Plenty of small business owners write a business plan once and never open it again. It gets done for a bank loan or a grant, then sits in a folder. That is a waste of a useful tool. A good plan is a working document that helps you make better decisions every month.
This guide covers what a plan should contain, how to keep it short enough to use and how often to review it. It draws on free guidance from Australian state government business services. The aim is a plan you will pick up again, not one that gathers dust.
What a business plan is for
Business Queensland describes a business plan as a document that sets out your objectives and the strategies and structures you have in place to reach them. That is a simple test for any plan you write. If it does not say where you are going and how you will get there, it is not doing its job. Everything else in the document supports those two points.
A plan has several practical uses. It can help you start a new business or improve one you already run. It can support an application for finance or investment. It can also help you explain your goals to staff and track how the business is performing.
The Northern Territory Government notes that if you are applying for a grant or finance, a business plan must be part of the application. So even owners who dislike planning often need one at some point. You may as well write a version that also helps you run the business day to day. The extra effort is small once the basics are on paper.
Start with a one page version
A long plan can feel like a big task before you have even started. Business Queensland suggests a one page business plan can be a good place to begin. It covers your value proposition and business model at a high level. You can then build the full plan from it later.
Your one page plan might answer a handful of plain questions. Who are your customers and what problem do you solve for them? How do you make money and what does it cost to deliver? What are your main goals for the next year and how will you measure them?
Keep the wording simple. If a sentence would confuse a new staff member, rewrite it. A plan that only makes sense to its author is hard to share and hard to act on.
What to include in a full plan
Once the one page version is clear, you can expand it. The Business Queensland template and the Northern Territory guidance cover similar ground. A full plan usually includes the following sections:
- an executive summary, which Business Queensland suggests writing last
- a description of the business, its structure and its owners
- your mission, vision and values
- market research and analysis, including a SWOT analysis
- your marketing and sales strategy
- an operating plan and staffing plan
- legal matters, risk management and business continuity
- a financial plan covering setup costs, funding, cash flow and sales forecasts
- an action plan for the next six to twelve months
You do not need to fill every section with pages of text. A few clear points under each heading often work better. The aim is to show your thinking and give you something to check progress against. Short sections are also easier to update.
Market research and your marketing strategy
The market section is where many plans fall short. Owners often know their product well but have only a rough idea of who buys it and why. Spend time on your customers, your competitors and what makes your offer worth choosing. A SWOT analysis of strengths, weaknesses, opportunities and threats is a simple way to organise this.
Your marketing strategy should follow from that research. Think about where your customers look for businesses like yours. If they search online, your plan should cover your website and the keywords and search terms people use to find you. If you run paid ads, note your budget and how you will judge whether the ads are working.
Brand belongs in this section too. Your name, logo, tone and reputation shape how customers see every offer you make. It is worth thinking about how branding can impact your marketing before you set targets. A clear brand makes every other marketing task easier.
Turning goals into actions
A plan full of big goals and no actions will not change much. Break each goal into steps with a person responsible and a date. For example, a goal to win more online enquiries might lead to new service pages, a review of your ad copy and a monthly check of results. If you advertise on Google, a refresher on copywriting for Google Ads that convert could be one of those steps.
Business Queensland suggests the action plan cover a six to twelve month period. That is long enough to make real progress and short enough to stay realistic. At the end of each period you can look back at what worked and set the next round of actions. This rhythm keeps the plan connected to what is actually happening.
Share the plan with your team
A plan only you have read is hard to put into practice. Business Queensland says communicating your plan to staff and stakeholders is key to carrying it out. Use clear and simple language and choose a format that suits the audience. Ask for feedback, because the people doing the work often spot gaps you missed.
Sharing the plan also helps people pull in the same direction. When staff understand the goals, they can make better choices without waiting for you. It ties in closely with improving teamwork in your business. A short team meeting to walk through the plan is often enough to start.
How often to review your plan
Business Queensland calls a business plan a living document that should change as the business changes. It recommends reviewing it at least once a year. You can also check it more often, such as every quarter. The Northern Territory guidance makes the same point that plans should be reviewed regularly and updated when needed.
Some events are good triggers for an extra review. These include raising money, launching a new product, hiring staff or preparing to sell. A change in your industry or in the law can also be a reason to revisit your plan. Business Queensland adds that the decisions you make in your business should line up with your plan.
Free help is available if you get stuck. Business Queensland offers a free business plan template, and its guide to preparing a business plan links to further tools. The Northern Territory Government guide to writing a business plan also lists sources of support, including business advisers and government funded services. Many other states run similar small business services.
Frequently asked questions
How long should a small business plan be?
There is no set length. A one page plan is a sensible starting point and can grow into a full plan over time. What matters is that it is clear and that you use it.
Do I need a business plan if I already run a business?
Yes, it can still help. The Northern Territory guidance notes that existing businesses can benefit from a plan too. It gives you a way to set goals and measure progress.
Which section should I write first?
Many people start with the market and the goals. Business Queensland suggests writing the executive summary last. That way it reflects everything else in the plan.
Where can I find a business plan template?
State government business services offer free templates. Business Queensland has one, and the Australian Government business website offers another. Your local small business service may have its own as well.
