Do you REALLY need a business plan?

The top three questions that I get asked most frequently as a professional business plan writer will probably not surprise you:

  • What is the purpose of a business plan – why is it really required?
  • How is it going to benefit my business if I write a business plan?
  • Is a business plan really that important – how can I actually use it?

Keep reading to get my take on what the most essential advantages of preparing a business plan are—and why you may (not) need to prepare one.

Business Plan Purpose and Importance

The importance, purpose and benefit of a business plan is in that it enables you to validate a business idea, secure funding, set strategic goals – and then take organized action on those goals by making decisions, managing resources, risk and change, while effectively communicating with stakeholders.

Let’s take a closer look at how each of the important business planning benefits can catapult your business forward:

1. Validate Your Business Idea

The process of writing your business plan will force you to ask the difficult questions about the major components of your business, including:

  • External: industry, target market of prospective customers, competitive landscape
  • Internal: business model, unique selling proposition, operations, marketing, finance

Business planning connects the dots to draw a big picture of the entire business.

And imagine how much time and money you would save if working through a business plan revealed that your business idea is untenable. You would be surprised how often that happens – an idea that once sounded so very promising may easily fall apart after you actually write down all the facts, details and numbers.

While you may be tempted to jump directly into start-up mode, writing a business plan is an essential first step to check the feasibility of a business before investing too much time and money into it. Business plans help to confirm that the idea you are so passionate and convinced about is solid from business point of view.

Take the time to do the necessary research and work through a proper business plan. The more you know, the higher the likelihood that your business will succeed.

2. Set and Track Goals

Successful businesses are dynamic and continuously evolve. And so are good business plans that allow you to:

  • Priorities: Regularly set goals, targets (e.g., sales revenues reached), milestones (e.g. number of employees hired), performance indicators and metrics for short, mid and long term
  • Accountability: Track your progress toward goals and benchmarks
  • Course-correction: make changes to your business as you learn more about your market and what works and what does not
  • Mission: Refer to a clear set of values to help steer your business through any times of trouble

Essentially, business plan is a blueprint and an important strategic tool that keeps you focused, motivated and accountable to keep your business on track. When used properly and consulted regularly, it can help you measure and manage what you are working so hard to create – your long-term vision.

As humans, we work better when we have clear goals we can work towards. The everyday business hustle makes it challenging to keep an eye on the strategic priorities. The business planning process serves as a useful reminder.

3. Take Action

A business plan is also a plan of action . At its core, your plan identifies where you are now, where you want your business to go, and how you will get there.

Planning out exactly how you are going to turn your vision into a successful business is perhaps the most important step between an idea and reality. Success comes not only from having a vision but working towards that vision in a systematic and organized way.

A good business plan clearly outlines specific steps necessary to turn the business objectives into reality. Think of it as a roadmap to success. The strategy and tactics need to be in alignment to make sure that your day-to-day activities lead to the achievement of your business goals.

4. Manage Resources

A business plan also provides insight on how resources required for achieving your business goals will be structured and allocated according to their strategic priority. For example:

Large Spending Decisions

  • Assets: When and in what amount will the business commit resources to buy/lease new assets, such as computers or vehicles.
  • Human Resources: Objectives for hiring new employees, including not only their pay but how they will help the business grow and flourish.
  • Business Space: Information on costs of renting/buying space for offices, retail, manufacturing or other operations, for example when expanding to a new location.

Cash Flow It is essential that a business carefully plans and manages cash flows to ensure that there are optimal levels of cash in the bank at all times and avoid situations where the business could run out of cash and could not afford to pay its bills.

Revenues v. Expenses In addition, your business plan will compare your revenue forecasts to the budgeted costs to make sure that your financials are healthy and the business is set up for success.

5. Make Decisions

Whether you are starting a small business or expanding an existing one, a business plan is an important tool to help guide your decisions:

Sound decisions Gathering information for the business plan boosts your knowledge across many important areas of the business:

  • Industry, market, customers and competitors
  • Financial projections (e.g., revenue, expenses, assets, cash flow)
  • Operations, technology and logistics
  • Human resources (management and staff)
  • Creating value for your customer through products and services

Decision-making skills The business planning process involves thorough research and critical thinking about many intertwined and complex business issues. As a result, it solidifies the decision-making skills of the business owner and builds a solid foundation for strategic planning , prioritization and sound decision making in your business. The more you understand, the better your decisions will be.

Planning Thorough planning allows you to determine the answer to some of the most critical business decisions ahead of time , prepare for anticipate problems before they arise, and ensure that any tactical solutions are in line with the overall strategy and goals.

If you do not take time to plan, you risk becoming overwhelmed by countless options and conflicting directions because you are not unclear about the mission , vision and strategy for your business.

6. Manage Risk

Some level of uncertainty is inherent in every business, but there is a lot you can do to reduce and manage the risk, starting with a business plan to uncover your weak spots.

You will need to take a realistic and pragmatic look at the hard facts and identify:

  • Major risks , challenges and obstacles that you can expect on the way – so you can prepare to deal with them.
  • Weaknesses in your business idea, business model and strategy – so you can fix them.
  • Critical mistakes before they arise – so you can avoid them.

Essentially, the business plan is your safety net . Naturally, business plan cannot entirely eliminate risk, but it can significantly reduce it and prepare you for any challenges you may encounter.

7. Communicate Internally

Attract talent For a business to succeed, attracting talented workers and partners is of vital importance.

A business plan can be used as a communication tool to attract the right talent at all levels, from skilled staff to executive management, to work for your business by explaining the direction and growth potential of the business in a presentable format.

Align performance Sharing your business plan with all team members helps to ensure that everyone is on the same page when it comes to the long-term vision and strategy.

You need their buy-in from the beginning, because aligning your team with your priorities will increase the efficiency of your business as everyone is working towards a common goal .

If everyone on your team understands that their piece of work matters and how it fits into the big picture, they are more invested in achieving the objectives of the business.

It also makes it easier to track and communicate on your progress.

Share and explain business objectives with your management team, employees and new hires. Make selected portions of your business plan part of your new employee training.

8. Communicate Externally

Alliances If you are interested in partnerships or joint ventures, you may share selected sections of your plan with the potential business partners in order to develop new alliances.

Suppliers A business plan can play a part in attracting reliable suppliers and getting approved for business credit from suppliers. Suppliers who feel confident that your business will succeed (e.g., sales projections) will be much more likely to extend credit.

In addition, suppliers may want to ensure their products are being represented in the right way .

Professional Services Having a business plan in place allows you to easily share relevant sections with those you rely on to support the organization, including attorneys, accountants, and other professional consultants as needed, to make sure that everyone is on the same page.

Advisors Share the plan with experts and professionals who are in a position to give you valuable advice.

Landlord Some landlords and property managers require businesses to submit a business plan to be considered for a lease to prove that your business will have sufficient cash flows to pay the rent.

Customers The business plan may also function as a prospectus for potential customers, especially when it comes to large corporate accounts and exclusive customer relationships.

9. Secure Funding

If you intend to seek outside financing for your business, you are likely going to need a business plan.

Whether you are seeking debt financing (e.g. loan or credit line) from a lender (e.g., bank or financial institution) or equity capital financing from investors (e.g., venture or angel capital), a business plan can make the difference between whether or not – and how much – someone decides to invest.

Investors and financiers are always looking at the risk of default and the earning potential based on facts and figures. Understandably, anyone who is interested in supporting your business will want to check that you know what you are doing, that their money is in good hands, and that the venture is viable in the long run.

Business plans tend to be the most effective ways of proving that. A presentation may pique their interest , but they will most probably request a well-written document they can study in detail before they will be prepared to make any financial commitment.

That is why a business plan can often be the single most important document you can present to potential investors/financiers that will provide the structure and confidence that they need to make decisions about funding and supporting your company.

Be prepared to have your business plan scrutinized . Investors and financiers will conduct extensive checks and analyses to be certain that what is written in your business plan faithful representation of the truth.

10. Grow and Change

It is a very common misconception that a business plan is a static document that a new business prepares once in the start-up phase and then happily forgets about.

But businesses are not static. And neither are business plans. The business plan for any business will change over time as the company evolves and expands .

In the growth phase, an updated business plan is particularly useful for:

Raising additional capital for expansion

  • Seeking financing for new assets , such as equipment or property
  • Securing financing to support steady cash flows (e.g., seasonality, market downturns, timing of sale/purchase invoices)
  • Forecasting to allocate resources according to strategic priority and operational needs
  • Valuation (e.g., mergers & acquisitions, tax issues, transactions related to divorce, inheritance, estate planning)

Keeping the business plan updated gives established businesses better chance of getting the money they need to grow or even keep operating.

Business plan is also an excellent tool for planning an exit as it would include the strategy and timelines for a transfer to new ownership or dissolution of the company.

Also, if you ever make the decision to sell your business or position yourself for a merger or an acquisition , a strong business plan in hand is going to help you to maximize the business valuation.

Valuation is the process of establishing the worth of a business by a valuation expert who will draw on professional experience as well as a business plan that will outline what you have, what it’s worth now and how much will it likely produce in the future.

Your business is likely to be worth more to a buyer if they clearly understand your business model, your market, your assets and your overall potential to grow and scale .

Related Questions

Business plan purpose: what is the purpose of a business plan.

The purpose of a business plan is to articulate a strategy for starting a new business or growing an existing one by identifying where the business is going and how it will get there to test the viability of a business idea and maximize the chances of securing funding and achieving business goals and success.

Business Plan Benefits: What are the benefits of a business plan?

A business plan benefits businesses by serving as a strategic tool outlining the steps and resources required to achieve goals and make business ideas succeed, as well as a communication tool allowing businesses to articulate their strategy to stakeholders that support the business.

Business Plan Importance: Why is business plan important?

The importance of a business plan lies in it being a roadmap that guides the decisions of a business on the road to success, providing clarity on all aspects of its operations. This blueprint outlines the goals of the business and what exactly is needed to achieve them through effective management.

Sign up for our Newsletter

Get more articles just like this straight into your mailbox.

Related Posts

Recent Posts

Sign up for our newsletter for product updates, new blog posts, and the chance to be featured in our Small Business Spotlight!

importance of the business plan format

The importance of a business plan

Business plans are like road maps: it’s possible to travel without one, but that will only increase the odds of getting lost along the way.

Owners with a business plan see growth 30% faster than those without one, and 71% of the fast-growing companies have business plans . Before we get into the thick of it, let’s define and go over what a business plan actually is.

What is a business plan?

A business plan is a 15-20 page document that outlines how you will achieve your business objectives and includes information about your product, marketing strategies, and finances. You should create one when you’re starting a new business and keep updating it as your business grows.

Rather than putting yourself in a position where you may have to stop and ask for directions or even circle back and start over, small business owners often use business plans to help guide them. That’s because they help them see the bigger picture, plan ahead, make important decisions, and improve the overall likelihood of success. ‍

Why is a business plan important?

A well-written business plan is an important tool because it gives entrepreneurs and small business owners, as well as their employees, the ability to lay out their goals and track their progress as their business begins to grow. Business planning should be the first thing done when starting a new business. Business plans are also important for attracting investors so they can determine if your business is on the right path and worth putting money into.

Business plans typically include detailed information that can help improve your business’s chances of success, like:

  • A market analysis : gathering information about factors and conditions that affect your industry
  • Competitive analysis : evaluating the strengths and weaknesses of your competitors
  • Customer segmentation : divide your customers into different groups based on specific characteristics to improve your marketing
  • Marketing: using your research to advertise your business
  • Logistics and operations plans : planning and executing the most efficient production process
  • Cash flow projection : being prepared for how much money is going into and out of your business
  • An overall path to long-term growth

10 reasons why you need a business plan

I know what you’re thinking: “Do I really need a business plan? It sounds like a lot of work, plus I heard they’re outdated and I like figuring things out as I go...”.

The answer is: yes, you really do need a business plan! As entrepreneur Kevin J. Donaldson said, “Going into business without a business plan is like going on a mountain trek without a map or GPS support—you’ll eventually get lost and starve! Though it may sound tedious and time-consuming, business plans are critical to starting your business and setting yourself up for success.

To outline the importance of business plans and make the process sound less daunting, here are 10 reasons why you need one for your small business.

1. To help you with critical decisions

The primary importance of a business plan is that they help you make better decisions. Entrepreneurship is often an endless exercise in decision making and crisis management. Sitting down and considering all the ramifications of any given decision is a luxury that small businesses can’t always afford. That’s where a business plan comes in.

Building a business plan allows you to determine the answer to some of the most critical business decisions ahead of time.

Creating a robust business plan is a forcing function—you have to sit down and think about major components of your business before you get started, like your marketing strategy and what products you’ll sell. You answer many tough questions before they arise. And thinking deeply about your core strategies can also help you understand how those decisions will impact your broader strategy.

*While subscribed to Wave’s Pro Plan, get 2.9% + $0 (Visa, Mastercard, Discover) and 3.4% + $0 (Amex) per transaction for unlimited transactions during the offer period. After the offer ends: over 10 transactions per month at 2.9% + $0.60 (Visa, Mastercard, Discover) and 3.4% + $0.60 (Amex) per transaction. Discover processing is only available to US customers. See full terms and conditions.

See Terms of Service for more information.

Send invoices, get paid, track expenses, pay your team, and balance your books with our financial management software.

2. To iron out the kinks

Putting together a business plan requires entrepreneurs to ask themselves a lot of hard questions and take the time to come up with well-researched and insightful answers. Even if the document itself were to disappear as soon as it’s completed, the practice of writing it helps to articulate your vision in realistic terms and better determine if there are any gaps in your strategy.

3. To avoid the big mistakes

Only about half of small businesses are still around to celebrate their fifth birthday . While there are many reasons why small businesses fail, many of the most common are purposefully addressed in business plans.

According to data from CB Insights , some of the most common reasons businesses fail include:

  • No market need : No one wants what you’re selling.
  • Lack of capital : Cash flow issues or businesses simply run out of money.
  • Inadequate team : This underscores the importance of hiring the right people to help you run your business.
  • Stiff competition : It’s tough to generate a steady profit when you have a lot of competitors in your space.
  • Pricing : Some entrepreneurs price their products or services too high or too low—both scenarios can be a recipe for disaster.

The exercise of creating a business plan can help you avoid these major mistakes. Whether it’s cash flow forecasts or a product-market fit analysis , every piece of a business plan can help spot some of those potentially critical mistakes before they arise. For example, don’t be afraid to scrap an idea you really loved if it turns out there’s no market need. Be honest with yourself!

Get a jumpstart on your business plan by creating your own cash flow projection .

4. To prove the viability of the business

Many businesses are created out of passion, and while passion can be a great motivator, it’s not a great proof point.

Planning out exactly how you’re going to turn that vision into a successful business is perhaps the most important step between concept and reality. Business plans can help you confirm that your grand idea makes sound business sense.

A graphic showing you a “Business Plan Outline.” There are four sections on the left side: Executive Summary at the top, Company Description below it, followed by Market Analysis, and lastly Organization and Management. There was four sections on the right side. At the top: “Service or Product Line.” Below that, “Marketing and Sales.” Below that, “Funding Request.” And lastly: “Financial Projections.” At the very bottom below the left and right columns is a section that says “Appendix.

A critical component of your business plan is the market research section. Market research can offer deep insight into your customers, your competitors, and your chosen industry. Not only can it enlighten entrepreneurs who are starting up a new business, but it can also better inform existing businesses on activities like marketing, advertising, and releasing new products or services.

Want to prove there’s a market gap? Here’s how you can get started with market research.

5. To set better objectives and benchmarks

Without a business plan, objectives often become arbitrary, without much rhyme or reason behind them. Having a business plan can help make those benchmarks more intentional and consequential. They can also help keep you accountable to your long-term vision and strategy, and gain insights into how your strategy is (or isn’t) coming together over time.

6. To communicate objectives and benchmarks

Whether you’re managing a team of 100 or a team of two, you can’t always be there to make every decision yourself. Think of the business plan like a substitute teacher, ready to answer questions any time there’s an absence. Let your staff know that when in doubt, they can always consult the business plan to understand the next steps in the event that they can’t get an answer from you directly.

Sharing your business plan with team members also helps ensure that all members are aligned with what you’re doing, why, and share the same understanding of long-term objectives.

7. To provide a guide for service providers

Small businesses typically employ contractors , freelancers, and other professionals to help them with tasks like accounting , marketing, legal assistance, and as consultants. Having a business plan in place allows you to easily share relevant sections with those you rely on to support the organization, while ensuring everyone is on the same page.

8. To secure financing

Did you know you’re 2.5x more likely to get funded if you have a business plan?If you’re planning on pitching to venture capitalists, borrowing from a bank, or are considering selling your company in the future, you’re likely going to need a business plan. After all, anyone that’s interested in putting money into your company is going to want to know it’s in good hands and that it’s viable in the long run. Business plans are the most effective ways of proving that and are typically a requirement for anyone seeking outside financing.

Learn what you need to get a small business loan.

9. To better understand the broader landscape

No business is an island, and while you might have a strong handle on everything happening under your own roof, it’s equally important to understand the market terrain as well. Writing a business plan can go a long way in helping you better understand your competition and the market you’re operating in more broadly, illuminate consumer trends and preferences, potential disruptions and other insights that aren’t always plainly visible.

10. To reduce risk

Entrepreneurship is a risky business, but that risk becomes significantly more manageable once tested against a well-crafted business plan. Drawing up revenue and expense projections, devising logistics and operational plans, and understanding the market and competitive landscape can all help reduce the risk factor from an inherently precarious way to make a living. Having a business plan allows you to leave less up to chance, make better decisions, and enjoy the clearest possible view of the future of your company.

Understanding the importance of a business plan

Now that you have a solid grasp on the “why” behind business plans, you can confidently move forward with creating your own.

Remember that a business plan will grow and evolve along with your business, so it’s an important part of your whole journey—not just the beginning.

Related Posts

Now that you’ve read up on the purpose of a business plan, check out our guide to help you get started.

importance of the business plan format

The information and tips shared on this blog are meant to be used as learning and personal development tools as you launch, run and grow your business. While a good place to start, these articles should not take the place of personalized advice from professionals. As our lawyers would say: “All content on Wave’s blog is intended for informational purposes only. It should not be considered legal or financial advice.” Additionally, Wave is the legal copyright holder of all materials on the blog, and others cannot re-use or publish it without our written consent.

importance of the business plan format

What is a Business Plan? Definition, Tips, and Templates

AJ Beltis

Published: June 07, 2023

In an era where more than 20% of small enterprises fail in their first year, having a clear, defined, and well-thought-out business plan is a crucial first step for setting up a business for long-term success.

Business plan graphic with business owner, lightbulb, and pens to symbolize coming up with ideas and writing a business plan.

Business plans are a required tool for all entrepreneurs, business owners, business acquirers, and even business school students. But … what exactly is a business plan?

businessplan_0

In this post, we'll explain what a business plan is, the reasons why you'd need one, identify different types of business plans, and what you should include in yours.

What is a business plan?

A business plan is a documented strategy for a business that highlights its goals and its plans for achieving them. It outlines a company's go-to-market plan, financial projections, market research, business purpose, and mission statement. Key staff who are responsible for achieving the goals may also be included in the business plan along with a timeline.

The business plan is an undeniably critical component to getting any company off the ground. It's key to securing financing, documenting your business model, outlining your financial projections, and turning that nugget of a business idea into a reality.

What is a business plan used for?

The purpose of a business plan is three-fold: It summarizes the organization’s strategy in order to execute it long term, secures financing from investors, and helps forecast future business demands.

Business Plan Template [ Download Now ]

businessplan_2

Working on your business plan? Try using our Business Plan Template . Pre-filled with the sections a great business plan needs, the template will give aspiring entrepreneurs a feel for what a business plan is, what should be in it, and how it can be used to establish and grow a business from the ground up.

Purposes of a Business Plan

Chances are, someone drafting a business plan will be doing so for one or more of the following reasons:

1. Securing financing from investors.

Since its contents revolve around how businesses succeed, break even, and turn a profit, a business plan is used as a tool for sourcing capital. This document is an entrepreneur's way of showing potential investors or lenders how their capital will be put to work and how it will help the business thrive.

All banks, investors, and venture capital firms will want to see a business plan before handing over their money, and investors typically expect a 10% ROI or more from the capital they invest in a business.

Therefore, these investors need to know if — and when — they'll be making their money back (and then some). Additionally, they'll want to read about the process and strategy for how the business will reach those financial goals, which is where the context provided by sales, marketing, and operations plans come into play.

2. Documenting a company's strategy and goals.

A business plan should leave no stone unturned.

Business plans can span dozens or even hundreds of pages, affording their drafters the opportunity to explain what a business' goals are and how the business will achieve them.

To show potential investors that they've addressed every question and thought through every possible scenario, entrepreneurs should thoroughly explain their marketing, sales, and operations strategies — from acquiring a physical location for the business to explaining a tactical approach for marketing penetration.

These explanations should ultimately lead to a business' break-even point supported by a sales forecast and financial projections, with the business plan writer being able to speak to the why behind anything outlined in the plan.

importance of the business plan format

Free Business Plan Template

The essential document for starting a business -- custom built for your needs.

  • Outline your idea.
  • Pitch to investors.
  • Secure funding.
  • Get to work!

You're all set!

Click this link to access this resource at any time.

Free Business Plan [Template]

Fill out the form to access your free business plan., 3. legitimizing a business idea..

Everyone's got a great idea for a company — until they put pen to paper and realize that it's not exactly feasible.

A business plan is an aspiring entrepreneur's way to prove that a business idea is actually worth pursuing.

As entrepreneurs document their go-to-market process, capital needs, and expected return on investment, entrepreneurs likely come across a few hiccups that will make them second guess their strategies and metrics — and that's exactly what the business plan is for.

It ensures an entrepreneur's ducks are in a row before bringing their business idea to the world and reassures the readers that whoever wrote the plan is serious about the idea, having put hours into thinking of the business idea, fleshing out growth tactics, and calculating financial projections.

4. Getting an A in your business class.

Speaking from personal experience, there's a chance you're here to get business plan ideas for your Business 101 class project.

If that's the case, might we suggest checking out this post on How to Write a Business Plan — providing a section-by-section guide on creating your plan?

What does a business plan need to include?

  • Business Plan Subtitle
  • Executive Summary
  • Company Description
  • The Business Opportunity
  • Competitive Analysis
  • Target Market
  • Marketing Plan
  • Financial Summary
  • Funding Requirements

1. Business Plan Subtitle

Every great business plan starts with a captivating title and subtitle. You’ll want to make it clear that the document is, in fact, a business plan, but the subtitle can help tell the story of your business in just a short sentence.

2. Executive Summary

Although this is the last part of the business plan that you’ll write, it’s the first section (and maybe the only section) that stakeholders will read. The executive summary of a business plan sets the stage for the rest of the document. It includes your company’s mission or vision statement, value proposition, and long-term goals.

3. Company Description

This brief part of your business plan will detail your business name, years in operation, key offerings, and positioning statement. You might even add core values or a short history of the company. The company description’s role in a business plan is to introduce your business to the reader in a compelling and concise way.

4. The Business Opportunity

The business opportunity should convince investors that your organization meets the needs of the market in a way that no other company can. This section explains the specific problem your business solves within the marketplace and how it solves them. It will include your value proposition as well as some high-level information about your target market.

businessplan_9

5. Competitive Analysis

Just about every industry has more than one player in the market. Even if your business owns the majority of the market share in your industry or your business concept is the first of its kind, you still have competition. In the competitive analysis section, you’ll take an objective look at the industry landscape to determine where your business fits. A SWOT analysis is an organized way to format this section.

6. Target Market

Who are the core customers of your business and why? The target market portion of your business plan outlines this in detail. The target market should explain the demographics, psychographics, behavioristics, and geographics of the ideal customer.

7. Marketing Plan

Marketing is expansive, and it’ll be tempting to cover every type of marketing possible, but a brief overview of how you’ll market your unique value proposition to your target audience, followed by a tactical plan will suffice.

Think broadly and narrow down from there: Will you focus on a slow-and-steady play where you make an upfront investment in organic customer acquisition? Or will you generate lots of quick customers using a pay-to-play advertising strategy? This kind of information should guide the marketing plan section of your business plan.

8. Financial Summary

Money doesn’t grow on trees and even the most digital, sustainable businesses have expenses. Outlining a financial summary of where your business is currently and where you’d like it to be in the future will substantiate this section. Consider including any monetary information that will give potential investors a glimpse into the financial health of your business. Assets, liabilities, expenses, debt, investments, revenue, and more are all useful adds here.

So, you’ve outlined some great goals, the business opportunity is valid, and the industry is ready for what you have to offer. Who’s responsible for turning all this high-level talk into results? The "team" section of your business plan answers that question by providing an overview of the roles responsible for each goal. Don’t worry if you don’t have every team member on board yet, knowing what roles to hire for is helpful as you seek funding from investors.

10. Funding Requirements

Remember that one of the goals of a business plan is to secure funding from investors, so you’ll need to include funding requirements you’d like them to fulfill. The amount your business needs, for what reasons, and for how long will meet the requirement for this section.

Types of Business Plans

  • Startup Business Plan
  • Feasibility Business Plan
  • Internal Business Plan
  • Strategic Business Plan
  • Business Acquisition Plan
  • Business Repositioning Plan
  • Expansion or Growth Business Plan

There’s no one size fits all business plan as there are several types of businesses in the market today. From startups with just one founder to historic household names that need to stay competitive, every type of business needs a business plan that’s tailored to its needs. Below are a few of the most common types of business plans.

For even more examples, check out these sample business plans to help you write your own .

1. Startup Business Plan

businessplan_7

As one of the most common types of business plans, a startup business plan is for new business ideas. This plan lays the foundation for the eventual success of a business.

The biggest challenge with the startup business plan is that it’s written completely from scratch. Startup business plans often reference existing industry data. They also explain unique business strategies and go-to-market plans.

Because startup business plans expand on an original idea, the contents will vary by the top priority goals.

For example, say a startup is looking for funding. If capital is a priority, this business plan might focus more on financial projections than marketing or company culture.

2. Feasibility Business Plan

businessplan_4

This type of business plan focuses on a single essential aspect of the business — the product or service. It may be part of a startup business plan or a standalone plan for an existing organization. This comprehensive plan may include:

  • A detailed product description
  • Market analysis
  • Technology needs
  • Production needs
  • Financial sources
  • Production operations

According to CBInsights research, 35% of startups fail because of a lack of market need. Another 10% fail because of mistimed products.

