24 of My Favorite Sample Business Plans & Examples For Your Inspiration
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Published: February 06, 2024
I believe that reading sample business plans is essential when writing your own.
![good product for business plan sample business plans and examples](https://blog.hubspot.com/hs-fs/hubfs/sample-business-plan_11-1.webp?width=595&height=400&name=sample-business-plan_11-1.webp)
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As you explore business plan examples from real companies and brands, it’s easier for you to learn how to write a good one.
But what does a good business plan look like? And how do you write one that’s both viable and convincing. I’ll walk you through the ideal business plan format along with some examples to help you get started.
Table of Contents
Business Plan Format
Business plan types, sample business plan templates, top business plan examples.
Ask any successful sports coach how they win so many games, and they’ll tell you they have a unique plan for every single game. To me, the same logic applies to business.
If you want to build a thriving company that can pull ahead of the competition, you need to prepare for battle before breaking into a market.
Business plans guide you along the rocky journey of growing a company. And if your business plan is compelling enough, it can also convince investors to give you funding.
With so much at stake, I’m sure you’re wondering where to begin.
![good product for business plan good product for business plan](https://blog.hubspot.com/hubfs/assets/hubspot.com/web-team/WBZ/HubSpot%20Media/Blog%202021/Images/modules/full-width-cta/Image%20Hackathon%20%E2%80%93%20Vertical%20(54).webp)
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First, you’ll want to nail down your formatting. Most business plans include the following sections.
1. Executive Summary
I’d say the executive summary is the most important section of the entire business plan.
Why? Essentially, it's the overview or introduction, written in a way to grab readers' attention and guide them through the rest of the business plan. This is important, because a business plan can be dozens or hundreds of pages long.
There are two main elements I’d recommend including in your executive summary:
Company Description
This is the perfect space to highlight your company’s mission statement and goals, a brief overview of your history and leadership, and your top accomplishments as a business.
Tell potential investors who you are and why what you do matters. Naturally, they’re going to want to know who they’re getting into business with up front, and this is a great opportunity to showcase your impact.
Need some extra help firming up those business goals? Check out HubSpot Academy’s free course to help you set goals that matter — I’d highly recommend it
Products and Services
To piggyback off of the company description, be sure to incorporate an overview of your offerings. This doesn’t have to be extensive — just another chance to introduce your industry and overall purpose as a business.
In addition to the items above, I recommend including some information about your financial projections and competitive advantage here too.:
Keep in mind you'll cover many of these topics in more detail later on in the business plan. So, keep the executive summary clear and brief, and only include the most important takeaways.
Executive Summary Business Plan Examples
This example was created with HubSpot’s business plan template:
![good product for business plan business plan sample: Executive Summary Example](https://blog.hubspot.com/hubfs/image-png-Jun-13-2023-03-29-46-6242-PM.png)
This executive summary is so good to me because it tells potential investors a short story while still covering all of the most important details.
![good product for business plan Business plans examples: Executive Summary](https://blog.hubspot.com/hs-fs/hubfs/executive-summary-business-plans-examples%20(1).webp?width=500&height=418&name=executive-summary-business-plans-examples%20(1).webp)
Image Source
Tips for Writing Your Executive Summary
- Start with a strong introduction of your company, showcase your mission and impact, and outline the products and services you provide.
- Clearly define a problem, and explain how your product solves that problem, and show why the market needs your business.
- Be sure to highlight your value proposition, market opportunity, and growth potential.
- Keep it concise and support ideas with data.
- Customize your summary to your audience. For example, emphasize finances and return on investment for venture capitalists.
Check out our tips for writing an effective executive summary for more guidance.
2. Market Opportunity
This is where you'll detail the opportunity in the market.
The main question I’d ask myself here is this: Where is the gap in the current industry, and how will my product fill that gap?
More specifically, here’s what I’d include in this section:
- The size of the market
- Current or potential market share
- Trends in the industry and consumer behavior
- Where the gap is
- What caused the gap
- How you intend to fill it
To get a thorough understanding of the market opportunity, you'll want to conduct a TAM, SAM, and SOM analysis and perform market research on your industry.
You may also benefit from creating a SWOT analysis to get some of the insights for this section.
Market Opportunity Business Plan Example
I like this example because it uses critical data to underline the size of the potential market and what part of that market this service hopes to capture.
![good product for business plan Business plans examples: Market Opportunity](https://blog.hubspot.com/hs-fs/hubfs/market-opportunity-business-plans-examples.webp?width=500&height=188&name=market-opportunity-business-plans-examples.webp)
Tips for Writing Your Market Opportunity Section
- Focus on demand and potential for growth.
- Use market research, surveys, and industry trend data to support your market forecast and projections.
- Add a review of regulation shifts, tech advances, and consumer behavior changes.
- Refer to reliable sources.
- Showcase how your business can make the most of this opportunity.
3. Competitive Landscape
Since we’re already speaking of market share, you'll also need to create a section that shares details on who the top competitors are.
After all, your customers likely have more than one brand to choose from, and you'll want to understand exactly why they might choose one over another.
My favorite part of performing a competitive analysis is that it can help you uncover:
- Industry trends that other brands may not be utilizing
- Strengths in your competition that may be obstacles to handle
- Weaknesses in your competition that may help you develop selling points
- The unique proposition you bring to the market that may resonate with customers
Competitive Landscape Business Plan Example
I like how the competitive landscape section of this business plan below shows a clear outline of who the top competitors are.
![good product for business plan Business plans examples: Competitive Landscape](https://blog.hubspot.com/hs-fs/hubfs/competitive-landscape-business-plans-examples%20(1).webp?width=500&height=405&name=competitive-landscape-business-plans-examples%20(1).webp)
It also highlights specific industry knowledge and the importance of location, which shows useful experience in this specific industry.
This can help build trust in your ability to execute your business plan.
Tips for Writing Your Competitive Landscape
- Complete in-depth research, then emphasize your most important findings.
- Compare your unique selling proposition (USP) to your direct and indirect competitors.
- Show a clear and realistic plan for product and brand differentiation.
- Look for specific advantages and barriers in the competitive landscape. Then, highlight how that information could impact your business.
- Outline growth opportunities from a competitive perspective.
- Add customer feedback and insights to support your competitive analysis.
4. Target Audience
Use this section to describe who your customer segments are in detail. What is the demographic and psychographic information of your audience?
If your immediate answer is "everyone," you'll need to dig deeper. Here are some questions I’d ask myself here:
- What demographics will most likely need/buy your product or service?
- What are the psychographics of this audience? (Desires, triggering events, etc.)
- Why are your offerings valuable to them?
I’d also recommend building a buyer persona to get in the mindset of your ideal customers and be clear on why you're targeting them.
Target Audience Business Plan Example
I like the example below because it uses in-depth research to draw conclusions about audience priorities. It also analyzes how to create the right content for this audience.
![good product for business plan Business plans examples: Target Audience](https://blog.hubspot.com/hs-fs/hubfs/target-audience-business-plans-examples.webp?width=500&height=257&name=target-audience-business-plans-examples.webp)
Tips for Writing Your Target Audience Section
- Include details on the size and growth potential of your target audience.
- Figure out and refine the pain points for your target audience , then show why your product is a useful solution.
- Describe your targeted customer acquisition strategy in detail.
- Share anticipated challenges your business may face in acquiring customers and how you plan to address them.
- Add case studies, testimonials, and other data to support your target audience ideas.
- Remember to consider niche audiences and segments of your target audience in your business plan.
5. Marketing Strategy
Here, you'll discuss how you'll acquire new customers with your marketing strategy. I’d suggest including information:
- Your brand positioning vision and how you'll cultivate it
- The goal targets you aim to achieve
- The metrics you'll use to measure success
- The channels and distribution tactics you'll use
I think it’s helpful to have a marketing plan built out in advance to make this part of your business plan easier.
Marketing Strategy Business Plan Example
This business plan example includes the marketing strategy for the town of Gawler.
In my opinion, it really works because it offers a comprehensive picture of how they plan to use digital marketing to promote the community.
![good product for business plan Business plans examples: Marketing Strategy](https://blog.hubspot.com/hs-fs/hubfs/marketing-strategy-business-plans-examples.webp?width=500&height=408&name=marketing-strategy-business-plans-examples.webp)
Tips for Writing Your Marketing Strategy
- Include a section about how you believe your brand vision will appeal to customers.
- Add the budget and resources you'll need to put your plan in place.
- Outline strategies for specific marketing segments.
- Connect strategies to earlier sections like target audience and competitive analysis.
- Review how your marketing strategy will scale with the growth of your business.
- Cover a range of channels and tactics to highlight your ability to adapt your plan in the face of change.
6. Key Features and Benefits
At some point in your business plan, you'll need to review the key features and benefits of your products and/or services.
Laying these out can give readers an idea of how you're positioning yourself in the market and the messaging you're likely to use. It can even help them gain better insight into your business model.
Key Features and Benefits Business Plan Example
In my opinion, the example below does a great job outlining products and services for this business, along with why these qualities will attract the audience.
![good product for business plan Business plans examples: Key Features and Benefits](https://blog.hubspot.com/hs-fs/hubfs/key-features-business-plans-examples.webp?width=500&height=213&name=key-features-business-plans-examples.webp)
Tips for Writing Your Key Features and Benefits
- Emphasize why and how your product or service offers value to customers.
- Use metrics and testimonials to support the ideas in this section.
- Talk about how your products and services have the potential to scale.
- Think about including a product roadmap.
- Focus on customer needs, and how the features and benefits you are sharing meet those needs.
- Offer proof of concept for your ideas, like case studies or pilot program feedback.
- Proofread this section carefully, and remove any jargon or complex language.
7. Pricing and Revenue
This is where you'll discuss your cost structure and various revenue streams. Your pricing strategy must be solid enough to turn a profit while staying competitive in the industry.
For this reason, here’s what I’d might outline in this section:
- The specific pricing breakdowns per product or service
- Why your pricing is higher or lower than your competition's
- (If higher) Why customers would be willing to pay more
- (If lower) How you're able to offer your products or services at a lower cost
- When you expect to break even, what margins do you expect, etc?
Pricing and Revenue Business Plan Example
I like how this business plan example begins with an overview of the business revenue model, then shows proposed pricing for key products.
![good product for business plan Business plans examples: Pricing and Revenue](https://blog.hubspot.com/hs-fs/hubfs/pricing-revenue-business-plans-examples.webp?width=500&height=364&name=pricing-revenue-business-plans-examples.webp)
Tips for Writing Your Pricing and Revenue Section
- Get specific about your pricing strategy. Specifically, how you connect that strategy to customer needs and product value.
- If you are asking a premium price, share unique features or innovations that justify that price point.
- Show how you plan to communicate pricing to customers.
- Create an overview of every revenue stream for your business and how each stream adds to your business model as a whole.
- Share plans to develop new revenue streams in the future.
- Show how and whether pricing will vary by customer segment and how pricing aligns with marketing strategies.
- Restate your value proposition and explain how it aligns with your revenue model.
8. Financials
To me, this section is particularly informative for investors and leadership teams to figure out funding strategies, investment opportunities, and more.
According to Forbes , you'll want to include three main things:
- Profit/Loss Statement - This answers the question of whether your business is currently profitable.
- Cash Flow Statement - This details exactly how much cash is incoming and outgoing to give insight into how much cash a business has on hand.
- Balance Sheet - This outlines assets, liabilities, and equity, which gives insight into how much a business is worth.
While some business plans might include more or less information, these are the key details I’d include in this section.
Financials Business Plan Example
This balance sheet is a great example of level of detail you’ll need to include in the financials section of your business plan.
![good product for business plan Business plans examples: Financials](https://blog.hubspot.com/hs-fs/hubfs/financials-business-plans-examples.webp?width=500&height=312&name=financials-business-plans-examples.webp)
Tips for Writing Your Financials Section
- Growth potential is important in this section too. Using your data, create a forecast of financial performance in the next three to five years.
- Include any data that supports your projections to assure investors of the credibility of your proposal.
- Add a break-even analysis to show that your business plan is financially practical. This information can also help you pivot quickly as your business grows.
- Consider adding a section that reviews potential risks and how sensitive your plan is to changes in the market.
- Triple-check all financial information in your plan for accuracy.
- Show how any proposed funding needs align with your plans for growth.
As you create your business plan, keep in mind that each of these sections will be formatted differently. Some may be in paragraph format, while others could be charts or graphs.
The formats above apply to most types of business plans. That said, the format and structure of your plan will vary by your goals for that plan.
So, I’ve added a quick review of different business plan types. For a more detailed overview, check out this post .
1. Startups
Startup business plans are for proposing new business ideas.
If you’re planning to start a small business, preparing a business plan is crucial. The plan should include all the major factors of your business.
You can check out this guide for more detailed business plan inspiration .
2. Feasibility Studies
Feasibility business plans focus on that business's product or service. Feasibility plans are sometimes added to startup business plans. They can also be a new business plan for an already thriving organization.
3. Internal Use
You can use internal business plans to share goals, strategies, or performance updates with stakeholders. In my opinion, internal business plans are useful for alignment and building support for ambitious goals.
4. Strategic Initiatives
Another business plan that's often for sharing internally is a strategic business plan. This plan covers long-term business objectives that might not have been included in the startup business plan.
5. Business Acquisition or Repositioning
When a business is moving forward with an acquisition or repositioning, it may need extra structure and support. These types of business plans expand on a company's acquisition or repositioning strategy.
Growth sometimes just happens as a business continues operations. But more often, a business needs to create a structure with specific targets to meet set goals for expansion. This business plan type can help a business focus on short-term growth goals and align resources with those goals.
Now that you know what's included and how to format a business plan, let's review some of my favorite templates.
1. HubSpot's One-Page Business Plan
Download a free, editable one-page business plan template..
The business plan linked above was created here at HubSpot and is perfect for businesses of any size — no matter how many strategies we still have to develop.
Fields such as Company Description, Required Funding, and Implementation Timeline give this one-page business plan a framework for how to build your brand and what tasks to keep track of as you grow.
Then, as the business matures, you can expand on your original business plan with a new iteration of the above document.
Why I Like It
This one-page business plan is a fantastic choice for the new business owner who doesn’t have the time or resources to draft a full-blown business plan. It includes all the essential sections in an accessible, bullet-point-friendly format. That way, you can get the broad strokes down before honing in on the details.
2. HubSpot's Downloadable Business Plan Template
![good product for business plan Sample business plan: hubspot free editable pdf](https://blog.hubspot.com/hs-fs/hubfs/sample-business-plans_6.webp?width=649&height=385&name=sample-business-plans_6.webp)
We also created a business plan template for entrepreneurs.
The template is designed as a guide and checklist for starting your own business. You’ll learn what to include in each section of your business plan and how to do it.
There’s also a list for you to check off when you finish each section of your business plan.
Strong game plans help coaches win games and help businesses rocket to the top of their industries. So if you dedicate the time and effort required to write a workable and convincing business plan, you’ll boost your chances of success and even dominance in your market.
This business plan kit is essential for the budding entrepreneur who needs a more extensive document to share with investors and other stakeholders.
It not only includes sections for your executive summary, product line, market analysis, marketing plan, and sales plan, but it also offers hands-on guidance for filling out those sections.
3. LiveFlow’s Financial Planning Template with built-in automation
![good product for business plan Sample Business Plan: LiveFLow](https://blog.hubspot.com/hubfs/image-png-Jun-13-2023-03-31-59-7153-PM.png)
This free template from LiveFlow aims to make it easy for businesses to create a financial plan and track their progress on a monthly basis.
The P&L Budget versus Actual format allows users to track their revenue, cost of sales, operating expenses, operating profit margin, net profit, and more.
The summary dashboard aggregates all of the data put into the financial plan sheet and will automatically update when changes are made.
Instead of wasting hours manually importing your data to your spreadsheet, LiveFlow can also help you to automatically connect your accounting and banking data directly to your spreadsheet, so your numbers are always up-to-date.
With the dashboard, you can view your runway, cash balance, burn rate, gross margins, and other metrics. Having a simple way to track everything in one place will make it easier to complete the financials section of your business plan.
This is a fantastic template to track performance and alignment internally and to create a dependable process for documenting financial information across the business. It’s highly versatile and beginner-friendly.
It’s especially useful if you don’t have an accountant on the team. (I always recommend you do, but for new businesses, having one might not be possible.)
4. ThoughtCo’s Sample Business Plan
![good product for business plan sample business plan: ThoughtCo.](https://blog.hubspot.com/hs-fs/hubfs/Google%20Drive%20Integration/12%20Expert-Vetted%20Sample%20Business%20Plans%20to%20Help%20You%20Write%20Your%20Own-Jun-22-2022-08-13-57-10-PM.jpeg?width=400&height=499&name=12%20Expert-Vetted%20Sample%20Business%20Plans%20to%20Help%20You%20Write%20Your%20Own-Jun-22-2022-08-13-57-10-PM.jpeg)
One of the more financially oriented sample business plans in this list, BPlan’s free business plan template dedicates many of its pages to your business’s financial plan and financial statements.
After filling this business plan out, your company will truly understand its financial health and the steps you need to take to maintain or improve it.
I absolutely love this business plan template because of its ease-of-use and hands-on instructions (in addition to its finance-centric components). If you feel overwhelmed by the thought of writing an entire business plan, consider using this template to help you with the process.
6. Harvard Business Review’s "How to Write a Winning Business Plan"
Most sample business plans teach you what to include in your business plan, but this Harvard Business Review article will take your business plan to the next level — it teaches you the why and how behind writing a business plan.
With the guidance of Stanley Rich and Richard Gumpert, co-authors of " Business Plans That Win: Lessons From the MIT Enterprise Forum ", you'll learn how to write a convincing business plan that emphasizes the market demand for your product or service.
You’ll also learn the financial benefits investors can reap from putting money into your venture rather than trying to sell them on how great your product or service is.
This business plan guide focuses less on the individual parts of a business plan, and more on the overarching goal of writing one. For that reason, it’s one of my favorites to supplement any template you choose to use. Harvard Business Review’s guide is instrumental for both new and seasoned business owners.
7. HubSpot’s Complete Guide to Starting a Business
If you’re an entrepreneur, you know writing a business plan is one of the most challenging first steps to starting a business.
Fortunately, with HubSpot's comprehensive guide to starting a business, you'll learn how to map out all the details by understanding what to include in your business plan and why it’s important to include them. The guide also fleshes out an entire sample business plan for you.
If you need further guidance on starting a business, HubSpot's guide can teach you how to make your business legal, choose and register your business name, and fund your business. It will also give small business tax information and includes marketing, sales, and service tips.
This comprehensive guide will walk you through the process of starting a business, in addition to writing your business plan, with a high level of exactitude and detail. So if you’re in the midst of starting your business, this is an excellent guide for you.
It also offers other resources you might need, such as market analysis templates.
8. Panda Doc’s Free Business Plan Template
![good product for business plan sample business plan: Panda Doc](https://blog.hubspot.com/hubfs/image-png-Jun-13-2023-03-33-19-5639-PM.png)
PandaDoc’s free business plan template is one of the more detailed and fleshed-out sample business plans on this list. It describes what you should include in each section, so you don't have to come up with everything from scratch.
Once you fill it out, you’ll fully understand your business’ nitty-gritty details and how all of its moving parts should work together to contribute to its success.
This template has two things I love: comprehensiveness and in-depth instructions. Plus, it’s synced with PandaDoc’s e-signature software so that you and other stakeholders can sign it with ease. For that reason, I especially love it for those starting a business with a partner or with a board of directors.
9. Small Business Administration Free Business Plan Template
![good product for business plan sample business plan: Small Business Administration](https://blog.hubspot.com/hubfs/image-png-Jun-13-2023-03-33-32-7807-PM.png)
The Small Business Administration (SBA) offers several free business plan templates that can be used to inspire your own plan.
Before you get started, you can decide what type of business plan you need — a traditional or lean start-up plan.
Then, you can review the format for both of those plans and view examples of what they might look like.
We love both of the SBA’s templates because of their versatility. You can choose between two options and use the existing content in the templates to flesh out your own plan. Plus, if needed, you can get a free business counselor to help you along the way.
I’ve compiled some completed business plan samples to help you get an idea of how to customize a plan for your business.
I chose different types of business plan ideas to expand your imagination. Some are extensive, while others are fairly simple.
Let’s take a look.
1. LiveFlow
![good product for business plan business plan example: liveflow](https://blog.hubspot.com/hs-fs/hubfs/sample-business-plans_10.webp?width=450&height=455&name=sample-business-plans_10.webp)
One of the major business expenses is marketing. How you handle your marketing reflects your company’s revenue.
I included this business plan to show you how you can ensure your marketing team is aligned with your overall business plan to get results. The plan also shows you how to track even the smallest metrics of your campaigns, like ROI and payback periods instead of just focusing on big metrics like gross and revenue.
Fintech startup, LiveFlow, allows users to sync real-time data from its accounting services, payment platforms, and banks into custom reports. This eliminates the task of pulling reports together manually, saving teams time and helping automate workflows.
"Using this framework over a traditional marketing plan will help you set a profitable marketing strategy taking things like CAC, LTV, Payback period, and P&L into consideration," explains LiveFlow co-founder, Lasse Kalkar .
When it came to including marketing strategy in its business plan, LiveFlow created a separate marketing profit and loss statement (P&L) to track how well the company was doing with its marketing initiatives.
This is a great approach, allowing businesses to focus on where their marketing dollars are making the most impact. Having this information handy will enable you to build out your business plan’s marketing section with confidence. LiveFlow has shared the template here . You can test it for yourself.
2. Lula Body
![good product for business plan Business plan example: Lula body](https://blog.hubspot.com/hs-fs/hubfs/Google%20Drive%20Integration/12%20Expert-Vetted%20Sample%20Business%20Plans%20to%20Help%20You%20Write%20Your%20Own-Jun-22-2022-08-13-57-82-PM.jpeg?width=400&height=429&name=12%20Expert-Vetted%20Sample%20Business%20Plans%20to%20Help%20You%20Write%20Your%20Own-Jun-22-2022-08-13-57-82-PM.jpeg)
Sometimes all you need is a solid mission statement and core values to guide you on how to go about everything. You do this by creating a business plan revolving around how to fulfill your statement best.
For example, Patagonia is an eco-friendly company, so their plan discusses how to make the best environmentally friendly products without causing harm.
A good mission statement should not only resonate with consumers but should also serve as a core value compass for employees as well.
Patagonia has one of the most compelling mission statements I’ve seen:
"Together, let’s prioritise purpose over profit and protect this wondrous planet, our only home."
It reels you in from the start, and the environmentally friendly theme continues throughout the rest of the statement.
This mission goes on to explain that they are out to "Build the best product, cause no unnecessary harm, and use business to protect nature."
Their mission statement is compelling and detailed, with each section outlining how they will accomplish their goal.
4. Vesta Home Automation
![good product for business plan business plan example: Vesta executive summary](https://blog.hubspot.com/hs-fs/hubfs/sample-business-plans_5.webp?width=399&height=395&name=sample-business-plans_5.webp)
This executive summary for a smart home device startup is part of a business plan created by students at Mount Royal University .
While it lacks some of the sleek visuals of the templates above, its executive summary does a great job of demonstrating how invested they are in the business.
Right away, they mention they’ve invested $200,000 into the company already, which shows investors they have skin in the game and aren’t just looking for someone else to foot the bill.
This is the kind of business plan you need when applying for business funds. It clearly illustrates the expected future of the company and how the business has been coming along over the years.
5. NALB Creative Center
![good product for business plan business plan examples: nalb creative center](https://blog.hubspot.com/hubfs/image-png-Jun-13-2023-03-34-49-0035-PM.png)
This fictional business plan for an art supply store includes everything one might need in a business plan: an executive summary, a company summary, a list of services, a market analysis summary, and more.
One of its most notable sections is its market analysis summary, which includes an overview of the population growth in the business’ target geographical area, as well as a breakdown of the types of potential customers they expect to welcome at the store.
This sort of granular insight is essential for understanding and communicating your business’s growth potential. Plus, it lays a strong foundation for creating relevant and useful buyer personas .
It’s essential to keep this information up-to-date as your market and target buyer changes. For that reason, you should carry out market research as often as possible to ensure that you’re targeting the correct audience and sharing accurate information with your investors.
Due to its comprehensiveness, it’s an excellent example to follow if you’re opening a brick-and-mortar store and need to get external funding to start your business .
6. Curriculum Companion Suites (CSS)
![good product for business plan business plan examples: curriculum companion suites](https://blog.hubspot.com/hs-fs/hubfs/sample-business-plans_7.webp?width=650&height=379&name=sample-business-plans_7.webp)
If you’re looking for a SaaS business plan example, look no further than this business plan for a fictional educational software company called Curriculum Companion Suites.
Like the business plan for the NALB Creative Center, it includes plenty of information for prospective investors and other key stakeholders in the business.
One of the most notable features of this business plan is the executive summary, which includes an overview of the product, market, and mission.
The first two are essential for software companies because the product offering is so often at the forefront of the company’s strategy. Without that information being immediately available to investors and executives, then you risk writing an unfocused business plan.
It’s essential to front-load your company’s mission if it explains your "Why?" and this example does just that. In other words, why do you do what you do, and why should stakeholders care? This is an important section to include if you feel that your mission will drive interest in the business and its offerings.
7. Culina Sample Business Plan
![good product for business plan sample business plan: Culina](https://blog.hubspot.com/hs-fs/hubfs/sample-business-plans_11-1.webp?width=400&height=505&name=sample-business-plans_11-1.webp)
Culina's sample business plan is an excellent example of how to lay out your business plan so that it flows naturally, engages readers, and provides the critical information investors and stakeholders need.
You can use this template as a guide while you're gathering important information for your own business plan. You'll have a better understanding of the data and research you need to do since Culina’s plan outlines these details so flawlessly for inspiration.
