{"id":55733,"date":"2022-12-14T08:19:45","date_gmt":"2022-12-14T13:19:45","guid":{"rendered":"https:\/\/www.sogolytics.com\/blog\/?p=55733"},"modified":"2022-12-15T14:49:53","modified_gmt":"2022-12-15T19:49:53","slug":"how-to-write-a-business-plan","status":"publish","type":"post","link":"https:\/\/www.sogolytics.com\/blog\/how-to-write-a-business-plan\/","title":{"rendered":"How to Write a Business Plan (And Why It&#8217;s Important)"},"content":{"rendered":"<p>Need to create a business plan, but not sure how to get started?<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>You\u2019ve come to the right place. In this article, we will teach you how to go about writing a business plan, and also discuss why doing so is important.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>Think of your business plan as the building blocks of your business. Once you have one in place, you\u2019ll have a clearer idea of your business model, and be able to identify the next steps that you should take.<\/p>\n<div class=\"div-spacer\"><\/div>\n<p><a href=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/12\/diggity-marketing-s8HyIEe7lF0-unsplash-scaled.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-55743\" src=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/12\/diggity-marketing-s8HyIEe7lF0-unsplash-1024x682.jpg\" alt=\"\" width=\"1024\" height=\"682\" srcset=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/12\/diggity-marketing-s8HyIEe7lF0-unsplash-1024x682.jpg 1024w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/12\/diggity-marketing-s8HyIEe7lF0-unsplash-300x200.jpg 300w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/12\/diggity-marketing-s8HyIEe7lF0-unsplash-768x512.jpg 768w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/12\/diggity-marketing-s8HyIEe7lF0-unsplash-1536x1023.jpg 1536w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/12\/diggity-marketing-s8HyIEe7lF0-unsplash-2048x1365.jpg 2048w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/12\/diggity-marketing-s8HyIEe7lF0-unsplash-600x400.jpg 600w, https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2022\/12\/diggity-marketing-s8HyIEe7lF0-unsplash-50x33.jpg 50w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/p>\n<div class=\"div-spacer\"><\/div>\n<p>Ready? Let\u2019s jump right in!<\/p>\n<div class=\"div-spacer\"><\/div>\n<h2>Why write a business plan?<\/h2>\n<p>A business plan is essentially an all-in-one document that outlines your <a href=\"https:\/\/www.sogolytics.com\/blog\/does-business-success-require-growth\/\" target=\"_blank\" rel=\"noopener\">business idea<\/a>, including your products and services, monetization strategy, operations model, and more.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>In other words, this is a blueprint to your business, meaning it should contain all the important information, from strategy to vision.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>Why create a business plan? Because it helps you flesh out an initial idea. In the process of researching and creating your business plan, you\u2019ll be able to:<\/p>\n<div class=\"div-minispacer\"><\/div>\n<ul>\n<li>Fine-tune your strategy<\/li>\n<li>Identify potential challenges and roadblocks<\/li>\n<li>Estimate the amount of resources you need<\/li>\n<li>Think through your day-to-day operations<\/li>\n<\/ul>\n<p>On top of that, if you\u2019re looking to speak to potential investors to raise funding, having a business plan to show them is crucial, as well.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>PS: According to <a href=\"https:\/\/articles.bplans.com\/do-you-need-a-business-plan-scientific-research-says-yes\/\" target=\"_blank\" rel=\"noopener\">research<\/a>, businesses with a business plan grow 30% faster than those without. Also, companies with business plans are twice as likely to grow, get investments, and secure loans than those without.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>It might feel a little like homework, but trust us: it\u2019s worth taking the time and effort to draft a proper plan!<\/p>\n<div class=\"div-spacer\"><\/div>\n<h2>What should you include in your business plan?<\/h2>\n<p>Here\u2019s a list of sections that you\u2019ll want to include in your business plan:<\/p>\n<div class=\"div-minispacer\"><\/div>\n<ul>\n<li>Executive summary<\/li>\n<li>Company overview<\/li>\n<li><a href=\"https:\/\/www.sogolytics.com\/blog\/how-to-write-market-research-analysis-report\/\" target=\"_blank\" rel=\"noopener\">Market analysis<\/a><\/li>\n<li>Products and services<\/li>\n<li>Marketing plan<\/li>\n<li>Logistics and operations plan<\/li>\n<li>Financial plan<\/li>\n<\/ul>\n<p>Let&#8217;s dive further into each section to give you an idea of what you need to prepare, as well as all the things you need to keep in mind:<\/p>\n<div class=\"div-spacer\"><\/div>\n<h2>Executive summary<\/h2>\n<p>Your executive summary is basically a TL;DR of your entire business plan.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>This should give readers a high-level overview. You don\u2019t need to go into the details here, but do talk about your business concept, your goals, your target market, and your financial plans.