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How to Write a Startup Business Plan (10 Effective Steps)

Learn how to create an effective business plan in 10 easy steps and discover the transformative power of mentorship to elevate your startup's strategy.

Robin Waite

5 minute read

Short answer

What should an effective business plan include?

An effective business plan should include the following elements:

• Executive summary
• Company description
• Market analysis
• Your products or services
• Marketing and sales strategies
• Organization and management
• Financial projections
• Funding requirements
• Risk assessment
• Conclusion and Call to Action

You need a strategic business plan to successfully navigate the startup world

Diving into the startup world without a clear plan is like setting sail without a compass ; you might drift aimlessly or even crash.

A solid business plan isn't just a piece of paper—it's your roadmap to success. It attracts the right investors, guides your decisions, and sets you on a clear path to victory.

In this article, I’ll walk you through 10 essential steps to craft that perfect plan. Plus, I’ll touch on the invaluable insights a business mentor can offer.

So, if you want to avoid common pitfalls and boost your chances of success, keep reading. Your startup's future might just depend on it.

Step 1: Executive summary

Think of the executive summary as the elevator pitch for your startup. It's a quick snapshot that captures the heart of your business idea, mission, and goals.

In this brief section, make sure to highlight who your target audience is, what sets you apart in the market, and your unique selling points.

And don't forget to give a glimpse of your financial outlook and any funding needs—it sets the stage for the details that follow.

Here's an example of an executive summary slide:

Step 2: Company description

Here's where you tell your startup's story. It's not just a list of facts or a timeline. It's about painting a picture that connects with your readers.

Clearly outline your vision, mission, and the values that drive you. Share key milestones you've hit and where you currently stand in your business journey. This section gives depth to your startup, showing both where you've been and where you're headed.

Here's an example of a company introduction slide:

Step 3: Market analysis

To thrive, you've got to know the lay of the land. That's where market analysis comes in. Start by zeroing in on your target audience and truly understanding what they're looking for.

Dive deep into industry trends, the overall market size, and where it's headed. And don't just know your competitors—understand what makes you stand out from the crowd.

Here's what a market analysis slide should look like:

Step 4: Products or services

Here's your chance to shine a spotlight on what you're offering. What problems are your products or services solving? What makes them special? Whether it's a unique feature, a patent, or some groundbreaking tech, make it clear why your offerings are game-changers.

Here's an example of a solution slide:

Step 5: Marketing and sales strategies

In today's crowded market, standing out is crucial. This step is all about your game plan to grab attention and win customers. Detail how you'll sell, where you'll promote, and how you'll get your products or services into the hands of those who need them.

Here's what a go-to-market slide should look like:

Step 6: Organization and management

Behind every great startup is a team of passionate people. Here, introduce your squad. Highlight their expertise, define their roles, and show the structure that keeps everything running smoothly.

If you've got advisors or partners in your corner, mention them—it shows you're serious about growing in every direction.

Here’s a full guide on how to create the perfect team slide for your startup . And here's a great example of one:

Step 7: Financial projections

Numbers don't lie, and in this step, they sketch out your startup's potential future. Dive into the financials, projecting where you see your revenue, expenses, and profits heading over the next few years.

By breaking down your initial costs and where you expect to get your funding, you give a clear view of how you're setting up for success.

Here's an example of a financials slide:

Step 8: Funding requirements

Every startup needs fuel to get off the ground, and that fuel is capital. Here, be clear about how much you need to launch and keep things running.

Break down where every dollar will go, whether that's marketing, product development, or daily operations.

If you've already got some backers or have your eye on potential investors, mention them—it adds weight to your pitch.

Here's what a use of funds slide should look like:

Step 9: Risk assessment

Every venture has its bumps in the road. Here, show that you're not just aware of potential challenges but that you've got a plan to tackle them. In assessing risks, it's crucial to choose the right business structure at the beginning. For examples, the formation of an LLC as a strategic measure not only protects your personal assets from business liabilities but also mitigates financial risks for stakeholders. By laying out your strategies for handling risks, you prove you're not just optimistic—you're realistic and ready.

Here's an example of a risk assessment slide:

Step 10: Conclusion and Call to Action

Time to wrap it up and rally your readers. Summarize the key points of your plan, driving home why your startup is a solid bet.

But remember, this isn't just a conclusion—it's a launchpad. Encourage readers to get involved, whether that's investing, partnering, or simply supporting your vision. Let's get this journey started!

And, if you need more information, check out our comprehensive guide on how to write a business plan .

Here's an example of a next step slide:

Seek guidance from a business mentor

While a solid business plan is your startup's compass, adding guidance from a business mentor to your journey is like having a seasoned captain on board.

They bring a treasure trove of insights, lessons from past experiences, and a network of industry contacts. Their tailored advice doesn't just polish your plan—it also boosts your confidence and resilience, two must-haves for the unpredictable startup seas.

By embracing mentorship, you're signaling that you're all in on growth, ready to soak up wisdom and accelerate your path to success.

Why is a business plan crucial for startups?

Think of a business plan as your startup's GPS. It helps you navigate the twists and turns, pointing out both the challenges and the golden opportunities ahead. It's your master blueprint, detailing everything from your big-picture goals to your financial forecasts .

What role does a business mentor play in this process?

A business mentor serves as a seasoned guide in the startup journey. Drawing from their wealth of experience, they offer invaluable insights, helping startups navigate challenges and optimize their strategies. Their guidance is instrumental in making informed, strategic decisions.

How can a mentor enhance my market analysis?

Mentors have their finger on the pulse of the industry. They can help you get a clearer picture of market trends, spot who you're really up against, and gauge where the opportunities lie. With their insights, your market analysis won't just be good—it'll be top-notch.

Can a mentor assist in financial projections?

Absolutely. If your mentor has a financial background, they can be a goldmine. They'll help you craft projections that are both ambitious and grounded in reality. From revenue estimates to potential expenses, they'll ensure your numbers make sense.

How can you incorporate mentorship into the business plan?

Consider adding a dedicated section in your business plan to highlight the mentorship aspect. By detailing the insights and guidance you've received, or intend to seek, you underscore your commitment to informed growth. This proactive approach can resonate well with potential investors and stakeholders.

Business plan templates

Starting your business plan can feel like staring at a blank canvas—it's full of potential, but where do you begin? That's where interactive business plan templates come into play.

These templates serve as a structured guide, ensuring you don't miss any crucial details while allowing for flexibility and customization. They're designed to streamline the process, making it easier to organize your thoughts and present your vision in a coherent manner.

Ready to dive in? Grab a template from the library below and give your business plan a head start.

Robin Waite is a business coach based in the UK, bestselling author, and also regular business speaker. Robin's Fearless Business Accelerator covers pricing, productising services, and sales for coaches, consultants, and freelancers. Robin's passion is content marketing and blogging and he enjoys finding creative ways to make complex business topics simple for his readers.

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How to Write a Business Plan in 9 Steps (+ Template and Examples)

Every successful business has one thing in common, a good and well-executed business plan. A business plan is more than a document, it is a complete guide that outlines the goals your business wants to achieve, including its financial goals . It helps you analyze results, make strategic decisions, show your business operations and growth.

If you want to start a business or already have one and need to pitch it to investors for funding, writing a good business plan improves your chances of attracting financiers. As a startup, if you want to secure loans from financial institutions, part of the requirements involve submitting your business plan.

Writing a business plan does not have to be a complicated or time-consuming process. In this article, you will learn the step-by-step process for writing a successful business plan.

You will also learn what you need a business plan for, tips and strategies for writing a convincing business plan, business plan examples and templates that will save you tons of time, and the alternatives to the traditional business plan.

Let’s get started.

What Do You Need A Business Plan For?

Businesses create business plans for different purposes such as to secure funds, monitor business growth, measure your marketing strategies, and measure your business success.

1. Secure Funds

One of the primary reasons for writing a business plan is to secure funds, either from financial institutions/agencies or investors.

For you to effectively acquire funds, your business plan must contain the key elements of your business plan . For example, your business plan should include your growth plans, goals you want to achieve, and milestones you have recorded.

A business plan can also attract new business partners that are willing to contribute financially and intellectually. If you are writing a business plan to a bank, your project must show your traction , that is, the proof that you can pay back any loan borrowed.

Also, if you are writing to an investor, your plan must contain evidence that you can effectively utilize the funds you want them to invest in your business. Here, you are using your business plan to persuade a group or an individual that your business is a source of a good investment.

2. Monitor Business Growth

A business plan can help you track cash flows in your business. It steers your business to greater heights. A business plan capable of tracking business growth should contain:

• The business goals
• Methods to achieve the goals
• Time-frame for attaining those goals

A good business plan should guide you through every step in achieving your goals. It can also track the allocation of assets to every aspect of the business. You can tell when you are spending more than you should on a project.

You can compare a business plan to a written GPS. It helps you manage your business and hints at the right time to expand your business.

3. Measure Business Success

A business plan can help you measure your business success rate. Some small-scale businesses are thriving better than more prominent companies because of their track record of success.

Right from the onset of your business operation, set goals and work towards them. Write a plan to guide you through your procedures. Use your plan to measure how much you have achieved and how much is left to attain.

You can also weigh your success by monitoring the position of your brand relative to competitors. On the other hand, a business plan can also show you why you have not achieved a goal. It can tell if you have elapsed the time frame you set to attain a goal.

4. Document Your Marketing Strategies

You can use a business plan to document your marketing plans. Every business should have an effective marketing plan.

Competition mandates every business owner to go the extraordinary mile to remain relevant in the market. Your business plan should contain your marketing strategies that work. You can measure the success rate of your marketing plans.

In your business plan, your marketing strategy must answer the questions:

• How do you want to reach your target audience?
• How do you plan to retain your customers?
• What is/are your pricing plans?
• What is your budget for marketing?

How to Write a Business Plan Step-by-Step

1. create your executive summary.

The executive summary is a snapshot of your business or a high-level overview of your business purposes and plans . Although the executive summary is the first section in your business plan, most people write it last. The length of the executive summary is not more than two pages.

Generally, there are nine sections in a business plan, the executive summary should condense essential ideas from the other eight sections.

A good executive summary should do the following:

• A Snapshot of Growth Potential. Briefly inform the reader about your company and why it will be successful)
• Contain your Mission Statement which explains what the main objective or focus of your business is.
• Product Description and Differentiation. Brief description of your products or services and why it is different from other solutions in the market.
• The Team. Basic information about your company’s leadership team and employees
• Business Concept. A solid description of what your business does.
• Target Market. The customers you plan to sell to.
• Marketing Strategy. Your plans on reaching and selling to your customers
• Current Financial State. Brief information about what revenue your business currently generates.
• Projected Financial State. Brief information about what you foresee your business revenue to be in the future.

The executive summary is the make-or-break section of your business plan. If your summary cannot in less than two pages cannot clearly describe how your business will solve a particular problem of your target audience and make a profit, your business plan is set on a faulty foundation.

Avoid using the executive summary to hype your business, instead, focus on helping the reader understand the what and how of your plan.

View the executive summary as an opportunity to introduce your vision for your company. You know your executive summary is powerful when it can answer these key questions:

• Who is your target audience?
• What sector or industry are you in?
• What are your products and services?
• What is the future of your industry?
• Is your company scaleable?
• Who are the owners and leaders of your company? What are their backgrounds and experience levels?
• What is the motivation for starting your company?
• What are the next steps?

Writing the executive summary last although it is the most important section of your business plan is an excellent idea. The reason why is because it is a high-level overview of your business plan. It is the section that determines whether potential investors and lenders will read further or not.

The executive summary can be a stand-alone document that covers everything in your business plan. It is not uncommon for investors to request only the executive summary when evaluating your business. If the information in the executive summary impresses them, they will ask for the complete business plan.

If you are writing your business plan for your planning purposes, you do not need to write the executive summary.

2. Add Your Company Overview

The company overview or description is the next section in your business plan after the executive summary. It describes what your business does.

Adding your company overview can be tricky especially when your business is still in the planning stages. Existing businesses can easily summarize their current operations but may encounter difficulties trying to explain what they plan to become.

Your company overview should contain the following:

• What products and services you will provide
• Geographical markets and locations your company have a presence
• What you need to run your business
• Who your target audience or customers are
• Who will service your customers
• Your company’s purpose, mission, and vision
• Information about your company’s founders
• Who the founders are
• Notable achievements of your company so far

When creating a company overview, you have to focus on three basics: identifying your industry, identifying your customer, and explaining the problem you solve.

If you are stuck when creating your company overview, try to answer some of these questions that pertain to you.

• Who are you targeting? (The answer is not everyone)
• What pain point does your product or service solve for your customers that they will be willing to spend money on resolving?
• How does your product or service overcome that pain point?
• Where is the location of your business?
• What products, equipment, and services do you need to run your business?
• How is your company’s product or service different from your competition in the eyes of your customers?
• How many employees do you need and what skills do you require them to have?

After answering some or all of these questions, you will get more than enough information you need to write your company overview or description section. When writing this section, describe what your company does for your customers.

The company description or overview section contains three elements: mission statement, history, and objectives.

• Mission Statement

The mission statement refers to the reason why your business or company is existing. It goes beyond what you do or sell, it is about the ‘why’. A good mission statement should be emotional and inspirational.

Your mission statement should follow the KISS rule (Keep It Simple, Stupid). For example, Shopify’s mission statement is “Make commerce better for everyone.”

When describing your company’s history, make it simple and avoid the temptation of tying it to a defensive narrative. Write it in the manner you would a profile. Your company’s history should include the following information:

• Founding Date
• Major Milestones
• Location(s)
• Flagship Products or Services
• Number of Employees
• Executive Leadership Roles

When you fill in this information, you use it to write one or two paragraphs about your company’s history.

Business Objectives

Your business objective must be SMART (specific, measurable, achievable, realistic, and time-bound.) Failure to clearly identify your business objectives does not inspire confidence and makes it hard for your team members to work towards a common purpose.

3. Perform Market and Competitive Analyses to Proof a Big Enough Business Opportunity

The third step in writing a business plan is the market and competitive analysis section. Every business, no matter the size, needs to perform comprehensive market and competitive analyses before it enters into a market.

Performing market and competitive analyses are critical for the success of your business. It helps you avoid entering the right market with the wrong product, or vice versa. Anyone reading your business plans, especially financiers and financial institutions will want to see proof that there is a big enough business opportunity you are targeting.

This section is where you describe the market and industry you want to operate in and show the big opportunities in the market that your business can leverage to make a profit. If you noticed any unique trends when doing your research, show them in this section.

Market analysis alone is not enough, you have to add competitive analysis to strengthen this section. There are already businesses in the industry or market, how do you plan to take a share of the market from them?

You have to clearly illustrate the competitive landscape in your business plan. Are there areas your competitors are doing well? Are there areas where they are not doing so well? Show it.

Make it clear in this section why you are moving into the industry and what weaknesses are present there that you plan to explain. How are your competitors going to react to your market entry? How do you plan to get customers? Do you plan on taking your competitors' competitors, tap into other sources for customers, or both?

Illustrate the competitive landscape as well. What are your competitors doing well and not so well?

Answering these questions and thoughts will aid your market and competitive analysis of the opportunities in your space. Depending on how sophisticated your industry is, or the expectations of your financiers, you may need to carry out a more comprehensive market and competitive analysis to prove that big business opportunity.

Instead of looking at the market and competitive analyses as one entity, separating them will make the research even more comprehensive.

Market Analysis

Market analysis, boarding speaking, refers to research a business carried out on its industry, market, and competitors. It helps businesses gain a good understanding of their target market and the outlook of their industry. Before starting a company, it is vital to carry out market research to find out if the market is viable.

The market analysis section is a key part of the business plan. It is the section where you identify who your best clients or customers are. You cannot omit this section, without it your business plan is incomplete.

A good market analysis will tell your readers how you fit into the existing market and what makes you stand out. This section requires in-depth research, it will probably be the most time-consuming part of the business plan to write.

• Market Research

To create a compelling market analysis that will win over investors and financial institutions, you have to carry out thorough market research . Your market research should be targeted at your primary target market for your products or services. Here is what you want to find out about your target market.

• Your target market’s needs or pain points
• The existing solutions for their pain points
• Geographic Location
• Demographics

The purpose of carrying out a marketing analysis is to get all the information you need to show that you have a solid and thorough understanding of your target audience.

Only after you have fully understood the people you plan to sell your products or services to, can you evaluate correctly if your target market will be interested in your products or services.

You can easily convince interested parties to invest in your business if you can show them you thoroughly understand the market and show them that there is a market for your products or services.

How to Quantify Your Target Market

One of the goals of your marketing research is to understand who your ideal customers are and their purchasing power. To quantify your target market, you have to determine the following:

• Your Potential Customers: They are the people you plan to target. For example, if you sell accounting software for small businesses , then anyone who runs an enterprise or large business is unlikely to be your customers. Also, individuals who do not have a business will most likely not be interested in your product.
• Total Households: If you are selling household products such as heating and air conditioning systems, determining the number of total households is more important than finding out the total population in the area you want to sell to. The logic is simple, people buy the product but it is the household that uses it.
• Median Income: You need to know the median income of your target market. If you target a market that cannot afford to buy your products and services, your business will not last long.
• Income by Demographics: If your potential customers belong to a certain age group or gender, determining income levels by demographics is necessary. For example, if you sell men's clothes, your target audience is men.

What Does a Good Market Analysis Entail?

Your business does not exist on its own, it can only flourish within an industry and alongside competitors. Market analysis takes into consideration your industry, target market, and competitors. Understanding these three entities will drastically improve your company’s chances of success.

You can view your market analysis as an examination of the market you want to break into and an education on the emerging trends and themes in that market. Good market analyses include the following:

• Industry Description. You find out about the history of your industry, the current and future market size, and who the largest players/companies are in your industry.
• Overview of Target Market. You research your target market and its characteristics. Who are you targeting? Note, it cannot be everyone, it has to be a specific group. You also have to find out all information possible about your customers that can help you understand how and why they make buying decisions.
• Size of Target Market: You need to know the size of your target market, how frequently they buy, and the expected quantity they buy so you do not risk overproducing and having lots of bad inventory. Researching the size of your target market will help you determine if it is big enough for sustained business or not.
• Growth Potential: Before picking a target market, you want to be sure there are lots of potential for future growth. You want to avoid going for an industry that is declining slowly or rapidly with almost zero growth potential.
• Market Share Potential: Does your business stand a good chance of taking a good share of the market?
• Market Pricing and Promotional Strategies: Your market analysis should give you an idea of the price point you can expect to charge for your products and services. Researching your target market will also give you ideas of pricing strategies you can implement to break into the market or to enjoy maximum profits.
• Potential Barriers to Entry: One of the biggest benefits of conducting market analysis is that it shows you every potential barrier to entry your business will likely encounter. It is a good idea to discuss potential barriers to entry such as changing technology. It informs readers of your business plan that you understand the market.
• Research on Competitors: You need to know the strengths and weaknesses of your competitors and how you can exploit them for the benefit of your business. Find patterns and trends among your competitors that make them successful, discover what works and what doesn’t, and see what you can do better.

The market analysis section is not just for talking about your target market, industry, and competitors. You also have to explain how your company can fill the hole you have identified in the market.

Here are some questions you can answer that can help you position your product or service in a positive light to your readers.

• Is your product or service of superior quality?
• What additional features do you offer that your competitors do not offer?
• Are you targeting a ‘new’ market?

Basically, your market analysis should include an analysis of what already exists in the market and an explanation of how your company fits into the market.

Competitive Analysis

In the competitive analysis section, y ou have to understand who your direct and indirect competitions are, and how successful they are in the marketplace. It is the section where you assess the strengths and weaknesses of your competitors, the advantage(s) they possess in the market and show the unique features or qualities that make you different from your competitors.

Many businesses do market analysis and competitive analysis together. However, to fully understand what the competitive analysis entails, it is essential to separate it from the market analysis.

Competitive analysis for your business can also include analysis on how to overcome barriers to entry in your target market.

The primary goal of conducting a competitive analysis is to distinguish your business from your competitors. A strong competitive analysis is essential if you want to convince potential funding sources to invest in your business. You have to show potential investors and lenders that your business has what it takes to compete in the marketplace successfully.

Competitive analysis will s how you what the strengths of your competition are and what they are doing to maintain that advantage.

When doing your competitive research, you first have to identify your competitor and then get all the information you can about them. The idea of spending time to identify your competitor and learn everything about them may seem daunting but it is well worth it.

Find answers to the following questions after you have identified who your competitors are.

• What are your successful competitors doing?
• Why is what they are doing working?
• Can your business do it better?
• What are the weaknesses of your successful competitors?
• What are they not doing well?
• Can your business turn its weaknesses into strengths?
• How good is your competitors’ customer service?
• Where do your competitors invest in advertising?
• What sales and pricing strategies are they using?
• What marketing strategies are they using?
• What kind of press coverage do they get?
• What are their customers saying about your competitors (both the positive and negative)?

If your competitors have a website, it is a good idea to visit their websites for more competitors’ research. Check their “About Us” page for more information.

If you are presenting your business plan to investors, you need to clearly distinguish yourself from your competitors. Investors can easily tell when you have not properly researched your competitors.

Take time to think about what unique qualities or features set you apart from your competitors. If you do not have any direct competition offering your product to the market, it does not mean you leave out the competitor analysis section blank. Instead research on other companies that are providing a similar product, or whose product is solving the problem your product solves.

The next step is to create a table listing the top competitors you want to include in your business plan. Ensure you list your business as the last and on the right. What you just created is known as the competitor analysis table.

Direct vs Indirect Competition

You cannot know if your product or service will be a fit for your target market if you have not understood your business and the competitive landscape.

There is no market you want to target where you will not encounter competition, even if your product is innovative. Including competitive analysis in your business plan is essential.

If you are entering an established market, you need to explain how you plan to differentiate your products from the available options in the market. Also, include a list of few companies that you view as your direct competitors The competition you face in an established market is your direct competition.

In situations where you are entering a market with no direct competition, it does not mean there is no competition there. Consider your indirect competition that offers substitutes for the products or services you offer.

For example, if you sell an innovative SaaS product, let us say a project management software , a company offering time management software is your indirect competition.

There is an easy way to find out who your indirect competitors are in the absence of no direct competitors. You simply have to research how your potential customers are solving the problems that your product or service seeks to solve. That is your direct competition.

Factors that Differentiate Your Business from the Competition

There are three main factors that any business can use to differentiate itself from its competition. They are cost leadership, product differentiation, and market segmentation.

1. Cost Leadership

A strategy you can impose to maximize your profits and gain an edge over your competitors. It involves offering lower prices than what the majority of your competitors are offering.

A common practice among businesses looking to enter into a market where there are dominant players is to use free trials or pricing to attract as many customers as possible to their offer.

2. Product Differentiation

Your product or service should have a unique selling proposition (USP) that your competitors do not have or do not stress in their marketing.

Part of the marketing strategy should involve making your products unique and different from your competitors. It does not have to be different from your competitors, it can be the addition to a feature or benefit that your competitors do not currently have.

3. Market Segmentation

As a new business seeking to break into an industry, you will gain more success from focusing on a specific niche or target market, and not the whole industry.

If your competitors are focused on a general need or target market, you can differentiate yourself from them by having a small and hyper-targeted audience. For example, if your competitors are selling men’s clothes in their online stores , you can sell hoodies for men.

4. Define Your Business and Management Structure

The next step in your business plan is your business and management structure. It is the section where you describe the legal structure of your business and the team running it.

Your business is only as good as the management team that runs it, while the management team can only strive when there is a proper business and management structure in place.

If your company is a sole proprietor or a limited liability company (LLC), a general or limited partnership, or a C or an S corporation, state it clearly in this section.

Use an organizational chart to show the management structure in your business. Clearly show who is in charge of what area in your company. It is where you show how each key manager or team leader’s unique experience can contribute immensely to the success of your company. You can also opt to add the resumes and CVs of the key players in your company.

The business and management structure section should show who the owner is, and other owners of the businesses (if the business has other owners). For businesses or companies with multiple owners, include the percent ownership of the various owners and clearly show the extent of each others’ involvement in the company.

Investors want to know who is behind the company and the team running it to determine if it has the right management to achieve its set goals.

