How to Write a Simple Business Plan: 3 Tips for Business Planning

According to statistics from various startup support organizations, over 70% of businesses with a clear business plan are more likely to survive after 3–5 years compared to those without a specific plan. However, many people searching for how to write a business plan, creating a business plan, or a business plan template for beginners feel confused: What do I need to write? How much research is needed? Does it need to be overly detailed?

This article will guide you on how to write a business plan from A to Z in the simplest, most practical, and applicable way. Whether you are preparing to start a business, raise capital, or simply want to systematize your business ideas, you will know exactly what you need to do, what sections to write, and how to present them clearly and persuasively. No lengthy theories – just the essential steps to get you started immediately.

Secret 1: Market research before writing the plan

Step 1: Market analysis when writing a business plan

1. Determine if the market has sufficient potential

Before investing, clearly answer: Are there enough people willing to pay for your product/service?

• Check market size: the number of potential customers in your target area.

• Analyze actual demand: are they looking for similar solutions?

• Look at search trends and market competition levels.

• Assess industry growth rate: is the market expanding or saturated?

This is an important step in market research when creating a business plan, helping to avoid intuitive business decisions.

2. Analyze age and demographic characteristics

Understanding your target customers will help you position your product more accurately.

• What is the average age of customers?

• Which gender accounts for a higher proportion?

• What are their education levels and marital status?

For example: New tech products are often suitable for the 18–35 age group, while healthcare services focus on those over 30.

3. Determine occupation and income

Purchasing power directly affects pricing strategy.

• What do customers do for a living? Office workers, business owners, or freelancers?

• What is their average income level?

• How much do they spend on similar products/services each month?

This section helps you determine whether the product belongs to the mass market, mid-range, or high-end segment in your detailed business plan.

4. Analyze economic factors and specific customer groups

Some products are only suitable for high-income groups or specific customer segments.

• Does the product target affluent, wealthy, or general consumers?

• Is it suitable for a specific community, region, or cultural group?

• Does the selling price exceed the purchasing power of the majority of the target market?

This is a crucial step when developing your marketing strategy in the business plan.

5. Determine the geographical location of ideal customers

Location greatly influences purchasing behavior.

• Do customers live in urban, suburban, or rural areas?

• Are they concentrated in high-end residential areas, industrial zones, or near schools?

• If doing business online, which areas have the highest search demand?

Correctly analyzing this factor will help you optimize operational and advertising costs in your standard business plan template.

6. Combine primary and secondary research

For the market analysis section of your business plan to be highly credible, you need to combine:

• Secondary research: industry reports, statistical data, data from government agencies or reputable organizations.

• Primary research: direct customer surveys, interviews, observation of purchasing behavior, product testing.

When you have concrete data instead of assumptions, your business plan will be more convincing to investors and banks.

Step 2: Determine the target market size

1. Narrow down the market instead of choosing "everyone"

Even if your product is universal (e.g., soap), you still need to select a specific customer group to start with.

• Do not identify "the entire population" as your initial market.

• Choose a clear segment by age, occupation, or specific needs.

• For example: soap for children under 8 or specialized soap for auto mechanics.

This narrowing helps make the market analysis in the business plan more realistic and feasible.

2. Determine the number of potential customers

After selecting a segment, quantify it with specific numbers.

• How many people in your target group are in your business area?

• If targeting auto mechanics: how many garages operate in each district/county?

• If targeting children under 8: what is the total number of children in the area?

You can refer to data from statistical agencies, industry reports, or conduct actual surveys. This is an important step when researching the market to create a business plan.

3. Calculate product consumption levels

Not only do you need to know how many customers there are, but also how much product they use.

• On average, how many products does a customer use per month?

• What is the repurchase frequency?

• Is demand seasonal or stable year-round?

For example: if an auto mechanic uses 3 bars of soap per month and there are 200 mechanics in the area, you have a basis for estimating potential revenue.

4. Analyze current market share

A large market that is almost entirely captured will have limited opportunities.

• How many businesses are selling similar products?

• What percentage of market share do they hold?

• Are customers loyal to existing brands?

This is an indispensable part of the competitive analysis in a business plan.

5. Evaluate the size and strength of competitors

Understanding competitors helps you position yourself correctly.

• Are competitors small businesses or large brands?

• Do they have advantages in price, distribution system, or brand?

• What unique selling proposition do you have to capture a share of the market?

In reality, a moderate market with low competition is often easier to exploit than a very large market dominated by strong enterprises.

