This report synthesizes five sources to deliver a practical, results-oriented guide on how to write a business plan. Across authoritative sources (SBA, Harvard Business Review, NerdWallet, Bank of America) and a non-traditional data point (Reddit), the core message is consistent: a solid business plan is a structured, credible tool that clarifies strategy, guides execution, and improves access to funding and partnerships.
The SBA emphasizes the plan as a roadmap and a vehicle for market insight; HBR stresses the quality and relevance of information over volume; NerdWallet and Bank of America provide concrete step-by-step outlines. A notable caveat is the variance in audience emphasis: lenders look for risk mitigation, while founders benefit from actionable clarity. The actionable consensus is to use a lean-to-traditional outline, anchored in market insight, credible team assumptions, and robust financials, updated iteratively.
Source-by-Source Insights
Source 1: U.S. Small Business Administration (The Flexible Roadmap)
Function: Functions as a roadmap to structure, operate, and grow a new business. It is critical for funding and partnerships.
Format: The plan should be proportionate to needs. There are two common formats: Traditional (comprehensive) and Lean Startup (high-level focus). The choice depends on context.
Input: Highlights practical inputs such as Market Analysis (including NAICS code considerations) to enhance accuracy.
Takeaway: Treat the plan as a living tool rather than a static report.
Source 2: Harvard Business Review (Credibility & Storytelling)
Essence: A great plan is about credible storytelling regarding a real opportunity, not just polished charts.
The 4 Elements: People, Opportunity, Context, and Risk.
Caution: Warns against over-reliance on aggressive projections. Instead, emphasize team capability, opportunity scale, and honest risk assessment.
Takeaway: A compelling plan must balance ambition with credibility, explicitly addressing execution capabilities and contingencies.
Source 3: Reddit (Practical Tools & Friction)
Context: Non-professional community discussions providing on-the-ground insights.
Focus: Users discuss writing tools, collaboration methods, and practical application friction.
Takeaway: Useful as a starting point for tooling decisions but should not be the primary basis for strategic decision-making.
Source 4: NerdWallet (The 10-Step Framework)
Structure: Provides a clear 10-step guide: Executive Summary, Company Description, Goals, Products/Services, Market Research, Marketing/Sales Plan, Financial Analysis, Financial Projections, Operations, and Appendix.
Utility: Relies on actionable, reproducible templates. It is particularly useful for drafting the plan after initial idea validation.
Source 5: Bank of America (The 15-20 Page Standard)
Format: Suggests a practical length of 15–20 pages and an 11-step approach for small businesses.
Horizon: Emphasizes including 3–5 year financial goals and strategies.
Credibility: Designed to build trust with lenders/investors. Cites research indicating planning correlates with higher growth (e.g., 30%+).
Lifecycle: Advise writing after idea validation and updating regularly to keep the team aligned.
Strategic Framework: Structure and Execution
1. The Core Structure (Template)
Based on the synthesis of Source 4 and Source 5, the following structure is recommended:
Executive Summary: Vision, Market Opportunity, Financial Highlights. (Write this last).
Company Overview: Mission, History, and Value Proposition.
Market Analysis: TAM/SAM/SOM, Competitive Landscape, Customer Segments (Source 1).
Business Model: Revenue streams, Pricing strategy.
Strategy & Execution: Marketing, Sales, Operations, Milestones.
Team & Management: Profiles, Advisors, Organization Chart (Source 2).
Financial Plan: P&L, Cash Flow, Balance Sheet, 3-5 Year Projections.
Risk & Mitigation: SWOT Analysis, Contingency Plans.
Appendix: Resumes, Permits, Data Sources.
2. Best Practices for Tone and Length
Length: Aim for 15–20 pages. Concise enough to be read, detailed enough to be credible (Source 5).
Tone: Realistic and evidence-based. Avoid hockey-stick projections without grounding. Focus on “Risk” and “Context” as much as “Opportunity” (Source 2).
Timing: Start writing after you have validated the core idea and market demand (Source 5).
Actionable Roadmap (6-Week Sprint)
Week 1: Validation & Market. Confirm market assumptions, NAICS codes, and customer segments (Source 1).
Week 2: Competitive Analysis. Define the competitive landscape and your unique value proposition.
Week 3: Business Model. Finalize revenue streams and operational costs.
Week 4: Strategy Draft. Draft Marketing, Sales, and Operations sections.
Week 5: Financials. Build the financial model (P&L, Cash Flow) and scenario analysis (Source 4).
Week 6: Review & Finalize. Write the Executive Summary. Review against the “4 Elements” (Source 2).
Risks and Mitigation
Optimism Bias: Entrepreneurs tend to overestimate revenue. Mitigation: Use conservative assumptions and explicit risk sections (Source 2).
Static Document: Plans become obsolete quickly. Mitigation: Schedule quarterly reviews to update the plan as a “living document” (Source 5).
Audience Mismatch: Investors care about scale; lenders care about stability. Mitigation: Tailor the Executive Summary and Financials to the specific reader (Source 1).
Conclusion
The core execution for “How to write a business plan” is to build a solid 15-20 page structure that faithfully reflects the four critical elements: People, Opportunity, Context, and Risk.
By utilizing the integrated insights from the SBA, NerdWallet, and Bank of America, you can ensure a logical flow from market analysis to strategy execution to financial results. The ultimate goal is to create a document that serves as an internal compass while establishing external trust with stakeholders.
References
Source 1: Write your business plan | U.S. Small Business Administration.
Source 2: How to Write a Great Business Plan (HBR).
Source 3: What do you use to write your business plan? (Reddit).
Source 4: What is a business plan? How to write a business plan (NerdWallet).
Source 5: How to Write a Business Plan for a Small Business (Bank of America).