Management Team

The management team section is where you show that you have the right team in place to successfully execute the business operations and ideas. Take time to create the management structure for your business. Think about all the important roles and responsibilities that you need managers for to grow your business.

Include brief bios of each key team member and ensure you highlight only the relevant information that is needed. If your team members have background industry experience or have held top positions for other companies and achieved success while filling that role, highlight it in this section.

A common mistake that many startups make is assigning C-level titles such as (CMO and CEO) to everyone on their team. It is unrealistic for a small business to have those titles. While it may look good on paper for the ego of your team members, it can prevent investors from investing in your business.

Instead of building an unrealistic management structure that does not fit your business reality, it is best to allow business titles to grow as the business grows. Starting everyone at the top leaves no room for future change or growth, which is bad for productivity.

Your management team does not have to be complete before you start writing your business plan. You can have a complete business plan even when there are managerial positions that are empty and need filling.

If you have management gaps in your team, simply show the gaps and indicate you are searching for the right candidates for the role(s). Investors do not expect you to have a full management team when you are just starting your business.

Key Questions to Answer When Structuring Your Management Team

• Who are the key leaders?
• What experiences, skills, and educational backgrounds do you expect your key leaders to have?
• Do your key leaders have industry experience?
• What positions will they fill and what duties will they perform in those positions?
• What level of authority do the key leaders have and what are their responsibilities?
• What is the salary for the various management positions that will attract the ideal candidates?

Additional Tips for Writing the Management Structure Section

1. Avoid Adding ‘Ghost’ Names to Your Management Team

There is always that temptation to include a ‘ghost’ name to your management team to attract and influence investors to invest in your business. Although the presence of these celebrity management team members may attract the attention of investors, it can cause your business to lose any credibility if you get found out.

Seasoned investors will investigate further the members of your management team before committing fully to your business If they find out that the celebrity name used does not play any actual role in your business, they will not invest and may write you off as dishonest.

2. Focus on Credentials But Pay Extra Attention to the Roles

Investors want to know the experience that your key team members have to determine if they can successfully reach the company’s growth and financial goals.

While it is an excellent boost for your key management team to have the right credentials, you also want to pay extra attention to the roles they will play in your company.

Organizational Chart

Adding an organizational chart in this section of your business plan is not necessary, you can do it in your business plan’s appendix.

If you are exploring funding options, it is not uncommon to get asked for your organizational chart. The function of an organizational chart goes beyond raising money, you can also use it as a useful planning tool for your business.

An organizational chart can help you identify how best to structure your management team for maximum productivity and point you towards key roles you need to fill in the future.

You can use the organizational chart to show your company’s internal management structure such as the roles and responsibilities of your management team, and relationships that exist between them.

5. Describe Your Product and Service Offering

In your business plan, you have to describe what you sell or the service you plan to offer. It is the next step after defining your business and management structure. The products and services section is where you sell the benefits of your business.

Here you have to explain how your product or service will benefit your customers and describe your product lifecycle. It is also the section where you write down your plans for intellectual property like patent filings and copyrighting.

The research and development that you are undertaking for your product or service need to be explained in detail in this section. However, do not get too technical, sell the general idea and its benefits.

If you have any diagrams or intricate designs of your product or service, do not include them in the products and services section. Instead, leave them for the addendum page. Also, if you are leaving out diagrams or designs for the addendum, ensure you add this phrase “For more detail, visit the addendum Page #.”

Your product and service section in your business plan should include the following:

• A detailed explanation that clearly shows how your product or service works.
• The pricing model for your product or service.
• Your business’ sales and distribution strategy.
• The ideal customers that want your product or service.
• The benefits of your products and services.
• Reason(s) why your product or service is a better alternative to what your competitors are currently offering in the market.
• Plans for filling the orders you receive
• If you have current or pending patents, copyrights, and trademarks for your product or service, you can also discuss them in this section.

What to Focus On When Describing the Benefits, Lifecycle, and Production Process of Your Products or Services

In the products and services section, you have to distill the benefits, lifecycle, and production process of your products and services.

When describing the benefits of your products or services, here are some key factors to focus on.

• Unique features
• Translating the unique features into benefits
• The emotional, psychological, and practical payoffs to attract customers
• Intellectual property rights or any patents

When describing the product life cycle of your products or services, here are some key factors to focus on.

• Upsells, cross-sells, and down-sells
• Time between purchases
• Plans for research and development.

When describing the production process for your products or services, you need to think about the following:

• The creation of new or existing products and services.
• The sources for the raw materials or components you need for production.
• Assembling the products
• Maintaining quality control
• Supply-chain logistics (receiving the raw materials and delivering the finished products)
• The day-to-day management of the production processes, bookkeeping, and inventory.

Tips for Writing the Products or Services Section of Your Business Plan

1. Avoid Technical Descriptions and Industry Buzzwords

The products and services section of your business plan should clearly describe the products and services that your company provides. However, it is not a section to include technical jargons that anyone outside your industry will not understand.

A good practice is to remove highly detailed or technical descriptions in favor of simple terms. Industry buzzwords are not necessary, if there are simpler terms you can use, then use them. If you plan to use your business plan to source funds, making the product or service section so technical will do you no favors.

2. Describe How Your Products or Services Differ from Your Competitors

When potential investors look at your business plan, they want to know how the products and services you are offering differ from that of your competition. Differentiating your products or services from your competition in a way that makes your solution more attractive is critical.

If you are going the innovative path and there is no market currently for your product or service, you need to describe in this section why the market needs your product or service.

For example, overnight delivery was a niche business that only a few companies were participating in. Federal Express (FedEx) had to show in its business plan that there was a large opportunity for that service and they justified why the market needed that service.

3. Long or Short Products or Services Section

Should your products or services section be short? Does the long products or services section attract more investors?

There are no straightforward answers to these questions. Whether your products or services section should be long or relatively short depends on the nature of your business.

If your business is product-focused, then automatically you need to use more space to describe the details of your products. However, if the product your business sells is a commodity item that relies on competitive pricing or other pricing strategies, you do not have to use up so much space to provide significant details about the product.

Likewise, if you are selling a commodity that is available in numerous outlets, then you do not have to spend time on writing a long products or services section.

The key to the success of your business is most likely the effectiveness of your marketing strategies compared to your competitors. Use more space to address that section.

If you are creating a new product or service that the market does not know about, your products or services section can be lengthy. The reason why is because you need to explain everything about the product or service such as the nature of the product, its use case, and values.

A short products or services section for an innovative product or service will not give the readers enough information to properly evaluate your business.

4. Describe Your Relationships with Vendors or Suppliers

Your business will rely on vendors or suppliers to supply raw materials or the components needed to make your products. In your products and services section, describe your relationships with your vendors and suppliers fully.

Avoid the mistake of relying on only one supplier or vendor. If that supplier or vendor fails to supply or goes out of business, you can easily face supply problems and struggle to meet your demands. Plan to set up multiple vendor or supplier relationships for better business stability.

5. Your Primary Goal Is to Convince Your Readers

The primary goal of your business plan is to convince your readers that your business is viable and to create a guide for your business to follow. It applies to the products and services section.

When drafting this section, think like the reader. See your reader as someone who has no idea about your products and services. You are using the products and services section to provide the needed information to help your reader understand your products and services. As a result, you have to be clear and to the point.

While you want to educate your readers about your products or services, you also do not want to bore them with lots of technical details. Show your products and services and not your fancy choice of words.

Your products and services section should provide the answer to the “what” question for your business. You and your management team may run the business, but it is your products and services that are the lifeblood of the business.

Key Questions to Answer When Writing your Products and Services Section

Answering these questions can help you write your products and services section quickly and in a way that will appeal to your readers.

• Are your products existing on the market or are they still in the development stage?
• What is your timeline for adding new products and services to the market?
• What are the positives that make your products and services different from your competitors?
• Do your products and services have any competitive advantage that your competitors’ products and services do not currently have?
• Do your products or services have any competitive disadvantages that you need to overcome to compete with your competitors? If your answer is yes, state how you plan to overcome them,
• How much does it cost to produce your products or services? How much do you plan to sell it for?
• What is the price for your products and services compared to your competitors? Is pricing an issue?
• What are your operating costs and will it be low enough for you to compete with your competitors and still take home a reasonable profit margin?
• What is your plan for acquiring your products? Are you involved in the production of your products or services?
• Are you the manufacturer and produce all the components you need to create your products? Do you assemble your products by using components supplied by other manufacturers? Do you purchase your products directly from suppliers or wholesalers?
• Do you have a steady supply of products that you need to start your business? (If your business is yet to kick-off)
• How do you plan to distribute your products or services to the market?

You can also hint at the marketing or promotion plans you have for your products or services such as how you plan to build awareness or retain customers. The next section is where you can go fully into details about your business’s marketing and sales plan.

6. Show and Explain Your Marketing and Sales Plan

Providing great products and services is wonderful, but it means nothing if you do not have a marketing and sales plan to inform your customers about them. Your marketing and sales plan is critical to the success of your business.

The sales and marketing section is where you show and offer a detailed explanation of your marketing and sales plan and how you plan to execute it. It covers your pricing plan, proposed advertising and promotion activities, activities and partnerships you need to make your business a success, and the benefits of your products and services.

There are several ways you can approach your marketing and sales strategy. Ideally, your marketing and sales strategy has to fit the unique needs of your business.

In this section, you describe how the plans your business has for attracting and retaining customers, and the exact process for making a sale happen. It is essential to thoroughly describe your complete marketing and sales plans because you are still going to reference this section when you are making financial projections for your business.

Outline Your Business’ Unique Selling Proposition (USP)

The sales and marketing section is where you outline your business’s unique selling proposition (USP). When you are developing your unique selling proposition, think about the strongest reasons why people should buy from you over your competition. That reason(s) is most likely a good fit to serve as your unique selling proposition (USP).

Target Market and Target Audience

Plans on how to get your products or services to your target market and how to get your target audience to buy them go into this section. You also highlight the strengths of your business here, particularly what sets them apart from your competition.

Before you start writing your marketing and sales plan, you need to have properly defined your target audience and fleshed out your buyer persona. If you do not first understand the individual you are marketing to, your marketing and sales plan will lack any substance and easily fall.

Creating a Smart Marketing and Sales Plan

Marketing your products and services is an investment that requires you to spend money. Like any other investment, you have to generate a good return on investment (ROI) to justify using that marketing and sales plan. Good marketing and sales plans bring in high sales and profits to your company.

Avoid spending money on unproductive marketing channels. Do your research and find out the best marketing and sales plan that works best for your company.

Your marketing and sales plan can be broken into different parts: your positioning statement, pricing, promotion, packaging, advertising, public relations, content marketing, social media, and strategic alliances.

Your Positioning Statement

Your positioning statement is the first part of your marketing and sales plan. It refers to the way you present your company to your customers.

Are you the premium solution, the low-price solution, or are you the intermediary between the two extremes in the market? What do you offer that your competitors do not that can give you leverage in the market?

Before you start writing your positioning statement, you need to spend some time evaluating the current market conditions. Here are some questions that can help you to evaluate the market

• What are the unique features or benefits that you offer that your competitors lack?
• What are your customers’ primary needs and wants?
• Why should a customer choose you over your competition? How do you plan to differentiate yourself from the competition?
• How does your company’s solution compare with other solutions in the market?

After answering these questions, then you can start writing your positioning statement. Your positioning statement does not have to be in-depth or too long.

All you need to explain with your positioning statement are two focus areas. The first is the position of your company within the competitive landscape. The other focus area is the core value proposition that sets your company apart from other alternatives that your ideal customer might consider.

Here is a simple template you can use to develop a positioning statement.

For [description of target market] who [need of target market], [product or service] [how it meets the need]. Unlike [top competition], it [most essential distinguishing feature].

For example, let’s create the positioning statement for fictional accounting software and QuickBooks alternative , TBooks.

“For small business owners who need accounting services, TBooks is an accounting software that helps small businesses handle their small business bookkeeping basics quickly and easily. Unlike Wave, TBooks gives small businesses access to live sessions with top accountants.”

You can edit this positioning statement sample and fill it with your business details.

After writing your positioning statement, the next step is the pricing of your offerings. The overall positioning strategy you set in your positioning statement will often determine how you price your products or services.

Pricing is a powerful tool that sends a strong message to your customers. Failure to get your pricing strategy right can make or mar your business. If you are targeting a low-income audience, setting a premium price can result in low sales.

You can use pricing to communicate your positioning to your customers. For example, if you are offering a product at a premium price, you are sending a message to your customers that the product belongs to the premium category.

Basic Rules to Follow When Pricing Your Offering

Setting a price for your offering involves more than just putting a price tag on it. Deciding on the right pricing for your offering requires following some basic rules. They include covering your costs, primary and secondary profit center pricing, and matching the market rate.

• Covering Your Costs: The price you set for your products or service should be more than it costs you to produce and deliver them. Every business has the same goal, to make a profit. Depending on the strategy you want to use, there are exceptions to this rule. However, the vast majority of businesses follow this rule.
• Primary and Secondary Profit Center Pricing: When a company sets its price above the cost of production, it is making that product its primary profit center. A company can also decide not to make its initial price its primary profit center by selling below or at even with its production cost. It rather depends on the support product or even maintenance that is associated with the initial purchase to make its profit. The initial price thus became its secondary profit center.
• Matching the Market Rate: A good rule to follow when pricing your products or services is to match your pricing with consumer demand and expectations. If you price your products or services beyond the price your customer perceives as the ideal price range, you may end up with no customers. Pricing your products too low below what your customer perceives as the ideal price range may lead to them undervaluing your offering.

Pricing Strategy

Your pricing strategy influences the price of your offering. There are several pricing strategies available for you to choose from when examining the right pricing strategy for your business. They include cost-plus pricing, market-based pricing, value pricing, and more.

• Cost-plus Pricing: This strategy is one of the simplest and oldest pricing strategies. Here you consider the cost of producing a unit of your product and then add a profit to it to arrive at your market price. It is an effective pricing strategy for manufacturers because it helps them cover their initial costs. Another name for the cost-plus pricing strategy is the markup pricing strategy.
• Market-based Pricing: This pricing strategy analyses the market including competitors’ pricing and then sets a price based on what the market is expecting. With this pricing strategy, you can either set your price at the low-end or high-end of the market.
• Value Pricing: This pricing strategy involves setting a price based on the value you are providing to your customer. When adopting a value-based pricing strategy, you have to set a price that your customers are willing to pay. Service-based businesses such as small business insurance providers , luxury goods sellers, and the fashion industry use this pricing strategy.

After carefully sorting out your positioning statement and pricing, the next item to look at is your promotional strategy. Your promotional strategy explains how you plan on communicating with your customers and prospects.

As a business, you must measure all your costs, including the cost of your promotions. You also want to measure how much sales your promotions bring for your business to determine its usefulness. Promotional strategies or programs that do not lead to profit need to be removed.

There are different types of promotional strategies you can adopt for your business, they include advertising, public relations, and content marketing.

Advertising

Your business plan should include your advertising plan which can be found in the marketing and sales plan section. You need to include an overview of your advertising plans such as the areas you plan to spend money on to advertise your business and offers.

Ensure that you make it clear in this section if your business will be advertising online or using the more traditional offline media, or the combination of both online and offline media. You can also include the advertising medium you want to use to raise awareness about your business and offers.

Some common online advertising mediums you can use include social media ads, landing pages, sales pages, SEO, Pay-Per-Click, emails, Google Ads, and others. Some common traditional and offline advertising mediums include word of mouth, radios, direct mail, televisions, flyers, billboards, posters, and others.

A key component of your advertising strategy is how you plan to measure the effectiveness and success of your advertising campaign. There is no point in sticking with an advertising plan or medium that does not produce results for your business in the long run.

Public Relations

A great way to reach your customers is to get the media to cover your business or product. Publicity, especially good ones, should be a part of your marketing and sales plan. In this section, show your plans for getting prominent reviews of your product from reputable publications and sources.

Your business needs that exposure to grow. If public relations is a crucial part of your promotional strategy, provide details about your public relations plan here.

Content Marketing

Content marketing is a popular promotional strategy used by businesses to inform and attract their customers. It is about teaching and educating your prospects on various topics of interest in your niche, it does not just involve informing them about the benefits and features of the products and services you have,

Businesses publish content usually for free where they provide useful information, tips, and advice so that their target market can be made aware of the importance of their products and services. Content marketing strategies seek to nurture prospects into buyers over time by simply providing value.

Your company can create a blog where it will be publishing content for its target market. You will need to use the best website builder such as Wix and Squarespace and the best web hosting services such as Bluehost, Hostinger, and other Bluehost alternatives to create a functional blog or website.

If content marketing is a crucial part of your promotional strategy (as it should be), detail your plans under promotions.

Including high-quality images of the packaging of your product in your business plan is a lovely idea. You can add the images of the packaging of that product in the marketing and sales plan section. If you are not selling a product, then you do not need to include any worry about the physical packaging of your product.

When organizing the packaging section of your business plan, you can answer the following questions to make maximum use of this section.

• Is your choice of packaging consistent with your positioning strategy?
• What key value proposition does your packaging communicate? (It should reflect the key value proposition of your business)
• How does your packaging compare to that of your competitors?

Social Media

Your 21st-century business needs to have a good social media presence. Not having one is leaving out opportunities for growth and reaching out to your prospect.

You do not have to join the thousands of social media platforms out there. What you need to do is join the ones that your customers are active on and be active there.

Businesses use social media to provide information about their products such as promotions, discounts, the benefits of their products, and content on their blogs.

Social media is also a platform for engaging with your customers and getting feedback about your products or services. Make no mistake, more and more of your prospects are using social media channels to find more information about companies.

You need to consider the social media channels you want to prioritize your business (prioritize the ones your customers are active in) and your branding plans in this section.

Strategic Alliances

If your company plans to work closely with other companies as part of your sales and marketing plan, include it in this section. Prove details about those partnerships in your business plan if you have already established them.

Strategic alliances can be beneficial for all parties involved including your company. Working closely with another company in the form of a partnership can provide access to a different target market segment for your company.

The company you are partnering with may also gain access to your target market or simply offer a new product or service (that of your company) to its customers.

Mutually beneficial partnerships can cover the weaknesses of one company with the strength of another. You should consider strategic alliances with companies that sell complimentary products to yours. For example, if you provide printers, you can partner with a company that produces ink since the customers that buy printers from you will also need inks for printing.

Steps Involved in Creating a Marketing and Sales Plan

1. Focus on Your Target Market

Identify who your customers are, the market you want to target. Then determine the best ways to get your products or services to your potential customers.

2. Evaluate Your Competition

One of the goals of having a marketing plan is to distinguish yourself from your competition. You cannot stand out from them without first knowing them in and out.

You can know your competitors by gathering information about their products, pricing, service, and advertising campaigns.

These questions can help you know your competition.

• What makes your competition successful?
• What are their weaknesses?
• What are customers saying about your competition?

3. Consider Your Brand

Customers' perception of your brand has a strong impact on your sales. Your marketing and sales plan should seek to bolster the image of your brand. Before you start marketing your business, think about the message you want to pass across about your business and your products and services.

4. Focus on Benefits

The majority of your customers do not view your product in terms of features, what they want to know is the benefits and solutions your product offers. Think about the problems your product solves and the benefits it delivers, and use it to create the right sales and marketing message.

Your marketing plan should focus on what you want your customer to get instead of what you provide. Identify those benefits in your marketing and sales plan.

5. Focus on Differentiation

Your marketing and sales plan should look for a unique angle they can take that differentiates your business from the competition, even if the products offered are similar. Some good areas of differentiation you can use are your benefits, pricing, and features.

Key Questions to Answer When Writing Your Marketing and Sales Plan

• What is your company’s budget for sales and marketing campaigns?
• What key metrics will you use to determine if your marketing plans are successful?
• What are your alternatives if your initial marketing efforts do not succeed?
• Who are the sales representatives you need to promote your products or services?
• What are the marketing and sales channels you plan to use? How do you plan to get your products in front of your ideal customers?
• Where will you sell your products?

You may want to include samples of marketing materials you plan to use such as print ads, website descriptions, and social media ads. While it is not compulsory to include these samples, it can help you better communicate your marketing and sales plan and objectives.

The purpose of the marketing and sales section is to answer this question “How will you reach your customers?” If you cannot convincingly provide an answer to this question, you need to rework your marketing and sales section.

7. Clearly Show Your Funding Request

If you are writing your business plan to ask for funding from investors or financial institutions, the funding request section is where you will outline your funding requirements. The funding request section should answer the question ‘How much money will your business need in the near future (3 to 5 years)?’

A good funding request section will clearly outline and explain the amount of funding your business needs over the next five years. You need to know the amount of money your business needs to make an accurate funding request.

Also, when writing your funding request, provide details of how the funds will be used over the period. Specify if you want to use the funds to buy raw materials or machinery, pay salaries, pay for advertisements, and cover specific bills such as rent and electricity.

In addition to explaining what you want to use the funds requested for, you need to clearly state the projected return on investment (ROI) . Investors and creditors want to know if your business can generate profit for them if they put funds into it.

Ensure you do not inflate the figures and stay as realistic as possible. Investors and financial institutions you are seeking funds from will do their research before investing money in your business.

If you are not sure of an exact number to request from, you can use some range of numbers as rough estimates. Add a best-case scenario and a work-case scenario to your funding request. Also, include a description of your strategic future financial plans such as selling your business or paying off debts.

Funding Request: Debt or Equity?

When making your funding request, specify the type of funding you want. Do you want debt or equity? Draw out the terms that will be applicable for the funding, and the length of time the funding request will cover.

Case for Equity

If your new business has not yet started generating profits, you are most likely preparing to sell equity in your business to raise capital at the early stage. Equity here refers to ownership. In this case, you are selling a portion of your company to raise capital.

Although this method of raising capital for your business does not put your business in debt, keep in mind that an equity owner may expect to play a key role in company decisions even if he does not hold a major stake in the company.

Most equity sales for startups are usually private transactions . If you are making a funding request by offering equity in exchange for funding, let the investor know that they will be paid a dividend (a share of the company’s profit). Also, let the investor know the process for selling their equity in your business.

Case for Debt

You may decide not to offer equity in exchange for funds, instead, you make a funding request with the promise to pay back the money borrowed at the agreed time frame.

When making a funding request with an agreement to pay back, note that you will have to repay your creditors both the principal amount borrowed and the interest on it. Financial institutions offer this type of funding for businesses.

Large companies combine both equity and debt in their capital structure. When drafting your business plan, decide if you want to offer both or one over the other.

Before you sell equity in exchange for funding in your business, consider if you are willing to accept not being in total control of your business. Also, before you seek loans in your funding request section, ensure that the terms of repayment are favorable.

You should set a clear timeline in your funding request so that potential investors and creditors can know what you are expecting. Some investors and creditors may agree to your funding request and then delay payment for longer than 30 days, meanwhile, your business needs an immediate cash injection to operate efficiently.

Additional Tips for Writing the Funding Request Section of your Business Plan

The funding request section is not necessary for every business, it is only needed by businesses who plan to use their business plan to secure funding.

If you are adding the funding request section to your business plan, provide an itemized summary of how you plan to use the funds requested. Hiring a lawyer, accountant, or other professionals may be necessary for the proper development of this section.

You should also gather and use financial statements that add credibility and support to your funding requests. Ensure that the financial statements you use should include your projected financial data such as projected cash flows, forecast statements, and expenditure budgets.

If you are an existing business, include all historical financial statements such as cash flow statements, balance sheets and income statements .

Provide monthly and quarterly financial statements for a year. If your business has records that date back beyond the one-year mark, add the yearly statements of those years. These documents are for the appendix section of your business plan.

8. Detail Your Financial Plan, Metrics, and Projections

If you used the funding request section in your business plan, supplement it with a financial plan, metrics, and projections. This section paints a picture of the past performance of your business and then goes ahead to make an informed projection about its future.

The goal of this section is to convince readers that your business is going to be a financial success. It outlines your business plan to generate enough profit to repay the loan (with interest if applicable) and to generate a decent return on investment for investors.

If you have an existing business already in operation, use this section to demonstrate stability through finance. This section should include your cash flow statements, balance sheets, and income statements covering the last three to five years. If your business has some acceptable collateral that you can use to acquire loans, list it in the financial plan, metrics, and projection section.