Step 3: Determine initial needs when starting a business

1. List necessary tangible assets

These are items you must purchase or prepare before operating.

• Office, premises, or home workspace.

• Equipment: computers, phones, printers, management software.

• Furniture, filing cabinets, office supplies.

• Machinery, raw materials if manufacturing.

List each item specifically and estimate its cost. This section will be included in the startup costs in the business plan.

2. Identify intangible needs

Not all costs are visible, but they are very important.

• Time for market research and product development.

• Time to build brand and find first customers.

• Effort to establish operating procedures.

• Initial experimental marketing costs.

In reality, many businesses fail because they underestimate the "time cost" and initial effort.

3. Calculate necessary personnel

Depending on the business model, you can:

• Acquire a business with an existing team.

• Hire staff from the beginning.

• Or operate alone in the initial stage to save costs.

This section directly affects the financial plan and cash flow in your detailed business plan.

4. Assess personal capital and living expenses

This is a step many people overlook when learning how to write a business plan.

• How much savings do you have to invest in the business?

• How much money do you need each month to cover personal living expenses?

• How long might it take for the business to start generating profit?

If the business needs 6–12 months to achieve stable cash flow, you must ensure you have enough budget to live during that period.

5. Contingency for unforeseen expenses

Always add 10–20% contingency for unplanned expenses such as:

• Legal fees.

• Repair and upgrade costs for equipment.

• Additional marketing costs when revenue does not meet expectations.

In reality, this contingency helps businesses avoid financial crises in the early stages.

Step 4: Prepare product samples when creating a business plan

1. Complete the actual sample version

The initial prototype can be handmade, but to present to partners or investors, you need a more polished version.

• Sturdy, aesthetic design with easily understood functionality.

• Clearly demonstrate differentiated value compared to existing products on the market.

• It can be tested to prove its feasibility.

In a business plan, this section helps increase credibility and demonstrates practical implementation capability.

2. Determine materials and manufacturing process

You need to clearly answer:

• What materials is the product made from?

• Is it easy to source or does it need to be imported?

• What is the production cost per unit?

This section is directly related to cost analysis in the business plan and the product's pricing capability.

3. Calculate research and development (R&D) costs

Many ideas need improvement before being launched to market.

• Is further testing needed to increase durability or safety?

• Is investment needed in new design to optimize user experience?

• What is the R&D budget for the first 6–12 months?

Include this cost in the financial plan to avoid capital shortages midway.

4. Consider hiring technical experts

If the product is highly technical, you may need:

• Engineers to design detailed production drawings.

• Experts to optimize mass production processes.

• Quality inspection consulting units.

Having a professional design helps increase credibility when presenting to investors or manufacturing partners.

5. Protect intellectual property rights

If the product is highly innovative, consider:

• Registering for patents or utility solutions.

• Registering trademarks to protect the brand.

• Checking if the product infringes on others' intellectual property rights.

This is a crucial factor in the long-term development strategy of the business plan.

6. Check standards and legal regulations

Depending on the industry, you may need:

• Product safety certification.

• Quality inspection according to national or international standards.

• Compliance with regulations on manufacturing, packaging, and labeling.

Skipping this step can result in the product not being allowed to circulate or facing penalties.

Step 5: Research effective business locations

1. Conduct a real-world survey of the intended business area

Don't just look for information online; go and survey directly.

• Contact real estate brokers to view specific premises.

• Observe pedestrian traffic at different times of the day.

• Note the types of businesses nearby (restaurants, convenience stores, offices, etc.).

• Assess parking, accessibility, and storefront visibility.

This section helps you gather real data to include in your detailed business plan.

2. Compare rental prices by location and area

Create a clear comparison table to avoid emotional decisions.

• Record the rental price of each location.

• Calculate the price per square meter for easy comparison.

• Categorize: central location, large frontage, alley, residential area, etc.

• Identify the highest and lowest cost areas.

This is an important step in analyzing premises costs in a business plan.

3. Determine the actual necessary area

Many new business owners often rent premises that are too large or too small.

• How many seats does a restaurant need?

• Is a separate kitchen, storage room, and standard restroom area needed?

• Is space needed for waiting customers or a display area?

Calculate based on actual service capacity, not just desires.

4. Estimate total premises rental costs

Don't just calculate monthly rent; you need to calculate all related costs.

• Deposit (usually 2–3 months).

• Initial repair and renovation costs.

• Management fees, utilities, security.

• Rent-free period (if negotiable).

Include these figures in the financial plan within the business plan to accurately calculate cash flow.