8. Plum Sample Business Plan
![good product for business plan Sample business plan: Plum](https://blog.hubspot.com/hs-fs/hubfs/Google%20Drive%20Integration/12%20Expert-Vetted%20Sample%20Business%20Plans%20to%20Help%20You%20Write%20Your%20Own-Jun-22-2022-08-13-58-50-PM.jpeg?width=400&height=518&name=12%20Expert-Vetted%20Sample%20Business%20Plans%20to%20Help%20You%20Write%20Your%20Own-Jun-22-2022-08-13-58-50-PM.jpeg)
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Small Business Trends
How to create a business plan: examples & free template.
This guide has been designed to help you create a winning plan that stands out in the ever-evolving marketplace. U sing real-world examples and a free downloadable template, it will walk you through each step of the process.
Table of Contents
How to Write a Business Plan
Executive summary.
The Executive Summary serves as the gateway to your business plan, offering a snapshot of your venture’s core aspects. This section should captivate and inform, succinctly summarizing the essence of your plan.
Example: EcoTech is a technology company specializing in eco-friendly and sustainable products designed to reduce energy consumption and minimize waste. Our mission is to create innovative solutions that contribute to a cleaner, greener environment.
Overview and Business Objectives
This part of the plan demonstrates to investors and stakeholders your vision for growth and the practical steps you’ll take to get there.
Company Description
Include information about the company’s founders, their expertise, and why they are suited to lead the business to success. This section should paint a vivid picture of your business, its values, and its place in the industry.
Define Your Target Market
Example: Our target market comprises environmentally conscious consumers and businesses looking for innovative solutions to reduce their carbon footprint. Our ideal customers are those who prioritize sustainability and are willing to invest in eco-friendly products.
Market Analysis
Our research indicates a gap in the market for high-quality, innovative eco-friendly technology products that cater to both individual and business clients.
SWOT Analysis
Competitive analysis.
In this section, you’ll analyze your competitors in-depth, examining their products, services, market positioning, and pricing strategies. Understanding your competition allows you to identify gaps in the market and tailor your offerings to outperform them.
Organization and Management Team
Example: EcoTech’s organizational structure comprises the following key roles: CEO, CTO, CFO, Sales Director, Marketing Director, and R&D Manager. Our management team has extensive experience in technology, sustainability, and business development, ensuring that we are well-equipped to execute our business plan successfully.
Products and Services Offered
Marketing and sales strategy.
Describe the nature of your advertising campaigns and promotional activities, explaining how they will capture the attention of your target audience and convey the value of your products or services. Outline your sales strategy, including your sales process, team structure, and sales targets.
Logistics and Operations Plan
Inventory control is another crucial aspect, where you explain strategies for inventory management to ensure efficiency and reduce wastage. The section should also describe your production processes, emphasizing scalability and adaptability to meet changing market demands.
Financial Projections Plan
In the Financial Projections Plan, lay out a clear and realistic financial future for your business. This should include detailed projections for revenue, costs, and profitability over the next three to five years.
Income Statement
The income statement , also known as the profit and loss statement, provides a summary of your company’s revenues and expenses over a specified period. It helps you track your business’s financial performance and identify trends, ensuring you stay on track to achieve your financial goals.
Cash Flow Statement
Section | Description | Example |
---|---|---|
Executive Summary | Brief overview of the business plan | Overview of EcoTech and its mission |
Overview & Objectives | Outline of company's goals and strategies | Market leadership in sustainable technology |
Company Description | Detailed explanation of the company and its unique selling proposition | EcoTech's history, mission, and vision |
Target Market | Description of ideal customers and their needs | Environmentally conscious consumers and businesses |
Market Analysis | Examination of industry trends, customer needs, and competitors | Trends in eco-friendly technology market |
SWOT Analysis | Evaluation of Strengths, Weaknesses, Opportunities, and Threats | Strengths and weaknesses of EcoTech |
Competitive Analysis | In-depth analysis of competitors and their strategies | Analysis of GreenTech and EarthSolutions |
Organization & Management | Overview of the company's structure and management team | Key roles and team members at EcoTech |
Products & Services | Description of offerings and their unique features | Energy-efficient lighting solutions, solar chargers |
Marketing & Sales | Outline of marketing channels and sales strategies | Digital advertising, content marketing, influencer partnerships |
Logistics & Operations | Details about daily operations, supply chain, inventory, and quality control | Partnerships with manufacturers, quality control |
Financial Projections | Forecast of revenue, expenses, and profit for the next 3-5 years | Projected growth in revenue and net profit |
Income Statement | Summary of company's revenues and expenses over a specified period | Revenue, Cost of Goods Sold, Gross Profit, Net Income |
Cash Flow Statement | Overview of cash inflows and outflows within the business | Net Cash from Operating Activities, Investing Activities, Financing Activities |
Tips on Writing a Business Plan
3. Set realistic goals: Your business plan should outline achievable objectives that are specific, measurable, attainable, relevant, and time-bound (SMART). Setting realistic goals demonstrates your understanding of the market and increases the likelihood of success.
FREE Business Plan Template
To help you get started on your business plan, we have created a template that includes all the essential components discussed in the “How to Write a Business Plan” section. This easy-to-use template will guide you through each step of the process, ensuring you don’t miss any critical details.
What is a Business Plan?
Why you should write a business plan, what are the different types of business plans.
In today’s fast-paced business world, having a well-structured roadmap is more important than ever. A traditional business plan provides a comprehensive overview of your company’s goals and strategies, helping you make informed decisions and achieve long-term success. There are various types of business plans, each designed to suit different needs and purposes. Let’s explore the main types:
Type of Business Plan | Purpose | Key Components | Target Audience |
---|---|---|---|
Startup Business Plan | Outlines the company's mission, objectives, target market, competition, marketing strategies, and financial projections. | Mission Statement, Company Description, Market Analysis, Competitive Analysis, Organizational Structure, Marketing and Sales Strategy, Financial Projections. | Entrepreneurs, Investors |
Internal Business Plan | Serves as a management tool for guiding the company's growth, evaluating its progress, and ensuring that all departments are aligned with the overall vision. | Strategies, Milestones, Deadlines, Resource Allocation. | Internal Team Members |
Strategic Business Plan | Outlines long-term goals and the steps to achieve them. | SWOT Analysis, Market Research, Competitive Analysis, Long-Term Goals. | Executives, Managers, Investors |
Feasibility Business Plan | Assesses the viability of a business idea. | Market Demand, Competition, Financial Projections, Potential Obstacles. | Entrepreneurs, Investors |
Growth Business Plan | Focuses on strategies for scaling up an existing business. | Market Analysis, New Product/Service Offerings, Financial Projections. | Business Owners, Investors |
Operational Business Plan | Outlines the company's day-to-day operations. | Processes, Procedures, Organizational Structure. | Managers, Employees |
Lean Business Plan | A simplified, agile version of a traditional plan, focusing on key elements. | Value Proposition, Customer Segments, Revenue Streams, Cost Structure. | Entrepreneurs, Startups |
One-Page Business Plan | A concise summary of your company's key objectives, strategies, and milestones. | Key Objectives, Strategies, Milestones. | Entrepreneurs, Investors, Partners |
Nonprofit Business Plan | Outlines the mission, goals, target audience, fundraising strategies, and budget allocation for nonprofit organizations. | Mission Statement, Goals, Target Audience, Fundraising Strategies, Budget. | Nonprofit Leaders, Board Members, Donors |
Franchise Business Plan | Focuses on the franchisor's requirements, as well as the franchisee's goals, strategies, and financial projections. | Franchise Agreement, Brand Standards, Marketing Efforts, Operational Procedures, Financial Projections. | Franchisors, Franchisees, Investors |
Using Business Plan Software
Enloop is a robust business plan software that automatically generates a tailored plan based on your inputs. It provides industry-specific templates, financial forecasting, and a unique performance score that updates as you make changes to your plan. Enloop also offers a free version, making it accessible for businesses on a budget.
Software | Key Features | User Interface | Additional Features |
---|---|---|---|
LivePlan | Over 500 sample plans, financial forecasting tools, progress tracking against KPIs | User-friendly, visually appealing | Allows creation of professional-looking business plans |
Upmetrics | Customizable templates, financial forecasting tools, collaboration capabilities | Simple and intuitive | Provides a resource library for business planning |
Bizplan | Drag-and-drop builder, modular sections, financial forecasting tools, progress tracking | Simple, visually engaging | Designed to simplify the business planning process |
Enloop | Industry-specific templates, financial forecasting tools, automatic business plan generation, unique performance score | Robust, user-friendly | Offers a free version, making it accessible for businesses on a budget |
Tarkenton GoSmallBiz | Guided business plan builder, customizable templates, financial projection tools | User-friendly | Offers CRM tools, legal document templates, and additional resources for small businesses |
Business Plan FAQs
What is a good business plan, what are the 3 main purposes of a business plan, can i write a business plan by myself.
We also have examples for specific industries, including a using food truck business plan , salon business plan , farm business plan , daycare business plan , and restaurant business plan .
Is it possible to create a one-page business plan?
How long should a business plan be, what is a business plan outline, what are the 5 most common business plan mistakes, what questions should be asked in a business plan.
A business plan should address questions such as: What problem does the business solve? Who is the specific target market ? What is the unique selling proposition? What are the company’s objectives? How will it achieve those objectives?
What’s the difference between a business plan and a strategic plan?
How is business planning for a nonprofit different.
How to Write a Business Plan (Plus Examples & Templates)
May 24, 2021
![good product for business plan How to Write a Business Plan (Plus Examples & Templates)](https://www.upflip.com/wp-content/uploads/2021/05/Woman-working-on-a-business-plan-for-dog-boarding-business-1.png)
Have you ever wondered how to write a business plan step by step? Mike Andes, told us:
This guide will help you write a business plan to impress investors.
Throughout this process, we’ll get information from Mike Andes, who started Augusta Lawn Care Services when he was 12 and turned it into a franchise with over 90 locations. He has gone on to help others learn how to write business plans and start businesses. He knows a thing or two about writing business plans!
We’ll start by discussing the definition of a business plan. Then we’ll discuss how to come up with the idea, how to do the market research, and then the important elements in the business plan format. Keep reading to start your journey!
What Is a Business Plan?
A business plan is simply a road map of what you are trying to achieve with your business and how you will go about achieving it. It should cover all elements of your business including:
- Finding customers
- Plans for developing a team
- Competition
- Legal structures
- Key milestones you are pursuing
If you aren’t quite ready to create a business plan, consider starting by reading our business startup guide .
Get a Business Idea
Before you can write a business plan, you have to have a business idea. You may see a problem that needs to be solved and have an idea how to solve it, or you might start by evaluating your interests and skills.
Mike told us, “The three things I suggest asking yourself when thinking about starting a business are:
- What am I good at?
- What would I enjoy doing?
- What can I get paid for?”
![How to Write a Business Plan (Plus Examples & Templates) 1 Three adjoining circles about business opportunity](https://www.upflip.com/wp-content/uploads/2021/05/business-opportunity-for-business-plan-writing.jpg)
If all three of these questions don’t lead to at least one common answer, it will probably be a much harder road to success. Either there is not much market for it, you won’t be good at it, or you won’t enjoy doing it.
As Mike told us, “There’s enough stress starting and running a business that if you don’t like it or aren’t good at it, it’s hard to succeed.”
If you’d like to hear more about Mike’s approach to starting a business, check out our YouTube video
Conduct Market Analysis
Market analysis is focused on establishing if there is a target market for your products and services, how large the target market is, and identifying the demographics of people or businesses that would be interested in the product or service. The goal here is to establish how much money your business concept can make.
Product and Service Demand
![How to Write a Business Plan (Plus Examples & Templates) 2 An image showing product service and demand](https://www.upflip.com/wp-content/uploads/2021/05/product-service-and-demand.jpg)
A search engine is your best friend when trying to figure out if there is demand for your products and services. Personally, I love using presearch.org because it lets you directly search on a ton of different platforms including Google, Youtube, Twitter, and more. Check out the screenshot for the full list of search options.
With quick web searches, you can find out how many competitors you have, look through their reviews, and see if there are common complaints about the competitors. Bad reviews are a great place to find opportunities to offer better products or services.
If there are no similar products or services, you may have stumbled upon something new, or there may just be no demand for it. To find out, go talk to your most honest friend about the idea and see what they think. If they tell you it’s dumb or stare at you vacantly, there’s probably no market for it.
You can also conduct a survey through social media to get public opinion on your idea. Using Facebook Business Manager , you could get a feel for who would be interested in your product or service.
I ran a quick test of how many people between 18-65 you could reach in the U.S. during a week. It returned an estimated 700-2,000 for the total number of leads, which is enough to do a fairly accurate statistical analysis.
Identify Demographics of Target Market
Depending on what type of business you want to run, your target market will be different. The narrower the demographic, the fewer potential customers you’ll have. If you did a survey, you’ll be able to use that data to help define your target audience. Some considerations you’ll want to consider are:
- Other Interests
- Marital Status
- Do they have kids?
Once you have this information, it can help you narrow down your options for location and help define your marketing further. One resource that Mike recommended using is the Census Bureau’s Quick Facts Map . He told us,
“It helps you quickly evaluate what the best areas are for your business to be located.”
How to Write a Business Plan
![How to Write a Business Plan (Plus Examples & Templates) 3 Business plan development](https://www.upflip.com/wp-content/uploads/2021/04/business-plan-development.jpg)
Now that you’ve developed your idea a little and established there is a market for it, you can begin writing a business plan. Getting started is easier with the business plan template we created for you to download. I strongly recommend using it as it is updated to make it easier to create an action plan.
Each of the following should be a section of your business plan:
- Business Plan Cover Page
- Table of Contents
- Executive Summary
- Company Description
- Description of Products and Services
SWOT Analysis
- Competitor Data
- Competitive Analysis
- Marketing Expenses Strategy
Pricing Strategy
- Distribution Channel Assessment
- Operational Plan
- Management and Organizational Strategy
- Financial Statements and/or Financial Projections
We’ll look into each of these. Don’t forget to download our free business plan template (mentioned just above) so you can follow along as we go.
How to Write a Business Plan Step 1. Create a Cover Page
The first thing investors will see is the cover page for your business plan. Make sure it looks professional. A great cover page shows that you think about first impressions.
A good business plan should have the following elements on a cover page:
- Professionally designed logo
- Company name
- Mission or Vision Statement
- Contact Info
Basically, think of a cover page for your business plan like a giant business card. It is meant to capture people’s attention but be quickly processed.
How to Write a Business Plan Step 2. Create a Table of Contents
Most people are busy enough that they don’t have a lot of time. Providing a table of contents makes it easy for them to find the pages of your plan that are meaningful to them.
A table of contents will be immediately after the cover page, but you can include it after the executive summary. Including the table of contents immediately after the executive summary will help investors know what section of your business plan they want to review more thoroughly.
Check out Canva’s article about creating a table of contents . It has a ton of great information about creating easy access to each section of your business plan. Just remember that you’ll want to use different strategies for digital and hard copy business plans.
How to Write a Business Plan Step 3. Write an Executive Summary
![How to Write a Business Plan (Plus Examples & Templates) 4 A notepad with a written executive summary for business plan writing](https://www.upflip.com/wp-content/uploads/2021/05/executive-summary-for-business-plan-writing.jpg)
An executive summary is where your business plan should catch the readers interest. It doesn’t need to be long, but should be quick and easy to read.
Mike told us,
How long should an executive summary bein an informal business plan?
For casual use, an executive summary should be similar to an elevator pitch, no more than 150-160 words, just enough to get them interested and wanting more. Indeed has a great article on elevator pitches . This can also be used for the content of emails to get readers’ attention.
It consists of three basic parts:
- An introduction to you and your business.
- What your business is about.
- A call to action
Example of an informal executive summary
One of the best elevator pitches I’ve used is:
So far that pitch has achieved a 100% success rate in getting partnerships for the business.
What should I include in an executive summary for investors?
Investors are going to need a more detailed executive summary if you want to secure financing or sell equity. The executive summary should be a brief overview of your entire business plan and include:
- Introduction of yourself and company.
- An origin story (Recognition of a problem and how you came to solution)
- An introduction to your products or services.
- Your unique value proposition. Make sure to include intellectual property.
- Where you are in the business life cycle
- Request and why you need it.
Successful business plan examples
The owner of Urbanity told us he spent 2 months writing a 75-page business plan and received a $250,000 loan from the bank when he was 23. Make your business plan as detailed as possible when looking for financing. We’ve provided a template to help you prepare the portions of a business plan that banks expect.
Here’s the interview with the owner of Urbanity:
When to write an executive summary?
Even though the summary is near the beginning of a business plan, you should write it after you complete the rest of a business plan. You can’t talk about revenue, profits, and expected expenditures if you haven’t done the market research and created a financial plan.
What mistakes do people make when writing an executive summary?
Business owners commonly go into too much detail about the following items in an executive summary:
- Marketing and sales processes
- Financial statements
- Organizational structure
- Market analysis
These are things that people will want to know later, but they don’t hook the reader. They won’t spark interest in your small business, but they’ll close the deal.
How to Write a Business Plan Step 4. Company Description
Every business plan should include a company description. A great business plan will include the following elements while describing the company:
- Mission statement
- Philosophy and vision
- Company goals
Target market
- Legal structure
Let’s take a look at what each section includes in a good business plan.
Mission Statement
A mission statement is a brief explanation of why you started the company and what the company’s main focus is. It should be no more than one or two sentences. Check out HubSpot’s article 27 Inspiring Mission Statement for a great read on informative and inspiring mission and vision statements.
Company Philosophy and Vision
![How to Write a Business Plan (Plus Examples & Templates) 5 Writing the company philosophy and vision](https://www.upflip.com/wp-content/uploads/2021/05/company-vision-for-business-plan-writing.jpg)
The company philosophy is what drives your company. You’ll normally hear them called core values. These are the building blocks that make your company different. You want to communicate your values to customers, business owners, and investors as often as possible to build a company culture, but make sure to back them up.
What makes your company different?
Each company is different. Your new business should rise above the standard company lines of honesty, integrity, fun, innovation, and community when communicating your business values. The standard answers are corporate jargon and lack authenticity.
Examples of core values
One of my clients decided to add a core values page to their website. As a tech company they emphasized the values:
- Prioritize communication.
- Never stop learning.
- Be transparent.
- Start small and grow incrementally.
These values communicate how the owner and the rest of the company operate. They also show a value proposition and competitive advantage because they specifically focus on delivering business value from the start. These values also genuinely show what the company is about and customers recognize the sincerity. Indeed has a great blog about how to identify your core values .
What is a vision statement?
A vision statement communicate the long lasting change a business pursues. The vision helps investors and customers understand what your company is trying to accomplish. The vision statement goes beyond a mission statement to provide something meaningful to the community, customer’s lives, or even the world.
Example vision statements
The Alzheimer’s Association is a great example of a vision statement:
A world without Alzheimer’s Disease and other dementia.
It clearly tells how they want to change the world. A world without Alzheimers might be unachievable, but that means they always have room for improvement.
Business Goals
You have to measure success against goals for a business plan to be meaningful. A business plan helps guide a company similar to how your GPS provides a road map to your favorite travel destination. A goal to make as much money as possible is not inspirational and sounds greedy.
Sure, business owners want to increase their profits and improve customer service, but they need to present an overview of what they consider success. The goals should help everyone prioritize their work.
How far in advance should a business plan?
Business planning should be done at least one year in advance, but many banks and investors prefer three to five year business plans. Longer plans show investors that the management team understands the market and knows the business is operating in a constantly shifting market. In addition, a plan helps businesses to adjust to changes because they have already considered how to handle them.
Example of great business goals
My all time-favorite long-term company goals are included in Tesla’s Master Plan, Part Deux . These goals were written in 2016 and drive the company’s decisions through 2026. They are the reason that investors are so forgiving when Elon Musk continually fails to meet his quarterly and annual goals.
If the progress aligns with the business plan investors are likely to continue to believe in the company. Just make sure the goals are reasonable or you’ll be discredited (unless you’re Elon Musk).
![How to Write a Business Plan (Plus Examples & Templates) 6 A man holding an iPad with a cup of coffee on his desk](https://www.upflip.com/wp-content/uploads/2021/04/target-market-for-charter-boat-business.jpg)
You did target market research before creating a business plan. Now it’s time to add it to the plan so others understand what your ideal customer looks like. As a new business owner, you may not be considered an expert in your field yet, so document everything. Make sure the references you use are from respectable sources.
Use information from the specific lender when you are applying for lending. Most lenders provide industry research reports and using their data can strengthen the position of your business plan.
A small business plan should include a section on the external environment. Understanding the industry is crucial because we don’t plan a business in a vacuum. Make sure to research the industry trends, competitors, and forecasts. I personally prefer IBIS World for my business research. Make sure to answer questions like:
- What is the industry outlook long-term and short-term?
- How will your business take advantage of projected industry changes and trends?
- What might happen to your competitors and how will your business successfully compete?
Industry resources
Some helpful resources to help you establish more about your industry are:
- Trade Associations
- Federal Reserve
- Bureau of Labor Statistics
Legal Structure
There are five basic types of legal structures that most people will utilize:
- Sole proprietorships
- Limited Liability Companies (LLC)
Partnerships
Corporations.
- Franchises.
Each business structure has their pros and cons. An LLC is the most common legal structure due to its protection of personal assets and ease of setting up. Make sure to specify how ownership is divided and what roles each owner plays when you have more than one business owner.
You’ll have to decide which structure is best for you, but we’ve gathered information on each to make it easier.
Sole Proprietorship
A sole proprietorship is the easiest legal structure to set up but doesn’t protect the owner’s personal assets from legal issues. That means if something goes wrong, you could lose both your company and your home.
To start a sole proprietorship, fill out a special tax form called a Schedule C . Sole proprietors can also join the American Independent Business Alliance .
Limited Liability Company (LLC)
An LLC is the most common business structure used in the United States because an LLC protects the owner’s personal assets. It’s similar to partnerships and corporations, but can be a single-member LLC in most states. An LLC requires a document called an operating agreement.
Each state has different requirements. Here’s a link to find your state’s requirements . Delaware and Nevada are common states to file an LLC because they are really business-friendly. Here’s a blog on the top 10 states to get an LLC.
Partnerships are typically for legal firms. If you choose to use a partnership choose a Limited Liability Partnership. Alternatively, you can just use an LLC.
Corporations are typically for massive organizations. Corporations have taxes on both corporate and income tax so unless you plan on selling stock, you are better off considering an LLC with S-Corp status . Investopedia has good information corporations here .
![How to Write a Business Plan (Plus Examples & Templates) 7 An iPad with colored pens on a desk](https://www.upflip.com/wp-content/uploads/2020/12/franchise-for-car-rental-business.jpg)
There are several opportunities to purchase successful franchises. TopFranchise.com has a list of companies in a variety of industries that offer franchise opportunities. This makes it where an entrepreneur can benefit from the reputation of an established business that has already worked out many of the kinks of starting from scratch.
How to Write a Business Plan Step 5. Products and Services
This section of the business plan should focus on what you sell, how you source it, and how you sell it. You should include:
- Unique features that differentiate your business products from competitors
- Intellectual property
- Your supply chain
- Cost and pricing structure
Questions to answer about your products and services
Mike gave us a list of the most important questions to answer about your product and services:
- How will you be selling the product? (in person, ecommerce, wholesale, direct to consumer)?
- How do you let them know they need a product?
- How do you communicate the message?
- How will you do transactions?
- How much will you be selling it for?
- How many do you think you’ll sell and why?
Make sure to use the worksheet on our business plan template .
How to Write a Business Plan Step 6. Sales and Marketing Plan
The marketing and sales plan is focused on the strategy to bring awareness to your company and guides how you will get the product to the consumer. It should contain the following sections:
SWOT Analysis stands for strengths, weaknesses, opportunities, and threats. Not only do you want to identify them, but you also want to document how the business plans to deal with them.
Business owners need to do a thorough job documenting how their service or product stacks up against the competition.
If proper research isn’t done, investors will be able to tell that the owner hasn’t researched the competition and is less likely to believe that the team can protect its service from threats by the more well-established competition. This is one of the most common parts of a presentation that trips up business owners presenting on Shark Tank .
SWOT Examples
![How to Write a Business Plan (Plus Examples & Templates) 8 Business plan SWOT analysis](https://www.upflip.com/wp-content/uploads/2021/05/SWOT-analysis-for-writing-a-business-plan-1.jpg)
Examples of strengths and weaknesses could be things like the lack of cash flow, intellectual property ownership, high costs of suppliers, and customers’ expectations on shipping times.
Opportunities could be ways to capitalize on your strengths or improve your weaknesses, but may also be gaps in the industry. This includes:
- Adding offerings that fit with your current small business
- Increase sales to current customers
- Reducing costs through bulk ordering
- Finding ways to reduce inventory
- And other areas you can improve
Threats will normally come from outside of the company but could also be things like losing a key member of the team. Threats normally come from competition, regulations, taxes, and unforeseen events.
The management team should use the SWOT analysis to guide other areas of business planning, but it absolutely has to be done before a business owner starts marketing.
Include Competitor Data in Your Business Plan
When you plan a business, taking into consideration the strengths and weaknesses of the competition is key to navigating the field. Providing an overview of your competition and where they are headed shows that you are invested in understanding the industry.
For smaller businesses, you’ll want to search both the company and the owners names to see what they are working on. For publicly held corporations, you can find their quarterly and annual reports on the SEC website .
What another business plans to do can impact your business. Make sure to include things that might make it attractive for bigger companies to outsource to a small business.
Marketing Strategy
The marketing and sales part of business plans should be focused on how you are going to make potential customers aware of your business and then sell to them.