Apart from current financial statements, this section should also contain a prospective financial outlook that spans the next five years. Include forecasted income statements, cash flow statements, balance sheets, and capital expenditure budget.

If your business is new and is not yet generating profit, use clear and realistic projections to show the potentials of your business.

When drafting this section, research industry norms and the performance of comparable businesses. Your financial projections should cover at least five years. State the logic behind your financial projections. Remember you can always make adjustments to this section as the variables change.

The financial plan, metrics, and projection section create a baseline which your business can either exceed or fail to reach. If your business fails to reach your projections in this section, you need to understand why it failed.

Investors and loan managers spend a lot of time going through the financial plan, metrics, and projection section compared to other parts of the business plan. Ensure you spend time creating credible financial analyses for your business in this section.

Many entrepreneurs find this section daunting to write. You do not need a business degree to create a solid financial forecast for your business. Business finances, especially for startups, are not as complicated as they seem. There are several online tools and templates that make writing this section so much easier.

Use Graphs and Charts

The financial plan, metrics, and projection section is a great place to use graphs and charts to tell the financial story of your business. Charts and images make it easier to communicate your finances.

Accuracy in this section is key, ensure you carefully analyze your past financial statements properly before making financial projects.

Address the Risk Factors and Show Realistic Financial Projections

Keep your financial plan, metrics, and projection realistic. It is okay to be optimistic in your financial projection, however, you have to justify it.

You should also address the various risk factors associated with your business in this section. Investors want to know the potential risks involved, show them. You should also show your plans for mitigating those risks.

What You Should In The Financial Plan, Metrics, and Projection Section of Your Business Plan

The financial plan, metrics, and projection section of your business plan should have monthly sales and revenue forecasts for the first year. It should also include annual projections that cover 3 to 5 years.

A three-year projection is a basic requirement to have in your business plan. However, some investors may request a five-year forecast.

Your business plan should include the following financial statements: sales forecast, personnel plan, income statement, income statement, cash flow statement, balance sheet, and an exit strategy.

1. Sales Forecast

Sales forecast refers to your projections about the number of sales your business is going to record over the next few years. It is typically broken into several rows, with each row assigned to a core product or service that your business is offering.

One common mistake people make in their business plan is to break down the sales forecast section into long details. A sales forecast should forecast the high-level details.

For example, if you are forecasting sales for a payroll software provider, you could break down your forecast into target market segments or subscription categories.

Your sales forecast section should also have a corresponding row for each sales row to cover the direct cost or Cost of Goods Sold (COGS). The objective of these rows is to show the expenses that your business incurs in making and delivering your product or service.

Note that your Cost of Goods Sold (COGS) should only cover those direct costs incurred when making your products. Other indirect expenses such as insurance, salaries, payroll tax, and rent should not be included.

For example, the Cost of Goods Sold (COGS) for a restaurant is the cost of ingredients while for a consulting company it will be the cost of paper and other presentation materials.

2. Personnel Plan

The personnel plan section is where you provide details about the payment plan for your employees. For a small business, you can easily list every position in your company and how much you plan to pay in the personnel plan.

However, for larger businesses, you have to break the personnel plan into functional groups such as sales and marketing.

The personnel plan will also include the cost of an employee beyond salary, commonly referred to as the employee burden. These costs include insurance, payroll taxes , and other essential costs incurred monthly as a result of having employees on your payroll.

3. Income Statement

The income statement section shows if your business is making a profit or taking a loss. Another name for the income statement is the profit and loss (P&L). It takes data from your sales forecast and personnel plan and adds other ongoing expenses you incur while running your business.

Every business plan should have an income statement. It subtracts your business expenses from its earnings to show if your business is generating profit or incurring losses.

The income statement has the following items: sales, Cost of Goods Sold (COGS), gross margin, operating expenses, total operating expenses, operating income , total expenses, and net profit.

• Sales refer to the revenue your business generates from selling its products or services. Other names for sales are income or revenue.
• Cost of Goods Sold (COGS) refers to the total cost of selling your products. Other names for COGS are direct costs or cost of sales. Manufacturing businesses use the Costs of Goods Manufactured (COGM) .
• Gross Margin is the figure you get when you subtract your COGS from your sales. In your income statement, you can express it as a percentage of total sales (Gross margin / Sales = Gross Margin Percent).
• Operating Expenses refer to all the expenses you incur from running your business. It exempts the COGS because it stands alone as a core part of your income statement. You also have to exclude taxes, depreciation, and amortization. Your operating expenses include salaries, marketing expenses, research and development (R&D) expenses, and other expenses.
• Total Operating Expenses refers to the sum of all your operating expenses including those exemptions named above under operating expenses.
• Operating Income refers to earnings before interest, taxes, depreciation, and amortization. It is simply known as the acronym EBITDA (earnings before interest, taxes, depreciation, and amortization). Calculating your operating income is simple, all you need to do is to subtract your COGS and total operating expenses from your sales.
• Total Expenses refer to the sum of your operating expenses and your business’ interest, taxes, depreciation, and amortization.
• Net profit shows whether your business has made a profit or taken a loss during a given timeframe.

4. Cash Flow Statement

The cash flow statement tracks the money you have in the bank at any given point. It is often confused with the income statement or the profit and loss statement. They are both different types of financial statements. The income statement calculates your profits and losses while the cash flow statement shows you how much you have in the bank.

5. Balance Sheet

The balance sheet is a financial statement that provides an overview of the financial health of your business. It contains information about the assets and liabilities of your company, and owner’s or shareholders’ equity.

You can get the net worth of your company by subtracting your company’s liabilities from its assets.

6. Exit Strategy

The exit strategy refers to a probable plan for selling your business either to the public in an IPO or to another company. It is the last thing you include in the financial plan, metrics, and projection section.

You can choose to omit the exit strategy from your business plan if you plan to maintain full ownership of your business and do not plan on seeking angel investment or virtual capitalist (VC) funding.

Investors may want to know what your exit plan is. They invest in your business to get a good return on investment.

Your exit strategy does not have to include long and boring details. Ensure you identify some interested parties who may be interested in buying the company if it becomes a success.

Key Questions to Answer with Your Financial Plan, Metrics, and Projection

Your financial plan, metrics, and projection section helps investors, creditors, or your internal managers to understand what your expenses are, the amount of cash you need, and what it takes to make your company profitable. It also shows what you will be doing with any funding.

You do not need to show actual financial data if you do not have one. Adding forecasts and projections to your financial statements is added proof that your strategy is feasible and shows investors you have planned properly.

Here are some key questions to answer to help you develop this section.

• What is your sales forecast for the next year?
• When will your company achieve a positive cash flow?
• What are the core expenses you need to operate?
• How much money do you need upfront to operate or grow your company?
• How will you use the loans or investments?

9. Add an Appendix to Your Business Plan

Adding an appendix to your business plan is optional. It is a useful place to put any charts, tables, legal notes, definitions, permits, résumés, and other critical information that do not fit into other sections of your business plan.

The appendix section is where you would want to include details of a patent or patent-pending if you have one. You can always add illustrations or images of your products here. It is the last section of your business plan.

When writing your business plan, there are details you cut short or remove to prevent the entire section from becoming too lengthy. There are also details you want to include in the business plan but are not a good fit for any of the previous sections. You can add that additional information to the appendix section.

Businesses also use the appendix section to include supporting documents or other materials specially requested by investors or lenders.

You can include just about any information that supports the assumptions and statements you made in the business plan under the appendix. It is the one place in the business plan where unrelated data and information can coexist amicably.

If your appendix section is lengthy, try organizing it by adding a table of contents at the beginning of the appendix section. It is also advisable to group similar information to make it easier for the reader to access them.

A well-organized appendix section makes it easier to share your information clearly and concisely. Add footnotes throughout the rest of the business plan or make references in the plan to the documents in the appendix.

The appendix section is usually only necessary if you are seeking funding from investors or lenders, or hoping to attract partners.

People reading business plans do not want to spend time going through a heap of backup information, numbers, and charts. Keep these documents or information in the Appendix section in case the reader wants to dig deeper.

Common Items to Include in the Appendix Section of Your Business Plan

The appendix section includes documents that supplement or support the information or claims given in other sections of the business plans. Common items you can include in the appendix section include:

• Additional data about the process of manufacturing or creation
• Additional description of products or services such as product schematics
• Additional financial documents or projections
• Articles of incorporation and status
• Backup for market research or competitive analysis
• Bank statements
• Business registries
• Client testimonials (if your business is already running)
• Copies of insurances
• Credit histories (personal or/and business)
• Deeds and permits
• Equipment leases
• Examples of marketing and advertising collateral
• Industry associations and memberships
• Images of product
• Intellectual property
• Key customer contracts
• Legal documents and other contracts
• Letters of reference
• Links to references
• Market research data
• Organizational charts
• Photographs of potential facilities
• Professional licenses pertaining to your legal structure or type of business
• Purchase orders
• Resumes of the founder(s) and key managers
• State and federal identification numbers or codes
• Trademarks or patents’ registrations

Avoid using the appendix section as a place to dump any document or information you feel like adding. Only add documents or information that you support or increase the credibility of your business plan.

Tips and Strategies for Writing a Convincing Business Plan

To achieve a perfect business plan, you need to consider some key tips and strategies. These tips will raise the efficiency of your business plan above average.

1. Know Your Audience

When writing a business plan, you need to know your audience . Business owners write business plans for different reasons. Your business plan has to be specific. For example, you can write business plans to potential investors, banks, and even fellow board members of the company.

The audience you are writing to determines the structure of the business plan. As a business owner, you have to know your audience. Not everyone will be your audience. Knowing your audience will help you to narrow the scope of your business plan.

Consider what your audience wants to see in your projects, the likely questions they might ask, and what interests them.

• A business plan used to address a company's board members will center on its employment schemes, internal affairs, projects, stakeholders, etc.
• A business plan for financial institutions will talk about the size of your market and the chances for you to pay back any loans you demand.
• A business plan for investors will show proof that you can return the investment capital within a specific time. In addition, it discusses your financial projections, tractions, and market size.

2. Get Inspiration from People

Writing a business plan from scratch as an entrepreneur can be daunting. That is why you need the right inspiration to push you to write one. You can gain inspiration from the successful business plans of other businesses. Look at their business plans, the style they use, the structure of the project, etc.

To make your business plan easier to create, search companies related to your business to get an exact copy of what you need to create an effective business plan. You can also make references while citing examples in your business plans.

When drafting your business plan, get as much help from others as you possibly can. By getting inspiration from people, you can create something better than what they have.

3. Avoid Being Over Optimistic

Many business owners make use of strong adjectives to qualify their content. One of the big mistakes entrepreneurs make when preparing a business plan is promising too much.

The use of superlatives and over-optimistic claims can prepare the audience for more than you can offer. In the end, you disappoint the confidence they have in you.

In most cases, the best option is to be realistic with your claims and statistics. Most of the investors can sense a bit of incompetency from the overuse of superlatives. As a new entrepreneur, do not be tempted to over-promise to get the interests of investors.

The concept of entrepreneurship centers on risks, nothing is certain when you make future analyses. What separates the best is the ability to do careful research and work towards achieving that, not promising more than you can achieve.

To make an excellent first impression as an entrepreneur, replace superlatives with compelling data-driven content. In this way, you are more specific than someone promising a huge ROI from an investment.

4. Keep it Simple and Short

When writing business plans, ensure you keep them simple throughout. Irrespective of the purpose of the business plan, your goal is to convince the audience.

One way to achieve this goal is to make them understand your proposal. Therefore, it would be best if you avoid the use of complex grammar to express yourself. It would be a huge turn-off if the people you want to convince are not familiar with your use of words.

Another thing to note is the length of your business plan. It would be best if you made it as brief as possible.

You hardly see investors or agencies that read through an extremely long document. In that case, if your first few pages can’t convince them, then you have lost it. The more pages you write, the higher the chances of you derailing from the essential contents.

To ensure your business plan has a high conversion rate, you need to dispose of every unnecessary information. For example, if you have a strategy that you are not sure of, it would be best to leave it out of the plan.

5. Make an Outline and Follow Through

A perfect business plan must have touched every part needed to convince the audience. Business owners get easily tempted to concentrate more on their products than on other sections. Doing this can be detrimental to the efficiency of the business plan.

For example, imagine you talking about a product but omitting or providing very little information about the target audience. You will leave your clients confused.

To ensure that your business plan communicates your full business model to readers, you have to input all the necessary information in it. One of the best ways to achieve this is to design a structure and stick to it.

This structure is what guides you throughout the writing. To make your work easier, you can assign an estimated word count or page limit to every section to avoid making it too bulky for easy reading. As a guide, the necessary things your business plan must contain are:

• Table of contents
• Introduction
• Product or service description
• Target audience
• Market size
• Competition analysis
• Financial projections

Some specific businesses can include some other essential sections, but these are the key sections that must be in every business plan.

6. Ask a Professional to Proofread

When writing a business plan, you must tie all loose ends to get a perfect result. When you are done with writing, call a professional to go through the document for you. You are bound to make mistakes, and the way to correct them is to get external help.

You should get a professional in your field who can relate to every section of your business plan. It would be easier for the professional to notice the inner flaws in the document than an editor with no knowledge of your business.

In addition to getting a professional to proofread, get an editor to proofread and edit your document. The editor will help you identify grammatical errors, spelling mistakes, and inappropriate writing styles.

Writing a business plan can be daunting, but you can surmount that obstacle and get the best out of it with these tips.

Business Plan Examples and Templates That’ll Save You Tons of Time

1. hubspot's one-page business plan.

The one-page business plan template by HubSpot is the perfect guide for businesses of any size, irrespective of their business strategy. Although the template is condensed into a page, your final business plan should not be a page long! The template is designed to ask helpful questions that can help you develop your business plan.

Hubspot’s one-page business plan template is divided into nine fields:

• Business opportunity
• Company description
• Industry analysis
• Target market
• Implementation timeline
• Marketing plan
• Financial summary
• Funding required

2. Bplan’s Free Business Plan Template

Bplans' free business plan template is investor-approved. It is a rich template used by prestigious educational institutions such as Babson College and Princeton University to teach entrepreneurs how to create a business plan.

The template has six sections: the executive summary, opportunity, execution, company, financial plan, and appendix. There is a step-by-step guide for writing every little detail in the business plan. Follow the instructions each step of the way and you will create a business plan that impresses investors or lenders easily.

3. HubSpot's Downloadable Business Plan Template

HubSpot’s downloadable business plan template is a more comprehensive option compared to the one-page business template by HubSpot. This free and downloadable business plan template is designed for entrepreneurs.

The template is a comprehensive guide and checklist for business owners just starting their businesses. It tells you everything you need to fill in each section of the business plan and how to do it.

There are nine sections in this business plan template: an executive summary, company and business description, product and services line, market analysis, marketing plan, sales plan, legal notes, financial considerations, and appendix.

4. Business Plan by My Own Business Institute

My Own Business Institute (MOBI) which is a part of Santa Clara University's Center for Innovation and Entrepreneurship offers a free business plan template. You can either copy the free business template from the link provided above or download it as a Word document.

The comprehensive template consists of a whopping 15 sections.

• The Business Profile
• The Vision and the People
• Home-Based Business and Freelance Business Opportunities
• Organization
• Licenses and Permits
• Business Insurance
• Communication Tools
• Acquisitions
• Location and Leasing
• Accounting and Cash Flow
• Opening and Marketing
• Managing Employees
• Expanding and Handling Problems

There are lots of helpful tips on how to fill each section in the free business plan template by MOBI.

5. Score's Business Plan Template for Startups

Score is an American nonprofit organization that helps entrepreneurs build successful companies. This business plan template for startups by Score is available for free download. The business plan template asks a whooping 150 generic questions that help entrepreneurs from different fields to set up the perfect business plan.

The business plan template for startups contains clear instructions and worksheets, all you have to do is answer the questions and fill the worksheets.

There are nine sections in the business plan template: executive summary, company description, products and services, marketing plan, operational plan, management and organization, startup expenses and capitalization, financial plan, and appendices.

The ‘refining the plan’ resource contains instructions that help you modify your business plan to suit your specific needs, industry, and target audience. After you have completed Score’s business plan template, you can work with a SCORE mentor for expert advice in business planning.

6. Minimalist Architecture Business Plan Template by Venngage

The minimalist architecture business plan template is a simple template by Venngage that you can customize to suit your business needs .

There are five sections in the template: an executive summary, statement of problem, approach and methodology, qualifications, and schedule and benchmark. The business plan template has instructions that guide users on what to fill in each section.

7. Small Business Administration Free Business Plan Template

The Small Business Administration (SBA) offers two free business plan templates, filled with practical real-life examples that you can model to create your business plan. Both free business plan templates are written by fictional business owners: Rebecca who owns a consulting firm, and Andrew who owns a toy company.

There are five sections in the two SBA’s free business plan templates.

• Executive Summary
• Company Description
• Service Line
• Marketing and Sales

8. The $100 Startup's One-Page Business Plan

The one-page business plan by the $100 startup is a simple business plan template for entrepreneurs who do not want to create a long and complicated plan . You can include more details in the appendices for funders who want more information beyond what you can put in the one-page business plan.

There are five sections in the one-page business plan such as overview, ka-ching, hustling, success, and obstacles or challenges or open questions. You can answer all the questions using one or two sentences.

9. PandaDoc’s Free Business Plan Template

The free business plan template by PandaDoc is a comprehensive 15-page document that describes the information you should include in every section.

There are 11 sections in PandaDoc’s free business plan template.

• Executive summary
• Business description
• Products and services
• Operations plan
• Management organization
• Financial plan
• Conclusion / Call to action
• Confidentiality statement

You have to sign up for its 14-day free trial to access the template. You will find different business plan templates on PandaDoc once you sign up (including templates for general businesses and specific businesses such as bakeries, startups, restaurants, salons, hotels, and coffee shops)

PandaDoc allows you to customize its business plan templates to fit the needs of your business. After editing the template, you can send it to interested parties and track opens and views through PandaDoc.

10. Invoiceberry Templates for Word, Open Office, Excel, or PPT

InvoiceBerry is a U.K based online invoicing and tracking platform that offers free business plan templates in .docx, .odt, .xlsx, and .pptx formats for freelancers and small businesses.

Before you can download the free business plan template, it will ask you to give it your email address. After you complete the little task, it will send the download link to your inbox for you to download. It also provides a business plan checklist in .xlsx file format that ensures you add the right information to the business plan.

Alternatives to the Traditional Business Plan

A business plan is very important in mapping out how one expects their business to grow over a set number of years, particularly when they need external investment in their business. However, many investors do not have the time to watch you present your business plan. It is a long and boring read.

Luckily, there are three alternatives to the traditional business plan (the Business Model Canvas, Lean Canvas, and Startup Pitch Deck). These alternatives are less laborious and easier and quicker to present to investors.

Business Model Canvas (BMC)

The business model canvas is a business tool used to present all the important components of setting up a business, such as customers, route to market, value proposition, and finance in a single sheet. It provides a very focused blueprint that defines your business initially which you can later expand on if needed.

The sheet is divided mainly into company, industry, and consumer models that are interconnected in how they find problems and proffer solutions.

Segments of the Business Model Canvas

The business model canvas was developed by founder Alexander Osterwalder to answer important business questions. It contains nine segments.

• Key Partners: Who will be occupying important executive positions in your business? What do they bring to the table? Will there be a third party involved with the company?
• Key Activities: What important activities will production entail? What activities will be carried out to ensure the smooth running of the company?
• The Product’s Value Propositions: What does your product do? How will it be different from other products?
• Customer Segments: What demography of consumers are you targeting? What are the habits of these consumers? Who are the MVPs of your target consumers?
• Customer Relationships: How will the team support and work with its customer base? How do you intend to build and maintain trust with the customer?
• Key Resources: What type of personnel and tools will be needed? What size of the budget will they need access to?
• Channels: How do you plan to create awareness of your products? How do you intend to transport your product to the customer?
• Cost Structure: What is the estimated cost of production? How much will distribution cost?
• Revenue Streams: For what value are customers willing to pay? How do they prefer to pay for the product? Are there any external revenues attached apart from the main source? How do the revenue streams contribute to the overall revenue?

Lean Canvas

The lean canvas is a problem-oriented alternative to the standard business model canvas. It was proposed by Ash Maurya, creator of Lean Stack as a development of the business model generation. It uses a more problem-focused approach and it majorly targets entrepreneurs and startup businesses.

Lean Canvas uses the same 9 blocks concept as the business model canvas, however, they have been modified slightly to suit the needs and purpose of a small startup. The key partners, key activities, customer relationships, and key resources are replaced by new segments which are:

• Problem: Simple and straightforward number of problems you have identified, ideally three.
• Solution: The solutions to each problem.
• Unfair Advantage: Something you possess that can't be easily bought or replicated.
• Key Metrics: Important numbers that will tell how your business is doing.

Startup Pitch Deck

While the business model canvas compresses into a factual sheet, startup pitch decks expand flamboyantly.

Pitch decks, through slides, convey your business plan, often through graphs and images used to emphasize estimations and observations in your presentation. Entrepreneurs often use pitch decks to fully convince their target audience of their plans before discussing funding arrangements.

Considering the likelihood of it being used in a small time frame, a good startup pitch deck should ideally contain 20 slides or less to have enough time to answer questions from the audience.

Unlike the standard and lean business model canvases, a pitch deck doesn't have a set template on how to present your business plan but there are still important components to it. These components often mirror those of the business model canvas except that they are in slide form and contain more details.

Using Airbnb (one of the most successful start-ups in recent history) for reference, the important components of a good slide are listed below.

• Cover/Introduction Slide: Here, you should include your company's name and mission statement. Your mission statement should be a very catchy tagline. Also, include personal information and contact details to provide an easy link for potential investors.
• Problem Slide: This slide requires you to create a connection with the audience or the investor that you are pitching. For example in their pitch, Airbnb summarized the most important problems it would solve in three brief points – pricing of hotels, disconnection from city culture, and connection problems for local bookings.
• Solution Slide: This slide includes your core value proposition. List simple and direct solutions to the problems you have mentioned
• Customer Analysis: Here you will provide information on the customers you will be offering your service to. The identity of your customers plays an important part in fundraising as well as the long-run viability of the business.
• Market Validation: Use competitive analysis to show numbers that prove the presence of a market for your product, industry behavior in the present and the long run, as well as the percentage of the market you aim to attract. It shows that you understand your competitors and customers and convinces investors of the opportunities presented in the market.
• Business Model: Your business model is the hook of your presentation. It may vary in complexity but it should generally include a pricing system informed by your market analysis. The goal of the slide is to confirm your business model is easy to implement.
• Marketing Strategy: This slide should summarize a few customer acquisition methods that you plan to use to grow the business.
• Competitive Advantage: What this slide will do is provide information on what will set you apart and make you a more attractive option to customers. It could be the possession of technology that is not widely known in the market.
• Team Slide: Here you will give a brief description of your team. Include your key management personnel here and their specific roles in the company. Include their educational background, job history, and skillsets. Also, talk about their accomplishments in their careers so far to build investors' confidence in members of your team.
• Traction Slide: This validates the company’s business model by showing growth through early sales and support. The slide aims to reduce any lingering fears in potential investors by showing realistic periodic milestones and profit margins. It can include current sales, growth, valuable customers, pre-orders, or data from surveys outlining current consumer interest.
• Funding Slide: This slide is popularly referred to as ‘the ask'. Here you will include important details like how much is needed to get your business off the ground and how the funding will be spent to help the company reach its goals.
• Appendix Slides: Your pitch deck appendix should always be included alongside a standard pitch presentation. It consists of additional slides you could not show in the pitch deck but you need to complement your presentation.

It is important to support your calculations with pictorial renditions. Infographics, such as pie charts or bar graphs, will be more effective in presenting the information than just listing numbers. For example, a six-month graph that shows rising profit margins will easily look more impressive than merely writing it.

Lastly, since a pitch deck is primarily used to secure meetings and you may be sharing your pitch with several investors, it is advisable to keep a separate public version that doesn't include financials. Only disclose the one with projections once you have secured a link with an investor.

