How to Write Business Plan for Existing Businesses

Running a business but feel like it’s stuck or lacking direction?

Or wonder how to navigate your existing business with current market trends? Worry not, you’re not alone.

As technology, customer needs, and behavior evolve, transforming your business accordingly is crucial. The most effective way to evolve your business is through strategic business planning.

But how will you create a relevant business plan for an already established business?

To do so, dive into this blog, where you'll explore how to write a business plan for existing businesses, common mistakes to avoid, and the difference between existing and fresh business plans.

Let’s dive!

Business plan for an established business vs. a new one

Take a look at the table below to explore the distinctions:

How to write a business plan for an established business?

Writing a business plan for an established business is crucial to refining strategies, attracting new investors, and adapting to new market conditions.

Hence, considering the aspects mentioned in this section will help you create a comprehensive and effective business plan for your existing business.

1) Start with an executive summary

The executive summary of business plan provides readers with a concise overview of your current operations, achievements, and strategic direction.

Additionally, it provides a snapshot of where your business currently stands and where it’s headed, giving readers and stakeholders a clear understanding without needing to dive into the full details immediately.

This snapshot is essential for quickly engaging potential investors or partners, allowing them to understand the strengths and opportunities of your established business.

Key elements to include in your executive summary:

• Overview of your business
• A short description of your product/services
• Your goal for the business (expansion, new products, improving internal processes, etc.)
• Target market or audience
• Financial outlook (If you’re looking for a loan)
• Future objectives for new market
• Keys goals for improvements

Since you're already in operation, emphasize your achievements and growth so far.

2) Include company’s description

A company’s description is a crucial aspect of a business plan as it clearly explains what your business does, its mission, its vision, and the markets it serves.

The aim of including a company’s description in an existing business plan is to help stakeholders understand your company’s evolution and its strategic relevance in the marketplace today.

A well-articulated company description can also reinforce your business's credibility and help foster trust among new investors and partners.

Presenting the information in a table format can help stakeholders quickly grasp your company’s description.

You can use the following table to structure your company’s description clearly and concisely.

3) Inform about your product and services

In your business plan's products and services section, provide detailed information about what you sell.

How your products are manufactured or delivered, the problems your products/services solve, and any proprietary features that set your service or product apart.

Highlighting the problems your offerings solve and how your product has evolved based on customer feedback and market trends gives stakeholders insight into your adaptability.

This demonstrates your responsiveness to market demands and commitment to continuous improvement.

Explain the problem your product addresses, outline your unique selling points, and describe the benefits your product or service provides.

Additionally, in your existing product description, include the current market trends related to your product, identify areas where your product falls short, and specify what changes need to be made.

For example, if you have an eco-friendly product you can explain it to your stakeholders about your product in the following formation:

4) Discuss your marketing plan

This section should provide clear and concise details about your marketing plan. Stakeholders need to understand how your existing business plans to attract and retain customers in a competitive market.

Additionally, outlining your marketing plan demonstrates that you're actively adapting to industry changes.

Begin by outlining your target audience, detailing their demographics, preferences, and needs.

Next, discuss your key marketing strategies and the channels you’ll use to reach this audience, such as social media, email marketing, or content marketing.

Include any promotional tactics you plan to employ, such as discounts, partnerships, or influencer collaborations. Discuss how you’ll position your product or service in the market to differentiate it from competitors.

Outline your plans for measuring the effectiveness of your marketing efforts. This could include tracking key performance indicators (KPIs) such as conversion rates, customer acquisition costs, and engagement metrics.

Additionally, provide insights from your market research. Conduct a SWOT analysis to identify your business's Strengths, weaknesses, opportunities, and threats.

By providing these details, you can demonstrate how you intend to reach and engage your audience effectively.

5) Outline your operational plan

Inform about the day-to-day operations of your business, detailing how your company functions and delivers its products or services. Outlining your operational plan will provide insights into how efficiently your business runs.

It showcases the resources, processes, and logistics involved in delivering products or services which ensures to stakeholders that your business is well-organized and capable of meeting demand.

Your operational plan section should include the following things:

6) Provide information about your management team

Outlining your management team's information to your stakeholders is essential for building trust and confidence.

Highlight how your management team contributes to the success of the business. Further, to mention the management team in your existing business plan, don’t forget to include the following aspects:

• Name and title of each team member.
• Outline their specific roles and responsibilities.
• Highlight relevant qualifications and past experience.
• Focus on how their skills benefit the company.
• Mention any external advisors or mentors if applicable.
• Address future leadership or management transitions.

