what is the purpose of a one page business plan

🎧 Real entrepreneurs. Real stories.

Subscribe to The Hurdle podcast today!

How to Write a One-Page Business Plan

Noah Parsons

5 min. read

Updated July 29, 2024

What’s the most challenging part of writing a business plan? Getting started. That’s why you should create a one-page plan as a starting point.

The one-page business plan is simple to create, easy to update, and built for adaptation. It includes all of the essential components of a traditional plan but is far briefer and more focused.

Think of it like you’re tweeting about your business. You have a limited number of characters to work with and are intentionally making it easy to digest. If you need additional support, try downloading our free one-page business plan template .

• What is a one-page business plan?

The one-page business plan is a simplified version of traditional operational plans that focuses on the core aspects of your business. While it may be a shorter business plan, it still follows the structure of a standard business plan  and serves as a beefed-up pitch document.

There’s really not much difference between a single-page business plan and a good executive summary. In fact, as you create a more detailed plan you may even be able to use it as your executive summary .

• What to include in your one-page plan

Here are the eight necessary sections to include when developing your one-page business plan.

Try and keep each section limited to 1-2 sentences or 3-4 bullet points to ensure that you stay within one page. It’s always easier to add more later rather than cutting back from lengthy sections.

The problem

A description of the problem or need your customers have and any relevant data that supports your claim.

The solution

Your product or service and how it solves the problem.

Business model

How you will make money—including the costs of production and selling, and the price that customers will pay.

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

Target market

Who is your customer and how many of them are there? Define your ideal customer by starting with a broad audience and narrowing it down. This provides investors with a clear picture of your thought process and understanding of the greater consumer market.

Competitive advantage

What makes you different from the competition? Explain how this will lead to greater success, customer loyalty, etc.

Management team

The management structure of your business, including currently filled roles, ideal candidates, and any management gaps.

Financial summary

Key financial metrics include your profit and loss, cash flow, balance sheet, and sales forecast. This section may be the most difficult part to condense, so try and focus on visualization and standard business ratios to get the point across. You can always share broader financial information if requested.

Funding required

Have what funding total you need front and center to clearly display what you are asking from investors.

Why you should start with a one-page plan

There are plenty of good reasons to write a business plan . There are even more reasons why your first step should be writing a one-page plan.

1. It’s faster

Instead of slogging away for hours, days, or even weeks tackling a formal business plan—the one-page format helps you get your ideas down much faster. In fact, with the right process and preparation, you can write a working one-page business plan in under an hour .

2. A great format for feedback

Need quick feedback from business partners, colleagues, potential customers, or your spouse? Provide them with a one-page plan instead of a lengthy in-depth version for better results.

The one-page plan is more likely to be read and reviewed. And since all of your business information is available at a glance, you’ll receive far more valuable and timely feedback.

3. Easy to update

Entrepreneurs never get things right the first time. You’ll constantly be learning and receiving feedback—requiring you to iterate and revise your business concept. Instead of updating a large document every time, you can do it in minutes with a one-page plan.

4. Direct and to-the-point

Learning to communicate your ideas clearly and directly is critical. You need to be sure that anyone can really understand the essence of your business. Delivering your entire business concept on a single page is a great way to practice this, as it forces you to be succinct.

5. Works as an idea validation tool

Initially, your business is just a set of assumptions that you need to validate. Do your potential customers have the problem you assume they have? Do they like your solution and are they willing to pay for it? What marketing and sales tactics will work?

As you validate these assumptions, you leave them in your plan. But, assumptions that end up being wrong will quickly fall off the page.

6. Becomes an outline for your detailed plan

By “detailed” we don’t mean “long.” If you do need to create a detailed business plan document for investors or business partners, you can use your one-page plan as your core outline. You will just expand and provide more details for each section.

7. No one really reads long business plans

A common problem with traditional business plans is that they are simply too long and overly complex. Even when investors ask for a detailed document, chances are that they won’t actually read every word. They may read certain sections, but often just want to see if you’ve thought through the details of your business, how it will operate, and how it will grow.

8. Useful for any business stage

A one-page plan is useful for business owners that are mulling over ideas, just starting, actively managing, or looking to grow a business. It can help validate a business idea, work as an internal strategy document, or as a flexible management tool that can be adapted over time.

Resources to help you write a business plan

While I highly recommend that you at least start with a one-page business plan, there are times where a more traditional business plan is necessary—such as applying for a loan or pitching to investors.

For additional support, check out our guide on writing a detailed business plan and download our free business plan template .

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

Table of Contents

• Why start with a one-page plan

Related Articles

8 Min. Read

What Type of Business Plan Do You Need?

6 Min. Read

Differences Between Single-Use and Standing Plans Explained

13 Min. Read

How to Write a Nonprofit Business Plan

5 Min. Read

How to Write a Growth-Oriented Business Plan

The LivePlan Newsletter

Become a smarter, more strategic entrepreneur.

Your first monthly newsetter will be delivered soon..

Unsubscribe anytime. Privacy policy .

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

How to Write a One-Page Business Plan

Written by Dave Lavinsky

The one-page business plan is one of the most popular tools for entrepreneurs, startups, and established companies. It’s also one of the simplest to develop. This article will walk you through a description of a one-page business plan, the purpose of this type of plan, and how to create a one-page business plan for your company.  

What is a One-Page Business Plan?

A one-page business plan is a compressed version of a traditional business plan that fits neatly into a single page. Creating a one-page business plan requires significant research, strategizing and financial modeling on the front end to be effective. In that respect, rather than being easier or simpler to create than a full-length business plan, the single-page business plan actually requires an additional distillation effort for the entrepreneur.

Download our Ultimate Business Plan Template here >

As always, utilizing a business plan template provides the basis for you to clearly communicate your value proposition, business concept, business strategy, services, product offerings, etc., and improve your business planning process. ​  

Benefits of Using a One-Page Plan

A one-page plan is easier to read, share and understand.

