How to Write a Business Plan

Creating a business plan is no small feat. It requires dedication, patience and a strong focus on your short- and long-term goals. Fortunately, your skills honed in the military have likely prepared you for this important task.

A business plan is a written document that explains your business from top to bottom. It covers what you're selling, who's buying it, how you'll reach customers and what your finances look like. Think of it as both a roadmap for growing your business and a tool for communicating your vision to lenders, partners or investors.

What is a business plan?

A business plan is your strategy document. It maps out what you're building, who you're serving and how you'll make it work. If you need financing, lenders will use it to decide whether to back you. But even if you're self-funding, a good plan keeps you focused and helps you make smart decisions as your business grows. Think of it as your mission brief—it tells everyone (including you) what success looks like and how you'll get there.

Business plans vary in length and detail depending on your vision. Some are short—maybe 10 to 15 pages. Others are longer and more detailed, especially if you're seeking a large loan or investors. What matters is that your plan clearly answers the key questions anyone would ask about your business. 

You don't need to be a business school graduate to write a plan. You just need to know your business and be willing to put your ideas on paper.

What questions should a business plan answer?

An effective business plan addresses the questions that anyone looking at your business would want answered. These are the same questions you should be asking yourself as you build and grow.

• What problem are you solving? Every successful business fills a need or solves a problem. Your plan should clearly explain what gap you're filling in the market and why customers will care.
• Who are your customers? You need to know exactly who you're serving. Where are they? What do they need? The more specific you can be about your target market, the better you can serve them.
• What makes you different? Your plan should explain what sets you apart—your competitive advantage. Maybe it's your pricing, your service, your location or your unique approach. Whatever it is, make it clear why customers should choose you.
• How will you make money? This isn't just about what you're selling. It's about your pricing strategy, your costs, your profit margins and your path to profitability. Lenders especially want financial projections that show you understand your numbers.
• Who's running the show? Your plan should introduce your team and highlight the experience and skills you bring to the table. If you're a Veteran, this is where your leadership experience and ability to execute under pressure can really shine.
• How will you reach customers? You need a clear sales and marketing strategy. Will you use social media, traditional advertising or word-of-mouth? Your plan should map out how you'll attract and keep customers.
• What do you need to succeed? Be honest about what resources you need—whether that's funding, equipment, space or people. If you're seeking financing, this section shows lenders exactly what you're asking for and why.

These questions form the backbone of your business plan. Answer them clearly and you'll have a document that guides your business and convinces others to support it.

How to write a business plan

Now that you know what questions your plan needs to answer, let's walk through how to actually build it.

1. Executive summary

This is the overview of your entire plan. Think of it as your elevator pitch in writing. It hits the highlights: what your business does, who your customers are, what makes you different and what you need to succeed. 

Even though it appears first in your plan, it helps to write the executive summary last. That way, you can pull the most important points from each section you've already completed. Keep it to one or two pages maximum.

2. Mission and value statements

Your mission statement explains the "what," "how" and "why" of your business in one or two sentences. What problem are you solving? How do you solve it? Why does it matter? Your values statement shows what your business stands for. If you're a Veteran, your service likely shaped your values around things like integrity, excellence or commitment. Those same values can guide your business.

3. Business concept

This section explains what your business does. Describe your products or services, your facilities (home office, retail space, production facility) and how your day-to-day operations work. Be specific and straightforward with your company description. Someone reading this should immediately understand what you're building and your business model.

4. Management team

Introduce yourself and anyone else involved in running the business. Focus on experience and expertise that matter for this specific venture. This is where your military background can shine. Highlight leadership experience, ability to work under pressure, strategic planning skills and operational expertise. 

5. Market analysis

This section shows you've done your market research. Here's where you prove you understand your industry and customers—and that you know there's demand for what you're offering. Talk about who you’re serving and be specific about your target market. How big is that market and is it growing? Who are your competitors and what are they doing well or poorly? What gap are you filling that others aren't?

6. Financial statements

This is where the numbers tell your story. Include an income statement that shows your revenue, expenses and profit over a specific period. You should also have a cash flow statement that tracks money coming in and going out of your business. Finally, create a balance sheet that shows what your business owns (assets) and what it owes (liabilities). If you’re seeking funding, you'll also need to include financial projections for the next 3-5 years.

7. Marketing and sales strategy

Explain how you'll reach customers and convince them to buy. Don't just list tactics. Elaborate on why these specific strategies make sense for your target market and how much you expect to spend.

8. Why you'll succeed

This is your chance to make the case for yourself and your vision. Give an honest but confident assessment of why your business will work. Include your passion and commitment to the business and frame it around important points. These may include the need you're filling in the market, your unique advantages and how you'll handle potential challenges.

9. Appendix

The appendix is where you can include any supporting information or graphics that help establish your plan’s credibility. Consider charts, graphs, spreadsheets and photographs of products. You may also include proof of patent applications and research and development.

Traditional vs. lean business plans

Not every business plan needs to be incredibly long. Depending on your business aspirations, you might choose between a traditional plan and a lean plan.

• Traditional business plans are comprehensive, detailed and high-level. They typically run dozens of pages and include all the sections covered above. You'll want a traditional plan if you're seeking a significant loan, pitching to investors or launching a complex business with multiple products or locations. Lenders and investors often expect this level of detail because it shows you've thought through every aspect of your business.
• Lean business plans are shorter and more flexible. They focus on the essentials: your value proposition, target customers, revenue streams, cost structure and key metrics. Lean startup business plans work well if you're testing a new business idea or need to pivot quickly as you learn what works.

Think of a traditional plan as your full operation order and a lean plan as your quick brief. Both get the job done, but one gives you comprehensive detail while the other keeps you agile. Many entrepreneurs start with a lean plan to get moving, then expand it into a traditional plan when they're ready to seek financing.

Get help with your business plan

You don't need to write your business plan alone. The key is to ask for help when you need it. There are plenty of free resources designed to help entrepreneurs like you.

Small Business Administration (SBA)

The U.S. Small Business Administration (SBA) offers business plan templates and step-by-step instructions. You can also visit any SBA office around the country for in-person help. Their advisors understand the challenges small business owners face and can guide you through the planning process.

SCORE

SCORE is a nonprofit organization that pairs entrepreneurs with experienced business mentors—all for free. These mentors volunteer their time to help you refine your ideas, review your plan and answer questions. SCORE also offers workshops and online resources specifically designed for people starting their first business.

Local resources

Many local small business development centers and chambers of commerce also provide free or low-cost assistance with business planning. Check what's available in your area—you might be surprised by how much support is out there.

Take the next step with Navy Federal Credit Union

Once you've built your well-crafted business plan, you may need financial support to bring your vision to life. Navy Federal’s business membership gives you access to business checking and savings accounts, credit cards, loans and other tools designed to help your business succeed.

We also offer resources specifically for military-connected business owners. Whether you're looking for entrepreneurship resources, guidance on starting a business after military service or tips for managing finances during tough times, we're here to support you at every stage of your journey.

Your business plan is just the beginning. Let us help you turn that plan into reality.