Some businesses will complete a feasibility study to explore ideas and narrow product plans to the best choice. They conduct these studies before completing the feasibility business plan. Then the feasibility plan centers on that one product or service.

3. Internal Business Plan

businessplan_5

Internal business plans help leaders communicate company goals, strategy, and performance. This helps the business align and work toward objectives more effectively.

Besides the typical elements in a startup business plan, an internal business plan may also include:

  • Department-specific budgets
  • Target demographic analysis
  • Market size and share of voice analysis
  • Action plans
  • Sustainability plans

Most external-facing business plans focus on raising capital and support for a business. But an internal business plan helps keep the business mission consistent in the face of change.

4. Strategic Business Plan

businessplan_8

Strategic business plans focus on long-term objectives for your business. They usually cover the first three to five years of operations. This is different from the typical startup business plan which focuses on the first one to three years. The audience for this plan is also primarily internal stakeholders.

These types of business plans may include:

  • Relevant data and analysis
  • Assessments of company resources
  • Vision and mission statements

It's important to remember that, while many businesses create a strategic plan before launching, some business owners just jump in. So, this business plan can add value by outlining how your business plans to reach specific goals. This type of planning can also help a business anticipate future challenges.

5. Business Acquisition Plan

businessplan_3

Investors use business plans to acquire existing businesses, too — not just new businesses.

A business acquisition plan may include costs, schedules, or management requirements. This data will come from an acquisition strategy.

A business plan for an existing company will explain:

  • How an acquisition will change its operating model
  • What will stay the same under new ownership
  • Why things will change or stay the same
  • Acquisition planning documentation
  • Timelines for acquisition

Additionally, the business plan should speak to the current state of the business and why it's up for sale.

For example, if someone is purchasing a failing business, the business plan should explain why the business is being purchased. It should also include:

  • What the new owner will do to turn the business around
  • Historic business metrics
  • Sales projections after the acquisition
  • Justification for those projections

6. Business Repositioning Plan

businessplan_6 (1)

When a business wants to avoid acquisition, reposition its brand, or try something new, CEOs or owners will develop a business repositioning plan.

This plan will:

  • Acknowledge the current state of the company.
  • State a vision for the future of the company.
  • Explain why the business needs to reposition itself.
  • Outline a process for how the company will adjust.

Companies planning for a business reposition often do so — proactively or retroactively — due to a shift in market trends and customer needs.

For example, shoe brand AllBirds plans to refocus its brand on core customers and shift its go-to-market strategy. These decisions are a reaction to lackluster sales following product changes and other missteps.

7. Expansion or Growth Business Plan

When your business is ready to expand, a growth business plan creates a useful structure for reaching specific targets.

For example, a successful business expanding into another location can use a growth business plan. This is because it may also mean the business needs to focus on a new target market or generate more capital.

This type of plan usually covers the next year or two of growth. It often references current sales, revenue, and successes. It may also include:

  • SWOT analysis
  • Growth opportunity studies
  • Financial goals and plans
  • Marketing plans
  • Capability planning

These types of business plans will vary by business, but they can help businesses quickly rally around new priorities to drive growth.

Getting Started With Your Business Plan

At the end of the day, a business plan is simply an explanation of a business idea and why it will be successful. The more detail and thought you put into it, the more successful your plan — and the business it outlines — will be.

When writing your business plan, you’ll benefit from extensive research, feedback from your team or board of directors, and a solid template to organize your thoughts. If you need one of these, download HubSpot's Free Business Plan Template below to get started.

Editor's note: This post was originally published in August 2020 and has been updated for comprehensiveness.

businessplan_1

Don't forget to share this post!

Related articles.

24 of My Favorite Sample Business Plans & Examples For Your Inspiration

24 of My Favorite Sample Business Plans & Examples For Your Inspiration

How to Write a Powerful Executive Summary [+4 Top Examples]

How to Write a Powerful Executive Summary [+4 Top Examples]

19 Best Sample Business Plans & Examples to Help You Write Your Own

19 Best Sample Business Plans & Examples to Help You Write Your Own

Maximizing Your Social Media Strategy: The Top Aggregator Tools to Use

Maximizing Your Social Media Strategy: The Top Aggregator Tools to Use

The Content Aggregator Guide for 2023

The Content Aggregator Guide for 2023

7 Gantt Chart Examples You'll Want to Copy [+ 5 Steps to Make One]

7 Gantt Chart Examples You'll Want to Copy [+ 5 Steps to Make One]

The 8 Best Free Flowchart Templates [+ Examples]

The 8 Best Free Flowchart Templates [+ Examples]

15 Best Screen Recorders to Use for Collaboration

15 Best Screen Recorders to Use for Collaboration

The 25 Best Google Chrome Extensions for SEO

The 25 Best Google Chrome Extensions for SEO

Professional Invoice Design: 28 Samples & Templates to Inspire You

Professional Invoice Design: 28 Samples & Templates to Inspire You

2 Essential Templates For Starting Your Business

Marketing software that helps you drive revenue, save time and resources, and measure and optimize your investments — all on one easy-to-use platform

  • Search Search Please fill out this field.

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.

importance of the business plan format

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
  • Small Business Development Center (SBDC): Meaning, Types, Impact 8 of 25
  • How to Write a Business Plan for a Loan 9 of 25
  • Business Startup Costs: It’s in the Details 10 of 25
  • Startup Capital Definition, Types, and Risks 11 of 25
  • Bootstrapping Definition, Strategies, and Pros/Cons 12 of 25
  • Crowdfunding: What It Is, How It Works, and Popular Websites 13 of 25
  • Starting a Business with No Money: How to Begin 14 of 25
  • A Comprehensive Guide to Establishing Business Credit 15 of 25
  • Equity Financing: What It Is, How It Works, Pros and Cons 16 of 25
  • Best Startup Business Loans 17 of 25
  • Sole Proprietorship: What It Is, Pros & Cons, and Differences From an LLC 18 of 25
  • Partnership: Definition, How It Works, Taxation, and Types 19 of 25
  • What is an LLC? Limited Liability Company Structure and Benefits Defined 20 of 25
  • Corporation: What It Is and How to Form One 21 of 25
  • Starting a Small Business: Your Complete How-to Guide 22 of 25
  • Starting an Online Business: A Step-by-Step Guide 23 of 25
  • How to Start Your Own Bookkeeping Business: Essential Tips 24 of 25
  • How to Start a Successful Dropshipping Business: A Comprehensive Guide 25 of 25

importance of the business plan format

  • Terms of Service
  • Editorial Policy
  • Privacy Policy
  • Your Privacy Choices

Cart

  • SUGGESTED TOPICS
  • The Magazine
  • Newsletters
  • Managing Yourself
  • Managing Teams
  • Work-life Balance
  • The Big Idea
  • Data & Visuals
  • Reading Lists
  • Case Selections
  • HBR Learning
  • Topic Feeds
  • Account Settings
  • Email Preferences

Business plans

  • Entrepreneurship
  • Entrepreneurial business strategy
  • Entrepreneurial exit strategy
  • Entrepreneurial finance
  • Entrepreneurial financing

How to Write a Winning Business Plan

  • Stanley R. Rich
  • David E. Gumpert
  • From the May 1985 Issue

importance of the business plan format

When It's Time to Pivot, What's Your Story?

  • Rory McDonald
  • Robert Bremner
  • From the September–October 2020 Issue

importance of the business plan format

How to Write a Great Business Plan

  • William A. Sahlman
  • From the July–August 1997 Issue

importance of the business plan format

What Makes a Successful Startup Team

  • March 21, 2019

importance of the business plan format

When Your Business Needs a Second Growth Engine

  • James Allen
  • From the May–June 2022 Issue

To Succeed in the Long Term, Focus on the Middle Term

  • Geoffrey A. Moore
  • From the July–August 2007 Issue

Introduction to Business Plan Development

  • Harvard Business Publishing
  • Steven S. Rogers
  • March 12, 2014

How We Built a Strong Company in a Weak Industry

  • Roger Brown
  • From the February 2001 Issue

Making Social Ventures Work

  • James D. Thompson
  • Ian C. MacMillan
  • From the September 2010 Issue

Experiment to Learn About Your Market

  • Robyn Bolton
  • June 25, 2015

Making Your Ideas Credible

  • Prashant Pundrik
  • March 07, 2011

importance of the business plan format

In Pitch Contests, Going First Is a Disadvantage

  • Scott Shane
  • David Clingingsmith
  • Mark A Conley
  • September 01, 2020

importance of the business plan format

The CEO of Cabot Creamery on Beating Sustainability Benchmarks

  • From the May–June 2020 Issue

Adapt to the Market

  • Scott D. Anthony

Crossing the River

  • Lynda M. Applegate

importance of the business plan format

The Explainer: How to Write a Great Business Plan

  • April 16, 2017

importance of the business plan format

Don't Waste Your Time on Networking Events

  • Derek Coburn
  • September 26, 2016

Secure Your Plan with the Right Team

  • Heide Abelli
  • June 22, 2015

Preparing for the Perfect Product Launch

  • James P. Hackett
  • From the April 2007 Issue

Create Your Rules of the Road

  • April 13, 2020

importance of the business plan format

Extend Fertility: Conceiving the Market for Egg Preservation (A)

  • Debora L. Spar
  • Olivia Hull
  • February 13, 2019

Farmstar Goes Global: Corporate Entrepreneurship Bringing Sustainable Value Innovation to Agribusiness

  • Benjamin Warr
  • Anne-Marie Carrick
  • Luk Van Wassenhove
  • June 28, 2010

Technical Data Corp.: Business Plan

  • May 04, 1983
  • Thomas R. Piper
  • Jeremy Cott
  • January 26, 2000

Vitalia Franchise

  • Regina E. Herzlinger
  • Beatriz Munoz-Seca
  • August 24, 2010

TruckitNow.com Business Plan

  • Myra M. Hart
  • Judith Dror
  • September 26, 2000

A Chairman's Decision: Launching A Robo-Advisor in CCB Principal Asset Management Company

  • Rujing Meng
  • May 17, 2019

Note on Market Research

  • Robert Chess
  • June 18, 2004

Pemex (A): In a Free Fall?

  • Noel Maurer
  • Aldo Musacchio
  • December 04, 2012

Extend Fertility

  • Sylvia Sensiper
  • December 16, 2004

Kheyti: Product and Business Development at an AgTech Social Enterprise

  • Mohanbir Sawhney
  • July 10, 2017

Michael Solomonov: Jerusalem in a Bowl

  • Boris Groysberg
  • Evan M S Hecht
  • Katherine Connolly Baden
  • July 17, 2020

GRIT Fitness

  • October 25, 2019

IBM Network Technology (A)

  • Michael L. Tushman
  • Robert Chapman Wood
  • November 21, 2001

Sidhi Tribal Women's Cooperative: Leadership Succession

  • Alaknanda Menon
  • Meeta Dasgupta
  • November 19, 2014

Friend Bank: The Time for Hope (Abridged)

  • Clayton Rose
  • July 11, 2012

Kapila Krishi Udyog Limited

  • Kunwar Milind Singh
  • Sukhpal Singh
  • May 30, 2021

Pricing, Profits and Customer Value

  • Frank V. Cespedes
  • Benson P. Shapiro
  • Elliot B. Ross
  • September 20, 2010

Growing Pains at Santropol Roulant, Part B: Sustaining and Disseminating the "Magic"

  • Charlotte Cloutier
  • Fannie Couture
  • September 01, 2017

SMARTBITES C: June 2009

  • Michael J. Roberts
  • Amar V. Bhide
  • January 23, 2013

importance of the business plan format

Farmstar Goes Global: Corporate Entrepreneurship Bringing Sustainable Value Innovation to Agribusiness, Teaching Note

Business model innovation at wildfang, instructor spreadsheet.

  • Charla Mathwick
  • June 01, 2017

JTC: Stronger Together with Shared Ownership: What JTC Did and its Impact, Video Supplement

  • Ethan S. Bernstein
  • February 07, 2024

importance of the business plan format

Am I an Entrepreneur? How Imposter Fears Hinder Women Entrepreneurs' Business Growth

  • Jamie Ladge
  • Kimberly A Eddleston
  • Keimei Sugiyama
  • September 15, 2019

Popular Topics

Partner center.

  • Credit cards
  • View all credit cards
  • Banking guide
  • Loans guide
  • Insurance guide
  • Personal finance
  • View all personal finance
  • Small business
  • View all small business
  • View all taxes

You’re our first priority. Every time.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

How to Write a Business Plan, Step by Step

Rosalie Murphy

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

  • What is IRMAA?
  • What is the earned income tax credit?
  • What is a W-4?
  • What is a charitable donation?
  • What is a self-directed IRA?
  • How to file your taxes for free
  • Can you collect Social Security and a pension at the same time?
  • Still deciding on the right carrier? Compare Medigap plans
  • QuickBooks Online resources
  • Quickbooks Online
  • This page is out of date:
  • Find the right Medicare Supplement Insurance plan
  • See CD rates by term and type
  • QuickBooks Desktop Premier
  • When is the best time to pay your credit card bill?
  • RUN Powered by ADP®
  • Gusto Payroll
  • QuickBooks Payroll
  • What is a REIT?
  • What is a cashier's check?
  • What is a traditional IRA?
  • Compare Medicare Advantage providers
  • Find the right Medicare Advantage plan
  • High-dividend ETFs may generate income
  • What is an IRS Form 1099-K?
  • Nerdy takeaways about where to exchange currency
  • How can I talk to someone in Social Security?
  • What is a commercial loan?
  • What is Cardano?
  • Compare types of bank accounts
  • » This page is out of date
  • Bluevine Business Checking
  • » This offer has expired
  • Mortgage rates today: Friday, February 16, 2024
  • » This story is out of date:
  • Bizee: Easily form your new business
  • What is a Coverdell ESA?
  • What's an investment strategy?
  • What is bill pay?
  • Current promotional CD rates
  • What is a W-9 tax form?
  • What documents do you need to file your taxes?
  • Definitions: Money Transfer Rates
  • What is a Roth IRA account?
  • BTC definition: What is Bitcoin?
  • What is a bond market crash?
  • Is everyone required to file an income tax return?
  • Are IRA contributions tax-deductible?
  • Key takeaways:
  • IRA vs. 401(k)
  • Piggyback loan definition
  • What Medicare covers
  • Still deciding on the right carrier? Compare Medicare Part D Plans
  • Shopping for Medicare plans? We have you covered.
  • What is a lady bird deed?
  • What is passive investing?
  • Square Payment Processing
  • Fidelity is best for:
  • Robinhood is best for:
  • What is the sales tax deduction?
  • What is a W-2?
  • What is a budget?
  • What is stock trading?
  • » Editor's note
  • What is a budget planner?
  • What is loan-to-value ratio?
  • Mortgage rates this week
  • What is Plaid?
  • What is a brokerage account?
  • Key takeaways
  • What is the qualified business income deduction?
  • What is power of attorney?
  • What is the federal estate tax?
  • What is a meme stock?
  • What is Trust & Will?
  • Life insurance buying guide
  • What is a rollover IRA?
  • The parts of Medicare
  • 6 steps to opening a Roth IRA
  • What is an IRS audit?
  • Is money tight?
  • What is estate administration?
  • What is a home equity line of credit?
  • Best banks for multiple savings accounts
  • Definition of a stock
  • Find the right business loan
  • What are undervalued stocks?
  • What is an index?
  • What is mortgage pre-qualification?
  • What is the average stock market return?
  • What is a required minimum distribution (RMD)?
  • Still deciding on the right carrier? Compare Medicare Advantage plans
  • What questions will I be asked on the application?
  • Student credit cards
  • 1. Put financial safeguards in place
  • 2. Save and invest for future plans
  • Secured credit cards
  • 3. Get educated about cryptocurrency
  • If you still want to dabble in crypto, start small
  • Alternatives for building credit
  • Extra questions
  • Questions you won’t be asked
  • Where to find credit card applications
  • Should I get pre-qualified or preapproved first?
  • How soon will I know if I’m approved?
  • How soon can I use my new credit card?
  • 7 stock tips for beginner investors
  • Credit union vs. bank: Differences at a glance
  • 1. What credit cards are available
  • How to get paid on TikTok
  • How much emergency fund should I have?
  • What companies are included in the S&P 500?
  • Inheritance tax definition
  • Best-performing leveraged ETFs
  • Skimming: Taking info right off of your card
  • What is an emergency fund?
  • What is an index fund?
  • What is a Roth 401(k)?
  • How much does HBO Max cost per month?
  • How to use this calculator
  • How do capital gains taxes on real estate work?
  • What are dividend stocks?
  • How Railroad Retirement Board benefits work
  • How to make money as a kid
  • What is YouTube Premium?
  • Work from home jobs often pay more
  • The American Airlines experience in Las Vegas
  • What is a debt relief program?
  • What is tax-loss harvesting?
  • 1. Go to a museum, aquarium or zoo
  • Types of mutual funds
  • Understanding your home improvement loan calculator results
  • How much are Singapore KrisFlyer miles worth?
  • What is a spot Bitcoin ETF?
  • What is the saver’s credit?
  • What is a 529 account?
  • What is a credit freeze?
  • Investment management definition
  • What is a credit card CVV?
  • Best time to buy furniture
  • Should I retire at 62, 67 or 70?
  • Medical expense deduction 2022
  • Small-cap ETF definition
  • What is full retirement age for Social Security?
  • What is Rule 144?
  • Investing 101: A summary of the basics
  • What is a 401(k) rollover?
  • How to tip in general
  • 1. Determine how much to save for a down payment
  • ETF meaning
  • American Airlines award travel
  • What is FICA tax?
  • Regulation D and why it matters
  • About Progressive renters insurance
  • IHDA highlights and eligibility requirements
  • What is the purpose of a codicil?
  • How much should you spend on rent? It depends
  • Gross income vs. net income
  • What is a 1099 form?
  • What is a financial advisor?
  • Community property states
  • 5 steps to fill out a money order
  • About Mercury home insurance
  • What is a prepaid debit card?
  • Renewable energy stocks
  • Receiving payments from clients
  • What is a money market account?
  • Why can't I open a bank account?
  • How much is the annual fee?
  • What is a debt collector?
  • How much does a gallon of gas cost?
  • About Chubb home insurance
  • Best-performing tech ETFs
  • What is a VA home loan?
  • 1. Choose the checking account
  • What is the CSS Profile?
  • About Amica home insurance
  • About AARP home insurance from The Hartford
  • How long does it take to clear a check?
  • High-yield savings accounts defined
  • What are partner airlines?
  • About Embrace pet insurance
  • At what age is Social Security no longer taxed?
  • Best Ways to Send Money to Mexico Online of 2021
  • How is the Medicare IRMAA calculated?
  • United fare classes: The differences
  • Is mortgage interest tax deductible?
  • Best stocks by one-year performance
  • What does a credit freeze do?
  • What is a 1099-INT tax form?
  • 1. The Platinum Card® from American Express
  • What is return protection?
  • Most surfer-friendly airlines
  • First, what type of financial help are you looking for?
  • CD definition: What is a CD?
  • What is cash-offer financing?
  • Assess your debt load
  • What is umbrella insurance?
  • Exchange gift cards for ones you actually want
  • Conservatorship vs. guardianship
  • The short version: Is Clear worth the cost?
  • Where they're based and where they fly
  • How travel insurance claims work
  • Key differences between personal loans and credit cards
  • What is Early Warning Services?
  • When do I need a cashier's check?
  • Financial advisors: The good, the bad and the unregulated
  • What is a solo 401(k) plan?
  • What is Global Rescue?
  • American Airlines booking classes
  • What is a bonus?
  • The basics of first class and business class on international airlines
  • Do you have to tip an Uber driver?
  • What is cryptocurrency?
  • What is One Key?
  • What is Schedule C?
  • Average monthly cost
  • Is GoFundMe taxable?
  • SIPC insurance rules
  • 1. Cut back on premium channels
  • The Alaska Airlines boarding groups
  • Investing money is personal
  • Savings accounts
  • 1. When your Bitcoin is taxed depends on how you got it
  • Federal home modification grants
  • How a Coverdell ESA works
  • How Alaska seat selection works
  • What is the Capital One Venture X Rewards Credit Card travel credit?
  • Microsoft Office Excel budget templates
  • About Qatar Airways
  • 5 things debt collectors can’t do
  • 1. Disney FastPass has been replaced
  • What is Amtrak?
  • Airlines in the SkyTeam alliance
  • What is a CD ladder?
  • What is the Schedule A?
  • 1. Kissimmee instead of Orlando
  • States with no income tax
  • Best Hilton Caribbean resorts
  • How can a CPA help you with taxes?
  • The stock market explained
  • Why did the Treasury bond market crash in 2022 and 2023?
  • How to write a two weeks’ notice letter
  • 7 best-performing AI stocks
  • How EIDL loans work
  • Can you gift stock?
  • Themes of Magic Kingdom vs. Hollywood Studios
  • How to calculate interest in a savings account
  • What ANA miles are worth
  • What's the best S&P 500 ETF?
  • The basics of the Russell 2000
  • How to open an IRA
  • Virginia state income tax rates and tax brackets
  • How many Hilton points for a free night?
  • About JFK lounges
  • Best ETFs as of February 2024
  • What is self-employment tax?
  • Share certificates: Credit union version of CDs
  • Online marketplace and auction sites
  • What is a cash offer on a house?
  • What you need to open a bank account
  • Communicate the potential problems
  • Should you quit your job?
  • Institutions with low or no overdraft fees
  • 7 of the best apps to make money
  • What are the pros of financing with a captive auto lender?
  • What are closing costs?
  • What is a tax lien?

