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Writing a Business Growth Plan

Look ahead and plan for business growth and revenue increases.

Table of Contents

When you run a business, it’s easy to get caught in the moment and focus only on the day in front of you. However, to be truly successful, you must look ahead and plan for growth. Many business owners create a business growth plan to map out the next one or two years and pinpoint how and when revenues will increase. 

We’ll explain more about business growth plans and share strategies for writing a business growth plan that can set you on a path to success. 

What is a business growth plan?

A business growth plan outlines where a company sees itself in the next one to two years. Business owners and leaders apply a growth mindset to create plans for expansion and increased revenues.

Business growth plans should be formatted quarterly. At the end of each quarter, the company can review the business goals it achieved and missed during that period. At this point, management can revise the business growth plan to reflect the current market standing.

What to include in a business growth plan

A business growth plan focuses specifically on expansion and how you’ll achieve it. Creating a useful plan takes time, but keeping your growth efforts on track can pay off substantially.

You should include the following elements in your growth plan:

• A description of expansion opportunities
• Financial goals broken down by quarter and year
• A marketing plan that details how you’ll achieve growth
• A financial plan to determine what capital is accessible during growth
• A breakdown of your company’s staffing needs and responsibilities

How to write a business growth plan

To successfully write a business growth plan, you must do some forward-thinking and research. Here are some key steps to follow when writing your business growth plan.

1. Think ahead.

The future is always unpredictable. However, if you study your target market, your competition and your company’s past growth, you can plan for future expansion. The Small Business Administration (SBA) features a comprehensive guide to writing a business plan for growth.

2. Study other growth plans.

Before you start writing, review models from successful companies.

3. Discover opportunities for growth.

With some homework, you can determine if your expansion opportunities lie in creating new products , adding more services, targeting a new market, opening new business locations or going global, to name a few examples. Once you’ve identified your best options for growth, include them in your plan.

4. Evaluate your team.

Your plan should include an assessment of your employees and a look at staffing requirements to meet your growth objectives. By assessing your own skills and those of your employees, you can determine how much growth can be accomplished with your present team. You’ll also know when to ramp up the hiring process and what skill sets to look for in those new hires.

5. Find the capital.

Include detailed information on how you will fund expansion. Business.gov offers a guide on how to prepare funding requests and how to connect with SBA lenders.

6. Get the word out.

Growing your business requires a targeted marketing effort. Be sure to outline how you will effectively market your business to encourage growth and how your marketing efforts will evolve as you grow.

7. Ask for help.

Advice from other business owners who have enjoyed successful growth can be the ultimate tool in writing your growth plan.

8. Start writing.

Business plan software has streamlined the process of writing growth plans by providing templates you can fill in with information specific to your company and industry. Most software programs are geared toward general business plans; however, you can easily modify them to create a plan that focuses on growth. 

If you don’t have business plan software, don’t worry. You can create a business growth plan using Microsoft Word, Google Docs or a similar tool. For each growth opportunity, create the following sections: 

• What is the opportunity? Is your growth opportunity a new geographic expansion, a new product or a new customer segment? How do you know there’s an opportunity? Include your market research to demonstrate the idea’s viability.
• What factors make this opportunity valuable at this time? For example, your growth opportunity could utilize new technology, take advantage of a strategic partnership or capitalize on a consumer trend.
• What are the risk factors for this opportunity? Identify factors that may make this growth opportunity challenging to execute. For example, challenges may include the state of the overall economy, intense competition or supply chain distribution issues. What is your plan for dealing with these challenges?
• What is your marketing and sales plan? Identify the marketing efforts and sales processes that can help you seize this growth opportunity. Detail the marketing channel you’ll use ( social media marketing , print marketing), your message and promising sales ideas. For example, you could hire sales reps for a new geographic area or set up distribution deals with relevant brick-and-mortar or online retailers .
• What are the costs involved in this growth area? For example, if you add a new product, you may need to buy new manufacturing equipment and raw materials. While marketing costs are a given, remember to include incremental sales costs like commissions. Outline any economies of scale or places where your existing operations make the new growth area less expensive than a stand-alone initiative.
• How will your income, expenses and cash flow look? Project your income and expenses, and prepare a cash flow statement for the new growth area for the next three to five years. Include a break-even analysis, a sales forecast and all projected expenses to see how much the new initiative will add to the bottom line. Include how the new growth area will positively (or negatively) impact existing sales. For example, if you sell bathing suits and you decide to grow by adding cover-ups and sunglasses, you will likely sell more bathing suits. 

After completing this exercise for each growth opportunity:

• Create a summary that accounts for all growth areas for the period.
• Include summarized financial statements to see the entire picture and its impact on the company. 
• Evaluate the financing you’ll need to implement the plan, and include various options and rates. 

Why are business growth plans important?

These are some of the many reasons why business growth plans are essential:

• Market share and penetration: If your market share remains constant in a world where costs consistently increase, you’ll inevitably start recording losses instead of profits. Business growth plans help you avoid this scenario.
• Recouping early losses: Most companies lose far more than they earn in their early years. To recoup these losses, you’ll need to grow your company to a point where it can make enough revenue to pay off your debts.
• Future risk minimization: Growth plans also matter for established businesses. These companies can always stand to make their sales more efficient and become more liquid. Liquidity can come in handy if you need money to cover unexpected problems.
• Appealing to investors: For most businesses, a business growth plan’s primary purpose is to find investors . Investors want to outline your company’s plans to build sales in the coming months.
• Concrete revenue plans: Growth plans are customizable to each business and don’t have to follow a set template. However, all business growth plans must focus heavily on revenue. The plan should answer a simple question: How does your company plan to make money each quarter?

What factors impact business growth?

Consider the following crucial factors that can impact business growth:

• Leadership: To achieve your goals, you must know the ins and outs of your business processes and how external forces impact them. Without this knowledge, you can’t direct and train your team to drive your revenue, and you will experience stagnation instead of growth.
• Management: As a small business owner, you’re innately involved in management – obtaining funding, resources, and physical and digital infrastructure. Ineffective management will impact your ability to perform these duties and could hamstring your growth.
• Customer loyalty: Acquiring new customers can be five times as expensive as retaining current ones, and a 5 percent boost in customer retention can increase profits by 25 percent to 95 percent. These statistics demonstrate that customer loyalty is fundamental to business growth.

What are the four major growth strategies?

There are countless growth strategies for businesses, but only four primary types. With these growth strategies, you can determine how to build on your brand.

• Market strategy: A market strategy refers to how you plan to penetrate your target audience . This strategy isn’t intended for entering a new market or creating new products and services to boost your market share; it’s about leveraging your current offerings. For instance, can you adjust your pricing? Should you launch a new marketing campaign?
• Development strategy: This strategy means looking into ways to break your products and services into a new market. If you can’t find the growth you want in the current market, a goal could be to expand to a new market.
• Product strategy: Also known as “product development,” this strategy focuses on what new products and services you can target to your current market. How can you grow your business without entering new markets? What are your customers asking for?
• Diversification strategy: Diversification means expanding both your products and target markets. This strategy is usually best for smaller companies that have the means to be versatile with the products or services they offer and what new markets they attempt to penetrate.

Max Freedman contributed to this article.

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10 Business Growth Strategies + Successful Examples

Casey O'Connor

What Is a Business Growth Strategy?

How to develop a business growth strategy, 10 business growth strategies explained, examples of successful growth strategies, tips for business growth in 2023.

All businesses, regardless of size or industry, hope to achieve growth in their lifetime. 

The specific intended outcomes of business growth goals will vary depending on the size of your company, its strengths and needs, and its position in the market. 

Unfortunately, although all businesses aim to grow, only 25% of them make it to 15 years of operation. Effective methods and strategies must be executed correctly in order to expand; this is where business growth strategies come into play.

A business growth strategy is a framework of the actions a business will take to meet their growth goals, and can help your organization achieve them for scalable success. 

In this article, we’ll go over everything you need to know about business growth strategies, including what they are, how to develop one, and ten of the most effective ones available for businesses today. 

Here’s what we’ll cover:

• How to Develop a Business Growth Strategy 

A business growth strategy is an outline of the methods, tactics, and specific actions an organization will use to meet business goals. 

Business growth strategies can help businesses achieve a variety of different goals. 

Some business growth strategies are focused on revenue, while others prioritize the size of the customer base. 

Some business growth strategies are all about increasing an organization’s physical presence (opening a new store location, for example), while others are about developing new products or marketing to new audiences. 

A business growth strategy is basically an action plan, based on relevant market research, that explains exactly how your business will grow. It’s designed to help businesses capture more market share.

The specifics of your business growth strategy will depend on the unique needs of your business.

That being said, the process of developing the framework for new business growth strategies is more or less the same each time. 

1. Perform Market Research

Solid business growth strategies are always based on recent and relevant market data. 

Thorough market research will give you insight into current and potential customer preferences, industry trends, and your company’s position in the market relative to its competitors. 

It’s extremely important to get the lay of the land, so to speak, before you design your business growth strategy. Effective business growth goals need to be created using context from the overall market.

2. Establish Goals

You can’t have a business growth strategy without concrete goals. 

In the beginning, try to plan short-term goals. Your business growth strategies should be focused on month-long or quarter-long periods as you get started. This will enable your team to go through the goal-setting and strategy-planning process quickly and frequently.

3. Identify Your Growth Strategy

There are a number of different specific growth strategies for your team to consider that may meet your growth needs. The growth strategy you choose will ultimately depend on your organization’s budget, opportunities, competition , and goals. 

We’ll go over some of the most effective business growth strategies in the next section of this article. 

4. Map Out Your Execution Plan

Once the high-level planning is complete, it’s time to outline the exact actions your team will take to meet your growth goals. 

5. Create a Forecast

6. Monitor, Measure, and Optimize

Once you start executing your business growth strategy, you need to monitor its progress in real-time. 

Make sure you’re measuring your activities and their results at regular intervals, and follow a standardized process for tracking and analyzing data.

Tip: Ensure you have the right tools in place to ensure growth with our free blueprint below.

Following are 10 of the most effective and common business growth strategies. 

1. Market Penetration

A market penetration strategy is designed to help your organization increase its market share. The goal is to sell more of an existing product in an existing market.

One way to achieve a market penetration strategy is by lowering prices or offering promotions and discounts. 

Market penetration is a particularly effective strategy for SMB businesses because it is low-risk. 

Other effective tactics in a market penetration strategy include:

• Discounts for bulk/volume purchases
• Increase the number of distributors/dealers you work with 
• Offer free trials
• Direct marketing 

The bottom line is to sell more of your product in your existing market. In a market penetration strategy, the company is aiming to reach the maximum number of customers in the market until it becomes saturated.

2. Market Development

A market development strategy is all about selling existing products to new markets. This business growth strategy is aimed at growing the customer base. It works well for companies who are still working to find their position in a strong existing market. 

Market development relies on astute and thorough market research. Succeeding with this strategy is about more than just beating out your direct competitors. You may need to explore new geography, new customer segments, or new channels. Franchising is also a good option for certain industries.

Market development can be very lucrative; most companies achieve the most profitable growth when they’re able to move into an adjacent target market.

3. Product Expansion 

A product expansion business growth strategy relies on the creation of new products and services. These new offerings help your organization increase their market share. 

Many teams get creative with a product expansion strategy. It doesn’t always mean that you need to create brand-new products. You could also add updates to existing products, or add new varieties. You could also create bundles of existing products. 

Market research and marketing strategy analysis will help you determine the market needs and how you can most effectively tweak your offerings to meet those needs. 

4. Acquisition

Most people are very familiar with acquisitions. An acquisition is a business occurrence in which one company purchases another company. 

Acquisitions are sometimes lumped together with mergers, but the two are actually slightly different concepts. In an acquisition, one company takes over another one. In a merger, two companies join together. 

Acquisitions can be extremely profitable, but they require a lot of capital upfront, healthy cash flow, and significant debt capacity. For those reasons, acquisitions are usually completed by mature companies. 

If your organization can manage the expenses, though, they’re a great business growth strategy. Acquisitions reduce competition, give you access to proprietary technology, and expand your customer base.

