How to Write a Business Plan
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In this article
A business plan explains what you will sell, who will buy it and how the business will operate. It should help you make decisions, not simply fill pages for a lender.
What to Prepare
Gather customer research, supplier quotations, operating costs and any available sales records. Keep evidence for your assumptions.
Writing Steps
- Describe the business. Explain the problem it solves, its products or services and the people responsible.
- Define customers and competitors. Identify the market you can realistically reach and why customers would choose you.
- Explain marketing and sales. Show how customers will find you, order and receive the product.
- Set out operations. Cover premises, suppliers, equipment, staffing and delivery.
- Prepare financial projections. Estimate sales, expenses and cash flow. Distinguish money received from sales merely invoiced.
- Explain funding needs. State the amount, intended use and how the business can support the commitment.
- Record risks and actions. Consider weaker demand, delayed payments, supplier changes and other relevant problems.
- Write the summary last. Give the reader a short overview supported by the detailed plan.
Tip: Label estimates clearly and revise them when real results become available.
Warning: A business plan does not guarantee funding or profit. Use Kenyan requirements for legal and tax matters; an overseas template is only a planning aid.
