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

By Joe Weller | October 11, 2021

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

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

What Is a Business Plan?

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

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

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

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

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

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

Business Plan Steps

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

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

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

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

Do I Need a Simple or Detailed Plan?

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

How to Choose the Right Plan for Your Business

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

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

Is the Order of Your Business Plan Important?

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

The Difference Between Traditional and Lean Business Plans

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

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

How to Write a Business Plan Step by Step

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

Step 1: Executive Summary

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

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

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

Step 2: Description of Business

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

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

Step 3: Market Analysis

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

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

Step 4: Competitive Analysis

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

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

Step 5: Description of Organizational Management

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

Step 6: Description of Products or Services

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

Questions to answer in this section are as follows:

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

Step 7: Marketing Plan

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

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

Step 8: Sales Plan

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

Start by answering the following questions:

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

Step 9: Funding Details (or Request for Funding)

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

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

Step 10: Financial Projections

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

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

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

Business Plan Template

Download Business Plan Template

Microsoft Excel | Smartsheet

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

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

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

How to Write a Simple Business Plan

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

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

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

Simple Business Plan Template

Download Simple Business Plan Template

Microsoft Excel |  Microsoft Word | Adobe PDF  | Smartsheet

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

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

How to Write a Business Plan for a Lean Startup

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

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

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

Lean Business Plan Template for Startups

Download Lean Business Plan Template for Startups

Microsoft Word | Adobe PDF

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

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

How to Write a Business Plan for a Loan

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

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

Download free financial templates to support your business plan.

Tips for Writing a Business Plan

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

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

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

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

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

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

Resources for Writing a Business Plan

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

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

How a Business Plan Helps to Grow Your Business

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

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

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How to Write a Business Plan, Step by Step

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What is a business plan?

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

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

ZenBusiness

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

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

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

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

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

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

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

Your business’s registered name.

Address of your business location .

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

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

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

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

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

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

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

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

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

You should include the following:

An explanation of how your product or service works.

The pricing model for your product or service.

The typical customers you serve.

Your supply chain and order fulfillment strategy.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

NerdWallet’s picks for setting up your business finances:

The best business checking accounts .

The best business credit cards .

The best accounting software .

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

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

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

Licenses and permits.

Equipment leases.

Bank statements.

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

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

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

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

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

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

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

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What Is a Business Plan?

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

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

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

Key Takeaways

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

Investopedia / Ryan Oakley

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

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

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

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

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

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

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

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

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

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

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

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

2 Types of Business Plans

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

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

Why Do Business Plans Fail?

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

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

What Does a Lean Startup Business Plan Include?

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

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

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

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

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

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Written by Jesse Sumrak | May 14, 2023

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Business plans might seem like an old-school stiff-collared practice, but they deserve a place in the startup realm, too. It’s probably not going to be the frame-worthy document you hang in the office—yet, it may one day be deserving of the privilege.

Whether you’re looking to win the heart of an angel investor or convince a bank to lend you money, you’ll need a business plan. And not just any ol’ notes and scribble on the back of a pizza box or napkin—you’ll need a professional, standardized report.

Bah. Sounds like homework, right?

Yes. Yes, it does.

However, just like bookkeeping, loan applications, and 404 redirects, business plans are an essential step in cementing your business foundation.

Don’t worry. We’ll show you how to write a business plan without boring you to tears. We’ve jam-packed this article with all the business plan examples, templates, and tips you need to take your non-existent proposal from concept to completion.

Table of Contents

What Is a Business Plan?

Tips to Make Your Small Business Plan Ironclad

How to Write a Business Plan in 6 Steps

Startup Business Plan Template

Business Plan Examples

Work on Making Your Business Plan

How to Write a Business Plan FAQs

What is a business plan why do you desperately need one.

A business plan is a roadmap that outlines:

• Who your business is, what it does, and who it serves
• Where your business is now
• Where you want it to go
• How you’re going to make it happen
• What might stop you from taking your business from Point A to Point B
• How you’ll overcome the predicted obstacles

While it’s not required when starting a business, having a business plan is helpful for a few reasons:

• Secure a Bank Loan: Before approving you for a business loan, banks will want to see that your business is legitimate and can repay the loan. They want to know how you’re going to use the loan and how you’ll make monthly payments on your debt. Lenders want to see a sound business strategy that doesn’t end in loan default.
• Win Over Investors: Like lenders, investors want to know they’re going to make a return on their investment. They need to see your business plan to have the confidence to hand you money.
• Stay Focused: It’s easy to get lost chasing the next big thing. Your business plan keeps you on track and focused on the big picture. Your business plan can prevent you from wasting time and resources on something that isn’t aligned with your business goals.

Beyond the reasoning, let’s look at what the data says:

• Simply writing a business plan can boost your average annual growth by 30%
• Entrepreneurs who create a formal business plan are 16% more likely to succeed than those who don’t
• A study looking at 65 fast-growth companies found that 71% had small business plans
• The process and output of creating a business plan have shown to improve business performance

Convinced yet? If those numbers and reasons don’t have you scrambling for pen and paper, who knows what will.

Don’t Skip: Business Startup Costs Checklist

Before we get into the nitty-gritty steps of how to write a business plan, let’s look at some high-level tips to get you started in the right direction:

Be Professional and Legit

You might be tempted to get cutesy or revolutionary with your business plan—resist the urge. While you should let your brand and creativity shine with everything you produce, business plans fall more into the realm of professional documents.

Think of your business plan the same way as your terms and conditions, employee contracts, or financial statements. You want your plan to be as uniform as possible so investors, lenders, partners, and prospective employees can find the information they need to make important decisions.

If you want to create a fun summary business plan for internal consumption, then, by all means, go right ahead. However, for the purpose of writing this external-facing document, keep it legit.

Know Your Audience

Your official business plan document is for lenders, investors, partners, and big-time prospective employees. Keep these names and faces in your mind as you draft your plan.

Think about what they might be interested in seeing, what questions they’ll ask, and what might convince (or scare) them. Cut the jargon and tailor your language so these individuals can understand.

Remember, these are busy people. They’re likely looking at hundreds of applicants and startup investments every month. Keep your business plan succinct and to the point. Include the most pertinent information and omit the sections that won’t impact their decision-making.

Invest Time Researching

You might not have answers to all the sections you should include in your business plan. Don’t skip over these!

Your audience will want:

• Detailed information about your customers
• Numbers and solid math to back up your financial claims and estimates
• Deep insights about your competitors and potential threats
• Data to support market opportunities and strategy

Your answers can’t be hypothetical or opinionated. You need research to back up your claims. If you don’t have that data yet, then invest time and money in collecting it. That information isn’t just critical for your business plan—it’s essential for owning, operating, and growing your company.

Stay Realistic

Your business may be ambitious, but reign in the enthusiasm just a teeny-tiny bit. The last thing you want to do is have an angel investor call BS and say “I’m out” before even giving you a chance.

The folks looking at your business and evaluating your plan have been around the block—they know a thing or two about fact and fiction. Your plan should be a blueprint for success. It should be the step-by-step roadmap for how you’re going from Point A to Point B.

How to Write a Business Plan—6 Essential Elements

Not every business plan looks the same, but most share a few common elements. Here’s what they typically include:

• Executive Summary
• Business Overview
• Products and Services
• Market Analysis
• Competitive Analysis
• Financial Strategy

Below, we’ll break down each of these sections in more detail.

1. Executive Summary

While your executive summary is the first page of your business plan, it’s the section you’ll write last. That’s because it summarizes your entire business plan into a succinct one-pager.

Begin with an executive summary that introduces the reader to your business and gives them an overview of what’s inside the business plan.

Your executive summary highlights key points of your plan. Consider this your elevator pitch. You want to put all your juiciest strengths and opportunities strategically in this section.

2. Business Overview

In this section, you can dive deeper into the elements of your business, including answering:

• What’s your business structure? Sole proprietorship, LLC, corporation, etc.
• Where is it located?
• Who owns the business? Does it have employees?
• What problem does it solve, and how?
• What’s your mission statement? Your mission statement briefly describes why you are in business. To write a proper mission statement, brainstorm your business’s core values and who you serve.

Don’t overlook your mission statement. This powerful sentence or paragraph could be the inspiration that drives an investor to take an interest in your business. Here are a few examples of powerful mission statements that just might give you the goosebumps:

• Patagonia: Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.
• Tesla: To accelerate the world’s transition to sustainable energy.
• InvisionApp : Question Assumptions. Think Deeply. Iterate as a Lifestyle. Details, Details. Design is Everywhere. Integrity.
• TED : Spread ideas.
• Warby Parker : To offer designer eyewear at a revolutionary price while leading the way for socially conscious businesses.

3. Products and Services

As the owner, you know your business and the industry inside and out. However, whoever’s reading your document might not. You’re going to need to break down your products and services in minute detail.

For example, if you own a SaaS business, you’re going to need to explain how this business model works and what you’re selling.

You’ll need to include:

• What services you sell: Describe the services you provide and how these will help your target audience.
• What products you sell: Describe your products (and types if applicable) and how they will solve a need for your target and provide value.
• How much you charge: If you’re selling services, will you charge hourly, per project, retainer, or a mixture of all of these? If you’re selling products, what are the price ranges?

4. Market Analysis

Your market analysis essentially explains how your products and services address customer concerns and pain points. This section will include research and data on the state and direction of your industry and target market.

This research should reveal lucrative opportunities and how your business is uniquely positioned to seize the advantage. You’ll also want to touch on your marketing strategy and how it will (or does) work for your audience.

Include a detailed analysis of your target customers. This describes the people you serve and sell your product to. Be careful not to go too broad here—you don’t want to fall into the common entrepreneurial trap of trying to sell to everyone and thereby not differentiating yourself enough to survive the competition.

The market analysis section will include your unique value proposition. Your unique value proposition (UVP) is the thing that makes you stand out from your competitors. This is your key to success.

If you don’t have a UVP, you don’t have a way to take on competitors who are already in this space. Here’s an example of an ecommerce internet business plan outlining their competitive edge:

FireStarters’ competitive advantage is offering product lines that make a statement but won’t leave you broke. The major brands are expensive and not distinctive enough to satisfy the changing taste of our target customers. FireStarters offers products that are just ahead of the curve and so affordable that our customers will return to the website often to check out what’s new.

5. Competitive Analysis

Your competitive analysis examines the strengths and weaknesses of competing businesses in your market or industry. This will include direct and indirect competitors. It can also include threats and opportunities, like economic concerns or legal restraints.

The best way to sum up this section is with a classic SWOT analysis. This will explain your company’s position in relation to your competitors.

6. Financial Strategy

Your financial strategy will sum up your revenue, expenses, profit (or loss), and financial plan for the future. It’ll explain how you make money, where your cash flow goes, and how you’ll become profitable or stay profitable.

This is one of the most important sections for lenders and investors. Have you ever watched Shark Tank? They always ask about the company’s financial situation. How has it performed in the past? What’s the ongoing outlook moving forward? How does the business plan to make it happen?

Answer all of these questions in your financial strategy so that your audience doesn’t have to ask. Go ahead and include forecasts and graphs in your plan, too:

• Balance sheet: This includes your assets, liabilities, and equity.
• Profit & Loss (P&L) statement: This details your income and expenses over a given period.
• Cash flow statement: Similar to the P&L, this one will show all cash flowing into and out of the business each month.

It takes cash to change the world—lenders and investors get it. If you’re short on funding, explain how much money you’ll need and how you’ll use the capital. Where are you looking for financing? Are you looking to take out a business loan, or would you rather trade equity for capital instead?

Read More: 16 Financial Concepts Every Entrepreneur Needs to Know

Startup Business Plan Template (Copy/Paste Outline)

Ready to write your own business plan? Copy/paste the startup business plan template below and fill in the blanks.

Executive Summary Remember, do this last. Summarize who you are and your business plan in one page.

Business Overview Describe your business. What’s it do? Who owns it? How’s it structured? What’s the mission statement?

Products and Services Detail the products and services you offer. How do they work? What do you charge?

Market Analysis Write about the state of the market and opportunities. Use date. Describe your customers. Include your UVP.

Competitive Analysis Outline the competitors in your market and industry. Include threats and opportunities. Add a SWOT analysis of your business.

Financial Strategy Sum up your revenue, expenses, profit (or loss), and financial plan for the future. If you’re applying for a loan, include how you’ll use the funding to progress the business.

5 Frame-Worthy Business Plan Examples

Want to explore other templates and examples? We got you covered. Check out these 5 business plan examples you can use as inspiration when writing your plan:

• SBA Wooden Grain Toy Company
• SBA We Can Do It Consulting
• OrcaSmart Business Plan Sample
• Plum Business Plan Template
• PandaDoc Free Business Plan Templates

Get to Work on Making Your Business Plan

If you find you’re getting stuck on perfecting your document, opt for a simple one-page business plan —and then get to work. You can always polish up your official plan later as you learn more about your business and the industry.

Remember, business plans are not a requirement for starting a business—they’re only truly essential if a bank or investor is asking for it.

Ask others to review your business plan. Get feedback from other startups and successful business owners. They’ll likely be able to see holes in your planning or undetected opportunities—just make sure these individuals aren’t your competitors (or potential competitors).

Your business plan isn’t a one-and-done report—it’s a living, breathing document. You’ll make changes to it as you grow and evolve. When the market or your customers change, your plan will need to change to adapt.

That means when you’re finished with this exercise, it’s not time to print your plan out and stuff it in a file cabinet somewhere. No, it should sit on your desk as a day-to-day reference. Use it (and update it) as you make decisions about your product, customers, and financial plan.

Review your business plan frequently, update it routinely, and follow the path you’ve developed to the future you’re building.

Keep Learning: New Product Development Process in 8 Easy Steps

What financial information should be included in a business plan?

Be as detailed as you can without assuming too much. For example, include your expected revenue, expenses, profit, and growth for the future.

What are some common mistakes to avoid when writing a business plan?

The most common mistake is turning your business plan into a textbook. A business plan is an internal guide and an external pitching tool. Cut the fat and only include the most relevant information to start and run your business.

Who should review my business plan before I submit it?

Co-founders, investors, or a board of advisors. Otherwise, reach out to a trusted mentor, your local chamber of commerce, or someone you know that runs a business.

Ready to Write Your Business Plan?

Don’t let creating a business plan hold you back from starting your business. Writing documents might not be your thing—that doesn’t mean your business is a bad idea.

Let us help you get started.

Join our free training to learn how to start an online side hustle in 30 days or less. We’ll provide you with a proven roadmap for how to find, validate, and pursue a profitable business idea (even if you have zero entrepreneurial experience).

Stuck on the ideas part? No problem. When you attend the masterclass, we’ll send you a free ebook with 100 of the hottest side hustle trends right now. It’s chock full of brilliant business ideas to get you up and running in the right direction.

About Jesse Sumrak

Jesse Sumrak is a writing zealot focused on creating killer content. He’s spent almost a decade writing about startup, marketing, and entrepreneurship topics, having built and sold his own post-apocalyptic fitness bootstrapped business. A writer by day and a peak bagger by night (and early early morning), you can usually find Jesse preparing for the apocalypse on a precipitous peak somewhere in the Rocky Mountains of Colorado.

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How To Write a Business Plan

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Starting a business is a wild ride, and a solid business plan can be the key to keeping you on track. A business plan is essentially a roadmap for your business — outlining your goals, strategies, market analysis and financial projections. Not only will it guide your decision-making, a business plan can help you secure funding with a loan or from investors .

Writing a business plan can seem like a huge task, but taking it one step at a time can break the plan down into manageable milestones. Here is our step-by-step guide on how to write a business plan.

Table of contents

• Write your executive summary
• Do your market research homework
• Set your business goals and objectives
• Plan your business strategy
• Describe your product or service
• Crunch the numbers
• Finalize your business plan

By signing up I agree to the Terms of Use and Privacy Policy .

Step 1: Write your executive summary

Though this will be the first page of your business plan , we recommend you actually write the executive summary last. That’s because an executive summary highlights what’s to come in the business plan but in a more condensed fashion.

An executive summary gives stakeholders who are reading your business plan the key points quickly without having to comb through pages and pages. Be sure to cover each successive point in a concise manner, and include as much data as necessary to support your claims.

You’ll cover other things too, but answer these basic questions in your executive summary:

• Idea: What’s your business concept? What problem does your business solve? What are your business goals?
• Product: What’s your product/service and how is it different?
• Market: Who’s your audience? How will you reach customers?
• Finance: How much will your idea cost? And if you’re seeking funding, how much money do you need? How much do you expect to earn? If you’ve already started, where is your revenue at now?

Step 2: Do your market research homework

The next step in writing a business plan is to conduct market research . This involves gathering information about your target market (or customer persona), your competition, and the industry as a whole. You can use a variety of research methods such as surveys, focus groups, and online research to gather this information. Your method may be formal or more casual, just make sure that you’re getting good data back.

This research will help you to understand the needs of your target market and the potential demand for your product or service—essential aspects of starting and growing a successful business.

Step 3: Set your business goals and objectives

Once you’ve completed your market research, you can begin to define your business goals and objectives. What is the problem you want to solve? What’s your vision for the future? Where do you want to be in a year from now?