Advantages of the Business Model Canvas, Lean Canvas, and Startup Pitch Deck over the Traditional Business Plan

• Time-Saving: Writing a detailed traditional business plan could take weeks or months. On the other hand, all three alternatives can be done in a few days or even one night of brainstorming if you have a comprehensive understanding of your business.
• Easier to Understand: Since the information presented is almost entirely factual, it puts focus on what is most important in running the business. They cut away the excess pages of fillers in a traditional business plan and allow investors to see what is driving the business and what is getting in the way.
• Easy to Update: Businesses typically present their business plans to many potential investors before they secure funding. What this means is that you may regularly have to amend your presentation to update statistics or adjust to audience-specific needs. For a traditional business plan, this could mean rewriting a whole section of your plan. For the three alternatives, updating is much easier because they are not voluminous.
• Guide for a More In-depth Business Plan: All three alternatives have the added benefit of being able to double as a sketch of your business plan if the need to create one arises in the future.

Business Plan FAQ

Business plans are important for any entrepreneur who is looking for a framework to run their company over some time or seeking external support. Although they are essential for new businesses, every company should ideally have a business plan to track their growth from time to time.  They can be used by startups seeking investments or loans to convey their business ideas or an employee to convince his boss of the feasibility of starting a new project. They can also be used by companies seeking to recruit high-profile employee targets into key positions or trying to secure partnerships with other firms.

Business plans often vary depending on your target audience, the scope, and the goals for the plan. Startup plans are the most common among the different types of business plans.  A start-up plan is used by a new business to present all the necessary information to help get the business up and running. They are usually used by entrepreneurs who are seeking funding from investors or bank loans. The established company alternative to a start-up plan is a feasibility plan. A feasibility plan is often used by an established company looking for new business opportunities. They are used to show the upsides of creating a new product for a consumer base. Because the audience is usually company people, it requires less company analysis. The third type of business plan is the lean business plan. A lean business plan is a brief, straight-to-the-point breakdown of your ideas and analysis for your business. It does not contain details of your proposal and can be written on one page. Finally, you have the what-if plan. As it implies, a what-if plan is a preparation for the worst-case scenario. You must always be prepared for the possibility of your original plan being rejected. A good what-if plan will serve as a good plan B to the original.

A good business plan has 10 key components. They include an executive plan, product analysis, desired customer base, company analysis, industry analysis, marketing strategy, sales strategy, financial projection, funding, and appendix. Executive Plan Your business should begin with your executive plan. An executive plan will provide early insight into what you are planning to achieve with your business. It should include your mission statement and highlight some of the important points which you will explain later. Product Analysis The next component of your business plan is your product analysis. A key part of this section is explaining the type of item or service you are going to offer as well as the market problems your product will solve. Desired Consumer Base Your product analysis should be supplemented with a detailed breakdown of your desired consumer base. Investors are always interested in knowing the economic power of your market as well as potential MVP customers. Company Analysis The next component of your business plan is your company analysis. Here, you explain how you want to run your business. It will include your operational strategy, an insight into the workforce needed to keep the company running, and important executive positions. It will also provide a calculation of expected operational costs.  Industry Analysis A good business plan should also contain well laid out industry analysis. It is important to convince potential investors you know the companies you will be competing with, as well as your plans to gain an edge on the competition. Marketing Strategy Your business plan should also include your marketing strategy. This is how you intend to spread awareness of your product. It should include a detailed explanation of the company brand as well as your advertising methods. Sales Strategy Your sales strategy comes after the market strategy. Here you give an overview of your company's pricing strategy and how you aim to maximize profits. You can also explain how your prices will adapt to market behaviors. Financial Projection The financial projection is the next component of your business plan. It explains your company's expected running cost and revenue earned during the tenure of the business plan. Financial projection gives a clear idea of how your company will develop in the future. Funding The next component of your business plan is funding. You have to detail how much external investment you need to get your business idea off the ground here. Appendix The last component of your plan is the appendix. This is where you put licenses, graphs, or key information that does not fit in any of the other components.

The business model canvas is a business management tool used to quickly define your business idea and model. It is often used when investors need you to pitch your business idea during a brief window.

A pitch deck is similar to a business model canvas except that it makes use of slides in its presentation. A pitch is not primarily used to secure funding, rather its main purpose is to entice potential investors by selling a very optimistic outlook on the business.

Business plan competitions help you evaluate the strength of your business plan. By participating in business plan competitions, you are improving your experience. The experience provides you with a degree of validation while practicing important skills. The main motivation for entering into the competitions is often to secure funding by finishing in podium positions. There is also the chance that you may catch the eye of a casual observer outside of the competition. These competitions also provide good networking opportunities. You could meet mentors who will take a keen interest in guiding you in your business journey. You also have the opportunity to meet other entrepreneurs whose ideas can complement yours.

Exlore Further

• 12 Key Elements of a Business Plan (Top Components Explained)
• 13 Sources of Business Finance For Companies & Sole Traders
• 5 Common Types of Business Structures (+ Pros & Cons)
• How to Buy a Business in 8 Steps (+ Due Diligence Checklist)

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Martin luenendonk.

Martin loves entrepreneurship and has helped dozens of entrepreneurs by validating the business idea, finding scalable customer acquisition channels, and building a data-driven organization. During his time working in investment banking, tech startups, and industry-leading companies he gained extensive knowledge in using different software tools to optimize business processes.

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

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9 Business Plan Examples to Inspire Your Own (2024)

Need support creating your business plan? Check out these business plan examples for inspiration and guidance.

Any aspiring entrepreneur researching how to start a business will likely be advised to write a business plan. But few resources provide business plan examples to really guide you through writing one of your own.

Here are some real-world and illustrative business plan examples to help you craft your business plan .

Business plan format: 9 examples

The business plan examples in this article follow this template:

• Executive summary
• Company description
• Market analysis
• Products and services
• Marketing plan
• Logistics and operations plan
• Financial plan
• Customer segmentation

1. Executive summary

Your executive summary is a page that gives a high-level overview of the rest of your business plan. While it appears at the beginning, it’s easiest to write this section last, as there are details further in the report you’ll need to include here.

In this free business plan template , the executive summary is four paragraphs and takes a little over half a page. It clearly and efficiently communicates what the business does and what it plans to do, including its business model and target customers.

2. Company description

You might repurpose your company description elsewhere, like on your About page , social media profile pages, or other properties that require a boilerplate description of your small business.

Soap brand ORRIS has a blurb on its About page that could easily be repurposed for the company description section of its business plan.

You can also go more in-depth with your company overview and include the following sections, like in this business plan example for Paw Print Post:

Business structure

This section outlines how you registered your business —as an LLC , sole proprietorship, corporation, or other business type : “Paw Print Post will operate as a sole proprietorship run by the owner, Jane Matthews.”

Nature of the business

“Paw Print Post sells unique, one-of-a-kind digitally printed cards that are customized with a pet’s unique paw prints.”

“Paw Print Post operates primarily in the pet industry and sells goods that could also be categorized as part of the greeting card industry.”

Background information

“Jane Matthews, the founder of Paw Print Post, has a long history in the pet industry and working with animals, and was recently trained as a graphic designer. She’s combining those two loves to capture a niche in the market: unique greeting cards customized with a pet’s paw prints, without needing to resort to the traditional (and messy) options of casting your pet’s prints in plaster or using pet-safe ink to have them stamp their ’signature.’”

Business objectives

“Jane will have Paw Print Post ready to launch at the Big Important Pet Expo in Toronto to get the word out among industry players and consumers alike. After two years in business, Jane aims to drive $150,000 in annual revenue from the sale of Paw Print Post’s signature greeting cards and to have expanded into two new product categories.”

“Jane Matthews is the sole full-time employee of Paw Print Post but hires contractors as needed to support her workflow and fill gaps in her skill set. Notably, Paw Print Post has a standing contract for five hours a week of virtual assistant support with Virtual Assistants Pro.”

Your mission statement may also make an appearance here. Passionfruit shares its mission statement on its company website, and it would also work well in its example business plan.

3. Market analysis

The market analysis consists of research about supply and demand , your target demographics, industry trends, and the competitive landscape. You might run a SWOT analysis and include that in your business plan. 

Here’s an example SWOT analysis for an online tailored-shirt business:

You’ll also want to do a competitive analysis as part of the market research component of your business plan. This will tell you which businesses you’re up against and give you ideas on how to differentiate your brand. A broad competitive analysis might include:

• Target customers
• Unique value proposition , or what sets the products apart
• Sales pitch
• Price points for products
• Shipping policy

4. Products and services

This section of your business plan describes your offerings—which products and services do you sell to your customers? Here’s an example for Paw Print Post that explains its line of custom greeting cards, along with details on what makes its products unique.

5. Marketing plan

It’s always a good idea to develop a marketing plan before you launch your business. Your marketing plan shows how you’ll get the word out about your business, and it’s an essential component of your business plan as well.

The Paw Print Post focuses on four Ps: price, product, promotion, and place. However, you can take a different approach with your marketing plan. Maybe you can pull from your existing marketing strategy , or maybe you break it down by the different marketing channels. Whatever approach you take, your marketing plan should describe how you intend to promote your business and offerings to potential customers.

6. Logistics and operations plan

The Paw Print Post example considered suppliers, production, facilities, equipment, shipping and fulfillment, and inventory. This includes any raw materials needed to produce the products.

7. Financial plan

The financial plan provides a breakdown of sales, revenue, profit, expenses, and other relevant financial metrics related to funding and profiting from your business.

Ecommerce brand Nature’s Candy’s financial plan breaks down predicted revenue, expenses, and net profit in graphs.

It then dives deeper into the financials to include:

• Funding needs
• Projected profit-and-loss statement
• Projected balance sheet
• Projected cash-flow statement

You can use a financial plan spreadsheet to build your own financial statements, including income statement, balance sheet, and cash-flow statement.

8. Customer segmentation

Customer segmentation means dividing your target market into groups based on specific characteristics. These characteristics can be demographics, psychographics, behavior, or geography. Your business plan will provide detailed information on each segment, like its size and growth potential, so you can show why they are valuable to your business. 

Airsign , an eco-friendly vacuum cleaner company, faced the challenge of building a sustainable business model in the competitive home appliance market. They identified three key customer personas to target:

• Design-oriented urban dwellers
• Millennials moving to suburbs
• Older consumers seeking high-quality appliances

The company utilized Shopify’s customer segmentation tools to gain insights and take action to target them. Airsign created targeted segments for specific marketing initiatives.

Put your customer data to work with Shopify’s customer segmentation

Shopify’s built-in segmentation tools help you discover insights about your customers, build segments as targeted as your marketing plans with filters based on your customers’ demographic and behavioral data, and drive sales with timely and personalized emails.

9. Appendix

The appendix provides in-depth data, research, or documentation that supports the claims and projections made in the main business plan. It includes things like market research, finance, résumés, product specs, and legal documents. 

Readers can access detailed info in the appendix, but the main plan stays focused and easy to read. Here’s an example from a fictional clothing brand called Bloom:

Appendix: Bloom Business Plan

Types of business plans, and what to include for each

This lean business plan is meant to be high level and easy to understand at a glance. You’ll want to include all of the same sections in one-page business plan, but make sure they’re truncated and summarized:

• Executive summary: truncated
• Market analysis: summarized
• Products and services: summarized
• Marketing plan: summarized
• Logistics and operations plan: summarized
• Financials: summarized

A startup business plan is for a new business. Typically, these plans are developed and shared to secure funding . As such, there’s a bigger focus on the financials, as well as on other sections that determine viability of your business idea—market research, for example:

• Market analysis: in-depth
• Financials: in-depth

Your internal business plan is meant to keep your team on the same page and aligned toward the same goal:

A strategic, or growth, business plan is a big-picture, long-term look at your business. As such, the forecasts tend to look further into the future, and growth and revenue goals may be higher. Essentially, you want to use all the sections you would in a normal business plan and build upon each:

• Market analysis: comprehensive outlook
• Products and services: for launch and expansion
• Marketing plan: comprehensive outlook
• Logistics and operations plan: comprehensive outlook
• Financials: comprehensive outlook

Feasibility

Your feasibility business plan is sort of a pre-business plan—many refer to it as simply a feasibility study. This plan essentially lays the groundwork and validates that it’s worth the effort to make a full business plan for your idea. As such, it’s mostly centered around research:

Nonprofit business plans are used to attract donors, grants, and partnerships. They focus on what their mission is, how they measure success, and how they get funded. You’ll want to include the following sections in addition to a traditional business plan:

• Organization description
• Need statement
• Programs and services
• Fundraising plan
• Partnerships and collaborations
• Impact measurement

Set yourself up for success as a business owner

Building a good business plan serves as a roadmap you can use for your ecommerce business at launch and as you reach each of your business goals. Business plans create accountability for entrepreneurs and synergy among teams, regardless of your business model .

Kickstart your ecommerce business and set yourself up for success with an intentional business planning process—and with the sample business plans above to guide your own path.

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Business plan examples FAQ

How do i write a simple business plan.

To write a simple business plan, begin with an executive summary that outlines your business and your plans. Follow this with sections detailing your company description, market analysis, organization and management structure, product or service, marketing and sales strategy, and financial projections. Each section should be concise and clearly illustrate your strategies and goals.

What is the best format to write a business plan?

The best business plan format presents your plan in a clear, organized manner, making it easier for potential investors to understand your business model and goals. Always begin with the executive summary and end with financial information or appendices for any additional data.

What are the 4 key elements of a business plan?

• Executive summary: A concise overview of the company’s mission, goals, target audience, and financial objectives.
• Business description: A description of the company’s purpose, operations, products and services, target markets, and competitive landscape.
• Market analysis: An analysis of the industry, market trends, potential customers, and competitors.
• Financial plan: A detailed description of the company’s financial forecasts and strategies.

What are the 3 main points of a business plan?

• Concept: Your concept should explain the purpose of your business and provide an overall summary of what you intend to accomplish.
• Contents: Your content should include details about the products and services you provide, your target market, and your competition.
• Cash flow: Your cash flow section should include information about your expected cash inflows and outflows, such as capital investments, operating costs, and revenue projections.

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Start With Your Idea

Craft Your Vision: Jumpstart your business journey with a brief description of your business. Acknowledge your business type and let us seamlessly transform it into a meticulously structured plan.

Series Of Guided Questions

Easily navigate through each section with Plannit's step-by-step guidance. Enter your own detailed solutions or leverage with AI-generated content and receive helpful prompts and ideas along the way. Plannit's AI capabilities provide insightful and precise content for market analysis, financial projections, marketing strategies, sales plan and more.

Collaborate With Your Partners

Bring your team over! PlannitAI provides a dedicated space where you can invite team members to view, shape and refine your online business plan. With or without the help of our AI model You can reword, rephrase, prolong and shorten sections to your liking. Collaborate in real-time to ensure your business strategy benefits from diverse insights and expertise, leading to a well-rounded and robust plan.

Present With Confidence

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Who can benefit from plannit.

Aspiring Entrepreneurs

Analyze your ventures through extensive business plans aligned with your vision and goals.

Business Owners

Back your business with a solid plan that aligns with your objectives. Perfect for small businesses.

Educational Institutions

Develop your business understanding and vocabulary by analyzing your business idea and creating a plan.

Startups Accelerators

Work alongside your founders as they build their plan to ensure they have a solid roadmap for scalability.

Funding Ready Business Plan

Executive summary, company overview.

Problem Statement

Business Description

Mission Statement

Business Model

Products and Services

Additional Features

Revenue Model

Market Analysis

Target Market

Market Size and Segments

Unique Value Proposition

Risks and Mitigations

Identified Risks

Mitigation Strategies

Financial Overview

Income Statement

Marketing and Sales Plan

Focus On Your Vision

Language support.

Key Features & Benefits

Ai editing companion.

Modify and regenerate sections of your business plan using premade or custom prompts. Our AI will help you refine your plan to perfection.

Multi-User Collaboration

Invite team members with easy sharing to collaborate on your business plan in real-time. Communicate and make changes together. Collaborate with your partners in real-time as you perfect your plan.

Education Center

Immerse yourself in a rich library of articles, tools, templates, webinars and resources for continuous business and professional growth. Learn all about the key aspects of starting, running and growing a business.

Powered by Chat GPT

Our algorithms are powered the latest in AI technology to ensure the most accurate and relevant output. We use OpenAI's GPT 4 and 3.5 engines for the perfect blend of accuracy and speed.

Business Resources

We recommend a variety of useful tools and resurces that help sustain your growth. We only recommend the best in the business. Filter your needs and equip yourself with the best tools.

Your plan in your language. We offer a choice of over 150 worldwide languages to ensure the best fit for your business plan.

Financial Projections

Take an additional questionnaire about your financial trajectory and get a detailed financial projection + 3 year income statement for your business.

Tools and Templates

Plannit's comprehensive suite that accompany business planning. From pitch decks to financial models, we have you covered.

Plan Export

Download your business plan in an editable .docx format. Fully edit & share your plan with investors, partners, and stakeholders.

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Frequently Asked Questions (FAQ)

• Initiate with Your Business Concept: Lay the Groundwork: Start by introducing your business idea into Plannit AI's Business Plan Generator. This first step is crucial, as it sets the tone for a tailored, insightful business plan that truly resonates with your vision. Capture the Essence: Our platform is designed to grasp the nuances of your concept, ensuring that the generated plan accurately reflects the core and potential of your business.
• Navigate Through the AI-Guided Questionnaire: Tailored Interactive Experience: Plannit AI’s AI-guided questionnaire is your interactive guide through the planning process. It meticulously gathers information about your business's objectives, strategies, and market positioning, ensuring a comprehensive and reflective plan. Intelligent Feedback and Suggestions: As you progress through the questionnaire, benefit from smart prompts and suggestions, ensuring that your plan is not just detailed but also strategically sound and aligned with industry standards.
• Generate Your Plan with Advanced AI: Intuitive Plan Creation: With the questionnaire complete, Plannit AI's advanced algorithms intelligently analyze your responses. They then craft a detailed, customizable, and strategically aligned business plan, providing you with a structured, coherent, and actionable format. Benefit from AI-Powered Insights: Plannit AI offers AI-driven insights and suggestions, ensuring your plan is not just a document but a strategic tool equipped with tailored AI prompts and an in-app plan editor. Get inspired by browsing through our sample business plans, a collection of successful strategies across various industries.
• Finalize Your Plan with Confidence: Dynamic Adaptation and Refinement: Plannit AI recognizes that a business plan is a living document. Our platform allows for continuous adaptation and refinement, ensuring your strategy remains agile, relevant, and aligned with your evolving business goals. Professional Presentation and Sharing: Once your plan meets your standards, utilize Plannit AI's export features to present your plan professionally. Choose between various formats for exporting your business plan, ready to impress stakeholders, attract investors, or guide your team. Review and Adapt: Ensure your business plan is a living document, ready to evolve with your growing business. Plannit AI's dynamic platform allows you to adapt your strategy as new opportunities or challenges arise.
• Roadmap for Success: At its core, a business plan acts as a strategic guide, providing detailed steps on how your business will achieve its objectives. It helps you navigate the startup phase, manage growth effectively, and tackle unforeseen challenges with a well-thought-out strategy.
• Securing Funding: For startups and businesses looking to expand, a business plan is crucial for securing loans or attracting investors. It demonstrates to potential financial backers that your business has a clear vision, a solid strategy for profitability, and a plan for delivering returns on their investment.
• Informed Decision-Making: A well-prepared business plan offers valuable insights into your market, competition, and potential challenges. This information is vital for making informed decisions, from day-to-day operations to long-term strategic shifts.
• Market Analysis and Strategy: It allows you to conduct an in-depth analysis of your target market, understand customer needs, and position your product or service effectively. The marketing strategy outlined in your business plan helps in identifying the best channels and tactics to reach your audience and achieve market penetration.
• Financial Planning: One of the most critical components of a business plan is the financial forecast. It outlines your funding requirements, expected revenue, profit margins, and cash flow projections. This section is essential for budgeting, financial management, and ensuring the financial viability of your business.
• Goal Setting and Performance Measurement: A business plan sets clear, measurable goals and objectives. It provides a framework for monitoring performance, measuring success, and making necessary adjustments to stay on track.
• Aspiring Entrepreneurs: If you're at the idea stage, looking to transform your vision into a viable business, Plannit AI offers the tools and guidance to bring your concept to life. Our platform helps you articulate your business idea, define your target market, and develop a solid plan to turn your dream into reality.
• Students and Educators: For students delving into the intricacies of business planning and educators teaching the fundamentals of entrepreneurship, Plannit AI serves as an invaluable resource. It provides a practical, hands-on tool for learning and teaching how to create detailed business plans, analyze markets, and understand financials in a real-world context.
• Startup Founders: In the dynamic startup environment, Plannit AI is the ideal partner for founders looking to pivot quickly, secure funding, or understand their competitive landscape. With our AI-driven insights and market analysis tools, startups can make informed decisions and adapt their strategies to thrive in competitive markets.
• Small Business Owners: For small business owners seeking to optimize their operations, expand their customer base, or explore new markets, Plannit AI offers targeted solutions. Our platform simplifies the planning process, enabling owners to focus on growth while managing the day-to-day challenges of running their business.
• Consultants and Freelancers: Consultants and freelancers specializing in business development, strategic planning, or financial advising will find Plannit AI a powerful addition to their toolkit. It allows them to provide clients with comprehensive, data-driven business plans and strategies, enhancing the value of their services.
• Non-Profit Organizations: Leaders of non-profit organizations can leverage Plannit AI to plan initiatives, secure funding, and manage resources more efficiently. Our platform helps non-profits articulate their mission, set achievable goals, and measure their impact, ensuring they can make a difference in their communities.
• Innovators and Inventors: Individuals looking to commercialize innovative products or technologies can use Plannit AI to navigate the complexities of bringing new ideas to market. From patent strategies to go-to-market plans, our platform covers all bases, ensuring innovators can focus on what they do best.
• Small Business Development Centers (SBDCs) and Government Agencies: Government and SBA backed entities can greatly benefit from integrating Plannit AI into their services, enhancing their ability to support a larger number of clients more efficiently. By facilitating quicker, more in-depth business plan development, these organizations can spend more time assisting with plan execution and less time on creation, ultimately serving their communities more effectively.
• Anyone with a Business Idea: Ultimately, Plannit AI is for anyone with a business idea, regardless of industry, experience, or stage of business development. Our mission is to democratize business planning, making it accessible, understandable, and actionable for everyone.
• Interactive Questionnaire and ChatGPT Integration: Plannit AI transforms the business planning process into an engaging conversation. Through our advanced ChatGPT integration, we offer a questionnaire that dynamically adapts to your responses, ensuring your plan is personalized, comprehensive, and aligned with your business goals.
• Dynamic Planning Environment: Unlike static templates provided by many, Plannit AI introduces a living platform that grows with your business. It features real-time updates, strategic insights, and a feedback mechanism that keeps your business plan current and actionable.
• Extensive Educational Resources: Our Education Center is packed with articles, guides, and sample plans to bolster your planning process. It's designed to arm you with the knowledge to navigate the complexities of your industry confidently.
• Enhanced Collaboration and Customization: Recognizing the collaborative essence of business planning, Plannit AI supports team efforts with multi-user editing, annotations, and feedback features, ensuring a comprehensive approach to your strategy.
• Customer Success Stories: Our users' achievements are a testament to Plannit AI's effectiveness. These success stories illustrate how diverse businesses have utilized our platform for strategic planning and growth.
• Tailored Business Plan Creation: Our platform stands out with its tailored approach, featuring customizable templates that directly cater to your business type and industry, making plan creation straightforward and relevant.
• Content Generation:: ChatGPT helps draft various sections of a business plan, from executive summaries to marketing strategies, by providing structured and coherent text based on the prompts given.
• Strategic Insights: It can offer suggestions on business strategies by analyzing trends and providing examples from a wide range of industries.
• Financial Planning: While it can't replace professional financial advice, ChatGPT can guide the structure of financial projections and statements, helping you consider important financial aspects of your plan.

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Original text

Do you want to increase the odds that your business startup will be a success? Download this step-by-step business plan template to lay the groundwork for your new business.

Writing a business plan allows you to carefully think through every step of starting your company so you can better prepare and handle any challenges. While a thorough business plan is essential in the financing process, it's helpful even if you don’t need outside financing.

