Five Steps to Building a Strong Business Plan

If you are an entrepreneur having a business plan is essential—not just at launch but at every stage of growth. Many businesses that start don’t have a plan, in fact, it is among the five top reasons businesses fail. Do you have a plan?

Whether you’re starting from scratch or updating your current plan, these five steps will help you build a strong business plan.

1. Define Your Business Vision, Mission, & Values
Step one is to clarify what your business stands for. Your vision is your long-term goal—the big picture of what you aim to achieve and why it exists. Your mission explains what your business does and who it serves.

The values of the business are critical to help provide the manner in which you operate your business. All together – vision, mission, and values provide direction, meaning and purpose to help you make aligned business decisions for growth.

2. Know Your Market and Customers

Who is your customer? This question is key to success. Market research is important to understand who your target customer is, what they need, and how your product or service solves their specific problem. Learn to create and use customer-focused surveys, learn from social media insights, and obtain community feedback to gather information to fine tune your product and services. Don’t forget to experience the products and services of your competitors so that you can create a unique competitive advantage or moat. The bigger the moat is the greater the success.

3. Test Your Products or Services

How do you know if your customers will buy your products and services? Are they unique? It helps to describe your products or services in great detail—how they’re made, what makes them special, and how much do they cost to provide or to make? Think about the best distribution channel to deliver them.

4. Develop a Financial Plan

Keep your financial plan simple. At its core, it should include:

  • Estimated operating costs

  • Projected monthly income

  • How much funding is required to start or grow your business.

Use this section to demonstrate your break-even point to determine profitability.

  • Pro Tip: If you’re unsure how to begin, try tracking your current business costs and revenue streams over a 30-day period.

5. Test Your Products or Services

A business plan should be actionable. Set clear, measurable goals—monthly, quarterly, and yearly. Then create an action plan for how you’ll achieve them. Think in terms of product testing, marketing campaigns, product launches, partnerships, and customer engagement strategies.

At Centro, we’re committed to making entrepreneurship accessible for everyone. If you’re ready to take the next step, our Start My Business program offers the tools and support you need to bring your plan to life.

Whether you’re just getting started or pivoting your business model, Centro is here to guide you.