Use this step to decide what you want to achieve with your business, both in the short and long term. Try to set SMART goals—specific, measurable, achievable, relevant, and time-bound benchmarks—that will help you to stay focused and motivated as you build your business.

Step 4: Plan your business strategy

Your business strategy is how you plan to reach your goals and objectives. This includes details on positioning your product or service, marketing and sales strategies, operational plans, and the organizational structure of your small business.

Make sure to include key roles and responsibilities for each team member if you’re in a business entity with multiple people.

Step 5: Describe your product or service

In this section, get into the nitty-gritty of your product or service. Go into depth regarding the features, benefits, target market, and any patents or proprietary tech you have. Make sure to paint a clear picture of what sets your product apart from the competition—and don’t forget to highlight any customer benefits.

Step 6: Crunch the numbers

Financial analysis is an essential part of your business plan. If you’re already in business that includes your profit and loss statement , cash flow statement and balance sheet .

These financial projections will give investors and lenders an understanding of the financial health of your business and the potential return on investment.

You may want to work with a financial professional to ensure your financial projections are realistic and accurate.

Step 7: Finalize your business plan

Once you’ve completed everything, it's time to finalize your business plan. This involves reviewing and editing your plan to ensure that it is clear, concise, and easy to understand.

You should also have someone else review your plan to get a fresh perspective and identify any areas that may need improvement. You could even work with a free SCORE mentor on your business plan or use a SCORE business plan template for more detailed guidance.

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The takeaway

Writing a business plan is an essential process for any forward-thinking entrepreneur or business owner. A business plan requires a lot of up-front research, planning, and attention to detail, but it’s worthwhile. Creating a comprehensive business plan can help you achieve your business goals and secure the funding you need.

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How to Write a Business Plan (Plus Examples & Templates)

• 3 years ago

Have you ever wondered how to write a business plan step by step? Mike Andes, told us: 

This guide will help you write a business plan to impress investors.

Throughout this process, we’ll get information from Mike Andes, who started Augusta Lawn Care Services when he was 12 and turned it into a franchise with over 90 locations. He has gone on to help others learn how to write business plans and start businesses.  He knows a thing or two about writing  business plans!

We’ll start by discussing the definition of a business plan. Then we’ll discuss how to come up with the idea, how to do the market research, and then the important elements in the business plan format. Keep reading to start your journey!

What Is a Business Plan?

A business plan is simply a road map of what you are trying to achieve with your business and how you will go about achieving it. It should cover all elements of your business including: 

• Finding customers
• Plans for developing a team
•  Competition
• Legal structures
• Key milestones you are pursuing

If you aren’t quite ready to create a business plan, consider starting by reading our business startup guide .

Get a Business Idea

Before you can write a business plan, you have to have a business idea. You may see a problem that needs to be solved and have an idea how to solve it, or you might start by evaluating your interests and skills. 

Mike told us, “The three things I suggest asking yourself when thinking about starting a business are:

• What am I good at?
• What would I enjoy doing?
• What can I get paid for?”

If all three of these questions don’t lead to at least one common answer, it will probably be a much harder road to success. Either there is not much market for it, you won’t be good at it, or you won’t enjoy doing it. 

As Mike told us, “There’s enough stress starting and running a business that if you don’t like it or aren’t good at it, it’s hard to succeed.”

If you’d like to hear more about Mike’s approach to starting a business, check out our YouTube video

Conduct Market Analysis

Market analysis is focused on establishing if there is a target market for your products and services, how large the target market is, and identifying the demographics of people or businesses that would be interested in the product or service. The goal here is to establish how much money your business concept can make.

Product and Service Demand

A search engine is your best friend when trying to figure out if there is demand for your products and services. Personally, I love using presearch.org because it lets you directly search on a ton of different platforms including Google, Youtube, Twitter, and more. Check out the screenshot for the full list of search options.

With quick web searches, you can find out how many competitors you have, look through their reviews, and see if there are common complaints about the competitors. Bad reviews are a great place to find opportunities to offer better products or services. 

If there are no similar products or services, you may have stumbled upon something new, or there may just be no demand for it. To find out, go talk to your most honest friend about the idea and see what they think. If they tell you it’s dumb or stare at you vacantly, there’s probably no market for it.

You can also conduct a survey through social media to get public opinion on your idea. Using Facebook Business Manager , you could get a feel for who would be interested in your product or service.

 I ran a quick test of how many people between 18-65  you could reach in the U.S. during a week. It returned an estimated 700-2,000 for the total number of leads, which is enough to do a fairly accurate statistical analysis.

Identify Demographics of Target Market

Depending on what type of business you want to run, your target market will be different. The narrower the demographic, the fewer potential customers you’ll have. If you did a survey, you’ll be able to use that data to help define your target audience. Some considerations you’ll want to consider are:

• Other Interests
• Marital Status
• Do they have kids?

Once you have this information, it can help you narrow down your options for location and help define your marketing further. One resource that Mike recommended using is the Census Bureau’s Quick Facts Map . He told us,  

“It helps you quickly evaluate what the best areas are for your business to be located.”

How to Write a Business Plan

Now that you’ve developed your idea a little and established there is a market for it, you can begin writing a business plan. Getting started is easier with the business plan template we created for you to download. I strongly recommend using it as it is updated to make it easier to create an action plan. 

Each of the following should be a section of your business plan:

• Business Plan Cover Page
• Table of Contents
• Executive Summary
• Company Description
• Description of Products and Services

SWOT Analysis

• Competitor Data
• Competitive Analysis
• Marketing Expenses Strategy 

Pricing Strategy

• Distribution Channel Assessment
• Operational Plan
• Management and Organizational Strategy
• Financial Statements and/or Financial Projections

We’ll look into each of these. Don’t forget to download our free business plan template (mentioned just above) so you can follow along as we go. 

How to Write a Business Plan Step 1. Create a Cover Page

The first thing investors will see is the cover page for your business plan. Make sure it looks professional. A great cover page shows that you think about first impressions.

A good business plan should have the following elements on a cover page:

• Professionally designed logo
• Company name
• Mission or Vision Statement
• Contact Info

Basically, think of a cover page for your business plan like a giant business card. It is meant to capture people’s attention but be quickly processed.

How to Write a Business Plan Step 2. Create a Table of Contents

Most people are busy enough that they don’t have a lot of time. Providing a table of contents makes it easy for them to find the pages of your plan that are meaningful to them.

A table of contents will be immediately after the cover page, but you can include it after the executive summary. Including the table of contents immediately after the executive summary will help investors know what section of your business plan they want to review more thoroughly.

Check out Canva’s article about creating a  table of contents . It has a ton of great information about creating easy access to each section of your business plan. Just remember that you’ll want to use different strategies for digital and hard copy business plans.

How to Write a Business Plan Step 3. Write an Executive Summary

An executive summary is where your business plan should catch the readers interest.  It doesn’t need to be long, but should be quick and easy to read.

Mike told us,

How long should an executive summary bein an informal business plan?

For casual use, an executive summary should be similar to an elevator pitch, no more than 150-160 words, just enough to get them interested and wanting more. Indeed has a great article on elevator pitches .  This can also be used for the content of emails to get readers’ attention.

It consists of three basic parts:

• An introduction to you and your business.
• What your business is about.
• A call to action

Example of an informal executive summary 

One of the best elevator pitches I’ve used is:

So far that pitch has achieved a 100% success rate in getting partnerships for the business.

What should I include in an executive summary for investors?

Investors are going to need a more detailed executive summary if you want to secure financing or sell equity. The executive summary should be a brief overview of your entire business plan and include:

• Introduction of yourself and company.
• An origin story (Recognition of a problem and how you came to solution)
• An introduction to your products or services.
• Your unique value proposition. Make sure to include intellectual property.
• Where you are in the business life cycle
• Request and why you need it.

Successful business plan examples

The owner of Urbanity told us he spent 2 months writing a 75-page business plan and received a $250,000 loan from the bank when he was 23. Make your business plan as detailed as possible when looking for financing. We’ve provided a template to help you prepare the portions of a business plan that banks expect.

Here’s the interview with the owner of Urbanity:

When to write an executive summary?

Even though the summary is near the beginning of a business plan, you should write it after you complete the rest of a business plan. You can’t talk about revenue, profits, and expected expenditures if you haven’t done the market research and created a financial plan.

What mistakes do people make when writing an executive summary?

Business owners commonly go into too much detail about the following items in an executive summary:

• Marketing and sales processes
• Financial statements
• Organizational structure
• Market analysis

These are things that people will want to know later, but they don’t hook the reader. They won’t spark interest in your small business, but they’ll close the deal.

How to Write a Business Plan Step 4. Company Description

Every business plan should include a company description. A great business plan will include the following elements while describing the company:

• Mission statement
• Philosophy and vision
• Company goals

Target market

• Legal structure

Let’s take a look at what each section includes in a good business plan.

Mission Statement

A mission statement is a brief explanation of why you started the company and what the company’s main focus is. It should be no more than one or two sentences. Check out HubSpot’s article 27 Inspiring Mission Statement for a great read on informative and inspiring mission and vision statements. 

Company Philosophy and Vision

The company philosophy is what drives your company. You’ll normally hear them called core values.  These are the building blocks that make your company different. You want to communicate your values to customers, business owners, and investors as often as possible to build a company culture, but make sure to back them up.

What makes your company different?

Each company is different. Your new business should rise above the standard company lines of honesty, integrity, fun, innovation, and community when communicating your business values. The standard answers are corporate jargon and lack authenticity. 

Examples of core values

One of my clients decided to add a core values page to their website. As a tech company they emphasized the values:

•  Prioritize communication.
•  Never stop learning.
•  Be transparent.
•  Start small and grow incrementally.

These values communicate how the owner and the rest of the company operate. They also show a value proposition and competitive advantage because they specifically focus on delivering business value from the start. These values also genuinely show what the company is about and customers recognize the sincerity. Indeed has a great blog about how to identify your core values .

What is a vision statement?

A vision statement communicate the long lasting change a business pursues. The vision helps investors and customers understand what your company is trying to accomplish. The vision statement goes beyond a mission statement to provide something meaningful to the community, customer’s lives, or even the world.

Example vision statements

The Alzheimer’s Association is a great example of a vision statement:

A world without Alzheimer’s Disease and other dementia.

It clearly tells how they want to change the world. A world without Alzheimers might be unachievable, but that means they always have room for improvement.

Business Goals

You have to measure success against goals for a business plan to be meaningful. A business plan helps guide a company similar to how your GPS provides a road map to your favorite travel destination. A goal to make as much money as possible is not inspirational and sounds greedy.

Sure, business owners want to increase their profits and improve customer service, but they need to present an overview of what they consider success. The goals should help everyone prioritize their work.

How far in advance should a business plan?

Business planning should be done at least one year in advance, but many banks and investors prefer three to five year business plans. Longer plans show investors that the management team  understands the market and knows the business is operating in a constantly shifting market. In addition, a plan helps businesses to adjust to changes because they have already considered how to handle them.

Example of great business goals

My all time-favorite long-term company goals are included in Tesla’s Master Plan, Part Deux . These goals were written in 2016 and drive the company’s decisions through 2026. They are the reason that investors are so forgiving when Elon Musk continually fails to meet his quarterly and annual goals.

If the progress aligns with the business plan investors are likely to continue to believe in the company. Just make sure the goals are reasonable or you’ll be discredited (unless you’re Elon Musk).

You did target market research before creating a business plan. Now it’s time to add it to the plan so others understand what your ideal customer looks like. As a new business owner, you may not be considered an expert in your field yet, so document everything. Make sure the references you use are from respectable sources. 

Use information from the specific lender when you are applying for lending. Most lenders provide industry research reports and using their data can strengthen the position of your business plan.

A small business plan should include a section on the external environment. Understanding the industry is crucial because we don’t plan a business in a vacuum. Make sure to research the industry trends, competitors, and forecasts. I personally prefer IBIS World for my business research. Make sure to answer questions like:

• What is the industry outlook long-term and short-term?
• How will your business take advantage of projected industry changes and trends?
• What might happen to your competitors and how will your business successfully compete?

Industry resources

Some helpful resources to help you establish more about your industry are:

• Trade Associations
• Federal Reserve
• Bureau of Labor Statistics

Legal Structure

There are five basic types of legal structures that most people will utilize:

• Sole proprietorships
• Limited Liability Companies (LLC)

Partnerships

Corporations.

• Franchises.

Each business structure has their pros and cons. An LLC is the most common legal structure due to its protection of personal assets and ease of setting up. Make sure to specify how ownership is divided and what roles each owner plays when you have more than one business owner.

You’ll have to decide which structure is best for you, but we’ve gathered information on each to make it easier.

Sole Proprietorship

A sole proprietorship is the easiest legal structure to set up but doesn’t protect the owner’s personal assets from legal issues. That means if something goes wrong, you could lose both your company and your home.

To start a sole proprietorship, fill out a special tax form called a  Schedule C . Sole proprietors can also join the American Independent Business Alliance .

Limited Liability Company (LLC)

An LLC is the most common business structure used in the United States because an LLC protects the owner’s personal assets. It’s similar to partnerships and corporations, but can be a single-member LLC in most states. An LLC requires a document called an operating agreement.

Each state has different requirements. Here’s a link to find your state’s requirements . Delaware and Nevada are common states to file an LLC because they are really business-friendly. Here’s a blog on the top 10 states to get an LLC.

Partnerships are typically for legal firms. If you choose to use a partnership choose a Limited Liability Partnership. Alternatively, you can just use an LLC.

Corporations are typically for massive organizations. Corporations have taxes on both corporate and income tax so unless you plan on selling stock, you are better off considering an LLC with S-Corp status . Investopedia has good information corporations here .

There are several opportunities to purchase successful franchises. TopFranchise.com has a list of companies in a variety of industries that offer franchise opportunities. This makes it where an entrepreneur can benefit from the reputation of an established business that has already worked out many of the kinks of starting from scratch.

How to Write a Business Plan Step 5. Products and Services

This section of the business plan should focus on what you sell, how you source it, and how you sell it. You should include:

• Unique features that differentiate your business products from competitors
• Intellectual property
• Your supply chain
• Cost and pricing structure 

Questions to answer about your products and services

Mike gave us a list  of the most important questions to answer about your product and services:

• How will you be selling the product? (in person, ecommerce, wholesale, direct to consumer)?
• How do you let them know they need a product?
• How do you communicate the message?
• How will you do transactions?
• How much will you be selling it for?
• How many do you think you’ll sell and why?

Make sure to use the worksheet on our business plan template .

How to Write a Business Plan Step 6. Sales and Marketing Plan

The marketing and sales plan is focused on the strategy to bring awareness to your company and guides how you will get the product to the consumer.  It should contain the following sections:

SWOT Analysis stands for strengths, weaknesses, opportunities, and threats. Not only do you want to identify them, but you also want to document how the business plans to deal with them.

Business owners need to do a thorough job documenting how their service or product stacks up against the competition.

If proper research isn’t done, investors will be able to tell that the owner hasn’t researched the competition and is less likely to believe that the team can protect its service from threats by the more well-established competition. This is one of the most common parts of a presentation that trips up business owners presenting on Shark Tank .

SWOT Examples

Examples of strengths and weaknesses could be things like the lack of cash flow, intellectual property ownership, high costs of suppliers, and customers’ expectations on shipping times.

Opportunities could be ways to capitalize on your strengths or improve your weaknesses, but may also be gaps in the industry. This includes:

• Adding offerings that fit with your current small business
• Increase sales to current customers
• Reducing costs through bulk ordering
• Finding ways to reduce inventory
•  And other areas you can improve

Threats will normally come from outside of the company but could also be things like losing a key member of the team. Threats normally come from competition, regulations, taxes, and unforeseen events.

The management team should use the SWOT analysis to guide other areas of business planning, but it absolutely has to be done before a business owner starts marketing. 

Include Competitor Data in Your Business Plan

When you plan a business, taking into consideration the strengths and weaknesses of the competition is key to navigating the field. Providing an overview of your competition and where they are headed shows that you are invested in understanding the industry.

For smaller businesses, you’ll want to search both the company and the owners names to see what they are working on. For publicly held corporations, you can find their quarterly and annual reports on the SEC website .

What another business plans to do can impact your business. Make sure to include things that might make it attractive for bigger companies to outsource to a small business.

Marketing Strategy

The marketing and sales part of business plans should be focused on how you are going to make potential customers aware of your business and then sell to them.

If you haven’t already included it, Mike recommends:

“They’ll want to know about Demographics, ages, and wealth of your target market.”

Make sure to include the Total addressable market .  The term refers to the value if you captured 100% of the market.

Advertising Strategy

You’ll explain what formats of advertising you’ll be using. Some possibilities are:

• Online: Facebook and Google are the big names to work with here.
• Print : Print can be used to reach broad groups or targeted markets. Check out this for tips .
• Radio : iHeartMedia is one of the best ways to advertise on the radio
• Cable television : High priced, hard to measure ROI, but here’s an explanation of the process
• Billboards: Attracting customers with billboards can be beneficial in high traffic areas.

You’ll want to define how you’ll be using each including frequency, duration, and cost. If you have the materials already created, including pictures or links to the marketing to show creative assets.