If you haven’t already included it, Mike recommends:
“They’ll want to know about Demographics, ages, and wealth of your target market.”
Make sure to include the Total addressable market . The term refers to the value if you captured 100% of the market.
Advertising Strategy
You’ll explain what formats of advertising you’ll be using. Some possibilities are:
- Online: Facebook and Google are the big names to work with here.
- Print : Print can be used to reach broad groups or targeted markets. Check out this for tips .
- Radio : iHeartMedia is one of the best ways to advertise on the radio
- Cable television : High priced, hard to measure ROI, but here’s an explanation of the process
- Billboards: Attracting customers with billboards can be beneficial in high traffic areas.
You’ll want to define how you’ll be using each including frequency, duration, and cost. If you have the materials already created, including pictures or links to the marketing to show creative assets.
Mike told us “Most businesses are marketing digitally now due to Covid, but that’s not always the right answer.”
Make sure the marketing strategy will help team members or external marketing agencies stay within the brand guidelines .
![How to Write a Business Plan (Plus Examples & Templates) 9 An iPad with graph about pricing strategy](https://www.upflip.com/wp-content/uploads/2021/05/pricing-strategy-for-business-plan-writing-1.jpg)
This section of a business plan should be focused on pricing. There are a ton of pricing strategies that may work for different business plans. Which one will work for you depends on what kind of a business you run.
Some common pricing strategies are:
- Value-based pricing – Commonly used with home buying and selling or other products that are status symbols.
- Skimming pricing – Commonly seen in video game consoles, price starts off high to recoup expenses quickly, then reduces over time.
- Competition-based pricing – Pricing based on competitors’ pricing is commonly seen at gas stations.
- Freemium services – Commonly used for software, where there is a free plan, then purchase options for more functionality.
HubSpot has a great calculator and blog on pricing strategies.
Beyond explaining what strategy your business plans to use, you should include references for how you came to this pricing strategy and how it will impact your cash flow.
Distribution Plan
This part of a business plan is focused on how the product or service is going to go through the supply chain. These may include multiple divisions or multiple companies. Make sure to include any parts of the workflow that are automated so investors can see where cost savings are expected and when.
Supply Chain Examples
For instance, lawn care companies would need to cover aspects such as:
- Suppliers for lawn care equipment and tools
- Any chemicals or treatments needed
- Repair parts for sprinkler systems
- Vehicles to transport equipment and employees
- Insurance to protect the company vehicles and people.
Examples of Supply Chains
These are fairly flat supply chains compared to something like a clothing designer where the clothes would go through multiple vendors. A clothing company might have the following supply chain:
- Raw materials
- Shipping of raw materials
- Converting of raw materials to thread
- Shipping thread to produce garments
- Garment producer
- Shipping to company
- Company storage
- Shipping to retail stores
There have been advances such as print on demand that eliminate many of these steps. If you are designing completely custom clothing, all of this would need to be planned to keep from having business disruptions.
The main thing to include in the business plan is the list of suppliers, the path the supply chain follows, the time from order to the customer’s home, and the costs associated with each step of the process.
According to BizPlanReview , a business plan without this information is likely to get rejected because they have failed to research the key elements necessary to make sales to the customer.
How to Write a Business Plan Step 7. Company Organization and Operational Plan
This part of the business plan is focused on how the business model will function while serving customers. The business plan should provide an overview of how the team will manage the following aspects:
Quality Control
- Legal environment
Let’s look at each for some insight.
Production has already been discussed in previous sections so I won’t go into it much. When writing a business plan for investors, try to avoid repetition as it creates a more simple business plan.
If the organizational plan will be used by the team as an overview of how to perform the best services for the customer, then redundancy makes more sense as it communicates what is important to the business.
![How to Write a Business Plan (Plus Examples & Templates) 10 A wooden stamp with the words "quality control"](https://www.upflip.com/wp-content/uploads/2021/05/quality-control-for-business-plan-writing-1.jpg)
Quality control policies help to keep the team focused on how to verify that the company adheres to the business plan and meets or exceeds customer expectations.
Quality control can be anything from a standard that says “all labels on shirts can be no more than 1/16″ off center” to a defined checklist of steps that should be performed and filled out for every customer.
There are a variety of organizations that help define quality control including:
- International Organization for Standardization – Quality standards for energy, technology, food, production environments, and cybersecurity
- AICPA – Standard defined for accounting.
- The Joint Commission – Healthcare
- ASHRAE – HVAC best practices
You can find lists of the organizations that contribute most to the government regulation of industries on Open Secrets . Research what the leaders in your field are doing. Follow their example and implement it in your quality control plan.
For location, you should use information from the market research to establish where the location will be. Make sure to include the following in the location documentation.
- The size of your location
- The type of building (retail, industrial, commercial, etc.)
- Zoning restrictions – Urban Wire has a good map on how zoning works in each state
- Accessibility – Does it meet ADA requirements?
- Costs including rent, maintenance, utilities, insurance and any buildout or remodeling costs
- Utilities – b.e.f. has a good energy calculator .
Legal Environment
The legal requirement section is focused on defining how to meet the legal requirements for your industry. A good business plan should include all of the following:
- Any licenses and/or permits that are needed and whether you’ve obtained them
- Any trademarks, copyrights, or patents that you have or are in the process of applying for
- The insurance coverage your business requires and how much it costs
- Any environmental, health, or workplace regulations affecting your business
- Any special regulations affecting your industry
- Bonding requirements, if applicable
Your local SBA office can help you establish requirements in your area. I strongly recommend using them. They are a great resource.
Your business plan should include a plan for company organization and hiring. While you may be the only person with the company right now, down the road you’ll need more people. Make sure to consider and document the answers to the following questions:
- What is the current leadership structure and what will it look like in the future?
- What types of employees will you have? Are there any licensing or educational requirements?
- How many employees will you need?
- Will you ever hire freelancers or independent contractors?
- What is each position’s job description?
- What is the pay structure (hourly, salaried, base plus commission, etc.)?
- How do you plan to find qualified employees and contractors?
One of the most crucial parts of a business plan is the organizational chart. This simply shows the positions the company will need, who is in charge of them and the relationship of each of them. It will look similar to this:
![How to Write a Business Plan (Plus Examples & Templates) 11 Organization chart](https://www.upflip.com/wp-content/uploads/2021/05/the-organization-chart.jpg)
Our small business plan template has a much more in-depth organizational chart you can edit to include when you include the organizational chart in your business plan.
How to Write a Business Plan Step 8. Financial Statements
No business plan is complete without financial statements or financial projections. The business plan format will be different based on whether you are writing a business plan to expand a business or a startup business plan. Let’s dig deeper into each.
Provide All Financial Income from an Existing Business
An existing business should use their past financial documents including the income statement, balance sheet, and cash flow statement to find trends to estimate the next 3-5 years.
You can create easy trendlines in excel to predict future revenue, profit and loss, cash flow, and other changes in year-over-year performance. This will show your expected performance assuming business continues as normal.
If you are seeking an investment, then the business is probably not going to continue as normal. Depending on the financial plan and the purpose of getting financing, adjustments may be needed to the following:
- Higher Revenue if expanding business
- Lower Cost of Goods Sold if purchasing inventory with bulk discounts
- Adding interest if utilizing financing (not equity deal)
- Changes in expenses
- Addition of financing information to the cash flow statement
- Changes in Earnings per Share on the balance sheet
Financial modeling is a challenging subject, but there are plenty of low-cost courses on the subject. If you need help planning your business financial documentation take some time to watch some of them.
Make it a point to document how you calculated all the changes to the income statement, balance sheet, and cash flow statement in your business plan so that key team members or investors can verify your research.
Financial Projections For A Startup Business Plan
Unlike an existing business, a startup doesn’t have previous success to model its future performance. In this scenario, you need to focus on how to make a business plan realistic through the use of industry research and averages.
Mike gave the following advice in his interview:
Financial Forecasting Mistakes
One of the things a lot of inexperienced people use is the argument, “If I get one percent of the market, it is worth $100 million.” If you use this, investors are likely to file the document under bad business plan examples.
Let’s use custom t-shirts as an example.
Credence Research estimated in 2018 there were 11,334,800,000 custom t-shirts sold for a total of $206.12 Billion, with a 6% compound annual growth rate.
With that data, you can calculate that the industry will grow to $270 Billion in 2023 and that the average shirt sold creates $18.18 in revenue.
Combine that with an IBIS World estimate of 11,094 custom screen printers and that means even if you become an average seller, you’ll get .009% of the market.
Here’s a table for easier viewing of that information.
![How to Write a Business Plan (Plus Examples & Templates) 12 A table showing yearly revenue of a business](https://www.upflip.com/wp-content/uploads/2021/05/projection-of-revenue-for-business-plan-writing.jpg)
The point here is to make sure your business proposal examples make sense.
You’ll need to know industry averages such as cost of customer acquisition, revenue per customer, the average cost of goods sold, and admin costs to be able to create accurate estimates.
Our simple business plan templates walk you through most of these processes. If you follow them you’ll have a good idea of how to write a business proposal.
How to Write a Business Plan Step 9. Business Plan Example of Funding Requests
What is a business plan without a plan on how to obtain funding?
The Small Business Administration has an example for a pizza restaurant that theoretically needed nearly $20k to make it through their first month.
In our video, How to Start a $500K/Year T-Shirt Business (Pt. 1 ), Sanford Booth told us he needed about $200,000 to start his franchise and broke even after 4 months.
Freshbooks estimates it takes on average 2-3 years for a business to be profitable, which means the fictitious pizza company from the SBA could need up to $330k to make it through that time and still pay their bills for their home and pizza shop.
Not every business needs that much to start, but realistically it’s a good idea to assume that you need a fairly large cushion.
Ways to get funding for a small business
There are a variety of ways to cover this. the most common are:
- Bootstrapping – Using your savings without external funding.
- Taking out debt – loans, credit cards
- Equity, Seed Funding – Ownership of a percentage of the company in exchange for current funds
- Crowdsourcing – Promising a good for funding to create the product
Keep reading for more tips on how to write a business plan.
How funding will be used
When asking for business financing make sure to include:
- How much to get started?
- What is the minimum viable product and how soon can you make money?
- How will the money be spent?
Mike emphasized two aspects that should be included in every plan,
How to Write a Business Plan Resources
Here are some links to a business plan sample and business plan outline.
- Sample plan
It’s also helpful to follow some of the leading influencers in the business plan writing community. Here’s a list:
- Wise Plans – Shares a lot of information on starting businesses and is a business plan writing company.
- Optimus Business Plans – Another business plan writing company.
- Venture Capital – A venture capital thread that can help give you ideas.
How to Write a Business Plan: What’s Next?
We hope this guide about how to write a simple business plan step by step has been helpful. We’ve covered:
- The definition of a business plan
- Coming up with a business idea
- Performing market research
- The critical components of a business plan
- An example business plan
In addition, we provided you with a simple business plan template to assist you in the process of writing your startup business plan. The startup business plan template also includes a business model template that will be the key to your success.
Don’t forget to check out the rest of our business hub .
Have you written a business plan before? How did it impact your ability to achieve your goals?
80% of businesses fail... Learn how not to.
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![good product for business plan good product for business plan](https://www.upflip.com/wp-content/cache/flying-press/gravatar-e98317643f06.png)
Brandon Boushy
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![good product for business plan good product for business plan](https://www.upflip.com/wp-content/uploads/2023/01/Man-and-ebay-store-screenshot-3.jpg)
How to Sell on eBay: Learn From $360K/Year Seller
How to Sell on eBay for Beginners
- Is It Profitable to Sell on eBay?
- How Old Do You Have to Be to Sell on eBay?
- What Does It Cost to Sell on eBay?
- Who Pays for Shipping?
- What Can I Sell on eBay?
Is It Worth It to Sell on eBay?
How old to sell on ebay, how much does it cost to be a seller on ebay.
![good product for business plan Screenshot of sellers fee from eBay website](https://www.upflip.com/wp-content/uploads/2023/01/Screenshot-of-ebay-sellers-fee.jpg)
Yearly subscription converted to monthly rate | $4.95 | $21.95 | $59.95 | $299.95 | $2,999.95 |
Monthly subscription | $7.95 | $27.95 | $74.95 | $349.95 | - |
Free fixed price insertions | 250 /mo | 1,000 /mo | 10,000 /mo | 25,000 /mo | 100,000 /mo |
Free auctions in Collectibles and Fashion | 250 /mo | 250 /mo | 500 /mo | 1,000 /Mo | 2,500 /mo |
Additional fixed price insertion | $0.30 | $0.25 | $0.10 | $0.05 | $0.05 |
Additional auction insertion | $0.30 | $0.25 | $0.15 | $0.10 | $0.10 |
Final Value Fee | 3.0% - 15.00% | 2.5% - 15.00% | 2.5% - 15.00% | 2.5% - 15.00% | 2.5% - 15.00% |
Insertion fee credits for auction-style items that sell | not included | Yes | Yes | Yes | Yes |
Promotions Manager | Yes | Yes | Yes | Yes | Yes |
Markdown Manager | Yes | Yes | Yes | Yes | Yes |
Subscriber discounts | Yes | Yes | Yes | Yes | Yes |
Store home page | Yes | Yes | Yes | Yes | Yes |
Link to eBay Store on listings | Yes | Yes | Yes | Yes | Yes |
Terapeak sourcing insights | not included | Yes | Yes | Yes | Yes |
Dedicated customer support | not included | not included | not included | Yes | Yes |
10,000 fixed price listing allowance with zero insertion fee | not included | not included | not included | not included | $250.00 /mo |
50,000 fixed price listing allowance with zero insertion fee | not included | not included | not included | not included | $1,000.00 /mo |
Best for sellers who | Best for sellers who have a handful of products and want a storefront to brand and promote their business. | Unlock more zero insertion fee listings, Final Value Fee discounts, and a coupon for eBay-branded shipping supplies each quarter. | If you have an extensive product assortment, a Premium Store subscription gives you substantially more zero insertion fee listings. | For high volume sellers who have an extensive product catalog or are running a business that would benefit from dedicated customer support. | For high volume sellers who have an extensive product catalog or are running a business that would benefit from dedicated customer support. |
Eligibility | Have an eBay seller account. |
How much are eBay final value fees?
- Handling charges
- Shipping service the buyer selects
- Any other applicable fees
How to sell on eBay for free
Who pays for shipping on ebay.
![good product for business plan Screenshot of eBay customer service](https://www.upflip.com/wp-content/uploads/2023/01/Screenshot-of-eBay-customer-service-1.png)
Decide What to Sell on eBay
- Items that show nudity or sexual content
- Historical Artifacts
- Counterfeits
- Medical Equipment
- Prescriptions
- Illegal Products
What Can I S ell on eBay?
![good product for business plan Screenshot of home & garden from eBay website](https://www.upflip.com/wp-content/uploads/2023/01/Screenshot-of-home-garden-from-eBay-1.jpg)
- Parts and Accessories
- Consumer Electronics
- Home and Garden
How do beginners sell on eBay?
Want to know more about what sells the most on ebay.
- Pokemon Cards
- Other Collectibles
How to sell Pokemon cards on eBay
![good product for business plan Screenshot of pokemon card from eBay website](https://www.upflip.com/wp-content/uploads/2023/01/Pokemon-card-from-eBay.png)
- Card Condition
- Other information to help buyers know more about the card.
How to sell shoes on eBay
How to sell books on ebay.
![good product for business plan Screenshot of selling books from eBay website](https://www.upflip.com/wp-content/uploads/2023/01/Selling-books-on-eBay.jpg)
How to sell baseball cards on eBay
How to sell clothes on ebay.
- A title that clearly describes the product
- Front and back pictures
- Sizing information
- Care information
- Materials that the product includes
- Other relevant information
How to sell car on eBay
![good product for business plan Screenshot of selling parts and accessories from eBay website](https://www.upflip.com/wp-content/uploads/2023/01/Selling-vehicles-parts-and-accessories-from-eBay.png)
- Register the VIN with eBay Vin Decoder.
- Is a pre-1980 model.
- Was manufactured outside of North America.
- Was not originally intended for street-legal use.
- Use Autocheck for eBay . (It’s like CarFax but specifically for eBay sellers.)
- Create your listing. Use this checklist from eBay to make it easier.
- Use an Escrow.com account to give buyers peace of mind between purchase and delivery.
- Accept an offer.
- Deliver the vehicle.
- Request positive feedback.
How much does it cost to sell a car on eBay?
- Monthly Fees : $4.99 to $2,999.95
- Autocheck : $24.99
- Listing Fee : $19 to $79 per car (See what’s included in the table below.)
- Deposit Fee : 2.8%
- International Fee (optional) 1.65%
- Escrow.com Fee : $10 to $890 depending on escrow amount up to $100K.
- Total Potential Fees : $60 to $8,500 assuming the vehicle is under $100K.
- Accurate Shipping Costs : $1,300-$2,000 (Estimated using a car carrier from Las Vegas to New York City. Pricing will vary based on distance, gas prices, and other factors.)
Listing Type | Basic Package: $19 | Plus Package: $49 | Premium Package: $79 |
Auctioned Cars | 12 photos | 18 photos | Gallery Plus upgrade |
Auction up to 7 days | Auction up to 7 days | Auction up to 10 days | |
AutoCheck (cars & trucks listings only) | Reserve price up to $20,000 (cars & trucks, other vehicles & trailers, and boats listings) | Unlimited Reserve price | |
Reserve price up to $10,000 (motorcycles and powersports listings) | Add 'Buy It Now' | ||
AutoCheck (cars & trucks listings only) | AutoCheck (cars & trucks listings only) | ||
Bold title and subtitle upgrades | |||
Fixed Price Cars | 12 photos | 18 photos | 24 photos |
Duration up to 7 days | Duration up to 30 days | Gallery Plus upgrade | |
Vehicle price up to $10,000 (cars & trucks, other vehicles & trailers, and boats listings) | Vehicle price up to $20,000 (cars & trucks, other vehicles & trailers, and boats listings) | Duration up to 30 days | |
Vehicle price up to $5,000 (motorcycles and powersports listings) | Vehicle price up to $10,000 (motorcycles and powersports listings) | Unlimited vehicle price | |
AutoCheck (cars & trucks listings only) | AutoCheck (cars & trucks listings only) | AutoCheck (cars & trucks listings only) | |
Bold title and subtitle upgrades |
How to Setup eBay Account to Sell
- Go to the eBay Home Page.
- Create an Account.
- Start a Seller Account.
- Go Through the Guided Tutorial.
- Add Payment and Billing Methods.
- Set Shipping Preferences.
Step 1. Go to the eBay Homepage
![good product for business plan Screenshot-of-eBay-website](https://www.upflip.com/wp-content/uploads/2023/01/eBay-homepage-registration-2.jpg)
Step 2. Create an eBay Account
![good product for business plan Screenshot of business account from eBay website](https://www.upflip.com/wp-content/uploads/2023/01/eBay-business-account-1-1.jpg)
Step 3. Start a Seller Account
![good product for business plan Screenshot-of-eBay-website](https://www.upflip.com/wp-content/uploads/2023/01/eBay-seller-account.jpg)
Step 4. Go Through the Guided Tutorial
The seller hub is the business account portal. first, it will show you how to customize your screen. .
![good product for business plan Screenshot of customize your screen from eBay website](https://www.upflip.com/wp-content/uploads/2023/01/eBay-customize-screen.jpg)
Next, it shows you that you can go to listings from anywhere in the seller's portal.
![good product for business plan Screenshot-of-eBay-website](https://www.upflip.com/wp-content/uploads/2023/01/Sellers-portal-listing.jpg)
Next, you can view your messages
![good product for business plan Screenshot-of-eBay-website](https://www.upflip.com/wp-content/uploads/2023/01/Sellers-hub-messages-1.jpg)
eBay Seller Hub overview
Seller hub row 1.
- Get Started : This section includes a New Business Seller Guide , Subscription Options, New Listings Video, Listings Best Practices , and other useful resources.
- Tasks : This section starts empty and adds tasks as you need to do something.
- Sales : This section shows how much you’ve made in the last 7 days, 31 days, and 90 days.
Seller Hub Row 2
- Orders : This section includes orders that need to be shipped, returns, cancellation, ones waiting for payment, orders waiting for feedback, and orders that can count as combined purchases.
- Listings : Create listings, and view active listings, scheduled listings, and unsold closed listings.
- Traffic : Learn how many people are seeing your listing, clicking on it (clickthrough rate), viewing the page, and the percent of page views that result in sales (conversions).
![good product for business plan Screenshot-of-eBay-website](https://www.upflip.com/wp-content/uploads/2023/01/Seller-hub-listings-and-traffic.jpg)
Seller Hub Row 3
- Seller Level : You can be top-rated, above average, and below standard. Once you reach top-rated or top-rated plus, you’ll have an easier time competing against other sellers. We’ll talk about how to become top-rated later in the blog.
- eBay Academy: This is critical because an established seller can get lazy. Both top and new sellers should continue to learn how to sell stuff on eBay faster.
- Feedback : Buying and selling on eBay requires trust. That’s why reviews matter. You want to pay attention to your reviews because they impact how your items are displayed in comparison to other sellers. Make sure to provide feedback to your buyers and respond to any feedback you are given.
Seller Hub Row 4
[su_youtube url="https://youtu.be/dg7waxxg0ce"].
- Research : Learn which products sell better on eBay using TeraPeak .
- Shortcuts : These are just useful links for people selling items on eBay.
- Selling Tools : Integrate eBay with other programs like Quickbooks, eBay Seller Capital , and automate your responses.
![good product for business plan Screenshot-of-eBay-website](https://www.upflip.com/wp-content/uploads/2023/01/Seller-hub-announcements-and-offer.jpg)
Seller Hub Row 5
- Announcements : You’ll find updates from eBay to let you know what they have released.
- Promotional Offers : You’ll find special promotions eBay is offering. At the time of writing, they offered 200 listings without insertion fees.
- Monthly Limits (Account Summary): (This section might be labeled with either title.) It summarizes how many more listings you have under your plan.
Step 5. Add Payment and Billing Methods
- Personal bank account
- Business checking account
- Paypal account
- Credit card
- Debit card
Step 6. Set Up Your Shipping Preferences
![good product for business plan Screenshot of eBay website](https://www.upflip.com/wp-content/uploads/2023/01/Your-shipping-preferences.jpg)
- Enroll in the Global Shipping Program : Over 50% of eBay sales are to overseas customers, so you’ll probably want to join it.
- Exclude Shipping Locations : You can choose to limit potential buyers based on the continent, region, or country.
- Create Shipping Rate Tables : Create default rates to charge when a product is purchased.
- Offer Other Shipping Options : Use calculated shipping, combined payments, flat shipping rates, and other shipping options.
![good product for business plan Screenshot of shipping and tracking from eBay website](https://www.upflip.com/wp-content/uploads/2023/01/Shipping-and-tracking.jpg)
Find Items You’ll Be Selling on eBay
- Thrift stores
- Garage sales
- NextDoor Free Finds
Tools to Estimate eBay Sales Price
![good product for business plan Screenshot of worthpoint website](https://www.upflip.com/wp-content/uploads/2023/01/Screenshot-of-worthpoint-website-3.png)
Create Product Photos
- Use a product photography box like the one below.
- Use a background removal tool.
![good product for business plan Screenshot of light box from Amazon website](https://www.upflip.com/wp-content/uploads/2023/01/Screenshot-of-light-box-from-Amazon-1.png)
How to Post on eBay
- Explain What You’re Selling.
- Add Pictures.
- Add the Title.
- Set the Item Category.
- Provide Additional Details.
- Describe the Condition of the Product.
- Provide the Description of the Product.
- Set Pricing.
- Set Shipping Rates.
- Set Preferences.
Step 1. Explain What You Are Selling
![good product for business plan Screenshot-of-eBay-website](https://www.upflip.com/wp-content/uploads/2023/01/Start-your-listing.png)
Step 2. Add Pictures
![good product for business plan Screenshot of eBay website](https://www.upflip.com/wp-content/uploads/2023/01/Adding-pictures-to-eBay-1.png)
- A minimum of a single image per listing.
- Keep sizing at least 500 pixels on the long side and less than 12,000 pixels calculated using height plus width.
- Images must be JPG (all but GIF convert to JPG), BMP, GIF, TIF, or PNG no more than 12 MB file size. Just save a JPG quality 90+ and save space on your computer or phone.
- Do not add borders to images.
- Do not add text or artwork to pictures.
- eBay catalog stock photos cannot be the primary photo for a used item. Books, movies, or video games are exceptions.
Some pictures don’t work right on eBay
- GIF87 format : These will not show at all.
- TIFs with transparent background : This format might result in a black image.
- CMYK color : You’ll need to convert to RGB. eBay suggests using cmyk2rgb.com to convert your photos.
- PNG : eBay converts transparencies to a white background and saves them as JPG.
Review the eBay App Picture Links
- Adding Images to Listings : eBay explains how to add photos and use the background removal tool to create white images.
- Photo Tips : Learn how to take photos to make selling on eBay easier.
- Photos must accurately represent the item.
- Placeholder images are not allowed.
- Used, damaged, and broken items must be accurately represented.
- Do not add any text, callouts, or other items to the photos. Only include the item or items for sale.
- Use a product photography box.
- Use Canva background removal tool. It works way better.
Step 3. Add an Item Title to Your eBay Store Store Listing
- Bold Titles : $2.00
- Subtitle : $1.50 for up to 55 characters
- Custom Label or SKU: Free. (Make it easy to track orders and packages with SKUs up to 50 characters.)
![good product for business plan Screenshot of eBay website](https://www.upflip.com/wp-content/uploads/2023/01/Standard-vs-bold-1.png)
Step 4. Set the Product Category
Step 5. provide additional details.