5. Evaluate profitability versus rental costs

A practical rule in restaurant and retail business: premises rent should not exceed 10–15% of projected revenue.

• Estimate average monthly revenue.

• Compare with rental costs to see if it's reasonable.

• If rental costs are too high compared to potential revenue, reconsider the location.

Location research is not just about choosing a "good" spot but must be based on data regarding customer traffic, necessary area, and affordability. When you clearly present this analysis in how to write a business plan, your business plan will be more realistic, persuasive, and significantly reduce financial risks from the outset.

Step 6: How to accurately calculate startup costs

1. List all necessary resources

Write down everything you need to start, without missing anything.

• Tangible assets: computers, equipment, furniture, software, raw materials.

• Legal costs: business registration, licenses, legal consulting.

• Initial marketing: logo design, website, experimental advertising.

• Operating costs for the first 3–6 months: premises rent, utilities, employee salaries.

• Intangible resources: research time, product development costs.

The total estimated cost of these items is the startup cost in the business plan.

2. Estimate actual and well-founded costs

Don't guess. Get specific quotes.

• Compare at least 2–3 suppliers.

• Refer to current market prices.

• Ask experienced people in the industry.

If a cost is too high, find alternatives. For example: rent equipment instead of buying new, use monthly paid software instead of a one-time purchase.

3. Be comprehensive but not extravagant

Many new startups want to invest in the "best, most advanced" right from the start. This easily leads to capital overruns.

• Only buy what is truly necessary for operation.

• Consider working from home instead of renting a large office.

• Choose equipment that is sufficient, not high-end.

• Postpone "decorative" expenses that don't generate revenue.

The practical principle in the financial plan of a business plan: prioritize efficiency, not aesthetics.

4. Create a contingency budget

Always add 10–20% contingency costs for unforeseen expenses:

• Increase in raw material prices.

• Slower-than-expected revenue.

• Repair and upgrade costs.

The contingency fund helps you avoid running out of money and having to take out high-interest loans.

5. Estimate truthfully but conservatively

When developing a business plan, you should:

• Be truthful about actual costs.

• Be cautious with revenue forecasts.

• Don't be overly optimistic in the first 6 months.

Costs should be estimated slightly higher than actual, while revenue forecasts should be conservative. This approach makes your plan more reliable for investors and banks.

Step 7: Think like an investor when writing a business plan

1. Ask yourself investor-like questions

Ask yourself: "If I were to invest a large amount of money in this project, what would I need to know?"

• Is the market large enough?

• What is the product's competitive advantage?

• How long until the investment is recouped?

• Where are the biggest risks?

• What is the exit or expansion plan?

Answering these questions helps make your business plan more in-depth and credible.

2. Gather reliable data

Investors value data more than emotions.

• Industry reports from reputable sources.

• Official statistical data.

• Results from actual customer surveys.

• Financial analysis with clear calculation bases.

In how to write a business plan, specific data will increase persuasiveness and meet transparency and professionalism criteria.

3. Face the reality of competition

If you find that the market already has many strong competitors, don't be discouraged.

• Analyze their strengths and weaknesses.

• Identify gaps they are not serving well.

• Look for opportunities to improve customer experience.

A market that already has competition often proves that the demand is real.

4. Find ways to create a clear competitive advantage

You can differentiate in several ways:

• Do better: higher quality, faster service, better experience.

• Do cheaper: optimize costs for competitive pricing.

• Do differently: serve a niche customer group that competitors haven't focused on.

• Expand or narrow the market scope compared to competitors.

This part is very important in the competitive analysis of a business plan.

5. Demonstrate the ability to create long-term value

Investors don't just look at short-term profits.

• Is the business model scalable?

• Does the brand have long-term growth potential?

• Are there entry barriers to protect market share?

When you present a long-term vision with specific data, your business plan will be more professional and trustworthy.

Step 8: How to identify and persuade investors

1. Identify the right investor group

Not all funding sources are the same.

• Banks: prioritize collateral and stable cash flow.

• Angel investors: interested in rapid growth potential.

• Investment funds: focus on scalability and long-term profitability.

• Strategic partners: emphasize synergy between the two parties.

Choosing the right audience will make the fundraising section in your business plan more effective.

2. Understand the lender's risk assessment principles

Financial institutions often apply the 5C model in credit appraisal. When writing your business plan, you should prepare the following factors:

• Capital: How much of your own money have you invested in the project?

• Capacity: Is the projected cash flow sufficient to cover interest and principal?