Mike told us “Most businesses are marketing digitally now due to Covid, but that’s not always the right answer.”

Make sure the marketing strategy will help team members or external marketing agencies stay within the brand guidelines .

This section of a business plan should be focused on pricing. There are a ton of pricing strategies that may work for different business plans. Which one will work for you depends on what kind of a business you run.

Some common pricing strategies are:

• Value-based pricing – Commonly used with home buying and selling or other products that are status symbols.
• Skimming pricing – Commonly seen in video game consoles, price starts off high to recoup expenses quickly, then reduces over time.
• Competition-based pricing – Pricing based on competitors’ pricing is commonly seen at gas stations.
• Freemium services –  Commonly used for software, where there is a free plan, then purchase options for more functionality.

HubSpot has a great calculator and blog on pricing strategies.

Beyond explaining what strategy your business plans to use, you should include references for how you came to this pricing strategy and how it will impact your cash flow.

Distribution Plan

This part of a business plan is focused on how the product or service is going to go through the supply chain. These may include multiple divisions or multiple companies. Make sure to include any parts of the workflow that are automated so investors can see where cost savings are expected and when.

Supply Chain Examples

For instance, lawn care companies  would need to cover aspects such as:

• Suppliers for lawn care equipment and tools
• Any chemicals or treatments needed
• Repair parts for sprinkler systems
• Vehicles to transport equipment and employees
• Insurance to protect the company vehicles and people.

Examples of Supply Chains

These are fairly flat supply chains compared to something like a clothing designer where the clothes would go through multiple vendors. A clothing company might have the following supply chain:

• Raw materials
• Shipping of raw materials
• Converting of raw materials to thread
• Shipping thread to produce garments
• Garment producer
• Shipping to company
• Company storage
• Shipping to retail stores

There have been advances such as print on demand that eliminate many of these steps. If you are designing completely custom clothing, all of this would need to be planned to keep from having business disruptions.

The main thing to include in the business plan is the list of suppliers, the path the supply chain follows, the time from order to the customer’s home, and the costs associated with each step of the process.

According to BizPlanReview , a business plan without this information is likely to get rejected because they have failed to research the key elements necessary to make sales to the customer.

How to Write a Business Plan Step 7. Company Organization and Operational Plan

This part of the business plan is focused on how the business model will function while serving customers.  The business plan should provide an overview of  how the team will manage the following aspects:

Quality Control

• Legal environment

Let’s look at each for some insight.

Production has already been discussed in previous sections so I won’t go into it much. When writing a business plan for investors, try to avoid repetition as it creates a more simple business plan.

If the organizational plan will be used by the team as an overview of how to perform the best services for the customer, then redundancy makes more sense as it communicates what is important to the business.

Quality control policies help to keep the team focused on how to verify that the company adheres to the business plan and meets or exceeds customer expectations.

Quality control can be anything from a standard that says “all labels on shirts can be no more than 1/16″ off center” to a defined checklist of steps that should be performed and filled out for every customer.

There are a variety of organizations that help define quality control including:

• International Organization for Standardization – Quality standards for energy, technology, food, production environments, and cybersecurity
• AICPA – Standard defined for accounting.
• The Joint Commission – Healthcare
• ASHRAE – HVAC best practices

You can find lists of the organizations that contribute most to the government regulation of industries on Open Secrets . Research what the leaders in your field are doing. Follow their example and implement it in your quality control plan.

For location, you should use information from the market research to establish where the location will be. Make sure to include the following in the location documentation.

• The size of your location
• The type of building (retail, industrial, commercial, etc.)
• Zoning restrictions – Urban Wire has a good map on how zoning works in each state
• Accessibility – Does it meet ADA requirements?
• Costs including rent, maintenance, utilities, insurance and any buildout or remodeling costs
• Utilities – b.e.f. has a good energy calculator .

Legal Environment

The legal requirement section is focused on defining how to meet the legal requirements for your industry. A good business plan should include all of the following:

• Any licenses and/or permits that are needed and whether you’ve obtained them
• Any trademarks, copyrights, or patents that you have or are in the process of applying for
• The insurance coverage your business requires and how much it costs
• Any environmental, health, or workplace regulations affecting your business
• Any special regulations affecting your industry
• Bonding requirements, if applicable

Your local SBA office can help you establish requirements in your area. I strongly recommend using them. They are a great resource.

Your business plan should include a plan for company organization and hiring. While you may be the only person with the company right now, down the road you’ll need more people. Make sure to consider and document the answers to the following questions:

• What is the current leadership structure and what will it look like in the future?
• What types of employees will you have? Are there any licensing or educational requirements?
• How many employees will you need?
• Will you ever hire freelancers or independent contractors?
• What is each position’s job description?
• What is the pay structure (hourly, salaried, base plus commission, etc.)?
• How do you plan to find qualified employees and contractors?

One of the most crucial parts of a business plan is the organizational chart. This simply shows the positions the company will need, who is in charge of them and the relationship of each of them. It will look similar to this:

Our small business plan template has a much more in-depth organizational chart you can edit to include when you include the organizational chart in your business plan.

How to Write a Business Plan Step 8. Financial Statements 

No business plan is complete without financial statements or financial projections. The business plan format will be different based on whether you are writing a business plan to expand a business or a startup business plan. Let’s dig deeper into each.

Provide All Financial Income from an Existing Business

An existing business should use their past financial documents including the income statement, balance sheet, and cash flow statement to find trends to estimate the next 3-5 years.

You can create easy trendlines in excel to predict future revenue, profit and loss, cash flow, and other changes in year-over-year performance. This will show your expected performance assuming business continues as normal.

If you are seeking an investment, then the business is probably not going to continue as normal. Depending on the financial plan and the purpose of getting financing, adjustments may be needed to the following:

• Higher Revenue if expanding business
• Lower Cost of Goods Sold if purchasing inventory with bulk discounts
• Adding interest if utilizing financing (not equity deal)
• Changes in expenses
• Addition of financing information to the cash flow statement
• Changes in Earnings per Share on the balance sheet

Financial modeling is a challenging subject, but there are plenty of low-cost courses on the subject. If you need help planning your business financial documentation take some time to watch some of them.

Make it a point to document how you calculated all the changes to the income statement, balance sheet, and cash flow statement in your business plan so that key team members or investors can verify your research.

Financial Projections For A Startup Business Plan

Unlike an existing business, a startup doesn’t have previous success to model its future performance. In this scenario, you need to focus on how to make a business plan realistic through the use of industry research and averages.

Mike gave the following advice in his interview:

Financial Forecasting Mistakes

One of the things a lot of inexperienced people use is the argument, “If I get one percent of the market, it is worth $100 million.” If you use this, investors are likely to file the document under bad business plan examples.

Let’s use custom t-shirts as an example.

Credence Research estimated in 2018 there were 11,334,800,000 custom t-shirts sold for a total of $206.12 Billion, with a 6% compound annual growth rate.

With that data,  you can calculate that the industry will grow to $270 Billion in 2023 and that the average shirt sold creates $18.18 in revenue.

Combine that with an IBIS World estimate of 11,094 custom screen printers and that means even if you become an average seller, you’ll get .009% of the market.

Here’s a table for easier viewing of that information.

The point here is to make sure your business proposal examples make sense.

You’ll need to know industry averages such as cost of customer acquisition, revenue per customer, the average cost of goods sold, and admin costs to be able to create accurate estimates.

Our simple business plan templates walk you through most of these processes. If you follow them you’ll have a good idea of how to write a business proposal.

How to Write a Business Plan Step 9. Business Plan Example of Funding Requests

What is a business plan without a plan on how to obtain funding?

The Small Business Administration has an example for a pizza restaurant that theoretically needed nearly $20k to make it through their first month.

In our video, How to Start a $500K/Year T-Shirt Business (Pt. 1 ), Sanford Booth told us he needed about $200,000 to start his franchise and broke even after 4 months.

Freshbooks estimates it takes on average 2-3 years for a business to be profitable, which means the fictitious pizza company from the SBA could need up to $330k to make it through that time and still pay their bills for their home and pizza shop.

Not every business needs that much to start, but realistically it’s a good idea to assume that you need a fairly large cushion.

Ways to get funding for a small business

There are a variety of ways to cover this. the most common are:

• Bootstrapping – Using your savings without external funding.
• Taking out debt – loans, credit cards
• Equity, Seed Funding – Ownership of a percentage of the company in exchange for current funds
• Crowdsourcing – Promising a good for funding to create the product

Keep reading for more tips on how to write a business plan.

How funding will be used

When asking for business financing make sure to include:

• How much to get started?
• What is the minimum viable product and how soon can you make money?
• How will the money be spent?

Mike emphasized two aspects that should be included in every plan, 

How to Write a Business Plan Resources

Here are some links to a business plan sample and business plan outline. 

• Sample plan

It’s also helpful to follow some of the leading influencers in the business plan writing community. Here’s a list:

• Wise Plans –  Shares a lot of information on starting businesses and is a business plan writing company.
• Optimus Business Plans –  Another business plan writing company.
• Venture Capital – A venture capital thread that can help give you ideas.

How to Write a Business Plan: What’s Next?

We hope this guide about how to write a simple business plan step by step has been helpful. We’ve covered:

• The definition of a business plan
• Coming up with a business idea
• Performing market research
• The critical components of a business plan
• An example business plan

In addition, we provided you with a simple business plan template to assist you in the process of writing your startup business plan. The startup business plan template also includes a business model template that will be the key to your success.

Don’t forget to check out the rest of our business hub .

Have you written a business plan before? How did it impact your ability to achieve your goals?

Brandon Boushy

Brandon Boushy lives to improve people’s lives by helping them become successful entrepreneurs. His journey started nearly 30 years ago. He consistently excelled at everything he did, but preferred to make the rules rather than follow him. His exploration of self and knowledge has helped him to get an engineering degree, MBA, and countless certifications. When freelancing and rideshare came onto the scene, he recognized the opportunity to play by his own rules. Since 2017, he has helped businesses across all industries achieve more with his research, writing, and marketing strategies. Since 2021, he has been the Lead Writer for UpFlip where he has published over 170 articles on small business success.

Related posts

• September 27, 2023

How to Start a Business: The Ultimate Guide (2024)

• August 3, 2022

Free Business Plan Template (With Examples)

• May 3, 2022

How to Get a Business License (In 3 Steps)

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A Comprehensive Guide to Writing a Business Plan in 2024

Table of contents

Do you remember the first business plan you made? It could be with your school pal to open a restaurant or with your college buddy to start a design firm. No matter what stage of life you’re at, every new business needs a plan. It’ll help you lay the foundation.

A business plan comprises your company’s goals and intentions. 

Here are the top strategic tips on writing a winning business plan to give life to your entrepreneurial dream.

Do I really need a business plan?

When evaluating how to structure a business, you might wonder:

• How do I convey my ideas clearly?
• How can I assess each approach?
• How can I effectively talk about the company’s goals?
• What will help me partner with potential companies?
• How do I make my business lucrative in a  competitive market?

Investors rely on a comprehensive business plan to understand how you expect to make profits. 

1. Research for strategic decisions

You can’t develop a business plan without investing time in research. To better understand market trends, consumer behavior, and competitor’s strategies, perform extensive research that a business plan mandates.

2. Vision through words

It helps you compellingly present the ideas to gain investors', partners’, and consumers’ interests. 

3. Earns potential partners

It helps get investors or collaborators interested in your business by showcasing how it is worth investing in. 

5 things to keep in mind while writing your business plan

Writing a stellar business plan demands attention to detail. Here are the crucial elements to bear in mind while composing a plan. 

1. Audience

Are you writing it for an investor or a partner? Based on the audience, you need to understand their perspective, concerns, and expectations. 

Is your business plan clearly defining the goals? Ensure it gives a clear picture of the company's short-term and long-term objectives. 

3. Comprehensive research

Did you analyze market trends? Dig deep into the research to get a comprehensive industry analysis. It will help you exhibit your company’s innovative approach.

Who could be your most effective research partner? Wordtune!

Let’s say you’re planning to begin a packaging venture. While preparing the business plan, you need to know the facts and figures about the industry's growth. So, how do you go about it? 

With Wordtune’s AI feature, you can write a detailed prompt mentioning the data that you need to procure. For example, ask ‘How is the packaging industry performing?’ and Wordtune will develop relevant, up-to-date information.

Get Wordtune for free > Get Wordtune for free >

4. Crisp points

Do you prefer reading through lengthy texts or crisp points? The latter, right? Make sure to present the data with crisp and precise facts. 

5. Tone and style

While a business plan is the key to exhibiting your business approach, don’t miss out on reflecting your personality. While you keep the content in a professional tonality, make it more enjoyable with a little hint of quirkiness. 

Wordtune helps in effortlessly jazzing the tone and style of your business plan. Let’s understand with an example of a venture’s brief. 

‘FurniturePro is a leading venture in the furniture design industry specializing in sustainable design. We’re transforming modern spaces through our eco-friendly and innovative approach. Our designs speak all about sleek and functional designs.’

Do you wish to add a casual touch to the tonality? Here’s how Wordtune works.

This tool helps you refine your tone by giving suggestions according to your intended style.

9 Steps to Writing a Comprehensive Business Plan

To outline your business’ goals and approach holistically, here is our step-by-step guide on writing a compelling business plan. 

1. Executive summary

An executive summary is the first page of a business plan, offering a trailer for more to come. Thus, it needs to be well-written and captivating. Consider it an elevator pitch and summarize your company’s plan by highlighting the critical points like the objective, mission, growth trajectory, unique value proposition, etc.

Pro-tip: As an executive summary offers insights into the overall plan, write it at the end. It will make the task more manageable as you can pick information from the relevant sections and precisely mention it here. 

With Wordtune, you can curate the executive summary by offering a brief prompt. For example, you’re an architect seeking investors for your firm. What do you need to grab their attention? A holistic business plan that helps them understand the perks of funding your business.

Let’s see how Wordtune helps in this case. All you need to do is feed the details that must be present in the summary and witness the magic. 

To convey the ideas better, it breaks up the details under sub-headings to enhance readability and mention every detail.

2. About your company

What is your company’s name? Where is it located? Who are the leaders of the company?

Whenever we’re going through a business plan, aren’t these the first questions popping up in our heads? After the executive summary, introduce your company.

Define the overall business structure, whether a corporation, partnership, or sole proprietorship. While mentioning these details, include each leader's ownership and involvement percentage. Give a gist of the past and present through a brief timeline, and prepare the readers to delve into the future that follows in the next section.

3. Your business goals

Nobody prefers sailing a boat without a compass, right? Similarly, every investor or potential stakeholder needs a clear picture of the business and its growth strategies before investing. This is why this section is crucial. Define your short-term and long-term objectives of the company.

Make sure to cover the following points in the business goal:

• Why do you need funds for the business?
• What are the benefits financing brings to the growth of your company?
• What is your approach to achieving growth targets?

It must exhibit a win-win case for your company and investor’s ROI.

4. All about your products and services

With the company’s past, present, and future in line, it’s time to delve into the details of the product.

• What is the product or service your company offers?
• What is the typical pricing?
• What is your target audience?
• What is your strategy to fulfill the supply chain and demands?
• What is your sales path?
• What is the distribution strategy for a product or service? 

Make sure to mention every minute detail about the offerings and throw light on their unique features, advantages, and how they add value to consumers. 

5. What does market research say?

As you step into a niche, research is vital. 

Once you’ve researched the market, present your unique approach in the business plan. Mention how your product or service is better than the rest. Explain about your competitors, discuss their approach, and define how your course stays a step ahead.

Pro-tip: Sequence it by showcasing your market understanding first. After that, mention the critical pain points, identify the challenges, and how you transform them into opportunities.

6. Outline the marketing plan

What is your marketing strategy? Address your roadmap to reach and engage with the target audience. How are you planning to promote your products, and what is your process for building a lasting impression?

Mention details about the sales tactics, channels, and promotional campaigns. 

7. Business financial analysis

Numbers can speak volumes. If you’re writing a business plan for an existing business, flaunt the profit-and-loss statements to showcase the financials. List the assets, debts, cash flow, etc., through a balance sheet. Consider adding the following details:

• Current Ratio– the company’s current liquidity and potential to repay the debts.
• Net Profit Margin– what is the percentage of revenue reserved as net income?
• Accounts Receivable Turnover Ratio– details about the frequency of collecting receivables annually.

Present the data through graphs or charts to gain the reader's attention. It offers better clarity on financial health and sustainability in the future.

8. Generate financial projections

You must clearly show your investors or partners the company’s future finances. It outlines your potential to repay the loans or how the company will provide promising ROIs. Add monthly or quarterly sales, expenditures, and estimated profits for at least three years.

Develop realistic projections, as these are the financial roadmap guiding significant decisions and strategies. 

9. Added information

Do you have additional information, like licenses, certifications, permits, contracts, credit history, etc., that didn’t fit elsewhere? Add it to this section.

Use it as a miscellaneous section to add relevant information driving your business growth.

Download our free business plan template here

Examples of the top-selling business plans, 1. patagonia.

Start your business plan with a strong mission statement that sets a tone at the beginning. For example, this being an environmentally friendly company, the entire plan for this brand revolves around how their clothing is eco-friendly for silent sports that don’t have engines. 

