tips to present a business plan

How to Make a Killer Business Plan Presentation (+Templates)

Learn how to make a business plan presentation with tips for slide design, structure, and engaging examples, as well as templates to bring your vision to life.

7 minute read

helped business professionals at:

Short answer

What slides should a business plan presentation include?

• Opening slide
• Your Unique Selling Proposition (USP)
• Business overview
• The challenge you're addressing
• Market analysis
• Your solution
• Marketing and sales strategy
• Goals and Key Performance Indicators (KPIs)
• Team composition
• Funding request and allocation

Your business plan presentation needs to be as strong as your idea

Having a well-crafted business plan is crucial, but if it's not presented effectively, it's like having a treasure map that no one can read.

Even the best ideas can fall flat if they're not communicated clearly, potentially burying your chance of getting your business off the ground.

Remember, presenting a business plan is more than just sharing facts and figures. It's about engaging your audience, whether they're investors or stakeholders, and making them believe in your vision.

But don't worry, you're not alone in this. This guide is here to help you master the art of business plan presentation. You'll learn how to structure your presentation, design slides that captivate, and conclude in a way that leaves a lasting impact and drives action.

Let's dive in!

What to include in a business plan presentation?

A business plan presentation is your chance to delve deep, showcasing not just the what and the how, but also the why of your business. It's your strategic playbook that can persuade investors, guide your team, and set the foundation for your business's success.

11 essential slides of a business plan presentation:

Opening slide: Set the tone with an engaging first impression.

Your Unique Selling Proposition (USP): Define what sets your business apart.

Business overview: Offer a concise snapshot of your company.

The challenge you're addressing: Describe the problem your business solves.

Market analysis: Demonstrate your understanding of the industry and market trends.

Your solution: Detail how your product or service addresses the problem you’ve identified.

Marketing and sales strategy: Outline your approach to winning and keeping customers.

Goals and Key Performance Indicators (KPIs): Specify your objectives and how you’ll measure success.

Team composition: Introduce key team members, their roles, and expertise.

Funding request and allocation: Explain your financial requirements and how the funds will be utilized.

Next steps: Guide the reader on the next steps after reviewing your plan, whether it's a meeting request, further discussion, or a specific action you want them to take.

What does a business plan presentation look like?

In today's fast-paced business world, static business plan presentations are losing their edge. Imagine having to constantly pinch and zoom on a mobile device just to see the details. It's frustrating and distracting.

People also get disengaged when faced with walls of text. They're there to hear a story, not read a novel.

Interactive presentations, on the other hand, bring your business plan to life. They encourage audience participation, adapt to the flow of discussion, and make complex ideas more digestible and memorable.

You can see what an interactive business plan presentation looks like below:

How to turn a business plan into a presentation

Transforming your business plan into a presentation is a crucial step in bringing your vision to life. It's not just about having a plan; it's about presenting it in a way that resonates with investors and partners.

Start by distilling the essence of your plan, focusing on key points like your mission, market analysis, and financial projections. Use engaging visuals and a clear narrative to make complex information accessible.

For detailed insights on how to write a business plan , check out our guide.

How to make a business plan presentation in 6 easy steps

Crafting a business plan is about blending vision and strategy into a narrative that captivates your audience. With Storydoc's AI business presentation maker, creating this narrative becomes intuitive and easy.

In the guide below, we'll show you how to turn your plan into an engaging presentation in 6 simple steps. Stick around to see how seamlessly Storydoc can bring your business story to life.

1) Describe your presentation’s objective

Kick things off by sharing with our AI the type of business plan you're looking to create. This is like setting the GPS for your journey, ensuring every part of your plan is aligned with your end goal.

2) Give an overview of yourself, your organization, and your offering

Introduce the essence of your business - who you are, what your company stands for, and the unique value of what you offer. This sets the stage for a personalized and relevant presentation.

3) Select a suitable design template

Dive into our collection of design templates and pick one that resonates with your business's personality.

4) Tailor your business plan presentation to your needs

Now, here’s where you add your personal touch. Fill in your details, tweak the design, and watch the magic happen as the template adapts to your content. This is where your business plan presentation starts to take on a life of its own.

Then, you can either upload your own multimedia elements or sit back as our AI assistant generates some for you.

5) Add personalized elements

Next up, sprinkle in some personalization. It works just like personalizing a newsletter - you can insert dynamic variables that automatically fill up with your recipient's data.

This level of customization not only makes your presentation feel tailor-made for each reader but also adds a layer of engagement. As a matter of fact, it can get 68% more people to read your deck in full , and share it internally 2.3x more often!

6) Review and refine your business plan presentation

Finally, take a step back and review your plan. Ensure it looks good, flows well, and clearly conveys your message.

The beauty of Storydoc is that it's a living document – if you spot a mistake or need to update information after sharing, you can. You're in control, ensuring your audience always sees the most polished and up-to-date version of your business plan presentation.

Business plan design principles to turn average into impressive

Designing a business plan presentation is about more than just putting words on a page; it's about creating an experience that captures and holds attention. In today's digital age, the way you present your plan can be just as important as the content itself.

Let's explore how to design a business plan presentation that stands out in the modern business landscape.

1) Move from static to interactive

Gone are the days of static, text-heavy business plan presentations. Today's plans are interactive, engaging readers with clickable elements, dynamic charts, and even embedded videos.

This interactivity not only makes your plan more interesting but also allows readers to engage with the content in a more meaningful way.

Here's a great example of an interactive business plan presentation:

2) Use scroll-based design

Forget the hassle of pinching and zooming on a PDF. A scroll-based design, similar to a modern website, offers a fluid reading experience.

It's straightforward and aligns with how we naturally consume content online, making your business plan presentation easier and more enjoyable to read.

Here's an example of scroll-based design:

3) Make sure your business plan presentation is mobile-friendly

With so many people reading on their phones, your business plan presenttion needs to look good on any device.

Responsive design means your plan is easily readable on a phone, tablet, or computer, ensuring that your message is clear no matter how your audience accesses it.

4) Shift from local files to online documents

Step away from traditional Word docs or PDFs and embrace online documents. They're great for sharing, updating in real time, and collaborating with others.

Plus, they're accessible from anywhere, which is perfect for busy investors who are always on the move.

For more information, check out our comparison of the best business plan document types .

5) Embrace visual storytelling

Use visuals like infographics and charts to tell your business's story. They can turn complex data into easy-to-understand, engaging information. A well-placed visual can often do a better job of explaining your points than text alone.

Here's a great example of visual storytelling:

Best business plan software

Selecting the right tool to create your business plan presentation is vital for any startup. To ease your journey, I've compiled a list of the top business plan software, each designed to cater to different needs.

From comprehensive platforms guiding you step-by-step to dynamic tools that add interactive elements to your presentation, there's something for every entrepreneur.

The best business plan software currently available:

LivePlan.com

BizPlan.com

Upmetrics.co

GoSmallBiz.com

Business Sorter

MAUS Master Plan Lean

For a deep dive into each tool and to find the one that best fits your business's needs, explore our detailed guide to the best business plan software .

Interactive business plan presentation templates

The pressure to get your business plan presentation right can be overwhelming. After all, in many cases, you only get one shot to impress.

These business plan presentation templates offer a framework that takes care of the structure and design, allowing you to focus solely on fleshing out your strategy.

Whether you're pitching to investors, partners, or stakeholders, these templates give you the confidence that your plan is presented in the best possible light.

Grab one and see for yourself.

Hi, I'm Dominika, Content Specialist at Storydoc. As a creative professional with experience in fashion, I'm here to show you how to amplify your brand message through the power of storytelling and eye-catching visuals.

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How To Present A Business Plan: 9 Key Elements

• By Judhajit Sen
• April 22, 2024

Key Takeaways:

• A business plan serves as a roadmap for your business journey, outlining its purpose, operations, and future trajectory.
• A business plan presentation, or pitch deck, is a condensed version of your plan that showcases essential details to potential investors or partners.
• A compelling plan presentation is crucial for securing funding, attracting investors, and rallying support for your venture.
• A successful presentation includes the executive summary, company overview, business opportunity, management and leadership team, product and service details, sales and marketing plan, funding request, financial projections, and the appendix. Each section plays a vital role in articulating your business vision and potential for success.

A business plan is like a map of your business journey. It’s a formal paper explaining what your business is all about and what it aims to do. Think of it as a kind of storybook about your business, where you tell people what it does, how it works, and where it’s headed.

Inside a business plan, you’ll find information about the business structure, who’s in charge, and how things are set up. It also discusses how the company plans to sell stuff and make money with fancy financial projections. Plus, it lists everything the business needs, like equipment and supplies, to do its job well.

A winning business plan is like a guidebook for your business adventure. When you write a business plan, it helps you figure out where you’re going, what you need to get there, and how you’ll know when you’ve arrived. And if you’re looking for extra cash for your business, having a solid plan can help persuade folks to invest in your big ideas.

Business Plan Presentation

A business plan presentation, sometimes called a “pitch deck,” is like a slideshow introducing your business basics. It’s something you show during a meeting, whether in person or on Zoom, to give folks the lowdown on your business.

A good presentation covers the essentials: what you’re all about, who you’re trying to reach, how your business works, and what you’re asking for. When you’re presenting your plan, you’re not just sharing your cool idea—you’re hoping to get your audience to help you out with something.

Importance of a Business Plan Presentation

A plan presentation is crucial for your business journey. It’s not just about jotting down ideas; it’s a strategic tool that can help you overcome hurdles and spot opportunities you might have missed. When you present your business plan successfully, you’re clarifying it for yourself and making a compelling case for potential backers—like lenders, investors, or partners—that your venture has what it takes to succeed.

Research backs this up: Studies suggest that entrepreneurs who create a business plan are more likely to build viable businesses and secure funding than those who don’t. It’s not just about writing it down; how you present your plan matters. A polished, professional-looking presentation can make all the difference whether you seek a business loan, pitch your business to investors, or wooing potential partners.