Creating a business plan can:

• Help you discover any weaknesses in your business idea so you can address them before you open for business
• Identify business opportunities you may not have considered and plan how to take advantage of them
• Analyze the market and competition to strengthen your idea
• Give you a chance to plan strategies for dealing with potential challenges so they don’t derail your startup
• Convince potential partners, customers, and key employees that you’re serious about your idea and persuade them to work with you
• Force you to calculate when your business will make a profit and how much money you need to reach that point so that you can be prepared with adequate startup capital
• Determine your target market and how to reach them

A detailed, step-by-step plan gives you a blueprint you can refer to during the startup process and helps you maintain momentum.

What this business plan template includes

Writing a business plan for a startup can sometimes seem overwhelming. To make the process easier and more manageable, this template will guide you step-by-step. The template includes easy-to-follow instructions for completing each business plan section, questions to help you think through each aspect, and corresponding fillable worksheet/s for critical sections.

After you complete the 11 worksheets, you will have a working business plan for your startup to show your SCORE mentor .

Business plan sections covered in this template:

• Executive Summary
• Company Description
• Products and Services
• Marketing Plan
• Operational Plan
• Management and Organization
• Startup Expenses and Capitalization
• Financial Plan

The Appendices include documents that supplement information in the body of the plan.  These might be contracts, leases, purchase orders, intellectual property, key managers’ resumes, market research data or anything that supports assumptions or statements made in the plan.

The last section of the template, “Refining Your Plan,” explains ways to modify your plan for specific purposes, such as getting a bank loan, or for specific industries, such as retail or manufacturing.

Complete the Business Plan Template for a Startup Business to create a working business plan for your startup.

Then, contact a  SCORE mentor  to review and refine your plan online or in person.

Quick Start Business Plan The aim of this module is to give you the tools, direction and ideas you need to build a business plan. If you're starting a business then a business plan is essential, because it forces you to think through your ideas and options.

10 Business Planning Tips for Starting a Business In this webinar, you'll learn 10 business planning tips to help you start your entrepreneurial journey on the right path.

Business Plan 101: Sales & Marketing The sales and marketing section of your business plan describes how you intend to sell your product. Learn what you should include in this section.

Copyright © 2024 SCORE Association, SCORE.org

Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.

How to Make a Business Plan for a Startup | An Effective Startup Roadmap

Starting a new business can be an exciting but daunting journey. To navigate the complexities of entrepreneurship successfully, you need a roadmap�a business plan. A well-crafted business plan is not just a document; it’s a blueprint for your startup’s success. It captures the essence of your business concept, outlines strategies, analyses markets, and charts a path from concept to reality. In this detailed guide, we’ll go through every step of building a business plan for your company.

What Is the Significance of a Business Plan?

A business plan is more than just a basic document; it is a dynamic tool that is critical to the success of your business. Here are some reasons:

• Guiding Your Business:  A business plan serves as a road map for your firm, including its goals, strategies, and methods. It clarifies your professional objectives and supports your commitment to accomplishing them.
• Attracting Investors:  If you’re seeking external funding, investors and lenders often require a well-structured business plan to evaluate the potential of your startup. A convincing plan can increase your chances of securing financial support.
• Market Understanding:  A business plan gives you the chance to learn more about your industry, competitors, and target market via market research and analysis. Making educated judgements requires having access to this knowledge.
• Risk Mitigation:  A business plan gives you the ability to create strategies to successfully manage risks by allowing you to foresee prospective problems. It’s a preventative measure for defending your startup.
• Team Alignment:  Your business plan serves as a reference point for your team, ensuring everyone is on the same page regarding the startup’s mission, vision, and objectives. It provides clarity on roles and responsibilities.

After highlighting the significance of a business plan, let’s now describe how to write one for your startup.

An Overview of the Startup’s Business Concept

To create an overview of your startup’s core concept, include the following components:

• Business Vision, Mission, and Value Proposition:  Share your startup’s long-term vision, its mission statement, and a concise value proposition that highlights what sets your business apart.
• Relevant History or Milestones Achieved:  If your startup has any significant history or achievements, mention them here to showcase your progress.
• Business Structure:  Define your business structure, whether it’s a sole proprietorship, LLC, partnership, or corporation.
• Business Model:  Explain how your startup plans to generate revenue. Describe your pricing strategy and any unique business models you employ.
• Short- and Long-Term Business Objectives:  Outline your startup’s immediate and long-term goals. These objectives should align with your vision and mission.
• Introduction to Key Team Members:  Introduce the key members of your management team and their roles in the startup.

By providing this information, you not only offer a clear picture of your startup but also establish its identity and purpose.

Industry and Market

Making educated judgements and developing successful strategies requires a thorough understanding of the market and industry in which your business works. In this section, you must:

• Define Your Industry:  Identify the industry your startup is a part of, its current state (growing, stable, or declining), and any relevant industry trends.
• Analyse Market Trends:  Provide an analysis of trends within your industry, including emerging technologies, consumer preferences, and market dynamics.
• Identify Your Market Segment:  Define the specific market segment your startup targets. This could be a niche within the broader industry.
• Analyse Customer Needs:  Understand the needs and pain points of your target customers. Highlight how your startup addresses these needs.
• Competitive Landscape:  Provide insights into your competitors, including their strengths, weaknesses, and market positioning.
• Differentiation Strategy:  Explain how your startup plans to stand out in the market and differentiate itself from competitors.

Analysing the industry and market provides valuable context for your business plan and helps you develop strategies that align with market dynamics.

Target Market and Customer Demographics

For efficient marketing and sales techniques, it is essential to understand your target market and the demographic details of your prospective customers. Include the following:

• Provide geographic information about your target customers.
• Define the age groups that make up your customer base.
• Describe the educational background of your customers.
• Identify the industries or types of employers your customers are associated with.
• Understand the hobbies and interests of your target audience.
• Define the income levels of your potential customers.
• Explore the values, beliefs, and opinions that resonate with your target audience.
• If relevant, discuss how your customers engage in online shopping and their preferences in this regard.

Begin with a broad overview and then narrow your segmentation as you gather more data. Creating detailed customer personas can be a helpful tool in this process.

Key Strategies to Gain a Competitive Edge

The startup landscape is often highly competitive. Differentiate your startup by offering unique value to your customers. Address marketing, sales, and general business strategy gaps that your rivals may not have considered. Take into account the following:

• Value Proposition:  Reiterate your unique value proposition and how it resonates with customers.
• Innovation:  Discuss any new techniques, technology, or procedures that your startup employs. 
• Quality and Customer Service:  Show how your dedication to quality and great customer service distinguishes you.
• Marketing and Branding:  Emphasise your marketing techniques, including branding initiatives, content marketing, and consumer interaction methods.
• Partnerships and Alliances:  Discuss any partnerships or alliances that enhance your startup’s position in the market.
• Customer Retention:  Share strategies for retaining customers and fostering loyalty.

Products or Services of the Startup

Now, let’s dive deeper into the products or services your startup provides. This section should provide a comprehensive understanding of what you offer. Include the following details:

• Product or Service Description:  Provide a detailed description of your offerings, including features, benefits, and how they address customer needs.
• Competitive Advantages:  Explain what makes your products or services superior to those of your competitors.
• Problem Solving:  Highlight how your offerings solve specific problems or pain points for your target customers.
• Development Stage:  If applicable, specify the stage of development for your products or services (e.g., conceptual, prototype, market-ready).
• Intellectual Property:  Mention any intellectual property rights or patents associated with your offerings.
• Pricing Strategy:  Outline your pricing strategy, including any competitive pricing advantages.

A clear and compelling description of your products or services helps readers grasp their value and relevance in the market.

Legal Structure of the Startup

The legal structure of your startup is an essential aspect to address in your business plan. This section clarifies how your business is legally organised and operates. Include the following information:

• Business Entity:  Specify the legal structure of your startup, such as sole proprietorship, partnership, LLC, or corporation.
• Ownership Structure:  Detail the ownership distribution among founders, partners, or investors.
• Intellectual Property Rights:  If relevant, provide information on trademarks, copyrights, patents, or other intellectual property assets.
• Regulatory Compliance:  Explain how your startup adheres to local, state, and federal regulations.
• Contracts and Agreements:  Mention any critical contracts, agreements, or licences your business has or requires.

Addressing these legal aspects ensures transparency and compliance with legal requirements.

The Management Team and Their Role

The core of your startup is the management team. The knowledge, skills, and talents of the people running the business are frequently given a lot of weight by investors and stakeholders. Give thorough descriptions of your main team members in this area, emphasising their experience and responsibilities within the business.

Key team members to include:

• Management Team (such as the CEO, CTO, CFO, and any other relevant positions)
• Advisors and Board Members

Investors and other interested parties might want to know that your organisation has a capable staff in place to carry out the business strategy successfully. Outline the organization’s hierarchy, including the positions held by each team member and their respective reporting connections. This aids stakeholders in understanding the decision-making and collaboration processes of your team.

Important Marketing and Advertising Strategies

Your marketing plan outlines how you will attract and retain customers. Key elements of your marketing plan should include:

• Target Market : Describe your ideal customers in detail, including their demographics, preferences, and pain points.
• Market Segmentation : To successfully concentrate your marketing efforts, divide your target market into groups based on traits they have in common.
• Marketing Channels : Decide which marketing channels, including social media, content marketing, SEO, paid advertising, and more, you’ll use to reach your target audience.
• Marketing Budget : Allocate a budget for marketing activities and campaigns, specifying how funds will be allocated across various channels and campaigns.

Your marketing plan should be data-driven and adaptable, allowing you to measure the effectiveness of your strategies and make adjustments as needed. In this section, also detail your advertising strategies, which are specific tactics for promoting your product or service. Such as:

• Digital Advertising : Discuss your plans for online advertising, such as pay-per-click (PPC) campaigns, social media advertising, and display advertising.
• Traditional Advertising : If applicable, outline any traditional advertising methods you plan to use, such as print ads, radio, television, or direct mail.
• Influencer Marketing : Discuss any partnerships with influencers or industry experts to promote your product or service.
• Public Relations (PR) : Describe your PR strategy, including efforts to gain media coverage and build brand reputation.

Sales Channels and Distribution Methods

Your sales strategy outlines how you will convert leads and prospects into paying customers. It should align with your marketing efforts and customer acquisition goals.

• Sales Funnel : Describe the stages of your sales funnel, from lead generation to conversion. Explain how you plan to move prospects through each stage.
• Sales Team : If you have a sales team, provide details about their roles, responsibilities, and sales targets.
• Lead Generation : Explain your lead generation methods, such as inbound marketing, outbound sales calls, referrals, or networking.
• Customer Relationship Management (CRM) : Discuss the technology and tools you’ll use to manage customer connections and track sales possibilities.
• Sales Forecast : Include a sales estimate outlining your anticipated revenue based on various sales circumstances.

The methods of distribution you select will depend on the nature of your good or service. Explain how you will make your products and services available to customers. Various methods of distribution include:

• Direct Sales
• Retail Partnerships
• Distribution Partnerships
• Subscription Models
• Franchising

Choose distribution methods that align with your target market’s preferences and your startup’s scalability.

Estimating the Initial and Ongoing Financial Needs

One of the foundational elements of your business plan is estimating your startup’s initial and ongoing financial needs. This involves a meticulous evaluation of the capital required to launch and sustain your business. Start by identifying the following key expenses:

• Startup Costs : Estimate the costs associated with starting your firm. This may involve purchasing tools, authorizations, office space, costs for legal counsel, and preliminary marketing initiatives.
• Operating Costs : Calculate your monthly operating expenditures, including rent, utilities, staff wages, inventory, and marketing costs. For accuracy, be as specific as you can.
• Working Capital : Estimate the amount of working capital required to pay ongoing costs, particularly in the early phases when potential income is low.

How Will the Funds Be Utilised?

Once you’ve estimated your financial needs, it’s crucial to outline how the funds will be utilized. Break down your expenses into categories and specify the allocation of capital for each. For example:

• Product Development : Detail the investment required for research and development, prototyping, and product testing.
• Marketing and Sales : Describe your marketing plan and the budgetary allocation made for your advertising, promotional, and sales initiatives.
• Human Resources : If you want to hire staff, specify their job descriptions and provide a budget for their wages, benefits, and training.
• Operations : Specify how you will oversee daily tasks and allot money for rent, utilities, and upkeep.

Financial Forecasts

Financial forecasts are essential for demonstrating the viability of your startup to potential investors and stakeholders. Develop detailed income statements, balance sheets, and cash flow statements for at least the first three to five years of your business. These documents should reflect your revenue projections, expenses, and expected profits. Be sure to include realistic assumptions and projections, considering factors such as market trends, competition, and economic conditions.

Assumptions and Projections

In your business plan, explicitly outline the assumptions and projections upon which your financial forecasts are based. This transparency not only helps potential investors understand your thinking but also allows you to revisit and adjust your projections as circumstances change. Assumptions may include market growth rates, pricing strategies, customer acquisition costs, and sales volume.

From Concept to Reality

Transitioning your startup from concept to reality is a crucial phase in your business plan. This section should provide a comprehensive roadmap for the execution of your business idea. Consider including the following elements:

• Present your findings from market research, including target demographics, competition analysis, and market trends.
• Include any prototyping, testing, or iterations in your description of the development process for your product or service.
• Define your strategies for acquiring customers, your price structure, and your distribution methods in your marketing and sales plans.
• Describe the day-to-day operations of your company, including employees, suppliers, and logistics.

Timelines and Milestones

To add structure to your plan, establish timelines and milestones for key activities. Break down your startup’s development into manageable phases and set specific deadlines for achieving important milestones. This not only helps you stay on track but also provides a clear path for measuring progress.

Potential Risks and Challenges

Every business venture comes with inherent risks and challenges. In your business plan, identify these potential obstacles and outline your strategies for mitigating them. Consider risks related to market volatility, competition, regulatory changes, and even internal challenges such as team dynamics or resource limitations.

How to Mitigate The Risks?

After identifying potential risks, elaborate on your strategies for mitigating them. This demonstrates your proactive approach to handling adversity and can instill confidence in investors and stakeholders. For example:

• Diversification : If your business relies heavily on a single revenue stream, discuss how you plan to diversify your income sources to reduce risk.
• Contingency Planning : Outline contingency plans for scenarios like economic downturns, supply chain disruptions, or unexpected regulatory changes.
• Insurance : Explain how you plan to use insurance to protect against specific risks, such as liability or property damage.

Continuous Review and Adaptation of the Plan

Finally, emphasise the significance of continual evaluation and adaptation of your business strategy. Recognise that the business environment is changing and that flexibility in your approach is crucial for long-term success. Encourage frequent evaluations of your business’s financial performance, the state of the market, and consumer feedback. Show your dedication to making the required changes as you develop and learn.

For your startup to succeed, developing a business plan is a crucial initial step. It works as a tool to draw partners and investors in addition to aiding in the clarification of your goals and strategy. You’ll be more prepared to deal with the potential and problems of the startup world if you adhere to the procedures given in this thorough guide and invest the time and energy necessary to create a well-structured strategy. A business plan is not a static document but rather a dynamic roadmap that may change and expand with your startup’s expansion and evolving circumstances.

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How To Write A Business Plan: A Comprehensive Guide

The Startups Team

How To Write A Business Plan: A Comprehensive Guide

A comprehensive, step-by-step guide - complete with real examples - on writing business plans with just the right amount of panache to catch an investor's attention and serve as a guiding star for your business.

Introduction to Business Plans

So you've got a killer startup idea. Now you need to write a business plan that is equally killer.

You fire up your computer, open a Google doc, and stare at the blank page for several minutes before it suddenly dawns on you that,  Hm…maybe I have no idea how to write a business plan from scratch after all.

Don't let it get you down. After all, why would you know anything about business planning? For that very reason we have  4 amazing business plan samples  to share with you as inspiration.

For most founders,  writing a business plan  feels like the startup equivalent of homework. It's the thing you know you have to do, but nobody actually wants to do.

Here's the good news: writing a business plan doesn't have to be this daunting, cumbersome chore.

Once you understand the fundamental questions that your business plan should answer for your readers and how to position everything in a way that compels your them to take action, writing a business plan becomes way more approachable.

Before you set fingers to the keyboard to turn your business idea into written documentation of your organizational structure and business goals, we're going to walk you through the most important things to keep in mind (like company description, financials, and market analysis, etc.) and to help you tackle the writing process confidently — with plenty of real life business plan examples along the way to get you writing a business plan to be proud of!

Keep It Short and Simple.

There's this old-school idea that business plans need to be ultra-dense, complex documents the size of a doorstop because that's how you convey how serious you are about your company.

Not so much.

Complexity and length for complexity and length's sake is almost never a good idea, especially when it comes to writing a business plan. There are a couple of reasons for this.

1. Investors Are Short On Time

If your chief goal is using your business plan to secure funding, then it means you intend on getting it in front of an investor. And if there's one thing investors are, it's busy. So keep this in mind throughout writing a business plan.

Investors wade through hundreds of business plans a year. There's no version of you presenting an 80-page business plan to an investor and they enthusiastically dive in and take hours out of their day to pour over the thing front to back.

Instead, they're looking for you to get your point across as quickly and clearly as possible so they can skim your business plan and get to the most salient parts to determine whether or not they think your opportunity is worth pursuing (or at the very least initiating further discussions).

You should be able to refine all of the key value points that investors look for to 15-20 pages (not including appendices where you will detail your financials). If you find yourself writing beyond that, then it's probably a case of either over explaining, repeating information, or including irrelevant details in your business plan (you don't need to devote 10 pages to how you're going to set up your website, for example).

Bottom line: always be on the lookout for opportunities to “trim the fat" while writing a business plan (and pay special attention to the executive summary section below), and you'll be more likely to secure funding.

2. Know Your Audience

If you fill your business plan with buzzwords, industry-specific jargon or acronyms, and long complicated sentences, it might make sense to a handful of people familiar with your niche and those with superhuman attention spans (not many), but it alienates the vast majority of readers who aren't experts in your particular industry. And if no one can understand so much as your company overview, they won't make it through the rest of your business plan.

Your best bet here is to use simple, straightforward language that's easily understood by anyone — from the most savvy of investor to your Great Aunt Bertha who still uses a landline.

How To Format Your Business Plan

You might be a prodigy in quantum mechanics, but if you show up to your interview rocking cargo shorts and lime green Crocs, you can probably guess what the hiring manager is going to notice first.

In the same way,  how  you present your business plan to your readers equally as important as what you present to them. So don't go over the top with an extensive executive summary, or get lazy with endless bullet points on your marketing strategy.

If your business plan is laden with inconsistent margins, multiple font types and sizes, missing headings and page numbers, and lacks a table of contents, it's going to create a far less digestible reading experience (and totally take away from your amazing idea and hours of work writing a business plan!)

While there's no one  right  way to format your business plan, the idea here is to ensure that it presents professionally. Here's some easy formatting tips to help you do just that.

If your margins are too narrow, it makes the page look super cluttered and more difficult to read.

A good rule of thumb is sticking to standard one-inch margins all around.

Your business plan is made up of several key sections, like chapters in a book.

Whenever you begin a section (“Traction” for example) you'll want to signify it using a header so that your reader immediately knows what to expect from the content that follows.

This also helps break up your content and keep everything nice and organized in your business plan.

Subheadings

Subheadings are mini versions of headings meant to break up content within each individual section and capture the attention of your readers to keep them moving down the page.

In fact, we're using sub-headers right now in this section for that very purpose!

Limit your business plan to two typefaces (one for headings and one for body copy and subheadings, for example) that you can find in a standard text editor like Microsoft Word or Google Docs.

Only pick fonts that are easy to read and contain both capital and lowercase letters.

Avoid script-style or jarring fonts that distract from the actual content. Modern, sans-serif fonts like Helvetica, Arial, and Proxima Nova are a good way to go.

Keep your body copy between 11 and 12-point font size to ensure readability (some fonts are more squint-inducing than others).

You can offset your headings from your body copy by simply upping the font size and by bolding your subheadings.

Sometimes it's better to show instead of just tell.

Assume that your readers are going to skim your plan rather than read it word-for-word and treat it as an opportunity to grab their attention with color graphics, tables, and charts (especially with financial forecasts), as well as product images, if applicable.

This will also help your reader better visualize what your business model is all about.

Need some help with this?

Our  business planning wizard  comes pre-loaded with a modular business plan template that you can complete in any order and makes it ridiculously easy to generate everything you need from your value proposition, mission statement, financial projections, competitive advantage, sales strategy, market research, target market, financial statements, marketing strategy, in a way that clearly communicates your business idea.

Refine Your Business Plans. Then Refine Them Some More.

Your business isn't static, so why should your business plan be?

Your business strategy is always evolving, and so are good business plans. This means that the early versions of your business plans probably won't (and shouldn't be) your last. The details of even even the best business plans are only as good as their last update.

As your business progresses and your ideas about it shift, it's important revisit your business plan from time to time to make sure it reflects those changes, keeping everything as accurate and up-to-date as possible. What good is market analysis if the market has shifted and you have an entirely different set of potential customers? And what good would the business model be if you've recently pivoted? A revised business plan is a solid business plan. It doesn't ensure business success, but it certainly helps to support it.

This rule especially holds true when you go about your market research and learn something that goes against your initial assumptions, impacting everything from your sales strategy to your financial projections.

At the same time, before you begin shopping your business plan around to potential investors or bankers, it's imperative to get a second pair of eyes on it after you've put the final period on your first draft.

After you run your spell check, have someone with strong “English teacher skills” run a fine-tooth comb over your plan for any spelling, punctuation, and grammatical errors you may have glossed over. An updated, detailed business plan (without errors!) should be constantly in your business goals.

More than that, your trusty business plan critic can also give you valuable feedback on how it reads from a stylistic perspective. While different investors prefer different styles, the key here is to remain consistent with your audience and business.

Writing Your Business Plan: A Section-By-Section Breakdown

We devoted an entire article carefully breaking down the  key components of a business plan  which takes a comprehensive look of what each section entails and why.

If you haven't already, you should check that out, as it will act as the perfect companion piece to what we're about to dive into in a moment.

For our purposes here, we're going to look at a few real world business plan examples (as well as one of our own self-penned “dummy” plans) to give you an inside look at how to position key information on a section-by-section basis.

1. Executive Summary

Quick overview.

After your Title Page — which includes your company name, slogan (if applicable), and contact information — and your Table of Contents, the Executive Summary will be the first section of actual content about your business.

The primary goal of your Executive Summary is to provide your readers with a high level overview of your business plan as a whole by summarizing the most important aspects in a few short sentences. Think of your Executive Summary as a kind of “teaser” for your business concept and the information to follow — information which you will explain in greater detail throughout your plan. This isn't the place for your a deep dive on your competitive advantages, or cash flow statement. It is an appropriate place to share your mission statement and value proposition.

Executive Summary Example

Here's an example of an Executive Summary taken from a sample business plan written by the Startups.com team for a fictional company called Culina. Here, we'll see how the Executive Summary offers brief overviews of the  Product ,  Market Opportunity ,  Traction , and  Next Steps .

Culina Tech specializes in home automation and IoT technology products designed to create the ultimate smart kitchen for modern homeowners.

Our flagship product, the Culina Smart Plug, enables users to make any kitchen appliance or cooking device intelligent. Compatible with all existing brands that plug into standard two or three-prong wall outlets, Culina creates an entire network of Wi-Fi-connected kitchen devices that can be controlled and monitored remotely right from your smartphone.

The majority of US households now spend roughly 35% of their energy consumption on appliances, electronics, and lighting.  With the ability to set energy usage caps on a daily, weekly or monthly basis, Culina helps homeowners stay within their monthly utility budget through more efficient use of the dishwasher, refrigerator, freezer, stove, and other common kitchen appliances.

Additionally, 50.8% of house fires are caused in the kitchen — more than any other room in the home — translating to over $5 billion in property damage costs per year.  Culina provides the preventative intelligence necessary to dramatically reduce kitchen-related disasters and their associated costs and risk of personal harm.

Our team has already completed the product development and design phase, and we are now ready to begin mass manufacturing. We've also gained a major foothold among consumers and investors alike, with 10,000 pre-ordered units sold and $5 million in investment capital secured to date.

We're currently seeking a $15M Series B capital investment that will give us the financial flexibility to ramp up hardware manufacturing, improve software UX and UI, expand our sales and marketing efforts, and fulfill pre-orders in time for the 2018 holiday season.

