- Case Studies
- Flexible Products
- Expert Insights
- Research Studies
- Creativity and Culture
- Management and Leadership
- Business Solutions
- Member Spotlight
- Employee Spotlight
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?
Related articles
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 .
Short-term leases can offer startups and established companies some much-needed flexibility
From federal taxes to 401(k)s, figuring out payroll deductions can be a headache. Here’s how to get started
Does your company culture still reflect your goals and values? If not, it might be time for a change
- Contact Sales
- Business strategy |
- What is strategic planning? 5 steps and ...
What is strategic planning? 5 steps and processes
A strategic plan helps you define and share the direction your company will take in the next three to five years. It includes your company’s vision and mission statements, goals, and the actions you’ll take to achieve those goals. In this article we describe how a strategic plan compares to other project and business tools, plus four steps to create a successful strategic plan for your company.
Strategic planning is when business leaders map out their vision for the organization’s growth and how they’re going to get there. Strategic plans inform your organization’s decisions, growth, and goals. So if you work for a small company or startup, you could likely benefit from creating a strategic plan. When you have a clear sense of where your organization is going, you’re able to ensure your teams are working on projects that make the most impact.
The strategic planning process doesn’t just help you identify where you need to go—during the process, you’ll also create a document you can share with employees and stakeholders so they stay informed. In this article, we’ll walk you through how to get started developing a strategic plan.
What is a strategic plan?
A strategic plan is a tool to define your organization’s goals and what actions you will take to achieve them. Typically, a strategic plan will include your company’s vision and mission statements, your long-term goals (as well as short-term, yearly objectives), and an action plan of the steps you’re going to take to move in the right direction.
![[inline illustration] Strategic plan elements (infographic)](https://assets.asana.biz/transform/7d1f14e4-b008-4ea6-9579-5af6236ce367/inline-business-strategy-strategic-planning-1-2x?io=transform:fill,width:1680&format=webp "steps to plan a business")
Your strategic plan document should include:
Your company’s mission statement
Your company’s goals
A plan of action to achieve those goals
Your approach to achieving your goals
The tactics you’ll use to meet your goals
An effective strategic plan can give your organization clarity and focus. This level of clarity isn’t always a given—according to our research, only 16% of knowledge workers say their company is effective at setting and communicating company goals. By investing time into strategy formulation, you can build out a three- to five-year vision for the future of your company. This strategy will then inform your yearly and quarterly company goals.
Do I need a strategic plan?
A strategic plan is one of many tools you can use to plan and hit your goals. It helps map out strategic objectives and growth metrics. Here’s how a strategic plan compares to other project management and business tools.
Strategic plan vs. business plan
A business plan can help you document your strategy as you’re getting started so every team member is on the same page about your core business priorities and goals. This tool can help you document and share your strategy with key investors or stakeholders as you get your business up and running.
You should create a business plan when you’re:
Just starting your business
Significantly restructuring your business
If your business is already established, consider creating a strategic plan instead of a business plan. Even if you’re working at a relatively young company, your strategic plan can build on your business plan to help you move in the right direction. During the strategic planning process, you’ll draw from a lot of the fundamental business elements you built early on to establish your strategy for the next three to five years.
Key takeaway: A business plan works for new businesses or large organizational overhauls. Strategic plans are better for established businesses.
Strategic plan vs. mission and vision statements
Your strategic plan, mission statement, and vision statements are all closely connected. In fact, during the strategic planning process, you will take inspiration from your mission and vision statements in order to build out your strategic plan.
As a result, you should already have your mission and vision statements drafted before you create a strategic plan. Ideally, this is something you created during the business planning phase or shortly after your company started. If you don’t have a mission or vision statement, take some time to create those now. A mission statement states your company’s purpose and it addresses what problem your organization is trying to solve. A vision statement states, in very broad strokes, how you’re going to get there.
Simply put:
A mission statement summarizes your company’s purpose
A vision statement broadly explains how you’ll reach your company’s purpose
A strategic plan should include your mission and vision statements, but it should also be more specific than that. Your mission and vision statements could, theoretically, remain the same throughout your company’s entire lifespan. A strategic plan pulls in inspiration from your mission and vision statements and outlines what actions you’re going to take to move in the right direction.
For example, if your company produces pet safety equipment, here’s how your mission statement, vision statement, and strategic plan might shake out:
Mission statement: “To ensure the safety of the world’s animals.”
Vision statement: “To create pet safety and tracking products that are effortless to use.”
Your strategic plan would outline the steps you’re going to take in the next few years to bring your company closer to your mission and vision. For example, you develop a new pet tracking smart collar or improve the microchipping experience for pet owners.
Key takeaway: A strategic plan draws inspiration from your mission and vision statements.
Strategic plan vs. company objectives
Company objectives are broad goals. You should set these on a yearly or quarterly basis (if your organization moves quickly). These objectives give your team a clear sense of what you intend to accomplish for a set period of time.
Your strategic plan is more forward-thinking than your company goals, and it should cover more than one year of work. Think of it this way: your company objectives will move the needle towards your overall strategy—but your strategic plan should be bigger than company objectives because it spans multiple years.
Key takeaway: Company objectives are broad, evergreen goals, while a strategic plan is a specific plan of action.
Strategic plan vs. business case
A business case is a document to help you pitch a significant investment or initiative for your company. When you create a business case, you’re outlining why this investment is a good idea, and how this large-scale project will positively impact the business.
You might end up building business cases for things on your strategic plan’s roadmap—but your strategic plan should be bigger than that. This tool should encompass multiple years of your roadmap, across your entire company—not just one initiative.
Key takeaway: A business case tackles one initiative or investment, while a strategic plan maps out years of overall growth for your company.
Strategic plan vs. project plan
A strategic plan is a company-wide, multi-year plan of what you want to accomplish in the next three to five years and how you plan to accomplish that. A project plan, on the other hand, outlines how you’re going to accomplish a specific project. This project could be one of many initiatives that contribute to a specific company objective which, in turn, is one of many objectives that contribute to your strategic plan.
A project plan has seven parts:
Success metrics
Stakeholders and roles
Scope and budget
Milestones and deliverables
Timeline and schedule
Communication plan
Key takeaway: You may build project plans to map out parts of your strategic plan.
When should I create a strategic plan?
You should aim to create a strategic plan every three to five years, depending on your organization’s growth speed. That being said, if your organization moves quickly, consider creating one every two to three years instead. Small businesses may need to create strategic plans more often, as their needs change.
Since the point of a strategic plan is to map out your long-term goals and how you’ll get there, you should create a strategic plan when you’ve met most or all of them. You should also create a strategic plan any time you’re going to make a large pivot in your organization’s mission or enter new markets.
What are the 5 steps in strategic planning?
The strategic planning process should be run by a small team of key stakeholders who will be in charge of building your strategic plan.
Your group of strategic planners, sometimes called the management committee, should be a small team of five to 10 key stakeholders and decision-makers for the company. They won’t be the only people involved—but they will be the people driving the work.
Once you’ve established your management committee, you can get to work on the strategic planning process.
![[inline illustration] The road to strategic planning (infographic)](https://assets.asana.biz/transform/db464524-dd96-486f-8fb5-40117715ad57/inline-business-strategy-strategic-planning-2-2x?io=transform:fill,width:1680&format=webp "steps to plan a business")
Step 1: Determine where you are
Before you can get started with strategy development and define where you’re going, you first need to define where you are. To do this, your management committee should collect a variety of information from additional stakeholders—like employees and customers. In particular, plan to gather:
Relevant industry and market data to inform any market opportunities, as well as any potential upcoming threats in the near future
Customer insights to understand what your customers want from your company—like product improvements or additional services
Employee feedback that needs to be addressed—whether in the product, business practices, or company culture
A SWOT analysis to help you assess both current and future potential for the business (you’ll return to this analysis periodically during the strategic planning process).
To fill out each letter in the SWOT acronym, your management committee will answer a series of questions:
What does your organization currently do well?
What separates you from your competitors?
What are your most valuable internal resources?
What tangible assets do you have?
What is your biggest strength?
Weaknesses:
What does your organization do poorly?
What do you currently lack (whether that’s a product, resource, or process)?
What do your competitors do better than you?
What, if any, limitations are holding your organization back?
What processes or products need improvement?
Opportunities:
What opportunities does your organization have?
How can you leverage your unique company strengths?
Are there any trends that you can take advantage of?
How can you capitalize on marketing or press opportunities?
Is there an emerging need for your product or service?
What emerging competitors should you keep an eye on?
Are there any weaknesses that expose your organization to risk?
Have you or could you experience negative press that could reduce market share?
Is there a chance of changing customer attitudes towards your company?
Step 2: Identify your goals and objectives
This is where the magic happens. To develop your strategy, take into account your current position, which is where you are now. Then, draw inspiration from your original business documents—these are your final destination.
To develop your strategy, you’re essentially pulling out your compass and asking, “Where are we going next?” This can help you figure out exactly which path you need to take.
During this phase of the planning process, take inspiration from important company documents to ensure your strategic plan is moving your company in the right direction like:
Your mission statement, to understand how you can continue moving towards your organization’s core purpose
Your vision statement, to clarify how your strategic plan fits into your long-term vision
Your company values, to guide you towards what matters most towards your company
Your competitive advantages, to understand what unique benefit you offer to the market
Your long-term goals, to track where you want to be in five or 10 years
Your financial forecast and projection, to understand where you expect your financials to be in the next three years, what your expected cash flow is, and what new opportunities you will likely be able to invest in
Step 3: Develop your plan
Now that you understand where you are and where you want to go, it’s time to put pen to paper. Your plan will take your position and strategy into account to define your organization-wide plan for the next three to five years. Keep in mind that even though you’re creating a long-term plan, parts of your strategic plan should be created as the quarters and years go on.
As you build your strategic plan, you should define:
Your company priorities for the next three to five years, based on your SWOT analysis and strategy.
Yearly objectives for the first year. You don’t need to define your objectives for every year of the strategic plan. As the years go on, create new yearly objectives that connect back to your overall strategic goals .
Related key results and KPIs for that first year. Some of these should be set by the management committee, and some should be set by specific teams that are closer to the work. Make sure your key results and KPIs are measurable and actionable.
Budget for the next year or few years. This should be based on your financial forecast as well as your direction. Do you need to spend aggressively to develop your product? Build your team? Make a dent with marketing? Clarify your most important initiatives and how you’ll budget for those.
A high-level project roadmap . A project roadmap is a tool in project management that helps you visualize the timeline of a complex initiative, but you can also create a very high-level project roadmap for your strategic plan. Outline what you expect to be working on in certain quarters or years to make the plan more actionable and understandable.
Step 4: Execute your plan
After all that buildup, it’s time to put your plan into action. New strategy execution involves clear communication across your entire organization to make sure everyone knows their responsibilities and how to measure the plan’s success.
Map your processes with key performance indicators, which will gauge the success of your plan. KPIs will establish which parts of your plan you want achieved in what time frame.
A few tips to make sure your plan will be executed without a hitch:
Align tasks with job descriptions to make sure people are equipped to get their jobs done
Communicate clearly to your entire organization throughout the implementation process
Fully commit to your plan
Step 5: Revise and restructure as needed
At this point, you should have created and implemented your new strategic framework. The final step of the planning process is to monitor and manage your plan.
Share your strategic plan —this isn’t a document to hide away. Make sure your team (especially senior leadership) has access to it so they can understand how their work contributes to company priorities and your overall strategic plan. We recommend sharing your plan in the same tool you use to manage and track work, so you can more easily connect high-level objectives to daily work. If you don’t already, consider using a work management tool .
Update your plan regularly (quarterly and annually). Make sure you’re using your strategic plan to inform your shorter-term goals. Your strategic plan also isn’t set in stone. You’ll likely need to update the plan if your company decides to change directions or make new investments. As new market opportunities and threats come up, you’ll likely want to tweak your strategic plan to ensure you’re building your organization in the best direction possible for the next few years.
Keep in mind that your plan won’t last forever—even if you do update it frequently. A successful strategic plan evolves with your company’s long-term goals. When you’ve achieved most of your strategic goals, or if your strategy has evolved significantly since you first made your plan, it might be time to create a new one.
The benefits of strategic planning
Strategic planning can help with goal-setting by allowing you to explain how your company will move towards your mission and vision statements in the next three to five years. If you think of your company trajectory as a line on a map, a strategic plan can help you better quantify how you’ll get from point A (where you are now) to point B (where you want to be in a few years).
When you create and share a clear strategic plan with your team, you can:
Align everyone around a shared purpose
Proactively set objectives to help you get where you want to go
Define long-term goals, and then set shorter-term goals to support them
Assess your current situation and any opportunities—or threats
Help your business be more durable because you’re thinking long-term
Increase motivation and engagement
Sticking to the strategic plan
To turn your company strategy into a plan—and ultimately, impact—make sure you’re proactively connecting company objectives to daily work. When you can clarify this connection, you’re giving your team members the context they need to get their best work done.
With clear priorities, team members can focus on the initiatives that are making the biggest impact for the company—and they’ll likely be more engaged while doing so.
Related resources
How to pitch project management software: A complete guide
How to create a CRM strategy: 6 steps (with examples)
Level up your marketing with a perceptual map (with template)
Business process analysis (BPA) explained
Original text
In this webinar, you will learn how to write a one-page business plan for your business. We'll also discuss how writing a one-page business plan can help you organize your ideas and allow you to be focused and concise about your business goals.
Our expert presenter will show you each element of the one-page business plan, including identifying the problem your business solves, your value proposition, your target audience and much more.
You'll learn the following:
- The benefits of a one-page business plan vs other business plans
- Practical tips on writing a one-page business plan
- How a one-page business plan can eliminate distractions and help you focus
You Created a Business Plan; Now What? So you have created your business plan. Now what?. In this webinar, you will learn the next step, how to execute your business plan.
Your Roadmap to Success - How to Create a Business Plan Creating a business plan is a crucial first step in starting your business. In this webinar you will learn why it is so important and how to develop one.
Copyright © 2023 SCORE Association, SCORE.org
Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.
The Business Planning Process: 6 Steps To Creating a New Plan
In this article, we will define and explain the basic business planning process to help your business move in the right direction.
What is Business Planning?
Business planning is the process whereby an organization’s leaders figure out the best roadmap for growth and document their plan for success.
The business planning process includes diagnosing the company’s internal strengths and weaknesses, improving its efficiency, working out how it will compete against rival firms in the future, and setting milestones for progress so they can be measured.
Writing a new business plan involves a detailed process with a number of stages, some of which can overlap. Whether you are writing your plan from scratch, from a simple business plan template , or working with an experienced business plan consultant or writer, business planning for startups, small businesses, and existing companies is the same.
Finish Your Business Plan Today!
The best business planning process is to use our business plan template to streamline the creation of your plan: Download Growthink’s Ultimate Business Plan Template and finish your business plan & financial model in hours.
The Better Business Planning Process
The business plan process includes 6 steps as follows:
- Do Your Research
- Calculate Your Financial Forecast
- Draft Your Plan
- Revise & Proofread
- Nail the Business Plan Presentation
We’ve provided more detail for each of these key steps below.
1. Do Your Research
Conduct detailed research into the industry, target market, existing customer base, competitors, and costs of the business begins the process. You may ask yourself the following questions:
- What are your business goals?
- What is the current state of your business?
- What are the current industry trends?
- What is your competition doing?
There are a variety of resources needed, ranging from databases and articles to direct interviews with other entrepreneurs, potential customers, or industry experts. The information gathered during this process should be documented and organized carefully, including the source as there is a need to cite sources within your business plan.
You may also want to complete a SWOT Analysis for your own business to identify your strengths, weaknesses, opportunities, and potential risks as this will help you develop your strategies to highlight your competitive advantage.
2. Strategize
Now, you will use the research to determine the best strategy for your business. You may choose to develop new strategies or refine existing strategies that have demonstrated success in the industry. Pulling the best practices of the industry provides a foundation, but then you should expand on the different activities that focus on your competitive advantage.
