Business Resource Center
How to Write a Business Plan
The early stage of starting a business can be riddled with questions. Creating a business plan is a great place to start, but you still might be asking yourself, “How long should a business plan be?” or “What should I include in a business plan?” A business plan can be as long or short as you’d like— it really depends on the needs and complexity of your business—but let’s dive into some key sections you should plan to include.
Two Types of Business Plans
According to the Small Business Administration, there are two types of business plans. The traditional business plan is a very detailed plan that takes more time to write. This type of business plan would be requested by lenders and investors. A lean startup plan, meanwhile, is more of an overview that contains the key elements only.
Traditional Business Plan Components ⬇️
- Executive summary: One page in length that provides an introductory overview of your business.
- Company description: An in-depth explanation of why your business exists. Once tailored to your customer audience, this section is perfect for using as the “About Us” page on your website or on your social media profile.
- Market analysis: The market analysis shows the research you have done to identify your potential customers (target market) and your competition.
- Organization and management: This section will show if there are multiple people in leadership roles within your business.
- Services provided: Determine the range of services you will provide as well as the geographical area that you will service.
- Marketing plan: Brainstorm how customers will find you and what the customer’s experience with your services entails.
- Funding request (if applicable): If funding is needed to set up your business, this section assesses how much funding is required and what specifically the funding will be used for.
- Financial projections: When you know the size of the market you can reach, the competitive price you can charge for your services and an estimated cost to operate your business, you can estimate how much money your service will make in the next three months, the next six months, the next year, in three years, and in five years.
- Appendix: Anything you reference in your business plan, such as research, articles, and financial projections, should be found in the appendix.
Lean Startup Business Plan Components ⬇️
- Key partnerships: These include suppliers, manufacturers, subcontractors, and similar strategic partners.
- Key activities: Briefly describe how customers will find you and how your business will gain a competitive advantage. This is similar to a marketing plan.
- Key resources: List out what resources are going to help you achieve success. This can be staff, capital, or intellectual property.
- Value proposition: Highlight the unique value that your business will bring to the market—what makes your business better than all of the similar service businesses out there.
- Customer segments and relationships: Describe who your business will serve, how they will find your business, and how your business will foster relationships with those customers.
- Cost structure: List the most significant costs that your business will face.
- Revenue streams: Show how your business will make money. Show the pricing structure for your services.
Conclusion
Writing a business plan is essential for any aspiring home services business owner. It serves as a blueprint that guides your business from the initial startup phase through establishment and growth. By clearly outlining your business objectives, strategies, and anticipated challenges, you are better equipped to navigate the competitive landscape and achieve success.
