9 crucial components of a lean business plan: the SMB guide

Writing a business plan is essential for any company, regardless of size or stage. While traditional business plans are more detailed, lean versions help clarify goals, define target markets and outline key growth strategies.

Whether you’re just starting out or scaling up, tailoring your business plan to your company’s needs lets you adapt as you evolve.

In this post, you’ll learn the nine crucial components of a business plan designed for quick adjustments as your company grows – plus a template to simplify the process.

What is a business plan? The 2 types

A business plan is a strategic document that outlines a company’s goals and the steps needed to reach them. It serves as both a roadmap for business owners and a tool for attracting investors and securing funding.

Business plans help entrepreneurs and companies clarify missions, define target audiences and plan financial futures. These elements guide daily operations and long-term decision-making.

While the format and detail of a business plan can vary greatly, there are generally two main types:

• A traditional business plan

• A lean business plan

Each type of plan serves a different purpose depending on the company’s size and growth stage. Here’s how the two compare:

While both business plans have their place, this article will focus on lean plans for startups and small existing businesses.

Lean business plans are quick, flexible and cost-effective, helping you avoid unnecessary complexity while setting a clear direction.

Here’s an example of what a lean business plan could look like:

Creating a lean version allows your company to test its viability, understand its customers and start generating revenue without the complexity of a traditional plan.

Download Pipedrive’s free lean business plan template

Pipedrive’s free business plan template helps you define your mission, target market, revenue model and more. Use it to quickly create a flexible, actionable plan that evolves with you.

Simply enter your contact details, download the template and fill in the step-by-step sections to create a streamlined plan that works for you.

Follow the instructions below to walk through completing your business plan effectively.

How to write a business plan: 9 crucial components and how to complete them

A lean business plan is all about simplicity and focus, helping you prioritize what truly matters for your startup’s success.

Here are nine crucial components for your business plan outline to communicate your vision clearly and concisely.

1. Company description

A company description should provide a broad overview of your business. It sets the stage for the rest of the plan and helps potential investors, partners or stakeholders understand why you exist.

A strong company description answers, “What is your business about?” Let’s use a fictional company, GreenTech Solutions, for our business plan examples.

GreenTech Solutions’ company description may be:

What to include in your company description:

• State your business’s core values, mission statement and vision

• Briefly describe what your business offers (i.e., the product lines or services)

• Mention your business entity (e.g., sole proprietorship or limited liability company)

• Include information about your company’s team members or history (if applicable)

This section shouldn’t be too detailed. Instead, focus on high-level information to lay the foundation for the rest of the strategic plan.

2. Problem statement

Your problem statement is a short explanation of what your customers struggle with. It defines the pain point your company solves and helps readers understand why your business model is necessary.

A strong problem statement answers, “What problem does your target market face that needs solving?”

For example, GreenTech Solutions’ problem statement could be:

What to include in your problem statement:

• Identify the primary problem your target market faces

• Explain why solving this problem is essential (i.e., the consequences of not doing so)

To make this section compelling, focus on the urgency of solving your customers’ pain points.

3. Target market

The target market section describes your company’s ideal customers, their characteristics and specific market niche.

Knowing your target market helps you tailor your product or service to meet the needs of customers most likely to purchase your offering. It also enables you to craft more effective marketing strategies.

A strong target market section answers, “Who are your ideal customers, and what specific groups do you aim to serve?”

For example, GreenTech Solutions’ target market section may be:

What to include in your target market section:

• Define your ideal customer segments by demographics, location or behavior

• Highlight the pain points or needs your product addresses for these groups

Keep this section narrow to ensure you’re not trying to serve everyone. Instead, focus on those who find the most value in your offer.

4. Solution

Your solution clearly explains how your product or service solves the issue in your problem statement. It’s where you begin to demonstrate to readers why your offering is the best choice.

A robust solution answers the question, “What is your product or service, and how does it specifically address the problem?”

