Learn how to build a business plan with 6 simple steps!


business plan


Entrepreneurs may think that learning how to build a business plan is a tedious undertaking and that it should be a massive hundred pages long file. 

However, this document must be as much concise and brief as possible, though it must contain relevant and strategic information to guide important business decisions.

There are no stiff rules to write an effective business plan. In fact, the two fundamental factors to proceed with it are providing complete and relevant information and describing clear orientations based on solid business knowledge.

Next, we’re going to introduce you to six simple steps on how to build a business plan that will lead your company to success. Keep reading! 

What is a business plan?

A business plan is a document that works as a map to guide right actions and decisions based on strategic data and on a preview research on the company’s segment. It helps to prevent mistakes, and to guide managers and collaborators towards making the right moves to achieve business goals.

Now that we’ve cleared that up, here they are: the six steps to build an effective business plan.

business plan
Illustration of business plan

How to build a business plan?

To build a business plan, you must have a clear view of your company’s mission and goals, learn about the brand’s segment, and choose the right tools and resources in order to put the project into practice. 

In short, follow these six steps below:

  1. Find your business core;
  2. Get a general business overview;
  3. Identify business segment opportunities;
  4. Choose a sustainable business model; 
  5. Choose the brand visual identity;
  6. Conclude the business plan with a brief and concise pitch.

However, it is important to note that building a business plan is a dynamic undertaking. As a company grows and the business’ environment changes, a business plan needs continuous updates and adjustments.

1. Find your business core 

The first step is to gather the required motivation to start a short and mid-term planning for your business. This process entails reflecting about the business core and the inspiration behind the project.  

But before that, make sure you have a plain view of the following business plan components:

  • Awareness of your own skills and capacities as an entrepreneur;
  • Clear idea of your business commercial purpose;
  • Intrinsic motivation behind the project;
  • Resources that you already have to take action.

2. Get a general business overview

The next step is understanding how the process really works:

  • How long will it take you to build the business plan?
  • What are the weaknesses and strengths of your project?
  • Which resources are necessary to achieve your goals?

To start with, take a look at the business plan document as a whole and don’t forget any sections you want to include in it. 

The SWOT Matrix is an excellent tool to support you at this stage, as it helps you to identify the opportunities, menaces, weaknesses and strengths of your business project. This overview will allow you to create a more effective plan.

Next, you must track the business development. Take notes, make observations and register all questions and impressions along the way. 

Also, you must take a moment to study your competitors and the way they execute their actions. For example, how do they communicate with their target audience? Are they achieving their main commercial objectives?

3. Identify the business segment opportunities

It’s time to start writing your business plan! You should begin with a deep market research and gather data and information about your business segment. For example:

  • A buyer-persona profile of the target audience;
  • Which metrics you’ll use to measure your operational and strategic results;
  • Competitor’s performance;
  • Politics behind your products/service pricing;

And the list goes on…

By doing that, you’ll be able to identify if your competitors are making mistakes and which are the market gaps that you can fill with the solution provided by your company.

4. Choose a sustainable business model 

The fourth step of how to build a business plan consists in reviewing the business viability. At this point, you must certify if your project is really worth the investment you want to make.

You must begin by defining a model that will support the business opportunities you’ve encountered in the previous steps. Thus, you’ll know how to develop a company able to earn profits and get the job done!

In practice, this means it’s time to plan your operational, marketing and financial strategies. According to your previous research about the brand’s market and target audience, what relevant data did you get?: 

  • Which social media are most popular for your buyer persona?
  • Is your brand going to need a website? Do you need to learn how to create one?
  • How much does it cost to get it all successfully up and running?
  • How will you manage the business finance?

The answers to these questions must be fully integrated with the global business plan motivations and goals.

For instance, if you choose boosting Facebook ads in order to earn paid traffic, this decision will affect the financial and operational department’s budget. 

5. Choose the brand visual identity

If you want to learn how to build a business plan, you’ll also have to create a brand visual identity and explain the purpose behind the graphic choices you’ve made.   

An attractive, effective and beautifully designed visual identity not only distinguishes your brand from the competitors, but it also helps you to prospect and retain more clients.

This stage guarantees that your prospects, leads and clients will easily identify the brand by: 

  • the colors and interface of the website and social media pages;
  • logo;
  • products design;
  • general marketing and institutional contents, and so on.  

If you need some help to design these contents, there are some free online platforms with intuitive tools that can simplify the job. Two of them are the Canva and the Logaster

They can help you out with the brand’s logo, personalized social media content and exclusive business cards. 

6. Conclude the business plan with a brief and concise pitch

Does it look odd to finish the business plan with a retrospective summary of your project processes, tasks, objectives and goals

It may so, but this synthesizes the company’s values and provides two special outcomes for your business success:

  • a pitch to attract interested investors;
  • a document that proves the project is financially viable to stakeholders.

This last step is the culmination of the business plan and a natural transition to the next one: gathering the fundamental resources and then executing the tasks predicted on the document

How to build a business plan effectively? 

The next step to successfully building a business plan is taking a look at  STRATWs One. This is a cooperative management performance software capable of unifying the personal, strategic and operational processes toward the best results!  

This platform will help you to build a business plan that is really worth your investment. This is the kickoff you need to take your company to the next level of performance. Ask for a free demonstration of STRATWs One:

demon Learn how to build a business plan with 6 simple steps!