Having a good idea is only the first step. What truly makes the difference between a project that takes off and one that gets stuck along the way is a solid business plan, well-structured and realistic. At Business in Spain, we know how important it is to stay grounded before investing time, energy, and money.

That’s why today we’re going to explain how to create a business plan step by step in a clear and practical way, adapted to the reality of the Spanish market. No unnecessary technical jargon, but with all the depth you need to make sure you don’t miss anything.

What is a business plan and why is it essential for your project?

Definition and objectives of a business plan

A business plan (or business project plan, meaning the same thing) is a document that describes your project, your goals, your strategy, and how you plan to achieve them. It is like a roadmap that guides your decisions, helps you anticipate problems, and proves the feasibility of your idea to third parties: investors, banks, partners, etc.

The goal is not just to convince others, but also to convince yourself that the project makes sense, that you understand your market, and that you can manage it wisely.

Benefits of having a strategic roadmap before launching

• It forces you to thoroughly think through your business model, your costs, your revenue, and your weaknesses.
• Prevents improvisation when the first obstacles appear.
• Makes it easier to secure funding or partners, because it conveys clarity and professionalism.
• And most importantly, it gives you focus. You know where you’re going, why, and how you’re going to get there.

In short: it’s not just a document, it’s your business compass.

When is the right time to create your business plan?

Starting from scratch: initial project phases

If you are starting from zero, the plan should be created before officially launching your business. This is when you define the what, the how, and the how much. You analyze the competition, calculate costs, set prices, channels, and strategy.

Don’t worry if you don’t have perfect data. What matters is thinking critically and planning realistically, even if you later make adjustments along the way.

Expansion or reinvention: when to update your plan

A business plan is not done only once. If you already have a company and are thinking of expanding, diversifying, or going international, updating the plan is essential. The same applies if you notice market changes or if something isn’t working as expected.

Think of a good business plan as a living document, not a PDF forgotten on your desktop.

Essential elements your strategic document must include

Let’s get to the point: these are the key sections that every business plan must include to be complete and professional.

Executive summary: capturing attention from the first glance

This section is written last but placed at the beginning. It summarizes the essentials: the idea, objectives, audience, investment, and forecasts. It is the first thing investors or institutions will read, so it must be clear, concise, and compelling.

Company description, mission, and vision

Here you explain who you are, what you do, and why you do it. This is not just a formality: your mission reflects your current purpose, while your vision expresses the desired future. If you also define your values, even better.

Market and competition analysis

Probably the most important section. You need to understand existing demand, customer behavior, and what competitors are doing. Use real data, reliable sources, and your own conclusions.

Tip: don’t just copy reports. Interpret the data and explain how you will position yourself differently.

Product or service: value proposition and differentiation

Your value proposition is what makes you unique. Why should customers choose you over someone else? Define what problem you solve, how you solve it, and what specific benefits you offer.

Marketing strategy and customer acquisition model

Here you explain how you will become known, attract customers, and retain them. Include channels (social media, advertising, SEO, email marketing…), key messages, and an estimated budget.

Organization, team, and legal structure

List team members, roles, skills, and experience. Also include the company’s legal structure (self-employed, limited company, etc.), since this affects taxes and obligations.

Financial projections, investments, and funding sources

This is the most technical part: revenue forecasts, expenses, break-even point, and expected profitability. Also include your funding sources: personal savings, loans, business angels, or public grants.

If done realistically, it will convey trust and professionalism.

Step by step: how to write your business plan in an organized way

Preparation: research and data collection

Before writing anything, take time to research the market, competitors, and your target audience. Do not improvise. The stronger the foundation, the more coherent the plan will be.

Writing each section: practical tips

• Start with the section you feel most confident about.
• Be concise: avoid empty or grandiose statements.
• Use data and examples.
• Pay attention to visual design: titles, tables, and graphs help a lot.

And remember: it doesn’t need to be perfect the first time — what matters is getting started.

Traditional formats vs. agile or condensed approaches

Nowadays, not all business plans are 50 pages long. Many entrepreneurs use leaner versions that summarize key information in one or two pages (for example, with a Business Model Canvas).

The key is not the length, but clarity.

Useful tools and templates to structure your plan

Ready-to-use templates and downloadable documents

There are many free business plan templates you can adapt. Templates from organizations such as the Official Credit Institute (ICO) or the Chambers of Commerce are very complete and editable.

Software and resources to facilitate management and follow-up

You can also use tools like Notion, Trello, or Google Workspace to organize tasks, or specific software like LivePlan to generate automated financial projections.

On Business in Spain, you can also find personalized consulting if you need guidance or validation before presenting your plan.

Common mistakes to avoid when developing your strategy

Lack of market research

A classic mistake: thinking you know your customer “because you just do.” No — you must verify with real data.

Underestimating costs or overestimating revenue

Another common issue: too much optimism. It’s better to be conservative and be pleasantly surprised than the opposite.

Not updating the plan when circumstances change

An outdated business plan quickly loses its value. It should be reviewed periodically, especially when there are economic or technological changes.

How to present your plan to investors, partners, or financial institutions

What funders look for: key elements

Investors look for viability, profitability, and confidence. Your plan must show that you have done your homework, that the team is competent, and that a market exists.

How to adapt the plan to the right audience

Don’t present the same document to everyone. Adapt the content: if it’s for a bank, emphasize financial solvency; if it’s for a partner, highlight the growth opportunity; if it’s for an investor, show expected return.

Keeping your plan alive: review, tracking, and pivoting

Performance indicators (KPIs) and success metrics

Define concrete metrics to measure progress: sales, gross margin, customer acquisition, etc.

When and how to update your business strategy

Review it at least once a year, or whenever significant deviations occur. A living plan enables timely reactions.

Conclusion: turn your idea into action with a solid business plan

Creating a business plan is not a bureaucratic formality — it is an act of responsibility toward yourself and your project. It is the way to transform a nice idea into a solid and sustainable company.

Take the time you need, ask for help if necessary, and keep an open mind to adjust the course when needed.

And if you’re looking for support to take your idea to the next level, we invite you to discover Business in Spain: your ally in buying, selling, advising, and growing businesses in Spain.