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How to Write a Business Plan, Step by Step

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Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

What is a business plan?

1. write an executive summary, 2. describe your company, 3. state your business goals, 4. describe your products and services, 5. do your market research, 6. outline your marketing and sales plan, 7. perform a business financial analysis, 8. make financial projections, 9. summarize how your company operates, 10. add any additional information to an appendix, business plan tips and resources.

A business plan outlines your business’s financial goals and explains how you’ll achieve them over the next three to five years. Here’s a step-by-step guide to writing a business plan that will offer a strong, detailed road map for your business.

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ZenBusiness

A business plan is a document that explains what your business does, how it makes money and who its customers are. Internally, writing a business plan should help you clarify your vision and organize your operations. Externally, you can share it with potential lenders and investors to show them you’re on the right track.

Business plans are living documents; it’s OK for them to change over time. Startups may update their business plans often as they figure out who their customers are and what products and services fit them best. Mature companies might only revisit their business plan every few years. Regardless of your business’s age, brush up this document before you apply for a business loan .

» Need help writing? Learn about the best business plan software .

This is your elevator pitch. It should include a mission statement, a brief description of the products or services your business offers and a broad summary of your financial growth plans.

Though the executive summary is the first thing your investors will read, it can be easier to write it last. That way, you can highlight information you’ve identified while writing other sections that go into more detail.

» MORE: How to write an executive summary in 6 steps

Next up is your company description. This should contain basic information like:

Your business’s registered name.

Address of your business location .

Names of key people in the business. Make sure to highlight unique skills or technical expertise among members of your team.

Your company description should also define your business structure — such as a sole proprietorship, partnership or corporation — and include the percent ownership that each owner has and the extent of each owner’s involvement in the company.

Lastly, write a little about the history of your company and the nature of your business now. This prepares the reader to learn about your goals in the next section.

» MORE: How to write a company overview for a business plan

who should prepare a business plan

The third part of a business plan is an objective statement. This section spells out what you’d like to accomplish, both in the near term and over the coming years.

If you’re looking for a business loan or outside investment, you can use this section to explain how the financing will help your business grow and how you plan to achieve those growth targets. The key is to provide a clear explanation of the opportunity your business presents to the lender.

For example, if your business is launching a second product line, you might explain how the loan will help your company launch that new product and how much you think sales will increase over the next three years as a result.

» MORE: How to write a successful business plan for a loan

In this section, go into detail about the products or services you offer or plan to offer.

You should include the following:

An explanation of how your product or service works.

The pricing model for your product or service.

The typical customers you serve.

Your supply chain and order fulfillment strategy.

You can also discuss current or pending trademarks and patents associated with your product or service.

Lenders and investors will want to know what sets your product apart from your competition. In your market analysis section , explain who your competitors are. Discuss what they do well, and point out what you can do better. If you’re serving a different or underserved market, explain that.

Here, you can address how you plan to persuade customers to buy your products or services, or how you will develop customer loyalty that will lead to repeat business.

Include details about your sales and distribution strategies, including the costs involved in selling each product .

» MORE: R e a d our complete guide to small business marketing

If you’re a startup, you may not have much information on your business financials yet. However, if you’re an existing business, you’ll want to include income or profit-and-loss statements, a balance sheet that lists your assets and debts, and a cash flow statement that shows how cash comes into and goes out of the company.

Accounting software may be able to generate these reports for you. It may also help you calculate metrics such as:

Net profit margin: the percentage of revenue you keep as net income.

Current ratio: the measurement of your liquidity and ability to repay debts.

Accounts receivable turnover ratio: a measurement of how frequently you collect on receivables per year.

This is a great place to include charts and graphs that make it easy for those reading your plan to understand the financial health of your business.

This is a critical part of your business plan if you’re seeking financing or investors. It outlines how your business will generate enough profit to repay the loan or how you will earn a decent return for investors.

Here, you’ll provide your business’s monthly or quarterly sales, expenses and profit estimates over at least a three-year period — with the future numbers assuming you’ve obtained a new loan.

Accuracy is key, so carefully analyze your past financial statements before giving projections. Your goals may be aggressive, but they should also be realistic.

NerdWallet’s picks for setting up your business finances:

The best business checking accounts .

The best business credit cards .

The best accounting software .

Before the end of your business plan, summarize how your business is structured and outline each team’s responsibilities. This will help your readers understand who performs each of the functions you’ve described above — making and selling your products or services — and how much each of those functions cost.

If any of your employees have exceptional skills, you may want to include their resumes to help explain the competitive advantage they give you.

Finally, attach any supporting information or additional materials that you couldn’t fit in elsewhere. That might include:

Licenses and permits.

Equipment leases.

Bank statements.

Details of your personal and business credit history, if you’re seeking financing.

If the appendix is long, you may want to consider adding a table of contents at the beginning of this section.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Here are some tips to write a detailed, convincing business plan:

Avoid over-optimism: If you’re applying for a business bank loan or professional investment, someone will be reading your business plan closely. Providing unreasonable sales estimates can hurt your chances of approval.

Proofread: Spelling, punctuation and grammatical errors can jump off the page and turn off lenders and prospective investors. If writing and editing aren't your strong suit, you may want to hire a professional business plan writer, copy editor or proofreader.

Use free resources: SCORE is a nonprofit association that offers a large network of volunteer business mentors and experts who can help you write or edit your business plan. The U.S. Small Business Administration’s Small Business Development Centers , which provide free business consulting and help with business plan development, can also be a resource.

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Step-by-Step Guide to Writing a Simple Business Plan

By Joe Weller | October 11, 2021

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A business plan is the cornerstone of any successful company, regardless of size or industry. This step-by-step guide provides information on writing a business plan for organizations at any stage, complete with free templates and expert advice. 

Included on this page, you’ll find a step-by-step guide to writing a business plan and a chart to identify which type of business plan you should write . Plus, find information on how a business plan can help grow a business and expert tips on writing one .

What Is a Business Plan?

A business plan is a document that communicates a company’s goals and ambitions, along with the timeline, finances, and methods needed to achieve them. Additionally, it may include a mission statement and details about the specific products or services offered.

A business plan can highlight varying time periods, depending on the stage of your company and its goals. That said, a typical business plan will include the following benchmarks:

  • Product goals and deadlines for each month
  • Monthly financials for the first two years
  • Profit and loss statements for the first three to five years
  • Balance sheet projections for the first three to five years

Startups, entrepreneurs, and small businesses all create business plans to use as a guide as their new company progresses. Larger organizations may also create (and update) a business plan to keep high-level goals, financials, and timelines in check.

While you certainly need to have a formalized outline of your business’s goals and finances, creating a business plan can also help you determine a company’s viability, its profitability (including when it will first turn a profit), and how much money you will need from investors. In turn, a business plan has functional value as well: Not only does outlining goals help keep you accountable on a timeline, it can also attract investors in and of itself and, therefore, act as an effective strategy for growth.

For more information, visit our comprehensive guide to writing a strategic plan or download free strategic plan templates . This page focuses on for-profit business plans, but you can read our article with nonprofit business plan templates .

Business Plan Steps

The specific information in your business plan will vary, depending on the needs and goals of your venture, but a typical plan includes the following ordered elements:

  • Executive summary
  • Description of business
  • Market analysis
  • Competitive analysis
  • Description of organizational management
  • Description of product or services
  • Marketing plan
  • Sales strategy
  • Funding details (or request for funding)
  • Financial projections

If your plan is particularly long or complicated, consider adding a table of contents or an appendix for reference. For an in-depth description of each step listed above, read “ How to Write a Business Plan Step by Step ” below.

Broadly speaking, your audience includes anyone with a vested interest in your organization. They can include potential and existing investors, as well as customers, internal team members, suppliers, and vendors.

Do I Need a Simple or Detailed Plan?

Your business’s stage and intended audience dictates the level of detail your plan needs. Corporations require a thorough business plan — up to 100 pages. Small businesses or startups should have a concise plan focusing on financials and strategy.

How to Choose the Right Plan for Your Business

In order to identify which type of business plan you need to create, ask: “What do we want the plan to do?” Identify function first, and form will follow.

Use the chart below as a guide for what type of business plan to create:

Is the Order of Your Business Plan Important?

There is no set order for a business plan, with the exception of the executive summary, which should always come first. Beyond that, simply ensure that you organize the plan in a way that makes sense and flows naturally.

The Difference Between Traditional and Lean Business Plans

A traditional business plan follows the standard structure — because these plans encourage detail, they tend to require more work upfront and can run dozens of pages. A Lean business plan is less common and focuses on summarizing critical points for each section. These plans take much less work and typically run one page in length.

In general, you should use a traditional model for a legacy company, a large company, or any business that does not adhere to Lean (or another Agile method ). Use Lean if you expect the company to pivot quickly or if you already employ a Lean strategy with other business operations. Additionally, a Lean business plan can suffice if the document is for internal use only. Stick to a traditional version for investors, as they may be more sensitive to sudden changes or a high degree of built-in flexibility in the plan.

How to Write a Business Plan Step by Step

Writing a strong business plan requires research and attention to detail for each section. Below, you’ll find a 10-step guide to researching and defining each element in the plan.

Step 1: Executive Summary

The executive summary will always be the first section of your business plan. The goal is to answer the following questions:

  • What is the vision and mission of the company?
  • What are the company’s short- and long-term goals?

See our  roundup of executive summary examples and templates for samples. Read our executive summary guide to learn more about writing one.

Step 2: Description of Business

The goal of this section is to define the realm, scope, and intent of your venture. To do so, answer the following questions as clearly and concisely as possible:

  • What business are we in?
  • What does our business do?

Step 3: Market Analysis

In this section, provide evidence that you have surveyed and understand the current marketplace, and that your product or service satisfies a niche in the market. To do so, answer these questions:

  • Who is our customer? 
  • What does that customer value?

Step 4: Competitive Analysis

In many cases, a business plan proposes not a brand-new (or even market-disrupting) venture, but a more competitive version — whether via features, pricing, integrations, etc. — than what is currently available. In this section, answer the following questions to show that your product or service stands to outpace competitors:

  • Who is the competition? 
  • What do they do best? 
  • What is our unique value proposition?

Step 5: Description of Organizational Management

In this section, write an overview of the team members and other key personnel who are integral to success. List roles and responsibilities, and if possible, note the hierarchy or team structure.

Step 6: Description of Products or Services

In this section, clearly define your product or service, as well as all the effort and resources that go into producing it. The strength of your product largely defines the success of your business, so it’s imperative that you take time to test and refine the product before launching into marketing, sales, or funding details.

Questions to answer in this section are as follows:

  • What is the product or service?
  • How do we produce it, and what resources are necessary for production?

Step 7: Marketing Plan

In this section, define the marketing strategy for your product or service. This doesn’t need to be as fleshed out as a full marketing plan , but it should answer basic questions, such as the following:

  • Who is the target market (if different from existing customer base)?
  • What channels will you use to reach your target market?
  • What resources does your marketing strategy require, and do you have access to them?
  • If possible, do you have a rough estimate of timeline and budget?
  • How will you measure success?

Step 8: Sales Plan

Write an overview of the sales strategy, including the priorities of each cycle, steps to achieve these goals, and metrics for success. For the purposes of a business plan, this section does not need to be a comprehensive, in-depth sales plan , but can simply outline the high-level objectives and strategies of your sales efforts. 

Start by answering the following questions:

  • What is the sales strategy?
  • What are the tools and tactics you will use to achieve your goals?
  • What are the potential obstacles, and how will you overcome them?
  • What is the timeline for sales and turning a profit?
  • What are the metrics of success?

Step 9: Funding Details (or Request for Funding)

This section is one of the most critical parts of your business plan, particularly if you are sharing it with investors. You do not need to provide a full financial plan, but you should be able to answer the following questions:

  • How much capital do you currently have? How much capital do you need?
  • How will you grow the team (onboarding, team structure, training and development)?
  • What are your physical needs and constraints (space, equipment, etc.)?

Step 10: Financial Projections

Apart from the fundraising analysis, investors like to see thought-out financial projections for the future. As discussed earlier, depending on the scope and stage of your business, this could be anywhere from one to five years. 

While these projections won’t be exact — and will need to be somewhat flexible — you should be able to gauge the following:

  • How and when will the company first generate a profit?
  • How will the company maintain profit thereafter?

Business Plan Template

Business Plan Template

Download Business Plan Template

Microsoft Excel | Smartsheet

This basic business plan template has space for all the traditional elements: an executive summary, product or service details, target audience, marketing and sales strategies, etc. In the finances sections, input your baseline numbers, and the template will automatically calculate projections for sales forecasting, financial statements, and more.

For templates tailored to more specific needs, visit this business plan template roundup or download a fill-in-the-blank business plan template to make things easy. 

If you are looking for a particular template by file type, visit our pages dedicated exclusively to Microsoft Excel , Microsoft Word , and Adobe PDF business plan templates.

How to Write a Simple Business Plan

A simple business plan is a streamlined, lightweight version of the large, traditional model. As opposed to a one-page business plan , which communicates high-level information for quick overviews (such as a stakeholder presentation), a simple business plan can exceed one page.

Below are the steps for creating a generic simple business plan, which are reflected in the template below .

  • Write the Executive Summary This section is the same as in the traditional business plan — simply offer an overview of what’s in the business plan, the prospect or core offering, and the short- and long-term goals of the company. 
  • Add a Company Overview Document the larger company mission and vision. 
  • Provide the Problem and Solution In straightforward terms, define the problem you are attempting to solve with your product or service and how your company will attempt to do it. Think of this section as the gap in the market you are attempting to close.
  • Identify the Target Market Who is your company (and its products or services) attempting to reach? If possible, briefly define your buyer personas .
  • Write About the Competition In this section, demonstrate your knowledge of the market by listing the current competitors and outlining your competitive advantage.
  • Describe Your Product or Service Offerings Get down to brass tacks and define your product or service. What exactly are you selling?
  • Outline Your Marketing Tactics Without getting into too much detail, describe your planned marketing initiatives.
  • Add a Timeline and the Metrics You Will Use to Measure Success Offer a rough timeline, including milestones and key performance indicators (KPIs) that you will use to measure your progress.
  • Include Your Financial Forecasts Write an overview of your financial plan that demonstrates you have done your research and adequate modeling. You can also list key assumptions that go into this forecasting. 
  • Identify Your Financing Needs This section is where you will make your funding request. Based on everything in the business plan, list your proposed sources of funding, as well as how you will use it.

Simple Business Plan Template

Simple Business Plan Template

Download Simple Business Plan Template

Microsoft Excel |  Microsoft Word | Adobe PDF  | Smartsheet

Use this simple business plan template to outline each aspect of your organization, including information about financing and opportunities to seek out further funding. This template is completely customizable to fit the needs of any business, whether it’s a startup or large company.

Read our article offering free simple business plan templates or free 30-60-90-day business plan templates to find more tailored options. You can also explore our collection of one page business templates . 

How to Write a Business Plan for a Lean Startup

A Lean startup business plan is a more Agile approach to a traditional version. The plan focuses more on activities, processes, and relationships (and maintains flexibility in all aspects), rather than on concrete deliverables and timelines.

While there is some overlap between a traditional and a Lean business plan, you can write a Lean plan by following the steps below:

  • Add Your Value Proposition Take a streamlined approach to describing your product or service. What is the unique value your startup aims to deliver to customers? Make sure the team is aligned on the core offering and that you can state it in clear, simple language.
  • List Your Key Partners List any other businesses you will work with to realize your vision, including external vendors, suppliers, and partners. This section demonstrates that you have thoughtfully considered the resources you can provide internally, identified areas for external assistance, and conducted research to find alternatives.
  • Note the Key Activities Describe the key activities of your business, including sourcing, production, marketing, distribution channels, and customer relationships.
  • Include Your Key Resources List the critical resources — including personnel, equipment, space, and intellectual property — that will enable you to deliver your unique value.
  • Identify Your Customer Relationships and Channels In this section, document how you will reach and build relationships with customers. Provide a high-level map of the customer experience from start to finish, including the spaces in which you will interact with the customer (online, retail, etc.). 
  • Detail Your Marketing Channels Describe the marketing methods and communication platforms you will use to identify and nurture your relationships with customers. These could be email, advertising, social media, etc.
  • Explain the Cost Structure This section is especially necessary in the early stages of a business. Will you prioritize maximizing value or keeping costs low? List the foundational startup costs and how you will move toward profit over time.
  • Share Your Revenue Streams Over time, how will the company make money? Include both the direct product or service purchase, as well as secondary sources of revenue, such as subscriptions, selling advertising space, fundraising, etc.

Lean Business Plan Template for Startups

Lean Business Plan Templates for Startups

Download Lean Business Plan Template for Startups

Microsoft Word | Adobe PDF

Startup leaders can use this Lean business plan template to relay the most critical information from a traditional plan. You’ll find all the sections listed above, including spaces for industry and product overviews, cost structure and sources of revenue, and key metrics, and a timeline. The template is completely customizable, so you can edit it to suit the objectives of your Lean startups.

See our wide variety of  startup business plan templates for more options.

How to Write a Business Plan for a Loan

A business plan for a loan, often called a loan proposal , includes many of the same aspects of a traditional business plan, as well as additional financial documents, such as a credit history, a loan request, and a loan repayment plan.

In addition, you may be asked to include personal and business financial statements, a form of collateral, and equity investment information.

Download free financial templates to support your business plan.

Tips for Writing a Business Plan

Outside of including all the key details in your business plan, you have several options to elevate the document for the highest chance of winning funding and other resources. Follow these tips from experts:.

  • Keep It Simple: Avner Brodsky , the Co-Founder and CEO of Lezgo Limited, an online marketing company, uses the acronym KISS (keep it short and simple) as a variation on this idea. “The business plan is not a college thesis,” he says. “Just focus on providing the essential information.”
  • Do Adequate Research: Michael Dean, the Co-Founder of Pool Research , encourages business leaders to “invest time in research, both internal and external (market, finance, legal etc.). Avoid being overly ambitious or presumptive. Instead, keep everything objective, balanced, and accurate.” Your plan needs to stand on its own, and you must have the data to back up any claims or forecasting you make. As Brodsky explains, “Your business needs to be grounded on the realities of the market in your chosen location. Get the most recent data from authoritative sources so that the figures are vetted by experts and are reliable.”
  • Set Clear Goals: Make sure your plan includes clear, time-based goals. “Short-term goals are key to momentum growth and are especially important to identify for new businesses,” advises Dean.
  • Know (and Address) Your Weaknesses: “This awareness sets you up to overcome your weak points much quicker than waiting for them to arise,” shares Dean. Brodsky recommends performing a full SWOT analysis to identify your weaknesses, too. “Your business will fare better with self-knowledge, which will help you better define the mission of your business, as well as the strategies you will choose to achieve your objectives,” he adds.
  • Seek Peer or Mentor Review: “Ask for feedback on your drafts and for areas to improve,” advises Brodsky. “When your mind is filled with dreams for your business, sometimes it is an outsider who can tell you what you’re missing and will save your business from being a product of whimsy.”

Outside of these more practical tips, the language you use is also important and may make or break your business plan.

Shaun Heng, VP of Operations at Coin Market Cap , gives the following advice on the writing, “Your business plan is your sales pitch to an investor. And as with any sales pitch, you need to strike the right tone and hit a few emotional chords. This is a little tricky in a business plan, because you also need to be formal and matter-of-fact. But you can still impress by weaving in descriptive language and saying things in a more elegant way.

“A great way to do this is by expanding your vocabulary, avoiding word repetition, and using business language. Instead of saying that something ‘will bring in as many customers as possible,’ try saying ‘will garner the largest possible market segment.’ Elevate your writing with precise descriptive words and you'll impress even the busiest investor.”

Additionally, Dean recommends that you “stay consistent and concise by keeping your tone and style steady throughout, and your language clear and precise. Include only what is 100 percent necessary.”

Resources for Writing a Business Plan

While a template provides a great outline of what to include in a business plan, a live document or more robust program can provide additional functionality, visibility, and real-time updates. The U.S. Small Business Association also curates resources for writing a business plan.

Additionally, you can use business plan software to house data, attach documentation, and share information with stakeholders. Popular options include LivePlan, Enloop, BizPlanner, PlanGuru, and iPlanner.

How a Business Plan Helps to Grow Your Business

A business plan — both the exercise of creating one and the document — can grow your business by helping you to refine your product, target audience, sales plan, identify opportunities, secure funding, and build new partnerships. 

Outside of these immediate returns, writing a business plan is a useful exercise in that it forces you to research the market, which prompts you to forge your unique value proposition and identify ways to beat the competition. Doing so will also help you build (and keep you accountable to) attainable financial and product milestones. And down the line, it will serve as a welcome guide as hurdles inevitably arise.

