• 11.4 The Business Plan
  • Introduction
  • 1.1 Entrepreneurship Today
  • 1.2 Entrepreneurial Vision and Goals
  • 1.3 The Entrepreneurial Mindset
  • Review Questions
  • Discussion Questions
  • Case Questions
  • Suggested Resources
  • 2.1 Overview of the Entrepreneurial Journey
  • 2.2 The Process of Becoming an Entrepreneur
  • 2.3 Entrepreneurial Pathways
  • 2.4 Frameworks to Inform Your Entrepreneurial Path
  • 3.1 Ethical and Legal Issues in Entrepreneurship
  • 3.2 Corporate Social Responsibility and Social Entrepreneurship
  • 3.3 Developing a Workplace Culture of Ethical Excellence and Accountability
  • 4.1 Tools for Creativity and Innovation
  • 4.2 Creativity, Innovation, and Invention: How They Differ
  • 4.3 Developing Ideas, Innovations, and Inventions
  • 5.1 Entrepreneurial Opportunity
  • 5.2 Researching Potential Business Opportunities
  • 5.3 Competitive Analysis
  • 6.1 Problem Solving to Find Entrepreneurial Solutions
  • 6.2 Creative Problem-Solving Process
  • 6.3 Design Thinking
  • 6.4 Lean Processes
  • 7.1 Clarifying Your Vision, Mission, and Goals
  • 7.2 Sharing Your Entrepreneurial Story
  • 7.3 Developing Pitches for Various Audiences and Goals
  • 7.4 Protecting Your Idea and Polishing the Pitch through Feedback
  • 7.5 Reality Check: Contests and Competitions
  • 8.1 Entrepreneurial Marketing and the Marketing Mix
  • 8.2 Market Research, Market Opportunity Recognition, and Target Market
  • 8.3 Marketing Techniques and Tools for Entrepreneurs
  • 8.4 Entrepreneurial Branding
  • 8.5 Marketing Strategy and the Marketing Plan
  • 8.6 Sales and Customer Service
  • 9.1 Overview of Entrepreneurial Finance and Accounting Strategies
  • 9.2 Special Funding Strategies
  • 9.3 Accounting Basics for Entrepreneurs
  • 9.4 Developing Startup Financial Statements and Projections
  • 10.1 Launching the Imperfect Business: Lean Startup
  • 10.2 Why Early Failure Can Lead to Success Later
  • 10.3 The Challenging Truth about Business Ownership
  • 10.4 Managing, Following, and Adjusting the Initial Plan
  • 10.5 Growth: Signs, Pains, and Cautions
  • 11.1 Avoiding the “Field of Dreams” Approach
  • 11.2 Designing the Business Model
  • 11.3 Conducting a Feasibility Analysis
  • 12.1 Building and Connecting to Networks
  • 12.2 Building the Entrepreneurial Dream Team
  • 12.3 Designing a Startup Operational Plan
  • 13.1 Business Structures: Overview of Legal and Tax Considerations
  • 13.2 Corporations
  • 13.3 Partnerships and Joint Ventures
  • 13.4 Limited Liability Companies
  • 13.5 Sole Proprietorships
  • 13.6 Additional Considerations: Capital Acquisition, Business Domicile, and Technology
  • 13.7 Mitigating and Managing Risks
  • 14.1 Types of Resources
  • 14.2 Using the PEST Framework to Assess Resource Needs
  • 14.3 Managing Resources over the Venture Life Cycle
  • 15.1 Launching Your Venture
  • 15.2 Making Difficult Business Decisions in Response to Challenges
  • 15.3 Seeking Help or Support
  • 15.4 Now What? Serving as a Mentor, Consultant, or Champion
  • 15.5 Reflections: Documenting the Journey
  • A | Suggested Resources

Learning Objectives

By the end of this section, you will be able to:

  • Describe the different purposes of a business plan
  • Describe and develop the components of a brief business plan
  • Describe and develop the components of a full business plan

Unlike the brief or lean formats introduced so far, the business plan is a formal document used for the long-range planning of a company’s operation. It typically includes background information, financial information, and a summary of the business. Investors nearly always request a formal business plan because it is an integral part of their evaluation of whether to invest in a company. Although nothing in business is permanent, a business plan typically has components that are more “set in stone” than a business model canvas , which is more commonly used as a first step in the planning process and throughout the early stages of a nascent business. A business plan is likely to describe the business and industry, market strategies, sales potential, and competitive analysis, as well as the company’s long-term goals and objectives. An in-depth formal business plan would follow at later stages after various iterations to business model canvases. The business plan usually projects financial data over a three-year period and is typically required by banks or other investors to secure funding. The business plan is a roadmap for the company to follow over multiple years.

Some entrepreneurs prefer to use the canvas process instead of the business plan, whereas others use a shorter version of the business plan, submitting it to investors after several iterations. There are also entrepreneurs who use the business plan earlier in the entrepreneurial process, either preceding or concurrently with a canvas. For instance, Chris Guillebeau has a one-page business plan template in his book The $100 Startup . 48 His version is basically an extension of a napkin sketch without the detail of a full business plan. As you progress, you can also consider a brief business plan (about two pages)—if you want to support a rapid business launch—and/or a standard business plan.

As with many aspects of entrepreneurship, there are no clear hard and fast rules to achieving entrepreneurial success. You may encounter different people who want different things (canvas, summary, full business plan), and you also have flexibility in following whatever tool works best for you. Like the canvas, the various versions of the business plan are tools that will aid you in your entrepreneurial endeavor.

Business Plan Overview

Most business plans have several distinct sections ( Figure 11.16 ). The business plan can range from a few pages to twenty-five pages or more, depending on the purpose and the intended audience. For our discussion, we’ll describe a brief business plan and a standard business plan. If you are able to successfully design a business model canvas, then you will have the structure for developing a clear business plan that you can submit for financial consideration.

Both types of business plans aim at providing a picture and roadmap to follow from conception to creation. If you opt for the brief business plan, you will focus primarily on articulating a big-picture overview of your business concept.

The full business plan is aimed at executing the vision concept, dealing with the proverbial devil in the details. Developing a full business plan will assist those of you who need a more detailed and structured roadmap, or those of you with little to no background in business. The business planning process includes the business model, a feasibility analysis, and a full business plan, which we will discuss later in this section. Next, we explore how a business plan can meet several different needs.

Purposes of a Business Plan

A business plan can serve many different purposes—some internal, others external. As we discussed previously, you can use a business plan as an internal early planning device, an extension of a napkin sketch, and as a follow-up to one of the canvas tools. A business plan can be an organizational roadmap , that is, an internal planning tool and working plan that you can apply to your business in order to reach your desired goals over the course of several years. The business plan should be written by the owners of the venture, since it forces a firsthand examination of the business operations and allows them to focus on areas that need improvement.

Refer to the business venture throughout the document. Generally speaking, a business plan should not be written in the first person.

A major external purpose for the business plan is as an investment tool that outlines financial projections, becoming a document designed to attract investors. In many instances, a business plan can complement a formal investor’s pitch. In this context, the business plan is a presentation plan, intended for an outside audience that may or may not be familiar with your industry, your business, and your competitors.

You can also use your business plan as a contingency plan by outlining some “what-if” scenarios and exploring how you might respond if these scenarios unfold. Pretty Young Professional launched in November 2010 as an online resource to guide an emerging generation of female leaders. The site focused on recent female college graduates and current students searching for professional roles and those in their first professional roles. It was founded by four friends who were coworkers at the global consultancy firm McKinsey. But after positions and equity were decided among them, fundamental differences of opinion about the direction of the business emerged between two factions, according to the cofounder and former CEO Kathryn Minshew . “I think, naively, we assumed that if we kicked the can down the road on some of those things, we’d be able to sort them out,” Minshew said. Minshew went on to found a different professional site, The Muse , and took much of the editorial team of Pretty Young Professional with her. 49 Whereas greater planning potentially could have prevented the early demise of Pretty Young Professional, a change in planning led to overnight success for Joshua Esnard and The Cut Buddy team. Esnard invented and patented the plastic hair template that he was selling online out of his Fort Lauderdale garage while working a full-time job at Broward College and running a side business. Esnard had hundreds of boxes of Cut Buddies sitting in his home when he changed his marketing plan to enlist companies specializing in making videos go viral. It worked so well that a promotional video for the product garnered 8 million views in hours. The Cut Buddy sold over 4,000 products in a few hours when Esnard only had hundreds remaining. Demand greatly exceeded his supply, so Esnard had to scramble to increase manufacturing and offered customers two-for-one deals to make up for delays. This led to selling 55,000 units, generating $700,000 in sales in 2017. 50 After appearing on Shark Tank and landing a deal with Daymond John that gave the “shark” a 20-percent equity stake in return for $300,000, The Cut Buddy has added new distribution channels to include retail sales along with online commerce. Changing one aspect of a business plan—the marketing plan—yielded success for The Cut Buddy.

Link to Learning

Watch this video of Cut Buddy’s founder, Joshua Esnard, telling his company’s story to learn more.

If you opt for the brief business plan, you will focus primarily on articulating a big-picture overview of your business concept. This version is used to interest potential investors, employees, and other stakeholders, and will include a financial summary “box,” but it must have a disclaimer, and the founder/entrepreneur may need to have the people who receive it sign a nondisclosure agreement (NDA) . The full business plan is aimed at executing the vision concept, providing supporting details, and would be required by financial institutions and others as they formally become stakeholders in the venture. Both are aimed at providing a picture and roadmap to go from conception to creation.

Types of Business Plans

The brief business plan is similar to an extended executive summary from the full business plan. This concise document provides a broad overview of your entrepreneurial concept, your team members, how and why you will execute on your plans, and why you are the ones to do so. You can think of a brief business plan as a scene setter or—since we began this chapter with a film reference—as a trailer to the full movie. The brief business plan is the commercial equivalent to a trailer for Field of Dreams , whereas the full plan is the full-length movie equivalent.

Brief Business Plan or Executive Summary

As the name implies, the brief business plan or executive summary summarizes key elements of the entire business plan, such as the business concept, financial features, and current business position. The executive summary version of the business plan is your opportunity to broadly articulate the overall concept and vision of the company for yourself, for prospective investors, and for current and future employees.