This step of the planning process may include formulating a vision for the company’s future, which can be done by conducting intensive customer interviews and understanding their motivations for purchasing goods and services of interest. Dig deeper into decisions on an appropriate marketing plan, operational processes to execute your plan, and human resources required for the first five years of the company’s life.
3. Calculate Your Financial Forecast
All of the activities you choose for your strategy come at some cost and, hopefully, lead to some revenues. Sketch out the financial situation by looking at whether you can expect revenues to cover all costs and leave room for profit in the long run.
Begin to insert your financial assumptions and startup costs into a financial model which can produce a first-year cash flow statement for you, giving you the best sense of the cash you will need on hand to fund your early operations.
A full set of financial statements provides the details about the company’s operations and performance, including its expenses and profits by accounting period (quarterly or year-to-date). Financial statements also provide a snapshot of the company’s current financial position, including its assets and liabilities.
This is one of the most valued aspects of any business plan as it provides a straightforward summary of what a company does with its money, or how it grows from initial investment to become profitable.
4. Draft Your Plan
With financials more or less settled and a strategy decided, it is time to draft through the narrative of each component of your business plan . With the background work you have completed, the drafting itself should be a relatively painless process.
If you have trouble writing convincing prose, this is a time to seek the help of an experienced business plan writer who can put together the plan from this point.
5. Revise & Proofread
Revisit the entire plan to look for any ideas or wording that may be confusing, redundant, or irrelevant to the points you are making within the plan. You may want to work with other management team members in your business who are familiar with the company’s operations or marketing plan in order to fine-tune the plan.
Finally, proofread thoroughly for spelling, grammar, and formatting, enlisting the help of others to act as additional sets of eyes. You may begin to experience burnout from working on the plan for so long and have a need to set it aside for a bit to look at it again with fresh eyes.
6. Nail the Business Plan Presentation
The presentation of the business plan should succinctly highlight the key points outlined above and include additional material that would be helpful to potential investors such as financial information, resumes of key employees, or samples of marketing materials. It can also be beneficial to provide a report on past sales or financial performance and what the business has done to bring it back into positive territory.
Business Planning Process Conclusion
Every entrepreneur dreams of the day their business becomes wildly successful.
But what does that really mean? How do you know whether your idea is worth pursuing?
And how do you stay motivated when things are not going as planned? The answers to these questions can be found in a business plan, a written document that provides an outline and resources needed to achieve success. This document helps entrepreneurs make better decisions and avoid common pitfalls along the way.
Business plans are dynamic documents that can be revised and presented to different audiences throughout the course of a company’s life. For example, a business may have one plan for its initial investment proposal, another which focuses more on milestones and objectives for the first several years in existence, and yet one more which is used specifically when raising funds.
Business plans are a critical first step for any company looking to attract investors or receive grant money, as they allow a new organization to better convey its potential and business goals to those able to provide financial resources.
How to Finish Your Business Plan in 1 Day!
Don’t you wish there was a faster, easier way to finish your business plan?
With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!
Click here to finish your business plan today.
OR, Let Us Develop Your Plan For You
Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.
Click here to see how Growthink business plan consultants can create your business plan for you.
Other Helpful Business Plan Articles & Templates
Academic Programs
- Tuition & Financial Aid
Student Experience
How to create a business plan: a step-by-step guide.
From entrepreneurs with the seed of a great idea to established companies, every business needs a business plan.
But what is a business plan exactly? Is it worth the time and effort to write one?
Let’s take a look at why your organization needs this business roadmap and how it can set you up for long-term success.
What Is a Business Plan?
The easy answer, of course, is right there in the name—it’s a plan for your business. It serves as a guide for how you manage your organization.
Considered a basic business principle for startups, business plans are helpful for all kinds of companies.
For example, a plan for a startup might be a simple one or two-page document, sometimes referred to as a lean plan. It lays out only the essential information, immediate milestones the firm wants to reach and how to secure funding to meet those goals.
For a larger or established company, the plan might be more comprehensive in a traditional format . It typically includes areas such as financial data, a marketing overview and future plans for each department in the organization.
In either case, the intent is to provide a map for your business. You want to answer questions like how the business works, what your goals are and how your team will reach them.
Business plans can be internal or external, meaning it is used as a guide to get your team on the same page or an overview for those with whom you do business or to pitch to those who want to invest in your ideas.
Why Do You Need a Business Plan?
As with the plan itself, the need and purpose for one vary between businesses.
Let’s take a look at two scenarios, involving ownership of rental property.
1. Growing Business
Imagine you own and rent a handful of condominium properties. You have plans to acquire more and turn it from a hobby to a full-time pursuit. This means a lot is going on in the early stages of your organization’s development. A business plan breaks down the moving pieces into more manageable portions.
For your growing real estate portfolio, those pieces include acquisition and capital improvement costs. Also important are income projections and growth or financial benchmarks. Plus, many tasks exist with finding a property, securing loans and closing deals.
One of the central uses of most startup business plans is for raising investment funds . A business plan conveys what the new company needs and convinces others to help fund its growth. For banks, lenders or investors, the business plan shows them the who, what and how of the business operations. Then it communicates why the new business is a solid investment.
2. Established Firm
A second scenario involves an already established real estate firm. You own several different types of properties and rent and manage them with an in-house team.
A business plan for an existing company takes on a much different purpose than for the startup.
Even if profitable, your company still needs a pathway to future growth. You need strategies for responding to a changing market or tracking current projects. You also want to establish goals or metrics to define your success.
An established owner might use a business plan to determine what it takes to move into a new market. You might tweak that same plan in response to new competition entering the market.
For firms currently on solid footing, the business plan helps assess where they stand. It can then detail their next steps for achieving further success and how to accomplish more, faster.
Updating Your Plan
After writing a plan, one of the key questions becomes how often do you update it. The answer is—it depends.
There are times when you might need a “one-off” version. For instance, those that are provided to a specific shareholder or future partner.
In other cases, you may develop a plan for the fiscal year 2020. Then that plan will serve as the basis for your 2021 plan, then the 2022 plan and so on.
You should approach your plan as a living, breathing document. Create a master business plan, one kept up to date based on your company’s activity. You can then tailor that plan to a specific request or need without having to recreate it from scratch.
Elements of a Business Plan
Contrary to popular belief, business plans don’t need to be thousand-page documents. The critical factor is that they meet the needs of your business.
Business plans themselves come in various forms. As we noted, startups might use a one-page document to ask for initial funding. A legacy company might use a 10-page analysis to showcase its financial health.
Both could even be for the same audience , such as a financial institution. Or it could be used for customers or suppliers. Whoever it’s directed toward, the narrative of the plan serves the company that is creating it.
Despite a difference in style or purpose, every business plan includes a handful of central elements.
View these as your jumping-off point when writing the first draft of your plan. Hone in on the information that’s important to your organization to create a plan that reflects your company’s needs.
Executive Summary
The one universal aspect for every plan is the inclusion of an executive summary . This is your plan’s introduction to the reader, so be sure it’s well-constructed.
The key to your executive summary is providing meaningful, relevant information in a brief description. Your main points should cover:
- Why your company’s expertise provides the best solution in your particular field.
- Why your specific area of focus is a favorable market in which to take part.
- Why your firm is best positioned to meet the market’s needs in this area.
To stand out, allow your introduction to mirror your firm’s culture and voice. If you produce and sell skateboards, let your passion for those unique boards shine through in the summary. If your organization is a financial services company, your summary should reflect a firm grasp of investment trends and customer needs.
To captivate your audience, both internal and external, start out with a compelling summary.
Company Overview
This second section in a business plan is straightforward and includes the background and history of your organization. Keep your firm’s bio short and to the point. Summarize your location(s), history, significant accomplishments and ownership or legal data.
If your group has a mission statement , include it in this section as well.
Some internal plans often leave out the company bio. Write one anyway. It’s good practice to convey your organization’s story. Plus, if you have it written, it’s ready to go should you ever need to publicly share it.
Product or Service Information
In this section, you’ll detail what your company does. This includes the goods you produce and sell or the services you provide. Make this section effective by capturing the following:
- How your solution is a benefit to customers.
- How you produce that solution, such as the lifecycle of product production or philosophy and method behind a service.
- Is your solution proprietary? Does it feature copyrights or patents?
- What is your company’s market advantage in what you do?
With product details, it’s best to paint a picture of the marketplace then detail how your business is positioned as a leader in that specific market.
Marketing or Sales Plan
Within your business plan, it’s not necessary to drill down into the finer details of every area. This is most true with your marketing or sales strategy. You don’t have to list every advertising source, but you should convey a grasp of your target demographics and how to reach them. You can include key points such as:
- How you price your offerings.
- How you promote and generate interest and sales from new customers.
- How you will keep those customers.
While product data shows your current market position, marketing data focus on your tactics to keep and grow that market share .
For potential investors to know whether or not to invest, they need to know financial information. While the level of financial detail varies based on the audience’s need, the best financial plans feature the following:
- Financial forecast—this varies with industry but should include at least a five-year forecast.
- Income statement.
- Balance sheet.
- Cash flow statement.
- Capital expense expectations.
- Financials show both the current monetary health of your firm and what your future success may look like.
If you’ve got a lot of good data, don’t hold it back. This is especially true if the plan is to attract investors. The more comprehensive your financial data, the better.
Organizational Team
Your team summary is an extension of your company bio. The goal is to clearly define your company’s hierarchy and the key players at the top. This induces any influential department heads or partnerships you’ve built.
You also want to identify the principles that govern your company’s management style. Company culture is an underrated aspect of today’s business climate. Placing importance on it in your business plan will set yours apart from those that don’t. This is also a good spot to detail any personnel plans or challenges to consider.
Additional Elements
Depending on the purpose of the business plan or its intended audience, there are two other sections worth noting.
In creating a comprehensive plan, you may need to include supporting documentation. The appendix helps organize requested materials or information that did not fit within your primary plan. These inclusions may consist of the following:
- Contracts or legal documents.
- References.
- Permits or licenses.
- Product specs or images.
- Organizational charts.
- Detailed financial reports.
Funding Request
For startups, or even established firms, seeking investment, you’ll want to include a dedicated section that outlines the request . You should specify the type of funding you need, how you’ll apply the funds and over what timeframe. It also helps to include a note on the financial endgame for your organization.
Final Thoughts
Whether for securing funding or getting your established team on the same page, business plans are invaluable for providing a pathway to success.
Develop a plan that best serves your company and its future growth. Keep it up to date and focused on the elements vital to your success, including where you’ve been, where you want to go and how you plan to get there.
A great business plan doesn’t need to be expertly written to be effective. It should, however, be written so you can expertly execute it.
Advance Your Business Expertise
In a degree program at PGS, you’ll expand your knowledge, skills and experiences in practical areas such as developing a business plan. Check out business programs from the associate to master’s level to discover your next step in growing your career and achieving your business goals.
Learn more about our adult programs
Learn more about our graduate programs
Kacey Spencer
Kacey Spencer (B.S. ’12, MBA ’20) previously served as development coordinator for Cornerstone University’s WCSG Radio. She also served as an enrollment counselor for Cornerstone University’s Professional & Graduate Studies division. She graduated in 2012 with a bachelor’s in business management. She enjoys cooking, reading, event planning and being outside in nature.
Related Posts
Achieving a Master’s Degree: A Personal Reflection
Brand and Marketing Strategies: Taking Your Business to the Next Level
Business Administration and Management: A Boost for Your Biz
Choosing Success in a Growth vs. Fixed Mindset
Five Reasons Why Education Helps to Advance Your Career at Any Level
7 Questions to Help You Find the Career of Your Dreams
Want to learn more about cu, connect with cu.
- Student Life
- About Cornerstone
- University Offices
- Faculty & Staff Directory
Recent News
- CORNERSTONE ATHLETICS TOP 10 IN FALL LEARFIELD CUP STANDINGS
- CORNERSTONE UNIVERSITY NAMED TOP ONLINE DOCTORATE IN ORGANIZATIONAL LEADERSHIP PROGRAMS
- GOLDEN EAGLES PACKED 50,000+ MEALS FOR UKRAINE REFUGEES
Step-by-Step Guide to Writing a Simple Business Plan
Smartsheet Contributor Joe Weller
October 11, 2021
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.
Streamline Your Business Planning Activities with Real-Time Work Management in Smartsheet
Empower your people to go above and beyond with a flexible platform designed to match the needs of your team — and adapt as those needs change.
The Smartsheet platform makes it easy to plan, capture, manage, and report on work from anywhere, helping your team be more effective and get more done. Report on key metrics and get real-time visibility into work as it happens with roll-up reports, dashboards, and automated workflows built to keep your team connected and informed.
When teams have clarity into the work getting done, there’s no telling how much more they can accomplish in the same amount of time. Try Smartsheet for free, today.
Discover why over 90% of Fortune 100 companies trust Smartsheet to get work done.
- Your Guide to Starting a Business The tools and resources you need to get your new business idea off the ground.
- Payments Everything you need to start accepting payments for your business.
- Funding & Capital Resources to help you fund your small business.
- Small Business Stories Celebrating the stories and successes of real small business owners.
How to start a business: A practical 22-step guide to success
How to write a business plan in 10 steps + free template
- Your Guide to Running a Business The tools and resources you need to run your business successfully.
- Accounting Accounting and bookkeeping basics you need to run and grow your business.
- Cash Flow Tax and bookkeeping basics you need to run and grow your business.
- Payroll Payroll essentials you need to run your business.
- Taxes Tax basics you need to stay compliant and run your business.
- Employees Everything you need to know about managing and retaining employees.
What is cash flow? An in-depth guide for business owners
Small business grants: 20+ grants and resources to fund your future without debt
How to choose the best payment method for small businesses
- Self-Employed The tools and resources you need to run your own business with confidence.
- E-commerce How to start and run a successful e-commerce business.
- What's New The latest product innovations and business insights from QuickBooks.
- Small Business Data The latest research and insights for Small Businesses from QuickBooks.
- Holidays Everything you need to prepare for and have a successful holiday season.
Jobs report: Are small business wages keeping up with inflation?
Melissa Skaggs shares the buzz around The Hive
- Paycheck Calculator Paycheck calculator for hourly and salary employees.
- Employee Cost Calculator How much do employees cost beyond their standard wages?
- Equity & Investment Calculator How much investment capital should you accept?
Whether you’re a seasoned business owner or just beginning to think about starting a business , demands come at you fast. Amidst the rush of to-do lists and meetings, determining how to write a business plan—much less following a business plan template—often feels time-consuming and intimidating.
But nearly 70% of business owners who have been there and done that recommend writing a business plan before you start a business, according to a recent QuickBooks survey . After all, when done right, business plans have enormous payoffs.
And yet, more than 10% of prospective business owners said they do not intend to write a business plan. Another 10% aren’t sure if they need a plan.
It’s more than the old cliche: A failure to plan is a plan to fail. In fact, a wealth of data now exists on the difference a written business plan makes, especially for small or growing companies.
In this post, we’ll cover everything you need to write a successful business plan, step-by-step, and turn your idea into a reality. Even better, if you’re pressed for time, we’ve compiled the 10 steps and examples into a downloadable (PDF) template . The 10 steps to write a business plan are:
- Create an executive summary
- Compose your company description
- Summarize market research and potential
- Conduct competitive analysis
- Describe your product or service
- Develop a marketing and sales strategy
- Compile your business financials
- Describe your organization and management
- Explain your funding request
- Compile an appendix for official documents
But, first things first.
What is a business plan?
A business plan is a comprehensive road map for your small business’s growth and development. It communicates who you are, what you plan to do, and how you plan to do it. It also helps you attract talent and investors.
But remember that a business idea or business concept is not a plan.
Investors want to know you have:
- Product-market fit: Have you done the research to determine the demand for your product or service?
- A solid team in place: Do you have the people you need to support your goals and objectives?
- Scalability: Can you grow sales volume without proportional growth in headcount and fixed costs?
A templated business plan gives investors a blueprint of what to expect from your company and tells them about you as an entrepreneur.