By boiling down your business plan into one page with only the most important elements, you are better able to 1) focus on the key action items your business must accomplish and 2) present your vision and plan to your team in a way that won’t overwhelm them and will allow them to most easily understand it.

The reward is that the brevity of a 1 page business plan is very attractive to prospective investors, who are usually pressed for time. Because it is so brief, it is also an effective tool to share among your management team and employees to get your team motivated and working towards the same goals. A strong one-page business plan proves you grasp the crux of your business and appreciate what is most critical for audiences to quickly understand about it.

Below, we walk through the content of a one-page business planning template.  

The One-Page Business Plan Template

Whether you are starting a service business or a product-focused business, your one-page business plan should include the following 7 items:

• Business Model
• Market Analysis
• Competitor Analysis
• Financial Projections
• Funding Required & Uses of Funds

Each of these items are detailed below.

Finish Your Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

How to Create a One-Page Business Plan

Each of the key elements included in a traditional business plan retains its position in the 1 page business plan. You need only provide a few words, phrases, or sentences in the description for each of the sections and move on to the next. The following are the essential elements:

For example, Netflix in its budding days identified a problem with video stores. It was time consuming and inconvenient to go to the video store every time you felt like watching a new movie.

2. Solution

Again, looking at Netflix, the company initially solved the problem of time consumption and inconvenience by delivering movies directly to customers’ homes.

3. Business Model

Consider the example of YouTube. YouTube’s business model hinges on users who by and large engage on the platform for free. YouTube leverages this ever-increasing user base to attract advertisers, which provides revenues.

4. Market Analysis

For example, Swedish furniture brand Ikea’s US target market could be described as urban young professionals who like the Scandinavian style and are willing to put in a little setup work themselves to save money on quality furnishings. These individuals spend, on average, $8,000 on furnishing when they move into a new home or apartment.

5. Competitive Analysis

Take the example of coffee giant Starbucks. Their competitor analysis would yield large brands like Dunkin’ Donuts, Panera Bread and McDonald’s McCafé, as well as boutique coffee shops on a neighborhood by neighborhood basis. Starbucks differentiates itself through providing specialty coffee products of consistent quality under a national brand.

6. Financial Plan & Projections

See below for example graphs that show a growth in topline revenues year over year as well as the projected revenue distribution by service area for a hair salon:

7. Funding Required & Uses of Funds

See below for an example table of fund uses for a startup hair salon:

Free Downloadable One-Page Business Plan Example PDF

Download our one page business plan template PDF here.

Download Growthink’s One-Page-Business-Plan-Template for Microsoft Word  

Final Thoughts

Remember to focus on your business’ strengths as much as you can. If your market analysis reveals you have a strong position then highlight it more in the single-page plan. Likewise, if your financial projections come out stronger then elongate the financial section.

Editing the enormity of a business plan into a single page is a daunting task but doing so will bring clarity to the core idea and value of your business and help you pitch well in front of potential investors.  

One-Page Business Plan FAQs

What are the benefits of one-page business plans.

Traditional business plans are sometimes 25-50 pages long. It's hard to read that many pages for one company, let alone dozens of them.

One-page business plans are more digestible. 

They provide key points on what you do, why you do it, and how you plan for growth. 

What is the difference between a one-page business plan and a lean business plan?

A one-page business plan is a reduced version of a traditional business plan that can be easily wrapped onto a single sheet of paper.

The key elements included in a one-page business plan are:

On the other hand, a lean business plan is a short-term planning method that allows you to more quickly and accurately develop your business plan based on actual customer feedback and interactions. A lean business plan is focused more on helping you build a better business and testing a variety of strategies to assess if they are effective for your chosen business model. 

Also in a single-page format, the key elements included in this type of plan are:

• Business Overview
• Value Proposition
• Key Partnerships
• Key Activities
• Key Resources
• Customer Relationships
• Customer Segments & Channels
• Cost Structure
• Revenue Streams

A typical rule of thumb for these types of plans is that every sentence should be meaningful and useful for orientation purposes in order to appease investors in an efficient way while retaining their interest long enough to make an informed decision about investing in your business. 

Looking for more information? Lean Business Plan: How-To Guide & Template

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies that have gone on to achieve tremendous success.

Click here to see how Growthink’s professional business plan consulting services can create your business plan for you.

Other Helpful Business Plan Articles & Templates

• Easy scheduling, time tracking, & payroll
• Built-in team communication
• Compliance help and labor cost controls
• Integrate with your POS

Manage a Business

Writing an Effective One-Page Business Plan: What You Need to Know (+ Free Template)

July 15, 2024

5  min read

By Homebase Team

Table of contents

Conquer your workday.

Join the 100K+ small businesses using Homebase for time clocks, schedules, payroll, and HR.

If you’ve started—or are starting—a small business, you’ve probably heard the words ‘business plan’ thrown around. That's because a business plan is an important document with important information! Even a one-page business plan can help you address key questions early in the planning process.That's right—we said  one page. In many cases, there's no need for a supermassive document that takes ages to create. In this article, we walk you through what a good business plan needs—and what a business plan one-pager should contain. Whether you're writing your business plan for the first time or giving your existing plan a refresh, we’ve got your back. We’ve even got a free, downloadable business plan template to help you get started. Let's get into it!

Why do you need a business plan?

A business plan is a blueprint for your business. It outlines everything your business needs, from goals to market to the steps you need to implement.Business plans serve two main purposes:

• To help you set your business up for success. As you put together your business plan, you’ll be forced to think strategically about all your business goals and activities . Are they realistic? Is something likely to go wrong? What haven’t you thought of? The goal is for you to walk away feeling confident in the future of your business.
• To communicate the value of your business to others. It’s rare that entrepreneurs like yourself will go it 100% alone. You’ll likely work with partners, investors, or vendors to bring your small business to life. A business plan gives your collaborators confidence in you and your business and helps them support you in the best way possible.