2. Company Synopsis

Your Company Synopsis section answers two critically important questions for your readers: What painful  PROBLEM  are you solving for your customers? And what is your elegant  SOLUTION  to that problem? The combination of these two components form your value proposition.

Company Synopsis Example

Let's look at a real-life company description example from  HolliBlu * — a mobile app that connects healthcare facilities with local skilled nurses — to see how they successfully address both of these key aspects.  *Note: Full disclosure; Our team worked directly with this company on their business plan via Fundable.

Notice how we get a crystal clear understanding of why the company exists to begin with when they set up the  problem  — that traditional nurse recruitment methods are costly, inconvenient, and time-consuming, creating significant barriers to providing quality nursing to patients in need.

Once we understand the painful problem that HolliBlu's customers face, we're then directly told how their  solution  links back directly to that problem — by creating an entire community of qualified nurses and directly connecting them with local employers more cost-effectively and more efficiently than traditional methods.

3. Market Overview

Your Market Overview provides color around the industry that you will be competing in as it relates to your product/service.

This will include statistics about industry size, [growth](https://www.startups.com/library/expert-advice/the-case-for-growing-slowly) rate, trends, and overall outlook. If this part of your business plan can be summed up in one word, it's  research .

The idea is to gather as much raw data as you can to make the case for your readers that:

This is a market big enough to get excited about.

You can capture a big enough share of this market to get excited about.

Target Market Overview Example

Here's an example from HolliBlu's business plan:

HolliBlu's Market Overview hits all of the marks — clearly laying out the industry size ($74.8 billion), the Total Addressable Market or TAM (3 million registered nurses), industry growth rate (581,500 new RN jobs through 2018; $355 billion by 2020), and industry trends (movement toward federally-mandated compliance with nurse/patient ratios, companies offering sign-on bonuses to secure qualified nurses, increasing popularity of home-based healthcare).

4. Product (How it Works)

Where your Company Synopsis is meant to shed light on why the company exists by demonstrating the problem you're setting out to solve and then bolstering that with an impactful solution, your Product or How it Works section allows you to get into the nitty gritty of how it actually delivers that value, and any competitive advantage it provides you.

Product (How it Works) Example

In the below example from our team's Culina sample plan, we've divided the section up using subheadings to call attention to product's  key features  and how it actually works from a user perspective.

This approach is particularly effective if your product or service has several unique features that you want to highlight.

5. Revenue Model

Quite simply, your Revenue Model gives your readers a framework for how you plan on making money. It identifies which revenue channels you're leveraging, how you're pricing your product or service, and why.

Revenue Model Example

Let's take a look at another real world business plan example with brewpub startup  Magic Waters Brewpub .*

It can be easy to get hung up on the financial aspect here, especially if you haven't fully developed your product yet. And that's okay. *Note: Full disclosure; Our team worked directly with this company on their business plan via Fundable.

The thing to remember is that investors will want to see that you've at least made some basic assumptions about your monetization strategy.

6. Operating Model

Your Operating Model quite simply refers to how your company actually runs itself. It's the detailed breakdown of the processes, technologies, and physical requirements (assets) that allow you to deliver the value to your customers that your product or service promises.

Operating Model Example

Let's say you were opening up a local coffee shop, for example. Your Operating Model might detail the following:

Information about your facility (location, indoor and outdoor space features, lease amount, utility costs, etc.)

The equipment you need to purchase (coffee and espresso machines, appliances, shelving and storage, etc.) and their respective costs.

The inventory you plan to order regularly (product, supplies, etc.), how you plan to order it (an online supplier) and how often it gets delivered (Mon-Fri).

Your staffing requirements (including how many part or full time employees you'll need, at what wages, their job descriptions, etc.)

In addition, you can also use your Operating Model to lay out the ways you intend to manage the costs and efficiencies associated with your business, including:

The  Critical Costs  that make or break your business. In the case of our coffee shop example, you might say something like,

“We're estimating the marketing cost to acquire a customer is going to be $25.  Our average sale is $45.  So long as we can keep our customer acquisition costs below $25 we will have enough margin to grow with.”

Cost Maturation & Milestones  that show how your Critical Costs might fluctuate over time.

“If we sell 50 coffees a day, our average unit cost will be $8 on a sale of $10.  At that point we're barely breaking even. However as we scale up to 200 coffees a day, our unit costs drop significantly to $4, creating a 100% increase in net income.”

Investment Costs  that highlight strategic uses of capital that will have a big Return on Investment (ROI) later.

“We're investing $100,000 into a revolutionary new coffee brewing system that will allow us to brew twice the amount our current output with the same amount of space and staff.”

Operating Efficiencies  explaining your capability of delivering your product or service in the most cost effective manner possible while maintaining the highest standards of quality.

“By using energy efficient Ecoboilers, we're able to keep our water hot while minimizing the amount of energy required. Our machines also feature an energy saving mode. Both of these allow us to dramatically cut energy costs.”

7. Competitive Analysis

Like the Market Overview section, you want to show your readers that you've done your homework and have a crazy high level of awareness about your current competitors or any potential competitors that may crop up down the line for your given business model.

When writing your Competitive Analysis, your overview should cover  who  your closest competitors are, the chief  strengths  they bring to the table, and their biggest  weaknesses .

You'll want to identify at least 3 competitors — either direct, indirect, or a combination of the two. It's an extremely important aspect of the business planning process.

Competition Analysis Example

Here's an example of how HolliBlu lays out their Competitive Analysis section for just one of their competitors, implementing each of the criteria noted above:

8. Customer Definition

Your Customer Definition section allows you to note which customer segment(s) you're going after, what characteristics and habits each customer segment embodies, how each segment uniquely benefits from your product or service, and how all of this ties together to create the ideal portrait of an actual paying customer, and how you'll cultivate and manage customer relationships.

Customer Definition Example

HolliBlu's Customer Definition section is effective for several reasons. Let's deconstruct their first target market segment, hospitals.

What's particularly successful here is that we are explained why hospitals are optimal buyers.

They accomplish this by harkening back to the central problem at the core of the opportunity (when hospitals can't supply enough staff to meet patient demands, they have to resort on costly staffing agencies).

On top of that, we are also told how  big  of an opportunity going after this customer segment represents (5,534 hospitals in the US).

This template is followed for each of the company's 3 core customer segments. This provides consistency, but more than that, it emphasizes how diligent research reinforces their assumptions about who their customers are and why they'd open their wallets. Keep all of this in mind when you are write your own business plan.

9. Customer Acquisition

Now that you've defined who your customers are for your readers, your Customer Acquisition section will tell them what marketing and sales strategy and tactics you plan to leverage to actually reach the target market (or target markets) and ultimately convert them into paying customers.

marketing Strategy Example

Similar to the exercise you will go through with your Revenue Model, in addition to identifying  which  channels you're pursuing, you'll also want to detail all of relevant costs associated with your customer acquisition channels.

Let's say you spent $100 on your marketing plan to acquire 100 customers during 2018. To get your CAC, you simply divide the number of customers acquired by your spend, giving you a $1.00 CAC.

10. Traction

This one's huge. Traction tells investors one important thing: that you're business has momentum. It's evidence that you're making forward progress and hitting milestones. That things are happening. It's one of the most critical components of a successful business plan.

Why is this so important? Financial projections are great and all, but if you can prove to investors that your company's got legs before they've even put a dime into it, then it will get them thinking about all the great things you'll be able to accomplish when they do bankroll you.

Traction Example

In our Culina Traction section, we've called attention to several forms of traction, touching on some of the biggest ones that you'll want to consider when writing your own plan.

Have I built or launched my product or service yet?

Have I reached any customers yet?

Have I generated any revenue yet?

Have I forged any strategic industry relationships that will be instrumental in driving growth?

The key takeaway here: the more traction you can show, the more credibility you build with investors. After all, you can't leave it all on market analysis alone.

11. Management Team

Here's what your Management Team section isn't: it's not an exhaustive rundown of each and every position your team members have held over the course of their lives.

Instead, you should tell investors which aspects of your team's experience and expertise directly translates to the success of  this  company and  this  industry.

In other words, what applicable, relevant background do they bring to the table?

Management Team Example

Let's be real. The vast majority of startup teams probably aren't stacked with Harvard and Stanford grads. But the thing to home in on is how the prior experience listed speaks directly to how it qualifies that team member's current position.

The word of the day here is relevancy. If it's not relevant, you probably don't need to include it in your typical business plan.

12. Funding

Funding overview.

The ask! This is where you come out and, you guessed it,  ask  your investors point blank how much money you need to move your business forward, what specific milestones their investment will allow you to reach, how you'll allocate the capital you secure, and what the investor will get in exchange for their investment.

You can also include information about your  exit strategy  (IPO, acquisition, merger?).

Funding Example

While we've preached against redundancy in your business plan, an exception to the rule is using the Funding section to offer up a very brief recap that essentially says, “here are the biggest reasons you should invest in my company and why it will ultimately benefit you.”

13. Financials

Spreadsheets and numbers and charts, oh my! Yes, it's everybody's “favorite” business plan section: Financials.

Your Financials section will come last and contain all of the forecasted numbers that say to investors that this is a sound investment. This will include things like your sales forecast, expense budget, and break-even analysis. A lot of this will be assumptions, or estimates.

The key here is keeping those estimates as realistic as humanly possible by breaking your figures into components and looking at each one individually.

Financials Example

The balance sheet above illustrates the business' estimated net worth over a three-year period by summarizing its assets (tangible objects owned by the company), liabilities (debt owed to a creditor of the company), and shareholders' equity (source of financing used to fund the assets).

In plain words, the balance sheet is basically a snapshot of your business' financial status by laying out what you own and owe, helping investors determine the level of risk involved and giving them a good understanding of the financial health of the business.

If you're looking to up your game from those outdated Excel-style spreadsheets,  our business planning software  will help you create clean, sleek, modern financial reports the modern way. Plus, it's as easy to use as it is attractive to look at. You might even find yourself enjoying financial projections, building a cash flow statement, and business planning overall.

You've Got This!

You've committed to writing your business plan and now you've got some tricks of the trade to help you out along the way. Whether you're applying for a business loan or seeking investors, your well-crafted business plan will act as your Holy Grail in helping take your business goals to the next plateau.

This is a ton of work. It's not a few hours and a free business plan template. It's not just a business plan software. We've been there before. Writing your [business plan](https://www.startups.com/library/expert-advice/top-4-business-plan-examples) is just one small step in startup journey. There's a whole long road ahead of you filled with a marketing plan, investor outreach, chasing venture capitalists, actually getting funded, and growing your business into a successful company.

And guess what? We've got helpful information on all of it — and all at your disposal! We hope this guides you confidently on how to write a business plan worth bragging about.

Ronald Calderon

Great info for feedback my current business plan!

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How to Write a Business Plan for a Startup

Last Updated: December 22, 2023 Fact Checked

This article was co-authored by Jack Herrick . Jack Herrick is an American entrepreneur and wiki enthusiast. His entrepreneurial projects include wikiHow, eHow, Luminescent Technologies, and BigTray. In January 2005, Herrick started wikiHow with the goal of creating "the how-to guide for everything." He has a Master of Business Administration (MBA) from Dartmouth College. There are 13 references cited in this article, which can be found at the bottom of the page. This article has been fact-checked, ensuring the accuracy of any cited facts and confirming the authority of its sources. This article has been viewed 118,598 times.

As a startup, you will need a business plan. For example, you will need to show your plan to a bank if you are seeking a loan. You also need to show the plan to any investor. Business plans are helpful because they force you to step back and analyze your business critically. You should consider your target market, the products or services you will offer, and your projected finances. Writing a business plan isn’t difficult, though it will require considerable research and planning.

Explaining Your Marketing Plan

• Your mission. What is your driving goal every day? Don’t simply write, “Make money.” Identify how you will make money. For example, you can write: “Our mission is to offer residents of the Lakeview neighborhood the best day spa experience in the Near North Side of Chicago. We are committed to providing value and quality in a fun atmosphere that is never predictable.”
• Your goals. For example, a day spay might have the following goal: “To attract a minimum of 35 customers each day in the first year of operations.” Make your goals as concrete as possible.
• Description of the industry. Explain whether the industry is growing or poised for growth in the short and long term.
• The factors that will drive your success. How will you set yourself apart? For example, “You All Day will separate itself from the pack based on the owner’s deep experience running a day spa in Seattle for ten years. This experience includes familiarity with successful marketing techniques and trends analysis.”
• Your legal form. Are you a sole proprietorship, partnership, limited liability company (LLC), or corporation? Also explain why you selected this form.

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Don’t skimp on how much energy and time you put into your mission. When asked about creating wikiHow’s mission, Jack Herrick, founder of wikiHow, responded: “We had the whole management team — alongside members of the wikiHow community — reviewing it, discussing it, and going back and forth on the wording. Those two sentences were many hours of work.”

• You can search for industry information in other places. For example, talk to people in your industry at trade shows. Also search online. Many industries have trade associations, which have websites with information.
• For example, when analyzing the day spa industry, you might want to talk about how it is growing because more upper-income men in urban areas are visiting. (If that’s true).
• By analyzing the industry, you gain insight as to your likely target market and how you can reach them.

• Age. What is the average age of your likely customer? If you don’t know, then visit similar businesses and note the ages of the clientele.
• Gender. Will men or women—or both—primarily use your products or services?
• Location. Generally, your market will be located near your business. However, if you have a web-based business, your target audience could have no geographic boundaries.
• Income level.
• Occupation. For example, a day spa might target stressed-out white collar professionals.
• Education level. There is often a link between education, income, and occupation—though not always. For example, a discount bookstore might target an educated audience that nevertheless has a lower income.

• To find competitors, look in the phone book and do a general Google search. Make sure to read their website and stop into the business.
• If you’re opening a restaurant, you’ll want to see a sample menu, as well as the hours of operation.
• Also identify indirect competitors. For example, a day spa is competing with more than other spas. You also compete with any business that offers relaxation, such as massage parlors or meditation centers.
• Name of your competitor.
• What you offer that they don’t. Think about products and services, but also location, ease of ordering, etc. What will make the consumer experience different at your business?
• What they offer that you don’t. Identify why you don’t offer their products or services. For example, they may be serving multiple niches while you are focused on only one. Alternately, they may have a favorable location.

• Whether you will sell pizza by the slice, as whole pies, or both
• How big your pizzas will be
• What toppings your customers can offer
• If you will have take-out and delivery options
• What other food items will be sold

• What type of advertising or promotion will you use? How often will you use paid promotion?
• What other promotion other than paid advertising will you use? For example, you might use social media, professional networks, etc.
• Will you create a logo and use it on cards, letterhead, websites, etc.?
• How large will your promotional budget be?

Discussing Your Business Organization

• State how much you expect to pay each employee in your first three years of business.
• Also name your professional support, such as your business lawyer, accountant, and insurance agent. Professionals are independent contractors you use but don’t employ. Calculate how much you expect to spend on each professional.

• You might write: “Lisa Jones is the sole proprietor of You All Day and will run day-to-day operations. As a certified massage therapist, she ran the Relax! chain of day spas in the Greater Seattle area for ten years. A former accountant, Lisa has an MS in accounting from the University of New Hampshire and worked as a CPA briefly before going into the spa business.”
• If you are asking for a loan, then include resumes for each owner. You can put them in the appendix at the end of the document.

• You should create professional-looking financial statements using a spreadsheet.
• You’ll have to gather quite a bit of information to make the financial statement. For example, you will need information on your assets, investments, and personal debts.
• You might also want to get a free copy of your credit report and review it as you draft your business plan.

Analyzing Business Finances

• Common startup costs include insurance, licenses, equipment, advertising, and employee expenses. [9] X Trustworthy Source U.S. Small Business Administration U.S. government agency focused on supporting small businesses Go to source
• Also identify the source of the startup capital. For example, if your startup has three initial owners, state how much each is contributing to the business and their ownership percentage.
• If you need financing, state how much. Include the terms of any proposed loan.

• You’ll need to make some assumptions in order to come up with a forecast of sales. You should explain these assumptions in your business plan.
• For example, you can write, “We assume continued interest in day spas in the Chicago area.”
• Another assumption is the overall health of the economy. “Although the Chicagoland economy has grown more slowly than other regions of the country, we assume that the Chicago economy will grow on par with other large metropolitan areas in the coming decade.”
• You can also include a four-year projection, though this is optional.

• Also talk about how you will build up your cash reserves. For example: “In addition to normal cash flow, we will focus on obtaining sufficient cash reserves for emergencies. These reserves include a line of credit with a bank, which we can use when business is slow. We will also invest excess cash in certificates of deposits at our bank.”

• Fixed costs: these don’t vary depending on your sales volume. For example, your rent, employee salaries, and insurance are fixed costs.
• Variable costs: these fluctuate depending on your sales and include shipping, inventory, and manufacturing costs.

Finishing Your Business Plan

• Add a cover page to your document. You can title it “[Company Name]’s Business Plan” or “Business Plan for [Your Name].” If you have a logo, include that too.

• For example, you can write, “You All Day is a start-up dedicated to providing men and women in Chicago a high-quality day spa experience at an affordable price. We specialize in pedicures, manicures, massage, and herbal aromatherapy. The Near North Side of Chicago has grown substantially over the past 20 years, with young, educated millennials settling in to start families. This area is currently under served, and we hope You All Day can meet the demand of the local market.”

• Executive Summary
• Company Description
• Industry Analysis
• Market and Competition
• Products and Services
• Marketing and Sales Plan
• Operations and Management
• Financial Forecasts
• Exhibits/Appendix

• Review for typos and other errors. An accountant should check your numbers to make sure they are accurate.
• Analyze the overall presentation. Is the information crammed in so that the document is tiring to read? If so, spread out the information so that there is a lot of white space on each page.
• You can also show the plan to a business adviser. If you live in the U.S., you can show it to someone at your nearest Small Business Development Center, which provides help drafting business plans. You can find your nearest SBDC by visiting this website: https://www.sba.gov/tools/local-assistance/sbdc .

• You might want to include tabbed partitions between each section of your business plan. This will make it easier for someone to flip through it and find what they are looking for.

Expert Q&A

• Don’t be afraid to change your business plans as you research and draft the document. That’s one of the reasons for writing the plan in the first place. For example, you might have intended to target women as consumers only to realize that there are growth opportunities with men. You can adjust your plans accordingly. Thanks Helpful 1 Not Helpful 0

You Might Also Like

• ↑ https://business.vic.gov.au/business-information/marketing-and-sales/increasing-sales-through-marketing/do-market-research
• ↑ https://openstax.org/books/entrepreneurship/pages/7-5-reality-check-contests-and-competitions
• ↑ https://www.sba.gov/business-guide/plan-your-business/market-research-competitive-analysis
• ↑ https://www.indeed.com/career-advice/career-development/business-plan-product-description
• ↑ https://business.gov.au/planning/business-plans/develop-your-marketing-plan
• ↑ https://openstax.org/books/entrepreneurship/pages/11-4-the-business-plan
• ↑ https://www.sba.gov/business-guide/plan-your-business/calculate-your-startup-costs
• ↑ https://www.alberta.ca/preparing-financial-projections-and-monitoring-results.aspx
• ↑ https://www.pwc.com/gx/en/services/entrepreneurial-private-business/small-business-solutions/blogs/preparing-a-cash-flow-forecast-simple-steps-for-vital-insight.html
• ↑ https://www.sba.gov/business-guide/plan-your-business/write-your-business-plan
• ↑ https://smallbusinessbc.ca/article/5-reasons-business-plan-review/

About This Article

To write a business plan for a startup, break your plan up into several sections, including an executive summary, a description of your company, an industry analysis, market and competition information, your products and services, your marketing and sales plan, operations and management information, your financial forecasts, and finally, an appendix. To format your business plan, use a professional font, like Times New Roman, and include a cover page with your company's name and logo on it. To learn how to write each section of your business plan, read on! Did this summary help you? Yes No

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• Small Business Ideas

100 Small Business Ideas for Anyone Who Wants to Run Their Own Business

• Aug 27, 2024

Starting your own small business can be an exciting and rewarding experience. Whether you're looking to supplement your income or become your own boss full-time, there are countless small business ideas you can explore. The key to success is finding the right idea that aligns with your skills, interests, and the market demand. With a little planning and determination, you can launch a business that not only sustains you but also fulfills your passions.

To help inspire you, here are 100 small business ideas divided into different categories, ranging from home-based businesses to online opportunities and creative ventures.

What Makes a Good Small Business Idea?

Before diving into specific business ideas, it’s important to understand the qualities that make for a good small business idea:

Low Setup Costs: Ideally, your business idea should be cost-effective to start with minimal upfront investment.

Leverages Existing Skills: A good business idea will utilize your existing skills and require little to no formal training.

Flexible and Scalable: Your business should be flexible, allowing you to grow and expand as demand increases.

Based on Market Demand: Your business should fulfill a specific need or solve a problem in the market.

Can Be Run From Home: Many great small businesses can be started from home with minimal inventory or equipment.

Let’s explore some of the best small business ideas to inspire your entrepreneurial journey.

Best Small Business Ideas

Handyman Services

Offer repair, maintenance, and installation services. Great for those skilled in multiple trades.

Woodworking

Craft custom furniture, decor, or household items from wood. Ideal for those who love working with their hands.

Online Dating Consultant

Help clients create attractive profiles, source matches, and provide dating advice. Perfect for those with strong communication skills.

Sewing and Alteration Specialist

Provide clothing alterations and custom sewing services. Ideal for those with a passion for fashion and textiles.

Freelance Web Developer

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Build and maintain websites for businesses or individuals. Requires knowledge of coding and web design.

Personal Trainer

Offer fitness training sessions tailored to clients' needs. Best for those with a passion for fitness and a certification in personal training.

Freelance Graphic Designer

Create visual content like logos, brochures, and social media graphics. Perfect for creatively inclined individuals with design skills.

Life/Career Coach

Provide guidance and support to help clients achieve personal or professional goals. Great for those with a strong sense of empathy and experience in coaching.

Resume Writer

Help job seekers craft compelling resumes and cover letters. Best for those with strong writing skills and knowledge of hiring practices.

Freelance Writer

Write content for blogs, websites, magazines, and other publications. Ideal for those who love writing and research.

Online Business Ideas

E-commerce Store Owner

Sell products online through your own store. Requires an understanding of marketing, customer service, and inventory management.

Dropshipping Business

Sell products without holding inventory. The supplier ships directly to the customer, making it low-risk.

Affiliate Marketing

Promote products from other companies and earn a commission on sales. Great for those with a blog, website, or large social media following.

Content Creator/Influencer

Create content for platforms like YouTube, Instagram, or TikTok, and monetize through ads, sponsorships, and products.

Print-on-Demand Business

Design custom products like t-shirts and mugs, which are printed and shipped by a third-party provider when orders are placed.

Freelance Transcriptionist

Transcribe audio or video content into written form. Ideal for fast typists with good listening skills.

Virtual Assistant

Provide administrative support to businesses remotely. Tasks might include scheduling, email management, and data entry.

Social Media Manager

Manage social media accounts for businesses, creating content and engaging with followers to grow their online presence.

Write blog posts on topics you're passionate about and monetize through ads, affiliate links, or selling products.

Online Course Creator

Create and sell online courses in areas where you have expertise. Platforms like Teachable or Udemy make it easy to get started.

Home-Based Business Ideas

Dog Walking

Offer dog walking services in your neighborhood. Great for animal lovers who enjoy spending time outdoors.

Cleaning Service

Provide cleaning services for homes or offices. Start small with basic supplies and grow from there.

Packing Services

Help people pack their belongings for moves. Focus on careful organization and handling.

Freelance Editor/Proofreader

Edit and proofread documents, books, or articles. Perfect for those with strong attention to detail and language skills.

Laundry Services

Offer washing, drying, and folding services for clients in your area. A good option for those who enjoy doing laundry and want a flexible schedule.

Baking Business

Bake cakes, cookies, or other treats from home and sell them at local markets or online.

Candle Making

Create and sell homemade candles, offering unique scents or designs. Ideal for those who enjoy crafting.

Jewelry Making

Design and sell custom or handmade jewelry. A great option for creative individuals with an eye for detail.