Why do you need a business plan?
You need a business plan because the majority of venture capitalists (VCs) and all banking institutions will not invest in a startup or small business without a solid, written plan. Not only does a business plan help you focus on concrete objectives, but it gives outside parties reassurance that you’ve thought ahead.
In 2018, entrepreneurial resource center Bplans worked with the University of Oregon to compile and analyze research around the benefits of business planning . Here’s what they found:
- Businesses with a business plan grow 30% faster than those without.
- Owners with business plans are twice as likely to grow, get investments, or secure loans than those without.
- Entrepreneurs with a business plan have a 129% increased likelihood of growing beyond the startup phase and a 260% increased likelihood of growing from “idea” to “new business.”
Perhaps the strongest evidence comes from the Journal of Business Venturing’s 2010 meta-analysis of 46 separate studies on 11,046 organizations: Its findings confirm that “business planning increases the performance of both new and established small firms.”
When do you need a business plan?
Before you leave a nine-to-five income, your business plan can tell you if you’re ready. Over the long term, it’ll keep you focused on what needs to be accomplished.
It’s also smart to write a business plan when you’re:
- Seeking funding, investments, or loans
- Searching for a new partner or co-founder
- Attracting, hiring, and retaining top talent
- Experiencing slow growth and need a change
Feel confident from day one
You're never too small, and it's never too soon to know you're on track for success.
How to write a business plan in 10 steps
Start with a clear picture of the audience your plan will address. Is it a room full of angel investors? Your local bank’s venture funding department? Or is it you, your leaders, and your employees?
Defining your audience helps you determine the language you’ll need to propose your ideas as well as the depth to which you need to go to help readers conduct due diligence.
Now, let’s dive into the 10 key elements of your business plan.
1. Create an executive summary
Even though it appears first in the plan, write your executive summary last so you can condense essential ideas from the other nine sections. For now, leave it as a placeholder.
What is an executive summary?
The executive summary lays out all the vital information about your business within a relatively short space. An executive summary is typically one page or less. It’s a high-level look at everything and summarizes the other sections of your plan. In short, it’s an overview of your business.
How do I write an executive summary?
Below, you’ll find an example from a fictional business, Laura’s Landscapers. (We’ll use that same company throughout this guide to make each step practical and easy to replicate.)
This executive summary focuses on what’s often called the value proposition or unique selling point: an extended motto aimed at customers, investors, and employees.
You can follow a straightforward “problem, solution” format, or a fill-in-the-blanks framework:
- For [target customers]
- Who are dissatisfied with [current solutions]
- Our [product or service] solves [key customer problems]
- Unlike [competing product], we have [differentiating key features]
This framework isn’t meant to be rigid, but instead to serve as a jumping-off point.
Example of an executive summary
Market research indicates that an increasing number of wealthy consumers in Richmond are interested in landscape architecture based on sustainable design. However, high-end firms in the area are scarce. Currently, only two exist—neither of which focus on eco-friendly planning nor are certified by green organizations.
Laura’s Landscapers provides a premium, sustainable service for customers with disposable incomes, large yards, and a love of nature.
2. Compose your company description
Within a business plan, your company description contains three elements:
- Mission statement
These elements give context to the bigger picture in your business plan, letting investors know the purpose behind your company so the goals make sense as well.
What is a mission statement?
A mission statement is your business’s reason for existing. It’s more than what you do or what you sell, it’s about why exactly you do what you do. Effective mission statements should be:
- Inspirational to make others believe in your vision
- Emotional to captivate readers and grab their interest
Throughout every part of your plan, less is more. Nowhere is that truer than your mission statement. Think about what motivates you, what causes and experiences led you to start the business, the problems you solve, the wider social issues you care about, and more.
Tip: Review your mission statement often to make sure it matches your company’s purpose as it evolves. A statement that doesn’t fit your core values or what you actually do can undermine your marketing efforts and credibility.
How do you describe a company’s history?
Don’t worry about making your company history a dense narrative. Instead, write it like you would a profile:
- Founding date
- Major milestones
- Location(s)
- Number of employees
- Executive leadership roles
- Flagship products or services
Then, translate that list into a few short paragraphs (like the example below).
Why do business objectives matter?
Business objectives give you clear goals to focus on, like the North Star. These goals must be SMART, which stands for:
They must also be tied to key results. When your objectives aren’t clearly defined, it’s hard for employees and team members to work toward a common purpose. What’s worse, fuzzy goals won’t inspire confidence from investors, nor will they have a profitable impact on your business.
Example of a company description
Laura’s Landscapers’ mission is to change the face of our city through sustainable landscaping and help you create the outdoor living space of your dreams.
Founded in 2021 by sisters Laura and Raquel Smith, we have over 25 years of combined landscape architecture experience. Our four employees work in teams of two and have already completed 10 projects for some of Richmond’s most influential business and community leaders.
Our objectives over the next three years are to:
- Solidify a glowing reputation as a service-based business that always exceeds customers’ expectations and honors the environment
- Complete at least 18 projects during year one, 24 in year two, and 36 in year three generated through word of mouth, referrals, and home shows
- Increase revenue from $360,000 in FY2021 to $972,000 in FY2023 based upon 10 completed projects in the last nine months
3. Summarize market research and potential
The next step is to outline your ideal potential customer as well as the actual and potential size of your market. Target markets—also known as personas—identify demographic information like:
By getting specific, you’ll illustrate expertise and generate confidence. If your target market is too broad, it can be a red flag for investors.
- Example: If your product is perfect for people with money to hire landscape architects, listing “anyone with a garden” as your target market might not go over so well.
The same is true with your market analysis when you estimate its size and monetary value. In addition to big numbers that encompass the total market, drill down into your business’s addressable market—meaning, local numbers or numbers that apply the grand total to your specific segments. You may even map your customer’s journey to get a better understanding of their wants and needs.
Example of market research and potential
Laura’s Landscapers’ ideal customer is a wealthy baby boomer, a member of Gen X, or a millennial between the ages of 35 and 65 with a high disposable income. He or she—though primarily, she—is a homeowner. They’re a working professional or have recently retired. In love with the outdoors, they want to enjoy the beauty and serenity of nature in their own backyard, but don’t have the time or skill to do it for themselves.
Market research shows the opportunity for Laura’s Landscapers has never been better:
- In the U.S., total revenue for landscaping services increased from $69.8 billion in 2013 to $99 billion in 2019. ( 1 )
- Among landscaping contractors, designing and building is the second fastest growing service offering. ( 2 )
- What’s more, landscape design and construction is the number one “new service” existing companies plan to add over the next year. ( 3 )
In Richmond, leading indicators for interest in green, eco-friendly, and sustainable landscaping have all increased exponentially over the last five years:
- Online search volume for those terms is up 467%
- 10 new community organizations have been formed
- 73 high-profile projects have been covered by local media
- And currently 13% of Richmond’s residents have a household income of $125,000 or more (compared to the U.S. average of 5%)
4. Conduct competitive analysis
Competitive research begins with identifying other companies that currently sell in the market you’re looking to enter. The idea of carving out enough time to learn about every potential competitor you have may sound overwhelming, but it can be extremely useful.
Answer these additional questions after you’ve identified your most significant competitors:
- Where do they invest in advertising?
- What kind of press coverage do they get?
- How good is their customer service?
- What are their sales and pricing strategies?
- How do they rank on third-party rating platforms?
Spend some time thinking about what sets you apart. If your idea is truly novel, be prepared to explain the customer pain points you see your business solving. If your business doesn’t have any direct competition, research other companies that provide a similar product or service.
Next, create a table or spreadsheet listing your competitors to include in your plan, often referred to as a competitor analysis table.
Example of competitive analysis
Within Richmond’s residential landscaping market, there are only two high-end architectural competitors: (1) Yukie’s Yards and (2) Dante’s Landscape Design. All other businesses focus solely on either industrial projects or residential maintenance.
Yukie’s Yards
- Average cost per project: $12,000
- Ongoing maintenance fee: $200 per month
- Google My Business: 3.1 stars from 163 reviews
- Environmental certifications: None
- Primary marketing channels: Google Ads
Dante’s Landscape Design
- Average cost per project: $35,000
- Ongoing maintenance fee: $500 per month
- Google My Business: 3.7 stars from 57 reviews
- Primary marketing channels: Home shows
5. Describe your product or service
This section describes the benefits, production process, and life cycle of your products or services, and how what your business offers is better than your competitors.
When describing benefits, focus on:
- Unique features
- Translating features into benefits
- Emotional and practical payoffs to your customers
- Intellectual property rights or any patents that protect differentiation
For the production process, answer how you:
- Create existing and new products or services
- Source raw materials or components
- Assemble them through manufacturing
- Maintain quality control and quality assurance
- Receive and deliver them (supply chain logistics)
- Manage your daily operations, like bookkeeping and inventory
Within the product life cycle portion, map elements like:
- Time between purchases
- Up-sells, cross-sells, and down-sells
- Future plans for research and development
Example of product or service description
Laura’s Landscapers’ service—our competitive advantage—is differentiated by three core features.
First, throughout their careers, Laura and Raquel Smith have worked at and with Richmond’s three leading industrial landscaping firms. This gives us unique access to the residents who are most likely to use our service.
Second, we’re the only firm certified green by the Richmond Homeowners Association, the National Preservation Society, and Business Leaders for Greener Richmond.
Third, of our 10 completed projects, seven have rated us a 5 out of 5 on Google My Business and our price points for those projects place us in a healthy middle ground between our two other competitors.
- Average cost per project: $20,000
- Ongoing maintenance fee: $250 per month
- Google My Business: 5 stars from 7 reviews
- Environmental certifications: Three (see Appendix)
- Primary marketing channels: Word of mouth, referrals, and home shows
6. Develop a marketing and sales strategy
Your marketing strategy or marketing plan can be the difference between selling so much that growth explodes or getting no business at all. Growth strategies are a critical part of your business plan.
You should briefly reiterate topics such as your:
- Value proposition
- Ideal target markets
- Existing customer segments
Then, add your:
- Launch plan to attract new business
- Growth tactics for established businesses to expand
- Retention strategies like customer loyalty or referral programs
- Advertising and promotion channels such as search engines, social media, print, television, YouTube, and word of mouth
You can also use this section of your business plan to reinforce your strengths and what differentiates you from the competition. Be sure to show what you’ve already done, what you plan to do given your existing resources, and what results you expect from your efforts.
Example of marketing and sales strategy
Laura’s Landscapers’ marketing and sales strategy will leverage, in order of importance:
- Word of mouth
- Reviews and ratings
- Local Google Ads
- Social media
- Direct mail
Reputation is the number one purchase influencer in high-end landscape design. As such, channels 1-4 will continue to be our top priority.
Our social media strategy will involve YouTube videos of the design process as well as multiple Instagram accounts and Pinterest boards showcasing professional photography. Lastly, our direct mail campaigns will send carbon-neutral, glossy brochures to houses in wealthy neighborhoods.
7. Compile your business financials
If you’re just starting out, your business may not yet have financial data , financial statements, or comprehensive reporting. However, you’ll still need to prepare a budget and a financial plan.
If your company has been around for a while and you’re seeking investors, be sure to include:
- Income statements
- Profit and loss statements
- Cash flow statements
- Balance sheets
Other figures that can be included are:
- How much of your revenue you retain as your net income
- Your ratio of liquidity to debt repayment ability
- How often you collect on your invoices
Ideally, you should provide at least three years’ worth of reporting. Make sure your figures are accurate and don’t provide any profit or loss projections before carefully going over your past statements for justification.
Avoid underestimating business costs
Costs, profit margins, and sale prices are closely linked, and many business owners set sale prices without accounting for all costs. New business owners are particularly at risk for this mistake. The cost of your product or service must include all of your costs, including overhead. If it doesn’t, you can’t determine a sale price to generate the profit level you desire.
Underestimating costs can catch you off guard and eat away at your business over time.
- Example: Insurance premiums tend to go up annually for most forms of coverage, and that’s especially true with business insurance. If an employee gets injured, Laura’s Landscapers’ workmen’s compensation insurance to cover this risk will increase.
Example of business financials
Given the high degree of specificity required to accurately represent your business’s financials, rather than create a fictional line item example for Laura’s Landscapers, we suggest using one of our free Excel templates and entering your own data:
- For new businesses: Start up budget template
- For existing businesses: Income statement template
Once you’ve completed either one, then create a big picture representation to include here as well as in your objectives in step two.
In the case of Laura’s Landscapers, this big picture would involve steadily increasing the number of annual projects and cost per project to offset lower margins:
Current revenue for FY2022: $200,000
- 10 completed projects
- ~$20,000 per project
- 15% profit margins
- $30,000 net
FY2022 projections: $360,000
- 18 completed projects
- $54,000 net
FY2023 projections: $552,000
- 24 completed projects
- ~$23,000 per project
- 12% profit margins
- $66,240 net
FY2024 projections: $972,000
- 36 completed projects
- ~$27,000 per project
- 10% profit margins
- $97,200 net
8. Describe your organization and management
Your business is only as good as the team that runs it. Identify your team members and explain why they can either turn your business idea into a reality or continue to grow it. Highlight expertise and qualifications throughout —this section of your business plan should show off your management team superstars.
You should also note:
- Roles you still need to hire to grow your company
- The cost of hiring experts to assist operations
To make informed business decisions, you may need to budget for a bookkeeper , a CPA, and an attorney. CPAs can help you review your monthly accounting transactions and prepare your annual tax return. An attorney can help with client agreements, investor contracts (like shareholder agreements), and with any legal disputes that may arise.
Ask your business contacts for referrals (and their fees), and be sure to include those costs in your business plan.
Example of organization and management
Laura Smith, Co-founder and CEO
- Professional background
- Awards and honors
- Notable clients
Raquel Smith, Co-founder and Chief Design Officer
Laura’s Landscapers’ creative crews
- Cumulative years of experience
9. Explain your funding request
When outlining how much money your small business needs, try to be as realistic as possible. You can provide a range of numbers if you don’t want to pinpoint an exact number. However, include a best-case scenario and a worst-case scenario.
Since a new business doesn’t have a track record of generating profits, it’s likely that you’ll sell equity to raise capital in the early years of operation. Equity means ownership—when you sell equity to raise capital, you are selling a portion of your company.
- Remember: An equity owner may expect to have a voice in company decisions, even if they do not own a majority interest in the business.
Most small business equity sales are private transactions. The investor may also expect to be paid a dividend, which is a share of company profits, and they’ll want to know how they can sell their ownership interest. Additionally, you can raise capital by borrowing money, but you’ll have to repay creditors both the principal amount borrowed and the interest on the debt.
If you look at the capital structure of any large company, you’ll see that most firms issue both equity and debt. When drafting your business plan, decide if you’re willing to accept the trade-off of giving up total control and profits before you sell equity in your business.
- Tip: Put together a timeline so your potential investors have an idea of what to expect. Some customers may not pay for 30 days or longer, which means the business needs a cash balance to operate.
The founder can access cash by contributing their own money into the business by securing a line of credit (LOC) at a bank or applying for QuickBooks Capital . If you raise cash through a LOC or some other type of loan, it needs to be paid off ASAP to reduce the interest cost on debt.
Example of a funding request
Laura’s Landscapers has already purchased all necessary permits, software, and equipment to serve our existing customers. Once scaled to $972,000 in annual revenue—over the next three years and at a 10% profit margin—our primary ongoing annual expenses (not including taxes) will total $874,800.
While already profitable, we are requesting $100,000 in the form of either a business loan or in exchange for equity to purchase equipment necessary to outfit two additional creative crews.
10. Compile an appendix for official documents
Finally, assemble a well-organized appendix for anything and everything readers will need to supplement the information in your plan. Consider any info that:
- Helps investors conduct due diligence
- Gives context and easy access to you or your employees
Useful details to cover in an appendix include:
- Deeds, local permits, and legal documents
- Certifications that bolster your credibility
- Business registries and professional licenses pertaining to your legal structure or type of business
- Patents and intellectual properties
- Industry associations and memberships
- State and federal identification numbers or codes
- Key customer contracts and purchase orders
Your appendix should be a living section of the business plan, whether the plan is a document for internal reference only or an external call for investors.
