Business Plan

---
name: business-plan
description: "Writes complete business plans with executive summary, market analysis, revenue model, and financial projections. Use when a user is starting a new venture, seeking funding, pivoting their business, or needs a structured plan to guide strategic decisions."
---

# Business Plan Writer

## When to Use This Skill

- Starting a new business and need a structured plan
- Preparing to pitch investors or apply for a loan
- Pivoting an existing business and need to rethink strategy
- Annual strategic planning session
- Entering a new market or launching a new product line

## Core Principle

**EVERY BUSINESS PLAN MUST ANSWER THREE QUESTIONS: What problem do you solve? Who pays you? How do you make money?**

## Workflow

### Phase 1: Discovery Interview

Ask the user these questions (skip any they've already answered):

1. What does your business do in one sentence?
2. Who is your ideal customer? (demographics, psychographics, where they hang out)
3. What problem do you solve and how do people currently solve it without you?
4. How do you make money? (revenue streams, pricing)
5. Who are your top 3 competitors?
6. What's your unfair advantage?
7. What stage are you at? (idea, pre-revenue, revenue-generating, scaling)
8. What's the purpose of this plan? (internal guide, investor pitch, loan application)

**DO NOT proceed to Phase 2 until you have answers to at least questions 1-4.**

### Phase 2: Market Analysis

1. Define the Total Addressable Market (TAM), Serviceable Addressable Market (SAM), and Serviceable Obtainable Market (SOM)
2. Identify 3-5 market trends supporting the opportunity
3. Build a competitive landscape table with positioning
4. Identify the gap the business fills

### Phase 3: Draft the Plan

Write these sections in order:

1. **Executive Summary** (1 page max) — Problem, solution, market size, revenue model, funding ask if applicable
2. **Company Description** — Mission, vision, legal structure, founding story
3. **Market Analysis** — TAM/SAM/SOM, trends, competitive landscape
4. **Products & Services** — What you sell, pricing, key features, roadmap
5. **Marketing & Sales Strategy** — Customer acquisition channels, sales process, partnerships
6. **Operations Plan** — Team, tools, key processes, milestones
7. **Revenue Model & Financial Projections** — Revenue streams, cost structure, 12-month P&L projection, break-even analysis
8. **Funding Requirements** (if applicable) — Amount needed, use of funds, expected ROI

### Phase 4: Financial Projections

Build a 12-month projection table:

| Month | Revenue | COGS | Gross Profit | Operating Expenses | Net Profit |
|-------|---------|------|-------------|-------------------|------------|
| 1     | $X      | $X   | $X          | $X                | $X         |

- Use conservative estimates (70% of optimistic projections)
- Include assumptions beneath every projection
- Calculate break-even month

### Phase 5: Review & Polish

1. Verify executive summary can stand alone as a 1-page pitch
2. Check all financial numbers are internally consistent
3. Ensure competitive analysis is honest (not dismissive of competitors)
4. Confirm the plan matches its purpose (investor plans need ROI focus; internal plans need operational detail)

## Examples

### Example 1: Online Fitness Coaching Business

**Discovery answers:**
- Business: Personalized online fitness coaching for busy professionals
- Customer: Working professionals aged 30-50 who want to get fit but can't commit to gym schedules
- Problem: Generic workout apps don't account for individual schedules, injuries, or goals
- Revenue: $197/month coaching subscription, $47 one-time workout plan

**Executive Summary output:**

> FitFlow Coaching solves the #1 barrier to fitness for working professionals: lack of personalization. While generic apps like Peloton and Nike Training Club offer one-size-fits-all workouts, FitFlow pairs each client with a certified coach who builds custom weekly plans around their schedule, equipment access, and health history.
>
> The online fitness coaching market is projected at $11.6B by 2027. FitFlow targets the underserved mid-market ($150-250/month) between cheap apps ($10-30/month) and premium in-person training ($400+/month).
>
> Revenue model: $197/month subscription (target: 50 clients by month 6 = $9,850 MRR) plus $47 one-time starter plans as a funnel entry point. Break-even projected at month 4 with $3,200/month in operating costs.

**12-Month Projection (excerpt):**

| Month | Subscribers | MRR | Starter Plans | Total Revenue | Expenses | Net |
|-------|------------|------|--------------|--------------|----------|-----|
| 1     | 5          | $985 | 12 × $47 = $564 | $1,549 | $3,200 | -$1,651 |
| 3     | 18         | $3,546 | 8 × $47 = $376 | $3,922 | $3,400 | $522 |
| 6     | 50         | $9,850 | 15 × $47 = $705 | $10,555 | $4,100 | $6,455 |
| 12    | 120        | $23,640 | 20 × $47 = $940 | $24,580 | $6,800 | $17,780 |

### Example 2: Handmade Candle E-commerce Brand

**Executive Summary output:**

> WickCraft Studio creates small-batch, hand-poured soy candles with unique scent profiles inspired by travel destinations. Unlike mass-produced candles from Bath & Body Works or Yankee Candle, each WickCraft candle uses 100% soy wax, cotton wicks, and premium fragrance oils with a story card describing the destination that inspired the scent.
>
> The US scented candle market is $5.5B with 35% of consumers preferring artisanal/small-batch products. WickCraft targets the $25-45 price point — above grocery store candles but below luxury brands like Diptyque ($68+).
>
> Revenue model: Direct-to-consumer via Shopify ($32 average candle, $58 average gift set), wholesale to boutique retailers (40% margin), and a $39/month subscription box. Target: $8,500/month revenue by month 6 with 62% gross margins.

## Recovery & Fallbacks

- **User can't answer discovery questions:** Start with just questions 1 and 4 (what + how you make money). Build the plan iteratively, marking sections as "[NEEDS INPUT]" and returning to fill gaps.
- **No financial data available:** Use industry benchmarks. State assumptions clearly: "Based on industry average of 3% conversion rate and $45 average order value..."
- **Plan exceeds 10 pages:** The plan is likely trying to cover too much. Split into a 2-page executive summary + detailed appendix.
- **User wants investor-ready formatting:** Add a cover page, table of contents, and appendix with detailed financial models. Keep the core plan under 15 pages.

## Constraints

- **NEVER present financial projections without stating assumptions**
- **NEVER dismiss competitors** — acknowledge their strengths, then differentiate
- Always use conservative revenue estimates
- Include both best-case and worst-case scenarios for financial projections
- Mark any section where data is estimated vs. verified