A typical executive summary is generally no longer than a page, but because the brief business plan is essentially an extended executive summary, the executive summary section is vital. This is the “ask” to an investor. You should begin by clearly stating what you are asking for in the summary.

In the business concept phase, you’ll describe the business, its product, and its markets. Describe the customer segment it serves and why your company will hold a competitive advantage. This section may align roughly with the customer segments and value-proposition segments of a canvas.

Next, highlight the important financial features, including sales, profits, cash flows, and return on investment. Like the financial portion of a feasibility analysis, the financial analysis component of a business plan may typically include items like a twelve-month profit and loss projection, a three- or four-year profit and loss projection, a cash-flow projection, a projected balance sheet, and a breakeven calculation. You can explore a feasibility study and financial projections in more depth in the formal business plan. Here, you want to focus on the big picture of your numbers and what they mean.

The current business position section can furnish relevant information about you and your team members and the company at large. This is your opportunity to tell the story of how you formed the company, to describe its legal status (form of operation), and to list the principal players. In one part of the extended executive summary, you can cover your reasons for starting the business: Here is an opportunity to clearly define the needs you think you can meet and perhaps get into the pains and gains of customers. You also can provide a summary of the overall strategic direction in which you intend to take the company. Describe the company’s mission, vision, goals and objectives, overall business model, and value proposition.

Rice University’s Student Business Plan Competition, one of the largest and overall best-regarded graduate school business-plan competitions (see Telling Your Entrepreneurial Story and Pitching the Idea ), requires an executive summary of up to five pages to apply. 51 , 52 Its suggested sections are shown in Table 11.2 .

Are You Ready?

Create a brief business plan.

Fill out a canvas of your choosing for a well-known startup: Uber, Netflix, Dropbox, Etsy, Airbnb, Bird/Lime, Warby Parker, or any of the companies featured throughout this chapter or one of your choice. Then create a brief business plan for that business. See if you can find a version of the company’s actual executive summary, business plan, or canvas. Compare and contrast your vision with what the company has articulated.

  • These companies are well established but is there a component of what you charted that you would advise the company to change to ensure future viability?
  • Map out a contingency plan for a “what-if” scenario if one key aspect of the company or the environment it operates in were drastically is altered?

Full Business Plan

Even full business plans can vary in length, scale, and scope. Rice University sets a ten-page cap on business plans submitted for the full competition. The IndUS Entrepreneurs , one of the largest global networks of entrepreneurs, also holds business plan competitions for students through its Tie Young Entrepreneurs program. In contrast, business plans submitted for that competition can usually be up to twenty-five pages. These are just two examples. Some components may differ slightly; common elements are typically found in a formal business plan outline. The next section will provide sample components of a full business plan for a fictional business.

Executive Summary

The executive summary should provide an overview of your business with key points and issues. Because the summary is intended to summarize the entire document, it is most helpful to write this section last, even though it comes first in sequence. The writing in this section should be especially concise. Readers should be able to understand your needs and capabilities at first glance. The section should tell the reader what you want and your “ask” should be explicitly stated in the summary.

Describe your business, its product or service, and the intended customers. Explain what will be sold, who it will be sold to, and what competitive advantages the business has. Table 11.3 shows a sample executive summary for the fictional company La Vida Lola.

Business Description

This section describes the industry, your product, and the business and success factors. It should provide a current outlook as well as future trends and developments. You also should address your company’s mission, vision, goals, and objectives. Summarize your overall strategic direction, your reasons for starting the business, a description of your products and services, your business model, and your company’s value proposition. Consider including the Standard Industrial Classification/North American Industry Classification System (SIC/NAICS) code to specify the industry and insure correct identification. The industry extends beyond where the business is located and operates, and should include national and global dynamics. Table 11.4 shows a sample business description for La Vida Lola.

Industry Analysis and Market Strategies

Here you should define your market in terms of size, structure, growth prospects, trends, and sales potential. You’ll want to include your TAM and forecast the SAM . (Both these terms are discussed in Conducting a Feasibility Analysis .) This is a place to address market segmentation strategies by geography, customer attributes, or product orientation. Describe your positioning relative to your competitors’ in terms of pricing, distribution, promotion plan, and sales potential. Table 11.5 shows an example industry analysis and market strategy for La Vida Lola.

Competitive Analysis

The competitive analysis is a statement of the business strategy as it relates to the competition. You want to be able to identify who are your major competitors and assess what are their market shares, markets served, strategies employed, and expected response to entry? You likely want to conduct a classic SWOT analysis (Strengths Weaknesses Opportunities Threats) and complete a competitive-strength grid or competitive matrix. Outline your company’s competitive strengths relative to those of the competition in regard to product, distribution, pricing, promotion, and advertising. What are your company’s competitive advantages and their likely impacts on its success? The key is to construct it properly for the relevant features/benefits (by weight, according to customers) and how the startup compares to incumbents. The competitive matrix should show clearly how and why the startup has a clear (if not currently measurable) competitive advantage. Some common features in the example include price, benefits, quality, type of features, locations, and distribution/sales. Sample templates are shown in Figure 11.17 and Figure 11.18 . A competitive analysis helps you create a marketing strategy that will identify assets or skills that your competitors are lacking so you can plan to fill those gaps, giving you a distinct competitive advantage. When creating a competitor analysis, it is important to focus on the key features and elements that matter to customers, rather than focusing too heavily on the entrepreneur’s idea and desires.

Operations and Management Plan

In this section, outline how you will manage your company. Describe its organizational structure. Here you can address the form of ownership and, if warranted, include an organizational chart/structure. Highlight the backgrounds, experiences, qualifications, areas of expertise, and roles of members of the management team. This is also the place to mention any other stakeholders, such as a board of directors or advisory board(s), and their relevant relationship to the founder, experience and value to help make the venture successful, and professional service firms providing management support, such as accounting services and legal counsel.

Table 11.6 shows a sample operations and management plan for La Vida Lola.

Marketing Plan

Here you should outline and describe an effective overall marketing strategy for your venture, providing details regarding pricing, promotion, advertising, distribution, media usage, public relations, and a digital presence. Fully describe your sales management plan and the composition of your sales force, along with a comprehensive and detailed budget for the marketing plan. Table 11.7 shows a sample marketing plan for La Vida Lola.

Financial Plan

A financial plan seeks to forecast revenue and expenses; project a financial narrative; and estimate project costs, valuations, and cash flow projections. This section should present an accurate, realistic, and achievable financial plan for your venture (see Entrepreneurial Finance and Accounting for detailed discussions about conducting these projections). Include sales forecasts and income projections, pro forma financial statements ( Building the Entrepreneurial Dream Team , a breakeven analysis, and a capital budget. Identify your possible sources of financing (discussed in Conducting a Feasibility Analysis ). Figure 11.19 shows a template of cash-flow needs for La Vida Lola.

Entrepreneur In Action

Laughing man coffee.

Hugh Jackman ( Figure 11.20 ) may best be known for portraying a comic-book superhero who used his mutant abilities to protect the world from villains. But the Wolverine actor is also working to make the planet a better place for real, not through adamantium claws but through social entrepreneurship.

A love of java jolted Jackman into action in 2009, when he traveled to Ethiopia with a Christian humanitarian group to shoot a documentary about the impact of fair-trade certification on coffee growers there. He decided to launch a business and follow in the footsteps of the late Paul Newman, another famous actor turned philanthropist via food ventures.

Jackman launched Laughing Man Coffee two years later; he sold the line to Keurig in 2015. One Laughing Man Coffee café in New York continues to operate independently, investing its proceeds into charitable programs that support better housing, health, and educational initiatives within fair-trade farming communities. 55 Although the New York location is the only café, the coffee brand is still distributed, with Keurig donating an undisclosed portion of Laughing Man proceeds to those causes (whereas Jackman donates all his profits). The company initially donated its profits to World Vision, the Christian humanitarian group Jackman accompanied in 2009. In 2017, it created the Laughing Man Foundation to be more active with its money management and distribution.

  • You be the entrepreneur. If you were Jackman, would you have sold the company to Keurig? Why or why not?
  • Would you have started the Laughing Man Foundation?
  • What else can Jackman do to aid fair-trade practices for coffee growers?

What Can You Do?

Textbooks for change.

Founded in 2014, Textbooks for Change uses a cross-compensation model, in which one customer segment pays for a product or service, and the profit from that revenue is used to provide the same product or service to another, underserved segment. Textbooks for Change partners with student organizations to collect used college textbooks, some of which are re-sold while others are donated to students in need at underserved universities across the globe. The organization has reused or recycled 250,000 textbooks, providing 220,000 students with access through seven campus partners in East Africa. This B-corp social enterprise tackles a problem and offers a solution that is directly relevant to college students like yourself. Have you observed a problem on your college campus or other campuses that is not being served properly? Could it result in a social enterprise?

Work It Out

Franchisee set out.

A franchisee of East Coast Wings, a chain with dozens of restaurants in the United States, has decided to part ways with the chain. The new store will feature the same basic sports-bar-and-restaurant concept and serve the same basic foods: chicken wings, burgers, sandwiches, and the like. The new restaurant can’t rely on the same distributors and suppliers. A new business plan is needed.

  • What steps should the new restaurant take to create a new business plan?
  • Should it attempt to serve the same customers? Why or why not?

This New York Times video, “An Unlikely Business Plan,” describes entrepreneurial resurgence in Detroit, Michigan.