- Tip: As you include documents in the appendix, create a miniature table of contents and footnotes throughout the rest of the plan linking to or calling attention to them.
How to make a business plan that stands out
Investors have little patience for poorly written documents. You want your business plan to be as attractive and readable as possible.
- Keep it brief. A typical business plan can range from 10 to 20 pages. As long as you cover the essentials, less is more.
- Make it easy to read. Divide your document into distinct sections, so that investors can quickly flip between key pieces of information.
- Know your margins. List every cost your business incurs, and make sure that you’re assigning those costs to each product or service that you sell.
- Proofread. Double-check for typos and grammatical errors. Then, triple-check. Otherwise, you might risk your credibility.
- Invest in quality design and printing. Proper layout, branding, and decent printing or bookbinding give your business plan a professional feel.
- Be prepared in advance. Have everything ready to go at least two weeks ahead so you have time to make revisions in case of a last-minute change.
3 tips to update your business plan
It’s a good idea to periodically revisit your business plan, especially if you are looking to expand. Conducting new research and updating your plan could also provide answers when you hit difficult questions.
Mid-year is a good time to refocus and revise your original plans because it gives you the opportunity to refocus any goals for the second half of the year. Below are three ways to update your plan.
1. Refocus your productivity
When you wrote your original business plan, you likely identified your specific business and personal goals. Take some time now to assess if you’ve hit your targets.
- Example: If you planned to launch a new tips and trends video series and it hasn’t happened yet, what’s stopping you? Put a timeline together and set a launch date.
If you only want to work a set number of hours per week, you must identify the products and services that deliver the returns you need to make that a reality. Doing so helps you refocus your productivity on the most lucrative profit streams.
Also, use what you’ve achieved and the hard lessons you’ve learned to help you re-evaluate what is and isn’t working.
2. Realign with your goals
Do a gut check to determine whether all of your hard work is still aligned with your original goals and your mission statement. Ask yourself these questions:
- Are my goals still relevant?
- Am I still focused on the big picture?
- Where do I want to be a year from now?
- Will my existing plan still take me where I want to go?
These questions may be tough to answer at first glance, but they reveal your ties to your goals and what most likely needs to change to achieve new wins.
3. Repurpose your offerings
If your time has become more focused on small projects rather than tangible growth and building a valuable client list, consider packaging your existing products or services differently. Can you bundle a few things together?
- Example: Laura’s Landscapers might be able to offer a special pool and patio package. Doing so might help them bring in fewer yet higher-paying projects. Perhaps they can offer a maintenance package as well to keep that customer long term.
You must deliberately manage your revenue streams, and that might require shuffling things around a little to focus on what is working for you.
Business plan template
Even if you don’t plan on seeking investments early on, there are other important reasons to use a business plan template to write a great business plan:
- Clarifies what you’re trying to accomplish
- Identifies opportunities to understand your market, like demographics and behaviors
- Establishes the role of each team member
- Gives team members a benchmark to reference and stay on track
- Helps catch errors to make sure financial projections are accurate
- You’ll see the holes and blind spots that could cause future issues
Download the following template to build your business plan from the ground up, considering all the important questions that will help your investors and employees.
The old cliche is still true today: A failure to plan is a plan to fail. Your business plan is crucial to the growth of your business, from giving direction, motivation, and context to employees, to providing thoughtful reassurance and risk mitigation to financers. Before you get your small business up and running , put down a plan that instills confidence and sets you up for success.
Recommended for you
Starting a business
December 15, 2021
pricing strategy
Pricing strategy guide: How to choose one for your business
April 22, 2022
Running a business
Financial forecasting models: 4 methods to consider
February 9, 2022
Get the latest to your inbox
Relevant resources to help start, run, and grow your business.
By clicking “Submit,” you agree to permit Intuit to contact you regarding QuickBooks and have read and acknowledge our Privacy Statement .
Thanks for subscribing.
Fresh business resources are headed your way!
This content is for information purposes only and should not be considered legal, accounting, or tax advice, or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Intuit Inc. does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit Inc. does not warrant that the material contained herein will continue to be accurate nor that it is completely free of errors when published. Readers should verify statements before relying on them.
We provide third-party links as a convenience and for informational purposes only. Intuit does not endorse or approve these products and services, or the opinions of these corporations or organizations or individuals. Intuit accepts no responsibility for the accuracy, legality, or content on these sites.
Looking for something else?
From big jobs to small tasks, we've got your business covered.
Firm of the Future
Topical articles and news from top pros and Intuit product experts.
QuickBooks Support
Get help with QuickBooks. Find articles, video tutorials, and more.
- Accounting software
- QuickBooks Capital
- Checks & supplies
- QuickBooks Desktop
- QuickBooks Enterprise
- QuickBooks Essentials
- Small business insurance
- Live bookkeeping
- QuickBooks Online
- QuickBooks Online Advanced
- Online Payments
- Point of sale
- QuickBooks Self-Employed
- Time tracking
- Money by QuickBooks
- See All Products
- Reports & insights
- Bill management
- Bookkeeping
- Cash flow management
- Cloud accounting
- Direct deposit
- Employee timesheets
- Expense & receipts
- Inventory tracker
- Mileage tracker
- Business checking account
- QuickBooks Integrations
- Tax deductions
- Multiple users
- Mailchimp Integration
- Resource Center
- Product support
- Free invoice generator
- Sales tax calculator
- Product License Agreement
- QuickBooks Apps
- Compare other software
- For accountants
- For developers
- For franchises
- For business affiliates
- For resellers
- Canada (English)
- Canada (French)
- United Kingdom
- Other Countries
Call Sales: 1-844-435-1308
© 2023 Intuit Inc. All rights reserved.
Intuit, QuickBooks, QB, TurboTax, Mint, Credit Karma, and Mailchimp are registered trademarks of Intuit Inc. Terms and conditions, features, support, pricing, and service options subject to change without notice.
By accessing and using this page you agree to the Terms and Conditions.
From Concept to Cocktail: A Step-by-Step Guide to Opening a Bar
For many, opening a bar is the ultimate fantasy — a chance to achieve financial independence, create a social hub for people, and provide a venue for relaxation and enjoyment. However, starting a bar business from scratch is not for the faint of heart. It demands time, effort, and resources.
Fear not, though, because we’ve compiled a list of essential steps to follow when creating a bar from scratch. By following these steps, you’ll be on your way to running a thriving business that caters to your clients’ desires. Here are the steps to follow:
- Conduct Market Research
- Create a Business Plan
- Secure Financing
- Choose a Location and Design the Bar
- Obtain Licenses and Permits
- Hire and Train Staff
- Promote Your Bar
- Choose a POS System.
Conducting Market Research
The ultimate key to unlocking success is to put in the legwork. You need to gather intel on your audience, your competitors, and the current trends in the industry. Armed with this treasure trove of information, you’ll be well-equipped to make savvy choices about your next moves.
Luckily, there are plenty of ways to conduct market research. You could ask your potential clients for their thoughts, or you could dig into industry reports to get a sense of the big picture. To really get the lay of the land, you could also study your competition’s online presence and see what’s working (and what’s not) for them.
Crafting a Business Plan
A business plan is a compass that sets the course for your bar business. It’s a blueprint that outlines your goals, strategies, and financial projections. To paint a complete picture, it should also include a market analysis, marketing plan, staffing plan, and financial plan. With a comprehensive business plan , you can boost your chances of obtaining financing and maintain focus on your objectives.
Securing Funding
Obtaining funding for a bar business is a challenge, but there are various financing options available, such as loans, crowdfunding, and investments. Lenders and investors look for a strong business plan, a competent management team, and realistic financial projections. To heighten your chances of securing financing, be ready to furnish a detailed presentation and demonstrate your expertise in the bar industry.
Finding the Perfect Spot and Crafting the Atmosphere
Location is key when it comes to opening a successful bar. You want to find a spot that’s easily accessible, with good foot traffic and minimal competition. But that’s not all — creating a unique and inviting atmosphere can be just as important. Collaborating with a professional designer can assist you in creating a space that reflects your vision, brand, and the kind of experience you want to offer your patrons.
Navigating Regulations and Permits
Before you can open your doors, you’ll need to obtain several permits and licenses to stay compliant with local regulations. These include a liquor license, food service permit, and zoning permit. Requirements may vary depending on your location, so be sure to research and comply with all regulations. You can contact local licensing and regulatory agencies for support and guidance throughout the process.
Hiring the Best Team
As they say, a team is only as strong as its weakest link. That’s why hiring the right people is crucial to the success of your bar business. Skilled and friendly bartenders, waiters, and support staff can create a warm and inviting atmosphere that keeps customers coming back. Take the time to train your team on your brand, menu, and customer service expectations to ensure consistency and excellence.
Spreading the Word
Marketing and promoting your bar business is key to attracting new customers and building a loyal fanbase. Get the word out through social media, email campaigns, and good old-fashioned word-of-mouth. Plan themed nights, happy hours, and live music events to keep things exciting and entice customers to visit. With a little creativity and effort, your bar will be the talk of the town in no time!
Choosing the Best POS System
Choosing the ideal point-of-sale (POS) system can make or break your bar business. A POS system is your lifeline when it comes to managing transactions and inventory and generating detailed reports to help you monitor sales. You need to ensure you pick a POS system that is user-friendly, reliable, and has all the features you need to run your business efficiently. The right POS system should enable you to keep track of inventory, manage employee schedules, and accept various payment methods, including credit cards, debit cards, and mobile payments. A fantastic illustration of a simplified POS system that can assist you in saving time, reducing expenses, and providing an outstanding customer experience is Poster, click here for more detail .
Starting a bar business from scratch requires a lot of dedication, hard work, and a solid plan. From conducting thorough market research to creating a sound business plan, securing financing, choosing the perfect location, designing your bar, obtaining licenses and permits, hiring and training staff, marketing and promotion, and finally selecting the right POS system — all these essential steps must be executed to achieve success. With the right mindset, resources, and support, you can turn your dream of owning a bar into a reality.
Suggested Articles
Economic recovery plan on right track
Pag-ibig offers calamity loan to members.
Aboitiz Construction ends 2021 with successful projects and an expanded portfolio
Holcim helps build progress in Bulacan with taxes, water initiatives
Eight Steps to a Great Business Plan
- Free Online Education to Start Your Own Business
- Resources & Tools
When writing out a business plan, there are eight necessary steps in the process to produce the best business plan. Find out which steps guarantee the most success in drafting a great business plan.
Two hands with pen and paper are drafting a brainstorm and jotting down notes.
Two hand with pen and paper are drafting a brainstorm and jotting down notes.
Writing a business plan is important to every business and every entrepreneur. Business plans help you share your vision, state your goals, and analyze your strategy. The quality of your business plan impacts the chances that your business will be a success.
Here are eight steps to creating a great business plan.
1. Set aside plenty of time to prepare
Every entrepreneur is excited when first conceiving of a new business. Some entrepreneurs rush the planning process in all that excitement, which is a mistake. Take the time you need to write a high quality plan. Your business is more likely to succeed with a carefully constructed plan.
2. Focus and refine your concept
You need to know what kind of business to start before writing a high-quality business plan. Take the time to decide on a business that has the potential to be successful. The single most common mistake made by entrepreneurs is not selecting the right business initially.
After you have chosen a business, focus and refine the concept. Carefully consider the market, the competition, your capabilities, and the resources you need. How will you make money? Do you have the knowledge and expertise that you need? Where will you operate your business?
3. Gather data on the feasibility of your business
Even the best-sounding businesses can end up being infeasible. Increase your chances of building a long-lasting business by gathering all the necessary data ahead of time. You need to understand your market, how big it is, whether it is growing and how fast. You also need to know about your potential competition and how they are meeting the needs of their customers.
Of course, you need to know about how to finance your business as well.
4. Outline the what, where, why, and how of your business
The best business plans include details about the what, where, why, and how of the business. This is made easier with a complete business plan. provides a convenient outline and structure for every part of a great business plan. It’s free and it will keep you on track.
5. Include your personal experience
It is important to identify yourself as an expert in your particular field. Customers and clients are willing to pay more for a high-quality product or service that is backed by meaningful expertise. In addition, lenders and investors are more likely to support your business if you have the background and education to be successful. Include any and all relevant personal experience in your plan.
6. Use clear language when filling out the MOBI business plan template
The MOBI business plan template makes writing a business plan straightforward. Make sure that you fill out the template with language that is not overly complicated. Simple, clear language will help you communicate with investors, partners, bankers, and employees.
Keep things simple and explain your projections as concisely as you can. It will make reviewing, reading, and understanding your document much easier.
7. Enhance your plan with graphics
Although it is not required, using graphics in your plan can make your concepts and projections clearer. Use pie charts, bar graphs, and any other graphics you think will make your plan more accessible.
8. Share your draft with trusted advisors
Trusted advisors can help you avoid potentially disastrous mistakes, and some are even willing to provide you with their advice free of charge. Consider meeting with trusted advisors like:
- Family members
- Your banker
- Your attorney
- Business mentors
- Potential customers
- Distant competitors
Once you understand what goes into a great business plan, check out the business plan outline from MOBI. It is a great way to get started because it can provide you with the confidence you need to move forward with the details of your plan.
YOU MAY ALSO BE INTERESTED IN: The Business Plan , Your Vision Statement- Where do You Want to Go? , or Meeting the Future Needs of Your Business
Certificate Courses Login
- Auto Insurance
- Full Coverage Car Insurance
- Liability-Only Car Insurance
- Free Car Insurance Quotes
- Best Car Insurance Companies
- Cheapest Car Insurance
- Health Insurance Quotes
- Travel Credit Cards
How to Write a Business Plan: A Step-by-Step Guide
- Compare Small Business Loans
A strong, well-thought-out business plan is crucial for a business's success. Without one, it's tough to maintain a vision of the future and what the next steps for your business should be. Think of it as a litmus test to prove that every step taken is part of a larger calculated effort.
Business plans are also crucial for external affairs. If you want to want to take out a loan, bring on a business partner, or more you'll need a solid plan in order. Your plan should be your pitch.
However, writing a business plan isn't easy and not everyone knows exactly what the business plan should outline. What's even more confusing is that no two business plans should look the same. We wrote a complete guide to show what your business plan should detail and how to write it.
- Before You Begin Writing
How to Write a Traditional Business Plan
- How to Write a Lean Startup Plan
Additional Tips
Things to know before you begin writing.
Know your audience. For example, if your business operates in a very niche space, you don't want to use niche and complex language that no one will understand if your plan will be reviewed by lenders or investors who don't have much knowledge of your space.
Also, keep the length of your plan in mind when it comes to your reader. We would always recommend keeping your plan as short as possible, but certain readers might want to see more details while others might want only the high level information. For example, a potential business partner will likely want to see a bit more details than an underwriter evaluating your business. However, don't go overboard with this and write a 50-page plan, as no one will read that.
Pick Your Format (traditional vs. lean startup)
There are now two ways you can write your business plan. The traditional route, and the most common, is likely what you'll be using. The traditional plan contains far more details and should be used for most scenarios. Alternatively, you can explore a lean startup plan , which are onepagers and detail your business only at the highest level. This is most appropriate for businesses that are likely to change quickly or are on a very, very short timeline.
A traditional plan is typically comprised of seven sections that are each crucial for explaining a different angle of your business. The length and detail of your plan will vary with the audience of the plan and how mature your business is. You'll use a business plan to sell your business to investors, qualify your business with for a loan with lenders, and more. Having a solid plan is always useful and can also help keep your actions as a business owner on track.
Step 1: Write an Executive Summary
As with any other piece of writing, this introduction to your plan is the hook. Why should the reader believe in your business? Sell your business and explain why it matters. Additionally, supplement your sell with a high level summary of your plan and operating model. However, don't go over one or two pages.
