name: Business Plan Writer
slug: business-plan-writer
description: Create comprehensive business plans, financial projections, and strategic documents for funding or planning
category: business
complexity: complex
version: "1.0.0"
author: "ID8Labs"
triggers:
- "business plan"
- "write business plan"
- "financial projections"
- "business strategy"
- "strategic plan"
- "funding plan"
tags:
- business-planning
- strategy
- finance
- fundraising
- business-operations

Business Plan Writer

Expert business plan creation system that helps you develop comprehensive business plans, financial projections, market analysis, and strategic documents for fundraising, partnerships, or internal planning. This skill provides structured frameworks for business planning based on proven methodologies that satisfy investors, lenders, and strategic stakeholders.

A strong business plan is your roadmap and your pitch. This skill helps you think through your business model, validate market opportunity, project financials realistically, and communicate your vision compellingly. Whether you're raising venture capital, securing a bank loan, or planning strategic growth, this provides the structure and rigor required.

Built on business planning best practices from leading accelerators, investors, and strategic consultants, this skill combines market analysis, financial modeling, and strategic thinking to create plans that drive action and secure resources.

Core Workflows

Workflow 1: Business Plan Structure

Standard business plan outline (20-40 pages typical)

1. Executive Summary (1-2 pages)
2. Company overview and mission
3. Problem and solution
4. Market opportunity (TAM, SAM, SOM)
5. Business model and revenue streams
6. Competitive advantage
7. Financial highlights (3-year projections)
8. Funding ask and use of funds

9. Write this LAST (summarize entire plan)

10. Company Description (2-3 pages)

11. Company history and background
12. Legal structure (LLC, C-corp, etc.)
13. Location and facilities
14. Mission, vision, values
15. Key milestones achieved

16. Current stage (pre-revenue, early revenue, growth)

17. Products & Services (3-5 pages)

18. Detailed product/service descriptions
19. Features and benefits
20. Intellectual property (patents, trademarks)
21. Product roadmap and R&D
22. Pricing strategy

23. Competitive positioning

24. Market Analysis (5-7 pages)

25. Industry overview and trends
26. Target market definition
27. Market size (TAM, SAM, SOM)
28. Customer segments and personas
29. Market trends and drivers

30. Regulatory environment

31. Competitive Analysis (3-4 pages)

32. Direct and indirect competitors
33. Competitive landscape matrix
34. Strengths and weaknesses analysis
35. Competitive advantages (moats)

36. Barriers to entry

37. Marketing & Sales Strategy (4-5 pages)

38. Go-to-market strategy
39. Marketing channels and tactics
40. Sales process and methodology
41. Customer acquisition strategy
42. Customer retention strategy

43. Pricing and positioning

44. Operations Plan (3-4 pages)

45. Production/service delivery process
46. Suppliers and vendors
47. Facilities and equipment
48. Technology and systems
49. Quality control

50. Scalability plan

51. Management Team (2-3 pages)

52. Organizational structure
53. Leadership team bios
54. Key advisors and board members
55. Talent acquisition plan

56. Compensation philosophy

57. Financial Projections (5-7 pages)

58. Income statement (3-5 year projections)
59. Cash flow statement
60. Balance sheet
61. Key assumptions
62. Break-even analysis

63. Unit economics

64. Funding Request (2-3 pages) (if raising capital)

    • Amount seeking
    • Use of funds (detailed breakdown)
    • Type of funding (equity, debt, convertible note)
    • Terms sought
    • Exit strategy

65. Appendix

    • Detailed financials
    • Market research data
    • Product specs
    • Letters of intent from customers
    • Resumes of key team members

Workflow 2: Market Analysis & Sizing

Validate market opportunity with data

1. Market Segmentation
2. TAM (Total Addressable Market): Total market demand
   • Example: All email marketing software globally = $5B
3. SAM (Serviceable Addressable Market): Market you can serve
   • Example: Email marketing for SMBs in US = $1B

4. SOM (Serviceable Obtainable Market): Market you can capture

   • Example: Realistic 5% market share = $50M

5. Market Research Methods

6. Primary Research: Surveys, interviews, focus groups
7. Secondary Research: Industry reports (Gartner, Forrester, IBISWorld)
8. Competitive Analysis: Competitor revenue estimates, market share
9. Government Data: Census, industry statistics