Streamline Your Business Planning Activities with Real-Time Work Management in Smartsheet

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The Smartsheet platform makes it easy to plan, capture, manage, and report on work from anywhere, helping your team be more effective and get more done. Report on key metrics and get real-time visibility into work as it happens with roll-up reports, dashboards, and automated workflows built to keep your team connected and informed. 

When teams have clarity into the work getting done, there’s no telling how much more they can accomplish in the same amount of time.  Try Smartsheet for free, today.

Discover why over 90% of Fortune 100 companies trust Smartsheet to get work done.

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What Is a Business Plan?

Understanding business plans, how to write a business plan, common elements of a business plan, how often should a business plan be updated, the bottom line, business plan: what it is, what's included, and how to write one.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

who should prepare a business plan

A business plan is a document that details a company's goals and how it intends to achieve them. Business plans can be of benefit to both startups and well-established companies. For startups, a business plan can be essential for winning over potential lenders and investors. Established businesses can find one useful for staying on track and not losing sight of their goals. This article explains what an effective business plan needs to include and how to write one.

Key Takeaways

  • A business plan is a document describing a company's business activities and how it plans to achieve its goals.
  • Startup companies use business plans to get off the ground and attract outside investors.
  • For established companies, a business plan can help keep the executive team focused on and working toward the company's short- and long-term objectives.
  • There is no single format that a business plan must follow, but there are certain key elements that most companies will want to include.

Investopedia / Ryan Oakley

Any new business should have a business plan in place prior to beginning operations. In fact, banks and venture capital firms often want to see a business plan before they'll consider making a loan or providing capital to new businesses.

Even if a business isn't looking to raise additional money, a business plan can help it focus on its goals. A 2017 Harvard Business Review article reported that, "Entrepreneurs who write formal plans are 16% more likely to achieve viability than the otherwise identical nonplanning entrepreneurs."

Ideally, a business plan should be reviewed and updated periodically to reflect any goals that have been achieved or that may have changed. An established business that has decided to move in a new direction might create an entirely new business plan for itself.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. These include being able to think through ideas before investing too much money in them and highlighting any potential obstacles to success. A company might also share its business plan with trusted outsiders to get their objective feedback. In addition, a business plan can help keep a company's executive team on the same page about strategic action items and priorities.

Business plans, even among competitors in the same industry, are rarely identical. However, they often have some of the same basic elements, as we describe below.

While it's a good idea to provide as much detail as necessary, it's also important that a business plan be concise enough to hold a reader's attention to the end.

While there are any number of templates that you can use to write a business plan, it's best to try to avoid producing a generic-looking one. Let your plan reflect the unique personality of your business.

Many business plans use some combination of the sections below, with varying levels of detail, depending on the company.

The length of a business plan can vary greatly from business to business. Regardless, it's best to fit the basic information into a 15- to 25-page document. Other crucial elements that take up a lot of space—such as applications for patents—can be referenced in the main document and attached as appendices.

These are some of the most common elements in many business plans:

  • Executive summary: This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations.
  • Products and services: Here, the company should describe the products and services it offers or plans to introduce. That might include details on pricing, product lifespan, and unique benefits to the consumer. Other factors that could go into this section include production and manufacturing processes, any relevant patents the company may have, as well as proprietary technology . Information about research and development (R&D) can also be included here.
  • Market analysis: A company needs to have a good handle on the current state of its industry and the existing competition. This section should explain where the company fits in, what types of customers it plans to target, and how easy or difficult it may be to take market share from incumbents.
  • Marketing strategy: This section can describe how the company plans to attract and keep customers, including any anticipated advertising and marketing campaigns. It should also describe the distribution channel or channels it will use to get its products or services to consumers.
  • Financial plans and projections: Established businesses can include financial statements, balance sheets, and other relevant financial information. New businesses can provide financial targets and estimates for the first few years. Your plan might also include any funding requests you're making.

The best business plans aren't generic ones created from easily accessed templates. A company should aim to entice readers with a plan that demonstrates its uniqueness and potential for success.

2 Types of Business Plans

Business plans can take many forms, but they are sometimes divided into two basic categories: traditional and lean startup. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

  • Traditional business plans : These plans tend to be much longer than lean startup plans and contain considerably more detail. As a result they require more work on the part of the business, but they can also be more persuasive (and reassuring) to potential investors.
  • Lean startup business plans : These use an abbreviated structure that highlights key elements. These business plans are short—as short as one page—and provide only the most basic detail. If a company wants to use this kind of plan, it should be prepared to provide more detail if an investor or a lender requests it.

Why Do Business Plans Fail?

A business plan is not a surefire recipe for success. The plan may have been unrealistic in its assumptions and projections to begin with. Markets and the overall economy might change in ways that couldn't have been foreseen. A competitor might introduce a revolutionary new product or service. All of this calls for building some flexibility into your plan, so you can pivot to a new course if needed.

How frequently a business plan needs to be revised will depend on the nature of the business. A well-established business might want to review its plan once a year and make changes if necessary. A new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.

What Does a Lean Startup Business Plan Include?

The lean startup business plan is an option when a company prefers to give a quick explanation of its business. For example, a brand-new company may feel that it doesn't have a lot of information to provide yet.

Sections can include: a value proposition ; the company's major activities and advantages; resources such as staff, intellectual property, and capital; a list of partnerships; customer segments; and revenue sources.

A business plan can be useful to companies of all kinds. But as a company grows and the world around it changes, so too should its business plan. So don't think of your business plan as carved in granite but as a living document designed to evolve with your business.

Harvard Business Review. " Research: Writing a Business Plan Makes Your Startup More Likely to Succeed ."

U.S. Small Business Administration. " Write Your Business Plan ."

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October 31, 2023

Block Advisors

How to Write a Business Plan Step-By-Step

October 31, 2023 • Block Advisors

QUICK ANSWER:

  • A business plan outlines your business’s goals, services, financing, and more.
  • Business plans vary in length and complexity but should always include an explanation of what your business will do and how it will do it.
  • Business plans serve as a guide for business owners and employees and are key to boosting investor confidence.

Whether you’re a serial entrepreneur or just getting your first small business idea off the ground, creating a business plan is an important step. Good business planning will help you clarify your goals and objectives, identify strategies, and note any potential issues or roadblocks you might face.

Not every business owner chooses to write a business plan, but many find it to be a valuable step to take when starting a business. Creating a business plan can seem daunting and confusing at first. But taking the time to plan and research can be very beneficial, especially for first-time small business owners.

If you want to learn how to create a business plan or if you feel you just need a little business plan help, read on!

What is a Business Plan?

A business plan serves as a comprehensive document that outlines your business’s goals, services, financing, leadership, and more details essential to its success. Think of the plan as the who, what, and why of your new business:

A small business owner learning how to write a business plan

Who are the major players in your business?

What goods or services do you offer and why are they important?

Why are you in business and why should customers choose you?

Business plans can range in complexity and length, but, at their core, all plans explain what the business will do and how it will do it. A business plan serves as a guide for business owners and employees and should boost investor confidence. Some important advantages of business plans include:

  • Shows investors you have an in-demand product or service, a solid team to achieve business goals, and the potential for growth and scalability.
  • Increases the likelihood of securing a business loan, locking in investments, or raising capital. >>Read: A Guide to Raising Capital as a Small Business Founder
  • Helps recognize partnership opportunities with other companies.
  • Identifies and defines competitors within your given industry.

Looking for an examples of a successful business plan? Check out the SBA’s business plan page for walkthroughs of different business plan outlines.

How to Write a Business Plan: 10 Simple Steps

Starting with a blank page is undoubtedly intimidating. So, begin with a structured business plan template including the key elements for each section. Once your outline is complete, it’ll be time to fill in the details. Don’t worry, you’ll know how to write a business plan in no time. We’ve broken each section down to help you write a business plan in a few simple steps.

1. Brainstorm and Draft an Executive Summary for Your Business Plan

This will be the first page of your business plan. Think of it as your business’ written elevator pitch. In this high level summary, include a mission statement, a short description of the products or services you will be providing, and a summary of your financial and growth projections.

This section will be the first part people read, but you may find it easier to write it last. Writing it after building out the rest of your plan may help you condense the most important information into a concise statement. You’ll need to streamline your thoughts from the other sections into a one page or less summary.

2. Create a Business Description

In this next section, describe your business. Add more specific details than the executive summary. You should include your business’s registered name, the address of your business’s location, basic information about your business structure , and the names of key people involved in the business.

The company description should also answer these two questions:

  • Who are you?
  • What do you plan to do?

Explain why you’re in business. Show how you are different from competitors. Tell investors why they should finance your company. This section is often more inspirational and emotional. Make sure you grab the reader’s attention. The goal is to get them to believe in your vision as much as you do.

What business structure is right for my company?

Answer these six questions to help you find your fit

3. Outline Your Business Goals

This section should serve as an objective statement. Explain what you want to accomplish and your timeline. Business goals and objectives give you a clear focus. They drive your business to success, so dream big. Include objectives that will help you reach each goal. Don’t forget to make your goals and objectives SMART – that is, they should be:

S pecific | M easurable | A ttainable | R elevant | T ime-bound

4. Conduct and Summarize Market Research

Next, outline your ideal customer with some research. Do the math to estimate the potential size of your target market. Make sure you are choosing the right market for your product, one with plenty of customers who want and need your product. Define your customer’s pain points. Explain your expertise in relation to the market. Show how your product or service fills an important gap and brings value to your customers. Use your findings to build out a value proposition statement.

5. Conduct a Competitive Analysis

In a similar way, you’ll also want to conduct and include a competitive analysis. The purpose of this analysis is to determine the strengths and weaknesses of competitors in your market, strategies that will give you a competitive advantage, and how your company is different. Some people choose to conduct a competitive analysis using the SWOT method .

6. Outline Your Marketing and Sales Strategies

Your marketing sales strategy can make or break your business. Your marketing plan should outline your current sales decisions as well as future marketing strategies. In this section, you should reiterate your value proposition, target markets, and customer segments. Then, include details such as:

  • A launch plan
  • Growth tactics and strategies
  • A customer retention plan
  • Advertising and promotion channels (i.e. social media, print, search engines, etc.)

7. Describe Your Product or Service

By this point, your products or services have probably been mentioned in several areas of the business plan. But it’s still important to include a separate section that outlines their key details. Describe what you’re offering and how it fits in the current market. Also include details about the benefits, production process, and life cycle of your products. If you have any trademarks or patents, include them here. This is also a good time to ask yourself, “Should my plan include visual aids?”

[ Read More Must-Have Tips to Start Your Small Business ]

8. Compile Financial Plans

Financial health is crucial to the success of any business. If you’re just starting your business, you likely won’t have financial data yet. However, you still need to prepare a budget and financial plan. If you have them, include income statements , balance sheets , and cash flow statements . You can also include reporting metrics such as net income and your ratio of liquidity to debt repayment ability.

If you haven’t launched your business yet, include realistic projections of the same information. Set clear financial goals and include projected milestones. Share information about the budget. What are the business operations costs? Ensure you are comprehensive when considering what costs you may need to prepare for.

9. Build a Management and Operations Plan

Identify your team members. Highlight their expertise and qualifications. Outline roles that still need to be filled now to establish your company and later as the business grows. Read More: 8 tax steps to take when hiring employees >>

Include a section detailing your logistics and operations plan. Consider all parts of your operation. Create a plan that provides details on suppliers, production, equipment, shipment and fulfillment, and inventory. This shows how your business will get done.

10. Create an Appendix – A Place for Additional Information and Documents

Lastly, assemble an organized appendix. This section can contain any other relevant information a reader might need to enhance their understanding of other sections. If you feel like the appendix is getting long, consider adding a table of contents at the beginning of this section. Appendices often include documents such as:

  • Licenses and permits
  • Bank statements
  • Resumes of key employees
  • Equipment leases

How to Create a Business Plan: The Bottom Line

A business plan helps you identify clear goals and provides your business direction. Many small business plans are 10-20 pages in length. But as long as the essentials are covered, feel empowered to build a plan that works for you and your company’s needs. Creating a business plan will help you identify your market and target customers, define business aims, and foster long-term financial health.

We’re ready to help you get your business started on the right foot today, and help you find long-term satisfaction as you pursue your business dream. Writing a business plan can be exciting. But if the steps to starting your business are feeling overwhelming, Block Advisors is here to help. Make an appointment today – our experts can assist you with tax prep , bookkeeping , payroll , business formation , and more .

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When Should Entrepreneurs Write Their Business Plans?

  • Francis J. Greene
  • Christian Hopp

who should prepare a business plan

Don’t write a plan before you understand your customer.

It pays to plan. Entrepreneurs who write business plans are more likely to succeed, according to research. But while this might tempt some entrepreneurs to make writing a plan their very first task, a subsequent study shows that writing a plan first is a really bad idea. It is much better to wait, not to devote too much time to writing the plan, and, crucially, to synchronize the plan with other key startup activities.

It pays to plan. Entrepreneurs who write business plans are more likely to succeed, according to our research, described in an earlier piece for Harvard Business Review . But while this might tempt some entrepreneurs to make writing a plan their very first task, our subsequent study shows that writing a plan first is a really bad idea. It is much better to wait, not to devote too much time to writing the plan, and, crucially, to synchronize the plan with other key startup activities.

who should prepare a business plan

  • FG Francis J. Greene is Chair in Entrepreneurship in the University of Edinburgh Business School.
  • CH Christian Hopp is Chair in Technology Entrepreneurship in the TIME Research Area, the Faculty of Business and Economics, RWTH Aachen University.

Partner Center

How to Write a Business Plan

Last Updated: February 16, 2024, 12:05 pm by TRUiC Team

Writing a business plan can be an intimidating endeavor. Whether you’ve decided to start a business , or you already have a business and need to write a business plan to apply for a loan or to pitch to investors , we cover the process in-depth.

Recommended: Our business plan generator walks you through topics like marketing and financial projections so that your business is prepared to succeed.

Man writing a business plan.

What Is a Business Plan?

The traditional business plan is typically a 20 to 40-page formal document that describes what your business does, what your objectives are, and how you plan to achieve them.

It lays out your plans for operating, marketing, and managing your business, along with your goals and financial projections.

There are many different types of business plans, depending on the stage of your venture and the purpose of your business plan. In the earliest stages of your business idea, you may want to start small with a three-sentence business plan , or perhaps by sketching out a lean canvas or business model canvas .

Once your business idea has been developed, you’ll be ready to begin writing your business plan .

Why Do You Need a Business Plan?

Writing a business plan requires you to think through all of the key elements of your business. This gives you insights into the challenges you’ll face and the strengths you bring.

A business plan is also often requested by lenders or investors when you are ready to seek financing.

While many companies do not need a formal business plan unless they are planning on seeking investors or applying for a business loan , writing a business plan has extensive benefits.

The process of writing your business plan allows you to take an in-depth look at your industry , market , and competitive position . It helps you set goals , determine your keys to success , and plan your strategies . It also allows you to explore your financial projections and manage cash. So, even if you do not need a formal business plan, the process of planning may still reap huge rewards.

Your Audience

You need to think carefully about who is going to read your business plan.

Although you might begin writing a business plan only to convince yourself, there are a number of stakeholders who may end up reading your business plan.

Your plan might be read by your:

  • Partners or potential partners
  • Board of directors
  • Senior management team
  • Current employees
  • Employment candidates

Outside the organization , the following stakeholders may want to read your business plan before they decide to do business with you:

  • Distributors
  • And independent contractors

Think about your primary audience when you are writing your business plan. What are the aspects that are most important to them? This is where you will want to put the majority of your focus.

For example, lenders will be most interested in your financial projections — your cash flow statement and balance sheet.

Investors might be most interested in your business model, the uniqueness of your product or service, and your competitive advantage.

Partners, your senior management team, and current employees might be most interested in your strategic plans- your vision, your operational plan, and your organizational plan.

Find Sample Business Plans in Your Industry

One great resource you should check out before sitting down to write your business plan are sample business plans in your industry.

Not only will you have the opportunity to gain insights on your industry and your competitors, you also might be able to find troves of industry and market research that will make conducting your own analysis of the industry and market much easier.

To find example business plans in your industry, try searching the web for “ your industry business plan example.”

Writing Your Business Plan

Once you have spent some time looking at sample business plans in your industry, it is now time to start writing your business plan . An easy place to begin is by outlining the major sections you will need in your plan.

What you need to include in your business plan will depend on the type of business you are creating, your business model, and who your intended audience is.

Common business plan sections include:

  • Executive Summary — a high-level overview of your business or business idea
  • Venture Overview — a description of your company, vision, mission, and goals
  • Product or Service Description — a detailed description of your product or service
  • Industry and Market Analysis — an analysis of the industry and market you compete in
  • Marketing Plan — your overall strategy and specific plans to capture market share
  • Organizational Plan — the legal form of the business and the key players
  • Operational Plan — how you will operate the business and your key resources
  • Goals, Milestones, and Risks — short and long-term goals, milestones, and risks
  • Financial Statements — Financial statements or the projected financials of your business

Not every type of venture will require every one of these sections to be included in their business plans. However, most business plans will at least include an executive summary, venture overview, a description of the products and services, and some form of financial projections.

Executive Summary

As suggested in its name, an executive summary is a summary of the key points in your business plan . This is your first chance to convey to readers the what, why, who, and how of your business or business idea.

Although there is no set structure for an executive summary, a good executive summary should summarize :

  • The problem you are solving
  • Your solution
  • Your target market
  • Any competitive advantages
  • The team you’ll build
  • Goals and objectives
  • An overview of your financials or financial forecast

If you are writing your business plan for the purpose of acquiring funding , you will also need to discuss the amount of funding required, the purpose of the funds, as well as how your investors will get paid back.

The executive summary should be clear and concise . Ideally, this section should be one to two pages and typically follows either a synopsis or story approach, depending on the intended audience.

In the synopsis approach, you would provide a brief summary of each of the key sections of your business plan. In the story approach, your executive summary reads like a narrative, allowing you to tell the “story” of your business or idea.

With either approach to writing the executive summary, the information you want to convey remains the same. The executive summary needs to provide an overall picture of your current business or business idea.

The executive summary should include:

  • A brief description of you and your venture,
  • The problem your product or service is solving,
  • Some information on your target market, including size, potential, & competition, and
  • The solution you are offering.

The executive summary should also include:

  • A statement of where you are now,
  • A statement of your objectives and future plans,
  • A list of what you see as keys to your success, and (if you are seeking investors)
  • Any relevant financial information such as start-up costs, funding required, and how you will use investor funding.

Although the executive summary is the first section in the business plan, because it is a summary of the rest of your business plan, it is often written last.

Venture Overview

The venture overview is a top-level depiction of your company.

It contains the:

Description of the Venture

  • Vision Statement
  • Mission Statement
  • Goals & Objectives
  • Keys to Your Success

The first part of your venture overview is a description of your venture.

The description of your venture should include what you do (a brief description of your products or services), the value you provide to customers, your current operating status or a brief history of the venture, and a short description of the industry or niche in which you compete.

How to Write a Vision Statement

After describing your venture, a vision statement is a very simple, 5 to 10 word sentence or tagline that expresses the fundamental goals of your firm. Good vision statements reflect your company’s long term passion and purpose, often in a way that evokes emotion.

Take a look at the vision statements below for some inspiration:

Disney —  To make people happy. Oxfam —  A world without poverty. Stanford —  To become the Harvard of the West. Marriott —  To be the #1 hospitality company in the world. Microsoft —  A computer on every desk and in every home; all running Microsoft software.

How to Write a Mission Statement

After having crafted your vision statement, you should also create a mission statement. A mission statement explains your company's goals in terms of what you do for your customers. A good mission statement should tell your reader what your company does, who you do it for, and why you do what you do.

Check out these excellent examples of compelling mission statements:

Patagonia —  “Our Reason For Being: Build the best products, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” Trader Joes —  “Our mission is to give our customers the best food and beverage values that they can find anywhere and to provide them with the information required to make informed buying decisions. We provide these with a dedication to the highest quality of customer satisfaction delivered with a sense of warmth, friendliness, fun, individual pride, and company spirit.” Facebook —  "Founded in 2004, Facebook's mission is to give people the power to build community and bring the world closer together. People use Facebook to stay connected with friends and family, to discover what's going on in the world, and to share and express what matters to them."

Goals and Objectives

In this section of the business plan, break down your most important short-term and long-term goals and objectives.

Aim for five to seven of your most important short and long term goals.

This subsection of your venture description should be kept short. You will come back to your goals at the end of your business plan.

However, your key short-term and long-term goals should be highlighted early on in your business plan as well. The rest of your business plan will act as evidence of how you plan on achieving your goals.

Keys to Success

Your keys to success are your insights into what it takes to be successful in your industry, market, or niche.

Your keys to success can include several of the most important milestones that you will need to accomplish in order to achieve your goals.