5. Alternative Channels

One cost-effective business growth strategy is marketing on alternative channels. 

This strategy allows you to potentially reach new markets without creating any product changes. Exploring alternative channels is a very popular business growth strategy for small businesses who are just getting off the ground.

Consider the following alternative channels as you grow your business: 

• Website presence
• Yelp business page
• New platforms for sales, like Amazon, eBay, or Etsy
• Paid search ads
• Wholesalers
• Email marketing
• Social media (Facebook, Twitter, LinkedIn, Instagram)
• Business blog 

Omnichannel marketing is growing in popularity and is a very effective way to meet sales goals in the 21st century.

6. Strategic Partnerships

In a strategic partnership, two companies join forces for mutual benefit, while each still maintaining their own brand identity and operations. 

Partnerships allow each company to access the other’s customer base. It also allows for the shared use of critical resources like manpower, equipment, and technology. 

Because there’s less at stake, partnerships are more common than mergers or acquisitions.

7. Market Segmentation

With a market segmentation growth strategy, sales and marketing teams work to carefully segment their markets based on factors such as geography, demographics, or buying preferences. 

This highly-targeted segmentation allows sales teams to focus on and specialize in segments that are less explored than others already served by the competition. 

8. Organic Growth

The most ideal business growth strategy is known as organic growth. 

Organic growth requires little to no advertising, mergers, or acquisitions, and instead represents an optimized set of conditions that allow your marketing campaigns and products to reach many parts of your target audience without much effort on your part. 

9. Diversification

This type of business growth strategy can be risky, but also has a high return when executed correctly. 

Diversification means that sales teams sell either new products, or sell to new markets — or, in some cases, both. 

• Horizontal diversification: sales reps sell a new product to the current market.
• Vertical diversification: a business starts competing with its suppliers or customers. 
• Concentric diversification: a company creates a new product that’s similar to an existing product.
• Conglomerate diversification:  sales reps sell new products to new audiences.

Diversification requires a lot of capital and has the highest risk of failure out of all of the business growth strategies outlined in this article.

10. Cost Reduction

A cost reduction business growth strategy relies on organizations to reduce their operating costs. This frees up cash for reinvestment into growth opportunities and improves your overall bottom line.

Here are some strategies for implementing a cost reduction strategy: 

• Use accounting software to reduce or eliminate errors
• Go paperless
• Consider automation and/or outsourcing where possible
• Reduce traditional advertising methods and go digital instead

There is no one-size-fits-all when it comes to business growth strategies. You may find that several could fit the needs of your team, or that your needs change over time. It’s perfectly okay to use a variety of strategies over time — or even simultaneously.

Every brand with even an inkling of name recognition has successfully used a business growth strategy. Here’s a look at how some of the world’s most well-known companies have used popular business growth strategies to succeed.

Market Penetration: Facebook

When Mark Zuckerberg launched Facebook, he shared the platform with only his fellow Harvard students. He later opened it up to Stanford, Yale, and Columbia. Later, again, he went on to share it among all the Ivy League schools, and some select Boston ones as well.

This is a perfect example of market penetration. Zuckerberg took his existing product and maximized the number of customers he “sold” it to within his market.

Strategic Partnership: Lyft & Taco Bell

Lyft & Taco Bell joined forces for one of the most memorable (and delicious) strategic partnerships in pop culture history. 

During the partnership, Lyft offered riders free access to “Taco Mode,” during which passengers could make a pit stop at Taco Bell on the way to their destination. This drove sales up for Taco Bell, and drew hungry customers away from competitor Uber and into the backseat of a Lyft.

Diversification: Amazon

It’s a well-known fact that the online retailer Amazon started as a books-only e-commerce platform. 

Over time, the company expanded to sell toys, DVDs, music, furniture, and — eventually — just about anything you could ever want. 

This is a textbook example of a diversification business growth strategy.

Here are some of our best tips for business growth in 2023. 

Carefully Consider and Combine Strategies

There are many more than the ten business growth strategies outlined here in this article, and each one has advantages and drawbacks. 

Take time — and even trial and error — discover which meets the needs of your specific business goals at any given time. 

In many cases, it’s also appropriate to use more than one business growth strategy at the same time. 

Understand Your Brand Identity 

In order for your business to grow, you need to have a very nuanced and thorough understanding of your brand, its identity, and its position in the market. 

Your business’s strengths, differentiating factors, unique selling points (USPs) , and core competencies will all help your business grow in a sustainable way.

Be Ready to Pivot

Successful and scalable business growth requires flexibility. 

Business growth strategies are great because they help sales and marketing teams stick to a plan, but they also allow teams to monitor progress and adapt strategies as needed. 

The most successful businesses are the ones that keep a careful pulse on their business progress and are ready to make changes as needed. 

Automate Everything 

Truly scalable growth requires capable systems running behind the scenes. 

Sales reps can’t afford to waste time entering data, manually setting appointments, and collating buyer insights into something actionable. 

Sales software like Yesware can help reps save time by automating administrative tasks, so they can focus on revenue-generating sales activities. 

What business growth strategies have been successful for your business?

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Growth Tactics

Creating an Effective Business Growth Plan

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As a business leader, you understand the importance of continually striving for growth and development in your enterprise. A carefully crafted growth plan can help you achieve your goals by outlining specific strategies and action plans to ensure that your company continues to thrive. In this article, we’ll explore the key components of an effective growth plan for your business and offer practical advice to help you create a roadmap to success.

What is a Growth Plan and Why Do You Need One?

A growth plan is a document that outlines the strategies and tactics that a business will use to achieve and sustain growth over a specified period. This plan should include a clear vision statement, measurable goals , and a detailed description of the strategies, action plans, and key performance indicators (KPIs) that will drive business growth. A growth plan can help you set goals and targets, identify potential challenges and opportunities, and ensure that all stakeholders are aligned with your vision. Furthermore, having a growth plan can help ensure the longevity of your business by providing a roadmap for success.

Factors Impacting Business Growth

Several factors can have a significant impact on the growth of a business. It is essential for business leaders and managers to identify and understand these factors in order to navigate the path to success. Let’s explore some key factors that influence business growth:

1. Economic Conditions

The overall health of the economy can greatly affect business growth. During periods of economic prosperity, with increased consumer spending and confidence, businesses tend to experience growth opportunities. Conversely, during economic downturns or recessions , consumer spending may decline, leading to challenges for businesses.

2. Market Demand and Competitiveness

The demand for a product or service has a direct impact on business growth. Assessing the market demand for your offerings, understanding consumer preferences, and identifying any gaps that your business can fill are crucial steps. Additionally, businesses need to evaluate the competitive landscape, including the presence of established competitors, barriers to entry, and emerging trends, in order to position themselves for growth.

3. Innovation and Technology

Keeping up with technological advancements and embracing innovation is essential for sustaining growth. Businesses that invest in research and development, adopt new technologies, and stay ahead of industry trends are often better positioned for growth. Innovation can lead to improved efficiency, enhanced product offerings, and increased customer satisfaction, all of which can drive business growth.

4. Financial Resources

Access to financial resources, such as capital for investment and working capital, is vital for business growth. Adequate funding allows businesses to expand operations, invest in marketing and advertising, develop new products or services, and hire additional staff. Businesses need to assess their financial capabilities and explore funding options to support their growth strategies.

5. Human Capital

The skills, knowledge, and expertise of the workforce are critical for driving business growth. Hiring and retaining talented employees who are aligned with the organization’s goals and values is essential. Businesses that invest in training and development programs, foster a positive work culture , and empower their employees are more likely to experience sustainable growth.

6. Regulatory Environment

The regulatory environment in which a business operates can impact growth opportunities. Compliance with industry-specific regulations, government policies, and legal requirements is crucial to avoid penalties and maintain credibility. Understanding and navigating the regulatory landscape allows businesses to identify potential obstacles and take necessary measures for growth.

7. Customer Satisfaction and Retention

Customer satisfaction and retention play a significant role in business growth. Satisfied customers are more likely to become repeat customers, refer others to the business, and contribute to its growth. Businesses need to focus on providing exceptional customer experiences, delivering quality products or services, and maintaining strong customer relationships to foster loyalty and drive growth.

These factors are just some of the many elements that influence business growth. By actively assessing and addressing these factors, businesses can create strategies and make informed decisions that contribute to their long-term success and expansion.

How to Develop a Growth Plan for Your Business

Developing a growth plan for your business is a crucial aspect of achieving long-term success. To create an effective growth plan, follow these steps:

Step 1: Define Your Growth Goals and Objectives

The first step in creating an effective growth plan is to define your goals and objectives. Think about where you want your business to be in three, five, or ten years and develop specific and measurable goals that will help you achieve your vision.

Step 2: Understand Your Business Needs

In order to create a growth plan that works for your business, you need to understand its needs. Consider the following questions:

• What are your business goals?
• Who is your target market?
• What products or services do you offer?
• What are your current strengths and weaknesses?
• What are the potential growth opportunities for your business?

Answering these questions will help you identify specific areas of your business that require additional attention and focus, and help you create a growth plan that addresses them.

Step 3: Develop a Strategy for Growth

Once you have defined your goals and identified the needs of your business, the next step is to develop a strategy for growth. Consider the following:

• What strategies and tactics will best help you achieve your growth goals?
• What internal resources or external partnerships will you need to execute your plan?
• What role will new products or services play in your growth strategy?
• Are there any particular areas of your business that you want to focus on developing?
• How will you measure success and ensure that your strategy is working?

Developing an effective growth strategy requires careful planning and consideration of various factors that can impact your business.

Step 4: Establish an Action Plan

With your growth goals defined, business needs understood, and a strategy created, the next step is to establish an action plan. This plan should outline specific initiatives that will help you achieve your growth targets, including timelines, milestones, resource commitments, and key performance indicators.

Step 5: Monitor and Adjust Your Plan

Developing a successful growth plan requires ongoing monitoring and adjustment to ensure that you remain on track and continue to grow. Regularly review your progress against your KPIs and take corrective action as needed to keep your business moving forward.

Tips for Creating an Effective Growth Plan

When it comes to business growth, creating an effective plan is crucial to achieving your goals and moving your organization forward. Here are some tips to help you create a growth plan that will work for your company:

Set Realistic Goals

It’s important to set goals that are achievable but also challenging. Make sure you consider your current business situation and resources, as well as your desired outcomes when setting your targets.

Understand Your Market

Your target market plays an essential role in your business growth. Ensure you have a deep understanding of your customer’s needs, their pain points, and the challenges they are facing.

Consider All Growth Strategies

Exploring diverse growth strategies can help you expand your business, reach new customers, and diversify your offerings. This could include everything from developing new products and services, expanding into new markets, or improving your operations and processes .

Focus on the Long-term

While short-term objectives are vital for any business, it’s equally critical to have long-term goals in mind. This ensures that you develop a roadmap to move toward your vision and don’t get sidetracked by short-term wins.

Foster an Organizational Culture of Growth

Building this culture starts from the top and should be reflected throughout your organization. Encourage staff to be innovative , take calculated risks, and capitalize on new opportunities and ideas to drive growth forward.

Identify Key Performance Indicators (KPIs)

To effectively measure your progress toward your growth goals, it is important to identify and track Key Performance Indicators (KPIs). These indicators can include metrics such as revenue growth, customer acquisition rate, customer satisfaction, market share, or any other relevant metrics specific to your business. Regularly monitoring these KPIs will help you assess if your growth plan is on track and enable you to make informed decisions and adjustments as needed.

Develop a Marketing and Sales Strategy

A strong marketing and sales strategy is crucial to drive business growth. Clearly define your target audience, develop compelling messaging, and identify the most effective channels to reach and engage your potential customers. Leverage digital marketing techniques, social media platforms, content marketing, SEO, and other tactics relevant to your industry to maximize your reach and generate quality leads. Align your marketing and sales efforts to ensure a seamless customer journey that leads to conversions.

Invest in Employee Development

Your employees play a significant role in driving business growth. Invest in their professional development and provide training opportunities to enhance their skill sets. Empower them to take ownership of their responsibilities and encourage a culture of continuous learning and improvement. By fostering a motivated and skilled workforce, you can boost productivity , innovation, and overall business performance.

