jobcentre plus business plan

• Job Centre Guide
• JobCentre Plus
• Search for a Job
• CV / Resume Advice
• Job Interview Tips
• About Online Job Searching
• Career Sites
• For Employers
• Best Jobs For Me Quiz
• Workplace Wellness
• Job Seeking Advice

Help with moving from benefits to work - Starting Your Own Business

Your Jobcentre Plus work coach at your local Jobcentre Plus can tell you about resources which can help you to start your own business. You may be eligible for 'New Enterprise Allowance' if you are over 18 years old and you can prove that your business idea could work. You or your partner needs to be receiving either Jobseeker's Allowance, Employment and Support Allowance if you are in the work related activity group, or Income Support if you are a lone parent, sick, or disabled.

You will be assigned a business mentor who will be able to provide advice and support on either becoming self-employed or starting your own business and beginning to trade.

Once the business plan has been created and approved, you will be able to receive a weekly allowance worth up to £1,274 over 26 weeks and a loan for help with start up costs.

You may be able to get extra support through an Access to Work grant if you have a disability, health or mental health condition and you are receiving New Enterprise Allowance.

When starting a business, you first need to ensure that you have a realistic idea which you can turn into a successful product or service to others. There is local support available if you need help with this such as Growth Hubs in England, Business Gateway in Scotland, NI Business Info in Northern Ireland and Business Wales in Wales.

To turn your idea into a business, you will need to follow certain steps to reach your goal. You will need to research your market to ensure that you have identified potential customers. You will need to then develop and test your product or service with the customers that will be using them/it to ensure that a demand is present.

If you think your idea could be successful, you will need to work with other partners and suppliers in order to fulfill order or requests for services. You will then need to set up your business depending on the legal structure that is right for you (sole trader or limited company) and then look for funding. Funding can come from many different sources such as savings, friends and family, loans or government backed schemes.

Jobcentre Plus Business Plan 2010 2011

• Download HTML
• Download PDF

• Health & Fitness

• Home & Garden

• IT & Technique

• Government & Politics

• Arts & Entertainment

• Uncategorized

• Current Events

• Food & Drink

Moving Into Work Schemes from Jobcentre Plus

If you are a single parent and you’re claiming Jobseeker’s Allowance or Employment and Support Allowance, you may be enrolled on to one of Jobcentre Plus’s schemes which are aimed at helping people who are currently unemployed move into work.

Please note: if you are a foster parent, full-time carer, pregnant, or thinking of working fewer than 16 hours a week the rules may be different, so contact your local Jobcentre for advice.

Moving Into Work schemes

Jobcentre Plus offers different schemes to support parents with the transition into paid work. Some are voluntary but some are compulsory, and you could have your benefits stopped (‘sanction’) if you refuse to attend. Before you commit to joining one of the voluntary schemes, make sure you understand the potential sanctions that might occur if you fail to fully participate in the scheme.

Whilst you’re claiming jobseeker’s allowance, you must be available for and actively seeking work. As such, you can be referred to any of the schemes to help increase your chances of finding paid work.

If you are claiming employment and support allowance, you will need to show that you’re taking part in work-related activity, once your youngest child reaches 3 years of age. You won’t necessarily be expected to start work, but you will be expected to take certain steps to improve your chances of finding paid work once your employment and support allowance ends.

Voluntary schemes

Work clubs:  these are a great place to meet other individuals looking for jobs, share information and skills, make useful contacts and receive support. Services at the work club will vary from place to place but might include writing a CV, visiting different workplaces or receiving advice on interview techniques. They are normally run by independent organisations, rather than by Jobcentre Plus, e.g. a local community college. Ask you Jobcentre Plus adviser to refer you to a local club.

Enterprise clubs:  these clubs are aimed at helping support individuals make the transition from being unemployed to self-employed. Run by independent organisations, e.g. a community business or college, the services they offer will vary but might include guidance from local businesspeople, support with writing a business plan or financial and legal advice.

New enterprise allowance:  this is a great option if you’re thinking of setting up your own business. The scheme provides business mentoring, including advice and support from a local businessperson, and financial support, including a loan of up to £1,000 to cover start-up costs, and a weekly allowance of £65 for the first 13 weeks of the scheme, then £33 for 13 weeks thereafter.

Please note, if you decide to join this scheme, you will be expected to fully participate and if you fail to do so you may receive a sanction on your benefit. If you’ve been referred to the compulsory ‘Work Programme’ you will not be able to join this scheme.

Work together:  this scheme is designed to help you find a voluntary work placement in your local area. If you’re claiming jobseeker’s allowance you will be required to continue to sign on and actively look for paid work.

Work experience:  aimed at individuals aged 16-24 who are claiming jobseeker’s allowance, this scheme provides individuals with a work experience placement lasting between 2 and 8 weeks. You will work roughly 25-30 hours each week and will continue to receive jobseeker’s allowance, provided that you’re still available for, and actively seeking, paid work.

Sector-based work academies:  this scheme provides training and work placements that last for up to 6 weeks and end either with an interview or support with the application process. You can receive you benefits during the scheme and may get additional help with travel and childcare costs. This scheme is only available in certain areas, so check with your local Jobcentre plus whether it is available in your local area.

Work choice for disabled parents:  this scheme is designed for individuals with a disability who may need some additional support with finding paid work. You may only take part in this scheme if none of the other schemes are able to meet your needs. To qualify, you must have a recognised disability, defined as a physical or mental impairment that has a ‘substantial’ and ‘long-term’ negative effect on your ability to do normal daily activities. After taking part in the scheme for 6 months you will be expected to actively seek work that involves 16 hours or more each week. Support from the scheme may include coaching in particular areas or tasks, support with preparing you for work, or working with an employer to adapt tasks so that you are able to carry them out.

Compulsory schemes

Work Programme

This scheme is run by private organisations and can last up to two years (or until you find paid work). Activities and support include help with writing your CV, improving your interview technique, confidence building and work experience.

If you are claiming jobseeker’s allowance or employment and support allowance the Jobcentre may refer you to this scheme, in which case participation is compulsory. Referrals to this scheme are normally made for individuals over the age of 25 who have been claiming jobseeker’s allowance for 12 months, however you may be referred if you are aged 18-24.

Failure to attend as required may result in your benefit being reduced or stopped altogether.

Skills Conditionality

This scheme provides certain training for individuals who need to boost their skills in order to find paid work. Training might be in English, maths or IT. Additionally, a career adviser may be available to help you write a personal action plan for looking for paid work.

You must be referred to this scheme by your local Jobcentre Plus or your Work Programme adviser. If you are enrolled on this scheme your attendance and participation is compulsory. If you fail to take part as required, your benefit can be stopped.

Whist you are taking part in this scheme your benefit will continue and you should also receive payment for any travel and childcare costs. You may also still claim jobseeker’s allowance, provided that you’re available for, and actively seeking, paid work.

