different names for business plans

5 Types Of Business Plans (+ Customizable Templates)

Find the best form of business plan for your venture and learn to align your business plan model with a winning strategy. Grab a template to get started.

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Short answer

What are the main types of business plans?

5 main types of business plans:

Startup business plan

One-pager business plan

Operational business plan

Feasibility business plan

Growth business plan

Aligning your strategy with the wrong type of business plan leads to failure

Crafting a sharp business plan is non-negotiable if you want your project to lift off the ground.

Yet, many miss the mark by not adapting their strategy to the appropriate type of business plan. It's like trying to open a door with the wrong key, frustrating and futile. This oversight can lead to miscommunication, disinterest from crucial stakeholders, and missed growth opportunities.

Here's where I step in, offering you a master key to unlock the true potential of effective business planning.

You'll learn about the strategic value of tailoring your plan to fit specific needs, whether you're kickstarting a venture, seeking investment, or plotting growth. Let's go.

What makes a successful business plan?

Creating a business plan that stands out involves more than just outlining your business's operations. It's about highlighting how your business differentiates itself and thrives within its industry.

Drawing inspiration from expert advice on business planning, here's an overview of the key elements that make a business plan successful. 6 key elements of a winning business plan:

Precision and structure: It's sharp, structured, and zeroes in on the business's main goals and strategies without unnecessary fluff.

Grounded objectives and forecasts: It sets attainable objectives and includes grounded financial forecasts, informed by thorough market analysis and industry insights.

Flexibility: It remains adaptable, ready to evolve alongside the business and shifting market dynamics.

Audience-specific design: It's crafted with the target audience in mind, whether that's attracting investors, securing loans, or engaging customers, ensuring it resonates and meets their expectations.

Clear communication: It communicates the business idea, market potential, and growth trajectory clearly and persuasively.

Defined action plan: It provides a clear set of steps to be undertaken to reach the business's goals, making it practical and actionable.

Internal vs. external business plan

The difference between internal and external business plans is based on their intended audience.

INTERNAL BUSINESS PLAN

EXTERNAL BUSINESS PLAN

Internal business plan

Internal documents tailored for departments such as marketing or HR emphasize succinct insights about the company and a more focused financial outlook. These documents usually adopt a less formal tone.

Purpose: Align your team and streamline operations.

Key approach: Focus on strategy, flexibility, and clear metrics.

Tip: Regularly review and update the plan, and encourage team feedback.

External business plan

External documents reach out to those outside your immediate circle, such as investors or partners. They provide a thorough overview of your company, including detailed financials, and maintain a formal tone, typically aimed at securing funding or establishing partnerships.

Purpose: Impress and persuade investors or partners.

Key approach: Ensure clarity, and professionalism, and tailor content to your audience.

Tip: Understand your audience's priorities, and seek expert feedback before finalizing.

5 types of business plans to align your strategy with

Picking the right business plan is a big deal for founders, managers, and leaders. But let's be honest, diving into the sea of options can feel overwhelming.

Whether you're chasing funding, dreaming of expanding or looking to streamline your operations, I've got you covered.

I'm talking about seizing opportunities to not just meet your goals but to exceed them. Let's dive in and align your ambitions with the perfect plan.

1) Startup business plan

Audience: External stakeholders, including investors and financial institutions.

Depth: Comprehensive and detailed.

Purpose: To outline the steps for launching a new venture and securing funding.

The startup plan is your blueprint for launching a new venture.

It's packed with everything from a punchy executive summary that grabs you with the business concept to deep dives into market trends and who you're up against.

It lays out financial forecasts with precision, giving potential backers a crystal-clear picture of where you're headed in terms of profits and what you need to get there.

This plan isn't just about pulling in funds; it's your strategic playbook for carving out a successful path forward. For newbies on the entrepreneurial scene, it's nothing short of essential.

Here’s an example of a start-up business plan:

2) One-pager business plan

Audience: External parties, such as potential investors, partners, and vendors.

Depth: High-level and succinct.

Purpose: To quickly communicate the business's value proposition and growth potential.

The one-page plan condenses the core of a business strategy into a succinct and impactful document, crafted to immediately capture the attention of potential investors, partners, and vendors.

It showcases the unique value proposition, targets the market with effective strategies, and highlights financial insights and growth potential.

This streamlined plan turns out to be a game-changer for entrepreneurs looking to share their vision and strategy in a clear, easy-to-understand way.

It quickly gets the point across and sparks interest from potential stakeholders, encouraging them to dive deeper.

Here’s an example of a one-pager business plan:

3) Operational business plan

Audience: Internal management teams and department heads.

Depth: Detailed, focusing on day-to-day operations and short-term goals.

Purpose: To streamline internal processes and enhance operational efficiency.

The operational business plan is like the company's playbook, focusing on fine-tuning every single part of your operations.

It lays out the operational goals that sync up with your big-picture strategies, breaking down the exact tasks and processes you need to nail those targets.

You've got everything mapped out, from streamlining workflows to boosting efficiency, and even who's doing what to ensure you're all pulling in the same direction.

It also covers allocating resources, from budgets to materials, ensuring every department has what it needs.

Diving into the nitty-gritty of your day-to-day, this plan is key for spotting where you can do better, ramping up productivity, and hitting your short-term goals more smoothly.

Here’s an example of an operational business plan:

4) Growth business plan

Audience: Both internal stakeholders for strategic alignment and external parties for investment or partnership opportunities.

Depth: This can vary from lean to standard, depending on the audience.

Purpose: To provide a strategic framework for business expansion.

The growth plan feels like launching into a new adventure, much like a startup plan, but for your next big leap.

It's about charting a course for new markets, beefing up your product lines, or scaling operations to new heights.

This plan packs deep dives into the business, financial forecasts that map out your journey, and a rundown of the resources you'll need to expand.

It's a guiding light for businesses aiming for sustainable growth, laying out a clear path and milestones to hit along the way.

Whether it's guiding your team internally or dazzling potential investors, the growth plan pulls everyone together, focusing efforts on shared growth targets.

It's about making sure every stakeholder is in sync, marching towards the same ambitious goals.

Here’s an example of a growth business plan:

5) Feasibility business plan

Audience: Primarily internal, though it can be external if linked to funding requests.

Depth: Focused and streamlined.

Purpose: To assess the viability of a new product or service.

A feasibility plan, or feasibility study, acts as a litmus test for proposed business expansions or new product launches.

It delves into the practicality of the idea, examining market demand, technical requirements, and financial implications.

By focusing on specific growth opportunities and analyzing them against objective standards, this plan helps decision-makers within the organization determine whether to proceed with the venture.

It's a critical step in the planning process, ensuring resources are allocated to projects with the highest potential for success.

For ventures requiring external funding, a more detailed version of this plan may be necessary to convince investors of the project's feasibility.

If you want to learn more, check out our guides on business plan:

7 Key Components of a Precise Business Plan (2024)

How to Write a Business Plan (Examples & Templates)

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

Create a Business Plan One-Pager (+ Proven Templates)

Don’t let poor design sabotage your business plan

Designing a business plan presentation in today's digital age goes beyond mere text on a page, it's about crafting an engaging experience that captures and retains attention.

With the shift towards digital, the presentation of your plan is as crucial as its content.

5 crucial business plan design principles:

1) Transition from static to interactive

The era of static, text-heavy presentations is behind us. Modern business plans thrive on interactivity, incorporating elements like clickable links, dynamic charts, and embedded videos.

This approach not only enriches the reader's experience but also fosters a deeper engagement with the material, making your business plan far more compelling.

Here's what a static PPT looks like compared to an interactive deck:

Static PowerPoint

Interactive Storydoc

2) Implement scroll-based design

Ditch the cumbersome PDF format for a scroll-based design that mirrors the seamless experience of browsing a modern website.

This design choice is intuitive and aligns with our habitual online content consumption, making your business plan both accessible and enjoyable to navigate.

Here's an example of scroll-based design:

3) Prioritize mobile-friendliness

In a world where mobile devices dominate, ensuring your business plan looks great on any screen is non-negotiable.

Adopting responsive design guarantees that your plan is legible and appealing across all devices, from smartphones to desktops, ensuring your message resonates clearly with every reader.

4) Move to online documents

Forget about clunky Word docs or static PDFs. The future is online documents that allow for real-time updates, easy sharing, and collaboration.

They're not only convenient for you but also for your busy investors, offering access from anywhere, at any time.

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

5) Master visual storytelling

Leverage the power of visuals infographics, charts, and graphs to narrate your business's story.

Visuals can simplify complex information, making your key points more digestible and engaging than text alone could ever achieve.

Here's a great example of visual storytelling:

All forms of business plan templates to get you started

Just as a captivating presentation can transform the way your message is received, a well-crafted business plan is your gateway to turning your business vision into reality.

Why settle for a dry, uninspiring document when you can create a business plan that's a dynamic blueprint for success?

Consider your business plan as a journey for your readers — investors, partners, or internal team members — keeping them engaged from the executive summary to the final appendix.

These business plan templates serve as the perfect foundation for this journey.

I am a Marketing Specialist at Storydoc, I research, analyze and write on our core topics of business presentations, sales, and fundraising. I love talking to clients about their successes and failures so I can get a rounded understanding of their world.

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BUSINESS STRATEGIES

7 types of business plans every entrepreneur should know

• Amanda Bellucco Chatham
• Aug 3, 2023

What’s the difference between a small business that achieves breakthrough growth and one that fizzles quickly after launch? Oftentimes, it’s having a solid business plan.

Business plans provide you with a roadmap that will take you from wantrepreneur to entrepreneur. It will guide nearly every decision you make, from the people you hire and the products or services you offer, to the look and feel of the business website you create.

But did you know that there are many different types of business plans? Some types are best for new businesses looking to attract funding. Others help to define the way your company will operate day-to-day. You can even create a plan that prepares your business for the unexpected.

Read on to learn the seven most common types of business plans and determine which one fits your immediate needs.

What is a business plan?

A business plan is a written document that defines your company’s goals and explains how you will achieve them. Putting this information down on paper brings valuable benefits. It gives you insight into your competitors, helps you develop a unique value proposition and lets you set metrics that will guide you to profitability. It’s also a necessity to obtain funding through banks or investors.

Keep in mind that a business plan isn’t a one-and-done exercise. It’s a living document that you should update regularly as your company evolves. But which type of plan is right for your business?

7 common types of business plans

Startup business plan

Feasibility business plan

One-page business plan

What-if business plan

Growth business plan

Operations business plan

Strategic business plan

01. Startup business plan

The startup business plan is a comprehensive document that will set the foundation for your company’s success. It covers all aspects of a business, including a situation analysis, detailed financial information and a strategic marketing plan.

Startup plans serve two purposes: internally, they provide a step-by-step guide that you and your team can use to start a business and generate results on day one. Externally, they prove the validity of your business concept to banks and investors, whose capital you’ll likely need to make your entrepreneurial dreams a reality.

Elements of a startup business plan should include the following steps:

Executive summary : Write a brief synopsis of your company’s concept, potential audience, product or services, and the amount of funding required.

Company overview: Go into detail about your company’s location and its business goals. Be sure to include your company’s mission statement , which explains the “why” behind your business idea.

Products or services: Explain exactly what your business will offer to its customers. Include detailed descriptions and pricing.

Situation analysis: Use market research to explain the competitive landscape, key demographics and the current status of your industry.

Marketing plan: Discuss the strategies you’ll use to build awareness for your business and attract new customers or clients.

Management bios: Introduce the people who will lead your company. Include bios that detail their industry-specific background.

Financial projections: Be transparent about startup costs, cash flow projections and profit expectations.

Don’t be afraid to go into too much detail—a startup business plan can often run multiple pages long. Investors will expect and appreciate your thoroughness. However, if you have a hot new product idea and need to move fast, you can consider a lean business plan. It’s a popular type of business plan in the tech industry that focuses on creating a minimum viable product first, then scaling the business from there.

02. Feasibility business plan

Let’s say you started a boat rental company five years ago. You’ve steadily grown your business. Now, you want to explore expanding your inventory by renting out jet skis, kayaks and other water sports equipment. Will it be profitable? A feasibility business plan will let you know.

Often called a decision-making plan, a feasibility business plan will help you understand the viability of offering a new product or launching into a new market. These business plans are typically internal and focus on answering two questions: Does the market exist, and will you make a profit from it? You might use a feasibility plan externally, too, if you need funding to support your new product or service.

Because you don’t need to include high-level, strategic information about your company, your feasibility business plan will be much shorter and more focused than a startup business plan. Feasibility plans typically include:

A description of the new product or service you wish to launch

A market analysis using third-party data

The target market , or your ideal customer profile

Any additional technology or personnel needs required

Required capital or funding sources

Predicted return on investment

Standards to objectively measure feasibility

A conclusion that includes recommendations on whether or not to move forward

03. One-page business plan

Imagine you’re a software developer looking to launch a tech startup around an app that you created from scratch. You’ve already written a detailed business plan, but you’re not sure if your strategy is 100% right. How can you get feedback from potential partners, customers or friends without making them slog through all 32 pages of the complete plan?

That’s where a one-page business plan comes in handy. It compresses your full business plan into a brief summary. Think of it as a cross between a business plan and an elevator pitch—an ideal format if you’re still fine-tuning your business plan. It’s also a great way to test whether investors will embrace your company, its mission or its goals.

Ideally, a one-page business plan should give someone a snapshot of your company in just a few minutes. But while brevity is important, your plan should still hit all the high points from your startup business plan. To accomplish this, structure a one-page plan similar to an outline. Consider including:

A short situation analysis that shows the need for your product or service

Your unique value proposition

Your mission statement and vision statement

Your target market

Your management team

The funding you’ll need

Financial projections

Expected results

Because a one-page plan is primarily used to gather feedback, make sure the format you choose is easy to update. That way, you can keep it fresh for new audiences.

04. What-if business plan

Pretend that you’re an accountant who started their own financial consulting business. You’re rapidly signing clients and growing your business when, 18 months into your new venture, you’re given the opportunity to buy another established firm in a nearby town. Is it a risk worth taking?

The what-if business plan will help you find an answer. It’s perfect for entrepreneurs who are looking to take big risks, such as acquiring or merging with another company, testing a new pricing model or adding an influx of new staff.

A what-if plan is additionally a great way to test out a worst-case scenario. For example, if you’re in the restaurant business, you can create a plan that explores the potential business repercussions of a public health emergency (like the COVID-19 pandemic), and then develop strategies to mitigate its effects.

You can share your what-if plan internally to prepare your leadership team and staff. You can also share it externally with bankers and partners so that they know your business is built to withstand any hard times. Include in your plan:

A detailed description of the business risk or other scenario

The impact it will have on your business

Specific actions you’ll take in a worst-case scenario

Risk management strategies you’ll employ

05. Growth business plan

Let’s say you’re operating a hair salon (see how to create a hair salon business plan ). You see an opportunity to expand your business and make it a full-fledged beauty bar by adding skin care, massage and other sought-after services. By creating a growth business plan, you’ll have a blueprint that will take you from your current state to your future state.

Sometimes called an expansion plan, a growth business plan is something like a crystal ball. It will help you see one to two years into the future. Creating a growth plan lets you see how far—and how fast—you can scale your business. It lets you know what you’ll need to get there, whether it’s funding, materials, people or property.

The audience for your growth plan will depend on your expected sources of capital. If you’re funding your expansion from within, then the audience is internal. If you need to attract the attention of outside investors, then the audience is external.