Your business plan is a roadmap for your business endeavors, guiding your decisions and actions.  It’s not just a document for internal use; it’s also a key asset in external interactions. From securing loans to attracting investors or leasing a commercial space, having a solid plan can open doors and set you on the path to success in various professional arenas.

Following are nine tips for presenting your business plan step-by-step.

Executive Summary: A Snapshot of Your Business

The executive summary is the highlight reel of your plan presentation, offering a quick glimpse into your business. It’s your chance to grab the attention of potential investors and lenders right from the start, so it needs to be engaging and informative.

Start by revisiting your plan and picking out the most significant bits. Consider what makes your business unique and why  it’s  poised for success. Highlight vital elements like your business concept, goals, and vision for the future. Describe your offerings and what sets it apart from the competition. Identify your target market and outline your strategy to reach them.

Give a snapshot of your financial standing and lay out your projected revenue and profits for the next few years. Be clear about how much money you need to achieve your goals. Introduce the members of your management team, emphasizing their relevant experience.

The executive summary  must include:

• Your mission statement.
• Details about your products or services.
• Information  about your team.
• Your plans for growth.

Keep it concise yet comprehensive, giving readers a clear understanding of your business and why they should invest.

Company Overview: Setting the Stage for Success

The company overview section of your business plan demonstrates why your venture is poised for greatness. Start by pinpointing the problem your business aims to solve and who will benefit from your solution. Provide demographic data about your target customers and highlight what differentiates your company from the competition, whether it’s specialized expertise or unique product features.

Offer a brief history of your business and detail your products or services. Explain how your offerings address the identified problem and outline your business model , such as direct-to-consumer sales or online distribution. Clarify your business structure, whether it’s a sole proprietorship, partnership, or corporation, and why this setup is advantageous.

Use storytelling techniques to make the problem relatable to your audience and emphasize the significance of your solution. Describe how your offerings meets your customers’ needs and surpasses alternatives in the market.

Outline your revenue model, whether it’s through direct sales, subscription fees, or advertising revenue. Provide examples of early success, such as initial customers, pre-orders, or signed contracts, to demonstrate the viability of your business and build confidence in its prospects. This section sets the stage for the rest of your presentation, showcasing the potential for success and garnering interest from potential investors or partners.

Business Opportunity: Seizing the Moment

This section of your business presentation showcases the potential for growth in your chosen market. Begin by delving into your market analysis, which sheds light on the landscape of your industry. Research competitors’ actions, identify trends and understand what resonates with customers.

Investors look for growth potential of your business, so provide insights into your target market’s size and demographics. Conduct a SWOT analysis to highlight your strengths, weaknesses, opportunities, and threats. Detail how you developed projections, citing interviews or market research data to lend credibility.

Describe the industry’s current state and areas ripe for improvement. If your business operates locally, assess the market in your area and identify gaps or areas for enhancement. List competitors and explain how your business will stand out in the crowd.

Use data to illustrate your business’s performance compared to others in the industry. Incorporate facts and statistics from reputable sources to bolster your presentation’s credibility and professionalism.

Finally, articulate the size of your market and the specific business opportunities it presents. Utilize market research to quantify potential customers and identify target segments. This section paints a clear picture of the market landscape and underscores the vast opportunities awaiting your business’s success.

The Management and Leadership Team: Key Players in Success

Spotlight the individuals driving your business forward. Start by confirming your business’s legal entity status, whether it’s an LLC or another form. Then, introduce your ownership and leadership teams, clarifying roles with an organizational chart and providing resumes to showcase key members’ skills and experience.

Investors often prioritize the team behind a business over the idea itself. Highlight the expertise and talent of your management team through short bios that emphasize relevant experience and industry recognition. Consider including headshots to put faces to names and build rapport.

Describe your organization’s structure, whether it’s a sole proprietorship, LLC, or corporation. If you plan to hire staff or rely on outside consultants , outline your staffing plans here. Investors are looking for assurance that you’ve consulted experts in your field needed to drive your business forward.

Ultimately, investors want to know why your team is the right one to bring your business idea to life. Use this section to showcase the capabilities and dedication of your team, emphasizing their ability to turn your vision into reality. The strength of your team can be the deciding factor in securing support for your business venture.

Product and Service Details: Delivering Value to Customers

Start by describing what you offer and how it meets the needs of your market. Highlight its unique features and the benefits it brings to customers. If you’re taking steps to protect your intellectual property, such as trademarks or patents, be sure to mention it. Similarly, if you’re investing in research and development to enhance your offerings, explain how this will benefit your business and customers alike.

Success depends on offering products or services that customers want or need. Explain the value your offerings provide, how they differ from competitors, and the buying cycle. Demonstrating your understanding of customer needs and preferences boosts confidence in your ability to deliver.

If you’re pursuing intellectual property protections like copyrights or patents, outline your strategy. Additionally, discuss any ongoing research and development efforts aimed at expanding your product line or improving existing offerings. This showcases your commitment to innovation and highlights potential avenues for future revenue growth. By clearly articulating your product and service details, you lay the groundwork for success and instill confidence in potential investors or partners.

Sales and Marketing Plan: Reaching Your Audience

In crafting your sales and marketing plan, remember that even the best product needs a push to reach customers. Outline your strategy for reaching, convincing, and retaining your target audience. Describe the steps leading to a sale, essentially designing your sales funnel, a crucial aspect of effective planning.

Give details on how you’ll spread the word about your offerings. Will you utilize paid online ads, social media promotions, direct mail, local print ads, radio or TV sponsorships, YouTube content, or other methods? List all chosen approaches.

Ensure clarity on the sales journey and why it resonates with your target and existing customer segments. If you’ve begun implementing these methods, share data on their effectiveness.

Include an overview slide of your marketing and sales plan , emphasizing how you’ll reach and sell to your target market. You’ve identified your audience; now explain how you’ll engage and convert them. This section underscores your commitment to connecting with customers and driving sales, essential for business growth and success.

Funding Request: Securing Support for Growth

Outline your financial needs and how you plan to use that money to fuel your business’s growth over the next five years. Clearly articulate the amount of funding required and its intended use, whether for marketing, research and development, hiring key personnel, or expansion into new markets or locations.

Specify whether you’re seeking equity, debt, or a combination of both, and outline the terms  you’re  seeking for the funding. Potential investors or lenders will want to understand the rationale behind the requested amount and the type of financing being sought.

If you’re contributing personal funds to the project, highlight this to demonstrate your commitment and confidence in the venture. It shows that you have “skin in the game “  and are invested in its success.

Explain the purpose behind the funding request, detailing how it will support your business objectives and drive growth. Whether it’s to enhance product development, scale operations, or increase market presence, clarify why the funding is necessary and how it aligns with your overall business strategy. This section is crucial for garnering support from investors or lenders, showcasing your vision and readiness to take your business to the next level.

Financial Projections: Mapping Your Business’s Future

Demonstrating profitability is paramount to securing funding for your business. If your company is operational, include financial statements like profit and loss, balance sheets, income, and cash flow statements.

For both established and new business, a five-year financial plan is crucial. Detail forecasted income and expenditures, breaking the first year into quarterly or monthly projections. Utilize professional-looking charts, graphs, and tables for clarity.

Even if your business lacks past financial data, preparing a budget and financial plan showcases your domain understanding. For new ventures, utilize resources like the U.S. Small Business Administration (SBA) guide or SCORE’s financial projections template. For existing businesses, provide income statements, profit and loss statements, and balance sheets, ideally covering the past three years.

Detail specific steps to achieve outlined financial goals, with more emphasis on the first year. Include interactive spreadsheets for a detailed financial analysis covering production costs, profits, planned investments, and tax projections.

A detailed sales forecast spanning up to five years helps attract outside support. If your business hasn’t launched yet, utilize market research for estimates.

In your presentation, highlight key financial data such as sales forecasts, profit projections, and estimated profitability timelines. Aim to pique interest and prompt further inquiries using facts and figures without overwhelming your audience with excessive details.

Appendix: Additional Resources for In-Depth Understanding

In the appendix section at the end of your presentation , provide supplementary materials to address potential questions and offer deeper insights into your business. Anticipate inquiries and include slides that offer the information you need, showcasing your thorough preparation and understanding of all aspects of your venture.

While the core slides of your PowerPoint presentation capture the essence of your business, the appendix offers additional resources to enrich understanding. Depending on your industry, include permits, licenses, deeds, professional certifications, media clips, patents, customer contracts, and other relevant documents. These materials offer investors and bankers a comprehensive view of your business’s potential.

Consider including a list of critical concepts and industry terms to aid understanding, mainly if your business operates in a niche field. This ensures clarity and fosters better comprehension among readers unfamiliar with industry-specific terminology.

Remember, the appendix is an opportunity to provide supplementary information that bolsters your presentation and demonstrates your thoroughness and preparedness. While the plan document may not be directly referenced, the planning process equips you to present and advocate for your business efficiently.

Navigating Your Business Journey: How To Present A Business Plan

Crafting a plan presentation is akin to mapping out your entrepreneurial journey. It’s more than just a slideshow; it’s your opportunity to portray a vivid picture of your business, its potential, and its path to success. Whether you’re seeking funding, pitching to investors, or rallying support from partners, a well-prepared presentation can make all the difference.

At its core, the presentation distills the essence of your venture into digestible bits, offering a snapshot of your business basics. It covers everything from your business concept and target audience to your revenue model and financial projections. But it’s not just about sharing information—it’s about persuading your audience to join you on your business adventure.

By outlining the importance of a plan presentation and dissecting its key components, we’ve delved into the strategic approach needed to craft a compelling pitch. From the executive summary to business projections, each section plays a vital role in articulating your vision and garnering support for your venture.

Armed with insights into what makes a successful plan presentation, you’re better equipped to navigate the complexities of entrepreneurship. Whether you’re a veteran business owner or a debutant entrepreneur, a well-crafted presentation can pave the way for future growth and success. So, harness the power of storytelling , data, and strategic planning to chart a course for your business’s bright future.