Foster Strategic Partnerships

Strategic partnerships can be a valuable growth strategy for businesses. Look for complementary organizations or businesses with shared target audiences and explore opportunities for collaboration. By partnering with other businesses, you can tap into new markets, leverage each other’s strengths, share resources, and mutually benefit from the synergies created.

Continuously Monitor and Evaluate Your Plan

Creating a growth plan is not a one-time task; it requires ongoing monitoring and evaluation. Regularly review your progress, reassess your goals, and adjust your strategies as needed. Stay updated on market trends, customer preferences, and industry developments to ensure your growth plan remains relevant and effective. Be agile and adaptable in responding to changes and seeking new opportunities for growth.

Business Plan vs Growth Plan

Business plans and growth plans are essential tools for businesses, but they serve different purposes. While a business plan outlines the basics of a company, including its mission, product offerings, and financial projections, a growth plan focuses specifically on strategies to drive business growth. Let’s explore the differences between the two:

Business Plan

A business plan is a detailed blueprint of a company’s goals and objectives, outlining how it intends to achieve them. It typically includes the following components:

• Executive summary: A brief overview of the company’s mission, goals, and financial projections.
• Company description: A detailed description of the company’s mission, historical background, products or services offered, and target market.
• Market analysis: An overview of the industry, including trends, competition, and target audience.
• Organization and management: An overview of the company’s organizational structure , leadership team, and management style.
• Products and services: A detailed description of the company’s products or services, including pricing, distribution, and marketing strategies.
• Financial projections: Forecasted financial statements, including income statements, balance sheets, and cash flow statements.

A business plan serves as a roadmap for a company’s future, laying out how it plans to operate, grow and succeed.

Growth Plan

A growth plan is a strategic document designed to identify and prioritize strategies to drive business growth. Instead of focusing on the basics of the company like a business plan, a growth plan zooms into the company’s growth opportunities. It typically includes the following components:

• Review of business environment: An overview of the current business conditions and the challenges and opportunities that exist in the market.
• Mission and vision statement: A reaffirmation of the company’s goals and aspirations, and how these will translate into growth strategies.
• Goals and objectives: Specific, measurable objectives that align with the company’s mission and growth aspirations.
• SWOT analysis: An assessment of the company’s strengths, weaknesses, opportunities, and threats.
• Strategies and tactics: A detailed outline of the strategies and tactics that will be used to achieve the company’s goals and objectives.
• Performance metrics: Objective measures that will be used to track and evaluate the success of the growth plan.

A growth plan offers a framework for businesses to identify and prioritize growth opportunities, set realistic growth targets, and develop actionable strategies to achieve those targets.

In summary, while a business plan outlines the basics of a company, including its mission, goals, and financial projections, a growth plan focuses on strategies to drive growth. While both plans are essential for the success of a business, they play different roles in the development and execution of a company’s strategy.

Key Takeaways

Creating an effective growth plan for your business involves identifying your goals and objectives, assessing your business needs, developing a strategy, establishing an action plan, and monitoring and adjusting your plan as needed.

By following these steps and adopting a growth mindset, you can successfully achieve your business goals, help your organization thrive, and continue to grow for years to come. Remember to set realistic, measurable targets, focus on your customers’ needs, and stay open to new opportunities. With a well-constructed growth plan, you can continue to make your business successful and continue to grow.

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The Ultimate Guide to Business Growth Plan: From Vision to Execution

A business growth plan is your blueprint for taking your organization to new heights. In this guide, we’ll demystify each element of a growth business plan using simple language and share expert tips to help you create a plan that drives your organization’s growth.

Key Highlights

• Unlock Hidden Growth: Dive deep into your business and market, uncover untapped potential, and brainstorm innovative strategies to fuel your expansion.
• Build Your Winning Plan: Craft a clear roadmap with compelling goals, market-savvy strategies, and actionable sales & marketing tactics to attract and retain customers.
• Navigate & Conquer: Streamline operations, manage risks, and adapt your plan as needed to ensure smooth sailing on your growth journey, celebrating every milestone along the way.

Identifying Growth Opportunities

Before diving into crafting your business growth plan, it’s crucial to identify potential growth opportunities within your business and the broader market. Here are some strategies to help you uncover these hidden gems:

1. Analyze your current business:

• Review your strengths and weaknesses: Identify areas where your business excels and areas needing improvement. Analyzing your strengths and weaknesses provides valuable insights to fuel growth and identify areas for improvement.
• Examine customer data: Analyze customer demographics, purchase history, and feedback to understand their needs and preferences. These insights can inform new product development, targeted marketing campaigns, and improved customer service.
• Assess your performance metrics: Track key performance indicators (KPIs) such as revenue, customer acquisition cost, and customer lifetime value. Analyzing these metrics helps identify areas of growth and measure the effectiveness of your existing strategies.

2. Research your market:

• Identify industry trends: Stay informed about emerging trends and developments within your industry. This knowledge can help you anticipate market shifts and adapt your offerings accordingly. Learn more about different market research types here: Types of Market Research
• Analyze your competitors: Research your competitors' strengths and weaknesses, product offerings, and marketing strategies. This analysis allows you to identify potential gaps in the market and develop unique selling propositions. For small businesses, check out these helpful tips for effective competitor analysis: Market Research for Small Businesses
• Explore new market segments: Consider expanding your target audience to reach new customer segments with untapped potential. This can open up new avenues for revenue generation and market share expansion. Explore our expert market research services here: Expert Market Research Services

3. Conduct brainstorming sessions:

• Gather your team: Engage your team members in brainstorming sessions to generate innovative growth ideas. Encourage them to think outside the box and explore unconventional approaches.
• Utilize creativity tools: Employ various creativity tools like mind mapping, role-playing, and scenario planning to stimulate creative thinking and generate unique solutions.
• Prioritize and evaluate ideas: After brainstorming, prioritize potential growth opportunities based on their feasibility, potential impact, and alignment with your overall business goals.

By actively identifying growth opportunities, you build a solid foundation for your growth plan and ensure you’re focusing your efforts on the areas with the highest potential for success. Need professional assistance crafting your business growth plan? Consider expert help from skilled business writers at WiseBusinessPlans.

1. Executive Summary: The Big Picture

Begin with an executive summary that provides a high-level overview of your business growth plan. Explain your vision, goals, market opportunity, competitive advantage, and financial projections in a concise and compelling manner.

• Expert Tip 1: "Your executive summary should grab attention and convey your growth potential. It's your plan's introduction." - Sarah Smith, Business Strategist.

2. Company Overview: Who You Are

In company overview , provide a detailed description of your organization, including its history, legal structure, leadership team, location, and core values. Highlight your qualifications and achievements as a leader.

• Expert Tip 2: "Your company overview showcases your expertise and the foundation on which your business growth plan is built." - John Stevens, Business Coach.

3. Market Analysis: Understanding the Landscape

Conduct thorough research on your industry, market size, growth potential, customer segments, competitors, and perform a SWOT analysis. Demonstrate your market knowledge and insights.

• Expert Tip 3: "A deep market analysis is your compass for growth. Know your market inside out." - Emily Turner, Market Research Specialist.

4. Growth Plan Strategies: Your Path Forward

Outline the strategies and tactics you’ll employ to achieve growth. Whether it’s expanding to new markets, launching new products, or acquiring competitors, your growth strategies should be well-defined.

• Expert Tip 4: "Your growth strategies are your roadmap to success. They provide direction and purpose." - Mark Thompson, Growth Strategist.

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5. sales and marketing plan: attracting customers.

Detail how you’ll attract, acquire, and retain customers. Describe your marketing channels, tactics, budget, and metrics for success. Highlight your expertise in customer acquisition.

• Expert Tip 5: "Effective sales and marketing are pivotal for growth. Know your audience and tailor your strategies." - Laura Martinez, Marketing Expert.
• Develop targeted marketing campaigns: Segment your audience and tailor your messaging to resonate with each segment's specific needs and interests.
• Leverage digital marketing channels: Utilize social media platforms, email marketing, and content marketing to reach a wider audience and increase brand awareness.
• Offer customer incentives: Implement loyalty programs, referral bonuses, and promotional offers to encourage repeat business and attract new customers.

6. Operational Plan: Managing Growth

In operational plan , explain how you’ll manage operations during the growth phase. Discuss production, supply chain, inventory management, quality control, and risk management strategies.

• Expert Tip 6: "Operational efficiency is crucial during growth. Plan and execute smoothly." - David Reynolds, Operations Specialist.
• Streamline your processes: Identify and eliminate bottlenecks within your operations to improve efficiency and reduce costs.
• Invest in automation technologies: Utilize technology to automate repetitive tasks and free up resources for more strategic initiatives.
• Implement quality control measures: Establish stringent quality control procedures to ensure consistently high-quality products and services.

7. Financial Projections: The Numbers Game

Provide realistic financial projections , including income statements, balance sheets, cash flow statements, break-even analysis, and funding requirements. Showcase your financial acumen.

• Expert Tip 7: "Your financial projections should reflect a solid understanding of your organization's financial health and growth potential." - Susan James, Financial Analyst.
• Develop a detailed budget: Create a comprehensive budget outlining your projected income and expenses for the duration

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8. risk assessment and mitigation: preparing for challenges.

Identify potential risks and challenges associated with your growth plan and explain how you’ll mitigate them. Demonstrating your ability to navigate uncertainties is crucial.

• Expert Tip 8: " Effective risk management is a sign of a well-prepared growth plan. Be proactive and have contingency plans in place." - Robert Clark, Risk Management Consultant.

Importance of Business Growth Plans

Why business growth plans matter.

• Market Share & Penetration: Sustain market share to prevent losses in a dynamic economy.
• Recouping Early Losses: Aid in recovering initial losses for sustainable profitability.
• Future Risk Minimization: Enhance efficiency and liquidity for unexpected scenarios.
• Investor Appeal: Crucial for attracting investors with a well-defined growth strategy.
• Concrete Revenue Plans: Focus on revenue strategies for continual business growth.

Factors Impacting Business Growth

Crucial factors for growth:.

• Leadership: Understanding business processes and external forces is vital for leadership.
• Effective Management: Obtaining funding, resources, and infrastructure drives growth.
• Customer Loyalty: Retaining customers is cost-effective and fundamental for sustained growth.

Major Growth Strategies

Primary growth strategies:.

• Market Strategy: Penetrate target audience through pricing adjustments or marketing.
• Development Strategy: Expand to new markets when growth is limited in the current market.
• Product Strategy: Introduce new products based on existing market demands.
• Diversification Strategy: Expand both products and target markets for versatile growth.

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Growth Plan Implementation Checklist:

Here’s a checklist to help you stay on track during the implementation phase of your growth plan:

• 1. Define clear goals and objectives: Clearly define SMART (Specific, Measurable, Achievable, Relevant, and Time-bound) goals for each growth initiative. This provides direction and ensures you're measuring progress effectively.
• 2. Develop detailed action plans: Break down each growth strategy into specific action steps with assigned roles and responsibilities. This ensures everyone understands their tasks and contributes effectively.
• 3. Allocate resources: Allocate necessary resources, including budget, personnel, and technology, to support the implementation of your growth plan.
• 4. Establish timelines and milestones: Set realistic timelines and milestones for each element of your plan. This helps track progress and identify areas requiring adjustments.
• 5. Monitor performance regularly: Regularly monitor key performance indicators to track the effectiveness of your growth initiatives. This allows you to make data-driven decisions and adapt your strategies as needed.
• 6. Communicate effectively: Communicate your growth plan to all stakeholders, including employees, investors, and partners. This ensures transparency and alignment across the organization.
• 7. Adapt and refine your plan: Be prepared to adapt and refine your growth plan based on market changes, performance data, and feedback from stakeholders. This ensures your plan remains relevant and effective over time.
• 8. Celebrate successes: Recognize and celebrate successes achieved along the way. This boosts morale and motivates team members to continue their efforts towards achieving the overall growth objectives.

