The Importance of Developing a Business Plan
Scottsdale continues to offer strong opportunities for entrepreneurs and experienced business owners alike. If you’re looking to buy a profitable business, one of the smartest steps you can take is developing a business plan before making a commitment.
Although writing a business plan is often seen as a startup task, it’s just as critical when you're buying an established business. A well-prepared plan gives you a clear picture of the company’s strengths, weaknesses, market position, and how it fits with your long-term goals.
Whether this is your first acquisition or you’ve purchased several businesses, understanding how to develop a business plan can give you a clear edge when evaluating a business for sale.
What Goes into a Business Plan?
Developing a business plan when buying an existing business looks different than starting one from scratch. You can analyze real numbers, operational systems, and customer behavior. Writing a business plan for an existing business adds credibility and focus during investor presentations because your projections are based on historical data.
Here are key business plan components to include:
Executive Summary. A brief overview of the business, the opportunity, and what the plan covers.
Company Description. Include the business history, product or service overview, customer base, mission, values, and key differentiators. Note why the business is for sale and what’s included in the purchase.
Market Analysis. Evaluate industry trends, local market demand, and competitor performance. Look at where the business fits in the current market and how it could grow.
Due Diligence Summary. Include major findings from your due diligence process. This section should highlight strengths and risks, a realistic SWOT analysis, and how you plan to address any weaknesses post-purchase.
6 Keys to Developing a Business Plan to Buy a Business
Taking the time to write a focused business plan helps you uncover hidden risks and spot growth opportunities before you invest. Explore six keys in how to develop a business plan.
Start with the Seller’s Business Plan (if available). Use it as a baseline but adapt it to reflect your vision and strategy moving forward.
Conduct Thorough Due Diligence. The quality of your plan depends on the quality of your research. Work with a trusted accountant and attorney to verify financials, contracts, and operational claims.
Be Conservative with Projections. When presenting to investors, it’s better to be realistic and exceed expectations than to overpromise.
Clarify Why This Business Fits. Why are you the right buyer? Why will you succeed? This helps shape your strategy and strengthens your pitch to lenders or investors.
Tailor the Plan to Your Audience. Lenders prioritize financial viability and repayment. Investors will look at scalability and returns. Adjust your tone and emphasis accordingly.
Plan for Post-Purchase Integration. Include steps for onboarding, leadership transition, retaining staff, and maintaining customer relationships.
Keeping Your Business Plan Updated
If you want to sell your business in Scottsdale, updating your business plan can improve your valuation and help buyers better understand your operations. Highlight your current goals, financial performance, and any upcoming opportunities. A clear, updated plan makes your business more attractive to buyers and may support a higher asking price.
Business Brokers of Arizona is Here for You
Your business plan is a powerful decision-making tool, and your business broker is a game-changing asset. At Business Brokers of Arizona, we help entrepreneurs buy profitable businesses and plan for long-term success.
Whether you’re buying or selling a business, our team provides expert guidance, accurate business valuation appraisal, and access to high-quality businesses for sale in Scottsdale and the surrounding area.
We believe that smart planning leads to smart decisions. If you're ready to move forward with your next business, contact Business Brokers of Arizona today to get started.