Should Business Plans Be Written in Third Person

Everyone · Explainer · Updated October 1, 2026 · LearnLife Editorial

What Is a Business Plan and Why Does Writing Perspective Matter?

A business plan is a formal document that describes the goals of a business, the strategies to achieve them, the market it serves, and the financial outlook. It serves as both a guide for business development and a tool to communicate the business’s potential to others. The writing perspective—whether first person (“I/we”) or third person (“the company”)—affects how the plan is perceived. Writing in third person clearly separates the business from the individual entrepreneur, giving the impression of a distinct, professional entity. This helps readers take the plan seriously, especially people unfamiliar with the business owner. First person, by contrast, can make the plan feel personal and informal. Choosing the right perspective affects the tone and clarity of the business’s presentation.

How Does Writing a Business Plan in Third Person Work? A Detailed Example

Imagine a startup called “CleanTech Innovations,” which will produce eco-friendly cleaning supplies. In third person, the plan states: “CleanTech Innovations will target environmentally conscious consumers in urban markets by offering biodegradable cleaning products.” This wording focuses on the company and its offerings rather than the individuals behind it. Alternatively, a first person version might say: “We will develop biodegradable cleaning products for environmentally aware city residents.” While both communicate the same intent, the third person version sounds more professional and neutral, which is preferred when presenting to banks or investors. This style avoids personal pronouns and emotional language, keeping the focus on facts, goals, and market opportunity.

Why Does Writing in Third Person Matter for Your Business Plan?

Using third person matters because it helps establish professionalism and credibility. It presents the business as an independent organization rather than a personal project. For example, instead of writing “I believe this product will sell well,” third person wording would say, “Market analysis shows demand for this product.” This factual, objective tone reassures readers that the business plan is based on research and realistic projections. It is especially important for young entrepreneurs who may not yet have a business history to back their claims. The third person voice also helps maintain a consistent, clear tone throughout the document, which makes the plan easier to read and understand.

When Is Using First Person Appropriate in a Business Plan?

First person writing may be more suitable when the plan’s audience is internal, such as team members or mentors, because it can create a sense of shared ownership and enthusiasm. For example, “We are committed to delivering quality products that reflect our values” sounds personal and motivating. First person can also be appropriate in the cover letter or executive summary to express passion and vision directly. However, for formal presentations to lenders, investors, or external partners, first person tends to sound less objective and professional. A good approach is to use third person for the main sections of the plan and reserve first person for personal introductions or summaries.

What Are Common Mistakes and Confusions About Writing Style in Business Plans?

A common mistake is mixing first and third person throughout the plan, which can confuse readers and weaken professionalism. Another misunderstanding is assuming that first person is always informal or third person is always stiff; tone depends more on language choice than pronouns. Some entrepreneurs also confuse the tone of a business plan with that of marketing materials, which often use friendly, personal language. Remember that a business plan’s purpose is to present facts, strategies, and projections clearly and consistently. To avoid errors, choose one perspective—usually third person—and apply it consistently throughout the document.

How Can You Decide Which Perspective to Use in Your Business Plan?

To select the right writing perspective, consider your audience and the plan’s purpose. Ask yourself whether the plan will be shared mostly with external parties like banks or investors, or used internally by your team. Third person is generally best for formal external documents because it sounds professional and objective. For internal or informal discussions, first person may be more engaging. Reviewing sample plans in your industry can provide helpful examples of what is typical. Drafting key sections in both voices and reading them aloud can help you judge which style presents your business most clearly and confidently.

What Are Practical Steps to Write Your Business Plan in Third Person?

1. Structure your plan clearly: Include sections such as Executive Summary, Company Overview, Market Analysis, Marketing and Sales Strategy, Operations Plan, Financial Plan, and Funding Request.
2. Use neutral subjects: Replace “I,” “we,” or “our” with the company’s name or “the business.” For example, write “The business will expand its product line” instead of “We will expand our product line.”
3. Keep language objective: Use phrases like “The market shows opportunity for...” or “Financial projections estimate...” rather than “We believe...”
4. Avoid personal opinions: Stick to data, facts, and verifiable assumptions.
5. Maintain consistency: Review your draft carefully and use search tools to find and replace personal pronouns.
6. Get feedback: Ask trusted advisors to read your plan and point out any shifts in tone or perspective.
7. Use templates: Business plan templates often guide tone and phrasing suitable for third person writing.

By following these steps, your plan will read as professional, clear, and credible.

What Should You Do Next After Writing Your Business Plan?

Once your business plan is written in a consistent third person style, review it thoroughly for clarity and completeness. Make sure all sections address your audience’s likely questions and concerns. Keep the plan updated to reflect changes in your business environment or strategy. Share drafts with mentors, business advisors, or local small business centers for feedback. If writing is difficult, consider professional help to refine tone and structure. Finally, prepare multiple copies in both print and digital forms so you can confidently present your plan when opportunities arise.

Frequently asked questions

Can I mix first and third person in a business plan?

It is best to avoid mixing perspectives within sections. However, using first person in the cover letter or executive summary and third person in the main body can work, provided each section remains consistent.

Does third person sound too distant or impersonal in a business plan?

Third person maintains a professional tone but can still be warm and confident by using clear, positive language that focuses on the business’s strengths and plans.

How do I ensure my business plan consistently uses third person?

After writing, use your word processor’s search function to find personal pronouns and replace them. Reading aloud or having others review your document can also help catch inconsistencies.

Can a business plan be written entirely in first person?

For internal use or informal plans, yes. But for formal presentations to investors or lenders, third person is generally preferred for professionalism and clarity.

Is it worthwhile to hire a professional to write my business plan?

Yes. Professionals can ensure your plan has the appropriate tone and structure, saving time and improving quality, especially if you are unsure about writing style or business terminology.