By following this checklist, you can turn your growth plan into a reality and achieve your business goals. Remember, a successful growth plan requires consistent effort, ongoing monitoring, and a willingness to adapt your approach as needed.

Crafting a growth business plan is a strategic endeavor that requires expertise and a deep understanding of your organization’s goals and market dynamics. By simplifying each section and emphasizing clear communication, you’ll not only create a growth roadmap but also instill confidence in your stakeholders. Your growth business plan is your tool for propelling your organization toward new horizons and achieving long-term success.

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Table of Contents

How to make a business plan

How to make a good business plan: step-by-step guide.

A business plan is a strategic roadmap used to navigate the challenging journey of entrepreneurship. It's the foundation upon which you build a successful business.

A well-crafted business plan can help you define your vision, clarify your goals, and identify potential problems before they arise.

But where do you start? How do you create a business plan that sets you up for success?

This article will explore the step-by-step process of creating a comprehensive business plan.

What is a business plan?

A business plan is a formal document that outlines a business's objectives, strategies, and operational procedures. It typically includes the following information about a company:

Products or services

Target market

Competitors

Marketing and sales strategies

Financial plan

Management team

A business plan serves as a roadmap for a company's success and provides a blueprint for its growth and development. It helps entrepreneurs and business owners organize their ideas, evaluate the feasibility, and identify potential challenges and opportunities.

As well as serving as a guide for business owners, a business plan can attract investors and secure funding. It demonstrates the company's understanding of the market, its ability to generate revenue and profits, and its strategy for managing risks and achieving success.

Business plan vs. business model canvas

A business plan may seem similar to a business model canvas, but each document serves a different purpose.

A business model canvas is a high-level overview that helps entrepreneurs and business owners quickly test and iterate their ideas. It is often a one-page document that briefly outlines the following:

Key partnerships

Key activities

Key propositions

Customer relationships

Customer segments

Key resources

Cost structure

Revenue streams

On the other hand, a Business Plan Template provides a more in-depth analysis of a company's strategy and operations. It is typically a lengthy document and requires significant time and effort to develop.

A business model shouldn’t replace a business plan, and vice versa. Business owners should lay the foundations and visually capture the most important information with a Business Model Canvas Template . Because this is a fast and efficient way to communicate a business idea, a business model canvas is a good starting point before developing a more comprehensive business plan.

A business plan can aim to secure funding from investors or lenders, while a business model canvas communicates a business idea to potential customers or partners.

Why is a business plan important?

A business plan is crucial for any entrepreneur or business owner wanting to increase their chances of success.

Here are some of the many benefits of having a thorough business plan.

Helps to define the business goals and objectives

A business plan encourages you to think critically about your goals and objectives. Doing so lets you clearly understand what you want to achieve and how you plan to get there.

A well-defined set of goals, objectives, and key results also provides a sense of direction and purpose, which helps keep business owners focused and motivated.

Guides decision-making

A business plan requires you to consider different scenarios and potential problems that may arise in your business. This awareness allows you to devise strategies to deal with these issues and avoid pitfalls.

With a clear plan, entrepreneurs can make informed decisions aligning with their overall business goals and objectives. This helps reduce the risk of making costly mistakes and ensures they make decisions with long-term success in mind.

Attracts investors and secures funding

Investors and lenders often require a business plan before considering investing in your business. A document that outlines the company's goals, objectives, and financial forecasts can help instill confidence in potential investors and lenders.

A well-written business plan demonstrates that you have thoroughly thought through your business idea and have a solid plan for success.

Identifies potential challenges and risks

A business plan requires entrepreneurs to consider potential challenges and risks that could impact their business. For example:

Is there enough demand for my product or service?

Will I have enough capital to start my business?

Is the market oversaturated with too many competitors?

What will happen if my marketing strategy is ineffective?

By identifying these potential challenges, entrepreneurs can develop strategies to mitigate risks and overcome challenges. This can reduce the likelihood of costly mistakes and ensure the business is well-positioned to take on any challenges.

Provides a basis for measuring success

A business plan serves as a framework for measuring success by providing clear goals and financial projections . Entrepreneurs can regularly refer to the original business plan as a benchmark to measure progress. By comparing the current business position to initial forecasts, business owners can answer questions such as:

Are we where we want to be at this point?

Did we achieve our goals?

If not, why not, and what do we need to do?

After assessing whether the business is meeting its objectives or falling short, business owners can adjust their strategies as needed.

How to make a business plan step by step

The steps below will guide you through the process of creating a business plan and what key components you need to include.

1. Create an executive summary

Start with a brief overview of your entire plan. The executive summary should cover your business plan's main points and key takeaways.

Keep your executive summary concise and clear with the Executive Summary Template . The simple design helps readers understand the crux of your business plan without reading the entire document.

2. Write your company description

Provide a detailed explanation of your company. Include information on what your company does, the mission statement, and your vision for the future.

Provide additional background information on the history of your company, the founders, and any notable achievements or milestones.

3. Conduct a market analysis

Conduct an in-depth analysis of your industry, competitors, and target market. This is best done with a SWOT analysis to identify your strengths, weaknesses, opportunities, and threats. Next, identify your target market's needs, demographics, and behaviors.

Use the Competitive Analysis Template to brainstorm answers to simple questions like:

What does the current market look like?

Who are your competitors?

What are they offering?

What will give you a competitive advantage?

Who is your target market?

What are they looking for and why?

How will your product or service satisfy a need?

These questions should give you valuable insights into the current market and where your business stands.

4. Describe your products and services

Provide detailed information about your products and services. This includes pricing information, product features, and any unique selling points.

Use the Product/Market Fit Template to explain how your products meet the needs of your target market. Describe what sets them apart from the competition.

5. Design a marketing and sales strategy

Outline how you plan to promote and sell your products. Your marketing strategy and sales strategy should include information about your:

Pricing strategy

Advertising and promotional tactics

Sales channels

The Go to Market Strategy Template is a great way to visually map how you plan to launch your product or service in a new or existing market.

6. Determine budget and financial projections

Document detailed information on your business’ finances. Describe the current financial position of the company and how you expect the finances to play out.

Some details to include in this section are:

Startup costs

Revenue projections

Profit and loss statement

Funding you have received or plan to receive

Strategy for raising funds

7. Set the organization and management structure

Define how your company is structured and who will be responsible for each aspect of the business. Use the Business Organizational Chart Template to visually map the company’s teams, roles, and hierarchy.

As well as the organization and management structure, discuss the legal structure of your business. Clarify whether your business is a corporation, partnership, sole proprietorship, or LLC.

8. Make an action plan

At this point in your business plan, you’ve described what you’re aiming for. But how are you going to get there? The Action Plan Template describes the following steps to move your business plan forward. Outline the next steps you plan to take to bring your business plan to fruition.

Types of business plans

Several types of business plans cater to different purposes and stages of a company's lifecycle. Here are some of the most common types of business plans.

Startup business plan

A startup business plan is typically an entrepreneur's first business plan. This document helps entrepreneurs articulate their business idea when starting a new business.

Not sure how to make a business plan for a startup? It’s pretty similar to a regular business plan, except the primary purpose of a startup business plan is to convince investors to provide funding for the business. A startup business plan also outlines the potential target market, product/service offering, marketing plan, and financial projections.

Strategic business plan

A strategic business plan is a long-term plan that outlines a company's overall strategy, objectives, and tactics. This type of strategic plan focuses on the big picture and helps business owners set goals and priorities and measure progress.

The primary purpose of a strategic business plan is to provide direction and guidance to the company's management team and stakeholders. The plan typically covers a period of three to five years.

Operational business plan

An operational business plan is a detailed document that outlines the day-to-day operations of a business. It focuses on the specific activities and processes required to run the business, such as:

Organizational structure

Staffing plan

Production plan

Quality control

Inventory management

Supply chain

The primary purpose of an operational business plan is to ensure that the business runs efficiently and effectively. It helps business owners manage their resources, track their performance, and identify areas for improvement.

Growth-business plan

A growth-business plan is a strategic plan that outlines how a company plans to expand its business. It helps business owners identify new market opportunities and increase revenue and profitability. The primary purpose of a growth-business plan is to provide a roadmap for the company's expansion and growth.

The 3 Horizons of Growth Template is a great tool to identify new areas of growth. This framework categorizes growth opportunities into three categories: Horizon 1 (core business), Horizon 2 (emerging business), and Horizon 3 (potential business).

One-page business plan

A one-page business plan is a condensed version of a full business plan that focuses on the most critical aspects of a business. It’s a great tool for entrepreneurs who want to quickly communicate their business idea to potential investors, partners, or employees.

A one-page business plan typically includes sections such as business concept, value proposition, revenue streams, and cost structure.

Best practices for how to make a good business plan

Here are some additional tips for creating a business plan:

Use a template

A template can help you organize your thoughts and effectively communicate your business ideas and strategies. Starting with a template can also save you time and effort when formatting your plan.

Miro’s extensive library of customizable templates includes all the necessary sections for a comprehensive business plan. With our templates, you can confidently present your business plans to stakeholders and investors.

Be practical

Avoid overestimating revenue projections or underestimating expenses. Your business plan should be grounded in practical realities like your budget, resources, and capabilities.

Be specific

Provide as much detail as possible in your business plan. A specific plan is easier to execute because it provides clear guidance on what needs to be done and how. Without specific details, your plan may be too broad or vague, making it difficult to know where to start or how to measure success.

Be thorough with your research

Conduct thorough research to fully understand the market, your competitors, and your target audience . By conducting thorough research, you can identify potential risks and challenges your business may face and develop strategies to mitigate them.

Get input from others

It can be easy to become overly focused on your vision and ideas, leading to tunnel vision and a lack of objectivity. By seeking input from others, you can identify potential opportunities you may have overlooked.

Review and revise regularly

A business plan is a living document. You should update it regularly to reflect market, industry, and business changes. Set aside time for regular reviews and revisions to ensure your plan remains relevant and effective.

Create a winning business plan to chart your path to success

Starting or growing a business can be challenging, but it doesn't have to be. Whether you're a seasoned entrepreneur or just starting, a well-written business plan can make or break your business’ success.

The purpose of a business plan is more than just to secure funding and attract investors. It also serves as a roadmap for achieving your business goals and realizing your vision. With the right mindset, tools, and strategies, you can develop a visually appealing, persuasive business plan.

Ready to make an effective business plan that works for you? Check out our library of ready-made strategy and planning templates and chart your path to success.

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Plans and pricing.

Simple Business Plan Template (2024)

Updated: May 4, 2024, 4:37pm

Table of Contents

Why business plans are vital, get your free simple business plan template, how to write an effective business plan in 6 steps, frequently asked questions.

While taking many forms and serving many purposes, they all have one thing in common: business plans help you establish your goals and define the means for achieving them. Our simple business plan template covers everything you need to consider when launching a side gig, solo operation or small business. By following this step-by-step process, you might even uncover a few alternate routes to success.

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Whether you’re a first-time solopreneur or a seasoned business owner, the planning process challenges you to examine the costs and tasks involved in bringing a product or service to market. The process can also help you spot new income opportunities and hone in on the most profitable business models.

Though vital, business planning doesn’t have to be a chore. Business plans for lean startups and solopreneurs can simply outline the business concept, sales proposition, target customers and sketch out a plan of action to bring the product or service to market. However, if you’re seeking startup funding or partnership opportunities, you’ll need a write a business plan that details market research, operating costs and revenue forecasting. Whichever startup category you fall into, if you’re at square one, our simple business plan template will point you down the right path.

Copy our free simple business plan template so you can fill in the blanks as we explore each element of your business plan. Need help getting your ideas flowing? You’ll also find several startup scenario examples below.

Download free template as .docx

Whether you need a quick-launch overview or an in-depth plan for investors, any business plan should cover the six key elements outlined in our free template and explained below. The main difference in starting a small business versus an investor-funded business is the market research and operational and financial details needed to support the concept.

1. Your Mission or Vision

Start by declaring a “dream statement” for your business. You can call this your executive summary, vision statement or mission. Whatever the name, the first part of your business plan summarizes your idea by answering five questions. Keep it brief, such as an elevator pitch. You’ll expand these answers in the following sections of the simple business plan template.