Much like a startup plan, your growth business plan should be rather comprehensive, especially if the people reviewing it aren’t familiar with your company. Include items specific to your potential new venture, including:

A brief assessment of your business’s current state

Information about your management team

A thorough analysis of the growth opportunity you’re seeking

The target audience for your new venture

The current competitive landscape

Resources you’ll need to achieve growth

Detailed financial forecasts

A funding request

Specific action steps your company will take

A timeline for completing those action steps

Another helpful thing to include in a growth business plan is a SWOT analysis . SWOT stands for strengths, weaknesses, opportunities and threats. A SWOT analysis will help you evaluate your performance, and that of your competitors. Including this type of in-depth review will show your investors that you’re making an objective, data-driven decision to expand your business, helping to build confidence and trust.

06. Operations business plan

You’ve always had a knack for accessories and have chosen to start your own online jewelry store. Even better, you already have your eCommerce business plan written. Now, it’s time to create a plan for how your company will implement its business model on a day-to-day basis.

An operations business plan will help you do just that. This internal-focused document will explain how your leadership team and your employees will propel your company forward. It should include specific responsibilities for each department, such as human resources, finance and marketing.

When you sit down to write an operations plan, you should use your company’s overall goals as your guide. Then, consider how each area of your business will contribute to those goals. Be sure to include:

A high-level overview of your business and its goals

A clear layout of key employees, departments and reporting lines

Processes you’ll use (i.e., how you’ll source products and fulfill orders)

Facilities and equipment you’ll need to conduct business effectively

Departmental budgets required

Risk management strategies that will ensure business continuity

Compliance and legal considerations

Clear metrics for each department to achieve

Timelines to help you reach those metrics

A measurement process to keep your teams on track

07. Strategic business plan

Say you open a coffee shop, but you know that one store is just the start. Eventually, you want to open multiple locations throughout your region. A strategic business plan will serve as your guide, helping define your company’s direction and decision-making over the next three to five years.

You should use a strategic business plan to align all of your internal stakeholders and employees around your company’s mission, vision and future goals. Your strategic plan should be high-level enough to create a clear vision of future success, yet also detailed enough to ensure you reach your eventual destination.

Be sure to include:

An executive summary

A company overview

Your mission and vision statements

Market research

A SWOT analysis

Specific, measurable goals you wish to achieve

Strategies to meet those goals

Financial projections based on those goals

Timelines for goal attainment

Related Posts

What is a target market and how to define yours

21 powerful mission statement examples that stand out

Free business plan template for small businesses

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12 Key Elements of a Business Plan (Top Components Explained)

Starting and running a successful business requires proper planning and execution of effective business tactics and strategies .

You need to prepare many essential business documents when starting a business for maximum success; the business plan is one such document.

When creating a business, you want to achieve business objectives and financial goals like productivity, profitability, and business growth. You need an effective business plan to help you get to your desired business destination.

Even if you are already running a business, the proper understanding and review of the key elements of a business plan help you navigate potential crises and obstacles.

This article will teach you why the business document is at the core of any successful business and its key elements you can not avoid.

Let’s get started.

Why Are Business Plans Important?

Business plans are practical steps or guidelines that usually outline what companies need to do to reach their goals. They are essential documents for any business wanting to grow and thrive in a highly-competitive business environment .

1. Proves Your Business Viability

A business plan gives companies an idea of how viable they are and what actions they need to take to grow and reach their financial targets. With a well-written and clearly defined business plan, your business is better positioned to meet its goals.

2. Guides You Throughout the Business Cycle

A business plan is not just important at the start of a business. As a business owner, you must draw up a business plan to remain relevant throughout the business cycle .

During the starting phase of your business, a business plan helps bring your ideas into reality. A solid business plan can secure funding from lenders and investors.

After successfully setting up your business, the next phase is management. Your business plan still has a role to play in this phase, as it assists in communicating your business vision to employees and external partners.

Essentially, your business plan needs to be flexible enough to adapt to changes in the needs of your business.

3. Helps You Make Better Business Decisions

As a business owner, you are involved in an endless decision-making cycle. Your business plan helps you find answers to your most crucial business decisions.

A robust business plan helps you settle your major business components before you launch your product, such as your marketing and sales strategy and competitive advantage.

4. Eliminates Big Mistakes

Many small businesses fail within their first five years for several reasons: lack of financing, stiff competition, low market need, inadequate teams, and inefficient pricing strategy.

Creating an effective plan helps you eliminate these big mistakes that lead to businesses' decline. Every business plan element is crucial for helping you avoid potential mistakes before they happen.

5. Secures Financing and Attracts Top Talents

Having an effective plan increases your chances of securing business loans. One of the essential requirements many lenders ask for to grant your loan request is your business plan.

A business plan helps investors feel confident that your business can attract a significant return on investments ( ROI ).

You can attract and retain top-quality talents with a clear business plan. It inspires your employees and keeps them aligned to achieve your strategic business goals.

Key Elements of Business Plan

Starting and running a successful business requires well-laid actions and supporting documents that better position a company to achieve its business goals and maximize success.

A business plan is a written document with relevant information detailing business objectives and how it intends to achieve its goals.

With an effective business plan, investors, lenders, and potential partners understand your organizational structure and goals, usually around profitability, productivity, and growth.

Every successful business plan is made up of key components that help solidify the efficacy of the business plan in delivering on what it was created to do.

Here are some of the components of an effective business plan.

1. Executive Summary

One of the key elements of a business plan is the executive summary. Write the executive summary as part of the concluding topics in the business plan. Creating an executive summary with all the facts and information available is easier.

In the overall business plan document, the executive summary should be at the forefront of the business plan. It helps set the tone for readers on what to expect from the business plan.

A well-written executive summary includes all vital information about the organization's operations, making it easy for a reader to understand.

The key points that need to be acted upon are highlighted in the executive summary. They should be well spelled out to make decisions easy for the management team.

A good and compelling executive summary points out a company's mission statement and a brief description of its products and services.

An executive summary summarizes a business's expected value proposition to distinct customer segments. It highlights the other key elements to be discussed during the rest of the business plan.

Including your prior experiences as an entrepreneur is a good idea in drawing up an executive summary for your business. A brief but detailed explanation of why you decided to start the business in the first place is essential.

Adding your company's mission statement in your executive summary cannot be overemphasized. It creates a culture that defines how employees and all individuals associated with your company abide when carrying out its related processes and operations.

Your executive summary should be brief and detailed to catch readers' attention and encourage them to learn more about your company.

Components of an Executive Summary

Here are some of the information that makes up an executive summary:

• The name and location of your company
• Products and services offered by your company
• Mission and vision statements
• Success factors of your business plan

2. Business Description

Your business description needs to be exciting and captivating as it is the formal introduction a reader gets about your company.

What your company aims to provide, its products and services, goals and objectives, target audience , and potential customers it plans to serve need to be highlighted in your business description.

A company description helps point out notable qualities that make your company stand out from other businesses in the industry. It details its unique strengths and the competitive advantages that give it an edge to succeed over its direct and indirect competitors.

Spell out how your business aims to deliver on the particular needs and wants of identified customers in your company description, as well as the particular industry and target market of the particular focus of the company.

Include trends and significant competitors within your particular industry in your company description. Your business description should contain what sets your company apart from other businesses and provides it with the needed competitive advantage.

In essence, if there is any area in your business plan where you need to brag about your business, your company description provides that unique opportunity as readers look to get a high-level overview.

Components of a Business Description

Your business description needs to contain these categories of information.

• Business location
• The legal structure of your business
• Summary of your business’s short and long-term goals

3. Market Analysis

The market analysis section should be solely based on analytical research as it details trends particular to the market you want to penetrate.

Graphs, spreadsheets, and histograms are handy data and statistical tools you need to utilize in your market analysis. They make it easy to understand the relationship between your current ideas and the future goals you have for the business.

All details about the target customers you plan to sell products or services should be in the market analysis section. It helps readers with a helpful overview of the market.

In your market analysis, you provide the needed data and statistics about industry and market share, the identified strengths in your company description, and compare them against other businesses in the same industry.

The market analysis section aims to define your target audience and estimate how your product or service would fare with these identified audiences.

Market analysis helps visualize a target market by researching and identifying the primary target audience of your company and detailing steps and plans based on your audience location.

Obtaining this information through market research is essential as it helps shape how your business achieves its short-term and long-term goals.

Market Analysis Factors

Here are some of the factors to be included in your market analysis.

• The geographical location of your target market
• Needs of your target market and how your products and services can meet those needs
• Demographics of your target audience

Components of the Market Analysis Section

Here is some of the information to be included in your market analysis.

• Industry description and statistics
• Demographics and profile of target customers
• Marketing data for your products and services
• Detailed evaluation of your competitors

4. Marketing Plan

A marketing plan defines how your business aims to reach its target customers, generate sales leads, and, ultimately, make sales.

Promotion is at the center of any successful marketing plan. It is a series of steps to pitch a product or service to a larger audience to generate engagement. Note that the marketing strategy for a business should not be stagnant and must evolve depending on its outcome.

Include the budgetary requirement for successfully implementing your marketing plan in this section to make it easy for readers to measure your marketing plan's impact in terms of numbers.

The information to include in your marketing plan includes marketing and promotion strategies, pricing plans and strategies , and sales proposals. You need to include how you intend to get customers to return and make repeat purchases in your business plan.

5. Sales Strategy

Sales strategy defines how you intend to get your product or service to your target customers and works hand in hand with your business marketing strategy.

Your sales strategy approach should not be complex. Break it down into simple and understandable steps to promote your product or service to target customers.

Apart from the steps to promote your product or service, define the budget you need to implement your sales strategies and the number of sales reps needed to help the business assist in direct sales.

Your sales strategy should be specific on what you need and how you intend to deliver on your sales targets, where numbers are reflected to make it easier for readers to understand and relate better.

6. Competitive Analysis

Providing transparent and honest information, even with direct and indirect competitors, defines a good business plan. Provide the reader with a clear picture of your rank against major competitors.

Identifying your competitors' weaknesses and strengths is useful in drawing up a market analysis. It is one information investors look out for when assessing business plans.

The competitive analysis section clearly defines the notable differences between your company and your competitors as measured against their strengths and weaknesses.

This section should define the following:

• Your competitors' identified advantages in the market
• How do you plan to set up your company to challenge your competitors’ advantage and gain grounds from them?
• The standout qualities that distinguish you from other companies
• Potential bottlenecks you have identified that have plagued competitors in the same industry and how you intend to overcome these bottlenecks

In your business plan, you need to prove your industry knowledge to anyone who reads your business plan. The competitive analysis section is designed for that purpose.

7. Management and Organization

Management and organization are key components of a business plan. They define its structure and how it is positioned to run.

Whether you intend to run a sole proprietorship, general or limited partnership, or corporation, the legal structure of your business needs to be clearly defined in your business plan.

Use an organizational chart that illustrates the hierarchy of operations of your company and spells out separate departments and their roles and functions in this business plan section.

The management and organization section includes profiles of advisors, board of directors, and executive team members and their roles and responsibilities in guaranteeing the company's success.

Apparent factors that influence your company's corporate culture, such as human resources requirements and legal structure, should be well defined in the management and organization section.

Defining the business's chain of command if you are not a sole proprietor is necessary. It leaves room for little or no confusion about who is in charge or responsible during business operations.

This section provides relevant information on how the management team intends to help employees maximize their strengths and address their identified weaknesses to help all quarters improve for the business's success.

8. Products and Services

This business plan section describes what a company has to offer regarding products and services to the maximum benefit and satisfaction of its target market.

Boldly spell out pending patents or copyright products and intellectual property in this section alongside costs, expected sales revenue, research and development, and competitors' advantage as an overview.

At this stage of your business plan, the reader needs to know what your business plans to produce and sell and the benefits these products offer in meeting customers' needs.

The supply network of your business product, production costs, and how you intend to sell the products are crucial components of the products and services section.

Investors are always keen on this information to help them reach a balanced assessment of if investing in your business is risky or offer benefits to them.

You need to create a link in this section on how your products or services are designed to meet the market's needs and how you intend to keep those customers and carve out a market share for your company.

Repeat purchases are the backing that a successful business relies on and measure how much customers are into what your company is offering.

This section is more like an expansion of the executive summary section. You need to analyze each product or service under the business.

9. Operating Plan

An operations plan describes how you plan to carry out your business operations and processes.

The operating plan for your business should include:

• Information about how your company plans to carry out its operations.
• The base location from which your company intends to operate.
• The number of employees to be utilized and other information about your company's operations.
• Key business processes.

This section should highlight how your organization is set up to run. You can also introduce your company's management team in this section, alongside their skills, roles, and responsibilities in the company.

The best way to introduce the company team is by drawing up an organizational chart that effectively maps out an organization's rank and chain of command.

What should be spelled out to readers when they come across this business plan section is how the business plans to operate day-in and day-out successfully.

10. Financial Projections and Assumptions

Bringing your great business ideas into reality is why business plans are important. They help create a sustainable and viable business.

The financial section of your business plan offers significant value. A business uses a financial plan to solve all its financial concerns, which usually involves startup costs, labor expenses, financial projections, and funding and investor pitches.

All key assumptions about the business finances need to be listed alongside the business financial projection, and changes to be made on the assumptions side until it balances with the projection for the business.

The financial plan should also include how the business plans to generate income and the capital expenditure budgets that tend to eat into the budget to arrive at an accurate cash flow projection for the business.

Base your financial goals and expectations on extensive market research backed with relevant financial statements for the relevant period.

Examples of financial statements you can include in the financial projections and assumptions section of your business plan include:

• Projected income statements
• Cash flow statements
• Balance sheets
• Income statements

Revealing the financial goals and potentials of the business is what the financial projection and assumption section of your business plan is all about. It needs to be purely based on facts that can be measurable and attainable.

11. Request For Funding

The request for funding section focuses on the amount of money needed to set up your business and underlying plans for raising the money required. This section includes plans for utilizing the funds for your business's operational and manufacturing processes.

When seeking funding, a reasonable timeline is required alongside it. If the need arises for additional funding to complete other business-related projects, you are not left scampering and desperate for funds.

If you do not have the funds to start up your business, then you should devote a whole section of your business plan to explaining the amount of money you need and how you plan to utilize every penny of the funds. You need to explain it in detail for a future funding request.

When an investor picks up your business plan to analyze it, with all your plans for the funds well spelled out, they are motivated to invest as they have gotten a backing guarantee from your funding request section.

Include timelines and plans for how you intend to repay the loans received in your funding request section. This addition keeps investors assured that they could recoup their investment in the business.

12. Exhibits and Appendices

Exhibits and appendices comprise the final section of your business plan and contain all supporting documents for other sections of the business plan.

Some of the documents that comprise the exhibits and appendices section includes:

• Legal documents
• Licenses and permits
• Credit histories
• Customer lists

The choice of what additional document to include in your business plan to support your statements depends mainly on the intended audience of your business plan. Hence, it is better to play it safe and not leave anything out when drawing up the appendix and exhibit section.

Supporting documentation is particularly helpful when you need funding or support for your business. This section provides investors with a clearer understanding of the research that backs the claims made in your business plan.

There are key points to include in the appendix and exhibits section of your business plan.

• The management team and other stakeholders resume
• Marketing research
• Permits and relevant legal documents
• Financial documents

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14 Types of Business Plans and Their Functions

Are you about starting a business but you don’t know what kind of business plan to write? If YES, here are 14 types of business plans and their functions.