Freelance Photography

Offer photography services for events, portraits, or products. Requires a good camera and editing skills.

Copywriting

Write persuasive content for ads, websites, or brochures. Best for those with strong writing and marketing skills.

Easy Businesses to Start

Errand Service

Run errands for busy people, such as grocery shopping, picking up dry cleaning, or delivering items.

Pet Sitting

Take care of pets while their owners are away. Can include feeding, walking, and playing with the animals.

Personal Shopping

Help clients shop for clothing, gifts, or other items, either online or in-person.

Furniture Assembly

Offer furniture assembly services for people who buy items that require setup.

Mobile Car Wash

Provide car washing and detailing services at the customer's location.

Event Setup/Breakdown Service

Assist with setting up and breaking down events like weddings, parties, or corporate events.

Plant Care and Landscaping

Offer basic gardening, plant care, and lawn maintenance services.

Virtual Tutoring

Provide tutoring services online in subjects you excel at, such as math, science, or language arts.

Remote Data Entry

Enter and manage data for companies from the comfort of your home.

Virtual Tech Support

Offer technical support for people needing help with computers, software, or other devices.

Creative Small Business Ideas

DIY Craft Kits

Create kits for various crafts like knitting, painting, or pottery that customers can do at home.

Photography

Capture moments and sell your photos online or offer your services for events.

Event Planning

Organize events like weddings, parties, or corporate gatherings.

Handmade Jewelry

Design and sell unique jewelry pieces, offering custom designs to your clients.

Arrange and sell flowers for events or as gifts, either through a shop or online.

Interior Decorating

Offer decorating services for homes or offices, helping clients create beautiful, functional spaces.

Graphic Design Studio

Provide custom design services for branding, websites, and print materials.

Online Music Lessons

Teach instruments or voice lessons over video calls, helping students learn at their own pace.

Calligraphy Service

Create beautiful hand-lettered invitations, signs, or art pieces for clients.

Custom Artwork Business

Paint or draw custom pieces of art for clients, such as portraits or landscapes.

Business Ideas for Students

Offer tutoring services to fellow students or younger children in subjects you excel at.

Freelance Web Design

Build websites for small businesses or individuals, using your skills to create attractive, functional sites.

Resume Services

Help students and recent graduates craft resumes and cover letters that stand out.

Graphic Design

Create logos, posters, and other design materials for student organizations or local businesses.

Social Media Marketing

Manage social media accounts for small businesses, helping them grow their online presence.

Custom T-shirt Printing

Design and print custom t-shirts for events, organizations, or businesses.

Essay Editing

Offer editing services for essays, term papers, and college applications.

Personal Fitness Coaching

Provide fitness training and nutrition advice to peers looking to get in shape.

Student Photography Service

Offer photography services for student events like graduation, dances, or sports.

Study Material Seller

Create and sell study guides, notes, or flashcards to help other students succeed.

Food-Related Businesses

Meal Prep Service

Cook and deliver healthy, ready-to-eat meals for busy clients.

Start a mobile food business, offering a unique menu at events or in popular locations.

Home-Based Bakery

Bake and sell cakes, cookies, or bread from your home kitchen.

Catering Business

Provide food for events like weddings, parties, or corporate meetings.

Specialty Food Store

Open a shop that sells gourmet, organic, or ethnic foods that are hard to find elsewhere.

Health Food Vendor

Sell health-focused foods at markets or through an online store, catering to those with dietary restrictions.

Coffee Cart/Bike

Offer specialty coffee from a mobile cart or bike in busy areas or at events.

Pop-up Restaurant

Open a temporary restaurant in a unique location, offering a limited menu for a special experience.

Farmer's Market Stand

Sell homemade or locally sourced foods at farmer's markets.

Food Blogger/Vlogger

Share recipes, cooking tips, and food reviews through a blog or YouTube channel, monetizing through ads or sponsored content.

Service-Based Business Ideas

Property Management

Manage rental properties for landlords, handling tenant relations, maintenance, and payments.

Personal Concierge

Offer personal assistance services like scheduling, booking travel, or running errands for busy clients.

Home Staging

Prepare homes for sale by arranging

furniture and decor to make them more attractive to buyers.

Translation Services

Offer translation for documents, websites, or conversations between people of different languages.

Massage Therapy

Provide massage services for clients, either from home or by traveling to their location.

Car Detailing

Clean and detail cars, offering a premium service to vehicle owners.

Pet Grooming

Offer grooming services like washing, clipping, and brushing for pets.

Travel Planning/Consulting

Help clients plan their vacations or business trips, booking flights, hotels, and activities.

Mobile Notary Public

Travel to clients to notarize documents for legal or business purposes.

Home Inspection Services

Inspect homes for potential buyers, ensuring they are in good condition before purchase.

Health and Wellness Businesses

Yoga Instructor

Teach yoga classes to groups or individuals, either in person or online.

Personal Chef

Prepare meals for individuals or families, catering to their dietary needs and preferences.

Mental Health Counselor (Licensed)

Provide counseling services to clients dealing with mental health issues like anxiety or depression.

Holistic Health Coach

Offer advice on nutrition, exercise, and lifestyle changes to help clients achieve overall wellness.

Physical Therapy Assistance

Assist licensed physical therapists with patient care and rehabilitation exercises.

Dance Instructor

Teach dance classes to students of all ages, either in a studio or online.

Meditation Coach

Help clients reduce stress and increase mindfulness through guided meditation sessions.

Acupuncture Services

Offer acupuncture treatments to clients for pain relief and wellness.

Nutritional Counseling

Provide advice and guidance on healthy eating habits to help clients achieve their wellness goals.

Senior Care Companion

Offer companionship and assistance to elderly clients, helping them with daily activities and providing social interaction.

Technology-Based Businesses

App Development

Create mobile apps for businesses or individuals looking to solve a specific problem.

SEO Consultant

Help businesses improve their search engine rankings through on-page optimization and content strategy.

Cybersecurity Specialist

Offer cybersecurity services to help businesses protect their data and systems from cyber threats.

Tech Product Repair

Repair broken devices like smartphones, tablets, or computers.

VR/AR Experience Creation

Develop virtual reality or augmented reality experiences for entertainment, education, or marketing purposes.

Drone Photography/Videography

Use drones to capture aerial photos and videos for real estate, events, or marketing materials.

Software Development

Develop custom software solutions for businesses or individuals looking to improve their workflows.

Digital Marketing Agency

Offer digital marketing services like social media management, paid ads, or content creation for businesses.

Provide technical support to businesses or individuals needing help with their computers or networks.

Online Subscription Box Service

Final Thoughts

Starting your own small business is an exciting and rewarding endeavor. With countless ideas to choose from, the most important step is selecting the one that aligns with your passions, skills, and the market demand. Once you've identified your ideal business, be sure to plan carefully, set realistic goals, and always be prepared to adapt and grow. Remember, success comes from dedication, creativity, and hard work, so choose something you love and enjoy the journey!

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• Entertainment
• CNN Underscored
• Business / Business Formation

10 great small-business ideas for 2024

Madeline Enos

CNN Underscored Money

Published 6:00 AM EDT, Mon May 6, 2024

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Empty small Street Food Track with an illumination standing in the deserted night park. Near food trailer are folding tables and chairs --> Vadim Serebrenikov/iStock

The entrepreneurial spirit is stronger than ever, with a growing number of individuals exploring innovative ways to start new businesses and generate income. Recent US Census data highlights a small-business boom, showing an average of 440,000 new business applications filed each month between 2021 and 2023—a 46% increase compared to the average of the previous four years.

Whether you aim to supplement your primary income with a side hustle or launch a full-time business, the opportunities are vast. If you are looking for ideas for small-business concepts, or if you have a dream business and could use some expert advice, this guide is an excellent starting point.

We receive compensation from our partners for Featured Offer placements, which impacts how and where their offer is displayed.

Top 10 small-business ideas in 2024

The number of small-business ideas is virtually limitless, with options that suit every dream and goal across all industries. However, to help you focus, here are our 10 favorite small-business ideas for 2024.

1. Freelance digital services

If you’re interested in setting your own schedule and have skills in areas like writing, graphic design or computer programming, freelancing might be the perfect fit. As a freelancer, you will produce content or execute projects for clients on a contractual basis. Payment for freelance work is typically made per project or task, which means your monthly earnings will fluctuate. The average hourly rate for freelancers in North America is $48.

Freelancing tips:

• Find a focus: Choose a niche that aligns with your passions or expertise to build your reputation as a specialist, such as logo design for graphic designers.
• Set up a portfolio and determine your pricing: Develop a portfolio to demonstrate your skills, including personal projects if needed. Set competitive rates informed by market standards and your experience level.
• Promote your services: Use platforms like LinkedIn to promote your services and connect with clients. Continue to update your skills to enhance service quality and ultimately better market your skillset. 
• Manage your time: Stay organized and on deadline with project management tools , especially when working with multiple clients. It’s important to remember that freelancing also involves administrative tasks, such as issuing invoices for completed work and managing your finances, including tax obligations.

2. Boutique bakery

What makes a bakery business stand out from the rest? Whether it specializes in an award-winning pastry, offers vegan options or targets other niche markets to attract specific customers, boutique bakeries can command a higher price for their goods and garner wild popularity.

Barbara Spraggon and Eden Rusak set out to do just that when they started Barbara Bakery, a business with aesthetic pastries, bread and coffee. They were highly intentional about designing the bakery space.

Spraggon shared, “I wanted people to feel at home, and to feel that Barbara Bakery is transparent. We show everything [in the kitchen]. People can sit here in the morning and see all the baking processes.”

Special care was given to menu development, and recipes are inspired by the couple’s home countries and travels all over the world. Their secret to success? Offering a delicious product that you can’t buy anywhere else and is often only available for a limited time.

They use data and customer feedback to evolve their menu seasonally. “We use Square for payment, so we can get analytics about what people buy every day, every week and every month. So for example, we see sales spike for heavier pastries with chocolate and cinnamon in the winter, and when we see sales declining as the weather warms up we can change our menu seasonally, like adding our new babka which is more fresh and citrusy for spring.” said Rusak.

Spraggon’s bakery small-business tips:

• Don’t be afraid to be different from the rest: Stand out in the marketplace with your products. Within six months of opening, people will know you for your signature recipes.
• Be open to feedback: Really listen to people’s impressions and reactions to new recipes — don’t just rely on sales numbers. Make time to talk to people.
• Make things you actually like: As a baker, your taste and intuition is a super power. You can personally enjoy the fruits of your labor, and your customers will feel the love in your pastries, cookies and coffee.

3. Online notary service

This highly flexible small-business idea is rarely discussed but has great earning potential. An online notary public is authorized to electronically notarize documents remotely using digital tools and video conferencing to verify and complete notarial acts.

Online notaries can work as independent contractors, setting their own hours and workload with a US national average annual salary of $61,077.

To get started as an online notary, you’ll need to meet both practical requirements and legal standards:

• Eligibility and training: You need to be at least 18 years old and a legal resident of your state, complete required training programs, which vary by state, and pass your state’s notary exam.
• Licensing and registration: Obtain a notary public commission from your state and register for authorization to perform remote online notarizations (RON).
• Technological setup: Invest in a computer with a reliable internet connection, a webcam and secure software that meets your state’s standards for RON. Consider partnering with a remote online notary (RON) platform, which can provide additional resources, training and support.
• Digital tools: Acquire digital certificates and an electronic journal to securely record notarizations.
• Insurance: Purchase errors and omissions insurance to protect against potential liabilities.

4. Food truck

Food trucks are an excellent small-business option for culinary entrepreneurs, providing lower overhead and upkeep costs compared to traditional restaurants, plus the flexibility of location.

When John Messina and Christine Daly started FM Pizza to serve NY-style pizza by the slice, they embraced a do-it-yourself approach to keep startup costs low. Messina encouraged others to try buying used equipment: “Facebook Marketplace has been awesome.”

He also had some advice for how to keep repair costs down: “You’ll learn a lot along the way (plumbing, electrical, gas). It’s a pain to learn all that but then down the road when stuff breaks, you can fix it versus paying someone else to do it. Once you understand basic plumbing you’ll never pay a plumber again.”

Messina’s food truck small-business tips:

• Give yourself time: If you’re rushing to get your business up and running, you might not think you have time to find things at a major discount — which means you might get your business open a little earlier, but at a huge cost.
• Make phone calls: Digging on the internet for regulations can be exhausting and not productive. Call your inspectors, city officials, sheriffs — literally anyone you need to work with. This helps you to have the strongest understanding of what is required of your business to become street legal.
• Set up a legal structure the right way: Figure out the right legal structure for you and your business — whether it’s an LLC or sole proprietorship . Get set up with the state government that your business is in, acquire your federal tax ID and start protecting your name and associated dba (doing business as) names. You can always pay someone else to set this up for you but if you do it yourself you’ll be better equipped to troubleshoot in the future.

5. E-commerce dropshipping

Dropshipping is when you sell products without having to stock or ship them yourself. Instead, when a customer buys something from you, a supplier handles the storage and shipping directly to the customer. This way, you can focus on selling without the costs of managing inventory or a warehouse.

Low startup and overhead costs and quick access to a global market for scalability make this an appealing small-business option. To start a successful e-commerce dropshipping business, you’ll need to complete several key steps, both practical and legal:

• Business planning : Determine the products you want to sell and define your revenue and profit goals.
• Supplier selection: Partner with reliable suppliers. Choose those that provide quality products and have a solid reputation for timely fulfillment.
• Legal formalities: Register your business, ensuring compliance with local and international laws. You likely need a general business license , and while dropshipping typically requires fewer licenses than traditional brick-and-mortar retail businesses, always check local requirements.
• Create your online store: Set up an e-commerce website where you will list your products, handle customer interactions and process orders. Wix and Shopify are a few of the top-rated e-commerce platforms that can facilitate this.
• Operational tools: Invest in necessary tools for payment, managing orders, tracking shipments and handling customer service.
• Marketing strategy: Develop a digital marketing plan to attract and retain customers. Use SEO (search engine optimization), email marketing, social media and pay-per-click advertising.
• Insurance: Consider getting liability insurance to protect against potential legal claims, ensuring that your business is covered in scenarios that might cause financial loss.

6. Guides and outfitters

If you’re a nature lover, this business offers a rewarding opportunity to turn your passion into a profitable venture. But the nature of this business can come with unexpected challenges, and requires research on the state and federal regulations and licenses required.

Heather Harter, co-owner of Harter and Sons Seafood and executive director at Klamath County Chamber of Commerce, shared:

“Starting a fishing business has been my husband’s lifelong dream, and I had the business experience to complement it. We started out two years ago with commercial fishing. Our goal was to fish and sell it to consumers or restaurants. We quickly learned that the regulations around selling direct to consumers made it almost impossible, especially with the amount of capital we were starting with. We had to pivot. We added the tourism side where we’re getting people to go out fishing with us [as guides].” Heather Harter, Harter and Sons Seafood co-owner

Harter’s tips for starting a fishing guide company:

• Know it, upskill or delegate: People usually start a business because they’re good at something, and then they realize they have to do the business side of it, which they may not always be good at. Recognize that you’re going to have to dig in and get really good at those things — or delegate the tasks.
• Find the right accounting software : Prioritize small-business accounting and get the right tools to help. Being split between two locations (Klamath Falls and the Oregon coast), we needed a way to not lose receipts. The accounting software we got helps scan the receipts, inputs the data and generates reports.

7. Construction and contractor services

Starting a small business as a contractor taps into the construction sector’s current labor shortages, offering a promising landscape for new entrepreneurs.

“Based on my own journey from a corporate position at Nike to becoming a commercial contractor, I believe that industries resistant to full automation, like construction, are particularly promising,” said Isai Montes De Oca, CEO/owner/principal of White Tiger Contractors, a commercial construction company specializing in flooring.

De Oca’s contractor small-business tips:

• Hire a bookkeeper and an accountant right away: I learned the importance of small-business accounting the hard way. Hiring a bookkeeper or accountant early on is crucial. While it might seem like an unnecessary expense initially, the benefits far outweigh the costs. This isn’t just about keeping your books in order; it’s about establishing a relationship where your accountant understands the nuances of your business. This setup becomes invaluable as your business grows, ensuring that you avoid financial headaches and stay compliant with regulations.
• Specialize in a specific area: Become the most efficient and knowledgeable provider, making it hard for clients not to choose you again.
• Learn from the best: Finding mentors is invaluable for gaining insights based on their experience.

8. Selling art online

Starting a small business to sell your art online offers the unique opportunity to showcase your work to a global audience from the comfort of their own home or studio.

Eleanor Baker is the owner of El Baker Art and has fulfilled over 10,000 orders on Etsy since founding her business in 2019.

“My advice would be to make it easy for the customer to buy from you,” said Baker. “Art is an expensive luxury item, and I want the customer to feel like it’s a worthwhile investment and that I appreciate them buying my art, when there are so many talented artists (globally accessible) to shop.”

Baker’s tips for selling art online:

• Include free shipping: This simplifies the purchasing process for the buyer.
• Make prices very visible: Sometimes artists will say that the customer needs to message for the price. This adds an unnecessary hurdle.
• Offer framed originals: Sending art already framed encourages customers to immediately open the box and hang on their wall, or it makes an easy gift.
• Have a website or Etsy shop: Customers can read reviews and buy with a credit card.
• Show photos of the art on a wall: This helps customers visualize it in their own home.
• Timely communication: Respond to messages/emails within 24 hours. A small business can’t be Amazon, of course, but customer service is so important.
• Outsource as much as possible: Consider paying photographers to get high-quality images, on-demand companies to print and ship print orders and UPS to pack and ship originals.

 9. Home cleaning services

Starting a cleaning business can be a rewarding opportunity if you enjoy organizing and cleaning spaces. Cleaning rates average $50 per hour, influenced by factors such as your geographic location, the size of the property and the local market competition. To stay competitive, compare your pricing to other cleaning services in your area.

Here’s what you’ll need to launch your cleaning service:

• Determine scope and initial investments: As you launch your business, you’ll need to decide if you want to go solo or hire a small staff and train them. For baseline business operations, you’ll need quality cleaning equipment and materials and a reliable vehicle for site visits.
• Legal and insurance needs: Secure a business license from your local government and obtain general liability, workers’ compensation and tools and equipment insurance (if applicable).
• Marketing: Set up a website and use social media to attract clients. Stand out by adding unique offerings to your package services (like floor waxing or power washing).

10. Pet services

If you love dogs, cats and all manner of animals, then a pet services business like pet sitting, dog walking or grooming might be right for you.

Here are a few essential steps to starting a pet services business:

• Define your business model: Decide if you’re operating solo or planning a larger venture. Assess your goals, whether for full-time income or as a side hustle.
• Get registered and figure out your finances: Check with your local and federal governments for required licenses and obtain any necessary insurance, like liability insurance. Calculate startup costs and consider how you’ll finance your business, potentially through small-business loans or savings.
• Marketing and operations: Develop and implement a marketing strategy using both online and community-based approaches to attract clients. Set up your business location, whether at home or elsewhere, and invest in administrative systems like a professional website and pet sitting software to manage clients and appointments.
• Create policies and procedures: Define clear business policies on pricing, services and emergency procedures to ensure professionalism and customer satisfaction.

How to choose the right business idea for you

Determining the right business idea involves self reflection, identifying your passions and skills, understanding your goals and then aligning them with market needs and opportunities.

Harter shared, “At the Chamber, people come in and talk to me about starting a business and the ideas that they have. Whether it’s fishing or retail, it’s important to think about it in terms of, ‘do you want to spend your time doing that?’ This question is actually a lot of soul searching to tell you the truth.”

Harter offered a few key questions to ask yourself about potential business opportunities:

• What do you want to gain financially? Decide if your idea for a small business could get you there.
• Realistically, how much time and energy are you willing to put into it? I get a lot of people that come in because they like to cook and they think that would be kind of an easy thing to do. My parents both owned restaurants and the thing I always ask people is, “Do you realize how tied to that business you were going to be?” Especially for the first few years because hiring people is hard, and as soon as you start adding employees there is overhead.
• Can you afford it (finances and risk)? For example, if you are raising young kids and you’re going to go into something risky where you may not be making money right away, can you afford to do that?

Make an informed choice about your small-business idea

Here’s how you can narrow your list and vet your idea for a small business:

• Match your skills with market needs: Inventory your skills and experience by listing your talents, certifications and professional experiences. Identify which ones are best suited for a small-business context, considering factors like market demand. Act as a potential customer and search online for existing businesses in the field you’re considering. Focus on finding a niche that is underserved in your area or where you can offer a unique advantage.
• Assess start-up costs and potential profitability: Take into account any limitations such as startup costs or time constraints from your current work schedule. This will help you narrow down business ideas that are logistically feasible for you. Take guidance from sources like the Small Business Administration when writing your business plan. Remember to take into account fluctuating and rising costs — according to the MetLife & US Chamber of Commerce Small Business Index, 52% of small-business owners rank inflation as their top concern.
• Consider tax implications and liabilities: Explore the tax implications and potential liabilities associated with your business idea. Knowing these can help you plan better and avoid surprises in the future.

This structured approach ensures that you choose small-business ideas that not only match your capabilities but also have the potential for success in the competitive market.

Small business resources

Small business administration.

The US Small Business Administration (SBA) is the singular federal resource and advocate for small businesses. The SBA equips entrepreneurs and small-business owners with the necessary tools and support to launch, develop or expand their businesses or to rebound from declared disasters. They offer online resources to help register your business, calculate startup costs, apply for licenses and permits, get funding and pay taxes. The SBA offers its services via a widespread network of field offices and through collaborations with various public and private entities.

Chamber of Commerce

A chamber of commerce is a collective business network focused on advancing the shared interests of small businesses within local communities across the US. Joining your local chamber can enhance your business’s visibility and credibility and provide valuable benefits for both new and expanding enterprises. The US Chamber of Commerce website offers a variety of resources for small-business ideas.

“Definitely connect with your local chamber of commerce, especially if you’re operating locally, but even for at home or tech-based businesses,” said Harter. “Your local chamber of commerce can open doors and introduce you to those people that can help like accountants, bookkeepers and other professionals.”

Further reading: Practical tips

Frequently asked questions (FAQs)

A small business in the US has limited revenue and a small number of employees, as defined by the US Small Business Administration (SBA). The SBA sets varying standards across different industries, often categorizing businesses as small based on their annual revenue (ranging from $1 million to over $40 million) and their employee count (from 100 to over 1,500 employees). This definition aims to encompass the vast diversity of businesses across various sectors, reflecting their different operational scales and economic impacts.

Some of the most profitable small businesses have low overhead and high earning potential. Some examples include freelance work in website and app development and digital marketing. These primarily digital services areas are well-suited for those who are tech-savvy or possess specialist knowledge in high-demand sectors.

Starting a small business requires capital, and there are several options to secure funding. You can use personal savings or borrow from family and friends, known as self-funding. Traditional bank loans or SBA-guaranteed loans offer structured financing options. Venture capital is appropriate for high-growth potential businesses in exchange for equity. Crowdfunding on platforms like Kickstarter allows you to raise funds from a large audience. Specific government and private grants are available for certain industries or demographics. Each funding avenue has its pros and cons, depending on your different business needs and financial conditions.

Editorial Disclaimer: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airlines, hotel chain, or other commercial entity and have not been reviewed, approved or otherwise endorsed by any of such entities.

This content is for educational purposes only and is not intended and should not be understood to constitute financial, investment, insurance or legal advice. All individuals are encouraged to seek advice from a qualified financial professional before making any financial, insurance or investment decisions.

Note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed or may no longer be available.

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Health Sciences

Physical therapy professor takes second in Life Sciences category at the 21st annual Wisconsin Governor’s Business Plan Contest 

• August 29, 2024
• 2 min. read

Dr. Sheila Schindler-Ivens , associate professor of physical therapy in the College of Health Sciences, took second place in the Life Science category at the annual Wisconsin Governor’s Business Plan Contest with her startup Venus Rehabilitation Technologies.

Out of over 150 entries, Schindler-Ivens and Venus Rehabilitation Technologies qualified for the Diligent Dozen, 13 finalist start-up companies that pitched in the competition finals at the 21st annual Wisconsin Entrepreneurs’ Conference , June 5-6 in Milwaukee, Wisconsin.