Taking the time to create a business plan can feel like you’re wasting all-too-precious time, but it can help keep you focused and increase efficiency down the road. It'll also help you make better business decisions off the bat so you can grow your small business quickly and wisely. 

What are the 7 main points in a business plan?

Every business plan is unique, which is part of the reason writing one can feel a tad overwhelming. You can’t just copy and paste the plan from another business—instead, you need to assess your business's idea within its niche.Luckily, the skeleton of every plan is usually very similar. Whether you’re creating a plan for a neighborhood daycare or that cool new bar down the street , here are a few main points to put into any comprehensive business plan.

1. Executive summary

Your executive summary is an overview of your business plan. Think about this section like a TL;DR or too long, don’t read. If someone wants to understand the gist of your business plan in just a few minutes, what information would they need to know?Tip: If you find yourself just sharing your executive summary with your business's interested parties, it may be that your business plan is too long! Consider a one-page business plan as your business's elevator pitch, or a longer executive summary.

2. Company overview and description

In this section, you should introduce your business to the reader. By the time they finish reading this section, they should have a good idea of who you are, what you do, and what you sell—in other words, your business's niche. Don’t be afraid to dive into your own background and why you decided to start this business. Building a small business is personal, and your story can go a long way in giving the reader some context.

3. Market and competitive analysis

Every business needs customers. Here’s where you’ll detail who they are and the potential target market of your business, including your ideal customer.You’ll also want to take note of potential competitors that may impact your business. These might be direct competitors, but could also be similar businesses that may compete for your customers’ time and money. For example, if you’re opening a cycling studio, you might consider any other type of fitness studio to be a competitor. Competition isn’t a bad thing, but being aware of your competition is one way to ensure your business stands out from the crowd. 

4. Business offerings

Here’s where you’ll outline what products or services your business will offer in more detail. It doesn’t have to be a complete laundry list, but it should give readers a general idea and show a certain degree of forethought and attention to details. For example, if you’re opening a bakery , this might be a sample of your menu. Or if you’re an HVAC repair company , you might share an overview of the services you’ll offer your customers. This section might even mention the products or services you won't offer and why, especially if it helps clarify how your business is unique.

5. Management and operational plan

From managing employees and inventory to securing equipment and a lease, there’s a lot that happens behind the scenes to keep things running smoothly. Every business plan should touch on how you’ll manage the day-to-day of your business. This is also a great place to indicate key milestones and timelines so you know that you’re on track for a successful grand opening. 

6. Sales, marketing, and PR strategy

Now that you’ve got all the research and operational plans in place , it’s time to start attracting customers and securing those sales. Even with the best products or services in town, every business can use a little marketing boost. Feel free to get creative. From social media to paid ads, there are tons of ways you can spread the word about your budding business . 

7. Financial forecast and budget

No one loves to crunch financials, but when it comes to business, money talks. And a strong financial plan is key to the long-term success of your business. This final section of your business plan should estimate the costs, revenue, and profits of your business in the short and long term. How do you plan to finance your business? What costs will you incur before opening day ? What are the ongoing costs? Not only will this give your vendors and investors confidence in your business, but it helps you make sure that your business is profitable in the long run.

What is a one-page business plan?

A one-page business plan is essentially a condensed version of a full business plan. It covers all the core information about your business without overwhelming the reader with details. The goal is to summarize your business plan for yourself and potential stakeholders so they can understand your business at a glance. Depending on your business needs, this concise document may even be all you need to get your business off the ground. Or it could serve as a stepping stone to a more robust plan in the future. 

Top benefits of a one-page business plan.

Bigger isn’t always better—and one-page business plans are here to prove it.Here are some benefits and reasons why you might opt for a one-page business plan:

• To kickstart your business planning: A full business plan can be incredibly daunting. A one-page business plan gives you a place to start without feeling overwhelmed with the nitty gritty. 
• To share and distribute: Sometimes potential vendors, partners, or investors want to get more information about your business before they sign on officially. Instead of leaving them with a massive document, a one-page business plan helps you share the relevant need-to-know information easily.
• To focus on the key details: If you’re early on in the business ideation process and want to make sure you have all the important information, a one-page business plan can help you easily validate your business plan.
• To save time: In the long term, you may still expect to put together a full business plan at some point. However, if you’re in a time crunch, a one-page plan can help you get the important insights without the time commitment.
• To easily edit: In an ever-changing business environment, a one-page business plan is much easier to keep updated. 

Key details to include in a one-page business plan.

Above, we outlined the key components of any business plan. The key with a one-pager is to keep it brief without losing any of those important details. Let’s look at the sections of a business plan one-pager and dig into how you can adapt them to cover all the details of your business—all on one page. 

Summary and overview

Start your one-page plan by sharing the name of your business, what you do, and your main value proposition.

The problem—and your solution

In a few sentences, share the problem that your business solves and how you solve it. This clarifies why your business should exist, so it's an important section! Depending on your business, you may also want to share a few of your team members to help readers put a face to your business. Great examples include the executive chef for a restaurant, or the lead veterinarian for your vet clinic.

Target market

Briefly describe who you expect to be a customer and their characteristics. This could be in the form of a short "ideal customer" profile.

Competitor overview

Here, you’ll touch on potential competitors and what makes your business stand out.

Business timeline

Share the key milestones for your business. For example, pitch when you’ll start marketing your business, when you’ll hire employees , and when you expect to open.

Sales and marketing plan

Here, you’ll quickly highlight the key marketing activities that you’ll use to drive new customers to your business. Try to stick to the most interesting or high-value stuff, like a website or social media .

Financial projections

Outline your expected revenue , expenses, and profits to give the reader an idea of your financial future.

Our tips for creating a one-page business plan.

If you’ve ever written something with a limited word count, you know that sometimes keeping things concise can be easier said than done.As you get writing your one-page business plan, here are some of our top tips so you can make the most of that one page.

