A practical guide
How to write a business plan
A useful plan is the next decision you need to make, with the gaps still visible.
Published November 1, 2026 · Luke F. Walton
A useful business plan helps you make your next decision. For a first business, that might be whether to try a weekend pilot, how much to charge, or whether the cost of a space makes sense. Start there.
You can write a lean plan before you know every answer. Mark the missing pieces so you know what to find out.
Start with the work and the customer
Say what you want to do in ordinary language. Who has the problem? What do they do about it today? Why might they pay you instead?
“A mobile bike repair service for people who cannot easily get their bike to a shop” gives you something to investigate. You can find those people, ask about their last repair, and learn whether convenience matters enough to pay for.
Talk with people who might buy. Ask about things they have actually done, the alternatives they considered, and the difficulty they ran into. Record what you hear separately from what you hope is true.
Choose a first offering
Describe what someone gets, how they get it, and how you will charge. Keep the initial scope small enough that you can explain it and deliver it.
You can name other ideas without including them in the first launch. A plan should help you decide what to do first.
Put numbers beside the idea
List one-time startup costs and the working capital you need while sales develop. Compare that requirement with the cash or committed funding you have. The startup cost calculator keeps unknowns separate from zero.
For the monthly model, enter a price per sale, variable cost per sale, expected sales volume, and fixed costs. Use the break-even calculator to see how many sales cover those costs. Then ask whether you have a credible way to reach that volume.
These are inputs to test. A confident-looking number is still an assumption if you have no evidence for it.
Describe how you will operate
Think through where you will work, the equipment and suppliers you need, and who will do the work. Write down administrative questions for the appropriate official source. You do not need to resolve every question to recognize that it exists.
List the risks that could change your decision. Dependence on one supplier, a cost you have not priced, or a customer you have not spoken with belongs in the plan.
Name your first actions
Write down how your first customers will find you and what you will do in the next 30 days. Choose a few things you can observe: conversations held, trials completed, orders placed, repeat customers, or time spent delivering the service.
An action such as “ask five local cyclists about their most recent repair” is easier to learn from than “research the market.” Choose the activity and scale for your circumstances.
Keep the plan honest
The planner labels answers, assumptions, accepted AI suggestions, and items needing research. It leaves missing answers unanswered. You can finish a lean plan with questions still open; those questions may be its most useful part.
You can use an assistant to develop it, or write the whole thing yourself. Export a copy, revisit it after you learn something, and change the plan when the evidence changes.
For a different outline or a longer document, the SBA’s business-plan guide is another starting point. A lender or partner may ask for information beyond a lean plan. Ask what they need before expanding it.