Introduction

A business plan is a formal document that outlines your company’s objectives, strategies, financial projections, and operational roadmap. It’s a vital part of business planning that helps entrepreneurs clarify their vision, attract investors, and guide long-term decision-making. Whether you’re starting a business plan for a new startup or updating an existing one, the goal remains the same – to provide a clear, data-driven blueprint for success.

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Below is a step-by-step business plan guide designed to help you understand how to create a business plan from scratch. This process will walk you through everything from writing a business plan to determining what to include in a business plan, and even how to present a business plan to banks or investors. Your plan should encompass the following 7 points:

● Executive Summary

● Products/Services

● Market Analysis

● Marketing

● Organizational Structure

● Financial Projections

● Appendix

It’s important to note that each business plan requires a unique approach. Factors such as your industry, business location, target market, and the purpose of the plan (for example, a bank business plan or small business plan) will influence the structure, tone, and depth of detail.

Steps to Create a Business Plan

Step 1: The Executive Summary

When starting a business plan, the Executive Summary is the first and most crucial section – but not necessarily the most decisive one. It’s your elevator pitch, the part that determines whether an investor, lender, or grant committee in New York City continues reading. In NYC’s high-cost and high-opportunity market, this section must immediately prove viability and scale.

Viability means demonstrating that your small business can survive and thrive in the city’s demanding economic climate. Your summary should briefly highlight your cost strategy, customer base, and how your business model sustains itself amid NYC’s high rent, labor costs, and competition.

Scale shows that your business idea isn’t just sustainable – it’s built to grow. Lenders and investors want confidence that the potential return justifies the risk. Clearly state how your model can expand, whether through location growth, online sales, or service diversification.

When writing a business plan, your vision and mission statements define your purpose.

• The vision expresses what you want your company to become in the future – your long-term impact

• The mission explains why your business exists right now and how it delivers value to customers

Finally, outline your short- and long-term goals.
Short-term goals should focus on realistic milestones like launching operations, achieving a target revenue, or building brand recognition within the first year.
Long-term goals should reflect your growth strategy – scaling across boroughs, entering new markets, or expanding your team.

A great Executive Summary sets the tone – but strong financial projections are what ultimately convince others that your vision isn’t just inspiring, it’s profitable and real.

Step 2: Company Description

When writing a business plan, clearly define your company structure – whether it’s an LLC, Corporation, Partnership, or Sole Proprietorship. This detail signals expertise and professionalism from the start.

Your choice of structure shapes taxes, liability, and growth potential. For example, an LLCoffers flexibility and protection for small business plans, while a Corporation suits companies aiming to attract investors.

Including this level of detail in your business plan immediately shows lenders or investors that you understand your business’s legal and operational foundation – a key mark of credibility.

Step 3: Market and Competitive Analysis

When developing a business plan, your Market Analysis should align with Google’s core local ranking factors: Proximity, Relevance, and Prominence. These same principles determine how well your small business stands out both online and within its local market. It is important to note that assessment based on statistics, market data and researches is more favorable in the eyes of investors and business plan users.

• Proximity: Define your target area and customer base. Investors want to see that your business is positioned close to its audience – especially important for small business planning in dense markets like New York City.

• Relevance: Show how your products or services directly meet local needs. The clearer the connection, the stronger your market positioning.

• Prominence: Demonstrate how your business will rise above existing competitors – both in the neighborhood and on Google.

A strong Competitive Analysis explains exactly how your company will build Prominence against established rivals. It is also important to note that market assessments supported by statistics, credible research, and real data are far more persuasive in the eyes of investors and other business plan readers. Data-driven analysis shows that your projections and conclusions are grounded in evidence, not assumptions – a quality that builds confidence and trust.

Step 4: Products, Services, Sales, and Marketing

This section is another important part of your business plan, as it connects ideas to measurable results. Begin with a clear description of your products or services and your pricing model – whether subscription-based, tiered, or one-time sales.

Next, include a calculation of cost of sales per unit and the expected number of sales within a specific period. These figures help investors and lenders evaluate profitability, sustainability, and scalability.

Your Marketing and Sales Strategy should combine local marketing – using community boards, local print outlets, and online directories – with consistent direct sales activity, such as client outreach, referrals, and partnerships.

Finally, ensure your marketing efforts comply with local signage and advertising regulations, demonstrating that your strategy is both actionable and compliant.

Step 5: Financial Projections

This is the most important part of your business plan, especially in New York City where operating costs, taxes, and real estate prices make standard models unreliable. Your projections must reflect NYC’s true costs – high rent, labor, and insurance – while also planning around fiscal constraints expected in the city’s future budgets. Realistic, data-driven projections build trust and demonstrate professionalism.

