Since you are reading this article, we can assume you have a business idea, and you want to draft a plan. A very important decision you have to make during this process is to choose the right business plan format, which will cover all the key information about your project.
We will explore the most common formats and help you choose the right one for your business. Also, we will describe what to include in your plan and share a few tips on how to make it look better.
Picking the right business plan format
What is the format of a business plan, exactly? To put it simply, it is a structure that determines how the information about your business idea is presented.
Before selecting a business plan format, you must first think about your target audience (who will read that document) and define what you want to achieve with your plan.
Is your goal to get an investment or a bank loan? Or do you just need a blueprint that will help you structure your thoughts and brainstorm an idea with your team? Based on these goals, you should choose the desired business plan format that works best in terms of the outline and level of detail.
This means that you want to explain your vision in the best possible way. So, instead of placing information randomly in your presentation, the business plan format will help you tell a clear, compelling story about your idea.
Common business plan formats
Although there are many variations in writing a plan, there are three business plan formats that are the most popular. We will explain them one by one.
Traditional business plan
This is the most popular format, and it’s the first thing we think about when someone mentions a business plan. In the majority of cases, it is used by established businesses or startups seeking investors or bank loans.
A traditional business plan includes lots of details about your projects, since based on this document, investors need to decide whether they will invest money in your startup or not.
It includes comprehensive sections, such as an executive summary, product description, market strategy, competitive analysis, financial forecasts, and others.
Read also: How To Draft a Business Plan
Lean startup format
A Lean Canvas, or the lean startup format, is like a simplified version of the traditional business plan.
This format is predominantly used by startups in the ideation or MVP stage, and it is great for brainstorming or early-stage planning.
Lean Canvas focuses on key elements like your value proposition, customer segments, revenue streams, and cost structure.
One-page plan
As the name suggests, in a one-page plan, everything fits on a single page.
One-page plan is mostly used for internal use or to quickly pitch your project to someone.
Its focus is on clarity and prioritization, which makes it ideal for small startup teams or solo entrepreneurs.
Choosing a business plan format that fits your startup stage can save you a lot of time and help you focus on what really matters.
Read also: How To Write a One Page Business Plan
Key sections included in the plan
No matter which business plan format you choose, in the end, there are some key elements you should not skip. These parts are important as they will paint a full picture of your business and also show that you have thought about all the aspects of your venture.
Executive Summary
The executive summary represents the elevator pitch for your entire project. Here you should describe in just a few sentences what your idea is all about, who will use your products and services, how your business will solve the market problem, and what your business goal is.
Even though the executive summary is usually the first section in a plan, in most cases it’s written last, when everything else is in place.
Problem & Solution
To have a successful business, it needs to solve a great market problem that either lots of people are facing or they are ready to pay a lot of money for you to solve their problem.
So in this section, you should explain what the market gap or pain points your customers are facing and demonstrate how your solution is smart, unique, or more convenient than the other options out there in the market.
Here, you need to be transparent and concise to persuade readers that your business has a reason to exist.
Market Analysis
The goal of this section is to demonstrate that you understand the market landscape and that you have done your research properly.
You should explain the environment you’re entering, like how big the market is. Or what are the current industry trends? Also, you need to describe your ideal customers and elaborate on what your competition is lacking compared to your product & service offering.
Business Model
This section explains how your business will make money.
You will have to demonstrate to the investors and your partners how you will monetize your products and services. Will you use a subscription model, earn money from commission, charge per service, or use some other approach? Here you need to be concise about your pricing, revenue streams, and demonstrate that your model is sustainable.
Remember, if you want your business to be successful, your products and services should be painkillers, not supplements.
Read Also: How To Easily Build a Business Model
Marketing & Sales Strategy
One thing is to show that you know who your customers are, so in this section, you need to explain how you will reach them. This section should explain how you plan to promote your products & services, attract new customers, what your retention strategy is, and how you will keep customers coming back.
Also, you will provide the basic details about your marketing and sales channel, like social media, SEO, word of mouth, or anything else that will help your business grow.
Financial Plan
Every business plan includes the financial part as well. Your financial plan should include the revenue projections, all expenses, profit margins, and preferably cash flow projections. Here, you should also add any funding you will need to get the business started or grow.
The most important thing is to make realistic projections and to show that you understand the numbers behind your idea. If you are asking for funding, you will have to justify the assumptions and provide some evidence to back them up.
Read also: How To Make Accurate Financial Projections
Which business plan format to choose?
As we explained, this depends on the context.
For example, if your business idea is a tech startup that you want to pitch to VCs, you will need detailed financial projections and market analysis. But on the other hand, if you want to open a local coffee shop, you might benefit more from a simple plan, which focuses on operations and costs.
At IdeaBuddy, we know that one format does not fit all. That’s why our platform lets you switch between different planning tools. You can even generate an AI-assisted plan, which is tailored to your industry, location, and idea stage.
Want to see how it works? Create a free account and let IdeaBuddy guide you through every step.
Tips to make your plan more effective
Here are a few bonus tips to make your business plan stand out:
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Use simple language and avoid jargon whenever you can.
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Always support your claims with real data and research.
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Use visuals, like charts and timelines, to make your plan more aesthetically pleasing.
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Remember that investors value honesty, so don’t overpromise when making financial projections
Business plan format – Final thoughts
Your content might be pure gold, but often the package in the format of your business plan matters just as much.
A well-selected business plan format will help you craft a plan that will give your idea structure, resonate well with your audience, and help you tell your story in the best possible way. Whether you are building a tech startup, a local bakery, or a consulting agency, choosing the right format is the first step toward building something great.
And if you are feeling stuck, IdeaBuddy will light your way and help create a successful business plan.