![good product for business plan Screenshot of eBay website](https://www.upflip.com/wp-content/uploads/2023/01/Provide-additional-details-1.png)
Step 6. Describe Condition of Product
![good product for business plan Screenshot of eBay website](https://www.upflip.com/wp-content/uploads/2023/01/Describing-product-condition.png)
Step 7. Describe Product
Step 8. set pricing.
- Auction Format
- Buy It Now Listings
Auction Style Listings
- Duration : You can choose three, five, seven, or 10 days.
- Starting Bid: Set the starting price as low as one cent. The lower the opening bid, the better odds of creating a multi-bidder battle that can create extremely profitable products. While writing this section, the auction with the most bids started at 99 cents and has seven bidders competing for a competitive price that is currently around $75 dollars.
- Buy It Now Option: You can set a price where people can bypass the auction, but it needs to be 30% over the starting bid. If you have a reserve price, make sure the “Buy It Now” function is above the reserve price.
- Reserve Price: You can set a price that the auction must exceed. You have to pay a 7.5% fee to enable a reserve price, but it minimizes your losses if demand isn’t there for the product.
- Allow Offers: People can choose to send you an offer and you can auto-accept, accept, counter, or reject the offer.
- Schedule Listing : Set a specific time and date for the listing to begin.
- Sell as Lot : Sell multiple items together. If you have multiple items you think buyers will want collectively, you can include them in a single listing to stay under your monthly selling limits. (The free plan is 250 listings per month and $20,000 starting off). This is helpful for sellers with lots of products.
- Autorelist Checkbox: If you have listings that don’t sell during the auction period, you can use this feature to relist them up to eight times. Be careful with this. It can eat profit really quickly.
- Private Listing: Some buyers may not want everyone to see what they buy with their personal account. This checkbox lets them bid without showing who they are to the public.
Buy It Now (Fixed Price) Listings
Buy It Now Benefits | Fields Missing From Buy It Now |
List multiples of the same item with the quick listing tool | No Duration field |
Less fields to fill out | No Starting Bid field |
Volume pricing for larger buyers | No Reserve field |
Great for online retailers |
Step 9. Set Shipping Rates
- Standard Shipping
- Local Pickup Only
![good product for business plan Screenshot of eBay website](https://www.upflip.com/wp-content/uploads/2023/01/Set-shipping-rate-1.png)
eBay Standard Shipping Options
![good product for business plan Screenshot of shipping options from eBay website](https://www.upflip.com/wp-content/uploads/2023/01/Standard-shipping-options.png)
Domestic Standard Shipping on eBay
Ebay international shipping.
- Pack the product in your packaging.
- Attach the shipping label.
- Mail the package to eBay’s global shipper.
- Global shippers handle the international portion of the shipping.
- Provide free domestic shipping.
- Handle the order in a same-day or one-day time frame.
- Meet the sizing and value limitation.
![good product for business plan Screenshot of international shiping from eBay website](https://www.upflip.com/wp-content/uploads/2023/01/eBay-international-shipping.jpg)
eBay Shipping Freight
![good product for business plan Screenshot of shipping freight from eBay website](https://www.upflip.com/wp-content/uploads/2023/01/eBay-shipping-freight.png)
eBay Local Pickup Only
![good product for business plan Screenshot of local pickup from eBay website](https://www.upflip.com/wp-content/uploads/2023/01/eBay-local-pickup-only-1.png)
Step 10. Set Preferences
- Payment Types : There are four options for a payment method.
- Returns : You can choose to accept or reject returns for domestic and international customers.
- Item Location : If people want search results near them, they’ll want to be able to see where the product is located.
![good product for business plan Screenshot of setup up preferences from eBay website](https://www.upflip.com/wp-content/uploads/2023/01/Setup-up-preferences-1.png)
Automatic Payment Methods
- Credit card
- eBay gift card, voucher, or bucks
- PayPal account
- PayPal credit
- Pay upon pickup
- Spendable Funds
- Wire transfer for select eBay categories
Additional Payment Options
- Bank account transfers (bank cash transfers or bank wire transfers)
- Cash on pickup
- Money orders
![good product for business plan Screenshot of payment options from eBay website](https://www.upflip.com/wp-content/uploads/2023/01/Additional-payment-options-3.jpg)
Step 11. List it!
![good product for business plan Screenshot of manage active listings from eBay website](https://www.upflip.com/wp-content/uploads/2023/01/eBay-manage-active-listings-1.png)
How much can you sell on eBay before you pay taxes?
How to sell on ebay successfully, how much does it cost to be a seller on ebay, how to use my ebay garage.
![good product for business plan Screenshot of eBay garage from eBay website](https://www.upflip.com/wp-content/uploads/2023/01/My-eBay-garage-1.png)
How to increase sell limit on eBay?
- Get great feedback. (Free)
- Request a higher limit. (Free)
- Upgrade your plan. (Increased monthly fees)
How to sell on eBay without PayPal?
How to sell multiple items on ebay.
1. | Describe Your Item | Describe Your Item |
2. | Add Pictures. | Add Pictures. |
3. | Add Title. | Add Title. |
4. | Set The Item Category. | Set The Item Category. |
5. | Provide Additional Details. | Provide Additional Details. |
6. | Describe Condition of Each Product.in Lot | Describe Condition of Product. |
7. | Provide Description of Each Product. | Provide Description of Product. |
8. | Set Pricing. Maybe Auction or Buy It Now. Mark “Sell As A Lot.” | Set Pricing. Must Buy It Now. Set Quantity. |
9. | Set Shipping Rates. | Set Shipping Rates. |
10. | Set Preferences. | Set Preferences. |
11. | List it! | List it! |
Did We Succeed at Showing You How to Sell on eBay?
![good product for business plan good product for business plan](https://www.upflip.com/wp-content/uploads/2024/06/Turnkey-business-guide.jpg)
Turnkey Business: The Ultimate Guide (2024)
Have you ever wondered how buying a turnkey business works?
A turnkey business is one that you buy and hit the ground running right away. You’ll have everything you need from the get-go, except for maybe customers. These businesses take out a lot of the guesswork so you can start making money faster.
We’ll help you understand turnkey businesses, some of the best types, and how to buy them.
[su_note note_color="#dbeafc"]Click on any of the links below to jump straight to the section that interests you, or just continue reading.
What is a turnkey business?
Turnkey online businesses, turnkey restaurants, private-label business credit, turnkey construction projects, turnkey franchises, what does turnkey mean in real estate, find turnkey business opportunities, research the business’s financial scenario, negotiate the purchase price, submit a letter of intent, perform due diligence, fund the purchase of the existing business model, start turnkey operations.
- What turnkey business do you like? [/su_note]
![good product for business plan Man wearing glasses, a button down shirt, and a tie with a large silver key hovering in his hand](https://www.upflip.com/wp-content/uploads/2024/06/Man-with-large-key.jpg)
A turnkey business is ready to operate immediately after purchase. The term "turnkey" comes from when all businesses had physical locations and the buyer could unlock the door and start making money.
Turnkey businesses operate with a proven business model and already have the products and services to sell. This skips many of the cash flow challenges of the startup phase when you start a business from scratch. The buyer benefits from existing revenue streams and well-established relationships.
Next, we’ll talk about some of the best turnkey business opportunities.
Best Turnkey Businesses
When you’re looking to buy a turnkey business, there are numerous established business models, including:
- Turnkey online businesses
- Turnkey restaurant opportunities
- Private-label business credit
- Turnkey construction
- Turnkey franchises opportunities
- Turnkey real estate businesses
![good product for business plan Concept of a laptop with a vault-like image on the screen and a large golden skeleton key emerging from it](https://www.upflip.com/wp-content/uploads/2024/06/Laptop-with-large-key.jpg)
A turnkey online business will be comprised of the following:
- Marketing materials
- Apps and integrations
- Standard operating procedures (SOPs)
Some common online businesses for sale include turnkey dropshipping stores, turnkey eCommerce stores, and Amazon FBA selling accounts. You can find sellers that consistently build these kinds of stores, grow the revenue to $3K per month, and then sell it for up to $150K.
Turnkey business opportunities in the restaurant industry allow you to save time because you don’t have to invest in the build-out of the restaurant or develop a menu.
That doesn’t mean the established customer base will be as big as you want. Most proven business models sell for reasons like retirement or if the business model isn’t working in that location. One reason is good, while the other could mean you’re buying a money pit.
A turnkey business opportunity that focuses on private-label business credit is similar to an affiliate program , but instead of earning a commission for each customer, you’re paying a monthly fee to earn the commission.
These businesses pay to brand another company’s products as their own. The products, in this case, are business financing and credit-building services.
Construction businesses often offer turnkey projects.
Turnkey projects are contracts where the future owner makes a builder responsible for designing and constructing a house, warehouse, or other structure. All the builder is given are the budget, timeline, and needs. Then the turnkey project manager carries out:
- Engineering
- Installation of equipment
- Handoff of the building
As a business owner, these types of turnkey business opportunities may be high risk because the existing business may not have been able to complete the project. You may be able to fulfill the expectations if you can negotiate a favorable price for the established business assets.
![good product for business plan Casually dressed man working on a laptop while taking a call next to a stack of oversized wooden blocks with storefronts printed on them](https://www.upflip.com/wp-content/uploads/2024/06/Wood-blocks-with-storefronts.jpg)
A turnkey franchise is a franchise that provides everything you need to run the business. Many restaurant franchises are turnkey because all the suppliers, systems, and other necessary items to run the business are put in place for you. All you have to do is hire employees and manage the franchise.
Real estate investments can be turnkey if they do not require renovations for the new owner to start making money. Some opportunities in real estate that are turnkey businesses include:
- Property management company: Given you don’t own the buildings you are managing, you won’t have to repair buildings except if your clients’ properties need repairs.
- Turnkey properties: Apartment complexes with tenants, homes that have been remodeled, and other properties that do not need current repairs are turnkey businesses.
How to Buy a Turnkey Business
![good product for business plan Stack of cash being exchanged for a key](https://www.upflip.com/wp-content/uploads/2024/06/Cash-and-key-exchange.jpg)
The process of buying a turnkey business varies depending on the business model they are using. A financial expert can provide you with the best advice before you purchase a turnkey business.
In general, buying turnkey businesses requires you to:
- Find turnkey business opportunities.
- Research the business’s financial scenario.
- Negotiate the purchase price.
- Submit a letter of intent.
- Perform due diligence.
- Fund the purchase of the existing business model.
- Start turnkey operations.
Let’s start by discussing how to find turnkey businesses for sale.
You can find turnkey businesses for sale by searching terms like:
- Turnkey (or turn key) business for sale
- Business opportunities for sale
- Turnkey (or turn key) online business for sale
- Turnkey (or turn key) business for sale near me
You’ll want to find the right turnkey business by asking questions like:
- Is it a profitable business?
- What is the initial investment?
- Does the company have brand recognition?
- Is it an independent business or a franchise model?
- How big is the pre-existing customer base?
Check out our blog about questions to ask when buying an existing business or how to buy a franchise .
![good product for business plan One business person handing off a file folder marked "Scenario" with an upward trending graph printed on it to another](https://www.upflip.com/wp-content/uploads/2024/06/Folder-marked-Scenario.jpg)
You want to verify that the turnkey business is actually a successful business with a proven track record. Given a turnkey business can be either an independent business, a franchise, or a white-label offering, let’s discuss each separately.
Existing Business Financials
You’ll have to request the information directly from the business owner. This may pose difficulties because the financial records might not be in good order. They might also try to hide financials that would hurt valuation.
Franchise Business Financials
Franchise opportunities have more disclosure requirements. Franchise owners are required to disclose their financials in Item 19 of the Franchise Disclosure Document.
These businesses will have ongoing franchise fees you’ll need to understand. There are likely additional requirements you’ll need to meet to become a franchisee.
These turnkey businesses may not have been profitable for the previous owner, so establish why they are trying to exit an established brand with proven success.
White-Label Business Financials
Most turnkey businesses that offer white-label marketing will be ones with lots of direct sales. As a new business owner, look at the costs to begin operations, the ongoing costs and support, as well as the products you’ll be selling.
Many online turnkey businesses are in industries like software or marketing.
Next, let’s look at how to negotiate how much you’ll pay for the turnkey business.
![good product for business plan UpFlip’s How to value a business blog on a laptop](https://www.upflip.com/wp-content/uploads/2024/06/Valuing-a-biz-blog.jpg)
Turnkey businesses can be valued in many ways. Learn some of the different ways to value a business .
Independent businesses will provide you with the most negotiating power. Meanwhile, turnkey franchises might allow the current owner to negotiate the price, but they require approval. Many white-label providers will not negotiate with their customer base because the entire process is automated.
Next, you’ll want to submit a letter of intent for the turnkey operation. Your letter of intent should include:
- The Buyer: This is the person or entity buying the turnkey business.
- The Seller: This is the person or entity selling the turnkey business.
- The Business: Make sure to use the legal business name.
- Purchase Price: This is the price you will pay for the business
- Real Estate: This section will document the location, legal description, and purchase price.
- Financing Clause: This is to protect the deal if the buyer is unable to fund the purchase.
- Binding Effect: The laws binding the agreement go in this section.
- Bank Accounts: This section outlines how bank accounts should be handled when the turnkey operation is turned over.
- Formal Agreement Disclaimer: Include a clause that this is not a formal purchase agreement.
- Seller’s Conduct: This is a clause to prevent the turnkey business’s built-in customer base from being damaged until the day-to-day operations are transferred.
- Closing: These terms detail how the closing will be handled.
- Closing Costs: This details how the terms of purchasing the turnkey business work.
- Termination: This specifies when the offer expires.
- Access to Information: Include a clause requiring access to any and all information about the turnkey business.
- Return of Materials: Terms where the buyer does not keep the business’s data if the purchase isn’t completed.
- Conditions: This is a list of all conditions that should be met for the turnkey company to exchange hands. This includes the necessary equipment, marketing campaigns, ongoing support, ongoing fees, and any other requirements to maintain the proven model.
- Confidentiality: Include terms dictating what you can and cannot disclose.
- Good Faith Negotiations: This clause dictates that both parties should act in the best interest of completing the deal.
- Exclusive Opportunity: This clause prevents the current owners from trying to sell the turnkey business to other people while the agreement is in effect.
- Standstill Agreement: The current owner will not attempt to sell or change any portion of the turnkey business.
- Currency: Explain what currency the business will be bought with. Most will be USD, but there may be a chance to purchase with stock, crypto, or other forms of exchange.
- Governing Law: Define the state or country that the contract to buy a turnkey business will be governed under.
- Severability: Include a clause preventing the whole contract from expiring due to an unenforceable clause.
- Counterparts and Electronic Means: This is a clause to allow electronic signature of the document.
- Signature Lines: Of course, you need places for the buyer and seller to sign and date the transfer of ownership for the turnkey business.
You’ll want to have an experienced lawyer provide support for the creation of the letter of intent.
Due diligence is the process of establishing whether the turnkey business has everything you need to be a reasonable investment. When validating that the turnkey business is an acceptable investment, you’ll need to get all documents including:
1. Legal documents 2. Financial information 3. Physical assets 4. Real estate 5. Intellectual property 6. Employee documentation 7. Licenses and permits 8. Environmental issues
9. Taxes 10. Supplier contracts 11. Products and services 12. Customer information 13. Litigation 14. Insurance policies 15. Professionals the company works with 16. All publications the company owns
Check out Score’s due diligence checklist before becoming a new owner of any turnkey business.
![good product for business plan Smiling man in a sport coat holding and pointing to a fan of cash](https://www.upflip.com/wp-content/uploads/2024/06/Cash-representing-financing.jpg)
You’ve established you want a new business interest in a company, but turnkey businesses have to be paid for. Luckily, there are a variety of ways to get financing.
You can become your own boss by:
- Getting business loans: You can use equipment, cash flow, and inventory to help fund purchasing the business.
- Borrowing from family: Friends and family can help you fund your business purchase.
- Seller financing: Owner financing is when you buy turnkey businesses and pay the previous owner as you go. Check out our blog about how to buy businesses without money to learn more.
Once they’ve handed the keys over to the turnkey business, it’s time to take over business operations. You might want to look at how other businesses operate to grow your business .
What turnkey business do you like?
At this point, you should understand the meaning of “turnkey business,” have some ideas for a turnkey business online and in the real world, and know how to buy a turnkey business.
What turnkey businesses do you like?
![good product for business plan good product for business plan](https://www.upflip.com/wp-content/uploads/2024/02/UpFlip-candle-co-name-ideas-4.jpg)
520 Candle Company Names (for 2024)
Candle company names are one of the core ways people recognize a candle brand. That’s why you have to find the best candle business names for your candle business.
There are two main naming conventions you need to think about when you start your own candle company:
- Candle business name ideas
- Names for candles or scents
[su_note note_color="#dbeafc"] We’ll discuss both of these types of candle company names to help you find an idea that works for you. You can jump to any of the sections by clicking the links below.
50 Candle Business Name Ideas
50 candle company name ideas, 48 luxury candle business names, 50 catchy names for candle business, 46 unique candle business names, 78 names for candle businesses, 52 unique candle names, 46 funny candle company names, 50 scent name ideas, 50 scented candle names.
- What to Do After Choosing a Candle Company Name [/su_note]
![good product for business plan Rx Los Angeles owner in her warehouse pointing to a just-poured wax candle in a branded glass](https://www.upflip.com/wp-content/uploads/2024/02/Rx-Los-Angeles-candle-owner.jpg)
Create a name that sets you apart and is something you’ll want to stick with for the long haul. There are many different types of names you can go with, but your candle business name should be true to your shop and what your offering is. What do you want people to think of when they hear your name?
1. Wick-edly Scent-sational 2. Whispering Wick 3. Glow and Behold Candles 4. Moonbeam & Ember 5. Wax Poetic Candles 6. The Fragrant Alchemist 7. Bright and Bubbly Candles 8. Candlelight Sanctuary 9. Flicker of Joy Candles 10. Enchanted Aroma 11. Scent-sational Serenity Candles 12. Glow Getter Candles 13. A Scentsational Journey 14. Waxing Euphoria Candles 15. Wildflower Glow Co. 16. Flame and Fortune Candles 17. Kissed by Fragrance 18. Twinkle in Time Candles 19. The Gilded Wick 20. Gleeful Glow Candles 21. The Cozy Candle Co. 22. Waxen Whimsy Candles 23. Flame & Fortune 24. Blissful Beams Candles 25. The Luminous Muse
26. Flame Frolics Candles 27. Waxing Poetic 28. Candlelit Capers Candles 29. Scentual Escape 30. Waxen Whoopee Candles 31. Mystic Bazaar 32. Lustrous Laughs Candles 33. Whisper of Aroma 34. Soothing Smiles Candles 35. Emberglow Lights 36. Dazzling Delights Candles 37. Moonlight & Jasmine 38. Twilight Titters Candles 39. Serene Flame 40. Luminary Larks Candles 41. The Unforgettable Flame 42. Radiant Revels Candles 43. The Scentualist 44. Luminous Larks Candles 45. Candleabra Tales 46. Wick Winks Candles 47. Bliss & Bloom 48. Gleaming Guffaws Candles 49. Enchanted Fireside 50. Wick Wit
Pro Tip: Make sure your candle business name sounds appealing and memorable. You want your customers to remember where to go when they need more fabulous scents.
Short or long, your name should tell the story of what your shop offers, who you are, where you’re from, or what kind of experience customers will have when they shop with you. Online or brick and mortar, your name is the first thing they’ll see and hopefully something they’ll remember.
1. Candle Sense 2. Glistening Glow Candle Creations 3. Wax and Relax 4. Waxen Wonderlands Candle Co. 5. Candle Magic 6. Flame Fables Candles 7. Glow and Grow 8. Illuminated Illusions Co. 9. Candle Delight 10. Luminous Lullabies Candles 11. Spark and Scent 12. Wick Wonders Candle Co. 13. Wax Art
14. Glistening Gardens Candles 15. Candle Lab 16. Candlelit Canopies Candles 17. Glow Time 18. Waxen Waterfalls Candles 19. Wax and Glow 20. Lustrous Lagoons Candles 21. Candle Dream 22. Twilight Truffles Candles 23. Spark and Splendor 24. Glowing Groves Candles 25. Wax Appeal
Pro Tip: Your business name will last the length of the business, unless you decide to change your DBA (doing business as name) or update your brand entirely. Make sure you love your name. Don’t settle for “okay”—you should love it!
Luxury candle business names can bring you high-end, bougie buyers who are willing to spend more money because your shop has the “wow factor.”
Consider some of these luxurious candle business name ideas perfect for selling expensive aromatherapy candles, scented candles, or even beeswax candles.
1. Aroma Path 2. Ember & Co. 3. Glow & Co. 4. Gilded Wick Candle Co. 5. Aroma Bloom 6. Moonlight Sonata 7. Zenith Candles 8. Amethyst Flame 9. Glow Haven 10. Silk & Sillage 11. Spark & Scent 12. Emberlight Alchemy 13. Lumena Ignite 14. Velvet Wick 15. Scent Fusion 16. Moonstone Muse 17. Pheroma Memento 18. Whispering Embers 19. Flame Fest 20. Starlight Sanctuary 21. Petal Glow 22. Opulent Glow 23. Scent Sation 24. Golden Nectar
25. Luxe Light 26. Clandestine Embers 27. Flame Bright 28. Seraph's Sconce 29. Zodiac Flames 30. Damask & Dusk Candle Co. 31. Glow Makers 32. Emberlit Soiree 33. Moonstone Candles 34. Whispers of Oud 35. Celestial Scents 36. Gilded Alchemy 37. Eco Flame 38. Starlit Lace Candle Co. 39. Glow & Grow 40. Velvet & Ember 41. Pure Illuminate 42. Luminous Indigo 43. Gilded Haven 44. Seraphim's Ember 45. Luxe Luminance Candle Co. 46. Enchanted Candle Company 47. Custom Candles by Coco 48. The Candle Maker
Pro Tip: Who is your target customer? A good luxury candle business name can help you to target a higher-paying demographic. It’s more appealing to those who have the money to spend. Regardless of whether you will have an Etsy store, Shopify site, or brick-and-mortar store, you need to identify your target customer before you finalize a name.
![good product for business plan "Catchy names for candle business" search on a laptop next to a white pillar candle](https://www.upflip.com/wp-content/uploads/2024/02/Candle-biz-name-search-on-laptop.jpg)
Make your candle business name sticky…so buyers come back time and again. Using catchy phrases or sayings can really help keep your name top of mind.
1. Wick’d Wonders Candles 2. Soy Much Fun Soy Wax Candles 3. Radiant Flames 4. Waxing Poetic 5. Fabulous Flame Candle Co. 6. Flick Candles 7. Aromatic Artistry 8. The Flickering Flamingo 9. The Illuminated Co. 10. Scentsational Shenanigans 11. Soothing Scentsations 12. Litty & Witty Candles 13. The Candle Connoisseur 14. The Wacky Wickery 15. Illuminated Atelier 16. Candle Capers 17. Candle Conservatory 18. Grin & Glow Candles 19. Illuminated Gallery 20. Laughing Flames Candle Company 21. Candle Emporium Co. 22. Flame On, Funny Bone 23. Candle Artisan Co. 24. The Illuminaughty 25. Illuminated Haven
26. Scents & Sensibility 27. Heavenly Candle Co 28. Wickid Good Scents 29. Scented Studio Co. 30. Wax On, Wax Off 31. Candle Artistry Studio 32. The Melty Misfits Candle Company 33. Illuminated Studio Candles 34. Wickology 101 35. The Scented Atelier 36. Wax Flame Candy Candle 37. Candleabracadabra 38. Illuminated Boutique 39. Sniff & Giggle Candle Co. 40. Candle Emporium Studio 41. Wick It or Quit It Candle Company 42. Illuminated Suite 43. Glow-rious Meetings 44. Scented Emporium Candle Company 45. The Illuminating Co. 46. Scent-sational Humor 47. Lights All the Way Candle Co. 48. Waxing Lyrical 49. Cute Candles, Inc. 50. Love & Life Candles
Pro Tip: What’s your favorite commercial? Is it funny and catchy? It’s obviously memorable! The catchier the name, the better. You want to be remembered—just like that commercial that came to mind for you—even if a customer has lost your web address, can’t find an emailed receipt, and no longer has their candle jar.
What differentiates you from your competitors? Use those identifying factors when selecting your unique business name. You don’t want to sound like everyone else—you want your business name to be descriptive of who you are.
1. Candlelight Glow 2. Candle With Care 3. The Wick & Flame 4. Light My Fire 5. Waxing Poetic 6. Melt Your Heart 7. Sisters’ Soap & Candle Co. 8. Illuminate Creations 9. Glow and Tell Candle Company 10. Scentimental Memories 11. Candle in the Wind 12. Flaming Inspirations 13. Spark Joy Candle Company 14. The Candle Cove 15. Candle Crush 16. The Candle Lab 17. Glow Getter 18. Luminous Expressions 19. Scent From Heaven 20. The Candle Parlour 21. Candle Me Crazy 22. Flicker & Flame Candle Company 23. Ember & Muse
24. The Candle Bar 25. Flicker & Fable 26. The Aromatic Hearth 27. The Hushed Flame 28. The Candle Aisle 29. The Wax Alchemist Candle Company 30. The Candle Cottage 31. Cozy Flicker Co. 32. The Wickery 33. The Candle Conjurer 34. The Candelier 35. The Wandering Wick 36. Scented Wick 37. Flickering Folklore Candle Company 38. Whispers of Flame 39. Candlelight Concoctions 40. The Wickery Embers 41. The Wick Weaver 42. The Flickering Phoenix 43. Aromasmith & Co. 44. Emberlight Alchemy Candle Company 45. My Gentle Glow 46. Sillage Muse
Pro Tip: This is one time when you don’t want to follow the crowd. Be unique so you aren’t battling over a URL and 50 other eCommerce sites with a similar name.