Feel free to include the following as well:
- Business Name
- Key Employees
- Business Background
- Listing of goods/services offered
Step 2: Write a Business Description
This is your first opportunity to really go into detail about your business. What's the opportunity that your business is capitalizing on? What's the target market? How are you standing out from competitors? Highlight how your business is differentiated.
Step 3: Market and Competitive Analysis
Any good business will have done comprehensive analyses of the market that its entering. This doesn't just apply to large corporations, and your reader will likely want to see evidence of this. Here, you can describe the industry and market your business will operate in and highlight the opportunities your business will take advantage of. Did your market research reveal any unique trends? If so, this is the place to show it.
Illustrate the competitive landscape as well. What are your competitors doing well and not so well? Why are you moving into this space, and what's the weakness to be exploited in the industry? How will competitors logically react? Are you going to take competitors' customers? How?
Step 4: Operational Structure
This now gets into the tangible details of your business. How will your business operate on a day-to-day basis? Your plan should really detail this out.
What's your business's legal structure? Is it a sole proprietorship? Include this as well. We'd recommend putting together an organizational chart if there are multiple stakeholders to not only show who's involved but to also show how everyone brings something to the table.
Step 5: Product Description
Now, you finally get to discuss in detail what you'll be selling or offering. What's your good or service that's for sale? This section will likely be a bit longer than the others because of its importance.
Be sure to describe your product and how it is differentiated from similar ones. How will it be priced, and how does that play in the market compared to competitors?
Also include a marketing or promotions plan here. You could have the best product in the world but it won't matter if no one knows about it. Identify your target market and really detail out how you'll make that market aware of your product. What's the message you want to promote and why does that resonate with your specific product and the target audience? How will you build awareness and retain loyalty?
Step 6: Raise Capital
If you intend for a prospective investor or lender to read this, you'll want to include a section here on your funding request. Be clear with how much you're asking for and why. You don't want to ask for a $100,000 loan or investment without a clear plan as to what exactly that money would be used for. On top of explaining what the funds would be used for, also clearly state the projected ROI.
Step 7: Financial Analysis and Projections
It doesn't matter if you include a request for funding in your plan, you will want to include a financial analysis here. You'll want to do two things here: Paint a picture of your business's performance in the past and show it will grow in the future. Use charts and images to help make the experience easier.
If your business has already been operating for a few years, demonstrate stability through your finances. But if your business is newer and not yet profitable, be clear and realistic with your projections. For example, if your sales have been increasing at a steady 5% every quarter, you don't want to suddenly assume 50% sales growth per quarter for no reason.
Research industry norms and look up how comparable businesses have performed. Include income statements, balance sheets and cash flow statements for multiple years if possible. When showing your financial outlook, project your vision out over at least five years. Clearly state the logic behind your projections, and you can also tie this section back to your previous section on raising capital if applicable.
Step 8: Appendix
If you have any remaining pieces of information such as relevant patents, licenses, charts or anything else that wasn't able to fit in organically in the plan elsewhere, feel free to include those here. Don't use this as a space as a document dump. Instead, be absolutely sure that every piece of information that goes here goes toward supporting your business plan.
How to Write a Lean Startup Business Plan
The logic behind lean startup plans is that every business plan can be divided into nine segments. Without going into detail, you can describe each of those segments at a high enough level where they can be listed out on a single page. Compared to the traditional business plan, this allows for far more flexibility in case your business drastically changes quickly. There are dozens of templates to choose from but the most common is listed here .
Here are the basic components you'll need in a lean startup plan:
Customer Segments. Describe your target audience(s) that your business will appeal to. Most businesses will have multiple segments listed here and it's imperative that you properly identify them.
Value Proposition. Your business will potentially appeal to different customer segments in different ways. If that's the case, you should list out the different value propositions for each segment clearly and succinctly. If that isn't the case, you can list out the single value proposition your company will have. If you can't figure out what your value proposition is, that means you don't know what your business's value add is.
Channels. How is your value proposition going to be communicated to your customers? Detail out brand awareness as well as ongoing communication channels with your customers.
Customer Relationships. After you've explained how you'll be communicating to your customers, think about the kind of relationship you'll want to maintain with them. Will communication be ongoing? Will you personally be contacting them or sending automated emails?
Revenue Streams. How will your business make money? At what point in the relationship with your customers do you start to recognize revenue? Most companies will have multiple streams although if your business is just starting out, you may only have one. That's OK, but just be sure to demonstrate you know exactly where your revenue will come from.
Key Resources. You've described how you'll be capturing revenue from your customers, but what will the infrastructure look like that will support it? Supporting resources may include but aren't limited to staff or capital.
Key Activities. What are the absolute necessary activities in your plan for your business to be successful? Detail them out here and show why they're important.
Key Partnerships. As a new business, you likely won't own all of your key resources and won't be able to do all of the key activities yourself. What other entities are you working with? Consider suppliers, vendors and anyone else you're planning on doing business with.
Cost Structure. Now that you understand your business's infrastructure and needs, you can detail out the total projected costs of your business or at least identify the biggest costs you have in your plan right now. What is your plan to ensure you're maximizing the value out of those costs?
Be efficient with your plan: Be sure every single word and image in your plan serves a purpose. You don't want window dressing for the sake of window dressing here. Being concise and getting straight to the point will help make your plan more digestible and easier to understand.
If your plan starts to exceed 20 pages, really proofread tosee if anything should be cut out. Also, follow the advice we mentioned above and be aware of your audience. Don't write a plan that will confuse or bore the reader.
Keep yourself honest: Don't assume a fantasy world when writing your plan. Be honest and realistic. Use industry or sector benchmarks to determine what those realistic measures are, and be wary of inflating projections. This is a very common problem and it doesn't help anyone out.
Accept help: There are so many free resources both online and in person to help with all small-business affairs. Nonprofit organizations like SCORE offer things like free mentoring and can help you write your business plan. If you're a woman or a minority, there are many government sponsored resources like the National Women's Business Council that also provide free consulting.
What needs to be in a business plan?
The exact contents of a business plan will differ plan by plan, but in general, the typical plan should include an executive summary, a business description, a market or competitive analysis, a description of the proposed operational structure, a product description, and a pitch to raise capital if applicable.
Why is a business plan important?
Business plans are efficient ways to explain your business in a comprehensive and broad manner. Lenders may make decisions to lend to you based on your business plan. Investors may decide whether they want to invest in your business based on your plan.
Not only are plans useful to externally communicate details about your business, they're also useful as an internal reference. Plans will help keep your business on track and help align your strategic goals with actions that you make on a daily basis.
How do I write a business plan for a loan?
Most lenders will require a business plan from applicants. A business plan should always take the audience into account and in this case, you'll want to emphasize how your business stands out in the market, why it's likely to be a success, and how your plan involves paying off your loan quickly and on time. As long as a lender is confident that you'd be able to meet your loan repayments, your business plan did its job.
What's the difference between a traditional and a lean plan?
A traditional plan is far more common and will carry a lot more detail than a lean plan. While the two are relatively similar in content and structure, a lean plan only contains the bare minimum level of detail. A lean plan is usually a one-pager and only has the minimum amount of detail to be able to describe the business at the highest level and should only be used when the company is both very new and time is scarce.
Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
Our Top Picks
- Small Business Startup Loans
Small Business Financing Resources
- SBA Loans Explained
- Line of Credit for Businesses
Small Business Loan Analysis
- Average Small Business Loan Rates
- Average Commercial Mortgage Rates
- Average Small Business Loan Amount
- Small Business Loans
To get an insurance quote over the phone, call: (855) 596-3655 | Agents available 24 hours a day, 7 days a week!
How to create the perfect business plan in 10 steps
Every business needs a plan. But how do you write one? Here are 10 steps to help you get it right.
Why do you need a business plan?
You may be wondering why you need a plan in the first place. After all, you have a clear idea in your mind about what you want to achieve. You know the market, you have the necessary skills. So why do you need a plan?
There are many good reasons. Here are just a few of them:
- To clarify your ideas: Writing something down gives it structure and substance. Your ideas will be clearer on paper than in your head.
- To discover and solve problems: The business idea you have in mind may have some holes – you might not have covered everything. This will become much more apparent when your words are on the page.
- To get feedback from others: A properly written business plan can be shared with trusted people to get their advice.
- As a formal document: Banks, investors, accountants and lawyers will want proof that you’re serious about your business. A written plan will provide that proof.
- To guide you as your business grows: A good business plan will keep you on track and focused, even as day-to-day work becomes a distraction.
If you’ve never written a business plan before, it can be a daunting prospect. But these 10 steps will help you create the perfect business plan.
1. The executive summary
This is where you describe your company and the product or service that it will sell. This must be brief, to catch and hold people’s attention.
Try to describe the goal and mission of your business in just a couple of sentences. Work hard at this and try to make it memorable.
Treat this section as an elevator pitch document – it should be succinct and easy to remember.
2. Who are your customers?
Do you have a clear idea of the type of people (or businesses) who will buy your product or service? If not, think carefully until you do.
This is one of the first questions any investor will ask you about your business plan. Have your answers ready.
- Know whether your customers will be consumers or businesses. If they are businesses, who will you target within those companies? Maybe it’s the salesperson, or perhaps it’s the CEO?
- Determine whether you'll have regular clients or one-off buyers.
- Make sure you’ve actually spoken to some of your potential customers.
3. Evaluate the target audience
There’s no room for guessing here. You need to identify the people or businesses who will buy from you. Think about the following:
- Demographics – such as age, gender and social status
- Firmographics – includes size of the company, revenue of the company and services or products of the company
- Location – perhaps a specific area, town, or even country
- Profession – maybe you’re targeting accountants, police or lawyers, for example
- Groups – such as people with shared interests or habits
The better you evaluate your target audience, the more comprehensive your business plan will be.
4. What are your opportunities?
Successful businesses think big. You might be starting small, but you don’t have to stay that way. So write down the possible opportunities for your business as it grows.
For example, perhaps you’re planning to start by selling over the internet. That’s great, but how will you get traffic to your site? How will people find you online? Will you need salespeople? If not, how will you convince people to buy from you?
As the business grows, is there scope for a bricks-and-mortar retail outlet? What other opportunities will you have if your business grows as planned?
5. Understand the competition
Every business has competition. If you don’t mention yours, investors will think you’re unprofessional – or just plain naive. Be thorough, and list all your existing and potential competitors:
- Who are your direct competitors – those selling the same products as you?
- Who are your indirect competitors – those whose market overlaps yours?
- What will prevent other companies competing with you – what are the barriers to entry?
- What is your USP (unique selling proposition)? In other words, what’s your point of difference that makes you different from your competitors?
That last point is important. You need to explain how your business will differentiate itself from all the others. That might be based on price, service, quality, range or value. Make sure you spell it out.
6. Build a simple financial plan
All business plans should contain some financial information. This should include the overall costs of setting up your business. For example:
- Cost to make or buy products
- Costs for labor and manufacture, including raw materials
- Employee costs, especially for service businesses
- Distribution and marketing costs
- Fixed and variable overheads
Good accounting software will help you create a draft financial model. We’ll look into this in more detail in a future guide. For now, talk to your accountant or bookkeeper for help and advice.
7. Include an outline marketing plan
For this section of your business plan, you need to think about the five ‘Ps’:
- Pricing – how will you price the end product?
- Positioning – how does your product or service fit into the market?
- Promotion – what channels will you use to attract and communicate with customers?
- Profit – how much do you expect to make per item sold?
- Place – what are your sales outlets?
8. Plan your operations
Put your vision to one side for a moment. What are the daily tasks that need to be done when running the business? Include all business processes such as manufacturing and packaging. Try to cover all departments too, including sales and customer service.
9. Get the right people
This is one of the most important factors. Think about who you want to hire . How will you find people whose skills complement yours? And how will you convince them to work for you?
Also think about who you want as your business advisors. You'll need people you can trust, to guide and mentor you at times when you need it.
10. Simplicity is the key
Keep it simple. Complex and long documents won’t be read – either by you or by potential investors. A business plan should be brief, relevant and focused (you can use our free business plan template ).
If you find yourself getting carried away while writing, stop and take a break. Then go back and edit what you’ve written. Shorter is better. The core of a good business plan should be just a few pages long.
Plan your business around your strengths
As you write your business plan , keep in mind your strengths – and also any areas for improvement. This will help you construct a plan that makes the most of your abilities, while still being realistic. That's more likely to convince investors that you're serious.
Your business plan is a roadmap for your business – but it's not set in stone. Review it at least once a year and make changes if necessary.
Above all, keep getting feedback from your advisors – official and unofficial ones. With their help, you'll create the perfect business plan that takes you where you want to go.
Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.
Download the business plan template
Fill in the form to get a free business plan template as an editable PDF. We’ll send a one-pager and a multi-pager to choose from.
Privacy notice .
Start using Xero for free
Access all Xero features for 30 days, then decide which plan best suits your business.
- Included Safe and secure
- Included Cancel any time
- Included 24/7 online support
Or compare plans from $3.25 per month
An official website of the United States government
Here’s how you know
Official websites use .gov A .gov website belongs to an official government organization in the United States.
Secure .gov websites use HTTPS A lock ( Lock A locked padlock ) or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
Simple Steps for Starting a Business: Marketing Your Business
NOTE: Once you sign up for one part of this series, you will be signed up for all parts (no need to re-register).
This is a 4 module workshop series that will take you through the basics of starting up a business. If you are willing to roll up your sleeves & work with the instructors, you'll come away with a good understanding of the specific challenges & opportunities you will face. You will have a financial plan, a marketing plan, and an estimation of the funding you will need to get started.
Workshop #3: Marketing Your Business
In this workshop, you will learn:
- Branding your business - Steps to creating your brand
- Developing your marketing plan - Crafting a plan to communicate your marketing message
- Marketing your business with social media - What you need to know to use social media effectively
- Pricing your product or service - Learning to properly price your product for business success
Copy of the recording and materials will be sent to all attendees.
How to Start a Business in 8 Steps — 2022 Guide
Starting a business requires a lot of work. The amount of documentation, legal requirements, and strategic development can simply be overwhelming. But without putting in the effort, you’ll struggle to turn your idea into a successful business.
Now, we’re not looking to scare you away from entrepreneurship. We just want to keep things realistic, while telling you that it is 100% possible to start your own business. It’s going to take time, effort, and potentially a few setbacks, but you can do it.
How to start a business
At this point, you may be wondering where to start. Should you work on your business name and logo or tackle your business structure? Does it make sense to already start applying for loans or focus on product development?
It can be difficult to know the right steps to take. But that’s ok. Starting your own venture is all about trial and error. Working through the process to find what works for you and what resonates with potential customers.
But rather than being overwhelmed by all the decisions and tasks you have at hand, there are steps you can take to kickstart the development of your business. Let’s get started.
1. Determine if entrepreneurship is what you want
Before diving into the details of your potential business, it’s best to take stock of yourself and your situation.
- Why do you want to start a business? Is it money, freedom, and flexibility, to solve a problem or some other reason?
- What are your skills?
- What industries do you know about?
- Do you want to provide a service or a product?
- What do you like to do?
- How much capital do you have to risk?
- Will it be a full-time or a part-time venture ?
Your answers to these types of questions will help you narrow your focus.
This step is not supposed to dissuade you from starting your own business. Rather, it’s here to get you thinking and planning. In order to start a successful business, passion alone isn’t enough.
“Know yourself, and work in a job that caters to your strengths. This knowledge will make you happier.” — Sabrina Parsons | CEO of Palo Alto Software
Conduct a self-assessment
You need to plan, set goals, and above all, know yourself. What are your strengths? What are your weaknesses? How will these affect day-to-day operations? You could conduct a SWOT analysis on yourself to figure this out.
As you get started, your business will likely dominate your life so make sure that what you’re doing is stimulating and challenging, but not completely outside of your expertise. You’re going to be in it for the long-haul. Use what you learn from the SWOT analysis to think through what you want your life to be like, not just what you want from your business.