For example, GreenTech Solutions’ solution may be:

What to include in your solution:

• Describe your product or service in clear terms

• Connect how it directly solves the problem mentioned in the previous section

• Highlight crucial features that make your solution effective

When crafting your solution statement, highlight how your offering resolves your target market’s primary challenges.

5. Value proposition

Your value proposition is a clear statement of your solution’s unique benefits. It emphasizes why you’re the best fit to address the problem and what distinguishes you from competitors.

Here’s how this section fits into your problem statement and solution:

• Your “problem statement” sets up the issue

• Your “solution” explains the mechanics of how you solve that issue

• Your “value proposition” conveys the benefits customers experience from using your unique solution

A strong value proposition answers the crucial question, “Why should customers choose you over others?”

For example, GreenTech Solutions’ value proposition may be:

What to include in your value proposition:

• Identify your product or service’s unique benefit

• Explain how it solves a specific problem or need

• Highlight what sets your company or product apart

A strong value proposition drives customer interest and sets the foundation for your sales and marketing strategies.

6. Revenue model

Your revenue model outlines how your business makes money (e.g., pricing, sales channels and monetization strategies). This financial plan snapshot is critical for readers to understand how you’ll become profitable and sustain it.

A strong revenue model answers, “How will your business make money and stay profitable?”

For example, GreenTech Solutions’ revenue model may be:

What to include in your revenue model:

• Define your pricing model (e.g., subscription or one-time sales)

• List your primary sales channels (e.g., online, retail or partnerships)

• Briefly explain your monetization strategy

To make your revenue model work, you need a system that organizes sales and maximizes efficiency.

A reliable customer relationship management (CRM) tool provides insights into your sales pipeline, allowing you to forecast revenue and ensure your team stays aligned with your growth strategy.

For example, Pipedrive’s customizable pipelines and transparent team reporting help you design structured and adaptable sales models, making it easier to track opportunities, optimize processes and align your team to meet revenue goals.

A CRM simplifies sales processes, allowing smaller businesses to focus on scaling without overcomplicating operations. This transparency is crucial when developing a revenue model. It helps identify key opportunities, track progress and make data-driven decisions that support sustainable growth.

You can monitor key metrics in real time with a CRM’s customizable dashboards and centralized insights. This visibility helps you adjust your revenue model based on what’s driving success, allowing you to refine strategies and optimize as you go.

7. Go-to-market strategy

Your go-to-market strategy briefly describes how your company plans to reach your target market and attract potential customers. It outlines sales and marketing plans, distribution channels, partnerships and outreach methods.

Your explanation shows how you’ll turn your business idea into a real market presence by reaching and acquiring customers.

A robust go-to-market strategy answers the question, “How will you effectively reach and win over your target customers?”

For example, GreenTech Solutions’ go-to-market strategy could be:

What to include in your go-to-market strategy:

• Outline your marketing approach (e.g., social media and partnerships)

• Specify how you’ll acquire customers (e.g., direct sales and inbound marketing)

• Highlight vital tactics you’ll use to attract attention

Your explanation should clarify the steps your business will take to build brand awareness, generate leads and ultimately convert them into paying customers.

8. Key metrics

Your key metrics are the most critical numbers that measure business success (e.g., customer lifetime value, conversion rates and revenue targets).

These figures help you adjust your strategies by revealing trends and areas for improvement to ensure continued growth and profitability.

Your key metrics should answer the question, “What measurable indicators will show that your business is on track for success?”

For example, GreenTech Solutions’ key metrics may be:

What to include in your key metrics section:

• Identify the metrics that directly align with business success

• Keep it focused on the most critical key performance indicators (KPIs) that impact your growth

To keep your plan on track, focus on measurable metrics that guide decision-making and show progress toward your goals.

For example, Pipedrive’s insights and reports feature tracks metrics like projected revenue or lead conversion rate.

Use these numbers to refine your revenue model, forecast growth and adjust strategies for more accurate and actionable business plans.