10. Trade Associations: Industry reports and benchmarks

11. Customer Segmentation

12. Define 2-3 target customer segments
13. Create detailed personas:
    • Demographics (age, income, location, role)
    • Psychographics (values, motivations, pain points)
    • Behavior (buying patterns, media consumption)
    • Needs and goals

14. Quantify each segment size and value

15. Market Trends

16. Growth rate and trajectory
17. Technology disruptions
18. Regulatory changes
19. Demographic shifts
20. Macro-economic factors

Workflow 3: Financial Projections & Modeling

Build credible 3-5 year financial forecasts

1. Revenue Model
   Choose appropriate model for your business:
2. SaaS: MRR × # of customers
3. E-commerce: Units sold × Average order value
4. Marketplace: GMV × Take rate
5. Freemium: Free users × Conversion rate × ARPU

6. Service: Billable hours × Hourly rate × Utilization

7. Revenue Projections

8. Start with bottom-up model:
   • Month 1: X customers at $Y/month = $Z
   • Assume X% MoM growth
   • Project 36-60 months forward
9. Validate with top-down:
   • If capturing 1% of $1B market = $10M (achievable?)

10. Build multiple scenarios: Conservative, Base, Optimistic

11. Cost of Goods Sold (COGS)

12. Direct costs tied to revenue
13. Variable costs that scale with sales
14. Examples: Hosting, payment processing, manufacturing, shipping
15. Calculate gross margin % (Revenue - COGS) / Revenue

16. Target gross margins by industry:

    • SaaS: 75-90%
    • E-commerce: 30-50%
    • Services: 50-70%

17. Operating Expenses

18. Salaries & Benefits: Headcount plan × average salary
19. Marketing & Sales: CAC × new customers, campaigns
20. Rent & Facilities: Office space, utilities
21. Software & Tools: SaaS subscriptions, licenses
22. Professional Services: Legal, accounting
23. R&D: Product development, engineering

24. Model month-by-month for Year 1, quarterly for Years 2-3

25. Cash Flow Projections
    ```
    Starting Cash

26. Revenue collected (consider payment terms: Net 30)
27. COGS paid
28. Operating expenses paid
29. CapEx (equipment, buildout)
    = Ending Cash
    ```
30. Identify cash flow gaps (when do you run out of cash?)

31. Determine funding needed to reach profitability or next milestone

32. Key Metrics to Calculate

33. Break-even point: When revenue = total costs
34. Burn rate: Monthly cash spent
35. Runway: Months of cash remaining
36. CAC: Customer acquisition cost
37. LTV: Customer lifetime value
38. LTV:CAC ratio (target: 3:1 or higher)
39. Payback period: Months to recover CAC
40. Rule of 40: (Growth rate % + Profit margin %) ≥ 40 (for SaaS)

Workflow 4: Competitive Analysis

Understand competitive landscape and differentiation

1. Competitor Identification
2. Direct Competitors: Same product, same market
3. Indirect Competitors: Different solution to same problem
4. Future Competitors: Adjacent players who could enter

5. Identify top 5-10 competitors to analyze

6. Competitive Matrix
   Create table comparing you vs. competitors on:

7. Product features
8. Pricing
9. Target market
10. Distribution channels
11. Strengths and weaknesses

12. Market share/revenue (estimated)

13. Competitive Advantages (Moats)
    Identify sustainable advantages:

14. Technology: Proprietary technology, patents
15. Network Effects: Value increases with users
16. Brand: Strong brand recognition and loyalty
17. Switching Costs: Hard for customers to leave
18. Scale: Cost advantages from size
19. Data: Proprietary data that improves product

20. Distribution: Unique access to customers

21. Barriers to Entry
    What prevents new competitors from entering?

22. High capital requirements
23. Regulatory hurdles
24. Existing customer relationships
25. Intellectual property protection
26. Economies of scale

Workflow 5: Go-to-Market Strategy

Define how you'll acquire and retain customers

1. Customer Acquisition
2. Marketing Channels:
   • Inbound: SEO, content marketing, social media
   • Outbound: Cold email, cold calling, ads
   • Partnerships: Channel partners, integrations, affiliates
   • Events: Trade shows, conferences, webinars

3. For each channel, estimate:

   • Cost per lead
   • Conversion rate
   • CAC

4. Sales Process

5. Sales Motion: Self-serve, inside sales, field sales
6. Sales Cycle Length: Days from lead to close
7. Average Deal Size: Typical contract value
8. Sales Funnel:
   • Leads → MQLs → SQLs → Opportunities → Customers
   • Conversion rates at each stage

