How to Write a Business Plan That Actually Gets Used

Start by deciding who the plan is for. If a lender or investor will read it, write a traditional plan with every section they expect. If it's for you and your partners, write a one-page lean plan and keep it current. Either way, cover what you sell and to whom, how you'll reach buyers, who runs what, and a first-year financial projection you compare with real figures as the year goes on.

In the US, the SBA says (page checked October 31, 2026): "There’s no right or wrong way to write a business plan. What’s important is that your plan meets your needs." This page covers choosing a format, what to put in it, and keeping it in use. Testing the idea before you plan is covered in how to validate a business idea, and the monthly budget that follows in how to create a business budget.

Choose the format

The SBA (US, page checked October 31, 2026) says: "Most business plans fall into one of two common categories: traditional or lean startup."

• Traditional: the SBA says traditional plans "can be dozens of pages long" and that "Lenders and investors commonly request this plan."
• Lean startup: the SBA says lean plans "can take as little as one hour to make and are typically only one page."

If you're not asking anyone for money, start lean. You can expand it into the traditional format when a lender asks.

What a traditional plan contains

The SBA's outline for a traditional plan includes these sections: executive summary, company description, market analysis, organization and management, service or product line, marketing and sales, funding request and financial projections. On the executive summary, it says: "Briefly tell your reader what your company is and why it will be successful."

Write the executive summary last, once the other sections are done, so it reflects what the plan actually says.

The financial projection

For a lender, the SBA (US, page checked October 31, 2026) says to "Provide a prospective financial outlook for the next five years." For the first year, it says: "For the first year, be even more specific and use quarterly — or even monthly — projections."

Base each line on something you can point to: signed work, prices you've tested, quotes from suppliers. Mark anything you're guessing as an assumption, so you know which numbers to check first.

Worked example: a first-year projection by quarter

Sample figures for a one-person consultancy, not a forecast for your business:

• Monthly revenue: $6,000 in Q1, $8,000 in Q2, $9,000 in Q3, $10,000 in Q4
• Annual revenue: 3 × ($6,000 + $8,000 + $9,000 + $10,000) = 3 × $33,000 = $99,000
• Fixed costs: $3,000 a month × 12 = $36,000
• Variable costs: 20% of revenue = $99,000 × 20% = $19,800
• Profit before tax: $99,000 − $36,000 − $19,800 = $43,200

At the end of each quarter, put the actual revenue next to the plan. If Q1 brought $15,000 instead of $18,000, revise Q2 to Q4 based on what slowed it down, not on the original hope.

Keep the plan in use

Set a date each quarter to compare the plan with what happened and rewrite the parts that turned out wrong. Update the plan so you can use it for decisions, not only for a lender.

Where Billed fits

For the quarterly comparison, you need actual revenue and costs in a form you can share. Billed's financial reporting page says: "All reports in Billed can be exported for use with your accountant, bookkeeper, or tax software."

When this guide isn't for you

If a lender or investor gives you their own template, use it. It isn't legal or financial advice; for a loan application, an accountant can check your projections.

Related Articles

• How to Validate a Business Idea
• How to Create a Business Budget
• How to Set Business Goals
• How to Fund Your Startup
• How to Choose a Business Structure

Frequently Asked Questions

How many pages does a plan need?

It depends on the format. The SBA (US, page checked October 31, 2026) says traditional plans "can be dozens of pages long", while lean plans "are typically only one page."

Is a plan worth writing if I'm not raising money?

You don't need a formal one, but a one-page plan can help you decide what to do first and lets you check progress against something written down.

Which format do lenders want?

The SBA (US, page checked October 31, 2026) says of the traditional plan: "Lenders and investors commonly request this plan." Ask the lender which format and sections they need.

How often should I update my business plan?

Compare it with your actual figures each quarter and rewrite the parts that turned out wrong.