How to Create a Business Plan for a Small Business

A business plan can feel like an unnecessary chore, especially when you can write one only to file it away on your laptop, never to look at it again. But the value of a business plan isn’t in creating a perfect document—it’s in:

• Clarifying your vision

• Thinking of things you wouldn’t have considered

• Focussing your efforts, and;

• Adapting to challenges as they come up.

A business plan is essential not because it guarantees a flawless path forward, but because it sets the stage for intentional action. As James Clear highlights in Atomic Habits, "You do not rise to the level of your goals; you fall to the level of your systems."

A plan provides the structure—the system—that bridges the gap between your ambition and actually executing it. Even if your plan changes, as most inevitably do, the process of creating it forces you to define your priorities, consider what obstacles will get in the way, and work out your steps. It’s not about rigidly following every detail on that spreadsheet. Without a plan, you risk drifting without purpose; with one, even if imperfect, you create a plan, guiding you through inevitable uncertainty and change.

“You do not rise to the level of your goals; you fall to the level of your systems”

— James Clear

Why Is a Business Plan Worth Writing?

1. Clarity Over Complexity
   Many business owners hold their plans in their heads, but the act of writing forces clarity. By putting your vision, goals, and strategies into words, you’re more likely to identify gaps, refine your ideas, and prioritise effectively.

2. Accountability and Direction
   A business plan is a tool to hold yourself and your team accountable. It provides benchmarks for progress and clear action steps, making sure that daily tasks align with long-term goals.

3. Preparation for Challenges
   Markets change, customers shift, and unforeseen challenges will come up. A well-thought-out business plan can serve as a contingency guide, providing a well thought out strategy for pivoting or adjusting when the unexpected happens.

4. Credibility for Stakeholders
   Whether you’re seeking funding, building partnerships, or hiring employees, a business plan shows that you’ve done the work to understand your market and your business. It can reassure stakeholders that you’re serious and prepared.

5. Focus on Growth
   Writing a business plan forces you to think about scaling, customer acquisition, and resource allocation. It moves you beyond survival mode and into a growth mindset.

How to Create a Business Plan You’ll Actually Use

1. Make It a Living Document
   Don’t aim for perfection. Instead, create a flexible plan that evolves with your business. Schedule quarterly or biannual reviews to update your goals and strategies as circumstances change.

2. Keep It Action-Oriented
   Avoid jargon and vague goals. Each section should answer specific, actionable questions, such as:

• What is the next step to achieve this goal?

• Who is responsible for executing this task?

• When should progress be measured?

3. Focus on What Matters Most
   Include only what’s essential to your business. While traditional plans might include too much information, you should really be focussing on:

• Vision and mission

• Target audience and market analysis

• Revenue streams and cost structure

• Marketing and sales strategy

• Key milestones and metrics

4. Use Visuals and Tools
   Make your plan user-friendly with charts, timelines, and summaries. Tools like business model canvases or goal trackers can simplify and improve its usability making you use it more.

5. Align It with Day-to-Day Operations
   Connect your plan to your daily work. For example:

• If your goal is to increase customer retention by 20%, tie it to specific marketing campaigns or service improvements.

• Incorporate key metrics into weekly or monthly team meetings.

6. Seek Input from Others
   Involve employees, advisors, or peers when drafting your plan. Their perspectives can uncover your blind spots and make the plan more practical.

A Realistic Perspective: Use It or Lose It

A business plan that sits on a shelf is a waste of time. Instead, you should treat it as a tool to guide decision-making. Review it regularly, reference it during meetings, and let it evolve as your business grows.

A business plan isn’t a one-time project—it should be the document you use for years to get your business to a place you hoped it would be.

Would you like to explore templates or tools that can help streamline the planning process? Give us a call on or fill in our contact form.