  • 48 Chris Guillebeau. The $100 Startup: Reinvent the Way You Make a Living, Do What You Love, and Create a New Future . New York: Crown Business/Random House, 2012.
  • 49 Jonathan Chan. “What These 4 Startup Case Studies Can Teach You about Failure.” Foundr.com . July 12, 2015. https://foundr.com/4-startup-case-studies-failure/
  • 50 Amy Feldman. “Inventor of the Cut Buddy Paid YouTubers to Spark Sales. He Wasn’t Ready for a Video to Go Viral.” Forbes. February 15, 2017. https://www.forbes.com/sites/forbestreptalks/2017/02/15/inventor-of-the-cut-buddy-paid-youtubers-to-spark-sales-he-wasnt-ready-for-a-video-to-go-viral/#3eb540ce798a
  • 51 Jennifer Post. “National Business Plan Competitions for Entrepreneurs.” Business News Daily . August 30, 2018. https://www.businessnewsdaily.com/6902-business-plan-competitions-entrepreneurs.html
  • 52 “Rice Business Plan Competition, Eligibility Criteria and How to Apply.” Rice Business Plan Competition . March 2020. https://rbpc.rice.edu/sites/g/files/bxs806/f/2020%20RBPC%20Eligibility%20Criteria%20and%20How%20to%20Apply_23Oct19.pdf
  • 53 “Rice Business Plan Competition, Eligibility Criteria and How to Apply.” Rice Business Plan Competition. March 2020. https://rbpc.rice.edu/sites/g/files/bxs806/f/2020%20RBPC%20Eligibility%20Criteria%20and%20How%20to%20Apply_23Oct19.pdf; Based on 2019 RBPC Competition Rules and Format April 4–6, 2019. https://rbpc.rice.edu/sites/g/files/bxs806/f/2019-RBPC-Competition-Rules%20-Format.pdf
  • 54 Foodstart. http://foodstart.com
  • 55 “Hugh Jackman Journey to Starting a Social Enterprise Coffee Company.” Giving Compass. April 8, 2018. https://givingcompass.org/article/hugh-jackman-journey-to-starting-a-social-enterprise-coffee-company/

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  • Authors: Michael Laverty, Chris Littel
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  • Book title: Entrepreneurship
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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.

components of a business plan in entrepreneurship

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 ."

  • How to Start a Business: A Comprehensive Guide and Essential Steps 1 of 25
  • How to Do Market Research, Types, and Example 2 of 25
  • Marketing Strategy: What It Is, How It Works, and How to Create One 3 of 25
  • Marketing in Business: Strategies and Types Explained 4 of 25
  • What Is a Marketing Plan? Types and How to Write One 5 of 25
  • Business Development: Definition, Strategies, Steps & Skills 6 of 25
  • Business Plan: What It Is, What's Included, and How to Write One 7 of 25
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The 10 Key Components of a Business Plan

Written by Dave Lavinsky

Growthink.com Components of a Business Plan Step By Step Advice

Over the past 20+ years, we have helped over 1 million entrepreneurs and business owners write business plans. These plans have been used to raise funding and grow countless businesses.

Download our Ultimate Business Plan Template here >

From working with all these businesses, we know what the 10 elements in any great business plan. Providing a comprehensive assessment of each of these components is critical in attracting lenders, angel investors , venture capitalists or other equity investors.

Get started with a title page that includes your company name, logo and contact information, since interested readers must have a simple way to find and reach out to you. After that be sure to include the 10 parts of a business plan documented below.

What are the 10 Key Components of a Business Plan?

The 10 sections or elements of a business plan that you must include are as follows:

1. Executive Summary

The executive summary provides a succinct synopsis of the business plan, and highlights the key points raised within. It often includes the company’s mission statement and description of the products and services. It’s recommended by me and many experts including the Small Business Administration to write the executive summary last.

The executive summary must communicate to the prospective investor the size and scope of the market opportunity, the venture’s business and profitability model, and how the resources/skills/strategic positioning of the company’s management team make it uniquely qualified to execute the business plan. The executive summary must be compelling, easy-to-read, and no longer than 2-4 pages.

2. Company Analysis

This business plan section provides a strategic overview of the business and describes how the company is organized, what products and services it offers/will offer, and goes into further detail on the business’ unique qualifications in serving its target markets. As any good business plan template will point out, your company analysis should also give a snapshot of the company’s achievements to date, since the best indicator of future success are past accomplishments.

3. Industry or Market Analysis

This section evaluates the playing field in which the company will be competing, and includes well-structured answers to key market research questions such as the following:

  • What are the sizes of the target market segments?
  • What are the trends for the industry as a whole?
  • With what other industries do your services compete?

To conduct this market research, do research online and leverage trade associations that often have the information you need.  

4. Analysis of Customers

The customer analysis business plan section assesses the customer segment(s) that the company serves. In this section, the company must convey the needs of its target customers. It must then show how its products and services satisfy these needs to an extent that the customer will pay for them.

The following are examples of customer segments: moms, engaged couples, schools, online retailers, teens, baby boomers, business owners, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of business you operate as different segments often have different needs. Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations and income levels of the customers you seek to serve. With regards to psychographic variables, discuss whether your customers have any unique lifestyles, interests, opinions, attitudes and/or values that will help you market to them more effectively.

5. Analysis of Competition

All capable business plan writers discuss the competitive landscape of your business. This element of your plan must identify your direct and indirect competitors, assesses their strengths and weaknesses and delineate your company’s competitive advantages. It’s a crucial business plan section.

Direct competitors are those that provide the same product or service to the same customer. Indirect competitors are those who provide similar products or services. For example, the direct competitors to a pizza shop are other local pizza shops. Indirect competitors are other food options like supermarkets, delis, other restaurants, etc.

The first five components of your business plan provide an overview of the business opportunity and market research to support it. The remaining five business plan sections focus mainly on strategy, primarily the marketing, operational, financial and management strategies that your firm will employ.

6. Marketing, Sales & Product Plan

The marketing and sales plan component of your business plan details your strategy for penetrating the target markets. Key elements include the following:

  • A description of the company’s desired strategic positioning
  • Detailed descriptions of the company’s product and service offerings and potential product extensions
  • Descriptions of the company’s desired image and branding strategy
  • Descriptions of the company’s promotional strategies
  • An overview of the company’s pricing strategies
  • A description of current and potential strategic marketing partnerships/ alliances

7. Operations Strategy, Design and Development Plans

These sections detail the internal strategies for building the venture from concept to reality, and include answers to the following questions:

  • What functions will be required to run the business?
  • What milestones must be reached before the venture can be launched?
  • How will quality be controlled?

8. Management Team

The management team section demonstrates that the company has the required human resources to be successful. The business plan must answer questions including:

  • Who are the key management personnel and what are their backgrounds?
  • What management additions will be required to make the business a success?
  • Who are the other investors and/or shareholders, if any?
  • Who comprises the Board of Directors and/or Board of Advisors?
  • Who are the professional advisors (e.g., lawyer, accounting firm)?

9. Financial Plan

The financial plan involves the development of the company’s revenue and profitability model. These financial statements detail how you generate income and get paid from customers,. The financial plan includes detailed explanations of the key assumptions used in building the business plan model , sensitivity analysis on key revenue and cost variables, and description of comparable valuations for existing companies with similar business models.

One of the key purposes of your business plan is to determine the amount of capital the firm needs. The financial plan does this along with assessing the proposed use of these funds (e.g., equipment, working capital, labor expenses, insurance costs, etc.) and the expected future earnings. It includes Projected Income Statements, Balance Sheets (showing assets, liabilities and equity) and Cash Flow Statements, broken out quarterly for the first two years, and annually for years 1-5.

Importantly, all of the assumptions and projections in the financial plan must flow from and be supported by the descriptions and explanations offered in the other sections of the plan. The financial plan is where the entrepreneur communicates how he/she plans to “monetize” the overall vision for the new venture. Note that in addition to traditional debt and equity sources of startup and growth funding that require a business plan (bank loans, angel investors, venture capitalists, friends and family), you will probably also use other capital sources, such as credit cards and business credit, in growing your company.

10. Appendix

The appendix is used to support the rest of the business plan. Every business plan should have a full set of financial projections in the appendix, with the summary of these financials in the executive summary and the financial plan. Other documentation that could appear in the appendix includes technical drawings, partnership and/or customer letters, expanded competitor reviews and/or customer lists.

Find additional business plan help articles here.

Expertly and comprehensively discussing these components in their business plan helps entrepreneurs to better understand their business opportunity and assists them in convincing investors that the opportunity may be right for them too.

In addition to ensuring you included the proper elements of a business plan when developing your plan always think about why you are uniquely qualified to succeed in your business. For example, is your team’s expertise something that’s unique and can ensure your success? Or is it marketing partnerships you have executed? Importantly, if you don’t have any unique success factors, think about what you can add to make your company unique. Doing so can dramatically improve your success. Also, whether you write it on a word processor or use business plan software , remember to update your plan at least annually. After several years, you should have several business plans you can review to see what worked and what didn’t. This should prove helpful as you create future plans for your company’s growth.

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12 Key Elements of a Business Plan (Top Components Explained)

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Starting and running a successful business requires proper planning and execution of effective business tactics and strategies .

You need to prepare many essential business documents when starting a business for maximum success; the business plan is one such document.

When creating a business, you want to achieve business objectives and financial goals like productivity, profitability, and business growth. You need an effective business plan to help you get to your desired business destination.

Even if you are already running a business, the proper understanding and review of the key elements of a business plan help you navigate potential crises and obstacles.

This article will teach you why the business document is at the core of any successful business and its key elements you can not avoid.

Let’s get started.

Why Are Business Plans Important?

Business plans are practical steps or guidelines that usually outline what companies need to do to reach their goals. They are essential documents for any business wanting to grow and thrive in a highly-competitive business environment .

1. Proves Your Business Viability

A business plan gives companies an idea of how viable they are and what actions they need to take to grow and reach their financial targets. With a well-written and clearly defined business plan, your business is better positioned to meet its goals.

2. Guides You Throughout the Business Cycle

A business plan is not just important at the start of a business. As a business owner, you must draw up a business plan to remain relevant throughout the business cycle .

During the starting phase of your business, a business plan helps bring your ideas into reality. A solid business plan can secure funding from lenders and investors.

After successfully setting up your business, the next phase is management. Your business plan still has a role to play in this phase, as it assists in communicating your business vision to employees and external partners.

Essentially, your business plan needs to be flexible enough to adapt to changes in the needs of your business.

3. Helps You Make Better Business Decisions

As a business owner, you are involved in an endless decision-making cycle. Your business plan helps you find answers to your most crucial business decisions.

A robust business plan helps you settle your major business components before you launch your product, such as your marketing and sales strategy and competitive advantage.

4. Eliminates Big Mistakes

Many small businesses fail within their first five years for several reasons: lack of financing, stiff competition, low market need, inadequate teams, and inefficient pricing strategy.

Creating an effective plan helps you eliminate these big mistakes that lead to businesses' decline. Every business plan element is crucial for helping you avoid potential mistakes before they happen.

5. Secures Financing and Attracts Top Talents

Having an effective plan increases your chances of securing business loans. One of the essential requirements many lenders ask for to grant your loan request is your business plan.