importance of the business plan format

  • 1. The best credit cards aren’t for beginners
  • What is predatory lending?
  • What is Affirm?
  • How to check out of a hotel
  • Which airlines have lie-flat seats in business class
  • What is the difference between a mortgage broker and a bank?
  • How to invest in Black-owned businesses
  • If you’re in a rush, turn the card in
  • The United Airlines pet policy
  • Money market account vs. CD: The difference
  • HawaiianMiles login
  • How to upgrade your boarding position on a Southwest flight
  • Capital gains tax on stocks: Do you have to pay?
  • What the Federal Reserve does
  • What is a joint venture?
  • Who can travel from the U.S. to Canada?
  • How much are taxes on lottery winnings?
  • Why are debt validation and debt verification letters important?
  • How meme stocks work
  • 4 no-credit-check loan options
  • What makes a good business idea for teens?
  • What are stock options?
  • How much does a passport cost?
  • Stock market correction definition
  • How to start a vending machine business in 6 steps
  • What is a hostel?
  • What is a DBQ?
  • What is Form 1099-MISC used for?
  • How does the lottery work?
  • What is Amazon Prime?
  • What is universal life insurance?
  • What is OASDI tax?
  • What is probate?
  • How to use a savings goal calculator
  • The main differences between Delta Comfort Plus vs. first class
  • Key findings
  • S&P 500 index (SPX) today
  • What is Uplift buy now, pay later?
  • What does tax exempt mean?
  • The best Marriott hotels in the Caribbean for award stays
  • How to unfreeze credit
  • The definition of a recession
  • How much does a wedding cost?
  • Best Medicare Advantage companies
  • Robo-advisor vs. financial advisor: What's the difference?
  • Can you transfer American Airlines miles to Alaska?
  • What is a down payment?
  • What is a pension plan?
  • An overview of Korean Air
  • 1. Get rewarded for going green
  • 1. Test your tech
  • Citibank rates and fees
  • What is SSDI?
  • When ITA Matrix isn't the best search option
  • Gently approach the subject
  • Step 1: Choose your health insurance marketplace
  • Why retirement age matters
  • How much are SSDI benefits for epilepsy?
  • What does liability insurance cover in California?
  • Calculate your closing costs
  • 401(k) contribution limits 2023
  • What does this value mean?
  • What is identity theft insurance?
  • Which tickets can be canceled and when?
  • What to expect flying basic economy with Delta
  • When is a payment marked late on credit reports?
  • What are Delta SkyMiles worth?
  • Grace periods are based on billing cycles
  • Why roll over an IRA into a 401(k)?
  • Mortgage income calculator help
  • How long does bill negotiation take?
  • The major differences
  • Is growing your score by 100 points realistic?
  • Does Hyatt status match?
  • How much is YouTube TV a month?
  • Personal loan alternatives to Bank of America
  • What to expect flying premium economy with United
  • When to follow up after no response
  • What is TSA PreCheck?
  • Your money is safe in a bank with FDIC insurance
  • Credit union advantages
  • What is a tax extension?
  • 1. Tax-free retirement income
  • About Atlanta airport lounges
  • Do rent payments affect credit?
  • California state income tax rates and brackets
  • What is loud budgeting?
  • Understanding a self-directed IRA (SDIRA)
  • Who are Air Canada's partners?
  • 12 passive income ideas
  • What is Global Entry?
  • Why is having a low credit utilization important?
  • 2023 tax brackets
  • How startup funding works
  • What goes into the credit card interest calculation
  • How early direct deposit works
  • What is a 1099-DIV form?
  • How do CDs work?
  • Best day to book a flight
  • Costs and fees
  • What are lounges?
  • What is a professional employer organization, or PEO?
  • What is long-term care insurance?
  • Why start with the monthly payment?
  • How to buy Coinbase stock
  • Best-performing REIT stocks: February 2024
  • Ryanair at a glance
  • The official rankings
  • 1. Collect paperwork and set an asking price
  • What is OpenAI?
  • What is a state income tax?
  • Is PCI compliance required by law?
  • Illinois state income tax rates and tax brackets
  • What is the gift tax?
  • SBA loan calculator
  • Figure out your debt load
  • 5 of the best index funds tracking the S&P 500
  • What types of car-buying apps are available?
  • The best budget apps
  • How to calculate student loan interest
  • What is United Polaris?
  • What is the typical down payment on a house?
  • The latest IRS scams
  • How does a traditional IRA work?
  • Devoted Health Medicare Advantage pros and cons
  • What are the best retirement plans for you?
  • How long should I wait after filing for bankruptcy to get a car loan?
  • What is a carry-on bag?
  • How to calculate RV loan payments
  • Why dealers refuse outside financing
  • 7 high-dividend ETFs
  • How to earn IHG elite status
  • What is a Nexus card?
  • When to apply
  • How to estimate your home insurance
  • Credit card features that function like buy now, pay later
  • Why preplan your own funeral?
  • Do I need equipment breakdown coverage?
  • What does homeowners insurance cover?
  • What is premium economy on British Airways?
  • What 'pet-friendly' means (and doesn’t)
  • What’s my full retirement age and how does it affect my benefit at age 63?
  • How to budget money
  • What is a health savings account (HSA)?
  • Assess your money needs
  • What is a layover?
  • Who can claim the saver’s credit?
  • 20 of the best small business opportunities right now
  • Difference between basic economy and main cabin on Delta
  • Working with National Debt Relief
  • What is an LLLP?
  • 1. Document the scene
  • Roth IRA contribution limits 2023
  • Pros and cons of accepting Bitcoin at a business
  • How to choose between a balance transfer card and a personal loan
  • General advice for international money transfers
  • Reasons to buy a second home
  • Roth IRA vs. traditional IRA: What's the difference?
  • Indoor furniture: Winter, summer
  • PAYE at a glance
  • 1. Backup camera
  • About MSC cruises
  • Investment portfolio definition
  • What is a resort fee?
  • How balance transfers work
  • Best-performing small-cap ETFs
  • If you don't have a work retirement plan
  • More space, but not necessarily more comfort
  • What is main cabin on American Airlines?
  • CD comparison calculator
  • An overview of Delta Premium Select’s benefits
  • Choosing an IRA vs. a 401(k)
  • What are AI ETFs?
  • Do Roth IRAs have an early withdrawal penalty?
  • What is Ozempic?
  • Ethical investing definition
  • Is student loan interest deductible?
  • How is home equity divided in a divorce?
  • Delta premium economy seats
  • 16 legal requirements for starting a small business
  • What are discount points?
  • What is a growth stock?
  • FICA tax rate 2023-2024
  • Which transactions could be limited under Reg D?
  • Average car loan interest rates by credit score
  • 1. What does American Express trip cancellation insurance cover?
  • What is P2P payment?
  • The two cards at a glance
  • What is property tax?
  • Fidelity at a glance
  • Robinhood at a glance
  • 1. It earns a flat rate on all purchases
  • Xero at a glance
  • How Citi’s upgrade process works
  • Children vs. minors
  • Southwest ticket options at a glance
  • Create a budget plan that works for you
  • Income, expenses and debt
  • Frontier baggage fees: The basics
  • Understanding the basics
  • What is short selling?
  • What JetBlue Mint seats are like
  • When an income share agreement might be worth it
  • 1. Make extra payments toward the principal
  • Blue Cross Blue Shield Medicare Advantage
  • Great Marriott properties for 50,000 points
  • How to manage your money
  • Costs are down, but potential student loan debt is still excessive
  • What is a CD loan?
  • The 9 American Airlines boarding groups
  • SSDI payment schedule for 2024
  • 1. The Ritz-Carlton Key Biscayne, Miami
  • What does a real estate lawyer do?
  • Job or career change
  • What is the child and dependent care tax credit?
  • The most popular surveys for cash apps of 2023
  • What is a credit dispute letter?
  • When to apply for Social Security
  • What is net worth?
  • 1. The Credit for Other Dependents
  • Routes and destinations
  • The danger of making your emergency fund too big
  • What is an insurance broker?
  • What is options trading?
  • Back taxes, definition
  • APY vs. interest rate: What’s the difference?
  • Virgin Atlantic premium economy seats
  • How do prepaid debit cards work?
  • Understand your legal rights
  • 1. Sell spare electronics
  • Wells Fargo Active Cash® Card : Our Pick for Simple Cash Back
  • How much you can earn while on Social Security
  • IRS mileage rates for 2023
  • What is Bidenomics?
  • The challenge: Stubbornly high mortgage rates squeeze shoppers’ buying power
  • 1. Sign up for Google Fi
  • How to deposit or cash a check step by step
  • 1. Understand your risks
  • Reasons to get life insurance in your 40s and 50s
  • American Express travel insurance vs. coverage provided by AmEx cards
  • DSL internet service
  • 25 side business ideas to try this year
  • New York state income tax rates
  • Know your travel goals
  • AmEx vs. Chase airline and hotel transfer partners
  • What does Nationwide travel insurance cover?
  • What to expect when flying KLM premium economy
  • Know what you’re getting
  • Why become a travel agent?
  • Pool loan calculator
  • What to do before applying for a mortgage
  • 1. Get help with utility bills and groceries
  • What is United Premium Plus?
  • About the passport book
  • Cards with Centurion Lounge access
  • Who should submit the CSS Profile?
  • How to use the mutual fund calculator
  • How to redeem points and miles on Airbnb stays
  • 1. Qantas First Lounge (Tom Bradley International Terminal)
  • Defining some health insurance terms
  • Types of RV rental companies
  • An overview of AmEx points vs. Chase Ultimate Rewards® points
  • What does Medicare Part B cover?
  • How do chargebacks work?
  • Chase checking accounts
  • What you should know about buying a franchise
  • Priority Pass network options at LAX
  • Uber driver requirements
  • Advantages of franchising for the franchisee
  • Where they’re based and where they fly
  • What is a tax credit?
  • How we found the best cheap auto insurance
  • Why American Express was lagging
  • How to start a home business in 9 steps
  • A quick overview of the Southwest Companion Pass
  • Life insurance calculator
  • What is a foreign transaction fee?
  • Decide your budget for total employee salaries
  • Check prices at nearby airports
  • The best and worst days to fly around Thanksgiving
  • The best flight booking sites
  • Financial coach definition
  • Stripe vs. Square: Comparison at a glance
  • Banks with no debit card foreign transaction or ATM fees
  • What is United business class?
  • College grants vs. scholarships
  • What is GoodRx?
  • Where to buy spot Bitcoin ETFs
  • How to calculate credit card interest
  • How to send money online, on mobile or in person
  • What is the mortgage interest deduction?
  • What property damage liability covers
  • 50/30/20 budget calculator
  • Is charitable giving tax-deductible?
  • Best general liability insurance providers
  • Pay stubs explained
  • Pros and cons of buying FSBO homes
  • How long does it take to renew your passport?
  • Best ways to invest in real estate
  • Compare Medicare Supplement plans in Pennsylvania
  • Best ways to consolidate credit card debt
  • Poultry industry ‘holding its breath’
  • Summary of Visa Infinite benefits
  • Chase points value when booking through the portal
  • How to calculate your debt-to-income ratio
  • How do Social Security disability benefits work?
  • Deciding factors
  • Conservatorship vs. adoption
  • What are FANG stocks and FAANG stocks?
  • Understanding AAA auto clubs
  • When to use a personal loan
  • What travel insurance covers
  • What are virtual reality stocks?
  • A quick look at the billing cycle
  • Small-business tax credits vs. tax deductions
  • Reverse stock split definition
  • 6 things to know about Alaska flight delay compensation
  • Maximizing the companion fare
  • How much is YouTube Premium?
  • Cryptocurrency stock ETFs
  • Federal government farm grants
  • TAP Air Portugal partner airlines
  • Best overall: MetLife
  • Investing through an HSA
  • What is a student credit card?
  • 1. Control spending
  • The Excursionist Perk
  • How to track your refund status with ‘Where's My Refund?’
  • Roth 401(k) vs. traditional 401(k): Where they differ
  • Red Way or Global Crossing?
  • The value of AAdvantage miles
  • Average monthly expenses by household size
  • 9 of the best gym franchises to buy
  • The best homeowners insurance in West Virginia
  • 6 hardship loans for bad credit
  • How the programs differ
  • Waldorf Astoria Hotels & Resorts
  • Who are Virgin Atlantic's airline partners?
  • 1. Think about what risks your business faces
  • The latest benefits of the Chase Sapphire Reserve® card
  • Grants for LGBTQ+ businesses
  • What is Disney Park Hopper?
  • Airline-specific carry-on luggage rules
  • How to contact Social Security customer service
  • 1. It offers solid rewards rates at Lands' End and on other purchases ...
  • What relief can I get?
  • Easiest option: Update your address online
  • International roaming plans: postpaid
  • Daily mortgage rates chart
  • What is a credit score?
  • How to contact IRS customer service
  • How do LLC taxes work?
  • Biweekly payment calculator
  • How does bill pay work?
  • 1. Earn credit card welcome bonuses
  • What are estimated tax payments?
  • How to fill out Schedule A
  • When can a credit card issuer reduce my credit limit?
  • When will the IDR adjustment happen if I don’t get automatic forgiveness?
  • Who is required to fill out a W-9?
  • The difference between Global Entry and TSA PreCheck
  • Reasons to refinance a car loan when you have bad credit
  • Pie Insurance: Pros and cons
  • At a glance
  • Where to find your credit card’s CVV
  • 1. Fly in first or business class on Delta or one of its partners
  • How to calculate the cost of starting a business
  • Pros of refinancing your car loan
  • Who qualifies for the home office tax deduction?
  • 1. You’ll earn bonus rewards on all your spending
  • How much you have to make to file taxes
  • Consider your own money story
  • Two broad types of mutual fund fees
  • Is gold a good investment?
  • Fast facts about SBA EIDL loans
  • Types of business licenses: The basics
  • What is Nexus?
  • How to find your full retirement age
  • How does Apple Cash work?
  • How to earn ANA Mileage Club miles
  • The 10 JetBlue boarding groups
  • What day is my February 2024 payment coming?
  • Top credit cards for cruises
  • Cheapest for bank deposits: OFX
  • Fleet size and type
  • AMD had a strong finish to 2022 
  • Our picks for the best life insurance companies in February 2024
  • How does an 80-10-10 mortgage work?
  • What is Airbnb?
  • How are VA disability compensation rates calculated?
  • What are tax refund advance loans?
  • Do prioritize monthly expenses first
  • How does a lady bird deed work? 
  • How payment processing works
  • What’s deductible
  • 1. The card’s sole purpose is financing
  • What are seat selection fees?
  • How does GnuCash work?
  • 1. Check your credit
  • What you need to know
  • What are game apps that pay real money?
  • 1. Hit the minimum spending requirement to earn a sign-up bonus
  • Average student loan debt
  • What is Priority Pass Select?
  • Wave Accounting at a glance
  • 1. Multiple types of airport experiences are available
  • Credited vs. processed: What’s the difference?
  • 1. Check all three credit reports for errors
  • Colleges that offer income share agreements
  • What counts as community property?
  • 1. Fill in the recipient’s name
  • The best Marriott resorts in the U.S. for beachgoers
  • Student loan payoff calculator
  • What is adjusted gross income (AGI)?
  • Shopify vs. Squarespace: Deciding factors
  • Marriott credit cards that are available to new applicants
  • How do brokerage accounts work?
  • Does your life insurance have cash value?
  • What are grants for nonprofits?
  • Business entity type
  • What decisions cannot be made by a power of attorney?
  • Estate tax limits and exemptions
  • 1. Write an executive summary
  • 7 best semiconductor ETFs by one-year performance
  • 1. Pet sitting
  • Lottery tax calculator
  • Target REDcard™ Credit Card
  • What is an ACH transfer?
  • What is Frontier’s GoWild Pass?
  • 1. Decide which type of insurance you’d like
  • Do you plan to fly with checked bags?
  • 1. Go to the correct site
  • HELOCs and home equity loans compared
  • Where's my amended return?
  • Options for getting a higher credit limit
  • Travel rewards
  • How much does an Amazon Prime membership cost?
  • How to compare FHA vs. conventional loans
  • Government startup business grants and resources
  • Which cards are eligible for Pay With Points
  • Do other countries have credit scores?
  • What is Schedule E?
  • Why you’d want The Platinum Card® from American Express
  • A look back: The Fed rate and how it affects you
  • 1. Find the right opportunity
  • What are the three credit bureaus?
  • Paying won't take a collections account off your credit reports
  • What qualifies you to be a tax-exempt individual?
  • Making hiring more accessible
  • What you should know about Medicare Supplement Insurance plans
  • Who can qualify for a conventional home loan?
  • When to write a financial aid appeal letter
  • How to find your way around an airport
  • How to access the American Airlines Arrivals Lounge in Heathrow
  • Can Hyatt points be transferred?
  • Pros of direct-to-consumer marketing
  • QuickBooks Online Banking (bank feed) feature
  • Netflix subscription cost
  • Financial advisor fees
  • Can I renew my passport at the post office?
  • Why the IRS audits people
  • Request missing AAdvantage miles
  • Average retirement savings balance by age
  • How much will refinancing save?
  • 1. Skip the airport
  • What’s so special about the IUL?
  • Do medical bills affect your credit?

House

  • What happens during estate administration?
  • When is open enrollment for Medicare?
  • Contract vs. full-time workers
  • Pros of student loan consolidation
  • How to redeem JetBlue travel certificates
  • Chase credit cards that enable point transfers
  • 1. Determine how much to spend
  • Does paying a phone bill build credit?
  • Tax filing status options
  • Why flight delays happen — and how they can get un-delayed
  • What is Medicare Supplement Insurance and how does it work?
  • 1. You can use it only on certain health care purchases
  • American Airlines frequent flyer sign-up
  • Choice Privileges brands
  • When transferring a balance: Yes
  • Accommodation type
  • What to expect flying Business Class with Turkish Airlines
  • 1. Bank of America
  • The cheapest renters insurance in California
  • In this article
  • What is card lock?
  • 401(k) contribution limits 2024
  • 1. Get the numbers
  • Who got student loan refunds?
  • Credit unions
  • 1. ‘I love this car!’
  • About Aer Lingus
  • 4 common check fraud scams
  • Can you negotiate all of your bills?
  • Kids don’t need an ID when flying within the U.S.
  • 1. Sell to a third-party dealer
  • The benefits of credit cards
  • How to start a clothing line
  • 6 things to do if your rental car is involved in accident
  • What is hazard insurance?
  • How to find cheap award flights
  • 1. It’s an unsecured card for credit building …
  • What is Amazon Flex?
  • Does Southwest fly direct to Hawaii?
  • Secured vs. unsecured debt
  • JAL’s business and first class cabins
  • Who can get a new PPP loan?
  • Credit union disadvantages
  • How to make money online
  • How we found the best auto insurance
  • How does the earned income credit work?
  • Timing a credit card bonus
  • Wells Fargo vs. Chase small-business checking at a glance
  • How to place an Equifax credit freeze
  • Is inheritance taxable?
  • How much will my Social Security be reduced if I have a pension?
  • Leveraged ETF definition
  • Why do rug pulls happen?
  • When you can and can’t be held personally responsible
  • IRA contribution rules
  • Why do I need an emergency fund?
  • How do index funds work?
  • Can I contribute to both a 401(k) and a Roth 401(k)?
  • What is capital gains tax?
  • The cheapest renters insurance companies
  • How to submit your travel insurance claim and get reimbursed
  • Rewards on spending
  • What is the standard deduction?
  • Where to get home insurance quotes
  • What is the child tax credit?
  • Domestic first class
  • What is a flexible spending account, or FSA?
  • What credit score is needed to buy a house?
  • How to use the car affordability calculator
  • What is a statement balance?
  • 7 best investments right now
  • When can I withdraw money from my Roth IRA without penalty?
  • American Airlines miles redemptions
  • Summary of cash advance apps
  • The FDIC insurance limit: $250,000 per depositor, per institution, per category
  • Choosing the best online broker
  • Pros to investing in CDs
  • 2. Read a book
  • Best place to exchange currency: Your bank or credit union
  • 2. Pare down cable boxes
  • What is Apple Daily Cash?
  • Find first-time home buyer programs and lenders in your state
  • Subsidized vs. unsubsidized student loans
  • Start by checking your home equity
  • Elite status tiers
  • What is the Capital One Venture X Rewards Credit Card ?
  • Full retirement age for Social Security
  • Cash bonuses with annual fee
  • 9 popular investment strategies
  • Top 10 spot Bitcoin ETFs by fee
  • How to get the most from your Chase Freedom® this quarter
  • What to do if you lost your passport in the U.S.
  • You can do it yourself
  • SkyTeam Elite benefits
  • What is an assumable mortgage?
  • Delta SkyMiles® Reserve American Express Card
  • 2. File a police report
  • Roth IRA income limits 2023
  • How to freeze your credit with all 3 bureaus
  • How much is home insurance in your state?
  • What is a tech business?
  • How to refer a friend for an AmEx card
  • Rolling over your 401(k): The options
  • The self-employment tax rate for 2023
  • Share certificates vs. share accounts
  • 1. How Chase Sapphire Reserve® lounge access works
  • Types of ETFs
  • How to invest in stocks in 6 steps
  • What medical conditions qualify for Social Security disability?
  • What is an overdraft fee?
  • The best money-making apps
  • 27 ways to save money
  • The online life doesn’t leave a paper trail
  • How much are closing costs?
  • What does it mean if you have a tax lien?
  • Why the Citi® / AAdvantage® Platinum Select® World Elite Mastercard® is better for most people
  • Signs of predatory lending
  • Many app-based drivers don’t earn minimum wage
  • Itemized deductions, definition
  • How does Xero work?
  • 6 steps to managing your 401(k)
  • What is a 1099 form used for?
  • Credit cards and their food-delivery reward rules
  • Wells Fargo and the CFPB
  • Sign-up for Delta SkyMiles
  • The best homeowners insurance in California
  • 1. You are preapproved with a mail offer
  • How we got here
  • What do financial advisors do?
  • The psychology of credit card spending
  • Plaid: The basics
  • The best term life insurance companies in February 2024
  • How are dividends taxed?
  • Who should get a Form 1099-NEC?
  • Do you pay taxes on stocks you don't sell?
  • Which airlines have free checked bags?
  • Why does tipping matter?
  • Wyndham elite status tiers and benefits
  • Calculate your estimated VA disability benefits
  • What must a debt validation letter include?
  • Mortgage rates should trend a little lower
  • 2. Sell your gift cards
  • Travel trends among U.S. travelers
  • Stock market corrections vs. crashes, dips and bear markets
  • What to do if you can't open a bank account
  • Airline miles to dollars calculator
  • The best homeowners insurance in Idaho
  • United℠ Explorer Card
  • Ria is best for:
  • Who should get a 1099-MISC?
  • How much do Instagram influencers make?
  • British Airways' Caribbean sweet spot
  • You’ll be credited for your overpayment
  • How does a universal life insurance policy work?
  • Step 1. Identify your financial needs
  • The three most important financial goals
  • Retirement plans changed for some over past year
  • What does it mean to invest in the S&P 500?
  • What is a tech ETF?
  • How does a VA home loan work?
  • Options for an old 401(k)
  • What is ‘cash stuffing’?
  • 1. Fly Southwest
  • Start where you are
  • Pool loan calculation examples
  • The rise of pet insurance
  • The best renters insurance companies for 2024
  • Real property vs. personal property: definitions and examples
  • When should I submit the CSS Profile?
  • 1. You can use the card only for eligible subscription payments
  • How much is life insurance?
  • The best ways to use Marriott Bonvoy points
  • How do expense trackers work?
  • How much does capitalized interest cost?
  • Why businesses in health care are worth exploring
  • 1. Salamander Middleburg Resort & Spa in Middleburg, Virginia
  • How Citibank compares to online banks
  • How stocks work
  • The Huntington Cashback Credit Card
  • Cards that let you combine Chase points
  • AAdvantage Gold: Estimated value of $2,846
  • Stock chart components
  • Which banks have the best savings interest rates?
  • Qualify with average credit
  • Why are stocks undervalued?
  • How do I know there's a late payment on my credit report?
  • Which credit cards allow you to see a breakdown of authorized user purchases?
  • How RMDs are calculated
  • Determine how your Social Security is taxed
  • What is an executive summary?
  • Features and ease of use
  • How to upgrade your American Express card
  • How debt settlement works
  • How we chose the cheapest companies in Louisiana
  • What are the 2024 IRMAA brackets?
  • AAdvantage Gold benefits
  • What is a Southwest Airlines Companion Pass?
  • How to fill out a W-4
  • Can you buy S&P 500 stock?
  • Compare car insurance rates by age
  • Ways to avoid seat selection fees
  • 1. There’s a prequalification process
  • What to do with a 1099-INT tax form
  • 7 free tax filing options
  • How to lower your credit utilization
  • 22 popular tax deductions and tax breaks
  • Phishing: Asking you for personal information
  • How to use return protection
  • Most popular Medicare Supplement Insurance plan types in Pennsylvania
  • Top credit cards you can use instantly after approval
  • Will your tax refund be garnished?
  • What do I do with a 1099-DIV form?
  • How does QuickBooks Payments work?
  • What is the Walmart MoneyCenter?
  • How much does Clear cost?
  • 1. Tax planning starts with understanding your tax bracket
  • 20 high-dividend stocks
  • What does Early Warning Services do?
  • What is the 401(k) early withdrawal penalty?
  • Where can I get a cashier’s check?
  • Ways to earn money as a younger kid
  • Basics of PCI compliance
  • How are bonuses taxed?
  • Fidelity CD rates
  • If you have FFELP or private student loans currently managed by Navient
  • How much should you tip an Uber driver?
  • 1. Check your calendar
  • What is a socially responsible bank?
  • Who files a Schedule C tax form?
  • Figure out what you need
  • How tax-loss harvesting works
  • Track your monthly spending
  • Why mortgage rates change every day
  • Leverage your union's strike fund
  • Alaska seat selection fees
  • Home improvement loan calculator
  • Google Sheets budget templates
  • Does paying a loan twice a month help?
  • What you need to qualify for a personal loan
  • 403(b) vs. IRA
  • How the Federal Student Aid Estimator works
  • How do I find the best 529 plans?
  • Pie workers’ compensation insurance
  • How the market works
  • Bank wire transfer
  • Why the Chase Sapphire Preferred® Card is better for most people
  • How do investment management services work?
  • How does Bitcoin work?
  • 2. Blind spot warning and cross-traffic alert
  • Average 401(k) balance by age
  • How will the Student Aid Index be calculated?
  • What kind of medical expenses are tax deductible?
  • The benefits of gifting stocks
  • When your ex is alive: Divorced spousal benefits
  • Saving vs. investing
  • ETF advantages and disadvantages
  • How to get Oneworld elite status
  • To compete with cash offers, find out what sellers want
  • Early withdrawals of Roth IRA contributions
  • Who can deduct student loan interest?
  • Federal tax brackets and tax rates
  • Which transactions don’t apply to the savings account withdrawal limit?
  • Where Progressive stands out
  • Who can set up a Robinhood IRA?
  • Work out how much of your income should go to rent with the 50/30/20 rule
  • Benefits of upgrading a Citi credit card
  • What’s the purpose of a budget?
  • What is a REAL ID?
  • How does Wave Accounting work?
  • If you have a few minutes, call the credit card company
  • 1. Take inventory of your finances
  • When to choose a money market account over a CD
  • Hawaiian Airlines vs. competitors
  • What is a life insurance policy?
  • Who qualifies for the qualified business income deduction?
  • How a joint venture works
  • Calculate how much you need
  • Roth IRA income and contribution limits 2023
  • When you find lower prices on Turo rentals
  • What are the pros and cons of money market accounts?
  • IRS issues mileage rates for 2024
  • How employee stock options work
  • What does the GoWild Pass cost?
  • Vending machine costs
  • Understanding your required coverages
  • How much does it cost to cash or deposit a check?
  • How the VA DBQ works
  • How does OASDI tax work?
  • When is probate required?
  • What is IRS Free File?
  • Can you get a refund for bad Wi-Fi?
  • Top Star Alliance airline to earn miles
  • 2. Gather your personal information
  • Cons of direct-to-consumer marketing
  • How to consolidate your debt
  • 1. They offer lucrative rewards for popular spending
  • 2. Find money for child care
  • Why buy dividend stocks?
  • Do you qualify for a business loan interest tax deduction?
  • What to expect from United Premium Plus
  • Why you should get preapproved for an auto loan
  • Student loan forgiveness programs
  • How pensions work: an overview
  • What can you do during Medicare open enrollment?
  • Chase airline transfer partners
  • 5  tips for finding and using multiple savings accounts
  • Lowest fees
  • Who qualifies for SSDI?
  • What types of epilepsy qualify for disability?
  • Our picks for the best return-of-premium life insurance companies in February 2024
  • What does identity theft insurance cover?
  • Current Discover bonus categories
  • Index investing: Index funds and ETFs
  • Step 1: Search by insurance company name
  • Personal loans from online lenders
  • How to use the pre-qualification calculator
  • Does closing a credit card hurt your credit?
  • The average stock market return isn't always average
  • How do you use the Walmart travel portal?
  • What does a financial coach do?
  • Where Stripe wins
  • Aeromexico basics
  • Mercury home insurance star rating
  • State availability
  • Bank advantages
  • How tax extensions work
  • 2. Penalty-free withdrawals
  • Which services will report your rent payments?
  • What is the 50/30/20 rule?
  • Wells Fargo vs. Chase small-business checking: Key features
  • How much is car insurance?
  • How to open a self-directed IRA
  • 1. Request a balance transfer
  • Where are layoffs happening?
  • What bodily injury liability covers
  • Citi Double Cash® Card
  • Airline surfboard fees, broken down
  • Best day to fly
  • Weigh DIY payoff methods
  • How umbrella insurance works
  • How conservatorship works
  • Who qualifies for the Fresh Start program
  • Best-performing REIT mutual funds: February 2024
  • Income limits for contributing to both an IRA and a 401(k)
  • How state income tax rates work
  • Illinois state income tax deductions and credits
  • How to use the SBA loan calculator
  • American Airlines fare classes
  • How we selected the best car-buying apps
  • YNAB, for hands-on zero-based budgeting
  • Working from home jobs are growing
  • Compare Roth 401(k) vs. traditional 401(k)
  • What to do when a dealer refuses outside financing
  • How does a home equity loan work?
  • What is a 1099-K used for?
  • 3. Catch a movie
  • How to buy Cardano
  • Equity funds
  • AmEx Plan It
  • How to preplan your funeral
  • Qatar Airways fare classes
  • CD rate trends 2024: Higher short-term CDs
  • 2. Genie+ costs money
  • Can credit card companies lower your credit limit without notice?
  • What does it mean to live in a state with no income tax?
  • Where do I cash in a savings bond?
  • How does a Roth IRA work?
  • Is PAYE right for you?
  • Get a vehicle history report
  • Is another Treasury bond crash imminent?
  • What are AI stocks?
  • Investment portfolios and risk tolerance
  • If you do have a work retirement plan
  • How to choose an S&P 500 ETF
  • Do I have to pay Virginia state income tax?
  • Best car insurance in New Jersey overall: Travelers
  • How we chose the cheapest companies in Ohio
  • How we ranked the top life insurers
  • Ethical investing vs. SRI vs. ESG: What’s the difference?
  • Option 1: Sell the house and split the proceeds
  • What does collision insurance cover?
  • Active investing vs. passive investing
  • What does non-owner car insurance cover?
  • When should I receive my W-2 form?
  • How long is a child's passport valid?
  • How to short a stock in 5 steps
  • How extra student loan payments work
  • What is the dividend tax rate?
  • Where Shopify wins
  • Where Mercury stands out
  • What is the average American net worth?
  • 2. The Child and Dependent Care Credit
  • How the federal estate tax works
  • When to use an insurance broker
  • How to file back taxes
  • How to get a prepaid debit card
  • Before you dispute a credit card charge
  • Making estimated tax payments
  • Who is Warren Buffett?
  • The best home insurance companies of 2024
  • 3. Pawn something
  • Types of passport applications
  • How to calculate your home equity
  • How a higher credit limit can help you
  • Why are gas prices going up?
  • Delta Comfort Plus
  • Design and history
  • Where Chubb stands out
  • MassMutual life insurance
  • How we chose the cheapest companies in Missouri
  • Types of Medicare Supplement Insurance plans
  • KLM economy vs. premium economy
  • The Fed is pushing to slow the economy
  • Best for size of network: UnitedHealthcare
  • Robo-advisor vs. financial advisor costs
  • Common IRS audit triggers
  • What is comprehensive insurance?
  • What kind of financial aid can I get with the CSS Profile vs. the FAFSA?
  • Do you need to put 20% down on a house?
  • How to earn Korean Air Skypass miles
  • 1. Classic fender bender
  • Where Amica stands out
  • Where The Hartford/AARP stands out
  • Reasons for chargebacks
  • How do tax credits work?
  • The best cheap car insurance
  • Get the Best HELOC Rate
  • How have points changed in value last year?
  • Calculator: Convert IHG points to dollars
  • Best ways to use Delta SkyMiles
  • Does Zelle report to the IRS?
  • Where Embrace pet insurance stands out
  • Best for availability and locations: Holiday Inn Express
  • What can I add on to YouTube TV?
  • How to buy spot Bitcoin ETFs
  • One button instead of many
  • What is Medallion status on Delta?
  • When you should seek debt relief
  • 1. Pay credit card balances strategically
  • Concourses A, B, C, D: Delta Sky Clubs only
  • Mortgage interest tax deduction example
  • How property damage liability works
  • How tax-deductible donations work
  • How to get car insurance quotes
  • Who can get a Global Entry walk-in appointment?
  • Freezing your Experian credit report online
  • How the rewards structure is changing
  • Different types of life insurance
  • Calculator: Convert Alaska miles to dollars
  • Reasons to renew your passport ahead of expiration
  • Grace period
  • How much should I save?
  • Why invest in index funds?
  • What are the Roth 401(k) contribution limits?
  • How cash-offer programs work
  • How do airport lounges work?
  • What to know about Paychex HR PEO
  • What goes into a monthly mortgage payment
  • What reasons can you withdraw from your 401(k) early?
  • Ryanair has never had a fatal crash
  • How can I get a cashier’s check?
  • Are Railroad Retirement Board benefits higher than Social Security benefits?
  • Can you buy OpenAI stock?
  • Roth IRA withdrawal rules
  • How to redeem TAP Miles&Go miles
  • How the new student loan repayment plan differs for other IDRs
  • Take advantage of the triple tax benefit
  • More about the best home insurance companies in West Virginia
  • What kind of car loan can I get after a bankruptcy?
  • RV loan calculator
  • Can you live off ETF dividends?
  • Social Security phone numbers
  • 3. Pay attention to fees
  • How do commercial loans work?
  • Business tax ID number lookup: Your 3 best options
  • State and local home modification grants and loans
  • British Airways premium economy seats
  • How to find hotel pet policies
  • What is Credit One?
  • Amtrak’s Acela line
  • When are estimated taxes due?
  • How Schedule A works
  • Which mortgages are assumable?
  • How much IDR credit will I get?
  • 2. Reno instead of Las Vegas
  • How to find a CPA or tax accountant near you
  • How Roth IRAs are different
  • The purpose of CVV numbers
  • Custom furniture: Varies
  • Two weeks’ notice templates
  • Other important things to know about getting an EIDL loan
  • Types of business licenses: Local licenses and permits
  • Why invest in small-cap ETFs?
  • Chase Sapphire Preferred® Card
  • What is a CD investment?
  • Checking and savings features
  • Terminal 1: Air France Lounge, Lufthansa lounges and more
  • Cheapest for cash pickup: Remitly
  • The self-employment tax rate for 2024
  • 4 best brokers for forex trading
  • How much to tip various service providers
  • 2. Use money tips to accelerate your savings
  • Best AI ETFs by one-year performance
  • Delta premium economy menu
  • Best-performing growth stocks
  • Are auto loan interest rates rising?
  • How P2P payments work
  • The cost of card transactions
  • How property taxes work
  • 2. A security deposit makes a credit card easier to get
  • 2. Prequalify without affecting your credit scores
  • How to write a codicil in 8 steps
  • Priority Pass benefits
  • Do I need REAL ID to fly in 2024?
  • Who gets a 1099 form?
  • How do Delta SkyMiles work?
  • Types of stock trading
  • What is Wanna Get Away on Southwest Airlines?
  • Payment history
  • 2. Weighty fees can dip into your budget
  • What is not community property?
  • UnitedHealthcare Medicare Advantage
  • 2. Write your address in the purchaser section
  • Recent changes to American status levels
  • Key features of a CD loan
  • How to earn HawaiianMiles
  • For cash back
  • What is the cheapest car insurance in California?
  • How much is the child and dependent care credit worth?
  • How many border crossings are there between the U.S. and Canada?
  • 2. Describe your company
  • Types of semiconductor ETFs
  • Which one is important to know for savings accounts?
  • 2. Animal boarding
  • How do lottery taxes work?
  • How VA disability is calculated
  • Why stock market corrections happen
  • Hotel points to dollar calculator
  • 2. Enter your personal information
  • Do you pay taxes on a 1099-MISC?
  • How many Instagram followers do you need to make money?
  • You can request a refund
  • How it works
  • What travel purchases are eligible for Pay With Points
  • Which airlines offer financing through Uplift?
  • Why invest in tech ETFs?
  • Who fills out Schedule E?
  • Complimentary travel insurance provided by AmEx cards
  • How to transfer a 401(k) to IRA
  • Effect on credit scores depends on provider and debt type
  • 2. Hold Southwest elite status
  • Deserve cards: Basics and benefits
  • AmEx Membership Rewards overview
  • What does Nationwide travel insurance cost?
  • Conventional loan credit score requirements
  • Who can transfer Hyatt points?
  • Understanding your pool loan calculator results
  • More about the best renters insurance companies
  • Financial advisor fees by service
  • Median retirement savings balance by age
  • 2. There's no credit check or APR, and it aims to build credit quickly