• What does your business do? Are you selling products, services, information or a combination?
• Where does this happen? Will you conduct business online, in-store, via mobile means or in a specific location or environment?
• Who does your business benefit? Who is your target market and ideal customer for your concept?
• Why would potential customers care? What would make your ideal customers take notice of your business?
• How do your products and/or services outshine the competition? What would make your ideal customers choose you over a competitor?

These answers come easily if you have a solid concept for your business, but don’t worry if you get stuck. Use the rest of your plan template to brainstorm ideas and tactics. You’ll quickly find these answers and possibly new directions as you explore your ideas and options.

2. Offer and Value Proposition

This is where you detail your offer, such as selling products, providing services or both, and why anyone would care. That’s the value proposition. Specifically, you’ll expand on your answers to the first and fourth bullets from your mission/vision.

As you complete this section, you might find that exploring value propositions uncovers marketable business opportunities that you hadn’t yet considered. So spend some time brainstorming the possibilities in this section.

For example, a cottage baker startup specializing in gluten-free or keto-friendly products might be a value proposition that certain audiences care deeply about. Plus, you could expand on that value proposition by offering wedding and other special-occasion cakes that incorporate gluten-free, keto-friendly and traditional cake elements that all guests can enjoy.

3. Audience and Ideal Customer

Here is where you explore bullet point number three, who your business will benefit. Identifying your ideal customer and exploring a broader audience for your goods or services is essential in defining your sales and marketing strategies, plus it helps fine-tune what you offer.

There are many ways to research potential audiences, but a shortcut is to simply identify a problem that people have that your product or service can solve. If you start from the position of being a problem solver, it’s easy to define your audience and describe the wants and needs of your ideal customer for marketing efforts.

Using the cottage baker startup example, a problem people might have is finding fresh-baked gluten-free or keto-friendly sweets. Examining the wants and needs of these people might reveal a target audience that is health-conscious or possibly dealing with health issues and willing to spend more for hard-to-find items.

However, it’s essential to have a customer base that can support your business. You can be too specialized. For example, our baker startup can attract a broader audience and boost revenue by offering a wider selection of traditional baked goods alongside its gluten-free and keto-focused specialties.

4. Revenue Streams, Sales Channels and Marketing

Thanks to our internet-driven economy, startups have many revenue opportunities and can connect with target audiences through various channels. Revenue streams and sales channels also serve as marketing vehicles, so you can cover all three in this section.

Revenue Streams

Revenue streams are the many ways you can make money in your business. In your plan template, list how you’ll make money upon launch, plus include ideas for future expansion. The income possibilities just might surprise you.

For example, our cottage baker startup might consider these revenue streams:

• Product sales : Online, pop-up shops , wholesale and (future) in-store sales
• Affiliate income : Monetize blog and social media posts with affiliate links
• Advertising income : Reserve website space for advertising
• E-book sales : (future) Publish recipe e-books targeting gluten-free and keto-friendly dessert niches
• Video income : (future) Monetize a YouTube channel featuring how-to videos for the gluten-free and keto-friendly dessert niches
• Webinars and online classes : (future) Monetize coaching-style webinars and online classes covering specialty baking tips and techniques
• Members-only content : (future) Monetize a members-only section of the website for specialty content to complement webinars and online classes
• Franchise : (future) Monetize a specialty cottage bakery concept and sell to franchise entrepreneurs

Sales Channels

Sales channels put your revenue streams into action. This section also answers the “where will this happen” question in the second bullet of your vision.

The product sales channels for our cottage bakery example can include:

• Mobile point-of-sale (POS) : A mobile platform such as Shopify or Square POS for managing in-person sales at local farmers’ markets, fairs and festivals
• E-commerce platform : An online store such as Shopify, Square or WooCommerce for online retail sales and wholesale sales orders
• Social media channels : Facebook, Instagram and Pinterest shoppable posts and pins for online sales via social media channels
• Brick-and-mortar location : For in-store sales , once the business has grown to a point that it can support a physical location

Channels that support other income streams might include:

• Affiliate income : Blog section on the e-commerce website and affiliate partner accounts
• Advertising income : Reserved advertising spaces on the e-commerce website
• E-book sales : Amazon e-book sales via Amazon Kindle Direct Publishing
• Video income : YouTube channel with ad monetization
• Webinars and online classes : Online class and webinar platforms that support member accounts, recordings and playback
• Members-only content : Password-protected website content using membership apps such as MemberPress

Nowadays, the line between marketing and sales channels is blurred. Social media outlets, e-books, websites, blogs and videos serve as both marketing tools and income opportunities. Since most are free and those with advertising options are extremely economical, these are ideal marketing outlets for lean startups.

However, many businesses still find value in traditional advertising such as local radio, television, direct mail, newspapers and magazines. You can include these advertising costs in your simple business plan template to help build a marketing plan and budget.

5. Structure, Suppliers and Operations

This section of your simple business plan template explores how to structure and operate your business. Details include the type of business organization your startup will take, roles and responsibilities, supplier logistics and day-to-day operations. Also, include any certifications or permits needed to launch your enterprise in this section.

Our cottage baker example might use a structure and startup plan such as this:

• Business structure : Sole proprietorship with a “doing business as” (DBA) .
• Permits and certifications : County-issued food handling permit and state cottage food certification for home-based food production. Option, check into certified commercial kitchen rentals.
• Roles and responsibilities : Solopreneur, all roles and responsibilities with the owner.
• Supply chain : Bulk ingredients and food packaging via Sam’s Club, Costco, Amazon Prime with annual membership costs. Uline for shipping supplies; no membership needed.
• Day-to-day operations : Source ingredients and bake three days per week to fulfill local and online orders. Reserve time for specialty sales, wholesale partner orders and market events as needed. Ship online orders on alternating days. Update website and create marketing and affiliate blog posts on non-shipping days.

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6. Financial Forecasts

Your final task is to list forecasted business startup and ongoing costs and profit projections in your simple business plan template. Thanks to free business tools such as Square and free marketing on social media, lean startups can launch with few upfront costs. In many cases, cost of goods, shipping and packaging, business permits and printing for business cards are your only out-of-pocket expenses.

Cost Forecast

Our cottage baker’s forecasted lean startup costs might include:

Gross Profit Projections

This helps you determine the retail prices and sales volume required to keep your business running and, hopefully, earn income for yourself. Use product research to spot target retail prices for your goods, then subtract your cost of goods, such as hourly rate, raw goods and supplier costs. The total amount is your gross profit per item or service.

Here are some examples of projected gross profits for our cottage baker:

Bottom Line

Putting careful thought and detail in a business plan is always beneficial, but don’t get so bogged down in planning that you never hit the start button to launch your business . Also, remember that business plans aren’t set in stone. Markets, audiences and technologies change, and so will your goals and means of achieving them. Think of your business plan as a living document and regularly revisit, expand and restructure it as market opportunities and business growth demand.

Is there a template for a business plan?

You can copy our free business plan template and fill in the blanks or customize it in Google Docs, Microsoft Word or another word processing app. This free business plan template includes the six key elements that any entrepreneur needs to consider when launching a new business.

What does a simple business plan include?

A simple business plan is a one- to two-page overview covering six key elements that any budding entrepreneur needs to consider when launching a startup. These include your vision or mission, product or service offering, target audience, revenue streams and sales channels, structure and operations, and financial forecasts.

How can I create a free business plan template?

Start with our free business plan template that covers the six essential elements of a startup. Once downloaded, you can edit this document in Google Docs or another word processing app and add new sections or subsections to your plan template to meet your specific business plan needs.

What basic items should be included in a business plan?

When writing out a business plan, you want to make sure that you cover everything related to your concept for the business,  an analysis of the industry―including potential customers and an overview of the market for your goods or services―how you plan to execute your vision for the business, how you plan to grow the business if it becomes successful and all financial data around the business, including current cash on hand, potential investors and budget plans for the next few years.

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Krista Fabregas is a seasoned eCommerce and online content pro sharing more than 20 years of hands-on know-how with those looking to launch and grow tech-forward businesses. Her expertise includes eCommerce startups and growth, SMB operations and logistics, website platforms, payment systems, side-gig and affiliate income, and multichannel marketing. Krista holds a bachelor's degree in English from The University of Texas at Austin and held senior positions at NASA, a Fortune 100 company, and several online startups.

Write a business development plan

Now that you’re in the growth stage of your business, set things in motion with a business development plan.

A business development plan sets goals for growth and explains how you will achieve them. It can have a short-term or long-term focus. Review and revise your plan as often as you can. And keep building on it as your business evolves.

How to write a business development plan

Your business development plan is your roadmap to growth, so make it clear, specific and realistic.

What to include in a business development plan

• Opportunities for growth: Identify where growth will come from – whether it’s in creating new products, adding more services, breaking into new markets, or a combination of these.
• Funding plan: Determine how you’ll fund your business growth. How much capital do you already have? How much more do you need and how will you get it? Check out our guide on financing your business.
• Financial goals: Work out what revenue, costs and profits you’ll have if things stay the same. Use those numbers as a basis for setting new, more ambitious financial goals.
• Operational needs: Identify what things about your business will need to change in order to achieve growth. Will you need extra people, more equipment, or new suppliers?
• Sales and marketing activities: Figure out what sales and marketing efforts will effectively promote growth and how these efforts will change as the business gets bigger and better. Make sure your sales and marketing plan is sturdy enough to support your growing business.
• Team needs: You may need people to take on some of the tasks you’ve been doing. Think about what parts of running the business you enjoy most – and you’re good at – and what parts you might want to delegate to others. And give some thought to the culture you want to develop in your business as it grows. Check out our guide on hiring employees.

A sample business development plan

Avoid these common business development mistakes.

• Thinking short-term instead of long-term
• Underestimating how much money it will take to grow
• Not budgeting enough money to cover the costs of growth
• Focusing on too many growth opportunities: think quality, not quantity

Micro-planning can keep you focused

You may want to create some micro-plans for specific growth projects so their details don’t get overlooked. And you can build in some KPIs to measure your progress and successes. As your business grows, take note of your progress and make periodic adjustments to your business development plan to make sure it’s still relevant.

Support is out there

Remember you’re not the first to go through this. Seek out mentors, advisors or other business owners who can help you with your planning. Your accountant or bookkeeper may also be able to help or point you in the direction of the right people.

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.

Growing your business

Are you ready to drop the hammer and take your business to the next level? Let’s look at how to grow.

Before you leap into growth, reflect on where you’ve come from. Find out the stage of business growth you’re at.

Understanding your business performance will help you grow. Check out common examples of small business KPIs.

Increasing sales revenue is one obvious way to help grow your business. But how do you sell more?

You can grow your business by selling more things to more people, or fewer things to fewer people. Let’s look at how.

You’re all set to grow your business. But there’s so much to keep track of. Xero’s got resources and solutions to help.

Download the guide to growing your business

Learn how to grow a business, from planning to expansion. Fill out the form to receive this guide as a PDF.

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How to Create a Growth Plan for Your Business in 6 Simple Steps The new book, "Grow Your Business," offers an easy-to-follow guide to expanding your business and making more money this year.

By Dan Bova Aug 8, 2023

The following is an excerpt from Grow Your Business: Scaling Your Business for Long-Term Success by the staff of Entrepreneur Media and Eric Butow, on sale now.

To grow your company, you need a plan that establishes how you will grow and why your ideal customers should buy from you. Then you need to invest in the people and tools that can turn your plans into reality. If possible, distill your growth plan into a one-page document that will help you focus on the essentials and be easy for your team to digest. Growth plans are different for each business, and you can implement different strategies depending on what type of business you have. But regardless, you need to keep your team thinking in terms of growth. Once you establish a growth mindset in your employees, you and your team can continuously look for new opportunities for growth.

