Writing a Business Plan FAQ

Business plans are more than just a company description and a few financial statements. These self-made documents serve as the roadmap for your business and tell investors why you have a competitive advantage over other businesses.

This article answers frequently asked questions (FAQ) entrepreneurs have about how to write a business plan and whether they even need one.

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• Why do I need a business plan?
• What Is In a business plan?
• Do I need to write a business plan if I'm funding the business myself?
• What are the types of business plans?
• Who can help me with my business plan?
• Can someone write my business plan for me?
• Is a business plan a legal document?
• Who should I share my business plan with?
• Can I use a business plan template?
• Do I need to meet with an attorney before writing my business plan?

Why Do I Need a Business Plan?

Writing a business plan is critical in launching a new business venture. It helps prospective business owners think objectively and critically about the chances of success for their business idea.

A good business plan is essential for communication, sales strategy, management, and planning.

• A business plan aims to attract investment capital, loans, and business partners. Investors or lenders tend to provide money to businesses when they know the owner has put research and thought into them.
• As a management tool, the plan helps monitor and evaluate your business's progress. It serves as a guide to keep the company on the right track as you grow.
• As a planning tool, it guides you through the different phases of the business lifecycle.

The main point of a business plan is to show your business goals and how you plan to achieve these goals.

What Is In a Business Plan?

The contents of a business plan are typically:

• Competitive analysis
• Executive summary
• Financial documents, like balance sheets, cash flow statements, income statements, and loss statements
• Funding strategy
• Legal structure of the business, like sole proprietorship, limited liability company, or nonprofit
• Management team list
• Market analysis and target market
• Marketing strategy, like advertising and social media
• Mission statement
• Pricing of your new products or services

Now that you know what is in a business plan, decide whether to write it yourself or hire someone to do it for you.

Do I Need to Write a Business Plan If I'm Funding the Business Myself?

You don't need to write a plan. Every new business owner benefits from writing a business plan.

If you were building a home, you would start with a blueprint before you poured even a drop of cement and refer to it during construction. A business plan is a blueprint for a successful business.

Give the business plan as much time as necessary so you have a business blueprint. It is helpful even if you intend to provide all capital for your business.

You can use the business plan as a guide and a goal. If you've done your market research, you can set goals and milestones to reach those goals. You can set targets to measure your success if you have a financial plan and solid financial projections. These targets provide a roadmap to keep your business on track.

What Are the Types of Business Plans?

There are two types of business plans. These plans have many similarities but vary in length.

• Traditional business plan
• Lean startup plan

The lean startup plan is very short, and the traditional business plan is detailed.

Who Can Help Me With My Business Plan?

Many people can give you advice or help you write your plan.

• An accountant who understands business loans (can help with value proposition and business loans)
• Business counselor at the Small Business Development Center (SBDC)
• Business lawyer
• Experienced small business mentor
• Your local U.S. Small Business Administration (SBA)

Whoever you choose, ask them to help you understand a plan and how to make decisions that prevent future obstacles.

Can Someone Write My Business Plan for Me?

Yes, some consultants and businesses specialize in writing business plans. Be cautious. The person you pick will need to understand your business intricately. Look for someone with real industry experience, ideally in your type of business.

Even if you hire someone to write a business plan, it helps if you have begun the process yourself. No one knows the details better than the small business owner. Giving the writer a starting point will help the process go faster, especially if you are an existing business.

Is a Business Plan a Legal Document?

A business plan is not a legal document in the United States.

But, lenders and investors rely on your business plan to make loan or investment decisions. They expect the baseline facts to be truthful. Intentionally altering financial data, graphs, or loss statements is fraud. Those lenders and investors could sue you over it.

But if you are projecting to break even by a specific time and it doesn't happen, that is not fraud. That was a projection and not a promise.

Who Should I Share My Business Plan With?

A business plan is meant to be shared. You don't want it used to undermine your new business. Ask potential business partners or those who will learn about your intellectual property to sign a non-disclosure agreement. This prevents them from sharing the information they have seen and allows you to sue them if they do.

Banks and investors review many business plans. They may not agree to sign a non-disclosure agreement. Before you send them an entire plan, contact them first to determine their interest.

Can I Use a Business Plan Template?

You can use templates to fill in the information you want to share in your business plan. You can also use the FindLaw business plan outline. The exact details of your plan are unique to your business.

Do I Need to Meet With an Attorney Before Writing My Business Plan?

It's up to you. Meeting with a business startup attorney well-versed in the legal issues and challenges affecting small businesses could prove valuable. Even if you don't have specific questions, an attorney can review your business plan to ensure it adequately reflects legal realities, such as the costs associated with regulations.

Call a business and commercial law attorney in your area to get started. If you are ready to form your business, check out FindLaw's easy-to-use DIY business formation services.