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What Exactly IS a Business Plan? (And Why It's Simpler Than You Think)

If you’ve ever Googled “business plan,” you’ve probably been overwhelmed. Some results show 50-page documents with complex financial models. Others mention “company books” filed with stock exchanges. Then there are the templates from accountants that look nothing like what you expected.
So let me simplify things.
At its core, a business plan answers a handful of questions that every business — whether you’re opening a bakery or building an AI-powered SaaS platform — needs to answer. And honestly? You could sketch the basics on a napkin.

The Questions Every Business Must Answer

Here’s what a business plan really comes down to:
WHY — What triggered this? What problem did you identify, or what opportunity did you spot?
WHAT — What are you actually offering? Services? Products? A platform?
WHO — Who’s your audience? Who will pay for this?
WHERE & WHEN — Will this be a local business or global? Online or physical? 24/7 or limited hours?
HOW — How will you deliver your offering? Will you hire employees? Partner with others? Build technology?
HOW MUCH — What do you need to make all of this happen? And how will you generate revenue?
That’s it. Every business plan, from a freelance consultant to a multinational corporation, addresses these same questions. The difference is just the depth of detail.

But Wait — Startups Are Different

If you’re building a startup and planning to approach investors, the questions are the same, but we dress them up in different language. And honestly, the jargon can be intimidating at first.
In the startup world, WHY becomes your Problem (or sometimes “Background”).
WHAT becomes your Solution.
WHO splits into two concepts: your End User (who actually uses your product) and your Customer (who pays for it) — and these aren’t always the same person.
HOW becomes your Business Model and Go-to-Market Strategy.
HOW MUCH expands into Financial Projections, Funding Requirements, and your Roadmap.
And there’s one more critical piece that startups need to address that a bakery owner might not obsess over: THE TEAM. Investors don’t just invest in ideas — they invest in the people who can execute them.

Why Does Any of This Matter?

Here’s something I’ve learned after working with over 100 startups: the founders who struggle most in investor meetings aren’t the ones with weak ideas. They’re the ones who haven’t thought through these fundamental questions clearly enough.
When you can articulate why you’re doing this, what you’re building, who it’s for, and how you’ll make money — everything else flows from there. Your pitch becomes clearer. Your deck tells a story. And investors can actually understand what they’re betting on.
The business plan isn’t a bureaucratic exercise. It’s the foundation that makes everything else possible.
 
Ready to build your own business plan from the ground up? My book, The Startup Playbook, walks you through each of these elements step by step, with practical exercises and a real example company (SolarAdvance) to show you exactly how it’s done. Grab your copy [here] and start building your foundation today.
The Startup Playbook: Create a Killer Investor Pitch and Business Plan

Want to learn exactly how to calculate your TAM, SAM, and SOM — with templates and real examples? The Startup Playbook includes a full chapter on market analysis, plus an Excel template to help you build these projections. Grab your copy AMAZON and stop guessing at your market size.


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