2. NALB Creative Center

This business plan covers every aspect of the venture, including summary, services, market analysis, etc. The market analysis offers insights into the breakdown of target customers, clearly communicating the potential for business growth. 

In this business plan, visuals help narrate the brand’s story. The rich usage of images aligns with the brand’s ethos of adopting an innovative approach. An addition of financial charts further helps in portraying the finances clearly. 

4. LiveShopBuy

This business plan effectively focuses on investment opportunities through strategically positioning facts. It talks about investments first to seek funding and then leads to the further details and services the company offers.

5. Lula Body

This business plan doesn’t shy away from reflecting the finances. From service charges to expected revenues, it covers every aspect precisely and presents it crisply for readers to grasp the takeaways. 

Say hello to your business buddy!

Coming up with an impactful business plan sounds challenging. But not when you have Wordtune as your assistant.

From generating fresh ideas to enhancing existing ones, there is an array of tools Wordtune offers. It helps you refine the tonality and introduce a unique style to the content. Whether the plan is to build a network through a business plan or gain collaborators, with Wordtune, you can rest assured to strike the right tone.

Building a roadmap with a business plan

The business plan is much more than just a document. A business plan can help investors and owners better understand what the future holds for the business.

A holistic business plan exhibits the vision and aspirations you aim to achieve. Thus, give thought and weightage to every word in that document. It should be detailed, realistic, and achievable. Regularly check the business plan to ensure that it stays relevant and updated with the transforming industrial trends.

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How to Write a Business Plan in 2023: The Ultimate Guide for Every Entrepreneur

Are you starting a new business or trying to get a loan for your existing venture? If so, you’re going to need to know how to write a business plan. Business plans give entrepreneurs the opportunity to formally analyze and define every aspect of their business idea .

In this post, you’ll learn how to put together a business plan and find the best resources to help you along the way.

Start selling online now with Shopify

What is a Business Plan? 

A business plan is a formal document that outlines your business’s goals and how you will achieve those goals. Entrepreneurs who start out with business plans are 16 percent more likely to build successful companies , according to the Harvard Business Review.  Developing a business plan ensures sustainable success, guiding you as you grow your business, legitimizing your venture, and helping you secure funding (among countless other benefits). 

What Are the Main Purposes of a Business Plan?

Most financial institutions and service providers require you to submit a detailed business plan to obtain funding for your business. Online businesses will likely have a low overhead to start, so they may not need funding and therefore may not feel the need to write a business plan. That said, writing a business plan is still a good idea as it can help you secure a drastic increase limit on your credit card as your business grows or open a business account. This varies per bank.

If you’re growing your business, use it to help you raise expansion capital, create a growth strategy, find opportunities, and mitigate risks.Palo Alto software found that companies who make business plans are twice as likely to secure funding . .

→ Click Here to Launch Your Online Business with Shopify

If you’re just starting your business, making a business plan can help you  identify your strengths and weaknesses, communicate your vision to others, and develop accurate forecasts.

How to Make a Business Plan: The Prerequisites 

Here are the prerequisites to creating a solid business plan:

• Establish goals
• Understand your audience
• Determine your business plan format
• Get to writing! 

Establish Goals

There are two key questions to ask here: 

• What are you hoping to accomplish with your business?
• What are you hoping to accomplish with your business plan?

Approaching your business plan through that lens will help you focus on the end goal throughout the writing process. These also provide metrics to measure success against. 

Before writing your business plan, gather the content and data needed to inform what goes in it. This includes researching your market and industry – spanning everything from customer research to legalities you’ll need to consider. It’s a lot easier to start with the information already in front of you instead of researching each section individually as you go. 

Turn to guides, samples, and small business plan templates to help. Many countries have an official administration or service dedicated to providing information, resources, and tools to help entrepreneurs and store owners plan, launch, manage, and grow their businesses. 

The following will take you to online business plan guides and templates for specific countries.

• United States Small Business Administration (SBA) – The “write your business plan page” includes traditional and lean startup business plan formats, three downloadable sample business plans, a template, and a step-by-step build a business plan tool.
• Australian Government – The “business plan template” page includes a downloadable template, guide, and business plan creation app.
• UK Government Business and Self-Employed – The “write a business plan” page includes links to a downloadable business plan template and resources from trusted UK businesses. .
• Canada Business Network – The “writing your business plan” page includes a detailed guide to writing your business plan and links to business plan templates from Canadian business development organizations and banks.

These business resource sites also offer a wealth of valuable information for entrepreneurs including local and regional regulations, structuring, tax obligations, funding programs, market research data, and much more. Visit the sites above or do the following Google searches to find official local business resources in your area:

• your country government business services
• your state/province government business services
• your city government business services

Some Chamber of Commerce websites offer resources for business owners, including business plan guides and templates. Check your local chapter to see if they have any.

Banks that offer business funding also often have a resource section for entrepreneurs. Do a Google search to find banks that offer business funding as well as business plan advice to see the business plans that get funding. If your bank doesn’t offer any advice, search for the largest banks in your area:

• business plan guide bank name
• business plan samples bank name
• business plan template bank name

If you’re looking for more sample business plans, Bplans has over 500 free business plan samples organized by business type as well as a business plan template. Their collection includes 116 business plans for retail and online stores. Shopify also offers business plan templates intended to help small business owners and aspiring entrepreneurs identify functional areas of a business they may not have considered.

Understand Your Audience

Because business plans serve different purposes, you’re not always presenting it to the same audience. It’s important to understand who’s going to be reading your business plan, what you’re trying to convince them to do, and what hesitations they might have. 

That way, you can adapt your business plan accordingly. As such, your audience also determines which type of business plan format you use. Which brings us to our next point…

Which Business Plan Format Should You Use? 

The United States Small Business Administration (SBA) presents two business plan formats: 

• The traditional business plan format is for entrepreneurs who want to create a detailed plan for themselves or for business funding. 
• The lean startup business plan format, on the other hand, is for business owners that want to create a condensed, single-page business plan.

If the business plan is just for you and internal folks, draft a lean startup business plan or a customized version of the traditional business plan with only the sections you need. If you need it for business funding or other official purposes, choose the formal business plan and thoroughly complete the required sections while paying extra attention to financial projections.

If your business operates outside the U.S., clarify the preferred format with your bank.

How to Create a Business Plan: Questions to Ask Yourself

As you write a business plan, take time to not only analyze your business idea, but yourself as well. Ask the following questions to help you analyze your business idea along the way:

• Why do I want to start or expand my business?
• Do my goals (personal and professional) and values align with my business idea?
• What income do I need to generate for myself?
• What education, experience, and skills do I bring to my business?

How to Write a Business Plan Step by Step

According to the business plan template created by SCORE, Deluxe, and the SBA , a traditional business plan encompasses the following sections. 

• Executive summary
• Company description
• Products & services
• Market analysis
• Marketing & sales
• Management & organization
• Funding request
• Financial projections
• SWOT analysis

Since not everyone is aware of the key details to include in each section, we’ve listed information you can copy to fill in your business plan outline. Here’s how to build a business plan step by step.  

Executive Summary

The Executive Summary is the first part of your business plan, so this is where you need to hook readers in. Every business plan starts this way — even a simple business plan template should kick off with the Executive Summary. Summarize your entire business plan in a single page, highlighting details about your business that will excite potential investors and lenders. 

Explain what your business has to offer, your target market , what separates you from the competition, a little bit about yourself and the core people behind your business, and realistic projections about your business’ success.

While this is the first section of your business plan, write it after you’ve completed the rest of your business plan. It’s a lot easier because you can pull from the sections you’ve already written, and it’s easier to identify the best parts of your business plan to include on the first page.

Company Description

In the Company Description, share 411 about your business. Include basic details like: 

• Legal structure (sole proprietor, partnership, corporation, etc.)
• Business and tax ID numbers
• When the business started
• Ownership information
• Number of employees

Your mission statement , philosophy and values, vision, short- and long-term goals, and milestones along with a brief overview of your industry, market, outlook, and competitors should also be in the Company Description.

Pro tip: These are the details you’ll use each time you create a business profile, whether that's on social media, business directories, or other networks. Keep your information consistent to reduce confusion and instill more confidence in potential customers. 

Products & Services

The Products & Services section details what you plan to sell to customers. For a dropshipping business , this section should explain which trending products you’re going to sell, the pain points your products solve for customers, how you’ll price your products compared to your competitors, expected profit margin, and production and delivery details.

Remember to include any unique selling points for specific products or product groupings, such as low overhead, exclusive agreements with vendors, the ability to obtain products that are in short supply / high demand based on your connections, personalized customer service, or other advantages.

For dropshipping businesses selling hundreds or even thousands of products, detail the main categories of products and the number of products you plan to offer within each category. By doing this, it’s easier to visualize your business offerings as a whole to determine if you need more products in one category to fully flesh out your online store.

Market Analysis

The Market Analysis section of your business plan allows you to share the research you have done to learn about your target audience — the potential buyers of your products. People requesting a business plan will want to know that you have a solid understanding of your industry, the competitive landscape, who’s most likely to become your customers. It’s important to demonstrate that  there’s a large enough market for your product to make it profitable and/or to make a strong return on investment .

To complete the Market Analysis component of your business plan, check out the following resources for industry, market, and local economic research:

• U.S. Embassy websites in most countries have a business section with information for people who want to sell abroad. Business sections include a basic “getting started” guide, links to economic and data reports, trade events, and additional useful business links for a particular region.
• IBISWorld is a provider of free and paid industry research and procurement research reports for the United States , United Kingdom , Australia , and New Zealand .  
• Statista offers free and paid statistics and studies from over 18,000 sources including industry reports, country reports, market studies, outlook reports, and consumer market reports.   

Use these websites and others to learn about the projected growth of your industry and your potential profitability. You can also use social media tools like Facebook Audience Insights to estimate the size of your target market on the largest social network

Another way to research your market and products is through Google Trends . This free tool will allow you to see how often people search for the products your business offers over time. Be sure to explain how your business plans to capitalize on increasing and decreasing search trends accordingly.

Marketing & Sales

Knowing your target market is half the battle. In the Marketing & Sales section, share how you plan to reach and sell products to your target market. Outline the marketing and advertising strategies you intend to use to market your product to potential customers – search marketing , social media marketing , email marketing , and influencer marketing methods .

If you’re unsure how to market your business’ products, analyze your competitors for some inspiration. Discovering your competition’s marketing tactics will help you customize your own strategy for building a customer base and ultimately taking your business to the next level. 

Do a Google search for your competitor’s business name to find the websites, social accounts, and content they’ve created to market their products. Look at the ways your competitor uses each online entity to drive new customers to their website and product pages.

Then come up with a plan to convert a similar audience with your marketing and advertising messages. For dropshipping businesses, conversions will typically take place on your website as people purchase your products and/or by phone if you take orders over the phone. 

Management & Organization

In the Management & Organization piece of your business plan, describe the structure of your business. In terms of legal structure and incorporation, most businesses are classified as sole proprietorships (one owner), partnerships (two or more owners), corporations, or S corporations.

Draft a condensed resume for each of the key members of your business. If you’re a solopreneur , include how your past education and work experience will help you run each aspect of your business. If you have one or more partner(s) and employee(s), include their relevant education and experience as well.

Think of this as a great way to evaluate the strengths of each individual running your business. When self-evaluating, you’ll be able to identify the aspects of your business that’ll be easier to manage and which ones to delegate to freelancers, contractors, employees, and third-party services. This also makes it easier to find the best way to utilize their strengths for business growth.

Funding Request

Chances are, you don’t have a funding request for a startup dropshipping business since the appeal to dropshipping is the low upfront investment . If you’re looking for a loan, however, this would be the section where you outline the dollar amount you need, what you plan to invest in, and how you see the return on your investment.

Another way to use this section is to analyze the investment you have or plan to make when starting or growing your business. This should include everything from the computer you use to run your website to the monthly fee for business services.

Financial Projections

In Financial Projections, share your projected revenue and expenses for the first or next five years of your business. The idea here is to demonstrate that the revenue you’re anticipating will easily lead to a return on any investment, whether from your personal finances or a capital lending service.

If you’re looking for funding, you’ll need to go into detail with projected income statements, balance sheets, cash flow statements, and capital expenditure budgets. If you aren’t looking for funding, it won’t hurt to create these types of financial projections so you can realistically plan for the future of your business.

The Appendix of your business plan includes any supplemental documents needed throughout the sections of your business plan. These may include, but are not limited to: 

• Credit histories
• Product brochures
• Legal forms
• Supplier contracts

If you’re submitting your business plan for funding, contact the lender to see what documentation they want included with your funding request.

SWOT Analysis

In addition to the above sections, some business plans also include a SWOT Analysis. This is a one-page summary of your business’s strengths, weaknesses, opportunities, and threats. The strengths and weaknesses you include will be internal, whereas opportunities and threats you include will be external. 

Depending on the revelations of this section, you may or may not want to make a SWOT analysis when submitting your business plan formally unless it is requested.

Summary: How to Create a Business Plan

As you can see, creating a business plan for your dropshipping business is a great way to validate your business idea , discover your business’s strengths and weaknesses, and make a blueprint for your business's future.

In summary, here are the sections you will need to write for your business plan, step by step:

• SWOT analysis (Optional)

If you haven’t already, take the time to create a business plan to launch or grow your business in 2023!

Want to Learn More?

• How to Start a Dropshipping Business
• How to Register a Business in the USA
• How to Launch Your Ecommerce Store in Less Than 30 Minutes Flat
• 30+ Amazing Startup Business Ideas That’ll Make You Money

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How to Write a Professional Business Plan in 10 Easy Steps

Home » Blog » How to Write a Business Plan in 10 Easy Steps

During financial uncertainty, many of us press pause on our entrepreneurial aspirations.

Wondering if now’s the right time to start our business . Doubting our ideas and worrying about the what-ifs and maybes! 

A business plan removes the uncertainty and what-ifs from the equation. It validates our business ideas, confirms our marketing strategies, and identifies potential problems before they arise.  

Replacing our doubts with positivity, ensuring we see the complete picture, and increasing our chances of success.

Because you could be starting and running your own business . But you’ll only know for sure it’s the right move for you when you write your business plan.

Here’s everything you need to know to create the perfect business plan.

What is a business plan?

A well-written business plan contains the recipe for your new business’s growth and development. 

It’s your compass. 

It describes your goals and how you’ll achieve them by infusing the ingredients you need to turn your dream into a reality. 

• Your business description- Tells readers about your idea, why it'll succeed, and how you'll make it happen.
• A market analysis- That backs up your company description.
• Your management and organization plan- Includes employees or contractors because even a one-person show may need a team's help on a contract basis, like bookkeeping services, graphic design, research, and if your business grows, with time, also full-time employees.
• Your products or services descriptions- Explaining how they work, where you'll get them, and how much they`ll cost.
• A target audience analysis- So, you know exactly who you`re selling to and what makes them buy what you`re offering.
• Your marketing and sales plan- Proving your chosen niche is profitable and how you'll reach your customers.
• A financial funding request/projections - What you need and how you'll get it.

Your business plan is like a GPS, guiding your business to its destination for the next 3 to 5 years. 

Why is a business plan important?

Here’s the short answer.

A business plan enables you to convey your vision to those who can help you make it a reality.  

It does it in 2 ways:

• It empowers you to evaluate your goals and confirm their viability before entering a marketplace.
• And equips you with the information, using a proven outline, that convinces others to help you achieve them.

A business plan does it by explaining who you are, what you are going to do, and how you’ll do it. It clarifies your strategies, identifies future roadblocks, and determines your immediate and future financial and resource needs.

Let’s look at what that means and why each part is important.

A business plan helps you evaluate your ideas

Do you have over one business idea or a range of products or services you believe you could bring to a single marketplace? 

If so, a business plan helps determine which is worth focusing on and where to apply your energy and resources by evaluating your idea’s possible market share and profitability before investing.

Clarifies your costs

Your chosen market determines your initial investment and future revenue. And it would be best if you knew those before you invest a dollar in your business idea.

With your chosen idea, your business plan can help you understand your set-up and running costs, the resources you’ll need, and the time it’ll take to get started.

It’s also where you’ll calculate your future sales and revenue goals to ensure they fit your budget and required breakeven point.  

And those are essential because every business needs a consistent cash flow to stay afloat!

Steers your business in the right direction

Your business plan guides you through every stage of starting and running your business . 

It acts as your GPS, giving you a course to steer. Ensuring your business stays on track, helping you achieve your goals every step of the way.  

Acts as your financial guide

As your new business grows, you might need to expand. 

But with expansion come big spending decisions, such as purchasing expensive equipment, leasing a new location, or hiring your first employees.

Your business plan’s financial forecast gives you a solid foundation to build on by clarifying when you’re ready to make those investments, ensuring you don’t overreach.

And when you are ready to employ staff, it helps you with that too!

Helps recruit the people you need

Your business is often only as good as its employees. A business plan helps you communicate your vision and pitch your dream to the best candidates. Building their confidence in your venture and encouraging them to join you.

It's essential if seeking a loan or investment

Do you need a loan from a bank or a venture capitalist/angel investor?