Help To Work

If you have been through the Work Programme but have still failed to find paid work, you may be referred to this scheme. It will be up to your work coach at your Jobcentre Plus to refer you to this scheme, and they may decide that you may need to go to the jobcentre every day, or accept intensive support from Jobcentre Plus. Your work coach will discuss with you the areas you need to improve on to increase your chances of finding work, then arrange support as necessary.

Once your work coach has decided on the best course of action, your participation is compulsory, and failure to take part without a good reason may result in your benefit being stopped.

Your benefit may be reduced or stopped, known as a sanction, in the following circumstances:

• If you fail to attend a compulsory scheme as instructed
• If you refuse to take part in a compulsory scheme
• If you commit to a voluntary scheme and fail to participate as agreed

Financial help

If you find a paid job and start working 16 hours or more each week, you may be entitled to extra financial help, including the following:

Working tax credit or universal credit:  this is income based and can also include help with childcare costs.

Housing benefit:  if you were claiming benefits for the 26 weeks prior to getting your job you may be able to apply for an additional 4 weeks of housing benefit or help with mortgage interest. Depending on the income you will be earning in your new job, you may still be able to claim housing benefit or universal credit.

Flexible support fund:  this helps with costs like travel or buying suitable clothes for work. Your Jobcentre adviser will be able to give you more information about whether you might be able to apply for it.

Related Articles

• Hard Skills and Soft Skills: A Quick Guide
• Searching and Applying for Jobs: A Beginners Guide
• Completing Job Applications: A Beginners Guide
• Work and Childcare

Leave a Reply Cancel reply

You must be logged in to post a comment.

Support 110 years of independent journalism.

• Spotlight on Policy
• Economic Growth

Why we need a better employment service for jobseekers

Jobcentre Plus does not help the vast majority find work, says the director of the Institute for Employment Studies.

By Sarah Dawood

Jobcentre Plus, the official government agency for jobseekers, cannot tackle the recruitment crisis because it is not fit for purpose, says the director of the Institute for Employment Studies (IES).

Tony Wilson was speaking in parliament to the Work and Pensions Committee – a cross-party group of MPs tasked with scrutinising the government’s policies on employment – during a session on Plan for Jobs.

The £350bn Plan for Jobs was launched at the start of the pandemic to boost employment through schemes such as: Kickstart, aimed at young jobseekers; Restart, aimed at those looking for a new career; and the Coronavirus Job Retention Scheme, which provided grants to employers so they could furlough staff and continue paying up to 80 per cent of their wages.  

Wilson told MPs that while the Plan for Jobs had helped avoid an “unemployment crisis”, the UK was now facing a “participation and recruitment crisis” as vacancies hit a record level but unemployment also remains high.

To access support from a work coach at Jobcentre Plus an individual needed to “not only be claiming benefits but the right bit of benefits”, he said, adding that there was too much red tape and too many criteria to meet. As a result, many people were turning to the National Careers Service for help, which is focused on careers advice rather than accessing a specific job.

The government should invest in a more inclusive public employment service, Wilson concluded. “How did the National Careers Service become our public employment service?” he asked. “Why aren’t people able to talk to Jobcentre Plus? We have more than 20,000 advisers, yet people can’t book an appointment. The starting point is to have a genuine public employment service – somewhere you can go to find a job.”

The latest research shows that despite there now being plenty of job vacancies, there are 570,000 fewer people in work than before Covid-19 . This was put down to several contributing factors during the parliament session, including those aged 50 to 64 retiring early after being furloughed – there are now 180,000 fewer over fifties in work than before the pandemic – and younger people deciding not to return to sectors they worked in before 2020, such as hospitality. Due to both Brexit and the pandemic, fewer migrants are settling permanently in the UK, meaning certain industries fuelled by international workers are struggling to fill roles.

Those from disadvantaged and minority groups are also finding it harder to get back into work. Employment support for people with disabilities is particularly lacking, said Wilson – in 2020, the government allegedly spent less on specialist employment support for disabled people than they did on the furlough scheme in one week . The Office for National Statistics (ONS) found that around half of disabled people in the UK aged 16-64 were unemployed in 2020, compared with only two in ten non-disabled people.

“We just don’t spend enough money on it,” said Wilson. “I don’t think it’s acceptable given that disabled people are [far] more likely to be out of work than non-disabled people.” Devolving employment support to local authorities and better alignment between these and health services could help to improve job access for disabled people, he added.

Hannah Slaughter, an economist at the Resolution Foundation think tank, was also present at the Plan for Jobs session. She told the committee that unemployment is still high for younger people, especially those from minority ethnic groups, in particular the Black community. This is partly down to sectors such as hospitality, leisure and those requiring zero-hours contracts being hardest hit by job losses during the pandemic. “We’re seeing the return of young people into the labour force but employment levels are not back to where they were,” she said. “Schemes like Kickstart and Restart need to step up to help these groups of people.” She also suggested that a scheme like Kickstart particularly tailored to the 50-64 age group could help to encourage older people back into work.

Sam Avanzo Windett, deputy director at the Learning and Work Institute, added that the government should tailor more employment schemes and policies to “overlooked groups” rather than the general population. “Some of the bigger national programmes have not fared so well for people with disabilities,” she said.

Businesses also have a corporate responsibility to hire more inclusively and engage with disadvantaged groups, said Wilson, particularly those that hire shift workers. “They have a responsibility to do better,” he said. “[This means] more inclusive recruitment, engaging with disadvantaged groups, and better notice around shifts.”

Watch the full committee session here .

[See also: What we’re getting wrong about the Great Resignation ]

The Saturday Read

Morning call.

• Administration / Office
• Arts and Culture
• Board Member
• Business / Corporate Services
• Client / Customer Services
• Communications
• Construction, Works, Engineering
• Education, Curriculum and Teaching
• Environment, Conservation and NRM
• Facility / Grounds Management and Maintenance
• Finance Management
• Health - Medical and Nursing Management
• HR, Training and Organisational Development
• Information and Communications Technology
• Information Services, Statistics, Records, Archives
• Infrastructure Management - Transport, Utilities
• Legal Officers and Practitioners
• Librarians and Library Management
• OH&S, Risk Management
• Operations Management
• Planning, Policy, Strategy
• Printing, Design, Publishing, Web
• Projects, Programs and Advisors
• Property, Assets and Fleet Management
• Public Relations and Media
• Purchasing and Procurement
• Quality Management
• Science and Technical Research and Development
• Security and Law Enforcement
• Service Delivery
• Sport and Recreation
• Travel, Accommodation, Tourism
• Wellbeing, Community / Social Services

Content from our partners

What you need to know about private markets

Work isn’t working: how to boost the nation’s health and happiness

The dementia crisis: a call for action

The net zero transition is not a silver bullet

The Policy Ask with Mike Clancy: “Who inspires me? Tony Blair”

The Conservatives treat social care as an afterthought

• Sources of Business Finance
• Small Business Loans
• Small Business Grants
• Crowdfunding Sites
• How to Get a Business Loan
• Small Business Insurance Providers
• Best Factoring Companies
• Types of Bank Accounts
• Best Banks for Small Business
• Best Business Bank Accounts
• Open a Business Bank Account
• Bank Accounts for Small Businesses
• Free Business Checking Accounts
• Best Business Credit Cards
• Get a Business Credit Card
• Business Credit Cards for Bad Credit
• Build Business Credit Fast
• Business Loan Eligibility Criteria
• Small-Business Bookkeeping Basics
• How to Set Financial Goals
• Business Loan Calculators
• How to Calculate ROI
• Calculate Net Income
• Calculate Working Capital
• Calculate Operating Income
• Calculate Net Present Value (NPV)
• Calculate Payroll Tax

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

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

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

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

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

Let’s get started.