Some good questions to ask yourself include:
- What would you do if money wasn’t an issue?
- Is money really important? Or rather, is making a lot of it really important? If it is, you’re probably going to be cutting out a number of options.
- What really matters to you?
- Do you have the support of your family , especially your immediate family? They may have to make sacrifices at the beginning, so it’s important to have them behind you.
- Who do you admire in business? Maybe there’s even someone in the industry you’d like to go into. Why do you admire them? What are their likable traits? What can you learn from them?
Answering these questions (and many more) about yourself and your abilities isn’t necessarily going to ensure you’re successful, but it will get you thinking about your goals and about what motivates and inspires you. Use this time to make sure that you are matching the business you want to start to your personal aspirations.
Be sure to take our quiz to find out if you’re entrepreneur material , too.
2. Refine your idea
Once you know why you want to start a business, it’s time to find and develop your idea . More than likely, you already have something in mind after going through your self-assessment. But if you need inspiration, you can check out our sample plan library to explore different industries, or read up on trending start-up ideas .
Now it’s not enough to just think you have a good idea and run with it. You need to validate that there is a need. You also need to start addressing whether this idea is sustainable or not.
Start with a Lean Plan
We’ll get into the specifics of how to explore the market and determine if you’re idea is a good fit in just a moment. Right now, we recommend that you consider starting a Lean Plan to help make the rest of this process much easier.
The Lean Plan is a simple, one-page document that helps you refine your idea. It ensures that you’re considering your mission and value proposition early on, while also providing structure for the more technical portions of your business. In fact, it will provide you with the perfect template to tackle the rest of these steps.
You can download our free Lean Planning Template right now to get started.
3. Conduct market research
Once you decide on a business that fits your goals and lifestyle, it’s time to evaluate your idea. Who will buy your product or service? Who will your competitors be? This process will help you address your opportunity, value proposition, the market size, and competition sections of your Lean Plan.
There are a number of ways you can do this, including:
- Performing general Google searches,
- Speaking to people already working in your target industry
- Reading books by people from your industry
- Researching key people
- Reading relevant news sites and industry magazines
- Taking a class or two (if this is possible).
If you don’t have time to perform the research or would like a second opinion, there are people you can go to for help, like government departments and your local SBDC .
“The more you know about your industry, the more advantage and protection you will have.” — Tim Berry | Founder of Palo Alto Software
Evaluate your target audience
It’s not enough to just state the current market. You need to know what portion you’ll be able to claim and if it’s really possible. To determine how attractive your prospective market really is, we suggest doing a market analysis .
It will guide your research as you think about:
- How urgently do people need the thing you’re selling or offering right now?
- What’s the market size? Are there already a lot of people paying for products or services similar to yours? Have you honed in on who exactly your target market is? Being specific will help you focus your marketing message and investment.
- How easy is it (and how much will it cost you) to acquire a customer? If you’re selling enterprise software, this may require a significantly larger investment than a coffee shop.
- How much money and effort will it cost to deliver the value you would like to be offering?
- How long will it take to get to market? A month? A year? Three years?
- How much up-front investment will you need before you can begin?
- Will your business continue to be relevant as time passes? A business that repairs iPhone X screens will only remain relevant so long as the iPhone X sticks around. If your business is only relevant for a specific period of time, you will also want to consider your future plans.
Research the competition
If you like, you can even take things a step further and consider the consumer needs currently not being met by businesses in the industry. This is a good time to take a look at potential competitors. And remember, the presence of competitors is oftentimes a good sign! It means that the market for your product or service already exists, so you know that you have potential customers who are willing to spend money on your product or service.
While you’ve got the time, learn as much as you can about your competitors , about what they provide to their customers, how they attract attention, and whether or not their customers are happy. If you can figure out what’s missing before you even get started, your job will be made that much easier when you do finally set up shop.
Validate your idea
Lastly, it’s important to field test your idea , services, or products. As you conduct research, take the time to actually speak to your potential customers. Present them with the concept you intend to launch to gauge interest, as well as confirm which competitors they may already use and the price they’d be willing to pay. If you can, it may be worth developing a minimum viable product (MVP) to help showcase what you’ll be providing.
You don’t even need to do this process in-person. Instead, you can:
- Send out surveys
- Join forums and Facebook Groups
- Sell pre-orders
The important thing is to establish what success looks like. Know what threshold you need to hit and be willing to pivot your idea or target audience if it’s not panning out as you expect.
4. Write your business plan
If you will be seeking outside financing, a business plan is a necessity . But, even if you are going to finance the venture yourself, a business plan will help you figure out how much money you will need to get started, what it will take to make your business profitable, what needs to get done when, and where you are headed.
A roadmap for your business
In the simplest terms, a business plan is a roadmap—something you will use to help you chart your progress and that will outline the things you need to do in order to reach your goals . Rather than thinking of a business plan as a hefty document that you’ll only use once (perhaps to obtain a loan from a bank), think of it as a tool to manage how your business grows and achieves its goals.
While you might use your business plan as part of your pitch to investors and banks , and to attract potential partners and board members, you will primarily use it to define your strategy , tactics, and specific activities for execution, including key milestones, deadlines, and budgets, and cash flow.
You have a head start with your Lean Plan
Here’s the thing, your business plan does not have to be a formal document at all if you don’t need to present your plan to outsiders. Instead, your plan can follow a Lean Planning process that involves creating a pitch , forecasting your key business numbers, outlining key milestones you hope to achieve, and regular progress checks where you review and revise your plan.
If you aren’t presenting to investors, don’t think of this as a formal pitch presentation, but instead a high-level overview of who you are, the problem you are solving, your solution to the problem, your target market , and the key tactics you will use to achieve your goals.
Hopefully, you’ve already started developing your Lean Plan at this point as you explored your business idea. If not, now is the time to get started. Because, even if you don’t think you need a formal business plan, you should go through the planning process anyway. The process will help to uncover any holes or areas you have not thought through well enough.
What goes into a formal business plan?
If you do need to write a formal business plan document, you should follow the outline below.
The standard business plan includes nine parts:
- The Executive Summary
- Target Market
- Products and Services
- Marketing and Sales Plan
- Milestones and Metrics
- Company Overview
- Management Team
- Financial Plan
If you would like detailed information on how to write a business plan to present to banks or funders, there are plenty of online resources, including our own comprehensive guide .
You will also find hundreds of sample plans for specific industries on this very website. Use them at your leisure but be prepared to adapt them to suit your precise needs. No two businesses are the same!
Types of business plans
If you are simply creating a business plan in order to stimulate a discussion with potential partners and associates, you may want to consider opting for a “startup plan,” also known as a feasibility plan. As your business grows you can flesh out the sections as you see fit.
In contrast to the standard plan and the startup plan, is the operations or annual plan . This type of plan is used for internal purposes and primarily reflects the needs of the members of the company. This type of plan is not intended for banks and outside investors. You will use it either to plan your company’s growth or expansion or to set company-wide priorities.
If the latter is true and you are using the plan in order to direct your internal strategy, you are creating a strategic plan , a type of plan that will include a high-level strategy, tactical foundations of the strategy, specific responsibilities, activities, deadlines, and budgets, and a financial plan.
5. Make your business legal
Realistically, registering your business is the first step toward making it real. However, as with the personal evaluation step, take your time to get to know the pros and cons of different business entities.
If at all possible, work with an attorney to iron out the details. This is not an area you want to get wrong. You will also need to get the proper business licenses and permits. Depending upon the business, there may be city, county, or state regulations as well. This is also the time to check into insurance and to find a good accountant.
Types of business formations include:
- Sole proprietorship
- Partnership
- Corporation
- Limited Liability Company (LLC)
Spend some time getting to know the pros and cons of each business formation. If you need help, we’ve got a full guide on Legal Entities, Licenses, and Permits .
While incorporating can be expensive, it’s well worth the money. A corporation becomes a separate entity that is legally responsible for the business. If something goes wrong, you are less likely to be held personally liable.
Other things you will need to do include deciding on a business name and researching availability for that name.
6. Fund your business
Depending on the size and goals of your venture, you may need to seek financing from an “angel” investor or from a venture capital firm. But, most small businesses begin with a loan, financing from credit cards, help from friends and family, and so on.
Investment and lending options include:
- Venture capital
- Angel investment (similar to venture capital)
- Commercial (banks)
- Small Business Administration (SBA) Loans
- Accounts receivable specialists
- Friends and family
- Credit cards
For in-depth information on funding, see our complete guide on how to get your business funded , which includes detailed information on each of the above-mentioned options.
Note: A beautifully fleshed-out business plan does not guarantee you will get funded. In fact, according to Guy Kawasaki, the business plan is one of the least influential factors when it comes to raising money.
To stand a realistic chance of getting hold of the funds you need to get started, you’d be better off first focusing on your “pitch.” Not only will it be easier to fix because it contains less, but you’ll also get feedback on it—most investors don’t bother reading the full business plan, though they may still expect you to have it.
It’s also much easier to turn a pitch into a business plan than it is to pare back your plan.
7. Pick your business location
Your business plan has been laid out, the money is in the bank, and you’re ready to go. If your business is online and you won’t need a storefront, you’re probably looking at building your website and choosing a shopping cart solution. Maybe you’ll be able to work out of a home office or a co-working space instead of renting or buying office space. But if your business needs a dedicated brick and mortar location, there are many considerations.
Finding a location. Negotiating leases. Buying inventory. Getting the phones installed. Having stationery printed. Hiring staff. Setting your prices. Throwing a grand opening party.
Think through each of these steps carefully. Your business location will dictate the type of customer you attract, what types of promotions you can run, and how long it will take you to grow. While a great location won’t necessarily guarantee your success, a bad location can contribute to failure.
What to look for in a physical location
As you’re thinking about where you want to set up shop (including the city and state), consider the following:
- Price: Can you realistically afford to be where you want to be? If not, or if you’re cutting it fine, keep looking.
- Visibility: Will people easily be able to find you? Will they see your promotions and offers? Are you in the center of town or further out? How will this affect you?
- Access to parking or public transportation: Can people easily find you from available parking options and transportation routes? If they have to look too hard, they may give up.
- Distribution of competitors: Are there many competitors close to you? If so, this may be a sign that the location is premium for the clientele you wish to attract. It may also mean you do no business. Consider carefully how you wish to approach this type of situation.
- Local, city, and state rules and regulations: Look into regulations, as areas may be more stringent than others. Ensure there are no restrictions that will limit your operations or that will act as barriers to your store.
Things to consider when developing a retail location
Your marketing will set the stage for the future of your store. It will set expectations, generate hype (if done well), bring business in from day one, and ensure that people know where you are and what they can expect from you.
Your store’s layout, design, and placement of your products will decide not only the overall atmosphere of the store but what products people see and buy. Consider the areas you want well lit; how you will display products (if necessary); what various colors will make people feel, and how people will move through your store.
There are reams of literature on why we buy what we do, all of it fascinating and much of it informative. Begin thinking about how you shop—this will get you to think more critically about your own store.
Your choice of products and how you decide to price them will create a reputation. Rather than stock everything of a similar price range from one or two catalogs, consider only choosing those items that will create the feel you want to become known for.
If you’re a service business, build your services in a similar manner, considering your different clientele and the value they will get from the different options you have on offer. If a very affordable package will cheapen your brand, consider excluding it. If a pricier option will limit your clientele too drastically, maybe cut back on some of the services included.
Online businesses
Many retail locations are still facing closures in 2021, making it more and more likely that businesses will launch online . An online or remote business potentially eliminates some risk, but it does add other complications that you’ll need to consider.
First, you need to prioritize web development and your online user experience. If you don’t have a physical location or live customer service, you need to make sure that your site experience is seamless. This means carefully choosing an eCommerce platform , testing your UX design , and consistently making tweaks based on user feedback.
Second, you need to integrate remote work within your business. It may be just you to start with, but as you grow and expand you need to know how to handle a virtual workforce. Vet remote working tools, look to ingrain virtual processes and documentation from day one, and be sure that you know how to communicate online . By handling these things upfront, you can ensure that these won’t become stumbling blocks down the road.
8. Prepare for growth
Whether you’re starting your first or your third business, expect to make mistakes. This is natural and so long as you learn from them, also beneficial.
The best thing you can do to take advantage of any mistakes is set up review processes to help you make decisions. This is where the Lean Plan, or full business plan, you’ve been working on comes into play.
If you have your plan up to date, you can set up monthly review meetings to go over the numbers, your strategy and develop forecasts for the next month, quarter, and year. This is a simple way to keep track of performance and actively make decisions based on actual results. So, rather than reacting to bad situations, you are preparing for them and facing uncertainty with certainty.
To help you start your review process, you can download our free cash flow statement and balance sheet examples to begin tracking your financials. And for a simpler solution, that makes reviewing forecasts and financial statements faster and simpler, you may want to consider LivePlan .
With LivePlan, you can create your Lean Plan, full business plan, pitch, and develop forecasts all within one platform. But, if you’re not quite ready to invest in a planning platform, the templates within this guide will be enough to help you get your business up and running.
Candice Landau
Candice is a freelance writer, jeweler, and digital marketing hybrid.
Starting or Growing a Business? Check out these Offerings.
Full Business Plan in Half the Time— and Double the Impact
Save 25% Annually
Management Dashboards
All the Insights You Need to Help Your Business Succeed
Works with QBO & XERO
One-Page Business Pitch
Write A Winning Business Pitch In Just 60 Minutes
Start for $20/mo
Business Tools
Exclusive Offers on Must-Haves for New and Growing Businesses
$100+ in savings
Plan, fund, and grow.
Easily write a business plan, secure funding, and gain insights.
Achieve your business funding goals with a proven plan format.
More From Forbes
12 key steps when planning a business trip.
- Share to Facebook
- Share to Twitter
- Share to Linkedin
For the business professional who has been in their field for some time, business trips have most likely become a common occurrence. If you're new to the world of executives, however, a business trip may be both an exciting opportunity and a daunting task.
Sadly, while businesses pay for their executives or employees to go on business trips to expand the company's influence, they rarely teach them what to expect when they set out on that visit. To aid newcomers to the position prepare for both the expected and unexpected aspects of a business trip, 12 members of Forbes Coaches Council share some of the most crucial steps everyone should take when planning such a trip.
Members of Forbes Coaches Council discuss techniques they take to ensure the success of their business trips.
1. Stay Travel-Ready
Traveling used to be incredibly stressful for me and I've found the easiest way to handle this was by staying travel-ready. I have a speaking capsule wardrobe, so I never have to stress about anything fitting or coordinating. I keep duplicates of my makeup bag, toiletries and supplements. And I order healthy snacks and water to be delivered to my hotel room, so I'm fueled up for a busy day. - Racheal Cook , Racheal Cook MBA
2. Make Preparation Your Travel Buddy
Being overprepared can become a huge benefit. I like to research who will be there and the area and pack more than I need. One time, I showed up without my suit and I was the keynote speaker! It was quite embarrassing—luckily, I knew what stores were in the area and I was able to grab a backup just in time. Whether you're speaking or simply attending, go overprepared. - Miranda VonFricken , Miranda VonFricken Mastermind Coaching
3. Establish Membership Programs
If you've never been traveling for business before and expect to start, start exploring airline, hotel and rental car membership programs. Also, research a credit card that gives you extra points toward travel expenses. If you plan to do a lot of business traveling, these programs pay you back. Over time, these programs make traveling even easier with perks and upgrades. - John Knotts , Crosscutter Enterprises
4. Plan For Unexpected Delays
Planning for travel (essentials plus backup headphones, hefty power sources for recharging, etc.) is key for a smooth trip. Unexpected delays are often the greater challenge. Maximizing “work time” while on board will help reduce frustration and the time cost of traveling. Upgrade to premium economy or first class for easy in and out, the highest productivity and space to use your laptop and be in work mode. - Christy Geiger MCC, CPCC , Synergy Strategies Coaching & Training
5. Create A Clear System
Create a system that will help with all your trips. Have a packing list and check the weather for your destination so that you can prepare accordingly. Plan out your meals so that you can cater to any dietary needs you might have. Do you have access to a gym? Learn about the transportation systems and the availability of ride-sharing in that city. Will you be walking? Then you'll need comfy shoes! - Carolina Caro , Carolina Caro
6. Network Before You Get There
Many first-timers and even experienced business travelers leave the networking for when they attend the meeting or conference, but sometimes it is too late when they do. Why is that? Isn't the purpose of travel to meet, talk and network when you get there? Not if you want to get the most out of business travel. What could you do? Know people's bios, connect on LinkedIn and plan for a better meeting. - John M. O'Connor , Career Pro Inc.