Frequently Asked Questions (FAQs)

1. What is a business plan, and why is it important?

A business plan is like a roadmap for your business journey, detailing what your business is about, what it aims to achieve, and how it plans to do so. Think of it as a storybook about your business, explaining its concept, structure, target market, marketing strategy, financial projections, and more. It’s essential because it helps you clarify your business vision, spot opportunities, overcome obstacles, and persuade potential backers to invest in your ideas .

2. What is a business plan presentation, and why do I need it?

A business plan presentation, also known as a “pitch deck, “  is a slideshow that introduces the basics of your business to potential investors, lenders, or partners. It offers a concise overview of your business concept, target audience, operations, and funding needs. It’s crucial because it allows you to present your business in a visually appealing and engaging format, making it easier for others to understand and support your venture.

3. What are the critical elements of a successful plan presentation?

A successful plan presentation comprises several key elements, including the executive summary, company overview, business opportunity, the management and leadership team, product and service details, sales and marketing plan, funding request, financial projections, and appendix. Whether you want to grab your audience’s attention or provide detailed insights into your business and its potential for success, each section serves a specific purpose,

4. How can I make my plan presentation more compelling?

Focus on storytelling, clarity, and professionalism to make your presentation more compelling. Use engaging visuals , such as charts, graphs, and images, to illustrate key points and data. Keep your language simple and concise, avoiding  jargon that may confuse your audience.  Practice your presentation beforehand to ensure smooth delivery and confidence. Finally, be prepared to answer queries and address concerns raised by your audience, demonstrating your knowledge and readiness to lead your business to success.

Supercharge Your Business Plan Presentation with Prezentium

Transform your plan presentation from ordinary to outstanding with Prezentium ‘s AI-powered services. Whether  you’re  pitching to investors, seeking funding, or sharing your vision with stakeholders, Prezentium equips you with the tools and expertise to create killer presentations that captivate your audience.

Overnight Presentations : Need a polished presentation in record time? Email your requirements to Prezentium by 5:30 pm PST, and we’ll work our magic overnight. By 9:30 am PST the following business day, you’ll receive a stellar presentation delivered straight to your inbox—ready to impress.

Presentation Specialists : Our team of experts at Prezentium is here to bring your ideas to life. From transforming meeting notes into exquisite presentations to crafting new designs and templates, we’ve got you covered. Let us help you elevate your presentation game and make a lasting impression.

Zenith Learning : Elevate your communication skills with Prezentium’s interactive workshops and training programs. Combining structured problem-solving with visual storytelling, our programs empower you to communicate with impact and clarity.

Unlock the full potential of your presentation with Prezentium’s AI-powered services. From compelling visuals to data-driven insights, we’re here to help you shine. Contact us today to supercharge your presentation and take your business to new heights!

Why wait? Avail a complimentary 1-on-1 session with our presentation expert. See how other enterprise leaders are creating impactful presentations with us.

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Written by Jesse Sumrak | May 14, 2023

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

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

Bah. Sounds like homework, right?

Yes. Yes, it does.

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

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

Table of Contents

What Is a Business Plan?

Tips to Make Your Small Business Plan Ironclad

How to Write a Business Plan in 6 Steps

Startup Business Plan Template

Business Plan Examples

Work on Making Your Business Plan

How to Write a Business Plan FAQs

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

A business plan is a roadmap that outlines:

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

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

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

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

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

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

Don’t Skip: Business Startup Costs Checklist

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

Be Professional and Legit

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

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

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

Know Your Audience

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

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

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

Invest Time Researching

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

Your audience will want:

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

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

Stay Realistic

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

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

How to Write a Business Plan—6 Essential Elements

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

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

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

1. Executive Summary

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

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

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

2. Business Overview

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

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

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

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

3. Products and Services

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

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

You’ll need to include:

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

4. Market Analysis

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

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

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

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

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

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

5. Competitive Analysis

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

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

6. Financial Strategy

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

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

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

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

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

Read More: 16 Financial Concepts Every Entrepreneur Needs to Know

Startup Business Plan Template (Copy/Paste Outline)

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

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

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

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

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

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

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

5 Frame-Worthy Business Plan Examples

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

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

Get to Work on Making Your Business Plan

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

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

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

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

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

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

Keep Learning: New Product Development Process in 8 Easy Steps

What financial information should be included in a business plan?

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

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

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

Who should review my business plan before I submit it?

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

Ready to Write Your Business Plan?

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

Let us help you get started.

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

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

About Jesse Sumrak

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

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

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

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

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

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

Let’s get started.

What Do You Need A Business Plan For?

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

1. Secure Funds

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

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

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

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

2. Monitor Business Growth

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

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

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

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

3. Measure Business Success

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

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

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

4. Document Your Marketing Strategies

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

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

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

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

How to Write a Business Plan Step-by-Step

1. create your executive summary.

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

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

A good executive summary should do the following:

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

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

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

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

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

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

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

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

2. Add Your Company Overview

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

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

Your company overview should contain the following:

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

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

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

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

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

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

• Mission Statement

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

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

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

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

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

Business Objectives

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

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

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

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

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

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

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

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

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

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

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

Market Analysis

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

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

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

• Market Research

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

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

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

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

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

How to Quantify Your Target Market

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

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

What Does a Good Market Analysis Entail?

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

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

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

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

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

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

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

Competitive Analysis

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

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

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

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

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

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

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

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

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

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

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

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

Direct vs Indirect Competition

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

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

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

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

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

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

Factors that Differentiate Your Business from the Competition

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

1. Cost Leadership

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

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

2. Product Differentiation

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

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

3. Market Segmentation

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

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

4. Define Your Business and Management Structure

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

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

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

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

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

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

Management Team

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

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

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

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

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

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

Key Questions to Answer When Structuring Your Management Team

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

Additional Tips for Writing the Management Structure Section

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

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

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

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

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

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

Organizational Chart

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

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

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

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

5. Describe Your Product and Service Offering

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1. Avoid Technical Descriptions and Industry Buzzwords

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

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

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

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

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

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

3. Long or Short Products or Services Section

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

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

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

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

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

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

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

4. Describe Your Relationships with Vendors or Suppliers

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

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

5. Your Primary Goal Is to Convince Your Readers

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

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

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

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

Key Questions to Answer When Writing your Products and Services Section

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

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

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

6. Show and Explain Your Marketing and Sales Plan

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

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

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

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

Outline Your Business’ Unique Selling Proposition (USP)

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

Target Market and Target Audience

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

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

Creating a Smart Marketing and Sales Plan

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

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

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

Your Positioning Statement

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Basic Rules to Follow When Pricing Your Offering

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

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

Pricing Strategy

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

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

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

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

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

Advertising

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

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

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

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

Public Relations

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

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

Content Marketing

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

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

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

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

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

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

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

Social Media

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

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

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

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

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

Strategic Alliances

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

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

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

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

Steps Involved in Creating a Marketing and Sales Plan

1. Focus on Your Target Market

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

2. Evaluate Your Competition

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

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

These questions can help you know your competition.

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

3. Consider Your Brand

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

4. Focus on Benefits

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

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

5. Focus on Differentiation

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

Key Questions to Answer When Writing Your Marketing and Sales Plan

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

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

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

7. Clearly Show Your Funding Request

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

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

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

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

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

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

Funding Request: Debt or Equity?

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

Case for Equity

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

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

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

Case for Debt

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

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

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

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

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

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

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

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

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

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

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

8. Detail Your Financial Plan, Metrics, and Projections

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

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

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

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

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

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

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

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

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

Use Graphs and Charts

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

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

Address the Risk Factors and Show Realistic Financial Projections

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

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

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

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

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

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

1. Sales Forecast

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

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

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

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

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

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

2. Personnel Plan

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

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

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

3. Income Statement

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

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

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

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

4. Cash Flow Statement

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

5. Balance Sheet

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

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

6. Exit Strategy

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

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

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

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

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

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

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

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

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

9. Add an Appendix to Your Business Plan

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

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

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

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

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

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

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

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

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

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

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

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

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

Tips and Strategies for Writing a Convincing Business Plan

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

1. Know Your Audience

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

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

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

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

2. Get Inspiration from People

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

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

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

3. Avoid Being Over Optimistic

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

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

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

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

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

4. Keep it Simple and Short

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

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

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

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

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

5. Make an Outline and Follow Through

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

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

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

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

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

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

6. Ask a Professional to Proofread

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

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

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

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

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

1. hubspot's one-page business plan.

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

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

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

2. Bplan’s Free Business Plan Template

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

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

3. HubSpot's Downloadable Business Plan Template

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

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

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

4. Business Plan by My Own Business Institute

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

The comprehensive template consists of a whopping 15 sections.

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

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

5. Score's Business Plan Template for Startups

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

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

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

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

6. Minimalist Architecture Business Plan Template by Venngage

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

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

7. Small Business Administration Free Business Plan Template

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

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

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

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

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

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

9. PandaDoc’s Free Business Plan Template

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

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

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

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

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

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

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

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

Alternatives to the Traditional Business Plan

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

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

Business Model Canvas (BMC)

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

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

Segments of the Business Model Canvas

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

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

Lean Canvas

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

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

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

Startup Pitch Deck

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

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

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

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

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

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

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

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

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

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

Business Plan FAQ

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

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

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

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

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

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

Exlore Further

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

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Martin luenendonk.

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

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

How to Write a Business Plan: Step-by-Step Guide + Examples

Noah Parsons

24 min. read

Updated May 7, 2024

Writing a business plan doesn’t have to be complicated. 

In this step-by-step guide, you’ll learn how to write a business plan that’s detailed enough to impress bankers and potential investors, while giving you the tools to start, run, and grow a successful business.

• The basics of business planning

If you’re reading this guide, then you already know why you need a business plan . 