A business plan is a formal written document that contains business goals, the methods on how these goals can be attained, and the time frame within which these goals need to be achieved. Business plans guide owners, management and investors during the start off stage of the business, and it equally guides the business as it grows from one stage to the other.

Savvy business owners write a business plan to guide management and to promote investment capital. Businesses without a solid plan typically burn out fast or fail to turn a profit in the long run. Without a well-planned business strategy, it is not possible for a business to scale through problems smoothly, and it would equally be an uphill task to achieve success.

A foolproof business plan highlights varying aspects of a potential business and integrates few essential features like business objectives, possible growth rate and many other characteristics that your business will include and assimilate. How to promote investment capital will be illustrated broadly in a business plan.

There are various kinds of business plans and in this article we will outline the various business plans and tell you the function of each.

• Start-Up Business Plans

One of the very popular business plans in the world of business is the startup business plan. The startup business plans contain an exhaustive approach for starting and growing a business. It is different from all other business plans because of its nature and the details that are taken into consideration right from the inception of the business till the growth stage along with the vision of at least five years.

With this business plan, new businesses need to detail the steps they need to take while starting a business. This document typically includes sections describing the company, the product or service the business will supply, market evaluations and the intended projected management team.

Potential investors will also require a financial analysis with spreadsheets describing financial areas including, but not limited to, income, profit and cash flow projections. Startup business plans can equally be used by established companies to launch a new product line or to enter an entirely new business segment in the market . Conglomerates use this plan if they are launching a new business.

• It xrays the Business:  The startup business plan explains what a business is all about by describing the products or services in detail and what the ultimate goals of the business are. For example, your plan may stipulate what your revenue goals are for each of your first three years of operation. Your plan should also indicate why you believe there is a need for your business and who your main competitors will be.
• Helps in securing funding: It’s no secret that businesses can’t function without any operating capital to kick-start their production cycle. Entrepreneurs are often required to take loans from financial institutions to purchase property, get the equipment or hire manpower. Startup business plans would help them access funding speedily.
• Outlines Possible Weaknesses:   Startup business plans helps businesses to find out the weaknesses of the business in question. Highs and lows are a part of life and without them; we wouldn’t feel the need for improvement. A startup business plan helps you preempt the lows and maximize the highs.
• It provides an execution plan: Describing how your business will function and perform in the market is important when dealing with sponsors and investors. A startup business plan will explain your products and services, your targeted customers, the required funds and what’s necessary for your startup to thrive
• Internal Business Plans

As the name suggests the internal business plan is for internal stakeholders of the business. This type of business plan helps to evaluate projects which are specific and they keep the team up to speed about the current status of the company.

The company has more chances of success if everyone in the team is entirely on board, that is why the internal business plan is needed to keep everyone in the company on the same lane. It contains strategies and ways to improve the current business working and suggests a new pattern for growth.

• It answers questions pertaining to the internal workings of the company: Is the company growing or declining? Does the working pattern need change, improvement or modification? These are the type of questions which internal business plans answer. The primary purpose of the internal business plan is not to show the balance sheet of the financial position of the company to the external stakeholders but it is to run the business as smoothly as possible.
• It targets specific teams to streamline their functions: Internal business plans target a specific audience within the business, for example, the marketing team who need to evaluate a proposed project. This document will describe the company’s current state, including operational costs and profitability, then calculate if and how the business will repay any capital needed for the project. Internal plans provide information about project marketing, hiring and tech costs.
• Strategic Business Plans

A strategic business plan provides a high-level view of a company’s goals and how it will achieve them, laying out a foundational plan for the entire company. While the structure of a strategic plan differs from company to company, most include five elements: business vision, mission statement, definition of critical success factors, strategies for achieving objectives and an implementation schedule.

A strategic business plan brings all levels of the business into the big picture, inspiring employees to work together to create a successful culmination to the company’s goals. These types of plans typically skip the more detailed financial data and milestones because they are not important to the team at this point.

Strategic business plans also help to create internal efficiency so you can get the best results. The strategic business plan also comprises business vision, mission statement, strategies for achieving objectives, success factors and implementation schedules.

• They help in the execution of business strategies: Strategic business plans help to outline how the company will get to where it wants to go. They outline the strategy your team must carry out to achieve your goals, including your strengths, weaknesses and how you’re going to utilize your opportunities.
• To keep the company focused: The primary purpose of the strategic business plan is to carve the way to go ahead and answer the questions like What are you going to get and How do you intend to go about it. These answers are nothing but the strategy that the team must execute in order to achieve their targets.
• Feasibility Business Plans

A feasibility business plan answers two primary questions about a proposed business venture: who, if anyone, will purchase the service or product a company wants to sell, and if the venture can turn a profit. Feasibility business plans include, but are not limited to, sections describing the need for the product or service, target demographics and required capital. A feasibility plan ends with recommendations for going forward.

• Identify the target market of a business:  The feasibility business plan determines who will purchase the service or product of the company.
• To answer the ‘why’ question of a company: The feasibility business plan describes the need for a product or service including the target demographics and the financials required to start the business.
• Operations Business Plans

Operations plans are internal plans that consist of elements related to company operations. An operations plan, specifies implementation markers and deadlines for the coming year. The operations plan outlines employees’ responsibilities. Operational business plans are typically very small because they are cut down to a year’s worth of information.

• It projects the business on a yearly basis: The operations business plan isn’t made to tell investors how you intend on turning a profit in the span of five years. It’s simply where you expect to be in 365 days. An annual plan can also be an internal plan (i.e., the strategy your employees intend to enact over the next year).
• It is used to scout for investors: The operations business plan can also be used to attract investors at the very beginning. Annual business plans are perfect for companies that expect to make big changes in the not-so-distant future. Investors love to see this.
• Growth Business Plans

Growth plans or expansion plans are in-depth descriptions of proposed business growth and are written for internal or external purposes. If company’s growth requires investment, a growth plan may include complete descriptions of the company, its management and officers. The plan must provide all company details to satisfy potential investors.

If a growth plan needs no capital, the authors may forego obvious company descriptions, but will include financial sales and expense projections. If you’re looking for a hyper-focused business plan, this is it. Growth or expansion plans focus on a specific area within your business, like opening a new location or launching a certain product.

Growth business plans are internal and external facing. Internal growth plans are a lean version of a strategic business plan. You’ll use them if your company’s growth or expansion is being funded internally, such as if you’re launching a new product line from the last product line’s revenue. You already know what you’re funding, so you don’t need to deeply explain the product.

For an external or investor-facing growth plan, you’re going to need some different information. This type of plan assumes that the bank, investor or individual you’re pitching doesn’t know much about your business at all. You’ll need to look at it like you’re a startup and include additional details about your growth or expansion.

• Helps a company attract investors:  Growth plans are aimed at investors and banks so as to attract external investment. This plan usually include everything in a standard business plan. You need the financial data and projections, the market research and the funding request.
• It helps to analyse the business on a yearly basis: Growth plans are also termed as Annual Business plan and as the name suggests, the plan is for annual purposes. These types of business plans are more important to startups. This is because you only need a years’ worth of information to write it.
• It helps during the time of big changes in company: Growth plans are very helpful to companies that are trying to make monumental changes in a short time.
• The Lean Plan

Businesses use the Lean business plan to manage strategy, tactics, dates, milestones, activities, and cash flow. The Lean Plan is faster, easier, and more efficient than a formal business plan because it doesn’t include summaries, descriptions, and background details that you and your partners or employees already know. A Lean Plan includes specific deadlines and milestones, and the budgets allotted for meeting them.

• It is used to track milestones:  The lean business plan is most useful if you’re trying to grow your business and want to use it as a tool to track your financials and milestones against what you projected so you can respond to opportunity and react to challenges quickly.
• The standard business plan

You’ll need to put together a stand business plan if you have a business plan event, which is what it is called when a business needs to present a business plan to a bank, prospective investor, vendor, ally, partner, or employee.

The most standard business plan starts with an executive summary and includes sections or chapters covering the company, the product or service it sells, the target market, strategy and implementation milestones and goals, management team, and financial forecasting, and analysis. The exact order of topics is not important, but most people expect to see all of these topics covered as part of the standard plan.

Think of your Lean Plan as a good first draft of a standard plan. Those complete projections include the three essential financial projections (also called pro-forma statements): profit and loss, balance sheet, and cash flow. Every standard business plan needs sales plus these three essentials.

• To analyze cash flow:  The cash flow is an essential part of a standard business plan. Businesses need cash to stay open. Even if a business can survive temporarily without profits, it still needs the cash to pay its bills. And since profits alone don’t guarantee cash in the bank, projected cash flow is essential.

Many standard plans also include a table for personnel spending. Some standard plans will need additional projections to meet the needs of the specific business plan event.

For example, plans for seeking outside investment should include a discussion of an eventual exit for investors, and of course the planned use of the invested funds. Plans supporting a bank loan application might include projected ratios the bank wants to see, such as debt to equity, quick, or current ratios.

• One-page business plan

A one-page business plan is typically a one-page summary of the business, and it includes highlights only. This business plan is used to offer a very quick overview of a business.

• To provide a quick business summary: The one-page business plan summarizes the target market , business offering, main milestones, and essential sales forecast of a business in a single page. Such a summary can be useful as a summary for banks, potential investors, vendors, allies, and employees. A one-page business plan can also be called a business pitch.
• The Miniplan

The miniplan is a sort of abridged version of the normal business plan. This business plan is preferred by many recipients because they can read it, or download it quickly to read later on their iPhone or tablet. You include most of the same ingredients that you would in a longer plan, but you cut to the highlights while telling the same story.

• It provides a quick overview of the business for investors:  The miniplan provides a quick summary of the business or company for someone who may not have the time to go through the longer version.
• The Presentation Plan

The advent of PowerPoint presentations changed the way many, if not most, plans are presented. And while the plan is shorter than its predecessors, it’s not necessarily easier to present. Many people lose sleep over an upcoming presentation, especially one that can play a vital role in the future of their business. But presenting your plan as a deck can be very powerful.

Readers of a plan can’t always capture your passion for the business nor can they ask questions when you finish. But in 20 minutes, you can cover all the key points and tell your story from concept and mission statement through financial forecasts.

• It helps to present the company in a detailed format to an audience: The presentation plan helps to present the company in a concise to a listening audience. In 20 minutes, you can cover all the key points and tell the story of your organisation from concept and mission statement through to financial forecasts.
• The Working Plan

A working plan is a tool to be used to operate your business. It is usually long on detail but may be short on presentation. As with a miniplan, you can probably use a somewhat higher degree of informality when preparing a working plan. It is there to work for your company and provide the required guide.

The plan is usually intended strictly for internal use, and so you can omit some elements that you need not explain to yourself and your team. Likewise, you probably don’t need to include an appendix with resumes of key executives. Nor would a working plan especially benefit from product photos.

• It provides guidelines for the day to day running of the business: The working plan is like an old pair of slacks you wear to the office on Saturdays. It’s there to be used, not admired. It provides pointers on how things are to be done in the company.
• The What-If Plan

When you face unusual circumstances, you need something a bit different from your usual working plan. For example, you might want to prepare a contingency plan when you’re seeking bank financing.

A contingency plan is a plan based on the worst-case scenario that you can imagine your business surviving—loss of market share, heavy price competition, defection of a key member of your management team. A contingency plan can soothe the fears of a banker or investor by demonstrating that you have indeed considered more than a rosy scenario.

Your business may be considering an acquisition, in which case a pro forma business plan (some call this a what-if plan) can help you understand what the acquisition is worth and how it might affect your core business. What if you raise prices, invest in staff training and reduce duplicative efforts?

Such what-if planning doesn’t have to be as formal as a presentation plan. Perhaps you want to mull over the chances of a major expansion. A what-if plan can help you spot the increased needs for space, equipment, personnel and other variables so you can make good decisions.

• It helps in analyzing various business scenarios, good or bad: If a company wants to make sudden changes, a what-if business plan is used to analyse the changes properly so the company knows what it is getting itself into.
• They provide insight: This business plan provides insight into the decisions companies makes at every point in their existence. What sets these kinds of plans apart from the working and presentation plans is that they aren’t necessarily describing how you’ll run the business. They’re essentially more like an addendum to your actual business plan.
• It helps the company make good decisions: A “what if” plan helps a company consider major changes that affect the core of the business, so they can make good decisions. It’s the plan you should consider before you consider any expansion or growth plan.

14. Development Business Plan

Development plans or extension plans are top to bottom depictions of proposed business development and they are composed to display inward or outside purposes of a business. A development policy incorporates overall details of the organization, its administration and responsibility the personnel share among themselves.

The policy must show the organization detail and emphasize the elements required to fulfill potential speculators. If in case the development plan requires no capital, the plan composers may pass by those organization portrayals, but will surely incorporate money related deals and cost projections.

• It is used in detailed industry analysis: A development policy incorporates overall details of the organization, its administration and responsibility the personnel share among themselves.

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What Is a Business Plan?

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

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

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

Key Takeaways

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

Investopedia / Ryan Oakley

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

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

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

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

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

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

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

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

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

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

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

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

2 Types of Business Plans

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

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

Why Do Business Plans Fail?

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

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

What Does a Lean Startup Business Plan Include?

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

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

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

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

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

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What are the benefits of a business plan, examples of business feasibility reports.

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Business plans guide owners, management and investors as businesses start up and grow through stages of success. A business owner or prospective business owner writes a business plan to clarify each aspect of his business, describing the objectives that will anticipate and prepare for growth. Savvy business owners write a business plan to guide management and to promote investment capital.

Types of business plans include, but are not limited to, start-up, internal, strategic, feasibility, operations and growth plans.

Start-Up Business Plans

New businesses should detail the steps to start the new enterprise with a start-up business plan. This document typically includes sections describing the company, the product or service your business will supply, market evaluations and your projected management team. Potential investors will also require a financial analysis with spreadsheets describing financial areas including, but not limited to, income, profit and cash flow projections.

Internal Business Plans

Internal business plans target a specific audience within the business, for example, the marketing team who need to evaluate a proposed project. This document will describe the company’s current state, including operational costs and profitability, then calculate if and how the business will repay any capital needed for the project. Internal plans provide information about project marketing, hiring and tech costs. They also typically include a market analysis illustrating target demographics, market size and the market’s positive effect on the company income.

Strategic Business Plans

A strategic business plan provides a high-level view of a company’s goals and how it will achieve them, laying out a foundational plan for the entire company. While the structure of a strategic plan differs from company to company, most include five elements: business vision, mission statement, definition of critical success factors, strategies for achieving objectives and an implementation schedule. A strategic business plan brings all levels of the business into the big picture, inspiring employees to work together to create a successful culmination to the company’s goals.

Feasibility Business Plans

A feasibility business plan answers two primary questions about a proposed business venture: who , if anyone, will purchase the service or product a company wants to sell, and if the venture can turn a profit. Feasibility business plans include, but are not limited to, sections describing the need for the product or service, target demographics and required capital. A feasibility plan ends with recommendations for going forward.

Operations Business Plans

Operations plans are internal plans that consist of elements related to company operations . An operations plan, specifies implementation markers and deadlines for the coming year. The operations plan outlines employees’ responsibilities.

Growth Business Plans

Growth plans or expansion plans are in-depth descriptions of proposed growth and are written for internal or external purposes. If company growth requires investment, a growth plan may include complete descriptions of the company, its management and officers. The plan must provide all company details to satisfy potential investors. If a growth plan needs no capital, the authors may forego obvious company descriptions, but will include financial sales and expense projections.