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>The shorter your executive summary is, the better. It needs to fit on one page, so make sure you distill the information and are as concise as possible.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p><strong>Pro-tip:<\/strong> if this is a new idea you\u2019re working with and you\u2019re still figuring things out as you go along, feel free to skip the executive summary and create the other sections first. Once you have more clarity in those sections, you can revisit the executive summary.<\/p>\n<div class=\"div-spacer\"><\/div>\n<h2>Company overview<\/h2>\n<p>Your company overview is fairly straightforward: this is the section that describes your company, and what it is that you do.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>You should also include your business structure here, and state whether your business is a sole proprietorship, partnership, or corporation.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>Finally, include any relevant information on your company\u2019s background. You may also include your vision, mission, and values, although this is not required.<\/p>\n<div class=\"div-spacer\"><\/div>\n<h2>Market analysis<\/h2>\n<p>Your market analysis is one of the most crucial sections of your business plan, and it should be completely thorough and rigorously researched.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>Why is this the case? Because so many companies fail due to a lack of product-market fit, which is the degree to which a product satisfies a strong market demand.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>With this in mind, it\u2019s in your best interests to analyze the market carefully and gather all the information that can help you determine whether there\u2019s sufficient product-market fit for the idea that you have in mind.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>Here\u2019s what you should cover in your market analysis:<\/p>\n<div class=\"div-minispacer\"><\/div>\n<ul>\n<li>Market sizing (how big is the market?)<\/li>\n<li>Competitive landscape (who are the largest players in the market? Who will be your main competitors?)<\/li>\n<li>Your business\u2019s position in the market (do you have a competitive advantage, as compared to the other players in the market?)<\/li>\n<li><a href=\"https:\/\/www.sogolytics.com\/blog\/cx-trends-in-financial-services\/\" target=\"_blank\" rel=\"noopener\">Market trends<\/a> and trajectory (how is the market evolving? What are some of the trends that you can capitalize on?)<\/li>\n<\/ul>\n<h2>Products &amp; services<\/h2>\n<p>This is pretty self-explanatory: it\u2019s the section where you share more information about your products and services, and their benefits.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>If it\u2019s applicable, explain what your product lifecycle looks like, and also discuss any plans for intellectual property protection (such as copyright or patent filings).<\/p>\n<div class=\"div-spacer\"><\/div>\n<h2>Marketing plan<\/h2>\n<p>How will your customers find out about your product or service? It\u2019s all in the marketing.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>Traditional marketing plans are based on the Four P&#8217;s: Price, Product, Promotion, and Place.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>However, feel free to play around with this section and structure it however seems most appropriate. For instance, here are a few frameworks you can use:<\/p>\n<div class=\"div-minispacer\"><\/div>\n<ul>\n<li>Marketing goals: outline strategies based on the different goals that you want to achieve, e.g.: drive sales, <a href=\"https:\/\/www.sogolytics.com\/blog\/why-the-brand-awareness-survey-is-becoming-a-vital-tool-in-the-marketing-process\/\" target=\"_blank\" rel=\"noopener\">build brand awareness<\/a>, build brand consideration.<\/li>\n<li>Marketing channels: outline strategies based on different channels. You can go high-level (inbound vs. outbound marketing) or more detailed (email marketing vs. influencer marketing vs. PPC).<\/li>\n<\/ul>\n<h2>Logistics &amp; operations plan<\/h2>\n<p>Logistics is the missing piece of the puzzle that ties everything together. You\u2019ll need to have a solid logistics &amp; operations plan in order to bring your ideas to life.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>Here are some areas to cover in your logistics plan:<\/p>\n<div class=\"div-minispacer\"><\/div>\n<ul>\n<li>Suppliers and production: Who are the suppliers you\u2019re working with? What\u2019s the lead time for production?<\/li>\n<li>Facilities and equipment: Do you require office space? What equipment or tools will you need to get started?<\/li>\n<li>Shipping: Do you intend to use a 3PL company for shipping? What does your shipping turnaround look like?<\/li>\n<li>Inventory: Where will you store your inventory (if any)? How will you keep track of your inventory?<\/li>\n<\/ul>\n<h2>Financial plan<\/h2>\n<p>Next to the market analysis, the financial plan is arguably the most important component of your business plan.