Business Planning 101: The First-Timer’s Guide to Writing a Business Plan
A business plan is your roadmap to success. It summarizes the mission, goals, and financial objectives of your business while providing details on how you will accomplish them in terms of marketing, execution, and funding.
Creating a business plan is the first step to securing funding. Plans can be simple and concise or detailed with hundreds of pages. With so many templates and resources available, the options can feel overwhelming.
This guide answers:
What are business plans for?
Can I start my business without a business plan?
How long should my business plan be?
What are the most important aspects of a business plan?
Are financial projections important?
How do I start writing a business plan?
Where can I find additional support for business planning?
What Are Business Plans For?
A business plan is a blueprint for running your business. It typically provides details on the long-term growth plan, helping you turn ideas into actionable strategies.
A strong business plan:
Pushes you to establish tangible objectives.
Helps you manage finances and set a timeline to generate income.
Provides a foundation to compete and grow.
When applying for funding, banks and investors will want to see your business plan to assess its viability. In Canada, nearly 21.5% of small businesses fold before the end of their first year. About 50% of small businesses survive for five years and a third get to celebrate ten years in business (source), so funders need assurance that you’ve developed a sustainable and profitable strategy.
Can I Start My Business Without a Business Plan?
Technically, yes—but it’s not recommended. A business plan is critical for turning ideas into profitable ventures. It prepares you for obstacles, creates a roadmap for growth, and makes it easier to secure funding.
If you’re serious about starting a business, don’t let the process of writing a plan intimidate you. It’s a key step toward building resilience and setting your business up for success.
How Long Should My Business Plan Be?
Business plans aren’t one-size-fits-all. They can range from a concise 1-3 pages to extensive documents with detailed data and appendices.
Two Common Types of Business Plans:
Lean Plans
Typically 1-3 pages.
High-level summaries ideal for startups needing flexibility.
Covers key elements like business overview, target audience, and financials.
Use tools like the Strategyzer Business Model Canvas or HubSpot One Page Business Plan.
Comprehensive Plans
Typically 30+ pages.
Required for funding applications.
Includes market research, financial projections, and a detailed execution strategy.
Start with a template like the BDC Business Plan Template, Futurpreneur Business Plan Writer, or Shopify Business Plan Template
What Are the Most Important Aspects of a Business Plan?
Regardless of length, every business plan should demonstrate the business opportunity, execution strategy, and funding model. Key components include:
Business Overview
Mission and objectives.
Product/service details and unique selling proposition.
The problem your business solves.
Market/Competitor Analysis
A SWOT analysis (Strengths, Weaknesses, Opportunities, Threats).
Comparisons to competitors.
Target Market
Audience demographics and personas.
Why your audience needs your offering.
Operating Plan
Execution timeline, staffing, and roles.
Organizational structure.
Marketing Plan
Strategies and tools for reaching your audience.
Tactics for engagement and retention.
Financial Plan
Startup and operating costs.
Revenue generation strategies.
Financial projections like a break-even analysis.
Use tools like Wave or QuickBooks Canada to manage your finances.
Include a 1-2 paragraph executive summary to highlight these key points.
Leverage AI and Emerging Business Tools
Entrepreneurs now have access to AI tools and software to streamline the business planning process:
Jasper: Create polished mission statements, marketing strategies, and more.
LivePlan: Use AI-driven insights to generate financial forecasts and track performance.
Canva: Design visual elements like charts or summaries for your business plan.
These tools not only save time but also enhance the professionalism and clarity of your plan.
Consider Emerging Trends
When creating your business plan, think about how modern business models can strengthen your case:
Subscription Services: Offer consistent revenue streams through memberships or recurring purchases.
Sustainability Initiatives: Incorporate eco-friendly practices to appeal to socially conscious consumers.
Digital Products: Scale your business quickly with downloadable resources or online courses.
Highlighting these elements can make your business stand out to potential investors.
Final Thoughts
When writing your business plan:
Use clear, concise language.
Focus on actionable objectives.
Provide data and visuals where possible.
The effort you put into your business plan will set the stage for funding applications and long-term success.