A business plan helps investors feel confident that your business can attract a significant return on investments ( ROI ).

You can attract and retain top-quality talents with a clear business plan. It inspires your employees and keeps them aligned to achieve your strategic business goals.

Key Elements of Business Plan

Starting and running a successful business requires well-laid actions and supporting documents that better position a company to achieve its business goals and maximize success.

A business plan is a written document with relevant information detailing business objectives and how it intends to achieve its goals.

With an effective business plan, investors, lenders, and potential partners understand your organizational structure and goals, usually around profitability, productivity, and growth.

Every successful business plan is made up of key components that help solidify the efficacy of the business plan in delivering on what it was created to do.

Here are some of the components of an effective business plan.

1. Executive Summary

One of the key elements of a business plan is the executive summary. Write the executive summary as part of the concluding topics in the business plan. Creating an executive summary with all the facts and information available is easier.

In the overall business plan document, the executive summary should be at the forefront of the business plan. It helps set the tone for readers on what to expect from the business plan.

A well-written executive summary includes all vital information about the organization's operations, making it easy for a reader to understand.

The key points that need to be acted upon are highlighted in the executive summary. They should be well spelled out to make decisions easy for the management team.

A good and compelling executive summary points out a company's mission statement and a brief description of its products and services.

Executive Summary of the Business Plan

An executive summary summarizes a business's expected value proposition to distinct customer segments. It highlights the other key elements to be discussed during the rest of the business plan.

Including your prior experiences as an entrepreneur is a good idea in drawing up an executive summary for your business. A brief but detailed explanation of why you decided to start the business in the first place is essential.

Adding your company's mission statement in your executive summary cannot be overemphasized. It creates a culture that defines how employees and all individuals associated with your company abide when carrying out its related processes and operations.

Your executive summary should be brief and detailed to catch readers' attention and encourage them to learn more about your company.

Components of an Executive Summary

Here are some of the information that makes up an executive summary:

  • The name and location of your company
  • Products and services offered by your company
  • Mission and vision statements
  • Success factors of your business plan

2. Business Description

Your business description needs to be exciting and captivating as it is the formal introduction a reader gets about your company.

What your company aims to provide, its products and services, goals and objectives, target audience , and potential customers it plans to serve need to be highlighted in your business description.

A company description helps point out notable qualities that make your company stand out from other businesses in the industry. It details its unique strengths and the competitive advantages that give it an edge to succeed over its direct and indirect competitors.

Spell out how your business aims to deliver on the particular needs and wants of identified customers in your company description, as well as the particular industry and target market of the particular focus of the company.

Include trends and significant competitors within your particular industry in your company description. Your business description should contain what sets your company apart from other businesses and provides it with the needed competitive advantage.

In essence, if there is any area in your business plan where you need to brag about your business, your company description provides that unique opportunity as readers look to get a high-level overview.

Components of a Business Description

Your business description needs to contain these categories of information.

  • Business location
  • The legal structure of your business
  • Summary of your business’s short and long-term goals

3. Market Analysis

The market analysis section should be solely based on analytical research as it details trends particular to the market you want to penetrate.

Graphs, spreadsheets, and histograms are handy data and statistical tools you need to utilize in your market analysis. They make it easy to understand the relationship between your current ideas and the future goals you have for the business.

All details about the target customers you plan to sell products or services should be in the market analysis section. It helps readers with a helpful overview of the market.

In your market analysis, you provide the needed data and statistics about industry and market share, the identified strengths in your company description, and compare them against other businesses in the same industry.

The market analysis section aims to define your target audience and estimate how your product or service would fare with these identified audiences.

Components of Market Analysis

Market analysis helps visualize a target market by researching and identifying the primary target audience of your company and detailing steps and plans based on your audience location.

Obtaining this information through market research is essential as it helps shape how your business achieves its short-term and long-term goals.

Market Analysis Factors

Here are some of the factors to be included in your market analysis.

  • The geographical location of your target market
  • Needs of your target market and how your products and services can meet those needs
  • Demographics of your target audience

Components of the Market Analysis Section

Here is some of the information to be included in your market analysis.

  • Industry description and statistics
  • Demographics and profile of target customers
  • Marketing data for your products and services
  • Detailed evaluation of your competitors

4. Marketing Plan

A marketing plan defines how your business aims to reach its target customers, generate sales leads, and, ultimately, make sales.

Promotion is at the center of any successful marketing plan. It is a series of steps to pitch a product or service to a larger audience to generate engagement. Note that the marketing strategy for a business should not be stagnant and must evolve depending on its outcome.

Include the budgetary requirement for successfully implementing your marketing plan in this section to make it easy for readers to measure your marketing plan's impact in terms of numbers.

The information to include in your marketing plan includes marketing and promotion strategies, pricing plans and strategies , and sales proposals. You need to include how you intend to get customers to return and make repeat purchases in your business plan.

Marketing Strategy vs Marketing Plan

5. Sales Strategy

Sales strategy defines how you intend to get your product or service to your target customers and works hand in hand with your business marketing strategy.

Your sales strategy approach should not be complex. Break it down into simple and understandable steps to promote your product or service to target customers.

Apart from the steps to promote your product or service, define the budget you need to implement your sales strategies and the number of sales reps needed to help the business assist in direct sales.

Your sales strategy should be specific on what you need and how you intend to deliver on your sales targets, where numbers are reflected to make it easier for readers to understand and relate better.

Sales Strategy

6. Competitive Analysis

Providing transparent and honest information, even with direct and indirect competitors, defines a good business plan. Provide the reader with a clear picture of your rank against major competitors.

Identifying your competitors' weaknesses and strengths is useful in drawing up a market analysis. It is one information investors look out for when assessing business plans.

Competitive Analysis Framework

The competitive analysis section clearly defines the notable differences between your company and your competitors as measured against their strengths and weaknesses.

This section should define the following:

  • Your competitors' identified advantages in the market
  • How do you plan to set up your company to challenge your competitors’ advantage and gain grounds from them?
  • The standout qualities that distinguish you from other companies
  • Potential bottlenecks you have identified that have plagued competitors in the same industry and how you intend to overcome these bottlenecks

In your business plan, you need to prove your industry knowledge to anyone who reads your business plan. The competitive analysis section is designed for that purpose.

7. Management and Organization

Management and organization are key components of a business plan. They define its structure and how it is positioned to run.

Whether you intend to run a sole proprietorship, general or limited partnership, or corporation, the legal structure of your business needs to be clearly defined in your business plan.

Use an organizational chart that illustrates the hierarchy of operations of your company and spells out separate departments and their roles and functions in this business plan section.

The management and organization section includes profiles of advisors, board of directors, and executive team members and their roles and responsibilities in guaranteeing the company's success.

Apparent factors that influence your company's corporate culture, such as human resources requirements and legal structure, should be well defined in the management and organization section.

Defining the business's chain of command if you are not a sole proprietor is necessary. It leaves room for little or no confusion about who is in charge or responsible during business operations.

This section provides relevant information on how the management team intends to help employees maximize their strengths and address their identified weaknesses to help all quarters improve for the business's success.

8. Products and Services

This business plan section describes what a company has to offer regarding products and services to the maximum benefit and satisfaction of its target market.

Boldly spell out pending patents or copyright products and intellectual property in this section alongside costs, expected sales revenue, research and development, and competitors' advantage as an overview.

At this stage of your business plan, the reader needs to know what your business plans to produce and sell and the benefits these products offer in meeting customers' needs.

The supply network of your business product, production costs, and how you intend to sell the products are crucial components of the products and services section.

Investors are always keen on this information to help them reach a balanced assessment of if investing in your business is risky or offer benefits to them.

You need to create a link in this section on how your products or services are designed to meet the market's needs and how you intend to keep those customers and carve out a market share for your company.

Repeat purchases are the backing that a successful business relies on and measure how much customers are into what your company is offering.

This section is more like an expansion of the executive summary section. You need to analyze each product or service under the business.

9. Operating Plan

An operations plan describes how you plan to carry out your business operations and processes.

The operating plan for your business should include:

  • Information about how your company plans to carry out its operations.
  • The base location from which your company intends to operate.
  • The number of employees to be utilized and other information about your company's operations.
  • Key business processes.

This section should highlight how your organization is set up to run. You can also introduce your company's management team in this section, alongside their skills, roles, and responsibilities in the company.

The best way to introduce the company team is by drawing up an organizational chart that effectively maps out an organization's rank and chain of command.

What should be spelled out to readers when they come across this business plan section is how the business plans to operate day-in and day-out successfully.

10. Financial Projections and Assumptions

Bringing your great business ideas into reality is why business plans are important. They help create a sustainable and viable business.

The financial section of your business plan offers significant value. A business uses a financial plan to solve all its financial concerns, which usually involves startup costs, labor expenses, financial projections, and funding and investor pitches.

All key assumptions about the business finances need to be listed alongside the business financial projection, and changes to be made on the assumptions side until it balances with the projection for the business.

The financial plan should also include how the business plans to generate income and the capital expenditure budgets that tend to eat into the budget to arrive at an accurate cash flow projection for the business.

Base your financial goals and expectations on extensive market research backed with relevant financial statements for the relevant period.

Examples of financial statements you can include in the financial projections and assumptions section of your business plan include:

  • Projected income statements
  • Cash flow statements
  • Balance sheets
  • Income statements

Revealing the financial goals and potentials of the business is what the financial projection and assumption section of your business plan is all about. It needs to be purely based on facts that can be measurable and attainable.

11. Request For Funding

The request for funding section focuses on the amount of money needed to set up your business and underlying plans for raising the money required. This section includes plans for utilizing the funds for your business's operational and manufacturing processes.

When seeking funding, a reasonable timeline is required alongside it. If the need arises for additional funding to complete other business-related projects, you are not left scampering and desperate for funds.

If you do not have the funds to start up your business, then you should devote a whole section of your business plan to explaining the amount of money you need and how you plan to utilize every penny of the funds. You need to explain it in detail for a future funding request.

When an investor picks up your business plan to analyze it, with all your plans for the funds well spelled out, they are motivated to invest as they have gotten a backing guarantee from your funding request section.

Include timelines and plans for how you intend to repay the loans received in your funding request section. This addition keeps investors assured that they could recoup their investment in the business.