Mail_Documents_Red

  • How life insurance rates are determined
  • Today’s HELOC rates
  • Savings bond calculator
  • Head of household
  • How much American Airlines miles are worth
  • When ITA Matrix is the best tool to search for flights
  • Earning Choice Privileges points
  • Uber vehicle requirements
  • What happens if I retire before age 65?
  • The best renters insurance in California
  • The largest banks in the U.S.
  • AAdvantage Platinum: Estimated value of $7,426
  • Chase Ultimate Rewards®: The basics
  • Why lock a card?
  • 2. ‘I’ve got to have a monthly payment of $350.’
  • Robinhood overview
  • Stackable savings at select grocery stores
  • Step 2: Choose the right subsidiary
  • What is the cheapest car insurance in Texas?
  • Research your provider and the competitors
  • 2. Sell to a participating dealer
  • Best car insurance in Massachusetts overall: Travelers
  • Status matching from MGM Rewards
  • Is hazard insurance the same as homeowners insurance?
  • How we chose the cheapest companies in Michigan
  • How to write a follow-up email after no response
  • Where you can work
  • Bank disadvantages
  • Where to stash your emergency fund
  • Marriott points calculator
  • Loud budgeting can help you save more, find support
  • Is there a federal inheritance tax?
  • Delta SkyMiles calculator
  • Should you fear ‘filial responsibility’ laws?
  • Types of startup business funding
  • What types of institutions offer early direct deposit?
  • Blue Cash Preferred® Card from American Express
  • What does my 1099 tax form mean for my tax situation?
  • How does capital gains tax work?
  • 1. Your credit score
  • How much will I get from SSDI benefits?
  • The cheapest renters insurance in every state
  • When do you pay capital gains tax on a home sale?
  • How much does travel insurance cost?
  • Paying early could help your credit
  • How much is the 2023 child tax credit?
  • You can cut high interest rates
  • What information does Early Warning collect?
  • Best-performing REIT ETFs: February 2024
  • Bitcoin ETFs
  • What are the benefits of a traditional IRA?
  • Why do people invest in cryptocurrencies?
  • 2. Search your email
  • What it means to have FDIC insurance
  • Which is best for you?
  • Cheap cities to fly to Las Vegas from
  • Common costs of owning a car
  • Are my donations to a GoFundMe tax-deductible?
  • Who qualifies for a 1099-K?
  • How Alaska's boarding groups are assigned
  • 2. ... But there are redemption restrictions
  • The cheapest large car insurance company: State Farm
  • Will interest continue to accrue when payments are deferred?
  • Alternative option: Update your address by phone
  • Home equity loans and HELOCs vs. cash-out refinances: Understanding your options
  • Personalized versus average interest rates
  • Financing options for your home improvement project
  • Singapore KrisFlyer miles calculator
  • 3. Place a fraud alert on your credit record, if necessary
  • Information you need to freeze your credit
  • What does an investment manager do?
  • 2. Fly internationally as an elite member of Delta SkyMiles
  • Median 401(k) balance by age
  • Annual fund operating expenses
  • 4 ways to invest in gold
  • How does Apple Pay work?
  • Rides at Hollywood Studios vs. Magic Kingdom
  • Why the Russell 2000 matters
  • What about the extras?
  • How to get a piggyback loan
  • Alternatives to co-signing
  • How to determine whether your condition qualifies
  • How FICA tax works
  • Where Progressive falls short
  • IHDA first-time home buyer loan programs
  • How to get a tax lien removed
  • 2. New cardholders can earn a solid introductory bonus
  • Who can use Affirm?
  • When do passports expire for minors?
  • Budget planner
  • More about the best home insurance companies in California
  • Why you may need to reskill to get a new career
  • Pros of using a mortgage broker
  • When to get a financial advisor
  • Tips to ensure your credit card payment processes quickly
  • ISAs for bootcamps
  • Why short a stock?
  • 2. Refinance if you have good credit and a steady job
  • What if someone claims you have their card?
  • United in-cabin pet options
  • Repayment plans add thousands in interest
  • How to calculate adjusted gross income
  • Where the Chase Sapphire Preferred® Card shines
  • What day is my February 2024 disability payment coming?
  • 2. JW Marriott Desert Springs Resort & Spa
  • How are stocks taxed?
  • How to choose a brokerage account provider
  • The lowdown on paid online surveys
  • What credit report errors can you dispute?
  • Government grants for nonprofits
  • Who or what can remove a power of attorney?
  • Why should I invest in renewable energy?
  • Meme stock history
  • Chase Freedom Flex℠ : Our Pick for Bonus Cash Back
  • IRS standard mileage rate for business
  • Types of ACH transfers
  • 2. Get multiple quotes
  • 2. Get free overseas data using T-Mobile and Sprint
  • What Trust & Will looks like
  • Will you meet minimum spending requirement?
  • More about the best home insurance companies in Idaho
  • Where to cash a check
  • How to choose the best life insurance for people over 40 or 50
  • 2. Write a business plan
  • Different types of points and miles
  • Verify the GIA report
  • How to become a travel agent
  • What is a reasonable wedding budget?
  • What pet insurance costs
  • 2. Save on taxes by switching to an electric vehicle
  • 2. United Polaris Lounge (Terminal 7)
  • AmEx Membership Rewards points
  • Where we are now: 2023
  • Make or revise a payment plan
  • Step 2: Compare types of health insurance plans
  • How much liability insurance is required in California?
  • How do you calculate closing costs on a house?
  • Does my employer match count toward 401(k) limits?
  • 2. Make the right opening offer
  • No annual fee
  • The pros of the Southwest Companion Pass
  • The most undervalued stocks in the S&P 500
  • How to manually calculate how much life insurance you need
  • Is it the same as a currency conversion fee?
  • If you have high-interest student loans
  • 4 steps to spot a fake check and avoid trouble
  • Is there a Zelle tax loophole? 
  • Why write an executive summary?
  • How to find a federal grant
  • Who is GoodRx best for?
  • Aeromexico destinations
  • Which airline has the cheapest award flights?
  • Credit card debt
  • Cheapest for 20-year-old drivers
  • Is my money safe in the bank right now?
  • How to get AAdvantage Gold
  • What qualifies as mortgage interest?
  • 2. It’s heavy on the fees
  • What does my 1099-INT tax form mean?
  • Working with a buyer's agent to purchase a FSBO home
  • Types of rug pull
  • What are the benefits of a Roth 401(k)?
  • How the avian flu could affect turkey availability
  • Trade the gift card for cash
  • What are the benefits of Clear membership?
  • Mortgage payoff calculator help
  • Investing for income: Dividend stocks vs. dividend funds
  • 1. Research the future of cryptocurrency
  • Why companies perform reverse stock splits
  • Do you need an FSA?
  • Mortgage credit score minimums by loan type
  • What does Global Rescue membership cover?
  • How to choose between an IRA and a 401(k)
  • Gift tax limit 2023
  • Best budget pick for dogs: Lemonade
  • Where to find auto sales listings
  • Key differences
  • 1. Brigit: Best for budgeting tools
  • Conrad Hotels & Resorts
  • 2. Determine what policies and coverage amounts you need
  • How much does a Nexus card cost?
  • Another money-change option: Online currency converters
  • SIPC vs. FDIC: What is and isn’t covered
  • 4. Nix DVR service
  • What to look for
  • 2. Two factors determine your Bitcoin tax rate
  • 1. Cash-back rewards are stackable …
  • How LLCs pay income taxes
  • What identity theft protection companies do
  • Who needs to file a Schedule A tax form
  • Pros and cons of living in a state without income tax
  • What a Bitcoin or other crypto transaction looks like
  • How to buy a second home
  • 3. Bluetooth connectivity
  • 2. Redemption is refreshingly straightforward
  • Other rules for the medical expense deduction
  • Best types of businesses to start in California
  • What to expect: Delta Premium Select
  • Medicare covers Ozempic for Type 2 diabetes
  • Where to get tax refund loans
  • Option 2: One ex keeps the house
  • Do set aside savings
  • How to sit together on a flight
  • 2. Identify which type of credit card you need
  • A long non-winning stretch, but still hope
  • Who has student loan debt?
  • What is the REAL ID Act?
  • 1. It offers solid rewards
  • Airlines that don't have lie-flat seats in business class on wide-body aircraft
  • February mortgage rates forecast
  • Disney Cruise Line vs. Disney World: An overall cost comparison
  • 3. Include your account number if you're paying a bill
  • When to choose a CD over a money market account
  • Who doesn't need a Form 1099-NEC?
  • Should you hire a real estate attorney?
  • The Federal Reserve, mortgage rates and inflation
  • Where Mercury falls short
  • What is "qualified business income"?
  • Roth IRA income and contribution limits 2024
  • Beware of extra fees
  • What to include in your debt verification request
  • 4. Work today for fast cash today
  • How the Frontier GoWild Pass works
  • How much does it cost to renew a passport?
  • How to start a vending machine business: A step-by-step guide
  • What is debt collection?
  • 2. Determine what policies you need
  • What do I do with my 1099-MISC?
  • What are the benefits of Amazon Prime?
  • When is it OK to skip probate?
  • Who is eligible for Free File?
  • Where Chubb falls short
  • How to book a KLM Premium Comfort ticket
  • How long do recessions last?
  • D2C marketing examples
  • 3. Recover unclaimed money
  • Apply for a passport in person at USPS
  • Student loan refinancing calculator
  • About the passport card
  • Estate administrator responsibilities
  • Where Amica falls short
  • How the JetBlue Travel Bank works
  • Where The Hartford/AARP falls short
  • Chase direct deposit requirements for checking accounts
  • 2. It’s a deferred interest card ...
  • For direct monthly payments: No
  • 2. JP Morgan Chase
  • Why might a check take longer to clear?
  • Examples of three high-interest online savings accounts
  • Is it better to cancel a flight or change it?
  • What can I do if I slip up?
  • What happens if you don’t pay your full balance
  • Where Embrace pet insurance falls short
  • RMD table 2024
  • 2. … But it charges a flurry of fees
  • Best car insurance companies: Our winners
  • Earned income tax credit 2023
  • Have the money on hand
  • Advantages of a self-directed IRA
  • 1. IRS Free File
  • How do leveraged ETFs work?
  • Bodily injury insurance coverage limits
  • Spyware: Grabbing data from your computer (or a merchant's)
  • How do Alaska miles compare to other airlines?
  • Top Medicare Supplement Insurance companies in PA
  • 10 questions to ask financial advisors
  • When to choose a CD
  • 2. The annual fee
  • Chase points value when transferring to partners
  • What are the Walmart MoneyCenter hours?
  • The evolution of FAANG and big tech
  • How the standard deduction works
  • 7 top virtual reality stocks by one-year performance
  • What’s important for consumers to know about Early Warning Services?
  • Best in-flight entertainment in 2024
  • How to determine how much car you can afford
  • Solo 401(k) contribution limits
  • How much is YouTube Music?
  • 2. Get a backup offer online
  • When are state income tax returns due?
  • Distinguish between good debt and bad debt
  • 4 ways to gain United Polaris lounge access
  • The alternatives to student credit cards
  • 2. Save regularly
  • How Fidelity CDs work
  • Working from home job ideas
  • When will I get my tax refund in 2024?
  • How much do Uber drivers make per hour?
  • 3. Call your company
  • Devoted Health Medicare star ratings
  • What is on a Schedule C form?
  • Set your budget
  • 4. Play a game inside
  • Put additional cash in a high-yield account
  • How do I request relief?
  • Discretionary income explained
  • Other ways to contact a real person at the IRS
  • What is covered under equipment breakdown coverage?
  • Ticket types and seat selection rules
  • How to use the Capital One Venture X Rewards Credit Card travel credit
  • NerdWallet’s budget planner
  • Current CD rates: high-yield nad national averages by term
  • What is Capital One?
  • How to build a CD ladder
  • Stopover meaning in airlines
  • How to assume a mortgage
  • 3. Kill Devil Hills instead of Myrtle Beach
  • How to fill out a W-9
  • 4. Call your banks to freeze your accounts, if necessary
  • Roth IRA contribution limits 2024
  • Outdoor furniture: Summer, fall
  • How does Bitcoin make money?
  • 14 business startup costs to plan for
  • Reflect on recent money experiences, too
  • How to build an investment portfolio
  • SBA COVID EIDL loan and grant programs
  • Why your full retirement age matters
  • What is a credit limit and where can you find it?
  • 4 elements of CDs that can affect returns
  • How to calculate self-employment tax
  • Why do credit unions call it a share certificate?
  • Key features of IRAs vs 401(k)s
  • 2. There are Chase Sapphire lounges in Hong Kong, Boston and New York, with more to come
  • Early withdrawals of Roth IRA earnings
  • Student loan interest deduction form
  • Overdraft protection
  • Make a digital assets inventory
  • The customary way of thinking about it
  • How to determine your closing costs
  • What if I go over the limit?
  • How to take advantage of the sales tax deduction
  • 3. It can’t be used for a down payment
  • Where driver minimum wage rules are already in place
  • Types of itemized deductions
  • About withholding
  • Why is budgeting important?
  • Amazon's Prime Visa
  • 2. Not all memberships are the same
  • Different kinds of bags on Frontier
  • How Plaid works
  • Who are CD loans best for?
  • What are qualified and nonqualified dividends?
  • Employment gap
  • How to apply for Social Security

Fresh Year. Fresher Books. 🥳 60% Off for 6 Months. BUY NOW & SAVE

60% Off for 6 Months Buy Now & Save

Wow clients with professional invoices that take seconds to create

Quick and easy online, recurring, and invoice-free payment options

Automated, to accurately track time and easily log billable hours

Reports and tools to track money in and out, so you know where you stand

Easily log expenses and receipts to ensure your books are always tax-time ready

Tax time and business health reports keep you informed and tax-time ready

Automatically track your mileage and never miss a mileage deduction again

Time-saving all-in-one bookkeeping that your business can count on

Track project status and collaborate with clients and team members

Organized and professional, helping you stand out and win new clients

Set clear expectations with clients and organize your plans for each project

Client management made easy, with client info all in one place

Pay your employees and keep accurate books with Payroll software integrations

  • Team Management

FreshBooks integrates with over 100 partners to help you simplify your workflows

Send invoices, track time, manage payments, and more…from anywhere.

  • Freelancers
  • Self-Employed Professionals
  • Businesses With Employees
  • Businesses With Contractors
  • Marketing & Agencies
  • Construction & Trades
  • IT & Technology
  • Business & Prof. Services
  • Accounting Partner Program
  • Collaborative Accounting™
  • Accountant Hub
  • Reports Library
  • FreshBooks vs QuickBooks
  • FreshBooks vs Harvest
  • FreshBooks vs Wave
  • FreshBooks vs Xero
  • Free Invoice Generator
  • Invoice Templates
  • Accounting Templates
  • Business Name Generator
  • Estimate Templates
  • Help Center
  • Business Loan Calculator
  • Mark Up Calculator

Call Toll Free: 1.866.303.6061

1-888-674-3175

  • All Articles
  • Productivity
  • Project Management
  • Bookkeeping

Resources for Your Growing Business

The importance of business plan: 5 key reasons.

The Importance of Business Plan: 5 Key Reasons

A key part of any business is its business plan. They can help define the goals of your business and help it reach success. A good business plan can also help you develop an adequate marketing strategy. There are a number of reasons all business owners need business plans, keep reading to learn more!

Here’s What We’ll Cover:

What Is a Business Plan?

5 reasons you need a well-written business plan, how do i make a business plan, key takeaways.

A business plan contains detailed information that can help determine its success. Some of this information can include the following:

  • Market analysis
  • Cash flow projection
  • Competitive analysis
  • Financial statements and financial projections
  • An operating plan

A solid business plan is a good way to attract potential investors. It can also help you display to business partners that you have a successful business growing. In a competitive landscape, a formal business plan is your key to success.

importance of the business plan format

Check out all of the biggest reasons you need a good business plan below.

1. To Secure Funding

Whether you’re seeking funding from a venture capitalist or a bank, you’ll need a business plan. Business plans are the foundation of a business. They tell the parties that you’re seeking funding from whether or not you’re worth investing in. If you need any sort of outside financing, you’ll need a good business plan to secure it.

2. Set and Communicate Goals

A business plan gives you a tangible way of reviewing your business goals. Business plans revolve around the present and the future. When you establish your goals and put them in writing, you’re more likely to reach them. A strong business plan includes these goals, and allows you to communicate them to investors and employees alike.

3. Prove Viability in the Market

While many businesses are born from passion, not many will last without an effective business plan. While a business concept may seem sound, things may change once the specifics are written down. Often, people who attempt to start a business without a plan will fail. This is because they don’t take into account all of the planning and funds needed to get a business off of the ground.

Market research is a large part of the business planning process. It lets you review your potential customers, as well as the competition, in your field. By understanding both you can set price points for products or services. Sometimes, it may not make sense to start a business based on the existing competition. Other times, market research can guide you to effective marketing strategies that others lack. To have a successful business, it has to be viable. A business plan will help you determine that.

4. They Help Owners Avoid Failure

Far too often, small businesses fail. Many times, this is due to the lack of a strong business plan. There are many reasons that small businesses fail, most of which can be avoided by developing a business plan. Some of them are listed below, which can be avoided by having a business plan:

  • The market doesn’t need the business’s product or service
  • The business didn’t take into account the amount of capital needed
  • The market is oversaturated
  • The prices set by the business are too high, pushing potential customers away

Any good business plan includes information to help business owners avoid these issues.

importance of the business plan format

5. Business Plans Reduce Risk

Related to the last reason, business plans help reduce risk. A well-thought-out business plan helps reduce risky decisions. They help business owners make informed decisions based on the research they conduct. Any business owner can tell you that the most important part of their job is making critical decisions. A business plan that factors in all possible situations helps make those decisions.

Luckily, there are plenty of tools available to help you create a business plan. A simple search can lead you to helpful tools, like a business plan template . These are helpful, as they let you fill in the information as you go. Many of them provide basic instructions on how to create the business plan, as well.

If you plan on starting a business, you’ll need a business plan. They’re good for a vast number of things. Business plans help owners make informed decisions, as well as set goals and secure funding. Don’t put off putting together your business plan!

If you’re in the planning stages of your business, be sure to check out our resource hub . We have plenty of valuable resources and articles for you when you’re just getting started. Check it out today!

RELATED ARTICLES

Comp Time Vs Overtime: What's the Difference?

Save Time Billing and Get Paid 2x Faster With FreshBooks

Want More Helpful Articles About Running a Business?

Get more great content in your Inbox.

By subscribing, you agree to receive communications from FreshBooks and acknowledge and agree to FreshBook’s Privacy Policy . You can unsubscribe at any time by contacting us at [email protected].

👋 Welcome to FreshBooks

To see our product designed specifically for your country, please visit the United States site.

How to Format a Business Plan in 8 Simple Steps

Male fashion entrepreneur sitting at desk in front of a computer with various pieces of apparel surrounding him. Working on formatting the styling and structure of his business plan.

Noah Parsons

8 min. read

Updated October 27, 2023

Your business plan should accomplish certain goals: raise money, guide your team, and set strategies for growth. The format of your business plan will help you achieve these goals, so it’s important to think about the plan’s structure as you build it.

There isn’t one right way to organize your plan, but you do need to make sure that it’s professional, includes the information your audience wants to see, and is formatted correctly. If you’re using your business plan to raise money, then your plan needs to impress (as well as contain specific business plan components). If you’re using your plan just for internal use, then maybe you can focus less on the final presentation.

Either way, getting the formatting right for your business plan is important. Here are my top eight tips to make sure your business plan accomplishes what it needs to do.

  • 1. Always start with an executive summary

The executive summary introduces your business to your reader. If you don’t nail the executive summary, no one is going to read any further. It’s an essential business plan section to include—and get right.

