write-business-plan
Write Business Plan
Produce a structured business plan that communicates the opportunity, model, and execution path to investors or lenders.
Why This Is Best Practice
Adopted by: SBA-backed loan applicants, Y Combinator portfolio prep, MBA venture programs, traditional bank financing Impact: SBA data shows businesses with formal plans are 16% more likely to secure funding and 30% more likely to grow. Sahlman (HBR, 1997) demonstrated that investors screen on people, opportunity, context, and deal — a structured plan surfaces all four efficiently. Why best: A business plan forces founders to pressure-test assumptions before spending capital. The process of writing it surfaces gaps that internal conversations miss.
Sources: Sahlman "How to Write a Great Business Plan" HBR (1997); Osterwalder & Pigneur "Business Model Generation" (2010); SBA Business Plan Guide (2023)
Steps
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Write the executive summary last — 1–2 pages covering: problem, solution, market size, business model, traction, team, and ask. Write last because it distills everything else. Investors often read only this.
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Define the problem and customer — describe the specific pain point, who suffers from it, and how they currently cope. Quantify the pain where possible (cost, time lost, frequency).
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Articulate the solution — explain what you build, how it solves the problem, and your key differentiator. Avoid feature lists — focus on the customer outcome.