What is a One Page Business Plan?
As the name suggests, a one-page business plan is a compressed version of a traditional business plan that fits neatly into a single page. Creating a one-page business plan requires significant research, strategizing and financial modeling on the front end to be effective. In that respect, rather than being easier or simpler to create than a traditional plan, the one-page plan actually requires an additional distillation effort.
The reward is that the brevity of a one-page business plan is very attractive to investors, who are usually pressed for time. Because it is so brief, it is also an effective tool to share among employees to get your team motivated and working towards the same goals.
Providing a one-page business plan proves you grasp the crux of your business and appreciate what is most critical for audiences to quickly understand about it.
The One Page Business Plan Template
Your one page business plan should includes the following 7 items:
- Business Model
- Market Analysis
- Competitor Analysis
- Financial Projections
- Funding Required & Uses of Funds
Each of these items are detailed below.
How to Create a One Page Business Plan
Each element of the traditional business plan retains its position in the one-page business plan. You need only provide a few words, phrases or sentences in description for each element and move on to the next. The following are the essential elements:
A problem is an unmet or underserved need of people you have observed. Your business is relevant because you propose to meet this need.
For example, Netflix in its budding days identified a problem with video stores. It was time consuming and inconvenient to go to the video store every time you felt like watching a new movie.
Here, you bring out your business idea that will solve the problem you had highlighted above. Your product and/or service is immediately justified because of the problem you had introduced to the audience beforehand.
Again, looking at Netflix, the company initially solved the problem of time consumption and inconvenience by delivering movies directly to customers’ homes.
3. Business Model
A business model highlights how your organization will create and capture value, or make money. You will need to provide details like production costs, selling costs, pricing strategy and distribution channels among others.
Consider the example of YouTube. YouTube’s business model hinges on users who by and large engage on the platform for free. YouTube leverages this ever-increasing user base to attract advertisers, which provides revenues.
4. Market Analysis
The market analysis includes a qualitative and quantitative evaluation of a particular group your business will target. You should include the size of the said market, regulatory considerations and customer segments along with their respective buying powers and patterns.
For example, Swedish furniture brand Ikea’s US target market could be described as urban young professionals who like Scandinavian style and are willing to put in a little set up work themselves to save money on quality furnishings. These individuals spend, on average, $8,000 on furnishing when they move into a new home or apartment.
5. Competitor Analysis
In this section, identify your main competitors, who could turn into competitors with time and what differentiates you from them.
Take the example of coffee giant Starbucks. Their competitor analysis would yield large brands like Dunkin’ Donuts, Panera Bread and McDonald’s McCafé, as well as boutique coffee shops on a neighborhood by neighborhood basis. Starbucks differentiates itself through providing specialty coffee products of consistent quality under a national brand.
6. Financial Projections
Strong financial projections include an income statement, a cash flow statement and a balance sheet. These detailed spreadsheets will not fit into a one-page business plan. Instead, simply include one or two graphs that illustrate the crux of your financial projections.
See below for example graphs that show a growth in topline revenues year over year as well as the projected revenue distribution by service area for a hair salon:
7. Funding Required & Uses of Funds
Here, you must clearly write about your funding expectations from the investors you are pitching to. Demonstrate either in a short table, words or pie chart the amount of capital you are seeking from investors and its proposed uses.
See below for an example table of fund uses for a startup hair salon:
Downloadable One Page Business Plan PDF
Click the image below to download our one page business plan pdf.
Remember to focus on your business’ strengths as much as you can. If your market analysis reveals you have a strong position then highlight it more in the plan. Likewise, if your financial projections come out stronger then elongate the financial section.
Editing the enormity of a business plan into a single page is no easy feat but doing so will bring clarity to the core idea and value of your business and help you pitch well in front of potential investors.
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