• Focus on the need-to-know information.
• Avoid fluff and keep your sentences short.
• Link out to additional resources and material if more information is necessary.
• Don’t be afraid to strategically incorporate visuals to emphasize the important points.
• Feel free to up sections or have different versions of your one-page business plan based on who’s reading it. 
• Get creative with formatting to keep information organized.

One-page business plan example.

If you’re skeptical that all that information can fit on one page—we have proof! Here’s an example that you can use to start thinking about your business plan.

Download our free one-page business plan template.

A one-page business plan is one of the most important pages you’ll write for your business. While there’s a lot to think about, it’s worth the effort to give both you and your partners peace of mind. The good news is that we’ve done the heavy lifting for you! If the above one-pager looks good to you, we've pulled it together as a download for you. All that’s left for you to customize it for your unique business, fill in the sections, and get ready to launch your business. Download your one-page business plan template PDF Download your Homebase One-Page Business Plan Template Word document Get the all-in-one app to manage your team and your businessAs you think about starting your business, think about how you're going to keep track of your team! Get your business on track with one app to manage everything from employee scheduling to team communication. Try Homebase today!

{{banner-cta}}

One easy app to manage your hourly team.

Get your team in sync with our easy-to-use, all-in-one employee app.

Share post on

Homebase Team

Remember: This is not legal advice. If you have questions about your particular situation, please consult a lawyer, CPA, or other appropriate professional advisor or agency.

Popular Topics

August 29, 2024

December 25, 2023

October 27, 2023

Conquer Your Workday.

Homebase is the everything app for hourly teams, with employee scheduling , time clocks , payroll , team communication , and HR . 100,000+ small (but mighty) businesses rely on Homebase to make work radically easy and superpower their teams.

Sign up for our newsletter for product updates, new blog posts, and the chance to be featured in our Small Business Spotlight!

One page business plan: What to include and how to get started

Writing a business plan is a crucial step to starting or expanding your operations, but you don’t have to follow a traditional format. Developing a comprehensive business plan is useful if you’re seeking funding, but it’s also smart to write a shorter version, too. Enter: the one page business plan.

A one page business plan offers a broader, more approachable overview of your business.

For newer businesses, a one-page plan can serve as a starting point for fine-tuning business ideas and creating an in-depth business plan later on.

For established businesses, a one page business plan is an easy way to document changing strategies and update board members and senior staff on new goals. A one-page plan can also act as an elevator pitch or fact sheet to pique the interest of potential investors and lenders.

In any case, distilling your business’ mission and goals into one page forces you to reevaluate your ideas and priorities. This can ultimately help you make smarter decisions and run a more efficient operation.

To write an effective one page business plan, stick to the basics: discuss the market potential for your business and how your products or services will add value, explain your profit plan, and share your goals. Keep in mind that all the parts of a business plan should only be a few sentences, so it’s important to be clear and concise.

Here are the five components of a one page business plan template:

The summary provides a brief introduction to your business and what you hope to achieve. In addition to giving background information on your company, describe the services or products you offer and share your value propositions.

If you’ve been operating for a while, you may want to include a few company highlights or successes, like the fact that you hired five new employees last year or boosted sales by 10% from the previous quarter.

If your business is just getting off the ground, focus on explaining your vision and what makes your operation unique, whether it’s your commitment to 24/7 customer service or local product manufacturing.

2. Market analysis

One of the most important parts of a business plan is the market analysis , which explores the industry you’re in and customers you’re trying to reach. Using brief sentences or bullet points with statistics, you need to show that there’s a demand for your products and services, then talk about how you’ll satisfy that demand.

Start by identifying and describing your target market . Think college students or women age 30 to 50, for example. Taking into account factors like age, occupation, interests, issues, buying habits, and market trends, explain how you’ll position your products or services to appeal to these potential customers.

Next, you’ll want to include a few statistics or research notes about your industry and competitors, and explain how you plan to differentiate your business from companies offering similar things.

Learn how to conduct your own market research for your business>

3. Marketing and sales strategy

This part of your one page business plan summarizes how you’ll promote your business and convince customers to act. Start by sharing your business’ main marketing challenge. Do you have a difficult time getting traffic to your site, choosing which platforms to invest in , or converting leads to sales?

Your summary should explain in broad terms how you plan to address your marketing hurdles, whether that means increasing your marketing budget , adopting Google Analytics, or eliminating a platform that has little success.

If you have space, consider giving an overview of your sales funnel here, listing key details and distribution channels for each step—from awareness to action. Make sure you include a sentence or two that clarifies why you chose the particular marketing methods you listed.

Put together a cohesive marketing strategy for your business with our comprehensive guide>

4. Pricing and profit strategy

The point of this section is to demonstrate your business’ profit potential . Talk about your pricing strategy first: What do you need to charge to create a high-quality product or service that helps you attract customers and stay competitive? What’s more, how will those prices help you turn a profit after accounting for operational and production-related expenses?

This is a good area to share your business’ profit and loss numbers from last year. If your revenue exceeded what you spent, you can talk about what you did that was successful and how you hope to build on that momentum. If, however, your numbers show that you spent more than you earned, explain how you plan to change your approach going forward to become profitable.

If you don’t have financial data to pull from, include your six-month sales forecast and projected cash flow instead.

Set your pricing while protecting your profits>

In the final section of your one page business plan, list your most pressing or significant business goals . Do you want to acquire a certain number of email subscribers by the end of the quarter, for example, launch your first product in the next six months, or cut operational expenses by 15% in the next year?

For each goal you share, include a sentence or two that explains what steps you’ll take to carry it out, how you’ll measure your progress, and how you’ll overcome problems that occur. Mentioning potential obstacles is a good segue into discussing any funding, equipment, or hiring needs you might have. You might need to double your inventory to satisfy high customer demand during peak season, for example, which will require extra working capital.

Keep in mind that you’ll probably need a longer, more detailed business plan if you’re seeking funding , but a one-page version can help you get started.