9. Unfair advantage

Your unfair advantage (e.g., intellectual property, exclusive partnerships or specialized expertise) sets your company apart.

This section highlights your unique strengths and why your business can succeed in a competitive marketplace.

Your unfair advantage should answer the question, “What unique strengths give you an edge over competitors that they can’t easily replicate?”

For example, GreenTech Solutions’ unfair advantages may be:

What to include in your unfair advantage:

• Identify any exclusive assets or partnerships that give you a competitive edge

• Highlight any business element that makes you hard to replicate

To define your unfair advantage, focus on what makes your business stand out and strengthens your long-term market position.

4 top tips for an effective business plan

Creating a business plan sets your company up for success with a clear, applicable strategy.

Here are four practical tips for making your plan more compelling, whether you’re guiding your new team’s efforts or planning for sustainable growth.

1. Stick to clear, concise summaries

Keep each section of your business plan short and to the point. Avoid lengthy explanations and focus instead on core ideas.

Succinct summaries help readers quickly understand your goals and strategies, keeping them engaged and increasing the likelihood of buy-in.

For example, instead of saying:

You could say:

Here’s how to create a business plan that’s both clear and concise:

• Use bullet points to break down complex ideas

• Eliminate jargon and keep your language simple

• Highlight core facts or actions in each section

Keep your business plan brief and focused to make it easily digestible and more actionable for readers.

2. Always keep the customer at the center

Your target customers’ needs and desires should guide every decision and strategy in your plan. A customer-centric approach means your product, marketing and service strategies are more likely to resonate with your audience – leading to stronger engagement and retention.

For instance, your target customer is a small business owner looking for more affordable digital marketing tools. Your plan might include a low-cost subscription model with essential features that solve their immediate needs.

Here’s how to develop a business plan that keeps your customer at the center:

• Use buyer personas to understand each audience segment’s wants and needs

• Include customer pain points and how your business uniquely solves them

• Regularly gather feedback to understand people’s preferences and tweak your strategy accordingly

Having customer needs at the heart of your plan ensures your business stays relevant and offers lasting value.

3. Highlight your competitive edge

Showcase what makes your business different from competitors, such as unique technology, expertise or exclusive partnerships.

Investors and stakeholders want to know why your business will succeed in a crowded market. A solid competitive edge can be a deciding factor.

Let’s say your company has developed proprietary AI-driven software that cuts logistics costs by 20%. Including this information in your plan indicates a clear advantage over others.

You can highlight your competitive advantage by:

• Identifying one or two aspects of your business that competitors can’t easily replicate

• Highlighting these points throughout your plan (not just your value proposition and solution sections)

• Backing up claims with data or case studies, if possible

By showcasing your unique strengths, you demonstrate how you’ve positioned your business for success and how it will stand out in a crowded marketplace.

4. Keep your plan flexible to adapt to market feedback

Be open to modifying your business plan based on customer feedback, market trends or new challenges.

Flexibility allows your business to pivot and stay relevant as the market changes. Rigid plans can limit growth and make it harder to respond to unexpected setbacks.

If customer surveys show demand for a mobile app version of your product, be prepared to update your plan to include this feature, even if it wasn’t part of your original roadmap.

Here’s how to keep your business plan flexible:

• Actively listen to customer and market feedback

• Set up regular reviews of your business plan to assess its relevance

• Update your business goals, metrics and strategies based on what’s working and what isn’t

Periodically revisiting and adjusting your plan ensures your company stays aligned with real-world conditions and continues to grow.

Business plan FAQs

Final thoughts

While traditional plans are more comprehensive, lean business plans are highly effective for startups and growing companies because they’re simple, flexible and focus on what matters most.

A centralized CRM system provides valuable insights that contribute to building a more comprehensive business plan as you scale.

Try Pipedrive’s CRM free for 14 days to track leads, streamline your sales process and create a clear roadmap for future growth.