You understand that planning helps you: 

• Raise money
• Grow strategically
• Keep your business on the right track 

As you start to write your plan, it’s useful to zoom out and remember what a business plan is .

At its core, a business plan is an overview of the products and services you sell, and the customers that you sell to. It explains your business strategy: how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

Most business plans also include financial forecasts for the future. These set sales goals, budget for expenses, and predict profits and cash flow. 

A good business plan is much more than just a document that you write once and forget about. It’s also a guide that helps you outline and achieve your goals. 

After completing your plan, you can use it as a management tool to track your progress toward your goals. Updating and adjusting your forecasts and budgets as you go is one of the most important steps you can take to run a healthier, smarter business. 

We’ll dive into how to use your plan later in this article.

There are many different types of plans , but we’ll go over the most common type here, which includes everything you need for an investor-ready plan. However, if you’re just starting out and are looking for something simpler—I recommend starting with a one-page business plan . It’s faster and easier to create. 

It’s also the perfect place to start if you’re just figuring out your idea, or need a simple strategic plan to use inside your business.

Dig deeper : How to write a one-page business plan

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• What to include in your business plan

Executive summary

The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally just one to two pages. Most people write it last because it’s a summary of the complete business plan.

Ideally, the executive summary can act as a stand-alone document that covers the highlights of your detailed plan. 

In fact, it’s common for investors to ask only for the executive summary when evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation , or more in-depth financial forecasts .

Your executive summary should include:

• A summary of the problem you are solving
• A description of your product or service
• An overview of your target market
• A brief description of your team
• A summary of your financials
• Your funding requirements (if you are raising money)

Dig Deeper: How to write an effective executive summary

Products and services description

This is where you describe exactly what you’re selling, and how it solves a problem for your target market. The best way to organize this part of your plan is to start by describing the problem that exists for your customers. After that, you can describe how you plan to solve that problem with your product or service. 

This is usually called a problem and solution statement .

To truly showcase the value of your products and services, you need to craft a compelling narrative around your offerings. How will your product or service transform your customers’ lives or jobs? A strong narrative will draw in your readers.

This is also the part of the business plan to discuss any competitive advantages you may have, like specific intellectual property or patents that protect your product. If you have any initial sales, contracts, or other evidence that your product or service is likely to sell, include that information as well. It will show that your idea has traction , which can help convince readers that your plan has a high chance of success.

Market analysis

Your target market is a description of the type of people that you plan to sell to. You might even have multiple target markets, depending on your business. 

A market analysis is the part of your plan where you bring together all of the information you know about your target market. Basically, it’s a thorough description of who your customers are and why they need what you’re selling. You’ll also include information about the growth of your market and your industry .

Try to be as specific as possible when you describe your market. 

Include information such as age, income level, and location—these are what’s called “demographics.” If you can, also describe your market’s interests and habits as they relate to your business—these are “psychographics.” 

Related: Target market examples

Essentially, you want to include any knowledge you have about your customers that is relevant to how your product or service is right for them. With a solid target market, it will be easier to create a sales and marketing plan that will reach your customers. That’s because you know who they are, what they like to do, and the best ways to reach them.

Next, provide any additional information you have about your market. 

What is the size of your market ? Is the market growing or shrinking? Ideally, you’ll want to demonstrate that your market is growing over time, and also explain how your business is positioned to take advantage of any expected changes in your industry.

Dig Deeper: Learn how to write a market analysis

Competitive analysis

Part of defining your business opportunity is determining what your competitive advantage is. To do this effectively, you need to know as much about your competitors as your target customers. 

Every business has some form of competition. If you don’t think you have competitors, then explore what alternatives there are in the market for your product or service. 

For example: In the early years of cars, their main competition was horses. For social media, the early competition was reading books, watching TV, and talking on the phone.

A good competitive analysis fully lays out the competitive landscape and then explains how your business is different. Maybe your products are better made, or cheaper, or your customer service is superior. Maybe your competitive advantage is your location – a wide variety of factors can ultimately give you an advantage.

Dig Deeper: How to write a competitive analysis for your business plan

Marketing and sales plan

The marketing and sales plan covers how you will position your product or service in the market, the marketing channels and messaging you will use, and your sales tactics. 

The best place to start with a marketing plan is with a positioning statement . 

This explains how your business fits into the overall market, and how you will explain the advantages of your product or service to customers. You’ll use the information from your competitive analysis to help you with your positioning. 

For example: You might position your company as the premium, most expensive but the highest quality option in the market. Or your positioning might focus on being locally owned and that shoppers support the local economy by buying your products.

Once you understand your positioning, you’ll bring this together with the information about your target market to create your marketing strategy . 

This is how you plan to communicate your message to potential customers. Depending on who your customers are and how they purchase products like yours, you might use many different strategies, from social media advertising to creating a podcast. Your marketing plan is all about how your customers discover who you are and why they should consider your products and services. 

While your marketing plan is about reaching your customers—your sales plan will describe the actual sales process once a customer has decided that they’re interested in what you have to offer. 

If your business requires salespeople and a long sales process, describe that in this section. If your customers can “self-serve” and just make purchases quickly on your website, describe that process. 

A good sales plan picks up where your marketing plan leaves off. The marketing plan brings customers in the door and the sales plan is how you close the deal.

Together, these specific plans paint a picture of how you will connect with your target audience, and how you will turn them into paying customers.

Dig deeper: What to include in your sales and marketing plan

Business operations

The operations section describes the necessary requirements for your business to run smoothly. It’s where you talk about how your business works and what day-to-day operations look like. 

Depending on how your business is structured, your operations plan may include elements of the business like:

• Supply chain management
• Manufacturing processes
• Equipment and technology
• Distribution

Some businesses distribute their products and reach their customers through large retailers like Amazon.com, Walmart, Target, and grocery store chains. 

These businesses should review how this part of their business works. The plan should discuss the logistics and costs of getting products onto store shelves and any potential hurdles the business may have to overcome.

If your business is much simpler than this, that’s OK. This section of your business plan can be either extremely short or more detailed, depending on the type of business you are building.

For businesses selling services, such as physical therapy or online software, you can use this section to describe the technology you’ll leverage, what goes into your service, and who you will partner with to deliver your services.

Dig Deeper: Learn how to write the operations chapter of your plan

Key milestones and metrics

Although it’s not required to complete your business plan, mapping out key business milestones and the metrics can be incredibly useful for measuring your success.

Good milestones clearly lay out the parameters of the task and set expectations for their execution. You’ll want to include:

• A description of each task
• The proposed due date
• Who is responsible for each task

If you have a budget, you can include projected costs to hit each milestone. You don’t need extensive project planning in this section—just list key milestones you want to hit and when you plan to hit them. This is your overall business roadmap. 

Possible milestones might be:

• Website launch date
• Store or office opening date
• First significant sales
• Break even date
• Business licenses and approvals

You should also discuss the key numbers you will track to determine your success. Some common metrics worth tracking include:

• Conversion rates
• Customer acquisition costs
• Profit per customer
• Repeat purchases

It’s perfectly fine to start with just a few metrics and grow the number you are tracking over time. You also may find that some metrics simply aren’t relevant to your business and can narrow down what you’re tracking.

Dig Deeper: How to use milestones in your business plan

Organization and management team

Investors don’t just look for great ideas—they want to find great teams. Use this chapter to describe your current team and who you need to hire . You should also provide a quick overview of your location and history if you’re already up and running.

Briefly highlight the relevant experiences of each key team member in the company. It’s important to make the case for why yours is the right team to turn an idea into a reality. 

Do they have the right industry experience and background? Have members of the team had entrepreneurial successes before? 

If you still need to hire key team members, that’s OK. Just note those gaps in this section.

Your company overview should also include a summary of your company’s current business structure . The most common business structures include:

• Sole proprietor
• Partnership

Be sure to provide an overview of how the business is owned as well. Does each business partner own an equal portion of the business? How is ownership divided? 

Potential lenders and investors will want to know the structure of the business before they will consider a loan or investment.

Dig Deeper: How to write about your company structure and team

Financial plan

Last, but certainly not least, is your financial plan chapter. 

Entrepreneurs often find this section the most daunting. But, business financials for most startups are less complicated than you think, and a business degree is certainly not required to build a solid financial forecast. 

A typical financial forecast in a business plan includes the following:

• Sales forecast : An estimate of the sales expected over a given period. You’ll break down your forecast into the key revenue streams that you expect to have.
• Expense budget : Your planned spending such as personnel costs , marketing expenses, and taxes.
• Profit & Loss : Brings together your sales and expenses and helps you calculate planned profits.
• Cash Flow : Shows how cash moves into and out of your business. It can predict how much cash you’ll have on hand at any given point in the future.
• Balance Sheet : A list of the assets, liabilities, and equity in your company. In short, it provides an overview of the financial health of your business. 

A strong business plan will include a description of assumptions about the future, and potential risks that could impact the financial plan. Including those will be especially important if you’re writing a business plan to pursue a loan or other investment.

Dig Deeper: How to create financial forecasts and budgets

This is the place for additional data, charts, or other information that supports your plan.

Including an appendix can significantly enhance the credibility of your plan by showing readers that you’ve thoroughly considered the details of your business idea, and are backing your ideas up with solid data.

Just remember that the information in the appendix is meant to be supplementary. Your business plan should stand on its own, even if the reader skips this section.

Dig Deeper : What to include in your business plan appendix

Optional: Business plan cover page

Adding a business plan cover page can make your plan, and by extension your business, seem more professional in the eyes of potential investors, lenders, and partners. It serves as the introduction to your document and provides necessary contact information for stakeholders to reference.

Your cover page should be simple and include:

• Company logo
• Business name
• Value proposition (optional)
• Business plan title
• Completion and/or update date
• Address and contact information
• Confidentiality statement

Just remember, the cover page is optional. If you decide to include it, keep it very simple and only spend a short amount of time putting it together.