Keep updating your one page business plan

The best part of a one page business plan is that it’s easy to adjust. Aim to keep revising and updating your plan as your strategies, budget, and priorities change. You can also tweak your business plan outline depending on what you want to emphasize. You can also tailor your one page business plan based on your target audience (i.e., potential funders, new employees, etc.).

To get started, check out these tools that will help you generate a one page business plan template of your own:

• LivePlan is a business plan writing software that guides you through the process of writing your perfect business plan.
• BPlans provides free business plan templates and resources for writing your own plan.
• The Small Business Administration has a business plan template you can use.
• Microsoft Office has countless stylish business plan templates to choose from.

Use a one page business plan to set yourself up for success

If you feel overwhelmed at the prospect of writing a business plan, start with a simple one page version. A one-page business plan is a perfect entrée into business plan writing. Plus, it’s an easy, effective way to clarify your ideas and goals no matter what stage your business is in.

Send invoices, estimates, and other docs:

• via links or PDFs
• automatically, via Wave

*While subscribed to Wave’s Pro Plan, get 2.9% + $0 (Visa, Mastercard, Discover) and 3.4% + $0 (Amex) per transaction for the first 10 transactions of each month of your subscription, then 2.9% + $0.60 (Visa, Mastercard, Discover) and 3.4% + $0.60 (Amex) per transaction. Discover processing is only available to US customers. See full terms and conditions for the US and Canada . See Wave’s Terms of Service for more information.

Related Posts

The information and tips shared on this blog are meant to be used as learning and personal development tools as you launch, run and grow your business. While a good place to start, these articles should not take the place of personalized advice from professionals. As our lawyers would say: “All content on Wave’s blog is intended for informational purposes only. It should not be considered legal or financial advice.” Additionally, Wave is the legal copyright holder of all materials on the blog, and others cannot re-use or publish it without our written consent.

• Our Services
• Our Process

WhatsApp: +92 345 5384026

E-mail: [email protected]

What is a Business Plan? Exploring Its Definition, Purpose, Key Elements, and Types. A Step-by-Step Comprehensive Guide for Entrepreneurs

Introduction.

A business plan serves as a roadmap for entrepreneurs, outlining the vision, goals, strategies, and financial projections of a business. It is a comprehensive document that provides a blueprint for success, guiding entrepreneurs through the various stages of starting and managing a business. It helps entrepreneurs articulate their business idea and communicate it effectively to stakeholders. The primary purpose of a business plan is to provide a clear overview of the business, including the target market, competition, marketing strategies, operations, and financial forecasts. It helps entrepreneurs identify challenges, opportunities, and risks associated with their business idea. A well-prepared business plan is crucial for securing financing as it demonstrates the potential and viability of the business to investors and lenders. It provides a framework for decision-making and strategic planning, helping entrepreneurs set realistic goals and track progress. A business plan fosters organizational alignment and serves as a reference point for employees. It encourages thorough market research and analysis, enabling entrepreneurs to tailor their offerings to meet customer needs effectively. In conclusion, a business plan is a comprehensive document that outlines the vision, strategies, and financial forecasts of a business. It guides entrepreneurs in various aspects of business development and is vital for attracting financing, making informed decisions, and achieving long-term success.

I. Definition of a Business Plan

A business plan is a written document that outlines the objectives, strategies, and financial forecasts of a business. It provides a detailed roadmap for the organization, guiding decision-making and facilitating communication with stakeholders.

II. What is the Purpose of a Business Plan?

The primary purpose of a business plan is to:

Communicate the Business Concept:

A well-crafted business plan effectively communicates the core concept of a business, including its products or services, target market, value proposition, and competitive advantage.

Secure Funding:

Entrepreneurs often rely on a business plan to secure financing from banks, investors, or other sources. A thorough business plan demonstrates the viability and potential profitability of the venture, instilling confidence in potential investors. Whether it's a bank loan, line of credit, or other sources of funding, a business plan is often required to secure financing. Lenders and financial institutions use the business plan to evaluate the creditworthiness and potential repayment capacity of the business.

Guide Business Operations:

A business plan helps entrepreneurs make informed decisions by outlining the strategies, objectives, and key milestones for the business. It acts as a reference point for tracking progress and ensuring that activities align with the overall vision.

Attract Business Partners:

A well-structured business plan can attract potential partners, suppliers, or key team members who can contribute to the success of the venture.

Roadmap for the Business:

A business plan serves as a roadmap that outlines the vision, mission, and strategic direction of the business. It provides a clear plan of action, defining goals and objectives, and guiding decision-making at every stage.

Attracting Investors:

A well-crafted business plan is essential for attracting investors, lenders, or venture capitalists. It showcases the potential profitability and viability of the business, highlighting market opportunities, competitive advantages, and financial projections. Investors rely on business plans to assess the risks and potential returns of an investment.

Internal Communication and Alignment:

A business plan serves as a communication tool within the organization. It helps align the team and stakeholders by providing a shared understanding of the business's goals, strategies, and expectations. It ensures that everyone is working towards a common vision.

Strategic Decision-Making:

A business plan provides a structured framework for making strategic decisions. It helps entrepreneurs analyze market trends, competition, and customer needs, enabling them to make informed choices about product development, pricing, marketing, and expansion strategies.

Performance Measurement and Tracking:

A business plan sets clear objectives, milestones, and key performance indicators (KPIs). It allows entrepreneurs to track progress, measure performance, and compare actual results against projected targets. It helps identify areas of success and areas that require improvement.

Operational Guidance:

A business plan guides day-to-day operations by outlining processes, workflows, and operational strategies. It provides a reference point for managing resources, hiring employees, setting pricing structures, and establishing distribution channels.

Business Valuation and Exit Strategies:

A well-documented business plan is crucial when valuing a business for potential sale or attracting potential buyers. It provides a comprehensive overview of the business's operations, financial health, market position, and growth potential.

Entrepreneurial Focus and Discipline:

Developing a business plan requires entrepreneurs to think critically, conduct market research, and set clear goals. It instills discipline and focus, ensuring that entrepreneurs remain committed to their business objectives.