7. Take Extra Care
If you're traveling for work, remember that you are the most important asset. If you get tired or sick, you cannot bring your A-game, which is why they hired you. Everything counts. As a speaker, I block off time to decompress, eat well, sleep well and limit my time with people before I travel. Because I want to bring high energy on stage, even as an extrovert, I'm mindful of how I spend my time. - Monica Kang , InnovatorsBox
8. Pack Light And Stay Productive
I was in my early 20s when I took my first business trip and I wish someone would have told me that packing light is key. Throughout the years I also learned to carry my work with me. From handling work calls to finishing up presentations at the airport, it’s all possible if you prepare all your tools ahead of time. There's plenty of time to be productive when you travel. Staying productive is key. - Adriana Rosales , Adriana & Company™ LLC
9. Don't Check A Bag
Because I’m a guest expert on TV and coach clients on TV shows, I spend more than 150 nights a year in Marriott hotels alone. The most important thing for any traveler is to not check a bag. Checking a bag causes you to wait at baggage claim, and often bags don’t show up. Get a great carry-on, fill it to the max and carry your bag on every time. Never check a bag. - Clint Arthur , Celebrity Entrepreneur
10. Consider Cultural Differences
Cultural difference doesn't always happen in different countries or continents. If you live in the Midwest, LA is a different country. The dress codes, after-hours interactions, salutes, handshakes, collaborations and even ways to present in a meeting can be different. Talk to a friend, co-worker or even the person you will meet about general rules and protocol. That can save you from making a bad first impression. - Susan Ibitz , HUMAN BEHAVIOR LAB
11. Back Up Your Laptop
Every time I travel for a business trip (or any time I travel with my laptop), I always make sure that my files (the entire Documents folder) are backed up to an external hard drive and that mission-critical files for that particular trip are backed up to the cloud and a thumb drive so that I've got access to them should my laptop die, get stolen, etc. - Annette Franz , CX Journey Inc.
12. Always Bring A Presenter's Kit
Take a speaker’s kit! A laptop, presentation remote (I use the Logitech Spotlight), cables and adapters for any TV, monitor or projector and your signature speech is an absolute must. Anytime you have a chance to share your personal or business story to any size audience could land you the deal or opportunity of a lifetime. My big wins from being prepared include TV, publishing and massive brand deals. - Mike Koenigs , MikeKoenigs.com
- Editorial Standards
- Reprints & Permissions
You’re our first priority. Every time.
We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.
So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .
How to Create a Business Budget for Your Small Business
Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .
As a new small-business owner, you have to figure out a lot of things you’ve never done before. One of them is how to create a business budget — and that can be intimidating, especially when you’re just starting out. How, exactly, do you know where to find the right financial information — let alone learn the business finance terminology — and put all that data together in the right order?
This can all be enough to scare some people away from starting a business in the first place. One study suggests that the majority of small-business owners don't even have a budget to begin with. But the process of how to create a business budget isn’t actually that difficult if you approach it the right way. It can all be broken down into six steps.
Many people think of budgeting as their least favorite part of running a business — but if you want to be successful, creating and maintaining a proper business budget will be a critical component of that success. Here’s a step-by-step guide for how to create a business budget.
How to create a business budget: Why do it in the first place?
Budgeting for your business is about making an educated guess as to how the future of your business’s finances will look. It requires examining what happened last month, what happened three months ago and what this month last year looked like — then using that information to make wise financial decisions for the months and years ahead.
If you’ve had a few bad months and predict you’re looking at another slow one, you can prepare to minimize expenses where possible. If business has been booming and that video you posted went viral and is bringing in customers, live a little riskier and invest in buying more inventory to satisfy those incoming customers and keep them coming back.
In other words, you don’t need a crystal ball to run a business, but you do need to learn how to create a business budget. And that does take some intuition and educated guesswork to make sure everything continues to run smoothly.
Why you need a business budget
When just launching your business, creating a budget is one of those things that can fall by the wayside. If your business is operating with a significant amount of profit or is going through a boom, it might not seem important to create a business budget.
But a budget can help to ensure long-term success for your business. A budget helps you to see past next week and next month to next year, or the next five years, even.
More specifically, a business budget can help your business benefit by:
Making it more efficient.
Pointing out funds leftover that you can reinvest.
Predicting slow months and keeping you out of debt.
Estimating what it will take to become profitable.
Providing a window into the future.
Helping you keep control of the business.
Creating a business budget will make operating your business easier and more efficient. A business budget can also help to make sure that you’re spending money in the right places and at the right time to stay out of debt.
How to create a business budget: A 6-step guide
As you get started, you’ll notice that the business budgeting process starts with looking backward at your past income and expenses. The longer you’ve been in business, the easier this process will be, as you’ll have more data to look back on as you move to creating your forward-looking budget.
If your business is brand new, however, you might have to do some more extensive research into typical costs within your industry or area in order to gather working estimates for your forecasted finances. A business budget template can also help you get organized.
1. Examine your revenue
The first step in any budgeting exercise is to look backward at your existing business and find all of your revenue (aka income) sources. Add all those income sources together to discover what money comes into your business on a monthly basis.
When finding your income, make sure to calculate for revenue, not profit. Your revenue is all the money that comes into the business before expenses are deducted. Profit is what remains after expenses are deducted.
Once you’ve identified all of your income streams, calculate your monthly income. It’s important to do this for multiple months — and preferably for at least the previous 12 months, provided you have that much data available.
With 12 months (or more) of information, you can examine how your monthly income changes over time and look for seasonal patterns. Your business might experience a slump after the holidays, for example, or during the hot summer months. Knowing about these seasonal changes will ensure that you can prepare in advance for the leaner months, and give yourself a financial cushion.
2. Subtract fixed costs
The second step in creating a business budget is to add up all of your fixed costs. The term fixed costs applies to any cost that is necessary on a recurring basis for the operation of your business. Fixed costs might occur daily, weekly, monthly or even yearly, so make sure to get as much data as you can.
Examples of fixed costs within your business might include:
Debt repayment.
Depreciation of assets.
Insurances.
Your small business is unique and will have different fixed costs than what’s described here. Take a few minutes to make note of other fixed costs that might be associated for your business.
Once you’ve identified your business’s fixed costs, you’ll subtract those from your income and move to the next step.
3. Determine variable expenses
As you search for the data you need to list out your fixed costs, you might have also noticed there are some variable expenses within your business as well.
Variable expenses are those that change depending on how much you use the service. Many of these are necessary for your business to stay in operation, like utilities.
You’ll also find expenses in here that aren’t necessary for the function of your business, but would be nice to have, like education, or extras that can increase profitability. Those are called “discretionary expenses,” which you can roll into your variable expenses fund, too.
Some examples of variable expenses are:
Owner’s salary.
Replacing old equipment.
Office supplies.
Professional development.
Marketing costs.
During lean months, you’ll need to lower your business’s variable expenses, beginning with discretionary spending. During profitable months when there’s extra income, however, you can increase your spending on variable expenses for the long-term benefit of your business.
4. Set aside a contingency fund for unexpected costs
Whether or not you’ve run a business before, we all know that one-time costs don’t come when it’s convenient. It’s the day before you host your entire family for Thanksgiving and the refrigerator goes out. You’re on the way to the biggest presentation of your career and your car stalls.
These costs arise when you’re least expecting them, and usually when the budget is tight. Prevent fear of unexpected costs when budgeting for your business by making sure you have some extra cash on hand and plan for contingencies within your budget.
Although you might be tempted to spend any surplus of income on variable expenses, put some aside into an emergency fund instead. That way, you’ll be ready when equipment breaks down and needs replacing, or you need to quickly replace inventory that is damaged by flooding. Of course, there’s always the option for a small business loan — but more options are better than fewer.
We hope for every business owner that the maxim holds true: If you budget for a problem, the emergency never arises. And if the emergency does show up? Well, you’ve budgeted for it. It’s not really an emergency then, is it?
5. Create your profit and loss statement
Once you’ve collected all of the above information, it’s time to put it all together to create your profit and loss statement, or P&L.
Just talking about a P&L can bring up feelings of anxiety—we get it. But remember, you’ve already done all the work. And it’s addition and subtraction: Add up all of your income for the month and add up all of your expenses for the month. Then, subtract the expenses from the income and hope you get a positive number at the end.
If you do, you’ve made a profit! If not, that’s a loss — and that’s OK, too. Small businesses aren’t profitable every month , let alone every year. This is especially true when you’re just starting out as a business.
6. Outline your forward-looking business budget
Whether you’re a new business or you’ve been doing this a while, projecting what will happen to your business in the future is educated guesswork. If you’ve been in business for a while, that’ll certainly help the accuracy of those guesses (as you might, well, guess).
Now that you’ve created your P&L — which is a historical document showing the past of your business — it’s time to create your budget. And this is a forward-thinking, future-focused document .
For this step, referencing your P&L will help you better understand the seasonal ups and downs of your business, which investments in your business are worth repeating, and what you should avoid in the future.
On your P&L, look for these trends:
Big supply or equipment purchases that create a beneficial loss.
Seasonal trends due to inclement weather, natural disasters or economic turmoil.
Seasonal trends due to school calendars, tourist travel patterns or supply limitations.
Profit that is higher than in previous years or can’t be explained.
When examining your P&L, you’re looking for ways to explain the fluctuations and changes in your business.
For example, if you operate a popsicle stand, you’ll see higher profit in the summer when the temperatures are warm and kids are out of school. Knowing your most profitable months will help you to predict what your next year will look like. You might also take that information and decide to hire more staff and extend your hours during certain times of the year, making your business even more profitable in the months that demand is highest.
Making budgeting efficient
Most business owners didn’t get into the game to learn how to create a business budget, sure. So, how do you make budgeting efficient so you can get back to the best parts of business ownership? Easy.
Invest in accounting software to track income and expenses and automatically create your P&L statements. From Quickbooks to Xero , there's a host of solutions for you to choose from.
Hire an accountant you trust to help manage your budget, course correct when the business gets off track, and make sure you’re paying the necessary taxes.
Break the process of how to create a business budget down into small steps — managing a business budget is much easier when you do pieces of the work over time and tackle a little bit each day or every week.
Put procedures in place for budgeting that’ll help you know where to find the numbers you need, when expenses go out, and where the money you need is located.
There are very few business owners you’ll meet who love budgets, finances, and spreadsheets. That’s simply not why people get into business ownership. But budgeting is part of life when you own a business. So, knowing step by step how to create a business budget and manage it efficiently will make your job as a business owner just a little bit easier.
Get Access to ALL Templates & Editors for Just $2 a month.
- Google Docs
- Apple Pages
- Illustrator (AI)
- MS Publisher
- Vectors (EPS)
- Google Sheets
- Apple Numbers
- Power Point
- Backgrounds
- Coloring Pages
- Illustrations
- Video Online
How To Make/Create a White Paper [Templates + Examples] 2023
White papers are documents for different industries and organizations, profit or non-profit , to contain diverse and factual information on a specific subject or topic to guide or shed light on complex questions and queries. White papers exist to educate individuals and become advantageous for content marketing in providing information about products and services to generate leads.
Table of Content
Create a white paper template – step-by-step instructions, white paper templates & examples, social media marketing white paper template, creative software white paper template, data loss prevention white paper template, business plan white paper template, cyber security white paper template, step 1: browse for a white paper template (option 1), step 2: use the search bar to look for white paper templates (option 2), step 3: select a white paper template, step 4: develop a cover page for the document, step 5: construct an introduction, step 6: develop a background, step 7: propose solutions, step 8: generate a conclusion, step 9: compile an appendix.
How do you structure a white paper?
Does word have white paper templates, how long are white papers, more in documents.
Download Now: 200,000+ Templates... just at $24 a year
Beautifully Designed, Easily Editable Templates to Get your Work Done Faster & Smarter.
South Korean plan aims to heal Japan forced labour feud
South Korea took a step toward improving ties with historical rival Japan by announcing a plan Monday to raise domestic funds and avoid Japanese money to compensate Koreans who are still waiting to receive damages for slave labour during Tokyo's 35-year colonial rule.
The plan reflects conservative President Yoon Suk Yeol's determination to mend frayed ties with Japan and solidify security co-operation among Seoul, Tokyo and Washington to better cope with North Korea's nuclear threats.
U.S. President Joe Biden hailed the plan as new chapter of co-operation and partnership between two of the United States' closest allies and said he looked forward to enhancing trilateral ties. Yoon and Japanese Prime Minister Fumio Kishida "are taking a critical step to forge a future for the Korean and Japanese people that is safer, more secure, and more prosperous," Biden said in a statement.
The plan however drew immediate backlash from former forced labourers and their supporters. They demand direct compensation from the Japanese companies and a fresh apology from the Japanese government.
Ties between Seoul and Tokyo have long been complicated by grievances related to Japan's brutal rule of the Korean Peninsula from 1910 to 1945, when hundreds of thousands of Koreans were mobilized as forced labourers for Japanese companies, or sex slaves at Tokyo's military-run brothels during the Second World War.
Many forced labourers are already dead and survivors are in their 90s. Among the 15 victims involved in 2018 South Korean court rulings that ordered two Japanese companies -- Nippon Steel and Mitsubishi Heavy Industries -- to compensate them, only three are still alive.
South Korean Foreign Minister Park Jin told a televised news conference the victims would be compensated through a local state-run foundation that would be funded by civilian donations. He said South Korea and Japan were at a "new window of opportunity" to overcome their conflicts and build future-oriented relations.
"If we compare it to a glass of water, I think that the glass is more than half full with water. We expect that the glass will be further filled moving forward based on Japan's sincere response," Park said.
Park didn't elaborate on how the foundation would be financed. But in January, Shim Kyu-sun, chairperson of the Foundation for Victims of Forced Mobilization by Imperial Japan, which would be handling the reparations, said the funds would come from South Korean companies that benefited from a 1965 Seoul-Tokyo treaty that normalized their relations.
The 1965 accord was accompanied by hundreds of millions of dollars in economic aid and loans from Tokyo to Seoul that were used in development projects carried out by major South Korean companies, including POSCO, now a global steel giant. POSCO said Monday that it will actively consider a contribution to the foundation if it receives an official request.
Japan insists all wartime compensation issues were settled under the 1965 treaty, and retaliated for the South Korean court-ordered compensation from the Japanese companies by slapping export controls on chemicals vital to South Korea's semiconductor industry in 2019.
South Korea, then governed by Yoon's liberal predecessor Moon Jae-in, accused Japan of weaponizing trade and subsequently threatened to terminate a military intelligence-sharing agreement with Tokyo, a major symbol of their three-way security cooperation with Washington.
Their feuding complicated U.S. efforts to reinforce cooperation with its two key Asian allies in the face of confrontations with China and North Korea. Worries about their strained ties have grown in both South Korea and Japan, especially after North Korea last year adopted an escalatory nuclear doctrine and test-launched a barrage of missiles, some of them nuclear-capable that place both countries within striking distance.
During a parliamentary session on Monday, Kishida said he stands by Japan's previous expression of regrets and apologies over its colonial wrongdoing but said that the restoration of trade ties is a separate issue.
Japanese Foreign Minister Yoshimasa Hayashi told reporters that Japan "appreciates" the South Korean announcement as a step to restore good ties, but that it doesn't require contributions from the Japanese companies.