These may include providing high quality products and services, your ability to attract customers or users and gain market share, or even your ability to develop the technology to deliver your products or services.

Your keys to success may also include the major milestones that you will need to reach along the way in order to achieve your vision. You will come back to your milestones and objectives at the end of your business plan.

Product or Service Description

The product or service description section is where you will go into detail in describing your products or services.

Not only will you describe your product in more detail, you should also discuss the uniqueness of your product, and what gives you an advantage over your competitors.

These are the three main parts of the Product (or Service) Description:

Description of Products or Services

Uniqueness of product, competitive advantage.

In this subsection of your business plan, describe the products or services you will provide, why they are a fit in the market, and how you will compete with similar products and services.

Begin by clearly describing the products or services you will provide. Make sure to explain the features and characteristics of your products and services. Your product or service description does not have to be highly technical. Rather, in addition to describing the features, focus on highlighting the advantages and benefits associated with your products or services.

Also, let your reader know why your product or service is needed. How does your product or service differ from those offered by your competitors? How does it better fill your customers wants and needs?

This is where you tell your reader why your solution is unique. Is it different from everything else out there? How is it different? Why would potential users choose your product or service over your competitors? In order to stand out, you need to distinguish yourself in some way.

To describe your product or service’s uniqueness, you may want to come up with a unique value proposition (or unique selling point). A value proposition is a short description of what you do, who you do it for, and how this benefits them.

A value proposition is similar to a mission statement. However, it differs in that a mission statement is written from the perspective of the company, while a value proposition is written from the perspective of the customer.

Your value proposition should be the center of your customer messaging. It should be front and center on your website, in your marketing materials, and in your advertising.

Here a few examples of great value propositions:

Dollar Shave Club —  A Great Shave for a Few Bucks a Month. No Commitment. No Fees. No B.S. Unbounce —  Build, Publish, & A/B Test Landing Pages Without IT Freshbooks —  Small Business Accounting Software Built for You, the Non-Accountant Skype —  Skype Keeps the World Talking, for Free. Share, Message, and Call - Now with Group Video on Mobile and Tablet Too.

What makes you better than competitors?

Does your competitive advantage come from superior products and services, customer service, technical support, logistics, price? What are the factors that give you an advantage over your competitors?

Clearly defining your competitive advantage is important.

Your competitive advantage is not just some abstract concept. It is at the core of how you deliver value to your customers. Your competitive advantage lays the foundation for your business model and should be a key component of your strategic plans.

Common areas where businesses find competitive advantages include:

  • Intellectual Property
  • Resources/Capital
  • Economies of Scale
  • Knowledge/Experience
  • Connections and Network
  • Customer Service
  • Technical Support
  • Customization
  • Brand Recognition/Loyalty

Industry and Market Analyses

The industry and market analysis is the “big picture” view of your industry and market.

Conducting an industry and market analysis is going to take a good deal of research. You will likely need to research your industry, your competitors, and your customers. But do not rush through this section of your business plan.

A good understanding of your industry and market is critical to your success. By understanding the forces at play within your industry, you will be better able to find additional ways to create value that will allow you to succeed in the current and anticipated competitive environment.

Conducting an industry and market analysis can be intimidating, especially if you do not know what to look for or how to find the information you need. In the next section, we will discuss what should be included in your industry analysis. Then, we will tell you where to begin looking.

Industry Analysis

The industry analysis is a big picture analysis of the industry you will compete in. What does your overall industry look like today? There are a number of insights that will help you assess the attractiveness of your idea and form a big picture view of the industry and segment you are considering competing in.

Key insights to be alert for include:

  • The dominant economic features of the industry
  • The industry’s driving forces
  • The industry’s competitive environment
  • The competitive position of major players and key competitors
  • Key industry success factors

To arrive at meaningful insights from your industry analysis, try to find answers to the following questions:

  • What primary products or services are provided by your industry?
  • What is the size and trajectory of the industry?
  • What was the annual growth rate of the industry over the past year? Three years? Five years? Ten years?
  • What is the forecasted annual growth rate over the next three years? Five years? Ten years?
  • What is the average profitability of firms in your industry?
  • What trends are affecting your industry?
  • Who are the major customer segments served by your industry?
  • Who are the major players in your industry?
  • Who will be your key competitors in your industry?
  • What key factors determine success or failure?

Industry Research

Now that you have a better idea of what to look for, you will need to know where to begin your search. There are a number of great free resources to begin looking for industry research. However, the first step is to determine the industry you are in.

While by this point, you should have some idea of the industry you are in, it is not always so clear. You could try an internet search to see what information you can find on your industry, but you will also want to find the NAICS code. You can do a NAICS Code Lookup and find the NAICS Code for LLC that matches your industry.

Here, you use the NAICS identification tool to drill-down through a list of industries to find the appropriate NAICS code for your business.

Once you know your industry, you can begin collecting more information about the industry trends and trajectory.

www.Bizstats.com provides free industry statistics including industry averages for income statement revenues and expenses, balance sheets, and key financial ratios. This is very helpful in making financial forecasts and setting benchmarks.

The US Census Bureau also provides several tools to help you conduct industry research:

  • The Economic Census provides information on employer businesses, including data sorted by industry, state, region, and more.
  • Statistics of US Businesses (SUSB) provides additional data on US businesses by enterprise size and industry. Both of these tools may help in conducting your industry analysis.

Target Market Analysis

Once you have a better understanding of the industry, you can begin to narrow down to your target market. In this section of the business plan you describe who your target market is and what you know about them.

What is a target market? Your target market is the specific group of customers to whom your product is intended. And no, it is not everyone. Although many new venture founders would like to sell their product or service to everyone, you should focus your efforts on your most likely customers.

Narrowing your target market requires understanding the three types of markets for your products or services. Your venture’s market can be narrowed down into three categories, the TAM, the SAM, and the SOM.

The total available market (TAM) is the total market for your products and services. Everyone in the universe who might be your customer.

The serviceable available market (SAM) is the subset of the total market that you can actually reach. Although anyone in your universe might be your customer, you are limited in your ability to reach them all.

The share of market (SOM) is the subset of the serviceable available market that you will actually reach. These are your most likely customers. Your target market.

Target markets can be segmented in many different ways. The idea is to narrow down to your most likely customers. This is where your focus should be.

Ways you can segment the market include:

  • Demographic (e.g., age, gender, family size, education, income)
  • Geographic (e.g., country, state, region, city, neighborhood)
  • Psychographic (e.g., benefits sought, personality, social class, lifestyle)
  • Behavioral (e.g., benefits sought, usage, attitude, loyalty)

Once you understand who your target market segments are, you will be able to start determining how you can reach them. To do this, consider:

  • Where does your target market get information to make purchasing decisions?
  • What is it they are looking for when considering buying this product/service?
  • What will your target market pay attention to?

Market Research

To determine your target market and conduct a market analysis, you will most likely have to do market research.

Market research is the collection, analysis, and interpretation of data related to your target market and target customer to support strategic decision making.

There are two types of market research : secondary market research, and primary market research.

Secondary market research is the collection, analysis, and interpretation of data that has already been collected for other purposes. Secondary market research may include the collection of data from a number of sources such as the U.S. Census Bureau, consumer agencies, and for-profit organizations.

Primary market research is the collection of new information to gain a further understanding of the problem at hand. Primary market research involves you collecting the data or hiring a market research firm to collect data for you. This is you going out and actually collecting the opinions of your potential customers.

Common methods of primary market research include customer observation, focus groups, customer surveys, and customer interviews .

Because primary market research typically takes more time to complete and may incur significant costs , secondary market research is often conducted before conducting primary market research. This allows you to gather enough insights that you can narrow your primary market research to those more likely to be your customers.

To begin conducting secondary market research, consider these sources:

Think with Google provides a number of free tools and resources to help you find and understand your target market. From tools like Find My Audience and an Insights Library to a wealth of information on customer trends and the consumer journey, Think with Google is a valuable tool in conducting your market analysis.

City Town Info provides free statistics on people and places, colleges and universities, and jobs and careers. You can search for data on more than 20,000 U.S. communities at the city and state levels.

Google Trends is another useful tool for conducting market research. Google Trends allows you to explore what people are searching on the internet. You can examine trending topics, see trends by year, or search your own topic to discover interest over time, by region, or by related queries.

Social Mention allows you to conduct a real-time social media search for topics across more than 100 social media platforms. Social Mention provides you with information on the sentiment behind topic mentions, top keywords, top hashtags, and the social media platforms where these topics are being discussed.

Needless to say, there are several other great sources for both industry and market research. The key is to get creative to find the data and information to both guide your strategy as well as justify your business opportunity.

Competitive Analysis

Once you understand your industry and market, you should also include an analysis of your major competitors.

Your competitors may include anyone offering alternatives to your solution that people are using now to solve the same problem.

You will want to understand and explain who your competitors are along with their market share , price, major competitive advantages and disadvantages, and what makes your product unique from theirs.

Start by identifying the major competitors within your industry. You should focus on your closest competitors. Those that compete with you directly.

Next, for each competitor, describe their strategies, their strengths, and their weaknesses. In doing so, try to answer the following questions:

  • What are their primary products and or services?
  • Who are their target customers?
  • What differentiates your product or service from theirs?
  • What is their pricing strategy?
  • What is their marketing strategy?
  • What is their main message or value proposition?
  • What are their strengths and weaknesses?
  • What are their competitive advantages?

You should complete a competitive analysis for your top three to five competitors. Doing so will allow you to gain a much better perspective on the competitive landscape and may provide insight into how you can distinguish yourself from your competitors and even how you can take advantage of areas where your competitors fall short.

Marketing Plan

The marketing plan depicts the overall strategy your venture pursues to capture market share.

The marketing plan describes all aspects of marketing for your venture, including the product, price, place, and promotion . This includes a big picture view of your marketing strategy, your planned marketing mix, as well as your pricing strategy, sales strategy, and advertising strategy.

The marketing plan should be well informed by your industry and market analysis. By now, you have a plethora of knowledge about who your target customer is, the problem and pain points that you are alleviating for them, and how your competitors are positioned. All of this knowledge allows you to hone your marketing plan to reach your target market with the right message in the channels they turn to for information.

Marketing Strategy

The first section of your marketing plan is your marketing strategy. Your marketing strategy refers to your overall strategy of how you will market your product. How will you get your message out to your potential customers?

Your marketing strategy should consider the four essential elements of marketing:

The 4 Ps of Marketing:

The product is everything the customer gets, whether it be a physical product, a service, or an experience.

It is what you deliver. This includes the product or service itself, along with its branding, packaging, labeling, and even benefits.

The price is what you charge. What the customer gives you. Your business plan should discuss your pricing strategy and where this fits in your marketing mix.

Are you competing on price and thus offer low pricing? Or are you focusing on value at a medium price point? Or maybe you are positioned as a luxury label or item, and compete at a high price point? Why did you choose this strategy? Does it fit with your target market and within your marketing mix?

Location refers to where your customers find you, or where you find them.

While much of today’s marketing is done online, location is still as important as ever. Once you understand the place, you will have a much better idea on how to deploy your marketing mix. Where do your ideal customers get their information? Where do they shop? What forms of social media do they use?

Promotion is how you tell customers about your products and services.

Simply put, promotion is how you raise awareness of your products, services, or brand. Promotion strategies may include public relations, content creation and curation, marketing, and advertising.

But, keep in mind, your promotional strategies should be focused on one thing: your target customer and the strategies and messaging that works for them.

Your Marketing Mix

Your marketing mix is how you allocate resources to the marketing channels that you plan to pursue. In this section of your marketing plan, you will describe the marketing messaging and channels that you plan to use, and why these are appropriate for your target market.

Inbound Marketing

Inbound marketing, or content marketing, is a form of marketing designed to draw traffic to your website by providing valuable content to your target market. This is often achieved by posting useful web content, content, videos, and blogs.

The idea behind inbound marketing is pretty simple- by providing knowledge and information on your products, services, and other information that is valuable to your customers, you generate more leads and, hopefully, more sales.

Social Media Marketing

With over 3.5 billion people around the world using social media, social media marketing is another powerful tool to reach potential customers.

Social media marketing has many advantages, including allowing you to get your message in front of your specified target audience at little to no cost.

Although there is an overabundance of social media channels to choose from. Focus on the ones that your target market uses to get their information.

For instance, if your target market is middle age or older people, you may want to focus on platforms that are more popular with these demographics such as Facebook, Twitter, and Pinterest. However, if your target market is teen agers and young adults, you are more likely to find them on platforms such as Instagram and TikTok.

The Power of Video Marketing

Do not forget to discuss the use of video marketing in your marketing mix.

In both inbound and social media marketing, video has begun to play an increasingly important role. Video marketing can be employed in inbound marketing, email marketing, and social media marketing to serve a variety of purposes. The most common uses of video marketing include explainer videos, presentation videos, testimonial videos, sales videos, and video ads.

Not only can video marketing be used in a variety of methods and contexts, it is a highly consumed type of advertising. In fact, in 2020, 96% of consumers watched an explainer video to find out more about a product or service. Video works. And marketers believe this too. 92% of marketers who utilize video marketing say that it is a key part of their marketing strategy.

Email Marketing

Depending on the type of venture your company is, email marketing may also be an important element in your marketing mix. A good email marketing strategy balances gaining new customers with keeping your existing customers engaged with your company.

Although you do not want to overdo it, and a lot of email marketing seems “spammy”, email marketing can be very effective in the right form. Welcome notes, confirmation emails, informational emails, newsletters, digital magazines, promotional emails, and seasonal and birthday campaigns are just a few of the many types of email marketing.

Referral Marketing

Another common type of marketing in a company's marketing mix is referral or recommendation marketing. Referral or recommendation marketing can take many forms. Referral marketing might include good old organic word-of-mouth marketing wherein you ask customers for referrals, or even a formal system for rewarding customers who refer new clients.

Pricing Strategy

The Marketing Plan section of the business plan should also describe your pricing strategy. How are you going to price your products and services?

There are a number of ways you can approach pricing:

Markup Pricing —  Markup pricing is pricing based on your costs, plus a predetermined markup. The amount you mark up your product or service is usually expressed as a percentage, known as the gross margin. Markup pricing is most often found in high volume manufacturing industries where manufacturers must cover the cost of the products they are making.

Competitive Pricing —  Competitive pricing is pricing based on your competitors prices for similar products or services. Competitive pricing is most often seen in products or services where there are numerous competitors or substitutes.

Value Pricing —  Value pricing is pricing based on the value or perceived value that you deliver to your customers. In value-based pricing, you set the prices of your products and services in line with what the customer believes your product or service is worth. Value-based pricing is most often seen in higher value products and services, those that cater to self-image, or those that are niche or unique.

Penetration Pricing —  Penetration pricing is setting a low initial price, and then raising it as demand increases. Penetration pricing is designed to capture market share. It is a strategy often used by a new business or in launching new products and services. The idea is to set the price low enough to draw customers from your competition.

Price skimming —  Price skimming pricing is setting a high initial price and then reducing this price as the market evolves. Price skimming is most often used on new or trendy products and services. As initial demand slows and alternatives or competitors emerge, the high initial pricing must then be lowered to stay competitive in the market.

Sales Strategy

A sales strategy is how you plan on selling your products or services to your target market. This includes your sales channels (where will your product or service be available for sale) as well as how you will sell your product or service.

Your sales strategy depends on your business model and the nature of your business. If your business involves retailing, food services, or personal services where your customers come to you to make a purchase, your sales strategy may be quite simple (or even unnecessary to income). However, if your business involves personal selling, you may need a more thought-out sales strategy.

Some questions to ask to determine and document your sales strategy in your business plan:

  • Will your products or services be available on your website?
  • On a third-party website?
  • In retail locations?
  • In your own stores?
  • In other retail stores?
  • Directly to consumers? (Business to Consumer or B2C)
  • To businesses? (Business to Business or B2B)
  • Cold calling?
  • Networking?
  • Inside salespeople?
  • Outside sales representatives?
  • Sales through strategic partners?

Advertising Strategy

An advertising strategy is how you plan to use sponsored, non-personal messaging to reach and inform potential customers of your product, service, or brand.

Your advertising plan should describe the mediums you are going to advertise in , who you are targeting advertising in these mediums, your advertising message(s), and your advertising budget. A good advertising plan is also measurable, so be sure to consider how you are going to measure the effect of your advertising strategy to see if it is working.

Advertising Mediums

The most common advertising mediums typically fall into the categories of traditional advertising and digital advertising.

Traditional advertising includes print advertising such as newspapers, magazines, flyers, direct mail, and even billboards, as well as radio and tv advertising.

Digital advertising includes email advertising, search engine advertising, website advertising, social media advertising, influencer advertising, among many, many more.

The secret to finding the right advertising strategy and advertising mediums for your business is knowing where to find your most likely customers. Where is your target market, and where do they go to get their information?

Organizational Plan

The organizational (or management) plan describes:

  • The legal form of the business
  • Its organizational structure
  • The background and roles of the leadership team
  • Key personnel that are already in place or you will need to fill.

Organizational Type and Structure

The first part of your organizational plan describes your organizational type and structure . Who owns your company? And what is its legal business structure?

There are four primary types of organizational structures:

Sole Proprietorships

Partnerships.

  • Limited Liability Companies (LLCs)

Corporations

Sole Proprietorships and Partnerships are informal business structures , while LLCs and Corporations are more formal business structures .

The best type of structure for your business will depend on your business’s particular characteristics and needs. A partnership structure may be the best choice for some businesses, while an LLC or a corporation might work better for others.

Sole proprietorships are an informal type of business structure. While many businesses start out as sole proprietorships because they are an informal business structure the owner is liable for 100% of the business's liabilities and risks. Thus sole proprietorships are typically not the preferred ownership structure for small businesses.

Similar to a sole proprietorship, a partnership is also an informal type of business structure. While a sole proprietorship involves only one owner, a partnership is a business structure with two or more partners where there is still no legal distinction between the owners of a partnership and their business.

An LLC is a formal business structure that distinguishes the owners from the business itself.

LLCs offer the personal liability protection of a corporation with the pass-through taxation of a sole proprietorship or partnership.

It is the simplest way of structuring your business to protect your personal assets in the event your business is sued.

LLCs can be owned by one or more people, who are known as LLC “members.” An LLC with one owner is known as a single-member LLC, and an LLC with more than one owner is a multi-member LLC.

LLCs require operating agreements . Operating agreements are legal documents that outline the ownership and member duties of your LLC. This agreement allows you to set out the financial and working relations among business owners ("members") and between members and managers.

Recommended: Learn how to form an LLC in your state using our free guides.

A corporation is a legal business entity that is owned by shareholders, run by a board of directors, and created through registration with the state.

Corporations offer limited liability and tax benefits but are required to follow more complex operating procedures than their counterpart, the limited liability company (LLC).

Ownership and Executive Team

Now it’s time to sell the single most important element in your business plan. You!

This subsection of your business plan tells readers who is in your ownership and executive team and outlines the accomplishments of your team.

You should include a short profile on each member of your ownership and executive team that will play a role in company decision making.

Who is on your ownership and executive team? What roles will each perform? What knowledge, experience, and accomplishments do you and your team bring to the table? What roles do you still need to fill, and how and when do you plan on filling them?

It is well known that many investors consider the experience and ability of the ownership and management team to be just as important as the idea itself. Do not pass over this opportunity to highlight how your knowledge, experience, and accomplishments set you up to succeed.

Also, remember that when you are writing your descriptions of your ownership team, talk about your accomplishments- as opposed to experience. Accomplishments signify that you have a track record and can get things done.

Key Personnel

This section of the business plan highlights the key personnel associated with the business . This may include members of the management team outside of the owners and executive management, the board of directors, and any outside advisors.

Here, include profiles on each key figure associated with your company, focusing on their accomplishments and the knowledge and skill they bring to the business.

Operational Plan

The operational plan describes how you will operate. The processes, strategies, and resources that you will use to operate your business on a daily basis.

This includes descriptions of production (if you produce a product) or the process you will use to carry out your service. The operational plan may also include, as necessary, descriptions of your logistics and supply chain, physical resources and needs, human resources and needs, technological resources and needs, and timetables for carrying out your plan.

Production Plan or Service Description

The production plan or service description explains how you are going to make and deliver your product(s) or provide your service(s). Although the production plans for products and services may look slightly different, both describe how your company will operate in the day-to-day.

If you are making a product , the production plan is where you will describe the process for making the product. What are your methods of production? What are the steps in your processes? How will you ensure quality? Maintain inventory? Handle Logistics?

If you are providing a service , the production plan is where you can describe the process you go through providing that service. What are your service methods? What will your sales and customer service look like? What is the customer experience like?

Most importantly, which of these might give you an advantage over your competitors? If you have any superior methods, processes, or other advantages, make sure to highlight them in your production plan or service description.

Logistics and Supply Chain

This section of the business plan describes your logistics and where you fall within the supply chain in your industry.