In summary, a business plan is used as a strategic tool to guide the business, attract investors and lenders, secure financing, align stakeholders, make informed decisions, measure performance, operate efficiently, and plan for the future. It is a dynamic document that should be regularly reviewed and updated as the business evolves.

III. What are the steps involved in writing a business plan?

Writing a business plan is a structured and strategic process that involves conducting thorough research, gathering relevant data, and carefully planning the content. It typically begins with an executive summary that provides a concise overview of the business. The company description section follows, highlighting the mission, legal structure, and key details of the business. A comprehensive market analysis is then conducted to understand the target market, industry trends, and competitors. The products or services are described in detail, emphasizing their unique features and value proposition. The marketing and sales strategies outline how the business will attract and retain customers, including pricing, distribution channels, and promotional activities. The operational plan covers the day-to-day operations, including production processes, team structure, and key partnerships. Financial projections are developed to project revenue, expenses, and profitability. Finally, an implementation plan is created to outline the steps, timelines, and milestones for executing the business plan. Regular review and revision of the plan is essential to ensure its accuracy and relevance as the business evolves. Overall, a well-written business plan serves as a roadmap, guiding decision-making, attracting stakeholders, and fostering the success of the business.

IV. What are the Key Components of a Business Plan?

A comprehensive business plan typically consists of the following key components:

Executive Summary:

This section provides a concise overview of the business , highlighting its mission, vision, and unique selling proposition. It should capture the reader's attention and provide a snapshot of the business plan.

Company Description:

The company description provides detailed information about the nature of the business, its legal structure, location, and history. It should also highlight the industry, market size, and potential growth opportunities.

Market Analysis:

This section analyzes the target market, including its size, trends, customer needs, and competition. It includes a thorough assessment of the industry landscape, competitor analysis, and a clear understanding of the target market's demographics, psychographics, and buying behaviors.

Products or Services:

Here, entrepreneurs outline the details of their products or services, emphasizing their unique features, benefits, and competitive advantages. They should highlight how their offerings address customer needs and differentiate them from competitors.

Marketing and Sales Strategy:

This section outlines the strategies and tactics the business will employ to promote its products or services and reach its target audience. It includes pricing, distribution channels, branding, advertising, and sales projections.

Organizational Structure and Management:

This component describes the legal structure of the business, the roles and responsibilities of key team members, and their qualifications. It also covers any advisory board or external professionals involved in the business.

Financial Projections:

The financial section provides a comprehensive analysis of the business's financial health, including projected income statements, cash flow statements, and balance sheets. It should include assumptions, break-even analysis, and anticipated return on investment.

Funding Request:

If seeking funding, this section outlines the financial requirements of the business, including the amount of funding needed, its purpose, and the proposed repayment terms.

Implementation Plan:

The implementation plan details the actionable steps required to launch and operate the business successfully. It includes timelines, milestones, and key performance indicators to track progress.

Risk Assessment:

Identifying and assessing potential risks and challenges is crucial. This section highlights the risks associated with the business, such as market volatility, regulatory changes, or operational risks, and proposes risk mitigation strategies.

V. Benefits of a Business Plan

A well-prepared business plan offers numerous benefits to entrepreneurs and stakeholders:

Clarity and Focus:

Developing a business plan forces entrepreneurs to clarify their vision, mission, and goals. It provides a structured framework for making decisions, ensuring that activities are aligned with the overall strategy.

Securing Financing:

A comprehensive business plan enhances the likelihood of securing funding. It demonstrates the business's potential for profitability, making it an attractive opportunity for investors, lenders, or venture capitalists.

Strategic Planning:

A business plan serves as a strategic tool, helping entrepreneurs assess the feasibility of their ideas, conduct market research, and identify opportunities for growth and expansion.

Performance Measurement:

By setting clear objectives and milestones, a business plan enables entrepreneurs to track their progress, measure performance, and make adjustments as needed. It provides a benchmark for evaluating success and identifying areas for improvement.

Stakeholder Communication:

A business plan is a valuable communication tool for stakeholders, including investors, employees, suppliers, and partners. It provides a clear understanding of the business's goals, strategies, and financial projections, facilitating effective collaboration.

VI. What are the various types of Business Plans?

There are several types of business plans that cater to different needs and circumstances. The specific type of business plan you choose to develop depends on your goals, audience, and the nature of your business. Here are some common types of business plans:

Traditional Business Plan:

This is the most common type of business plan, covering all aspects of the business. It includes sections on the executive summary, company description, market analysis, products or services, marketing and sales strategies, organizational structure, financial projections, and funding request. It is comprehensive and suitable for startups, small businesses, and established companies.

Lean Startup Plan:

Popularized by the lean startup methodology, this plan is designed for entrepreneurs looking to launch a new business quickly and with limited resources. It focuses on the key elements required to test and validate the business idea, including the problem being solved, the solution, target market, and revenue streams. It is a more concise and iterative plan that allows for flexibility and adaptation.

One-Page Business Plan:

As the name suggests, this plan condenses all the essential information onto a single page. It provides a high-level overview of the business concept, target market, unique value proposition, marketing strategies, and financial projections. It is a useful tool for internal communication, quick reference, or initial discussions with potential investors.

Operational Business Plan:

This type of plan focuses on the day-to-day operations of the business. It includes detailed information about the operational processes, production or service delivery, staffing, facilities, and resources required. It is commonly used by established businesses or when seeking financing for specific operational improvements or expansion.

Strategic Business Plan:

A strategic business plan outlines the long-term vision and strategic direction of the business. It includes a thorough analysis of the industry, market trends, competition, and growth opportunities. It establishes strategic goals, identifies key initiatives, and sets out the strategies to achieve them. This plan is suitable for businesses undergoing significant changes, such as entering new markets, launching new products, or undergoing a restructuring.