What Do You Need A Business Plan For?

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

1. Secure Funds

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

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

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

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

2. Monitor Business Growth

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

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

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

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

3. Measure Business Success

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

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

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

4. Document Your Marketing Strategies

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

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

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

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

How to Write a Business Plan Step-by-Step

1. create your executive summary.

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

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

A good executive summary should do the following:

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

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

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

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

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

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

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

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

2. Add Your Company Overview

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

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

Your company overview should contain the following:

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

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

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

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

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

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

• Mission Statement

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

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

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

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

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

Business Objectives

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

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

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

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

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

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

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

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

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

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

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

Market Analysis

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

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

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

• Market Research

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

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

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

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

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

How to Quantify Your Target Market

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

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

What Does a Good Market Analysis Entail?

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

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

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

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

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

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

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

Competitive Analysis

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

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

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

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

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

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

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

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

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

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

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

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

Direct vs Indirect Competition

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

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

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

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

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

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

Factors that Differentiate Your Business from the Competition

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

1. Cost Leadership

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

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

2. Product Differentiation

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

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

3. Market Segmentation

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

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

4. Define Your Business and Management Structure

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

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

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

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

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

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

Management Team

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

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

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

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

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

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

Key Questions to Answer When Structuring Your Management Team

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

Additional Tips for Writing the Management Structure Section

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

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

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

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

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

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

Organizational Chart

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

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

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

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

5. Describe Your Product and Service Offering

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1. Avoid Technical Descriptions and Industry Buzzwords

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

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

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

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

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

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

3. Long or Short Products or Services Section

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

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

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

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

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

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

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

4. Describe Your Relationships with Vendors or Suppliers

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

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

5. Your Primary Goal Is to Convince Your Readers

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

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

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

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

Key Questions to Answer When Writing your Products and Services Section

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

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

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

6. Show and Explain Your Marketing and Sales Plan

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

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

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

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

Outline Your Business’ Unique Selling Proposition (USP)

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

Target Market and Target Audience

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

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

Creating a Smart Marketing and Sales Plan

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

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

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

Your Positioning Statement

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Basic Rules to Follow When Pricing Your Offering

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

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

Pricing Strategy

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

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

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

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

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

Advertising

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

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

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

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

Public Relations

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

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

Content Marketing

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

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

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

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

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

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

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

Social Media

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

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

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

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

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

Strategic Alliances

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

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

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

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

Steps Involved in Creating a Marketing and Sales Plan

1. Focus on Your Target Market

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

2. Evaluate Your Competition

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

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

These questions can help you know your competition.

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

3. Consider Your Brand

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

4. Focus on Benefits

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

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

5. Focus on Differentiation

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

Key Questions to Answer When Writing Your Marketing and Sales Plan

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

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

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

7. Clearly Show Your Funding Request

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

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

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

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

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

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

Funding Request: Debt or Equity?

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

Case for Equity

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

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

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

Case for Debt

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

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

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

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

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

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

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

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

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

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

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

8. Detail Your Financial Plan, Metrics, and Projections

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

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

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

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

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

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

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

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

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

Use Graphs and Charts

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

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

Address the Risk Factors and Show Realistic Financial Projections

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

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

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

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

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

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

1. Sales Forecast

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

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

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

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

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

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

2. Personnel Plan

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

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

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

3. Income Statement

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

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

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

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

4. Cash Flow Statement

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

5. Balance Sheet

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

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

6. Exit Strategy

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

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

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

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

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

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

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

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

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

9. Add an Appendix to Your Business Plan

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

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

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

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

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

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

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

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

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

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

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

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

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

Tips and Strategies for Writing a Convincing Business Plan

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

1. Know Your Audience

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

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

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

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

2. Get Inspiration from People

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

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

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

3. Avoid Being Over Optimistic

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

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

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

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

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

4. Keep it Simple and Short

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

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

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

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

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

5. Make an Outline and Follow Through

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

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

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

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

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

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

6. Ask a Professional to Proofread

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

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

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

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

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

1. hubspot's one-page business plan.

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

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

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

2. Bplan’s Free Business Plan Template

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

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

3. HubSpot's Downloadable Business Plan Template

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

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

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

4. Business Plan by My Own Business Institute

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

The comprehensive template consists of a whopping 15 sections.

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

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

5. Score's Business Plan Template for Startups

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

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

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

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

6. Minimalist Architecture Business Plan Template by Venngage

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

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

7. Small Business Administration Free Business Plan Template

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

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

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

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

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

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

9. PandaDoc’s Free Business Plan Template

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

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

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

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

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

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

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

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

Alternatives to the Traditional Business Plan

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

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

Business Model Canvas (BMC)

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

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

Segments of the Business Model Canvas

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

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

Lean Canvas

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

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

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

Startup Pitch Deck

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

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

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

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

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

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

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

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

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

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

Business Plan FAQ

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

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

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

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

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

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

Exlore Further

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

Was This Article Helpful?

Martin luenendonk.

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

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

Cookies on GOV.UK

We use some essential cookies to make this website work.

We’d like to set additional cookies to understand how you use GOV.UK, remember your settings and improve government services.

We also use cookies set by other sites to help us deliver content from their services.

You have accepted additional cookies. You can change your cookie settings at any time.

You have rejected additional cookies. You can change your cookie settings at any time.

• Welfare reform
• Jobseeker's Allowance and Universal Credit back to work schemes
• Department for Work & Pensions

Universal credit: back to work schemes

Updated 28 June 2018

© Crown copyright 2018

This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected] .

Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.

This publication is available at https://www.gov.uk/government/publications/jobseekers-allowance-back-to-work-schemes/universal-credit

When you claim Universal Credit because you are unemployed and expected to look, or prepare for work, there are a range of opportunities available to develop your skills and experience to help you find work.

During your time on Universal Credit you and your work coach will agree on the steps you need to take to prepare for work now or in the future and you may be referred to one or more of these opportunities. For example if your English or maths needs improving, or if getting a recognised qualification would help get work in a particular sector.

A work experience placement with an employer will allow you to add some career history to your CV and gain many of the skills employers require.

Your work coach can tell you if the opportunities described in this guide are suitable for you.