If you produce a product , you should discuss how you source materials, where your materials come from, and who your suppliers are. You will also need to discuss how you handle inventory, how you warehouse, and how you distribute your product(s).

If you are a service business , you may still have to discuss how you source materials used in your service, who your suppliers are, and how you handle inventory.

Physical Resources

In this section of the operational plan, you describe the physical resources that you have and the physical resources that you need to acquire. Think through everything you might need. This will become important when it is time to make financial projections.

  • What facilities, machinery, equipment, and supplies do you require?
  • Do you require raw materials?
  • Who will be your primary suppliers?
  • Secondary suppliers?
  • Do you have back up suppliers and contingency plans if you cannot acquire raw materials?

Technological Resources

You should discuss the technological resources that you are developing, have, or need to create or acquire. Technological resources may include any software, applications, or websites that you have or will need to create, outsource, or purchase.

  • What hardware or machinery will you require?
  • What software or applications will you require?
  • Can you purchase the software and applications you need?
  • Are the software and applications you will need off-the-shelf or specialty?
  • Will you have to create the software and applications you need?
  • Do you need a website?
  • Will you create and maintain your website inside the company or have it created and maintained by someone else?

Human Resources

Here, you describe the people that are a part of your team, and the human resources that you need to add to your team, hire, or outsource. Since you have already described the ownership and management team as well as key personnel, this section is more focused on production level workers and lower management.

  • How much staffing will you need?
  • What skills will your staff require?
  • What will your staffing typically look like?
  • How will you recruit, train, and retain employees?

Goals, Milestone, and Risk

The goals, milestones, and risks section of your business plan is the place to outline your goals, set key milestones, and explore and explain your preparation for the risks you will face.

Goals lay the foundation of where you intend to take your company and how you are going to get there. It is important to ascertain the short and long-term goals for your company.

Your goals should be connected to your mission and vision, your business model, and your strategic plans. They should also reflect your ambition to move the company forward and are often reflected in key performance indicators (KPIs) , such as numbers of users and customers, revenues, expenses, retention, satisfaction, and other indicators of performance.

Here are some questions to help you develop the goals for your company:

  • When do you expect to break even?
  • What do you expect your revenue to be in one year? Three years? Five years?
  • What market share do you expect to capture in the next year? Three years? Five years?
  • Where do you plan to expand from here?
  • What KPIs do you need to achieve or improve?
  • When do you expect to implement major objectives?
  • What level of customer satisfaction do you hope to achieve?

When developing your goals, in addition to defining what your goals are, you also need to consider the how , the when , and the who . First, consider how your goals will get accomplished? What actions need to be taken to achieve your goals? What milestones do you need to accomplish along the way?

Your goals should also include your plan on when you plan on attaining each goal . Not only will your readers be curious about when you plan to achieve your goals, due dates and deadlines make for really powerful motivators.

Finally, you should also determine who is going to be responsible for working toward each goal. In a sole-proprietorship or startup it may be you, the business owner, or your founding team. However, as your organization grows, it will become more and more important to define who is responsible for pushing toward and achieving each goal.

SMART Goals

Your goals should be SMART: S pecific, M easurable, A ttainable, R ealistic, and T imely.

  • Specific —  Your goals should be clear and specific. They should be narrow enough that you can determine the appropriate steps to attain them. In addition to what , in planning your goals, do not forget to be specific about how , when , and who . How will your goals be attained? When do you anticipate achieving them? Who is going to be responsible?
  • Measurable —  Your goals should be measurable. There should be some objective metric or performance indicator by which you can tell if you have met your goals? How are you going to measure your goals? What metrics or performance indicators will you use? How will you know if you achieve your goals?
  • Attainable —  Your goals must also be realistic and attainable. For a goal to be attainable you must be able to achieve it. Do not be afraid to push yourself, but setting unrealistic goals will cast doubt on your entire business plan. Ask yourself, can your goals be accomplished? By you? What will it take to attain them?
  • Relevant —  Your goals also need to be relevant. To be relevant, they should contribute to the mission, vision, and success of your venture. Do your goals align with your company’s values? Are they within the scope of and aligned with your operational plan? Your marketing plan? Are they within the budget?
  • Timely —  Your goals should also be timely and time-bound. Their process and progress should be clearly defined and they should have a starting and ending date. Without a timeframe, there is no sense of urgency, or motivation to get started. Make your goals time-bound. How long do you expect it to take? When do you plan on getting started? When do you anticipate achieving each goal?

Milestones are important events in your venture’s growth that mark significant change or stage of development.

Creating a list of milestones can act as a checklist of what you need to accomplish for your venture to reach its goals. They tell the story of how you are going to get from where you are to where you are going.

Milestones might include major events and accomplishments, such as:

  • Forming an LLC
  • Writing a Business Plan
  • Securing Seed Capital
  • Develop a Prototype
  • Begin Production
  • First Major Sale
  • Reach 10,000 Downloads
  • Achieve 1,000 Paying Customers

It is alright to list a few milestones that you have already completed. Or to leave them in your business plan once you complete them. Accomplished milestones show that you are making traction.

Milestones act as a signal to potential investors and other stakeholders what to expect from your venture and when to expect it. They also signal whether the venture is progressing and growing as expected.

Implementation Timeline

The implementation timeline is where you describe where your company is in its lifespan . You should set a timeline to reach your goals and milestones. This should include a short-term timeframe as well as where you anticipate being in the long term.

This section of the business plan should not be long. A simple chart will do. You can find several free timeline templates online to plug in your milestones and the time frame you expect to achieve them.

You will also want to include a section in your business plan showing that you understand the critical risks that your business may be subject to . The risks you will face in your business include both internal and external risks. These are any areas that expose your venture to any kind of loss- assets, customers, sales, profits, and reputation, among others.

By exploring your assumptions and identifying possible risks in those assumptions, you can show that you have assessed and are prepared to handle risks and threats that may arise. There are several tools available to analyze business risks, including SWOT Analysis and contingency planning .

SWOT Analysis

You may want to conduct a SWOT analysis or even include it in your business plan. A SWOT analysis is an analysis of your strengths, weaknesses, opportunities, and threats.

A SWOT analysis can help you understand your industry and market, your venture, and the strategies that you should pursue.

To conduct a SWOT analysis, you will need to assess factors both inside and outside your venture.

Here is how to conduct your own:

  • What does your company do well?
  • What are your company’s advantages?
  • What do you do better than your competitors?
  • What unique or low-cost assets do you have access to?
  • What does your company not do well?
  • What are your company’s disadvantages?
  • What do your competitors do better than you?
  • What needs to be improved?
  • Where can you improve?
  • Where can you grow?
  • How can you turn your strengths into opportunities?
  • How can you turn your weaknesses into opportunities?
  • Do the trends of the industry or market represent a threat?
  • Is the number of competitors growing?
  • Do changes in technology or regulation threaten your success?
  • Do your weaknesses represent a threat?

Contingency Plans

After assessing your risks and your SWOT analysis, you should address any major threats or risks that your venture faces with contingency plans.

Contingency plans are plans to help mitigate these risks by establishing a plan of action should an adverse event happen.

Contingency plans show that you understand the threats and risks to your venture, and you have a plan in place to lessen the damage should these risks emerge. There are various ways to prepare for adverse events. One is through planning- identifying alternatives and determining the best course of action. Another is business insurance.

Business Insurance

Business insurance protects against risk from several sources. The type of business insurance you will need varies greatly depending on the nature of your business.

While there are standard types of coverage like general liability insurance , professional liability insurance , workers’ compensation , insurance for commercial property and commercial auto insurance , there are also insurance policies that cover specific business activities and specialized equipment.

You can bundle most of these into what is called a Business Owner’s Policy (BOP) by a trusted insurance provider to get you started doing business.

Financial Statements

Your financial statements should include detailed projections of your income statement , cash flow statement, and balance sheet for the first year. You should also provide quarterly projections for the first three (or preferably five) years as well.

You also will likely need to include some sort of financial statement in your business plan. If you are a new venture, you will supply pro forma financial statements. Pro forma financial statements are simply financial projections.

Financial statements can help you to evaluate the cash needs of your venture, determine whether your venture is feasible and desirable, compare your expected returns with the alternatives, identify milestones and benchmarks, and demonstrate the value of your venture to investors.

Financial Assumptions

Before you begin completing your financial statements, you should first sit down and list the assumptions you will rely on to project your financial statements .

These should include projections concerning your:

  • Initial revenue level per month
  • Your growth and factors affecting growth
  • Your inventory and inventory turnover
  • And your operating expenses.

One of the biggest mistakes new ventures make is in making unrealistic assumptions .

Remember, revenue assumptions are key assumptions in determining whether your business will be viable. However, many entrepreneurs are overly optimistic about their revenue assumptions and tend to underestimate their expenses.

In order to make more accurate financial assumptions, back up your assumptions with data whenever possible. To find data to back up your assumptions, look for things like industry averages, market trends, and comparisons with similar ventures. You should already have a substantial amount of this data from your industry and market research.

Pro Forma Income Statements

The income statement , also known as the profit and loss statement , is a statement that shows the projections of your venture’s income and expenses over a fiscal year. On the income statement, you will detail your revenue and sources of revenue based on the assumptions you have made. You will also detail your anticipated expenses and use these to estimate your net income.

The typical income statement includes:

  • Revenue —  the total amount of sales, or revenue, projected to be brought in by your business.
  • Cost of Goods Sold —  the total direct cost of producing your product or delivering your service.
  • Gross Margin —  the difference between revenue and cost of goods sold.
  • Operating Expenses —  this section of your income statement details all of the expenses associated with operating your business. Common operating expenses might include rent, utilities, office
  • expenses, salary expenses, and marketing and advertising expenses, among others.
  • Total Operating Expenses —  the total of your operating expenses, excluding interest, depreciation, and taxes.
  • Operating Income —  the difference between your gross margin and operating expenses.
  • Interest, Depreciation, and Taxes —  this section of your income statement lists your non-operating expenses- expenses such as interest, depreciation, amortization, and taxes.
  • Net Profit —  the total of how much you actually made. This is calculated by subtracting interest, depreciation, and taxes from your operating income.

Pro Forma Cash Flow Statements

The cash flow statement is a financial statement that shows when and where cash (and cash equivalents) flow in and out of your venture. This tells you how much cash you will have on hand at any single point in time.

  • Cash from Operating —  Cash flowing into and out of your venture from operating, beginning with “cash on hand.” Cash flowing into your venture from operating includes cash from sales, payments from credit sales, investment income, and any other types of cash income related to operations. Cash flowing out of your venture from operations, your expenses, includes costs of raw goods, materials, inventory, salary expenses, office expenses, marketing and advertising expenses, rent, interest, taxes, insurance, or any other expenses that are paid by the venture.
  • Capital Cash Flow —  Cash flow, in or out of the venture, for capital assets such as the purchase or sale of fixed assets.
  • Cash from Financing —  Cash flow from financing includes cash flowing in or out of your venture relating to venture financing activities. Inflows of cash from financing include the investments by founders or owners, any loans taken out during the period, or the issuance of any equity. The outflow of cash from financing may include the payment of the principal of any loans, along with the repurchase of any outstanding equity.

Pro Forma Balance Sheet

The balance sheet is a financial statement that balances a venture's finances at a specific point in time. It describes how much the company is worth. The balance sheet uses the accounting equation: assets = liabilities + equity . In fact, these are the main components of the balance sheet:

  • Assets —  Resources that hold economic value. A business's assets include current assets and fixed assets. Current assets are resources that can be accessed in the short term. These include cash, accounts receivable, inventory, and other currently available resources. Fixed assets are resources that are intended for long-term use but hold economic value. These include land and buildings, machinery and equipment, furniture and fixtures, vehicles, and other fixed resources.
  • Liabilities —  What the business owes. Like assets, a business’s liabilities are also current liabilities and long-term liabilities. Current liabilities are liabilities that are due within 12 months. Current liabilities include accounts payable, loans, and taxes. Long-term liabilities are liabilities that are due after one year. These include long-term loans, notes, and other long-term debts.
  • Equity —  What the owners or shareholders own. Equity is also composed of two parts: Capital and Retained Earnings. Retained earnings is the amount of profit that has been retained by the company over the life of the venture. Capital earnings , then, is what’s left. It is what has been invested. For new ventures, this may be the founder’s or early investors’ initial investments. For larger corporations, this would be the value of their shares of stock.

Break-Even Analysis

The break-even analysis shows you how much you have to sell before you break even. The break-even analysis uses fixed and variable costs in order to determine the sales volume you have to attain to reach a break-even point. This is the point where your sales volume covers both your fixed costs and your variable costs.

The break-even point is most often expressed as a number of units. You can calculate the break-even point by dividing fixed cost by the average profit per unit (average price per unit minus the variable cost).

Break-Even Point = Fixed Costs/ Profit Per Unit (Avg. Price - Avg. Variable Costs)

You can also calculate the break-even point in terms of $ of sales. To calculate the break-even point in $ of sales, you can divide total fixed costs for the period by the contribution margin ratio (net sales minus total variable cost / net sales).

Break-Even Point ($ of Sales) = Fixed Costs / Contribution Margin Ratio Contribution Margin Ratio = (Net Sales - Total Variable Cost) / Net Sales

Startup/Funds Required

If you are writing your business plan for the purpose of seeking funding, you should conclude your business plan by describing the investment opportunity.

With your financial projections in place, you will now be able to determine the amount of startup capital or investment you require.

This is because the funding you need is highly dependent on your profit and loss, cash flow, and break-even point. With well-researched assumptions and the evidence to back them up, you are ready to make the case that your business is worth the investment and will be able to pay it back or reward investors in the future.

In this section of the business plan, you will need to explain the amount of funding you are requesting as well as describe what those funds will be used for. The startup funding request will need to cover all expenses (maybe even your own personal expenses) at least until you reach your break-even point.

Business Plan Appendices (Optional)

If you have additional evidence to support your business idea, your business model, or your ability to achieve your goals and meet your financial objectives, you may want to consider including it as an appendix to your business plan.

Additional / Optional Evidence

Owners’ Resumes —  One thing you may want to consider including in your business plan is the resume for each owner. Investors often invest as much in the startup team as they do in the idea itself. Illustrations of Product —  Another helpful appendix is pictures or illustrations of your product. These are especially helpful for new products or those which are difficult to depict with words. Storyboard of Customer Experience — If your business is a service business, you could also consider including a storyboard depicting your customer’s experience. Customer Survey Results — You can also include any market research that you have conducted in an appendix. Showing that you have solicited feedback from real customers or potential customers provides further credence to your venture and venture idea.

Develop Your Business Idea

Before writing your business plan, it is important to take some time to develop your business idea .

If you are starting a new company, there are likely many details of the venture that have not been fully worked through. If you already have an existing venture, the following tools can also be useful in evaluating your business model:

  • A three-sentence business plan

The Lean Canvas

The business model canvas, three-sentence business plan.

An easy place to start is with a three-sentence business plan . The three-sentence business plan is easy to construct, and consists of three parts:

  • your product or service
  • your market and marketing
  • your revenue model.

Your Product or Service

The first sentence of your business plan clearly yet simply states your business's primary product or service. This includes the what and the where.

Example: “CoffeeMe is an upscale bakery and coffee shop specializing in imported coffees and international delicacies that will be located in downtown Atlanta.”

Your Market(ing)

The second sentence of your three-sentence business plan describes who your target market is and how you will promote to them.

Example: “CoffeeMe’s target market is urban professionals living and working in downtown Atlanta, marketed and promoted through traditional advertising, company partnerships, and social media.”

Your Revenue Model

The third sentence of your three-sentence business plan explains your revenue model. How will you make money?

Example: “CoffeeMe’s revenue model includes one-time retail sales as well as a unique subscription model featuring all-you-can-drink coffee for subscribers.”

Put it all together, and you have your three-sentence business plan:

Example: “CoffeeMe is an upscale bakery and coffee shop specializing in imported coffees and international delicacies that will be located in downtown Atlanta. CoffeeMe’s target market is urban professionals living and working in downtown Atlanta, marketed and promoted through traditional advertising, company partnerships, and social media. Our revenue model includes one-time retail sales as well as a unique subscription model featuring all-you-can-drink coffee for subscribers.”

Another useful tool for developing your business idea is the Lean Canvas . The Lean Canvas takes a problem-solution approach to helping you plan your business, focusing on the problems you are solving for your customers.

The Lean Canvas helps you describe and visualize your problem, solution, customers, value proposition, key performance indicators, and competitive advantage.

The steps to complete the Lean Canvas are:

  • Define your target customers or users
  • List the problems you are solving for them and how they are currently solving those problems today
  • Describe your solution
  • Explain your unique value proposition
  • Describe your revenue streams
  • Depict how you will reach customers
  • Define the key metrics that will tell if you are doing well
  • Detail your cost structure
  • Explain your unfair advantage

The Lean Canvas, created by Ash Maurya, and licensed under Creative Commons Attribution-Share Alike 3.0 Unported License: https://leanstack.com/lean-canvas

The Business Model Canvas helps you describe and visualize the key aspects of your venture including your customers, value proposition, infrastructure, and revenue and cost models.

If you have already completed a Lean Canvas, you will already have several of the central parts of the Business Model Canvas complete.

The steps to complete the Business Model Canvas are:

  • Explain your value proposition
  • Describe how you interact with customers
  • List the key activities that you will need to do to deliver on your value proposition
  • List the key assets that you will need to deliver on your value proposition
  • Describe the key partnerships that you will need to put in place to deliver on your value proposition

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Start » business ideas, how to write a great business plan.

A business plan is a living, breathing document. We explain why you should write one and when you'll know it's time to update it.

 Business plan in notebook on a table

One of the cornerstones of launching a new business is writing a business plan. The plan is a roadmap to a business’s goals and outlines the steps to achieve them. The plan also serves as a sort of resume to put in front of loan officers, investors and partners to secure funding. Before you start plotting out your future, it’s important to think about all the components of a good business plan and why you want to have one.

To help you understand how to write a business plan, this guide will:

  • Explain why writing a business plan is important
  • Talk about when to write a plan
  • Outline what should be included in your business plan
  • Discuss different types of business plans and audiences for your plan
  • Talk about updating your business plan

Why you should write a business plan

There is a school of thought in the startup community that making mistakes and learning from them without a long-term plan in place is beneficial to a business, but there are certain instances in which a business plan is a necessity. One of them is securing financing.

If you need financing, a lender or investor will want to see how their money will be spent and how they’ll be paid back. A Palo Alto Software survey of 2,877 business owners found that of the 995 respondents who said they had a business plan, 36 percent secured a loan. Only 18 percent of the business that had not completed a business plan were able to secure a loan. The same held true for investments. Of those with a business plan, 36 percent secured investment capital compared to only 18 percent of those without a plan. While the business plan itself might not have been the only factor involved (for example, owners who completed a plan might be better organized), the survey also found that of those with a business plan, 64 percent experienced business growth, compared to 43 percent without a plan.

A business plan is certainly far from the only requirement to get a loan or investment, but it’s a good way to stand apart from the pack. It’s especially useful for newer businesses who don’t have the financial or credit history most lenders are looking for. Even the best business plan, though, won’t save a traditional loan application if you have a really poor credit score.

At the end of the day, you want to give your business the best chance of survival. The risks are still quite high and many new companies don’t make it. According to the most recent data provided by the Bureau of Labor Statistics , 56.3 percent of companies formed in 2011 were still in business five years later.

A business plan can give you a leg up on staying in business and launching a sustainable business to begin with. People who write formal business plans are 16 percent more likely to create viable businesses compared to almost identical entrepreneurs who don’t have a plan.

Defining your goal is a good place to start with your business plan. You should also determine the audience for your plan to guide you on what to include. Whether you need outside funding and how much business experience you have will factor into your decisions.

When to write a business plan

There are no absolutes when it comes to when you should write a business plan. Many people will create a plan right from the start to help them hash out their business idea. That’s a good option for most, since the plan can help clue you in on whether your idea has potential. Either way, be ready to revise your plan—frequently.

Attempting to write a business plan is an easy way to expose what you don’t know and should research, whether that be the product itself, the industry you want to enter, or what your competition and market looks like.

But, there are benefits to writing a plan even if your business is already up and running. A plan can help you develop your ideas on where the company is headed and what’s next for you in terms of products, services or even marketing endeavors. This is also a great way to set long- and short-term goals. And, of course, it’s useful for attracting funding if you need to grow your business or smooth out cash flow issues.

However, your business isn’t operating in a vacuum. You’ll need to make amendments, updates and, on top of that, your projections will need to be revised with new data. A business plan should be a detailed plan for a year, but also be able to broadly account for the next five years of your company’s future.