If so, you’ll need a business plan that shows your past and future financial trajectory so potential investors can evaluate your business’ feasibility to determine whether you’re worth the risk.

It's an asset if you want to sell your business

Owners of legal entities, such as LLCs, can sell all or part of their business to raise funds for other business ventures or expand their existing ones.

A solid business plan with proven financial recordings and realistic forecasts based on current performance can make your business more attractive to potential investors. 

And it makes sense because when buyers understand your business model and its potential growth, they’ll see the value in it for them.  

All great reasons to write a business plan, don`t you agree?

Okay, here’s how you do it: 

The steps for creating a business plan

Most business plan templates are similar, containing several steps for writing a conclusive plan. If you’re interested in a very short plan, we prepared a lean (one-page) version, including a template . 

The perfect business plan isn’t one or the other; it’s the plan that meets your business needs.

That said, every business plan should contain crucial elements and essential details . And a rhythm to your outline that encourages action, growth, and investors to read it from start to finish. Our step-by-step guide, along with our template, will help you achieve both. 

But first, you must choose the style that works for you:

Pick a business plan format that works for you

You can tackle creating a business plan in different ways; one could be a long-form, more traditional approach or a one-page business plan that acts as a summarized road map.

Traditional business plans use a standard, industry-expected structure, with each section written in great detail. They require a lot of research because businesses often use them to gain investment, and they can be anywhere from 10 to 50 pages long. 

A one-page business plan uses a similar structure but summarizes each step by highlighting the key points. 

You can write a one-page plan in an hour and use it as a personal blueprint for running your business or as a guide to writing a future traditional plan.

Here are the core component that create a great business plan:

1.  An executive summary

2.  Your company’s description

3. Market analysis

4. management and organization outline, 5. products and service description, 6. target audience analysis, 7. marketing and sales plan.

8. Financial funding request 

9. Financial projections

10. an appendix, 1. an executive summary.

The first section of your business plan’s an executive summary that tells anyone reading in simple terms what your business is and why you believe it’ll be successful.

It’s the most crucial part of your plan because anyone reviewing it often decides whether to continue reading based on what’s in your executive summary.

Your executive should contain your mission statement (why you’re starting your business). A product/service description. Your leadership team and financial information.

Even though the first thing people read is your executive summary, it’s the last section you write. 

The next step is about you:

2. Your company's description

Here you sell yourself and your business by telling readers why you’re starting your business and know it’ll succeed.

You must be realistic, business-like, and detailed.  

Begin by explaining who you are, what you plan on doing, and how you’ll do it. Describe your future market, your target audience, and why they need your product/service. 

Elaborate on your unique selling point (USP) and how your competitive advantage will ensure your success. 

Describe your team, highlight their skills and technical expertise, and if you`re a brick-and-mortar business, discuss your location and why it’s right for your target audience or logistics. 

Now your market:

A great business idea is only as good as its future marketplace. Enter a declining market with an insufficient or uninterested audience, and you’ll be toast.

Choose one on an upward trajectory with people you understand and need your product, and you’ll be in business. 

That makes your market analysis a crucial step in your business plan outline. Here’s where you identify your target audience, competitors’ performance, strengths and weaknesses, and whether the market can sustain your business needs.

Your market analysis should include the following:

• Your market description and outlook- Provide a detailed outline defining your market, including its size, trends, growth rate, and outlook.
• Target Market- Describe your ideal customers, including their demographics such as age, gender, employment status, income level, and lifestyle preferences. Also, include your market size, what motivates your ideal clients, and how you'll reach them.
• Competitive Analysis- Identify your main competitors and list their strengths and weaknesses. Also, highlight any potential roadblocks that might prevent you from entering your chosen marketplace.

Step 4 is where you tell readers how you’ll construct your business and who’ll run it.  

Describe your business’s legal structure, whether you’re a sole proprietor intending to form an LLC or a limited/general partnership with dreams of incorporating an S or C corps. 

Include your registered business name and any DBA brand name you have. And any member’s percentage ownership and managerial duties per your operating agreement.

And consider using a chart to show who runs what section of the business. Explain how each employee, manager, or owner’s experience and expertise will contribute to your venture’s success. And if you have them, include your team’s resumes and CVs.

Now you must get technical about what you plan to offer.

List your products or services and explain how they work. If in the development stage, describe the process and when you’ll be market ready.

Include the following product/service information:

• Describe how your product/service will benefit your target audience.
• Provide a breakdown of costs per unit made/sold, life cycle, and expected profit margins.
• Explain your supply chain, order fulfillment, and sales strategy.
• Include your plans for intellectual property, like trademarks and patents.

Your product and service description brings you to those who matter most. Your target audience:

The target audience section of your business plan is the most important one to get right. After all, your customers are your business. And the better you know them, the easier it’ll be to sell to them. 

To gain a clear picture of your ideal clients, learn about their demographics and create a client persona.

Those include: 

• Their location
• Education level
• Employment status
• Where they work
• How much they earn
• How they communicate
• Preferred social media platforms
• Common behavior patterns
• Free time interests
• And what their values and beliefs are

You need your target audience’s demographics to create a branding style that resonates with them. To build marketing strategies that engage their interest. And to identify where to spend your advertising dollars.

Target market’s persona in place, your next step is to describe how you’ll reach and sell to them:

Your marketing plan outlines your strategies to connect with and convert your ideal clients. 

Here’s where you explain how you’ll reach your audience, describe your sales funnel, and develop customer loyalty to keep customers.

Your business plan doesn’t require your complete marketing/sales plan but should answer basic questions like:

• Who's your target market?
• Which channels will you use to reach them? (Social media, email, website, traditional marketing, etc.)
• What sales strategies will you use?
• Which resources do you need to implement those strategies?
• Do you have the resources, and if not, where will you get them?
• What are the potential marketing obstacles, and how you'll overcome them?
• What's your initial marketing campaign timeline and budget?
• What your success metrics are, and how you'll measure them?

8. Financial funding request

This step applies if you require funding to start or grow your business.

Similar to the marketing plan step, including your entire financial plan is unnecessary. However, you’ll need to answer specific questions to explain how much investment you require and how you’ll use it.

The following financial funding outline will suffice:

• Your current capital balance and how much future capital you'll need.
• Specify whether you want equity or debt.
• The terms and conditions you need and the duration of any loan repayments.
• Provide a detailed description of why you need investment, IE., to pay salaries, buy equipment or stock, and what percentage will go where.

Start-ups that need investment must rely on something other than past sales and balance sheets. Here, you’ll need to use financial projections to persuade lenders you’ll generate enough profit to repay their loans. And that investors will get a worthwhile return. 

Your goal is to convince potential lenders or investors that your business will make enough profit to repay any loans or fulfill your equity promises.

Depending on your loan requirements and market, these projections can vary from 3 to 5 years. 

Financial projections aren’t an exact science; you’re forecasting the future! However, accuracy is essential (meaning your projected numbers must add up correctly). And while your goals should be positive, they must also be realistic.

What to include in your financial forecast:

• Forecasted income statements.
• Capital expenditures, fixed and variable.
• Quarterly and annual balance sheets.
• Projected cash flow statements.

Be specific with your projections and ensure they match your funding requests. And if you have collateral to put against a loan, include it at the end of your financial projections to improve your chances of approval. 

Also, consider using charts and graphs to tell your financial story, as visuals are great for conveying your message.

Use your appendix to list and provide supporting information, documents, or additional materials you couldn’t fit in elsewhere.

If the appendix is lengthy, start it with a table of contents.

What to include:

• Key employee resumes.
• Letters of reference.
• Licenses and permits.
• Intellectual property - patents or trademarks.
• Legal documents.
• Any current contracts.
• Product pictures and information.
• Bank statements/credit history.

Financial uncertainty shouldn`t stop you from following your dreams. In fact, recessions are often the best time to start a business . 

And your business plan is one of the main things that can help you make your dream of owning a business a reality.

Take it one step at a time, do your research, and use your business plan to remove the uncertainty of the unknown. 

Because then you’ll know if the time is right to start your business.

This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness.

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How to write a business plan in seven simple steps

When written effectively, a business plan can help raise capital, inform decisions, and draw new talent.

Companies of all sizes have one thing in common: They all began as small businesses.  Starting small  is the corner for those just getting off the ground. Learn about how to make that first hire, deal with all things administrative, and set yourself up for success.

Writing a business plan is often the first step in transforming your business from an idea into something tangible . As you write, your thoughts begin to solidify into strategy, and a path forward starts to emerge. But a business plan is not only the realm of startups; established companies can also benefit from revisiting and rewriting theirs. In any case, the formal documentation can provide the clarity needed to motivate staff , woo investors, or inform future decisions.  

No matter your industry or the size of your team, the task of writing a business plan—a document filled with so much detail and documentation—can feel daunting. Don’t let that stop you, however; there are easy steps to getting started. 

What is a business plan and why does it matter? 

A business plan is a formal document outlining the goals, direction, finances, team, and future planning of your business. It can be geared toward investors, in a bid to raise capital, or used as an internal document to align teams and provide direction. It typically includes extensive market research, competitor analysis, financial documentation, and an overview of your business and marketing strategy. When written effectively, a business plan can help prescribe action and keep business owners on track to meeting business goals. 

Who needs a business plan?

A business plan can be particularly helpful during a company’s initial growth and serve as a guiding force amid the uncertainty, distractions, and at-times rapid developments involved in starting a business . For enterprise companies, a business plan should be a living, breathing document that guides decision-making and facilitates intentional growth.

“You should have a game plan for every major commitment you’ll have, from early-stage founder agreements to onboarding legal professionals,” says Colin Keogh, CEO of the Rapid Foundation—a company that brings technology and training to communities in need—and a WeWork Labs mentor in the UK . “You can’t go out on funding rounds or take part in accelerators without any planning.”

How to make a business plan and seven components every plan needs

While there is no set format for writing a business plan, there are several elements that are typically included. Here’s what’s important to consider when writing your business plan. 

1. Executive summary 

No longer than half a page, the executive summary should briefly introduce your business and describe the purpose of the business plan. Are you writing the plan to attract capital? If so, specify how much money you hope to raise, and how you’re going to repay the loan. If you’re writing the plan to align your team and provide direction, explain at a high level what you hope to achieve with this alignment, as well as the size and state of your existing team.

The executive summary should explain what your business does, and provide an introductory overview of your financial health and major achievements to date.  

2. Company description 

To properly introduce your company, it’s important to also describe the wider industry. What is the financial worth of your market? Are there market trends that will affect the success of your company? What is the state of the industry and its future potential? Use data to support your claims and be sure to include the full gamut of information—both positive and negative—to provide investors and your employees a complete and accurate portrayal of your company’s milieu. 

Go on to describe your company and what it provides your customers. Are you a sole proprietor , LLC, partnership, or corporation? Are you an established company or a budding startup? What does your leadership team look like and how many employees do you have? This section should provide both historical and future context around your business, including its founding story, mission statement , and vision for the future. 

It’s essential to showcase your point of difference in your company description, as well as any advantages you may have in terms of expert talent or leading technology. This is typically one of the first pieces of the plan to be written.

3. Market analysis and opportunity

Research is key in completing a business plan and, ideally, more time should be spent on research and analysis than writing the plan itself. Understanding the size, growth, history, future potential, and current risks inherent to the wider market is essential for the success of your business, and these considerations should be described here. 

In addition to this, it’s important to include research into the target demographic of your product or service. This might be in the form of fictional customer personas, or a broader overview of the income, location, age, gender, and buying habits of your existing and potential customers. 

Though the research should be objective, the analysis in this section is a good place to reiterate your point of difference and the ways you plan to capture the market and surpass your competition.

4. Competitive analysis 

Beyond explaining the elements that differentiate you from your competition, it’s important to provide an in-depth analysis of your competitors themselves.

This research should delve into the operations, financials, history, leadership, and distribution channels of your direct and indirect competitors. It should explore the value propositions of these competitors, and explain the ways you can compete with, or exploit, their strengths and weaknesses. 

5. Execution plan: operations, development, management 

This segment provides details around how you’re going to do the work necessary to fulfill this plan. It should include information about your organizational structure and the everyday operations of your team, contractors, and physical and digital assets.

Consider including your company’s organizational chart, as well as more in-depth information on the leadership team: Who are they? What are their backgrounds? What do they bring to the table? Potentially include the résumés of key people on your team. 

For startups, your execution plan should include how long it will take to begin operations, and then how much longer to reach profitability. For established companies, it’s a good idea to outline how long it will take to execute your plan, and the ways in which you will change existing operations.

If applicable, it’s also beneficial to include your strategy for hiring new team members and scaling into different markets. 

6. Marketing plan 

It’s essential to have a comprehensive marketing plan in place as you scale operations or kick off a new strategy—and this should be shared with your stakeholders and employees. This segment of your business plan should show how you’re going to promote your business, attract customers, and retain existing clients.

Include brand messaging, marketing assets, and the timeline and budget for engaging consumers across different channels. Potentially include a marketing SWOT analysis into your strengths, weaknesses, opportunities, and threats. Evaluate the way your competitors market themselves, and how your target audience responds—or doesn’t respond—to these messages.

7. Financial history and projections  

It’s essential to disclose all finances involved in running your company within your business plan. This is so your shareholders properly understand how you’re projected to perform going forward, and the progress you’ve made so far. 

You should include your income statement, which outlines annual net profits or losses; a cash flow statement, which shows how much money you need to launch or scale operations; and a balance sheet that shows financial liabilities and assets. 

“An income statement is the measure of your financial results for a certain period and the most accurate report of business activities during that time, [whereas a balance sheet] presents your assets, liabilities, and equity,” Amit Perry, a corporate finance expert, explained at a WeWork Labs educational session in Israel.

It’s crucial to understand the terms correctly so you know how to present your finances when you’re speaking to investors. Amit Perry, CEO and founder of Perryllion Ltd.

In addition, if you’re asking for funding, you will need to outline exactly how much money you need as well as where this money will go and how you plan to pay it back. 

12 quick tips for writing a business plan 

Now that you know what components are traditionally included in a business plan, it’s time to consider how you’ll actually construct the document.

Here are 12 key factors to keep in mind when writing a business plan. These overarching principles will help you write a business plan that serves its purpose (whatever that may be) and becomes an easy reference in the years ahead. 

1. Don’t be long-winded

Use clear, concise language and avoid jargon. When business plans are too long-winded, they’re less likely to be used as intended and more likely to be forgotten or glazed over by stakeholders. 

2. Show why you care

Let your passion for your business shine through; show employees and investors why you care (and why they should too). 

3. Provide supporting documents

Don’t be afraid to have an extensive list of appendices, including the CVs of team members, built-out customer personas, product demonstrations, and examples of internal or external messaging. 

4. Reference data

All information regarding the market, your competitors, and your customers should reference authoritative and relevant data points.  

5. Research, research, research

The research that goes into your business plan should take you longer than the writing itself. Consider tracking your research as supporting documentation. 

6. Clearly demonstrate your points of difference

At every opportunity, it’s important to drive home the way your product or service differentiates you from your competition and helps solve a problem for your target audience. Don’t shy away from reiterating these differentiating factors throughout the plan. 

7. Be objective in your research

As important as it is to showcase your company and the benefits you provide your customers, it’s also important to be objective in the data and research you reference. Showcase the good and the bad when it comes to market research and your financials; you want your shareholders to know you’ve thought through every possible contingency. 

8. Know the purpose of your plan

It’s important you understand the purpose of your plan before you begin researching and writing. Be clear about whether you’re writing this plan to attract investment, align teams, or provide direction. 

9. Identify your audience

The same way your business plan must have a clearly defined purpose, you must have a clearly defined audience. To whom are you writing? New investors? Current employees? Potential collaborators? Existing shareholders? 

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10. Avoid jargon

Avoid using industry-specific jargon, unless completely unavoidable, and try making your business plan as easy to understand as possible—for all potential stakeholders. 

11. Don’t be afraid to change it

Your business plan should evolve with your company’s growth, which means your business plan document should evolve as well. Revisit and rework your business plan as needed, and remember the most important factor: having a plan in place, even if it changes.

A business plan shouldn’t just be a line on your to-do list; it should be referenced and used as intended going forward. Keep your business plan close, and use it to inform decisions and guide your team in the years ahead. 

Creating a business plan is an important step in growing your company 

Whether you’re just starting out or running an existing operation, writing an effective business plan can be a key predictor of future success. It can be a foundational document from which you grow and thrive . It can serve as a constant reminder to employees and clients about what you stand for, and the direction in which you’re moving. Or, it can prove to investors that your business, team, and vision are worth their investment. 

No matter the size or stage of your business, WeWork can help you fulfill the objectives outlined in your business plan—and WeWork’s coworking spaces can be a hotbed for finding talent and investors, too. The benefits of coworking spaces include intentionally designed lounges, conference rooms, and private offices that foster connection and bolster creativity, while a global network of professionals allows you to expand your reach and meet new collaborators. 

Using these steps to write a business plan will put you in good stead to not only create a document that fulfills a purpose but one that also helps to more clearly understand your market, competition, point of difference, and plan for the future. 

For more tips on growing teams and building a business, check out all our articles on  Ideas by WeWork.