• Entrepreneur: The 4 Types of Business Plans
• YourBusinessPal.com: Business Plan Example
• BPlans.com: Free Sample Business Plans

Alyson Paige has a master's degree in canon law and began writing professionally in 1998. Her articles specialize in culture, business and home and garden, among many other topics.

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300+ Business Name Ideas to Inspire You [+7 Brand Name Generators]

Published: March 11, 2024

Your ticket to standing out in a crowded market is having a business name that is unique, memorable, and attention-grabbing. To help you get started, I’ve put together a comprehensive list of business name ideas that can set you up for success as you launch a business .

These unique business names will help you build a memorable brand — one that your customers will recognize online, in advertisements, or at stores — and one that will ensure your products and services stand out from the competition.

As the former head of marketing for two different startups, I’ve learned that choosing the right business name is critical. Below, I’ll share some of my top business name ideas to inspire you as you brainstorm your own. Then, I’ll dive into what makes a business name great, how to name your business, and some of my favorite examples of creative business names.

Business Name Ideas

How i developed the best company name ideas for this list, 7 attributes of a great company name, how to name a business, company name examples, creative business name generators.

To kickstart your company naming journey, here are some unused company name ideas. These business name ideas aren’t just for inspiration — they’re available to use, so feel free to use any that suits your business.

Once you choose a business name, use HubSpot’s free Brand Kit Generator to create a logo for your new business.

Free Business Naming Workbook

9 templates to help you brainstorm a business name, develop your business plan, and pitch your idea to investors.

• Business Name Brainstorming Workbook
• Business Plan Template
• Business Startup Cost Calculator

You're all set!

Click this link to access this resource at any time.

Small Business Name Ideas

• BlissSlim (Weight loss products)
• Jellysmith (Jelly company)
• SalesPushy (Sales training and consulting)
• Formonee (Fintech platform)
• GoAhead Co. (Design agency)
• Jump & Pass (Health and wellness)
• Wire2me (Financial services)
• Savvy Scholars (Elearning platform)
• S3 (Smart, Safe, and Secure) (Web security services)
• Blaze Cloud (Cloud storage)
• Your Security First (Security company)
• Sudden Supply (Supply chain management)
• Strategene (Asset management)
• DareDeserve (Tutoring and/or support services)
• Conveniently Timely (Delivery tools and services)
• HerdDream (Farming operations)
• Whole Life Synergy (Financial or long-term care planning)
• PeopleFirstPro (HR training)
• MissionMentor (Life coaching)
• Golden Years Guidance (Retirement planning)
• CapitalCurrent (Accounting and other financial services)
• TeachTech (IT training services)
• Tacteach (Life skills training)
• AccomplishNet (Networking services)
• Expedite Access (Product and fulfillment sourcing)
• GoalGenius (Goal-setting products)
• FearlessPeak (Adventure tour services)
• TimeQuest (Ancestry research)
• DreamTide (Health and wellness products)
• SynergyCycle (Corporate event services)
• EduGuru (Tutoring services)
• Tactink (Project management)
• Flyquest (Aviation training services)
• BoldSwap (Stock portfolio management services)
• Hobyz (Product hub with hard-to-find products for hobbyists)
• IdeaBoost (Creative services)
• JoinVisions (Networking services)
• StellarServe (Customer service)
• Aspirecraft (Creative services)
• Ambition Forge (Startup services)
• Quantumful (Data analysts)
• Ultimate Climb (Mountaineering classes)

Unique Business Name Ideas

• Quirky Observations (Boutique consulting firm)
• Dr. ChuckleMeds (Pharmacy)
• Sell-O-Rama (Ecommerce marketplace)
• Farm With Crowdee (Agriculture crowdfunding)
• ExploreAbundance (Life coaching)
• BuildCatalyst (Construction services)
• FunTastic Ventures (Local tour services)
• GlowGrid (Nightlight products)
• Social Bridge (Social media services)
• Odysseyshare (Gaming center)
• TogetherPath (Dating adventure services)
• CelsiusSpark (Personal trainer services)
• BagBurst (Accessories for new parents)
• Mitchell Crow (Vintage fashion brand)
• WhizWhip (Healthy snacks)
• StandoutStanley (Alternative athletic gear)
• EclectiChairs (Quirky furniture)
• ActioNexus (Motivational organization)
• Ignition Leap (Recruiting agency)
• Impacter (Influencer member org)
• Primerise (Startup services)
• Excelship (Financial services)
• Turbotonic (Beverage products)
• Progress Path (Project management)
• Idea Craftery (Creative services)
• PropelPal (Freelance agency)
• Cadence Core (Talent agency)
• Innovexpress (Creative agency)
• Connectverse (Networking services)

Catchy Business Name Ideas

• Shimmer Shake (Dance company)
• Odd Coupling (Dating services)
• RiseShineSustain (Environmental organization)
• YesAchievers (Tutoring services)
• Timeframe Genius (Project management)
• Goalcraft (Life coaching)
• ProfitPioneer (Financial advisory)
• VacayVentures (Group vacation services)
• NexusCore (Workout equipment)
• WindRush Trading (Financial services)
• Elevolution (Hiring services)
• Innoviary (Ad agency)
• Trekwise (Travel services)
• Braventure (Risk-taking services)
• Bubblit (Beverage products)
• PulseCharge (Fitness products)
• GlamGo (Fashion products)
• Culinatine (Restaurant)
• Eternivault (Online archiving services)
• Clicknect (Online services)
• ZenZest (Health and wellness)
• RideRev (Transportation services)
• SnapSavor (Photo services)
• MotionFit Studio (Fitness services)
• StellarSoul (Lifestyle services)
• Dream Mashup (Design services)
• Quantum Quota (Data analysts)
• Zenitharian (Future planning)
• Disco's Edge (Nostalgia products)
• StyleQuest (Secondhand store)

Marketing Company Business Name Ideas

• Expandfluence
• MovementNow
• Welcome/Story
• Positioning Awareness
• Marketsters
• Presence Rebrand
• LeadGen Pro
• OptiSuccess
• BrandReclaim
• ContentCrafters
• Tech Triggers
• Persuade360
• InfluenceRise

Real Estate Company Name Ideas

• ImagineLands
• HouseManage Pro
• Urbanspace Agency
• Rustic Manor Realty
• Inner Harmony Realty
• Cosmos Dwellings
• Noble Houses
• WisdomWise Homes
• RadiantHomes Realty
• PropSol Management
• EliteHome Ventures
• TopTerra Estates
• InfinityHouse Agency
• LuxeDomain Realty

Tech Company Name Ideas

• TrustTech Innovations
• Enigma Tech
• Secure Frontiers
• ShareHub Technologies

Consulting Business Name Ideas

• Focused Minds
• Triumphtician
• Imperial Insights
• ProSpectra Solutions
• CatalystX Strategies
• SocialBuzz Advisors
• AlphaStrategists
• TransformNet Consulting

Software Company Name Ideas

• EffortlessCoding
• SafetyShield Solutions
• Illuminate Coding
• TechCuriosity Labs
• Engineerenigma
• Code Conundrum
• VelocityByte

To create and curate the list of business name ideas above, I used the following process, combining research, AI, and a dash of creativity.

First, I wrote out a list of words to describe the emotions that small businesses strive to elicit, like loyalty, productivity, and satisfaction. Then, I added words for business goals for all types of businesses, like quality, cash flow, and awareness. Finally, I added motivational words to the list, like commit, imagine, and uplift. This led to a list of about 200 words.

I used an AI tool to generate some business name ideas. I started with the prompt, “Create 20 original business names inspired by the following ideas.” Then, I edited each prompt with different sections of the list.

The steps above created 816 potential business names. I figured this was a great collection of business names, and it would be easy to pull out 100+ names with potential. But a quick review gave me just 74 business names I liked and most of those needed a lot of editing.

So, I tried again. To develop more useful business names for inspiration, I created a list of popular brand names from different industries. Then, I asked the AI tool to create more business names for each category that aligned with the tone and feel of each industry.

I also edited the prompts and results by asking for business name alternatives with a specific tone or “vibe.” This last step helped to yield business name ideas that matched what I liked best about existing companies’ brand names. I added to these names by grabbing some options from a business name generator.

Once I had a list of about 200 business name ideas, it was time to start editing. Some of the AI business names were great. But others needed more personality, so I sat down with a notebook and my list of names to experiment.

The Make My Persona tool was useful for this process. I used this tool to build an ideal persona for each business type. These personas helped me keep the customer in mind as I edited each business name.

Sometimes, just changing a few letters, capitalization, or spacing was enough. Other times, the act of writing inspired completely new business name ideas. Through this process, I came up with 155 new business names. The list of names felt pretty unique, so I didn’t think that I would find much during a domain check.

But I was wrong: The domain check cleared out 73 of the 155 names I’d come up with. Overall, I lost 47% of my list of business names.

At first, I was frustrated — but this was actually a positive outcome. It meant that the names I’d come up with were workable for a successful business. But it was also a reminder of how important it is to come up with more than a couple of business name ideas when you’re naming your new business.

For business names where the .com domain was unavailable but other domains were open, I did an online search for the business name. This step reminded me that any new business isn’t just competing with other companies in a given industry. It's also competing with bands, Twitch streamers, YouTube influencers, and more.

For example, “Propellant” sounds like an exciting and easy-to-remember business name for a startup. But it’s also a word in the dictionary and a component of rocket fuel. So even if this domain was available, it probably wouldn’t be a great business name, because it would be hard to find online.

Free Business Startup kit

In total, this process took many hours and several rounds of edits to bring you a list of over 160 business names. Your naming process may not take quite as long, but chances are it will feel even more complex and urgent.

I know that the steps above might sound like a lot of work for just a word or two. But your business name is the center of your new brand. Over time, the name will take on more meaning as you grow your business and establish your value proposition.

29. The Ivy Vine

I just love how this name rolls off the tongue. While this florist doesn’t only sell ivy (or vines), its name clarifies the type of business while also being somewhat alliterative.

Catchy Company Names

If you’re in need of catchy business name inspiration, look no further. Here are some of my favorite names from real companies. These are business names that grab the attention of potential customers and clients alike.

A catchy business name may include alliteration or some sort of rhyme scheme —but most importantly, a catchy company name creates a connection in the brain to that particular company and/or product.

• SilverSingles
• Hewlett-Packard
• Caterpillar
• Triumph Motorcycles
• Rolls-Royce
• Aston Martin
• Apache Spark
• Apartment Therapy
• Four Cousins
• Brookline Booksmith

Creative Company Names

I’ve learned that it can be challenging to think of a creative and unique business name. Here are a few examples of real, creative business names to inspire you.

• Bon Appetit
• Copper Cow Coffee
• Bonfire Adventures
• Semicolon Books
• Verywell Mind
• Rocket Lawyer

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Use this free workbook to come up with a standout business name.

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Naming Product Tiers: 15 Examples Of Exciting Product Tier Names

May 22, 2020

Naming product tiers, or coming up with creative tier names for plans and packages, can be a difficult creative process and be quite a headache.

But product tiers are a necessary part of marketing and product. You want at least a few tiers to offer your customers so that they have a choice. You don’t want too many because that will cause analysis paralysis . You also don’t want too few because your prospects may feel like you don’t cater to their needs.

And on top of that, they should at least sound quite good! (Which is why we need creativity)

But fret not! Here are some ideas that you can use to determine how your plan and product tiers are named.

Naming Product Tiers: Using A Product Attribute

One thing that you might want to consider is that product tiers may change over time. If you define your tiers tied to a product attribute, make sure the product attribute doesn’t change. For example, in gas or petrol, it’s common to have the octane in the product tiers, like what Shell does:

• Shell FuelSave 95
• Shell FuelSave 98

Naming Product Tiers: KISS

Personally, I found that simple is better when coming to product tier names. You can even use numbers or letters.

• Intermediate
• Package 1 / Plan A
• Package 2 / Plan B
• Package 3 / Plan C

Alternatively, you can also have product tier names in relation to size:

You can also make use of flora and fauna. You can name your product tiers according to how fast your customer wants results. In which case, you might be able to use the size or speed of animals, like:

Or to showcase a process of growth, you can use the size of a plant:

You can also go with a more corporate slant to things:

Naming Product Tiers: Real-world Examples

Zoom uses these tiers. It’s simple, classic, and works. Generally, I stay clear of the words “Basic” or “Standard” in paying tiers. Unless the tier is really basic, it doesn’t give your customers a good feeling.

Zendesk uses

• Professional

You can also use precious metals, as such:

Speaking of precious metals, American Express uses these in their credit card tiers. I honestly think they messed this up, since it gets a bit confusing between the Platinum credit card and the Platinum Card.

• Platinum Credit Card
• Platinum Reserve
• Platinum Card

Other than precious metals, you can also use gemstones for your product tiers, which is what companies like Amway does.

• And double diamond, triple diamond, founders diamond, etc

Banking levels typically have these different tiers too:

Naming Product Tiers: Modifiers

Other things that you can consider are modifiers. This is especially useful when you start your business, and after a while, you realise that you need to create an in-between plan.

Imagine starting with these 3 plans and product tiers.

Now maybe you realise that the Premium tier is too far away from the Elite tier, and you need something in between.

You can create a brand new tier, but giving it a completely different name isn’t ideal too because it’s not enough to be a separate tier on its own. This is when modifiers come in, like in the case of the new “Premium Pro” product tier below.

• Premium Pro

Naming Product Tiers

Whenever I start a business, product tiers is one of the first few things that I have to do. However, the names of your product tiers aren’t the most crucial to the success of your business.

What’s more important is the actual pricing and benefits that your products have to offer to your customers.

It involves some consumer psychology, but properly-priced product tiers will funnel your customers to a product tier that you want as well. This forms the fundamentals that you need before you can scale up your business .

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Creative Membership Level Names: How to Name Your Subscription Tiers

Table of Contents

• 1 What Are Membership Level Names?
• 2.1 Paid Member Subscriptions Pro
• 3.1 1. Price/Term-Based Membership Levels
• 3.2 2. User Type-Based Membership Levels
• 3.3 3. Content Delivery Type-Based Membership Levels
• 3.4 4. Tiered/Content Access Membership Levels
• 3.5 5. Supporter-Based Membership Levels
• 3.6 6. Interest-Based Membership Levels
• 4.1 Focus on the Differences In Your Plans
• 4.2 Think About Your Audience
• 4.3 Create a Clear Hierarchy (for Tiered Membership Levels)
• 4.4 Nudge People Towards a Certain Plan
• 5.1 Paid Member Subscriptions Pro

Struggling to come up with creative membership level names for your membership community? Or should you even be using creative membership tier names in the first place? Is it better to just keep things simple and straightforward?

When you’re building a membership website, coming up with your plan names can be a tricky subject.

Don’t worry – we’re here to help.

In this post, we’re going to dig into everything that you need to know about naming your membership levels. Here’s what we’ll cover:

• What membership level names are and why they matter;
• Six different approaches to naming your plans, including some examples of creative membership level names;
• How to come up with your own tier names.

If you’re using Paid Member Subscriptions to make a membership site, this post will help you name your subscription plans. And even if you’re not, you’ll still find plenty of useful information to help you make a better membership website.

Let’s dig in!

What Are Membership Level Names?

With a membership website , you allow users to register on your site and become “members”. They could become members to access exclusive content , support your site, get access to one-on-one coaching, or pretty much anything else.

The key thing is that, on most membership sites, not all memberships are created equal – you typically have different “tiers” or “levels” of membership.

Different users might get access to more content, more features, more one-on-one access, etc. Or, you might have different payment terms for the same basic plan, such as offering monthly and annual payments.