When asked about South Korea's failure to ensure that the Japanese companies participate in the compensation of forced labourers, Park, the foreign minister, said he doesn't expect Japan's government to block "voluntary donations" by its civil sector.
Later Monday, the South Korean and Japanese trade ministries simultaneously announced plans for talks to restore their trade relations. South Korea's Trade Ministry said it decided to suspend its dispute proceedings with the World Trade Organization over the Japanese trade curbs.
Former forced labourers, their supporters and liberal opposition lawmakers berated the government plan, calling it a diplomatic surrender. About 20-30 activists rallied near Seoul's Foreign Ministry, blowing horns and shouting slogans, "We condemn (the Yoon government)" and "Withdraw (the announcement)."
Lim Jae-sung, a lawyer for some of the plaintiffs, called the South Korean plan an "absolute win by Japan, which insists it cannot spend 1 yen" on forced labourers. He said lawyers will press ahead with steps aimed at liquidating the Japanese companies' assets in South Korea to secure the reparations.
The main liberal opposition Democratic Party called on Yoon to immediately stop what it called "a humiliating diplomacy" toward Japan and withdraw its plan.
The opposition to the government's announcement cast doubts on the prospects to end the disputes. When the Democratic Party led by Moon was in power, it took steps to dissolve a foundation funded by Japan to compensate Korean women forced to work as sex slaves during the Second World War because it didn't have the victims' consent.
Despite the backlash, Yoon has likely decided to press ahead with steps to ease the disputes with Japan to bolster the alliance with the United States because "there is no magic solution that can satisfy everyone," said Bong Young-shik, an expert at Seoul's Yonsei Institute for North Korean Studies. He said Yoon likely felt pressure to boost defense against North Korea's advancing missile threats.
Choi Eun-mi, a Japan expert at South Korea's Asan Institute for Policy Studies, said it has been obvious that a third-party reimbursement of forced labuorers was the only realistic solution for South Korea because there are "fundamental" disagreements with Japan over the 2018 court rulings.
"One might say that the government hurried toward a solution, but the negotiations have been going on for nearly a year and the plaintiffs would have had most to lose if the issue isn't resolved now," Choi said.
Associated Press writer Mari Yamaguchi in Tokyo contributed to this report
MORE Business News
Malls could turn empty nordstrom stores into residential units, says one expert.
EU head says Canada should focus on exporting clean hydrogen ahead of Ontario visit
European police, FBI bust international cybercrime gang
Canadians fell for more home improvement scams in 2022, new report finds
Wall Street holds steady ahead of a potentially big week
Amazon closing some of its U.S. cashier-free stores
'Ripple effects:' Yellowknife sporting clubs on time out during labour dispute
Chinese planners promise 12 million jobs, economic rebound
YOUR FINANCES
Opinion | these are the new tax brackets for 2023.
There are going to be some changes to Canada's tax brackets as we move into 2023. These changes could impact how you’re taxed when you file your 2023 income tax returns next year.
Canadian food bloggers share tips, tricks to make filling budget-friendly meals
Food bloggers and cookbook authors say meal-planning and simple recipes can help home cooks put together filling and tasty dishes on a budget -- an increasingly stressful challenge amid rising food prices.
The Better Business Bureau says Canadians fell for home improvement scams the most in 2022, in a report highlighting the riskiest scams and how much money they cost Canadians.
'Not every sale is a bargain': How to avoid common money mistakes
In light of new poll results that found Canadians are spending a lot of time worrying about money, one personal finance expert shares some simple tips to help Canadians avoid making some common, costly mistakes with their cash.
Opinion | Does buying an electric vehicle make financial sense?
While there are many benefits to electric cars, the question of whether they are a good financial choice in Canada is still up in the air, personal finance contributor Christopher Liew explains on CTVNews.ca.
opinion | Is cryptocurrency a good investment?
The recent upturn in cryptocurrencies has inspired many to reconsider investing. But is it really a good idea? In a column on CTVNews.ca, personal finance contributor Christopher Liew explores some of the pros and cons so that you can make an informed choice.
opinion | Before you do your taxes, take note of these tax credits and deductions you may not have known about
Many Canadians are experiencing strains caused by the increased cost of living and inflation. In his exclusive column for CTVNews.ca, contributor Christopher Liew shares some of the top credits and deductions that you may be able to claim on your income tax return to help you save money.
opinion | How much rent can you afford?
Many Canadians have continued to see an increase in their rental rates in 2023. In an column on CTVNews.ca, personal finance contributor Christopher Liew explains how to calculate how much rent you can afford.
- The Star ePaper
- Subscriptions
- Manage Profile
- Change Password
- Manage Logins
- Manage Subscription
- Transaction History
- Manage Billing Info
- Manage For You
- Manage Bookmarks
- Package & Pricing
Govt to announce steps toward sustainable agriculture in July
- Plantations
Tuesday, 07 Mar 2023
Related News
At least 10 local companies studying participation in Indonesia's Nusantara project, says Anwar
Bursa malaysia ends higher on bargain hunting, market participants must be prepared to capitalise on price volatility - bursa malaysia.
Datuk Seri Fadillah Yusof
KUALA LUMPUR: The government through the Plantation and Commodities Ministry is currently developing a National Biomass Action Plan that would involve five sectors: plantation, agriculture, livestock, fisheries and forestry.
This plan is expected to be completed and announced in July 2023, said the deputy prime minister Datuk Seri Fadillah Yusof who is also the Plantations and Commodities Minister.
“My aspiration is to have a sustainable circular economy within these sectors by the systematic use and processing of biomass into high-value-added products which can generate additional income to the industry as a whole,” he said in his speech at the Palm Lauric Oil Conference and Exhibition 2023.
“One of the high-impact projects that will be embarked on by the MPOB within the 12th Malaysia Plan will be the production of lignocellulose from biomass that can be utilised in various sectors such as food, pharmaceutical and cosmetic industries. I hope my Ministry together with Bursa Malaysia and the relevant agencies will continue the collaboration in this endeavor,” he added.
Tags / Keywords: National Biomass Action Plan , Sustainable , Agriculture , Fadillah Yusof , MPOB
Found a mistake in this article?
Report it to us.
Thank you for your report!
MERDEKA 118: WORKPLACE OF THE FUTURE
Next in business news.
Trending in Business
Stories you'll enjoy, others also read.
Best viewed on Chrome browsers.
{{item['V1 Header']}} {{item['V1 Body']}} {{item['V2 Header']}}
We would love to keep you posted on the latest promotion. Kindly fill the form below
Thank you for downloading.
We hope you enjoy this feature!
trending:
- Russia-Ukraine war
- Social Security
- Donald Trump
sponsored:
- Content from IASIC
- Hoda Kotb makes tearful return to ‘Today’ after daughter’s ICU stay Media - 2h 49m ago
- Zelensky pledges to ‘find the murderers’ of Ukrainian soldier executed in grisly video International - 3h 29m ago
- Tucker Carlson shows the first of his Jan. 6 footage, calls it ‘mostly peaceful chaos’ Media - 3h 58m ago
- Larry Summers: US economy could face a ‘Wile E. Coyote moment’ Business - 4h 27m ago
- White House weighs mass poultry vaccination amid bird flu outbreak Administration - 4h 43m ago
- White House mulls return to migrant family detention: report Administration - 5h 15m ago
- Florida street named after Ketanji Brown Jackson: ‘This is where I got my start’ State Watch - 5h 30m ago
- Some in Congress are forgetting the lingering health issues from the 9/11 attacks Congress Blog - 5h 51m ago
Biden administration to take steps toward challenging Mexico corn ban
The Biden administration is preparing to challenge the Mexican ban on shipments of genetically modified corn from the U.S., a policy that has threatened billions of dollars in economic activity for American farmers.
The Mexican government is planning by next year to stop its imports of genetically modified corn, which makes up about 90 percent of what is grown in the U.S. The Biden administration said on Monday that it was requesting formal consultations with Mexico over the policy.
“Mexico’s policies threaten to disrupt billions of dollars in agricultural trade and they will stifle the innovation that is necessary to tackle the climate crisis and food security challenges if left unaddressed,” U.S. Trade Representative Katherine Tai said in a statement. “We hope these consultations will be productive as we continue to work with Mexico to address these issues.”
Tai’s office said it was requesting talks with Mexico under the terms of the United States–Mexico–Canada Agreement (USMCA) trade pact. The official request comes after previous conversations between Tai and Mexican representatives in recent months.
Officials now have 30 days to discuss and resolve the issue, with the Biden administration saying it would “consider all options, including taking formal steps to enforce U.S. rights under the USMCA,” which could include tariffs on Mexican goods.
Mexican health officials are apprehensive of genetically modified corn, hesitancy that the scientific community and U.S. industry have pushed back against.
Mexico bought $4.2 billion worth of corn from the U.S. in 2022, according to data from the U.S. Department of Agriculture, making it the second-largest market for U.S. corn in the world, trailing only China and ahead of Canada.
More Business News
- Larry Summers: US economy could face a ‘Wile E. Coyote moment’
White House weighs mass poultry vaccination amid bird flu outbreak
Dot releases dashboard showing which airlines let families sit together at no extra charge, bipartisan group revives push targeting ‘wasteful’ government spending , video/hill.tv, see all hill.tv, see all video, rising: march 6, 2023, rising: march 5, 2023, rising: march 4, 2023, top stories.
- What’s at stake as Ukraine clings onto Bakhmut
Tucker Carlson shows the first of his Jan. 6 footage, calls it ‘mostly peaceful chaos’
- The Memo: DeSantis finds foil in California
Pence asks judge to block special counsel’s Jan. 6 subpoena
Most popular.
- Tucker Carlson shows the first of his Jan. 6 footage, calls it ‘mostly ...
- Newsom says California will no longer do business with Walgreens
- ‘Horrifying’ flight diverted as some passengers vomit in 9-hour ...
- Trump blasts Rupert Murdoch in early morning social media post: How can he say ...
- Zelensky pledges to ‘find the murderers’ of Ukrainian soldier executed in ...
- Three things to know about what critics are calling Mississippi’s ‘Jim ...
- Social Security, Medicare clash comes down to what constitutes a ‘cut’
- Texas lawmaker files ‘TEXIT’ bill to spur vote on exploring secession from ...
- Supreme Court declines to hear Florida city’s challenge to atheists
- Bipartisan rail safety bill runs into Republican roadblock
- Michelle Obama hits Trump over his inauguration: ‘There weren’t that many ...
- Fetterman photographed at Walter Reed amid clinical depression recovery
- Jordan issues subpoenas over school boards memo, DHS disinformation board
- Wagner chief warns of collapse of Russian front line if there is retreat from ...
- Twitter discloses another possible government censorship effort
Watch live: White House monkeypox response team holds briefing
IMAGES
VIDEO
COMMENTS
Here are the 7 steps to write a business plan: Executive summary Products & services Market analysis Marketing & sales Company organization and management team Financial projections Appendix Be sure to download our free business plan template to start writing your own business plan as you work through this guide.
Learn about the best business plan software. 1. Write an executive summary This is the first page of your business plan. Think of it as your elevator pitch. It should include a mission...
Create a Company Description Brainstorm Your Business Goals Describe Your Services or Products Conduct Market Research Create Financial Plans Bottom Line Frequently Asked Questions Show more...
Create Your Business Plan 4. Choose Your Business Structure 5. Register Your Business and Get Licenses 6. Get Your Finances in Order 7. Fund Your Business 8. Apply for Business...
Always include a description of your future strategic financial plans, like paying off debt or selling your business. Financial projections Supplement your funding request with financial projections. Your goal is to convince the reader that your business is stable and will be a financial success.
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.
Build Your Business Plan tool. Use the checklist to measure where you are in the process of collecting the necessary material. As you progress, refer to the Build Your Business Plan tool for additional business plan writing support as needed. Let's begin charting your path to writing your business plan! Note: Checkpoints in . italicized bold
9 Steps to Writing a Business Plan (With 2 Templates) Start of main content Using Indeed Recruiting & Hiring Workforce Management Managing your Business Job Descriptions Using Indeed Recruiting & Hiring Workforce Management Managing your Business Job Descriptions More 9 Steps to Writing a Business Plan (With 2 Templates)
Step 5: Revise and restructure as needed. At this point, you should have created and implemented your new strategic framework. The final step of the planning process is to monitor and manage your plan. Share your strategic plan —this isn't a document to hide away.
Our expert presenter will show you each element of the one-page business plan, including identifying the problem your business solves, your value proposition, your target audience and much more. You'll learn the following: The benefits of a one-page business plan vs other business plans; Practical tips on writing a one-page business plan
The business plan process includes 6 steps as follows: Do Your Research Strategize Calculate Your Financial Forecast Draft Your Plan Revise & Proofread Nail the Business Plan Presentation We've provided more detail for each of these key steps below. 1. Do Your Research
10 steps to start your business Starting a business involves planning, making key financial decisions, and completing a series of legal activities. Scroll down to learn about each step. Back to all topics 1 Conduct market research Market research will tell you if there's an opportunity to turn your idea into a successful business.
A business plan conveys what the new company needs and convinces others to help fund its growth. For banks, lenders or investors, the business plan shows them the who, what and how of the business operations. Then it communicates why the new business is a solid investment. 2. Established Firm
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.
Even better, if you're pressed for time, we've compiled the 10 steps and examples into a downloadable (PDF) template. The 10 steps to write a business plan are: Create an executive summary. Compose your company description. Summarize market research and potential. Conduct competitive analysis.
But guess what? Creating a content schedule doesn't have to be super difficult or overwhelming. Click on the button below to get your FREE assessment on how to create your profitable lifestyle ...
By following these steps, you'll be on your way to running a thriving business that caters to your clients' desires. Here are the steps to follow: Conduct Market Research. Create a Business Plan. Secure Financing. Choose a Location and Design the Bar. Obtain Licenses and Permits. Hire and Train Staff. Promote Your Bar.
Here are eight steps to creating a great business plan. 1. Set aside plenty of time to prepare Every entrepreneur is excited when first conceiving of a new business. Some entrepreneurs rush the planning process in all that excitement, which is a mistake. Take the time you need to write a high quality plan.
Step 7: Financial Analysis and Projections. It doesn't matter if you include a request for funding in your plan, you will want to include a financial analysis here. You'll want to do two things here: Paint a picture of your business's performance in the past and show it will grow in the future.
But these 10 steps will help you create the perfect business plan. 1. The executive summary. This is where you describe your company and the product or service that it will sell. This must be brief, to catch and hold people's attention. Try to describe the goal and mission of your business in just a couple of sentences.
Developing your marketing plan - Crafting a plan to communicate your marketing message. Marketing your business with social media - What you need to know to use social media effectively. Pricing your product or service - Learning to properly price your product for business success. Copy of the recording and materials will be sent to all attendees.
But rather than being overwhelmed by all the decisions and tasks you have at hand, there are steps you can take to kickstart the development of your business. Let's get started. 1. Determine if entrepreneurship is what you want Before diving into the details of your potential business, it's best to take stock of yourself and your situation.
If you've never been traveling for business before and expect to start, start exploring airline, hotel and rental car membership programs. Also, research a credit card that gives you extra points...
1. Examine your revenue. The first step in any budgeting exercise is to look backward at your existing business and find all of your revenue (aka income) sources. Add all those income sources ...
Business plan white paper documents are ideal for startup businesses, helping them with a budget and developing their brand for the public market. Cyber Security White Paper Template. Cyber security white paper helps users to understand the problem they frequently encounter in the organization, the steps to mitigate the situation, and the ...
South Korea took a step toward improving ties with historical rival Japan by announcing a plan Monday to raise domestic funds and avoid Japanese money to compensate Koreans who are still waiting ...
Datuk Seri Fadillah Yusof. KUALA LUMPUR: The government through the Plantation and Commodities Ministry is currently developing a National Biomass Action Plan that would involve five sectors ...
Corn waits to be harvested on land leased by Tempe Farming Co. Thursday, July 22, 2021, in Casa Grande, Ariz. The Biden administration is preparing to challenge the Mexican ban on shipments of ...