Every executive summary should include a very brief overview of the following:

  • The problem your business is addressing
  • Your solution to the problem (i.e., your product or service)
  • Your target market
  • Why the timing is right for your business
  • Financial forecast highlights

If you’re raising money or presenting your plan to outsiders, you’ll also want to cover:

  • The team behind the business
  • How much money you’re looking to raise

Ideally, your executive summary should fit on one or two pages. Keep things short and concise; your readers don’t have a lot of time and want to be able to get a quick overview of your business, so they can decide whether or not they want to read more.

Your executive summary should also be able to stand alone, without the rest of your plan. A common strategy is to send your executive summary out to investors and then send out the complete plan when more detail is requested.

Remember that people who are reading your executive summary don’t know anything about your business before they start reading. You need to explain things simply so that anyone can understand your opportunity.

We have a more detailed  guide on writing an executive summary if you want additional tips on this critical business plan section.

What’s your biggest business challenge right now?

  • 2. End with supporting documents

All business plans should start with an executive summary and end with your supporting documents—an appendix of key numbers and other details that support your plan. These are the key business plan elements that should start and end your plan.

At a minimum, your appendix should include your financial forecasts and budgets. Typically, you should include a Profit & Loss statement, a Cash Flow forecast, and a Balance Sheet.

You might also use your appendix to include product diagrams or detailed research findings, depending on your business and your industry.

Be careful not to cram your appendix with endless additional information—three to six pages should be plenty. Investors and other readers of your plan can always ask for more detail if they want it.

  • 3. Keep it short

Let’s face it: No one has time to read a 40-page business plan.

If you’ve nailed your executive summary and convinced someone to read more of your plan, you’ll want to follow with eight to 12 additional pages, at most.

Instead of trying to cram everything in using small fonts and tiny margins, focus on trimming down your writing. Use direct, simple language that gets right to the point. Try not to repeat things, and omit needless words. Short paragraphs and bullet points are always a good option as well.

Remember, your goal is to communicate your business ideas, not to write the next “War and Peace.” Explain your business as if you are talking to a friend. Investors that read your plan are most likely going to skim it, so making it as short and readable as possible will increase the likelihood that they will have a solid understanding of your business.

  • 4. Use visuals

As the old adage goes, “a picture is worth a thousand words.” This is especially true when you’re formatting your business plan sections.

Because readers will most likely skim your various business plan elements and not read every word, visuals will help communicate that extra information. Use charts and graphs to explain your forecasts. Add pictures of your product. Readers will always be able to understand your company and opportunity better if you “show” instead of just “tell.”

This isn’t just idle advice: It’s a proven fact that  visuals are more effective at communicating information than text.

That said, don’t go overboard. You still want to keep your plan length reasonable, and images can take up a lot of physical space in a business plan document. But, used correctly, they can go a long way toward communicating what your business is about and how you’re going to grow sales and profits.

  • 5. Write for the right audience

I can’t count the number of times I’ve picked up a business plan for a new medical device or breakthrough drug and just simply not been able to understand the details. The thing is, I’m not a doctor or a scientist, and I don’t have the background to delve into the nuances of a surgical procedure, or the granular details of how a new drug is going to work.

This story is familiar to anyone who reads a lot of business plans. The key to solving this problem for your reader is to understand who is going to be reading your plan and write for that audience.

If you know you’re going to be presenting your plan to readers that have an in-depth understanding of your industry, of course it makes sense to present technical details that your audience is going to understand. However, if your audience is a blend of people from different industries and backgrounds, you need to present your business ideas in a way that is clear to everyone.

This is not to say that you need to “dumb down” your ideas; you just need to save some of the granular details for your appendix, or a second document that explains in detail how your product works.

After all, if your readers can’t understand your business plan, it won’t be very likely that they’ll ask you to come in for a meeting, or consider investing in your business.

6. Don’t spend too much time on how the plan looks

You want your plan to be professional, but it’s really the ideas that matter. A beautiful business plan that talks about an ill-conceived business idea with incomplete financial forecasts is never going to beat out a plan that is formatted poorly, but discusses a great, clearly explained business idea.

Spending hours or days making a beautiful plan isn’t going to make your business ideas better. Instead, focus on polishing the words that you use in your plan. Trim extra content you don’t need, and make sure your ideas are presented clearly.

If you’d like some additional help making sure your business plan is formatted correctly, you may want to check out our business plan template available through our software, LivePlan .

  • 7. Keep your formatting simple

For general formatting, use single spacing with an extra space between paragraphs. If you’re printing your plan, use a nice serif font like Garamond or Baskerville. If your plan will mostly be read on a computer screen, go with a sans serif font like Verdana or Arial.

Why choose different fonts for on-screen versus off-screen? Well, the research shows that readers have much higher comprehension when they read a document with a serif font on paper, while they have higher comprehension reading with a sans serif font on a screen.

Don’t stress too much about this, though. Choose any one of the four fonts mentioned above and move forward.

For font size, 10 to 12 point is usually ideal and readable by most people. If you need to reduce the font size to make your plan shorter, then you should be cutting content, not adjusting the font size. The same rule goes for margins: Use typical one-inch margins to make the plan readable.

Cover pages are always a good idea, too. Use the cover page to show off your logo, your tag line, or your value proposition. Don’t forget to include your contact information; after all, you want feedback and follow-up on your plan.

Finally, make sure that all the business plan components flow well visually, and that it doesn’t have any “widows” or “orphans” when it prints out. A “widow” is when the last line of a paragraph appears alone at the top of a page, and an “orphan” is a single word that gets left behind at the bottom of a paragraph.

  • 8. Get a second pair of eyes

The last piece of advice I have for formatting your business plan is to get a second pair of eyes. When you’re the only one working on your plan, you can become blind to some of the errors that you might have made.

Recruit a friend or family member, or even hire a copy-editing professional to read your plan and give it that last bit of polish.

There’s nothing worse than a plan with grammatical or spelling errors. A second pair of eyes will go a long way toward catching the majority of those potential problems.

LivePlan Logo

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Content Author: Noah Parsons

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

importance of the business plan format

Table of Contents

  • 6. Don’t spend too much time on how the plan looks

Related Articles

importance of the business plan format

14 Min. Read

8. Know all the ways to use your plan

importance of the business plan format

5 Min. Read

3. Focus on crafting a compelling message

importance of the business plan format

4 Min. Read

9. Disregard these planning myths

importance of the business plan format

8 Min. Read

7. Use the right tools and resources

The LivePlan Newsletter

Become a smarter, more strategic entrepreneur.

Your first monthly newsetter will be delivered soon..

Unsubscribe anytime. Privacy policy .

Garrett's Bike Shop

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

LivePlan pitch example

Discover the world’s #1 plan building software

importance of the business plan format

  • 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/

As an Amazon Associate we earn from qualifying purchases.

This book may not be used in the training of large language models or otherwise be ingested into large language models or generative AI offerings without OpenStax's permission.

Want to cite, share, or modify this book? This book uses the Creative Commons Attribution License and you must attribute OpenStax.

Access for free at https://openstax.org/books/entrepreneurship/pages/1-introduction
  • Authors: Michael Laverty, Chris Littel
  • Publisher/website: OpenStax
  • Book title: Entrepreneurship
  • Publication date: Jan 16, 2020
  • Location: Houston, Texas
  • Book URL: https://openstax.org/books/entrepreneurship/pages/1-introduction
  • Section URL: https://openstax.org/books/entrepreneurship/pages/11-4-the-business-plan

© Jan 4, 2024 OpenStax. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo are not subject to the Creative Commons license and may not be reproduced without the prior and express written consent of Rice University.

The Undeniable Importance of a Business Plan

We often hear about business plans in the context of early-stage companies; however, constructing excellent business plans is difficult and time-consuming, so many entrepreneurs avoid them. But, is this a mistake?

While most people may be aware of the “soft” arguments for and against writing a business plan, in this article, a Toptal Finance Expert takes a data-driven approach to addressing the debate. In it, he finds strong evidence to support the notion that writing an excellent business plan is time well spent.

The Undeniable Importance of a Business Plan

By Sean Heberling

Sean has analyzed 10,000+ companies, built complex models, and helped facilitate $1+ billion in investment transactions.

Previously At

Executive summary.

  • Individuals who write business plans are 2.5x as likely to start businesses.
  • Business planning improves corporate executive satisfaction with corporate strategy development.
  • Angels and venture capitalists value business plans and their [financial models](https://www.toptal.com/finance/tutorials/what-is-a-financial-model).
  • Companies who complete business plans are 2.5x as likely to get funded.
  • Even if a small-scale early-stage venture seeking just $250,000 in capital spent almost $40,000 on business planning and another almost $40,000 on capital raising, it should still expect to "break even" on a probability-weighted basis.
  • Larger early-stage ventures enjoy extraordinary probability-weighted returns on investment from business planning. Because the target net capital so greatly exceeds the money spent on business planning, the prospective ROI is huge.
  • Company Overview: An explanation of why your company is relevant and the need you are addressing.
  • Market Overview: A description of the state of your market and its important trends, a detailed description of your customers, and a description of your current competitors and their advantages.
  • Product/Service Overview: A description of your product(s), how they compete with other brands, why they are needed, and why customers will pay a fair economic value for it.
  • Financial Projections: Three thorough financial plans with conservative, moderate, and optimistic assumptions.
  • The process of writing forces the author to ask introspectively how they reached their conclusions and each of the sub-conclusions along the way because they must explain their logic to a cynical reader.
  • The written author needs to support all conclusions with facts and logic to prove that they are not "making it up" or relying upon popular "myths."
  • Outlined reports and outlined business plans are not generally subject to the same level of reader scrutiny.

We often hear about business plans in the context of early-stage companies , but constructing excellent business plans is difficult and time-consuming, so many entrepreneurs avoid them. That’s a mistake, as there is strong evidence demonstrating that business plans generate positive returns on time and money invested .

The business world has long debated the importance of business plans, and most involved understand the “soft” arguments. However, this article delves into the data to conclude that writing an excellent business plan is time well spent. I developed a similar view over my 20+ year financial career , during which I have analyzed well over 10,000 different types of companies. I have noticed that while a business plan may not be required for a venture to become successful, having one does seem to greatly improve the probability of successful outcomes.

Expert Opinions Support the Value of Business Planning

Expert opinions support the four following conclusions:

  • Angels and venture capitalists value business plans and their financial models.

Individuals Who Write Business Plans Are 2.5x More Likely to Become Entrepreneurs

Many people have business ideas over the course of their careers, but often, these ideas never come to fruition, or they get lost amidst our daily obligations. Interestingly, studies support the notion that those who write business plans are far more likely to launch their companies. Data from the Panal Study of Entrepreneurial Dynamics in fact suggests that business planners were 2.5x as likely to get into business . The study, which surveyed more than 800 people across the United States who were in the process of starting businesses, therefore concluded that “writing a plan greatly increased the chances that a person would actually go into business.”

Of course, causation of this phenomenon is hard to pin down. There are several different possible reasons why this correlation between writing business plans and actually starting a business may exist. But William Gartner, Clemson University Entrepreneurship Professor and author of the Panal Study, believes that “‘research shows that business plans are all about walking the walk. People who write business plans also do more stuff.’ And doing more stuff, such as researching markets and preparing projections, increases the chances an entrepreneur will follow through.”

Research shows that business plans are all about walking the walk. People who write business plans also do more stuff. And doing more stuff, such as researching markets and preparing projections, increases the chances an entrepreneur will follow through.

William Bygrave, a professor emeritus at Babson College, reached a similar conclusion despite having previously shown “that entrepreneurs who began with formal plans had no greater success than those who started without them.” Bygrave does admit, however, that “40% of Babson students who have taken the college’s business plan writing course go on to start businesses after graduation, twice the rate of those who didn’t study plan writing.”

Business Planning Improves Corporate Executive Satisfaction

Another important way in which business plans can provide tangible help is by aligning everyone in an organization with the vision and strategy going forward. And this, in turn, has important ramifications on corporate executive satisfaction. A study by McKinsey & Company which surveyed nearly 800 corporate executives across a range of industries confirms this conclusion. In it, McKinsey found that “formal strategic-planning processes play an important role in improving overall satisfaction with strategy development. That role can be seen in the responses of the 79 percent of managers who claimed that the formal planning process played a significant role in developing strategies and were satisfied with the approach of their companies, compared with only 21 percent of the respondents who felt that the process did not play a significant role. Looked at another way, 51% of the respondents whose companies had no formal process were dissatisfied with their approach to the development of strategy, against only 20% of those at companies with a formal process.”

A chart of what role the formal planning process plays in a company next to a chart showing the percentage of respondents who are dissatisfied with their company's approach to the development of strategy

Of course, not all planning is equal. Planning just for the sake of planning doesn’t have the desired effects. As McKinsey itself noted in their study, “Just 45% of the respondents said they were satisfied with the strategic planning process. Moreover, only 23% indicated that major strategic decisions were made within its confines. Given these results, managers might well be tempted to jettison the planning process altogether.” As such, entrepreneurs and business managers should take the time and effort required to put together a well-written and well-researched business plan. Later in the article, I outline some of the elements of a well-written plan.

Business Plans and Their Financial Models Are Valuable to Angels and Venture Capitalists

Many entrepreneurs will eventually need to raise outside capital to grow and develop their businesses. In my experience, a business plan is a crucial tool in maximizing the chances of raising money from external investors. A well-written plan not only helps investors understand your business and your vision, but also shows them that you’ve taken the time to carefully assess and think through the issues your business will face, as well as the more detailed questions surrounding the economics and fundamentals of your business model.

Nathan Beckford, CFA, is the CEO of FounderSuite, the funding stack used by startups in Y Combinator, TechStars, 500s, and more to raise over $750 million. Nathan illustrates the above point nicely in an email he wrote to me recently: “Prior to starting Foundersuite.com, I ran a startup consulting business called VentureArchetypes.com. For the first few years, our primary business was cranking out bold, bullish, beautifully-written business plans for startups to present to investors. Around the mid-2000s, business plans started to go out of favor as the ‘Lean Startup’ methodology became popular. Instead of a written plan, we saw a huge uptick in demand for detailed financial models. Bottom line, I still see value in taking time to be contemplative and strategic before launching a startup. Does that need to be in the form of a 40-page written document? No. But if that’s the format that best works for you, and it can help you model scenarios and ‘see around the corner’ then that’s valuable.”

Nathan and I have frequently interacted, as I maintain a subscription to FounderSuite, software I use when running capital campaigns for early-stage companies on whose boards I sit, or when raising capital for my own firm’s investment projects. Nathan’s feedback is helpful, as he frequently interacts with thousands of entrepreneurs simultaneously running capital campaigns, providing him with a great perspective on which approaches work and which don’t. Clearly, he sees that financial models and business plans in some form help entrepreneurs raise capital.

Companies Who Complete Business Plans Are 2.5x as Likely to Get Funded

Following the section above, naturally, if business plans are useful to outside investors, these are therefore likely to also increase one’s chances of successfully raising capital. A study by Palo Alto Software confirms this hypothesis. The study showed that although 65% of entrepreneurs had NOT completed business plans, the ones who had were twice as likely to have secured funding for their businesses.

A chart comparing elements of companies with business plans to companies with no business plan

This study surveyed 2,877 entrepreneurs. Of those, 995 had completed business plans, with 297 of them (30%) having secured loans, 280 of them (28%) having secured investment capital, and 499 of them (50%) having grown their businesses. Contrast these percentages with the results for the 1,882 entrepreneurs who had not completed business plans, where just 222 of them (12%) had secured loans, 219 of them (12%) had secured investment capital, and 501 of them (27%) had grown their businesses. (Note that the percentages among the business plan population sum to over 100% because of some overlap between each of the sub-categories.) These results led the study authors to conclude that “Except in a small number of cases, business planning appeared to be positively correlated with business success as measured by our variables. While our analysis cannot say that completing a business plan will lead to success, it does indicate that the type of entrepreneur who completes a business plan is also more likely to run a successful business.”

Calculating the Return on Investment for Business Planning

The data and studies outlined above all serve to prove something that I have come to understand very clearly throughout my career. Nevertheless, I still often find that startups struggle with the idea of having to put together a business plan, and in particular with the option of hiring an outside professional to help them do that. As such, I quantified the ROI of such an activity, using data and numbers based on my many years of business consulting. The results of the exercise are summarized in the table at the end of the section, but there are two overarching conclusions:

  • Even a small-scale early-stage company can “afford” to pay a finance expert $191 per hour both to create a business plan and to guide the capital raising process, at worst “breaking even” on the investment.
  • Larger early-stage companies can expect significant returns on investments in business planning, perhaps as much as 6,700% (67x the amount of money invested).

Diving into the analysis, my inputs included:

  • My professional experience with writing business plans. I have spent 25 - 200 hours apiece creating business plans I feel comfortable sharing with founders, advisors, and investors.
  • Data from the Palo Alto study discussed earlier in this article. This study showed that 30% of early-stage ventures with business plans had secured funding, 2.5x as great as the 12% of early-stage ventures without business plans who managed to secure funding despite the absence of such plans.
  • The hourly rate for a finance expert x (150 to 200 hours) for one round of financing, OR
  • 10% of the amount of capital targeted

My analysis illustrates the following:

  • Early-stage companies should expect to spend $4,000 - $40,000 on business planning, including the financial modeling associated with it.
  • Early-stage companies should expect to spend $30,000 - $200,000 for an initial round of financing between $250,000 and $2 million in size, resulting in net financing of $200,000 - $1.8 million.
  • Even if a small-scale early-stage venture seeking just $250,000 in capital spent almost $40,000 on business planning and another almost $40,000 on capital raising, it should still expect to “break even” on a probability-weighted basis. In other words, because the odds of success with a professional business plan are 2.5x greater than without one, small-scale early-stage ventures can justify such a significant investment. This also assumes NO additional odds for success from engaging a professional to coordinate the fundraising effort. I suspect that doing so may push the odds of success from 12% without a business plan and 30% with a business plan to above 50%. It is also likely that a smaller-scale venture may require significantly fewer hours for business planning and capital raising that what is outlined in the “worst case” below.
  • Larger early-stage ventures enjoy extraordinary probability-weighted returns on investment from business planning. Because the target net capital so greatly exceeds the money spent on business planning, the prospective ROI is huge, and this analysis just assumes ONE round of equity financing. Most successful startups will experience several rounds of financing.

A table showing calculations on return of investment in business planning

Thoughts on Writing an Excellent Business Plan

An extensive overview of how to write an excellent business plan is beyond the scope of this article. However, here are two key thoughts that have emerged from my years of experience with startups.

First, there are four common elements to an excellent business plan. In Alan Hall’s Forbes article, “ How to Build a Billion Dollar Business Plan: 10 Top Points ,” he interviews Thomas Harrison, Chairman of Diversified Agency Services, an Omnicom division that has purchased “a vast number of firms,” to share his views on the key elements of a great business plan. Although each of these ten elements is essential, I reorganized the list into four broad categories:

1. Company Overview

  • An explanation of why your company is relevant and the need are you addressing
  • A description of corporate priorities and the processes to achieve them.
  • An overview of the various resources, including the people that will be needed, to deliver what’s expected by the customer.

2. Market Overview

  • A description of the state of your market and its important trends.
  • A detailed description of your customers.
  • A description of your current competitors and their advantages. Which ones will you displace?

3. Product/Service Overview

  • A description of your products, how they compete with other brands, and why they are needed.
  • An explanation of why customers will pay a fair economic value for your product or service. This element is conspicuously absent from some of today’s most expensive unicorns. Companies such as Uber and Tesla are losing massive amounts of money on rapidly growing sales because these companies may not be selling their services/products for fair economic value. Of course, sales grow rapidly when customers can buy your services/products for far less than their fair economic values!

4. Financial Projections

  • Conservative
  • Each scenario should have realistic and achievable sales, margins, expenses, and profits on monthly, quarterly, and annual bases. Again, these elements appear to be conspicuously absent from some of today’s most expensive unicorns.

A diagram showing four key elements to an excellent business plan

Second, written business plans are superior to those just “outlined.” As an adjunct professor of finance for Villanova University, I require my students to write research reports prior to developing slide decks to present their findings from a full semester of industry research. The process of writing forces the authors to ask themselves how they reached their conclusions and each of the sub-conclusions along the way because they must explain their logic to cynical readers. The written authors need to support their conclusions with facts and logic to prove that they are not “making it up” or relying upon popular “myths.” Outlined reports and outlined business plans are not generally subject to the same level of reader scrutiny. Therefore, written business plans are superior to those just “outlined.” Outlined plans are often kept on 10-12 slide decks, and the slide deck is an important tool in the capital raising process, but the written business plan that stands behind it will differentiate an entrepreneur from their seemingly infinite competition.

Parting Thoughts

Some argue that many public multi-billion-dollar companies such as Apple or Google never had formal business plans before they started, but this argument is flawed because most of these companies likely developed business plans either during the solicitation of venture capital or during the process of going public. Apple and Google were both funded with venture capital, and soliciting venture capital involves business planning. The founders of Apple and Google likely created financial projections and outlined strategic paths.

Moreover, Apple and Google are both public companies, and going public involves business planning. Underwriters employ research analysts creating financial forecasts based on business plans projected by management at the companies going public. Buy-side firms purchasing and holding shares in newly public companies create forecasts based upon the business plans projected by public company management teams.

Admittedly, you don’t need a written business plan to have a successful company. You may not even need a business plan at all to have a successful company. However, the probability of success without a business plan is much lower. Angels and venture capitalists like to know about your business plan, and public companies need to project business plans to persuade underwriters and investors to purchase their securities.

Further Reading on the Toptal Blog:

  • Creating a Narrative from Numbers
  • Business Plan Consultants: Who They Are and How They Create Value
  • Building a Business Continuity Plan
  • Building the Next Big Thing: A Guide to Business Idea Development
  • Mission Statements: How Effectively Used Intangible Assets Create Corporate Value

Understanding the basics

Why it is important to have a business plan.

Expert opinions and numerous studies show that business plans improve corporate satisfaction, are useful for angel investors and venture capitalists, and increase a company’s chances of raising capital by 2.5x.

What are the benefits of a business plan?

Individuals who write business plans are 2.5x as likely to start businesses. Moreover, business planning improves corporate executive satisfaction with corporate strategy development. Finally, investors value business plans, making the chances of raising capital 2.5x greater.

What does an investor look for in a business plan?

The four key sections of a business plan are: the company overview, a market overview, your product/service overview, and the financial projections.

  • BusinessPlan

Sean Heberling's profile image

Located in Bryn Mawr, PA, United States

Member since October 18, 2017

About the author

Sustainable success: a framework for optimizing profit.

World-class articles, delivered weekly.

Subscription implies consent to our privacy policy

Toptal Finance Experts

  • Blockchain Consultants
  • Business Management Consultants
  • Business Plan Consultants
  • Business Process Optimization Consultants
  • Certified Public Accountants (CPA)
  • Economic Development Consultants
  • Equity Research Analysts
  • Excel Experts
  • Financial Benchmarking Consultants
  • Financial Forecasting Experts
  • Financial Modeling Consultants
  • Financial Writers
  • Fintech Consultants
  • FP&A Managers
  • Fractional CFOs
  • Fundraising Consultants
  • FX Consultants
  • Growth Strategy Consultants
  • Integrated Business Planning Consultants
  • Interim CFOs
  • Investment Managers
  • Investment Thesis Consultants
  • Investor Relations Consultants
  • M&A Consultants
  • Market Sizing Experts
  • Pitch Deck Consultants
  • Private Equity Consultants
  • Procurement Consultants
  • Profitability Analysis Experts
  • Real Estate Experts
  • Restructuring Consultants
  • Risk Management Consultants
  • Small Business Consultants
  • Supply Chain Management Consultants
  • Valuation Specialists
  • Venture Capital Consultants
  • Virtual CFOs
  • Xero Experts
  • View More Freelance Finance Experts

Join the Toptal ® community.

  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Additional menu

MindManager Blog

The ultimate guide to business planning (with template)

November 19, 2020 by MindManager Blog

By: Jill Huettich

If you could do something to double the success of your business, would you do it? Of course you would! Happily, that’s not pie-in-the-sky kind of talk either. There is something you can do to increase your likelihood of business success by a whopping 200%. That something is business planning. Time and time again, business planning has been shown to have a huge impact on business growth.

Take, for instance, the results of a survey completed by 2,877 business owners. After analyzing respondents’ answers, the Oregon Department of Economics concluded that business planning correlates with success in multiple areas, including: obtaining a loan, getting investment capital, making a major purchase, recruiting a new team member, thinking more strategically, and growing a company.

Mind you, those results were “regardless of the type of company, the growth stage of the company, and the intent of the business plan.” Clearly, business planning works!

In this guide to business planning, we’ll cover everything you need to know about business plans, their benefits and importance, what does into one, and will provide a template for you to get started. Jump ahead using the links below.

What is business planning?

The importance of business planning, how to write a business plan, sample business plan template.

  • Downloadable MindManager template

[Free eBook] How Visualization Builds Better Strategic Plans

Business planning refers to the process of determining a company’s objectives, strategies, and projected actions to reach certain goals within a specific time fame. Typically, business planning focuses on two key areas: making profits and mitigating risks.

When companies engage in business planning, it’s with the objective of creating a business plan.  A business plan is a written document that contains: the company’s vision, a description of the company, information about its products and services, marketing research, sales strategies, financial projections, competitor analysis, and financial records.

The purpose of a business plan is to act as a road map of sorts, providing a company with the direction, focus, and clarity it needs to achieve its goals.

Business planning vs. strategic planning

Now that you know what business planning is, you may be wondering if it’s any different from strategic planning, and if so, how? That’s what we’ll go over in this section.

As we mentioned before, business planning provides a detailed overview of a company. Usually, this is undertaken with the goal of building revenue and support for a startup. In other words, a business plan tests the proposition that a “particular undertaking—program, partnership, new venture, growth strategy, or entity as a whole—is economically or operationally viable.”

By contrast, a strategic plan is a high-level document that creates a vision for an established company. From that vision, broadly defined objectives are outlined.

Because strategic plans define companies’ most important objectives, they’re used to align department goals, build consensus among stakeholders, and prioritize company spending.

Another difference between these two types of plans is the length of time they cover. A strategic plan typically looks at a period of 3-5 years, whereas a business plan usually just looks at a year.

Additionally, business plans are primarily written to raise money, so their audience is external. Strategic plans are internal documents, created for people within the company.