Dig Deeper: How to create a business plan cover page

How to use AI to help write your business plan

Generative AI tools such as ChatGPT can speed up the business plan writing process and help you think through concepts like market segmentation and competition. These tools are especially useful for taking ideas that you provide and converting them into polished text for your business plan.

The best way to use AI for your business plan is to leverage it as a collaborator , not a replacement for human creative thinking and ingenuity. 

AI can come up with lots of ideas and act as a brainstorming partner. It’s up to you to filter through those ideas and figure out which ones are realistic enough to resonate with your customers. 

There are pros and cons of using AI to help with your business plan . So, spend some time understanding how it can be most helpful before just outsourcing the job to AI.

Learn more: 10 AI prompts you need to write a business plan

• Writing tips and strategies

To help streamline the business plan writing process, here are a few tips and key questions to answer to make sure you get the most out of your plan and avoid common mistakes .  

Determine why you are writing a business plan

Knowing why you are writing a business plan will determine your approach to your planning project. 

For example: If you are writing a business plan for yourself, or just to use inside your own business , you can probably skip the section about your team and organizational structure. 

If you’re raising money, you’ll want to spend more time explaining why you’re looking to raise the funds and exactly how you will use them.

Regardless of how you intend to use your business plan , think about why you are writing and what you’re trying to get out of the process before you begin.

Keep things concise

Probably the most important tip is to keep your business plan short and simple. There are no prizes for long business plans . The longer your plan is, the less likely people are to read it. 

So focus on trimming things down to the essentials your readers need to know. Skip the extended, wordy descriptions and instead focus on creating a plan that is easy to read —using bullets and short sentences whenever possible.

Have someone review your business plan

Writing a business plan in a vacuum is never a good idea. Sometimes it’s helpful to zoom out and check if your plan makes sense to someone else. You also want to make sure that it’s easy to read and understand.

Don’t wait until your plan is “done” to get a second look. Start sharing your plan early, and find out from readers what questions your plan leaves unanswered. This early review cycle will help you spot shortcomings in your plan and address them quickly, rather than finding out about them right before you present your plan to a lender or investor.

If you need a more detailed review, you may want to explore hiring a professional plan writer to thoroughly examine it.

Use a free business plan template and business plan examples to get started

Knowing what information to include in a business plan is sometimes not quite enough. If you’re struggling to get started or need additional guidance, it may be worth using a business plan template. 

There are plenty of great options available (we’ve rounded up our 8 favorites to streamline your search).

But, if you’re looking for a free downloadable business plan template , you can get one right now; download the template used by more than 1 million businesses. 

Or, if you just want to see what a completed business plan looks like, check out our library of over 550 free business plan examples . 

We even have a growing list of industry business planning guides with tips for what to focus on depending on your business type.

Common pitfalls and how to avoid them

It’s easy to make mistakes when you’re writing your business plan. Some entrepreneurs get sucked into the writing and research process, and don’t focus enough on actually getting their business started. 

Here are a few common mistakes and how to avoid them:

Not talking to your customers : This is one of the most common mistakes. It’s easy to assume that your product or service is something that people want. Before you invest too much in your business and too much in the planning process, make sure you talk to your prospective customers and have a good understanding of their needs.

• Overly optimistic sales and profit forecasts: By nature, entrepreneurs are optimistic about the future. But it’s good to temper that optimism a little when you’re planning, and make sure your forecasts are grounded in reality. 
• Spending too much time planning: Yes, planning is crucial. But you also need to get out and talk to customers, build prototypes of your product and figure out if there’s a market for your idea. Make sure to balance planning with building.
• Not revising the plan: Planning is useful, but nothing ever goes exactly as planned. As you learn more about what’s working and what’s not—revise your plan, your budgets, and your revenue forecast. Doing so will provide a more realistic picture of where your business is going, and what your financial needs will be moving forward.
• Not using the plan to manage your business: A good business plan is a management tool. Don’t just write it and put it on the shelf to collect dust – use it to track your progress and help you reach your goals.
• Presenting your business plan

The planning process forces you to think through every aspect of your business and answer questions that you may not have thought of. That’s the real benefit of writing a business plan – the knowledge you gain about your business that you may not have been able to discover otherwise.

With all of this knowledge, you’re well prepared to convert your business plan into a pitch presentation to present your ideas. 

A pitch presentation is a summary of your plan, just hitting the highlights and key points. It’s the best way to present your business plan to investors and team members.

Dig Deeper: Learn what key slides should be included in your pitch deck

Use your business plan to manage your business

One of the biggest benefits of planning is that it gives you a tool to manage your business better. With a revenue forecast, expense budget, and projected cash flow, you know your targets and where you are headed.

And yet, nothing ever goes exactly as planned – it’s the nature of business.

That’s where using your plan as a management tool comes in. The key to leveraging it for your business is to review it periodically and compare your forecasts and projections to your actual results.

Start by setting up a regular time to review the plan – a monthly review is a good starting point. During this review, answer questions like:

• Did you meet your sales goals?
• Is spending following your budget?
• Has anything gone differently than what you expected?

Now that you see whether you’re meeting your goals or are off track, you can make adjustments and set new targets. 

Maybe you’re exceeding your sales goals and should set new, more aggressive goals. In that case, maybe you should also explore more spending or hiring more employees. 

Or maybe expenses are rising faster than you projected. If that’s the case, you would need to look at where you can cut costs.

A plan, and a method for comparing your plan to your actual results , is the tool you need to steer your business toward success.

Learn More: How to run a regular plan review

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How to write a business plan FAQ

What is a business plan?

A document that describes your business , the products and services you sell, and the customers that you sell to. It explains your business strategy, how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

What are the benefits of a business plan?

A business plan helps you understand where you want to go with your business and what it will take to get there. It reduces your overall risk, helps you uncover your business’s potential, attracts investors, and identifies areas for growth.

Having a business plan ultimately makes you more confident as a business owner and more likely to succeed for a longer period of time.

What are the 7 steps of a business plan?

The seven steps to writing a business plan include:

• Write a brief executive summary
• Describe your products and services.
• Conduct market research and compile data into a cohesive market analysis.
• Describe your marketing and sales strategy.
• Outline your organizational structure and management team.
• Develop financial projections for sales, revenue, and cash flow.
• Add any additional documents to your appendix.

What are the 5 most common business plan mistakes?

There are plenty of mistakes that can be made when writing a business plan. However, these are the 5 most common that you should do your best to avoid:

• 1. Not taking the planning process seriously.
• Having unrealistic financial projections or incomplete financial information.
• Inconsistent information or simple mistakes.
• Failing to establish a sound business model.
• Not having a defined purpose for your business plan.

What questions should be answered in a business plan?

Writing a business plan is all about asking yourself questions about your business and being able to answer them through the planning process. You’ll likely be asking dozens and dozens of questions for each section of your plan.

However, these are the key questions you should ask and answer with your business plan:

• How will your business make money?
• Is there a need for your product or service?
• Who are your customers?
• How are you different from the competition?
• How will you reach your customers?
• How will you measure success?

How long should a business plan be?

The length of your business plan fully depends on what you intend to do with it. From the SBA and traditional lender point of view, a business plan needs to be whatever length necessary to fully explain your business. This means that you prove the viability of your business, show that you understand the market, and have a detailed strategy in place.

If you intend to use your business plan for internal management purposes, you don’t necessarily need a full 25-50 page business plan. Instead, you can start with a one-page plan to get all of the necessary information in place.

What are the different types of business plans?

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. Here are a few common business plan types worth considering.

Traditional business plan: The tried-and-true traditional business plan is a formal document meant to be used when applying for funding or pitching to investors. This type of business plan follows the outline above and can be anywhere from 10-50 pages depending on the amount of detail included, the complexity of your business, and what you include in your appendix.

Business model canvas: The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea.

One-page business plan: This format is a simplified version of the traditional plan that focuses on the core aspects of your business. You’ll typically stick with bullet points and single sentences. It’s most useful for those exploring ideas, needing to validate their business model, or who need an internal plan to help them run and manage their business.

Lean Plan: The Lean Plan is less of a specific document type and more of a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, test, review, refine, and take action based on performance. It’s faster, keeps your plan concise, and ensures that your plan is always up-to-date.

What’s the difference between a business plan and a strategic plan?

A business plan covers the “who” and “what” of your business. It explains what your business is doing right now and how it functions. The strategic plan explores long-term goals and explains “how” the business will get there. It encourages you to look more intently toward the future and how you will achieve your vision.

However, when approached correctly, your business plan can actually function as a strategic plan as well. If kept lean, you can define your business, outline strategic steps, and track ongoing operations all with a single plan.

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

Table of Contents

• Use AI to help write your plan
• Common planning mistakes
• Manage with your business plan
• Templates and examples

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Start » startup, smart strategies for presenting your business plan.

Whether you're pitching investors or applying for a bank loan, it's important to nail your business plan presentation. Here are some tips for crafting and presenting yours.

For entrepreneurs who plan to apply for funding or raise investor capital, it's essential to write a solid business plan before launching a business . This document outlines the most important details about your new venture — including your mission, your founding team, your market research and, most importantly, your financial projections.

Once your business plan is written, you may be asked to present it in a variety of circumstances. Much like a professional resume, your plan will need to be tailored and tweaked to appeal to the specific audience you're trying to reach.

Whether you're preparing to write your first plan or refining your existing one, here are some expert-recommended tips for successfully presenting it to anyone who's evaluating your business.

When will you need to present your business plan?

A business plan should contain in-depth details about your business's market, revenue strategy and company structure to communicate the big picture, said Gerald Padilla, vice president of sales and marketing at Joorney Business Plans . The most common circumstances where you'll need to present your plan include:

• Applying for a business loan, especially through a bank or the Small Business Administration .
• Pitching investors and board members.
• Renting a commercial space.

Matthew Wolf, head of advisory and senior consultant for Joorney Business Plans, said that even if your business plan is just an internal document for now, writing one forces you to think critically about how your business will achieve success, while also keeping you accountable.