This guide gives information about the different opportunities available to you, including what the Department for Work and Pensions ( DWP ) expect of you if you agree to start and whilst you attend. You should tell your work coach if you have concerns about what any opportunity, training or work experience, involves or what is required of you.

Your work coach will want you to ask questions so you can benefit from attending the most appropriate opportunity. Remember the reason we offer these opportunities is to help you prepare for and move into work.

Some opportunities are delivered by employers and others by organisations working with us to offer you the training and work experience you need. We refer to them as ‘providers’.

If, after reading this guide, you feel one or more of these opportunities would help you, please discuss it with your work coach. Your work coach can also discuss other local support available through your Jobcentre.

Please speak to your work coach if you need help understanding this guide, or have any other questions.

Please note:

This guide is intended for you if you are receiving Universal Credit and have agreed work related or work preparation activities described in your Claimant Commitment.

Training or other help to gain new skills

Work coaches check the skills you have and those you lack that are preventing you from starting work. If lacking certain skills is the main thing stopping you working, you can be referred to a skills assessment with a provider to get the training you need to learn these skills.

Sector based work academy

These opportunities are available if you live in England or Scotland. It will help you to develop the skills and behaviours employers are looking for in new employees. A sector based work academy offers training and work experience in a particular job type. At the end, you’ll either get a job interview or help with the employer’s application process.

Traineeship

Traineeships are available in England, and are designed to help young people aged 16 to 24 who don’t yet have appropriate work skills or experience. Traineeships provide the essential work preparation training, English and maths where appropriate and the work experience needed to prepare you for an apprenticeship or other job.

Work experience

You may be able to volunteer to do a work experience opportunity with an employer local to you. These opportunities usually last for 2 to 8 weeks, and you’ll normally be expected to attend for up to 30 hours a week giving you an ideal experience of the workplace.

New Enterprise Allowance

The New Enterprise Allowance is a scheme that helps people to start their own business, and offers business mentoring and financial support if you want to become self employed.

You’ll need to have your business idea assessed by a mentoring provider, and if you are accepted onto the scheme, you’ll then have support to produce your business plan.

You may also be able to apply for the weekly New Enterprise Allowance financial support.

Work Trials

Work Trials are a trial period for an actual job where both you and the employer can take part without further commitment. This is an ideal opportunity to make sure the job is right for you, before you start. Work Trial last for no more than 30 days, though they are likely to be shorter.

Benefit sanctions

A benefit sanction is when your money is stopped or reduced for a certain period. Sanctions usually happen if you haven’t met the conditions for getting benefit, including refusing to take part or complete certain activities or schemes.

If you don’t have the type of skills employers are looking for, you may be offered the support needed to improve your skills, including having your skills assessed, and/or attending training to help you get the skills needed to move into, and stay in work.

Your work coach may ask you to take action to improve your skills. You may be asked to:

• meet with a careers adviser to discuss your skills and job aims
• meet with a training provider (such as at a college) to discuss training
• complete a training course

This may be agreed as part of your Claimant Commitment. If so, you must complete this activity or your benefits may be reduced or stopped. This is called a benefit sanction.

A careers adviser will help you consider the type of jobs you might like to do, the skills you have and how training may improve your chances of finding work or a better paid job.

A training provider will look to assess:

• your English, maths, and Information & Computer Technology ( ICT ) skills
• your spoken language skills, if English is not your first language
• any job specific skills or qualifications you already have
• other work skills from previous jobs or work experience

How long does it last for?

If you are referred to attend a training course, how much time you spend training will depend on the type of course and the help you need to improve your skills. Training for specific jobs – such as customer service training – typically lasts one to two weeks. Training to improve your English, maths or computer skills will usually be longer. Your work coach will explain what the course involves and when you need to attend.

When can I take part?

When you attend your first work coach interview, your work coach will discuss with you if assessing your skills and starting appropriate training is suitable for you.

Do I have to attend?

If your work coach sends you to meet a careers adviser or a training provider, you must attend the appointment.

If you are required to attend training, you must attend and complete any activity agreed with your work coach and recorded on your Claimant Commitment.

If you fail to attend an appointment with a careers adviser or a training provider or you fail to attend any training course as agreed by your work coach, without good reason, your benefit could be reduced or stopped. This is called a benefit sanction.

If you do start training and you’re asked to leave because of gross misconduct (such as stealing, violence or verbal abuse), your benefit may be sanctioned.

Part 1 of the Welfare Reform Act 2012 and the Universal Credit Regulations 2013 will apply.

Find out more about sanctions .

Will I Get Help with Any Costs?

You may have to travel to where the training is held. You can get help for the cost of your journey by public transport and any appropriate childcare costs. Discuss this with your work coach who will be able to tell you if you qualify for help with costs and how you apply.

Will I still need to go to Jobcentre meetings and look for work?

If you claim Universal Credit, you will have accepted a Claimant Commitment that sets out what you need to do to keep in contact with your work coach and the things you must do to prepare for and look for work. If being on training will stop you going to Jobcentre meetings or doing other things set out in your Claimant Commitment, you must contact your work coach in advance.

What happens if I get a job?

Because you can still claim Universal Credit when you’re working, it’s important to tell us if you find paid work. If you’re working, you may no longer have to attend interviews with us and we might still be able to pay you Universal Credit. Keep in touch with us to make sure you don’t miss out on money you’re entitled to.

Sector based work academies are available in England and Scotland. They are designed to help people who are ready to start work, but who may need to learn the skills and behaviours that employers in particular industries look for in new employees.

If your work coach discusses a sector based work academy with you, you can decide whether or not to take part, but once you’ve agreed to join you must complete certain parts of the scheme. Your chances of getting and keeping a job with the host employer, or another employer offering similar work, will be improved by completing a sector based work academy.

The sector based work academy scheme is used by employers to help them recruit into job sectors with a high demand for staff. So the type of sector based work academy on offer locally will vary. A sector based work academy is designed to help you build confidence in a way that improves your job prospects and that will add to your CV.

The sector based work academy lasts up to 6 weeks and gives you training and work experience in a particular job type. At the end, you’ll get either a job interview or help with the employer’s application process.

If you are interested in starting a sector based work academy, speak to your work coach, who will discuss with you the kind of opportunities available in your local area and if a sector based work academy is suitable for you.

Deciding to accept the offer of a sector based work academy is entirely voluntary. But once you have agreed to start, you must complete the pre-employment training and attend the guaranteed job interview (if included).

If you fail to complete the parts of the sector based work academy you are required to do without good reason, your benefit could be reduced or stopped.

The sector based work academy also includes work experience. This is not something you will be required to do but it is in your interest to do so and we encourage you to take part wherever possible. Work experience is invaluable, and allows both you and the host employer to see whether you’re suited to the type of work on offer.

Your benefit will not be stopped or reduced (sanctioned) if you decide not to take up the work experience placement.

If you do start a sector based work academy and you’re asked to leave because of gross misconduct (such as stealing, violence or verbal abuse), including during work experience, your benefit may be sanctioned.