What a Growth Plan Is . . . and Isn't

A growth plan may be hard to wrap your head around when you're getting started in your business. Before you offer your product and/or service to the world, you need to focus on establishing a value proposition for potential customers and find out where your ideal customers are. Once you do, you can measure your progress as you sell your product and/or service. Those measurements will help you identify new revenue streams and let you compare yourself to the competition. That comparison will tell where your strengths are so you can focus on them. And when you have a clear idea of what you do and who your customers are, you can use that information to attract talented employees. Establish a Value Proposition Before you can grow, you need to think about what sets you apart from the competition. For example, some companies compete on authority. Whole Foods Market touts itself as the place to buy healthy and organic foods. Walmart asserts that it's the low-price leader and no one can beat its prices. Whatever competitive advantage you find, stick with it. If you don't, you run the risk of devaluing your business because customers won't know what you stand for.

Grow Your Business: Scaling Your Business for Long-Term Success is available now at Entrepreneur Bookstore | Amazon | Barnes and Noble

1. Pinpoint Your Ideal Customer

You started a business so you could solve a problem for a specific audience. During the startup stage, you may have identified numerous markets you thought you might be able to serve before narrowing it down to your specific niche market. Now you need to hone your target market even further until you've winnowed it down to your ideal customer. Once you know who they are, you can address them consistently in your market or submarket as you grow.

Related: How to Leverage Virtual Sales Events to Grow Your Business

2. Define Key Indicators

You won't be able to measure growth if you can't measure change. Start by identifying key performance indicators (KPIs), which are quantifiable measurements of a company's performance in specific areas over time. (Examples of commonly tracked KPIs include net profit, liquidity ratio, customer satisfaction, and customer retention.) Then dedicate time and money to improving those indicators.

3. Verify Your Revenue Streams

Don't just think about your current revenue streams—think about new revenue streams that could make your business more profitable. Once you've started identifying possible new revenue streams, get in the habit of asking yourself (and your team) if every cool new idea you and they come up with has a revenue stream attached. If it does, ask if that stream is sustainable over the long run.

Related: 5 Reasons Why Your Brand Needs a Chief Growth Officer

4. Research Your Competition

If your company is struggling with something, you likely have a competitor that excels at it. Don't just put your head down and try to surmount a challenge yourself. Look at similar growth businesses to inform your strategies and solutions. If you belong to an industry trade group or a networking organization (and you should), don't be afraid to ask for advice. Why have similar businesses made different choices? Do your competitors' growth choices mean that their businesses are positioned differently?

5. Focus on Your Strengths

Tailoring your growth plan to focus on and maximize your strengths can help you identify strategies for success. That doesn't mean you should ignore your weaknesses, but starting from a position of strength will give your company the fuel it needs to grow.

6. Invest in Talent

Your employees have direct or indirect contact with your customers, so you should hire people who are motivated by your company's value proposition and your plans for growth. Pay and treat your employees well because their positive energy will inspire your customers. Your employees will also listen to your customers and bring back ideas from them that will help you grow your business.

For more growth strategies, pickup Grow Your Business: Scaling Your Business available now at Entrepreneur Bookstore | Amazon | Barnes and Noble

Entrepreneur Staff

VP of Special Projects

Dan Bova is the VP of Special Projects at Entrepreneur.com. He previously worked at Jimmy Kimmel Live, Maxim, and Spy magazine. His latest books for kids  include  This Day in History , Car and Driver's Trivia Zone ,  Road & Track Crew's Big & Fast Cars , The Big Little Book of Awesome Stuff , and  Wendell the Werewolf . 

Read his humor column This Should Be Fun  if you want to feel better about yourself.

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Subscribe for exclusive access, how to write a business plan (tips, templates, examples).

Written by Jesse Sumrak | May 14, 2023

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

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

Bah. Sounds like homework, right?

Yes. Yes, it does.

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

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

Table of Contents

What Is a Business Plan?

Tips to Make Your Small Business Plan Ironclad

How to Write a Business Plan in 6 Steps

Startup Business Plan Template

Business Plan Examples

Work on Making Your Business Plan

How to Write a Business Plan FAQs

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

A business plan is a roadmap that outlines:

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

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

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

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

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

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

Don’t Skip: Business Startup Costs Checklist

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

Be Professional and Legit

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

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

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

Know Your Audience

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

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

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

Invest Time Researching

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

Your audience will want:

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

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

Stay Realistic

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

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

How to Write a Business Plan—6 Essential Elements

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

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

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

1. Executive Summary

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

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

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

2. Business Overview

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

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

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

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

3. Products and Services

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

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

You’ll need to include:

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

4. Market Analysis

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

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

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

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

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

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

5. Competitive Analysis

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

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

6. Financial Strategy

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

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

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

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

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

Read More: 16 Financial Concepts Every Entrepreneur Needs to Know

Startup Business Plan Template (Copy/Paste Outline)

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

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

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

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

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

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

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

5 Frame-Worthy Business Plan Examples

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

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

Get to Work on Making Your Business Plan

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

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

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

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

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

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

Keep Learning: New Product Development Process in 8 Easy Steps

What financial information should be included in a business plan?

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

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

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

Who should review my business plan before I submit it?

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

Ready to Write Your Business Plan?

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

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About Jesse Sumrak

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

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

Updated: June 28, 2024

Published: August 04, 2020

Years ago, I had an idea to launch a line of region-specific board games. I knew there was a market for games that celebrated local culture and heritage. I was so excited about the concept and couldn't wait to get started.

But my idea never took off. Why? Because I didn‘t have a plan. I lacked direction, missed opportunities, and ultimately, the venture never got off the ground.

And that’s exactly why a business plan is important. It cements your vision, gives you clarity, and outlines your next step.

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

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A business plan is a comprehensive document that outlines a company's goals, strategies, and financial projections. It provides a detailed description of the business, including its products or services, target market, competitive landscape, and marketing and sales strategies. The plan also includes a financial section that forecasts revenue, expenses, and cash flow, as well as a funding request if the business is seeking investment.

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

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

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

In an era where 48% of businesses survive half a decade on, having a clear, defined, and well-thought-out business plan is a crucial first step for setting up a business for long-term success.

Here’s why I think a business plan is important:

1. Securing Financing From Investors

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

I’ve seen that all banks, investors, and venture capital firms will want to see a business plan before handing over their money. Therefore, these investors need to know if — and when — they‘ll be making their money back (and then some).

Additionally, they’ll want to read about the process and strategy for how the business will reach those financial goals, which is where the context provided by sales, marketing, and operations plans come into play.

2. Documenting a Company's Strategy and Goals

I think a business plan should leave no stone unturned.

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

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

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

3. Legitimizing a Business Idea

I’ve seen that everyone‘s got a great idea for a company — until they put pen to paper and realize that it’s not exactly feasible.

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

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

It ensures you have everything in order before bringing their business idea to the world and reassures the readers that whoever wrote the plan is serious about the idea, having put hours into thinking of the business idea, fleshing out growth tactics, and calculating financial projections.

4. Getting an A in Your Business Class

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

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

5. Identifying Potential Problems

Business plans act as early warning systems that identify potential problems before they escalate into major obstacles.

How? When you conduct thorough market research, analyze competitor strategies, and evaluate financial projections, your plan pinpoints vulnerabilities and risks. This allows you to develop contingency plans and risk mitigation strategies.

This helps you prevent costly mistakes and shows investors and lenders you’re well-prepared and have considered various scenarios.

6. Attracts and Retains Talent

A well-articulated plan outlines your company's vision, mission, and values, showcasing a clear direction and purpose. People who want meaningful work that aligns with their ambitions will love this.

Also, it shows the company's potential for growth and stability. This instills confidence in employees and assures them of a secure future and opportunities for career advancement.

When you show growth potential and highlight a positive work culture, your business plan becomes a magnet for top talent.

7. Provides a Roadmap

A business plan provides a detailed roadmap for your company's future. It outlines your objectives, strategies, and the specific actions you need to achieve your goals.

When you define your path forward, a business plan helps you stay focused and on track, even when you face challenges or distractions. It’s a great reference tool that allows you to make smart decisions that align with your overall vision.

This way, having a comprehensive roadmap in the form of a business plan provides direction and clarity at every stage of your business journey.

8. Serves as a Marketing Tool

A business plan is not only an internal guide but also serves as a powerful marketing tool. Your business plan can showcase your company‘s strengths, unique value proposition, and growth potential when you’re looking for investors, partnerships, or new clients.

It provides a professional and polished overview of your business, which shows your commitment and strategic thinking to potential stakeholders.

Your business plan helps you attract the right people by clearly articulating your target market, competitive advantages, and financial projections. In summary, it acts as a persuasive sales pitch.

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

1. Business Plan Subtitle

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

2. Executive Summary

Although this is the last part of the business plan that you’ll write, it’s the first section (and maybe the only section) that stakeholders will read.

The executive summary of a business plan sets the stage for the rest of the document. It includes your company’s mission or vision statement, value proposition, and long-term goals.

3. Company Description

This brief part of your business plan will detail your business name, years in operation, key offerings, and positioning statement.

You might even add core values or a short history of the company. The company description’s role in a business plan is to introduce your business to the reader in a compelling and concise way.

4. The Business Opportunity

The business opportunity should convince investors that your organization meets the needs of the market in a way that no other company can.

This section explains the specific problem your business solves within the marketplace and how it solves them. It will include your value proposition as well as some high-level information about your target market.

5. Competitive Analysis

Just about every industry has more than one player in the market. Even if your business owns the majority of the market share in your industry or your business concept is the first of its kind, you still have competition.

In the competitive analysis section, you’ll take an objective look at the industry landscape to determine where your business fits. A SWOT analysis is an organized way to format this section.

6. Target Market

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

7. Marketing Plan

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

Think broadly and narrow down from there: Will you focus on a slow-and-steady play where you make an upfront investment in organic customer acquisition? Or will you generate lots of quick customers using a pay-to-play advertising strategy?

This kind of information should guide the marketing plan section of your business plan.

8. Financial Summary

Money doesn’t grow on trees. Even the most digital, sustainable businesses have expenses. Outlining a financial summary of where your business is currently and where you’d like it to be in the future will substantiate this section.

Consider including any monetary information that will give potential investors a glimpse into the financial health of your business. Assets, liabilities, expenses, debt, investments, revenue, and more are all useful additions here.

So, you’ve outlined some great goals, the business opportunity is valid, and the industry is ready for what you have to offer. Who’s responsible for turning all this high-level talk into results?

The “team” section of your business plan answers that question by providing an overview of the roles responsible for each goal.

Don’t worry if you don’t have every team member on board yet. Knowing what roles to hire for is helpful as you seek funding from investors.

10. Funding Requirements

Remember that one of the goals of a business plan is to secure funding from investors, so you’ll need to include funding requirements you’d like them to fulfill.

Considering that global funding fell 61% from 2021 to 2023 , it’s very important to be clear in this section. Include the amount your business needs, for what reasons, and for how long.

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

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

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

1. Startup Business Plan

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

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

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

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

Eric Heckstall , the founder and CEO of EDH Signature Inc ., which offers premier grooming products, also suggests keeping your startup business plan short.

“The traditional business plan can be 40+ pages, which is too large of a document to really be useful, can be difficult for staff to understand, and have to dig for information which most people won’t do,” Heckstall says.

Conversely, a one-to-two-page business plan improves clarity and focus. Heckstall says this format “is easy to use on a day-to-day basis, teams as well as potential investors can understand the purpose and direction of the company, and can easily be incorporated into team meetings.”

2. Feasibility Business Plan

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

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

Startups can fail because of a lack of market need and mistimed products. Plus, nearly half of entrepreneurs , founders, CEOs, and COOs report that price sensitivity and evolving market conditions are the number one prospect and customer challenges they face right now.

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

Zach Dannett , co-founder at rug company Tumble highlights how some business owners take a very idealistic approach too. And forget barriers to entry like regulatory issues in the process.

He adds how considering this aspect in their business plan helped.

Before launching the team, Dannett first took time to understand regulatory requirements in our industry, checking to make sure we needed to secure any certifications or licenses.

Then, “we reviewed financial requirements, which would cover initial investments, operational costs, and potential expenses. We then conducted thorough market research to understand our market, how saturated this market is, and identify major competitors with significant market share,” Dannett says

3. Internal Business Plan

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

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

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

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

You can also reduce your workload by using a free business template that helps you get a headstart on what to include.