• Collateral: Is there collateral or a guarantee?

• Conditions: Is the industry stable and growing?

• Character: What is your credit history and business experience like?

If any of these factors are missing, the likelihood of approval will significantly decrease.

3. Prepare transparent financial records

Before approaching investors or banks, you need to:

• Clearly forecast revenue and expenses.

• Analyze cash flow for at least 12 months.

• Detail the plan for capital utilization.

• Plan for handling lower-than-expected revenue.

This is a crucial part of the financial plan in a business plan.

4. Demonstrate execution capability

Investors don't just invest in ideas; they invest in people.

• Do you have experience in the industry?

• Does the team have sufficient expertise?

• Is there a clear and feasible operational plan?

A professional business plan must demonstrate execution capability, not just vision.

5. Prepare before seeking funding

Don't seek funding until you are ready.

• Finalize the business model.

• Validate market demand.

• Have a prototype or pilot revenue if possible.

Thorough preparation helps you negotiate from a proactive position rather than a dependent one.

Tip 2: How to build a sustainable business model

Step 1: How to define the company's mission and values

1. Answer the core question: Why does the business exist?

Before talking about the product, clarify the larger objective.

• What problem are you solving in the market?

• How urgent is that need?

• Who is struggling that you can help?

This section is fundamental to how to write a business plan as it determines the entire strategy that follows.

2. Clearly define the products or services offered

Don't be vague. Be specific:

• What exactly do you produce or provide?

• What is the differentiator compared to competitors?

• What specific benefits do customers receive?

For example: don't just say "open a restaurant," but "a healthy food restaurant, serving quickly within 10 minutes for office workers."

3. Clarify the market need you are addressing

Investors need to see that your product is meaningful to customers.

• Does the product help customers save time?

• Does it reduce costs compared to existing solutions?

• Is it safer or more convenient?

• Does it create a more engaging new experience?

A professional business plan must clearly demonstrate real value, not just creative ideas.

4. Focus on benefits rather than features

Customers don't buy products; they buy results.

• Restaurants don't just sell food; they sell dining experiences.

• Household products are not just tools; they make life easier.

• Children's products are not just items; they help parents solve daily problems.

In your business plan, describe the product from the perspective of the benefits customers receive.

5. Write a clear and concise value proposition

After analysis, you should have a concise statement that answers 3 questions:

• Who are your customers?

• What solution do you provide?

• Why are you better or different?

Example simple structure: "We help [customer group] solve [specific problem] through [differentiated solution]."

Step 2: Choose an effective competitive strategy

1. Identify core competitive advantages

Before choosing a strategy, you must know where your strengths lie.

• Does the product have unique features that competitors lack?

• Do you have lower costs, allowing you to sell at a competitive price?

• Is your customer service faster and more dedicated?

• Does your brand aim for premium quality?

This section is fundamental to how to write a business plan as it determines your approach to the market.

2. Choose one of the basic strategic directions

Although business models vary, successful strategies often revolve around a few main directions:

• Product differentiation: add special features, unique design, new experience.

• Cost leadership: optimize operations to sell at a lower price than competitors.

• Niche market focus: serve a specific customer group that competitors have not deeply explored.

• Build a strong brand: create an image of high quality, credibility, and trustworthiness.

In a detailed business plan, you should choose one main direction instead of trying to do everything.

3. Enhance customer experience

Many businesses are surpassed due to complacency.

• Deliver faster than market standards.

• Simple, convenient purchasing process.

• Professional and friendly consulting staff.

• Clear and transparent return policy.

Sometimes, a winning strategy is not about new products, but about exceeding average customer expectations.

4. Clearly position your image and brand

If the product is already popular in the market, you can still differentiate by building a unique image.

• Premium positioning and superior quality.

• Economical and practical positioning.

• Innovative, youthful, or professional positioning.

This positioning strategy needs to be clearly reflected in the marketing strategy of the business plan.

5. Ensure the strategy matches resources

A good strategy must align with:

• Available capital.

• Team capabilities.

• Target market size.

For example, if resources are limited, a niche market strategy is often more feasible than direct competition with large enterprises.

Step 3: Design the organizational structure in the business plan

1. Determine the initial number of personnel needed

In the startup phase, the goal is to be lean but effective.

• List the essential positions for the business to operate.

• Distinguish between full-time and part-time positions.

• Identify tasks you can handle yourself to save costs.

This section helps investors see that you have good control over personnel costs in the business plan.

2. Determine required skills and competencies

You don't just need people, you need the right people.