![good product for business plan BLK Sunflower owner in her workshop holding a frosty black branded jar and a handful of wax flakes for candle making](https://www.upflip.com/wp-content/uploads/2024/02/BLK-Sunflower-owner.jpg)
Candle company names can be one or more words, and if you’re in doubt, add the word Candles , Company , or Shop to the end, and Bam! you have a business name!
1. Wick & Whimsy 2. Ember & Oak Co. 3. Radiant Flames 4. Luminescence Atelier 5. The Candle Collective 6. Candlemaker Scents & Pours 7. Wick & Wander Shop 8. The Candle Connoisseur 9. The Wax Emporium 10. Candle Artisan 11. The Gilded Flame Co. 12. The Illuminated Atelier 13. Moonlit Glow LLC 14. The Scented Salon 15. Whisper & Wisp Atelier 16. The Candle Artistry Co. 17. Cinder & Co. 18. The Candle Emporium Co. 19. The Flickering Muse Shop 20. Illuminated Haven Candle Co. 21. The Dancing Ember Atelier 22. The Scented Atelier 23. Nocturne Lumens Shop 24. The Candle Emporium Studio 25. The Alchemist's Candle Co. 26. The Scented Workshop 27. The Glimmering Grotto Shop 28. The Candle Conservatory StudioEmberlight 29. Apothecary Co. 30. The Scented Emporium Candle Company 31. Candlewick & Co. 32. Primitive Candle Company 33. The Flickering Lantern Emporium 34. Pure Light Candle Studios 35. Moonlit Muse Atelier 36. Fragrant Jewels Candle Company 37. The Candle Whisperer, LLC 38. Heaven Scent 39. Aurora Lumens Atelier
40. KC Candle Company 41. The Dancing Flame Emporium 42. Candleberry Studios 43. Candlewick & Whisper Shop 44. Darling Candles 45. Luminescence Alchemy Atelier 46. Enchanted Candle Atelier 47. The Glimmering Path 48. Homefront Candles House 49. Candle in the Wind Emporium 50. Berry Candles 51. Light My Fire, LLC 52. Decorative Candles 53. Scent of a Woman Atelier 54. Flaming Candle Co 55. Burn, Baby Burn Company 56. Country Candle Company 57. Rainbow Earth Gifts 58. Flame of Love Co. 59. None of Your Beeswax 60. Scents and Sensibility Atelier 61. Luxury Candles Co 62. Fire and Ice Co. 63. Scents Illuminated Candle Company 64. Scent From Heaven Atelier 65. Glorious Candles 66. Wick It Shop 67. The Candle Guy 68. Firefly Co. 69. Warwick Candles 70. Candle Magic, LLC 71. Ceremony Dreams Co. 72. Scent of the Sea Atelier 73. Fire Starter Co. 74. Candle Therapy, LLC 75. Wick and Mortar Shop 76. Mickey’s Creative Candles 77. Candleberry Candle Company 78. San Francisco Candle Making Collective
Pro Tip: Are you an LLC, S-Corp, or Sole Proprietorship? If you are an incorporation, you can include that in your name. For example, [Your Candle Business Name], LLC.
If you’d want to eat it, make it, or serve it, it’s likely a good name for a candle. Especially if it’s a dessert, drink, or fruit-scented candle.
1. Almond Bark Chocolate 2. Bergamot Delight 3. Blueberries and Whipped Cream 4. Brown Sugar Sizzle 5. Buttercream Sausage 6. Toasted Campfire 7. Caramel Coffee Cookie 8. Musky Cedarwood 9. Chamomile Snooze 10. Chocolate Chip Pancakes 11. Clementine Orange Zest 12. Clove Spice Warmth 13. Cotton Candy Fantasy 14. Cucumber Melon Splash 15. Fig and Olive 16. Frangipani Tropical Flower 17. Just Cut Suburban Lawn 18. Gardenia White Blossom 19. Ginger Lime Fizz 20. Green Tea Jasmine 21. Hyacinth Spring Breeze 22. Key Lime Pie 23. Kiwi Strawberry Smoothie 24. Fragrant Jewels, Heaven Scent 25. Lavender Lemonade Relax 26. Macaron Sweet Treat
27. Magnolia Pink Petal 28. Marshmallow Vanilla Fluff 29. Mint Chocolate Chip 30. Mistletoe Holiday Cheer 31. Nutmeg Spice Cake 32. Oatmeal Double Raisin Cookie 33. Orange Blossom Citrus + Sea Salt 34. Patchouli Earth 35. Peach Cobbler Yum 36. Peony Floral Bouquet 37. Pina Colada Vacation 38. Plum Wine Sangria 39. Popcorn Movie Night 40. Rain Fresh Clean 41. Red Velvet Cupcake 42. Salted Caramel Swirl 43. Smoky Quartz Crystal 44. Sunflower Sunny Day 45. Toasted Marshmallow Cozy 46. Toffee Nut Crunch 47. Vanilla Orchid Exotic 48. Vetiver Woody Aroma 49. Violet Purple Passion 50. Waffle Breakfast Time 51. Walnut Brownie Delish 52. The Woodland Homestead
Pro Tip: Name your candle scents something fun and unique. If you’re an online retailer, the customer will rely on your naming conventions to decide if they’ll like the smell of the candle. So, be unique and descriptive!
![good product for business plan Two lit candles on a large table next to a model cityscape](https://www.upflip.com/wp-content/uploads/2024/02/Candle-and-model-city.jpg)
Customers will appreciate your sense of humor and know they can expect good-natured customer service when you use a funny candle company name.
1. Wickety Wacky Wonders 2. Light My Fire 3. Scents So Silly, They're Snort-Worthy 4. The Aromatherapy Absurdity Co. 5. The Illuminated Improbability Shop 6. Hilarity & Hygge, LLC 7. Wick-edly Good Scents Atelier 8. The Scents of Wit 9. Sniff & Giggles Galore 10. Flame on, Funny Bone! 11. The Snicker & Sizzle Shop 12. Punny Sentiments 13. Aromas Gone Wild 14. The Wick-edly Creative Waxers 15. Flame On, Fun On! 16. The Candle Cauldron 17. Scents So Silly, They're Scandalous 18. The Illuminating Insanity Atelier 19. Scents That Make You Chuckle 20. The Giggle & Glow Glow-Up Co. 21. Punny Wick Emporium 22. Wick-edly Weird Waxes 23. Scented Silliness Galore Shop
24. Aromas of Absurdity Atelier 25. Burnt Out Candles 26. Scent-sational Candles 27. Candle-icious 28. Wax-tastic Candles 29. Flame Game 30. Candle-ry of the Odd 31. Wick-er Man Company 32. Wick-edly Good Candles 33. Waxing Philosophical 34. Waxing Lyrical Candles 35. Scentsational Silliness, LLC 36. The Humerus Fragrance Co. 37. The Light Chuckle Atelier 38. Scentsational Shenanigans Shop 39. Of Laughters and Illumination 40. You Light Me Up 41. Candle in the Sky 42. Scentsational Wickers 43. The Chuckle Wax 44. Sniff Me Good 45. The Wick-ed Atelier 46. The OG Candle Brand
Pro Tip: Humor is memorable and humor sells. Whether you’re naming your candle business or your candle scents, humor is almost always a good way to go.
Scent names can evoke tastes and smells for the buyer. Make it heavenly and delicious. Something you’d maybe want to eat, but definitely want to smell!
1. Cinnamon Swirl 2. Pumpkin Spice Latte 3. Caramel Apple 4. Cranberry Bliss 5. Peppermint Mocha 6. Gingerbread House 7. Winter Wonderland 8. Sugar Plum Fairy 9. Frosty the Snowman 10. Mistletoe Kisses 11. Candy Lane 12. Sleigh Ride 13. Fireside Chat 14. Warm and Cozy 15. Chestnuts Roasting 16. Mulled Wine 17. Spiced Cider 18. Hot Cocoa 19. Vanilla Bean 20. Lavender Fields 21. Tea Rose Garden 22. Jasmine Dreams 23. Sandalwood Serenade 24. Citrus Grove 25. Ocean Breeze
26. Rainforest Retreat 27. Mountain Air 28. Desert Oasis 29. Tropical Paradise 30. Island Escape 31. Crispy Autumn Leaves 32. Harvest Moon 33. Pumpkin Patch 34. Apple Orchard in Fall 35. Crisp Fall Air 36. Maple Butter and Syrup 37. Cedarwood Forest 38. Pine Needle Forest 39. Eucalyptus-y Mint 40. Peppermint Twist 41. Lemon Verbena 42. Grapefruit Grove 43. Cherry Blossom Farm 44. Magnolia Bloom 45. Honeysuckle Heaven 46. Wildflower Meadow 47. Butterfly Garden 48. Hummingbird Haven 49. Dragonfly Dreams 50. Ladybug Lane
Pro Tip: Most candles are scented, and scents need names to sell. Be creative and imagine what visuals and scents a person might imagine when they read your names.
![good product for business plan Rx Los Angeles owner in her warehouse pointing to two tables of empty branded jars and just-poured candles](https://www.upflip.com/wp-content/uploads/2024/02/Rx-Los-Angeles-warehouse.jpg)
Your candle labels will need to specify what scent you're selling. Think of feeling-invoking scents that will make your customers want to buy them as gifts or a treat for themselves.
1. Winter Wonderland 2. Cozy Cabin 3. Pumpkin Spiced Chai 4. Lavender Dreams 5. Appley Pear Orchard 6. Caramel Popcorn 7. Ocean Breeze 8. Decadent Chocolate Cake 9. Lemonade Stand 10. Woody Fire 11. Cotton Candy 12. Gingerbread House 13. Rose, No Thorns 14. Banana Bread 15. Tropical Vacation 16. Vanilla and Cream 17. Fresh Laundry 18. Mulled Wine 19. Birthday Cake and Sprinkles 20. Hazelnut Coffee Shop 21. Autumn Leaves with Clove 22. Strawberry Shortcake 23. Rainforest and Fern 24. Maple Syrup and Brown Sugar 25. Cucumber Melon Mint
26. Snickerdoodle Cookie 27. Cherry Blossom Spring 28. Hot Chocolate with Marshmallows 29. Sunflowers and Honey 30. Campfire and S’mores 31. Juicy Peach Cobbler 32. Soothing Jasmine Tea 33. Warm Cinnamon Roll 34. Honeycomb Summer 35. Sandalwood and Vanilla 36. Sweet Blueberry Muffin 37. Refreshing Eucalyptus and Mint 38. Apple Pie Crust 39. Luscious Lilac 40. Tropical Coconut Lime 41. Cozy Oatmeal Cookie 42. Gardenia and Jasmine 43. Cranberry Orange Spice 44. Almond Biscotti 45. Lemongrass and Basil 46. Pumpkin Pie Delight 47. Vanilla Orchid 48. Spicy Ginger Ale 49. Sugar Plum Fairy 50. Earl Grey AM
Pro Tip: Naming candles after food is always a hit because people can imagine what they will taste and smell like.
What to Do After Choosing a Candle Company Name
After you choose a candle company name, you’ll want to make sure it’s available according to the:
- Secretary of State website
- United States Patent and Trademark Office (USPTO)
- A domain name
- Social media accounts
As long as the candle company names you are considering are available across the board, you are good to register your candle business name and start your business.
What candle business name ideas appeal to you?
![good product for business plan good product for business plan](https://www.upflip.com/wp-content/cache/flying-press/gravatar-9de9f9e3fbe0.png)
nice work https://binarychemist.com/
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My Name is PRETTY NGOMANE. A south African female. Aspiring to do farming. And finding a home away from home for the differently abled persons in their daily needs.
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How to make a business plan
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Table of Contents
How to make a good business plan: step-by-step guide.
A business plan is a strategic roadmap used to navigate the challenging journey of entrepreneurship. It's the foundation upon which you build a successful business.
A well-crafted business plan can help you define your vision, clarify your goals, and identify potential problems before they arise.
But where do you start? How do you create a business plan that sets you up for success?
This article will explore the step-by-step process of creating a comprehensive business plan.
What is a business plan?
A business plan is a formal document that outlines a business's objectives, strategies, and operational procedures. It typically includes the following information about a company:
Products or services
Target market
Competitors
Marketing and sales strategies
Financial plan
Management team
A business plan serves as a roadmap for a company's success and provides a blueprint for its growth and development. It helps entrepreneurs and business owners organize their ideas, evaluate the feasibility, and identify potential challenges and opportunities.
As well as serving as a guide for business owners, a business plan can attract investors and secure funding. It demonstrates the company's understanding of the market, its ability to generate revenue and profits, and its strategy for managing risks and achieving success.
Business plan vs. business model canvas
A business plan may seem similar to a business model canvas, but each document serves a different purpose.
A business model canvas is a high-level overview that helps entrepreneurs and business owners quickly test and iterate their ideas. It is often a one-page document that briefly outlines the following:
Key partnerships
Key activities
Key propositions
Customer relationships
Customer segments
Key resources
Cost structure
Revenue streams
On the other hand, a Business Plan Template provides a more in-depth analysis of a company's strategy and operations. It is typically a lengthy document and requires significant time and effort to develop.
A business model shouldn’t replace a business plan, and vice versa. Business owners should lay the foundations and visually capture the most important information with a Business Model Canvas Template . Because this is a fast and efficient way to communicate a business idea, a business model canvas is a good starting point before developing a more comprehensive business plan.
A business plan can aim to secure funding from investors or lenders, while a business model canvas communicates a business idea to potential customers or partners.
Why is a business plan important?
A business plan is crucial for any entrepreneur or business owner wanting to increase their chances of success.
Here are some of the many benefits of having a thorough business plan.
Helps to define the business goals and objectives
A business plan encourages you to think critically about your goals and objectives. Doing so lets you clearly understand what you want to achieve and how you plan to get there.
A well-defined set of goals, objectives, and key results also provides a sense of direction and purpose, which helps keep business owners focused and motivated.
Guides decision-making
A business plan requires you to consider different scenarios and potential problems that may arise in your business. This awareness allows you to devise strategies to deal with these issues and avoid pitfalls.
With a clear plan, entrepreneurs can make informed decisions aligning with their overall business goals and objectives. This helps reduce the risk of making costly mistakes and ensures they make decisions with long-term success in mind.
Attracts investors and secures funding
Investors and lenders often require a business plan before considering investing in your business. A document that outlines the company's goals, objectives, and financial forecasts can help instill confidence in potential investors and lenders.
A well-written business plan demonstrates that you have thoroughly thought through your business idea and have a solid plan for success.
Identifies potential challenges and risks
A business plan requires entrepreneurs to consider potential challenges and risks that could impact their business. For example:
Is there enough demand for my product or service?
Will I have enough capital to start my business?
Is the market oversaturated with too many competitors?
What will happen if my marketing strategy is ineffective?
By identifying these potential challenges, entrepreneurs can develop strategies to mitigate risks and overcome challenges. This can reduce the likelihood of costly mistakes and ensure the business is well-positioned to take on any challenges.
Provides a basis for measuring success
A business plan serves as a framework for measuring success by providing clear goals and financial projections . Entrepreneurs can regularly refer to the original business plan as a benchmark to measure progress. By comparing the current business position to initial forecasts, business owners can answer questions such as:
Are we where we want to be at this point?
Did we achieve our goals?
If not, why not, and what do we need to do?
After assessing whether the business is meeting its objectives or falling short, business owners can adjust their strategies as needed.
How to make a business plan step by step
The steps below will guide you through the process of creating a business plan and what key components you need to include.
1. Create an executive summary
Start with a brief overview of your entire plan. The executive summary should cover your business plan's main points and key takeaways.
Keep your executive summary concise and clear with the Executive Summary Template . The simple design helps readers understand the crux of your business plan without reading the entire document.
2. Write your company description
Provide a detailed explanation of your company. Include information on what your company does, the mission statement, and your vision for the future.
Provide additional background information on the history of your company, the founders, and any notable achievements or milestones.
3. Conduct a market analysis
Conduct an in-depth analysis of your industry, competitors, and target market. This is best done with a SWOT analysis to identify your strengths, weaknesses, opportunities, and threats. Next, identify your target market's needs, demographics, and behaviors.
Use the Competitive Analysis Template to brainstorm answers to simple questions like:
What does the current market look like?
Who are your competitors?
What are they offering?
What will give you a competitive advantage?
Who is your target market?
What are they looking for and why?
How will your product or service satisfy a need?
These questions should give you valuable insights into the current market and where your business stands.
4. Describe your products and services
Provide detailed information about your products and services. This includes pricing information, product features, and any unique selling points.
Use the Product/Market Fit Template to explain how your products meet the needs of your target market. Describe what sets them apart from the competition.
5. Design a marketing and sales strategy
Outline how you plan to promote and sell your products. Your marketing strategy and sales strategy should include information about your:
Pricing strategy
Advertising and promotional tactics
Sales channels
The Go to Market Strategy Template is a great way to visually map how you plan to launch your product or service in a new or existing market.
6. Determine budget and financial projections
Document detailed information on your business’ finances. Describe the current financial position of the company and how you expect the finances to play out.
Some details to include in this section are:
Startup costs
Revenue projections
Profit and loss statement
Funding you have received or plan to receive
Strategy for raising funds
7. Set the organization and management structure
Define how your company is structured and who will be responsible for each aspect of the business. Use the Business Organizational Chart Template to visually map the company’s teams, roles, and hierarchy.
As well as the organization and management structure, discuss the legal structure of your business. Clarify whether your business is a corporation, partnership, sole proprietorship, or LLC.
8. Make an action plan
At this point in your business plan, you’ve described what you’re aiming for. But how are you going to get there? The Action Plan Template describes the following steps to move your business plan forward. Outline the next steps you plan to take to bring your business plan to fruition.
Types of business plans
Several types of business plans cater to different purposes and stages of a company's lifecycle. Here are some of the most common types of business plans.
Startup business plan
A startup business plan is typically an entrepreneur's first business plan. This document helps entrepreneurs articulate their business idea when starting a new business.
Not sure how to make a business plan for a startup? It’s pretty similar to a regular business plan, except the primary purpose of a startup business plan is to convince investors to provide funding for the business. A startup business plan also outlines the potential target market, product/service offering, marketing plan, and financial projections.
Strategic business plan
A strategic business plan is a long-term plan that outlines a company's overall strategy, objectives, and tactics. This type of strategic plan focuses on the big picture and helps business owners set goals and priorities and measure progress.
The primary purpose of a strategic business plan is to provide direction and guidance to the company's management team and stakeholders. The plan typically covers a period of three to five years.
Operational business plan
An operational business plan is a detailed document that outlines the day-to-day operations of a business. It focuses on the specific activities and processes required to run the business, such as:
Organizational structure
Staffing plan
Production plan
Quality control
Inventory management
Supply chain
The primary purpose of an operational business plan is to ensure that the business runs efficiently and effectively. It helps business owners manage their resources, track their performance, and identify areas for improvement.
Growth-business plan
A growth-business plan is a strategic plan that outlines how a company plans to expand its business. It helps business owners identify new market opportunities and increase revenue and profitability. The primary purpose of a growth-business plan is to provide a roadmap for the company's expansion and growth.
The 3 Horizons of Growth Template is a great tool to identify new areas of growth. This framework categorizes growth opportunities into three categories: Horizon 1 (core business), Horizon 2 (emerging business), and Horizon 3 (potential business).
One-page business plan
A one-page business plan is a condensed version of a full business plan that focuses on the most critical aspects of a business. It’s a great tool for entrepreneurs who want to quickly communicate their business idea to potential investors, partners, or employees.
A one-page business plan typically includes sections such as business concept, value proposition, revenue streams, and cost structure.
Best practices for how to make a good business plan
Here are some additional tips for creating a business plan:
Use a template
A template can help you organize your thoughts and effectively communicate your business ideas and strategies. Starting with a template can also save you time and effort when formatting your plan.
Miro’s extensive library of customizable templates includes all the necessary sections for a comprehensive business plan. With our templates, you can confidently present your business plans to stakeholders and investors.
Be practical
Avoid overestimating revenue projections or underestimating expenses. Your business plan should be grounded in practical realities like your budget, resources, and capabilities.
Be specific
Provide as much detail as possible in your business plan. A specific plan is easier to execute because it provides clear guidance on what needs to be done and how. Without specific details, your plan may be too broad or vague, making it difficult to know where to start or how to measure success.
Be thorough with your research
Conduct thorough research to fully understand the market, your competitors, and your target audience . By conducting thorough research, you can identify potential risks and challenges your business may face and develop strategies to mitigate them.
Get input from others
It can be easy to become overly focused on your vision and ideas, leading to tunnel vision and a lack of objectivity. By seeking input from others, you can identify potential opportunities you may have overlooked.
Review and revise regularly
A business plan is a living document. You should update it regularly to reflect market, industry, and business changes. Set aside time for regular reviews and revisions to ensure your plan remains relevant and effective.
Create a winning business plan to chart your path to success
Starting or growing a business can be challenging, but it doesn't have to be. Whether you're a seasoned entrepreneur or just starting, a well-written business plan can make or break your business’ success.
The purpose of a business plan is more than just to secure funding and attract investors. It also serves as a roadmap for achieving your business goals and realizing your vision. With the right mindset, tools, and strategies, you can develop a visually appealing, persuasive business plan.
Ready to make an effective business plan that works for you? Check out our library of ready-made strategy and planning templates and chart your path to success.
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How to write a business plan (with template)
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We all know that as a product manager you’re also the CEO of the product. While you own the product backlog, you’re also responsible for expanding the product and adding new features to increase value for users and the business. Whether you work in a start-up or are a PM in a large organization, creating a business plan is crucial before pitching in any new idea.
What is a business plan?
![good product for business plan How To Write A Business Plan (With Template)](https://blog.logrocket.com/wp-content/uploads/2024/03/How-to-write-a-business-plan-with-template.png)
A business plan is a comprehensive document that outlines the problem, the solution, market outreach possibilities, potential threats, a clear goal, and a measurable return on investment with a year-on-year growth strategy.
Significance of a business plan
All product organizations have started seeing the importance of a business plan before approving a new product idea. A good business plan has numerous benefits, the most fundamental being an opportunity to think through the idea before investing time and resources.
The following are the key traits of a good business plan.
Clarity of vision
Taking the time to write down an idea can bring greater clarity to your vision. It allows you to better understand the problem at hand and reveal all possible solutions. This is because writing forces you to slow down and think everything through, resulting in a more evident thought process.
Strategic guidance
When creating a business plan, including financial projections and forecasts is useful. This helps develop a strategic plan by considering marketing strategies, launch plans, development costs, and expected return on investment. However, conducting proper research and due diligence is crucial to ensure that the predictions are as accurate as possible. This process can lead to gaining more insights, taking necessary steps beforehand, and fostering collaboration.
Risk management
A business plan is crucial as it allows you to identify potential risks beforehand. As part of creating a business plan, conducting a competitor analysis, identifying your target market, performing a SWOT analysis (focusing on strengths, weaknesses, opportunities, and threats), and determining your unique selling points is essential. By analyzing these factors, you can gain valuable insights into potential risks and market trends and create an effective risk management plan to ensure success.
Operational planning
While creating a business plan, it becomes essential to forecast, plan milestones, and produce a roadmap. This involves looking into the development timeline, launch plan, and marketing strategies. By doing so, you can outline an operational plan and calculate the resources required to complete the project within a specified deadline. Measuring the rollout plan and determining the appropriate launch plan is crucial.
Measurable objectives and milestones
In addition to a roadmap and milestones, it’s essential to provide critical metrics to measure success. This will help product teams clearly understand the overall roadmap and milestones and ensure that the key results are defined to determine if the product is successful.
Components of a business plan
The business plan will look different for different products depending on the business, product area, and other factors. Still, a few common elements must be a part of each business plan.
Problem statement
Defining the problem in the right way is the most crucial thing. While defining the problem, always consider backing up the claims by data. Use surveys and user testimonies to construct the problem statement in the most relatable manner:
![good product for business plan Problem](https://blog.logrocket.com/wp-content/uploads/2024/03/Problem.png)
Solution description / mission statement
When presenting a solution, it’s important to avoid using technical jargon and instead describe it in a way that’s easy to understand for anyone, regardless of their technical background. If specific technical details need to be included, put them in an appendix for those who want to read more.
![good product for business plan good product for business plan](https://blog.logrocket.com/wp-content/uploads/2023/01/Screen-Shot-2023-01-17-at-2.48.23-PM.png)
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Creating a clear mission statement outlining what you aim to achieve with your solution is also essential. Avoid using vague language and be as specific and straightforward as possible. The more specific your goal, the better.
Market analysis
This section requires a comprehensive and detailed analysis of various aspects crucial to any product’s success in the market. The four main areas addressed are product-market fit , target customers, total market share, and unique selling proposition (USP).
Product-market fit is about identifying the gap that exists in the market and how your product can bridge that gap.
Defining target customers includes understanding their demographics, behavior, preferences, and needs. It’s also essential to identify any secondary customer base that can be targeted, which can help expand the product’s reach and appeal:
![good product for business plan Target Customer Segments](https://blog.logrocket.com/wp-content/uploads/2024/03/Target-Customer-Segments.png)
Total market share, or the total available market, refers to the overall revenue opportunity available for a product or service if 100 percent market share is achieved. It gives a clear idea of the scope of expansion for the product after launch.
Unique selling proposition (USP) is a critical aspect of any product’s success that defines why customers should choose your product over others. It’s what sets your product apart from the competition and makes it stand out. Identifying and promoting your USP can help to differentiate your product and create a sense of confidence among sponsors.
