Dreading the thought of writing a business plan? You’re not alone. Many new business owners put it off or skip it altogether because it seems overwhelming. But creating a solid plan doesn’t have to be complicated.
You can build an effective business plan by answering just six simple questions.
- WHAT are you selling?
Describe your product or service clearly:
- What exactly is it? What does it do?
- What features does it have and how do these help customers?
- How much will you charge?
Example: “I’m selling homemade cookies with unique flavors. Each cookie is large, uses high-quality ingredients, and costs $3 each or $15 for a half-dozen.”
- WHO are you selling to?
Describe your target audience:
- What kind of people will buy from you? (age, location, etc.)
- What do they care about?
- What problem do they have that you can help with?
Example: “I’m selling to college students who are health-conscious but busy. They want healthy meals but don’t have time to cook.”
- WHO else is selling this?
Know your competition (like really know them!):
- What other businesses offer something similar?
- What do they do well and not so well?
- What can you learn from them?
Example: “Three local bakeries sell cookies, but none offer delivery or my unique flavors. The grocery store sells cheaper cookies, but they’re not fresh.”
- WHY should people buy from you?
Explain what makes your business special:
- How is your product or service better or different?
- What special skills do you have?
- How will you treat your customers?
Example: “My meal prep service uses family recipes, sources ingredients locally, and customizes meals based on dietary needs. I’m also the only service in town using zero-waste packaging.”
- WHERE are you selling it?
Explain how customers will get your product:
- Will you have a physical store? Sell online?
- Will other stores carry your product?
- What areas will you serve?
Example: “I’ll sell my handmade jewelry through my website, at the weekend farmers market, and in three local boutiques. I’ll ship nationwide but offer free delivery in my city.”
- WHERE are you raising awareness?
Describe how people will discover your business:
- Which social media platforms will you use?
- Will you use ads and/or hang flyers? Where?
- How will you encourage customers to spread the word?
Example: “I’ll promote my tutoring service on Instagram with weekly study tips. I’ll put flyers in coffee shops and offer current students a free session when they refer a friend.”
How to Use This Framework
- Answer thoroughly: The more specific you are, the more useful your plan will be.
- Be honest: Acknowledge challenges so you can address them.
- Use AI help: Input your answers into an AI tool like ChatGPT to help organize your plan.
- Review and adjust: Make sure it accurately reflects your business vision.
- Keep it updated: Revisit your plan regularly as your business grows.
Next Steps
- Share your plan with trusted advisors for feedback
- Make a to-do list based on your plan
- Set measurable goals
- Create a simple financial projection
Remember: Progress Over Perfection
The most important thing is to start. Your business plan doesn’t need to be perfect—it just needs to exist. By answering these six fundamental questions, you’ll have a solid foundation that guides your business decisions.
Resources to Support Your Journey
Building a business plan and an actual business requires ongoing learning. These resources can help:
- Local Small Business Development Centers: In-person assistance and business building workshops from the University of Pittsburgh, Duquesne University and Chatham University
- Bplans: Hundreds of sample business plans plus templates and advice for business planning
- SCORE: Free mentoring from experienced business professionals including help with writing a business plan
- U.S. Small Business Administration (SBA): Comprehensive guides on all aspects of starting and running a business including how to write a business plan