Well, each of those different “tiers” needs a name so that you can differentiate them, and that’s what membership level names are.

Why Do Membership Level Names Matter?

How you name your membership levels matters for a few reasons.

The first is basic clarity. Just by looking at the name, you want people to have a good idea of what it offers. For example, if one membership works on annual billing and the other on monthly billing, you want to make that clear with your naming structure.

The second is branding. For a lot of websites, membership level names offer a fun way to add branding to the site – we’ll look at some real-world examples of this in the next section.

Finally, membership tier names are also important from a psychological conversion optimization perspective. We’ll talk about this later on in the post, but the basic idea is that membership names can push or pull subscribers toward certain plans, which is important if you’re trying to maximize your revenue.

For example, would you rather be a “Basic Member” or an “Elite Member”? Taken in a vacuum, most people would rather be elite than basic.

Of course, there’s more to convincing people to join than just the name – the pricing and value matter, too. But your names do play a key role in communicating value and hierarchy to your members, which is why it’s important to get them right.

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Six Different Approaches to Subscription Plan Names + Real Examples

There are a lot of different approaches that you can use to name your subscription plans. Some are creative, while others are straightforward. We’ll talk about how to pick the right approach for your community in the next section, but first let’s just go over what your different options are, along with some real-world examples of each.

1. Price/Term-Based Membership Levels

Let’s start at the beginning with one of the simplest membership level naming conventions – naming your levels based on the price and payment term.

Typically, you’ll use this when your plans have the exact same access/features, but the only difference is the payment term.

For example, with Tennis TV, you just get two membership plan options:

With Babbel, you get more options, with each named after the number of months that you get access:

Common options here are names like:

• Annual/Annually
• X months (e.g. 1 month, 3 months, 6 months, etc.)

There’s nothing really creative about this structure, but the names make it very clear what subscribers get for their money.

2. User Type-Based Membership Levels

User type membership levels are subscription plans where each plan is targeted towards a specific type of user or group of users. Common examples are:

For example, Spotify offers four different membership plans, each named after the type of user or users that the plan is focused on:

Apple Music uses almost the exact same structure, though it lacks the Duo plan and it offers the Voice plan:

Or, if you sell to both individuals and businesses, you could use a structure like this:

This type of naming structure can be especially useful if you sell both individual and group membership plans because it instantly lets people know which option is right for their situation.

3. Content Delivery Type-Based Membership Levels

If you offer different ways to consume content that vary between plans, using a content delivery type-based membership naming convention can be a good naming convention to quickly tell subscribers how they’ll be able to consume content with each plan.

You’ll see this structure a lot with media companies and news organizations. For example, the Wall Street Journal offers membership levels for:

• Print + Digital

These names certainly aren’t creative, but they do quickly let people know how they’ll be able to consume content with each plan.

You can also use this naming convention for video or audio content. For example, maybe you offer video content, but one membership plan only gets people access to HD content while the other offers 4K content.

4. Tiered/Content Access Membership Levels

Many membership sites use tiered membership levels. These are configurations where each level of membership gets access to different features, content, privileges, etc.

Unlike the previous membership naming structures, tiered membership levels open the door to a lot of creativity because you can use pretty much any name for each tier ( which isn’t the case for some other naming conventions ).

With that being said, you do still typically want to incorporate two details into your tiered naming convention:

• You should make the names relevant to your niche. This helps with branding.
• Even if you’re being creative, you still want to highlight the hierarchy. So your top-tier plan should be “better” than your entry-level plan. We’ll talk about this in more detail later on .

Going (formerly Scott’s Cheap Flights) is a great example of creative membership level names.

At first, the names seem pretty generic. After all, “Premium” and “Elite” are pretty common terms. But the magic is the fact that Going is focused on helping people find cheap airfare deals.

So instead of being generic, “Premium” and “Elite” are actually creative terms that line up with the fare classes that many airlines use.

On the other hand, you don’t always need to be creative, and a lot of brands go for more “traditional” tiered membership level names like the following:

This approach can be a good option if you’re in a more “traditional” niche or if your audience tends to be more traditional.

5. Supporter-Based Membership Levels

Supporter-based membership levels can be a great option for fan-based membership communities . That is, where the membership community is based around supporting a certain artist, typically with different perks based on the membership level.

For that reason, you’ll see this type of naming convention on a lot of Patreon membership communities, though you can use it with your own self-hosted community as well.

For example, Data School offers a supporter-based naming structure that also brings in some elements of tiered memberships:

This approach also makes a great option for non-profits that rely on membership support. For example, the Smithsonian calls its members “Friends of the Smithsonian” and they are grouped into specific member role categories.

These are descriptive names that refer to the supporters themselves:

6. Interest-Based Membership Levels

Finally, another common membership tier naming convention is offering interest-based membership levels.

This approach is useful if you offer different plans that are each focused on a specific topic/interest.

For example, TradersFly offers separate membership plans all based around different areas of investing. To differentiate those different subscription plans, they name each plan based on its topic:

How to Come Up With Your Own Membership Level Names

To finish things out, let’s talk about how you can come up with subscription plan names for your own membership community.

Focus on the Differences In Your Plans

Before you can name your subscription tiers, you need to have a really clear idea of the differences in your plans. You probably already know these differences, but it helps to write them down just to put it into words.

Once you have a clear picture of the differences between your plans, you should already have a good idea of what type of membership level naming convention to use.

For example, if the only difference between your plans is the billing term, you should probably just use a simple price/term-based membership convention so that your members can intuitively know the difference.

If you have two plans with identical features and one plan offers monthly access and the other offers yearly access, it’s needlessly confusing to come up with special names for them – “Monthly” and “Annual” work just fine.

On the other hand, if you offer tiered plans with different features, then you can get more creative with your names.

Think About Your Audience

The next step in developing your own names is to think about your audience.

Who your members are will play a big role in whether you should keep things simple or use more creative and branded membership levels.

If you’re in a creative space with tiered membership levels, then you should probably come up with creative membership level names to reinforce your branding and connect with your members.

On the other hand, if you’re in a very serious space, then you might want to avoid creative names and just stick with something simple like Basic → Intermediate → Advanced.

Create a Clear Hierarchy (for Tiered Membership Levels)

If you offer tiered membership levels, it’s important that your naming structure follows a natural progression from the most basic tier to the most advanced tier to illustrate the hierarchy of your plans.

Here’s an extreme example to show why this is important:

Let’s say you have three membership levels:

• Tier 1 – basic features.
• Tier 2 – everything in tier 1 plus new features.
• Tier 3 – everything in tiers 1 and 2 plus new features.

Well, it would be very confusing if you named your tiers like this:

• Tier 1 – Silver.
• Tier 2 – Bronze.
• Tier 3 – Gold.

Everyone knows that silver is higher than bronze, so it would confuse your members if the naming hierarchy was off.

Of course, in the real world, your example probably won’t be that obvious, especially if you’re coming up with your own creative names.

This again ties in with knowing your audience…

It’s not necessarily essential that a random person can see the hierarchy in your plan names. But it is essential that someone in your target audience understands the hierarchy.

For example, if you have a membership community built around cricket (the sport), you could use cricket-related terminology for your membership level names. The hierarchy might not be clear to people who don’t understand the sport – but as long as cricket fans can understand it, that’s totally fine.

Nudge People Towards a Certain Plan

As we mentioned earlier, one reason that membership level names are important is because of the psychology behind them.

For tiered membership plans, you can use the naming structure to push people towards a certain plan.

Let’s look at an example to illustrate the point.

Say you have three different membership levels – tier 1, tier 2, and tier 3.

Let’s say you’re primarily using tier 1 as decoy pricing . That is, you don’t really want people to sign up for tier 1 – you’re mainly using it to push people towards tier 2.

Well, your membership level names can help reinforce that decoy effect by making tier 2 seem more desirable.

Maybe you have a site that teaches people how to play American football. You might name your plans:

• Practice squad

No one wants to be on the practice squad because those people aren’t on the “real” team. So by structuring your plans like this, you’re reinforcing the decoy effect and further nudging people towards tier 2.

We’re not saying that the name alone will push people towards tier 2. But if you’ve already set up the pricing structure and features in a way to nudge people towards tier 2, adding the naming convention on top can further reinforce what you’re trying to do and make your efforts more effective.

Create the Perfect Names for Your Membership Levels

If you want your membership site to be successful, your membership tier names are important.

How you’ve structured your community and plans will play a key role in how you name your membership tiers.

If you offer a single feature set with different billing terms, you’ll want to keep things simple and just use term-based membership names. But if you offer tiered memberships, you can spice things up with creative membership level names that help you connect with your target audience.

With the examples and tips in this post, you should now have the knowledge to pick the perfect names for your site.

If you’re still in the early stages of planning your membership community, we also have lots of guides that can help you figure out the technical details of running a membership site – check out these posts to get started:

• How to start a membership site
• Tips for choosing the best membership site software
• How to build a membership site on WordPress
• How to create a video-based membership site

Do you still have any questions about membership level names or creating a membership website? Let us know in the comments!

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7 Reasons to Consider a Membership Business Model for Your Website

Are you looking to make money off your website? These days, there are plenty of ways you can do it. For instance, you can launch an affiliate blog or sell ad space. But, some of these approaches won’t provide a consistent revenue stream, and they can be difficult to get off the ground. A membership […]

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How to Name Membership Levels: Creative Ideas for 7 Pricing Structures

Estimated reading time: 12 minutes

How you name your membership levels has a huge impact on the success of your membership site. Thoughtfully named membership tiers create a more appealing and engaging experience for your members, which can ultimately lead to increased sign-ups and member retention.

In this post, I’ll talk about how to evaluate and test names for your membership levels, some classic membership site structures, as well as some examples for naming levels or subscription options for each case.

When you’re done, try our tool to generate level name ideas using AI . Powered by the GPT API, this free tool prompts you for the number of levels you offer, general topic of your site, and a brief description of your location and goals.

Table of contents

Membership site structures covered in this guide, tiered membership levels, price or payment term-based levels, content vertical or category-specific structures, user or type-based membership levels, content delivery or subscription type structures, sponsorship or benefactor membership levels, add-on memberships or a la carte plans, webinar replay: how to name your membership levels, ai tool to generate membership level name ideas, faqs on membership level naming, why is naming your membership levels so important.

There are a few key reasons why choosing the right names for your membership levels is a crucial part of running a successful membership business. Well-named levels can:

• Give clarity to potential members . Giving each membership level a unique name highlights the differences between each tier, and helps potential members understand the value proposition of each level. This makes it easier for them to decide which one suits their needs best.
• Communicate value . A well-thought-out name for each membership level can help convey the value and benefits associated with that tier. For example, using names that imply exclusivity or prestige, such as “VIP” or “Elite,” can make those membership levels feel more valuable and appealing to potential members.
• Strengthen your branding and identity . Naming your membership levels also plays a role in reinforcing your brand identity. By choosing names that align with your brand’s tone, messaging, and overall theme, you create a cohesive experience for your members and strengthen the connection between your membership site and your brand.
• Create an emotional connection . Creative and memorable membership level names can help create an emotional connection with potential members. When they feel a sense of belonging or excitement about a particular membership level, they are more likely to sign up and remain loyal members.
• Make communication easier . When membership levels have clear and distinct names, it simplifies communication with your audience. Members and potential members can easily refer to a specific membership tier, making it more straightforward for them to discuss and compare the benefits and features of each level.

Evaluate Your Existing Membership Levels

I work with thousands of membership sites and I’ve seen a surprising lack of clarity and creativity when it comes to naming membership levels. This is a huge missed opportunity.

If you’re evaluating, thinking about renaming, or still need to choose names for your membership levels, here are a few things to think about:

• Membership level names should make it clear what the member is getting for their money . The more you reduce confusion, the happier your customers will be—and the fewer refunds you’ll have to deal with.
• An aptly-named level can even be a badge of pride for your members ; Certain associations can elicit a sense of belonging, turning anonymous “visitors” into members of the “in-crowd”.

Membership level names appear throughout your website and marketing materials , so it’s important to make sure they “read well” in different contexts. At the end of this article, I’ll link you to a specific tool that you can use as a litmus test for your level names within the key system phrases in Paid Memberships Pro.

• Tiered or Hierarchical Levels : The classic “pay more, get more” structure.
• Price or Payment Term Structured Levels : The content is all the same, but you offer different payment options.
• Content Vertical or Category-specific Levels : The content is unique to each level.
• User or Member Type Levels : The level selection is based on the member (individual or group)
• Content Delivery or Subscription Type Levels : The content itself is offered in different methods based on level selection.
• Sponsorship Level or Benefactor Tiers : Mainly for non-profits with creative membership level tiers.
• Add-on Memberships or A La Carte Plans : Let members hold multiple levels, where they pick and choose among a variety of different options for specific access or benefits.

Join our free community of membership site creators.

PMPro offers a community Slack space for members, and you’re invited. Learn more about the community’s free benefits and get a link to join Slack now.

This type of membership site offers more (or fewer) features based on membership level. For example, a basic membership may provide access to standard content, while premium memberships offer exclusive resources, advanced tutorials, and personalized support. 

Our site at Paid Memberships Pro has four membership levels : Free, Standard, Plus, and Builder. These levels are organized in a hierarchy, with Builder being the top tier. The names also help show who each plan is meant for.

Name Ideas for Tiered Membership Levels

Lowest Tier / Base Tier with Minimal Features

Middle Tier / Most Popular Tier with Average Features

• Intermediate

Highest Tier / All Features Included

• Professional

Use this naming structure when all membership levels offer the same package of features, but differ in price or duration. First, come up with a creative name related to your brand or website theme.

For instance, if your membership site represented a sports team, what would you call the fans?

Consider creating a unique membership brand, such as “Trekkies,” “Bronies,” or “Cheeseheads.” Then, you can use your level names to indicate the price or payment term.

There might still be a sense of hierarchy in this structure, such as a Foodie Box site offering 3 Month, 6 Month, and Annual subscriptions, with an optional dessert box add-on. For this case, I’d suggest reading through the post on how to modify the price at checkout based on user fields to set up a field that modify the level price at checkout. Easy as pie.

Name Ideas for Price or Term-Based Membership Levels

• Semi-Annual
• Half-Yearly

* Note that not all integrated gateways for Paid Memberships Pro offer “daily” subscriptions.

In this membership site model, levels vary by content type or “vertical” rather than features. This is common for stock or investment sites, nationwide membership chapter sites, or online dating sites where the member’s interest is defined by their chosen membership level.

Name Ideas for Content Vertical or Category-Specific Structures

Stock or Investing Sites:

• Consumer Products
• Technology Sector
• Gas and Oil
• Pharmaceuticals

Member Chapter Sites:

• Country Name
• Region Name
• County Name

Online Dating Sites:

• Man Seeking Woman
• Woman Seeking Man
• Man Seeking Man
• Woman Seeking Woman

This membership category offers different levels, prices, or packages based on the member’s user type. If you need a membership level that provides parent/child account relationships, take a look at our Sponsored/Group Members Add On .

Name Ideas for User or Type-Based Membership Levels

• Corporation
• Military: Active Duty and Veterans

In this membership site model, levels vary based on the method of content delivery. This model is often used when content is available in different formats (online, print, email), with the chosen level determining the member’s preferred content delivery method(s).

For this case, you can use the same membership branding ideas discussed in the Price/Payment Term Structured Levels section earlier, and then use the level names to specify the content delivery method.

