Sapna has completed a Bachelor of Arts/Laws. Since graduating, she's worked primarily in the field of legal research and writing, and she now writes for Sprintlaw.
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Ready to turn your idea into a real business? A clear, practical business plan is your roadmap - helping you test your idea, set goals, attract funding and avoid nasty surprises.
Even if you’re not a “planner” by nature, writing a business plan doesn’t need to be overwhelming. If you break it into simple sections and focus on what matters, you’ll create a document that guides your daily decisions and keeps your business compliant with Australian laws from day one.
In this guide, we’ll walk you through how to start writing a business plan in Australia, what to include, and the key legal pieces to factor in as you go. By the end, you’ll have a structure you can follow - and the confidence to get your plan on paper.
What Is A Business Plan (And Why Does It Matter)?
A business plan is a short, structured document that explains what your business will do, who it’s for, how it’ll make money and how you’ll manage risks. Think of it as a practical blueprint, not an academic exercise.
For new founders, a business plan helps you validate your idea, compare options and prioritise where to spend time and money. If you’re seeking investment or finance, lenders and investors will expect to see one.
Just as importantly, a strong plan includes your compliance and legal strategy - how you’ll set up the right structure, protect your brand, deal with customers fairly and put solid contracts in place. This isn’t “extra”; it’s core to running a business well in Australia.
How To Start Your Business Plan: A Simple Structure
Start short and simple. You can build detail later. A common, effective structure looks like this:
- Executive Summary: A one-page overview of your business, customers, offer and goals.
- Market & Customers: Who your ideal customers are, what they need and how you’ll reach them.
- Products/Services: What you’ll sell, how it solves the problem and your pricing model.
- Go-To-Market: Sales channels, marketing activities, and customer experience.
- Operations: Day-to-day delivery, suppliers, tech stack, premises and logistics.
- People: Founders, roles, advisors and hiring plans.
- Legal & Risk: Structure, registrations, contracts, IP, privacy and compliance.
- Financials: Startup costs, revenue assumptions, cash flow and breakeven.
- Milestones & Timeline: Your next 6-12 months, broken into achievable steps.
Don’t worry if you can’t fill every section perfectly on day one. The goal is progress, not perfection. Add what you know now, highlight assumptions, then tighten your plan as you test and learn.
Step-By-Step: Draft Each Section With Confidence
1) Executive Summary
Write this last. It’s a plain-English snapshot of the whole plan - your mission, the problem you solve, your target market, your offer and what success looks like in the first year.
2) Market And Customers
Start with the problem you’re solving and for whom. Describe your ideal customer segments and their key pain points.
Then look at the market size and trends. Who are your main competitors? What makes you different (price, speed, quality, convenience, niche expertise)?
Outline how you’ll acquire customers - locally, online, via partners or a mix - and how much it will cost to win and keep them.
3) Products, Services And Pricing
List what you’ll sell and how it delivers value. If you offer packages or tiers, spell them out. Explain your pricing strategy (cost-plus, competitor-based or value-based) and any introductory offers.
If your business involves original branding or product design, note that you may wish to register your trade mark to protect your name and logo as your brand grows.
4) Go-To-Market Strategy
How will customers discover, try and buy your offer? Map your key channels (e.g. website, retail, marketplaces, distributors), your marketing plan (content, ads, partnerships, events) and your sales process.
If you’ll sell from a website or app, factor in having clear Website Terms of Use to set rules for visitors and manage risk online.
5) Operations And Suppliers
Outline where you’ll work (home office, shared space or leased premises), key suppliers and any critical tools or platforms. Note lead times, inventory needs, delivery partners and service-level expectations.
This is also where you flag essential contracts with suppliers and customers - for example, your Terms of Trade for invoicing, delivery and payment, and any distribution or service agreements you’ll rely on.
6) People And Roles
Note who’s doing what, even if it’s just you at the start. If you’ll hire staff or engage contractors, plan for proper onboarding, training and compliant contracts.
At minimum, you should put in place a suitable Employment Contract and basic workplace policies when you bring employees on. If you’re using contractors, consider a clear services agreement that sets deliverables and IP ownership.
7) Legal And Risk
This is where your plan doubles as a compliance checklist. At a minimum, consider:
- Business Structure: Will you operate as a sole trader, partnership or company? Many founders choose a company for limited liability and credibility - if that’s you, plan your company set up, governance and ownership details early.
- Registrations: ABN, GST (if required), and business name. If trading under a name that’s not your personal or company name, include a note to register your business name.
- Consumer Law: If you sell to consumers, ensure your marketing, pricing and refunds align with the Australian Consumer Law. Plan how you’ll handle guarantees, complaints and product claims.
- Privacy & Data: If you collect customer data (most businesses do), budget for a compliant Privacy Policy and privacy processes.
- Contracts: Identify the key agreements you’ll need for customers, suppliers, staff and partners. If you’re discussing sensitive information with third parties during development, line up a Non-Disclosure Agreement (NDA).
- Intellectual Property (IP): Work out what you own (brand, content, software, designs) and how you’ll protect it, including trade marks.
- Licences & Permits: Note any industry-specific approvals or council permits your operations require.
Flagging these items in your plan makes it far easier to budget properly and launch without delays.