7) Present your financial projections

In this section, demonstrate your company's financial health and growth potential by sharing detailed financial projections.

Unlike startups, you can showcase past performance through balance sheets, income statements, and cash flow statements, highlighting any positive trends. This gives stakeholders insight into your business’s profitability and stability over the years.

Based on past success and growth strategies, provide realistic yet optimistic forecasts for the next 3-5 years, including revenue, expenses, and profits.

Additionally, outline any funding requirements and potential sources, whether through loans, investors, or internal resources.

8) Include appendices

In an existing business plan, appendices are essential because they provide supporting documentation that strengthens the credibility of your plan.

The appendices section is where you include any additional documentation that supports and reinforces the content of your business plan.

This section can include:

• Charts and graphs: Visuals for financial projections, market analysis, or other vital data.
• Legal agreements: Contracts, partnership agreements, or lease documents.
• Technical specifications: Product blueprints, patents, or proprietary processes.
• Market research: Detailed reports or surveys supporting your marketing strategy.
• Resumes of key personnel: CVs of management and key team members.
• Product samples or mockups: Photos or design mockups of products.
• Other supporting documents: Licenses, permits, certifications, or any other relevant paperwork.

The elements to include in your existing business plan end here. Ensure you avoid unnecessary details that could make your plan overly lengthy.

If you want to know the ideal length of your business plan check out our blog that outlines the right length of business plan and craft your plan accordingly.

8 mistakes to avoid while writing a business plan for an existing business

Nearly 45% of businesses fail within their first five years, and more than half don’t survive beyond a decade. One of the primary reasons for this is poor business planning.

So whether you’re on your 9th year of business or 99th, ensure you steer clear of these planning mistakes:

1) Overcomplicating the plan

Including unnecessary information can confuse readers, whether you’re writing a plan for an established firm or a startup. It leads them to focus on irrelevant details rather than the core objectives.

Further, over-complicating it with jargon or complex language can divert stakeholders' attention, making it difficult for them to understand your key messages.

2) Neglecting updates

Failing to conduct thorough market research can lead to misguided strategies which can quickly start the downfall of your well-established company.

Therefore, it’s essential to understand the current trends in your industry, your target audience, and the competitive landscape, and include this information in your business plan. Failing to incorporate these updates may hinder your ability to make informed decisions.

3) Ignoring the competition

Failing to thoroughly analyze your competition can lead to missed opportunities and threats, hampering your growth. Neglecting to identify competitors and understand their strengths and weaknesses may result in ineffective strategies and lost market share.

4) Vague goals and objectives

Vague objectives make it difficult to assess progress and success. Ensure your established business’s goals are specific and attainable to provide direction and focus.

5) Underestimating financial projections

Omitting financial projections can undermine your business plan. Stakeholders need to see expected income, expenses, and profitability to assess your business's viability. Without this information, it becomes challenging to secure funding or attract investors.

6) Lack of focus on execution

Not emphasizing the execution of your strategies is a critical error. A business plan shouldn’t only outline goals and strategies but also detail how you intend to implement them. Failing to provide a clear execution plan can lead to confusion and hinder your established business's growth.

7) Skipping the marketing plan

Failing to outline clear marketing strategies is a major mistake. Your business plan should detail how you plan to reach your target audience and promote your products or services. Without a solid marketing approach, attracting customers can be challenging.

8) Not addressing risks

Not addressing potential risks in your business plan can lead to unforeseen challenges.

Stakeholders need to see that you’ve identified risks and developed strategies to mitigate them all these years and intend to address the potential or future risks as well.

Failing to do so can make your business appear unprepared for uncertainties.

Differences between a business plan for an established business and a new one

Take a look at the table below to explore the distinctions:

Wrapping up

In this blog, we explored how to write a business plan for an existing business, mistakes to avoid while writing a business plan, and the difference between an existing business plan and a fresh one.

With this information, you can write a business plan for your established business with much detail and efficiency. However, writing a business plan for an existing business is complex.

While you can find a dozen options for planning tools online, the expertise of business planning consultants is unmatched any day.

Hire a plan consulting firm like PlanGrowLab or get a planning tool like Upmetrics; both are great options. The question is how much time and money you wish to spend.

No matter what you choose, we’re always here to help. Happy business planning 🙂