What to include in a business plan

Writing a business plan can seem overwhelming and it may be tempting to cut some of the sections. What your business plan looks like is largely dependent on your audience. For example, if the idea is to attract investors, document everything. Cash flow, expenses, projections—make a plan as detailed as possible to show due diligence without overburdening the reader.

If you are going to put in the work to build a business plan, make it work for different scenarios. Make a shorter version for angel investors and a longer version for the bank. And, if it’s to inform employees about where you see the business going, make sure the information is relevant to them. Your business plan should make it easy for the intended reader to see how being involved in the business relates to them, and to compel them to take a positive action.

Your business plan should make it easy for the intended reader to see how being involved in the business relates to them.

When to update your business plan

A business plan is a living document. That means you should update your plan at least once a year, though, in many cases, it may be beneficial to update it more often than that. This will also help you evaluate if you’re on track with the goals in your five-year plan, and also serve as a measurement of your successes or shortcomings. Regardless, always review your plan before you send it to someone new.

You may want to update your plan if your competitors change their prices or products, potentially causing you to reevaluate your own products and pricing. Sudden changes in the market, the economy or new regulations could also require you to update the projections in your business plan, as are relationship changes—i.e., you have a new vendor or supplier, or your terms or contracts have changed with those groups.

Of course the major reason to overhaul your business plan is if you are looking for a new round of financing or are ready to plot a new course for your company.

Creating a thoughtful and detailed business plan ensures that you will have a useful tool in helping launch or maintain a successful business, and updating it should be a fluid process.

See our Step-by-Step Guide to Writing a Business Plan

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How to Write a Business Plan in 2023 [Examples Included]

who should prepare a business plan

Table of contents

So you have come up with a business idea that will turn your company into a Forbes 500 enterprise? Sounds great!

However, you are going to need much more than an idea. You will need to do some comprehensive research, create operational standpoints, describe your product, define your goals, and pave out a road map for future growth.

In other words, you are going to need a business plan.

A business plan is a document that precisely explains how you are going to make your startup a success. Without it, your chances of attracting funding and investments significantly decrease.

Do you want to learn how to create a winning business plan that will take your company to the next level? We created a guide that will help you do just that.

Let’s dive in.

What Is a Business Plan?

Why and when do you need a business plan, types of business plans (what to include in each).

  • How Do You Write a Business Plan?

Best Practices for Writing a Winning Business Plan

Business plan examples.

  • Monitor the Performance of Your Business with Databox

marketing_overview_hubspot_ga_dashboard_databox

A business plan is a comprehensive document that defines how a business will achieve its goals. It is essentially a road map for growth that includes operational standpoints from all the key departments such as marketing, financial, HR, and others.

Startups use business plans to describe who they are, what they plan to do, and how they plan to achieve it. This is an extremely valuable document for attracting investors.

However, they are valuable for the company members as well. A good business plan keeps executive teams on the same page regarding the strategies they should implement to achieve their set objectives.

Related : Reporting to Investors: 6 Best Practices to Help Increase Funding

While business plans are especially useful for startups, each business should include them. In the best-case scenario, this plan will be updated from time to time and reviewed whether the goals of the company have been met.

The main things that investors want to check out in the business plan are:

  • Product-market fit – Have you researched the market demand for your products and services?
  • Team efficiency – Does your startup have devoted professionals that will work on achieving your goals?
  • Scalability – How probable is growth in sales volumes without proportional growth or fixed costs?

An organized business plan is essentially a blueprint of your goals and it showcases your abilities as an entrepreneur.

Related : Business Report: What is it & How to Write a Great One? (With Examples)

If you want to persuade venture capitalists and banking institutions to invest in your startup, you won’t be able to do it without a solid business plan.

A business plan is helpful in two ways – it allows you to focus on the specific goals you set for the future and it provides external parties with evidence that you have done your research in advance.

But don’t just take our word for it – here are some of the things that researchers from Bplans found out when they were analyzing the benefits of business plans with the University of Oregon.

  • Companies that use business plans have recorded a 30% faster growth compared to those that didn’t use them.
  • Getting investments and loans is twice as likely to happen with the help of business plans.
  • There is a 129% increased chance for entrepreneurs to go past the ‘startup’ phase through business plans.

You should create a business plan before you decide to quit your regular job. It can help you realize whether you are ready or not.

Also, creating a business plan is helpful when:

  • You want to attract investments or funding from external parties
  • You want to find a new partner or co-founder
  • You want to attract talented professionals to join your startup
  • You need to change things up due to the slow growth

While creating a business plan is an important step, you first have to know how to differentiate all the different types. This will help you choose the one that is most suitable for your business.

Here are the most common types of business plans and what you should include in each.

One-Pager Business Plan

Startup business plan, internal business plan, strategic business plan, feasibility business plan.

The one-pager is a business plan that only includes the most important aspects of your business. It is essentially a simplified version of a traditional business plan.

When creating the one-pager business plan, your primary focus should be on making it easily understandable.

Since this business plan is rather short, you should avoid using lengthy paragraphs. Each section should be around 1-2 sentences long.

The things you should include in a one-pager business plan are:

  • The problem – Describe a certain problem your customers have and support the claim with relevant data.
  • The solution – How your products/services can solve the issue.
  • Business model – Your plan on how to make money. Include production costs, selling costs, and the price of the product.
  • Target market – Describe your ideal customer persona. Start with a broad audience and narrow it down by using TAM, SAM, and SOM models. This lets investors in on your thought process. To understand these models better, check out, for example, the importance of proper TAM evaluation for B2B startups .
  • Competitive advantage – How are you different from your competitors?
  • Management team – Include your business’s management structure.
  • Financial summary – This part should revolve around the most significant financial metrics (profit, loss, cash flow, balance sheet, and sales forecast).
  • Required funding – Define how much money you need to make your project a success.

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  • Marketing Performance KPIs . Tracking the number of MQLs, SQLs, New Contacts and similar will help you identify how your marketing efforts contribute to sales.
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Step 1: Get the template 

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Step 3: Watch your dashboard populate in seconds.

Related : Check out our comprehensive guide on writing a marketing plan report .

New businesses use startup business plans to outline their launching ideas and strategies to attract funding and investment opportunities. When creating startup business plans, you should primarily focus on the financial aspect and provide evidence that supports it (e.g. market research).

These are some of the main things that should be included:

  • Vision statement – Explain your vision for the company and include the overall business goals you will try to achieve.
  • Executive summary – A quick overview of what your company is about and what will make it successful. Make sure to include your products/services, basic leadership information, employees, and location.
  • Company description – A detailed overview of your company. Talk about the problems you will solve and be specific about customers, organizations, and growth plans. This is the place where you should state your business’s main advantages.
  • Market Analysis – Show investors that you have a good understanding of your industry and target market by providing a detailed market analysis. Try to point out certain trends, themes, or patterns that support your objective.
  • Organization and management – This section explains the structure and the management hierarchy. Also, describe the legal structure of your business.
  • Service or product line – Go into detail about the products and services you are going to sell. Explain the benefits they bring and share your intellectual property plans.
  • Marketing and sales – Talk about your marketing strategy and describe how you plan to attract new customers.
  • Financial projections – This section should be about convincing your readers why the business will be a financial success. Create a prospective financial outlook for the next few years and it includes forecasts.

An internal business plan is a document that specifically focuses on the activities within your company. While external business plans focus on attracting investors, internal business plans keep your team aligned on achieving goals.

Related : Internal vs. External Reporting: What Are the Differences?

This business plan can differentiate based on how specific you want it to be. For example, you can focus on a specific part of the business (e.g. financial department) or on the overall goals of the whole company.

Nonetheless, here are some things that should universally be included in all internal business plans:

  • Mission statement – Focus on the practical, day-to-day activities that your employees can undertake to achieve overall objectives.
  • Objectives – Provide specific goals that you want your company to achieve. Make the objectives clear and explain in which way they can be reached. Focus more on short-term objectives and set reasonable deadlines.
  • Strategies – Talk about the general activities that will help your team reach the set objectives. Provide research that will describe how these strategies will be useful in the long term.
  • Action plans – These plans revolve around particular activities from your strategy. For example, you could include a new product that you want to create or a more efficient marketing plan.
  • Sustainability – This refers to the general probability of achieving the goals you set in the internal report. Sometimes, plans may seem overly ambitious and you are going to have to make amends with certain things.

A strategic business plan is the best way to gain a comprehensive outlook of your business. In this document, forecasts are examined even further and growth goals tend to be higher.

By creating a strategic business plan, you will have an easier time aligning your key stakeholders around the company’s priorities.

Here is a quick overview of what a strategic business plan should include:

  • Executive summary – Since strategic business plans are generally lengthy, not all executives will have time to go through it. This is why you should include a quick overview of the plan through an executive summary, you can also create an executive summary template to make the step easily repeatable.
  • Vision statement – Describe what you wish to achieve in the long term.
  • Company overview – This refers to past achievements, current products/services, recent sales performances, and important KPIs.
  • Core values – This section should provide an explanation of what drives the business to do what it does.
  • Strategic analysis of internal and external environments – Talk about the current organizational structure, mission statements, and department challenges.
  • Strategic objectives – Go into detail about the short-term objectives your team should reach in a specific period. Make sure the objectives are clear and understandable.
  • Overall goals – This section should include operational goals, marketing goals, and financial goals.

A feasibility business plan is also known as a feasibility study. It essentially provides a foundation for what would be a full and comprehensive business plan. The primary focus of a feasibility plan is research.

The things you should include in a feasibility plan are:

  • Product demand – Is there a high demand for your product? Would customers be interested in buying it?
  • Market conditions – Determine the customer persona that would be interested in buying your products. Include demographic factors.
  • Pricing – Compare your desired price with the current pricing of similar products. Which price would make your service profitable?
  • Risks – Determine the risks of launching this new business.
  • Success profitability – Is there a good way to overcome the risks and make your company profitable?

How Do You Write a Business Plan Report?

As we explained in the previous heading, there are a few different types of business plan. Depending on the audience you are referring to, the language you use in the plan should be adjusted accordingly.

Nonetheless, there are certain key elements that should be included in all business plans, the only thing that will vary is how detailed the sections will be.

Include these elements in your business plan.

Executive summary

Company description, market opportunity and analysis, competitive landscape, target audience, describe your product or service, develop a marketing and sales strategy, develop a logistics and operations plan, financial projections, explain your funding request, compile an appendix for official documents.

An executive summary is a quick overview of the document as a whole that allows investors and key stakeholders to quickly understand all the pain points from the report.

It is the best way to layout all the vital information about your business to bank officials and key stakeholders who don’t have the time to go through the whole business plan.

If you summarize the sections well, the potential investors will jump into the sections they are most interested in to acquire more details.

You should write the executive summary last since you will then have a better idea of what should be included.

A good executive summary answers these questions:

  • Who are you?
  • What do you sell?
  • How profitable is it?
  • How much money do you need?

This section of the business plan aims to introduce your company as a whole. The things you include in the company description can vary depending on if you are only starting a business or you already have a developed company.

The elements included in this section are:

  • Structure and ownership – Talk about who the key shareholders in your company are and provide a full list of names. Also, mention details such as where the company is registered and what the legal structure looks like. In most countries, this is a legal requirement for AML regulations.
  • History – This segment is if you already have an existing company. Use this section to show your credibility. Include company milestones, past difficulties, and a precise date for how long your company has been operating.
  • Objectives – Describe the overall objectives of your company and how you plan to reach them.

Market analysis refers to creating your ideal customer persona and explaining why they would be interested in buying your products.

Market opportunities are the gaps that you found in the current industries and creating a way for your product to fill those gaps.

The most important step in this section is to create a target market (persona) through demographic factors such as location, income, gender, education, age, profession, and hobbies.

Make sure that your target market isn’t too broad since it can put off potential investors.

A good idea is to also include a detailed analysis of your competitors – talk about their products, strengths, and weaknesses.

Related : 12 Best Tools Marketers Use for Market Research

Although you may include a competitive analysis in the market analysis section, this segment should provide a more detailed overview.

Identify other companies that sell similar products to yours and create a list of their advantages and disadvantages. Learning about your competitors may seem overwhelming, but it’s an indispensable part of a good business plan.

Include a comparison landscape as well that defines the things that set you apart from the competitors. Describe the strengths of your product and show which problems it could solve.

Related : How to Do an SEO Competitive Analysis: A Step-by-Step Guide

Use the target audience section to fully describe the details of your ideal customer persona. Include both demographic and psychographic factors.

Ask yourself:

  • What are the demographic characteristics of the people who will buy my product?
  • What are their desires?
  • What makes my product valuable to them?

Make sure to answer all of these questions to get in the mindset of your customers.

If you need more details on how to identify your target audience , check our full expert guide.

When talking about your products and services, be as precise as possible. Mention your target audience and the marketing channels you use for targeting this audience.

This section should reveal the benefits, life cycle, and production process of your products/services. Also, it is a good idea to include some pictures of your products if possible.

When describing your products, you should highlight:

  • Unique features
  • Intellectual property rights
  • What makes the product beneficial

Marketing is the blood flow to your business’s body. Without a good marketing and sales strategy, the chances of your product succeeding are very slim.

It’s always best to already have a marketing plan in place before launching your business. By identifying the best marketing channels, you will show your investors that you researched this topic in detail.

Some of the things you should include are:

  • Reach – Explain why a specific channel will be able to reach your target market
  • Cost – Is the marketing strategy going to be cost-effective? How much money do you plan on spending on the strategy?
  • Competition – Are your competitors already using this channel? If so, what will make your product stand out?
  • Implementation – Who will be taking care of the implementation process? Is it a marketing expert? Which suppliers did you reach out to?

Related : 14 Reasons Sales And Marketing Alignment Is Crucial for Skyrocketing Company Growth

This section should explain the details of how exactly your company is going to operate.

These are the things you should include:

  • Personnel plan – Define how many people you plan to employ and their roles. Also, if you plan on increasing your staff, you should explain what would be the cause of that.
  • Key assets – This refers to assets that will be crucial for your company’s operation.
  • Suppliers – Mention who your suppliers will be and what kind of relationship you have with them. Your investors will be interested in this part of the section since they want to be reassured that you are cooperating with respectable counterparties.

The financial projections section is one of the most important parts of your business plan. It includes a detailed overview of expected sales, revenue, profit, expenses, and all the other important financial metrics .

You should show your investors that your business will be profitable, stable, and that it has huge potential for cash generation.

Monthly numbers for the first year are crucial since this will be the most critical year of your company.

At the very least, you should provide:

  • Funding needs
  • Profit-and-loss statement forecast
  • Balance sheet forecast
  • Cash-flow statement forecast

Related : How to Write a Great Financial Report? Tips and Best Practices

When providing the funding request, be realistic. Explain why you need that exact amount of money and where it will be allocated.

Also, create both a best-case and worst-case scenario. New companies don’t have a history of generating profits which is why you will probably have to sell equity in the early years to raise enough capital.

This will be the final section of your business plan. Include any material or piece of information that investors can use to analyze the data in your report. 

Things that could be helpful are:

  • Local permits
  • Legal documents
  • Certifications that boost credibility
  • Intellectual properties or patents
  • Purchase orders and customer contracts

After reading the previous heading, you should have a clear idea of how to write a compelling business plan.

But, just to be sure, we prepared some additional information that can be very helpful.

Here are some of the best practices you should implement in your business plan according to the most successful companies.

Keep it brief

Make it understandable, be meticulous about money, design is important.

Generally, business plans will be around 10-20 pages long. Your main focus should be to cover the essentials that we talked about, but you don’t want to overdo it by including unnecessary and overwhelming information.

In business plan, less is more.

Create a good organizational outline of your sections. This will allow investors to easily navigate to the parts they are most interested in reading.

Avoid using jargon – everyone should be able to easily understand your business plan without having to Google certain terms. 

Make a list of all the expenses your business incurs. Financial information should be maximally precise since it will directly impact the investor’s decision to fund your business idea.

After you wrap up your business plan, take a day off and read it again. Fix any typos or grammatical errors that you overlooked the first time.

Make sure to use a professional layout, printing, and branding of your business plan. This is an important first impression for the readers of the document.

Now you know what a business plan is, how you can write it, and some of the best practices you can use to make it even better.

But, if you are still having certain difficulties coming up with a great business plan, here are a few examples that may be helpful.

HubSpot’s One-Page Business Plan

Bplan’s free business plan template, small business administration free business plan template.

This One-Page Business Plan was created by HubSpot and it can be a great way to start off your business plan journey on the right foot.

You already have fields such as Implementation Timeline, Required Funding, and Company Description created so you will just need to provide your specific information.

HubSpot's One-Page Business Plan

This free business plan template highlights the financial points of the startup. If your primary focus will be your business’ financial plan and financial statements, you can use this template to save up some time.

It can also be useful for making sure everyone in your company understands the current financial health and what they can do to improve it.

BPlan’s Free Business Plan Template

If you need additional inspiration to kick start your own business plan, you can check out this free template by small business administration .

You just have to decide which type of plan you want to create and then review the format of how it should look like.

Small Business Administration Free Business Plan Template

Monitor and Report on the Performance of Your Business with Databox

Tracking your company’s performance is an indispensable part of quality decision-making. It is crucial that you know how your business strategy is performing and whether it needs to be optimized in certain areas.

However, doing this manually will undoubtedly take a hefty amount of your valuable time. You will have to log into all of the different tools, copy-paste the data into your reports, and then analyze it. And this isn’t a one-time thing – you have to do it at least once a month.

Luckily, Databox can lend a helping hand.

By using customizable dashboards from Databox, you will be able to connect data from all your different tools into one comprehensive report. Not only that, but you can also visualize the most important metrics to make your presentation to shareholders immensely more impactful.

Did you spend a lot of time cutting and pasting? Say ‘no more’ to that. You will be able to use that time to better analyze your business performances and monitor any significant changes that occur.

Leave the grueling business reporting process in the past and sign up for a free trial with Databox.

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Prepare a business plan for growth

Planning is key to any business throughout its existence. Every successful business regularly reviews its business plan to ensure it continues to meet its needs. It's sensible to review current performance on a regular basis and identify the most likely strategies for growth.

Once you've reviewed your progress and identified the key growth areas that you want to target, it's time to revisit your business plan and make it a road map to the next stages for your business.

This guide will show how you can turn your business plan from a static document into a dynamic template that will help your business both survive and thrive.

The importance of ongoing business planning

What your business plan should include, drawing up a more sophisticated business plan, plan and allocate resources effectively, use targets to implement your business plan, when and how to review your business plan.

Most potential investors will want to see a business plan before they consider funding your business. Although many businesses are tempted to use their business plans solely for this purpose, a good plan should set the course of a business over its lifespan.

A business plan plays a key role in allocating resources throughout a business. It is a tool that can help you attract new funds or that you can use as a strategy document. A good business plan reveals how you would use the bank loan or investment you are asking for.

Ongoing business planning means that you can monitor whether you are achieving your business objectives . A business plan can be used as a tool to identify where you are now and in which direction you wish your business to grow. A business plan will also ensure that you meet certain key targets and manage business priorities.

You can maximise your chances of success by adopting a continuous and regular business planning cycle that keeps the plan up-to-date. This should include regular business planning meetings which involve key people from the business.

To find out more, see our guides on how to review your business performance and how to assess your options for growth .

If you regularly assess your performance against the plans and targets you have set, you are more likely to meet your objectives. It can also signpost where and why you're going astray. Many businesses choose to assess progress every three or six months.

The assessment will also help you in discussions with banks, investors and even potential buyers of your business. Regular review is a good vehicle for showing direction and commitment to employees, customers and suppliers.

Defining your business' purpose in your business plan keeps you focused, inspires your employees and attracts customers.

Your business plan should include a summary of what your business does, how it has developed and where you want it to go. In particular, it should cover your strategy for improving your existing sales and processes to achieve the growth you desire.

You also need to make it clear what timeframe the business plan covers - this will typically be for the next 12 to 24 months.

The plan needs to include:

  • The marketing aims and objectives , for example how many new customers you want to gain and the anticipated size of your customer base at the end of the period. To find out about marketing strategy, see our guide on how to create your marketing strategy .
  • Operational information such as where your business is based, who your suppliers are and the premises and equipment needed.
  • Financial information , including profit and loss forecasts, cash flow forecasts, sales forecasts and audited accounts.
  • A summary of the business objectives, including targets and dates.
  • If yours is an owner-managed business, you may wish to include an exit plan . This includes planning the timing of your departure and the circumstances, e.g. family succession, sale of the business, floating your business or closing it down.

If you intend to present your business plan to an external audience such as investors or banks, you will also need to include:

  • your aims and objectives for each area of the business
  • details of the history of the business, including financial records from the last three years - if this isn't possible, provide details about trading to date
  • the skills and qualifications of the management involved in your business
  • information about the product or service, its distinctiveness and where it fits into the marketplace

If your business has grown to encompass a series of departments or divisions, each with its own targets and objectives, you may need to draw up a more sophisticated business plan.