• Do personnel need industry experience?

• Are specific specialized skills required (technical, marketing, finance)?

• Is additional training needed before operation?

A professional business plan must clearly demonstrate the team's capabilities.

3. Design a simple and clearly defined organizational structure

Even small businesses should have a basic organizational chart.

• Who is responsible for operations?

• Who is in charge of finance?

• Who is responsible for marketing and sales?

• What are the reporting and decision-making processes?

A clear structure helps reduce conflicts and increase work efficiency.

4. Anticipate changes as the business grows

The initial plan will change as the business expands.

• Mid-level managers may be needed as the number of employees increases.

• A separate department for customer service or operations may need to be established.

• A recruitment plan for each growth stage needs to be prepared.

In the business plan, you should mention the direction of expansion but without excessive detail in the early stages.

5. Focus on profitability in the startup phase

At the time of seeking funding, the most important things are:

• An organizational structure sufficient for efficient operation.

• Personnel costs that are reasonable compared to projected revenue.

• A team capable of bringing the business to the break-even point.

Investors want to see that you have a clear plan to start and achieve profitability, rather than just talking about distant future expansion.

Step 4: Address operational and business management issues

1. Define your role as a leader

First, honestly evaluate yourself.

• What role will you hold: CEO, operations manager, or solely strategy?

• Do you have experience managing teams?

• Is your strength in specialization or management?

This section demonstrates your personal capabilities in the business plan and helps build credibility.

2. Develop clear HR policies

Operating a business is not just about hiring people, but also about managing benefits.

• How is the salary and bonus mechanism calculated?

• Are there clear insurance, benefits, or leave policies?

• Is there a performance-based bonus plan to retain staff?

These factors directly impact costs and team stability.

3. Understand tax and legal obligations

A sustainable business must comply with financial regulations.

• What types of taxes is the business subject to?

• Is an internal accountant needed or should external services be hired?

• What is the process for tax declaration and financial reporting?

In the business plan, demonstrating an understanding of tax and legal matters shows a methodical management mindset.

4. Identify the need for additional experienced management

If you don't have extensive management experience, consider:

• Hiring senior managers from the outset.

• Collaborating with industry-experienced advisors.

• Retaining key personnel if acquiring an existing business.

Investors often value a strong team more than a standalone idea.

5. Clarify the roles of equity partners

If there are co-founders or shareholders:

• Do they participate in management or solely provide capital?

• What is the scope of responsibility for each person?

• How is the decision-making mechanism defined?

This clarity helps avoid internal conflicts and increases transparency in the detailed business plan.

6. Establish management and reporting structure

A clear structure helps investors see that the business is professionally organized.

• Who holds key titles: Chairman, CEO, CFO, Department Head?

• What departments make up the organization?

• Who reports to whom?

A simple yet logical organizational chart will make the management section of the business plan more convincing.

Step 5: Develop an effective marketing plan

1. Define specific target customers

Before advertising, you need to know who you're talking to.

• What age group are the customers in?

• Where do they live?

• Do they prefer online or offline shopping?

• Are they interested in low prices, high quality, or convenience?

The more specific, the more effective the marketing strategy.

2. Choose appropriate communication channels

Not all channels are suitable for all products.

• If customers are young parents: social media advertising, community groups.

• If customers are businesses: email marketing, conferences, networking.

• If a local business: signage, flyers, partnerships with nearby stores.

This section needs to be clearly described in the detailed business plan.

3. Craft a compelling message

You must be able to answer the question: why should customers choose you?

• Does the product help save more costs?

• Superior quality?

• Faster or more convenient service?

• Are there attractive first-time buyer offers?

The message needs to focus on specific benefits rather than general descriptions.

4. Design promotional and incentive programs

In the early stages, promotions can help attract customers to try the product.

• Buy one get one free or grand opening discounts.

• Discount vouchers for subsequent purchases.

• Complimentary gifts for target customer groups.

• Refer-a-friend policies with special offers.

Promotional costs should be included in the marketing budget in the business plan.

5. Identify sources of customer data

Effective marketing requires data.

• Find potential customer lists from market reports.

• Extract demographic data by region.

• Collect customer information through surveys or trial programs.

Having a clear database helps increase the credibility of the plan.

6. Measure and optimize effectiveness

The marketing plan doesn't stop at implementation.

• Track costs per new customer.

• Measure conversion rate from advertising to purchase.

• Adjust advertising channels if effectiveness is low.

Investors will appreciate it when you have specific measurement methods in how to write a business plan.