Internal Business Plan:

An internal business plan is used for internal purposes within the organization. It focuses on operational details, such as departmental objectives, budgeting, resource allocation, and performance targets. It serves as a guide for department managers or specific teams within the organization.

Growth or Expansion Plan:

This type of plan is developed when a business seeks to expand its operations, enter new markets, or introduce new product lines. It includes an analysis of market opportunities, growth strategies, financial projections, and implementation plans for expansion.

Feasibility Study:

A feasibility study assesses the viability of a business idea or project. It evaluates the technical, economic, operational, and legal aspects to determine if the idea is feasible and if there is a market demand for it. It includes market research, financial analysis, risk assessment, and recommendations on whether to proceed with the business idea.

It's important to choose the type of business plan that best suits your needs and objectives. Remember that business plans are dynamic documents and can be customized or combined based on your specific requirements.

A business plan is an indispensable tool for entrepreneurs embarking on a new venture or seeking to grow their existing business. It provides a roadmap, guiding decision-making, attracting investors, and ensuring the organization remains focused on its goals. By outlining the company's vision, market analysis, marketing strategies, and financial projections, entrepreneurs gain a comprehensive understanding of their business and increase their chances of success. The benefits of a well-crafted business plan extend beyond securing financing—it serves as a strategic guide, fostering clarity, innovation, and growth. Entrepreneurs should dedicate the time and effort required to create a thorough business plan, continuously reviewing and updating it to reflect changes in the business landscape. With a solid business plan in place, entrepreneurs are better equipped to navigate challenges, seize opportunities, and achieve long-term success. 

Contact us today if you are in need of a professionally-crafted business plan that aligns with your unique goals and requirements. Our team of experienced business consultants is dedicated to providing comprehensive support and expertise in developing business plans that effectively communicate your vision, attract investors, and guide your path to success. Whether you are a startup looking to secure funding or an established business seeking strategic growth, our tailored approach ensures that your business plan encompasses all the necessary components, including market analysis, competitive positioning, financial projections, and operational strategies. With our assistance, you can navigate the complexities of business planning with confidence, knowing that your plan is strategically designed to maximize your chances of achieving your objectives. Contact us today to discuss your business needs, and let us help you create a compelling business plan that sets you on the path to prosperity.

Suggested Articles:

How to Perform Due Diligence for Acquisition Purposes

Securing Funding: Top 10 Reasons Business Plans Fail and How to Avoid Them

The Importance of an Exit Strategy in Startup Business Planning

Transforming Your Vision into a Winning Business Plan

Get in touch, got some ideas have questions we're ready for them..

©2024 businessplanprovider.com. All rights reserved. Privacy Policy

The Leading Source of Insights On Business Model Strategy & Tech Business Models

How to Write a One-Page Business Plan

A one-page business plan is a simple tool to clear your mind. It focuses on three questions: What core problem am I solving? Who are my potential key customers? Where do I find them? It helps define the problem, profile the key customer, and find the key distribution channel.

Table of Contents

Why use a one-page business plan?

One of the issues of traditional business planning is about its complexity, which makes it hard to recognize its value. Indeed, a business plan should be a way to allow you to take action.

The main issue with traditional business planning though is that rather than make it easier to take actions, it makes it harder. Indeed, often too much planning can induce the so-called analysis paralysis.

A scenario in which draws a massive plan becomes an excuse not to act. Instead, a one-page business plan is just the opposite.

That is an exercise which aim is to draw in a page all the necessary elements your business model needs to get going — nothing more, nothing less.

It is vital to understand when it makes sense to use a traditional business plan instead.

Is the one-page business plan better than a conventional business plan?

It is important to remark that there isn’t the best way to draw a business plan. Between a traditional and one-page business plan, we can’t say that one is better than the other in all the situations.

They have different aims. The traditional business plan is extremely well suited for someone that is starting up a business that needs financing. The one-page business plan instead is tailored for someone that needs the necessary input to get the business started.

Therefore, if you will need other investors to chip into your business, a one-page business plan won’t do. Especially if you go through a more traditional way to get the financing, you will need a structured business plan.

On the other hand, if you need to understand whether your idea is actionable, you’re good with a one-page business plan!

Thus, we need to draw a line between venture capital vs. bootstrapped.

Venture capital vs. bootstrapped

In the business world, there are different schools of thought about what’s the best way to launch, run and grow a startup. It all depends on how you see the business world but also how the market is looking like in a particular historic context.

For instance, in a situation where venture capital firms have massive resources and the economy, in general, is in good health, it might be easier for startups to raise capital.

In that context, as an entrepreneur, it might make sense to ask for financing for your ventures. Therefore, a traditional business plan will help you go through that process.

Take the opposite scenario, where funding is scarce, and resources are not easy to find on the market. In that scenario, the so-called bootstrapped mode, or you grow your business it might make more sense. Thus, a one-page business model will do!

Once again, there isn’t the best way to do something. But instead, the way that suits you best, based on the context and how you believe business should work.

For instance, if you don’t want the interference of other people telling you how to run, and grow your business, venture capital is not for you and a one-page business plan is the best tool you can use for clarity of mind.

In the scenario, where you instead want to have a group of people supporting the growth of your business, and you’re also ready to take those interferences then a tradition business plan is the tool for you.

None will back you up without a proper business plan with a three to five years projections.

Many assumptions vs. a few assumptions

Another critical distinction between traditional business planning vs. the one-page business planning is the role of assumptions.

When you draw a traditional business plan, there are many assumptions on which the business plan is based on. However, one of the premises of the lean startup is just the opposite.

You need to get outside and test those assumptions quickly. Indeed, with the one-page business plan, you do just the opposite. Get to act as promptly as possible to check the assumptions you have about your business.

The one-page business plan will be changed over and over again in the course of bootstrapping your business until you’ll have found the market fit and get to the 10x phase of growth .

Key elements of the one-page business plan

What parts should you take into account for the one-page business plan?