[Read: 5 Business Plan Templates to Help You Plan for Success . ]

You should be able to clearly state who you are, what you do and why you are relevant.

David Reiling, CEO of Sunrise Banks

Crafting the right business plan for your audience

If you want your business plan to be effective, you should customize and tailor it to the audience you're pitching, said Padilla.

"It's impossible to be everything to everyone," added David Reiling, CEO of Sunrise Banks . "You should be able to clearly state who you are, what you do and why you are relevant."

Here are a few tips to help you do just that.

• Lenders. Banks and the SBA require specific information in their business plan in order to approve a loan , said Padilla. It's important to understand those requirements and address each one within your business plan. "Debt providers are interested in your cash flow being sufficient to cover the principal and interest of the loan for the term," added Wolf.
• Investors. In general, said Wolf, equity investors are interested in returns on investment, as well as debt coverage, which affects free cash flow and returns on investment. However, some investors may also be attracted to different aspects of your business. "Some may be endeared to the product or service concept, while others may invest in the team or CEO because they see the value in their qualities," Padilla told CO—. "Be sure to understand the investors you may be presenting to and their interests."
• Landlords. Padilla noted that the potential landlord of a commercial space may ask for a business plan to understand the type of venture the business owner is proposing for use within the lease space. "They want to get clear details of the applicant's business activity before they accept the potential tenant's lease application," he said.

How to present your business plan

Regardless of your audience, there are a few key things to keep in mind when preparing to present your business plan.

First and foremost, you should ensure that all information included is credible and error-free.

"You want the business plan to reflect your professionalism and add to your credibility," said Padilla. "When using statistics, facts or figures, always cite the source of the data to support your ideas."

[Read: How to Write a Great Business Plan . ]

Reiling noted that you'll want to keep your plan simple so you can present it easily. Consulting resources like the SBA and SCORE can help you strike the right balance between simplicity and providing enough relevant information, he said.

"Bigger isn't necessarily better," Reiling added. "It's the content that matters."

On that note, Wolf advised making your plan as engaging as possible so you can capture the attention of the audience from the beginning.

"Be sure to have a clear go-to-market strategy and think deeply on your business's true competitive advantages," he said.

Finally, be sure to review your plan before each presentation to ensure you're providing the most accurate, up-to-date information on your business and its progress.

"Business plans should be living documents that are revisited and changed to reflect where a business is versus where it projected it would be," said Reiling. "It's the roadmap for a business."

CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.

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• Carmine Gallo

Five tips to set yourself apart.

Never underestimate the power of great communication. It can help you land the job of your dreams, attract investors to back your idea, or elevate your stature within your organization. But while there are plenty of good speakers in the world, you can set yourself apart out by being the person who can deliver something great over and over. Here are a few tips for business professionals who want to move from being good speakers to great ones: be concise (the fewer words, the better); never use bullet points (photos and images paired together are more memorable); don’t underestimate the power of your voice (raise and lower it for emphasis); give your audience something extra (unexpected moments will grab their attention); rehearse (the best speakers are the best because they practice — a lot).

I was sitting across the table from a Silicon Valley CEO who had pioneered a technology that touches many of our lives — the flash memory that stores data on smartphones, digital cameras, and computers. He was a frequent guest on CNBC and had been delivering business presentations for at least 20 years before we met. And yet, the CEO wanted to sharpen his public speaking skills.

• Carmine Gallo is a Harvard University instructor, keynote speaker, and author of 10 books translated into 40 languages. Gallo is the author of The Bezos Blueprint: Communication Secrets of the World’s Greatest Salesman  (St. Martin’s Press).

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5 Steps to Preparing an Engaging Industry Presentation You can make a great impression and generate interest with an exciting, informative presentation. Find out my five secrets to creating an industry presentation guaranteed to wow.

By Cyrus Claffey Edited by Chelsea Brown May 28, 2024

Key Takeaways

• This article offers practical advice for delivering impactful presentations at industry events, emphasizing the importance of a comfortable stage presence, understanding your audience, designing effective slides and more.

Opinions expressed by Entrepreneur contributors are their own.

Industry events are a chance to network with your colleagues and impress distributors — but to really make the most of your time at a conference, you need to learn how to prepare a presentation that engages, informs and leaves an impact.

I've presented at some of the most important real estate and property technology events in the country as the founder of ButterflyMX . Here are a few tricks I've picked up along the way to wow any audience.

Related: 6 Tips for Making a Winning Business Presentation

1. Getting comfortable with the stage

I recommend taking a walk around the stage before your presentation. By familiarizing yourself with your environment, you can prepare yourself better.

And while you're on stage, a relaxed, comfortable presence goes a long way in keeping your audience engaged . Whether you want to play your presentation casually or more formally, audiences can sense discomfort, which prevents them from fully connecting with your message.

To project your sense of comfortability, focus on your body language . You can project confidence by speaking slowly and clearly and by walking across the stage to keep the audience's attention — even if there's already a podium or lectern set up on stage.

Unfortunately, if a speaker spends too long standing behind the podium, an audience might interpret that as a sign of indecision and inaction from the speaker. Instead, you can remove any barriers between yourself and the audience by using the whole length of the stage.

2. Familiarity with industry statistics

An audience that doesn't know me might be wondering why they should be taking my advice. I certainly don't blame them. When I'm watching a new presenter, I ask the same question.

If you can back up your claims with hard data, your presentation will ring true with listeners. You can cite industry-wide statistics or establish your own bona fides by citing stats that buttress your own credibility by establishing your company's success.

In my case, I'm happy to use a couple of statistics that prove how successful my company, ButterflyMX, is in the proptech industry. For instance, we serve more than one million apartment units, and if you're interested in how consumers feel about us, look no further than the internet — we have over 20,000 five-star reviews !

Related: 7 Ways to Captivate Any Audience

3. Knowing your audience

Depending on who your audience is , you'll have to adjust your game plan and prepare for different things.

I've spoken at conferences where the audiences couldn't be more different — a presentation that wows one crowd might have no information that's applicable to another. As the founder of a property technology company, I have the pleasure of speaking at a variety of different conferences that serve different markets.

For example, integrators and installers might value a talk on product features and hardware more than others. And if I'm presenting to an audience of property managers, I'll know to dial down the technical talk and focus on the benefits a robust video intercom offers, such as simplifying their day-to-day workloads.

Depending on your audience, you need to strike the right balance between talking about hardware specs and features.

4. Designing your slides carefully

Slides are a good opportunity to share the aesthetics, tone and values of your company — but you've got to make sure you use them effectively.

A slide with too much text looks busy, and it'll distract your audience and draw focus away from you. Instead, consider putting that information into your notes and speaking it aloud. Slides should focus on one or two visual elements, like bullet points, charts and graphs.

As for the actual design of your slides, you should ensure that you adhere to your company's brand guidelines. If you're unfamiliar with the concept, brand guidelines are a single, governing document that goes over important design concepts like the colors and logos that your company has.

Related: 6 Ways to Take Your Next Presentation to the Next Level

5. Asking for audience participation

Asking for audience participation is the ultimate way to ensure everybody is locked in and paying attention — but it's also a double-edged sword. You also need to be prepared in case asking the audience to participate doesn't necessarily go your way.

For example, you might generally ask if an audience has any questions at the end of your presentation. But you run the risk of running into a hostile, bad-faith question — or you might even be met with silence.

That's why I'd recommend you give the audience questions and tasks that have a little more structure. You could do things like asking for a show of hands, asking for specific anecdotes or taking a poll.

Polls have gotten an especially high-tech upgrade recently — see if you can set up an electronic voting system that allows audience members to vote with their smartphones. Then, you'd be able to throw the results on screen and watch them update in real time!

You should pepper these interactive sections throughout your presentation to ensure that audiences are engaged throughout your entire talk.

Entrepreneur Leadership Network® Contributor

Founder of ButterflyMX

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

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10 Simple Tips to Write a Successful Business Plan

"The absolute biggest business plan mistake you can make is to not plan at all." So writes Noah Parsons in his helpful blog post 17 Key Business Plan Mistakes to Avoid in 2023 . But how does one pull together all of the necessary components of a cohesive plan? It can feel overwhelming.

Eric Butow, CEO of online marketing ROI improvement firm Butow Communications Group, has teamed up with Entrepreneur Media to update the second edition of our best-selling book Write Your Business Plan to provide you with a simple, step-by-step process for creating a successful business plan. In the following excerpt, he gives ten tips to gather all of the critical information you will need to succeed.

1. Know your competition.

You need to name them and point out what makes you different from (and better than) each of them. But do not disparage your competition.

2. Know your audience.

You may need several versions of your business plan. For example, you may need one for bankers or venture capitalists, one for individual investors, and one for companies that may want to do a joint venture with you rather than fund you.

3. Have proof to back up every claim you make.

If you expect to be the leader in your field in six months, you have to say why you think that is. If you say your product will take the market by storm, you have to support this statement with facts. If you say your management team is fully qualified to make the business a success, be sure staff resumes demonstrate their experience.

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4. Be conservative in all financial estimates and projections.

If you feel certain you'll capture 50 percent of the market in the first year, you can say why you think so and hint at what those numbers may be. But make your financial projections more conservative. For example, a 10 percent market share is much more credible.

5. Be realistic with time and resources available.

If you're working with a big company before you buy a business, you may think things will happen faster than they will once you have to buy the supplies, write the checks, and answer the phones yourself. Being overly optimistic with time and resources is a common error entrepreneurs make. Being realistic is important because it lends credibility to your presentation. Always assume things will take 20 percent longer than you anticipated. Therefore, twenty weeks is now twenty-four weeks.

6. Be logical.

Think like a banker and write what they would want to see.

7. Have a strong management team.

Make sure it has good credentials and expertise. Your team members don't have to have worked in the field. However, you need to draw parallels between what they've done and the skills needed to make your venture succeed. Don't have all the skills you need? Consider adding an advisory board of people skilled in your field and include their resumes.

