How to Create a Business Plan in 2025 (Without Wasting Time)

Photo by Volodymyr Hryshchenko on Unsplash

You’re building a business, and you know you need a business plan, maybe to secure funding or to simply organize your business idea, but you have no idea what it should include or look like. This guide will walk you through the essential sections and steps to create a good business plan that works, even if it’s your first time.

What is a Business Plan?

A business plan is a structured document that summarizes the essence of your business in a way that helps you and also others understand how it will operate and grow. It defines what your business does, how it plans to create value, its goals, and what success looks like in measurable terms.

A well-written business plan usually answers some important questions for everyone involved, like:

• What is this business about?

• What problem does this business solve?

• Who are the customers?

• How will the business make money?

• What resources are needed to run it?

• What are the short-term and long-term goals of the business?

And while the formats may vary, the essence of a business plan is direction. It helps you turn your vision into a solid plan from which you can create steps that you can take to build that vision.

Why is a Business Plan Important for Entrepreneurs?

Most early-stage founders today don’t write 40-page business plans — and that’s okey. Investors at the seed or pre-seed stage usually care more about your clarity of thought, traction, and ability to execute than about a formal document. But that doesn’t mean planning itself is irrelevant — far from it.

Many entrepreneurs underestimate how powerful a business plan can be. To most, it makes more sense to spend time and energy on actually building the business than on putting the entire idea on paper.

A business plan is less about paperwork, more about perspective and the practice. It’s a framework that forces you to think through the key parts of your business — what you’re building, who it’s for, and how it will make money. Whether it lives in Notion, a Google Doc, or as a one-page pitch, the process of creating it gives you structure and strategic direction.

While not every entrepreneur needs a traditional business plan, especially at the idea or validation stage OR if you’re a very experienced entrepreneur, having a structured way to think through your business model is critical. Whether that’s a one-pager, a Notion board, or a pitch deck, the value lies in clarity, not the format.

Investors today rarely read long business plans. They barely read short ones. What they do value is your ability to show that you’ve done the thinking — that you understand your market, risks, and path to traction. A business plan, in any format, is simply a reflection of that thinking.

And while execution is important, having a plan is just as essential for success, so creating one is not a waste of time. In fact, according to Live Plan, proper planning can make businesses grow 30% faster.

Writing a business plan forces you to consider every detail of your business idea, from operations to even the customer experience.

It also helps you to:

• Test your idea’s viability: By putting numbers and strategies on paper, you’ll see whether the idea can realistically work

• Find hidden opportunities: Creating a business plan will open your eyes to opportunities you might have overlooked that you can take advantage of to deliver more value

• Set measurable goals: A business plan will move you from vague ambition to specific milestones

• Communicate your vision: If you’re pitching to partners, banks, or explaining to your team, a plan helps them see what you see

• Run your day-to-day business: A strong business plan keeps you organized and helps you manage your resources effectively

• Keep your team aligned: With a business plan, your team knows where the business is headed and how their work contributes to the bigger picture

• Secure funding and stakeholder buy-in: Finally, a solid business plan is often the key to getting financial support. Investors and partners want proof that your business idea is viable. A detailed, credible plan gives them just that

Think of your business plan as a living document, not a finished product. It should evolve as you learn more about your market, your customers, and your numbers. The best founders revisit and rewrite theirs often — not because someone told them to, but because clarity is their edge.

The 2 Main Types of Business Plans

Not all business plans serve the same purpose — and not all businesses need the same kind of plan. The “write a 40-page document” advice comes from a time when banks and institutions were your only funding options. Today, most founders — especially early-stage ones — use shorter, more agile formats that help them move fast and adapt.

There are generally two main categories of business plans, but you can mix elements of both depending on your stage and goals.

1. Traditional Business Plan

The traditional business plan is the full, detailed version. It’s structured, data-rich, and comprehensive — typically 20–50 pages. It digs into your company overview, market research, financial projections, and long-term strategy.

Traditional business plans make sense when:

• Applying for a bank loan, grant, or government funding.

• Pitching to VCs or institutional investors who expect detailed due diligence.

• Building a complex business with multiple departments, stakeholders, or regulatory layers.

• You need to communicate your strategy to partners or stakeholders.

• You’re at a growth or scale stage, not early validation.

This version gives you depth and structure, which is ideal if you’re raising large sums or running a business that needs long-term forecasting. But for most early-stage founders, it’s overkill at the start — especially when your model is still evolving.

