Five steps to creating a great business plan

Five steps to creating a great business plan

Every business should have a solid business plan, and not just for securing financing or investors, but as a guiding strategy for the business as challenges or distractions emerge.

As Art Shore, Elevate Hennepin CEO Next program partner and co-founder of MB Mentors puts it, "A business plan isn't a document you write once. It's a living document, something you’ll revisit and refine as your business evolves.”

In a webinar, Art talked through several of the most common business plan templates, and shared five key things that are needed in every business plan. By following these five essential steps, you can ensure your plan is well-rounded, clear, and ready for action.

Gather information

Start by collecting key information about your business concept, customer base, market needs, and competition. Think about who your customers are, what problems they’re facing, and how your product or service offers a solution.

"The first step of any business plan is to describe the problem that customers have,” said Art.

Understanding your market and your competition is essential; skipping this step could lead to costly mistakes and wasted time.

Focus your insights

With a wealth of data at your fingertips, it's time to narrow down the insights that will shape your business strategy.

"Take that information and think of it in terms of a funnel. Focus down to the key elements of your business that are essential,” said Art.

By concentrating on what matters most, you lay a solid foundation for your business plan. This will also help avoid distractions as other opportunities or day-to-day challenges arise.

Organize your plan

Now that you have a clear focus, structure your information into a logical order. This organization phase will help your plan flow naturally, making it easy for others to follow.

"Organizing your information into the right format ensures that you’re covering all essential areas,” Art notes.

For example, start with your business concept, then move to market analysis, followed by financial projections.

Build the plan

Now, it’s time to create the actual document.

"Writing the plan itself helps create order and gives you a clear roadmap,” said Art.

This step involves fleshing out each section with the insights you’ve gathered. Whether you’re developing a lean model canvas, one-page plan, or a comprehensive, traditional plan, make sure every part is clear, compelling, and easy to understand. Art emphasizes that "a plan is to help you create some order from the chaos that comes from starting a small business."

Polish and refine

Finally, polish your plan by sharing it with trusted advisors or team members for feedback.

“Get real feedback when you have a plan--you want people who are going to be honest with you,” said Art.

Presenting your plan to others can help identify areas that need refining or clarifying. Additionally, practice delivering your pitch if you’re seeking investors—polishing your presentation can be the difference between securing funding and missing out.

By following these five steps, you’ll create a business plan that not only clarifies your goals but also sets you up for success.