Caitlin Bishop is a writer for WeWork’s  Ideas by WeWork , based in New York City. Previously, she was a journalist and editor at  Mamamia  in Sydney, Australia, and a contributing reporter at  Gotham Gazette .

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12 Tips to Write Your Business Plan

2 min. read

Updated January 3, 2024

Learn to craft an excellent business plan with our curated selection of business plan tips and tricks—developed by seasoned planning experts with over 40 years of experience writing and reviewing business plans.

• Tips to write your business plan

1. Do this before writing your business plan

If you dive right into the planning process you’re more likely to waste time and become overwhelmed. Before you start, consider why you need a plan and organize your thoughts on a single page.

2. Understand what makes a great plan

There are certain factors that make a great business plan. This includes the plan fitting your business needs, being realistic, and addressing assumptions. Here are a few other traits that can truly elevate your plan.

3. Focus on crafting a compelling message

Many small business owners use their plan to convince others that their business idea is worth investing in. To do this successfully, you need to consider how the plan will be read and what can make it engaging.

4. Know why business plans fail

A big reason why businesses fail is ineffective planning. Knowing what causes business plans to hinder business growth or be rejected by lenders can help you write a better plan and become a better business owner.

5. Avoid these common planning mistakes

Simple mistakes can lead to a mediocre or ineffective business plan. Skipping planning altogether is the biggest, but several others connected to your financials can sink your idea before it ever gets off the ground.

6. Don’t forget to spend time formatting

You may have a killer business idea, detailed market research, and captivating descriptions that will grab the attention of anyone who reads your plan. But none of it matters if your plan appears dense and overly complex…

7. Use the right tools and resources

Take the time to explore any tools or resources that can help you write a business plan. Aside from this guide that you’re already reading, here are a few of our favorites that you should check out for yourself.

8. Know all the ways to use your plan

You likely have a single goal in mind for your business plan, like applying for a loan or making your idea official. Stay focused but take note of the many other ways to get immediate and long-term use out of a plan.

9. Disregard these planning myths

There are numerous misconceptions about business planning that have developed over the years. These range from what your plan should include to if plans are truly valuable—and you should know why they aren’t true.

10. Try writing your business plan in one day

Did you know that you can get all of the components of your business plan down in just a single day? All it takes is a little prep work, knowledge of what to include, and a focus on keeping things simple.

11. Participate in writing a business plan month

There’s never a wrong time to write or update your business plan. However, if you want the inspiration of writing alongside thousands of other entrepreneurs, why not participate in “Write a Business Plan Month.”

12. Consider working with a business plan writer

Working with a business plan writer allows you to spend more time on the other startup steps. But the wrong writer can lead to wasted money on an unusable business plan. So, be sure that you ask the right questions.

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

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

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How to Write the Strategy Plan Timeline (+ Examples)

• March 21, 2024
• Business Plan , How to Write

Creating a strategic plan timeline is crucial, especially if you are preparing a business plan for your business. This comprehensive guide simplifies the process, offering a step-by-step guide to crafting a clear, actionable strategy plan timeline tailored for business owners.

Whether you’re launching a new startup or scaling an existing business, you’ll find essential tips to best map out your business’s milestones and objectives. Let’s dive in!

What is a strategy plan timeline?

A strategy plan timeline in a business plan is a comprehensive schedule that outlines the sequence of actions, key milestones, and deadlines required to achieve the business’s strategic objectives.

It serves as a roadmap, detailing how the business will transition from its current state to its desired future state over a specified period.

This timeline is crucial for ensuring that strategic goals are met within realistic timeframes, allowing for efficient resource allocation and enabling stakeholders to monitor progress.

The strategy plan timeline can include some or all of the elements below:

• Objectives: The specific, measurable goals the business aims to achieve, aligned with its overall vision and mission.
• Milestones: Significant achievements or checkpoints that indicate progress toward the objectives. These are often quantifiable and serve as interim targets.
• Actions: The steps or initiatives that need to be undertaken to reach each milestone and, ultimately, achieve the objectives. These are typically assigned to specific teams or individuals.
• Deadlines: The timeframes by which milestones and objectives should be met to keep the plan on track. Deadlines help prioritize tasks and ensure timely progress.
• Resources: An outline of the financial, human, and material resources allocated to each action or milestone, ensuring that the plan is realistic and feasible.
• Review Points: Scheduled assessments of the plan’s progress, allowing for adjustments based on performance, external changes, or unforeseen challenges.

Incorporating a strategy plan timeline into a business plan provides a clear path for growth, operational improvements, or other strategic shifts.

It is essential for aligning team efforts, managing stakeholder expectations, and securing investment, as it demonstrates a thoughtful, actionable approach to achieving business success.

How to create a strategy plan timeline: 6 steps

When crafting a strategy plan timeline for a business plan, the goal is to map out a clear, structured path that will guide the business from its current state to achieving its long-term objectives.

This involves setting specific, measurable goals, identifying key milestones, and allocating resources effectively. Here’s a simplified approach to creating a strategy plan timeline that can be tailored to fit the unique needs of different businesses:

1. Define Your Objectives

Start by clearly defining the long-term goals and objectives of your business. What do you want to achieve in the next three to five years? Objectives should be specific, measurable, attainable, relevant, and time-bound (SMART).

2. Conduct a SWOT Analysis

Perform a SWOT analysis to identify your business’s Strengths, Weaknesses, Opportunities, and Threats. This will help you understand the internal and external factors that could impact your ability to achieve your objectives.

3. Set Short-term Goals

Break down your long-term objectives into smaller, actionable short-term goals. These should act as stepping stones toward your larger objectives and be achievable within a year.

4. Identify Key Actions and Milestones

For each short-term goal, list out the key actions or steps needed to achieve it. Then, identify significant milestones within these actions, which will serve as markers of progress.

5. Allocate Resources

Determine what resources (financial, human, technological) are needed to accomplish each action and milestone. Allocate these resources accordingly, ensuring that constraints are considered and managed.

6. Establish a Timeline

Assign realistic timeframes to each action and milestone. Your timeline should reflect the urgency and priority of each goal, balancing ambition with feasibility.

Strategy plan timeline: 2 examples

Here are 2 examples you can use as an inspiration to create yours. These are taken from our coffee shop business plan and hair salon business plan templates.

Coffee Shop Example

Hair Salon Example

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• March 29, 2024

If you’re starting a new business or giving your marketing a fresh coat of paint, an AI business plan generator can be a game-changer. Our latest blog takes a deep dive into these smart planning tools, showing you how they can refine the way you craft your marketing and content strategies. We’ve rounded up the top 5 AI business plan generators that can simplify planning and boost your marketing efficiency. Through practical advice and straightforward tips, we’ll show you how to bring these generators into your workflow and look ahead at how AI is set to keep revolutionizing the marketing world. For those ready to take their business planning to the next level with a blend of innovation and practicality, our article is just what you need.

💠AI Business Plan Generators are revolutionizing marketing and content creation by offering personalized, efficient, and insightful planning tools that align with business goals.

💠Essential features to look for in an AI Business Plan Generator include scalability, deep market insights, customization, user-friendliness, integration capabilities, and continuous learning.

💠The top 5 AI Business Plan Generators, including Neuroflash, MoinAI, Userlike, MarketMuse, and ContentBot, cater to different aspects of marketing and content creation needs.

💠Effective integration of AI into content creation processes involves understanding objectives, starting small, training teams, integrating with existing tools, monitoring performance, experimenting with content formats, personalizing content, and staying informed on AI trends.

💠Future trends in AI for marketing include hyper-personalization, predictive analytics, optimization for voice and visual search, AR content, AI-driven content creation, ethical AI practices, and seamless omnichannel experiences.

Introduction to AI Business Plan Generators: Revolutionizing Marketing and Content Creation Strategies

In the dynamic realm of online marketing, standing out in a fiercely competitive market requires innovative strategies and tools. Enter AI Business Plan Generators, the cutting-edge solution designed to redefine how businesses approach marketing and content creation. But what exactly is an AI Business Plan Generator? It’s a sophisticated software that leverages artificial intelligence to help in creating detailed business plans, including market analysis, strategy development, and financial forecasting. This tool is not just about generating a document; it’s about crafting a roadmap for success tailored to the unique needs and goals of your business.

AI Business Plan Generators are revolutionizing the field by automating and optimizing the planning process. They sift through vast amounts of information, identify trends and insights, and provide recommendations that align with your business objectives. This means you can develop a more coherent and effective marketing plan faster, allowing you to focus on implementation rather than getting bogged down in the planning phase.

Moreover, these generators are equipped to tackle challenges in content creation. By understanding your target audience and marketing goals, AI can suggest content strategies that engage your audience and drive conversions. Whether it’s blog posts, social media content, or email marketing campaigns, AI Business Plan Generators can play a pivotal role in ensuring your content resonates with your audience and achieves your marketing objectives.

Evaluating the Features: What Makes a Great AI Business Plan Generator for Marketing?

Selecting the right AI Business Plan Generator is crucial for harnessing its potential to revolutionize your business marketing and content creation efforts. But with numerous tools available, what features should you look for to ensure you’re choosing a tool that aligns with your business needs? Here, we break down the key elements that distinguish an exceptional AI Business Plan Generator from the rest, helping you to create impactful marketing plans and content strategies.

1. Scalability and Flexibility to Meet Business Growth

A top-tier AI generator should adapt to your business’s growth and evolving needs. Whether you’re a startup looking to make your mark in the market or an established company aiming to innovate, the tool must offer scalable solutions and flexibility in planning and content strategies, helping you to generate effective business plans.

2. Deep Market Insights for Informed Marketing Strategies

The ability to analyze and interpret market data is a hallmark of a great AI Business Plan Generator. It should provide you with deep insights into market trends, competitor analysis, and customer behavior, enabling you to make informed decisions and tailor your marketing strategies effectively, using this valuable information.

3. Customization and Personalization for Unique Content Creation

Every business is unique, and a one-size-fits-all approach doesn’t work in marketing. Look for an AI tool that offers high levels of customization and personalization, allowing you to craft business plans and content strategies that resonate with your brand’s voice and audience’s needs, thus enhancing your content marketing.

4. User-friendly Interface for Easy Plan Generation

Complex tools can be more of a hindrance than a help. A great AI Business Plan Generator should boast a user-friendly interface that makes it easy for you to navigate and utilize its features, regardless of your technical expertise, to create and get the most out of your marketing plans.

5. Integration Capabilities for a Cohesive Marketing Strategy

Your AI tool should seamlessly integrate with other software and platforms you use, such as CRM systems, social media, and analytics tools. This integration is key to creating a cohesive strategy that leverages every aspect of your business for maximum impact, helping to generate a unified market approach.

6. Continuous Learning and Improvement for Up-to-Date Plans

AI technology thrives on learning. Choose a generator that continuously evolves, learning from data and interactions to provide more accurate and effective planning and content suggestions over time, ensuring your marketing strategies remain relevant.

By prioritizing these features in your selection process, you can ensure that the AI Business Plan Generator you choose not only meets your current needs but also supports your future goals, driving your marketing and content creation to new heights of success. Utilizing tools like Visme, you can access free templates and resources to learn more about creating impactful business plans and content strategies, enhancing your marketing efforts.

Top 5 AI Business Plan Generators for Streamlined Marketing Strategies

In the quest for the most effective marketing and content creation strategies, selecting the right AI Business Plan Generator is paramount. Here’s a curated list of the top 5 AI Business Plan Generators that are making waves in the market for their innovative features and capabilities:

1. Neuroflash

Neuroflash stands out for its intuitive interface and advanced content generation capabilities. It excels in creating personalized content strategies tailored to your audience, ensuring engagement and conversion. Its strength lies in deep market insights and the ability to adapt content based on consumer behavior, helping businesses learn and grow.

After effortlessly producing a comprehensive AI Business Plan within mere minutes with ContentFlash , you gain the capability to meticulously tailor and refine each segment by seamlessly integrating or omitting details.

Additionally, ChatFlash , your AI-driven chatbot, is readily available to address any queries and craft text in accordance with the signature tone of your establishment. This ensures that all content remains perfectly attuned to your unique identity. Choose from a myriad of personalities, tonalities, templates, or text genres to effortlessly create all-encompassing content through the adept AI Business Plan system.

MoinAI offers a comprehensive suite of tools for businesses looking to automate their marketing planning and content creation using AI. With its scalable solutions and integration capabilities, MoinAI simplifies the process of strategizing and executing marketing plans, making it ideal for businesses of all sizes looking to get ahead in the market.

3. Userlike

Userlike focuses on enhancing customer interactions through AI-driven insights. It’s particularly beneficial for companies aiming to refine their customer service and engagement strategies. Userlike’s customizability ensures that businesses can create unique experiences for their audience, offering free tips to help businesses learn and adapt.

4. MarketMuse

MarketMuse uses AI to provide content creators and marketers with data-driven insights into content strategy, planning, and optimization. Its ability to analyze and suggest improvements for content makes it a valuable tool for increasing visibility and engagement in the market, helping content creators generate high-quality material.

5. ContentBot

ContentBot specializes in automating content creation across various formats. Its AI technology assists in generating high-quality content that resonates with your target audience, making it a favorite among marketers. ContentBot’s user-friendly interface and seamless integration capabilities help marketers create compelling content efficiently.

Each of these AI Business Plan Generators offers unique features that cater to different aspects of marketing and content creation. By leveraging their capabilities, businesses can streamline their strategies, ensuring more effective engagement with their audience and driving growth. These tools offer templates and plans that can be customized to fit any marketing strategy, making it easier for businesses to reach their goals.

In the next section, we’ll explore tips and tricks for integrating these AI generators into your content creation process using Visme, maximizing their potential to revolutionize your marketing efforts. Stay tuned to discover how you can harness the power of AI to elevate your business plan and marketing strategy.

How to Prepare a Robust Foundation for Your Business Plan Generator:

The creation of a business plan is a foundational step for any aspiring entrepreneur. In the age of technology, tools like an AI Business Plan Generator can significantly streamline and enhance this process, but the tool can only be as effective as the clarity of the vision it has to work with. Writing a business plan can seem like an overwhelming endeavor, but breaking it down into manageable steps makes the process more approachable. Here’s a step-by-step guide of what you would need to have clear before you start working on your AI Business Plan Generator.

✅ Writing a solid ground to prepare your AI Business Plan step by step:

1: executive summary.

• Start with a clear, concise synopsis that summarizes the key points of your business plan, including the business concept, financial features, and current business position.
• Highlight your mission statement, product or service offerings, and basic information about your company’s leadership, employees, and location.
• Include your growth plans, and how you intend to achieve this growth.

2: Business Description

• Provide detailed information about your business, industry background, the market you are entering, and the particular niche you aim to fill.
• Discuss the present outlook as well as future possibilities for your business and the industry.

3: Market Analysis

• Conduct thorough market research to understand your target audience, including demographic information and identifying market needs.
• Analyze your competitors, their market position, strengths and weaknesses.
• Illustrate how your business will fit into the market and carve out a share of the sales.

4: Organization and Management

• Outline your business’s organizational structure detailing the owners, management team, and board of directors if applicable.
• Provide profiles of your management team, their experience, and their function within your business.

5: Products or Services

• Describe your product or service offerings in detail.
• Discuss how they benefit your customers, their life span, and your plans for research and development to keep your offerings competitive.

6: Marketing and Sales Strategy

• Define your marketing strategies, how you plan to reach your market, and what sales channels you’ll use.
• Discuss how a sale will take place, from the point of contact with the customer through to the purchase.

7: Funding Request

• If you’re looking for funding, clearly specify your requirements, potential future funding requirements over the next five years, how you plan to use the funds, and possible negotiating leeway regarding funding.

8: Financial Projections

• Provide financial projections to back up your request for funding.
• Include income statements, cash flow statements, and balance sheets for the next three-to-five years.
• Provide a breakeven analysis and other financial ratio analyses.

⭐ Additional Tips:

• Research : Spend ample time researching every detail pertaining to your industry, your market, and your financial predictions.
• Clarity : Be clear and concise in each section of your business plan to ensure that readers can easily understand your vision.
• Professionalism : Ensure your plan is polished and professionally formatted. Typos or mistakes can undermine the integrity of your plan.
• Realism : Be realistic in your financial projections and market analysis. Investors and lenders see right through hyperbolic assumptions.
• Review and Revise : Reread your business plan multiple times, make necessary revisions, and consider having a business advisor review it before presenting it to potential investors.

Each step builds upon the last, creating a comprehensive document that details every facet of your business. The end result should provide a clear and persuasive picture of what your business is, what it stands to offer, and how it plans to succeed.

Integrating AI Business Plan Generators into Your Marketing and Content Creation Strategy: Tips and Tricks

Incorporating AI Business Plan Generators into your marketing and content creation strategy can seem daunting at first. However, with the right approach, you can effortlessly blend these tools into your workflow, enhancing productivity and creativity. Here are practical tips and tricks to help you make the most out of AI for your business:

⭐Understand Your Marketing and Content Objectives

Before diving into AI, clearly define what you want to achieve with your marketing and content. Whether it’s increasing engagement, driving sales, or improving customer service, your objectives will guide how you utilize AI tools effectively.

