How to write a business plan for a small business

What a small business plan includes

• Business snapshot: what you do, for whom and why they would pay
• Customer: who they are, what problem they have and how they solve it today
• Offer and pricing: what you sell, what it costs you and what you charge
• Marketing: the two or three ways you will find your first customers
• Operations: what you need to deliver the work, such as tools, people and time
• Money: startup costs, monthly costs and your break-even point
• Goals: what you want to reach in 90 days and 12 months

Start with one page

Most small businesses don't need a 40-page document. Write one page that answers six questions: who is the customer, what is the problem, what do you sell, how much does it cost, how will you reach them and what do you need to start.

If you can't fill in a section, that is useful information: it shows what to research or test next.

Work out your break-even point

Add up your monthly costs, then divide by the profit you make on each sale. The result is how many sales you need each month to cover your costs. For example, if your monthly costs are $1,200 and you make $60 per sale, you need 20 sales a month.

Use this to check whether your goals are realistic before you spend money.

When you need a formal plan

Lenders, investors and some programs require a formal plan in their own format. Write your one-page version first, then adapt the content to their template.