There are a few questions you’ll need to address to understand the viability of your plan:

• Did I identify a problem that other people are experiencing? 
• Is this problem experienced by enough people to justify a business? 
• What solution can I bring to those people? 
• Would people be willing to pay to get that problem solved? 
• Would I make enough margin to have a viable business? 
• Why would those people pick my solution? 
• Do I need a team to deliver this solution? 
• Do I need money or can I bootstrap it? 

Start with the end in mind until you get to the action plan

One of the primary pitfalls of a business plan is usually too much planning and fancy numbers and no vision at all. Indeed, one of the key ingredients to be able to achieve massive results is a bold vision .

The bold vision doesn’t mean you have to start a business to leave a legacy behind. Instead, that can also be a vision to dominate the market in a specific niche .

The vision is about what you want your business to become when it grows up; how it will need to be.

Once you have that you need to set a mission statement , the mission statement is actionable, and it starts from the vision , but it sets it in motion in the here and now.

Within your mission , you’ll need to set a few key objectives you want to achieve. You don’t need a list of dozens of items. A list of the first few objectives and steps would do.

What do you need to achieve those objectives? How much financial resources? Do you need a team? Do you need tools? List them up to understand what resources they require.

With a vision , a mission statement and the objectives in place, that is when you need an action plan. A set of things to do in the short-term to achieve those objectives you prefigured.

One-page business plan in action

Once you understand the context you can map on a single page the kind of business you want to build. You don’t need complex tools or business plans (unless you’re going to ask for investments, in that case, you need a solid business plan and a pitch deck).

Instead, a piece of paper with some key elements of how you want your business to look like will do.

You can map three key elements initially:

• What core problem am I solving? (problem definition)
• Who are my potential key customers? (customer profiling)
• Where can I find them? (distribution)

Your turn now!

Key Highlights of the One-Page Business Plan:

• Simplicity: A one-page business plan is a concise tool designed to provide clarity by focusing on key elements of your business model .
• What core problem does your business solve?
• Who are your potential key customers?
• Where can you find them?
• Actionable Planning: Unlike traditional complex business plans, a one-page plan is meant to inspire action rather than induce analysis paralysis.
• Analysis Paralysis: Traditional planning can lead to overthinking and inaction, known as analysis paralysis. A one-page plan encourages immediate action.
• Targeted Use Cases: The one-page plan is suitable for situations where you need clarity to get your business started quickly, but it’s not ideal for securing investor financing.
• Context Matters: Choose between a traditional business plan and a one-page plan based on factors such as your financing needs, growth strategy , and market conditions.
• Venture Capital vs. Bootstrapped: The choice between seeking venture capital and bootstrapping impacts the planning approach. Each has its merits based on market dynamics.
• Assumption Testing: The lean startup approach emphasizes testing assumptions quickly, aligning with the one-page plan’s focus on rapid action and learning.
• Few Assumptions: Unlike traditional plans with numerous assumptions, the one-page plan encourages prompt validation of key assumptions in the real world.
• Identifying a common problem.
• Determining if there’s a substantial market for the solution.
• Describing the solution’s value.
• Assessing willingness to pay for the solution.
• Ensuring viable profit margins.
• Explaining why customers would choose your solution.
• Considering team and resources needed.
• Evaluating whether funding is necessary.
• Start with Vision: Develop a bold vision for your business’s future, encompassing growth and achievements.
• Mission Statement and Objectives: Create a mission statement that translates the vision into action, supported by a concise list of key objectives.
• Resource Requirements: Identify the resources required to achieve your objectives, including financial, team, and tool needs.
• Action Plan: Detail the short-term actions needed to accomplish the objectives set in your mission statement .
• Core problem you’re addressing.
• Potential key customer profiles.
• Distribution channels to reach customers.
• Simplicity and Clarity: The one-page business plan offers a straightforward approach to capture essential business aspects and guide your initial steps.

Table Summary

Related business concepts.

Innovation Theory

Business Competition

Business Scaling

Disruptive Innovation

Innovation Funnel

Four-Step Innovation Process

History of Innovation

Read also:  Business Strategy, Examples, Case Studies, And Tools

Read Next:  Lean Canvas ,  Agile Project Management ,  Scrum ,  MVP ,  VTDF .

The FourWeekMBA Business Strategy Toolbo x

Tech Business Model Framework

Blockchain Business Model Framework

Technological Modeling

Transitional Business Models

Minimum Viable Audience

Market Expansion

Speed-Reversibility

Growth Matrix

Revenue Streams

Revenue Model

Methodologies & Frameworks

• Business Model Canvas Guide 
• Business Model Patterns
• Business Model Navigator
• Build An Exceptional Viable Product
• Blitzscaling Canvas Guide
• Lean Startup Canvas
• Business Model Framework
• Flywheel And Virtuous Sales Cycles
• Growth Marketing
• Pretotyping Methodology
• SEO Hacking Framework
• Technology Adoption Curve
• Value Proposition Canvas
• What Is OKR
• What Is Scrum?

Business Models Case Studies

• Amazon Business Model
• Netflix Business Model 
• Starbucks Business Model
• LinkedIn Business Model
• Google Business Model
• Uber Business Model
• Lyft Business Model
• Robinhood Business Model
• Nike Business Model
• DuckDuckGo Business Model
• ALDI Business Model
• Apple Business Model
• TOMS Business Model
• Slack Business Model
• Fiverr Business model
• Pinterest Business Model
• Telegram Business Model
• TripAdvisor Business Model
• Booking Business Model

Startup Resources

• Business Strategy
• Business Models
• Business Model Innovation
• Product-Market Fit
• Digital Business Models
• Sales And Distribution Lessons
• Business Development
• Market Segmentation
• Marketing vs. Sales
• Distribution Channels
• Inventory Turnover Ratio
• Business Books To Read
• What Is A Unicorn Company?

More Resources

About The Author

Gennaro Cuofano

Leave a reply cancel reply, discover more from fourweekmba.

Subscribe now to keep reading and get access to the full archive.

Type your email…

Continue reading