The importance of business planning cannot be overstated. In particular, businesses do it for the following reasons :

1. To obtain loans or investments

It would be virtually impossible for a startup to secure capital without a business plan—they’re considered that essential.

That’s because business plans establish the viability of a business, which is something any bank or venture capitalist needs to be convinced of before funding a venture.

2. To prevent mistakes

Unfortunately, most startups don’t even last 5 years. There are a number of different reasons for this, but some of the main ones include: tough competition, low demand for what they’re selling, a poor pricing model, an inadequate team, and an inability to secure that all-important funding we just mentioned.

A good business plan helps companies anticipate these types of problems, so they can prevent them.

3. To examine viability

The idea for a startup is often met with a lot of enthusiasm. That vending machine featuring high-end desserts and pastries? Brilliant!

However, sometimes that enthusiasm needs to be tempered by reality. A business plan offers a great opportunity to do that, because it gets entrepreneurs to think through the answers to questions they may never have even considered, like “Is there a demand in this neighborhood for desserts?” and “How many businesses are already selling desserts in this location?

4. To reduce risk

Flying by the seat of your pants in the business world is not the best idea. A business plan clearly lays out a company’s objectives, as well as the landscape of the market.

As a result, business leaders know which challenges to expect. With that knowledge in hand, they can take proactive steps to mitigate their risks.

5. To accelerate growth

Quite simply, business planning works. In fact, according to one study, companies that plan grow 30% faster than those who don’t. And, interestingly enough, another study found that 71% of fast-growing companies (those defined as having 92% growth in sales from one year to the next) have business plans.

6. To identify problems with cash flow

Business plans contain 3 financial statements: a balance sheet, an income statement, and a cash flow statement. For startups, these numbers are projected.

When entrepreneurs have these numbers to refer to, they can more easily monitor cash flow, comparing reality to their projections. This gives them the opportunity to quickly deal with cash flow challenges, should any arise.

7. To make decisions

When faced with tough business decisions, it can be difficult to know which path to choose. However, with a business plan in hand, entrepreneurs can make well-thought-out decisions based on the analysis they’ve already performed.

As you can see, there are tons of great reasons to create a business plan, particularly for start-ups and other new businesses. However, even well-established businesses can benefit from a business plan.

Not only does a business plan provide a valuable overview of an entire company, but it’s also an excellent tool for pinpointing potential challenges, so they can be proactively addressed and resolved.

There may be nothing more critical to your company’s success than a business plan. That’s why it’s so important to understand how to write a business plan, and to devote time and effort to creating a solid, well-researched one.

The elements of a business plan are fairly straightforward. While no two business plans are identical, most of them rely on the following structure:

1. Executive summary

Business plans typically run dozens of pages long. While, ideally, you’d like to think that people will read your entire plan, there’s no guarantee of that—which is why the executive summary is the most important part of your business plan.

In the summary, you’ll want to provide readers with a quick synapsis that explains what your company is and why it’ll be successful.

This summary should include your company’s mission statement and a description of the product or service you provide. You’ll also want to briefly touch on the company’s founders, employees, location, and financial growth.

Aim to make your executive summary about 4 pages max , and don’t write it until you’ve completed the rest of your business plan. That’ll make it easier to summarize all the information your plan contains.

2. Company description

This detailed overview of your company includes such things as the problems your business solves, as well as the customers it serves. You should view this section as your opportunity to shine by also explaining your business’ competitive advantages.

3. Market analysis

What’s the outlook of the industry you’re in? Who’s your target market and how do you plan to reach the people in it? These are the types of questions you’ll answer in this section of your business plan.

Additionally, you’ll want to use the Market Analysis section to perform a competitor analysis, identifying who the major players are in your industry, as well as their strengths and weaknesses.

By understanding what’s working well for your competitors—and what isn’t—you’ll be better able to determine how you can grab some of their market share.

4. Organization & management

How will your business be structured—as a sole proprietorship, corporation, partnership, or LLC? Include that information in this section, as well as an organization chart showing who’s heading up your company. You may also want to include resumes or CVs for key team members here too.

5. Service or product line

This section should explain what you sell, how it helps customers, and what the product lifecycle looks like. This is where you’ll also want to mention any patents or copyrights.

6. Marketing & sales

How do you intend to attract customers? What marketing channels will you use? What’s your strategy for growth? Think carefully about your answers to these questions, because later, you’ll use this information to make your financial projections.

7. Funding request

If one of the objectives of your business plan is to obtain funding, this section should be included in your plan. When you write your funding request, you’ll want to explain what your funding requirements are over the next 5 years and how those funds will be used.

Additionally, this section should specify , “whether you want debt or equity, the terms you’d like applied, and the length of time your request will cover.”

8. Financial projections

Financial projections are a key part of your plan, particularly if you’re seeking funding. In this section, you’ll want to include financial projections for the next five years, as well as explain how you came up with those figures.

Your projections should include cash flow statements, balance sheets, income statements, and capital expenditure budgets. If your business is operational already, you’ll also want to include the past 3-5 years of those same documents.

9. Appendix

Think of this section as your final opportunity to convince readers of your business’ success. So, this is where you can include supporting documentation, like product pictures, reference letters, permits, patents, legal documents, contracts, credit histories, etc.

And there you have it! Once you’ve finished the analysis required for each of these elements—and typed your findings into a well-formatted document–your business plan will be complete.

Understanding the business planning cycle

After you’ve completed the business planning process, your work—while not over—gets easier. Your job now is to review the business plan periodically to see how well your company is achieving its objectives.

Did you meet your financial projections? In what areas is your company doing well? How is it falling short? Are there any new opportunities for your organization?

During this period of analysis, you’ll ideally want to set 1-year and 3-year goals , as well as key performance indicators (KPIs). These will help you track on a quarterly, or even monthly, basis how well your company’s meeting its objectives.

Most businesses engage in business planning on an annual or quarterly basis. Truly, it depends on how much time your organization has to devote to the task, as well as the industry you’re in.

For smaller businesses, a good aim is to perform the business planning process once a year. For larger companies—or ones where the market changes frequently—you may want to “plan to plan” every quarter.

Business Planning Template - MindManager Blog

Generally speaking, most business plan templates will include the following key elements and information. We’ve provided a downloadable MindManager template below that you can use to create your own business plan.

Section 1: Executive summary

The executive summary is the most important part of your business plan, so you’ll really want to put time and effort into getting it just right.

Make sure to include the following elements :

  • Explain the mission of your company – what is the reason for your company?
  • Describe your product or service – what types of products and services will you offer customers?
  • Introduce the company founders – who are your company’s founders, and what roles will they play within your organization?
  • Briefly provide information about your customer base – which customers will your business target, and how will your company serve them?
  • Provide an overview of your competitors – explain why your business will succeed by identifying your competitive advantage and describing how you’ll get market share.
  • Summarize your financial projections – what financial growth do you expect your company to achieve over the next few years?
  • Mention financing requirements – if your business is a start-up seeking financing, briefly mention those financial requirements here.

If you want a good idea of what your completed executive summary should look like, you can check out an example of one here.

Section 2: Company overview

In this section, you’ll want to go into greater detail than you did in the executive summary, explaining which problems your business solves, who its customers are, and what competitive advantages your company has.

Here are the important elements you’ll want to include :

  • Provide an overview of your company – what’s its mission, vision, and purpose?
  • Give background about the formation of your company – when did your company form?
  • Explain who your company’s founders are – what backgrounds do they have that make them uniquely qualified to run your business successfully?
  • Provide geographic information – where is your business located and in which markets do you have a presence?
  • Describe your company’s competitive advantages – while this was briefly touched upon in the executive summary, you’ll want to provide more information here about why your company will be successful.

Section 3: Market analysis

In this section, you want to prove the viability of your business by providing solid market research about your industry.

To achieve this goal, you’ll want to include the following in this section:

  • Identify your target market – who are you trying to sell your products and services to?
  • Describe the need for your products or services – why do you anticipate demand for your company’s offerings?
  • Give information about the overall market size – how big is the market? How much do you expect your company to sell? Are there any demographic or geographic factors that might impact your sales projections?
  • Identify the competition – who are your company’s main competitors? What advantages and disadvantages do they have? What’s their percentage of market share? How much do they sell annually?
  • Perform a SWOT analysis – identify your company’s strengths, weaknesses, opportunities, and strengths.

For help writing this section, you may find it useful to look at this marketing analysis example .

For the competitor and SWOT analyses, we recommend an information visualization software, like MindManager. View the SWOT analysis template at the end of this article.

Section 4: Organization & management

In this section, you want to give readers a solid overview of how your company will be structured. To do that, you’ll want to answer the following questions :

  • Describe the legal structure of your business – is it a sole proprietorship, corporation, partnership, or LLC?
  • Identify your management team – name the key roles within your organization, identify who will fulfill them, and explain how those individuals will be compensated. You may want to include an organization chart here too, as well as brief resumes or CVs for key team members.

Section 5: Service or product line

In this portion of the business plan, you’ll want to provide more information about the product or service you provide. So, make sure to include these elements here :

  • Describe the product or service you sell – what are you offering and how does it help customers?
  • Explain the product lifecycle – how long does it take to bring new products/services to market?
  • Provide pricing information – how will you price your products or services? What will your operating costs be?
  • Describe how you’ll acquire products – are you the manufacturer? If not, who is? Are you working directly with a manufacturer or are you going through a wholesaler? If product demand suddenly increases, what’s the likelihood you’ll experience supply problems?

Section 6: Sales and marketing strategy

Your customer acquisition strategy is especially important to potential investors, so you’ll definitely want to be thorough here. Plus, later you’ll be using this information to make financial projections, so take your time when writing this part of your plan.

  • Describe the customer acquisition process – how will you find and attract customers? For instance, will you use salespeople, call centers, social media ads, etc.?
  • Explain any promotional methods you plan on using – will you offer free samples or perform product demonstrations?
  • Provide information about the marketing materials you intend to use – like brochures, flyers, trade show booths, etc.
  • Estimate your advertising budget – how much will you have to spend to achieve your marketing objectives?

Section 7 – Funding request

This section is only necessary if you’re seeking business funding. If you are, you’ll want to include the following information in your business plan:

  • Identify your funding requirements – how much money are you requesting and how will those funds be used?
  • Describe the terms you’re seeking – do you want debt or equity? Which terms do you want applied? What length of time does your request cover?

Section 8 – Financial projections

As you might imagine, financial projections are a key part of your plan, especially if you’re seeking funding. So, in this section, you’ll want to make sure you include :

  • 5 years of projected cash flow statements, balance sheets, income statements, and capital expenditure budgets – these documents should also explain how you came up with the figures you’re using.
  • If your business is already up and running, you’ll also want to include the past 3-5 years of those same documents.

Of course to create these financial projections, you’ll need to have the right software. Two good ones to check out are ProjectionHub and PlanGuru .

These forecasting software packages make it easy to create the kinds of financial statements you’ll want to include in your business plan.

Section 9 – Appendix

This is your last chance to convince readers your business will be a success. So, if you have additional information to give your business plan more weight, you’ll want to incorporate it here. Consider including the following in this section:

  • Product pictures
  • Reference letters
  • Legal documents
  • Credit histories

And that’s it! After you’ve completed these sections, just assemble them into a single document, format everything neatly, add a table of contents, and your business plan will be complete.

Afterwards, you can use it to obtain loans, determine viability, reduce risk, assess cash flow problems, make decisions, and accelerate business growth—making it well-worth the time and effort it takes to write your plan.

importance of the business plan format

How Visualization Leads to Better Strategic Plans

Download this free eBook to learn: how visualization builds a better plan, 5 proven visualization methods, and a deep dive into the business benefits of visualization.

Write your business plans in MindManager

Download the business planning and SWOT analysis templates below by clicking Menu > Download. You can then open the templates in MindManager.

Don’t have a copy of MindManager yet? Try it free for 30 days.

Business plan template in MindManager

Swot analysis template in mindmanager, ready to take the next step.

MindManager helps boost collaboration and productivity among remote and hybrid teams to achieve better results, faster.

importance of the business plan format

Why choose MindManager?

MindManager® helps individuals, teams, and enterprises bring greater clarity and structure to plans, projects, and processes. It provides visual productivity tools and mind mapping software to help take you and your organization to where you want to be.

Explore MindManager

LOGO

Your favourite senior outside college

Home » Employer Resources » Startup Center » The Ultimate Guide to Creating Investor-Friendly Business Plans [Format Guide]

The Ultimate Guide to Creating Investor-Friendly Business Plans [Format Guide]

Business Plan Format

Are you an aspiring entrepreneur wondering what a business plan should look like and how to create one? A well-structured business plan is an essential part of any successful venture. But it may seem challenging to give shape to your business idea and not miss out on any important details.

In this blog, we’ll discuss the key elements of a business plan and provide you with a useful business plan format with sample statements to help you on your way.

Table of Contents

Business Plan: An Overview

A business plan is a detailed document that outlines the objectives, strategies, and tactics of a business. It is typically used to secure investments, financing, and other forms of support from stakeholders. The document should include information such as descriptions of the company, its products and services, its customers, its marketing and financial plans, and its operational plans. Having a business plan is crucial for any business. It can ensure that everything is taken into account and that the business is well-prepared to succeed.

Find and Apply Banner

Business Plan Format with Sample Templates

Writing a business proposal can be tricky. Whether it is a small or large business, there are a few key elements you should consider when discussing a business strategy to enhance your business plan. This section provides sample templates that can help you streamline your unique business proposal.

1. Give an Executive Summary

An executive summary in a business plan is a brief overview that outlines the major points of the plan. It should be concise and engaging so that it captures the attention of potential investors or lenders. The summary should be in paragraphs with comprehensible headings and points. To write an executive summary, you should briefly answer the following questions (not necessarily all):

  • What is the mission of your business or your company/organization?
  • How did the idea of business come up?
  • Who has the highest leadership?
  • Which industry does the business belong to?
  • What is going to be the employee base?
  • What are the business’s products and services?
  • What are the competitive advantages of the business in the already existing market/industry?
  • What marketing strategy will be used?
  • How many different operational teams are going to form?
  • What is going to be the location?
  • Who are the stakeholders?
  • How will you fund the business?
  • How much money is required to set up the business?
  • What are its future financial targets?

Here is an example of an executive summary of an organic food product start-up.

“[Company Name] is a start-up business venture that specializes in the production and distribution of organic health food products. It was founded by two entrepreneurs who have 10 years of combined experience in the health food industry. The company is located in a major metropolitan area.

Our goal is to become the top provider of organic health food products in our market. We plan to do this by providing high-quality products and services and excellent customer service. We have identified some key competitive advantages that will help us succeed, including our experienced management team, our strong network of suppliers, and our commitment to innovation.”

2. Talk About the Business’s Key Products and Services

In this section, talk about the key products and services that your business plans to offer, along with their value proposition. Here, the term value proposition means why a person will care to buy your product or service. It also uncovers unexplored and potentially marketable opportunities.

Here’s a business proposal example that includes details of key products and services for an organic healthy food product start-up:

“Our business offers organic foods that are healthier and more sustainable. Our value proposition is that our customers can enjoy healthy, farm-fresh foods while feeling good about contributing to the environment. We strive to offer a wide range of products, from organic produce to organic sauces, fruit bars, and snacks.

As dietary habits have evolved, there are a significant number of people who prefer or require gluten-free products due to their health issues. We strive to produce gluten-tolerance-tested, authentic, and trustworthy gluten-free products with delivery and online ordering to make purchasing easier for our customers.”

3. Insight on Competitive Market Analysis

Business planners need to possess comprehensive knowledge of their target industry and market. Having great business analysis skills can help a business planner get a clear understanding of how to compete effectively and gain a foothold in the market. This section should cover the following information:

  • Market Size: Describe the size of the industry, the expected growth rate, and the potential earnings it offers.
  • Target Audience: Who are the perfect customers for your business? Include details like their age, where they live, and their preferences.
  • Competitors: Write about your key competitors’ strengths and weaknesses and how you plan to counter them.
  • USP (Unique Selling Point): Cite what distinguishes your product or service from the competition. What’s your marketing plan to set yourself apart from the competition?
  • Price and Profit: Share what pricing scheme your business will follow and the estimated profit margin.
  • Rules and Regulations: Specify any special rules or laws you must follow in your industry.

An example to describe the market analysis in the business proposal template for an organic healthy food product’s start-up will be like this:

“The health food industry in India is rapidly expanding, with a compound annual growth rate (CAGR) of 20% and an expected CAGR of 16% by 2026, equivalent to $30 billion. This growth is attributed to the increasing number of health-conscious individuals, who are expected to grow from 100 million to 176 million by 2026. Healthy snacking categories like cookies, fruit snacks, snack bars, and trail mixes are expected to experience significant growth.

Our products and services stand out due to our commitment to quality and reasonable prices. Our experienced management team, strong supplier network, and innovation are key competitive advantages. We aim to market our products to health-conscious consumers seeking organic alternatives to conventional foods, aiming to become the leading organic food supplier.”

4. Target Audience Selection

A business’s success is incomplete without fostering and developing its customer base. “You must know your customers and the customers must know you” – this should be the motto for your business.

After in-depth research on target customers, you can form the right marketing and sales strategies. The best way to identify customers is to understand their problems and needs. Simply put, your business’s products and services must solve their problems and fulfill their wants. Here’s an example to share about the target audience selection for an organic, healthy food product start-up:

“Our target audience is adults aged 18-40 who are health-conscious and interested in organic options. We will focus our marketing and sales efforts on this demographic, as they are likely to be more open to trying new products and more likely to embrace organic alternatives. Our goal is to become the leading organic food supplier for this demographic.”

5. Structure of the Company’s Management and Team

This section of the business plan template will discuss the teams and departments that will make the business run. Briefly outline the roles and responsibilities of a position and create a job posting to hire the right employee.

Here is one way to briefly mention your company’s management team structure:

We will have a CEO, COO, CFO, and other executive positions to manage the company’s operations. Several teams will be involved in running the business, including a customer service team, administration, human resources, sales and marketing team, finance team, operations team, and product development team. Each team would have its own set of roles and responsibilities.”

6. Marketing and Promotional Strategies

This is one of the most crucial parts of your business plan. The right marketing and promotional plans help spread the word about your product or service, increase overall brand awareness, capture market share, and thereby, increase the customer base, sales, and profits. Here is a brief overview of marketing and promotional strategies in your business proposal:

“Our marketing strategy is centered around a multi-faceted approach to engaging with our customers. We will create interesting and relevant content for social media platforms, optimize our website for search engines, collaborate with influencers, run targeted online ads, and send out email campaigns.

Our promotional efforts will include limited-time discounts, loyalty programs, and exclusive events to connect with our customers on a personal level. We plan to expand our outreach through partnerships with complementary businesses and attending industry events. To measure the effectiveness of our strategies, we will leverage analytics tools and gather customer feedback to make necessary adjustments. Our ultimate aim is to build trust and credibility in our brand.”

7. Details of Developing Sales Funnel

The growth strategy of a business depends heavily on its sales funnel strategy. This is because successful sales will lead to revenue growth and business expansion. An example to mention about the sales funnel in the business plan model is:

“Our sales funnel is designed to help our business generate more leads and close more sales. We will start by optimizing our online presence to increase visibility and attract potential customers. From there, we will create content and campaigns to nurture leads and build valuable customer relationships. We will then use analytics and other data-driven tactics to identify qualified prospects and target them with effective messaging and emails. Finally, we plan to use automated tools to manage the sales process from start to finish.”

8. Lay Out Your Financial Plan and Budget

This point of your business proposal will include details of the budget, balance sheet, revenue generation, cost reduction strategies, and other expenses. It should talk about the costs required to cover all business operations, management, and estimated future revenue projections. Here is a template of a business budget.

Business Budget Template

9. Add Appendix to Provide Additional Details

The appendix to a business proposal template includes extra documents that give more information about the proposal. You can put in any part that needs evidence, facts, or reports. Normally, the appendix can have these documents:

  • Market research with charts and data from other sources.
  • Licenses, contracts, certificates, or patent papers.
  • Maps and plans for expanding the business facility.
  • Contact details for team members, board members, and current investors.
  • Reports and statements from quality-check experts.
  • Financial documents like the balance sheet and the company’s account statements.

Every business needs a one-of-a-kind business plan format. It should contain all the necessary information and documents to give the reader, investors, and stakeholders a comprehensive overview of the proposed business. By taking the time to structure and create a detailed business plan, entrepreneurs, business planners, and analysts can create a clear and concise guide to help them achieve their goals. Executing a successful business plan, therefore, requires skilled professionals. If you are interested in the field of business management and helping businesses make valuable decisions, then look for work from home accounts jobs to contribute.

Have you ever drafted a business plan? Tell us in the comments below!

  • ← Previous
  • Next →

importance of the business plan format

Sandipta Banerjee has completed her Master's in English Literature and Language. She has been working in the field of editing and writing for the past five years. She started her writing journey at a very young age with her poems which have now evolved into a poetry blog. She was working as Editorial Head in a US-based publishing house before joining Internshala.

Related Post

importance of the business plan format

What is Innovation in Business Model?: Types, Strategies, & More

Inspiring change in an organization remains one of the most daunting tasks today, yet it’s paramount if success is desired in the ever-changing business landscape. To get through this barrier,

importance of the business plan format

Top 25 Home Business Ideas: Make Your Primary Office Your Home

The concept of home business dates back to ancient times, like pottery-making during the Indus civilization, hand-made textiles, tea, spices, precious metals, and stones that traveled through the silk route

importance of the business plan format

How to Make a Business Plan: Crafting a Winning Business Plan

A study revealed that entrepreneurs who create formal business plans have a 16% higher chance of achieving viability compared to those who do not plan but are otherwise similar in

importance of the business plan format

How to Become an Entrepreneur: A Step-by-Step Guide

Entrepreneurship is an interesting journey for free-thinkers who love creativity and innovation. Although the journey of entrepreneurship might seem challenging at first, it’s more than rewarding in the long run.

  • Auto Insurance Best Car Insurance Cheapest Car Insurance Compare Car Insurance Quotes Best Car Insurance For Young Drivers Best Auto & Home Bundles Cheapest Cars To Insure
  • Home Insurance Best Home Insurance Best Renters Insurance Cheapest Homeowners Insurance Types Of Homeowners Insurance
  • Life Insurance Best Life Insurance Best Term Life Insurance Best Senior Life Insurance Best Whole Life Insurance Best No Exam Life Insurance
  • Pet Insurance Best Pet Insurance Cheap Pet Insurance Pet Insurance Costs Compare Pet Insurance Quotes
  • Travel Insurance Best Travel Insurance Cancel For Any Reason Travel Insurance Best Cruise Travel Insurance Best Senior Travel Insurance
  • Health Insurance Best Health Insurance Plans Best Affordable Health Insurance Best Dental Insurance Best Vision Insurance Best Disability Insurance
  • Credit Cards Best Credit Cards 2024 Best Balance Transfer Credit Cards Best Rewards Credit Cards Best Cash Back Credit Cards Best Travel Rewards Credit Cards Best 0% APR Credit Cards Best Business Credit Cards Best Credit Cards for Startups Best Credit Cards For Bad Credit Best Cards for Students without Credit
  • Credit Card Reviews Chase Sapphire Preferred Wells Fargo Active Cash® Chase Sapphire Reserve Citi Double Cash Citi Diamond Preferred Chase Ink Business Unlimited American Express Blue Business Plus
  • Credit Card by Issuer Best Chase Credit Cards Best American Express Credit Cards Best Bank of America Credit Cards Best Visa Credit Cards
  • Credit Score Best Credit Monitoring Services Best Identity Theft Protection
  • CDs Best CD Rates Best No Penalty CDs Best Jumbo CD Rates Best 3 Month CD Rates Best 6 Month CD Rates Best 9 Month CD Rates Best 1 Year CD Rates Best 2 Year CD Rates Best 5 Year CD Rates
  • Checking Best High-Yield Checking Accounts Best Checking Accounts Best No Fee Checking Accounts Best Teen Checking Accounts Best Student Checking Accounts Best Joint Checking Accounts Best Business Checking Accounts Best Free Checking Accounts
  • Savings Best High-Yield Savings Accounts Best Free No-Fee Savings Accounts Simple Savings Calculator Monthly Budget Calculator: 50/30/20
  • Mortgages Best Mortgage Lenders Best Online Mortgage Lenders Current Mortgage Rates Best HELOC Rates Best Mortgage Refinance Lenders Best Home Equity Loan Lenders Best VA Mortgage Lenders Mortgage Refinance Rates Mortgage Interest Rate Forecast
  • Personal Loans Best Personal Loans Best Debt Consolidation Loans Best Emergency Loans Best Home Improvement Loans Best Bad Credit Loans Best Installment Loans For Bad Credit Best Personal Loans For Fair Credit Best Low Interest Personal Loans
  • Student Loans Best Student Loans Best Student Loan Refinance Best Student Loans for Bad or No Credit Best Low-Interest Student Loans
  • Business Loans Best Business Loans Best Business Lines of Credit Apply For A Business Loan Business Loan vs. Business Line Of Credit What Is An SBA Loan?
  • Investing Best Online Brokers Top 10 Cryptocurrencies Best Low-Risk Investments Best Cheap Stocks To Buy Now Best S&P 500 Index Funds Best Stocks For Beginners How To Make Money From Investing In Stocks
  • Retirement Best Gold IRAs Best Investments for a Roth IRA Best Bitcoin IRAs Protecting Your 401(k) In a Recession Types of IRAs Roth vs Traditional IRA How To Open A Roth IRA
  • Business Formation Best LLC Services Best Registered Agent Services How To Start An LLC How To Start A Business
  • Web Design & Hosting Best Website Builders Best E-commerce Platforms Best Domain Registrar
  • HR & Payroll Best Payroll Software Best HR Software Best HRIS Systems Best Recruiting Software Best Applicant Tracking Systems
  • Payment Processing Best Credit Card Processing Companies Best POS Systems Best Merchant Services Best Credit Card Readers How To Accept Credit Cards
  • More Business Solutions Best VPNs Best VoIP Services Best Project Management Software Best CRM Software Best Accounting Software
  • Manage Topics
  • Investigations
  • Visual Explainers
  • Newsletters
  • Abortion news
  • Coronavirus
  • Climate Change
  • Vertical Storytelling
  • Corrections Policy
  • College Football
  • High School Sports
  • H.S. Sports Awards
  • Sports Betting
  • College Basketball (M)
  • College Basketball (W)
  • For The Win
  • Sports Pulse
  • Weekly Pulse
  • Buy Tickets
  • Sports Seriously
  • Sports+ States
  • Celebrities
  • Entertainment This!
  • Celebrity Deaths
  • American Influencer Awards
  • Women of the Century
  • Problem Solved
  • Personal Finance
  • Small Business
  • Consumer Recalls
  • Video Games
  • Product Reviews
  • Destinations
  • Airline News
  • Experience America
  • Today's Debate
  • Suzette Hackney
  • Policing the USA
  • Meet the Editorial Board
  • How to Submit Content
  • Hidden Common Ground
  • Race in America

Personal Loans

Best Personal Loans

Auto Insurance

Best Auto Insurance

Best High-Yields Savings Accounts

CREDIT CARDS

Best Credit Cards

Advertiser Disclosure

Blueprint is an independent, advertising-supported comparison service focused on helping readers make smarter decisions. We receive compensation from the companies that advertise on Blueprint which may impact how and where products appear on this site. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impact any of the editorial content on Blueprint. Blueprint does not include all companies, products or offers that may be available to you within the market. A list of selected affiliate partners is available here .