Name Ideas for Content Delivery or Subscription Type Membership Levels

• Email Newsletter
• Online and Print
• Online Only

If you run a non-profit organization, you might think about membership a bit differently than most other site types. In your case, membership level is actually sponsorship level, and you can get really creative in how you name your tiers.

A great approach to level naming is to pull ideas from the goals of your organization, your location, the group or cause you represent.

For example, check out the list of nonprofits and their benefactor/membership tier names below:

If you’re a non-profit organization, you most likely think about membership a bit differently than most other site types. In your case, membership level is actually sponsorship level , and you have a chance to get really creative in how you name your tiers.

The Franklin Institute’s Benefactor Society

• Pendulum Partners
• Baldwin Circle
• Celestial Circle
• Ambassador Circle
• Kite and Key Circle
• Franklin Fellows
• Inventors Circle

Colonial Williamsburg’s Donor Societies

• Duke of Gloucester Society
• Capitol Society
• Colonial Williamsburg Assembly
• Colonial Williamsburg Burgesses
• Colonial Williamsburg Associates
• Raleigh Tavern Society

The Kimmel Center’s Founders Circle

• Artists Circle
• Leadership Circle
• Presidents Circle
• Chairmans Circle

A membership site doesn’t have to only include recurring membership plans or options where members can only hold one level. In fact, with Paid Memberships Pro, members can hold multiple levels simultaneously—we call this Multiple Membership Per User, and it’s now a feature included in the free core PMPro plugin.

Use Cases for the Add-on Model

Add-on levels or a la carte plans let members pick and choose among a variety of different options for specific access or benefits. Some popular cases where sites use an add-on model include:

• Exclusive Content Access : An add-on membership level that grants access to exclusive articles, videos, or tutorials that are not available to other membership tiers. This can be specialized content like “Expert Gardening Tips” for a gardening site, or “Advanced Coding Modules” for a tech learning platform.
• Event-Based Access : Members can purchase add-on levels that give them access to one-time events, webinars, or live sessions . For example, a “Live Webinar with Industry Experts” or a “Virtual Cooking Class with a Celebrity Chef” can be offered as a separate purchase.
• Resource Libraries : Offer access to specialized resource libraries and downloadables , such as “Legal Document Templates” for a business community or “High-Resolution Photo Packs” for a photography site.
• Personalized Services : This could include one-on-one coaching sessions, personalized workout plans, or custom diet plans, like a “Monthly Personal Training Session” or “Custom Meal Planning”.
• Software and Tool Features : For tech-oriented sites, additional features or tool access can be an add-on. Examples include “Premium Plugin Features” or “Advanced Analytics Suite”.
• Community and Networking : Special membership levels for accessing a private forum, networking groups, or member directories, such as “Business Networking Group” for entrepreneurs.

Ideas for Naming Add-on Membership Levels

When naming these levels, focus on clarity and communicating the direct benefits. The names should be self-explanatory: use the name to explain the unique access or benefit provided. Here are some ideas based on the above use cases:

• Insider Articles Pass
• Pro Video Series
• Expert Tutorials Library
• Monthly Expert Webinar
• Chef’s Table Cooking Class
• Live Coding Bootcamp
• Ultimate Legal Kit
• Photographer’s Pro Pack
• Template Treasure Trove
• Personal Trainer One-on-One
• Tailored Diet Plan
• Custom Business Coaching Hour
• Plugin Power-Up
• Analytics Pro Access
• Enhanced Security Features
• Elite Networking Club
• Founders Forum
• Creators Circle

When a potential member reads the name, they should instantly understand what the add-on offers and why it’s worth the additional price.

Use the Level Names AI Generator below to come with ideas for your membership level names using the GPT AI.

The best names for your membership levels clearly communicate the value and uniqueness of each tier. Consider using names that resonate with your brand and clearly distinguish between different levels of access and benefits.

Yes, with Paid Memberships Pro, you can update the names of your membership levels at any time by navigating to Memberships > Settings > Levels in your admin dashboard. All members associated with the updated level will automatically see the new names on their profiles and communications.

Test your names by gathering feedback from current and potential members, and by evaluating membership metrics such as sign-up rates and retention. Our AI-powered Level Names Generator can help brainstorm and evaluate potential names based on your site’s content and goals.

Membership levels can be categorized by features, content access, user type, delivery method, and payment terms. Common structures include tiered levels (where benefits increase with each level), content-specific levels (access based on content type), and role-based levels (tailored to different types of members such as students or professionals).

Add-on memberships, or a la carte plans, allow members to select specific benefits or access in addition to their base membership. This flexibility lets members tailor their involvement to fit their interests and needs, while helping you grow the lifetime value of existing members.

When designing add-on levels, focus on specific benefits that can be clearly communicated and priced separately. These might include special content access, one-on-one services, date-based cohorts, event entries, or community features.

When you introduce add-on levels, make sure they do not dilute the perceived value of your core offerings. Clearly define what each add-on includes and how it enhances the overall membership experience.

There’s no right or wrong answer here. If business is good, review your membership levels and pricing at least once a year. If business is slow or there are significant changes in your market or audience needs, review your products more frequently. Regular updates like this can also be a good opportunity to refresh your marketing and engagement strategies.

Go Name Your Membership Levels!

I hope this post has given you some ideas as you brainstorm level names for your new or existing membership site. Keep in mind that if you operate an existing membership site, you can still rename your membership levels.

With Paid Memberships Pro, you can easily update the level names by navigating to Memberships > Settings > Levels from the admin dashboard. All members with the updated membership level will automatically have their membership level name changed accordingly.

Do you already have your membership level names ready to go? Get your membership site up and running today with Paid Memberships Pro .

DOWNLOAD NOW

Grab the free cheat sheet and exercise book for how to name your membership levels. This guide and the companion naming exercises will help you understand the most common level naming structures and brainstorm your own site’s level names.

Author: Kim Coleman

Kim Coleman is the co-founder of Paid Memberships Pro, a leading membership plugin for WordPress, which powers over 90,000 membership sites worldwide. With over two decades of experience in development, management, and marketing, Kim plays a pivotal role in shaping the product and guiding the team.

She specializes in content creation, video tutorials, and frontend development for the core open-source plugin and its various Add Ons, helping businesses of all sizes build and grow their membership sites.

View more articles by Kim Coleman »

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14 Surprising Ideas for Naming Membership Tiers

You’re planning your membership program, but you’re stumped on naming membership tiers so your offer doesn’t look like everyone else’s.

In this article, we are going to share insights about designing membership levels and the best way to come up with creative tier names that will make potential customers hit that “sign up” button fast.

Coming up with creative membership level names

You’ve seen the membership tier cliches, and you don’t want your membership program to fall into that trap.

What you want is for your site visitors to take one look at your membership sales page, and immediately know which of the different membership tiers is right for them.

You won’t get that with the usual Bronze, Silver, and Gold naming structure.

The best way to come up with a creative naming structure for your membership levels is to tie it into the topic of your membership site.

For example, if you have a membership teaching people how to play a musical instrument then some great tiers might be:

• Musician in the Making
• Concert Ready

Take a few minutes to jot down membership level names that are specific to your niche. Catchy creative level names are all around when you get brainstorming. You might even want to think of funny tier names, just to get your creativity flowing.

Your new members need to be able to identify which option is right for them based on the level name, but you will also be able to explain the value in your pricing page .

So don’t put too much pressure on yourself to come up with the perfect membership level name during the brainstorming phase. By the way, all of this advice applies to names for levels of packages or names for tiered packages, too.

We’re going to dive deeper into more membership tier naming in a minute. But first, let’s decide how many tiers you need.

How many membership tiers should you offer?

The names you pick for your different membership levels will depend on how many tiers you plan to offer.

The rule of thumb here is to offer no more than 4 membership levels, and preferably just 3.

Why is it better to offer fewer membership levels? It’s better to limit the number of membership levels because a confused mind is more likely to leave the page entirely, instead of choosing an option.

Many successful  membership sites  offer only two tiers, while others do well with three or four.

Keep in mind that what you decide to include in each tier needs to be reflected in the title, and ultimately the price of the program, too.

Pricing your membership site levels

Pricing a membership site is an art and a science, and you can get more advice on how to do it right in our  membership pricing guide . Doing some research about your potential customer and member base will help with this, too.

However, it’s important to consider the price of your different membership levels because the name you choose for each tier needs to be in alignment.

For example, you wouldn’t want to name your membership levels Rose at $50/month, Petunia at $100/month, and Dandelion at $300/month.

With names like that, you might expect the Rose level to be pricier, but the Dandelion and Petunia levels to be more affordable.

Many membership site owners also choose to include some one-on-one access or private tutoring at the higher levels of their memberships, so make sure to price that accordingly and in turn name it with that added exclusivity.

Naming your membership levels based on the benefits and services included is the smart thing to do. For example, your free member level could just be called the free tier on your website, to reduce confusion and entice more members to join.

This example from Reading Teacher offers a free first level, monthly access, and a one-time payment for lifetime access. Here the names for tiered packages are very straightforward.

Membership levels for different types of membership sites

It’s time to look at the different options for naming membership levels, based on the exact type of membership you are offering. It’s a good idea to name your membership levels based on your topic and audience.

Yes, you could pick a brand name for your membership and then have tiers based on the payment duration. Many online membership sites offer monthly and annual subscriptions.

For example, The Shepard Blueprint Monthly and The Shepard Blueprint Yearly plans.

That works fine if you only have two options, but if you really want to encourage people to pick a certain tier then follow the advice below for your particular membership style.

It’s a great idea to offer a price break for customers who upgrade from a monthly subscription to an annual one. Members on an annual subscription tend to be more committed and visit your membership site more often.

Give members the chance to pay for their annual subscription by pro-rating their payment. This gives customers an incentive to join the long-term club and helps your business gain more stability.

1. Skill-based learning memberships

Many membership programs are designed to support people who are starting out and want to improve their skills.

Examples of these types of membership levels include language learning, professional development, crafting, sports, music, writing, coding, gardening, and everything in between.

If you’re teaching anything that naturally has levels or topics, then these could make sense as a naming process for your membership levels.

For example, a martial arts membership program might offer 4 tiers:

• White belt membership
• Green belt membership
• Black belt membership
• Master black belt membership

These are fun names for membership levels, and whether the content is directly tied to the belt level or not, you’re able to convey that the skill level increases with each tier.

Other examples of skill-based memberships include:

• Intermediate

You can also follow the  Treehouse example , and offer one monthly membership price but give people a chance to choose the focus of their learning.

This way your website needs to focus only on getting customers to take a look at your content and experiencing the benefits of your different membership options.

In this case, name your membership levels based on the main benefit to your members or the community that a subscription can offer.

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2. Access to different content levels

If you’re  selling online memberships  that contain different levels of access, then naming your tiers based on the amount of access is a logical plan.

Something as simple as this could work:

Of course, there is always room to jazz up your membership level names. Get creative by borrowing from other markets, like an ice cream shop.

• One spoonful (free plan)
• One scoop (paid plan)
• Banana Split Sunday (all-access)

Or a buffet:

• Membership sampler (free plan)
• A la carte (pay for specific content)
• All you can eat buffet (all-access)

Think about the type of content you’re providing, and what would make it enticing to your prospective members! Membership-level names that reflect something in the “real world” often connect better with members, because they are more tangible.

Your aim needs to be to provide a wide variety of options that cater to different needs and preferences, making it easier for individuals to find the membership level that suits them best.

Example from  Data School

3. Different groups of people inside the same members area

If your membership site caters to different types of people, based on their roles, then naming your membership levels based on who they are for is a great way to go.

For example, you might have the following tiers for a school setting:

• Student tier
• Teacher tier
• Parent tier

Or for  selling training to corporations , you might look at the following examples:

You can achieve this type of bulk course enrollment for membership levels with a learning management system ( what is an LMS ?) like AccessAlly.

These membership tier names are straightforward, and a customer can easily self-identify based on the structure.

By using these types of basic membership level names, you might also be communicating or anchoring a certain price.

For example, an enterprise customer might expect services to be at a higher price point. Whereas an individual member might want a monthly subscription that is more affordable, and easy to cancel.

4. Patrons or different supporter levels

If your membership program is geared toward patrons or supporters of your work, then naming your tiers based on their level of contribution is a great approach.

You want to make people feel special when they sign up to support your work. Remember that all contributions make a difference, even if they are small, so don’t forget to name your lower-level tiers just as sweetly as for your higher-level donors.

Creating an effective membership program goes beyond just offering valuable content and perks. To truly engage your audience and foster long-term loyalty, you need to establish an emotional connection with your members.

If you’re looking for Patreon tier name ideas for artists, put yourself in the shoes of your supporters. Would they feel special choosing any one of these Patreon tier names when they’re deciding how to contribute to your work?

Some examples to get your wheels turning include:

• Supporter of the arts
• Patron of the arts
• Benefactor of the arts

If your brand is focused on hard-hitting independent journalism, or keeping the press free from bias, you might take a look at this structure:

• Journalism Junkie
• Bias Guardian
• Independent Voice Defender

Your membership level naming strategy should match the value you bring, and what people can expect from supporting your work. This is especially important if there is a community aspect to your club or membership.

Example from Dr. Lana Wellness

5. Access to additional support

Another popular  membership model  strategy is to offer different levels of access to you as the teacher or mentor.

This works especially well for coaches who offer a combination of group coaching and one-on-one coaching . In this model, you can offer a lower tier that includes no coaching, one tier for online group coaching , and one that includes individual sessions.

Sometimes when we’re choosing names for tiers of service, we want to make all of the levels sound equally amazing. Try to resist that urge and focus on the benefits people get at each tier, so that you don’t wind up underselling your top tiers or bottom tiers, which tend to be easier to fulfill.

These might be named something like this (these might not be the most creative tiered package names, but they work):

• Self-serve training
• Group training
• Individual training

Or for more of a coaching slant in a tiered structure:

• Solo practice
• Group coaching
• VIP Coaching

Obviously, you can always dress these membership levels up with your brand’s specific vibe. For example in the health coaching space:

• Wellness Foundations
• Holistic Health Coaching
• Individual Health Assessment and Coaching

Go ahead and start to play with the different words and concepts that apply to your unique membership experience, and see what you come up with.

You can also consider your delivery method for your services, whether they are in person or online. Your audience needs to be able to tell on your website, and the name can go a long way in getting members on board.

Sometimes some of the best membership level names are pretty basic. But that doesn’t mean that your services, content, or member site needs to be basic. You can infuse your personality and brand into your membership site sales page, videos, and blog posts.

Moving between membership levels

One thing that can also make or break your membership tier naming convention is how easy it is to move between tiers.

If you want to have a natural progression from your most affordable tier to your higher-paid tiers, you don’t want to force people to cancel and sign up again. Or worse, have to email you to move them to a new plan manually.

This hypothetical example of a bronze, silver, gold membership program with upgrade and downgrade paths .

Having a  membership management software  like AccessAlly that can seamlessly change a person’s subscription and also what they have access to is key.

Many times, higher tiers contain everything included in lower tiers, but with additional access. Find out what membership tools allow you to create the type of membership levels you have in mind, without creating a headache for you or your members.

You will also likely want to be able to pro-rate any past payments toward an upgrade or a downgrade in membership plans, so keep that in mind.

Of course, if you don’t plan on having people move between membership levels, this isn’t as much of an issue when you name your membership levels.

Name your membership levels in line with your brand

You probably have a lot of ideas by this point. Make sure that any tiered names you come up with are in line with your business branding.

How can you confirm that?

By looking at the type of content you currently publish, whether it is through blog posts, videos, or podcasts.

