material to check that everything has been covered in the right way.
Write in simple language — avoid technical jargon unless it's absolutely essential to define a specific term accurately (and then use it only once!)
Conclusion
That’s it! You’re ready to start writing your business plan. Remember, though: a good business plan is clear and concise. It should be easy for anyone to understand, so don’t get lost in the details or use overly complicated language. Your goal is simply to convey what you want to do and why it makes sense for everyone involved—not just yourself.