Mandatory Operating Costs

Include all required licenses, permits, and regulatory fees in your operating budget. These costs are unavoidable for most NYC businesses – from signage and occupancy permits to health or industry-specific licenses – and must be reflected accurately.

Clear Financial Path

Investors and lenders expect to see how your business will move from startup stage to profitability. The projections should clearly connect sales, expenses, and net income to your overall growth strategy.

a) Projected income statement monthly and annually

Account

Jan (Y1)

Feb(Y1)

Mar(Y1)

Apr(Y1)

May(Y1)

Jun(Y1)

Jul(Y1)

Aug(Y1)

Sep(Y1)

Oct(Y1)

Nov(Y1)

Dec(Y1)

Year 2

Year 3

Sales Revenue

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

Cost of Sales

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

Gross Profit

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

Payroll & Benefits

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

Rent & Utilities

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

Marketing & Advertising

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

Administrative Expenses

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

Taxes

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

Net Income

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

b) Projected balance sheet monthly and annually

Account

Jan (Y1)

Feb(Y1)

Mar(Y1)

Apr(Y1)

May(Y1)

Jun(Y1)

Jul(Y1)

Aug(Y1)

Sep(Y1)

Oct(Y1)

Nov(Y1)

Dec(Y1)

Year 2

Year 3

Cash

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

Accounts Receivable

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

Inventory

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

Fixed Assets

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

Total Assets

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

Accounts Payable

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

Loans Payable

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

Owner’s Equity

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

Total Liabilities & Equity

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

c) Projected cash flow statement monthly and annually

Account

Jan (Y1)

Feb(Y1)

Mar(Y1)

Apr(Y1)

May(Y1)

Jun(Y1)

Jul(Y1)

Aug(Y1)

Sep(Y1)

Oct(Y1)

Nov(Y1)

Dec(Y1)

Year 2

Year 3

Cash Inflows (Sales)

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

Investor Funding

XXX

–

–

–

–

–

–

–

–

–

–

–

–

–

Operating Expenses

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

Payroll

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

Marketing

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

Taxes Paid

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

(XXX)

Net Cash Flow

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

Closing Cash Balance

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

All three financial statements – the Income Statement, Balance Sheet, and Cash Flow Statement – must be interconnected and built on consistent, data-driven assumptions. The figures should align logically: profits from the income statement should affect retained earnings in the balance sheet, while cash movements reconcile through the cash flow statement. Each projection must be supported by a clear rationale, grounded in realistic sales forecasts, cost estimates, and market data, to ensure that the financial model reflects the true performance and sustainability of the business.

Step 6: The Funding Request

The Funding Request section outlines the total amount of capital your business requires and how those funds will be used. Investors and lenders expect clarity and precision – not only in the amount requested but also in the timing and purpose of each allocation.

Start by clearly stating the total funding amount needed to launch, expand, or stabilize operations. Then, break down how the funds will be applied across key categories such as:

• Leasehold improvements and equipment purchases

• Inventory and working capital

• Marketing and advertising

• Staffing and payroll

• Licensing, permits, and professional fees

Next, describe your repayment or return plan. For loans, specify the expected repayment period, interest rate, and source of repayment. For equity investors, outline the anticipated return on investment and possible exit strategies.

Finally, ensure your funding request aligns directly with your financial projections. The requested amount should realistically cover projected expenses and cash flow needs. When well-prepared and supported by interconnected financial statements, your funding request becomes a strong demonstration of business planning discipline and investor readiness.

Step 7: Appendix and Compliance Documentation

The Appendix is where you include all supporting documentation that reinforces the main sections of your business plan. This section helps investors, lenders, and grant reviewers verify the accuracy of your statements and projections. Common documents to include are:

• Resumes or bios of key team members

• Copies of business licenses and

• Permits, Partnership or supplier contracts

• Market research data and industry reports

• Equipment quotes, lease agreements, and letters of intent

• Financial documents or bank statements (if applicable)

Organize these materials clearly and label each exhibit so readers can easily find supporting evidence for the financial and operational claims made throughout your plan.

Conclusion

A well-prepared, localized business plan is the only way to stand out and succeed in a competitive market like New York City. By tailoring your plan to local market conditions, regulations, and audience expectations, you demonstrate not just readiness – but mastery.

Before finalizing or submitting your plan, it’s highly recommended to consult professionals who specialize in NYC financial modeling and regulatory compliance. Expert assistance ensures your plan meets investor standards, aligns with local laws, and maximizes your chances of funding success.

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