12. Exhibits and Appendices

Exhibits and appendices comprise the final section of your business plan and contain all supporting documents for other sections of the business plan.

Some of the documents that comprise the exhibits and appendices section includes:

  • Legal documents
  • Licenses and permits
  • Credit histories
  • Customer lists

The choice of what additional document to include in your business plan to support your statements depends mainly on the intended audience of your business plan. Hence, it is better to play it safe and not leave anything out when drawing up the appendix and exhibit section.

Supporting documentation is particularly helpful when you need funding or support for your business. This section provides investors with a clearer understanding of the research that backs the claims made in your business plan.

There are key points to include in the appendix and exhibits section of your business plan.

  • The management team and other stakeholders resume
  • Marketing research
  • Permits and relevant legal documents
  • Financial documents

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This insights and his love for researching SaaS products enables him to provide in-depth, fact-based software reviews to enable software buyers make better decisions.

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8.6: Business Plans

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What you’ll learn to do: list and describe the key components of a business plan

A sign post with nine different signs pointing to different locations with the distance to each location written out. Malibu is 1760 miles away. Nassau is 797 miles away. Shaggy's PC is 19 miles away. Destin is 145 miles away. Cancun is 648 miles away. Maui is 4204 miles away. Port Eads is 96 miles away. Miami Beach is 626 miles away. Montego Bay is 1073 miles away.

Business planning forces an entrepreneur to develop a detailed understanding of the market—including their unique value proposition, competitive strategy, and what it will take to succeed. This understanding includes specific operating and financial statement terms, which often take a significant amount of research and time to discover.

In this section, we will focus in on the business plan, which pulls together the research, analysis and self-assessment of prior sections.

Learning Objectives

  • Briefly describe the components of a business plan

Create Your Business Plan

A cartoon showing the business plan for creating "chicken milk": man buys chicken, chicken produces milk, man receives money.

Executive Summary

Company Description

Market Analysis

Organization & Management

Service or Product Line

Marketing & Sales

  • Funding Request

Financial Projections

The SBA provides two example business plans for reference: consulting firm and toy manufacturer.

Note that the length and depth of business plans vary depending on the audience and objective. For example, a business owner(s) seeking a traditional bank loan will likely need a more detailed plan. An alternative is the lean business plan, which PaloAlto Software and BPlan founder and CEO Tim Berry claims can be completed in an hour. The process and timeframe is probably more applicable to a seasoned entrepreneur, but it may be worth reading Berry’s Fundamentals of Lean Business Planning blog post to see if it’s a fit. There are a number of one page business plan templates freely available online; to view a range of options, conduct an image search on “one page business plan template.” A final approach for consideration is venture capitalist Guy Kawasaki’s 10/20/30 formula: 10 slides, 20 minutes, 30 point font. In those 10 slides, Kawasaki recommends eliminating pitch-speak and focusing on the topics that matter to a VC:

  • Your solution
  • Business model
  • Underlying magic/technology
  • Marketing and sales
  • Competition
  • Projections and milestones
  • Status and timeline
  • Summary and call to action

practice question \(\PageIndex{1}\)

The SBA recommends that a business plan addresses the following major elements EXCEPT:

  • Funding request
  • Company description
  • Market analysis
  • IT analysis

D. Correct. IT strategy is not a major element addressed in a business plan.

Understanding the Components of Business Plans

Although terminology and formats differ, most business plans include the same key ingredients. Let’s drill down into the elements SBA recommends:

Briefly summarize what you do (Product or Service) for whom (Target Market) and what will make you successful. Elements to include: mission statement, management and organizational structure highlights, intended location and scale of operation. If you’re seeking financing, include summary-level financial information and growth projections.

In this section, provide a more detailed description of your company, including the opportunity (aka market problem addressed) and your solution. Be specific in identifying your target market, including a description of the consumer profile or list of target businesses or organizations. This is where detail your competitive advantage, including management expertise and/or product, process, or other differentiators.

This is where the rigor of your research pays off. Use this section to summarize your understanding of the economy, industry, your target market and related trends and developments. This is also where you would incorporate competitive research, including success factors and what your positioning and value proposition will be relative to competitors. For perspective on competitive mapping, see the links to sample analyses below:

  • Business News Daily.com: Porter’s Five Forces: Analyzing the Competition
  • Simplicable’s 3 Examples of a Competitive Map
  • Harvard Business Review’s Mapping Your Competitive Position

In this section, describe your legal structure (e.g., sole proprietor, partnership, corporation) and introduce yourself and management team or advisors, if applicable. You may also want to elaborate on any related points or motivations such as a social impact or sustainability orientation. If applicable, include an organizational chart so readers can visualize who’s in charge of what functions.

You may also want to include key accomplishments to illustrate what specific expertise each person brings to the team. Key management resumes can be included in the Appendix.

Use the product or service section to detail your offerings and any market differentiators such as copyrights or patents. Explain what benefit your product or service delivers to your customers, in particular relative to competitive offerings. If applicable, highlight quality and/or process or material supply certifications and any other points that influence purchase decisions or reduce business risk.

Cliff Bar is a case study in using sustainability as a business strategy and competitive differentiator. For perspective, read UC Davis’ Clif Bar: Raises the Bar on Sustainability write-up of Clif Bar President and Chief Operating Officer Kevin Cleary’s Dean’s Distinguished Speaker presentation. Research and development activities and any related funding should also be detailed in this section.

In a world where consumers are overwhelmed by choices, you can’t expect a better product or service to win on merit alone. Your task in this section is to describe your plan to bring your product or service to market. You should also detail how the sales will happen so related costs and technology can be factored into your financials. The complexity of your marketing activities and sales process (and corresponding sales lead time) will depend on your product or service.

For a general perspective, see Fitsmallbusiness.com’s Sales Funnel Templates, Definition & Stages article. The approach that works for you will depend on your business and your nature. The good news is technology has made a range of low cost options available.

For a dose of marketing perspective and creative inspiration, read Creative Guerilla Marketing’s What is Guerilla Marketing article.

Funding Request (if applicable)

If you’re using your business plan to request funding, this section is where you’ll detail your funding requirements and the intended use of those funds over the next five years. The SBA recommends specifying whether you’re asking for debt or equity financing and your desired terms, including interest rate and time period. Provide an explanation of the funding need—for example, to cover operating expenses while building a revenue pipeline. Finally, state your future strategic plan, whether it’s paying off debt or selling the business.

A business plan is nothing without numbers and financial statements should be prepared regardless of whether you’re requesting funding or using your business plan as proof of concept. Projections should cover a five year period and include a financial outlook summary as well as forecasted income statements, balance sheets, cash flow statements and capital expenditure budgets.

The SBA advises using more detailed (quarterly or monthly) projections for the first year. This level of detail also serves as a reality check and early warning for you as a business manager as you implement your plan. If your business is an ongoing concern, include actual income statements, balance sheets, and cash flow statements for the last three to five years. If you have other assets you’re prepared to offer as collateral, list them in this section. Review your projections and funding request details to make sure the narrative and numbers are in synch. This section runs the risk of becoming a blur of numbers without significance. Be thoughtful and creative (with your design, not the numbers) in order to present your financials in a clear and compelling manner.

The Appendix is used to provide supporting detail and provide any other relevant or requested documentation. The SBA lists the following common items to include: credit histories, resumes, product pictures, letters of reference, licenses, permits, or patents, legal documents, permits, and other contracts.

SBA’s Business Plan Tool (registration required)

practice question \(\PageIndex{2}\)

In the components of a business plan, what section contains a detailed description of the company, the problem/opportunity, proposed solution to be offered, and your competitive advantage?

  • Service and Product Line
  • Organization and Management

c . The Company description offers a detailed view of those factors.

Storydoc

7 Key Components of a Precise Business Plan (2024)

Learn the art of entrepreneurship with a business plan. Dive into executive summaries, discover templates, and understand what to include for a strategic edge.

components of a business plan in entrepreneurship

Hadar Peretz

7 minute read

What is a business plan

Short answer

What is a Business Plan?

A business plan is a strategic document outlining a company's vision, objectives, market analysis, marketing and sales strategies, organizational structure, and financial projections to guide its growth.

Innovation in Planning: The Untold Ingredient to Business Success

In the turbulent landscape of entrepreneurship, where over 20% of small ventures falter in their early days , this blog post sheds light on the importance of a well-structured business plan.

It delves into the specifics of an executive summary, steps, what to include, and innovation in business planning , guiding businesses to thrive rather than become failure statistics.

3 Main Purposes of a Business Plan

Embarking on the entrepreneurial journey without a business plan is like sailing in turbulent waters without a map.

A business plan serves three pivotal roles that steer the helm of a startup toward the shores of success.

1) Navigation Tool: Direction for Your Business

A business plan is your business’s North Star, providing direction and ensuring you stay on course amidst the storm of uncertainties.

Let’s take the example of “Bean There Coffee Shop,” a start-up that envisioned being a community hub. Their business plan outlined their mission, target market, competition analysis, and financial forecasts.

This helped them navigate the competition and establish a loyal customer base by providing a cozy ambiance that encouraged customer interaction.

2) Attraction for Investments: Encouraging Potential Investors

Your business plan is your passport to the realm of investors. Bean There Coffee Shop required a modern interior to reflect its brand's personality.

The detailed business plan showcased their unique selling proposition to investors, who were enticed by the predicted ROI and agreed to fund the renovations.

3) Measurement of Success: Evaluating Progress and Growth

A business plan sets a baseline to measure progress. Bean There Coffee Shop sets quarterly targets for customer retention and revenue in its business plan.

By comparing actual performance with the plan, they gauged their success and identified areas for improvement.

6 Key Elements of a Business Plan

Drafting a business plan might seem daunting initially, but breaking it down into core components makes it manageable and effective.

It’s about telling your business’s story in a compelling way to garner support and guide your actions.

1) Executive Summary

The executive summary is your business narrative condensed into a snapshot. For instance, the executive summary of Bean There Coffee Shop encapsulated its vision, mission, the experience it aimed to provide, and financial aspirations succinctly, giving readers an essence of what to expect in the subsequent sections.

For more information on executive summary design, delve into the design aspects of an executive summary. To glean insights on crafting a compelling and visually appealing executive summary for your startup venture.