9. Pricing Model: Freemium, tiered, usage-based, custom

10. Customer Retention

11. Onboarding process
12. Customer success programs
13. Retention initiatives (loyalty programs, community)
14. Expansion opportunities (upsell, cross-sell)

15. Churn reduction targets

16. Unit Economics
    CAC (Customer Acquisition Cost) = Sales & Marketing Spend / New Customers LTV (Lifetime Value) = ARPU × Gross Margin % × (1 / Churn Rate) LTV:CAC Ratio = LTV / CAC (target: 3:1 or higher) CAC Payback = CAC / (ARPU × Gross Margin %) (target: <12 months)

Quick Reference

Best Practices

Writing Quality

• Clear and concise: No jargon, easy to understand
• Data-driven: Back claims with research and numbers
• Realistic: Avoid over-optimistic projections
• Compelling: Tell a story, not just facts
• Visual: Use charts, graphs, tables (break up text)
• Proofread: Typos undermine credibility

Financial Projections

• Build bottom-up: Start with unit economics, build up
• Conservative assumptions: Better to exceed expectations
• Multiple scenarios: Show range of outcomes
• Monthly detail Year 1: Quarterly Years 2-3
• Document assumptions: Make it easy to update
• Validate reasonability: Does market share seem achievable?

Market Analysis

• Cite sources: Industry reports, research studies
• Be specific: "SMB market" is too broad
• Show growth: Investors want growing markets
• Prove demand: Customer interviews, LOIs, waitlist
• Realistic capture: Don't claim 50% market share in Year 2

Competitive Positioning

• Honest assessment: Don't claim "no competition"
• Differentiation: Clearly articulate your unique value
• Sustainable advantages: Why can't competitors copy you?
• Roadmap: How will you stay ahead?

Team Section

• Highlight experience: Relevant backgrounds, past successes
• Fill gaps: Acknowledge weaknesses, plan to hire
• Advisors: Credible advisors add legitimacy
• Commitment: Show team is full-time, invested

Plan Variations by Audience

Investor Business Plan (VC/Angel):
- Emphasize: Market size, growth potential, team, traction
- Financial focus: Revenue growth, path to profitability (or next milestone)
- Length: 20-30 pages
- Tone: Bold, ambitious

Bank Loan Business Plan:
- Emphasize: Profitability, cash flow, collateral, repayment ability
- Financial focus: Steady revenue, conservative projections
- Length: 15-25 pages
- Tone: Conservative, low-risk

Internal Strategic Plan:
- Emphasize: Objectives, initiatives, resource allocation
- Financial focus: Budgets, ROI on initiatives
- Length: 10-20 pages
- Tone: Operational, detailed

Partnership Business Plan:
- Emphasize: Mutual benefits, market opportunity, integration plan
- Financial focus: Revenue sharing, joint economics
- Length: 10-15 pages
- Tone: Collaborative

Common Pitfalls to Avoid

• Hockey stick projections: Unrealistic exponential growth
• Ignoring competition: Claiming "no competitors"
• Weak team section: Lack of relevant experience
• Vague market: "Everyone is our customer"
• Missing use of funds: Not specifying how capital is spent
• No traction: No validation, customers, or momentum
• Overconfidence: Dismissing risks and challenges
• Too long: 50+ page plans don't get read
• No executive summary: Readers need the highlights first
• Ugly formatting: Poor design undermines professionalism

Financial Projection Template (SaaS Example)

Year 1 Monthly Projections:

Assumptions:
- ARPU: $500/month
- Churn: 2% monthly
- CAC: $1,000
- Gross margin: 80%
- Initial team: 3 FTEs at $100K avg

Key Metrics:
- Break-even month: Month 18
- Runway: 24 months (with $500K seed funding)
- Year 3 ARR: $2.5M
- LTV:CAC: 4.2:1

Tools & Resources

Business Planning Software:
- LivePlan: Guided templates, financials
- Enloop: Automated financial forecasting
- Bizplan: Drag-and-drop builder

Financial Modeling:
- Excel/Google Sheets: Full control
- Causal: Modern financial modeling
- Finmark: SaaS-specific modeling

Market Research:
- IBISWorld: Industry reports
- Statista: Market statistics
- Gartner/Forrester: Tech market research
- Census Bureau: Demographic data

Examples & Templates:
- SBA.gov: Free templates and guides
- Sequoia Capital: Business plan template
- Y Combinator: Startup school resources