The individual business plans of the departments and separate business units will need to be integrated into a single strategy document for the entire organisation.

This can be a complex exercise but it's vital if each business unit is to tread a consistent path and not conflict with the overall strategy.

This is not just an issue for large enterprises - many small firms consist of separate business units pursuing different strategies.

To draw up a business plan that marries all the separate units of an organisation requires a degree of co-ordination. It may seem obvious, but make sure all departments are using the same planning template.

Objectives for individual departments

It's important for each department to feel that they are a stakeholder in the plan. Typically, each department head will draft the unit's business plan and then agree on its final form in conjunction with other departments.

Each unit's budgets and priorities must be set so that they fit in with those of the entire organisation. Generally, individual unit plans are required to be more specific and precisely defined than the overall business plan. It's important that the objectives set for business units are realistic and deliverable. However complex it turns out to be, the individual business unit plan needs to be easily understood by the people whose job it is to make it work. They also need to be clear on how their plan fits in with that of the wider organisation.

The business plan plays a key role in allocating resources throughout a business so that the objectives set in the plan can be met.

Once you've reviewed your progress to date and identified your strategy for growth, your existing business plan may look dated and may no longer reflect your business' position and future direction.

When you are reviewing your business plan to cover the next stages, it's important to be clear on how you will allocate your resources to make your strategy work.

For example, if a particular business unit or department has been given a target, the business plan should allocate sufficient resources to achieve it. These resources may already be available within the business or may be generated by future activity.

In practice this could mean recruiting more office staff, spending more on marketing or buying more supplies or equipment. You may want to provide funds through current cash flow, generating more profit or seeking external funding. In general, it is always better to fund future growth through revenue generation.

However, you should do some precise budgeting to decide on the right level of resourcing for a particular unit or department. It's important that resources are prioritised, so that areas of a business which are key to delivering the overall aims and objectives are adequately funded. If funding isn't available this may involve making cutbacks in other areas.

A successful business plan should incorporate a set of targets and objectives.

While the overall plan may set strategic goals, these are unlikely to be achieved unless you use SMART objectives or targets, i.e. S pecific, M easurable, A chievable, R ealistic and T imely.

Targets help everyone within a business understand what they need to achieve and when they need to achieve it.

You can monitor the performance of employees, teams or a new product or service by using appropriate performance indicators . These can be:

  • sales or profit figures over a given period
  • milestones in new product development
  • productivity benchmarks for individual team members
  • market-share statistics

Targets make it clearer for individual employees to see where they fit within an organisation and what they need to do to help the business meet its objectives. Setting clear objectives and targets and closely monitoring their delivery can make the development of your business more effective. Targets and objectives should also form a key part of employee appraisals, as a means of objectively addressing individuals' progress.

Once you've drawn up your new business plan and put it into practice, it needs to be continually monitored to make sure the objectives are being achieved. This review process should follow an assessment of your progress to date and an analysis of the most promising ways to develop your business. To find out more about these stages see our guides on how to review your business performance and how to assess your options for growth .

This process is called the business plan cycle . In some businesses, the cycle may be a continuous process with the plan being regularly updated and monitored. For most businesses, an annual plan - broken down into four quarterly operating plans - is sufficient. However, if a business is heavily sales driven, it can make more sense to have a monthly operating plan, supplemented where necessary with weekly targets and reviews.

It's important to keep in mind that major events in your business' target marketplace (e.g. competitor consolidation, acquisition of a major customer) or in the broader environment (e.g. new legislation) should trigger a review of your strategic objectives.

Regardless of whether or not there are fixed time intervals in your business plan, it must be part of a rolling process, with regular assessment of performance against the plan and agreement of a revised forecast if necessary.

Original document, Prepare a business plan for growth , © Crown copyright 2009 Source: Business Link UK (now GOV.UK/Business ) Adapted for Québec by Info entrepreneurs

Our information is provided free of charge and is intended to be helpful to a large range of UK-based (gov.uk/business) and Québec-based (infoentrepreneurs.org) businesses. Because of its general nature the information cannot be taken as comprehensive and should never be used as a substitute for legal or professional advice. We cannot guarantee that the information applies to the individual circumstances of your business. Despite our best efforts it is possible that some information may be out of date.

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who should prepare a business plan

14 Reasons Why You Need a Business Plan

Female entrepreneur holding a pen and pointing to multiple sticky notes on the wall. Presenting the many ways having a business plan will benefit you as a business owner.

10 min. read

Updated October 27, 2023

There’s no question that starting and running a business is hard work. But it’s also incredibly rewarding. And, one of the most important things you can do to increase your chances of success is to have a business plan.

A business plan is a foundational document that is essential for any company, no matter the size or age. From attracting potential investors to keeping your business on track—a business plan helps you achieve important milestones and grow in the right direction.

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A business plan isn’t just a document you put together once when starting your business. It’s a living, breathing guide for existing businesses – one that business owners should revisit and update regularly.

Unfortunately, writing a business plan is often a daunting task for potential entrepreneurs. So, do you really need a business plan? Is it really worth the investment of time and resources? Can’t you just wing it and skip the whole planning process?

Good questions. Here’s every reason why you need a business plan.

  • 1. Business planning is proven to help you grow 30 percent faster

Writing a business plan isn’t about producing a document that accurately predicts the future of your company. The  process  of writing your plan is what’s important. Writing your plan and reviewing it regularly gives you a better window into what you need to do to achieve your goals and succeed. 

You don’t have to just take our word for it. Studies have  proven that companies that plan  and review their results regularly grow 30 percent faster. Beyond faster growth, research also shows that companies that plan actually perform better. They’re less likely to become one of those woeful failure statistics, or experience  cash flow crises  that threaten to close them down. 

  • 2. Planning is a necessary part of the fundraising process

One of the top reasons to have a business plan is to make it easier to raise money for your business. Without a business plan, it’s difficult to know how much money you need to raise, how you will spend the money once you raise it, and what your budget should be.

Investors want to know that you have a solid plan in place – that your business is headed in the right direction and that there is long-term potential in your venture. 

A business plan shows that your business is serious and that there are clearly defined steps on how it aims to become successful. It also demonstrates that you have the necessary competence to make that vision a reality. 

Investors, partners, and creditors will want to see detailed financial forecasts for your business that shows how you plan to grow and how you plan on spending their money. 

  • 3. Having a business plan minimizes your risk

When you’re just starting out, there’s so much you don’t know—about your customers, your competition, and even about operations. 

As a business owner, you signed up for some of that uncertainty when you started your business, but there’s a lot you can  do to reduce your risk . Creating and reviewing your business plan regularly is a great way to uncover your weak spots—the flaws, gaps, and assumptions you’ve made—and develop contingency plans. 

Your business plan will also help you define budgets and revenue goals. And, if you’re not meeting your goals, you can quickly adjust spending plans and create more realistic budgets to keep your business healthy.

What’s your biggest business challenge right now?

  • 4. Crafts a roadmap to achieve important milestones

A business plan is like a roadmap for your business. It helps you set, track and reach business milestones. 

For your plan to function in this way, your business plan should first outline your company’s short- and long-term goals. You can then fill in the specific steps necessary to reach those goals. This ensures that you measure your progress (or lack thereof) and make necessary adjustments along the way to stay on track while avoiding costly detours.

In fact, one of the top reasons why new businesses fail is due to bad business planning. Combine this with inflexibility and you have a recipe for disaster.

And planning is not just for startups. Established businesses benefit greatly from revisiting their business plan. It keeps them on track, even when the global market rapidly shifts as we’ve seen in recent years.

  • 5. A plan helps you figure out if your idea can become a business

To turn your idea into reality, you need to accurately assess the feasibility of your business idea.

You need to verify:

  • If there is a market for your product or service
  • Who your target audience is
  • How you will gain an edge over the current competition
  • If your business can run profitably

A business plan forces you to take a step back and look at your business objectively, which makes it far easier to make tough decisions down the road. Additionally, a business plan helps you to identify risks and opportunities early on, providing you with the necessary time to come up with strategies to address them properly.

Finally, a business plan helps you work through the nuts and bolts of how your business will work financially and if it can become sustainable over time.

6. You’ll make big spending decisions with confidence

As your business grows, you’ll have to figure out when to hire new employees, when to expand to a new location, or whether you can afford a major purchase. 

These are always major spending decisions, and if you’re regularly reviewing the forecasts you mapped out in your business plan, you’re going to have better information to use to make your decisions.

7. You’re more likely to catch critical cash flow challenges early

The other side of those major spending decisions is understanding and monitoring your business’s cash flow. Your  cash flow statement  is one of the three key financial statements you’ll put together for your business plan. (The other two are your  balance sheet  and your  income statement  (P&L). 

Reviewing your cash flow statement regularly as part of your regular business plan review will help you see potential cash flow challenges earlier so you can take action to avoid a cash crisis where you can’t pay your bills. 

  • 8. Position your brand against the competition

Competitors are one of the factors that you need to take into account when starting a business. Luckily, competitive research is an integral part of writing a business plan. It encourages you to ask questions like:

  • What is your competition doing well? What are they doing poorly?
  • What can you do to set yourself apart?
  • What can you learn from them?
  • How can you make your business stand out?
  • What key business areas can you outcompete?
  • How can you identify your target market?

Finding answers to these questions helps you solidify a strategic market position and identify ways to differentiate yourself. It also proves to potential investors that you’ve done your homework and understand how to compete. 

  • 9. Determines financial needs and revenue models

A vital part of starting a business is understanding what your expenses will be and how you will generate revenue to cover those expenses. Creating a business plan helps you do just that while also defining ongoing financial needs to keep in mind. 

Without a business model, it’s difficult to know whether your business idea will generate revenue. By detailing how you plan to make money, you can effectively assess the viability and scalability of your business. 

Understanding this early on can help you avoid unnecessary risks and start with the confidence that your business is set up to succeed.

  • 10. Helps you think through your marketing strategy

A business plan is a great way to document your marketing plan. This will ensure that all of your marketing activities are aligned with your overall goals. After all, a business can’t grow without customers and you’ll need a strategy for acquiring those customers. 

Your business plan should include information about your target market, your marketing strategy, and your marketing budget. Detail things like how you plan to attract and retain customers, acquire new leads, how the digital marketing funnel will work, etc. 

Having a documented marketing plan will help you to automate business operations, stay on track and ensure that you’re making the most of your marketing dollars.

  • 11. Clarifies your vision and ensures everyone is on the same page

In order to create a successful business, you need a clear vision and a plan for how you’re going to achieve it. This is all detailed with your mission statement, which defines the purpose of your business, and your personnel plan, which outlines the roles and responsibilities of current and future employees. Together, they establish the long-term vision you have in mind and who will need to be involved to get there. 

Additionally, your business plan is a great tool for getting your team in sync. Through consistent plan reviews, you can easily get everyone in your company on the same page and direct your workforce toward tasks that truly move the needle.

  • 12. Future-proof your business

A business plan helps you to evaluate your current situation and make realistic projections for the future.

This is an essential step in growing your business, and it’s one that’s often overlooked. When you have a business plan in place, it’s easier to identify opportunities and make informed decisions based on data.

Therefore, it requires you to outline goals, strategies, and tactics to help the organization stay focused on what’s important.

By regularly revisiting your business plan, especially when the global market changes, you’ll be better equipped to handle whatever challenges come your way, and pivot faster.

You’ll also be in a better position to seize opportunities as they arise.

  • 13. Tracks your progress and measures success

An often overlooked purpose of a business plan is as a tool to define success metrics. A key part of writing your plan involves pulling together a viable financial plan. This includes financial statements such as your profit and loss, cash flow, balance sheet, and sales forecast.

By housing these financial metrics within your business plan, you suddenly have an easy way to relate your strategy to actual performance. You can track progress, measure results, and follow up on how the company is progressing. Without a plan, it’s almost impossible to gauge whether you’re on track or not.  

Additionally, by evaluating your successes and failures, you learn what works and what doesn’t and you can make necessary changes to your plan. In short, having a business plan gives you a framework for measuring your success. It also helps with building up a “lessons learned” knowledge database to avoid costly mistakes in the future.

  • 14. Your business plan is an asset if you ever want to sell

Down the road, you might decide that you want to sell your business or position yourself for acquisition. Having a solid business plan is going to help you make the case for a higher valuation. Your business is likely to be worth more to a buyer if it’s easy for them to understand your business model, your target market, and your overall potential to grow and scale. 

who should prepare a business plan

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  • Writing your business plan

By taking the time to create a business plan, you ensure that your business is heading in the right direction and that you have a roadmap to get there. We hope that this post has shown you just how important and valuable a business plan can be. While it may still seem daunting, the benefits far outweigh the time investment and learning curve for writing one. 

Luckily, you can write a plan in as little as 30 minutes. And there are plenty of excellent planning tools out there if you’re looking for more step-by-step guidance. Whatever it takes, write your plan and you’ll quickly see how useful it can be.

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Content Author: Tim Berry

Tim Berry is the founder and chairman of Palo Alto Software , a co-founder of Borland International, and a recognized expert in business planning. He has an MBA from Stanford and degrees with honors from the University of Oregon and the University of Notre Dame. Today, Tim dedicates most of his time to blogging, teaching and evangelizing for business planning.

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Table of Contents

  • 6. You’ll make big spending decisions with confidence
  • 7. You’re more likely to catch critical cash flow challenges early

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Why You Should Write a Business Plan

Susan Ward wrote about small businesses for The Balance for 18 years. She has run an IT consulting firm and designed and presented courses on how to promote small businesses.

who should prepare a business plan

To Test the Feasibility of Your Business Idea

To give your new business the best chance of success, to secure funding, to make business planning manageable and effective, to attract investors, frequently asked questions (faqs).

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A business plan  is the blueprint for your business. Starting a business without a business plan is like building a house without a blueprint. Yet, unlike a house, a business isn't static. We often make the mistake of thinking of a business plan as a single document that you put together once when you're starting out and never touch again. But as the business develops, so should its business plan. In fact, any particular business may have multiple business plans as its objectives change.

Writing a business plan is time-consuming, but it's essential if you want to have a successful business that's going to survive the startup phase.

Key Takeaways

  • Writing a business plan reveals how tenable your idea is.
  • Updating and amending a business plan as the business develops and its goals change is vital to your success.
  • A good business plan helps you define your target market, competitive advantage, optimum pricing strategies, and better prepares the business for upcoming challenges.
  • A business plan helps you secure funding and attract new investors.

Writing a business plan is the best way—other than going out and doing it—to test whether an idea for starting a business is feasible. In this sense, the business plan is your safety net. If working through a business plan reveals that your business idea is untenable, it will save you a great deal of time and money.

Often, an idea for starting a business is discarded at the marketing analysis or competitive analysis stage , freeing you to move on to a new (and better) idea.

Unfortunately, many prospective business owners are so convinced that their idea for a product or service is a can't-miss proposition, that they don't take the time to do the necessary research and work through a proper business plan. The more you know about your industry, your prospective customers, and the competition, the greater the likelihood that your business will succeed.

Writing a business plan will ensure that you pay attention to the broad operational and financial objectives of your new business and the small details, such as budgeting and market planning. The process will ultimately make for a smoother startup period and fewer unforeseen problems as your business gets up and running.

The exercise of budgeting and market planning will help you define your  target market , your unique selling proposition, optimum pricing strategies, and outline how you intend to sell and deliver your products to customers. In addition, developing a budget for implementation will assist with determining your startup and operating capital requirements.

According to the Small Business Administration, one of the most-cited reasons why businesses fail is inadequate planning. By starting too soon and without a sufficient plan, your business is setting itself up for failure.

Most new businesses need startup and operating capital to get off the ground. Without a well-developed business plan, there is no chance of getting  debt financing from established financial institutions such as banks or  equity financing  from angel investors.

Established businesses often need money, too, to buy new equipment or property, or because of market downturns. Having an up-to-date business plan gives you a much better chance of getting the money you need to keep operating or expand.

Even an angel investor will want to ensure their money is going to a business that knows what it's doing. The easiest way to prove this is via a well-developed business plan.

Investors and financiers are always looking at the risk of default, and word of mouth is no substitute for written facts and figures in a properly prepared business plan.

A business plan is essential if you're thinking of starting a business, but it's also an important tool for established businesses. Viable businesses are dynamic; they change and grow. Your company's original business plan needs to be revised as you set new goals .

Reviewing the business plan can also help you see what goals have been accomplished, what changes need to be made, or what new directions your company's growth should take.

Whether you want to shop your business to venture capitalists or attract angel investors , you need to have a solid business plan. A presentation may pique their interest, but they'll need a well-written document they can study before they'll be prepared to make any investment commitment.​​​

Be prepared to have your business plan scrutinized. Both venture capitalists and angel investors will want to conduct extensive background checks and competitive analyses to be certain that what's written in your business plan is indeed the case.

What are the sections of a business plan?

A comprehensive business plan should include the following sections:

  • Executive summary
  • Company description
  • Competitor analysis
  • Industry analysis
  • Product and services description
  • Financial data

What is the purpose of a business plan?

A business plan has four main purposes:

  • Tests the feasibility and model of your business idea
  • Attracts investors
  • Sets a plan for growth
  • Identifies capital needs

Small Business Administration. " Selecting a Business That Fits ."

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6 Tips for Creating a Great Business Marketing Plan

E very successful company needs a well-thought-out business plan to outline its course of action. A marketing strategy is one key part of that plan: It spells out critical information, including how a business will distinguish itself from competitors and what the team will aim to achieve.

While marketing plans don't always produce immediate results, they are still a crucial aspect of a business plan and should be given a considerate amount of attention. A complete and effective marketing strategy can reveal opportunities through new audience segments, changes in pricing strategy or by differentiating the brand from the competition.

Here's how to create an effective marketing plan for your business. 

How to develop a business marketing plan

A focused marketing plan sets two goals. The first is to maintain engagement and customer loyalty , and the second is to capture market share within a specific audience segment of your target audience.

Your marketing plan outlines the strategies you'll use to achieve both goals and the specific actions your marketing team will employ, such as the specific outreach campaigns, over which channels they will occur, the required marketing budget and data-driven projections of their success.

Marketing is a science-driven commitment that typically requires months of data to refine campaigns, and an interconnected marketing plan keeps your business committed to its long-term goals. 

All marketing guidelines will circle back to the four P's: product, price, place and promotion. The following tips are starting points that will ingrain the habit of continually returning to these four P's.

1. Create an executive summary.

Marketing campaigns should not be considered individual functions. Marketing is the story of your brand as told to customers; like any narrative, its tone and characters should remain consistent. An executive summary details your marketing goals for the next year and helps tie each campaign together. 

When establishing your marketing goals, they should be specific, measurable, attainable, relevant and time-bound – or SMART. These goals should work together to achieve both internal and external harmony, telling a consistent story that informs customers of your exact message while building on its previous chapters. 

For example, you may set a SMART goal to increase your company's social media traffic by 15% in a 90-day time frame, and plan to achieve this by creating four relevant, informative and high-quality posts per week on each platform, using your company's brand kit. 

2. Identify your target market.

Before you write a marketing plan, you need to find and understand your niche. Ask yourself who the specific demographic is that you're targeting. For example, if your business sells 30-minute meals, then those who work traditional 9-to-5 jobs are likely in your market. Study that group of individuals to understand their struggles and learn how your business can solve the problem.

FYI: Targeting your audience can drastically improve the effectiveness of your marketing efforts and help you avoid wasting resources on fruitless campaigns.

3. Differentiate your brand with inbound marketing.

Inbound marketing utilizes internal tools – such as content marketing, social media activity and search engine optimization (SEO) – to attract a customer's attention primarily through online communication. Content marketing can include informative blog posts, interviews, podcasts with relevant industry figures or supplementary guides on how to best use your product. For example, if you sell cooking supplies, consider posting several fun recipes around the holidays that your tools can help prepare.

Each of these strategies empowers the others in a loop to achieve greater customer attention. A strong content offering can improve your search engine ranking, which brings more people to your website and social pages. You can then share those developed content pieces to that wider audience, who will again improve your search engine rankings. All of this can be done without the expense of a famous endorser or commercial advertising campaign. 

4. Identify competitors that also target your customers.

No matter how original your product or service may be, there is always competition for your target customer's dollar. Small business personnel seldom take the time to study their competitors in-depth or pinpoint companies outside their industry that are just as capable of luring customers away. Knowing who your competitors are, their core competitive advantages, and how they might respond to your offerings – like price cuts or increased communication – helps you devise strategies to combat such losses. 

By seeking out these competitors, you can develop ways to differentiate your business by providing consumers with the things they may be lacking from your competition. Observe how your competitors operate to find ways in which you can stand out and steer your target audience toward your business. 

Did you know? According to SmallBizGenius, 19% of small businesses fail because of their competitors. 