4. Strategic Business Plan

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

These types of business plans may include:

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

It's important to remember that, while many businesses create a strategic plan before launching, some business owners just jump in.

David Sides , marketing specialist at The Gori Law , highlights how it’s important not to create this plan in isolation and involve key stakeholders from across the organization in the planning process.

“We make a point of bringing together attorneys, paralegals, and support staff to discuss our long-term goals and how we can work together to achieve them. This not only helps ensure buy-in and alignment, but it also allows you to tap into a wider range of perspectives and ideas,” Sides says.

This way, the strategic business plan can add value by outlining how your business plans to reach specific goals and considering a holistic perspective from the most important stakeholders. This type of planning can also help a business anticipate future challenges.

5. Business Acquisition Plan

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

I recommend including costs, schedules, or management requirements. This data will come from an acquisition strategy.

A business plan for an existing company will explain:

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

Ilia Tretiakov , owner and lead strategist, at So Good Digital , a marketing agency suggests adding a Day Zero Plan. This is a thorough plan outlining the steps you will take the moment the acquisition is completed.

It consists of stakeholder communication plans, critical system integration, quick operational adjustments, and cultural alignment initiatives.

Here’s why Ilia believes it’s important.

“A Day Zero Plan establishes the framework for the integration process and guarantees a seamless transition. This comprehensive strategy goes above and beyond the typical post-acquisition integration plan, taking care of urgent issues and laying the groundwork for long-term success,” Tretiakov says,

Apart from this, I believe the business plan should speak to the current state of the business and why it's up for sale.

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

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

6. Business Repositioning Plan

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

This plan will:

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

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

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

7. Expansion or Growth Business Plan

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

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

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

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

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

Getting Started With Your Business Plan

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

I personally recommend using the feasibility business plan template. It helps me assess the viability of my business idea before diving in head-first.

By completing a feasibility plan, I feel more confident and prepared to tackle the full business plan. Plus, it saves me time and effort in the long run by ensuring I'm pursuing an idea with real potential.

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

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

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What Is a Business Plan?

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

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

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A business plan is a document that outlines a company's goals and the strategies to achieve them. It's valuable for both startups and established companies. For startups, a well-crafted business plan is crucial for attracting potential lenders and investors. Established businesses use business plans to stay on track and aligned with their growth objectives. This article will explain the key components of an effective business plan and guidance on how to write one.

Key Takeaways

• A business plan is a document detailing a company's business activities and strategies for achieving its goals.
• Startup companies use business plans to launch their venture and to attract outside investors.
• For established companies, a business plan helps keep the executive team focused on short- and long-term objectives.
• There's no single required format for a business plan, but certain key elements are essential for most companies.

Investopedia / Ryan Oakley

Any new business should have a business plan in place before beginning operations. Banks and venture capital firms often want to see a business plan before considering making a loan or providing capital to new businesses.

Even if a company doesn't need additional funding, having a business plan helps it stay focused on its goals. Research from the University of Oregon shows that businesses with a plan are significantly more likely to secure funding than those without one. Moreover, companies with a business plan grow 30% faster than those that don't plan. According to a Harvard Business Review article, entrepreneurs who write formal plans are 16% more likely to achieve viability than those who don't.

A business plan should ideally be reviewed and updated periodically to reflect achieved goals or changes in direction. An established business moving in a new direction might even create an entirely new plan.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. It allows for careful consideration of ideas before significant investment, highlights potential obstacles to success, and provides a tool for seeking objective feedback from trusted outsiders. A business plan may also help ensure that a company’s executive team remains aligned on strategic action items and priorities.

While business plans vary widely, even among competitors in the same industry, they often share basic elements detailed below.

A well-crafted business plan is essential for attracting investors and guiding a company's strategic growth. It should address market needs and investor requirements and provide clear financial projections.

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

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

The length of a business plan can vary greatly from business to business. Regardless, gathering the basic information into a 15- to 25-page document is best. Any additional crucial elements, such as patent applications, can be referenced in the main document and included as appendices.

Common elements in many business plans include:

• Executive summary : This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations.
• Products and services : Describe the products and services the company offers or plans to introduce. Include details on pricing, product lifespan, and unique consumer benefits. Mention production and manufacturing processes, relevant patents , proprietary technology , and research and development (R&D) information.
• Market analysis : Explain the current state of the industry and the competition. Detail where the company fits in, the types of customers it plans to target, and how it plans to capture market share from competitors.
• Marketing strategy : Outline the company's plans to attract and retain customers, including anticipated advertising and marketing campaigns. Describe the distribution channels that will be used to deliver products or services to consumers.
• Financial plans and projections : Established businesses should include financial statements, balance sheets, and other relevant financial information. New businesses should provide financial targets and estimates for the first few years. This section may also include any funding requests.

Investors want to see a clear exit strategy, expected returns, and a timeline for cashing out. It's likely a good idea to provide five-year profitability forecasts and realistic financial estimates.

2 Types of Business Plans

Business plans can vary in format, often categorized into traditional and lean startup plans. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

• Traditional business plans : These are detailed and lengthy, requiring more effort to create but offering comprehensive information that can be persuasive to potential investors.
• Lean startup business plans : These are concise, sometimes just one page, and focus on key elements. While they save time, companies should be ready to provide additional details if requested by investors or lenders.

Why Do Business Plans Fail?

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

How Often Should a Business Plan Be Updated?

How frequently a business plan needs to be revised will depend on its nature. Updating your business plan is crucial due to changes in external factors (market trends, competition, and regulations) and internal developments (like employee growth and new products). While a well-established business might want to review its plan once a year and make changes if necessary, a new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.

What Does a Lean Startup Business Plan Include?

The lean startup business plan is ideal for quickly explaining a business, especially for new companies that don't have much information yet. Key sections may include a value proposition , major activities and advantages, resources (staff, intellectual property, and capital), partnerships, customer segments, and revenue sources.

A well-crafted business plan is crucial for any company, whether it's a startup looking for investment or an established business wanting to stay on course. It outlines goals and strategies, boosting a company's chances of securing funding and achieving growth.

As your business and the market change, update your business plan regularly. This keeps it relevant and aligned with your current goals and conditions. Think of your business plan as a living document that evolves with your company, not something carved in stone.

University of Oregon Department of Economics. " Evaluation of the Effectiveness of Business Planning Using Palo Alto's Business Plan Pro ." Eason Ding & Tim Hursey.

Bplans. " Do You Need a Business Plan? Scientific Research Says Yes ."

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

Harvard Business Review. " How to Write a Winning Business Plan ."

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

SCORE. " When and Why Should You Review Your Business Plan? "

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Prepare a business plan for growth

Planning is key to any business throughout its existence. Every successful business regularly reviews its business plan to ensure it continues to meet its needs. It's sensible to review current performance on a regular basis and identify the most likely strategies for growth.

Once you've reviewed your progress and identified the key growth areas that you want to target, it's time to revisit your business plan and make it a road map to the next stages for your business.

This guide will show how you can turn your business plan from a static document into a dynamic template that will help your business both survive and thrive.

The importance of ongoing business planning

What your business plan should include, drawing up a more sophisticated business plan, plan and allocate resources effectively, use targets to implement your business plan, when and how to review your business plan.

Most potential investors will want to see a business plan before they consider funding your business. Although many businesses are tempted to use their business plans solely for this purpose, a good plan should set the course of a business over its lifespan.

A business plan plays a key role in allocating resources throughout a business. It is a tool that can help you attract new funds or that you can use as a strategy document. A good business plan reveals how you would use the bank loan or investment you are asking for.

Ongoing business planning means that you can monitor whether you are achieving your business objectives . A business plan can be used as a tool to identify where you are now and in which direction you wish your business to grow. A business plan will also ensure that you meet certain key targets and manage business priorities.

You can maximise your chances of success by adopting a continuous and regular business planning cycle that keeps the plan up-to-date. This should include regular business planning meetings which involve key people from the business.

To find out more, see our guides on how to review your business performance and how to assess your options for growth .

If you regularly assess your performance against the plans and targets you have set, you are more likely to meet your objectives. It can also signpost where and why you're going astray. Many businesses choose to assess progress every three or six months.

The assessment will also help you in discussions with banks, investors and even potential buyers of your business. Regular review is a good vehicle for showing direction and commitment to employees, customers and suppliers.

Defining your business' purpose in your business plan keeps you focused, inspires your employees and attracts customers.

Your business plan should include a summary of what your business does, how it has developed and where you want it to go. In particular, it should cover your strategy for improving your existing sales and processes to achieve the growth you desire.

You also need to make it clear what timeframe the business plan covers - this will typically be for the next 12 to 24 months.

The plan needs to include:

• The marketing aims and objectives , for example how many new customers you want to gain and the anticipated size of your customer base at the end of the period. To find out about marketing strategy, see our guide on how to create your marketing strategy .
• Operational information such as where your business is based, who your suppliers are and the premises and equipment needed.
• Financial information , including profit and loss forecasts, cash flow forecasts, sales forecasts and audited accounts.
• A summary of the business objectives, including targets and dates.
• If yours is an owner-managed business, you may wish to include an exit plan . This includes planning the timing of your departure and the circumstances, e.g. family succession, sale of the business, floating your business or closing it down.

If you intend to present your business plan to an external audience such as investors or banks, you will also need to include:

• your aims and objectives for each area of the business
• details of the history of the business, including financial records from the last three years - if this isn't possible, provide details about trading to date
• the skills and qualifications of the management involved in your business
• information about the product or service, its distinctiveness and where it fits into the marketplace

If your business has grown to encompass a series of departments or divisions, each with its own targets and objectives, you may need to draw up a more sophisticated business plan.

The individual business plans of the departments and separate business units will need to be integrated into a single strategy document for the entire organisation.

This can be a complex exercise but it's vital if each business unit is to tread a consistent path and not conflict with the overall strategy.

This is not just an issue for large enterprises - many small firms consist of separate business units pursuing different strategies.

To draw up a business plan that marries all the separate units of an organisation requires a degree of co-ordination. It may seem obvious, but make sure all departments are using the same planning template.

Objectives for individual departments

It's important for each department to feel that they are a stakeholder in the plan. Typically, each department head will draft the unit's business plan and then agree on its final form in conjunction with other departments.

Each unit's budgets and priorities must be set so that they fit in with those of the entire organisation. Generally, individual unit plans are required to be more specific and precisely defined than the overall business plan. It's important that the objectives set for business units are realistic and deliverable. However complex it turns out to be, the individual business unit plan needs to be easily understood by the people whose job it is to make it work. They also need to be clear on how their plan fits in with that of the wider organisation.

The business plan plays a key role in allocating resources throughout a business so that the objectives set in the plan can be met.

Once you've reviewed your progress to date and identified your strategy for growth, your existing business plan may look dated and may no longer reflect your business' position and future direction.

When you are reviewing your business plan to cover the next stages, it's important to be clear on how you will allocate your resources to make your strategy work.

For example, if a particular business unit or department has been given a target, the business plan should allocate sufficient resources to achieve it. These resources may already be available within the business or may be generated by future activity.

In practice this could mean recruiting more office staff, spending more on marketing or buying more supplies or equipment. You may want to provide funds through current cash flow, generating more profit or seeking external funding. In general, it is always better to fund future growth through revenue generation.

However, you should do some precise budgeting to decide on the right level of resourcing for a particular unit or department. It's important that resources are prioritised, so that areas of a business which are key to delivering the overall aims and objectives are adequately funded. If funding isn't available this may involve making cutbacks in other areas.

A successful business plan should incorporate a set of targets and objectives.

While the overall plan may set strategic goals, these are unlikely to be achieved unless you use SMART objectives or targets, i.e. S pecific, M easurable, A chievable, R ealistic and T imely.

Targets help everyone within a business understand what they need to achieve and when they need to achieve it.

