How To Write A Business Plan

Every successful business started as a thought. Maybe it came to you in the car, the shower, or over dinner when someone said, “You should really do that.” At some point, that original idea has to become something more structured. That’s where the traditional business plan comes in.

If a business plan feels old-fashioned to you, that’s because it’s been around a long time. Merchants in ancient Mesopotamia kept written records of their trade intentions and projected resources. Medieval guild systems made plans for how new tradespeople would enter a market.

The format of the business plan has evolved over time, but the core purpose hasn’t. Business plans are still very much relevant today because they show (in writing) that you understand your business and what it will take to make it work

Not Just for Startups

One of the most persistent myths about business plans is that they belong to the launch phase of a company and then get filed away—never to be seen again. What you might not realize is that some of the most useful business plans are written by companies that have been operating for years.

A business plan functions as an internal record where the founding logic of your business lives. Years from now, when your team has grown and your company has evolved, that original plan will tell the story of where you started and your overarching goals.

What the Process Does for You

A significant part of the value of a business plan is in the writing itself, not just the finished document. Writing a plan requires you to commit to details.

Instead of a broad statement like, “We’ll target small businesses,” you’ll need to specifically identify which ones, in which industries, and what size. How will you grow revenue? By how much? Through which channels? That level of specificity can lead to questions that you might otherwise be tempted to leave abstract. Some of these questions may reveal real problems with your strategy or opportunities you hadn’t accounted for.

You may find that your cost structure will make profitability at your projected price point difficult. It’s better to find that out on paper rather than six months into operations and real-world losses. The plan doesn’t just document what you know. It tests it.

Why Lenders Prefer Business Plans

If you’ve ever applied for a business loan, you know that a business plan is usually part of the package. There’s a reason for that.

A lender’s job is to understand your business well enough to make a confident decision about your loan. Your company’s financials tell part of that story, but numbers without context only go so far. A business plan fills in the rest. It informs lenders on how your business generates revenue, who your customers are, what your market looks like, who’s running the operation, and what qualifies them to do it. It gives a lender a complete picture of your business and where you’re headed.

It also demonstrates something less tangible but equally important—that you’ve done your homework. A business owner who can clearly articulate their market position, their risks, and their growth strategy is in a fundamentally different lending position than one who can’t. Banks aren’t just evaluating your balance sheet. They’re also evaluating your judgment.

At First Utah Bank, we work with owners across a wide range of industries and in most stages of business. The companies that come to us best prepared are the ones who understand their own business well enough to show their thinking. A well-written business plan can help you demonstrate that.

What to Include

Executive Summary: Often written last, this section goes first in your business plan document. By the time you’ve worked through the rest of your plan, you’ll know what belongs here. It details what your business does, what you’re asking for, and the case for why it works. Think of it like an elevator pitch. Keep it tight and don’t oversell it.

Business Description: Start with what your business actually does, stated plainly. This section should cover your business structure, when you were founded, and where you operate. It should also include what it is you’re selling, your target audience, and how a basic transaction works. This is where you demonstrate your understanding of your industry and where your company fits within it. Avoid vague positioning here.

Market Analysis: This is where you show that real demand exists for what you’re selling and that you understand the landscape you’re operating in. The businesses that stumble here usually do so because they’ve built their analysis around the customers they want—rather than the customers who actually exist. Use real data, talk to people in your target market, and let the evidence drive your argument.

Organization and Management: Cover your legal structure, ownership breakdown, and any board members or advisors. Then introduce your leadership team, using detailed explanations of what each person brings to this specific business. Years of experience matter less than relevant experience. Be candid about gaps. If your team is strong operationally but lacks financial expertise, say so—and explain how you’re addressing it.

Products and Services: What do you sell, what does it cost to produce, what do you charge, and what’s the margin? If your offering is still developing, lay out your roadmap rather than glossing over the unknowns. This is also a good place to address anything that gives your product or service a durable advantage, like a proprietary process, a long-term supplier relationship, intellectual property, or a level of specialization that takes time to replicate.

Marketing and Sales Strategy: Start with how your customers actually find and evaluate a product or business like yours. Do they search online, rely on referrals, respond to direct outreach, or make decisions through a long relationship-building process? The answer should drive everything else in this section. Explain your sales process and pricing model and how your marketing activity will achieve measurable results.

Financial Projections: If you’re an established business, you should include historical financials alongside your projections in this section. Startups should build estimates from clearly documented data. In both cases, the goal here isn’t to impress lenders with big numbers, but to show that you understand how your business makes money and what you expect to earn in the future.

Funding Request: If your business plan is connected to securing a loan or investment, be precise with what you’re asking for. List out what you need, what it will be used for, and how it will move your business forward. Lenders want to see that your ask is tied to a specific outcome, not just a general need for capital.

Write What You Actually Think

A business plan that smooths over every hard question isn’t really a plan, and lenders know the difference. Every business carries risk. What concerns lenders isn’t necessarily the presence of risk but whether you’ve identified it and thought through how to manage it. A plan that presents nothing but upside doesn’t read like a real business plan.
When you name a challenge and explain what you’re doing about it, you give your lender the information they need to structure your deal in a way that it actually fits your situation. Lenders prefer borrowers who have a firm grasp on where potential pitfalls lie and are taking proactive steps to manage them. A profitable business starts with the honest work of understanding how to cope with obstacles.

A Document Worth Revisiting

The purpose of a business plan is to act like an internal compass. Review your plan annually, and even more often if your business is changing quickly. Update your financial data, revisit your market analysis, and adjust your goals as things evolve. A business plan that serves a company with only five employees won’t serve that same company when it grows to a staff of over 50 people.

As you make changes and grow, be sure to save the early versions of your plan. Those original drafts become part of your company’s history, a record of what you were trying to build before you knew exactly how it would turn out.

How First Utah Bank Can Help

If you’re preparing to apply for a business loan, our lending team can walk you through the necessary paperwork and help you identify what you need to get started. If you’re earlier in the process and discovering what your business needs, we’re here to help. We’ve worked with Utah businesses at every stage in the process, and our team would be happy to answer any questions you might have.

Stop by any of our branches or reach out to connect with our team here.