You may have to travel to the employer’s place of work. You can get help to cover the cost of your journey by public transport and any appropriate childcare costs. Discuss this with your work coach who will be able to tell you if you qualify for help with costs and how you apply.

You may have to travel to the employer’s place of work or to where the training is held. You can get help for the cost of your journey by public transport and any appropriate childcare costs.

Do I have to accept the job if it is offered to me following the guaranteed interview?

People receiving Universal Credit because of unemployment are required to take a job when offered. If you are offered a job or an apprenticeship following the sector based work academy guaranteed interview, your work coach may require you to accept it.

If this happens but you do not accept the job, it is called ‘refusal of employment’ and your benefit will be stopped or reduced (sanctioned) for not accepting the job unless you have a good reason. You should speak to your work coach to find out more information.

If you claim Universal Credit, you will have accepted a Claimant Commitment that sets out what you need to do to keep in contact with your work coach and the things you must do to prepare for and look for work. If being on the sector based work academy will stop you going to Jobcentre meetings or doing other things set out in your Claimant Commitment, you must contact your work coach in advance.

Traineeships

Traineeships are an opportunity to gain real work experience, job skills and improve your English and maths, if needed. The programme operates in England only and aims to unlock the great potential of young people, help them become “work ready” and prepare them for their future careers.

Designed to help young people aged 16 to 24 who don’t yet have the appropriate skills or experience, traineeships provide the essential work preparation training, English, maths (if you do not hold a Level 2 qualification) and work experience needed to secure an apprenticeship or employment

The training will be delivered by a local college or provider, and your work experience placement within a traineeship is delivered by an employer and designed with your needs in mind. So the type of placement on offer locally will vary. A traineeship is designed to help you build confidence in a way that improves your job prospects and adds to your CV.

A traineeship can last up to 6 months, however, on average most last around 3 months. On completion of your traineeship, you may be offered an apprenticeship or other job, but if not, the employer will offer you an exit interview to discuss what you have been doing, and to plan for the future.

A traineeship is open to you from day 1 of your claim, if you are interested in starting a traineeship, speak to your work coach who will discuss with you the kind of traineeships available in your local area and if a traineeship is suitable for you.

Deciding to accept the offer of a traineeship is entirely voluntary. Once you have agreed to attend the traineeship assessment, and you are receiving Universal Credit because you are unemployed, you must attend and complete the traineeship assessment. Your benefit will be stopped or reduced (sanctioned) if you decide not to attend or complete your traineeship assessment. After the assessment, it is in your best interest to attend and participate in all aspects of the traineeship designed for you, but it is not something you are required to do. Your benefit will not be stopped or reduced (sanctioned) if you decide not to take up or complete your traineeship.

You may have to travel to the employer’s place of work or to where the training is held. You can get help for the cost of your journey by public transport and any ppropriate childcare costs. Discuss this with your work coach who will be able to tell you if you qualify for help with costs and how you apply.

Do I have to accept the job if it is offered to me during or following the traineeship?

If you are offered a job during or following the traineeship, your work coach is likely to encourage you to accept it, and you will probably be required to accept it. If this happens and you do not accept the job, it is called ‘refusal of employment’ and you could be sanctioned for not accepting the job unless you have a good reason. You should speak to your work coach to find out more.

If you claim Universal Credit, you will have accepted a Claimant Commitment that sets out what you need to do to keep in contact with your work coach and the things you must do to prepare for and look for work. If being on the traineeship will stop you going to Jobcentre meetings or doing other things set out in your Claimant Commitment, you must contact your work coach in advance.

If you have little or no work history, work experience can help you to get experience with host employers which can add to your CV. Work experience is usually aimed at people aged 18 to 24 years, but can also be useful for older jobseekers. Your work coach will tell you what opportunities are available.

Why should I be interested in work experience?

Work experience gives you the chance to add some vital experience to the career section of application forms and your CV, including having a referee. It also helps with:

• improving your job prospects
• seeing what skills and behaviours employers want from people
• seeing how your skills fit into the workplace
• building your confidence
• showing an employer the skills that you have

What will being on work experience involve?

This will vary, but some examples include working in an office, warehouse, retail store or restaurant. Your duties will be explained by the host employer, but might include things like customer service, stock management or administrative duties.

You’ll need to ensure that you show the same standards of behaviours as other employees, especially:

• timekeeping
• personal hygiene and appearance
• following all Health & Safety rules given to you by the host employer

You can do work experience with a host employer in the area you live in. Work experience lasts for 2 to 8 weeks, and you’ll usually be expected to do 25 to 30 hours a week (unless you’ve agreed restrictions on the hours you can work, known as ‘availability’, with your work coach).

If the host employer offers you an apprenticeship (which is a paid job with training), and you accept, you can do up to four extra weeks of work experience while the paperwork for your apprenticeship is completed. You’ll keep getting benefit until your apprenticeship starts.

If you are on the Youth Obligation Support Programme (for 18 to 21 year old jobseekers) and have been unemployed for 6 months, you will be offered a guaranteed 3 month work experience opportunity, if you do not go on other work related training at this point, to help you achieve your job goals.

Work experience placements are open to you from day 1 of your claim, your work coach will discuss with you if there are placements suitable for you.

How can I find out about a work experience opportunity?

You may find an opportunity yourself or your work coach will identify what’s available, and depending on the employer you may have to go through an application process. This might mean completing an application form, or attending an informal interview. This process will help you to build up your application skills.

If you do find an opportunity yourself, it is important to inform your work coach who can ensure the employer is suitable and is offering a quality work experience opportunity.

Your work coach will ask you to sign a data consent form so they are able to share your information to the host employer.

Deciding to accept the offer of a work experience placement is entirely voluntary.

Once you have agreed to attend the work experience placement, it is in your best interest to attend and participate, but it is not something you are required to do.

Your benefit will not be stopped or reduced (sanctioned) if you decide not to take up or complete work experience.

You will have to travel to the employer’s place of work, you can get help for the cost of your journey by public transport and any appropriate childcare costs.

Do I have to accept the job if it is offered to me during or following work experience?

If you are offered a job during or following your work experience, your work coach is likely to encourage you to accept it, and you will probably be required to accept it. If this happens and you do not accept the job, it is called ‘refusal of employment’ and you could be sanctioned for not accepting the job unless you have a good reason. You should speak to your work coach to find out more information.

If you claim Universal Credit, you will have accepted a Claimant Commitment that sets out what you need to do to keep in contact with your work coach and the things you must do to prepare for and look for work. If being on the work experience placement will stop you going to Jobcentre meetings or doing other things set out in your Claimant Commitment, you must contact your work coach in advance.

The New Enterprise Allowance scheme offers business mentoring and financial support if you want to become self employed. You’ll get an interview with a mentoring partner organisation, who will carry out an initial assessment of your business idea.

