How to write a business plan

What this book actually teaches

How to Write a Business Plan by Mike P. McKeever is NOLO's long-running guide to building a business plan that serves two distinct purposes: securing financing from lenders and investors, and stress-testing the business idea itself before committing capital and time. McKeever's central argument is that most entrepreneurs approach the business plan as a sales document — something written to persuade outsiders — when the more important function is forcing the founder to answer the hard questions that determine whether the business is viable at all. A plan that survives rigorous self-scrutiny is more persuasive to investors than one that glosses over risks with optimistic projections.

The book's opening chapters focus on the financial projections that sit at the core of any credible business plan. McKeever walks through the construction of a sales forecast, a profit and loss projection, and a cash flow statement in sequence, explaining not just the mechanics of building each spreadsheet but the logic behind the assumptions that drive them. This is the book's real strength: McKeever treats financial projection as reasoning under uncertainty rather than number-filling, and he pushes readers to identify the key assumptions driving their forecasts and stress-test each one. A sales forecast built on an explicit assumption about market penetration rate is defensible; a forecast that projects revenue by multiplying an arbitrary market-size estimate by a percentage is not.

The break-even analysis chapter is one of the most practically useful sections. McKeever explains how to calculate the sales volume at which the business covers its fixed costs, why this number matters more to lenders than most other projections, and how to present it clearly. For businesses that require financing, the book covers what lenders and investors are actually looking for: not certainty about future revenue, but evidence that the founder understands the business's cost structure, can identify the conditions under which the business succeeds, and has a realistic plan for managing cash in the startup phase when sales are lower than projections.

The narrative sections — market analysis, competitive analysis, management team description, and operational plan — receive structured treatment. McKeever provides chapter-level frameworks for each section and explains what readers of business plans look for and skip. The competitive analysis guidance is particularly useful: rather than the common approach of listing competitors and asserting that the new business is better, McKeever explains how to map competitor positioning and identify the specific gap the new business occupies.

NOLO updates the book periodically, and later editions include guidance on digital businesses, e-commerce models, and platforms alongside the traditional product and service business templates.

For entrepreneurs preparing to seek a small business loan, SBA financing, or early-stage investment — and for founders who want to validate a business idea before committing significant resources — this guide covers the full plan structure with the financial rigor that lenders actually apply.

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About Mike P Mckeever

Read more from Mike P Mckeever and explore the full bibliography on ClearValue Books.