Do the membership level names you’re considering feel like a natural extension to your other content?

Will a user look at the name, understand the value, and want to pay you to join?

If not, then your business branding is not clear enough.

Another great litmus test is to see if a customer or friend can explain why it’s worth signing up for your memberships in a few words or less.

It’s time to start naming membership levels

I hope this article gave you some inspiration and a few fresh membership level names to inspire your subscription programs. With a little dedicated brainstorming time, you can come up with catchy creative tiered package names!

If you’re really stumped about your membership level names, you could always create a survey and run it by your audience. Sometimes a quick post or contest to get potential members involved in your business can make people feel like they are a part of something bigger.

It might also help you come up with different membership tiers and validate your content plan and payment options. Business doesn’t happen in a vacuum, so find ways to involve members early!

Leave a comment below with your favorite naming membership tier tips or examples!

I’m a writer, technologist, and regenerative farmer. I founded AccessAlly with my husband in one frantic weekend to solve my immediate course platform issues. Over a decade later the company has grown, and our product has evolved to serve millions of learners across the globe.

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This is your chance to explain why you're in business and that people care about what you offer. It needs to go beyond a simple product or service description and get to the heart of why your business works and benefits your customers.

Market analysis

Conducting a market analysis ensures that you fully understand the market that you're entering and who you'll be selling to. This section is where you will showcase all of the information about your potential customers. You'll cover your target market as well as information about the growth of your market and your industry. Focus on outlining why the market you're entering is viable and creating a realistic persona for your ideal customer base.

Competition

Part of defining your opportunity is determining what your competitive advantage may be. To do this effectively you need to get to know your competitors just as well as your target customers. Every business will have competition, if you don't then you're either in a very young industry or there's a good reason no one is pursuing this specific venture.

To succeed, you want to be sure you know who your competitors are, how they operate, necessary financial benchmarks, and how you're business will be positioned. Start by identifying who your competitors are or will be during your market research. Then leverage competitive analysis tools like the competitive matrix and positioning map to solidify where your business stands in relation to the competition.

Marketing & sales

The marketing and sales plan section of your business plan details how you plan to reach your target market segments. You'll address how you plan on selling to those target markets, what your pricing plan is, and what types of activities and partnerships you need to make your business a success.

The operations section covers the day-to-day workflows for your business to deliver your product or service. What's included here fully depends on the type of business. Typically you can expect to add details on your business location, sourcing and fulfillment, use of technology, and any partnerships or agreements that are in place.

Milestones & metrics

The milestones section is where you lay out strategic milestones to reach your business goals.

A good milestone clearly lays out the parameters of the task at hand and sets expectations for its execution. You'll want to include a description of the task, a proposed due date, who is responsible, and eventually a budget that's attached. You don't need extensive project planning in this section, just key milestones that you want to hit and when you plan to hit them.

You should also discuss key metrics, which are the numbers you will track to determine your success. Some common data points worth tracking include conversion rates, customer acquisition costs, profit, etc.

Company & team

Use this section to describe your current team and who you need to hire. If you intend to pursue funding, you'll need to highlight the relevant experience of your team members. Basically, this is where you prove that this is the right team to successfully start and grow the business. You will also need to provide a quick overview of your legal structure and history if you're already up and running.

Financial projections

Your financial plan should include a sales and revenue forecast, profit and loss statement, cash flow statement, and a balance sheet. You may not have established financials of any kind at this stage. Not to worry, rather than getting all of the details ironed out, focus on making projections and strategic forecasts for your business. You can always update your financial statements as you begin operations and start bringing in actual accounting data.

Now, if you intend to pitch to investors or submit a loan application, you'll also need a "use of funds" report in this section. This outlines how you intend to leverage any funding for your business and how much you're looking to acquire. Like the rest of your financials, this can always be updated later on.

The appendix isn't a required element of your business plan. However, it is a useful place to add any charts, tables, definitions, legal notes, or other critical information that supports your plan. These are often lengthier or out-of-place information that simply didn't work naturally into the structure of your plan. You'll notice that in these business plan examples, the appendix mainly includes extended financial statements.

Types of business plans explained

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. To get the most out of your plan, it's best to find a format that suits your needs. 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 for external purposes. Typically this is the type of plan you'll need when applying for funding or pitching to investors. It can also be used when training or hiring employees, working with vendors, or in any other situation where the full details of your business must be understood by another individual.

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.

The structure ditches a linear format in favor of a cell-based template. It encourages you to build connections between every element of your business. It's faster to write out and update, and much easier for you, your team, and anyone else to visualize your business operations.

One-page business plan

The true middle ground between the business model canvas and a traditional business plan is the one-page business plan . This format is a simplified version of the traditional plan that focuses on the core aspects of your business.

By starting with a one-page plan , you give yourself a minimal document to build from. You'll typically stick with bullet points and single sentences making it much easier to elaborate or expand sections into a longer-form business plan.

Growth planning

Growth planning is more than a specific type of business plan. It's 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, forecast, review, and refine based on your performance.

It holds all of the benefits of the single-page plan, including the potential to complete it in as little as 27 minutes . However, it's even easier to convert into a more detailed plan thanks to how heavily it's tied to your financials. The overall goal of growth planning isn't to just produce documents that you use once and shelve. Instead, the growth planning process helps you build a healthier company that thrives in times of growth and remain stable through times of crisis.

It's faster, keeps your plan concise, and ensures that your plan is always up-to-date.

Download a free sample business plan template

Ready to start writing your own plan but aren't sure where to start? Download our free business plan template that's been updated for 2024.

This simple, modern, investor-approved business plan template is designed to make planning easy. It's a proven format that has helped over 1 million businesses write business plans for bank loans, funding pitches, business expansion, and even business sales. It includes additional instructions for how to write each section and is formatted to be SBA-lender approved. All you need to do is fill in the blanks.

How to use an example business plan to help you write your own

How do you know what elements need to be included in your business plan, especially if you've never written one before? Looking at examples can help you visualize what a full, traditional plan looks like, so you know what you're aiming for before you get started. Here's how to get the most out of a sample business plan.

Choose a business plan example from a similar type of company

You don't need to find an example business plan that's an exact fit for your business. Your business location, target market, and even your particular product or service may not match up exactly with the plans in our gallery. But, you don't need an exact match for it to be helpful. Instead, look for a plan that's related to the type of business you're starting.

For example, if you want to start a vegetarian restaurant, a plan for a steakhouse can be a great match. While the specifics of your actual startup will differ, the elements you'd want to include in your restaurant's business plan are likely to be very similar.

Use a business plan example as a guide

Every startup and small business is unique, so you'll want to avoid copying an example business plan word for word. It just won't be as helpful, since each business is unique. You want your plan to be a useful tool for starting a business —and getting funding if you need it.

One of the key benefits of writing a business plan is simply going through the process. When you sit down to write, you'll naturally think through important pieces, like your startup costs, your target market , and any market analysis or research you'll need to do to be successful.

You'll also look at where you stand among your competition (and everyone has competition), and lay out your goals and the milestones you'll need to meet. Looking at an example business plan's financials section can be helpful because you can see what should be included, but take them with a grain of salt. Don't assume that financial projections for a sample company will fit your own small business.

If you're looking for more resources to help you get started, our business planning guide is a good place to start. You can also download our free business plan template .

Think of business planning as a process, instead of a document

Think about business planning as something you do often , rather than a document you create once and never look at again. If you take the time to write a plan that really fits your own company, it will be a better, more useful tool to grow your business. It should also make it easier to share your vision and strategy so everyone on your team is on the same page.

Adjust your plan regularly to use it as a business management tool

Keep in mind that businesses that use their plan as a management tool to help run their business grow 30 percent faster than those businesses that don't. For that to be true for your company, you'll think of a part of your business planning process as tracking your actual results against your financial forecast on a regular basis.

If things are going well, your plan will help you think about how you can re-invest in your business. If you find that you're not meeting goals, you might need to adjust your budgets or your sales forecast. Either way, tracking your progress compared to your plan can help you adjust quickly when you identify challenges and opportunities—it's one of the most powerful things you can do to grow your business.

Prepare to pitch your business

If you're planning to pitch your business to investors or seek out any funding, you'll need a pitch deck to accompany your business plan. A pitch deck is designed to inform people about your business. You want your pitch deck to be short and easy to follow, so it's best to keep your presentation under 20 slides.

Your pitch deck and pitch presentation are likely some of the first things that an investor will see to learn more about your company. So, you need to be informative and pique their interest. Luckily we have a round-up of real-world pitch deck examples used by successful startups that you can review and reference as you build your pitch.

For more resources, check out our full Business Pitch Guide .

Ready to get started?

Now that you know how to use an example business plan to help you write a plan for your business, it's time to find the right one.

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Best Online Brokerages of June 2024

Paid non-client promotion: 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 investing products to write unbiased product reviews.

A brokerage account is like a checking account for your investments. The difference, however, is that brokerage accounts act as a safe place to hold investable assets like stocks, bonds, ETFs, mutual funds, and crypto. 

Best Online Brokers

• Charles Schwab: Best online brokerage overall
• SoFi Invest: Best for beginners
• Fidelity: Best online brokerage for retirement savings
• TD Ameritrade: Best online brokerage for experienced investors
• Interactive Brokers: Best for active investors
• Public: Best online brokerage for mobile
• Stockpile: Best online brokerage for kids and teens

Compare Top Online Brokerage Reviews 2024

The best brokerage company for you depends on the kinds of assets you're looking for, your investment style, and how much you're willing to pay for top-notch trading tools like auto rebalancing, market trades, and real-time market data. 

Here are the best online brokerages as picked by Business Insider's editors in 2024. 

Charles Schwab

Open and fund your account and get $101 from Schwab to split equally across the top five stocks in the S&P 500

$0 ($5,000 for Schwab Intelligent Portfolios; $25,000 Schwab Intelligent Portfolios Premium)

0% ($0 Schwab Intelligent Portfolios; $30/month Schwab Intelligent Portfolios Premium)

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimums; commission-free trading on stocks, ETFs, and options
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Thousands of no-load mutual funds and 50+ Schwab-managed funds; fractional shares (Stock slices) available
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Automated and advisor-managed accounts available
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Multiple trading platforms; stock screeners and other trading tools
• con icon Two crossed lines that form an 'X'. $5,000 minimum for automated Schwab Intelligent Portfolios is on the higher end
• con icon Two crossed lines that form an 'X'. Schwab's no-load funds have a $100 minimum; some competitors offer lower minimums

Insider considers Charles Schwab to be the best online brokerage overall, as well as one of the best online brokerages for beginners. It's great for all types of investors — including active traders, passive investors, and retirement-focused individuals — in search of low costs and access to a variety of trading tools and platforms.

• App store rating: 4.8 iOS/3.8 Android
• Consider it if: You want a wide range of account types, with easy-to-use apps and web interfaces
• Awards: Investor's Business Daily recognized Charles Schwab as one of its Most Trusted Financial Companies for 2021.

Charles Schwab is a major discount broker and one of the largest investment management firms in the United States. Charles Schwab is one of the best brokers for trading commodity futures , offering a range of brokerage accounts and products that meet the needs of virtually any investor.

In addition to offering competitive accounts with no minimum balance requirements and no recurring fees, Schwab is a leader in low-cost pricing for retail investors. 

Hands-on investors are best served by the basic Schwab self-directed brokerage account, which gives you access to various investment choices. If you want more help, you can sign up for managed Schwab Intelligent Portfolios, one of the best robo-advisors . This account also doesn't charge any fees.

The investment platform has an annual percentage yield (APY) of 0.45% for at least $0.01 balances. 

What to look out for:  There are also high phone and broker-assisted trade costs. While online trades are commission-free for stocks and ETFs, you'll pay $5 extra for automated phone trades and $25 extra for broker-assisted trades. Online option traders cost about $0.65 per contract. 

Charles Schwab review

SoFi Invest

Get up to $1,000 in stock when you fund a new account.

$0 ($1 to start investing); $5 fractional shares; $2,000 for margin trading

0% for active trading and automated investing

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No account minimum
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No account or trading fees, and low fees to own funds
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Access to Certified Financial Planners at no additional charge
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. IPOs available
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. SoFi 1% IRA match
• con icon Two crossed lines that form an 'X'. No tax-loss harvesting, an advanced investing technique where you sell a stock or mutual fund at a loss for a tax benefit
• con icon Two crossed lines that form an 'X'. No option for stop-loss orders when actively investing. SoFi's active investing account only uses market orders
• con icon Two crossed lines that form an 'X'. Currently only available to US residents

SoFi Invest is a great platform for US investors who are looking for an intuitive online trading experience, an open active or automated investing account.

• Promotion: Get up to $1,000 in stock when you fund a new account.
• Consider it if: You want an easy-to-use platform paired with rock-bottom pricing.

SoFi is an online brokerage featured in our guides for the best investment apps.  It charges almost no fees for its investment accounts, which include self-directed investing and automated investing (managed portfolios) with no recurring fees and a very low $1 minimum to get started.

SoFi 's self-directed "Active Investing" account has no fees for trading stocks and ETFs . You can buy fractional shares of stocks, which SoFi calls "Stock Bits." SoFi also has a few of its exchange-traded funds that could be a fit for your portfolio. Plus, it now offers options for trading and IPOs.

One SoFi login also gets you access to banking and lending services. Customers get free access to SoFi Relay, a personal finance data aggregator comparable to a lightweight version of Empower Personal Dashboard . Customers also get free access to career coaching and financial planning sessions.

What to look out for:  SoFi's account selection is also fairly limited compared to larger brokers that offer any type of retirement or business investment account under the sun.

SoFi Invest review

Fidelity Investments offers a wide range of investing products, including fractional shares.

$0 ($25,000 Fidelity Personalized Planning & Advice)

0% ($0 or 0.35% for robo-advisor)

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No account minimum or account fees
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No commissions for stock, ETF, and options trades; fractional shares available
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Thousands of no-transaction-fee mutual funds and fee-free mutual funds
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Several research tools and trading platforms available
• con icon Two crossed lines that form an 'X'. Fidelity Go accounts cost more for investors with higher account balances
• con icon Two crossed lines that form an 'X'. Representative-assisted trades are slightly more expensive than other brokerages

Fidelity is one of the best online brokerages for beginners and retirement savings. It has great features for all types of investors and traders.

• Promotion: None at this time
• App store rating: 4.8 iOS/4.4 Android
• Awards: Morningstar named the Fidelity HSA as the best HSA provider in 2019, 2020, and 2021.
• Consider it if: You're focused on long-term investing and retirement.

Fidelity offers multiple account types, a long list of available investments, and competitive pricing with industry leaders for low-cost investments. It has more than 200 locations nationwide.

The online stock trading app Fidelity has no minimum balances or recurring fees. It offers commission-free stock and ETF trades with fractional shares available. You can invest in stocks, ETFs, options, mutual funds, bonds, CDs, and precious metals. Fidelity offers international investing in foreign markets and foreign currency exchange between 16 different currencies.

It offers zero-expense ratio Fidelity Flex mutual funds and uses them for its robo-advisors, Fidelity Go. Fidelity Go now has unlimited one-on-one coaching calls for account balances of $25,000 or more. 

Fidelity can be a great choice for most investment needs, but it's especially strong for investors with a long-term retirement focus. The combination of low fees and a focus on helping investors reach a successful retirement helped make it the top choice for retirement brokerage accounts.