Step 6: Develop an effective sales strategy

1. Define core sales philosophy

First, you need to clarify your long-term direction:

• Focus on building long-term relationships with a group of large, high-value customers?

• Or expand to a mass customer base with short-term purchase frequency?

• Prioritize profit per customer or a large number of customers?

This choice will influence the entire business plan and growth strategy.

2. Design a clear sales process

An effective sales system typically includes the following steps:

• Approaching potential customers.

• Consulting and identifying needs.

• Proposing suitable solutions.

• Handling objections and closing deals.

• Post-sales service to increase repeat purchases.

In your business plan, you should describe this process concisely yet specifically.

3. Choose the appropriate sales model

Depending on your business type, you can choose:

• Direct sales at a physical store.

• Online sales via website and social media.

• Proactive sales team seeking corporate clients.

• Dealer network or collaborators.

Clearly defining the model helps investors understand how revenue will be generated.

4. Focus on customer lifetime value

Instead of just thinking about a single sale, consider long-term value.

• How can customers be encouraged to make a second purchase?

• Are there loyalty programs?

• Are there regular customer care policies?

A sustainable sales strategy will help stabilize revenue and reduce new customer acquisition costs.

5. Train and manage the sales team

If you have sales personnel, you need:

• Clear recruitment standards.

• Transparent commission policies.

• Specific sales targets.

• Performance tracking system.

This section needs to be presented in the operational plan of the business plan to demonstrate execution capability.

Tip 3: Write a business plan that convinces investors

Step 1: How to arrange professional business plan content

1. Cover page and table of contents

This is the first impression.

• Company name, logo (if applicable).

• Founder's contact information.

• Date of document completion.

• Clear table of contents for easy reference.

A professional layout helps increase the credibility of the entire business plan.

2. Executive Summary

The most important section, often read first.

• Summary of the business idea.

• Existing market problem.

• Solution you provide.

• Market size and profit potential.

• Funding needs (if any).

This section should be concise, clear, and highlight the core value of the business.

3. Company Description

Helps readers understand who you are and what you do.

• Industry of operation.

• Mission and vision.

• Target customer segment.

• Key competitive advantages.

This is the foundation in writing a business plan to position the business.

4. Products and Services

Present in detail, but focus on the benefits.

• Specific product/service description.

• Differentiation from competitors.

• Value proposition for customers.

• Future development or improvement plans.

Investors need to understand what you are selling and why the market needs it.

5. Marketing Plan

Explain how you will reach and persuade customers.

• Target market analysis.

• Customer acquisition channels.

• Brand positioning strategy.

• Advertising and promotion plan.

This section shows that you have a concrete strategy for generating revenue.

6. Operations Plan

Present how the business operates daily.

• Business location.

• Production or service delivery process.

• Key suppliers and partners.

• Quality management system.

This section demonstrates practical feasibility.

7. Management Team and Organizational Structure

Investors value a strong team.

• Organizational chart.

• Roles and responsibilities of key positions.

• Experience and capabilities of the management team.

A professional business plan must clearly show who manages and how they manage.

8. Financial Plan

A decisive section when seeking funding.

• Revenue and expense forecasts.

• Cash flow analysis.

• Break-even point.

• Capital needs and proposed use of funds.

Data needs to be realistic and based on clear calculations.

9. Sustainable Development Plan

More and more investors are interested in long-term factors.

• Environmental impact of business operations.

• Social and community contributions.

• Financial sustainable growth strategy.

This section helps the business demonstrate responsibility and long-term vision.

Step 2: How to write a convincing executive summary

1. Write after completing the entire plan

Don't write it at the very beginning.

• Complete market, product, and financial sections first.

• Then summarize the strongest points.

• Only keep truly important information.

This helps the summary accurately reflect the nature of the business plan.

2. Start with the market problem and opportunity

Investors are interested in opportunities.

• What problems exist in the market?

• How large is the market?

• What are the growth trends?

The opening should show an opportunity attractive enough to be worth investing in.

3. Present the solution and unique value proposition

After stating the problem, show how you solve it.

• What is your product or service?

• How does it differ from competitors?

• Where are the sustainable competitive advantages?

In writing a business plan, this section needs to be the clearest and most understandable.

4. Summarize the business model and profitability potential

Investors want to know how you will make money.

• Where does revenue come from?

• Projected profit margin?

• When will the break-even point be reached?

No need for overly detailed figures, but the financial potential must be demonstrated.