Write Your Own Business Plan is available now at Entrepreneur Bookstore | Barnes & Noble | Amazon

8. Document why your idea will work.

Have others done something similar that was successful? Have you made a prototype? Include all the variables that can have an impact on the result or outcome of your idea. Show why some of the variables don't apply to your situation or explain how you intend to overcome them or make them better.

9. Describe your facilities and location for performing the work.

That includes equipment you use to create your products and/or services. If you'll need to expand, discuss when, where, and why.

10. Discuss payout options for the investors.

Some investors want a hands-on role. Some want to put associates on your board of directors. Some don't want to be involved in day-to-day activities at all. All investors want to know when they can get their money back and at what rate of return. Most want out within three to five years. Provide a brief description of options for investors, or at least mention that you're ready to discuss options with any serious prospect.

To dig deeper, buy Write Your Own Business Plan and get 1 month of free access to business planning software Liveplan Premium.

Money blog: Scotland introducing tourist taxes

Tourists headed to Scotland for holidays will face a tourist tax for hotels, bed and breakfasts and holiday lets. Read this and the rest of today's consumer and personal finance news in the Money blog below, and leave your thoughts in the comments box.

Thursday 30 May 2024 16:21, UK

• Scotland to introduce tourist taxes
• Think twice before buying clothes from Zara before your holiday
• Prospective parents putting off having children by cost of living crisis

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Ask a question or make a comment

Tourists headed to Scotland for holidays will face a tourist tax for hotels, bed and breakfasts and holiday lets.

The Scottish Parliament passed the Visitor Levy (Scotland) Bill two days ago, meaning local authorities can set a charge for overnight accommodation.

According to the bill, the fee will be a percentage of the cost of a hotel or other room.

For instance, a 1% levy on a £200 booking means a visitor would pay £2 in tourist tax.

However, any charges or levies will not come into effect until spring 2026, as councils will first have to consult local businesses before carrying out an 18-month implementation period.

Those receiving disability benefits will not pay any charges, with children and young people also exempt.

Ministers will also have the power to set a cap on the number of nights where a levy would apply.

It will also be up to councils if they want to put a charge in place - but with Holyrood research suggesting 17 of Scotland's 32 councils backing the plans, it is likely some visitors will be hit by charges.

Scotland's employment and investment minister Tom Arthur said on Tuesday the charge would be a " force for good", suggesting it "has the potential to be an important tool enabling investment in the local economy, and supporting an important industry".

However, Scottish Conservatives argued there needed to be a more "robust" exemption scheme, with housing spokesman Miles Briggs saying: "Scots will be pretty unhappy when they realise that they will have to pay a 10% tax to stay in a hotel when their house is flooded."

The new law means Scotland joins Manchester, Bournemouth, Christchurch and Poole in charging tourists to stay the night.

Manchester's £1-a-night City Visitor Charge was introduced last April, and is estimated to have raised around £2.8m in its first year.

European hotspots like Barcelona and Venice have also introduced tourist taxes, with the Spanish city charging visitors €3.25 if they're staying in official accommodation.

Workers posing as Disney favourites such as Mickey Mouse, Minnie Mouse and Snow White in California have formed a union - Magic United.

There are roughly 1,700 performers and assistants who help to bring popular characters to life at Disneyland near Los Angeles.

Disney has faced allegations of not paying them a living wage, despite many facing exorbitant housing costs and commuting long distances.

Parade performers and character actors earn a base pay of $24.15 (£19) an hour, up from $20 (£15.75) before January.

Read on here... 

Nike is celebrating a partial victory over rival brand Adidas in court, as it has been permitted to put three stripes on some of its clothing designs in Germany.

The decision came during a second appeal hearing between the two sportswear brands at a regional court in Dusseldorf.

The court previously barred Nike from using two or three stripes on five trouser designs due to a lawsuit filed by Adidas in 2022, which is on a mission to protect its trademark three-stripe design.

Following the appeal, Nike can now use the stripes on four disputed trouser designs, while a ban for one is still in place.

Adidas has filed dozens of lawsuits and signed hundreds of settlement agreements related to its three-tripe design since 2008.

The Conservatives and Labour have ruled out VAT hikes if either party wins the election.

Jeremy Hunt, the chancellor, said tax rises on products and services would "hammer families' finances", while shadow chancellor Rachel Reeves said Labour did not plan to raise tax, national insurance or VAT.

The pledges come after the Institute for Fiscal Studies said the next UK government would face the toughest fiscal inheritance in 70 years.

Ms Reeves said: "I want taxes on working people to be lower, not higher."

New tax rises were restricted to those policies already announced, such as a plan to charge 20% VAT on private school fees, she said.

Writing in The Telegraph, Mr Hunt said: "We won't increase the main rate of VAT for the duration of the next Parliament."

He continued: "A VAT increase will hammer families' finances and push inflation back up."

He urged Labour leader Sir Keir Starmer to make a similar commitment "on camera".

Follow all the latest election campaign news live in the Politics Hub ...

People who bank with TSB have had trouble getting into the mobile app this morning.

Many took to social media to report difficulty logging in to their accounts.

The official X account of TSB, responding to several complaints about the app being down earlier, said: "We're aware that customers are experiencing issues with our digital services. We're sorry for any inconvenience and are working hard to resolve it."

One customer reported that the app had remained down overnight:

In an updated statement, the bank said the issue has now been resolved.

"We're sorry for any inconvenience it caused," it said.

By Daniel Binns, business reporter

Shares in Auto Trader have rocketed more than 13% to a record high this morning.

It comes after the company reported a bumper set of results for the 2023/24 financial year - including a 26% rise in group operating profits.

The online car marketplace says recent demand has been strong - and it expects its performance to continue.

Dr Martens is also up on the FTSE 250 index - despite revealing it suffered an almost 43% fall in pre-tax profits during the 12 months to March (read more below...)

Its shares climbed more than 9% at one point earlier this morning, but have since eased back to almost 6%.

The British footwear brand has said it is "confident" it can revive its fortunes and says it plans to make savings of up to £25m to turn things around.

Elsewhere, the FTSE 100 is pretty flat - it opened 0.2% down but is currently up by a tiny 0.03%.

Mining firm Anglo American is among the companies hit by falls this morning.

Its shares have dropped by just over 1% after its rival BHP Group walked away from a proposed £38.5bn takeover of the company.

On the currency markets, £1 buys $1.27 US or €1.17 (or €1.1753, to be precise).

It comes after the pound reached a 19-month high against the Euro at one point yesterday - with £1 equalling €1.1784 - before later dropping back down.

The cost of a barrel of benchmark Brent crude has dipped slightly compared to yesterday. The price is $83 (£65).

If you're heading to Spain this summer and might get some of your holiday clothes from Zara, you might be better off waiting until you're over there.

The Spanish company sells items much cheaper over there - whether it's women's, men's or kids' clothes.

You can search prices in English on their Spanish website to get an idea of how much you'd save. 

We found big potential savings on just about every item we looked at - and the savings are even bigger than usual, with the pound reaching a two-year high against the euro yesterday.

For example, this white mini dress with ruffled hem is €27.95 in Spain but £32.99 (or €38.74).

A black dress described as "flowing voluminous" is €29.95 over there, but £35.99 (€42.27) in the UK.

These men's "balloon fit" jeans are €35.95 in Spain, but £45.99 (€54.01) in the UK.

A double-breasted blazer suit and trousers is €129.9 in Spain, but in the UK you'd pay £158.99 (€186.72).

Finally, a ruffled gingham kids' jumpsuit is €22.95 compared with £25.99 (€30.52).

Martin Lewis first highlighted these potential savings in 2015 when he wrote: "This isn't just about Zara similar pricing structures apply for other members of the same group, Massimo Dutti, Pull & Bear and Uterqüe."

A Zara spokesperson told the Money blog: "Zara's fashion offer is the same in the over 200 markets where it is available: quality, well-designed products at compelling prices. 

"These prices do vary between markets due to a number of factors which include shipping costs and exchange rates."

The supply of homes for sale has reached its highest level in eight years, according to a new report on the state of the housing market.

Zoopla said a 20% annual increase in properties has boosted choice for buyers and could help to steady house price growth over the rest of the year.

This idea is supported by Tom Bill, head of UK residential research at Knight Frank, who said growing supply is "one reason that UK house price growth this year will be limited to low single digits". 

According to Zoopla, the average estate agent office has 31 homes for sale - the highest level in eight years and up from a low of 16 in 2022.

The South West has seen "well above average" growth in the number of homes for sale, the property portal said, with a third more homes on the market across the region compared to a year ago.

The increase has likely been fuelled by planning changes in relation to holiday lets and the prospect of double council tax for second homes, Zoopla said.

According to Zoopla, a 13% increase in sales agreed has failed to keep pace with growth in the number of properties on the market.

Growth supply across the UK has been driven by a "rebound" in the number of three and four+ bed homes for sales as mover confidence improves, it said.

On property prices, Zoopla said there are still geographical divides with southern regions seeing "modest" falls, while the strongest price growth is seen in Belfast (3.6%), Burnley (2.5%) and Bolton (2.4%).

This compares to the biggest falls in Ipswich (-3%), Hasting (-2.7%) and Norwich (-2.4%).

The north-south divide is "primarily driven by affordability pressures in the face of higher mortgage rates", according to Zoopla - and it is expected to persist throughout 2024.

Richard Donnell, executive director at Zoopla said growth in the supply of homes for sale is "evidence of renewed confidence amongst homeowners".

Homeowners who are "serious about moving in 2024" should price their homes "realistically" to achieve a sale, he added.

Mr Bill said the "main obstacle" faced by buyers is "stubborn" inflation, which is keeping mortgage rates high.

"Asking prices therefore need to reflect the fact that buyers have more choice and tighter budgets," he said.

More than a fifth of would-be parents have made changes to their plans to start a family or have put it off altogether due to the cost of living, a new poll suggests.