What to look out for: Fidelity gives you a lot for free, but mutual funds outside of the no-fee list cost up to $49.95 each, not including added fees for phone or broker-assisted trades. In addition, Fidelity charges higher margin rates than many competitors.

Fidelity review

TD Ameritrade

TD Ameritrade offers a large range of investment options, including stocks, bonds, ETFs, mutual funds, futures, bitcoin futures, and more.

$0 ($5,000 or $25,000 for managed accounts through Schwab)

0% ($300 one-time fee and $30/month for advisor-managed account through Schwab); $49.95 or $74.95 for no-load mutual funds, $2.25 per futures contract, and $0.65 per options contract

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Free commissions on stock, ETF, and option trades
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum requirement to get started with brokerage account
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Large investment selection
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Research and educational resources available
• con icon Two crossed lines that form an 'X'. No fractional shares
• con icon Two crossed lines that form an 'X'. Robo-advice and managed portfolios are more expensive
• con icon Two crossed lines that form an 'X'. No cryptocurrencies

TD Ameritrade is great for active traders interested in using multiple trading platforms. As one of the best online brokerages, TD Ameritrade offers secure storage for investments and other assets.

• Promotion: None at this time.
• App store rating: 4.5 iOS/3.6 Android
• Consider it if: You want multiple apps for different trading experiences and goals

TD Ameritrade is a discount brokerage that's great for both new and expert investors. Beginners will enjoy the simple online platform at TD Ameritrade's website. Experienced investors will want to take advantage of the advanced trading platform, called thinkorswim, and other expert resources TD Ameritrade makes available.

Like other large commission-free brokers, TD Ameritrade gives you access to almost any brokerage account you could want. It offers a list of tradeable assets bigger than most peers, another draw for experienced investors.

TD Ameritrade's thinkorswim provides a professional-style trading platform with advanced charting and order types. An embedded CNBC TV widget is a nice perk that keeps your trading strategy in sync with the markets. It's nearly Wall Street quality and comes included with TD Ameritrade accounts.

What to look out for: Charles Schwab acquired the company in 2020. TD Ameritrade has said on its website that it will continue to conduct business as usual while combining many components with Schwab. 

TD Ameritrade review

Interactive Brokers

Interactive Brokers provides trading access to more than 150 markets in 200 countries/territories around the world, allowing you to invest in stocks, options, mutual funds, ETFs, cryptocurrencies, futures, bonds, fractional shares, and more.

$0 ($100 Interactive Advisors automated accounts)

$0 for IBKR Lite; $0 IBKR Pro (per-share commissions apply)

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low commissions and fees
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. International trading opportunities
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive trading platforms and tools
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Several account types available
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Thousands of no-transaction-fee mutual funds
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Cryptocurrency investing available for bitcoin, bitcoin cash, ethereum, and litecoin
• con icon Two crossed lines that form an 'X'. Less active traders pay more for IBKR Pro
• con icon Two crossed lines that form an 'X'. Website can be tricky to navigate

Interactive Brokers is one of the best online brokerages for advanced, active investors who trade securities frequently and value access to market analysis and trading platforms.

Interactive Brokers is a top investment platform for all kinds of investors. Trade at higher volumes and get access to tools optimized for your investing needs. Typical investors may not care about the difference of a few seconds when entering and executing a trade. Very active traders, however, care about milliseconds.

Interactive Brokers has multiple pricing options depending on your level of trading activity and your personal trading needs. The basic account, IBKR Lite, gives you commission-free stock, ETF trades, and competitive fees for most other trades. 

IBKR Pro accounts use tiered or fixed pricing models. This means you won't get completely commission-free trades as you do with IBKR Lite. Pro accounts have additional access to market data. They also get access to the IBKR Web Trader platform and IBKR APIs for automated trading. Algorithmic trading, also known as algos, is included with Pro accounts.

With competitive pricing and an experience tailored to active traders, IBKR Lite could be a good place to test the waters before upgrading to IBKR Pro for the most advanced experience. You can also invest in cryptocurrencies like bitcoin, ether, bitcoin cash, and litecoin. It also offers bitcoin ETFs. Commissions for these assets range from 0.12-0.18%.

What to look out for: Not all accounts and trades are free. Choose the right account level for your investment goals and experience. 

Interactive Brokers review

Public offers a $0 minimum requirement and allows you to filter its investment selection to see the securities that best align with your preferences

0% stocks and ETFs; Crypto: 1% or 2% markup; Alternative assets: 2.5% per transaction; Public Premium: $10/month

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimums and commission-free trading on stocks and ETFs
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Cryptocurrency trading available for over 20 coins and tokens; alternative assets available
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Offers fractional share investing for as little as $1; Premium plan includes advanced market data and insights
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Several community features that allow you to share insights and receive insights from other users; educational resources like live audio events also available
• con icon Two crossed lines that form an 'X'. No mutual funds
• con icon Two crossed lines that form an 'X'. Not the best platform for day traders; it doesn't allow day trading of stocks

Public is best for active traders who want to invest in stocks, ETFs, and cryptocurrencies while utilizing the expertise and insights of other Public.com members.

• App store rating: 4.7 iOS/4.3 Android
• Consider it if: You value portfolio diversification and want a social component to your investing experience.

Public is an investment app that uses a mobile-first experience. The result is a mobile investment experience that's somewhat unique but still easy to navigate for both beginner and experienced investors. You can now earn a $0.18 rebate per traded options contract with no commission fees.

As the name suggests, trades at Public allow you to connect with other investors on the platform. You can follow others and chat about investment ideas. You can even join a group chat for live interaction with other investors. In some ways, it's like a built-in social network for investors.

Another useful feature for newer investors is the ability to view various themes. These group stocks by industry or other major categories to help you zero in on companies that make sense for your investment strategy. Public uses a commission-free pricing model so most users won't pay any fees when they trade.

What to look out for: Public doesn't offer a robo-advisor for hands-off automated trades. It's account selection is also limited as you can't invest in retirement, education, or custodial accounts with Public. 

Public review

Stockpile offers brokerage and custodial accounts with no recurring fees, no minimums, and no gift card fees.

$4.95 monthly subscription fee

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimums and no gift card/funding fees
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. 1,000+ stocks and ETFs
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Can fund account with bank transfer or stock gift cards
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Fractional shares available
• con icon Two crossed lines that form an 'X'. Investment selection limited to stocks, ETFs, and crypto

Stockpile is a newer and smaller brokerage than some others on this list, but it's perfect for kids

• Consider it if: You want to invest with kids or teens

Stockpile is a top investment platform for kids to learn how to save and invest toward their future. Stockpile offers brokerage and custodial accounts with no recurring fees, minimums, or gift card fees. Invest in fractional shares for $1 and even trade popular cryptocurrencies. The online brokers have a $4.95 monthly subscription fee. 

Other investable securities include over 4000 stocks and ETFs in five different kid account options and one adult account. Cryptocurrencies are also available. Parents and kids will enjoy the built-in education resources, such as the "mini-lessons," which teach stock market basics that prepare anyone for a more successful future in the stock market.

Stockpile is great for kids and teens for a few reasons. The simple and easy-to-navigate platform shows kids the logos and companies they are familiar with in their investment portfolios . You can fund the account through a bank account or with stock gift cards. 

What to look out for: Other types of investments (such as mutual funds) are not supported.

Best Online Brokerage FAQs

Yes. You can have multiple brokerage accounts to access different investment options, account options, and trading features. Having multiple brokerage accounts can also be a great strategy for diversifying investments in your portfolio. However, managing multiple accounts requires you to keep track of all your information and may potentially lead to you paying higher fees. 

Yes. Trading within a brokerage account has tax implications, including capital gains taxes on profits from selling investments. Depending on the type of brokerage account and how it is funded, you may also unlock tax benefits such as tax credits or tax deductions. 

Retirement accounts are a kind of brokerage account specifically designed for people to invest money toward future retirement expenses. Retirement savings accounts have more limited investment options and strategies than other brokerage account options but offer more prominent tax advantages. 

The minimum investment to open a brokerage account varies by brokerage and the type of account. Some accounts may have no minimum investment requirement, while others require a substantial initial deposit. Make sure to look into the specific requirements of a brokerage before signing up. You should also be comparing fees in top brokerage accounts to find the best deals.

Brokerage accounts are generally secure, with most investment platforms providing users with SIPC insurance and other forms of coverage. Security measures like data encryption software and identity theft protection are also common. Always verify a brokerage's security measures and SIPC insurance status. 

How to Choose the Best Online Brokerage

The best online brokerages offer portfolio diversification, great customer support, low fees, and account flexibility. Here's how to choose the right online brokerage based on your risk tolerance, goals, and time horizon. 

Everyone's investment goals and preferences are unique, and not all brokerage accounts are a perfect fit. To choose the best online brokerage, start by looking at your investment style and what you want from a brokerage. Whether that's cutting-edge active trading tools or a long list of no-transaction-fee mutual funds, there's a good online brokerage for everyone.

For most investors, a long-term, passive investment strategy is ideal. Many experts suggest building a diverse portfolio of low-cost index funds over picking individual stocks and riskier active trading tools.

Newer investors may be overwhelmed by advanced trading strategies and market charting features. The best online brokerages for beginners have strong customer support, easy trading tools, educational resources, staking rewards, and low fees and minimums. 

Once you understand what you need, consider costs, platforms, investment account types, and available investments to decide what's best for you.

How to Buy Stocks with an Online Broker

You can buy and sell individual stocks through an online broker with most stock trading platforms and investment apps. Once you set up an online brokerage account with a stock trading platform, you can deposit funds into your account via bank or wire transfer. You also have the option to link your brokerage account and bank account directly. 

Before opening an account with an online broker, you familiarize yourself with what the platform offers. Not all online brokers allow you to pick and choose individual stocks. Robo-advisors, for example, often only invest in ETFs that are automatically selected based on your preferences and the platform's investing algorithm.

You'll also want to research the stock you're interested in by considering the company's history and market trends. Consult with a financial advisor for professional insight and guidance on investments. Once you've decided where to invest your money, you can place an online order and select several shares. 

How to Open a Brokerage Account

Online brokerage accounts are taxable investment accounts similar to a bank account but for your investable assets. Rather than stepping into a brick-and-mortar building to open a brokerage account and start trading, you can open an online brokerage account to access the market from your phone or computer easily. 

Here's you're opening a brokerage account checklist:

• Evaluate your risk tolerance, financial goals, and time horizon
• Explore different investment options in brokerage accounts to find the right one for you
• Compare fees, minimums, and investment features
• Determine what you need to open an account with that brokerage
• Gather the appropriate information and funds (if applicable) and start investing 

Some brokerages require a minimum deposit to open an account. Depending on the brokerage and the type of account, this minimum can range from $0 to $10,000 or more. Make sure you're comparing fees in top brokerage accounts as well. 

Security and insurance of brokerage accounts should also be considered before opening an account. Most platforms offer substantial coverage and security measures, but you'll want to check for any recent scandals or lawsuits in which the platform may be involved. 

You may also need to provide personal information like your name, age, address, social security number, and banking information.

Types of Brokerage Accounts

Online brokerage accounts are still licensed firms in which a broker is responsible for executing a client's orders. Types of brokerage accounts include: 

• Self-directed brokerage accounts
• Robo-advisors (aka automated accounts)
• Retirement savings accounts
• Education savings plans (like the best 529 plans )
• Custodial accounts
• Cryptocurrency trading accounts
• Health savings accounts

Why You Should Trust Us: Our Expert Panel For The Best Online Brokerage

We consulted financial advisors, investing experts, and our own wealth-building reporter to inform our choices for the best online brokerages. 

We interviewed the following investing experts to see what they had to say about online brokerages:

• Brian Fry, CFP, founder at Safe Landing Financial
• Charlotte Geletka, CFP, CRPC, managing partner at Silver Penny Financial Planning
• Kaysian Gordon, MBA, CFP, CDFA, CPA, wealth manager at Clarus Group

What are the advantages or disadvantages of opening a brokerage account?

Brian Fry, CFP:

A taxable brokerage account offers the flexibility to have funds available when needed and without a tax penalty. They offer transparency and freedom when considering costs and investment options.

Other account types may add more value and/or tax-efficiency depending on a household's financial situation. For example, if qualified, HSAs provide tax deductions, tax-free growth, and tax-free distributions if used for qualified medical expenses; retirement accounts may provide tax deductions, tax-deferred or tax-free investment growth, and potentially tax-free distributions.

Education accounts may provide tax deductions and/or tax-free distributions if used for qualified educational expenses.

Charlotte Geletka, CFP, CRPC:

The advantages include access to stock exchanges to buy almost endless options of investments. This is where you can purchase stocks, bonds, ETFs, mutual funds, options, and almost the entire inventory of the open markets.

The multitude of options can also be a disadvantage. Most retirement plans offer a curated list of choices that have been well-vetted by consultants and investment experts. When you go into a brokerage account, it is daunting to know where to start. The recent rise of social media blogs surrounding investing may increase interest, but be cautious about investing, as any investment comes with risk.

Kaysian Gordon, MBA, CFP, CDFA, CPA:

The advantage of opening a brokerage account is — if you're interested in investing in stocks or bonds, mutual funds, or ETFs, as example, a brokerage is a great way to do it. 

Savings accounts or checking accounts just do not have those features. So the disadvantage is [that] you have to be aware of what you're looking for. Lots of different brokerage accounts will provide you with different things, so it's a matter of specifically what it is that's important to you.

Who should consider opening a brokerage account? 

A taxable brokerage account can be a good fit for anyone and everyone. Before saving in a taxable brokerage account, it's important to consider where saving adds the most value to your unique financial situation. Make sure to have an adequate emergency fund.  

Charlotte Geletka:

Once you have set up an emergency fund and started funding a retirement account, then you might consider opening a brokerage account as a place to invest after-tax dollars.

Most often, the account you have set up in a brokerage will be a flexible investment. This is great because you have use of the money for various purposes, and you are not tied to specific withdrawal requirements the same way you would be in a retirement or college 529 account. 

Kaysian Gordon:

When you're looking to start the process of investing after you have saved the amount that you need for your emergency funds — and typically that's three to six months— you should start looking to invest other personal cash. Make it a point to contribute as frequently as you can, because that's how wealth is built over time.

Is there any other advice you'd offer someone who's considering opening a brokerage account?

Before saving with a taxable account, consider the order of where you should save first to accomplish your financial goals best. Are you comfortable taking responsibility in making investment decisions? How are you going to rebalance? How are you going to take emotion out of investing? Taxable accounts can be a good vehicle if you can check all the boxes.

There is a difference between trading and investing. Trading is exchanging [which is] usually short-term in nature. Investing involves time and is long-term in nature.

Do your research because that's very important. Think about the things that are important to you. Do a comparison of the different names that you hear and see what the benefits are of one company over another before making a decision. 

Nothing will have everything you need, but go with the brokerage account with the best of what you need.

Methodology: Criteria for Evaluating Brokerage Accounts

In evaluating the best online brokerage accounts available today, we rate investing products on various criteria. The most important factors for Personal Finance Insider rates and reviews products are pricing, account types, investment availability, platforms, and overall customer experience. Investing platforms are given a rating between 0 and 5.

Most brokerage accounts on this list have no minimum balance or recurring monthly fees. After a major shift in pricing in 2019, most brokerage firms on this list also offer commission-free trades for stocks and ETFs. They also removed base fees for options trades but charged per-contract fees in most cases.

Top brokerage firms offer different platforms for different investment needs. Some are best for beginners, and others are ideal for more advanced investors. Platforms were evaluated with a focus on how they serve in each category.

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