You can monitor the performance of employees, teams or a new product or service by using appropriate performance indicators . These can be:

• sales or profit figures over a given period
• milestones in new product development
• productivity benchmarks for individual team members
• market-share statistics

Targets make it clearer for individual employees to see where they fit within an organisation and what they need to do to help the business meet its objectives. Setting clear objectives and targets and closely monitoring their delivery can make the development of your business more effective. Targets and objectives should also form a key part of employee appraisals, as a means of objectively addressing individuals' progress.

Once you've drawn up your new business plan and put it into practice, it needs to be continually monitored to make sure the objectives are being achieved. This review process should follow an assessment of your progress to date and an analysis of the most promising ways to develop your business. To find out more about these stages see our guides on how to review your business performance and how to assess your options for growth .

This process is called the business plan cycle . In some businesses, the cycle may be a continuous process with the plan being regularly updated and monitored. For most businesses, an annual plan - broken down into four quarterly operating plans - is sufficient. However, if a business is heavily sales driven, it can make more sense to have a monthly operating plan, supplemented where necessary with weekly targets and reviews.

It's important to keep in mind that major events in your business' target marketplace (e.g. competitor consolidation, acquisition of a major customer) or in the broader environment (e.g. new legislation) should trigger a review of your strategic objectives.

Regardless of whether or not there are fixed time intervals in your business plan, it must be part of a rolling process, with regular assessment of performance against the plan and agreement of a revised forecast if necessary.

Original document, Prepare a business plan for growth , © Crown copyright 2009 Source: Business Link UK (now GOV.UK/Business ) Adapted for Québec by Info entrepreneurs

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Trump’s Plans Could Spur Inflation While Slowing Growth, Study Finds

A nonpartisan economic analysis warned that deporting migrants and increasing tariffs would damage the U.S. economy.

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By Alan Rappeport

Reporting from Washington

Former President Donald J. Trump’s proposals to deport millions of migrants and impose new tariffs on imports from around the world would slash U.S. economic growth and employment and cause inflation to rebound sharply, according to a new analysis published on Thursday by the nonpartisan Peterson Institute for International Economics.

That analysis also assumed that Mr. Trump would try to encroach on the independence of the Federal Reserve. He has not floated such a proposal but has suggested that presidents should have input into the central bank’s policies and in the past tried to publicly push the Fed to lower interest rates.

The assessment of Mr. Trump’s policies was published days after the Republican presidential candidate pitched his plan to create a manufacturing “renaissance” in America by cutting corporate taxes and regulations and increasing tariffs by as much as 200 percent. Economists have been skeptical about the viability of many of Mr. Trump’s proposals, and some of them could be difficult to enact. But the new report argued that if taken together, the policies would inflict significant damage on the U.S. economy.

“While Trump promises to ‘make the foreigners pay,’ our analysis shows his policies will end up making Americans pay the most,” Warwick J. McKibbin, Megan Hogan and Marcus Noland wrote in their report.

The study from the Peterson Institute, which tends to favor free trade, examined the effects of three prominent parts of Mr. Trump’s agenda: deporting 8.3 million unauthorized migrants, levying 10 percent tariffs on all imports and 60 percent tariffs on imports from China, and eroding the Federal Reserve’s independence by allowing the president to influence interest rate policy.

The study suggested that Mr. Trump wanted to weaken the Fed’s independence, citing a Wall Street Journal article that said his allies were drawing up a plan to blunt the central bank’s ability to freely set interest rates. It also noted that Mr. Trump has said he believes presidents should have a “say” on interest rate policy.

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US East Coast port strike looms Tuesday with no talks scheduled

U.S. East and Gulf Coast port workers are set to go on strike at midnight on Monday with no talks currently scheduled to head off a stoppage threatening to halt container traffic from Maine to Texas and cost the economy as much as $5 billion a day.

China's massive stimulus misfire

The new measures are supposed to reignite the economy. They won't.

Sure, Wall Street. Go ahead. Ride the dragon.

There was a moment of grace on Tuesday for investors, market analysts, and finance's top brass when Beijing announced measures to try to reinvigorate China's croaking economy. Pan Gongsheng, a governor of the People's Bank of China, the country's central bank, announced that 800 billion yuan, or about $114 billion, would be injected into the stock market. Policymakers also said they were discussing raising a fund designed to stabilize stocks and announced rules allowing Chinese banks to keep less money in reserve, freeing up 1 trillion yuan to go out asloans. They also lowered the People's Bank of China's medium-term lending rate and key interest rates for banks and customers. Homebuyers can also now put less money down on their purchases — an attempt to breathe life into China's moribund property market.

The immediate reaction from Wall Street was all-out jubilee. Since the pandemic, China's leader, Xi Jinping, has done little to stop the bleeding in the country's property market or to get China's ailing consumers to start spending money again. The Shanghai Composite lost nearly a quarter of its value. American companies in China are getting crushed . Foreign investors are pulling record amounts of money out of the country. This week's announcements sent Wall Street into a state of rapture, hoping that the Chinese Communist Party is now, as in years past, prepared to catch a falling knife. The Golden Dragon index — a collection of Nasdaq-traded companies that do most of their business in China — rallied 9% following the announcements. Financial-news talking heads heralded this as a clear sign from Beijing that policymakers were getting real about stopping China's descent into a deflationary funk. There would be more mergers and acquisitions! Lower rates could mean more private-equity activity! The famous Beijing "bazooka" could finally be on the way!

But honey, they are delusional.

Xi's Beijing lacks the will and the power to turn China's economy around. At the heart of its problems is a lack of consumer demand and a property market going through a deep, slow-moving correction. Xi is ideologically opposed to jump-starting consumer spending with direct stimulus checks. No will. As for the power, Goldman Sachs estimated that returning China's apartment inventory to 2018 levels would require 7.7 trillion yuan. China's property market is so overbuilt and indebted that the trillions in stimulus needed to fix the problem — and make the local governments that financed it whole again — would make even a rapacious fundraiser like OpenAI CEO Sam Altman blush . The "stimulus" China's policymakers are offering is a drop in a well, and they know that. Wall Street should too. But I guess they haven't learned.

The measures the CCP announced are intended to make it easier for Chinese people to access capital and buy property, but access to debt is not the problem here. People in the country do not want to spend money because they are already sitting on large amounts of real-estate debt tied to declining properties. Seventy percent of Chinese household wealth is invested in property, which is a problem since analysts at Société Genéralé found that housing prices have fallen by as much as 30% in Tier 1 cities since their 2021 peak. Land purchases helped fund local governments so they could spend on schools, hospitals, and other social services — now that financing mechanism is out of whack. Sinking prices in these sectors, or what economists call deflation, has spread to the wider economy. The latest consumer price inflation report showed that prices rose by just 0.3% in August compared to the year before, the lowest price growth in three years, prompting concerns that deflation will take hold, spreading to wages and killing jobs.

It's clear that Beijing's recent moves won't solve China's core economic problems.

Given that context, many Chinese people are not eager to spend. Consumers are trading down to cheaper products , and second-quarter retail sales grew by only 2.7% from the previous year. In a recent note to clients, the business surveyor China Beige Book said that business borrowing had barely budged since all-time lows in 2021, during the depths of the pandemic. Bottom line: It doesn't matter how cheap and easy it is to access loans if no one wants to take one out.

"These mostly supply-side measures would certainly be helpful if the problem in China was that production was struggling to keep up with growth in demand," Michael Pettis, a professor of finance at Peking University and a Carnegie Endowment fellow, said in a recent post on X. "But with weak demand as the main constraint, these measures are more likely to boost the trade surplus than GDP growth."

The most direct way to spur demand in a deflating economy is to send checks to households. But again, Xi doesn't want to do that . The Chinese president is a follower of the Austrian economist Friedrich Hayek , who believed that direct stimulus distorts markets and leads to uncontrollable inflation. This flies in the face of what economists would recommend for China's situation, but those who criticize the way Xi does things tend to disappear .

It's clear that Beijing's recent moves won't solve China's core economic problems. And Wall Street's excitement misses another key problem: The measures aren't even all that big. Call it a bazooka or a blitz or whatever, but this stimulus is tiny compared with what we've seen from the CCP in the past. In 2009, the government dropped 7.6 trillion yuan to save the economy during the global financial crisis. In 2012, it dropped $157 billion on infrastructure projects. In 2015, it injected over $100 billion into ailing regional banks and devalued its currency to boost flagging exports . The CCP has shown that it's willing to take dramatic action to stabilize the economy. The price of that action, though, is massive debt built up all over the financial system, held especially by property companies, state-owned enterprises, and local governments. In the past, monetary easing calmed gyrations in the financial system, but growth has never been this slow, and debt has never been this high. The problem does not match the price tag here.

The Chinese Communist Party has a bubble on its hands, and it doesn't want to blow much more or see it burst in spectacular fashion. Plus, there's Xi, who seems fairly uninterested in restructuring the property market. He wants government investment to focus on developing frontier technology and boosting exports to grow the economy out of its structural debt problems. But those new streams of income have yet to materialize for China, and establishing them will take time and working through trade conflict, principally with the US and the European Union. Consider the easing measures we're seeing as something like a moment for markets to catch their breath — a respite from what has been a constant stream of bad economic news. But a respite is all it is.

Linette Lopez is a senior correspondent at Business Insider.

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SBI plans to introduce innovative products to boost deposit growth: Chairman

Customers are becoming financially more aware and demanding, looking for innovative investment instruments, says sbi chairman c s setty.

In a bid to attract depositors, State Bank of India is contemplating to come out with innovative products including a combo product of recurring deposit and SIP, said the bank's chairman C S Setty.

With the economy progressing, he said, customers are becoming financially more aware and demanding, and have started looking for innovative investment instruments.

Today the customers are looking at the value proposition as financial literacy improves and the concept of asset allocation will gain greater importance, he said.

"Obviously, nobody wants to put everything in a risky asset or a speculative asset...banking products will always be part of the basket. So, we are trying to bring products which will appeal to them," he told PTI in an interview.

"We are trying to bring innovation in some of the conventional products like recurring deposit, which is actually a conventional SIP...Maybe, we can combine both fixed deposit/recurring deposit and SIP, a combo product that could be digitally accessible," he said.

These are the innovations which the bank is thinking of in terms of popularising the deposit products among Gen Z.

Also read: SBI appoints Joohi Smita Sinha as the new CGM for Bengaluru Circle

Besides, he said, the bank has undertaken a massive outreach programme for deposit mobilisation.

"As I said, for us, deposit mobilisation is a franchisee job. We have the largest number of physical outlets across the country. We are leveraging our huge physical reach by initiating outreach programmes where customers are contacted. Today, the effort on part of SBI is to reach out to every customer, both existing as well as new customers," he said.

Stressing that deposit is a function of interest rate and customer service, Setty said, "obviously, there is a requirement of adequately compensating our customers, but we would not like to fight in the rate war. I think most of the banks are also pursuing a balancing act of giving the right rate as well as right service. So, our focus is on improving the customer service and also adequately compensating our customers."

In addition, SBI had given thrust on opening new accounts and almost 50,000 to 60,000 savings bank accounts were opened in a day.

On the fixed deposit side, Setty said, almost 50 per cent of our fixed deposits are garnered through the digital channels only and also many accounts are opened through digital means.

Meanwhile, he also said that SBI is aiming to become the first Indian financial firm to cross the milestone of ₹1 lakh crore net profit in the next 3-5 years.

Also read: SBI sanctions ₹10,050 cr to DVC’s proposed 1600 MW ultra super critical thermal power project in Jharkhand

SBI recorded a standalone net profit of ₹61,077 crore in FY24, registering a growth of 21.59 per cent.

"We have potential. Definitely, we would like to be the first company in India to reach that milestone," Setty said when asked if it is possible to cross ₹1 lakh crore in the next 3-5 years.

However, he said, "while profits, market capitalisation etc. are extremely important elements for our organisation, we give equal thrust on customer-centricity and it acts as a fundamental aspect of our operations."

With regard to corporate loan demand, Setty said, the bank has already got a ₹4 lakh-crore strong credit pipeline from India Inc and capital expenditure by the private sector is expected to pick up in the second half of the fiscal year.

• Also read: Banks not getting into rate war, says SBI Chief Setty

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