If you’re accepted onto the New Enterprise Allowance scheme then you will work with a business mentor for approximately 8 weeks to produce a business plan. The business plan will then be subject to an approval process.

You can claim the New Enterprise Allowance financial support within 13 weeks of your business plan being approved.

You will not need to close your claim to get the New Enterprise Allowance provided that you continue to meet the other conditions of entitlement for Universal Credit.

You’ll be in the ‘mentoring stage’ of New Enterprise Allowance for up to 8 weeks (this can be extended to 12 weeks in exceptional circumstances). Your mentor can continue to support you for a further 6 months while you’re getting the weekly New Enterprise Allowance.

The weekly allowance is paid for up to 26 weeks, after approval of your business plan and closure of your benefit claim.

Anyone can join from day 1 of their claim to Universal Credit, unless:

• you have or have had a sanction because you left your last job voluntarily or were dismissed for misconduct. If so, you can’t join until you have claimed benefit for 13 weeks
• you stopped running your own business in the 3 months before benefit. You can’t join until you have claimed for 13 weeks, and your business idea must be demonstrably different from your previous business.

Your work coach will want to ensure you’re ready to join the New Enterprise Allowance scheme, and will discuss whether you have an established idea for your business and if you can commit to exploring further options to turn the idea into a reality.

If your work coach thinks you’re right for the New Enterprise Allowance scheme and you wish to proceed, then they will send you to the mentoring provider.

What happens if I claim Universal Credit?

You can join the New Enterprise Allowance Scheme when claiming Universal Credit as long as you qualify, in the same way as you would for Jobseeker’s Allowance.

Universal Credit works differently than other benefits, so you won’t need to close your claim. But other money that you get, including New Enterprise Allowance, may be taken into account when calculating your benefit amount.

What do I need to do while part of New Enterprise Allowance?

Once you’re accepted onto the scheme, you will need to meet these conditions:

• go to all meetings with mentor / mentoring provider organisation, where you’ve been given at least 24 hours’ notice
• do things each week to develop the business proposal
• tell Jobcentre Plus within 2 working days if the business idea is no longer being pursued and/or the mentoring relationship ends

If you don’t meet these conditions your benefit will be sanctioned unless you have good reason for why you didn’t do so.

My work coach is going to refer me to the New Enterprise Allowance scheme, but I’ve changed my mind. What should I do?

Before your work coach sets up the meeting with the mentoring provider, they’ll check if you still want to take part. If you don’t, this will not affect your Universal Credit claim as long as you tell your work coach before they make the referral. If you change your mind after you’ve been referred, but before you start the scheme, inform Jobcentre Plus of your decision as soon as possible. You will not be sanctioned if you change your mind before you start the scheme.

I have been accepted onto New Enterprise Allowance scheme and have decided self employment is not right for me. What should I do?

If you decide that self employment isn’t right for you while developing your business plan, you can leave the scheme without your benefit being sanctioned. It is essential that you inform Jobcentre Plus of your decision to leave the scheme within 2 working days to avoid a sanction being applied.

Will I still need to go to Jobcentre meetings?

Yes. You will still need to attend Jobcentre meetings and will be expected to supply evidence for how you are progressing your business ideas.

What if I get a job as well as, or instead of, being self employed?

The work and health programme.

The Work and Health Programme is delivered by private, public and voluntary and community sector providers to deliver sustained employment for disabled people, disadvantaged groups and the long term unemployed.

When you join the Work and Health Programme your provider will tell you about the support they will be able to give you and how they can help you. Together you’ll make an action plan of things you need to do to prepare for work.

When will I be referred to the Work and Health Programme?

If you are within the intensive work search regime in Universal Credit and have not moved into employment within 24 months of your claim you will be referred to the Work and Health Programme after 24 months.

Can I be referred before this?

You can volunteer to join the Work and Health Programme if you are:

• an ex-offender (someone who has completed a custodial sentence or a community sentence), or offender (someone who is serving a community sentence)
• an ex-carer
• a homeless person
• a former member of HM Armed Forces
• an HM Armed Forces reservist
• a partner of current or former Armed Forces personnel
• a person for whom a drug/alcohol dependency (including a history of) presents a significant barrier to employment
• a care leaver
• a young person in a gang
• a victim of domestic violence

Your Work and Health Programme provider will support you for 456 days (15 months), even if your benefit changes or you find a job.

If you find a job they can increase the support to 639 days (21 months) if you need this.

What will happen during the Work and Health Programme?

Because the Work and Health Programme is tailored to individuals the type of support will be personalised to the needs of each participant. Examples of the type of support available includes participants having a personal key worker with regular face to face contact, mentoring and peer support, integrated access to specialist support networks at a local level including health and wellbeing professionals and support from dedicated employer experts with knowledge of local job opportunities.

Where will my Work and Health Programme meetings be held?

Your Work and Health Programme provider will send you a letter to let you know the time, date and place of your meeting

What happens if I don’t go to meetings or do the activities they ask me to do?

Part 1 of the Welfare Reform Act 2012 and the Universal Credit Regulations 2013 will apply. You must complete any activity your provider tells you to do; this may include applying for employment opportunities or attending job interviews. If you don’t then your benefit will be sanctioned, unless you have good reason for why you didn’t do so. It’s very important that you tell your provider if you’re having problems or cannot take part in the required activity at any time for any reason.

Just like with your Jobcentre meetings, if you can’t go to a Work and Health Programme meeting you must let your provider know in good time.

What am I expected to do during the Work and Health Programme?

While you’re on the Work and Health Programme you must:

• do the things your provider ask you to do to prepare for work
• take part in all meetings and phone calls arranged for you by your provider
• apply for a job, attend a job interview or accept a job offer if told to by your provider
• take part in all meetings with your work coach
• tell your provider or your work coach straight away, if you can’t do something they’ve asked and give your reason
• let us and your provider know straightaway if your circumstances change

There are some people that we know are more likely to struggle when it comes to competing for jobs and securing employment. We also know that some employers can have doubts about some people, and they might be less likely to employ someone they have doubts about.

The purpose of a Work Trial is to overcome any remaining doubts an employer and/or you may have following a formal interview for a vacant post. In simple terms, for both parties, Work Trial is an opportunity to ‘try before you buy’.

You can start a Work Trial if the job the employer is actively trying to fill is one you are offered to apply for. This means that for the duration of the trial, you are the only person under consideration for the vacancy in question, meaning that the job is yours if both you and the employer are satisfied following the trial period.

The employer must have an actual vacancy that they are looking to fill:

• the vacancy must last for 16 hours per week or more
• the vacancy must be expected to last at least 13 weeks
• the vacancy must be based in the United Kingdom
• the vacancy will not be in an occupation or sector that DWP deems as inappropriate

These crucial points give Work Trial its unique identity and separate it from Work Experience or other work based training which might be undertaken within other labour market programmes.

They are designed to help people who are ready to start work, but who may need to learn the skills and behaviours that employers in particular industries look for in new employees.