8) Financials And Metrics
Start with a simple spreadsheet covering startup costs (equipment, subscriptions, marketing, legal), monthly operating costs and revenue assumptions. A 12-18 month cash flow forecast helps you spot gaps early.
Keep your assumptions realistic. Consider a “base case” and a “conservative case” so you know your breakeven point. Include a short list of core metrics you’ll track (e.g. leads, conversion rate, gross margin, monthly recurring revenue) and how you’ll report on them.
9) Milestones And Timeline
Turn your plan into action with a timeline of the next 6-12 months. Choose 3-5 milestones that matter (first sale, website launch, 100th customer, first hire) and attach owners and due dates.
Make sure your legal and compliance tasks are scheduled, not left as a “later” list. For example, set a date for your business name application, trade mark decision and customer contract rollout.
Choosing A Structure: Sole Trader, Partnership Or Company?
Your business structure influences your tax, risk and how you can raise capital. Here’s a quick overview to help you decide what to map into your plan:
- Sole Trader: Simple and low-cost to start. You control everything, but you’re personally liable for business debts.
- Partnership: Two or more people operating together, sharing profits and responsibilities. Still exposes partners to personal liability unless you use a company structure.
- Company: A separate legal entity with limited liability. More setup and ongoing obligations, but often preferred for growth, investment and liability protection.
If you opt for a company, your plan should note how shares are split, key decision-making rules and whether you’ll adopt a Company Constitution. If there are multiple founders, it’s also wise to include a timeline for implementing a Shareholders Agreement to lock in roles, vesting, dispute resolution and exit rules.
Legal And Compliance Items To Include In Your Plan
Embedding legal items within your business plan isn’t just good hygiene - it’s practical risk management. Here are the most common pieces to map and budget for:
- Customer Terms: Clear terms for your product or service covering scope, pricing, delivery and liability. If you trade online, your plan should allow for Website Terms of Use (and, for online stores, eCommerce terms addressing checkout and returns).
- Supplier And Partner Contracts: Agreements that lock in deliverables, timeframes, pricing and IP ownership with key suppliers.
- Privacy & Data: A Privacy Policy, clear consent/collection notices and internal processes for handling personal information.
- Employment & Contractors: The right Employment Contract for staff, or a contractor agreement if you engage independent contractors. Add basic policies (workplace conduct, leave and safety) to your plan.
- Commercial Terms: Your standard Terms of Trade for B2B transactions, including payment terms, late fees and warranties.
- Intellectual Property: Steps for brand protection (e.g. trade mark registration) and a process to ensure you don’t infringe someone else’s IP.
- Pre-Launch Confidentiality: An NDA to protect your concept, financials and other sensitive information when speaking with potential partners or early hires.
You won’t necessarily need all of these from day one, but noting them in your plan helps you stage the rollout and budget sensibly.
Practical Tips To Keep Your Plan Useful (Not Dusty)
Keep It Short On Day One
A 5-10 page plan is plenty to start. You can add detail as you validate your assumptions and learn from customers.
Write Like You Speak
Use plain English and short sentences. Your plan is a working document for you and your team - it should be clear, not clever.
Document Assumptions
Be explicit about what you’re assuming (conversion rate, cost per lead, average order value). This makes it easier to update your model when reality bites.
Schedule Legal Tasks Early
Don’t leave structure, contracts and brand protection until after you launch. Build them into your timeline alongside product and marketing tasks so nothing slips.
Make Compliance Part Of Operations
Treat your legal obligations like any other process: assign an owner, set reminders and track renewals. For example, plan how you’ll meet your obligations under the Australian Consumer Law when handling refunds and advertising.
Use Checklists
Create short checklists for onboarding a supplier, bringing on a new team member or launching a new product line. Each checklist can reference the relevant contract or policy.
Common Mistakes When Writing A Business Plan (And How To Avoid Them)
- Trying To Make It Perfect: Aim for useful, not perfect. Get a working draft down fast, then iterate.
- Ignoring Legal Basics: Skipping structure decisions, contracts or privacy planning can lead to costly delays. Include a simple legal checklist in your plan.
- Over-Optimistic Financials: Model a conservative case and a realistic base case. Cash flow is king in the first 12 months.
- Vague Target Market: “Everyone” is not a target market. Focus your positioning and channels to match a clear customer segment.
- No Milestones: Goals without dates tend to drift. Add specific milestones and owners.
- Leaving Brand Protection Late: If your name or logo matters, plan early for trade mark protection to avoid rebranding later.
Key Takeaways
- Start simple: a short, structured business plan helps you test assumptions, set goals and stay compliant in Australia.
- Map your market, offer, pricing, go-to-market, operations, people, finances and a 6-12 month timeline of milestones.
- Build legal and risk into your plan early - structure, registrations, contracts, privacy, consumer law and IP protection.
- If you’re forming a company, plan for governance documents like a Company Constitution and a Shareholders Agreement where there are multiple founders.
- Budget for core documents such as Website Terms of Use, Terms of Trade, an Employment Contract and a Privacy Policy as you scale.
- Keep the plan live: revisit assumptions, track metrics and schedule legal tasks alongside product and marketing work.
If you’d like a consultation on starting your business plan and setting up the legal foundations the right way, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.