⭐Start Small and Use Free Templates

Don’t overhaul your entire strategy overnight. Begin with small, manageable tasks, like using free templates to generate ideas for blog posts or automating customer queries on social media. This allows you to gauge the effectiveness of AI in your process and make adjustments as needed.

⭐Train Your Team on AI Tools

Ensure your team understands how to use AI tools. Many AI Business Plan Generators offer tutorials and customer support. Leverage these resources to get your team up to speed and foster a culture of innovation.

⭐Integrate AI Generators with Existing Marketing Tools

Maximize efficiency by integrating AI generators with the marketing tools you already use. Whether it’s your CRM, analytics, or content management system, seamless integration ensures a cohesive workflow and leverages your existing data for better insights.

⭐Monitor, Adjust, and Learn from Analytics

AI tools learn and improve over time, but they also require human oversight. Regularly review the performance and relevance of the content and strategies generated by AI. Use analytics to measure success and make data-driven adjustments to your marketing plan.

⭐Experiment with Different Content Formats

AI can help you create a variety of content formats, from text and images to videos. Experimenting with different types of content can help you learn what resonates best with your audience, keeping your marketing fresh and engaging.

⭐Personalize Your Marketing Content

Use AI to personalize content for different segments of your market. Personalization increases relevance and engagement, and AI can help you tailor messages at scale, making your marketing efforts more effective.

⭐Stay Informed on AI Marketing Trends

The field of AI is constantly evolving. Stay informed about the latest developments and how they might impact or enhance your marketing strategy. This proactive approach ensures you’re always leveraging the best tools and techniques available.

By following these tips, you can effectively integrate AI Business Plan Generators into your content creation and marketing strategy, unlocking new levels of efficiency and creativity. As you become more comfortable with these tools, you’ll find innovative ways to apply AI, further revolutionizing your marketing strategy and setting your business apart in a competitive landscape.

In the final section of our article, we’ll explore future trends in AI and how they’re expected to shape marketing strategies moving forward. Stay tuned to see what the future holds and how you can stay ahead of the curve with AI-driven marketing solutions.

Future Trends: How AI Business Plan Generators Will Shape Marketing Strategies and Content Creation

As we look toward the future, it’s evident that AI Business Plan Generators will play a crucial role in shaping marketing strategies and content creation. With rapid advancements in technology, these tools are poised to become even more sophisticated, offering unprecedented capabilities that will revolutionize the way businesses approach marketing and generate content. Here are some key trends to watch:

Hyper-Personalization with AI

AI will drive hyper-personalization, enabling businesses to create highly customized content and marketing strategies that resonate on an individual level. By analyzing data in real-time, AI can adjust messaging, offers, and content to match the evolving preferences of each customer, delivering a unique and compelling experience that boosts engagement and loyalty.

Predictive Analytics in Marketing Plans

The integration of predictive analytics with AI Business Plan Generators will allow businesses to anticipate market trends, customer behaviors, and potential challenges before they arise. This forward-looking approach will enable companies to stay ahead of the curve, making strategic decisions that capitalize on emerging opportunities and mitigate risks.

Voice and Visual Search Optimization Using AI

As voice and visual searches become more prevalent, AI will be crucial in optimizing content for these platforms. AI tools will help businesses understand and adapt to the nuances of voice search queries and visual content preferences, ensuring their offerings are easily discoverable and appealing to users of these technologies.

Augmented Reality (AR) Content Creation

The fusion of AI with AR will open new avenues for interactive and immersive content. Businesses will use AI to create AR experiences that engage customers in novel ways, from virtual try-ons to interactive product demonstrations. This trend will redefine engagement, making it more experiential and impactful.

AI-Driven Content Writing and Creation

Advancements in AI will lead to more sophisticated content generation capabilities, enabling the creation of high-quality, contextually relevant content at scale. AI will assist in crafting narratives that are not only tailored to the audience but also optimized for SEO, readability, and engagement, streamlining the content writing process while enhancing its effectiveness.

Ethical AI and Transparency in Marketing

As AI becomes more integral to marketing, there will be a growing focus on ethical AI practices and transparency. Businesses will prioritize the use of AI tools that are unbiased, respect user privacy, and offer clear insights into how data is used. This commitment to ethical AI will build trust with customers and ensure compliance with regulatory standards.

Seamless Omnichannel Experiences with AI

AI will enable businesses to create seamless omnichannel experiences, ensuring consistent and personalized engagement across all touchpoints. By analyzing data from various channels, AI can help businesses understand customer journeys in depth and tailor interactions to provide a cohesive and satisfying experience, regardless of how or where a customer engages.

In conclusion, the future of marketing lies in leveraging AI Business Plan Generators to their fullest potential. These tools will not only streamline the planning and content creation process but also empower businesses to deliver personalized, engaging, and innovative experiences that meet the ever-evolving expectations of their audience. As we embrace these future trends, the key to success will be staying adaptable, informed, and always ready to harness the transformative power of AI in marketing strategies.

Revolutionize your marketing today – Rely on neuroflash’s AI chatbot expertise! Learn how to get free templates, plans, and tools using Visme to help create engaging content and effective marketing strategies.

Frequently Asked Questions

Can ai create a business plan.

Yes, AI can create a business plan by leveraging its ability to analyze vast amounts of data, identify trends, and generate coherent and comprehensive text. It can help draft business plans by providing market analysis, competitor analysis, and financial projections, but it’s important to review and customize the AI-generated plan to ensure it aligns with your specific business goals and strategies.

What is the best AI app for writing a business plan?

The best AI app for writing a business plan often depends on your specific needs, such as industry focus, complexity, and customization level. However, platforms like Jasper (formerly known as Jarvis) and Writesonic are highly regarded for their ability to generate quality business content, including plans, by offering templates and tools tailored to creating detailed and personalized business plans.

Can I use ChatGPT to write a business plan?

Yes, you can use ChatGPT to write a business plan. ChatGPT can assist in drafting various sections of a business plan, such as the executive summary, market analysis, marketing strategy, and financial projections. It’s an interactive tool that can generate ideas, suggest improvements, and help articulate your business vision based on the inputs you provide. However, it’s advisable to refine and customize the output to ensure it meets your business’s unique requirements.

How to start a business using AI?

Starting a business using AI involves identifying a problem that AI can solve efficiently or enhance existing solutions. Begin by conducting market research to understand the demand and competition. Then, develop a business plan focusing on how AI technology will be used in your product or service, considering your target market, business model, and financial projections. Building a team with AI expertise or partnering with AI technology providers can be crucial. Additionally, staying informed about AI advancements and regulatory considerations is essential for long-term success.

AI Business Plan Generators enhance marketing by streamlining strategy development with data-driven insights, enabling personalized, efficient content creation. Essential for competitive advantage, these tools help businesses adapt quickly and precisely in the digital market. Staying updated with AI advancements is critical for impactful marketing. Adopting AI tools is vital for future success and transformative growth in the digital era.

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California FAIR Plan insurance: What it is and how it works

T he California FAIR Plan is an insurance program of last resort for homeowners in high-risk areas of the Golden State who are unable to obtain fire coverage in the private insurance market. Contrary to popular belief, the CA FAIR Plan is not a government-backed program: it is financially supported by California’s private home insurance companies, not taxpayers. Recent turmoil in the California home insurance market has left the FAIR Plan overburdened, strained and increasingly expensive. It is now estimated that, as of January 2024, over 350,000 homes are on the plan (and constantly growing), a massive leap upward from just under 275,000 just two years ago . But, for Californians with homes in high-risk wildfire areas, it may be the only way to financially protect their homes. Bankrate’s team of insurance experts is here to explain what Californians considering a FAIR Plan need to know.

California FAIR Plan insurance explained

The California Fair Access to Insurance Requirements , or FAIR, Plan was established in 1968 in order to provide insurance coverage to homeowners in high-risk areas, whether that means their property is in a fire zone or along an earthquake fault line. The FAIR Plan is offered through a shared market where licensed insurance companies agree to share the risk of California homeowners who do not qualify for voluntary coverage.

California FAIR Plan insurance is more limited than a standard homeowners insurance policy. But, a FAIR Plan policy can financially protect homeowners from shouldering the full cost of a loss out-of-pocket. Though a FAIR Plan typically covers fewer types of losses and offers fewer policy options than a private home insurance plan, additional coverage can be added at an additional cost. Importantly, earthquake coverage is not included and must be added as an endorsement from the California Earthquake Authority. For homeowners who struggle to locate other fire insurance in California, a FAIR Plan can be a strong choice.

California’s FAIR Plan is a last resort option and is intended to be a temporary solution for homeowners who need hazard insurance in California. The FAIR Plan Association recommends that California homeowners apply for private homeowners insurance several times before applying for FAIR Plan coverage. Additionally, homeowners must meet certain requirements to qualify for the FAIR Plan.

How will the California Sustainable Insurance Strategy affect the FAIR Plan?

Multiple insurance companies limiting or entirely pausing new home insurance policies in California has sent the market careening towards chaos. Beginning late 2022, seven of the 12 largest home insurance companies in California by market share have either paused or placed heavy limitations on writing new policies in the state. With coverage availability shrinking, many homeowners across California have no option but to resort to a FAIR Plan policy.

In March 2024 State Farm, the largest home insurance company in California by market share, broke the news that it would nonrenew around 70,000 policies , 30,000 of which are estimated to belong to homeowners. It is expected that many of these non renewed policies will migrate to the FAIR Plan, putting the plan at risk for insolvency . FAIR Plan insolvency could also affect homeowners not on the plan. Remember: the FAIR Plan is supported by California’s private insurance companies. If homeowners on the plan incur widespread losses, like those that occur after a wildfire, homeowners with a private policy could potentially see a steep premium increase in order to cover those FAIR Plan losses.

In late 2023, California Insurance Commissioner Ricardo Lara announced the Sustainable Insurance Strategy, a multi-pronged approach to bring stability to the home insurance market and encourage private providers to return to the state. One of the goals named in Lara’s plan is to unburden the FAIR Plan by seeking a commitment from private insurers to write 85 percent of new business in historically underserved areas and to modernize the current FAIR Plan to include homeowners associations and affordable housing projects. Lara’s plan also allows for climate risk modeling, which would allow insurance companies to set rates that more accurately reflect the risk of writing a policy in California. Together, these three incentives could work in tandem to get more private insurers back in California and fewer homeowners having no choice but a FAIR Plan.

What California’s FAIR Plan insurance covers

A California FAIR Plan policy covers much less than a traditional HO-3 does. A standard CA FAIR Plan policy only provides financial protection for your home’s dwelling and your personal property if they are damaged from four named perils: fire, lightning, internal explosions and smoke. Liability coverage is not available through the California FAIR Plan, and the standard plan only insures at actual cash value. To compare, an HO-3 policy includes liability coverage, covers your dwelling and other structures on an open-peril basis and offers financial protection for your personal property from 16 different named perils.

A FAIR Plan home insurance policy can be modified with these endorsements, but doing so will increase the cost of coverage:

• Other structures coverage: Other structures coverage protects against covered damage to detached structures like a garage, porch, shed or fence.
• Fair rental value coverage: Available for rental properties, this endorsement covers lost income if the unit is rendered unlivable due to damage sustained from a covered peril.
• Dwelling replacement cost coverage: This endorsement covers the dwelling at replacement cost value (RCV) versus actual cash value (ACV) .
• Personal property replacement cost coverage: Insures personal belongings at RCV, which replaces items at their current replacement value without depreciation factored in.
• Ordinance/law coverage: After a covered loss, this endorsement pays to make structural upgrades to a home so it meets residential building codes.
• Vandalism and malicious mischief: Adds financial protection if your home’s physical structure and personal belongings are damaged due to vandalism or malicious mischief or both.
• Debris removal coverage: Pays to clean up debris on the property after a storm.
• Inflation guard protection: This endorsement will automatically raise coverage limits based on inflation, without paying out-of-pocket for more coverage.
• Plants, shrubs and trees coverage: This endorsement includes up to $250 of coverage for landscaping losses.
• Outdoor radio and TV equipment, awnings and signs coverage: This endorsement covers outdoor equipment, signs and awnings from covered perils, with the exception of wind or hail storms.
• Improvements, alterations and additions coverage: This coverage is available for condo owners, and covers damage to improvements or alterations in your unit.

Earthquake insurance is not available through the FAIR Plan. Customers can instead purchase a separate earthquake insurance policy through the California Earthquake Authority (CEA) .

What is a Difference in Conditions (DIC) policy in California?

Purchasing FAIR Plan home insurance endorsements can offer broader financial protection, but is still not the same as a private insurance policy. Homeowners on the FAIR Plan who are unable to obtain a policy in the private market but want the kind of financial protection offered by an HO-3 can purchase a Difference in Conditions (DIC) policy. It is a supplemental form of insurance meant to fill in the coverage gaps left by a FAIR Plan policy. It includes coverage for a wider selection of perils, like theft, and can provide liability insurance. A DIC policy also typically offers coverage for landslides, mudflows, earthquakes and floods. Not every insurer in California offers this kind of coverage, but the California Department of Insurance maintains a list of providers that offer it.

Who is eligible for California’s FAIR Plan?

California’s FAIR Plan offers property insurance for owner- and tenant-occupied buildings, seasonal homes, condos and rental properties (personal property coverage only). To get coverage, property owners must meet certain criteria. FAIR Plan applicants must own a single-family home, townhome, condo or have a rental unit in California, and the home must meet certain building requirements.

Some homeowners do not meet FAIR Plan criteria, even if they are considered high-risk. The FAIR Plan does not cover vacant homes that are unoccupied for 50 percent of the year, homes with existing damages that have not been repaired and homes that are tied to illegal activity based on state and federal laws.

Most importantly, homeowners seeking to get onto the California FAIR Plan must demonstrate that they have been denied coverage from the private insurance market multiple times. The FAIR Plan was designed as an insurer of last resort, and policies are generally reserved for the most high-risk homes in the state.

How much California’s FAIR Plan insurance costs

Like standard home insurance, California FAIR Plan premiums vary based on a number of rating factors . This includes the location, age and condition of the home, proximity to a fire station, the homeowner’s claims history, the types and amount of coverage and the deductibles chosen. In a 2022 interview with KCRA , a FAIR Plan spokesperson stated that the average cost of a policy is about $3,200 per year, which is significantly more than a typical home insurance policy in California, where the average homeowner pays $1,217 for $250,000 in dwelling coverage as of January 2024. Keep in mind that the FAIR plan covers much less than a typical home insurance policy, and that homeowners on the FAIR plan usually pay more for less. The cost to insure a home can be even more expensive if purchasing policies to complement the FAIR Plan, such as a difference in conditions, flood or earthquake policy.

How to get California’s FAIR Plan

The process of purchasing a California FAIR Plan is pretty simple. However, the process is slightly different than getting a traditional home insurance policy. Here’s a brief overview of how to get a California FAIR Plan:

• Find a provider: California FAIR Plan insurance can be purchased through a licensed insurance broker in the state. Homeowners can use the online broker search tool on the FAIR Plan website to find local agents within or near their ZIP code. Brokers do not collect a fee when selling FAIR Plan insurance policies like they do with standard home policies.
• See if you are eligible: Not every homeowner will be able to qualify for a California FAIR Plan. Your broker will run an extensive search to see if you can get preferred homeowners insurance coverage through the traditional marketplace before you will be allowed to move forward with the FAIR Plan application.
• Complete the application: If you work with a broker, they can help you fill out the application, choose an appropriate amount of coverage and endorsements and calculate the fair market value of your home. Once the application is completed, you will get an instant rate quote. Keep in mind that if you apply for a FAIR Plan without a broker, you cannot get an immediate price estimate.
• Scheduled a home inspection: Depending on your home’s location, a representative from the FAIR Plan might ask to schedule a home inspection. This will help them better understand your home’s insurability. For example, if your house is located in a heavily wooded area with a high risk of wildfires , it could impact the amount of coverage you are eligible for.
• Pay the premium: Once your application is approved, the last step is to pay the first month’s premium. Your coverage will only take effect once you make the first payment. Homeowners on the FAIR Plan have the option to pay in full, in threes or each month.

Frequently asked questions

The best homeowners insurance company in California is different for everyone. It depends on what type of insurance the homeowner wants, how much coverage they need and what their budget is. Bankrate research is updated regularly and provides information about the leading insurers in your area and which company may provide the best coverage for your home.

While homeowners insurance may be a requirement by mortgage companies, earthquake insurance is not. However, because a standard homeowners insurance policy excludes earthquake coverage, many homeowners opt to purchase it anyway to protect their home and personal property, especially if they live near an active fault line or are concerned about earthquakes. Without earthquake insurance, homeowners are responsible for covering the cost of all repairs out-of-pocket. Homeowners who have a California FAIR Plan dwelling fire policy in force are able to purchase additional coverage for earthquakes, which is offered through the California Earthquake Authority.

The California FAIR Plan covers fire damage and smoke damage, from wildfires and other structure fires. Fire coverage applies to the structure of the home and the personal belongings inside the home.

Like its coverage, discounts are more limited with the California FAIR Plan. Homeowners on the FAIR Plan who have implemented wildfire mitigation to their homes may earn a discount.