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>Here\u2019s where you crunch the numbers, and figure out if your business model is profitable.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>In your financial plan, you\u2019ll need to include:<\/p>\n<div class=\"div-minispacer\"><\/div>\n<ul>\n<li>Your income statement, a balance sheet, and cash-flow statement (feel free to use projected figures assuming your business is not yet operational)<\/li>\n<li>Financial projections, with different scenarios, including baseline, upside (best case scenario), and downside (worst case scenario)<\/li>\n<\/ul>\n<h2>A final note on putting together your business plan<\/h2>\n<p>Business plans are by no means exhaustive, but they do contain most of the important information you\u2019ll need to figure out before you start your business.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>If you have an idea that you\u2019re excited about, the best way to fine-tune that idea and assess its feasability is to <a href=\"https:\/\/www.forbes.com\/sites\/alejandrocremades\/2018\/07\/24\/how-to-create-a-business-plan\/\" target=\"_blank\" rel=\"noopener\">create a business plan<\/a>.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>Have multiple ideas, and don\u2019t know which one to pursue? Again, create business plans for each one of them. Researching and planning each concept will help you identify which idea has the most potential, versus which ideas aren\u2019t worth pursuing.<\/p>\n<div class=\"div-minispacer\"><\/div>\n<p>Best of luck on your entrepreneurship journey!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Need to create a business plan, but not sure how to get started? You\u2019ve come to the right place. In this article, we will teach you how to go about writing a business plan, and also discuss why doing so is important. Think of your business plan as the building blocks of your business. Once you have one in place, you\u2019ll have a clearer idea of your business model, and be able to identify the next steps that you should take. Ready? Let\u2019s jump right in! Why write a business plan? A business plan is essentially an all-in-one document that outlines your business idea, including your products and services, monetization strategy, operations model, and more. In other words, this is a blueprint to your business, meaning it should contain all the important information, from strategy to vision. Why create a business plan? Because it helps you flesh out an initial idea. In the process of researching and creating your business plan, you\u2019ll be able to: Fine-tune your strategy Identify potential challenges and roadblocks Estimate the amount of resources you need Think through your day-to-day operations On top of that, if you\u2019re looking to speak to potential investors to raise funding, having a business plan to show them is crucial, as well. PS: According to research, businesses with a business plan grow 30% faster than those without. Also, companies with business plans are twice as likely to grow, get investments, and secure loans than those without. It might feel a little [&hellip;]<\/p>\n","protected":false},"author":25,"featured_media":5042,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,75],"tags":[198,811,818,758,961],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.7.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Write a Business Plan (And Why It&#039;s Important) - Sogolytics Blog<\/title>\n<meta name=\"description\" content=\"Set your new venture up for success by creating a powerful business plan. We explore all you need to include to get started!\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.sogolytics.com\/blog\/how-to-write-a-business-plan\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to Write a Business Plan (And Why It&#039;s Important) - Sogolytics Blog\" \/>\n<meta property=\"og:description\" content=\"Set your new venture up for success by creating a powerful business plan. We explore all you need to include to get started!\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.sogolytics.com\/blog\/how-to-write-a-business-plan\/\" \/>\n<meta property=\"og:site_name\" content=\"Sogolytics Blog\" \/>\n<meta property=\"article:published_time\" content=\"2022-12-14T13:19:45+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-15T19:49:53+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2018\/12\/emp-5.png\" \/>\n\t<meta property=\"og:image:width\" content=\"487\" \/>\n\t<meta property=\"og:image:height\" content=\"714\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Cherie Foo\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.sogolytics.com\/blog\/how-to-write-a-business-plan\/\",\"url\":\"https:\/\/www.sogolytics.com\/blog\/how-to-write-a-business-plan\/\",\"name\":\"How to Write a Business Plan (And Why It's Important) - Sogolytics Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.sogolytics.com\/blog\/#website\"},\"datePublished\":\"2022-12-14T13:19:45+00:00\",\"dateModified\":\"2022-12-15T19:49:53+00:00\",\"author\":{\"@id\":\"https:\/\/www.sogolytics.com\/blog\/#\/schema\/person\/4f9494ad60a9326bf03aefa96dfb5df8\"},\"description\":\"Set your new venture up for success by creating a powerful business plan. We explore all you need to include to get started!