Inflation has pushed expenses for the average family with young children up by more than £1,000 a month, research by mutual Royal London has found.

And despite inflation falling to its lowest level in nearly three years in April, the annual rate of price rises still stands at 2.3%, meaning life is still more expensive than it used to be.

Its survey of more than 4,000 adults reveals that 22% of people aged 18 to 34 have made alterations to their family planning due to the cost of living crisis.

Some 8% of people in this age bracket said they have delayed having children due to a lack of funds.

Nearly a fifth (18%) of surveyed adults who are parents said rising costs mean they have been left with no money for unexpected bills or emergencies.

Sarah Pennells, consumer finance specialist at Royal London, said it's clear that people are now "making changes to their longer-term life plans".

"When prices for food and energy were increasing, we saw people cut back and make changes to their spending and shopping habits, but now we're seeing that some major life decisions are being delayed as people are weighing up whether or not they can afford to act on the plans they'd made."

Lender Creditspring says having children is "fast becoming a luxury that is financially out of reach for a huge number of prospective parents". 

"Millions of younger people are in the impossible position of having to choose between children and their financial security," chief executive Neil Kadagathur said.

Every Thursday  Savings Champion founder Anna Bowes  gives us an insight into the savings market and how to make the most of your money.  This week, she's looking at Lifetime ISAs. 

With inflation falling and savings rates staying pretty stable, the majority of savings accounts are paying more than inflation. 

But if the interest is tax-free and you can benefit from a 25% government bonus on each deposit, that makes the Lifetime ISA (LISA) an even more important savings account to consider if you are eligible.

The top two accounts are not actually offered directly by banks but instead they are financial apps that use various partner banks which will vary from time to time. 

So you need to do your research to check that opening a LISA with either provider will not take you over the Financial Services Compensation (FSCS) limit, which is £85,000 per banking licence.

Introduced in April 2017, the LISA offers a much-needed boost for younger savers who are looking to save for a deposit on their first home or for retirement.

The LISA is the obvious choice for anyone aged 18-39, as you can deposit up to £4,000 a year and you'll receive a government bonus of 25% on each deposit, which you can keep as long as you use the proceeds to buy your first house - or until you are aged at least 60 as a retirement pot. 

And the proceeds are tax-free.

If you deposited a lump sum of £4,000 a year for five years, you would receive £1,000 bonus in the month after the deposit - and after five years, assuming an interest rate of 4.40%, which is the best cash LISA rate available, you would have around £28,500 - made up of:

• £20,000 personal deposit
• £5,000 government bonus
• £3,500 tax-free interest

There are plenty of rules to watch out for with a LISA too, so it's important to know the restrictions as well as the benefits before committing the money. 

For example, there is a penalty for withdrawing the cash before the age of 60 for anything other than a first home purchase and the LISA must be held for a minimum of 12 months to avoid the charge.

The penalty, if it were to apply, is 25% of the amount withdrawn.

Although this would seem to simply be a return of the government bonus, it actually works out that there is an extra penalty of roughly 6.25% that will apply. 

So, as well as losing the bonus, some of the money deposited would also be taken.

A LISA can be held in cash or in stocks & shares. 

The most appropriate choice would depend on timelines, with shorter term funds usually better kept as cash and invested stocks and shares ISAs being more suitable for long-term money (five-plus years). 

Any interest or growth would be tax-free within that Lifetime ISA wrapper.

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Understanding loan forgiveness options

How to qualify for student loan forgiveness, your guide to student loan forgiveness.

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate student loans to write unbiased product reviews.

• You can't get forgiveness with private student loans, unlike with federal ones.
• Certain federal student loan holders are eligible for forgiveness, such as nurses and teachers who meet specific requirements.
• Income-driven repayment plans offer forgiveness for a remaining balance after the payment term is up.

Public Service Loan Forgiveness (PSLF)  

Public Service Loan Forgiveness is a loan forgiveness program meant for those working in certain government or not-for-profit organizations. PSLF will be applied to the remaining balance that eligible borrowers have on their Direct Loans. Eligibility kicks in if you're working full-time for an eligible employer, and after the equivalent of 120 qualifying monthly payments have been made.

Teacher Loan Forgiveness (TLF)

The Teacher Loan Forgiveness program is designed for educators who don't have an outstanding balance on Direct Loans or Federal Family Education Loan Program (FFELP) loans, have been employed full-time for five consecutive academic years, have been employed at an elementary or secondary school, or educational agency serving low-income students, and lastly, the loans you're seeking forgiveness for must be from your minimum of five years of teaching.

Income-Driven Repayment (IDR) Forgiveness

An IDR plan restructures and bases your monthly student loan payment on your income and the size of your family, with the goal of setting up lower monthly payments. Under an IDR plan, at the end of your repayment term, any remaining balance will be forgiven.

Nurse Corps Loan Repayment Program

The Nurse Corps Loan Repayment Program (NCLRP) forgives educational debt for registered nurses, advanced practice registered nurses, and nurse faculty members.

Those who receive an award must have worked for at least two years in a critical shortage facility, or an eligible nursing school as a faculty member.

Perkins Loan cancellation and discharge

If you're an educator with a Federal Perkins Loan, it's possible to get 100% of your loan canceled incrementally. The following jobs are eligible for loan cancellation, under certain conditions:

• Elementary or secondary school teachers
• Special education teachers
• Preschool or Pre-K teachers
• Other educators
• Law enforcement
• First responders
• Nonprofit workers
• Those in the Military
• Health care workers
• Those who work with people with disabilities.

You may be eligible to get your Perkins Loan discharged if you've gone through any of the following life events:

• Certain types of bankruptcy
• School closure before you completing your program of study
• Total and permanent disability

Understand the specific requirements of each program

Every loan forgiveness program is different, and set up for different borrowers in different situations. Compare your options to identify your strongest chance for loan forgiveness.

Verify your loan eligibility

Even if you are in an eligible role for any of these forgiveness program, that doesn't mean the type of loan you have is eligible for loan forgiveness. 

Stay on top of your payments

For certain programs, such as IDR and PSLF, you are only eligible for loan forgiveness if you're up to date on your payments and your account is in good standing. 

Keep accurate records

To prepare your application and any questions the lenders may have, be sure to have all important documents on hand. That includes your employment verification, social security information, and other personal credentials. It also means keeping a record of your paystubs, payment history, and other relevant documents.

No, not all student loans are eligible for all programs. Be sure to check program details carefully.

The limit on how much student loan debt can be forgiven is entirely dependent on the program. PSLF, for example, may forgive the entire remaining balance.

Generally speaking, you have to pay taxes on forgiven student loans. Consult a tax advisor for specific details.

Private student loans are rarely forgiven, unless otherwise handled through specific employer programs. Most forgiveness is for federal loans.

Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards .

Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.

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7 tips for developing digital balance, from happiness experts: ‘Find that happy medium where technology is working for you'

If you're looking for a better balance between using digital devices and being more present, here are some tips from happiness experts., by renée onque,cnbc • published may 27, 2024 • updated on may 27, 2024 at 3:10 pm.

Digital devices provide unlimited access to so many things, and it can be both a gift and a curse.

Smartphones and laptops help us to stay connected to our loved ones through phone calls and video conferencing, Laurie Santos, a psychology professor who teaches Yale's most popular class ever, said in a recent podcast episode of "The Happiness Lab."

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At the same time, "research shows that our screens and apps and devices are making us less social, less present and even less happy," Santos added.

During the episode, Santos spoke to Amy Blankson , a happiness expert and co-founder of the Digital Wellness Institute, about ways that people can achieve a better balance when using digital devices.

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Here are a few of the tips that Blankson shared.

7 tips for developing 'digital balance' from happiness experts

"Digital balance is really finding that sweet spot. We call it a spot of 'digital flourishing' where it's not that you are addicted to technology and it's not that you're swearing it off either," Blankson said during the episode.

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"It's really that you're finding that happy medium where technology is working for you, not the other way around."

These are some of the tips that Blankson suggests for achieving digital balance:

• Practice the "really" rule: When you feel an urge to use your phone or turn on the TV, think about if it's really necessary for you to do it in the moment or if it's getting in the way of something else that you need to do. Ask yourself, "Do I really need to be using my device right now? Is this the best use of my time really?"
• Be mindful of the bottomless bowl: Some apps don't have a limit to how long you can scroll on them, which is commonly referred to as the bottomless bowl, Blankson said. "Those are the apps that are the most dangerous for us, the ones that suck us in the most and the ones that require us as individuals to be stronger and more intentional about setting boundaries for ourselves," Blankson added.
• Use stopping cues: To limit your time spent on devices, especially when using apps with the bottomless bowl structure, come up with a signal that will let you know how long you've been looking at your devices. Then use that signal as a sign that it's time to take a break from using the device, Blankson said. A simple tool you can use as a signal is a timer.
• Switch your phone into grayscale mode when you want to put it down: In your phone's settings, put your phone on grayscale mode. "Essentially what it does is it takes all of the color off of your screen, all the flashing lights, and sometimes you can turn off all the sound. So you get this very blank canvas," Blankson said. "It's so boring, you won't want to look at it anymore."
• Place your phone out of your line of sight: Put your phone behind your laptop or store it in a bag, so you're unable to see it while you're working on something. "The reason why this works is because the need to be needed is so strong that our eyes are actually flickering back and forth between our screen and our task or the person we're with because we might be needed," Blankson said. "By having it out of our line of sight, there's nothing to go check. There's nothing to interrupt us."
• Engage in some screen-free activities: Plan to connect with others through screen-free activities. Some choices that Blankson recommends include playing board games, creating art, sitting in stillness, cooking and trying new foods. Make a list of screen-free activities you like and participate in one when you feel like reaching for your phone.
• Use technology to enhance your productivity: Consider using an app for journaling that reminds you to write about your day or think about a few things that you're grateful for. Send a thoughtful text message once a day to one of your loved ones. Or try a meditation app to incorporate mindfulness into your day.

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