A business plan is a written document describing the nature of the business, its goals, and how it will achieve them. It is a roadmap. It forces founders to think through the details before they spend money. It is also a sales tool, used to convince investors and lenders.

A traditional plan includes an executive summary, company description, market analysis, organization structure, product line, marketing strategy, and financial projections. Some plans are long and formal. Others are short and lean. The lean startup movement favors a one-page plan that is constantly updated. The format matters less than the thinking. What problem are you solving? Who is your customer? How will you reach them? What will it cost? How will you make money? A good plan answers these questions with evidence, not just optimism. It acknowledges risks. It sets milestones. It is a living document, not a museum piece. Write it, then revise it as you learn.

Typical sections

• Executive summary
• Company description
• Market analysis
• Marketing and sales strategy
• Financial projections
• Funding request