Competitor analysis
When analyzing competitors, people tend only to consider direct competitors. However, a great product stands out by taking customers away from even indirect competitors. For example, TikTok and Reels are taking up viewership time that Netflix and other streaming services previously held. Therefore, Netflix’s competitors are not limited to other streaming services but include other platforms providing quick and engaging content:
![good product for business plan Competitive Landscape](https://blog.logrocket.com/wp-content/uploads/2024/03/Competitive-Landscape.png)
Projection and forecast
Creating a comprehensive and effective business plan, including a detailed projection of operational costs and a sales and revenue generation forecast is crucial. You can enhance the plan by providing a summarized version of the roadmap and revenue plan and giving sponsors a quick overview of the expected development time, launch dates, and other essential details. Doing so can ensure that your business plan is constructive and comprehensive, in turn laying out a clear path to success.
This is a section of the business plan where you can finally reveal your expectations towards the sponsor or the investors. You have established a business model and the effect of your product. Now, it’s time to be clear and specific about the investment required to reach the goal, including the expected time frame.
The aim is to clearly outline the expected returns so that any potential sponsor or investor can decide whether the opportunity aligns with their goals. This is a mutually beneficial partnership; you can establish a foundation for a good relationship with transparency.
Business plan template
Here’s a one-pager template for a business plan that suits most products:
![good product for business plan Business Plan Template](https://blog.logrocket.com/wp-content/uploads/2024/03/business-plan-template.png)
Here you can find the full PPT template for the business plan, including all the components.
Final thoughts
A business plan is a crucial document that outlines the entire product lifecycle from inception to launch. It aims to align stakeholders, minimize uncertainties, and increase the likelihood of product success in the market. Effective business plans are those that demonstrate a compelling opportunity backed by thorough research and a clear strategy for execution and growth.
These templates can make your next pitch easier!
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One Reply to "How to write a business plan (with template)"
The article provides a good starting point for anyone who is looking to write a business plan. It covers the essential components of a business plan and offers some helpful tips on how to write a clear and concise plan.
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How to Write a Business Plan: Beginner’s Guide (& Templates)
![good product for business plan How to Write a Business Plan: Beginner’s Guide (& Templates)](https://visme.co/blog/wp-content/uploads/2021/09/business-plan-header.png)
Written by: Chloe West
![good product for business plan An illustration showing a woman standing in front of a folder containing her business plan.](https://visme.co/blog/wp-content/uploads/2021/09/business-plan-header.png)
Thinking about starting a business? One of the first steps you’ll need to take is to write a business plan. A business plan can help guide you through your financial planning, marketing strategy, unique selling point and more.
Making sure you start your new business off on the right foot is key, and we’re here to help. We’ve put together this guide to help you write your first business plan. Or, you can skip the guide and dive right into a business plan template .
Ready to get started?
Here’s a short selection of 8 easy-to-edit business plan templates you can edit, share and download with Visme. View more templates below:
![good product for business plan good product for business plan](https://visme.co/blog/wp-content/uploads/2021/09/real-estate-business-plan-template.jpg)
8-Step Process for Writing a Business Plan
What is a business plan, why is a business plan important, step #1: write your executive summary, step #2: put together your company description, step #3: conduct your market analysis, step #4: research your competition, step #5: outline your products or services, step #6: summarize your financial plan, step #7: determine your marketing strategy, step #8: showcase your organizational chart, 14 business plan templates to help you get started.
A business plan is a document that helps potential new business owners flesh out their business idea and put together a bird’s eye view of their business. Writing a business plan is an essential step in any startup’s ideation process.
Business plans help determine demographics, market analysis, competitive analysis, financial projections, new products or services, and so much more.
Each of these bits of information are important to have on hand when you’re trying to start a business or pitching investors for funds.
Here’s an example of a business plan that you can customize to incorporate your own business information.
![good product for business plan A business plan template available to customize with your own information in Visme.](https://visme.co/blog/wp-content/uploads/2021/09/business-plan-template.jpg)
We’re going to walk you through some of the most important parts of your business plan as well as how to write your own business plan in 8 easy steps.
If you’re in the beginning stages of starting a business , you might be wondering if it’s really worth your time to write out your business plan.
We’re here to tell you that it is.
A business plan is important for a number of reasons, but mostly because it helps to set you up for success right from the start.
Here are four reasons to prove to you why you need to start your business off on the right foot with a plan.
Reason #1: Set Realistic Goals and Milestones
Putting together a business plan helps you to set your objectives for growth and make realistic goals while you begin your business.
By laying out each of the steps you need to take in order to build a successful business, you’re able to be more reasonable about what your timeline is for achieving everything as well as what your financial projections are.
The best way to set goals is using the SMART goals guidelines, outlined below.
![good product for business plan An infographic on creating smart goals.](https://visme.co/blog/wp-content/uploads/2021/02/4-1.jpg)
Reason #2: Grow Your Business Faster
Having a business plan helps you be more organized and strategic, improving the overall performance of your business as you start out. In fact, one study found that businesses with a plan grow 30% faster than businesses that don’t.
Doesn’t that sound reason enough alone to start out your business venture with a solidified plan? We thought so too, but we’ve still got two more reasons.
Reason #3: Minimize Risk
Starting a new business is uncharted territory. However, when you start with a roadmap for your journey, it makes it easier to see success and minimize the risks that come with startups.
Minimize risk and maximize profitability by documenting the most important parts of your business planning.
Reason #4: Secure Funding
And finally, our last reason that business plans are so important is that if you plan to pitch investors for funding for your new venture, they’re almost always going to want to see a detailed business plan before deciding whether or not to invest.
You can easily create your business plan and investor pitch deck right here with Visme. Just sign up for a free account below to get started.
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![good product for business plan good product for business plan](https://visme.co/blog/wp-content/themes/blog/img/shortcodes/executive-1.png)
The executive summary is a brief overview of your entire business plan, giving anyone who reads through your document a quick understanding of what they’re going to learn about your business idea.
However, you need to remember that some of the people who are going to read your business plan don’t want to or have time to read the entire thing. So your executive summary needs to incorporate all of the most important aspects of your plan.
Here’s an example of an executive summary from a business plan template you can customize and turn into your own.
![good product for business plan An executive summary page from a business plan template.](https://visme.co/blog/wp-content/uploads/2021/09/executive-summary-1.jpg)
Your executive summary should include:
- Key objective(s)
- Market research
- Competitor information
- Products/services
- Value proposition
- Overview of your financial plan
- How you’re going to actually start your business
One thing to note is that you should actually write your executive summary after the rest of your business plan so that you can properly summarize everything you’ve already created.
So at this point, simply leave a page blank for your executive summary so you can come back to it at the end of your business plan.
![good product for business plan An executive summary section of a business plan.](https://visme.co/blog/wp-content/uploads/2021/09/executive-summary.jpg)
The next step is to write out a full description of your business and its core offerings. This section of your business plan should include your mission statement and objectives, along with your company history or overview.
In this section, you may also briefly describe your business formation details from a legal perspective.
Mission Statement
Don’t spend too much time trying to craft this. Your mission statement is a simple “why” you started this business. What are you trying to achieve? Or what does your business solve?
This can be anything from one single quote or a paragraph, but it doesn’t need to be much longer than that. In fact, this could be very similar to your value proposition.
![good product for business plan A mission statement page from a business plan template.](https://visme.co/blog/wp-content/uploads/2021/09/mission-statement.jpg)
What are your goals? What do you plan to achieve in the first 90 days or one year of your business? What kind of impact do you hope to make on the market?
These are all good points to include in your objectives section so anyone reading your business plan knows upfront what you hope to achieve.
History or Overview
If you’re not launching a brand new business or if you’ve previously worked on another iteration of this business, let potential investors know the history of your company.
If not, simply provide an overview of your business, sharing what it does or what it will do.
![good product for business plan A business overview page from a business plan template.](https://visme.co/blog/wp-content/uploads/2021/09/business-overview.jpg)
Your third step is to conduct a market analysis so you know how your business will fit into its target market. This page in your business plan is simply meant to summarize your findings. Most of your time should be spent actually doing the research.
Your market analysis needs to look at things like:
- Market size, and if it’s grown in recent years or shrinking
- The segment of the market you plan to target
- Demographics and behavior of your target audience
- The demand for your product or service
- Your competitive advantage or differentiation strategy
- The average price of your product or service
Put together a summary of your market analysis and industry research in a 1-2 page format, like we see below.
![good product for business plan A market analysis page in a business plan template.](https://visme.co/blog/wp-content/uploads/2021/09/market-analysis.jpg)
Your next step is to conduct a competitive analysis. While you likely touched on this briefly during your market analysis, now is the time to do a deep dive so that you have a good grasp on what your competitors are doing and how they are generating customers.
Start by creating a profile of all your existing competitors, or at the very least, your closest competitors – the ones who are offering very similar products or services to you, or are in a similar vicinity (if you’re opening a brick and mortar store).
Focus on their strengths and what they’re doing really well so that you can emulate their best qualities in your own way. Then, look at their weaknesses and what your business can do better.
Take note of their current marketing strategy, including the outlets you see a presence, whether it’s on social media, you hear a radio ad, you see a TV ad, etc. You won’t always find all of their marketing channels, but see what you can find online and on their website.
![good product for business plan A competitive analysis page in a business plan template.](https://visme.co/blog/wp-content/uploads/2021/09/competitive-analysis.jpg)
After this, take a minute to identify potential competitors based on markets you might try out in the future, products or services you plan to add to your offerings, and more.
Then put together a page or two in your business plan that highlights your competitive advantage and how you’ll be successful breaking into the market.
Step five is to dedicate a page to the products or services that your business plans to offer.
Put together a quick list and explanation of what each of the initial product or service offerings will be, but steer clear of industry jargon or buzzwords. This should be written in plain language so anyone reading has a full understanding of what your business will do.
![good product for business plan A products and services page in a business plan template.](https://visme.co/blog/wp-content/uploads/2021/09/products-and-services-page-scaled.jpg)
You can have a simple list like we see in the sample page above, or you can dive a little deeper. Depending on your type of business, it might be a good idea to provide additional information about what each product or service entails.
The next step is to work on the financial data of your new business. What will your overhead be? How will your business make money? What are your estimated expenses and profits over the first few months to a year? The expenses should cover all the spending whether they are recurring costs or just one-time LLC filing fees .
There is so much that goes into your financial plan for a new business, so this is going to take some time to compile. Especially because this section of your business plan helps potential cofounders or investors understand if the idea is even viable.
![good product for business plan A financial analysis page from a business plan template.](https://visme.co/blog/wp-content/uploads/2021/09/financial-analysis.jpg)
Your financial plan should include at least five major sections:
- Sales Forecast: The first thing you want to include is a forecast or financial projection of how much you think your business can sell over the next year or so. Break this down into the different products, services or facets of your business.
- Balance Sheet: This section is essentially a statement of your company’s financial position. It includes existing assets, liabilities and equity to demonstrate the company’s overall financial health.
- Income Statement: Also known as a profit and loss statement (P&L), this covers your projected expenses and revenue, showcasing whether your business will be profitable or not.
- Operating Budget: A detailed outline of your business’s income and expenses. This should showcase that your business is bringing in more than it’s spending.
- Cash Flow Statements: This tracks how much cash your business has at any given point, regardless of whether customers or clients have paid their bills or have 30-60+ days to do so.
While these are the most common financial statements, you may discover that there are other sections that you want to include or that lenders may want to see from you.
You can automate the process of looking through your documents with an OCR API , which will collect the data from all your financial statements and invoices.
The next step is coming up with a successful marketing plan so that you can actually get the word out about your business.
Throughout your business plan, you’ve already researched your competitors and your target market, both of which are major components of a good marketing strategy. You need to know who you’re marketing to, and you want to do it better than your competition.
![good product for business plan A marketing plan page from a business plan template.](https://visme.co/blog/wp-content/uploads/2021/09/marketing-plan.jpg)
On this page or throughout this section of your business plan, you need to focus on your chosen marketing channels and the types of marketing content you plan to create.
Start by taking a look at the channels that your competitors are on and make sure you have a good understanding of the demographics of each channel as well. You don’t want to waste time on a marketing channel that your target audience doesn’t use.
Then, create a list of each of your planned marketing avenues. It might look something like:
- Social media ( Facebook, Instagram, Pinterest)
- Email newsletter
- Digital ads
Depending on the type of business you’re starting, this list could change quite a bit — and that’s okay. There is no one-size-fits-all marketing strategy, and you need to find the one that brings in the highest number of potential customers.
Your last section will be all about your leadership and management team members. Showcasing that you have a solid team right from the start can make potential investors feel better about funding your venture.
You can easily put together an organizational chart like the one below, with the founder/CEO at the top and each of your team leaders underneath alongside the department they’re in charge of.
![good product for business plan An organizational chart template available in Visme.](https://visme.co/blog/wp-content/uploads/2021/09/organizational-chart.jpg)
Simply add an organizational chart like this as a page into your overall business plan and make sure it matches the rest of your design to create a cohesive document.
If you want to create a good business plan that sets your new business up for success and attracts new investors, it’s a good idea to start with a template.
We’ve got 14 options below from a variety of different industries for you to choose from. You can customize every aspect of each template to fit your business branding and design preferences.
Template #1: Photography Business Plan Template
![good product for business plan A photography business plan template available in Visme.](https://visme.co/blog/wp-content/uploads/2021/09/photography-business-plan-template.jpg)
This feminine and minimalistic business plan template is perfect for getting started with any kind of creative business. Utilize this template to help outline the step-by-step process of getting your new business idea up and running.
Template #2: Real Estate Business Plan Template
![good product for business plan A real estate business plan template available in Visme.](https://visme.co/blog/wp-content/uploads/2021/09/real-estate-business-plan-template.jpg)
Looking for a more modern business plan design? This template is perfect for plainly laying out each of your business plans in an easy-to-understand format. Adjust the red accents with your business’s colors to personalize this template.
Template #3: Nonprofit Business Plan Template
![good product for business plan A nonprofit business plan template available in Visme.](https://visme.co/blog/wp-content/uploads/2021/09/nonprofit-business-plan-template.jpg)
Creating a business and marketing plan for your nonprofit is still an essential step when you’re just starting out. You need to get the word out to increase donations and awareness for your cause.
![](http://omraadeinfo.online/777/templates/cheerup1/res/banner1.gif)
Template #4: Restaurant Business Plan Template
![good product for business plan A restaurant business plan template available in Visme.](https://visme.co/blog/wp-content/uploads/2021/09/restaurant-business-plan-template.jpg)
If your business plan needs to rely heavily on showcasing photos of your products (like food), this template is perfect for you. Get potential investors salivating at the sight of your business plan, and they’re sure to provide the capital you need.
Template #5: Fashion Business Plan Template
![good product for business plan A fashion business plan template available to customize in Visme.](https://visme.co/blog/wp-content/uploads/2021/09/fashion-business-plan-template.jpg)
Serifs are in. Utilize this template with stunning serif as all the headers to create a contemporary and trendy business plan design that fits your business. Adjust the colors to match your brand and easily input your own content.
Template #6: Daycare Business Plan Template
![good product for business plan A daycare business plan template available in Visme.](https://visme.co/blog/wp-content/uploads/2021/09/daycare-business-plan.jpg)
Creating a more kid-friendly or playful business? This business plan template has bold colors and design elements that will perfectly represent your business and its mission.
Use the pages you need, and remove any that you don’t. You can also duplicate pages and move the elements around to add even more content to your business plan.
Template #7: Consulting Business Plan Template
![good product for business plan A consulting business plan template available in Visme.](https://visme.co/blog/wp-content/uploads/2021/09/consulting-business-plan-template.jpg)
This classic business plan template is perfect for a consulting business that wants to use a stunning visual design to talk about its services.
Template #8: Coffee Shop Business Plan Template
![good product for business plan A coffee shop business plan template available in Visme.](https://visme.co/blog/wp-content/uploads/2021/09/coffee-shop-business-plan-template.jpg)
Customize this coffee shop business plan template to match your own business idea. Adjust the colors to fit your brand or industry, replace photos with your own photography or stock photos that represent your business, and insert your own logo, fonts and colors throughout.
Template #9: SaaS Business Plan Template
![good product for business plan A SaaS business plan template available in Visme.](https://visme.co/blog/wp-content/uploads/2021/09/saas-business-plan-template.jpg)
A SaaS or service-based company also needs a solid business plan that lays out its financials, list of services, target market and more. This template is the perfect starting point.
Template #10: Small Business Plan Template
![good product for business plan A small business plan template available in Visme.](https://visme.co/blog/wp-content/uploads/2021/09/small-business-plan-template.jpg)
Every startup or small business needs to start out with a strong business plan in order to start off on the right foot and set yourself up for success. This template is an excellent starting point for any small business.
Template #11: Ecommerce Business Plan Template
![good product for business plan An ecommerce business plan template available in Visme.](https://visme.co/blog/wp-content/uploads/2021/09/ecommerce-business-plan-template.jpg)
An ecommerce business plan is ideal for planning out your pricing strategy of all of your online products, as well as the site you plan to use for setting up your store, whether WordPress, Shopify, Wix or something else.
Template #12: Startup Business Plan Template
![good product for business plan A startup business plan template available in Visme.](https://visme.co/blog/wp-content/uploads/2021/09/startup-business-plan-template.jpg)
Customize this template and make it your own! Edit and Download
This is another generic business plan template for any type of startup to customize. Switch out the content, fonts and colors to match your startup branding and increase brand equity.
Template #13: One-Page Business Plan Template
![good product for business plan A single page business plan template available in Visme.](https://visme.co/blog/wp-content/uploads/2021/09/one-page-business-plan-template.jpg)
Want just a quick business plan to get your idea going before you bite the bullet and map out your entire plan? This one-page template is perfect for those just starting to flesh out a new business idea.
Template #14: Salon Business Plan Template
![good product for business plan A salon business plan template available in Visme.](https://visme.co/blog/wp-content/uploads/2021/09/salon-business-plan-template.jpg)
This salon business plan template is easy on the design and utilizes a light color scheme to put more focus on the actual content. You can use the design as is or keep it as a basis for your own design elements.
Create Your Own Business Plan Today
Ready to write your business plan? Once you’ve created all of the most important sections, get started with a business plan template to really wow your investors and organize your startup plan.
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About the Author
Chloe West is the content marketing manager at Visme. Her experience in digital marketing includes everything from social media, blogging, email marketing to graphic design, strategy creation and implementation, and more. During her spare time, she enjoys exploring her home city of Charleston with her son.
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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.
![good product for business plan good product for business plan](https://www.investopedia.com/thmb/Q919UgFxwYXjgrqoFhjc5V7cFqE=/90x200/filters:no_upscale():max_bytes(150000):strip_icc():format(webp)/adam_hayes-5bfc262a46e0fb005118b414.jpg)
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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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How To Write a Business Plan
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Starting a business is a wild ride, and a solid business plan can be the key to keeping you on track. A business plan is essentially a roadmap for your business — outlining your goals, strategies, market analysis and financial projections. Not only will it guide your decision-making, a business plan can help you secure funding with a loan or from investors .
Writing a business plan can seem like a huge task, but taking it one step at a time can break the plan down into manageable milestones. Here is our step-by-step guide on how to write a business plan.
Table of contents
- Write your executive summary
- Do your market research homework
- Set your business goals and objectives
- Plan your business strategy
- Describe your product or service
- Crunch the numbers
- Finalize your business plan
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Step 1: Write your executive summary
Though this will be the first page of your business plan , we recommend you actually write the executive summary last. That’s because an executive summary highlights what’s to come in the business plan but in a more condensed fashion.
An executive summary gives stakeholders who are reading your business plan the key points quickly without having to comb through pages and pages. Be sure to cover each successive point in a concise manner, and include as much data as necessary to support your claims.
You’ll cover other things too, but answer these basic questions in your executive summary:
- Idea: What’s your business concept? What problem does your business solve? What are your business goals?
- Product: What’s your product/service and how is it different?
- Market: Who’s your audience? How will you reach customers?
- Finance: How much will your idea cost? And if you’re seeking funding, how much money do you need? How much do you expect to earn? If you’ve already started, where is your revenue at now?
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Step 2: Do your market research homework
The next step in writing a business plan is to conduct market research . This involves gathering information about your target market (or customer persona), your competition, and the industry as a whole. You can use a variety of research methods such as surveys, focus groups, and online research to gather this information. Your method may be formal or more casual, just make sure that you’re getting good data back.
This research will help you to understand the needs of your target market and the potential demand for your product or service—essential aspects of starting and growing a successful business.
Step 3: Set your business goals and objectives
Once you’ve completed your market research, you can begin to define your business goals and objectives. What is the problem you want to solve? What’s your vision for the future? Where do you want to be in a year from now?
Use this step to decide what you want to achieve with your business, both in the short and long term. Try to set SMART goals—specific, measurable, achievable, relevant, and time-bound benchmarks—that will help you to stay focused and motivated as you build your business.
Step 4: Plan your business strategy
Your business strategy is how you plan to reach your goals and objectives. This includes details on positioning your product or service, marketing and sales strategies, operational plans, and the organizational structure of your small business.
Make sure to include key roles and responsibilities for each team member if you’re in a business entity with multiple people.
Step 5: Describe your product or service
In this section, get into the nitty-gritty of your product or service. Go into depth regarding the features, benefits, target market, and any patents or proprietary tech you have. Make sure to paint a clear picture of what sets your product apart from the competition—and don’t forget to highlight any customer benefits.
Step 6: Crunch the numbers
Financial analysis is an essential part of your business plan. If you’re already in business that includes your profit and loss statement , cash flow statement and balance sheet .
These financial projections will give investors and lenders an understanding of the financial health of your business and the potential return on investment.
You may want to work with a financial professional to ensure your financial projections are realistic and accurate.
Step 7: Finalize your business plan
Once you’ve completed everything, it's time to finalize your business plan. This involves reviewing and editing your plan to ensure that it is clear, concise, and easy to understand.
You should also have someone else review your plan to get a fresh perspective and identify any areas that may need improvement. You could even work with a free SCORE mentor on your business plan or use a SCORE business plan template for more detailed guidance.
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The takeaway
Writing a business plan is an essential process for any forward-thinking entrepreneur or business owner. A business plan requires a lot of up-front research, planning, and attention to detail, but it’s worthwhile. Creating a comprehensive business plan can help you achieve your business goals and secure the funding you need.
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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.
![good product for business plan Executive Summary of the Business Plan](https://www.founderjar.com/wp-content/uploads/2022/10/Executive-Summary-of-the-Business-Plan.jpeg)
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.
![good product for business plan Components of Market Analysis](https://www.founderjar.com/wp-content/uploads/2022/10/Components-of-Market-Analysis.jpeg)
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.
![good product for business plan Marketing Strategy vs Marketing Plan](https://www.founderjar.com/wp-content/uploads/2022/10/Marketing-Strategy-vs-Marketing-Plan.jpeg)
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.
![good product for business plan Sales Strategy](https://www.founderjar.com/wp-content/uploads/2022/10/Sales-Strategy.jpeg)
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.
![good product for business plan Competitive Analysis Framework](https://www.founderjar.com/wp-content/uploads/2022/10/Competitive-Analysis-Framework.jpeg)
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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Martin luenendonk.
Martin loves entrepreneurship and has helped dozens of entrepreneurs by validating the business idea, finding scalable customer acquisition channels, and building a data-driven organization. During his time working in investment banking, tech startups, and industry-leading companies he gained extensive knowledge in using different software tools to optimize business processes.
This insights and his love for researching SaaS products enables him to provide in-depth, fact-based software reviews to enable software buyers make better decisions.
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How to Write the Perfect Business Plan: A Comprehensive Guide
Thinking of starting a business here's the best step-by-step template for writing the perfect business plan when creating your startup..
![good product for business plan How to Write the Perfect Business Plan: A Comprehensive Guide](https://images.inc.com/uploaded_files/image/1920x1080/shutterstock_1023246931_364607.jpg)
Maybe you think you don't need a step-by-step guide to writing a great business plan . Maybe you think you don't need a template for writing a business plan. After all, some entrepreneurs succeed without writing a business plan. With great timing, solid business skills, entrepreneurial drive, and a little luck , some founders build thriving businesses without creating even an informal business plan .
But the odds are greater that those entrepreneurs will fail.
Does a business plan make startup success inevitable? Absolutely not. But great planning often means the difference between success and failure. Where your entrepreneurial dreams are concerned, you should do everything possible to set the stage for success.
And that's why a great business plan is one that helps you succeed .
The following is a comprehensive guide to creating a great business plan. We'll start with an overview of key concepts. Then we'll look at each section of a typical business plan:
Executive Summary
Overview and objectives, products and services, market opportunities, sales and marketing.
- Competitive Analysis
Management Team
Financial analysis.
So first let's gain a little perspective on why you need a business plan.
Key Concepts
Many business plans are fantasies. That's because many aspiring entrepreneurs see a business plan as simply a tool--filled with strategies and projections and hyperbole--that will convince lenders or investors the business makes sense.
That's a huge mistake.
First and foremost, your business plan should convince you that your idea makes sense--because your time, your money, and your effort are on the line.
So a solid business plan should be a blueprint for a successful business . It should flesh out strategic plans, develop marketing and sales plans, create the foundation for smooth operations, and maybe--just maybe--persuade a lender or investor to jump on board.
For many entrepreneurs, developing a business plan is the first step in the process of deciding whether to actually start a business. Determining if an idea fails on paper can help a prospective founder avoid wasting time and money on a business with no realistic hope of success.
So, at a minimum, your plan should:
- Be as objective and logical as possible. What may have seemed like a good idea for a business can, after some thought and analysis, prove not viable because of heavy competition, insufficient funding, or a nonexistent market. (Sometimes even the best ideas are simply ahead of their time.)
- Serve as a guide to the business's operations for the first months and sometimes years, creating a blueprint for company leaders to follow.