5. State your brand position for your target customers.

Ultimately, your brand – and what it symbolizes for customers – is your strongest advantage. You should be able to write a simple declarative sentence of how you will meet customer needs and beat the competition. The best positioning statements focus on solving a problem for the customer in a way that promotes the best value.

6. Budget the plan. 

When implementing a strategy, consider the marketing budget you will allot. Marketing requires money for various reasons, including paid promotions, marketing software, events and outsourced costs. Consider your budget when creating the plan so that there is money available to spend on marketing tactics to achieve your goals. 

While drafting the plan and evaluating your course of action, note the estimated cost, assets, and time required to achieve the stated goals; this will help when it comes time to set the actual calculated budget. Any goals that you create should be realistically achievable within the budget you have set. 

Key takeaway: When developing your marketing plan, you should know why a customer would use your product, differentiate your brand from competitors, and audit your product offering and message to ensure consistency.

Channels to include in your marketing plan

Once you know the elements of your plan, the next step is to develop the blueprint of how you will reach your target customers. Aside from traditional print and broadcast media, here are three digital marketing channels that many business owners utilize.

Social media

Social media is an essential part of businesses' marketing plans, because every type of customer is on some type of platform – such as Facebook , Twitter or LinkedIn . You may feel overwhelmed at the possibilities, but focus on the sites that can benefit your business the most.

Brett Farmiloe, founder of internet marketing company Markitors, advised companies starting out in social media to get to know their customers and the platforms they use.

"Figure out where your customers are spending their time, and set up shop on those platforms," he told Business News Daily. "Develop a content strategy that can be executed internally, [and then] execute your strategy by posting branded content on your selected platforms."

Though email marketing is not as new as social media marketing, it is an effective and popular choice for small business owners. Companies can implement email marketing techniques in many ways, including newsletters, promotional campaigns and transactional emails. For instance, Mailchimp and Constant Contact help companies manage their email drip campaigns .

Farmiloe added to set your email marketing efforts apart from the others by segmenting your markets.

"Not all subscribers want to receive the same blast," he said. "Smart email marketers take the time to segment subscribers at the outset, and then continue to segment based on subscriber activity. Through segmentation, companies reduce the amount of unsubscribes, increase open rates and, most importantly, increase the amount of actions taken from an email send."

The popularity of smartphones and tablets has changed how companies target consumers. Since people have these devices with them nearly all the time, companies are looking to implement strategies that reach customers on their gadgets.   

"Mobile marketing is interruptive," Farmiloe said. "It's because of this power that a marketer has to let the consumer determine how and when to receive marketing material. That's why almost every app comes with the option to turn notifications on or off. The consumer has to hold the power with mobile marketing."

Key takeaway: Use digital marketing channels – such as social media, email and mobile – to reach customers, but only after researching each channel in depth and developing a strategy to capture consumers' interest. 

Monitoring results

Well-defined budgets, goals and action items – with appropriate personnel assigned to each – can make your marketing plan a reality. Think about how much you're willing to spend, the outcomes you expect and the necessary tasks to achieve those outcomes.

Analytical tools that track customer behavior and engagement rates can serve as a helpful guide for your marketing strategy . Unlike billboards or commercials, digital channels allow you to assess each step of the customer journey and gain insights on the individual patterns and intent of prospects. Intention can soon develop into prediction, empowering your marketing team to develop campaigns that consistently reach target audiences at the right time. 

You can find more tips for measuring your marketing ROI here.

Jordan Beier and Adryan Corcione contributed to the writing and reporting in this article. Source interviews were conducted for a previous version of this article.

Every successful company needs a well-thought-out business plan to outline its course of action. A marketing strategy is

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Seven sections your business plan should have.

Forbes Business Development Council

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Joseph is Director at  Wise Business Plans , a firm helping clients with professionally written business plans, branding, licensing and more.

To someone who’s never done it before, crafting a business plan can seem like a complicated, magical process that regular people are incapable of accomplishing. The finished product looks so complex and informative — who even knows what goes into something like that?

But, in reality, business plans are less like magic and more like baking. Gather the right ingredients, put them together in the proper order, and ta-da! The finished product is a road map for the company’s future success.

With a little help from a professional or the right recipe, even the newest small-business owner will be baking up business plans in no time.

So, what is that recipe for planning perfection? Like bread and pastry, every business plan has some flair of its own, from custom graphic design to unique financial information.

But some sections are universal and absolutely necessary if a business owner wants to be taken seriously by investors and banks.

1. An Executive Summary

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This concise, carefully written, first section of the plan offers an easy-to-follow introduction to the company, its purpose and its framework. This section sums up the information in your plan, so it can be helpful to go back and write it after the rest of the work is completed.

Pro Tip: In the opening statement, explain the business in one or two sentences. Once you have completed your business plan, write the Executive Summary last.

2. Company Overview

List the goods and services the company will provide, the market it will serve, short- and long-term goals for growth and a brief history of the company’s formation and past performance.

Pro Tip: Explain any momentum the company has made to date and future plans.

3. Products & Services

This section allows for a more complete explanation of the kinds of goods or services the business will be selling or providing. Make the descriptions compelling and engaging. 

Pro Tip: List a detailed description of your products or services and their competitive advantages over the competition.

4. Market Analysis

Use this as an opportunity to showcase the research and knowledge company leaders have to bring to the table with regard to the people and entities they hope to serve or sell to. Include information on the industry the company belongs to and the state of the competition locally, nationally and even internationally, if relevant. 

Pro Tip: Check out the census website  for statistics and demographics.

5. Marketing Strategy

How does the business intend to get the word out about what it has to offer? This section should list plans for all expected marketing channels, from traditional advertising to social media outreach efforts.

Pro Tip: The marketing budget and strategy should be a focal point of your plan. This will ultimately drive sales.

6. Organization & Management

This can be broken into separate sections, but both leadership and plans for employees must be addressed. This should include a basic visual “tree” showing the number of employees expected to be hired, as well as the reporting structure for those people. The management portion should contain an introduction to the company’s leaders and their expertise and career achievements. 

Pro Tip: Explain why you and your team are capable of executing the business goals and objectives.

7. Financials

Different kinds of plans will require slightly different financial information. However, every plan should show historical financial data, if available, and sensible projected expenditures and forecasted income. This section should also include an overview of the company’s current financial status.

Pro Tip: Every industry has a set of key performance indicators (KPIs). Benchmark your company against its peers in the market.

It’s a fact that a quality business plan contains complicated information about not only the business being built but also the market and industry the company plans to compete in. Looking at a business plan as a piece-by-piece process, rather than a completed whole, can make creating your own a little less daunting. Including the seven sections listed above is a great starting point for making a plan that will impress any investor or financial institution.

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Reputation Management Starts Before Your First Bad Review — Here's How to Develop a Proactive Crisis Plan Reputation management should not be an afterthought or a reactive measure. Use these tips to prepare for a crisis before it hits.

By Danielle Sabrina • Mar 5, 2024

Key Takeaways

  • Establishing a strong, positive online presence before negative attention arises is crucial and helps set a tone of trust and quality around your brand.
  • Early reputation management provides several strategic advantages, including improved SEO, enhanced trust and credibility, and the opportunity to collect and act on customer feedback.
  • Developing a proactive crisis management plan involves detailed planning, team preparation and the development of protocols that will allow your business to respond quickly and effectively to reputation threats.

Opinions expressed by Entrepreneur contributors are their own.

In an era where a single tweet can go viral and a review can reach millions overnight, the reputation of a business has never been more vulnerable — or more valuable. In the words of Warren Buffett, "It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently." And with the ability to share personal experiences at the touch of a finger, those words have never been more true.

This new age of connectivity has leveled the playing field for consumer opinions, empowering them to share their experiences far and wide. While this can bolster a business's reputation through positive feedback, it also means that a single negative review can have a disproportionate impact.

Traditionally, reputation management has been reactive, a strategy employed to mitigate damage after the fact. However, in a world where information spreads at the speed of light, the most successful businesses are those that adopt a proactive stance on reputation management. This approach mitigates risks and builds a resilient brand capable of withstanding the inevitable challenges of the digital age.

Related: How to Lower the Risks to Your Brand Reputation (and Build an Image that Wins New Business)

Act before the internet's eyes turn critical

Before the internet's eyes turn critical, establishing a strong, positive online presence is crucial. This involves not just a well-designed website but an active and engaging presence across social media platforms, industry forums and professional networks. This is not merely about having a profile but actively engaging with your audience through regular updates, sharing valuable content and participating in industry conversations. The goal is to saturate the digital landscape with positive content about your business, making it the first thing potential customers see.

There's an old saying that you never get a second chance to make a first impression. In the world of online business, this adage rings particularly true. Early positive reviews and glowing testimonials can set a tone of trust and quality around your brand, influencing potential customers' perceptions and decisions from the get-go.

Strategic advantages of early reputation management

SEO benefits: Search engines love fresh, positive content. By populating the internet with favorable articles, blog posts and customer reviews, businesses can enhance their visibility. A robust SEO strategy ensures that when potential customers search for your business, they are met with a chorus of positivity, drowning out any lone voices of dissent that may arise later.

Building trust and credibility: Trust is the currency of the digital marketplace. Establishing a solid reputation early on fosters credibility with potential customers, making them more likely to choose your business over a competitor with a less established online presence. This trust, once built, becomes a shield against the impact of future negative reviews.

Feedback and improvement loop: Engaging with customers for feedback before any negativity arises creates a culture of continuous improvement . By soliciting, listening to and acting on customer feedback, businesses can often preempt negative reviews, turning potentially dissatisfied customers into brand advocates.

Related: Why You Must Monitor Your Online Reputation Before it Hurts You

Preparing for a crisis before it hits

Being prepared for a crisis before it emerges is integral to proactive reputation management. It involves detailed planning, team preparation and the development of protocols that allow a business to respond swiftly and effectively to potential reputation threats. Consider the following when preparing your proactive crisis plan :

Establish a crisis monitoring team: Designate a team responsible for continuously monitoring online channels, news media and social platforms for any signs of emerging crises that could impact your brand.

Develop early warning systems: Utilize social listening tools and set up specific alerts for increased volumes of mentions, sudden spikes in website traffic from forums or news sites, or patterns of negative sentiment that could indicate a brewing crisis.

Communication strategy: Create a comprehensive communication strategy that outlines how to communicate internally to employees and externally to customers, stakeholders and the media. This strategy should include key messages, tone of voice guidelines and the preferred channels for communication.

Scenario planning: Prepare for various crisis scenarios by developing specific action plans. Scenarios might include data breaches, negative press, product recalls or customer service failures. For each scenario, outline the steps to mitigate the issue, including who needs to be informed, how to respond publicly and measures to resolve the situation.

Rapid response framework: Develop a framework for rapid response that enables your team to act quickly once a crisis is identified. This includes templates for press releases, social media posts and FAQs that can be quickly adapted to the specific situation.

Approval processes: Streamline approval processes for crisis communication to ensure that responses are timely but still maintain accuracy and adhere to your brand's values.

Identify key stakeholders: Map out your key stakeholders, including customers, employees, partners, investors and regulators. Understand their concerns and expectations during a crisis.

Tailored communication plans: Develop tailored communication plans for each stakeholder group, addressing their specific needs and concerns. This ensures that all parties receive the right information at the right time, helping to maintain trust and mitigate negative impacts.

Related: 9 Steps for Building a Reputation Management Plan That Wins Customers and Gives You an Edge

Entrepreneur Leadership Network® Contributor

CEO of Society22 PR

Danielle Sabrina is a celebrity publicist and the founder of Society22 PR , an award-winning boutique PR firm. Before founding her agency she started her career on Wall Street at just 19 years old becoming one of the youngest traders in the industry. Known for her media and brand strategy, her results-oriented reputation through the years has gained the trust of many high-profile CEOs, professional athletes, and celebrities making her one of the most sought-after brand and media strategists. Additionally, she was named Female Entrepreneur of the Year, CIO's Top 20 Female Entrepreneur to follow and Entrepreneur Magazine’s expert contributor.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

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I Asked ChatGPT How to Apologize Professionally in an Email — Here’s What I Got

Published: February 28, 2024

Apologizing is hard. Apologizing professionally for a mistake you made at work? Even more challenging.

woman writes a professional apology email

We’ve all had to write an apology email at some point in our careers — whether to a coworker for missing a deadline, to a manager for making an error in a report, or to a customer for delayed shipping.

Learning how to apologize professionally for different scenarios is a skill that everyone should hone.

The hardest part about writing a difficult email is getting started. To help with this, I asked ChatGPT to write a professional apology email for me. I also created my own apology email template to compare.

We’ll take a look at these examples and the elements that go into crafting a sincere and professional apology email.

Download Now: 17 Professional Email Templates

How to Apologize for a Mistake Professionally

What chatgpt wrote for me.

How to Write an Apology Email

Apologizing professionally in an email starts with taking responsibility and ends with outlining a plan of action to remedy the situation.

Whether you’re apologizing to a coworker or writing an apology letter to your customers , follow these steps to ensure your apology is professional and effective.

1. Acknowledge the mistake.

The first step is to address the error and say you’re sorry. Don’t beat around the bush — let the recipient know right away that you’re writing to apologize for your mistake.

Taking responsibility for your role in the situation, whether you’re speaking as an individual or on behalf of a company, shows that you’re accountable and aren’t going to make excuses.

Accountability is closely tied with trust when it comes to building relationships, so lead your email by owning up to your mistake before diving into an explanation.

2. Provide an explanation.

The recipient of your apology email deserves an explanation of why or how an error was made. This step is especially critical when you’re talking to a customer who doesn’t know the inner workings of your business.

Explain what went wrong, but be sure not to make excuses or blame others. Instead, briefly describe what happened and reiterate your responsibility in the scenario.

The recipient doesn’t need to hear a drawn-out story about how the mistake occurred. In my experience, the longer and more detailed your explanation is, the more it sounds like an excuse.

3. Personalize your apology.

An apology email doesn’t have to be stiff. We’re all human, after all. You can remain professional while still letting the person on the other side of the screen know that you’re genuinely sorry for the inconvenience you’ve caused them.

Personalize your apology email by being empathetic and addressing the recipient’s pain points. Empathy is one of the most important soft skills to hone in the workplace, and an apology email is the perfect time to communicate this.

4. Provide a plan of action.

After “How did this happen?” the next question the recipient has is usually, “What are you going to do to fix this?”

Reassure them that you have a plan by outlining clear next steps. Tell them what you’re going to do in the short term (i.e., “get this report to you by EOD today”) and how you plan on avoiding making the same mistake in the future.

Sharing your next steps helps to regain their trust, improve their outlook on you or your brand, and show them that you’re responsible for handling the consequences of your actions.

Everyone has to write an apology email at some point. I was curious to see if ChatGPT could help in this process by writing some emails for me, so I fed it different prompts. The results are below.

1. General Apology Email

I started by asking ChatGPT to write a generic apology email for me. I wanted to gauge how well the chatbot understands these types of email scenarios.

Here’s the first apology email ChatGPT generated:

who should prepare a business plan

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Communicate next steps.

After you apologize and take accountability, let them know what your next steps are. How are you going to rectify the situation? In this scenario, I reassure the recipient that I’m handling the mistake by providing an amended deadline.

By letting them know that I will get the project to them “ by EOD tomorrow,” I’m communicating that I have a plan to make the situation right. This also shows that I’m taking ownership of the mistakes rather than putting the next steps on them.

Saying Sorry the Right Way

There were a few differences between the apology emails ChatGPT generated and the one I wrote. For starters, my apology email was more straightforward. I started my sincere apology right out of the gate and led with empathy.

I also outlined a clear and specific action plan, so the recipient knew what to expect next.

While ChatGPT followed a similar structure, it usually added a lot of unnecessary filler words. In my experience, this weakens the overall message.

If you need to write an apology email to a large audience like your customers or email marketing list, then using ChatGPT can help you figure out what to say faster.

An AI-written apology email can save you time, but it would need to be edited to align with your company’s voice and tone.

If you need to write a quick yet professional apology to a coworker or client, then I suggest using my template or writing your own email to make it more personable.

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International Women’s Day: What is it and why do we need it?

International Women’s Day is observed on 8 March every year.

International Women’s Day is observed on 8 March every year. Image:  Unsplash/ThisisEngineering RAEng

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This article was first published in 2022 and updated.

  • 8 March is International Women’s Day – devoted to celebrating the achievements of women and seeking gender equality.
  • The campaign theme in 2024 is #InspireInclusion , while the official theme of the UN observance of the day is ‘ Invest in women: Accelerate progress ’.
  • It will take another 131 years to reach gender parity, according to the World Economic Forum's Global Gender Gap Report 2023 .

Gender equality is central to the Sustainable Development Goals (SDGs) of the United Nations (UN) – and a perennial item on the Secretary-General's annual priority list.

SDG5 calls for the world to " Achieve gender equality and empower all women and girls " by 2030.

Empowering women can boost economies and help the peace process, believes António Guterres, but it needs to happen faster.

"We are promoting women's full and equal participation and leadership in all sectors of society, as a matter of urgency," he told the UN General Assembly, outlining the agency's priorities on 7 February 2024.

It will take another 131 years to reach gender parity , according to the World Economic Forum's Global Gender Gap Report 2023.

The continued fight for women’s rights is marked each year by International Women’s Day (IWD).

What is International Women’s Day and when did it start?

IWD takes place on 8 March every year.

It began life as National Women’s Day in the United States back in February 1909. The following year, at the second International Conference of Working Women in Copenhagen, Denmark, women’s rights activist Clara Zetkin called for an international women’s day to give women a greater voice to further their demands for equal rights.

It was unanimously approved by the female attendees from 17 countries, including Finland’s first three women MPs. International Women’s Day was marked for the first time in March 1911 – and the date was fixed as 8 March in 1913. The UN celebrated it for the first time in 1975 and in 1996 it announced its first annual theme: "Celebrating the past, Planning for the Future".

How is the day marked around the world?

International Women’s Day is celebrated as a national holiday by countries across the globe, with women often given flowers and gifts – and there are IWD events in major cities worldwide .

On 8 March 1914, there was a women’s suffrage march in London, calling for women’s right to vote, at which high-profile campaigner Sylvia Pankhurst was arrested.

In 2001, the internationalwomensday.com platform was launched to reignite attention for the day, celebrate women’s achievements and continue to call for gender parity.

On the centenary in 2011, sitting US President Barack Obama called for March to be known as Women’s History Month. He said: “History shows that when women and girls have access to opportunity , societies are more just, economies are more likely to prosper, and governments are more likely to serve the needs of all their people.”

The World Economic Forum has been measuring gender gaps since 2006 in the annual Global Gender Gap Report .

The Global Gender Gap Report tracks progress towards closing gender gaps on a national level. To turn these insights into concrete action and national progress, we have developed the Gender Parity Accelerator model for public private collaboration.

These accelerators have been convened in twelve countries across three regions. Accelerators are established in Argentina, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Mexico and Panama in partnership with the Inter-American Development Bank in Latin America and the Caribbean, Egypt and Jordan in the Middle East and North Africa, and Japan and Kazakhstan in Asia.

All Country Accelerators, along with Knowledge Partner countries demonstrating global leadership in closing gender gaps, are part of a wider ecosystem, the Global Learning Network, that facilitates exchange of insights and experiences through the Forum’s platform.

Have you read?

In these countries CEOs and ministers are working together in a three-year time frame on policies that help to further close the economic gender gaps in their countries. This includes extended parental leave, subsidized childcare and making recruitment, retention and promotion practices more gender inclusive.

If you are a business in one of the Gender Parity Accelerator countries you can join the local membership base.

If you are a business or government in a country where we currently do not have a Gender Parity Accelerator you can reach out to us to explore opportunities for setting one up.

What is the theme of International Women’s Day in 2024?

Each year, there are effectively two different themes: one proposed as a campaign theme by the IWD website, which this year is #InspireInclusion , and the UN's official, which this year is " Invest in women: Accelerate progress ".

UN Women and the UN's Department of Economic and Social Affairs jointly publish an annual update on the progress towards SDG5.

In the latest – Progress on the Sustainable Development Goals: The gender snapshot 2023 – they reveal there's an "alarming" $360 billion annual deficit in spending on gender-equality measures.

A gender-focused SDG stimulus package to deliver transformational results for women, girls and societies.

UN Women has outlined areas that need joint action to ensure women are not left behind:

Investing in women: A human rights issue

"Gender equality remains the greatest human rights challenge. Investing in women is a human rights imperative and cornerstone for building inclusive societies. Progress for women benefits us all."

Implementing gender-responsive financing

"Due to conflicts and rising fuel and food prices, recent estimates suggest that 75% of countries will curb public spending by 2025 . Austerity negatively impacts women and crowds out public spending on essential public services and social protection."

