How to create a business plan | edX

How to create a business planKnowing how to create a business plan can benefit your career, whether you want to start your own business or help an existing organization secure funding.By: Amanda Phagan, Edited by: Rebecca MundayPublished: June 13, 2025Does your company have a business plan? If you plan to apply for a business loan or find investors for your company, you will need to create one.Our guide can help you define your company's vision, goals, and operational roadmap. Whether you work at a startup or plan to start your own business, knowing how to create a business plan can help you start or grow your business.Steps to create a business plan1. Craft an executive summaryAn executive summary is your company's elevator pitch — a succinct and persuasive overview of your mission, products/services, and financial plan. An executive summary is typically just one to two pages, so conciseness is key. After all, you want to convince your busy reader to invest in your business.An executive summary should include the following components:Hook: Invite the reader to learn more with an attention-grabbing fact, statistic, or statement.Company description: Briefly summarize what you sell, where your company is based, when it was founded, and your founders/executive team.Market analysis: Describe your main competitor(s), the demand for your products/services, and your business's competitive advantage.Product list: Highlight your top products/services and why customers would buy yours over others.Financials: Provide an overview of your current sales, projections, and any funding you have already secured.Goals: Conclude your executive summary with a brief description of how prospective funding will be used — and why investing in your business will pay off.2. Write a business overviewYour business overview expands upon the company description provided in the executive summary. If your business has a website, your "About" page is a good place to start. Your business overview should include:Your company's name: Use your entire business name as it appears on official paperwork.Your business type: Specify whether your business is a sole proprietorship, LLC, or corporation.Your location: List your company's locations and specify where you are headquartered.Your leaders: Name your business's key leaders, including owners, founders, and C-suite executives.Your history: Tell a concise and compelling story about your business's founding.Your customer profile: Describe your ideal customer and how your product/service meets their needs.Your mission and goals: State the problem your business solves for customers — and your plans for future growth.3. Define your business goalsThis section — sometimes called an objective statement — outlines your business's short- and long-term goals and how you plan to use any funding your business receives.In this section, you'll want to convince investors that your company presents a unique opportunity for profit. Be sure to mention any upcoming plans for product/service releases that may increase sales.4. Describe your operations modelIn this section, you'll summarize your business's operations structure. This is your chance to introduce the departments or teams that are vital to your business. Include the following information:How many people work for your businessAn organizational chart or list of each team/departmentA summary of each department's responsibilitiesCall-outs and/or résumés for exceptional employees who contribute to your competitive advantage5. List your products/servicesYour products/services section is a chance to go into more detail about your revenue streams. In this section, you should include:An explanation of how your product/service worksYour pricing for each product/service and how it relates to costA description of your supply chain strategyAn overview of how you fulfill ordersYour product's life cycleA list of any patents or trademarks associated with your product/service6. Analyze the market and industryIn your market analysis section, you'll detail your competitors, their strengths and weaknesses, and how you're positioned to perform in comparison based on industry characteristics. Include:A description of your market, including sizeThe customer personas you serveWhether your market is unique or underservedYour estimated market value (the percentage of the market you plan to convert and how much revenue that would create)Your barriers to entry into the market/industryAny supporting research, including compelling statisticsData visualization components like charts and graphs7. Create a marketing and sales planYour marketing and sales plan is a blueprint for recruiting new customers, creating repeat customers, and developing a unique brand presence. This section should include information on:Your go-to-market strategyYour sales strategyThe channels you target (or plan to target)The cost of your marketing and sales programsData that illustrates the success of your programs, if applicable8. Collect financial data and projectionsYou may not yet have access to the financial data that is most valuable to a business plan — but if you do, include it in this section. You may present revenue statements, a balance sheet, or cash flow statements. Your goal for this section is to convince investors or lenders that your business will be profitable. Consider highlighting numbers such as:Your net profit marginYour debt-to-income ratioMonthly or quarterly salesFuture expense and profit estimatesIf you haven't started doing business yet, use this section to discuss your financial goals and projections in more detail.9. Include an appendixAdding an appendix to your business plan allows you to offer supporting materials and information without overwhelming your reader. This section can include:Business licenses, retail licenses, and permitsPatentsContractsFinancial and/or credit statementsLearn more about business administrationStarting a business can be daunting. Learn the skills you need to succeed by taking a course in business strategy, competitive strategy, or entrepreneurship.Stand out in your fieldUse the knowledge and skills you have gained to drive impact at work and grow your career.Learn at your own paceOn your computer, tablet or phone, online courses make learning flexible to fit your busy life.Earn a valuable credentialShowcase your key skills and valuable knowledge.Share this articleShare on FacebookShare on XShare on LinkedinShare on Email