- Communicate the company's purpose and vision, describe management responsibilities, detail personnel requirements, provide an overview of marketing plans, and evaluate current and future competition in the marketplace.
- Create the foundation of a financing proposal for investors and lenders to use to evaluate the company.
A good business plan delves into each of the above categories, but it should also accomplish other objectives. Most of all, a good business plan is convincing . It proves a case. It provides concrete, factual evidence showing your idea for a business is in fact sound and reasonable and has every chance of success.
Who must your business plan convince?
First and foremost, your business plan should convince you that your idea for a business is not just a dream but can be a viable reality. Entrepreneurs are by nature confident, positive, can-do people. After you objectively evaluate your capital needs, products or services, competition, marketing plans, and potential to make a profit, you'll have a much better grasp on your chances for success.
And if you're not convinced, fine: Take a step back and refine your ideas and your plans.
Who can your business plan convince?
1. Potential sources of financing. If you need seed money from a bank or friends and relatives, your business plan can help you make a great case. Financial statements can show where you have been. Financial projections describe where you plan to go.
Your business plan shows how you will get there. Lending naturally involves risk, and a great business plan can help lenders understand and quantity that risk, increasing your chances for approval.
2. Potential partners and investors. Where friends and family are concerned, sharing your business plan may not be necessary (although it certainly could help).
Other investors--including angel investors or venture capitalists--generally require a business plan in order to evaluate your business.
3. Skilled employees . When you need to attract talent, you need something to show prospective employees since you're still in the startup phase. Early on, your business is more of an idea than a reality, so your business plan can help prospective employees understand your goals--and, more important, their place in helping you achieve those goals.
4. Potential joint ventures. Joint ventures are like partnerships between two companies. A joint venture is a formal agreement to share the work--and share the revenue and profit. As a new company, you will likely be an unknown quantity in your market. Setting up a joint venture with an established partner could make all the difference in getting your business off the ground.
But above all, your business plan should convince you that it makes sense to move forward.
As you map out your plan, you may discover issues or challenges you had not anticipated.
Maybe the market isn't as large as you thought. Maybe, after evaluating the competition, you realize your plan to be the low-cost provider isn't feasible since the profit margins will be too low to cover your costs.
Or you might realize the fundamental idea for your business is sound, but how you implement that idea should change. Maybe establishing a storefront for your operation isn't as cost-effective as taking your products directly to customers--not only will your operating costs be lower, but you can charge a premium since you provide additional customer convenience.
Think of it this way. Successful businesses do not remain static. They learn from mistakes, and adapt and react to changes: changes in the economy, the marketplace, their customers, their products and services, etc. Successful businesses identify opportunities and challenges and react accordingly.
Creating a business plan lets you spot opportunities and challenges without risk. Use your plan to dip your toe in the business water. It's the perfect way to review and revise your ideas and concepts before you ever spend a penny.
Many people see writing a business plan as a "necessary evil" required to attract financing or investors. Instead, see your plan as a no-cost way to explore the viability of your potential business and avoid costly mistakes.
Now let's look at the first section of your business plan: The Executive Summary.
The Executive Summary is a brief outline of the company's purpose and goals. While it can be tough to fit on one or two pages, a good Summary includes:
- A brief description of products and services
- A summary of objectives
- A solid description of the market
- A high-level justification for viability (including a quick look at your competition and your competitive advantage)
- A snapshot of growth potential
- An overview of funding requirements
I know that seems like a lot, and that's why it's so important you get it right. The Executive Summary is often the make-or-break section of your business plan.
A great business solves customer problems. If your Summary cannot clearly describe, in one or two pages, how your business will solve a particular problem and make a profit, then it's very possible the opportunity does not exist--or your plan to take advantage of a genuine opportunity is not well developed.
So think of it as a snapshot of your business plan. Don't try to "hype" your business--focus on helping a busy reader get a great feel for what you plan to do, how you plan to do it, and how you will succeed.
Since a business plan should above all help you start and grow your business, your Executive Summary should first and foremost help you do the following.
1. Refine and tighten your concept.
Think of it as a written elevator pitch (with more detail, of course). Your Summary describes the highlights of your plan, includes only the most critical points, and leaves out less important issues and factors.
As you develop your Summary, you will naturally focus on the issues that contribute most to potential success. If your concept is too fuzzy, too broad, or too complicated, go back and start again. Most great businesses can be described in several sentences, not several pages.
2. Determine your priorities.
Your business plan walks the reader through your plan. What ranks high in terms of importance? Product development? Research? Acquiring the right location? Creating strategic partnerships?
Your Summary can serve as a guide to writing the rest of your plan.
3. Make the rest of the process easy.
Once your Summary is complete, you can use it as an outline for the rest of your plan. Simply flesh out the highlights with more detail.
Then work to accomplish your secondary objective by focusing on your readers. Even though you may be creating a business plan solely for your own purposes, at some point you may decide to seek financing or to bring on other investors, so make sure your Summary meets their needs as well. Work hard to set the stage for the rest of the plan. Let your excitement for your idea and your business shine through.
In short, make readers want to turn the page and keep reading. Just make sure your sizzle meets your steak by providing clear, factual descriptions.
How? The following is how an Executive Summary for a bicycle rental store might read.
Introduction
Blue Mountain Cycle Rentals will offer road and mountain bike rentals in a strategic location directly adjacent to an entrance to the George Washington National Forest. Our primary strategy is to develop Blue Mountain Cycle Rentals as the most convenient and cost-effective rental alternative for the thousands of visitors who flock to the area each year.
Once underway, we will expand our scope and take advantage of high-margin new equipment sales and leverage our existing labor force to sell and service those products. Within three years we intend to create the area's premier destination for cycling enthusiasts.
Company and Management
Blue Mountain Cycle Rentals will be located at 321 Mountain Drive, a location providing extremely high visibility as well as direct entry and exit from a primary national park access road. The owner of the company, Marty Cycle, has over 20 years experience in the bicycle business, having served as a product manager for Acme Cycles as well as the general manager of Epic Cycling.
Because of his extensive industry contacts, initial equipment inventory will be purchased at significant discounts from OEM suppliers as well by sourcing excess inventory from shops around the country.
Because of the somewhat seasonal nature of the business, part-time employees will be hired to handle spikes in demand. Those employees will be attracted through competitive wages as well as discounts products and services.
460,000 people visited the George Washington National Forest during the last 12 months. While the outdoor tourism industry as a whole is flat, the park expects its number of visitors to grow over the next few years.
- The economic outlook indicates fewer VA, WV, NC, and MD cycling enthusiasts will travel outside the region
- The park has added a camping and lodging facilities that should attract an increased number of visitors
- The park has opened up additional areas for trail exploration and construction, ensuring a greater number of single-track options and therefore a greater number of visitors
The market potential inherent in those visitors is substantial. According to third-party research data, approximately 30 percent of all cyclists would rather rent than transport their own bicycles, especially those who are visiting the area for reasons other than cycling.
Competitive Advantages
The cycling shops located in Harrisonburg, VA, are direct and established competitors. Our two primary competitive advantages will be location and lower costs.
Our location is also a key disadvantage where non-park rentals are concerned. We will overcome that issue by establishing a satellite location in Harrisonburg for enthusiasts who wish to rent bicycles to use in town or on other local trails.
We will also use online tools to better engage customers, allowing them to reserve and pay online as well as create individual profiles regarding sizes, preferences, and special needs.
Financial Projections
Blue Mountain Cycle Rentals expects to earn a modest profit by year two based on projected sales. Our projections are based on the following key assumptions:
- Initial growth will be moderate as we establish awareness in the market
- Initial equipment purchases will stay in service for an average of three to four years; after two years we will begin investing in "new" equipment to replace damaged or obsolete equipment
- Marketing costs will not exceed 14 percent of sales
- Residual profits will be reinvested in expanding the product and service line
We project first-year revenue of $720,000 and a 10 percent growth rate for the next two years. Direct cost of sales is projected to average 60 percent of gross sales, including 50 percent for the purchase of equipment and 10 percent for the purchase of ancillary items. Net income is projected to reach $105,000 in year three as sales increase and operations become more efficient.
And so on ...
Keep in mind this is just a made-up example of how your Summary might read. Also keep in mind this example focused on the rental business, so a description of products was not included. (They'll show up later.) If your business will manufacture or sell products, or provide a variety of services, then be sure to include a Products and Services section in your Summary. (In this case the products and services are obvious, so including a specific section would be redundant.)
Bottom line: Provide some sizzle in your Executive Summary, but make sure you show a reasonable look at the steak, too.
Providing an overview of your business can be tricky, especially when you're still in the planning stages. If you already own an existing business, summarizing your current operation should be relatively easy; it can be a lot harder to explain what you plan to become .
So start by taking a step back.
Think about what products and services you will provide, how you will provide those items, what you need to have in order to provide those items, exactly who will provide those items, and most important, whom you will provide those items to.
Consider our bicycle rental business example. It's serves retail customers. It has an online component, but the core of the business is based on face-to-face transactions for bike rentals and support.
So you'll need a physical location, bikes, racks and tools and supporting equipment, and other brick-and-mortar related items. You'll need employees with a very particular set of skills to serve those customers, and you'll need an operating plan to guide your everyday activities.
Sound like a lot? It boils down to:
- What you will provide
- What you need to run your business
- Who will service your customers, and
- Who your customers are.
In our example, defining the above is fairly simple. You know what you will provide to meet your customer's needs. You will of course need a certain quantity of bikes to service demand, but you will not need a number of different types of bikes. You need a retail location, furnished to meet the demands of your business. You need semi-skilled employees capable of sizing, customizing, and repairing bikes.
And you know your customers: cycling enthusiasts.
In other businesses and industries, answering the above questions can be more difficult. If you open a restaurant, what you plan to serve will in some ways determine your labor needs, the location you choose, the equipment you need to purchase. And, most important, it will help define your customer. Changing any one element may change other elements; if you cannot afford to purchase expensive kitchen equipment, you may need to adapt your menu accordingly. If you hope to attract an upscale clientele, you may need to invest more in purchasing a prime location and creating an appealing ambience.
So where do you start? Focus on the basics first:
- Identify your industry. Retail, wholesale, service, manufacturing, etc. Clearly define your type of business.
- Identify your customer. You cannot market and sell to customers until you know who they are.
- Explain the problem you solve. Successful businesses create customer value by solving problems. In our rental example, one problem is cycling enthusiasts who don't--or can't--travel with bikes. Another problem is casual cyclists who can't--or choose not to--spend significant sums on their own bikes. The rental shop will solve that problem by offering a lower-cost and convenient alternative.
- Show how you will solve that problem. Our rental shop will offer better prices and enhanced services like remote deliveries, off-hours equipment returns, and online reservations.
If you are still stuck, try answering these questions. Some may pertain to you; others may not.
- Who is my average customer? Who am I targeting? (Unless you plan to open a grocery store, you should be unlikely to answer, "Everyone!")
- What pain point do I solve for my customers?
- How will I overcome that paint point?
- Where will I fail to solve a customer problem, and what can I do to overcome that issue? (In our rental example, one problem is a potential lack of convenience; we will overcome that issue by offering online reservations, on-resort deliveries, and drive-up equipment returns.)
- Where will I locate my business?
- What products, services, and equipment do I need to run my business?
- What skills do my employees need, and how many do I need?
- How will I beat my competition?
- How can I differentiate myself from my competition in the eyes of my customers? (You can have a great plan to beat your competition, but you also must win the perception battle among your customers. If customers don't feel you are different, then you aren't truly different. Perception is critical.)
Once you work through this list you will probably end up with a lot more detail than is necessary for your business plan. That is not a problem: Start summarizing the main points. For example, your Business Overview and Objectives section could start something like this:
History and Vision
Blue Mountain Cycle Rentals is a new retail venture that will be located at 321 Mountain Drive, directly adjacent to an extremely popular cycling destination. Our initial goal is to become the premier provider for bicycle rentals. We will then leverage our customer base and position in the market to offer new equipment sales as well as comprehensive maintenance and service, custom equipment fittings, and expert trail advice.
- Achieve the largest market share bicycle rentals in the area
- Generate a net income of $235,000 at the end of the second year of operation
- Minimize rental inventory replacement costs by maintaining a 7 percent attrition rate on existing equipment (industry average is 12 percent)
Keys to Success
- Provide high-quality equipment, sourcing that equipment as inexpensively as possible through existing relationships with equipment manufacturers and other cycling shops
- Use signage to attract visitors traveling to the national forest, highlighting our cost and service advantage
- Create additional customer convenience factors to overcome a perceived lack of convenience for customers planning to ride roads and trails some distance away from our shop
- Develop customer incentive and loyalty programs to leverage customer relationships and create positive word of mouth
You could certainly include more detail in each section; this is simply a quick guide. And if you plan to develop a product or service, you should thoroughly describe the development process as well as the end result.
The key is to describe what you will do for your customers--if you can't, you won't have any customers.
In the Products and Services section of your business plan, you will clearly describe--yep--the products and services your business will provide.
Keep in mind that highly detailed or technical descriptions are not necessary and definitely not recommended. Use simple terms and avoid industry buzzwords.
On the other hand, describing how the company's products and services will differ from the competition is critical. So is describing why your products and services are needed if no market currently exists. (For example, before there was Federal Express, overnight delivery was a niche business served by small companies. FedEx had to define the opportunity for a new, large-scale service and justify why customers needed--and would actually use --that service.)
Patents, copyrights, and trademarks you own or have applied for should also be listed in this section.
Depending on the nature of your business, your Products and Services section could be very long or relatively short. If your business is product-focused, you will want to spend more time describing those products.
If you plan to sell a commodity item and the key to your success lies in, say, competitive pricing, you probably don't need to provide significant product detail. Or if you plan to sell a commodity readily available in a variety of outlets, the key to your business may not be the commodity itself but your ability to market in a more cost-effective way than your competition.
But if you're creating a new product (or service), make sure you thoroughly explain the nature of the product, its uses, and its value, etc.--otherwise your readers will not have enough information to evaluate your business.
Key questions to answer:
- Are products or services in development or existing (and on the market)?
- What is the timeline for bringing new products and services to market?
- What makes your products or services different? Are there competitive advantages compared with offerings from other competitors? Are there competitive disadvantages you will need to overcome? (And if so, how?)
- Is price an issue? Will your operating costs be low enough to allow a reasonable profit margin?
- How will you acquire your products? Are you the manufacturer? Do you assemble products using components provided by others? Do you purchase products from suppliers or wholesalers? If your business takes off, is a steady supply of products available?
In the cycling rental business example we've been using, products and services could be a relatively simple section to complete or it could be fairly involved. It depends on the nature of the products the company plans to rent to customers.
If Blue Mountain Cycling Rentals plans to market itself as a provider of high-end bikes, describing those bikes--and the sources for those bikes--is important, since "high-end cycling rentals" is intended to be a market differentiation. If the company plans to be the low-cost provider, then describing specific brands of equipment is probably not necessary.
Also, keep in mind that if a supplier runs out of capacity--or goes out of business altogether--you may not have a sufficient supply to meet your demand. Plan to set up multiple vendor or supplier relationships, and describe those relationships fully.
Remember, the primary goal of your business plan is to convince you that the business is viable--and to create a road map for you to follow.
The Products and Services section for our cycling rental business could start something like this:
Product Description
Blue Mountain Cycle Rentals will provide a comprehensive line of bicycles and cycling equipment for all ages and levels of ability. Since the typical customer seeks medium-quality equipment and excellent services at competitive prices, we will focus on providing brands like Trek bikes, Shimano footwear, and Giro helmets. These manufacturers have a widespread reputation as mid- to high-level quality, unlike equipment typically found in the rental market.
The following is a breakdown of anticipated rental price points, per day and per week:
- Bicycle $30/$120
- Helmet $6/$30
- Customers can extend the rental term online without visiting the store.
- A grace period of two hours will be applied to all rentals; customers who return equipment within that two-hour period will not be charged an additional fee.
Competition
Blue Mountain Cycle Rentals will have clear advantages over its primary competitors, the bike shops located in Harrisonburg, VA:
- Newer equipment inventory with higher perceived quality
- Price points 15 percent below the competition
- Online renewals offering greater convenience
- A liberal return grace period that will reinforce our reputation as a customer-friendly rental experience
Future Products
Expansion will allow us to move product offerings into new equipment sales. We will also explore maintenance and fitting services, leveraging our existing maintenance staff to provide value-added services at a premium price.
When you draft your Products and Services section, think of your reader as a person who knows little to nothing about your business. Be clear and to the point.
Think of it this way: The Products and Services section answers the "what" question for your business. Make sure you fully understand the "what" factor; you may run the business, but your products and services are its lifeblood.
Market research is critical to business success. A good business plan analyzes and evaluates customer demographics, purchasing habits, buying cycles, and willingness to adopt new products and services.
The process starts with understanding your market and the opportunities inherent in that market. And that means you'll need to do a little research. Before you start a business you must be sure there is a viable market for what you plan to offer.
That process requires asking, and more importantly answering, a number of questions. The more thoroughly you answer the following questions, the better you will understand your market.
Start by evaluating the market at a relatively high level, answering some high-level questions about your market and your industry:
- What is the size of the market? Is it growing, stable, or in decline?
- Is the overall industry growing, stable, or in decline?
- What segment of the market do I plan to target? What demographics and behaviors make up the market I plan to target?
- Is demand for my specific products and services rising or falling?
- Can I differentiate myself from the competition in a way customers will find meaningful? If so, can I differentiate myself in a cost-effective manner?
- What do customers expect to pay for my products and services? Are they considered to be a commodity or to be custom and individualized?
Fortunately, you've already done some of the legwork. You've already defined and mapped out your products and services. The Market Opportunities section provides a sense-check of that analysis, which is particularly important since choosing the right products and services is such a critical factor in business success.
But your analysis should go further: Great products are great, but there still must be a market for those products. (Ferraris are awesome, but you're unlikely to sell many where I live.)
So let's dig deeper and quantify your market. Your goal is to thoroughly understand the characteristics and purchasing ability of potential customers in your market. A little Googling can yield a tremendous amount of data.
For the market you hope to serve, determine:
- Your potential customers. In general terms, potential customers are the people in the market segment you plan to target. Say you sell jet skis; anyone under the age of 16 and over the age of 60 or so is unlikely to be a customer. Plus, again in general terms, women make up a relatively small percentage of jet ski purchasers. Determining the total population for the market is not particularly helpful if your product or service does not serve a need for the entire population. Most products and services do not.
- Total households. In some cases determining the number of total households is important depending on your business. For example, if you sell heating and air conditioning systems, knowing the number of households is more important than simply knowing the total population in your area. While people purchase HVAC systems, "households" consume those systems.
- Median income. Spending ability is important. Does your market area have sufficient spending power to purchase enough of your products and services to enable you to make a profit? Some areas are more affluent than others. Don't assume every city or locality is the same in terms of spending power. A service that is viable in New York City may not be viable in your town.
- Income by demographics. You can also determine income levels by age group, by ethnic group, and by gender. (Again, potential spending power is an important number to quantify.) Senior citizens could very well have a lower income level than males or females age 45 to 55 in the prime of their careers. Or say you plan to sell services to local businesses; in that case, try to determine the amount they currently spend on similar services.
The key is to understand the market in general terms and then to dig deeper to understand whether there are specific segments within that market--the segments you plan to target--that can become customers and support the growth of your business.
Also keep in mind that if you plan to sell products online the global marketplace is incredibly crowded and competitive. Any business can sell a product online and ship that product around the world. Don't simply assume that just because "the bicycle industry is a $62 billion business" (a number I just made up) that you can capture a meaningful percentage of that market.
On the other hand, if you live in an area with 50,000 people and there's only one bicycle shop, you may be able to enter that market and attract a major portion of bicycle customers in your area.
Always remember it's much easier to serve a market you can define and quantify.
After you complete your research you may feel a little overwhelmed. While data is good, and more data is great, sifting through and making sense of too much data can be daunting.
For the purposes of your business plan, narrow your focus and focus on answering these main questions:
- What is your market? Include geographic descriptions, target demographics, and company profiles (if you're B2B). In short: Who are your customers?
- What segment of your market will you focus on? What niche will you attempt to carve out? What percentage of that market do you hope to penetrate and acquire?
- What is the size of your intended market? What is the population and spending habits and levels?
- Why do customers need and why will they be willing to purchase your products and services?
- How will you price your products and services? Will you be the low cost provider or provide value-added services at higher prices?
- Is your market likely to grow? How much? Why?
- How can you increase your market share over time?
The Market Opportunities section for our cycling rental business could start something like this:
Market Summary
Consumer spending on cycling equipment reached $9,250,000 in the states of VA, WV, MD, and NC last year. While we expect sales to rise, for the purposes of performing a conservative analysis we have projected a zero growth rate for the next three years.
In those states 2,500,000 people visited a national forest last year. Our target market includes customers visiting the Shenandoah National Forest; last year 120,000 people visited the area during spring, summer, and fall months.
Over time, however, we do expect equipment rentals and sales to increase as the popularity of cycling continues to rise. In particular we forecast a spike in demand in 2015 since the national road racing championships will be held in Richmond, VA.
Market Trends
Participation and population trends favor our venture:
- Recreational sports in general and both family-oriented and "extreme" sports continue to gain in exposure and popularity.
- Western VA and eastern WV have experienced population growth rates nearly double that of the country as a whole.
- Industry trends show cycling has risen at a more rapid rate than most other recreational activities.
Market Growth
According to the latest studies, recreation spending in our target market has grown by 14 percent per year for the past three years.
In addition, we anticipate greater than industry-norm growth rates for cycling in the area due to the increase in popularity of cycling events like the Alpine Loop Gran Fondo.
Market Needs
Out target market has one basic need: The availability to source bicycle rentals at a competitive price. Our only other competition are the bike shops in Harrisonburg, VA, and our location will give us a competitive advantage over those and other companies who try to serve our market.
You may want to add other categories to this section based on your particular industry.
For example, you might decide to provide information about Market Segments. In our case, the cycling rental business does not require much segmentation. Rentals are typically not broken down into segments like "inexpensive," "midrange," and "high-end." For the most part rental bikes are more of a commodity. (Although you'll notice in our Products and Services section, we decided to provide "high-end" rentals.)
But say you decide to open a clothing store. You could focus on high fashion, or children's clothes, or outdoor wear, or casual--you could segment the market in a number of ways. If that's the case, provide detail on segmentation that supports your plan.
The key is to define your market--and then show how you will serve your market.
Providing great products and services is wonderful, but customers must actually know those products and services exist. That's why marketing plans and strategies are critical to business success. (Duh, right?)
But keep in mind marketing is not just advertising. Marketing--whether advertising, public relations, promotional literature, etc.--is an investment in the growth of your business.
Like any other investment you would make, money spent on marketing must generate a return. (Otherwise why make the investment?) While that return could simply be greater cash flow, good marketing plans result in higher sales and profits.
So don't simply plan to spend money on a variety of advertising efforts. Do your homework and create a smart marketing program .
Here are some of the basic steps involved in creating your marketing plan:
- Focus on your target market. Who are your customers? Who will you target? Who makes the decisions? Determine how you can best reach potential customers.
- Evaluate your competition. Your marketing plan must set you apart from your competition, and you can't stand out unless you know your competition. (It's hard to stand out from a crowd if you don't know where the crowd stands.) Know your competitors by gathering information about their products, service, quality, pricing, and advertising campaigns. In marketing terms, what does your competition do that works well? What are their weaknesses? How can you create a marketing plan that highlights the advantages you offer to customers?
- Consider your brand. How customers perceive your business makes a dramatic impact on sales. Your marketing program should consistently reinforce and extend your brand. Before you start to market your business, think about how you want your marketing to reflect on your business and your products and services. Marketing is the face of your to potential customers--make sure you put your best face forward.
- Focus on benefits. What problems do you solve? What benefits do you deliver? Customers don't think in terms of products--they think in terms of benefits and solutions. Your marketing plan should clearly identify benefits customers will receive. Focus on what customers get instead of on what you provide. (Take Dominos; theoretically they're in the pizza business, but really they're a delivery business.)
- Focus on differentiation. Your products and services have to stand out from the competition in some way. How will you compete in terms of price, product, or service?
Then focus on providing detail and backup for your marketing plan.
- What is your budget for sales and marketing efforts?
- How will you determine if your initial marketing efforts are successful? In what ways will you adapt if your initial efforts do not succeed?
- Will you need sales representatives (inside or external) to promote your products?
- Can you set up public relations activities to help market your business?
The Sales and Marketing section for our cycling rental business could start something like this:
Target Market
The target market for Blue Mountain Cycling Rentals is western VA, eastern WV, southwestern MD, and northern NC. While customers in the counties surrounding the George Washington National Forest make up 35 percent of our potential customer base, much of our market travels from outside that geographic area.
Marketing Strategy
Our marketing strategy will focus on three basic initiatives:
- Road signage. Access to the forest is restricted to a few primary entrances, and visitors reach those entrances after traveling on one of several main roadways. Since customers currently rent bicycles in the local town of Harrisonburg, road signage will communicate our value proposition to all potential customers.
- Web initiatives. Our website will attract potential visitors to the resort. We will partner with local businesses that serve our target market to provide discounts and incentives.
- Promotional events. We will hold regular events with professional cyclists, like demonstrations and autograph signings, to bring more customers to the store as well as to extend the athletes' "brand" to our brand.
Pricing Strategy
We will not be the low-cost provider for our target market. Our goal is to provide mid- to high-end equipment. However, we will create web-based loyalty programs to incent customers to set up online profiles and reserve and renew equipment rentals online, and provide discounts for those who do. Over time we will be able to market specifically to those customers.