2) Company Description

Delve into the what and why of your business. Bean There Coffee Shop described its longing to foster community interactions, reflecting its ethos in its service and interior design, resonating with the locals and creating a clientele.

3) Market Analysis

Understanding your market landscape is crucial. Analyze your competitors, the preferences of your target audience, and market trends.

For Bean There Coffee Shop, studying coffee consumption trends and identifying a locale lacking a community-centric cafe was a game-changer.

4) Organization and Management

Outline your business structure and team. Investors want to know who steers the ship.

At Bean There Coffee Shop, the experienced baristas and a seasoned manager showcased a competent team, instilling confidence in potential investors.

5) Product Line

Describe your offerings. Bean There Coffee Shop highlighted its organic coffee and locally sourced pastries, striking a chord with environmentally conscious consumers.

6) Marketing and Sales

How you plan to lure customers and keep them coming back is vital. Bean There Coffee Shop’s loyalty programs and community events were a hit, creating a buzz and building a loyal customer base.

What is a Business Plan in Entrepreneurship?

In the realm of entrepreneurship, a business plan goes beyond being just a document—it is a vibrant testament to your business vision and the roadmap illustrating how you aim to overcome challenges and achieve your objectives.

It's like the script of your entrepreneurial saga waiting to unfold.

A Framework for Strategy

A business plan embodies the strategy and operations of your entrepreneurial endeavor. Here's a simplified breakdown of what it may encompass:

Market Analysis: A thorough exploration of the market including size, demographics, and consumer behaviors.

Competitor Analysis: A detailed examination of competitors, their strengths, weaknesses, and market position.

Marketing Strategy: Tactics and channels you plan to use to promote your business.

Financial Projections: Anticipated income, expenses, and profitability over a certain period.

Risk Management

Venturing into entrepreneurship is akin to navigating turbulent waters, where risks are inevitable. A business plan aids in:

Identifying Potential Risks: Whether it's market fluctuation or operational challenges, a business plan helps in foreseeing possible hurdles.

Devising Contingency Plans: Strategies to mitigate identified risks, ensuring the business stays on the right track.

For instance, a cafe's business plan might highlight the risk of decreased foot traffic during winter months and propose hosting indoor events or offering seasonal promotions to maintain revenue.

Communication with Stakeholders

A business plan serves as a conduit between entrepreneurs and stakeholders, articulating the business vision, goals, and strategies.

When seeking investments for expansion, a well-drafted business plan can effectively communicate the growth potential and return on investment to investors, facilitating the funding process.

7 Steps of a Business Plan

Creating a business plan is a blend of art and science, distilled into seven systematic steps to ensure your entrepreneurial venture is on a trajectory toward success.

1) Research, Research, and Research

Before you set pen to paper, immerse yourself in thorough research about your industry, market, and competition. This step lays the groundwork for informed decision-making as you progress through subsequent stages of business planning.

Industry Insights: Delve into current industry trends, challenges, and opportunities to gain a comprehensive understanding.

Market Dynamics: Explore market demographics, customer preferences, and purchasing behaviors to tailor your business approach.

Competitor Analysis: Assess the strengths, weaknesses, and market positioning of competitors to identify your business’s unique selling proposition.

2) Defining Your Business Objectives

Having clear objectives is crucial. Whether it's capturing market share, hitting revenue targets, or achieving expansion goals, defining these objectives paves the way for a focused strategy.

Establishing well-defined objectives also serves as a yardstick for measuring your business’s performance over time.

3) Company Description

Articulate the ethos, offerings, and unique value proposition of your business.

Providing a compelling company description helps stakeholders, including potential investors and employees, to grasp your business's mission and the problems it aims to solve

4) Market Analysis

Delve into market trends, customer behavior, and competition analysis to tailor your strategies.

A robust market analysis provides the data necessary to target your audience effectively and position your business for success in a competitive landscape.

5) Organization and Management

Detail your organizational structure, key team members, and their expertise.

Illustrating a solid organizational structure demonstrates your business’s capacity to execute its strategies and achieve its objectives.

6) Service or Product Line

Describe your products or services, highlighting the benefits to customers. Detailing the attributes and advantages of your offerings allows stakeholders to understand the value your business brings to the market.

7. Marketing and Sales

Illustrate your marketing and sales strategy to attract and retain customers.

Outlining clear strategies for marketing and sales is crucial for driving business growth and achieving your financial objectives.

Market Positioning: Define how your products or services will be positioned in the market and how you intend to differentiate your offerings from competitors.

Promotional Strategies: Outline the various promotional tactics you will employ, such as social media marketing, search engine optimization, and paid advertising.

Sales Process: Describe the steps of your sales process from lead generation to closing sales, and identify the metrics you will use to measure sales effectiveness.

Customer Retention: Highlight the strategies for customer retention such as loyalty programs, excellent customer service, and regular engagement to keep customers coming back.

Pricing Strategy: Determine the pricing strategy that will be most effective for your market, considering factors like cost, competition, and perceived value.

Time to Master Your Business Pitch

Now that you have a robust business plan, it’s time to translate it into a compelling business pitch.

The mastery of your pitch lies in knowing your audience, presenting data compellingly, and choosing the right format for resonance.

Understanding Audience Expectations

Understanding your audience is pivotal. Tailoring your pitch to meet the expectations of investors, potential partners, or customers enhances its effectiveness significantly.

Here’s our CEO, Itai Amoza, discussing the key elements that make a presentation engaging:

How to make a presentation engaging

Emphasizing Data Visualization for a Better Appeal

Visual presentation of data, through graphs or charts, can make complex information easily digestible.

Using the right data visualization tools can effectively narrate the story of your venture compellingly.

PDF (conservative) vs. Interactive

Choosing between a traditional PDF or interactive presentations like those on Storydoc or PowerPoint can significantly impact the engagement level of your audience.

Interactive formats allow for dynamic presentations with embedded videos and other multimedia elements making your pitch more engaging and memorable.

components of a business plan in entrepreneurship

Consider Business Plan One-pager

Creating a one-page business plan rather than a multi-page business plan involves summarizing your business's essential aspects concisely.

This includes your value proposition, company overview, market analysis, the problem and solution, marketing strategy, financial projections, and a call to action for potential investors or partners.

Ready to Narrate Your Story? Begin with This Business Plan Template

Ah, the exhilarating journey of a startup. It's like crafting a story, with characters, plots, and a dash of suspense on what the next chapter brings.

Now, before you get swept away in this narrative, remember, that every good story needs a structured outline, and in the startup world, that outline is your business plan.

Pick a business plan one-pager template:

Create story from scratch

 business plan one pager presentation template

I am a Marketing Specialist at Storydoc, I research, analyze and write on our core topics of business presentations, sales, and fundraising. I love talkig to clients about their successes and failures so I can get a rounded understanding of their world.

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17 Main Components of a Business Plan in Entrepreneurship

Starting a new business venture is an exciting and challenging endeavor that requires careful planning and strategic thinking. A well-structured business plan is the cornerstone of any entrepreneurial journey, serving as a roadmap that guides you through the complexities of turning your vision into a reality.

components of a business plan in entrepreneurship

The introduction of your business plan should capture the essence of your entrepreneurial vision. Begin by articulating your business idea concisely and passionately. Describe the problem your venture aims to solve, the opportunity you’ve identified, and why you are uniquely positioned to seize it.

A compelling introduction not only grabs the reader’s attention but also sets the tone for the rest of the plan.

What are the Components of a Business Plan in Entrepreneurship?

Following are the key components of a business plan designed specifically for entrepreneurship, providing you with the insights you need to craft a plan that sets the stage for success.

1. Executive Summary

The executive summary is a concise overview of your entire business plan.

It should encapsulate your business concept, target market, value proposition, competitive landscape, marketing strategy , financial projections, and funding requirements.

This section provides potential investors, partners, and stakeholders with a snapshot of your business’s potential and what they can expect to find in the subsequent sections.

2. Market Analysis

In the market analysis section, delve into the industry landscape in which your business will operate. Identify industry trends, market size, growth potential, and any regulatory factors that may impact your venture.

Conduct a thorough analysis of your target market, including demographics, psychographics, and consumer behavior .

Uncover the pain points and unmet needs of your audience to validate your business idea and ensure its alignment with market demands.

3. Competitive Analysis

Competitive analysis is crucial for understanding the competitive dynamics of your industry and positioning your business effectively. Identify your direct and indirect competitors, analyzing their strengths, weaknesses, and strategies.

Highlight your unique value proposition and differentiators that set you apart in the market.

Demonstrating a deep understanding of your competition and how you plan to carve out your niche will instill confidence in your potential investors and partners.

4. Business Model

Detail your business model, which outlines how your venture will generate revenue. Describe your pricing strategy , revenue streams, and sales channels.

Address the scalability and sustainability of your business model, considering factors such as customer acquisition costs, lifetime value of a customer, and repeat business opportunities.

A clear and viable business model is integral to demonstrating the financial feasibility of your entrepreneurial venture .

5. Marketing and Sales Strategies

In this section, outline your marketing and sales strategies for attracting and retaining customers.

Define your target audience and segment them based on relevant criteria. Describe your marketing tactics, including digital marketing , content creation, social media engagement, and public relations efforts.

Present your sales funnel , detailing the stages from lead generation to conversion. Effective marketing and sales strategies are the engines that drive customer engagement and revenue growth.

6. Product or Service Offering

Present a comprehensive overview of your product or service offerings. Highlight the unique features, benefits, and solutions they provide to your target market.

Explain your product development process , emphasizing any proprietary technology or intellectual property that gives your offerings a competitive edge.

Use this section to convey the value your products or services bring to customers and the market as a whole.

7. Operational Plan

The operational plan outlines how your business will function on a day-to-day basis. Describe your production process, supply chain management , inventory control , and quality assurance procedures.

Discuss your physical location (if applicable), technology infrastructure, and key partnerships. Detail the roles and responsibilities of your team members and how they contribute to achieving your business goals.

A well-structured operational plan ensures the smooth execution of your strategies.

8. Management and Team

Investors often look closely at the management team’s qualifications and experience.

Provide detailed information about the key members of your team, including their backgrounds, expertise, and previous successes.

Explain how their skills complement each other and contribute to the overall success of the venture. If there are any gaps in the team’s skill set, discuss how you plan to address them through hiring, partnerships, or training.

