How to Write a Business Plan: 9 Sections, a Worked Example and a Free Checklist (2027)

ARS Business Guides

How to Write a Business Plan: 9 Sections, a Worked Example and a Checklist

A plan is not paperwork. It is the cheapest way to find out whether your idea can earn money before you spend any.

sections to cover

1 page

is enough to start

12 months

of cash forecast

What is a business plan?

A business plan is a short document that explains what you will sell, to whom, how you will reach them and how the money will work. Banks, investors, landlords and partners read it to decide whether to trust you. You read it to decide whether to go ahead.

The 9 sections every plan needs

1. Summary
Two or three sentences: the problem, your product, your customer and what you need.

2. The problem and your offer
What pain do customers have today, and how is your product better?

3. Customers and market size
Who exactly will buy, how many are there in your area and how much do they spend now?

4. Competitors
Who else serves them? Compare price, quality, location and service honestly.

5. Marketing and sales
How customers will find you, what it costs to win one and why they will return.

6. Operations
Place, equipment, suppliers, staff and the licences you need.

7. Team
Who does what, and which skills you still need to hire or borrow.

8. Money
Start-up cost, monthly costs, prices, expected sales, break-even and a 12-month cash forecast.

9. Risks and next steps
What could go wrong, your plan B and the first 90 days.

A worked example: a neighbourhood bakery

Suppose a baker plans a small bakery. Instead of guessing, she writes down simple numbers. These figures are illustrative, to show the method.

Item	Per month
Fixed costs (rent, two staff, power)	60,000
Average sale per customer	150
Ingredient cost per sale	60
Profit per sale (150 – 60)	90
Break-even sales (60,000 / 90)	about 667 customers

That is roughly 22 customers a day. The plan now asks a testable question: can this street really bring 22 buyers every day? Learn the method in our guide to break-even analysis.

5 mistakes that sink plans

Guessing the market. Check demand with real customers first. See primary vs secondary research.
Ignoring acquisition cost. Work out customer acquisition cost before you set a sales target.
A vague promise. Write a clear unique selling proposition.
No cash buffer. Profit on paper does not pay salaries; plan three months of spare cash.
Never updating it. Review the plan every quarter against real sales.

One-page checklist. Can you answer these in one sentence each? Who is my customer? What do they pay today? Why will they switch to me? What does one sale cost me? How many sales break even? Where does my first customer come from? Which licence do I need? What is my 90-day plan?

Trusted official resources

Registrations and schemes change, so always check the official source: Startup India, Ministry of MSME, Udyam Registration and, for a general template, the U.S. Small Business Administration guide.

Need evidence for your plan?

ARS Market Research, Chennai, tests demand with real customers before you invest.

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