Key Takeaways

  • The format of a business plan should align with its purpose (e.g., internal planning, pitching to investors, or securing loans).
  • Essential components include an executive summary, industry analysis, management structure, offerings, finances, and formatting standards.
  • Additional elements such as marketing strategy, funding requests, and appendices enhance clarity and effectiveness.
  • Both traditional and lean business plan formats are available, depending on the business’s stage and needs.
  • Formatting and visual presentation should support clarity—not overshadow content.

Business plan format is the way you present a written document that contains details on the type of business you will establish, your marketing and sales strategy, and your business's financial position, including an estimate of profits and losses. You should focus on making your plan clear and concise in order to attract investors.

Executive Summary

Your executive summary should introduce your business to the reader. To write the perfect executive summary, aim to restrict it to one to two pages of text. Your summary should include:

  • The issue your business aims to deal with
  • The product or service that will overcome the problem
  • Your target market
  • Why this is the right moment to start your company
  • An overview of your financial forecast
  • An introduction to the business team

To reach investors, businesses often send out their executive summary and supply the rest of the business plan if more information is required. Your executive summary should, therefore, be understandable without reading the rest of your plan.

Whomever you're sending your executive summary to, you need to show that you care about your business. You can do this by mentioning your values, explaining what makes you unique as a company, and identifying any mistakes you've made and how you've learned from them.

Vision, Mission, and Objectives

Your executive summary should also highlight the vision, mission, and strategic objectives of your business:

  • Vision: A forward-looking statement about what the company aims to achieve long-term.
  • Mission: A brief declaration of the company’s core purpose and values.
  • Objectives: Short-term and medium-term goals that reflect growth, financial targets, or operational milestones.

Clearly defined statements help align your team, attract like-minded investors, and establish your business identity.

Industry Analysis

You need to include research on your market, industry, and competitors in the next section. It's critical that you are aware of the kinds of customers your business aims to reach and how the market is changing.

To show that there is space for your business in the market, identify who your main competitors are and detail how you compare to them.

Key things you should mention in this section of your plan are:

  • Your customers' needs
  • Where you can find customers
  • How you'll engage with them
  • How you'll offer your product or service to them

Management and Business Structure

Here, you want to point to the structure of your business and mention the most important members of your management team, as well as basic details such as:

  • When your business was founded
  • Who the owners are
  • Where your organization is registered
  • Whether your business is incorporated

When talking about your leading managers, include a brief summary of their experience and attach their full resumes as an appendix.

Key Roles and Organizational Chart

To clarify your business structure, consider adding an organizational chart and detailed roles for each team member. Include:

  • Key responsibilities and reporting relationships
  • Any advisory board or external consultants
  • Succession planning for key roles

This shows that your leadership is well-organized and scalable as the business grows.

What Your Business Offers

This section should contain details on the product or service you are selling and how it will improve your customers' lives. Instead of concentrating on how much you will sell your product for, think about the needs of your customers and the benefits they will gain from your product.

You should follow this up with an outline of your marketing and sales strategy. Your marketing plan could contain points such as when you'll introduce new products, how you intend to gain market share, or how you intend to expand your operations into a new area. Your marketing plan also needs to include a budget for each activity you want to carry out.

Marketing and Customer Acquisition Plan

Beyond product descriptions, your business plan should explain how you’ll attract and retain customers. A strong marketing section includes:

  • Target customer profiles
  • Brand positioning and messaging
  • Sales channels (e.g., e-commerce, retail, direct sales)
  • Promotional strategies including digital marketing, partnerships, or events
  • Customer retention plans such as loyalty programs or customer service policies
  • KPIs and metrics you will use to track success

Include a timeline and budget for your marketing initiatives to show how they align with your broader business goals.

Finances

At a minimum, you should insert loss and profit projections, details of the assumptions your estimates are based on, and cash flow tables into your financial section.

You can also include a funding request in the financial section of the business plan with details on how much money you'll need over the next three to five years.

Funding Requests and Financial Goals

If you're seeking funding, dedicate a section of your plan to outline your funding requirements and how the capital will be used. Be specific about:

  • Amount of funding needed over the next 3–5 years
  • Purpose of the funds, such as purchasing equipment, hiring staff, or expanding operations
  • Preferred terms, such as equity or loan-based
  • Projected return on investment for the funder

This section helps demonstrate to investors or lenders that your financial plan is well thought out and grounded in realistic assumptions.

Formatting the Plan

There's no need for you to spend lots of time making your plan look good. A poorly formatted business plan containing a great proposal will usually do better than a perfectly designed business plan with inadequate financial projections or no marketing plan.

Try to keep your formatting simple by:

  • Using single spacing with an extra space between paragraphs
  • Choosing a font size between 10 and 12 point
  • Selecting a serif font such as Baskerville if you're printing your plan
  • Going for a sans serif font like Verdana if you're circulating your plan electronically
  • Including a cover page to show off your logo and tagline
  • Trimming unnecessary content so your ideas come across clearly

Finally, you should ask someone else or hire a copy editing professional to proofread your plan for mistakes. If you're the only one who works on the plan, it's easy to overlook errors.

Types of Business Plan Formats

There are multiple formats for business plans, and choosing the right one depends on your goals and audience. The most common formats for business plans include:

  • Traditional Business Plan: A comprehensive, detailed format commonly used to secure funding or guide strategic direction. It typically includes ten or more structured sections.
  • Lean Startup Plan: A shorter, more concise version ideal for startups needing to quickly document and iterate on their business model. It often uses bullet points, charts, and tables to highlight only the most essential information.
  • Internal Plan: Used by companies for internal planning and management. These are less formal and emphasize strategy, metrics, and milestones.
  • One-Page Business Plan: A condensed version of the traditional plan that briefly summarizes each key section. It is often used in early-stage discussions or pitch meetings.
  • Nonprofit Business Plan: Structured similarly to a traditional plan but includes mission-specific elements such as programs, fundraising strategy, and impact measurement.

Each format serves a different purpose, and selecting the appropriate structure is crucial to communicating your objectives effectively.

Frequently Asked Questions

1. What are the main formats for business plans? The most common formats include traditional, lean startup, one-page, internal, and nonprofit plans—each tailored for different business needs.

2. How long should a business plan be? A traditional business plan is usually 20–40 pages, but lean or one-page formats are much shorter, focusing on clarity and efficiency.

3. Can I use a template for my business plan? Yes, templates help ensure all critical sections are covered. Many free and premium templates are available online, including from the SBA and industry platforms.

4. What financial information should I include? At minimum, include profit and loss projections, cash flow statements, and a funding request if needed. Supporting assumptions and break-even analysis are also recommended.

5. Should I update my business plan? Yes. Business plans are living documents and should be reviewed and updated regularly—especially after major milestones or market shifts.

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