9. Financial Projections

The financial projections section is a critical component of any business plan , showcasing your understanding of the financial aspects of your venture.

Present projected income statements, balance sheets , and cash flow statements for the next three to five years.

Base your projections on realistic assumptions, taking into account market trends , competition, and economic conditions. Include different scenarios to demonstrate your business’s resilience in various situations.

10. Funding Request and Use of Funds

If you’re seeking funding, clearly state the amount of capital you need and how you intend to use it.

elements of a business plan in entrepreneurship

Provide a breakdown of the expenses, such as product development, marketing, operations, and working capital. Justify the requested amount by aligning it with your financial projections and the growth trajectory of your business.

Transparency in your funding request builds credibility and instills confidence in potential investors.

11. Exit Strategy: Preparing for the Next Chapter

While an exit strategy may seem premature in the early stages, it’s a crucial consideration for investors and entrepreneurs alike.

Describe the potential paths for exiting the business, whether through acquisition, initial public offering ( IPO ), or other means.

Discuss your triggers for considering an exit and the factors that would make your venture an attractive opportunity for potential acquirers or investors.

12. Milestones and Timelines

Articulate the key milestones that mark your journey from startup to success.

These could include product development phases, market penetration goals, revenue targets, and expansion plans .

Assign realistic timelines to each milestone to create a clear roadmap for your progress. Demonstrating your ability to set and achieve milestones indicates a well-structured approach to growth.

13. Risk Assessment and Mitigation

Entrepreneurship comes with inherent risks. In this section, identify potential risks that could impact your business, such as market volatility, regulatory changes, or technological disruptions.

For each risk, detail a mitigation strategy that outlines how you plan to minimize its impact. A thorough risk assessment demonstrates foresight and preparedness, qualities that instill confidence in stakeholders.

14. Intellectual Property Strategy

If your business involves proprietary technology, inventions, or creative works, outline your intellectual property (IP) strategy.

Detail any patents, trademarks, copyrights, or trade secrets associated with your products or services.

Explain how you plan to protect your IP and capitalize on its value. This section not only safeguards your innovations but also enhances your business’s competitive edge.

15. Marketing and Sales Metrics

Expand on your marketing and sales strategies by introducing key performance indicators (KPIs) that will gauge their effectiveness.

These metrics could include customer acquisition cost, customer lifetime value, conversion rates, and return on investment for various marketing channels .

Demonstrating a data-driven approach to measuring success reinforces your commitment to achieving tangible results.

16. Implementation Plan

Translate the strategies and ideas outlined in your business plan into actionable steps with an implementation plan .

Break down your strategies into specific tasks, assign responsibilities, and set deadlines.

This plan provides a detailed playbook for your team, ensuring that everyone is aligned and accountable for executing the strategies outlined in the plan.

17. Appendix: Supporting Documentation

The appendix is your repository of supporting documents that lend credibility and depth to your business plan.

Include relevant materials such as market research reports, legal agreements, resumes of key team members, letters of intent from potential customers or partners, and any other pertinent information.

While not part of the main narrative, the appendix offers readers the opportunity to delve deeper into the specifics.

Conclusion:

Crafting a comprehensive business plan for your entrepreneurial venture is a meticulous process that requires dedication and strategic thinking.

Each component serves as a building block that contributes to the overall foundation of your business plan.

From understanding the market landscape to projecting financial performance and planning for growth, a well-structured business plan is your guide to navigating the challenges and opportunities that entrepreneurship presents.

Remember that your business plan is not a static document; it evolves as your business evolves, guiding you toward your entrepreneurial aspirations.

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The Three Basic Components of a Good Estate Plan

components of a business plan in entrepreneurship

February 24, 2024 — 05:30 am EST

Written by Jason “JB” Beckett for Kiplinger  ->

We spend most of our lives planning for the future, and it starts from a very young age. You probably remember being asked what you wanted to be when you grew up. And despite how many times that answer might have changed, you most likely spent the first 20 years of your life planning, preparing and working for that dream job. But what happens when it’s time to retire? That’s a question we don’t focus on nearly as much.

If you’ve been in the workforce, you know how important it is to put money away for retirement. Almost all financial advisers will tell you to start investing, whether that be through an employer-sponsored 401(k) account or a Roth IRA .

But simply making sure you have enough money to last the rest of your life isn’t enough. If you want to be in control of what happens to the empire you’ve spent your life building, then you need to start planning your estate.

As you begin to plan your estate, it’s important to know the three basic components of a good estate plan .

A personal instruction manual

First, you need to have a last will and testament. Think of your will as a personal instruction manual that details what happens to your stuff after you die. It’s important to list who gets what, ensuring that your belongings go to the right people. If you have kids or pets, you can decide who will take care of them and include it in your will.

Also be sure to designate an executor . This person will be in charge of making sure your wishes are followed, so be sure to choose someone you trust.

Next, you’ll want to appoint a durable power of attorney for assets. This person will function as a guardian over your finances and your things. They’ll be responsible for making all decisions regarding your money and assets any time you are not able. Having a durable power of attorney for assets is a great safety net to make sure your finances stay in check.

The final component to a solid estate plan is designating a health care power of attorney. This is similar to a power of attorney for assets, except this person will be in charge of making medical decisions for you if you are not able.

Minimizing taxes

The next step you’ll want to take when planning your estate is figuring out how to minimize income and estate taxes . One way to lower estate taxes is by giving gifts while you’re still alive. For 2024, you can give up to $18,000 per person of money or assets without triggering gift taxes . This can be a great way to help others, while potentially reducing what could be taxed later.

A more advanced way to plan your estate is by setting up a trust. Trusts are like magic vaults that hold your assets, allowing you to control how they are distributed. Setting up trusts can help minimize estate taxes and provide for specific needs, like education or health care expenses for your loved ones. A great trust can minimize taxes, reduce stress when a loved one passes away and expedite asset transfers while potentially avoiding probate.

According to Lisa Hostetler Brown , managing attorney for LawyerLisa, “Having the right documents in place is only half the battle. Every plan must also be properly implemented. For example, when a trust is used as part of an estate plan, it is critical that the trust be properly funded to achieve the desired result.”

Consider tax-advantaged accounts

Another option you have is to put money in accounts that come with tax benefits. Retirement accounts, like IRAs and 401(k)s allow your money to grow tax-deferred. This means you don’t pay taxes on the gains until you withdraw your funds. Tax-free accounts like Roth IRAs allow your money to grow tax-deferred but offer tax-free distributions as long as all of the rules, such as allowing the account to age for five years and waiting until at least age 59½ to make withdrawals, are followed.

Be sure to hire a skilled estate attorney to draft and review your documents. Once you pass away, you’ll need someone representing your wishes and making sure everything gets done according to your plan. Hostetler Brown asserts, “Discount estate planners or online ‘lawyer-assisted’ document-generating websites usually do not address all of the issues that may come up. If you don't know what could go wrong or what you are leaving out, how can you fix it?”

As you continue planning your estate, you want to make sure your assets are passed on to your heirs as efficiently as possible. You’ll first want to start by designating beneficiaries on all of your accounts and insurance policies. Naming beneficiaries ensures your assets go directly to the people you choose, allowing your loved ones to skip the lengthy, and sometimes costly, probate process. If done correctly, the entire process can be kept private instead of the information being advertised to the public.

Make sure to adjust the plan as your life changes

Once you’ve got your plans in place, it’s important to review them regularly. Life changes, and you’ll want to make sure your estate plan reflects that. Your plan should be reviewed and updated any time you experience significant life events, such as getting married, having kids, the death of a loved one or buying property.

Talking with your family about your estate plan may sound like something you’d rather avoid, but it’s important that you don’t avoid it. Letting them know your wishes can help avoid confusion and conflict once you’re gone. Plus, it gives you a chance to share your values and wisdom with those you care about.

Estate planning doesn’t have to be a complicated process. Breaking it down and implementing smart strategies ensure your assets are protected, taxes are minimized, and your loved ones are taken care of. Think of it as setting up a road map for the future to ensure that your legacy is remembered and celebrated for generations to come.

Related Content

  • Is Inflation a Big Retirement Worry? How to Protect Savings
  • IRS Quietly Changed the Rules on Your Children’s Inheritance
  • Eight Types of Trusts for Owners of High-Net-Worth Estates
  • 14 Rapid-Fire Estate Planning Tips
  • Estate Planning Checklist: Five Tasks to Prioritize

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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JUST RELEASED: View the 2024 Franchise 500 Ranking

The Deeptech Innovator: Aman Singh, Co-Founder & Head of Analytics, Intangles Their next trigger of growth centres around expanding presence and offerings in the global market

By Punita Sabharwal • Feb 25, 2024

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Before embarking on his entrepreneurial journey, Singh established a solid educational and professional background. At the age of 21, he secured his first patent in sentiment mining, showcasing an early commitment to innovation. He then gained valuable experience as a Decision Data Scientist at one of the world's largest investment banking firms. Eventually, he transitioned into entrepreneurship, taking his engineering thesis to market and founding a startup.

Sharing his eureka moment, Singh says, "The pivotal moment that set us on this path was the realisation of the untapped potential within onboard diagnostics data for passenger vehicles, which were primarily used for personal transportation. As we delved into this realm, it became evident that there were limited opportunities for predictive health diagnostics in personally owned and operated passenger vehicles. This limitation prompted us to shift our focus towards commercial vehicles, such as trucks and buses."

Their initial investigations concentrated on heavy commercial vehicles, boasting payload capacities exceeding 40 tonnes. In terms of fuel efficiency and its impact on Total Cost of Ownership (TCO), these vehicles were often classified as 'Gas Guzzlers,' with average fuel economies ranging from 2.5 to 3.5 kilometres per litre of diesel. Remarkably, they discovered that a staggering 40% of the vehicles in the test group harboured issues related to mission-critical components within the fuel injection, air intake, and exhaust after-treatment systems. Addressing these issues resulted in a remarkable 8% increase in fuel efficiency across the entire fleet under examination. It was at this juncture that the metaphorical light bulb began to shine brightly.

With a compelling use case now crystal clear, he embarked on the development of hardware interface, capable of seamlessly gathering data from a wide array of Commercial Vehicle platforms spanning various OEMs.