Shifting to a green and caring economy

"The current economic system exacerbates poverty, inequality, and environmental degradation , disproportionately affecting women and marginalized groups. Advocates for alternative economic models propose a shift towards a green and caring economy that amplifies women’s voices."

Supporting feminist change-makers

"Feminist organizations are leading efforts to tackle women’s poverty and inequality. However, they are running on empty, receiving a meagre 0.13% of total official development assistance ."

What is the state of gender parity globally?

The World Economic Forum’s Global Gender Gap Index 2023 found that, although the global parity score has recovered to pre-pandemic levels, "the overall rate of change has slowed down significantly".

The index benchmarks 146 countries across four key dimensions (Economic Participation and Opportunity, Educational Attainment, Health and Survival and Political Empowerment) and tracks progress towards closing gender gaps over time.

Of the four gaps tracked, Political Empowerment remains the largest, with only 22.1% closed – a 0.1 percentage point increase on 2022.

The gender health gap: It's more than a women’s issue. Here’s why

Why clear job descriptions matter for gender equality, buses are key to fuelling indian women's economic success. here's why, what is the gender pay gap.

The gender gap in Economic Participation and Opportunity remained the second largest of the gaps, with only 60.1% closed so far (up slightly from 58% in 2022). The pandemic and the cost-of-living crisis is having a disproportionate impact on women .

The gender pay gap is the “difference between the average pay of men and women within a particular group or population” according to the Fawcett Society, which campaigns for equal pay in the UK.

Each year, the charity marks Equal Pay Day in the UK, the day of the year at which women stop earning relative to men. In 2023, that date was 22 November.

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License and Republishing

World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

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Who Is TaxSlayer Best For?

Taxslayer details, taxslayer pros & cons, how much does taxslayer cost, how does taxslayer work, taxslayer frequently asked questions, compare taxslayer, why you should trust us: how we rated taxslayer, taxslayer review 2024 (tax year 2023).

Our experts answer readers' tax questions and write unbiased product reviews ( here's how we assess tax products ). In some cases, we receive a commission from our partners ; however, our opinions are our own.

TaxSlayer TaxSlayer

TaxSlayer offers one free federal and one state return with its TaxSlayer Simply Free.

up to $62.95 for federal tax return and an additional $39.95 for state tax return

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Strong option for self-employed filers
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low price — comparable self-employed packages at H&R Block and TurboTax are more than 2x the cost
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. All packages include phone and email support
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Self-employed package includes on-demand access to a tax professional
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Simple and clean interface
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Ability to set up reminders to pay estimated quarterly taxes throughout the year
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Filers with any type of tax situation who meet AGI limits can use the IRS Free File program to file a federal return, and maybe a state return, with TaxSlayer at no cost
  • con icon Two crossed lines that form an 'X'. Free version advertised on its website does not include earned income tax credit or child tax credit
  • con icon Two crossed lines that form an 'X'. Interface isn't as intuitive as H&R Block or TurboTax

TaxSlayer is a good budget option for people who don't need a lot of assistance when filing their taxes and can be a great value for self-employed filers. However, the interface can be a bit clunky, and the free and lower-cost packages might not have all the features you need.

  • Choose direct deposit for your refund and e-file your return to get your fastest refund possible.
  • Everyone gets free, unlimited phone and email support. And if you need more help, we have you covered from Ask a Tax Pro to Audit Defense.
  • Download free app for tax filing, resources, news, and tips at your fingertips.
  • Guaranteed maximum refund
  • 100% accuracy guaranteed
  • Zero out-of-pocket fees​

TaxSlayer's biggest draw is price. If you know what you're doing, don't need much assistance, and have all your information ready to go, TaxSlayer is a strong low-cost option for filing taxes.

Anyone who doesn't have either a straightforward, simple tax situation (i.e. someone who earns only W-2 income) or experience filing more complicated taxes (i.e. a longtime self-employed filer) might run into trouble with TaxSlayer.

TaxSlayer customer support is somewhat limited. Yes, you can access customer service through email or phone with the Simply Free and Classic plans. But to receive live chat support, priority support, or Ask a Pro support, you'll have to upgrade to the Premium or Self-Employed plans.

See Personal Finance Insider's picks for the best tax software >>

  • Cost of DIY filing: $0 - $62.95 (+$39.95 per state return)
  • Four different plans
  • Completely free option for those who qualify, including state returns, for simple tax situations at any income level
  • Free version covers: For AGI above $73,000: W-2 income; unemployment income; tuition and fees deduction; student loan interest deduction. For AGI below $73,000: everything

TaxSlayer is less expensive than competing tax prep services. It's better for people who either have a simple tax situation or are comfortable with the tax-filing process.

  • Active duty members of the military can file a free federal and state return in any tax situation with no restrictions.
  • Classic: $32.95. TaxSlayer's most popular plan because it can be used for almost any tax situation. If you feel confident filing your taxes with minimal guidance, this is the most cost-efficient package. It includes W-2 import or PDF upload.
  • Premium: $52.95. Everything included in the Classic plan, plus access to advanced customer support features, including live chat technical support, front-of-the-line privileges for email and phone support with tax professionals, and three years of IRS audit support. This is great for people with complicated situations who need a little help along the way. 
  • Self-Employed: $62.95 Self-employed filers can use the Classic or Premium plans to file, but this plan sets up the interface to take you through self-employment taxes specifically. This plan is much cheaper than self-employed products from other large tax prep companies and includes one-on-one help from a tax professional.

TaxSlayer is a subsidiary of Rhodes-Murphy & Co, which is one of the oldest players in computerized tax preparation services.

Signing up for TaxSlayer is easy. After you set up an account with your email address and personal information, you'll be asked a series of questions about your finances for the tax year in question. You'll need things like W-2s, 1099s, 1098-Ts, and any other receipt of income or expenses that may be deductible. TaxSlayer has a document upload feature, but it supports a limited number of forms.

After you've answered all the questions, TaxSlayer will calculate your refund or tax due.

TurboTax is the leading in tax-preparation software but comes with a premium price. TaxSlayer is a smaller tax-prep service that offers a similar product, although with fewer features, at a lower cost. 

Yes, TaxSlayer does have a free tax filing option. You can use the free version only if you meet qualifications such as, your taxable income is less than $100,000, you claim the standard deduction, you don't claim dependents, and the types of income you're filing are wages, salaries, tips, unemployment compensation, and taxable interest of $1,500 or less.

TaxSlayer keeps your information safe with a variety of security measures . It also requires multi-factor authentication every time you log in to verify your identity. It is possible to enter some expenses more than once, leading to incorrect calculations, so it's important to double check your work to ensure accuracy. 

TaxSlayer vs. TurboTax

TurboTax is a market leader in tax preparation but can be very expensive, while TaxSlayer is a smaller tax prep service that offers a similar product, althouth with fewer features, at a lower cost. Both products come with free versions for qualified customers who have simple needs (for TurboTax about 37% of taxpayers qualify, Form 1040 + limited credits only). Both offer access to professional assistance with paid packages. Easier navigation, automated importing of data from financial companies, and the ability to upload 1099s and other forms are all great features that set TurboTax apart from TaxSlayer, which has a more basic interface.

TaxSlayer vs. Cash App Taxes

Cash App Taxes , formerly called Credit Karma Tax, is a free tax preparation service that you can use for both federal and state tax returns. The main difference between Cash App Taxes and TaxSlayer is that Cash App Taxes only provides free tax filing options — for both federal and state returns — while TaxSlayer is only free in some circumstances for qualified users, and in most cases you'll have to pay extra file a state income tax return. A drawback with Cash App Taxes is that if you need assistance in filing your return, none is available. With TaxSlayer's higher-level paid packages, you can get email and phone support with tax professionals.

We rate tax software on a 1-5 scale. The overall rating is a weighted average that considers five different categories when reviewing each platform, some of which are judged more heavily than others. They are:

  • Cost (30%):  Is there a free filing package? How does the cost of the paid tax preparation software compare to similar offerings from competitors?
  • Value (20%):  Does the cost justify what you get? Can you get the same features elsewhere for a lower price?
  • User experience (20%):  Is the tax prep software easy to use? Can you seamlessly upload or import documents? Is the guidance clear and non-jargony? 
  • Expert help (20%):  Can you chat, email, or call a tax professional when you have questions? Is this feature included with the standard packages or does it cost extra?
  • Support (10%):  Is there an accuracy guarantee or audit support? Is customer service reachable and helpful?

We also considered the breadth of tax forms included in the various packages offered by each tax software company, with an emphasis on what's available at no cost.

who should prepare a business plan

Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards .

Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.

**Enrollment required.

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  • Main content

Politics latest: Starmer demands minister pay back taxpayer cash she used on legal fees

Rishi Sunak has defended his science minister Michelle Donelan after taxpayer money was used to settle a legal dispute. Sir Keir Starmer has demanded she pay the cash back. Listen to Sky's Ed Conway and Beth Rigby analyse the budget in a special edition of the Daily podcast as you scroll.

Thursday 7 March 2024 18:06, UK

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  • Coming up on Politics Hub With Sophy Ridge at 7pm
  • Starmer attacks minister who used taxpayer cash on case
  • Explained: How Michelle Donelan ended up in libel trouble
  • 'Nothing has changed': Sunak rules out May election
  • PM says 'long-term ambition' to abolish national insurance
  • Budget recap:  All the main announcements
  • Sky News Daily:  Was that a budget for a May election?
  • Live reporting by Charlotte Chelsom-Pill and (earlier)  Tim Baker

Science Secretary Michelle Donelan is in the news after it was revealed £15,000 of taxpayer money was used to settle a legal dispute.

What did she do?

The issue began with a post on social media by academic Professor Kate Sang made last year.

Prof Sang had posted a message saying "this is disturbing" alongside a link to a Guardian article which described the response by Israel to the 7 October attacks by Hamas.

A second academic, Dr Kamna Patel, reposted a message describing Israel's actions as "genocide and apartheid".

Ms Donelan then posted on X a letter to the UK Research and Innovation (UKRI) expressing her "disgust and outrage" that Prof Sang and Dr Patel had "shared extremist views".

Ms Donelan also claimed Prof Sang had expressed sympathy for Hamas.

What happened next?

Both academics were subject to a UKRI investigation, having recently been appointed to the organisation's advisory group on equality, diversity, and inclusion.

It uncovered no evidence they had expressed extremist views or support for Hamas, or breached the terms of their appointments.

Prof Sang launched a libel action against the cabinet minister.

Libel is the act of publishing a false allegation which could damage someone's reputation.

Why has Ms Donelan had to pay?

Earlier this week, Ms Donelan made a new post on social media in which she withdrew her original statement. 

Ms Donelan accepted Prof Sang had been referring to the Guardian article as a whole.

Her statement added: "I fully accept that she is not an extremist, a supporter of Hamas or any other proscribed organisation and I note that an independent investigation has concluded that there is no evidence that she is. I have deleted my original post to my X account."

What the cabinet minister did not make clear - and was only revealed by lawyers who represented Prof Sang - was that Ms Donelan had paid a settlement with the academic. 

The government later confirmed the sum was paid from taxpayer funds but was "without admitting any liability" - they also did not say what the figure was.

It was revealed on Wednesday - the same day as the budget - that £15,000 of taxpayer money had been paid to Prof Sang.

What has the reaction been?

The Liberal Democrats have called for Ms Donelan to step aside and the matter to be investigated.

Labour leader Sir Keir Starmer has not called for Ms Donelan to go, but has said she should pay back the money.

Rishi Sunak has said it is a "long-standing convention" that the government will fund legal disputes "when it relates to government ministers doing their work".

And Penny Mordaunt, another cabinet minister, said it was worth bearing in mind Ms Donelan's character as a whole - including the fact she did not take the roughly £17,000 payout she was entitled to when she resigned as education secretary in 2022.

Rishi Sunak has, perhaps unintentionally, reprised an infamous Theresa May slogan as he dismissed the prospect of a May election.

Speaking to the BBC, the prime minister said "nothing has changed" since earlier this year when he said his "working assumption" is that the next election will be in the second half of this year. 

Asked about the date of the election by local BBC Radio in Yorkshire Mr Sunak said: "I was very clear about this at the beginning of the year about my working assumption for the election being in the second half of the year - nothing has changed since then."

The PM claimed in the same interview that the focus on May as a possible election date - with local elections already taking place on 2 May - was a deliberate ploy by Labour to "distract from the fact that actually they don't want to talk about the substance".

The phrase "nothing has changed" was uttered by Mrs May back when she was PM during the 2017 election campaign.

It was delivered at a news conference to explain her U-turn on controversial reforms to adult social care. 

The phrase came to embody criticism the then-PM was "robotic" and unaware of her changing fortunes in a snap election she called to strengthen her hand.

Cherie Blair has offered some words of advice to Sir Keir Starmer's wife, should he become the next prime minister. 

Mrs Blair's husband led the country from 1997 until 2007.

Speaking to Sky's Sophie Ridge, she says: "I will tell her what Hillary Clinton said to me.

"You're always going to face criticism, some people will dislike you. Not for anything you do, but because of what you represent.

"And therefore, the most important thing is to be true to yourself and do the things that you feel comfortable about doing".

She tells Sophy she considers Hillary Clinton a "mentor" and a "dear friend".

You can watch the full interview with Cherie Blair on  Politics Hub With Sophy Ridge  from 7pm. 

Sweden has officially joined NATO, completing the process it began following the Russian invasion of Ukraine.

It means that should the country be attacked, other members of the alliance are obligated to protect it.

Rishi Sunak has welcomed the new member - its 32nd overall.

"NATO is the most successful defensive alliance in history," he said.

"Today is a historic day, as Sweden becomes its 32nd member. 

"Congratulations Sweden, and valkommen."

You can read more on this in our Ukraine war blog:

By Alex Crawford , special correspondent

Iraq's president has said he is "extremely disappointed" with the UK government's response to the war in Gaza - accusing it of "ignoring" the suffering of Palestinians.

"The Palestinian problem has become an international problem," President Abdul Latif Rashid told Sky News.

"And, recently, the suffering of the Palestinian people and the attacks on Gaza, especially on civilians and children, is beyond anything which human rights can accept, and I think it is the duty of the international community to put an end to the suffering of the Palestinian people."

The president was speaking to Sky News from the Presidential Palace in the Iraqi capital, Baghdad, in a rare interview with Western media.

Read more below:

By  Alexandra Rogers , political reporter

Labour enjoyed its highest-ever annual amount in private donations across 2023 in a major boost for Sir Keir Starmer as the UK gears up for a general election.

Labour accepted nearly £13m in individual donations, surpassing the £5.8m it received from trade unions, historically the party's biggest donors.

Individual donors include Autoglass boss Gary Lubner, who gave £4.5m, while the largest single donation of £3m was provided by Lord David Sainsbury, a long-standing party supporter.

In total, Labour amassed just over £31m in overall donations in 2023, a significant increase from the £21.4m the party accepted in 2022.

The second highest annual sum for private donations to the party was £10.8 million in 2005.

However, despite their trouble in the polls, the Conservatives outstripped Labour in political donations last year, accepting £48m in donations over the 12-month period, of which £35.8m came from individuals.

It marks a significant increase on 2022, when the Conservatives accepted just £17.9m in donations following the turmoil that saw three different prime ministers enter Number 10.

The SNP, however, saw donations drop from £1.7m in 2022 to £1.5m in 2023.

Read more here:

Our weeknight politics show  Politics Hub With Sophy Ridge  is live on Sky News from 7pm.

The fast-paced show dissects the inner workings of Westminster, with interviews, insights, and analysis - bringing you, the audience, into the corridors of power.

Tonight, as fallout from the budget continues, Sophy will be speaking to Work and Pensions Secretary Mel Stride and the Labour shadow minister Louise Haigh .

She'll also be talking to Cherie Blair , including getting her advice for the Starmer family about life in Downing Street should Labour gain power.

On Sophy's panel tonight are:

  • Nick Ferrari , LBC broadcaster;
  • Josh Simons , director of Labour Together.

Tune in to watch on Sky News from 7pm, with live updates right here in the Politics Hub.

Watch Politics Hub With Sophy Ridge Monday to Thursday on Sky channel 501, Virgin channel 602, Freeview channel 233, on the  Sky News website  and  app  or on  YouTube .

Will the spring budget make you better or worse off?

Use our calculator to see how you have been affected by Jeremy Hunt's plans for the country's finances.

Lord Cameron has urged Hamas to accept a Gaza ceasefire and hostage release deal.

"They are the ones now holding up the stopping of this fighting," he said.

He was speaking at a news conference in Berlin alongside his German counterpart Annalena Baerbock (see previous posts).

He said the two leaders are also working "incredibly hard" on the issue of how to get more aid into Gaza.

"Nothing must distract us from the fact that ultimately if we want to avoid famine, if we want to avoid disease, if we want to help people in Gaza, we need 500 trucks a day," he said.

"This need really is urgent."

Asked whether the UK is doing enough to pressure Israel to allow aid into Gaza, he said: "I think the Israelis have to really understand that this is on the brink of being a desperate situation in terms of disease and famine, and so the time for doing more is now.

"We also need to make sure that at the same time as saying that, we say to Hamas that they should release these hostages."

The US, Egypt, and Qatar have been working to broker an agreement on a six-week ceasefire and the release of 40 hostages held in Gaza in exchange for Palestinians imprisoned in Israel. 

Read more in our Middle East live blog:

Lord David Cameron has said he doesn't want to "play into the hands of some Russian narrative about divisions" between allies as he addressed the issue of a leaked audio recording of a meeting of senior German military officials. 

In the recording, published by Russian media last week, the officers discussed whether long-range Taurus missiles could be used in Ukraine without the presence of German troops.

However, the leak also suggested that UK service personnel were already operating in Ukraine. It has prompted concern in London that German officers were discussing sensitive details on an unencrypted line. 

Speaking at a news conference in Berlin alongside his German counterpart (see previous post), the foreign secretary was asked whether he agreed with Germany's assessment that trust among allies is unbroken. 

"I don't want to play into the hands of some Russian narrative about divisions between allies," he said. 

"What I see … is incredible unity between allies, incredible unity in NATO.

"Of course, we're going to have areas where we want to discuss what more we can do, what more we can help. And those are the sorts of discussions that good friends and allies with this unity have in private."

Read more in our Ukraine war live blog:

Foreign Secretary Lord Cameron has warned the war in Ukraine is the "test for politicians of this generation".

He was speaking in a joint news conference with his German counterpart Annalena Baerbock in Berlin. 

"I don't have any doubt that the Ukrainians are brave enough… I don't have any doubt in their ability to fight and to resist this appalling Russian aggression," he says.

"The question is for us. Are we, the European countries ... the allies of Ukraine, are we going to see this through?

"Are we going to give them what they need?

"Are we going to back them with everything that we have?"

Lord Cameron heralded the military, diplomatic and financial support provided by both Germany and the UK, saying they are "two of the biggest contributors".

But  he said: "We both know we have to ask ourselves what more can do we do?".

Downing Street has urged NATO countries to supply Ukraine with long-range missiles, following the UK's decision to send Storm Shadow missiles to the country last year. 

However, German Chancellor Olaf Scholz has been unwilling to send Taurus long-range cruise missiles to Kyiv on the grounds that German soldiers would have to be sent to Ukraine to help operate them, dragging Germany into war with Russia.

Lord Cameron said the decision on medium and long-range missiles is a "sovereign decision for every country," but that he knows what the UK has given to Ukraine has "helped them to resist this appalling invasion and fight back against Russian aggression".

"You get peace through strength … you get peace by helping the Ukrainians deliver what they need on the battlefield," he said.

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  4. How to Create a Business Plan in 1 Day [Updated 2022]

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  5. A Complete Guide On Small Business Plan Examples (2022)

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    Step 7: Financial Analysis and Projections. It doesn't matter if you include a request for funding in your plan, you will want to include a financial analysis here. You'll want to do two things here: Paint a picture of your business's performance in the past and show it will grow in the future.

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    Step #3: Conduct Your Market Analysis. Step #4: Research Your Competition. Step #5: Outline Your Products or Services. Step #6: Summarize Your Financial Plan. Step #7: Determine Your Marketing Strategy. Step #8: Showcase Your Organizational Chart. 14 Business Plan Templates to Help You Get Started.

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    Don't worry, you'll know how to write a business plan in no time. We've broken each section down to help you write a business plan in a few simple steps. 1. Brainstorm and Draft an Executive Summary for Your Business Plan. This will be the first page of your business plan.

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    The executive summary should be clear and concise. Ideally, this section should be one to two pages and typically follows either a synopsis or story approach, depending on the intended audience. In the synopsis approach, you would provide a brief summary of each of the key sections of your business plan.

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    The things you should include in a one-pager business plan are: The problem - Describe a certain problem your customers have and support the claim with relevant data. The solution - How your products/services can solve the issue. Business model - Your plan on how to make money.

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