How to Write a Business Plan That Works

A business idea, no matter how brilliant, needs more than enthusiasm to thrive—it requires a clear, structured plan. Whether you’re launching a new venture, scaling up, or rethinking your operations, a well-written business plan is essential.

In summary, it offers a roadmap for your business’s journey, outlining financial goals and the steps to achieve them.

In this guide, you’ll discover step-by-step tips to write a business plan that is not only effective but persuasive—one that sets your business up for long-term success.

Why a Business Plan Matters

1. It Helps You Prioritise

A business plan acts as your company’s compass. It:

• Clarifies your objectives
• Defines short- and long-term goals
• Maps out strategies to achieve them
• Helps you identify and manage potential risks

Having a document that puts everything into perspective allows you to stay focused, avoid distractions, and make decisions with confidence.

2. It Puts You in Control

The process of writing a business plan pushes you to evaluate every aspect of your business and encourages you to reflect on what’s working, what isn’t, and where to improve.

3. It Helps You Secure Funding

If you’re seeking funding from banks or investors, your business plan is your chance to make a compelling case. A clear, well-structured plan shows that you understand your market, have realistic financial projections, and are prepared for growth.

Step-by-Step Guide to Writing Your Business Plan

Decide Who the Plan Is For

Start by identifying your audience. Is your business plan for internal use—to guide your team? Or will you present it to lenders, partners, or investors?

Knowing your audience will help shape the content, tone, and focus of your plan. For example:

• Internal use: Focus on strategy, operations, and resource planning.
• External use: Emphasise financial viability, growth potential, and market opportunities.

Write the Executive Summary (Last)

Although the executive summary is the first section of your business plan, it’s often best written last. This summary should briefly cover your mission and vision, describe what your business does, outline the products or services you offer, and highlight your target market and financial goals.

It should also include a concise explanation of what sets your business apart. Keep it straightforward and compelling. Aim to deliver essential information in a clear and confident tone without overhyping.

Describe Your Business

In the company overview, offer a clear picture of your business structure and background. Include:

• Registered business name and location
• Legal structure (sole trader, partnership, company, etc.)
• Founders and key team members, with relevant expertise
• Business history (if applicable)
• Nature of your operations

This section builds context for your business goals and sets the stage for what follows.

State Your Business Goals

Outline your short-term and long-term objectives. Be specific about what you plan to achieve over the next one to five years. Realistic and measurable goals show that you’ve thought things through and have a clear path forward.

Describe Your Products or Services

Use this section to paint a clear picture of your offering. Describe each product or service and explain how it works, who it’s intended for, and why it provides value. Outline how you set your prices and what kind of customers you serve.

Present Your Market Analysis

Show that you’ve done your research. Investors and stakeholders want to know:

• Who your competitors are
• What they do well
• Where you outperform them
• Gaps in the market you’re addressing
• Emerging trends (social, environmental, technological)
• Customer segments and behaviours

Support your analysis with data. If you’re entering a niche or underserved market, explain the opportunity.

Define Your Unique Selling Proposition

What makes your business special? Perhaps it’s a unique product, outstanding customer service, or innovative technology. Maybe it’s the experience and reputation of your team, or the results you’ve already achieved.

Whatever it is, clearly define what sets you apart and provide evidence to support your claims. You can reference awards, media coverage, customer testimonials, or impressive results that support your market positioning.

Explain Your Marketing and Sales Strategy

Your marketing strategy should describe how you’ll reach potential customers and convince them to choose your business. Detail the channels you’ll use and how you’ll allocate your marketing budget.

Describe your sales funnel, outlining how you’ll convert interest into purchases and how you’ll retain customers over time. If you plan to implement customer loyalty programs or post-sales support initiatives, include those too.

Build Customer Profiles

Create detailed customer personas based on demographics, behaviour, and preferences. This will help tailor your marketing strategy and strengthen customer relationships.

Analyse Your Competitors

Competitor analysis goes beyond naming your rivals. Identify what they do well, where they fall short, and how your business can do better. You might offer faster delivery, lower prices, or more sustainable products.

This section should prove that you understand the competitive landscape and have a clear plan for carving out your space in it.

Add a SWOT Analysis

A SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis gives readers an overview of internal and external factors affecting your business. It’s also an opportunity to show your ability to anticipate challenges and adapt accordingly.

Prepare and Present Your Finances

The financial section is especially important if you’re applying for funding. Include your income statement, balance sheet, and cash flow statement, as well as future projections for the next three years.

If you’re just getting started and don’t have historical data, provide reasonable forecasts based on your market research and business model. Be specific about how much funding you need, how you intend to use it, and how you plan to repay it or generate returns.

Outline Your Business Operations

Describe your day-to-day operations, including team structure, responsibilities, workflows, and supplier relationships. Help readers understand who does what, how tasks are executed, and how much those operations cost.

Tip: If you have staff with exceptional skills or experience, highlight how they contribute to your competitive advantage.

Detail Your Funding Requirements

If you will be applying for a loan or investors, clearly state how much capital you’re seeking and how the funds will be used. Break down the budget, explain how the investment supports your growth, and, if applicable, specify repayment terms.

This kind of transparency reassures potential backers and shows that you’ve thought through your financial strategy.

Include an Exit Strategy

If you’re targeting external investors, it’s helpful to include an exit strategy. This might involve selling the company, launching a public offering, or merging with a larger firm.

By outlining how investors might recover their capital and earn a return, you demonstrate long-term thinking and reduce perceived risk.

Use an Appendix for Supporting Documents

An appendix is the place for any supporting materials that add depth to your business plan but don’t fit into the main sections. This might include licenses, contracts, product specs, resumes, financial records, or market research data.

If you include a lot of content here, consider adding a table of contents for easy navigation.

Best Practices and Final Tips

• Be realistic: Avoid inflated projections. Investors value transparency.
• Tailor your plan: Adjust tone and details based on your audience.
• Take your time: A strong business plan is rarely written overnight.
• Protect your plan: Consider using non-disclosure clauses or agreements.
• Review regularly: Your business plan is a living document. Revisit and update it as your business evolves. Keep older versions for comparison.
• Seek help if needed: Don’t hesitate to reach out to business advisers or consultants for feedback or review.

The Australian government offers a dedicated website to support entrepreneurs in developing their business plans. On business.gov.au, you’ll find a variety of practical tools and templates, as well as step-by-step guides and checklists to help you plan more effectively.

Whether you’re just starting or looking to refine your existing strategy, these free resources can simplify the planning process and ensure you’re covering all the essentials.

Conclusion: Set Your Business Up for Success

A business plan is much more than a funding tool—it’s a foundation for sustainable growth. It sharpens your vision, organises your ideas, and empowers your team. Whether you’re presenting to investors or clarifying your next move internally, a well-written plan helps you move forward with purpose.

With thoughtful preparation and regular updates, your business plan can evolve alongside your business. Start yours today and build the future you envision, one smart decision at a time.

And if you’re ready to take control of your business direction, it’s also worth thinking about your broader financial journey. Setting clear financial goals can help you stay focused, both personally and professionally. To dive deeper into this topic, read our guide on how to set financial goals for the future—a practical companion to your business planning efforts.