Two Marquette-affiliated start-up CEOs served as panelists at the Conference where the theme was “Mapping the Entrepreneurial Mind.”. New this year, Economic Engagement, the Graduate School and the Law School sponsored 20 graduate students to attend the conference. The interdisciplinary cohort of students represented colleges across campus including the Klingler College of Arts and Sciences, College of Business Administration, Opus College of Engineering, College of Health Sciences, College of Education, and the Marquette Law School’s Law and Entrepreneurship Clinic. For the third consecutive year, Dr. Kalpa Vithalani, Marquette’s executive director of technology transfer, was invited by the Tech Council to co-chair the conference and serve on the conference steering committee which she hosted on campus. She also represents Marquette on the Tech Council Board of Directors.

Schindler-Ivens invented CUped, an assistive lower limb rehabilitation device for stroke patients for which Marquette has granted patents in the United States, China and Europe. Launched in 2021, many Milwaukeeans were introduced to the company during the 2022 Healthcare Innovation Pitch competition when Venus Rehabilitation Technologies won the Emerging Company award .

The Entrepreneurs’ Conference and the Business Plan Contest are produced by the Tech Council, the non-profit and non-partisan science and technology adviser to the governor and the Wisconsin State Legislature. Each plan described the core product or service, defined the customer base, estimated the size of the market, identified competition, described the management team and provided key financial data.

Networking, new connections and lessons from other entrepreneurs are valuable take aways. Sponsors for the contest are contributing cash, office space, legal assistance, accounting, information technology consulting, marketing, event space and more. About $2.5 million in cash and in-kind prizes have been awarded since the inception of the contest in 2004. The Wisconsin Economic Development Corp . is a major sponsor.

Marquette start-up CEO panelists

Two Marquette entrepreneurs were among the panelists at the conference:

• Dylan Waldhuetter, CEO of Rapid Radicals Technology. Rapid Radicals Technology was founded by three-time Marquette alumna Dr. Paige Peters and was the grand prize winner of the 2022 Governor’s Business Plan Contest .
• Tom Quinn, CEO of Marquette Energy Analytics. Started in 1993 by Dr. Ronald Brown at Marquette University as the GasDay Lab to develop and provide maximum accuracy natural gas demand forecasting models to utilities, MEA was spun out of the University in 2018. Today MEA predicts 25% of the nation’s natural gas demand.

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Most community college students plan to get 4-year degrees. Few actually do

Dylan Peers McCoy

[WFYI] Community college transfer numbers 

Ever since he was a kid, Tyre’k Swanigan dreamed of going to Indiana University. But after he graduated from high school, he decided to start at community college. He figured he could keep his full-time job and transfer to IU later to earn his bachelor’s degree.

At first, Swanigan, now 23, did well. Then, he said he heard from an IU recruiter that some of his community college credits might not count toward his degree.

College is hard enough — try doing it while raising kids

“I was like, why am I wasting my time at a two-year community college when I know that I need at least a bachelor’s to do anything that I want to do?” said Swanigan, who wants to work in a leadership role at a school.

Swanigan eventually withdrew from the community college. And he’s not alone.

Community college is often touted as an affordable start for students who want to earn bachelor’s degrees. Yet only 13% of community college students actually go on to earn degrees from four-year institutions within eight years, according to data released by the U.S. Department of Education in 2023. Indiana has one of the lowest community college transfer success rates in the nation.

“It's ridiculous,” said Swanigan, who attended Ivy Tech Community College in Indianapolis. “It pisses me off honestly, because I was at Ivy Tech, right? And this is me. Like, this number — I’m a part of that.”

With their open enrollment policies and low tuition, community colleges offer crucial access to higher education. They educate 41% of all U.S. undergraduates, according to the Community College Research Center . And when those students enroll, 83% plan to transfer to four-year schools, according to the Center for Community College Student Engagement.

But that transfer process can be fraught with challenges, including structural barriers that force students to spend time and money taking extra classes.

“Most students leave empty-handed,” said Huriya Jabbar, a professor of education policy at the University of Southern California. “There are bureaucratic hurdles. There are really opaque transfer policies. There's not enough information about … which courses will transfer.”

How the deck is stacked against transfer students

Jabbar co-wrote a book, which will be published in September, about community college transfer students . Her research focused on Texas, where policies vary by institution and major.

“When a student enters community college, they need to know not just what major — area of study — but which university they plan to transfer to,” Jabbar said, “because what they do at the community college to transfer will vary.”

The new kids on campus? Toddlers, courtesy of Head Start

College advisers are supposed to help students prepare to transfer, making sure they have the right credits for the degree they’re pursuing, and facilitating a smooth transition to a four-year school. But in Texas, Jabbar found that these advisers had large caseloads, which limited their ability to help students. Advisers also struggled to keep up with changes in degree requirements at different institutions, Jabbar said. Sometimes they gave students information that was outdated or wrong.

According to Jabbar, one common problem transfer students face is being forced to take extra classes. That happens when four-year schools don’t give students credit for all the classes they took in community college, or the courses are counted as electives instead of major requirements.

When students lose credits, it’s time-consuming and expensive, said Lorenzo Baber, director of the University of Illinois Urbana-Champaign Office of Community College Research and Leadership.

“That's money,” he said. “That's a couple thousand dollars, which matters.”

Two-thirds of community college students take classes part time . And they often juggle jobs, caregiving and other obligations that can disrupt their education.

Because of that, Baber said, improving transfer success is not just up to higher education institutions. It requires investments in social supports ranging from child care to broadband access to health care. Someone might be forced to leave school, for example, to provide for a sick family member who has limited health care access.

“You could have the best designed programs,” Baber said, “but that gets rendered meaningless if somebody needs to stop out because they need to take a job to pay the bills of their household.”

A transfer policy that could help

Research suggests statewide policies to make transferring easier can help students earn bachelor's degrees and avoid taking unnecessary classes .

In Indiana, where Tyre’k Swanigan lives, community colleges and universities are trying to improve.

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About a decade ago, Indiana lawmakers required public colleges and universities to create transfer pathways for students who complete associate degrees. If an Indiana student earns an associate degree in nursing, for example, they can transfer to a public, four-year university without losing credits, said Mary Jane Michalak, a vice president at Ivy Tech Community College, where Swanigan started.

"Whenever possible we direct students into those pathways,” Michalak said, “because by state law then those credits are supposed to transfer seamlessly as long as it's within the same program."

Other states have created similar transfer policies. In 2010, California created a special associate degree that’s supposed to make it easier for students to transfer. In 2021-22, almost half of the community college students who transferred to four-year colleges in California had those diplomas .

Some Indiana universities and community colleges have partnered up to help make transferring easier for students, an approach that institutions in other states have used . This year, Ivy Tech announced a new dual admission agreement with Indiana University Indianapolis .

But Indiana doesn’t yet know if the state’s efforts to improve transfer success are working. That’s because the federal data published in 2023 — which found that only about 7% of Indiana community college students earn four-year degrees — follows students for eight years. The people it tracked started back in 2014, the year before the state's new transfer pathways kicked in.

Tyre’k Swanigan started college in 2019, and even with the state changes, it hasn’t been easy.

Swanigan almost went back to school this summer. But tuition was expensive. He started a new job. And he was pulling himself out of a difficult relationship.

“The longer I wait and life happens and issues come up,” Swanigan said, “the harder it is to get back into school.”

Five years after Swanigan started college, he’s still determined to earn his bachelor’s degree — eventually.

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Richland Source

North Central Ohio's Independent Local News

Passing the torch: How to maximize your business succession plan

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This story is part of an ongoing series exploring north central Ohio's workforce trends and how different organizations, including businesses and schools, are adapting to current challenges. Thanks to our presenting sponsor, Gorman-Rupp Company for its ongoing support of trusted independent local journalism.

MANSFIELD — Jake Penwell spent more time at the funeral home than the average teenager.

The Shelby native was just 14 years old when he got a part-time job at Turner Funeral Home. After school, his parents would drop him off or his employers would pick him up.

By the time he could drive himself to work, Penwell knew he’d be taking over one day.

“The Turners were always very forthcoming,” he said. “They wanted me to own the funeral home.”

Penwell continued working for the Bob and Catherine Turner, learning every aspect of the business. He went to college, obtained his funeral director’s and embalmer’s license in 2013 and bought the funeral home five years later.

This month, the business officially took on a new name — Penwell Funeral Home.

To this day, Penwell calls himself the product of a good succession plan.

“They just took me under their wing. They taught me everything,” Penwell said. “They wanted me to be successful as much as I wanted to be successful.”

Good succession planning ensures a business owner can comfortably retire and the enterprise can continue operating under new leadership.

Barrett Thomas, director of economic development for the Richland Area Chamber, recommended business owners start thinking about succession at least five to 10 years before they aim to retire.

Waiting until the last minute may mean accepting a less-than-stellar offer or having no time to groom a successor.

Sam Van Cura of Total Performance said he’s seen several local business close for that reason.

“Good will is a big part of selling a company and good will has to do with name recognition,” he said.

“It’s worth a lot of money when you sell a business, but it’s worth nothing if you don’t have a succession planned. I just feel sorry for people that work their whole lives, build up a business and don’t get to sell it.”

A strong succession plan benefits other employees and gives entrepreneurs the chance to get the highest return on the investment.

But the impact also ripples beyond the people earning a paycheck.

Want to learn more?

The Richland Area Chamber is hosting a BOSS (Business Owners Sharing Solutions) session on succession planning on September 25 from 7:30 to 9:30 a.m. Speakers will include Mark Dorman of Succession Plus, Scott King of The Gorman-Rupp Company, Kristine Lindeman of Alumni Roofing Co. and Jake Penwell of Penwell Funeral Home. The event will be moderated by Carl Fernyak of Richland Source and Carrousel Properties. For information and tickets, click here .

Strong succession strengthens communities

When small businesses continue to operate for generations, it benefits not just customers, but employees and communities at-large.

“We’ve seen the results of businesses that leave the community,” said Jessica Gribben, an economic development manager at the Richland Area Chamber.

“Either the (owner) retires, has no plan and the business ceases to exist, or ownership transfers outside of the community.”

While a business may survive financially with a non-local owner, the benefits small businesses bring to a community often diminish.

“Things tend to just leave the community — that wealth, decision-making, philanthropy, jobs — all those things,” Gribben said.

Planning ahead can help prepare small businesses for a smooth transition between owners, but Gribben and other experts say it’s easy for entrepreneurs to put succession planning on the back burner or ignore it entirely.

“They don’t want to think about life after they’re out of their business. Maybe they don’t think their business can run without them or they’re so invested, it’s part of them. So it’s just a really hard topic,” Gribben said.

For others, it’s simply a challenge of finding the time.

“It’s not easy. It takes a lot of resources to do it well,” Thomas said.

“You need your accountant, your lawyer and your financial planner all together to work on this thing, and that is expensive to get time from all of those people. When it’s not the primary thing you’re trying to get done, it’s tough to dedicate that much time to it.”

Nevertheless, business owners and experts repeatedly told Richland Source that planning ahead is worth the time investment.

“A lot of businesses are sold at the end with no plan and and maybe out of just complete exhaustion, maybe frustration,” Penwell said.

“Businesses can always be sold. But I think successful business transactions happen because there’s a plan ahead of time.”

We asked several area business owners for advice on how they navigated this transition.

If you’re selling your business to an employee, hand over responsibilities gradually

Jay Miller has worked for DRM Productions for 18 years, working his way up from software engineer to CEO.

An eighth-generation entrepreneur, Miller realized by his mid-20s that he wanted to be his own boss. It was something he discussed early on with DRM founders Bob Jones and Dave Damron.

“When I came on board here at DRM, Dave and Bob were kind of towards the end of their careers,” Miller said.

The trio ultimately decided to map out the company’s succession plan years in advance — Jones would retire first, followed by Damron five years later.

“I couldn’t afford to pay (Miller and his business partner, Jonathon Pierce) what they were probably worth at the time,” Damron recalled.

“So I said, over five years, you can have one quarter of the business, and then after that, they could buy out (the rest) from Bob and I over time. We did it slowly, and so they knew the business.”

According to plan, Miller and Pierce took over DRM Productions in 2019 — each with a decade of experience at the company under their belt.

Put other companies leaders in the forefront

Chaz and Austin Schroeder have been the co-owners of Black River Group for just under two years.

But the brothers and third-generation business owners were primed to take over long before their father and his business partner retired.

“Probably nine to 10 years before we actually took full control and bought them out, we were basically stepping in and assuming the majority of their role overseeing and running the entire company,” Schroeder said.

Giving future successors more responsibility leads to a smoother transition within the company and for customers. It also reduces stress for the business owner.

“If you start planning and putting people in place to take over for you, then you get to go on vacation, you get to have more time outside of that office,” Thomas said.

“You also get the benefit of knowing if you get hit by a beer truck, then there’s someone to take over.”

Prepare on more than just a business level

Conversations around succession often focus on keeping the business running. Dorman said sellers should also be thinking about what the sale means for their own lives, both financially and personally.

“It can be very, very emotional. You’re detached from your professional community, all your contacts, your networks, your relationships — particularly for men,” he said.

“Oftentimes, their whole identity and sense of self is wrapped up in their business and next thing you know, nobody needs them anymore.”

If you can’t fathom retirement, consider scaling back instead

One major obstacle to succession planning is that a business owner genuinely enjoys their work and doesn’t want to give it up completely.

Thomas suggested that business owners who feel this way find a middle ground. It’s possible to stay involved without staying in charge.

Bob and Catherine Turner continued to work at the funeral home for more than a year after they sold it to Penwell. Damron still helps out at DRM Productions with big projects.

“Rick Taylor of Jay Industries is doing the same thing,” Thomas said. “He’s not the CEO of Jay Industries anymore. That’s Paul Boggs.”

“I asked Paul, ‘What’s Rick doing? And he said, ‘Whatever Rick wants … he’s still involved, still knows all the things and gets to go do the parts that make him happy.'”

Other quick tips

• Don’t assume a potential successor wants the job. If you think they’d be a good fit, start a conversation about their goals.
• Don’t assume you know what your business is worth. “I’ve seen a lot of business owners who thinks their business is worth $5 million and then they get a business valuation and it’s $2.1 million,” Thomas said.
• Don’t string a successor along. If you tell someone you want to sell them your business, give them a relative timeframe and do your best to stick to it.

Thanks to Gorman-Rupp Company , Spherion , North Central State College , Ashland County Community Foundation and The Ohio State University Mansfield for their generous support of trusted independent local journalism.

Katie Ellington Serrao Staff Reporter

Staff reporter at Richland Source since 2019. I focus on education, housing and features. Clear Fork alumna. Always looking for a chance to practice my Spanish. Got a tip? Email me at [email protected]. More by Katie Ellington Serrao

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9 Business Ideas For Teens In 2024

Published: Aug 27, 2024, 8:40am

Table of Contents

9 business ideas for teens, benefits of starting a business as a teen, factors to consider when starting a business as a teen, bottom line, frequently asked questions (faqs).

Starting a business as a teenager can help you explore your skills and interests, gain professional experience and earn money. Plus, the process can be fun, and you might even discover what you want to spend your life doing—or you’ll discover what you don’t like.

There are countless options for teen entrepreneurs to explore, from tutoring to online content creation. Below, we cover a few options and how you can get started.

If there is an academic subject (or multiple subjects) you are particularly talented in and the idea of sharing your knowledge sounds appealing to you, consider tutoring. As an academic tutor, you could focus on math, writing, science, music or other topics students may need extra help with or offer tutoring in more than one. You could also specialize in standardized tests such as the ACT and SAT.

Many people start tutoring by joining an agency or platform, such as Tutorpeers. If you start on your own, you’ll want to think about how to advertise so you can reach clients, how much you’ll charge and whether you’ll be meeting people in a set location or going to their homes.

Childcare is another reliable teen business idea to try. Childcare can come with a flexible schedule,  and you’ll learn if you like working with children and gain important skills such as negotiating in people-facing roles. Childcare providers typically charge per hour, so you’ll want to find an appropriate starting rate for your area. If you start working with an agency, you can expect to pay an agency fee. You can also start by advertising in online and local forums or build a client base through word of mouth.

Handmade Products

If you are crafty, consider developing a personal or home care product. Many people appreciate handmade products and there are plenty of options to consider. Once you find a product you like, you can look into selling it locally or online.

Though these projects start small, you never know where they will lead or what you’ll learn along the way. Visual storyteller Annalisa van den Bergh developed an all-natural cat repellent spray and potpourri made from citrus and citronella in high school. The idea started as an eighth-grade science fair project:

“My family’s two cats kept scratching our furniture and I wanted to create a nontoxic way to deter them from it. It was eventually sold at two pet stores in the East Village of NYC and became a very popular item, as it was especially appealing to that market. It was my first experience creating and branding a product and it was interesting to see how the sprays sold well despite—though probably because of—their homemade, DIY look,” van den Bergh shared.

Photography

There are lots of ways to start a photography business . To start, you’ll want to develop a portfolio of work if you don’t have one already. Then, think about the different types of commercial photography that people typically pay for, such as wedding photography and portraits, and develop a portfolio specifically tailored to the service that you want to provide. While the first gigs you do may only be to gain experience, eventually, when people see your work and know you can deliver what they want, they will feel confident hiring you.

Photography can open the door to exploring lots of skills and interests beyond the medium itself. Taking photographs of people requires knowing how to make someone feel comfortable. You learn a lot of social skills on the job that can translate well to other professions. Photoshoots at high-stakes events, such as weddings, will give you experience working in a high-pressure environment and an opportunity to see if you are well-suited for it. You’ll also develop your photography and editing skills with each gig you take on.

“At 16, I started a photography and videography business on my own, putting my interests in cameras and architecture into a way to make money,” California-based photographer and videographer Jackson McKinney told Forbes Advisor. “From taking pictures of homes for sale to high school athletes getting endorsements, I quickly learned that I could make more money doing what I love. The experience not only made me feel better about myself, but it also led to real estate jobs that made me want to study business more in college and start my own businesses,” he shared.

If the idea of developing a product from scratch seems overwhelming, you can experiment with selling products online by listing items you no longer need. You’ll have to think through whether any items you no longer need, such as clothes, will make a good product to list online and find the right platform or app to sell it . You’ll also need to photograph your item, give it a title, write a description, answer any questions customers ask you and properly wrap and ship the product to the buyer.

This whole process will help you become more comfortable selling online. If you want to continue, you could turn it into an ongoing business by buying and reselling products or developing your own.

Selling Artwork

If you love to make art, selling your own work could be a great way to learn about what people like and build a business out of something you already love to do. Depending on your skill set and interests, there are many different directions to explore, including selling your work online or locally. You could decide to sell custom-made work or the work you already have. If you decide to sell locally, think about the different ways to connect with people or partnering with businesses in your neighborhood. For example, cafes often display artwork for sale.

Online Content Creation

If you enjoy being in front of a camera and want to explore a public-facing media profession, content creation could be a good online business idea to consider. Before you start, spend some time coming up with a focus for the content you want to share. Maybe you have a special skill and can share information about it online. Or maybe you want to talk about a hobby you are invested in and know a lot about. Your content can be short-form for platforms like TikTok and Instagram or long-form content on YouTube. Doing your research can help you learn about and brainstorm the different possibilities for your own channel. Or, you can just jump right in and learn as you go.

Neighborhood Services

Offering lawn mowing or other services that are needed locally could be a great way to start a business. Think about your current skills or which ones you want to learn—painting houses, repairs and landscaping, for example. If you end up receiving a lot of work, you might think about scaling, adding more services to your business or even adding someone else to your team. You’ll develop your customer service skills, people skills and business management skills.

House-Sitting or Pet Care

In the realm of caretaking and people-facing professions, house-sitting is another job to explore. Different online platforms can help you connect with people looking for house sitters or pet sitters, such as Rover and TrustedHousesitters. Some people will need someone to take care of their plants or will have special instructions about how to take care of their homes while they are gone. Since people will be trusting you with their pets and homes, you’ll want to make sure you understand what they need and have a plan if you need to contact them with any questions that come up or if anything unexpected happens.

Starting a business as a teen can bring unexpected benefits in addition to earning money. Trying out different ideas can help you learn about your interests, skills and talents and gain a better sense of direction. Plus, for some people, the jobs they take on or businesses they start as teenagers end up becoming their long-term work as adults. For other people, early work experience teaches them what they like and don’t like.

For example, babysitting experience can help you determine whether you like working with young children and working with people in general. As a babysitter, you’ll be responsible for taking care of someone else’s child or children—a huge responsibility. You might love the process, which could inspire exploration in other professions such as teaching or healthcare. On the other hand, you might find you can’t stand working with people in such an interpersonal way and would much rather do work on a computer. Whatever you discover will be valuable information you can use for your next job or business idea.

The other benefit of starting a business as a teenager is that you’ll be in a better position to change course as you learn. There’s less at stake when you haven’t invested four years or more in an education for this specific role.

Regardless of the work you do, you’ll learn invaluable skills and business experience that you can transfer over to your next job. For example, you’ll learn how to communicate professionally, how to keep track of your income, how to think strategically about billing and, depending on what business you decide to take on, you might learn about marketing, branding and sales, which are concepts you’ll likely be exposed to in any business or job.

The age requirements for starting a business vary by state, so you’ll want to make sure you understand and follow them before you start a business venture, especially as they relate to taxes, permits and any industry-specific requirements. A parent or guardian can help navigate the legal aspects of starting a business.

You’ll also want to make sure you fully consider the amount of time you have to run a business so that you don’t overcommit yourself or overpromise clients or customers something you end up not being able to deliver. Having a good sense of the number of hours you can commit to your business per week will help make sure that you don’t overstretch yourself.

As an excited and motivated teen wanting to start a business, there are so many potential avenues to explore. Start by thinking about your passions and interests and then research ways your skills could be used to create a product or service others will want to pay for. You won’t have all the answers right away but everyone starts somewhere and you never know where the first step towards creating a business will take you.

What is the easiest business for a teen to start from home?

Starting a business is not easy, but the highest chances of success will come from following an idea where your talent and motivations intersect. Some ideas for starting a business at home include creating online content, selling items online and doing pet setting.

What are some part-time business ideas for teenagers?

Most businesses are flexible regarding time commitment. It’s a matter of what you want to accomplish, your long-term goals and how much money you want to earn. Apart from these factors, any of the business ideas in this article can be part time.

How can I turn my hobby into a business?

The first step to turning your hobby into a business is to consider where your interests and talents overlap with potential customers’ needs. For example, if you’re a talented photographer interested in developing your photography skills and learning how to work with people, exploring wedding photography could be a good fit.

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Leeron is a New York-based writer with experience covering technology and politics. Her work has appeared in publications such as Quartz, the Village Voice, Gothamist, and Slate.

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What Across-the-Board Tariffs Could Mean for the Global Economy

Donald J. Trump, the Republican presidential nominee, has floated the idea of a 10 percent tariff on all U.S. imports, a plan that economists say could badly damage trade.

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By Patricia Cohen

Former President Donald J. Trump blames the global trading system for inflicting a long list of ills on the American economy including lost jobs, closed foreign markets and an overvalued dollar.

The remedy, he insists, is simple: tariffs. Mr. Trump, the Republican nominee for president, has repeatedly said he would raise tariffs if elected. China, a geopolitical and economic rival, would face an additional 50 or 60 percent tariff on its exports to the United States. He has also floated the idea of a 10 to 20 percent surcharge on exports from the rest of the world.

Although smaller than the percentage proposed for Chinese exports, an across-the-board tariff has the potential to deliver a much more devastating jolt to world trade, many economists warn.

Such a surcharge would not distinguish between rivals and allies, critical necessities and nonessentials, ailing industries and superstars, or countries adhering to trade treaties and those violating them. (Democrats have also embraced tariffs as a policy tool , but Vice President Kamala Harris, the Democratic presidential nominee, has criticized Mr. Trump’s universal approach as inflationary.)

Here is what you need to know about the idea of a universal tariff on all imports.

What are the historical precedents?

Mr. Trump’s broad-brush tariffs frequently evoke comparisons with the destructive global trade war that the United States helped to initiate in the 1930s with the Smoot-Hawley tariffs passed by Congress. The Senate Historical Office has called that law “among the most catastrophic acts in congressional history.”

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