2. Lean or Modern Business Plan

A lean business plan is a simplified, shorter version of the traditional plan. It typically fits into one page or slide deck (it can also be called a one-page plan). It focuses on just the essentials like your value proposition, target market, operations summary, and financial outline. It avoids unnecessary detail and is easy to update, making it a practical choice for fast-moving entrepreneurs.

A lean business plan is used when:

• You’re still testing or validating your business idea.

• You need a quick overview to share with partners, early investors, team members, or advisors for a start.

• You’re running a small or solo business that doesn’t need a full-scale document.

• You want to test, pivot, and learn without rewriting 50 pages each time.

The lean plan isn’t “less serious.” It’s just more adaptive. You can evolve it into a traditional plan later when your model stabilizes or you’re preparing for bigger funding rounds.

3. A Middle Ground: The Hybrid Approach

Many founders today use a hybrid model — a lean business plan backed by a few traditional-style appendices (financial projections, market analysis, or a detailed operations plan). This gives you the agility of a startup plan with the credibility of a formal one — the best of both worlds.

Core Sections of a Business Plan

Every effective business plan follows a similar structure, covering the key areas that define your business. Here are the core components every solid business plan should include:

1. Executive summary

Your executive summary is the first section of your business plan, but it is often written last. It’s a concise overview of your entire business plan, ideally in one to two pages. The executive summary should be written clearly enough that someone unfamiliar with your business can quickly understand what you do and why it matters. Even if no one else reads the rest of your plan, this section should communicate the essence of your idea.

2. Company overview

The company overview contains a basic description of your business. It answers the “who, what, and why” of your business. When writing your company overview, you can go into details like your:

• Business name and legal structure
• The location where your business operates
• Founders and management team
• The brief origin story of your business
• Your business’s mission statement, which is the purpose behind your business
• The vision statement, which is what you aim to achieve long-term

If your business is still an idea, this section can explain your motivation and what gap you’ve identified in the market. Essentially, the main goal of this section is to briefly introduce your business to whoever is reading your business plan.

3. Market research and analysis

The market analysis section contains information about your target audience (the group of people most likely to buy from you), their demographics, behavior, and pain points.

It also defines the state of your industry, i.e, the size and growth rate of the market, trends that are influencing customer behavior, insights from your competitor research, and your broad analysis of the industry.

You can also include a SWOT analysis, listing your Strengths, Weaknesses, Opportunities, and Threats, to show you’ve considered both potential and risks of the idea.

For this section, use data from reliable sources, not your assumptions. It helps if you’ve already conducted this research beforehand, so you can simply include your findings.

The goal is to show that you’ve looked into your target market, you understand it, and know where your business fits in and can stand out.

4. Products and services

Here, you describe what you’re offering and how it solves a problem or meets a need.

This section will include details about your product, like the product or service description, key features and benefits of the product, the pricing model, competitive advantage, the development stage of the product (prototype, ready-to-launch, or already in the market), and, if applicable, mention intellectual property such as patents, copyrights, or unique technologies.

This section should leave no confusion about what you’re selling and why it’s valuable.

5. Marketing plan

This section outlines how you plan to promote or get the word out there about your product. The goal of this part is to answer one simple question: How will you attract and retain customers?

In this section of the business plan, you’ll have details like your marketing channels, sales funnel (how potential customers move from awareness of your products to purchase,) your pricing strategy, and how you plan to retain customers.

If you’re writing a business plan for a loan or investor pitch, include data on projected reach, conversion rates, and marketing costs.

6. Operations and management plan

Investors and partners want to see that you’ve thought through the logistics, people, and systems required to keep your business running smoothly. So in this section, you’ll explain how your business will function day to day.

Your operations and management plan may include the following areas:

• Team structure: Your company’s hierarchy and defined key roles.

• Operational workflow: How your business delivers value from start to finish.

• Suppliers and partners: List the external relationships that keep your business running.

• Technology and tools: The systems, software, and tools that support your operations.

When written well, this section reassures investors and even you, as the founder, that your business has a realistic roadmap for daily execution and long-term sustainability.

7. Financial plan

Your financial plan is the backbone of your business plan and one of the most important sections. This section proves that your idea is financially viable. Here you show the numbers, how your business will make money, manage expenses, and sustain growth.

Even if you’re in the early stages and don’t have historical data, you should still include realistic projections backed by research and logic. Investors and even future partners will judge your business’s credibility largely on how well this section is prepared. If you have any early sales, you need to include this, no matter how small, and base your projections on this.

According to Forbes, this section should contain three main documents: the income statement, cash flow statement, and balance sheet.