We strongly recommend that the initial trial period should just be for a few days. This can then be reviewed and extended, if all parties are in agreement.

In exceptional circumstances only, a trial can last up to a maximum of 30 working days (over a period not exceeding 6 calendar weeks), and you decide the length of each Work Trial with the employer.

If you think starting a Work Trial would be help you with the jobs you are applying for, speak to your work coach, who will discuss it with you and if appropriate, help you to take up an offer of a Work Trial.

Participation in a work trail is entirely voluntary, if a trial period is agreed with an employer, we do encourage you to take advantage of this opportunity to overcome any doubts you or the employer might have.

Your benefit will not be stopped or reduced (sanctioned) if you decide not to take up the Work Trial or decide during it that the job is not for you.

Will I get help with any costs?

You will clearly have to travel to the employers place of work and DWP is clear that no claimant will be “out of pocket”, therefore discuss your travel expenses with your work coach as you can get help to cover the cost of your journey by public transport and any appropriate childcare costs.

You will be expected to cover the costs of any meals purchased during your Work Trial.

Do I have to accept the job if it is offered to me following the Work Trial?

Work Trials are designed to help you make the correct decision in accepting a job. If you are offered the job or an apprenticeship during/following the Work Trial, you decide whether you want to accept it or not. Your work coach does not require you to accept it as part of your Universal Credit benefit claim.

If you claim Universal Credit, you will have accepted a Claimant Commitment that sets out what you need to do to keep in contact with your work coach and the things you must do to prepare for and look for work. While on Work Trial you are still required to meet the requirements set out in your Claimant Commitment, including attending meetings with your work coach. Your work coach will make arrangements with you to ensure you are able to attend any such meeting.

If you feel your Work Trial stops you doing the things set out in your Claimant Commitment, you must contact your work coach in advance.

Benefit sanctions if you’re unemployed and looking for work

If you are claiming Universal Credit there are some things we expect you to do to keep receiving your benefit.

You’ll meet a work coach who will find out about your situation. They will:

• help identify what you must do to find work (these actions will be added to your Claimant Commitment)
• regularly review your progress either face to face or through your journal

You may need to take part in opportunities designed to improve your prospects of work and described in this guide. These opportunities are delivered by providers to help you find and stay in work. Your provider may also identify additional things you must do to find work.

It’s your responsibility to do all you can to find work. In return, you’ll get your benefit payment and our support. Most people do all they can. If you don’t, your benefit payment could be temporarily reduced or stopped (a sanction).

What must I do to keep my full benefit payment?

You’ll get your full benefit payment as long as you:

• go to meetings on time with your work coach and take part in interviews
• apply for suitable jobs either you or your work coach identifies
• action activities/To do’s sent to you through your Journal (for those claiming UC Full Service), such as attending a training course or updating your CV
• do all you can to find work by undertaking all actions described in your Claimant Commitment
• take part in opportunities you agree to attend following discussions with your work coach or an assessment with a provider. You’ll need to continue to meet with your work coach (action your journal in UC Full Service) and do the activities set out in your Claimant Commitment
• if you can’t or haven’t done these things, tell your work coach or provider why straight away

If you can show you have good reason, you’ll continue to get your full benefit payment. Provide as much information as you can, as quickly as possible. For example, call your work coach if you can’t attend a meeting and let them know why.

If you don’t do these things, and you don’t have good reason, your benefit payment could be reduced or stopped for a period of time. It’s important that you understand what you must do to get your benefit payment, and what will happen if you don’t do this. Ask your work coach to explain if you’re not sure.

How long could my benefit payment be reduced or stopped for?

How long your benefit is reduced or stopped depends on:

• the reason you claim benefit. For example, if you were dismissed for misconduct from your last job, or left it without good reason
• what you haven’t done to find work
• whether your benefit payment has been stopped, or your claim has been ended, in the last year, and the reason or reasons for this

Types of benefit sanction

You will get a low level sanction if:

• you don’t go to meetings on time with your work coach and take part in interviews
• you don’t do what you agree to do to find work, such as attend a training course or update your CV
• you don’t take part in opportunities as described in this guide after agreeing to attend
• you don’t meet your employment scheme provider on time or take actions they require you to take

Your Universal Credit will be reduced or stopped for the number of days from the day you failed to do what you were asked or agreed to, to the day before you do it or a similar activity set by your work coach or scheme provider.

Your benefit will stay reduced or stopped for a further fixed period of 7, 14 or 28 days depending on the number of occasions you have been sanctioned in the last year.

You will get a high level sanction if:

• you were dismissed for misconduct from your last job
• you left your last job, or lost pay as a result of misconduct or, voluntarily leaving your last job, and without good reason
• you don’t take actions to apply for suitable jobs your work coach or a provider tells you about
• you don’t take a job if offered

A high level sanction means that your Universal Credit will be reduced or stopped, for 13, 26 or 156 weeks depending on the number of occasions you have been sanctioned in the last year.

If you are not doing all you can to look for and be available for work

If you are a Universal Credit claimant you are expected to do all you reasonably can to find work and immediately take up work. Otherwise you may receive a medium level sanction if you do not have good reason for not doing so.

If you get a medium level sanction, your benefit will be reduced or stopped for a fixed period of 28 or 91 days depending on the number of occasions you have been sanctioned in the last year.

What should I do if my benefit payment is stopped or my claim is ended?

If your benefit payment is stopped, you should continue to do all you can to find work. If you don’t, your benefit payment could be stopped for a longer period, or your claim could be ended.

If you receive a council tax reduction, you should contact your local authority straight away if your Universal Credit payment is reduced or stopped. You should contact them to understand what information they’ll want from you to ensure you still get any council tax reduction that you may be entitled to.

Hardship payments

If your benefit payment is stopped, and you don’t have enough money to live on, you may be able to get a hardship payment. This is a reduced amount of benefit. Contact us if you want to understand more about hardship payments and whether you can apply.

What if I don’t agree with the decision to stop or reduce my benefit payment, or end my claim?

Provide us with full information.

If you’re told your benefit payment may be stopped or reduced, or your claim may be ended, you should provide new information straight away about why you haven’t attended meetings on time or taken actions.

A DWP decision maker, rather than your work coach or employment scheme provider, will decide if you have good reason.

If they decide there isn’t good reason, they will decide how long to stop your benefit payment for, or whether to end your claim. You can ask why a decision has been made by contacting us.

Ask us to reconsider the decision

If you think the decision is wrong, you can ask for it to be looked at again within one month of your benefit being stopped or reduced or your claim being closed. Explain why the decision is wrong and show any evidence you have. The decision will be looked at again and we will send you a letter to tell you what has been decided and why. We call this letter a ‘Mandatory Reconsideration Notice’.

If you disagree with the Mandatory Reconsideration Notice, you can appeal to a tribunal. You must wait for the ‘Mandatory Reconsideration Notice’ before you start an appeal. You can download an appeal form on www.gov.uk by searching ‘SSCS1’.