Free business plan template (with examples)

Alan Bradley

Sierra Campbell

Sierra Campbell

“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.

Updated 3:37 a.m. UTC Feb. 12, 2024

  • path]:fill-[#49619B]" alt="Facebook" width="18" height="18" viewBox="0 0 18 18" fill="none" xmlns="http://www.w3.org/2000/svg">
  • path]:fill-[#202020]" alt="Email" width="19" height="14" viewBox="0 0 19 14" fill="none" xmlns="http://www.w3.org/2000/svg">

Editorial Note: Blueprint may earn a commission from affiliate partner links featured here on our site. This commission does not influence our editors' opinions or evaluations. Please view our full advertiser disclosure policy .

Featured Image

AzmanL, Getty Images

Starting a business can be a daunting undertaking. As with so many large projects, one of the most difficult challenges is just getting started, and one of the best ways to start is by putting together a plan. A plan is also a powerful tool for communication and can serve as a cornerstone for onboarding new partners and employees or for demonstrating your philosophy and priorities to potential collaborators. 

A solid business plan will not only provide a framework for your business going forward but will also give you an early opportunity to organize and refine your thoughts and define your mission statement, providing a guidepost that can serve as a beacon for your business for years to come. We’ve provided a business plan template below to help guide you in the creation of your new enterprise.

Featured LLC service offers

Zenbusiness.

importance of the business plan format

Via ZenBusiness’ Website

Free version available

Lowest published package price

importance of the business plan format

Via LegalZoom’s Website

Northwest Registered Agent

importance of the business plan format

Via Northwest’s Website

Business plan template

What should a business plan include?

Regardless of the type of business you own or the products and services you provide, every business plan should include some core elements:

  • Mission statement. The definition and executive summary of your business.
  • Market analysis. A breakdown of the market segment and customers you hope to reach, built through primary (gathered by you) and secondary (gathered from outside sources) research.
  • Organization and logistics. The nuts and bolts of how your business is operated
  • Products or services. What your company provides its customers.
  • Advertising and marketing. How you intend to get your products in front of your customers.
  • Forecasting. Revenue forecasting for partners or potential investors.

Why do you need a business plan?

A business plan is a framework for success. It provides a number of key benefits:

  • Structure. The outline around which to design your business.
  • Operational guidance. A signpost for how to run your business from day to day.
  • Expansion. A vision for the future growth of your enterprise.
  • Definition. A platform to consider every element of your business and how best to execute your plans for them.
  • Collaboration. A synopsis of what’s exceptional about your business and a way to attract funding, investment or partnerships.
  • Onboarding. An efficient summary of your business for new or potential employees.

Business plan examples

We’ve created two fictional companies to illustrate how a business might use a business plan to sketch out goals and opportunities as well as forecast revenue.

Bling, Incorporated

Our first hypothetical example is a jewelry and accessory creator called Bling, Incorporated. A hybrid business that manufactures its products for sale both online and through physical retail channels, Bling’s mission statement is focused on transforming simple, inexpensive ingredients into wearable statement pieces of art. 

Market analysis includes gathering data around sourcing sustainable, inexpensive components, aesthetic trends in fashion and on which platforms competitors have had success in advertising jewelry to prospective customers. Logistics include shipping products, negotiating with retailers, establishing an e-commerce presence and material and manufacturing costs. 

Bling, Incorporated advertises initially through social platforms like TikTok and Facebook, as well as with Google AdSense, with plans to eventually expand to television advertising. Revenue forecasting is structured around a low overhead on the basis of inexpensive materials, no dedicated storefront and broad reach through digital platforms.

Phaeton Custom Cars

Phaeton is a custom car builder and classic car restoration business with a regional focus and reach. Its mission statement defines it as a local, family-owned business serving a community of auto enthusiasts and a broader regional niche of collectors. 

Market analysis breaks down the location and facilities of other competitor shops in the region as well as online communities of regional car enthusiasts likely to spend money on custom modifications or restoration projects. It also examines trends in valuations for custom parts and vintage cars. Logistics include pricing out parts and labor, finding skilled or apprentice laborers and mortgaging a garage and equipment. 

Phaeton advertises in regional publications, at local events and regional car shows and online through Facebook and Instagram, with an emphasis on a social presence highlighting their flashiest builds. Revenue forecasting is built around a growing reputation and high-value commissions.

Frequently asked questions (FAQs)

A business plan may not be a prerequisite for every type of business, but there are few businesses that wouldn’t benefit from one. It can serve as an important strategic tool and help crystalize a vision of your business and its future.

Business plans do just that: they help you plan the future of your business, serve as a platform to brainstorm ideas and think through your vision and are a great tool for showcasing why your business works to potential investors or partners.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy . The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Alan Bradley

Alan is an experienced culture and tech writer with a background in newspaper reporting. His work has appeared in Rolling Stone, Paste Magazine, The Escapist, PC Mag, PC Gamer, and a multitude of other outlets. He has over twenty years of experience as a journalist and editor and is the author of the urban fantasy novel The Sixth Borough.

Sierra Campbell is a small business editor for USA Today Blueprint. She specializes in writing, editing and fact-checking content centered around helping businesses. She has worked as a digital content and show producer for several local TV stations, an editor for U.S. News & World Report and a freelance writer and editor for many companies. Sierra prides herself in delivering accurate and up-to-date information to readers. Her expertise includes credit card processing companies, e-commerce platforms, payroll software, accounting software and virtual private networks (VPNs). She also owns Editing by Sierra, where she offers editing services to writers of all backgrounds, including self-published and traditionally published authors.

How to start a small business: A step-by-step guide

How to start a small business: A step-by-step guide

Business Eric Rosenberg

Growthink logo white

Sample Car Rental Business Plan

car rental business plan

Writing a business plan is a crucial step in starting a car rental. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring car rental business owners, having access to a sample car rental business plan can be especially helpful in providing direction and gaining insight into how to draft their own car rental business plan.

Download our Ultimate Car Rental Business Plan Template

Having a thorough business plan in place is critical for any successful car rental venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A car rental business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The car rental business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your car rental as Growthink’s Ultimate Car Rental Business Plan Template , but it can help you write a car rental business plan of your own.

Example – WheelsJourney Rentals

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

At WheelsJourney Rentals, based in Dallas, TX, we are committed to transforming the car rental landscape through our exceptional service offerings. Our focus is on providing a diverse and well-maintained fleet of vehicles, complemented by superior customer service. We emphasize the importance of a seamless rental process, facilitated by our advanced online booking system and flexible rental plans designed to meet a wide range of customer needs. Our dedication to safety, reliability, comfort, and customer satisfaction positions us as a leader in the local car rental industry.

Our success stems from our competitive rates, high-quality service, and the use of cutting-edge technology to enhance the rental experience. We have established ourselves as the preferred choice for car rentals in Dallas by prioritizing customer needs and offering customizable rental solutions. Our achievements to date highlight our ability to adapt to market demands and maintain a competitive edge through continuous improvement in our services and fleet quality.

The car rental industry is highly competitive and influenced by technological advancements, customer preferences, and economic factors. In Dallas, TX, the demand for car rentals is driven by tourism, business travel, and local residents’ needs. The industry’s success is closely tied to the overall health of the economy and the travel industry. Companies that leverage technology to improve the customer experience and offer flexible, cost-effective solutions are well-positioned to succeed. The current trend towards eco-friendly and technologically advanced vehicles presents an opportunity for growth and differentiation within the market.

Our primary target customers include tourists, business travelers, and local residents seeking reliable and convenient transportation solutions in Dallas. These customers value flexibility, quality, and efficiency in their rental experience. By understanding and catering to the specific needs of these diverse customer segments, we aim to build lasting relationships and encourage repeat business. Our focus on customer satisfaction and tailored services enables us to meet the expectations of our target market effectively.

Top competitors in the Dallas car rental market include established national chains and local providers. These competitors offer a range of vehicles and services, but WheelsJourney Rentals distinguishes itself through competitive rates, superior service quality, and a user-friendly online booking system. Our commitment to customer satisfaction and flexibility in rental plans further enhances our competitive advantage, making us a leader in the local market.

WheelsJourney Rentals employs a multifaceted marketing strategy that combines online and traditional advertising methods to reach a broad audience in Dallas, TX. Our online marketing efforts focus on social media engagement, SEO, and targeted email campaigns, while traditional advertising includes billboards and local radio ads. We also leverage partnerships with local businesses and tourism agencies for cross-promotion. Customer referral and loyalty programs are integral to our strategy, encouraging repeat business and attracting new customers through word-of-mouth. Participation in local events and exhibitions allows us to engage directly with potential customers, showcasing our services and fleet quality. This comprehensive approach ensures that WheelsJourney Rentals remains a preferred choice in the vehicle rental market.

Our operations are centered around providing a seamless rental experience, from vehicle selection to return. Key operational processes include fleet maintenance, customer service, and the efficient handling of bookings through our online platform. We have set milestones for expanding our fleet, incorporating eco-friendly vehicles, and upgrading our technology to enhance the customer experience. Achieving these milestones will be critical to our growth and the continuous improvement of our services.

Our management team comprises industry veterans with extensive experience in car rentals, customer service, and business management. Their expertise is instrumental in guiding WheelsJourney Rentals towards achieving its strategic goals and maintaining its competitive edge in the Dallas market. The team’s commitment to excellence and innovation ensures that we remain at the forefront of the car rental industry.

WheelsJourney Rentals is a new Car Rental serving customers in Dallas, TX. As a local car rental business, we saw a gap in the market for high-quality local car rentals in the area and decided to fill it. Our mission is to provide our customers with an unparalleled rental experience, offering a wide range of services tailored to meet their needs.

Our product and service offerings are comprehensive, designed to cater to a wide array of customer needs. We offer daily rental options for those in need of a short-term solution, as well as long-term or monthly rentals for customers requiring a more extended service. For those arriving or departing from the airport, our airport transfer service ensures a seamless travel experience. Additionally, we provide chauffeur services for clients looking for premium convenience and luxury. For our corporate clients, we offer corporate rentals, allowing businesses to meet their mobility needs efficiently and effectively.

Based in Dallas, TX, WheelsJourney Rentals is perfectly positioned to serve customers within the Dallas area. Our local insight and dedication to the community make us the go-to choice for all car rental needs in the region.

Our success is built on a solid foundation. The founder of WheelsJourney Rentals brings a wealth of experience from previously running a successful car rental business. This experience, combined with our commitment to offering better car rental services at competitive rates, sets us apart from the competition. We are uniquely qualified to succeed in the Dallas car rental market.

Since our founding on January 4th, 2024, we have achieved several key milestones as a S Corporation. We have developed a distinctive logo that resonates with our brand identity, carefully selected and trademarked our company name, and secured a prime location that will serve as the base for our operations. These accomplishments mark the beginning of our journey to becoming a leading car rental service in Dallas, TX.

The Car Rental industry in the United States is a thriving and lucrative market. According to recent market research, the industry generated approximately $38 billion in revenue in 2020. This impressive figure showcases the size and potential of the market, indicating promising opportunities for new players like WheelsJourney Rentals.

Furthermore, the Car Rental industry is expected to experience steady growth in the coming years. Market forecasts estimate a compound annual growth rate (CAGR) of 5.6% from 2021 to 2026. This growth can be attributed to various factors, including increasing disposable incomes, rising urbanization, and the growing popularity of domestic and international travel. As a result, WheelsJourney Rentals can anticipate a favorable market environment to establish its presence and attract a significant customer base.

Trends in the Car Rental industry also align favorably with the business model of WheelsJourney Rentals. One significant trend is the rising demand for flexible and convenient mobility solutions. Customers now prefer on-demand car rentals rather than owning a vehicle outright. Additionally, the increasing popularity of ride-sharing platforms and the need for reliable transportation options in urban areas contribute to the growth of the Car Rental industry. By providing hassle-free car rental services in Dallas, TX, WheelsJourney Rentals is well-positioned to tap into this growing trend and capture a substantial share of the market.

Below is a description of our target customers and their core needs.

Target Customers

WheelsJourney Rentals will target local residents who are in need of a temporary vehicle. This customer segment includes individuals whose cars are temporarily unavailable due to maintenance or repairs. The service will tailor its offers to meet the convenience and flexibility that local residents require, providing them with a seamless rental experience.

Additionally, WheelsJourney Rentals will also serve customers who are looking for an upgrade or a special vehicle for occasions such as weddings, anniversaries, or weekend getaways. This segment seeks luxury and premium vehicle options that are not typically available in their personal garages. The company will ensure a variety of vehicle options are available to meet these specific needs.

Moreover, WheelsJourney Rentals is poised to meet the demands of business travelers and professionals who visit Dallas for short-term assignments or corporate events. This segment values efficiency, reliability, and convenience. The company will streamline its booking and vehicle collection processes to cater to the fast-paced nature of business travelers’ schedules.

Customer Needs

Customers in search of reliable transportation solutions can find exceptional value and convenience at WheelsJourney Rentals. They expect a wide range of well-maintained, modern vehicles that cater to diverse needs, whether it’s a compact car for city driving or a spacious SUV for family vacations. Providing the best car rental services means ensuring each vehicle offers comfort, safety, and the latest technology features to enhance the driving experience.

Flexibility in rental terms is another crucial need WheelsJourney Rentals fulfills. Customers appreciate the ability to choose short-term or long-term rentals, adapting to their changing needs whether they’re in town for business, pleasure, or facing unexpected personal circumstances. This flexibility extends to customized pick-up and drop-off options, making the rental process seamless and accommodating to busy schedules.

Moreover, WheelsJourney Rentals understands the importance of transparent pricing and exceptional customer service. Customers seek clear, upfront information about costs, without hidden fees, ensuring they can make informed decisions that fit their budget. Exceptional customer service, including responsive support and quick resolution of any issues, reinforces trust and loyalty, making WheelsJourney Rentals a preferred choice for car rental services in the area.

WheelsJourney Rentals’s competitors include the following companies:

Alamo Rent A Car offers a range of services including economy cars, SUVs, and luxury vehicles for both leisure and business travelers. Their price points vary depending on vehicle type, rental duration, and location but are competitive within the industry. Alamo generates significant revenue from both domestic and international travelers, thanks to its presence in major airports across the United States and in several other countries. Alamo serves a wide customer segment including individual travelers, families, and business professionals. They operate in numerous geographies including the United States, Canada, Mexico, Europe, Australia, and South America. A key strength of Alamo is their self-service kiosks that expedite the rental process for customers. However, a potential weakness is their reliance on airport locations, which may limit their reach to local renters who prefer more accessible city or neighborhood locations.

Enterprise Rent-A-Car offers a broad spectrum of vehicles including cars, trucks, and vans to cater to a variety of customer needs. Their pricing is flexible, with options for daily, weekly, and long-term rentals, often including deals and discounts for certain customer segments. Enterprise boasts substantial revenues, underpinned by a strong brand and extensive network of locations. Enterprise targets a diverse customer base from individual renters to large corporations requiring fleet services. The company has a vast geographical presence, operating not just in the United States but also in Europe, Canada, Asia, and beyond. One of Enterprise’s key strengths is its customer service, often recognized as industry-leading. However, its size and scope can sometimes lead to inconsistencies in service quality across different locations.

Rose Car Rentals might not have the same level of brand recognition as Alamo or Enterprise but offers competitive products and services in select markets. Their vehicle offerings include standard cars, luxury models, and specialty vehicles. Rose Car Rentals’ pricing strategy aims to attract budget-conscious consumers with competitive rates and transparent fees. Rose Car Rentals primarily serves customers in urban and suburban areas, focusing on convenience and personalized service. They operate in a limited geographical area but are looking to expand their presence. A strength of Rose Car Rentals is their focus on customer satisfaction and local market expertise. However, their limited geographical reach and smaller fleet size compared to larger competitors could be seen as weaknesses.

Competitive Advantages

At WheelsJourney Rentals, we pride ourselves on delivering superior car rental services that set us apart from the competition. Our dedication to excellence ensures that customers receive not only competitive rates but also unparalleled quality in every aspect of our service. We understand that to stand out in the bustling Dallas market, it is crucial to offer more than just affordability. Therefore, we focus intently on maintaining a fleet of vehicles that are not only diverse to cater to the varied preferences and needs of our clients but are also meticulously maintained to ensure safety, reliability, and comfort. Our commitment to providing exceptional customer service further enhances our competitive edge, making us a preferred choice for both locals and visitors.

In addition to our competitive rates and superior service quality, we also leverage the latest technology to streamline the rental process, making it more efficient and user-friendly. Our online booking platform is designed with the customer in mind, offering a seamless experience from selection to payment. Furthermore, we understand the importance of flexibility in today’s fast-paced world, which is why we offer customizable rental plans that can be tailored to meet the specific needs of our clients. Whether it’s a short-term rental for a quick trip or a long-term arrangement for extended stays, we have the capability to accommodate various requirements with ease. This adaptability, combined with our unwavering commitment to customer satisfaction, solidifies our position as a leader in the Dallas car rental market.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

For customers seeking versatile transportation options in Dallas, WheelsJourney Rentals offers a suite of car rental services tailored to meet a variety of needs. From daily rentals for quick trips around town to long-term or monthly rentals for extended stays, each service is designed with customer convenience and satisfaction in mind. Moreover, WheelsJourney Rentals facilitates seamless airport transfers and provides chauffeur services for those desiring a more luxurious and relaxed travel experience. For businesses, the company’s corporate rentals offer a reliable solution for accommodating visiting professionals or facilitating company travel requirements.

The daily rental service allows customers to enjoy the flexibility of having a car for short durations without the commitment of a long-term contract. Prices for daily rentals start from an average of $45 per day, depending on the vehicle model chosen. This option is perfect for tourists or locals needing a temporary vehicle.

For clients requiring a vehicle for a longer period, the long-term or monthly rental service presents an economical and hassle-free alternative to leasing or purchasing. Prices for this service are competitive, with rates averaging $900 per month. This option is ideal for individuals on extended stays or businesses in need of a fleet for a project duration.

Ensuring a smooth and comfortable transition from the airport to the final destination, WheelsJourney Rentals offers airport transfer services. With prices starting at $60, clients can expect a seamless experience right from their arrival, without the common hassles associated with airport transportation.

Chauffeur services cater to those seeking a premium travel experience, whether for special occasions, business, or leisure. Clients can enjoy the luxury of being driven by a professional chauffeur in a high-end vehicle. This service is priced from $150, varying by the duration and specific requirements of the client.

Finally, corporate rentals provide businesses with a flexible and cost-effective solution for their transportation needs. Whether it’s accommodating employees on business trips or managing a temporary increase in operational demand, WheelsJourney Rentals offers tailored packages with special rates, starting from an average price of $800 per month for corporate clients.

WheelsJourney Rentals is committed to delivering exceptional service and value across all its offerings, ensuring that every customer finds the perfect vehicle solution for their needs in Dallas.

Promotions Plan

WheelsJourney Rentals employs a variety of promotional methods and tactics to attract customers in Dallas, TX. Online marketing stands at the forefront of these efforts, leveraging the power of social media platforms, search engine optimization (SEO), and targeted email campaigns. By engaging potential customers where they spend a significant portion of their time, WheelsJourney Rentals ensures its visibility and relevance in a competitive market.

In addition to online marketing, WheelsJourney Rentals also utilizes traditional advertising methods such as billboards and local radio ads. These mediums offer broad exposure, helping to build brand recognition and trust within the community. Furthermore, partnerships with local businesses and tourism agencies will play a crucial role in cross-promotion, reaching an audience that is already interested in travel and vehicle rental services.

Customer referral programs are another key tactic in WheelsJourney Rentals’ promotional strategy. By incentivizing current customers to refer friends and family, the company taps into the power of word-of-mouth marketing. This not only increases the customer base but also strengthens customer loyalty, as people tend to trust recommendations from people they know.

Loyalty programs will also be implemented to encourage repeat business. These programs reward customers for their continued patronage, offering discounts, special offers, and exclusive benefits. This approach not only fosters a loyal customer base but also differentiates WheelsJourney Rentals from its competitors.

Lastly, attending and sponsoring local events and exhibitions will raise the profile of WheelsJourney Rentals. Participation in such events demonstrates the company’s commitment to the community and allows for direct engagement with potential customers. It provides an excellent opportunity to showcase the range of services and the quality of vehicles offered, creating a lasting impression on event attendees.

By employing these promotional methods and tactics, WheelsJourney Rentals expects to attract a wide range of customers in Dallas, TX. The combination of online and traditional marketing, alongside customer engagement programs, ensures that WheelsJourney Rentals remains competitive and becomes a preferred choice for vehicle rental services.

Our Operations Plan details:

  • The key day-to-day processes that our business performs to serve our customers
  • The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of WheelsJourney Rentals, there are several key day-to-day operational processes that we will perform.

  • Vehicle Maintenance and Cleaning: We ensure all vehicles are thoroughly cleaned and sanitized before each rental. Regular maintenance checks are conducted to ensure safety and reliability.
  • Inventory Management: We track the availability of our fleet in real-time, allowing us to efficiently manage reservations and anticipate vehicle needs.
  • Customer Service: We provide exceptional customer service, handling inquiries, reservations, and any issues that arise, promptly and professionally.
  • Booking and Reservation Management: We utilize an online booking system that allows customers to easily rent vehicles. This system is regularly updated to reflect our current inventory.
  • Payment Processing: We securely process payments, offering multiple payment options to cater to all customers. We also manage financial records for each transaction.
  • Insurance and Liability Management: We ensure all vehicles are covered by comprehensive insurance policies and manage any claims that may arise.
  • Marketing and Promotions: We actively engage in marketing activities, including social media promotion, to attract new customers and retain existing ones.
  • Compliance and Regulations: We stay updated on and comply with all local and federal regulations that affect the car rental industry, ensuring our operation is legal and ethical.
  • Feedback Collection and Analysis: We collect customer feedback through various channels and analyze it to identify areas for improvement and to enhance customer satisfaction.
  • Employee Training: We conduct regular training for our staff to ensure they are knowledgeable about our fleet, customer service best practices, and safety protocols.

WheelsJourney Rentals expects to complete the following milestones in the coming months in order to ensure its success:

  • Secure a Strategic Location: Identify and secure a prime location in Dallas, TX, that is accessible and visible to potential customers, such as near airports, hotels, or major tourist attractions.
  • Fleet Acquisition: Purchase or lease a diverse and reliable fleet of vehicles that cater to a wide range of customer preferences, including economy, luxury, and specialty vehicles.
  • Obtain Necessary Licenses and Insurance: Ensure all regulatory requirements are met, including obtaining a business license, vehicle insurance, and liability coverage to protect the company and its customers.
  • Develop an Online Booking System: Launch a user-friendly website and mobile app that allows customers to easily browse the fleet, make reservations, and manage their bookings.
  • Launch Marketing Campaigns: Implement targeted marketing strategies to build brand awareness and attract customers. This includes digital marketing, partnerships with local businesses, and promotional offers.
  • Hire and Train Staff: Recruit a team of professionals for customer service, vehicle maintenance, and operations. Provide comprehensive training to ensure high-quality service and safety standards are met.
  • Launch Our Car Rental: Officially open for business and start serving customers. This involves making sure all the previous steps are completed successfully and the service is ready for public use.
  • Implement Customer Feedback Mechanisms: Establish channels for receiving and analyzing customer feedback to continually improve service quality and customer satisfaction.
  • Reach $15,000/Month in Revenue: Focus on growing the customer base and increasing rental volume to achieve a monthly revenue target of $15,000, indicating initial signs of profitability and market acceptance.
  • Expand Fleet and Services: Based on demand and customer feedback, gradually expand the fleet with additional vehicles and potentially introduce new services like car sharing or long-term rentals to diversify revenue streams. These milestones are designed to systematically address the key aspects of launching and growing a successful car rental business in Dallas, TX, while mitigating risks associated with new business ventures.

WheelsJourney Rentals management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

William Johnson, CEO

With a proven track record of entrepreneurial success, William Johnson brings a wealth of knowledge and expertise to WheelsJourney Rentals. Having successfully run a car rental business in the past, Johnson possesses a deep understanding of the industry’s intricacies. His leadership skills, coupled with his ability to navigate the competitive landscape of car rentals, make him exceptionally qualified to guide WheelsJourney Rentals towards achieving its goals. Johnson’s strategic vision and commitment to excellence are foundational to fostering a culture of innovation and customer satisfaction within the company.

To reach our growth goals, WheelsJourney Rentals requires significant investment in fleet expansion, technology upgrades, and marketing initiatives. The financial plan outlines our strategy for securing the necessary funding to support these initiatives and ensure our continued success in the competitive Dallas car rental market.

Financial Statements

Balance sheet.

[insert balance sheet]

Income Statement

[insert income statement]

Cash Flow Statement

[insert cash flow statement]

Car Rental Business Plan Example PDF

Download our Car Rental Business Plan PDF here. This is a free car rental business plan example to help you get started on your own car rental plan.  

How to Finish Your Car Rental Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your car rental business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Growthink logo white

What Is a Professional Development Plan, and How Do You Create Your Own?

If you're hoping to pursue a new career or advance in your current one, creating a professional development plan can be helpful. Use this guide to learn what a professional development plan is, its usefulness, and how to create one.

[Featured image] Woman at a workstation working on a professional development course

A professional development plan (PDP) is a document or visual aid that maps out your career goals. To help you attain your PDP goals , you'll specify what strategies you'll use, resources you might need, and target dates.

Why is it helpful to have a professional development plan?