If you’re writing your business plan to apply for a loan or investor funding, this section carries the most weight, so pay adequate attention to it.

8. Appendix (optional)

The appendix is where you attach supporting materials like charts, graphs, financial statements, photos, resumes, legal documents, or any visuals that add clarity. If your plan includes market research data, surveys, or prototypes, this is the section to include them. And yes, your business plan can include pictures, infographics, or even PowerPoint-style slides. As long as they enhance understanding, visuals are welcome.

Step-by-step Guide on How to Write a Business Plan

Now that you understand the key components of a business plan, the next step is knowing how to put it all together. This is a way to approach writing your business plan that works for most entrepreneurs.

1. Define your purpose and audience

Before you write a single word, clarify why you’re writing the plan and who it’s for.

Are you seeking funding, pitching to investors, or creating an internal roadmap for your team? The purpose will shape how you write the plan and the level of detail you include in it.

For investors or banks, you’ll need detailed financials, market validation, and a strong competitive analysis. For internal use, you can focus more on just goals, strategies, and operations rather than financial depth. For early-stage startups, a lean, one-page plan might be enough to clarify your direction before committing to a full version.

When you’re clear on your audience and the use of the plan, you’ll write a more focused and effective plan.

2. Conduct thorough research

A strong business plan is built on solid research. You can’t make accurate assumptions about your market, audience, or finances without data.

So start by conducting this research; you’ll need to include their findings in your business plan:

• Market research: To understand your target audience, market size, trends, and competitors.

• Customer research: To identify who your ideal customers are, their pain points, needs, and buying behavior.

• Competitor research: To study similar businesses and how you differ and can be better.

• Industry research: To learn about the overall state of your industry, growth potential, and challenges.

• Product research: To test your solution and gather feedback on your offer.

This is the groundwork required for writing your business plan, but also for outsiders to gain faith in you as an entrepreneur. If you don’t already have this information, the best time to get it is now. This will ensure your plan reflects reality and actually persuades people, not just ambition.

3. Draft the core sections

Once you’ve done your research, it’s time to bring everything together into a well-formatted document. Draft your business plan and use the key sections listed earlier as your guide. Each section should clearly show how your business will function, grow, and compete in the market. Although business plans usually follow a particular structure, they are not too limited; yours doesn’t have to be generic. Write in a way that reflects your unique voice and vision. Express yourself and show your drive and passion.

4. Review and seek feedback

Your first draft usually isn’t your final plan, and that’s completely okay. Set your document aside for a day or two, then review it with fresh eyes. After your self-review, share it with mentors, peers, or business advisors. They can point out missing details or sections that need clarification.

Using Edventures to Create (and Evolve) Your Business Plan

You don’t need to start your business plan from scratch — or guess what investors expect. With Edventures, you can build your plan step-by-step alongside Anna, our built-in AI business coach. She helps you refine your idea, stress-test your assumptions, and turn your notes into a structured, investor-ready plan — even if it’s your first time doing it. Once everything looks good, you can download your finished business plan as a PDF or keep refining it as your business grows.

You can upload your own notes, brainstorm live with Anna, and get tailored suggestions on each section — from your market analysis to your financial projections. As your business evolves, your business plan will update in real time, keeping it current and actionable rather than static - ready to share with anyone, anytime.

The best business plans aren’t just written once — they’re rewritten often. That’s the philosophy behind Edventures: helping founders think clearly, plan smarter, and adapt faster.

👉 Start your business plan with Edventures — and build it like a founder, not a formality.

Common Questions About Business Plans

Can a business plan be one page?

Yes, a business plan can be one page. A one-page business plan, also called a lean plan, is ideal for early-stage startups or entrepreneurs still validating an idea. It should summarize your value proposition, target audience, key activities, and financial outline.

Can a business plan get you a loan?

Yes. Banks and lenders often require you to assess the credibility of your business and your ability to repay. A solid financial plan and risk assessment section are especially important here.

Can a business plan have pictures?

Absolutely. Charts, product photos, and infographics can make your plan more engaging and easier to understand.

Can a business plan be a PowerPoint?

Yes. A presentation-style plan (often called a pitch deck) is common for investors or quick meetings. The key is clear communication, not format.

When should you prepare a business plan?

Ideally, before launching. However, if you’ve already started, it’s never too late. Many businesses create updated plans every year or two as they evolve.

Why is a business plan important in entrepreneurship?

Because it reduces uncertainty. It forces you to think strategically and evaluate risks. It helps you measure progress, but most importantly, it helps you communicate your vision of your business to the rest of the world.