A short plan you read often is more useful than a long plan nobody opens. A one-page business plan forces you to decide what matters, gives you something to test against reality, and can be written in an afternoon.
Is a short plan enough?
The SBA describes two common formats. Traditional plans follow a standard structure, go into detail in each section, and can run dozens of pages. Lean startup plans summarize only the most important points, can take as little as an hour to write, and are typically one page. Lenders and investors commonly ask for the traditional version, and some may want more information than a lean plan provides.
The idea of keeping plans light has a history. In Harvard Business Review, Steve Blank contrasted the old formula, in which founders wrote a plan with a five-year forecast and then developed their product with little customer feedback, with lean start-ups that search for a working business model by testing and revising their ideas.
Planning still helps. A meta-analysis in the Journal of Business Venturing that combined results from earlier studies found that planning is beneficial for small firms, while factors such as how new the business is change how strong the effect is. The practical lesson is to plan enough to think clearly, and not so much that you delay starting.
The eight questions
Answer each in one to three sentences. If an answer is a guess, mark it as a guess.
- Who is the customer? Be specific. “Homeowners within 20 miles who need yard work” is better than “everyone.”
- What problem do they have? Use the one-sentence version from your customer conversations.
- What are you offering? Describe the product or service and how it is delivered.
- Why would they choose you? Think about price, convenience, quality, trust, or local knowledge.
- How will they find you? Name the one or two channels you will actually use.
- How do you make money? List your prices and any repeat or recurring revenue.
- What does it cost? Estimate startup costs and monthly costs, and note your break-even point. The SBA suggests separating one-time expenses from monthly ones.
- What must be true for this to work? List your two or three biggest assumptions and how you will test each one.
An example
The following is a made-up example to show the level of detail. It is not a real business.
Mobile pet grooming in a county with no groomer. Customers: dog owners within 25 miles who currently drive 40 minutes each way. Problem: grooming takes half a day round trip. Offer: a van that visits homes on a monthly schedule. Why us: no travel for the owner and a familiar local face. Channels: the town Facebook group and referrals from the veterinary office. Revenue: a set price per visit, with a discount for a prepaid monthly plan. Costs: van, supplies, insurance, fuel. Key assumption: at least 40 households will book a monthly visit within six months.
Notice that the last line is something you can check. That is the point of a short plan.
When you need a longer plan
If you apply for a bank loan or approach investors, you will likely be asked for a fuller plan with financial projections. Write the one-page version first. It becomes the summary at the front of the longer document, and the thinking behind it will make the longer plan faster to write. A local Small Business Development Center can review a longer plan before you submit it.
Keep it alive
Put a monthly reminder on your calendar to read the plan and update it. Cross out assumptions that turned out to be wrong and add what you learned. A plan that changes as you learn is doing its job. If your numbers section feels thin, our guide on financial basics for new founders is the next step.