5. State the vision and development direction

The executive summary should not only discuss the present but also the future.

• What scale does the business aim for in 3–5 years?

• Are there plans to expand into new markets?

• What is the long-term value for investors?

This section helps increase appeal and demonstrates strategic thinking.

6. Present funding needs (if any)

If you are seeking funding, you need to clearly state:

• Amount of capital needed.

• Purpose of fund utilization.

• Expected returns or collaboration form.

This section must be transparent and consistent with the financial plan in the business plan.

Step 3: Refine and edit the professional business plan

1. Focus on writing content first, then editing

In the first draft, don't focus too much on formatting.

• Write down all ideas, data, and arguments.

• Arrange according to the predetermined structure.

• Don't stop too long to fix minor errors.

The goal is to complete the overall framework of the business plan.

2. Refine the logical structure

After having a complete draft:

• Check the coherence between sections (market – marketing – finance).

• Ensure financial data matches the stated strategy.

• Remove duplicate or unnecessary content.

A professional business plan must be consistent from beginning to end.

3. Refine language and presentation

Once the content is stable, focus on the quality of presentation.

• Correct spelling, grammar, and punctuation errors.

• Use concise, clear sentences.

• Organize into logical paragraphs, avoid overly long blocks of text.

• Ensure consistent formatting throughout the document.

A professional appearance will increase credibility when submitted to investors.

4. Ask others for feedback

An outside perspective is very important.

• Ask experienced business people for their input.

• Ask what parts are unclear or unconvincing.

• Check if the content is easy for non-industry people to understand.

Objective feedback helps you identify weaknesses that you might have missed.

5. Prepare multiple versions if necessary

Depending on the audience, you can adjust:

• A detailed version for banks or investors.

• A concise version for strategic partners.

• A short summary for initial email correspondence.

In reality, flexible adjustment of documents increases the chances of success in fundraising or partnerships.

Step 4: How to Showcase Your Personal Capabilities

1. Highlight your unique personal value proposition

Clearly answer: Why are you the right person to execute this project?

• Do you have industry experience?

• Have you managed similar teams or projects before?

• Do you have specific achievements demonstrating your execution capability?

In a business plan, this section helps increase the overall project's credibility.

2. Focus on relevant experience and core skills

There's no need to list your entire academic and professional history.

• Select experiences that directly support the current project.

• Emphasize management, leadership, or product development skills.

• Provide examples of successes achieved.

A detailed CV can be placed in the appendix, while the main content should only summarize the strongest points.

3. Demonstrate leadership spirit and teamwork ability

Investors are interested in operational capabilities.

• How many people have you led in a team?

• Do you have experience resolving crises or major challenges?

• Are you capable of building a positive corporate culture?

Leadership ability is a key factor in how to write a business plan when presenting the founding team.

4. Demonstrate long-term commitment

A business project needs time to succeed.

• Are you dedicating full-time to the project?

• Have you invested personal capital?

• Are you willing to adapt and learn as the market changes?

Strong commitment helps investors feel more secure when partnering.

5. Highlight unique personal differences

Sometimes seemingly unrelated experiences create an advantage.

• Experience working with diverse clients.

• Educational background that gives you strong analytical thinking.

• Community activities demonstrating networking and influence.

The key is to link these elements to specific benefits for the business.

Step 5: Present financial data clearly and transparently

1. Prepare core financial statements

A complete financial plan typically includes:

• Monthly/quarterly/annual revenue projections.

• Operating expense forecast.

• Projected profit and loss statement.

• Cash flow forecast.

• Break-even analysis.

The figures must logically link to the market and sales strategy sections previously presented.

2. Based on realistic assumptions

Avoid using arbitrary figures.

• Revenue based on market size and reasonable conversion rates.

• Selling price based on market research and production costs.

• Growth based on actual operational capacity.

In how to write a business plan, financial assumptions need to be clearly explained to increase credibility.

3. Ensure honesty and transparency

Investors can easily spot overly optimistic projections.

• Present both optimistic and conservative scenarios.

• Outline potential risks and contingency plans.

• Do not hide costs or financial obligations.

Transparency helps build trust and credibility.

4. Compare with industry benchmarks

Banks and investment funds often compare your figures with industry averages.

• Is the profit margin consistent with industry reality?

• Is the marketing expense ratio reasonable?

• Are capital turnover and inventory turnover appropriate for the business model?

Referencing industry data helps you adjust projections before formal presentation.

5. Clearly state funding needs and uses of capital

If you are fundraising, clarify:

• Total capital to be raised.