The Back to Work opportunities outlined in this leaflet are covered by the following legislation:

Part 1 of the Welfare Reform Act 2012 Universal Credit Regulations 2013

This leaflet provides general information only and is not a complete and authoritative statement of the law.

Is this page useful?

• Yes this page is useful
• No this page is not useful

Help us improve GOV.UK

Don’t include personal or financial information like your National Insurance number or credit card details.

To help us improve GOV.UK, we’d like to know more about your visit today. Please fill in this survey (opens in a new tab) .

Expedia Rewards is now One Key™

Elektrostal, visit elektrostal, check elektrostal hotel availability, popular places to visit.

• Electrostal History and Art Museum

You can spend time exploring the galleries in Electrostal History and Art Museum in Elektrostal. Take in the museums while you're in the area.

• Cities near Elektrostal

• Places of interest
• Yuri Gagarin Cosmonaut Training Center
• Peter the Great Military Academy
• Central Museum of the Air Forces at Monino
• History of Russian Scarfs and Shawls Museum
• Ramenskii History and Art Museum
• Balashikha Museum of History and Local Lore
• Pekhorka Park
• Balashikha Arena
• Drama Theatre BOOM
• Bykovo Manor
• Malenky Puppet Theater
• Pavlovsky Posad Museum of Art and History
• Saturn Stadium
• Church of Vladimir
• Likino Dulevo Museum of Local Lore
• Orekhovo Zuevsky City Exhibition Hall
• Noginsk Museum and Exhibition Center
• Fairy Tale Children's Model Puppet Theater
• Fifth House Gallery
• Malakhovka Museum of History and Culture

• Bahasa Indonesia
• Eastern Europe
• Moscow Oblast

Elektrostal

Elektrostal Localisation : Country Russia , Oblast Moscow Oblast . Available Information : Geographical coordinates , Population, Area, Altitude, Weather and Hotel . Nearby cities and villages : Noginsk , Pavlovsky Posad and Staraya Kupavna .

Information

Find all the information of Elektrostal or click on the section of your choice in the left menu.

• Update data

Elektrostal Demography

Information on the people and the population of Elektrostal.

Elektrostal Geography

Geographic Information regarding City of Elektrostal .

Elektrostal Distance

Distance (in kilometers) between Elektrostal and the biggest cities of Russia.

Elektrostal Map

Locate simply the city of Elektrostal through the card, map and satellite image of the city.

Elektrostal Nearby cities and villages

Elektrostal weather.

Weather forecast for the next coming days and current time of Elektrostal.

Elektrostal Sunrise and sunset

Find below the times of sunrise and sunset calculated 7 days to Elektrostal.

Elektrostal Hotel

Our team has selected for you a list of hotel in Elektrostal classified by value for money. Book your hotel room at the best price.

Elektrostal Nearby

Below is a list of activities and point of interest in Elektrostal and its surroundings.

Elektrostal Page

• Information /Russian-Federation--Moscow-Oblast--Elektrostal#info
• Demography /Russian-Federation--Moscow-Oblast--Elektrostal#demo
• Geography /Russian-Federation--Moscow-Oblast--Elektrostal#geo
• Distance /Russian-Federation--Moscow-Oblast--Elektrostal#dist1
• Map /Russian-Federation--Moscow-Oblast--Elektrostal#map
• Nearby cities and villages /Russian-Federation--Moscow-Oblast--Elektrostal#dist2
• Weather /Russian-Federation--Moscow-Oblast--Elektrostal#weather
• Sunrise and sunset /Russian-Federation--Moscow-Oblast--Elektrostal#sun
• Hotel /Russian-Federation--Moscow-Oblast--Elektrostal#hotel
• Nearby /Russian-Federation--Moscow-Oblast--Elektrostal#around
• Page /Russian-Federation--Moscow-Oblast--Elektrostal#page
• Terms of Use
• Copyright © 2024 DB-City - All rights reserved
• Change Ad Consent Do not sell my data

Write my essay for me frequently asked questions

Customer Reviews

Please enter your email to receive the instructions on how to reset your password.

Our Service Is Kept Secret

We are here to help you with essays and not to expose your identity. Your anonymity is our priority as we know it is yours. No personal data is collected on our service and no third parties can snoop through your info. All our communication is encrypted and stays between you and your writer. You receive your work via email so no one will have access to it except you. We also use encrypted payment systems with secure gateways for extra security.

Finished Papers

• My View My View
• Following Following
• Saved Saved

Trading app Robinhood unveils maiden stock buyback plan of $1 bln

• Medium Text

Sign up here.

Reporting by Niket Nishant in Bengaluru; Editing by Arun Koyyur

Our Standards: The Thomson Reuters Trust Principles. New Tab , opens new tab

Business Chevron

Investors relieved bhp walked from $49 bln anglo takeover deal.

BHP Group investors welcomed the top global miner's decision to walk away from a $49 billion plan to take over Anglo American , which rejected three proposed offers from its bigger rival over the past six weeks.

American Airlines CEO admits the airline messed up its plan to disrupt how tickets are sold

• American Airlines slashed its revenue and margin outlook for Q2 2024 on Tuesday.
• The airline also announced the departure of chief commercial officer Vasu Raja.
• American's CEO said part of its struggles is due to recent changes in ticket sales strategy.

American Airlines lowered its earnings outlook for the second quarter of 2024 and announced the departure of its Chief Commercial Officer on Tuesday.

Speaking at an event on Wednesday, CEO Robert Isom said the lower earnings guidance can be attributed to a weaker-than-expected marketplace and the airline's weaker-than-expected performance.

A key factor behind lower bookings is the airline's recent changes to ticket sales strategy, Isom said.

That's a not-so-tacit admission that the airline's recent shake-up of its corporate ticket sales and third-party ticket sales strategy quarterbacked by the outgoing CCO, Vasu Raja, has not worked.

"We are adapting our distribution strategy," Isom said at the event, which was hosted by Bernstein. "We moved faster than we should have and we didn't execute well."

Related stories

In February, American Airlines announced changes to its ticket distribution strategy, including new rules that limit the accrual of loyalty points needed to achieve elite status to tickets purchased from the airline and through select approved travel agencies.

The strategy encouraged customers to buy directly from the carrier instead of third-party websites and travel agencies.

Last year, American gutted its corporate sales team, responsible for managing business travel needs for its major corporate clients.

Isom said that American is reevaluating its distribution strategy to make it easier for travel agencies, corporate clients, and customers in general to interact with the airline. This includes pausing some of the policy changes announced in February.

"Our approach has driven customers away from American and we are unequivocally committed to getting those customers back," Isom added.

In a regulatory filing, the airline said it now expects profit margins for the current quarter to be 1% lower than it had predicted in April. In addition, American expects second-quarter revenue to be as much as 6% lower than the same period in 2023.

Raja, who joined the company in 2004 and took over as CCO in 2022, will officially leave the company in June.

Shares of American Airlines fell more than 13% in trading on Wednesday.

• Main content