Increased wildfires are part of the reason insurers are exiting, in addition to a couple of other factors like the high cost of reinsurance and the current inability to raise home insurance rates to accurately reflect the risk involved in writing a policy in California.

Home dwelling coverage limits are capped at $3 million under the FAIR Plan, but policies with higher limits will likely cost more than the $3,200 average.

How Mercer’s CEO planned her own retirement–and succession

Martine Ferland has spent more than 40 years on the front lines of retirement. This week, the CEO of Mercer and vice chair of Marsh McLennan is stepping down to start her own. Over the past five years, she has led the consulting giant to its best growth since 2008. In recent months, she’s also focused on facilitating a smooth transition for her successor, Pat Tomlinson. That includes traveling with him on a grand tour of Mercer’s global locations, holding weekly two-hour meetings on a wide range of topics, and letting Tomlinson own all the long-term decisions so they’re aligned with his vision.

She also gave him a book–a slim volume published last year by McKinsey called The Four Seasons of a CEO . Although it was not for sale (“a complete black market,”  Ferland jokes), she did secure an extra copy that she presented to Tomlinson a few weeks ago at her retirement party in London. (This collection of articles might give you a taste of McKinsey’s leadership advice.)

Leaders like to impart wisdom through gifting books–or writing them. George David gave Louis Chenevert half a dozen history books to read when handing over the reins as CEO at United Technologies Corp. in 2008. (While writing a story on David, he sent me the same collection; Lenin’s Tomb stood out.) Ferland often gives books to colleagues, with a current favorite being The Heart of Business by former Best Buy CEO Hubert Joly in 2021.

Tomlinson says he plans to read Four Seasons . “I have it right here!” he said on a Zoom call, reaching above his desk. While the first chapter on becoming a high-potential CEO candidate didn’t captivate him, he says the second “would be good to read over the next few weeks as it’s about your first six to twelve months.”

More important was joining Ferland on global visits, especially as Tomlinson has built his career in the U.S. Along with helping him build key relationships, he says, Ferland shows “how you get good economic growth and outcomes and doing it with empathy.”

When asked which books have influenced him, Tomlinson reaches for two: The 2004 classic Blue Ocean Strategy and What Got You Here Won’t Get You There by executive coach Marshall Goldsmith in 2007. The latter came at a time in his career when he had to transition from building to influencing others as a leader. “Someone said, ‘Look, if you keep running things like this, you won’t have time for anything else.’ I gave that advice to somebody two days ago.”

Even for an HR consultancy, this CEO succession was unusually well-planned. “I wish I’d had an introduction similar to this one,” says Ferland, who recalls that her onboarding was rather short and sweet. Having helped her successor, her next best practice? Get out of the way.

Diane Brady [email protected]

Commuting is back–sort of

An analysis of travel patterns in 10 major global cities has shown that commuting has recovered since lockdowns brought in-office work to a sharp halt. But not as we knew it. In New York, for example, Amtrak’s passenger ridership has surpassed pre-pandemic levels. Yet employees are popping into the office for shorter periods, (or, “coffee badging” ) instead of commuting into the city for the whole working day. Financial Times

The rise and fall of Stability AI’s CEO

Emad Mostaque, the founder and CEO of Stability AI, resigned from the $1 billion startup he founded on Saturday, following a wave of key departures. Fortune ’s Jessica Mathews and Allie Garfinkle interviewed 20 Stability investors, former Stability and Coatue (one of Stability’s largest backers) employees, and Coatue-backed founders to uncover Mostaque’s stunning fall from grace. Fortune

Heat action plans

Hot off the heels of last year’s record-high temperatures, two of the world’s biggest aid agencies are set to host an inaugural global summit on extreme heat–and they’re urging business leaders, as well as governments, schools, and hospitals to prepare for the “silent killer” and develop “heat action plans.” In the U.S., extreme heat is already deadlier than all other climate impacts put together, including hurricanes and floods. Guardian

AROUND THE WATERCOOLER

It’s a ‘nepo’ housing market. More than a third of Gen Zers and millennials expect their parents to help with a down payment, survey finds by Alena Botros

Birkin bags can double in value in 5 years. An Hermès expert explains why it’s a better investment than gold by Jasmine Li

Exclusive: Many senior Amazon employees won’t get cash raises this year by Jason Del Rey

You’re more likely to make more money if you’re an older sibling—and now researchers think they know why by Irina Ivanova

Women outearn men in just a handful of U.S. cities, report finds—and not by a lot by Jane Thier

Diddy’s estimated $1 billion fortune is at risk after 5 lawsuits with explosive allegations. Here’s how the entertainment mogul made his money by Sydney Lake

Inside the cockpit at Boeing: Here are the top 5 candidates for CEO as Dave Calhoun exits (Commentary) by Jeffrey Sonnenfeld and Steven Tian

T his edition of CEO Daily was curated by Orianna Rosa Royle. 

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Bill Belichick planning to write book, nature of which still unknown: Sources

Bill Belichick is planning on writing a book, according to officials briefed on his plans.

The nature of the book is not yet fully known. In light of how he was represented in Apple TV’s recent Patriots documentary , his side of his legendary nearly quarter-century run would be of great interest. However, Belichick may just write about his views on leadership or a topic in that genre.

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The publisher considered the favorite, Simon & Schuster’s Avid Reader Press, has produced Patriots books previously.

“We’re going to respectfully decline comment,” David Kass, the imprint’s director of publicity said when asked specifically about Belichick’s forthcoming book.

Belichick’s representative did not return calls.

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After nearly a quarter century as the Patriots coach, Belichick, 71, was a candidate for the Atlanta Falcons’ job that went to Raheem Morris.

While Belichick may eventually return to coaching, he is talking to networks about broadcasting jobs. In meetings, he has told executives he is disinclined to be on a weekly pregame set.

Why Bill Belichick, perhaps the greatest coach in NFL history, didn't land a job

A deal with ESPN, Peyton Manning’s Omaha Productions and NFL Films is one media combination that may work out. Pat McAfee has also expressed public interest in having him on his program. McAfee has paid people, like Aaron Rodgers and Nick Saban, seven figures for weekly appearances in the past.

Apple TV’s recent documentary about the Patriots, “The Dynasty,” has received criticism because of how it portrayed Belichick, including from ex-players like Devin McCourty and Rodney Harrison. New England owner Robert Kraft expressed disapproval of the series for not focusing enough on the winning.

While Kraft didn’t point it out, many reviews have mentioned that Belichick failed to receive the credit for being the coach of the incredible run that included six Super Bowls.

Belichick and the Patriots’ dynasty have already been chronicled in many books. Most notably, Ian O’Connor’s New York Times best-seller, “Belichick,” authoritatively detailed the legendary coach’s life. Belichick did not participate with O’Connor on the book.

Required reading

• Patriots ‘Dynasty’ documentary reveals how bad Brady-Belichick relationship had gotten
• Julian Edelman, Matthew Slater among former Patriots unhappy with ‘The Dynasty’s’ portrayal of Bill Belichick
• Inside Bill Belichick’s downfall after 24 years, 6 titles with the Patriots

(Photo: Joseph Prezioso / AFP via Getty Images)

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Andrew Marchand is a Sr. Sports Media Columnist for The Athletic. He previously worked for the New York Post and ESPN, where he predominantly covered sports media and baseball. In 2023, Marchand was named one of five finalists for The Big Lead's "Insider of the Year" in all of sports.

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Easter 2024

Tax changes small business owners should be aware of as the tax deadline looms

FILE - A cash register is seen on the front counter at the Alpha Shoe Repair Corp., Feb. 3, 2023, in New York. As Tax Day, April 15, approaches, there are plenty of things small business owners should keep in mind when filing taxes this year. (AP Photo/Mary Altaffer, File)

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As Tax Day approaches, there are plenty of things small business owners should keep in mind when filing taxes this year.

April 15 is still the annual tax deadline for many small businesses although, unlike individuals, small businesses can have varying deadlines depending on the type of company, the state the taxes are filed in, and other factors. Quarterly estimated tax payments are generally required throughout the year. And certain types of small businesses had to file by March 15.

Since business tax filing is complex, most experts recommend small business owners work with a professional tax adviser rather than trying to file on their own or even with tax-filing software.

“Taxes should not be scary, especially when you have a certified tax professional or someone who is your trusted adviser,” said Amber Kellogg, vice president of affiliate origination and management at business consultancy Occams Advisory. “I always say you don’t go to the dentist to get your oil changed, and you certainly shouldn’t do (taxes) yourself unless you’re an expert.”

But even if small business owners aren’t filing taxes themselves, it’s still important to stay informed about any tax changes during the year. Here are things small business owners should consider as the April 15 deadline looms.

Consider an extension

Because of some pending tax legislation in Congress this year, Mitch Gerstein, senior tax adviser at accounting firm Isdaner & Co., said it might be a good idea to file for an extension. When you file an extension you still pay estimated taxes, but final paperwork isn’t due until September.

This gives your tax provider adequate time to file a return. And it’s cheaper to file an extension than an amended return, which costs more in administrative fees.

One reason Gerstein recommends an extension this year: a bonus depreciation write-off used by many small businesses is set to decrease for 2023. The bonus depreciation allowance was designed to spur capital purchases and it let businesses write off 100% of certain new and used assets in 2022. But beginning in 2023, that will decrease to 80% for used assets, dropping another 20% each year thereafter. However, a tax bill pending in Congress could restore the write-off to 100%. It’s rare that there is such a significant tax bill pending in Congress when taxes are due, Gerstein said.

Optimize your retirement plan

The Secure Act 2.0 passed by Congress in late 2022 gives small businesses some tax advantages if they offer a retirement plan. There’s a tax credit for small businesses starting new employee plans. The credit is up to 100% of the startup costs for adopting and maintaining a new 401(k) plan, capped at $5,000. There’s also a tax credit based on employer contribution, up to $1,000 annually per employee, over the plan’s first five years.

Changes in research and development write-offs

Scott Orn, chief operating officer of Kruze Consulting, works with startups backed by venture capital. Orn said the number one concern his clients are calling about is “Section 174,” a part of the tax code that involves writing off research and development costs.

In the past, companies were able to deduct 100% of research and development expenses from their taxable income. That was helpful because often that deduction meant the company was operating at a loss and wouldn’t have to pay taxes.

But starting in 2022 due to new legislation, companies have had to “capitalize” the expense – or spread it out over several years. That means they must now write off the expenses over five years for U.S.-based R&D, or 15 years for foreign R&D expenses.

Large and small companies alike are affected by the change, but small businesses are hurt the most, Orn said.

“(Small businesses) are the ones who are swinging into profit where they thought they were like safely losing money and not ever going to pay taxes for a while,” Orn said. “And that’s why it’s such a big surprise for them. It’s hurting people, it’s like it’s a lot of money these companies don’t have.”

Avoid underpayment penalties

Yet another reason for small business owners to use a tax professional is the fact that underpaying will cost more this year. In the past, underpayment penalties hovered at around 3%, but this year they’re more than double at 8% . That’s because the penalties are based on the federal short term interest rate plus three points, said Danny Castro, Florida Market Tax Leader at BDO USA, part of BDO Global, a global accounting network.

“The cost of underpayment is as high as it’s been in a long time,” he said.

One credit to skip: the ERC

At one time, the pandemic-era Employee Retention Credit seemed like a boon for small businesses. Designed to help small businesses keep employees during pandemic-era shutdowns, the generous credit let businesses file amended tax returns to claim the credit.

But that led to a cottage industry of scammers trying to entice small businesses to help them file for the credit – for a fee – even if they didn’t qualify. The IRS has launched several initiatives to claw back some money improperly given to businesses. To date, the IRS said 500 taxpayers have given back $225 million via a voluntary disclosure program, which ended on March 22, that let small businesses who thought they received the credit in error give back the money and keep 20%. And 1,800 businesses have withdrawn unprocessed claims totaling $251 million.

Get organized, stay organized

The best thing small businesses can do to help their tax advisers file their taxes is stay organized. A shoe box full of receipts isn’t helpful when trying to file timely taxes. Owners should log receipts in an orderly database they can turn over to their adviser. And stay on top of quarterly estimated payments.

“(Small business owners) need to be able to keep accurate records throughout the year and not have to go back in April and go, gosh, what what was this receipt for,” said Occams Advisory’s Amber Kellogg, “Keeping those, accurate records is very, very important.”

This story has been corrected to show that BDO USA is part of BDO Global, not BBO Global.

Tax changes small business owners should be aware of as the tax deadline looms

As Tax Day approaches, there are plenty of things small business owners should keep in mind when filing taxes this year.

April 15 is still the annual tax deadline for many small businesses although, unlike individuals, small businesses can have varying deadlines depending on the type of company, the state the taxes are filed in, and other factors. Quarterly estimated tax payments are generally required throughout the year. And certain types of small businesses had to file by March 15.

Since business tax filing is complex, most experts recommend small business owners work with a professional tax adviser rather than trying to file on their own or even with tax-filing software.

“Taxes should not be scary, especially when you have a certified tax professional or someone who is your trusted adviser,” said Amber Kellogg, vice president of affiliate origination and management at business consultancy Occams Advisory. “I always say you don’t go to the dentist to get your oil changed, and you certainly shouldn’t do (taxes) yourself unless you’re an expert.”

But even if small business owners aren’t filing taxes themselves, it’s still important to stay informed about any tax changes during the year. Here are things small business owners should consider as the April 15 deadline looms.

Consider an extension

Because of some pending tax legislation in Congress this year, Mitch Gerstein, senior tax adviser at accounting firm Isdaner & Co., said it might be a good idea to file for an extension. When you file an extension you still pay estimated taxes, but final paperwork isn’t due until September.

This gives your tax provider adequate time to file a return. And it’s cheaper to file an extension than an amended return, which costs more in administrative fees.

One reason Gerstein recommends an extension this year: a bonus depreciation write-off used by many small businesses is set to decrease for 2023. The bonus depreciation allowance was designed to spur capital purchases and it let businesses write off 100% of certain new and used assets in 2022. But beginning in 2023, that will decrease to 80% for used assets, dropping another 20% each year thereafter. However, a tax bill pending in Congress could restore the write-off to 100%. It’s rare that there is such a significant tax bill pending in Congress when taxes are due, Gerstein said.

Optimize your retirement plan

The Secure Act 2.0 passed by Congress in late 2022 gives small businesses some tax advantages if they offer a retirement plan. There’s a tax credit for small businesses starting new employee plans. The credit is up to 100% of the startup costs for adopting and maintaining a new 401(k) plan, capped at $5,000. There’s also a tax credit based on employer contribution, up to $1,000 annually per employee, over the plan’s first five years.

Changes in research and development write-offs

Scott Orn, chief operating officer of Kruze Consulting, works with startups backed by venture capital. Orn said the number one concern his clients are calling about is “Section 174,” a part of the tax code that involves writing off research and development costs.

In the past, companies were able to deduct 100% of research and development expenses from their taxable income. That was helpful because often that deduction meant the company was operating at a loss and wouldn’t have to pay taxes.

But starting in 2022 due to new legislation, companies have had to “capitalize” the expense – or spread it out over several years. That means they must now write off the expenses over five years for U.S.-based R&D, or 15 years for foreign R&D expenses.

Large and small companies alike are affected by the change, but small businesses are hurt the most, Orn said.

“(Small businesses) are the ones who are swinging into profit where they thought they were like safely losing money and not ever going to pay taxes for a while,” Orn said. “And that’s why it’s such a big surprise for them. It’s hurting people, it’s like it’s a lot of money these companies don’t have.”

Avoid underpayment penalties

Yet another reason for small business owners to use a tax professional is the fact that underpaying will cost more this year. In the past, underpayment penalties hovered at around 3%, but this year they’re more than double at 8% . That’s because the penalties are based on the federal short term interest rate plus three points, said Danny Castro, Florida Market Tax Leader at BDO USA, part of BDO Global, a global accounting network.

“The cost of underpayment is as high as it’s been in a long time,” he said.

One credit to skip: the ERC

At one time, the pandemic-era Employee Retention Credit seemed like a boon for small businesses. Designed to help small businesses keep employees during pandemic-era shutdowns, the generous credit let businesses file amended tax returns to claim the credit.

But that led to a cottage industry of scammers trying to entice small businesses to help them file for the credit – for a fee – even if they didn’t qualify. The IRS has launched several initiatives to claw back some money improperly given to businesses. To date, the IRS said 500 taxpayers have given back $225 million via a voluntary disclosure program, which ended on March 22, that let small businesses who thought they received the credit in error give back the money and keep 20%. And 1,800 businesses have withdrawn unprocessed claims totaling $251 million.

Get organized, stay organized

The best thing small businesses can do to help their tax advisers file their taxes is stay organized. A shoe box full of receipts isn’t helpful when trying to file timely taxes. Owners should log receipts in an orderly database they can turn over to their adviser. And stay on top of quarterly estimated payments.

“(Small business owners) need to be able to keep accurate records throughout the year and not have to go back in April and go, gosh, what what was this receipt for,” said Occams Advisory’s Amber Kellogg, “Keeping those, accurate records is very, very important.”

This story has been corrected to show that BDO USA is part of BDO Global, not BBO Global.