• Allocation of capital for each specific item.

• Estimated time to reach break-even point.

• Expected returns or repayment plan.

This section must be consistent with the entire business plan.

6. Present simply and clearly

Even if investors have financial expertise, they still appreciate clarity.

• Use illustrative tables and charts when needed.

• Explain complex financial terms.

• Avoid verbose or illogical presentations.

Financial data is the "proof" for the entire idea in the business plan. When the figures are accurate, transparent, and based on reality, you not only demonstrate professionalism but also significantly increase the likelihood of receiving investment or funding approval.

Utilize reference sources to complete your business plan

1. Learn from successful business plans

Instead of starting from scratch, refer to:

• Business plan samples from successful companies.

• Case studies on marketing strategies and market entry.

• Analysis of how they identified their competitive advantage.

When researching, ask yourself: What makes them different? And what will make your business stand out?

2. Seek reliable sources of information

Data is the foundation of a professional business plan.

• Local libraries with books and industry reports.

• Reputable online data sources.

• Experts, lecturers, or mentors with practical experience.

• Business support organizations and industry associations.

Consulting with experts helps you see the problem more deeply instead of relying solely on personal opinions.

3. Always cite and source your data

If you use statistics:

• Clearly state the source citation.

• Use up-to-date data.

• Ensure transparency and verifiability.

Investors appreciate honesty and professionalism in how a business plan is written.

4. Compare your model with market benchmarks

When studying successful businesses, analyze:

• How do they position their products?

• What is their marketing strategy?

• What are the characteristics of their cost and profit structure?

Comparison helps you adjust your plan to be more realistic.

5. Only send an executive summary for initial outreach

Do not send a draft or the entire lengthy plan right away.

• Complete the document before sharing it.

• For initial contact, only send a brief executive summary.

• Only provide the full version when requested by the investor.

Many investors are busy and don't have time to read lengthy documents. A good summary will give you the opportunity for a more in-depth discussion.

References

1. Arizona State University Global Campus (UAGC). (n.d.). How to write a business plan step by step. Retrieved from https://www.uagc.edu/blog/how-write-business-plan-step-by-step
2. Association of Professional Sales (APSU) Writing Center. (2024). Business plan handout. Retrieved from https://www.apsu.edu/writingcenter/writing-resources/Business-Plan-Handout-2024.pdf
3. Colorado State University Libraries. (n.d.). Business plan research guide. Retrieved from https://libguides.colorado.edu/c.php?g=435982&p=2972444
4. Community Tool Box, University of Kansas. (n.d.). Developing a business plan. Retrieved from https://ctb.ku.edu/en/table-of-contents/finances/grants-and-financial-resources/business-plan/main
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6. Iowa State University Extension and Outreach. (n.d.). Business plan outline. Retrieved from https://www.extension.iastate.edu/agdm/wholefarm/html/c5-68.html
7. Office of Financial Management, State of Washington. (n.d.). Introduction to workforce planning. Retrieved from https://ofm.wa.gov/state-human-resources/workforce-data-and-planning/workforce-planning/introduction-workforce-planning
8. Pennsylvania State University Extension. (n.d.). Developing a business plan. Retrieved from https://extension.psu.edu/developing-a-business-plan
9. Risk Management Association (RMA). (n.d.). Who we are. Retrieved from https://www.rmahq.org/who-we-are/
10. Santa Clara University, My Own Business Institute (MOBI). (n.d.). Business plans. Retrieved from https://www.scu.edu/mobi/business-plans/
11. Small Business Administration (SBA). (n.d.). Calculate your startup costs. Retrieved from https://www.sba.gov/business-guide/plan-your-business/calculate-your-startup-costs
12. Small Business Administration (SBA). (n.d.). Write your business plan. Retrieved from https://www.sba.gov/business-guide/plan-your-business/write-your-business-plan
13. Sustainability Institute, Pennsylvania State University. (2021). Sustainability planning guidebook. Retrieved from https://sustainability.psu.edu/wp-content/uploads/2021/01/SustainabilityPlanningGuidebook.pdf
14. University of Vermont. (n.d.). Sample food business plan (Oklahoma State University). Retrieved from https://www.uvm.edu/vtvegandberry/Pubs/SampleFoodBusinessPlanOklahomaState.pdf
15. Indeed Career Guide (UK). (n.d.). How to write a business plan financial section. Retrieved from https://uk.indeed.com/career-advice/career-development/how-to-write-business-plan-financial-section

Translated by: Rowan Hudson Le.