\",\"breadcrumb\":{\"@id\":\"https:\/\/www.sogolytics.com\/blog\/how-to-write-a-business-plan\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.sogolytics.com\/blog\/how-to-write-a-business-plan\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.sogolytics.com\/blog\/how-to-write-a-business-plan\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"How to Write a Business Plan (And Why It&#8217;s Important)\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.sogolytics.com\/blog\/#website\",\"url\":\"https:\/\/www.sogolytics.com\/blog\/\",\"name\":\"Sogolytics Blog\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.sogolytics.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.sogolytics.com\/blog\/#\/schema\/person\/4f9494ad60a9326bf03aefa96dfb5df8\",\"name\":\"Cherie Foo\",\"description\":\"Cherie is an avid lover of hiking, and she can easily spend hours curled up with a good book. Her greatest personal achievement to date is surviving a 48 hour bus trip -- in which she was jammed shoulder to shoulder with strangers (and live chickens which were illegally smuggled on board).\",\"url\":\"https:\/\/www.sogolytics.com\/blog\/author\/cfoo\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"How to Write a Business Plan (And Why It's Important) - Sogolytics Blog","description":"Set your new venture up for success by creating a powerful business plan. We explore all you need to include to get started!","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.sogolytics.com\/blog\/how-to-write-a-business-plan\/","og_locale":"en_US","og_type":"article","og_title":"How to Write a Business Plan (And Why It's Important) - Sogolytics Blog","og_description":"Set your new venture up for success by creating a powerful business plan. We explore all you need to include to get started!","og_url":"https:\/\/www.sogolytics.com\/blog\/how-to-write-a-business-plan\/","og_site_name":"Sogolytics Blog","article_published_time":"2022-12-14T13:19:45+00:00","article_modified_time":"2022-12-15T19:49:53+00:00","og_image":[{"width":487,"height":714,"url":"https:\/\/www.sogolytics.com\/blog\/wp-content\/uploads\/2018\/12\/emp-5.png","type":"image\/png"}],"author":"Cherie Foo","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.sogolytics.com\/blog\/how-to-write-a-business-plan\/","url":"https:\/\/www.sogolytics.com\/blog\/how-to-write-a-business-plan\/","name":"How to Write a Business Plan (And Why It's Important) - Sogolytics Blog","isPartOf":{"@id":"https:\/\/www.sogolytics.com\/blog\/#website"},"datePublished":"2022-12-14T13:19:45+00:00","dateModified":"2022-12-15T19:49:53+00:00","author":{"@id":"https:\/\/www.sogolytics.com\/blog\/#\/schema\/person\/4f9494ad60a9326bf03aefa96dfb5df8"},"description":"Set your new venture up for success by creating a powerful business plan. We explore all you need to include to get started!","breadcrumb":{"@id":"https:\/\/www.sogolytics.com\/blog\/how-to-write-a-business-plan\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.sogolytics.com\/blog\/how-to-write-a-business-plan\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.sogolytics.com\/blog\/how-to-write-a-business-plan\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"How to Write a Business Plan (And Why It&#8217;s Important)"}]},{"@type":"WebSite","@id":"https:\/\/www.sogolytics.com\/blog\/#website","url":"https:\/\/www.sogolytics.com\/blog\/","name":"Sogolytics Blog","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.sogolytics.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.sogolytics.com\/blog\/#\/schema\/person\/4f9494ad60a9326bf03aefa96dfb5df8","name":"Cherie Foo","description":"Cherie is an avid lover of hiking, and she can easily spend hours curled up with a good book. Her greatest personal achievement to date is surviving a 48 hour bus trip -- in which she was jammed shoulder to shoulder with strangers (and live chickens which were illegally smuggled on board).","url":"https:\/\/www.sogolytics.com\/blog\/author\/cfoo\/"}]}},"_links":{"self":[{"href":"https:\/\/www.sogolytics.com\/blog\/wp-json\/wp\/v2\/posts\/55733"}],"collection":[{"href":"https:\/\/www.sogolytics.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sogolytics.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sogolytics.com\/blog\/wp-json\/wp\/v2\/users\/25"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sogolytics.com\/blog\/wp-json\/wp\/v2\/comments?post=55733"}],"version-history":[{"count":8,"href":"https:\/\/www.sogolytics.com\/blog\/wp-json\/wp\/v2\/posts\/55733\/revisions"}],"predecessor-version":[{"id":55852,"href":"https:\/\/www.sogolytics.com\/blog\/wp-json\/wp\/v2\/posts\/55733\/revisions\/55852"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sogolytics.com\/blog\/wp-json\/wp\/v2\/media\/5042"}],"wp:attachment":[{"href":"https:\/\/www.sogolytics.com\/blog\/wp-json\/wp\/v2\/media?parent=55733"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sogolytics.com\/blog\/wp-json\/wp\/v2\/categories?post=55733"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sogolytics.com\/blog\/wp-json\/wp\/v2\/tags?post=55733"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}