Creating a PDP is the first step toward a commitment to following it. A professional development plan encourages you to think about what you want and helps you figure out how to get there. Having a PDP and regularly checking it helps keep you focused on your goals, which improves your chances of achieving them.

Empower teams with access to world-class content from 325+ top companies and universities

importance of the business plan format

Questions to ask before creating a professional development plan

Before you begin developing a PDP, take some time to self-reflect to make sure you're on the right track. Ask yourself questions like these:

Where am I professionally right now?

Where do I want to be?

What skills and experience do I possess?

What skills and experience do I want or need?

What resources can I use to achieve my goals?

What is a realistic timeline for achievement?

How much time am I willing to commit to my goals?

Where can I turn for advice and support?

Steps for creating your professional development plan

Going through a few steps when creating a PDP can help guide your thinking and ensure accuracy. Everyone is different, so while this plan includes three steps, yours may consist of more.

Step one: Think about the goals you want to achieve and list them on paper.

Make them SMART goals, which means they should follow these guidelines:

S pecific instead of broad

M eaningful so that your goals align with your core values

A chievable and realistic

R elevant to your particular career plan

T ime-bound, so you have a timeframe and deadline to complete your goals

Step two: Write down your strengths and weaknesses.

Honest self-assessment is critical when creating a PDP. Some examples of strengths and weaknesses might include the following:

Strengths : good leadership skills, knowledge of accounting, creativity

Weaknesses : self-critical, fear of public speaking, procrastination

Step three: Create your professional development plan.

Make it legible and large enough to read it. Post your plan on a bulletin board, refrigerator, or cupboard, and refer to it regularly.

importance of the business plan format

Learn from the best

Lower training cost with in-demand content and trusted credentials from 325+ top companies and universities.

Professional development plan sample

Consider using a chart or table format when designing your professional development plan. Here is a sample of a professional development plan for someone who has decided to start a business. The main goal of preparing to start a business is breaking the plan down into smaller, more achievable goals.

Overall goal and mission statement: I want to start my own business . I need to develop a good skill set and be mentally and emotionally prepared to accomplish my overall goal. 

Goal: Learn more about starting a business.

Methods: Read books, blogs, and magazine and newspaper articles.

Resources: Check online sellers for used books and explore free websites.

Target Date : Read two books and five articles within six months.

Goal: Build my professional network.

Methods: Attend entrepreneurial events and trade shows. Join LinkedIn and reach out on social media.

Resources: Check local event websites and bulletin boards at the college business department.

Target Date: Add 50 new contacts by the end of the year.

The importance of visual goal-setting

Posting your professional development plan where you can see it regularly might help ensure success in goal achievement. For extra fun, consider supplementing your PDP with a vision board, which is a poster board covered with images representing your vision for your career. According to a study conducted in 2016, vision boards can help people flesh out, define, and focus on personal and professional goals [ 1 ].

Additional tips for setting and achieving goals

For additional help with goal setting and achievement, take advantage of a few extra tips:

Make yourself more accountable for your goals by sharing them with one or two people you're close to.

Avoid becoming overwhelmed by focusing on one goal at a time.

When discouraged, remind yourself why you set these goals in the first place. 

When you achieve a goal, practice positive reinforcement by rewarding yourself. If you need reward ideas, consider treating yourself to a massage, a new hairstyle, or dinner on the town.

A few final points to remember

Once you've created a professional development plan, it's important to remember a few key points:

Your plan is flexible. Just because you've created a visual plan doesn't mean you can’t change it. If unexpected opportunities or challenges pop up, you can always adjust your timelines, return to the drawing board, and start again with a new PDP.

Your plan is for you. Even though others may occasionally influence your decisions, put yourself first when designing your PDP—not your partner, boss, coworkers, friends, or parents.

If you're looking for a valuable specialization to add to your professional development plan, consider enrolling in the Adapting: Career Development Specialization offered by Macquarie University on Coursera. This specialization includes a series of courses: Improve Yourself Always, Build Personal Resilience, Your Career Your Life, and Become a Global Citizen. With a two-month projected completion period, these courses enhance personal and professional skills, and you will earn a shareable certificate.

Let's talk about making talent your advantage

Connect with our team to learn how you can prepare your business for rapid change.

Keep reading

Employee Development: 8 Benefits for Your Business

What Is Career Growth and How Does It Benefit Your Organization?

What Is Career Development, and Why Is It Important to a Business?

Article sources

Burton, Lisa M. and Lent, Jonathan. " The Use of Vision Boards as a Therapeutic Intervention ” Accessed October 25, 2023.

This content has been made available for informational purposes only. Learners are advised to conduct additional research to ensure that courses and other credentials pursued meet their personal, professional, and financial goals.

  • Business Essentials
  • Leadership & Management
  • Credential of Leadership, Impact, and Management in Business (CLIMB)
  • Entrepreneurship & Innovation
  • *New* Digital Transformation
  • Finance & Accounting
  • Business in Society
  • For Organizations
  • Support Portal
  • Media Coverage
  • Founding Donors
  • Leadership Team

importance of the business plan format

  • Harvard Business School →
  • HBS Online →
  • Business Insights →

Business Insights

Harvard Business School Online's Business Insights Blog provides the career insights you need to achieve your goals and gain confidence in your business skills.

  • Career Development
  • Communication
  • Decision-Making
  • Earning Your MBA
  • Negotiation
  • News & Events
  • Productivity
  • Staff Spotlight
  • Student Profiles
  • Work-Life Balance
  • Alternative Investments
  • Business Analytics
  • Business Strategy
  • Business and Climate Change
  • Design Thinking and Innovation
  • Digital Marketing Strategy
  • Disruptive Strategy
  • Economics for Managers
  • Entrepreneurship Essentials
  • Financial Accounting
  • Global Business
  • Launching Tech Ventures
  • Leadership Principles
  • Leadership, Ethics, and Corporate Accountability
  • Leading with Finance
  • Management Essentials
  • Negotiation Mastery
  • Organizational Leadership
  • Power and Influence for Positive Impact
  • Strategy Execution
  • Sustainable Business Strategy
  • Sustainable Investing
  • Winning with Digital Platforms

How to Create a Digital Marketing Plan: 4 Steps

A business professional seated at a table with a laptop on it with the words "Marketing Strategy" and several icons.

  • 08 Feb 2024

Digital marketing is essential; it helps you connect with customers via online channels and enhance brand awareness. To ensure your campaigns succeed, you need an effective digital marketing plan and strategy.

Not all businesses understand strategic planning's importance. According to a Smart Insights report , only 17 percent clearly define their digital marketing strategies.

If you want to create a digital marketing plan, here’s an overview of what it needs and four steps to take.

Access your free e-book today.

What Is a Digital Marketing Plan & Why Is It Important?

Technology has revolutionized business, but that doesn’t mean traditional marketing tactics are obsolete.

“There are certain aspects of marketing that remain true no matter how technology changes,” says Harvard Business School Professor Sunil Gupta, who teaches the course Digital Marketing Strategy . “One of these aspects is the importance of developing a plan to effectively use your marketing resources.”

A digital marketing plan is a comprehensive strategy outlining how your company will use digital channels to promote its products and services. Unlike traditional marketing tactics, it focuses on identifying your target audience and connecting with consumers via online platforms and channels.

Your plan’s significance can’t be overstated. It provides a strategic focus while optimizing your marketing efforts and budget. More importantly, it ensures your company remains agile and responsive to market dynamics and maintains a competitive edge.

Adaptability is particularly crucial in times of uncertainty. According to HubSpot , 20 percent of marketers pivoted their established marketing plans last year due to the potential for a recession.

To help craft your digital marketing plan, here are four steps to ensuring it’s comprehensive and can weather market challenges.

4 Steps to Creating a Digital Marketing Plan

1. set goals & objectives.

The first step to creating your digital marketing plan is understanding what goals and objectives are essential to succeed.

“Companies often have multiple objectives, and you’ll need to prioritize and balance these goals,” Gupta says in Digital Marketing Strategy . “Often these goals are tied to the overall strategy of the company.”

For example, if you don’t work at a big-name company, you may want to focus on brand awareness. If you’re a market leader, you may want to expand your target audience by highlighting a new or revised product or service.

The best way to determine your company’s objectives is by identifying its challenges and opportunities throughout the customer journey , which has three stages:

  • Awareness: Introducing customers to your brand or product to address a problem they have
  • Consideration: Making customers aware of your brand or product while they evaluate alternatives
  • Decision: Using information gathered during the previous stages to influence consumers’ purchasing decisions

“Which stage of the funnel you focus on and how you allocate your budget across different stages depends on the specific context of your brand and where you feel is the greatest barrier for your growth,” Gupta says in Digital Marketing Strategy .

Your company's strategic decisions hinge on which customer journey stage they pertain to. For example, to increase conversion rates at the consideration stage, you could allocate more resources to producing targeted, personalized content.

2. Identify Your Target Audience

Your digital marketing strategy is only effective if you know who you’re trying to attract. That’s why identifying your target audience —the consumers most likely interested in your products or services—is the next step to crafting your digital marketing plan.

To determine your target audience, collect data related to:

  • Demographics: General information like age, gender, and occupation that help you make implicit assumptions about customers
  • Customer behavior: Behavior patterns related to your products or services, such as purchasing history and website interactions
  • Consumer motivations: Primary motivations when making purchases, such as convenience, value, or status

You can use your insights to employ tactics like segmentation —organizing your customers into groups.

“While you can try and market a product to everyone, consumers have different needs and preferences,” Gupta says in Digital Marketing Strategy . “What appeals to one group of consumers may not appeal to another.”

By segmenting your customers, you can provide personalized experiences—even when their needs or market conditions shift.

Related: 3 Most Common Types of Customer Needs to Be Aware Of

3. Define Your Value Proposition

Once you know who to target, you can communicate your value proposition .

“If you want to convince consumers to buy your product, you need to give them a compelling reason to purchase your brand instead of a competing brand,” Gupta says in Digital Marketing Strategy .

To start, you need to know your:

  • Target audience
  • Unique value
  • Competitive set
  • Justifications for brand value

You can then combine these components into a value positioning statement:

For [target market] , [Brand X] is the only brand that offers [unique value claim] among all [competitive set] because [reason to believe] .

Digital Marketing Strategy | Develop digital marketing strategies that reach and retain customers | Learn More

According to Digital Marketing Strategy , you can analyze your value claim’s validity and potency using the three C’s of brand positioning:

  • Consumer analysis: Understanding your target audience’s behaviors, needs, preferences, and motivations.
  • Competitor analysis: Evaluating your competitors' strengths, weaknesses, and market position to enhance your strategy.
  • Company analysis: Assessing your value proposition, capabilities, resources, and performance to identify areas for strategic improvement.

Effective brand positioning requires being faithful to your value claim and ensuring it’s feasible and favorable.

“As you work to create a value proposition, remember: A brand’s position is not just defined by the brand itself,” Gupta says in the course. “A brand co-creates its position with its consumers as they interact with each other and react to emerging cultural trends.”

4. Establish Metrics

Metrics are critical to your marketing plan. Without key performance indicators (KPIs) , it can be difficult to tell whether it’s effective.

Common marketing KPIs include:

  • Impressions
  • Click through rate
  • Conversion rate

“At the simplest level, you need to measure what you set out to achieve with your marketing objectives,” Gupta says in Digital Marketing Strategy . “And certain metrics will be more relevant for specific stages of the funnel.”

For example, you can focus on metrics like impressions —the number of times your brand-specific content was displayed—to determine your strategy’s effectiveness at the awareness stage.

With a well-crafted digital marketing plan, you can use metrics to optimize your strategy as priorities shift throughout the customer journey.

Your Guide to Online Learning Success | Download Your Free E-Book

Create Your Own Digital Marketing Plan

If you want to be a more strategic marketer, you need a digital marketing plan. With one, you can solidify your company’s position, enhance your digital marketing skills , and satisfy customers.

“Determining your marketing goals, who you’re reaching, understanding the uniqueness of what you have to offer them, and how you’ll measure the value of your marketing efforts isn’t always easy,” Gupta says in Digital Marketing Strategy . “However, as you clarify these components and create your plan, you’ll have a much clearer path ahead toward identifying, acquiring, and retaining customers.”

One of the most effective ways to learn how to craft a plan is by enrolling in an online marketing course, such as Digital Marketing Strategy . Through real-world case studies and interactive exercises, you can understand how to position your brand for success.

Do you want to create a digital marketing plan? Explore Digital Marketing Strategy to discover how. If you’re interested in exploring online education but aren’t sure where to start, download our free guide to online learning success .

importance of the business plan format

About the Author

importance of the business plan format

Create a form in Word that users can complete or print

In Word, you can create a form that others can fill out and save or print.  To do this, you will start with baseline content in a document, potentially via a form template.  Then you can add content controls for elements such as check boxes, text boxes, date pickers, and drop-down lists. Optionally, these content controls can be linked to database information.  Following are the recommended action steps in sequence.  

Show the Developer tab

In Word, be sure you have the Developer tab displayed in the ribbon.  (See how here:  Show the developer tab .)

Open a template or a blank document on which to base the form

You can start with a template or just start from scratch with a blank document.

Start with a form template

Go to File > New .

In the  Search for online templates  field, type  Forms or the kind of form you want. Then press Enter .

In the displayed results, right-click any item, then select  Create. 

Start with a blank document 

Select Blank document .

Add content to the form

Go to the  Developer  tab Controls section where you can choose controls to add to your document or form. Hover over any icon therein to see what control type it represents. The various control types are described below. You can set properties on a control once it has been inserted.

To delete a content control, right-click it, then select Remove content control  in the pop-up menu. 

Note:  You can print a form that was created via content controls. However, the boxes around the content controls will not print.

Insert a text control

The rich text content control enables users to format text (e.g., bold, italic) and type multiple paragraphs. To limit these capabilities, use the plain text content control . 

Click or tap where you want to insert the control.

Rich text control button

To learn about setting specific properties on these controls, see Set or change properties for content controls .

Insert a picture control

A picture control is most often used for templates, but you can also add a picture control to a form.

Picture control button

Insert a building block control

Use a building block control  when you want users to choose a specific block of text. These are helpful when you need to add different boilerplate text depending on the document's specific purpose. You can create rich text content controls for each version of the boilerplate text, and then use a building block control as the container for the rich text content controls.

building block gallery control

Select Developer and content controls for the building block.

Developer tab showing content controls

Insert a combo box or a drop-down list

In a combo box, users can select from a list of choices that you provide or they can type in their own information. In a drop-down list, users can only select from the list of choices.

combo box button

Select the content control, and then select Properties .

To create a list of choices, select Add under Drop-Down List Properties .

Type a choice in Display Name , such as Yes , No , or Maybe .

Repeat this step until all of the choices are in the drop-down list.

Fill in any other properties that you want.

Note:  If you select the Contents cannot be edited check box, users won’t be able to click a choice.

Insert a date picker

Click or tap where you want to insert the date picker control.

Date picker button

Insert a check box

Click or tap where you want to insert the check box control.

Check box button

Use the legacy form controls

Legacy form controls are for compatibility with older versions of Word and consist of legacy form and Active X controls.

Click or tap where you want to insert a legacy control.

Legacy control button

Select the Legacy Form control or Active X Control that you want to include.

Set or change properties for content controls

Each content control has properties that you can set or change. For example, the Date Picker control offers options for the format you want to use to display the date.

Select the content control that you want to change.

Go to Developer > Properties .

Controls Properties  button

Change the properties that you want.

Add protection to a form

If you want to limit how much others can edit or format a form, use the Restrict Editing command:

Open the form that you want to lock or protect.

Select Developer > Restrict Editing .

Restrict editing button

After selecting restrictions, select Yes, Start Enforcing Protection .

Restrict editing panel

Advanced Tip:

If you want to protect only parts of the document, separate the document into sections and only protect the sections you want.

To do this, choose Select Sections in the Restrict Editing panel. For more info on sections, see Insert a section break .

Sections selector on Resrict sections panel

If the developer tab isn't displayed in the ribbon, see Show the Developer tab .

Open a template or use a blank document

To create a form in Word that others can fill out, start with a template or document and add content controls. Content controls include things like check boxes, text boxes, and drop-down lists. If you’re familiar with databases, these content controls can even be linked to data.

Go to File > New from Template .

New from template option

In Search, type form .

Double-click the template you want to use.

Select File > Save As , and pick a location to save the form.

In Save As , type a file name and then select Save .

Start with a blank document

Go to File > New Document .

New document option

Go to File > Save As .

Go to Developer , and then choose the controls that you want to add to the document or form. To remove a content control, select the control and press Delete. You can set Options on controls once inserted. From Options, you can add entry and exit macros to run when users interact with the controls, as well as list items for combo boxes, .

Adding content controls to your form

In the document, click or tap where you want to add a content control.

On Developer , select Text Box , Check Box , or Combo Box .

Developer tab with content controls

To set specific properties for the control, select Options , and set .

Repeat steps 1 through 3 for each control that you want to add.

Set options

Options let you set common settings, as well as control specific settings. Select a control and then select Options to set up or make changes.

Set common properties.

Select Macro to Run on lets you choose a recorded or custom macro to run on Entry or Exit from the field.

Bookmark Set a unique name or bookmark for each control.

Calculate on exit This forces Word to run or refresh any calculations, such as total price when the user exits the field.

Add Help Text Give hints or instructions for each field.

OK Saves settings and exits the panel.

Cancel Forgets changes and exits the panel.

Set specific properties for a Text box

Type Select form Regular text, Number, Date, Current Date, Current Time, or Calculation.

Default text sets optional instructional text that's displayed in the text box before the user types in the field. Set Text box enabled to allow the user to enter text into the field.

Maximum length sets the length of text that a user can enter. The default is Unlimited .

Text format can set whether text automatically formats to Uppercase , Lowercase , First capital, or Title case .

Text box enabled Lets the user enter text into a field. If there is default text, user text replaces it.

Set specific properties for a Check box .

Default Value Choose between Not checked or checked as default.

Checkbox size Set a size Exactly or Auto to change size as needed.

Check box enabled Lets the user check or clear the text box.

Set specific properties for a Combo box

Drop-down item Type in strings for the list box items. Press + or Enter to add an item to the list.

Items in drop-down list Shows your current list. Select an item and use the up or down arrows to change the order, Press - to remove a selected item.

Drop-down enabled Lets the user open the combo box and make selections.

Protect the form

Go to Developer > Protect Form .

Protect form button on the Developer tab

Note:  To unprotect the form and continue editing, select Protect Form again.

Save and close the form.

Test the form (optional)

If you want, you can test the form before you distribute it.

Protect the form.

Reopen the form, fill it out as the user would, and then save a copy.

Creating fillable forms isn’t available in Word for the web.

You can create the form with the desktop version of Word with the instructions in Create a fillable form .

When you save the document and reopen it in Word for the web, you’ll see the changes you made.

Facebook

Need more help?

Want more options.

Explore subscription benefits, browse training courses, learn how to secure your device, and more.

importance of the business plan format

Microsoft 365 subscription benefits

importance of the business plan format

Microsoft 365 training

importance of the business plan format

Microsoft security

importance of the business plan format

Accessibility center

Communities help you ask and answer questions, give feedback, and hear from experts with rich knowledge.

importance of the business plan format

Ask the Microsoft Community

importance of the business plan format

Microsoft Tech Community

importance of the business plan format

Windows Insiders

Microsoft 365 Insiders

Was this information helpful?

Thank you for your feedback.

IMAGES

  1. What is Business Plan? definition, formats, elements and importance

    importance of the business plan format

  2. Ch. 5 Business Plan

    importance of the business plan format

  3. Free Printable Business Plan Sample Form (GENERIC)

    importance of the business plan format

  4. Free Printable Business Plan Sample Form (GENERIC)

    importance of the business plan format

  5. 14 Importance of a Business Plan

    importance of the business plan format

  6. Step-By-Step Guide to Write Your Business Plan + Template

    importance of the business plan format

VIDEO

  1. business plan

  2. 1.2 Why create a business plan?

  3. How to Write a Business plan? 10 Important Steps of Business Plan

  4. 13 Capital Structure

  5. Digital Marketing Importance

  6. Business Plan Examples

COMMENTS

  1. Write your business plan

    Content Business plans help you run your business A good business plan guides you through each stage of starting and managing your business. You'll use your business plan as a roadmap for how to structure, run, and grow your new business. It's a way to think through the key elements of your business.

  2. 11 Important Business Plan Benefits & Purposes

    The importance, purpose and benefit of a business plan is in that it enables you to validate a business idea, secure funding, set strategic goals - and then take organized action on those goals by making decisions, managing resources, risk and change, while effectively communicating with stakeholders.

  3. 5 reasons you need a business plan

    1. It will help you steer your business as you start and grow. Think of a business plan as a GPS to get your business going. A good business plan guides you through each stage of starting and managing your business. You'll use your business plan like a GPS for how to structure, run, and grow your new business.

  4. 14 Critical Reasons Why You Need a Business Plan

    1. Business planning is proven to help you grow 30 percent faster Writing a business plan isn't about producing a document that accurately predicts the future of your company. The process of writing your plan is what's important.

  5. The importance of a business plan

    The primary importance of a business plan is that they help you make better decisions. Entrepreneurship is often an endless exercise in decision making and crisis management. Sitting down and considering all the ramifications of any given decision is a luxury that small businesses can't always afford. That's where a business plan comes in.

  6. What is a Business Plan? Definition, Tips, and Templates

    The purpose of a business plan is three-fold: It summarizes the organization's strategy in order to execute it long term, secures financing from investors, and helps forecast future business demands. Business Plan Template [ Download Now] Working on your business plan? Try using our Business Plan Template.

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

    Describe Your Services or Products. The business plan should have a section that explains the services or products that you're offering. This is the part where you can also describe how they fit ...

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

    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 both startups and...

  9. Business plans

    Keeping Your Business Plan Flexible. Strategy & Execution Best Practice. Amy Gallo. People make business plans for all sorts of reasons - to attract funding, evaluate future growth, build ...

  10. How to Write a Business Plan, Step by Step

    7. Perform a business financial analysis. 8. Make financial projections. 9. Add additional information to an appendix. Business plan tips and resources. MORE LIKE THIS Small-Business Loans Small ...

  11. The Importance of Business Plan: 5 Key Reasons

    The Importance of Business Plan: 5 Key Reasons Hub Productivity August 5, 2021 A key part of any business is its business plan. They can help define the goals of your business and help it reach success. A good business plan can also help you develop an adequate marketing strategy.

  12. How to Format Your Business Plan in 8 Simple Steps

    Either way, getting the formatting right for your business plan is important. Here are my top eight tips to make sure your business plan accomplishes what it needs to do. 1. Always start with an executive summary. The executive summary introduces your business to your reader. If you don't nail the executive summary, no one is going to read ...

  13. 20 Reasons Why You Need a Business Plan in 2024

    The 3 most important purposes of a business plan are 1) to create an effective strategy for growth, 2) to determine your future financial needs, and 3) to attract investors (including angel investors and VC funding) and lenders.

  14. Business Plan Format & Structure

    Business plan structure and format helps readers look beyond distracting style to the real meat of your idea. Download our Ultimate Business Plan Template here > How to Format Your Business Plan: The Cover Sheet Every business plan should begin with a simple business plan cover page including the business name, your name and contact information.

  15. 11.4 The Business Plan

    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 ...

  16. The Undeniable Importance of a Business Plan

    Expert opinions support the four following conclusions: Individuals who write business plans are 2.5x as likely to start businesses. Business planning improves corporate executive satisfaction with corporate strategy development. Angels and venture capitalists value business plans and their financial models.

  17. Business Plan

    2. Focusing device. Formulating a concrete plan of action enables an organized manner of conducting business and reduces the possibility of losses due to uncalculated risks. Business plans act as reference tools for management and employees as they solidify the flow of communication, authority, and task allocation. 3.

  18. The ultimate guide to business planning (with template)

    A business plan clearly lays out a company's objectives, as well as the landscape of the market. As a result, business leaders know which challenges to expect. With that knowledge in hand, they can take proactive steps to mitigate their risks. 5. To accelerate growth. Quite simply, business planning works.

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

    Updated November 11, 2022 A business plan is essential as an entrepreneur. It helps you set clear goals and guidelines for how you will manage your business. A business plan may also be needed to set employee goals, obtain funding or even to sell your business one day.

  20. Business Plan

    The following are the elements of any business plan sample: Executive summary - Also known as the elevator pitch, the business plan executive summary is the most important element of any business plan, best fitted in a page or two. A business should draw its plan from the mission and vision, which are the founding principles of any business.

  21. Business Plan

    A business plan should be structured in a way that it contains all the important information that investors are looking for. Here are the main sections of a business plan: 1. Title Page. The title page captures the legal information of the business, which includes the registered business name, physical address, phone number, email address, date ...

  22. 9 Business Plan with Examples and Format (2023)

    Conclusion Business Plan: An Overview A business plan is a detailed document that outlines the objectives, strategies, and tactics of a business. It is typically used to secure investments, financing, and other forms of support from stakeholders.

  23. What is Business Plan? definition, formats, elements and importance

    Business plan involves the business profile, i.e., whether the business is a start-up, growing business, or a matured business, as well as company's goals and objectives are also included in a company's business plan. Importance of Business Plan. The following are the points showing the importance of a business plan for the entrepreneurial ...

  24. Free Business Plan Template (With Examples)

    If you're looking for a free business plan template, read our guide to see some of the examples we found. ... It can serve as an important strategic tool and help crystalize a vision of your ...

  25. Sample Car Rental Business Plan

    Download our Ultimate Car Rental Business Plan Template. Having a thorough business plan in place is critical for any successful car rental venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions.

  26. What Is a Professional Development Plan, and How Do You ...

    Professional development plan sample. Consider using a chart or table format when designing your professional development plan. Here is a sample of a professional development plan for someone who has decided to start a business. The main goal of preparing to start a business is breaking the plan down into smaller, more achievable goals.

  27. How to Create a Digital Marketing Plan: 4 Steps

    Create Your Own Digital Marketing Plan. If you want to be a more strategic marketer, you need a digital marketing plan. With one, you can solidify your company's position, enhance your digital marketing skills, and satisfy customers. "Determining your marketing goals, who you're reaching, understanding the uniqueness of what you have to offer them, and how you'll measure the value of ...

  28. Create a form in Word that users can complete or print

    Open a template or use a blank document. To create a form in Word that others can fill out, start with a template or document and add content controls. Content controls include things like check boxes, text boxes, and drop-down lists. If you're familiar with databases, these content controls can even be linked to data.