Key Questions
- Do I need a business plan? Why?
- What format should I use for my business plan?
- What are the key components of a business plan?
- How often should I update my business plan?
- How much time should I spend on the business plan?
- What if my business plan turns out to be wrong?
- What are examples of good business plans?
Worksheets
- Strategyzer: The Business Model Canvas (PDF)
- Smartsheet: One-Page Business Plan Templates
- SCORE: Business Plan Template for a Startup Business
- Bplans.com: Business Plan Template for Small Businesses (email required)
Start Here
Bplans.com: What is a Business Plan?
(3 min video.) A business plan is a dynamic, living document that outlines your business goals and how you intend to achieve them. It’s not a rigid document written once and forgotten, but rather a flexible guide that evolves as your business grows.
Alexander Osterwalder: Why Lengthy Business Plans Increase the Risk of Failure
(3 min read.) Lengthy plans can increase failure risk as ideas rarely survive first contact with customers. Once approved, plans become rigid expectations, hindering pivots. Instead, follow Michael Schrage’s advice: “A testable idea is better than a good idea.” Use the Business Model and Value Proposition Canvas to prototype quickly, define hypotheses, test desirability, feasibility, and viability, then iterate based on evidence. This approach reduces risk by adapting to real-world feedback before committing to a detailed plan.
Learn More
Patrick Bet-David: How to Write a One Page Business Plan
(18 min video.) In this video Patrick discusses the process of writing a one-page business plan, emphasizing its simplicity and effectiveness compared to traditional lengthy plans. He highlights the importance of reflecting on past experiences and mistakes to improve future planning. The one-page plan involves identifying key goals, strategies, and habits for the upcoming year, emphasizing daily review and reinforcement.
Patrick FitzGerald: Business Plan Writing 101: Wharton Entrepreneurship Series
(48 min video.) Patrick covers his eight essential elements of a successful business plan. 1. Company Description: This section requires a concise and captivating two-sentence pitch that effectively explains the company’s purpose and value proposition. 2. Team: Investors prioritize understanding the individuals behind the company, focusing on their industry experience, educational background, and unique skills. 3. How it Works: the company’s operational model, explaining the user experience and the underlying technology. 4. Marketplace & Industry Expertise. 5. Roadmap: the company’s future trajectory, detailing key milestones and strategies for achieving growth over the next 18 months. 6. Competition. 7. Revenue & Cost Drivers: while detailed financial projections may be less crucial at the initial stage, a clear understanding of how the company plans to make money and its associated expenses is essential. 8. Ask: a concise statement outlining the amount of funding sought and its intended use.
Paul Graham: Viaweb’s First Business Plan
(13 min read.) Viaweb’s original business plan outlines a web-based catalog generator called Webgen. It aimed to revolutionize e-commerce by allowing users to create and manage online catalogs easily and affordably. The plan describes the system’s features, potential market impact, and team members. It estimates needing $15,000 in startup capital for equipment and secure server software.
Bplans.com: 550+ Business Plan Examples to Launch Your Business
A wide variety of sample business plans, aimed at securing financing.
Bplans.com: 7 Different Types of Business Plans Explained
(11 min read.) This article outlines seven types of business plans: traditional, one-page, lean, growth, internal, 5-year, and nonprofit. It emphasizes choosing the right plan based on your business stage, audience, and purpose. Traditional plans are comprehensive, while one-page plans offer quick overviews. Lean and growth planning processes focus on testing ideas and financial forecasting, respectively. Internal plans are for management use, 5-year plans for long-term vision, and nonprofit plans address unique funding needs. The article advises starting with a simpler plan and expanding as needed, providing resources for plan creation.
Aaron Epstein: YC Guide to Business Models
(32 min video + short article overview.) The video outlines nine common startup business models: SaaS, Transactional, Marketplaces, Subscription, Enterprise, Usage Based, E-commerce, Advertising, and Hardtech/Bio/Moonshots. Each model is briefly described with its primary metrics and key takeaways. The models vary in revenue structures, target customers, growth strategies, and challenges. Understanding these models helps entrepreneurs identify the most suitable approach for their startup and focus on relevant metrics for success.
Joe Hadzima: MIT – Nuts and Bolts of New Ventures and Business Plans
(60 min video.) Joe emphasizes a business plan is not simply a fixed document, but a shared vision between a team and its stakeholders. He highlights the importance of understanding the venture’s value proposition, emphasizing that the primary goal is to create and capture value. Joe then delves into the practical aspects of business planning, providing insights into the elements that should be included in a plan and the rationale behind each component. A key takeaway is that a business plan serves as a selling document, aiming to convince investors, partners, and other stakeholders of the venture’s viability.