Writing Business Plan Elements: What Should You Include?

Award-winning writer Kathy Widenhouse has helped hundreds of nonprofits and writers produce successful content and has gained 600K+ views for her writing tutorials. She is the author of 9 books. See more of Kathy’s content here.

Updated 12.13.24

As you consider writing business plan elements and putting your plan together, where should you begin?

This is a particularly important question if you don’t have a business background or if you’re not completely confident in your writing abilities. The task of putting together a business plan can seem overwhelming.

Take heart. Like eating an elephant, writing a business plan can be broken into manageable steps. You can do it just one bit at a time. But first things first.

What is a business plan?

The short answer: A business plan in a written document that explains how you (if you’re a freelancer or solopreneur) or your organization (if you’re a small biz or nonprofit) operates and how it is funded. Your plan explains how you “do business.”

The long answer to “What is a business plan?” is a bit more intense. A business plan …

• Proves you’re serious about your business and can attract potential investors and partners.
• Allows you to test whether or not your business is feasible and profitable.
• Helps you identify milestones for the upcoming year.
• Lets you project 3- and 5-year goals and ways to achieve them.

A business plan answers “How?”

When I started out as a writer, I didn’t know what a business plan was.

I didn’t realize I already had put into place the elements of a business plan. Kudos to my parents who raised me to work with a purpose, stay within a budget, and plan how to achieve life’s tasks. I used those skills as I started my freelance journey. A couple of years later, I wrote down what I already knew about my operations and income streams – and worked through how to conduct the remainder.

The process of thinking through the “how” of your biz is just as valuable as the document itself. To get your plan on paper, you must think about the risks you face and write down actionable steps that lead to success. A business plan pulls those answers together onto one document.

How is a business plan structured?

A business plan is a written outline. 

It focuses on how your organization or small biz is structured, funded, and how it operates. The plan also lays out the route you’ll take to manage day-to-day operations and grow revenues.

It is different from a strategic plan, which sketches out your programs and day-to-day activities. In other words, your strategic plan answers the question, “What kinds of activities will we do to fulfill our mission?” Writing business plan elements answers the question, “How will we accomplish those activities?”

Good news: your business plan can be as simple or as complex as you like.

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Get your FREE, 1-page business plan here.

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Writing business plan elements: start here

A typical business plan includes the 7 elements listed below, yet that number isn’t set in stone. As you write your plan, include the pieces of information in this list but present them in a structure that fits your organization.

For instance, you may wish to combine one or more of the components on this list. Or you may separate out parts of one element to make two or more. Work to achieve completeness and clarity in your plan. Bottom line: this list is a starting point. Use it as a template to get going.

You’ll see that each element has a detailed description followed by suggestions to help you write a quick version. I’ve included both to help different kinds of organizations.

Perhaps your nonprofit or small biz has multiple staff members in a couple of locations. You need more extensive information on your business plan to get buy-in form managers and board members.

But if you’re a freelance writer working independently, you can opt for the quick version. (I’m all about making writing simple.) You can flesh out elements as needed – for instance, your marketing plan.

Get your FREE, 1-page business plan here.

7 elements of a business plan - simplified

1. Executive summary

The first section of a business plan is the executive summary, which offers an overview of your organization and basic identity information. Here is where you explain the purpose of your organization and how you go about achieving it. You can include your organization’s mission, vision, and history in the executive summary.

Quick version for 1-page plan: My biz exists to [mission statement].

2. Market analysis

Explain your niche: the problem in the marketplace you help solve, facts about that service area, and statistics that document the need. Profile your target market. Who do you serve? What outcomes do they experience as the result of your services? This section should also identify other organizations that serve your constituency and explain how you are different from them. 

Quick version for 1-page biz plan: My biz helps [target audience] to [problem you help solve].

3. Program description

Describe your organization’s approach to the problem you address in the marketplace. How do you meet the need presented in your target market? What programs do you operate and what outcomes do they achieve? Include intangibles that contribute to your programming success.

Quick version for 1-page biz plan: My biz uses [activities/programs] to address [problem you help solve].

4. Operational structure

This section may be divided into different parts, depending on the size and scope of your work.  And you can visually explain your organization’s governing and operational structures with a flow chart in this section or as an addendum in the appendix .

• Governing structure. Explain how your organization is governed: do you operate with a board of directors, a board of advisors, professional consultants? What are their roles? If you are a for-profit entity, then explain investor and shareholder structures. What accountability systems are in place?
• Operational structure. A separate segment in this section explains staff roles, with a breakdown of who handles specific responsibilities.  You may also want to include projected staff additions, with clear benchmarks indicating when staff can be added.

Quick version for 1-page biz plan:
Decisions are made by [person/team] is responsible for making decisions
Activities and programs are carried out by [person/team]
Activities are outsourced to [list of providers and their responsibilities]

5. Marketing plan

This section outlines how you plan to engage your target market, including prospects, customers, beneficiaries, volunteers, and supporters.

Your marketing plan details your approach to communicating with those target markets, including clear identity and branding, promotional materials (print and electronic), and your ongoing communications.

• How will you communicate your services to prospects or customers?
• What strategies will you use?
• Who is responsible for each?
• How will you measure outcomes?
• How will you communicate your outcomes and make a case for support to partners?

Quick version for 1-page biz plan: My biz will reach [target market] by [marketing tools/strategies].

6. Financial plan

The financial plan addresses your approach to acquiring revenue to fund your operations.

• Projected expenses. Address organizational expenses in your attached budget, formulated with the help of your agency accountant, staff member, or financially-skilled board member. Provide realistic projections on costs so that you can make a credible plan.
• Projected income. How will your organization be funded? As you list all potential revenue streams, include detailed explanations for your approach in acquiring them: business partners, sponsors, major donors, monthly donors, annual donors, government grants, foundation grants, subscriptions, and fundraising events, for instance.

Depending on how you go about writing business plan elements,  you may want to add a funding request component and historical financial information in this section, which you can tweak appropriately for each funder. Balance sheets, cash flow statements, and quarterly/annual/2-5 year projections are also helpful documents to include as appendices to this section.

Quick version for 1-page biz plan: My projected expenses per month are [dollar amount] and my projected income per month is [dollar amount], which will be acquired by [list specific revenue streams].

7. Appendix

Include extra documents in the section that are pertinent to your organization’s operational and financial structure: organizational flow chart, current fiscal year budget, a list of the board of directors, your IRS status letter, balance sheets, and so forth.

Quick version for 1-page biz plan: Attach your basic budget and any additional resources that are essential to completing your plan

One last business plan writing tip

As documents go, a biz plan is essential no matter how big or small you are.

Since a business plan is an outline, you can tackle one section at a time. If you choose a quick version, it takes 15 minutes or less to write.

That’s a small investment that helps you reap the reward of staying on track for the year.

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