Their next trigger of growth centres around expanding presence and offerings in the global market. "Our existing operations span across 17 countries, encompassing regions such as the Middle East, APAC, South East Asia, Europe, South America, the USA, and Canada. This expansive geographical footprint positions us to tap into diverse markets and cater to a wide range of industries and clientele," shares Singh.

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UN Women Strategic Plan 2022-2025

Women and girls after two years of war in Ukraine

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Pregnant women are seen at the Kyiv Maternity Hospital in March 2022.

As of 24 February 2024, Ukrainian civilians have endured two years of war and upheaval following Russia’s full-scale invasion of the country. The conflict has touched the lives of everyone living in Ukraine, and has had particularly dire effects for women and girls.

Women, children, and female-headed households are among the most vulnerable populations , as they often lack resources and coping mechanisms, face barriers to accessing services, and are more exposed to protection risks, including gender-based violence. 

Some 14.6 million people are predicted to need humanitarian assistance in 2024, 56 per cent of whom are women and girls.

72% of those registered as unemployed are women

of those registered as unemployed are women

56% of 3.7 million internally displaced people are women and girls

of 3.7 million internally displaced people are women and girls

More than 20 million men and women lost their incomes since the start of the war

men and women lost their incomes since the start of the war

Sources: Updated Ukraine Recovery and Reconstruction Needs Assessment

UN Women has worked in Ukraine since 1999. Since 2015, UN Women has been scaling-up its presence and programme. Amid the volatility and war in Ukraine, it is more essential than ever that the rights of women and girls remain at the centre of the humanitarian response.

As women continue to suffer the consequences of this conflict, they must be represented in all decision-making platforms on de-escalation, conflict prevention, mitigation, and other processes in pursuit of peace and security for all the people of Ukraine. 

Two years after the invasion

Image placeholder with UN Women logo (English) - 3:2 aspect ratio

Over 8 million women and girls in Ukraine will need humanitarian assistance in 2024

In her own words: Halyna Skipálska, Executive Director of the Ukrainian Foundation for Public Health

In her own words: Halyna Skipálska, Executive Director of the Ukrainian Foundation for Public Health

Anastasiia Pyrohova is seen working in Sambir, Ukraine.

In the words of Anastasiia Pyrohova: ‘I help women live through their challenges and adapt to their new lives’

Yuliia Zavalniuk is seen at the Ukrainian flower-growing farm Villa Verde.

Ukrainian entrepreneur uses flower business to bridge gender gaps during wartime

Olesea Kolomiets ran a chocolate factory in Odesa, Ukraine, and has now launched a new business in Moldova.

Ukrainian refugees launch businesses and build a new community in Moldova

Holosy Voice Episode 2

New podcast explores gender issues during the war in Ukraine

  • Conflict, war
  • Peace and security

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Anastasiia Pyrohova is seen working in Sambir, Ukraine.

IMAGES

  1. 12 Key Elements of a Business Plan (Top Components Explained)

    components of a business plan in entrepreneurship

  2. Creating a Business Plan: Why it Matters and Where to Start

    components of a business plan in entrepreneurship

  3. 7 Key Elements to a Business Plan

    components of a business plan in entrepreneurship

  4. Entrepreneurship Business Plan Key Components

    components of a business plan in entrepreneurship

  5. The 4 Must-Have Components of a Business Plan

    components of a business plan in entrepreneurship

  6. Elements of a Business Plan

    components of a business plan in entrepreneurship

VIDEO

  1. What is Business?

  2. Business plan Entrepreneurship -WBD20203

  3. entrepreneurial process (process of entrepreneurship) || business organisation & management || b.com

  4. Marketing Plan

  5. Wealth: How to write the ULTIMATE Business Plan

  6. functions of entrepreneur || business organisation & management || b.com, bba, mba entrepreneurship

COMMENTS

  1. The 12 Key Components of a Business Plan (2023)

    There are 12 components of a business plan entrepreneurs must know as they lay out how their business will work. by Michael Keenan Nov 17, 2023 Start your online business today. For free. Start free trial Entrepreneurs who create business plans are more likely to succeed than those who don't.

  2. Top 10 Components of a Business Plan

    1. Executive Summary Your executive summary should appear first in your business plan. It should summarize what you expect your business to accomplish. Since it's meant to highlight what you intend to discuss in the rest of the plan, the Small Business Administration suggests that you write this section last. A good executive summary is compelling.

  3. 11.4 The Business Plan

    It typically includes background information, financial information, and a summary of the business. Investors nearly always request a formal business plan because it is an integral part of their evaluation of whether to invest in a company.

  4. Business Plan: What It Is, What's Included, and How to Write One

    Fact checked by Vikki Velasquez What Is 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...

  5. How To Write A Business Plan (2024 Guide)

    Bottom Line Frequently Asked Questions Show more Every business starts with a vision, which is distilled and communicated through a business plan. In addition to your high-level hopes and...

  6. 13 Key Business Plan Components

    13 Key Business Plan Components We've built a comprehensive guide to the major parts of a business plan for you. From elements like the executive summary to product descriptions, traction, and financials, we'll guide you on all of the key sections you should include in your business plan.

  7. Elements of a Business Plan

    Key elements that should be included are: Business concept. Describes the business, its product and the market it will serve. It should point out just exactly what will be sold, to whom and why...

  8. The Essential Guide to Writing a Business Plan

    Mini plan: The reader may request a mini plan, or a condensed version of your business plan (1-10 pages), which includes most of the same components as in a longer traditional plan -- minus the ...

  9. Business Plan: What It Is + How to Write One

    In the sections below, you'll build the following components of your business plan: Executive summary Business description Products and services Competitor analysis Marketing plan and sales strategies Brand strategy Financial planning

  10. PDF The Elements of a Business Plan: First Steps for New Entrepreneurs

    Purdue extension EC-735 The Elements of a Business Plan: First Steps for New Entrepreneurs Cole Ehmke and Jay Akridge Department of Agricultural Economics By organizing your thoughts on a possible business venture into a business plan, you begin the process of creating a successful enterprise.

  11. An Introduction to Business Plans

    Breaking these three major sections down even further, a business plan consists of seven key components: Executive summary Business description Market strategies Competitive analysis Design...

  12. Components of a Business Plan

    The 10 sections or elements of a business plan that you must include are as follows: 1. Executive Summary The executive summary provides a succinct synopsis of the business plan, and highlights the key points raised within. It often includes the company's mission statement and description of the products and services.

  13. 10 Important Components of an Effective Business Plan

    Effective business plans contain several key components that cover various aspects of a company's goals. The most important parts of a business plan include: 1. Executive summary. The executive summary is the first and one of the most critical parts of a business plan. This summary provides an overview of the business plan as a whole and ...

  14. 1.1: Chapter 1

    Make certain all of your pages are ordered and numbered correctly. 4. The usual business plan convention is to number all major sections and subsections within your plan using the format as follows: 1. First main heading. 1.1 First subheading under the first main heading. 1.1.1.

  15. 12 Key Elements of a Business Plan (Top Components Explained)

    Here are some of the components of an effective business plan. 1. Executive Summary. One of the key elements of a business plan is the executive summary. Write the executive summary as part of the concluding topics in the business plan. Creating an executive summary with all the facts and information available is easier.

  16. PDF Entrepreneur's Guide to Successful Business Planning

    A business plan is an entrepreneur's blueprint for creating the new venture. It is a bridge between an idea and reality. It is a game plan that crystallizes your business dreams and hopes that provide your motivation. It should lay out your basic idea, describe where you are now, point out where you want to go, and outline how you propose to ...

  17. 8.6: Business Plans

    What you'll learn to do: list and describe the key components of a business plan. ... Business planning forces an entrepreneur to develop a detailed understanding of the market—including their unique value proposition, competitive strategy, and what it will take to succeed. This understanding includes specific operating and financial ...

  18. Business Plan: What It Is + How to Write One

    Now that you have a clear business plan definition, continue reading to learn how to start writing a detailed plan that will guide your journey as an entrepreneur. How to write a business plan In the sections below, you'll build the following components of your business plan: Executive summary. Business description Products and services

  19. 7 Key Components of a Precise Business Plan (2023)

    Innovation in Planning: The Untold Ingredient to Business Success. In the turbulent landscape of entrepreneurship, where over 20% of small ventures falter in their early days, this blog post sheds light on the importance of a well-structured business plan.. It delves into the specifics of an executive summary, steps, what to include, and innovation in business planning, guiding businesses to ...

  20. Business Plan

    A business plan is an effective way of communicating with potential investors, and the level of expertise and time used in preparing a business plan also gives professional credibility to entrepreneurs. It analyzes and predicts the chances of success for the investor and helps to raise capital. Features of a Good Business Plan 1. Executive Summary

  21. Business Plan

    The outline of a business plan should be prepared from three perspectives - first, the market; second, the investors; and finally, the company. However, most plans tend to become business-oriented rather than focusing on the market and the investors. This might create a negative impression on the investors.

  22. 17 Main Components of a Business Plan in Entrepreneurship

    Following are the key components of a business plan designed specifically for entrepreneurship, providing you with the insights you need to craft a plan that sets the stage for success. 1. Executive Summary The executive summary is a concise overview of your entire business plan.

  23. What is a Business Plan? Elements of Business Plan (full ep)

    What Is a Business Plan?A business plan is a document that defines in detail a company's objectives and how it plans to achieve its goals. A business plan l...

  24. The Importance of a Business Plan for Entrepreneurs: 18 ...

    13. To share your business plans with coworkers and family. When you open a business, you will likely get a lot of questions about what you do from previous coworkers and family members. Drafting a business plan can help you answer these questions, sharing your goals and plans with them.

  25. The Three Basic Components of a Good Estate Plan

    The final component to a solid estate plan is designating a health care power of attorney. This is similar to a power of attorney for assets, except this person will be in charge of making medical ...

  26. The Deeptech Innovator: Aman Singh, Co-Founder & Head of ...

    55 Small Business Ideas to Start in 2024 We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024. By The Staff of Entrepreneur Media, Inc.

  27. Women and girls after two years of war in Ukraine

    Sources: Updated Ukraine Recovery and Reconstruction Needs Assessment UN Women has worked in Ukraine since 1999. Since 2015, UN Women has been scaling-up its presence and programme. Amid the volatility and war in Ukraine, it is more essential than ever that the rights of women and girls remain at the centre of the humanitarian response.