Just as in the Market Opportunity section, you may want to include a few more categories. For example, if your business involves a commission-compensated sales force, describe your Sales Programs and incentives. If you distribute products to other companies or suppliers and those distribution efforts will impact your overall marketing plans, lay out your Distribution Strategy.
The key is to show you understand your market and you understand how you will reach your market. Marketing and promotions must result in customers--your goal is to thoroughly describe how you will acquire and keep your customers.
Also keep in mind you may want to include examples of marketing materials you have already prepared, like website descriptions, print ads, web-based advertising programs, etc. While you don't need to include samples, taking the time to create actual marketing materials might help you better understand and communicate your marketing plans and objectives.
Make sure your Sales and Marketing section answers the "How will I reach my customers?" question.
Competitive Advantage
The Competitive Analysis section of your business plan is devoted to analyzing your competition--both your current competition and potential competitors who might enter your market.
Every business has competition. Understanding the strengths and weaknesses of your competition--or potential competition--is critical to making sure your business survives and grows. While you don't need to hire a private detective, you do need to thoroughly assess your competition on a regular basis even if you plan to run only a small business.
In fact, small businesses can be especially vulnerable to competition, especially when new companies enter a marketplace.
Competitive analysis can be incredibly complicated and time-consuming, but it doesn't have to be. Here is a simple process you can follow to identify, analyze, and determine the strengths and weaknesses of your competition.
Profile Current Competitors
First, develop a basic profile of each of your current competition. For example, if you plan to open an office supply store, you may have three competing stores in your market.
Online retailers will also provide competition, but thoroughly analyzing those companies will be less valuable unless you also decide you want to sell office supplies online. (Although it's also possible that they--or, say, Amazon--are your real competition. Only you can determine that.)
To make the process easier, stick to analyzing companies you will directly compete with. If you plan to set up an accounting firm, you will compete with other accounting firms in your area. If you plan to open a clothing store, you will compete with other clothing retailers in your area.
Again, if you run a clothing store, you also compete with online retailers, but there is relatively little you can do about that type of competition other than to work hard to distinguish yourself in other ways: great service, friendly salespeople, convenient hours, truly understanding your customers, etc.
Once you identify your main competitors, answer these questions about each one. And be objective. It's easy to identify weaknesses in your competition, but less easy (and a lot less fun) to recognize how they may be able to outperform you:
- What are their strengths? Price, service, convenience, and extensive inventory are all areas where you may be vulnerable.
- What are their weaknesses? Weaknesses are opportunities you should plan to take advantage of.
- What are their basic objectives? Do they seek to gain market share? Do they attempt to capture premium clients? See your industry through their eyes. What are they trying to achieve?
- What marketing strategies do they use? Look at their advertising, public relations, etc.
- How can you take market share away from their business?
- How will they respond when you enter the market?
While these questions may seem like a lot of work to answer, in reality the process should be fairly easy. You should already have a feel for the competition's strengths and weaknesses--if you know your market and your industry.
To gather information, you can also:
- Check out their websites and marketing materials. Most of the information you need about products, services, prices, and company objectives should be readily available. If that information is not available, you may have identified a weakness.
- Visit their locations. Take a look around. Check out sales materials and promotional literature. Have friends stop in or call to ask for information.
- Evaluate their marketing and advertising campaigns. How a company advertises creates a great opportunity to uncover the objectives and strategies of that business. Advertising should help you quickly determine how a company positions itself, who it markets to, and what strategies it employs to reach potential customers.
- Browse. Search the Internet for news, public relations, and other mentions of your competition. Search blogs and Twitter feeds as well as review and recommendation sites. While most of the information you find will be anecdotal and based on the opinion of just a few people, you may at least get a sense of how some consumers perceive your competition. Plus you may also get advance warning about expansion plans, new markets they intend to enter, or changes in management.
Keep in mind competitive analysis does more than help you understand your competition. Competitive analysis can also help you identify changes you should make to your business strategies. Learn from competitor strengths, take advantage of competitor's weaknesses, and apply the same analysis to your own business plan.
You might be surprised by what you can learn about your business by evaluating other businesses.
Identify Potential Competitors
It can be tough to predict when and where new competitors may pop up. For starters, regularly search for news on your industry, your products, your services, and your target market.
But there are other ways to predict when competition may follow you into a market. Other people may see the same opportunity you see. Think about your business and your industry, and if the following conditions exist, you may face competition does the road:
- The industry enjoys relatively high profit margins
- Entering the market is relatively easy and inexpensive
- The market is growing--the more rapidly it is growing the greater the risk of competition
- Supply and demand is off--supply is low and demand is high
- Very little competition exists, so there is plenty of "room" for others to enter the market
In general terms, if serving your market seems easy you can safely assume competitors will enter your market. A good business plan anticipates and accounts for new competitors.
Now distill what you've learned by answering these questions in your business plan:
- Who are my current competitors? What is their market share? How successful are they?
- What market do current competitors target? Do they focus on a specific customer type, on serving the mass market, or on a particular niche?
- Are competing businesses growing or scaling back their operations? Why? What does that mean for your business?
- How will your company be different from the competition? What competitor weaknesses can you exploit? What competitor strengths will you need to overcome to be successful?
- What will you do if competitors drop out of the marketplace? What will you do to take advantage of the opportunity?
- What will you do if new competitors enter the marketplace? How will you react to and overcome new challenges?
The Competitive Analysis section for our cycling rental business could start something like this:
Primary Competitors
Our nearest and only competition is the bike shops in Harrisonburg, VA. Our next closest competitor is located over 100 miles away.
The in-town bike shops will be strong competitors. They are established businesses with excellent reputations. On the other hand, they offer inferior-quality equipment and their location is significantly less convenient.
Secondary Competitors
We do not plan to sell bicycles for at least the first two years of operation. However, sellers of new equipment do indirectly compete with our business since a customer who buys equipment no longer needs to rent equipment.
Later, when we add new equipment sales to our operation, we will face competition from online retailers. We will compete with new equipment retailers through personalized service and targeted marketing to our existing customer base, especially through online initiatives.
Opportunities
- By offering mid- to high-end quality equipment, we provide customers the opportunity to "try out" bikes they may wish to purchase at a later date, providing additional incentive (besides cost savings) to use our service.
- Offering drive-up, express rental return services will be seen as a much more attractive option compared with the hassle of renting bikes in Harrisonburg and transporting them to intended take-off points for rides.
- Online initiatives like online renewals and online reservations enhances customer convenience and positions us as a cutting-edge supplier in a market largely populated, especially in the cycling segment, by customers who tend to be early technology adapters.
- Renting bikes and cycling equipment may be perceived by some of our target market as a commodity transaction. If we do not differentiate ourselves in terms of quality, convenience, and service, we could face additional competition from other entrants to the market.
- One of the bike shops in Harrisonburg is a subsidiary of a larger corporation with significant financial assets. If we, as hoped, carve out a significant market share, the corporation may use those assets to increase service, improve equipment quality, or cut prices.
While your business plan is primarily intended to convince you that your business makes sense, keep in mind most investors look closely at your competitive analysis. A common mistake made by entrepreneurs is assuming they will simply "do it better" than any competition.
Experienced businesspeople know you will face stiff competition: showing you understand your competition, understand your strengths and weaknesses relative to that competition, and that you understand you will have to adapt and change based on that competition is critical.
And, even if you do not ever plan to seek financing or bring in investors, you absolutely must know your competition.
The Competitive Analysis section helps you answer the "Against whom?" question.
The next step in creating your business plan is to develop an Operations Plan that will serve your customers, keep your operating costs in line, and ensure profitability . Your ops plan should detail strategies for managing, staffing, manufacturing, fulfillment, inventory--all the stuff involved in operating your business on a day-to-day basis.
Fortunately, most entrepreneurs have a better handle on their operations plan than on any other aspect of their business. After all, while it may not seem natural to analyze your market or your competition, most budding entrepreneurs tend to spend a lot of time thinking about how they will run their businesses.
Your goal is to answer the following key questions:
- What facilities, equipment, and supplies do you need?
- What is your organizational structure? Who is responsible for which aspects of the business?
- Is research and development required, either during start up or as an ongoing operation? If so, how will you accomplish this task?
- What are your initial staffing needs? When and how will you add staff?
- How will you establish business relationships with vendors and suppliers? How will those relationships impact your day-to-day operations?
- How will your operations change as the company grows? What steps will you take to cut costs if the company initially does not perform up to expectations?
Operations plans should be highly specific to your industry, your market sector, and your customers. Instead of providing an example like I've done with other sections, use the following to determine the key areas your plan should address:
Location and Facility Management
In terms of location, describe:
- Zoning requirements
- The type of building you need
- The space you need
- Power and utility requirements
- Access: Customers, suppliers, shipping, etc.
- Specialized construction or renovations
- Interior and exterior remodeling and preparation
Daily Operations
- Production methods
- Service methods
- Inventory control
- Sales and customer service
- Receiving and Delivery
- Maintenance, cleaning, and re-stocking
- Licenses and permits
- Environmental or health regulations
- Patents, trademarks, and copyrights
Personnel Requirements
- Typical staffing
- Breakdown of skills required
- Recruiting and retention
- Policies and procedures
- Pay structures
- Anticipated inventory levels
- Turnover rate
- Seasonal fluctuations in demand
- Major suppliers
- Back-up suppliers and contingency plans
- Credit and payment policies
Sound like a lot? It can be, but not all of the above needs to be in your business plan.
You should think through and create a detailed plan for each category, but you won't need to share the results with the people who read your business plan
Working through each issue and developing concrete operations plans helps you in two major ways:
- If you don't plan to seek financing or outside capital, you can still take advantage of creating a comprehensive plan that addresses all of your operational needs.
- If you do seek financing or outside capital, you may not include all the detail in your business plan--but you will have answers to any operations questions at your fingertips.
Think of Operations as the "implementation" section of your business plan. What do you need to do? How will you get it done? Then create an overview of that plan to make sure your milestones and timeline make sense.
That way the operations section answers the "How?" question.
Many investors and lenders feel the quality and experience of the management team is one of the most important factors used to evaluate the potential of a new business.
But putting work into the Management Team section will not only benefit people who may read your plan. It will also help you evaluate the skills, experiences, and resources your management team will need . Addressing your company's needs during implementation will make a major impact on your chances for success.
- Who are the key leaders? (If actual people have not been identified, describe the type of people needed.) What are their experiences, educational backgrounds, and skills?
- Do your key leaders have industry experience? If not, what experience do they bring to the business that is applicable?
- What duties will each position perform? (Creating an organization chart might be helpful.) What authority is granted to and what responsibilities are expected in each position?
- What salary levels will be required to attract qualified candidates for each position? What is the salary structure for the company, by position?
The Management Team section for our cycling rental business could start something like this:
Jim Rouleur, Owner and Manager
Joe has over 20 years experience in the cycling business. He served for 10 years as a product manager for Acme Bikes. After that he was the operations manager of Single Track Cycles, a full-service bike shop located in Bend, Oregon. He has an undergraduate degree in marketing from Duke University and an MBA from Virginia Commonwealth University. (A complete resume for Mr. Rouleur can be found in the Appendix.)
Mary Gearset, Assistant Manager
Mary was the 2009 U.S. Mountain Biking National Champion. She worked in product development for High Tec frames, creating custom frames and frame modifications for professional cyclists. She also has extensive customer service and sales experience, having worked for four years as the online manager of Pro Parts Unlimited, an online retailer of high-end cycling equipment and accessories.
In some instances you may also wish to describe your staffing plans.
For example, if you manufacture a product or provide a service and will hire a key skilled employee, describe that employee's credentials. Otherwise, include staffing plans in the Operations section.
One key note: Don't be tempted to add a "name" to your management team in hopes of attracting investors. Celebrity management team members may attract the attention of your readers, but experienced lenders and investors will immediately ask what role that person will actually play in the running of the business--and in most cases those individuals won't play any meaningful role.
If you don't have a lot of experience--but are willing to work hard to overcome that lack of experience--don't be tempted to include people in your plan who will not actually work in the business.
If you can't survive without help, that's okay. In fact, that's expected; no one does anything worthwhile on their own. Just make plans to get help from the right people.
Finally, when you create your Management section, focus on credentials but pay extra attention to what each person actually will do . Experience and reputation are great, but action is everything.
That way your Management section will answer the "Who is in charge?" question.
Numbers tell the story. Bottom line results indicate the success or failure of any business.
Financial projections and estimates help entrepreneurs, lenders, and investors or lenders objectively evaluate a company's potential for success. If a business seeks outside funding, providing comprehensive financial reports and analysis is critical.
But most important, financial projections tell you whether your business has a chance of being viable--and if not let you know you have more work to do.
Most business plans include at least five basic reports or projections:
- Balance Sheet: Describes the company cash position including assets, liabilities, shareholders, and earnings retained to fund future operations or to serve as funding for expansion and growth. It indicates the financial health of a business.
- Income Statement: Also called a Profit and Loss statement, this report lists projected revenue and expenses. It shows whether a company will be profitable during a given time period.
- Cash Flow Statement: A projection of cash receipts and expense payments. It shows how and when cash will flow through the business; without cash, payments (including salaries) cannot be made.
- Operating Budget: A detailed breakdown of income and expenses; provides a guide for how the company will operate from a "dollars" point of view.
- Break-Even Analysis: A projection of the revenue required to cover all fixed and variable expenses. Shows when, under specific conditions, a business can expect to become profitable.
It's easy to find examples of all of the above. Even the most basic accounting software packages include templates and samples. You can also find templates in Excel and Google Docs. (A quick search like "google docs profit and loss statement" yields plenty of examples.)
Or you can work with an accountant to create the necessary financial projections and documents. Certainly feel free to do so, but first play around with the reports yourself. While you don't need to be an accountant to run a business, you do need to understand your numbers, and the best way to understand your numbers is usually to actually work with your numbers.
But ultimately the tools you use to develop your numbers are not as important as whether those numbers are as accurate as possible--and whether those numbers help you decide whether to take the next step and put your business plan into action.
Then Financial Analysis can help you answer the most important business question: "Can we make a profit?"
Some business plans include less essential but potentially important information in an Appendix section. You may decide to include, as backup or additional information:
- Resumes of key leaders
- Additional descriptions of products and services
- Legal agreements
- Organizational charts
- Examples of marketing and advertising collateral
- Photographs of potential facilities, products, etc.
- Backup for market research or competitive analysis
- Additional financial documents or projections
Keep in mind creating an Appendix is usually only necessary if you're seeking financing or hoping to bring in partners or investors. Initially the people reading your business plan don't wish to plow through reams and reams of charts, numbers, and backup information. If one does want to dig deeper, fine--he or she can check out the documents in the Appendix.
That way your business plan can share your story clearly and concisely.
Otherwise, since you created your business plan, you should already have the backup.
Tying It All Together
While you may use your business plan to attract investors, partners, suppliers, etc., never forget that the goal of your business plan is to convince you that your idea makes sense.
Because ultimately it's your time, your money, and your effort on the line.
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56 Small Business Ideas To Make Money in 2024
The entrepreneurial landscape brims with potential and vibrancy. No longer do you need massive capital or a brick-and-mortar store to kick off a business. Today, with just a sprinkle of creativity and a dose of determination, you can launch a new venture.
If you’ve landed on this page, you’re probably searching for a good business idea —an idea that’s light on the pocket but heavy on returns, promising both a fulfilling journey and potential profit. Below, we’ll explore 56 small business ideas tailored just for the budding entrepreneur of today.
56 small business ideas to pursue in 2024
1. dropshipping.
Are you looking to sell products online but lack the funds for inventory and storage? Consider dropshipping. Dropshipping is an ecommerce business model where you don’t manage any physical products.
All you need to do is establish an online store and partner with suppliers. These suppliers will handle the storage, packaging, and shipping of orders to your customers. Get started by creating your online store via Shopify and using a dropshipping app to source products.
![good product for business plan best small business dropshipping](https://cdn.shopify.com/s/files/1/0840/8370/3830/files/1615802234-the-dropshipping-model.png)
2. Print on demand
If you’re searching for promising online business ideas, print on demand (POD) is worth considering. In this model, you design items like phone cases, mugs, or t-shirts, but you don’t handle the manufacturing or fulfillment. Your suppliers take care of printing, packaging, and shipping, and you pay only after a sale—meaning no initial costs.
Ready to kickstart your POD journey? Get started by creating a Shopify store and integrating a POD app, such as Printify .
3. Translation
Multilingual individuals are always in demand. If you’re proficient in two or more languages, consider launching a small business to capitalize on these skills. Begin by seeking clients on platforms like Upwork and Flexjobs to establish your portfolio. As your client base grows and you collaborate with more companies, consider expanding by hiring other translators with expertise in different languages.
4. Data entry
If you are proficient with spreadsheets or skilled in organizing systems and processes, running a data entry business could be a perfect fit for you. Since every business relies on data, data entry clerks are vital for compiling, storing, and managing large amounts of information.
Get started by reaching out to local companies to offer your expertise. You can also join freelance platforms such as Upwork and Fiverr to find clients.
5. Website flipping
![good product for business plan website flipping 101](https://cdn.shopify.com/s/files/1/0840/8370/3830/files/1603897494-website-flipping-1.png)
Website flipping is gaining traction, especially among recent graduates and individuals working from home. The concept is simple: Acquire an existing website, refine its design and content, and then sell it at a markup.
You can find websites in need of a revamp on platforms like Flippa . Once finished, focus on enhancing the site’s design, content, and SEO. You can then list it for sale on the same platform to potentially make a profit.
6. Affiliate marketing
Affiliate marketing involves promoting products or services through affiliate links. When someone clicks on your link and makes a purchase, you earn a commission.
Before joining an affiliate marketing program , consider various factors to find the best fit for your needs. Evaluate the commission rates, payment terms, and cookie duration offered by each program. Taking these things into account will help you choose the most suitable program to maximize your earning potential.
7. Home-based catering
If you have a knack for cooking and view it as a creative outlet, launching your own business in home-based catering could be a fulfilling venture. Your initial investment will vary. For instance, if you focus on smaller events you can manage yourself, costs may be more modest.
To kick things off, most home-based caterers set up a website , get involved in local food markets, or join platforms that let culinary experts earn from their skills.
8. Financial organization service
Launch a service that guides entrepreneurs in separating their personal and business finances. First, assist them in setting up distinct bank accounts and adopting software to monitor business expenses. Then, explain the tax and legal upsides to keeping finances apart. With your guidance, they’ll learn to maintain financial order effortlessly.
9. Dog walking
![good product for business plan good product for business plan](https://cdn.shopify.com/s/files/1/0840/8370/3830/files/1670829813-dog-jogs-website.jpg)
It can be difficult to keep up with a furry friend, particularly high-energy breeds with limited outdoor access. As a professional dog walker, you’ll be helping pet owners in the community keep their dogs happy, healthy, and well exercised.
You can establish a presence for your dog walking business on a number of platforms, including Wag! , Rover , and Care.com . Offer promotions for new clients and build a positive reputation by requesting reviews from those you’ve worked with in the past.
10. Virtual assistant
One of the most successful business ideas is offering virtual assistant services. Everyone from large enterprises to solopreneurs needs help with the day-to-day management of their business. You can use your excellent organizational skills to take some weight off their shoulders.
Land your first few clients by responding to listings on platforms like FreeUp , PeoplePerHour , or Virtual Assistant Jobs . This is a proven business model, as people are always looking for efficient virtual assistants.
11. Voiceover services
Voiceover artists provide professional narration for a variety of projects, such as podcast intros/outros, explainer videos, and audiobooks. Begin by refining your voice and recording skills through online tutorials and practice sessions. Develop a portfolio demonstrating your versatility across different genres and styles. Then, promote your services on freelancing platforms or by creating a website to attract potential clients.
![good product for business plan good product for business plan](https://cdn.shopify.com/s/files/1/0840/8370/3830/files/1605012226-code-coding-computer-data-574071-1024x678.jpg)
Coding has long been a monetizable skill across industries. You can acquire foundational knowledge through courses, but true mastery comes from practical experience. Consider building a website to showcase your abilities, reach out to brands you admire for potential collaborations, and develop a portfolio featuring your work in website and app development.
13. Online reselling
Online reselling involves buying products cheaply from manufacturers or wholesalers and then selling them at a higher price to make a profit. To kick things off, focus on items you’re familiar with or that are in demand. Use platforms like eBay , Amazon , or Etsy to reach buyers. Quick tip: Take great photos and write clear descriptions to boost your sales.
14. Personal shopping
Do you have a knack for identifying fashion trends? If friends and family often seek your clothing advice, consider turning that talent into a personal shopping business.
Personal shoppers select clothing for clients who lack the time or inclination to shop. This involves assessing the client’s current wardrobe, browsing various online boutiques, and choosing items that fit their style. The variety of products in online stores means you don’t always have to shop in-person.
15. Car detailing
![good product for business plan good product for business plan](https://cdn.shopify.com/s/files/1/0840/8370/3830/files/1651102574-erik-mclean-jczdrlqgdrm-unsplash.jpg)
Contrary to popular belief, you can turn car detailing from a hobby into a thriving small business . Clients typically pay anywhere from $50 to $400 per vehicle, so with a consistent client base, you stand to earn a substantial profit.
Your marketing strategy holds the key to your success in the car detailing business. Create a website or utilize social media platforms to promote your services, and always encourage happy clients to leave reviews. Consider offering introductory discounts or package deals to entice new customers.
16. Boat cleaning
Here’s a unique idea that might interest you: boat cleaning. This service focuses on boats docked for off-season storage or those in need of repairs. Start by offering your services to individual boat owners with vessels parked at their homes.. You can also partner with marinas to provide your services as an added value to their customers.
17. Online tutoring
If you’re an expert in art, math, or another subject, consider starting your own small business in online tutoring. A bachelor’s degree in the subject you plan to teach is usually a must. Sites like Skooli and Tutor.com are great places to connect with students in need.
It’s beneficial to teach topics you’re passionate about and knowledgeable in, ensuring you provide real value. And with tools like Zoom, conducting online sessions is a breeze. Online tutoring not only taps into your expertise but also stands out as one of the more accessible small businesses to kick off.
18. Greeting cards
Greeting cards are always in style. So, if you have a good eye for design or just love showcasing your artwork on physical items, consider making greeting cards to sell online.
Before you start looking for clients, you need to have a handful of designs ready to go. Tools like Photoshop and Canva make it easy to create custom card designs. Additionally, you’ll need to stock up on supplies required to create greeting cards (ink, paper, etc.).
19. Content writing
![good product for business plan profitable business ideas for 2020](https://cdn.shopify.com/s/files/1/0840/8370/3830/files/1603897494-bi2.jpg)
Almost every company with a web presence needs help creating content for product pages, blogs , etc. As such, starting a content writing or copywriting company could be one of the most profitable business ideas for you. Popular websites for finding those first few customers include Remote.co , Problogger , and BloggingPro .
You can also join content writing groups on Facebook to get more exposure for your business. To make a good impression on clients, consider offering keyword optimization or custom graphics as part of your services.
20. Newsletter
A newsletter lets you talk straight to an audience that’s already interested. If you’ve got internet savvy and know things others want to learn, think about launching a newsletter . You just need an email service and a plan to get subscribers. Then, you can earn by selling spots to sponsors, or by selling your own products or services right through the newsletter. Or, if you gather enough subscribers, start charging for your newsletter.
21. Makeup artist
If making people look their best with makeup is what you love, starting a makeup artist business could be your calling. Focus on weddings, photoshoots, and special events. You have the choice to cater to local clients or travel for a broader clientele. To get started, advertise on local Facebook groups, and don’t forget to launch a website and distribute flyers.
22. Online dating consultant
For those passionate about matchmaking, offering online dating consulting services can be a great business idea. This type of service involves assisting clients with all aspects of their online dating journey, from creating attractive profiles to providing personalized guidance for finding compatible matches. Offer it to some friends first and leverage their success stories to promote your business to other singles.
23. Homemade products
![good product for business plan good product for business plan](https://cdn.shopify.com/s/files/1/0840/8370/3830/files/1608617572-soap.jpg)
If you’re skilled in making unique crafts like soap, drinks, or baked goods, consider turning it into a business. You can sell your creations at local farmers markets or online platforms like Etsy to reach a wide audience.
To really make your mark, think about adding a personal touch to your products. For example, you could offer custom flavors for drinks or personalized labels for soaps and baked goods.
24. WordPress support
A lot of websites out there are hosted on WordPress, and almost every WordPress website owner requires support in some form. So, if you’re familiar with the ins and outs of this platform, you’ll have several opportunities to make money.
Clients may contact you to fix their CSS, find and address security holes, and more. While you can use platforms like PeoplePerHour and Upwork to get your first clients, we recommend creating a custom website and listing your services there. That way, you’ll be able to avoid high commissions and build high-quality relationships with your clients.
25. Career coaching
With rising unemployment and a saturated job market, there’s no shortage of people needing help finding jobs. If you have a talent for helping your friends and family find suitable employment, you can probably help others too.
Consider starting a career coaching business where you help people figure out what the best career is for them, and teach them how to nail an interview, what traits define a good candidate, and more. You can look for clients in Facebook groups or on platforms like Coach.me .
26. Email marketing
![good product for business plan good product for business plan](https://cdn.shopify.com/s/files/1/0840/8370/3830/files/1605200331-email-marketing.jpg)
Are you good at writing emails? Have you cracked the code for crafting subject lines that people can’t help but click? If so, you can step into entrepreneurship and make money by launching an email marketing business.
You can find companies that need help with their email strategy on platforms like PeoplePerHour and Upwork , as well as via cold outreach. Once you show your expertise in engaging recipients, clients will see the value in your services and many may agree to the price you quote them. Major brownie points if you can help grow their email list.
27. Contract cleaning
Not everyone has the time or skills to clean on a regular basis. By becoming a professional cleaner, you can assist home and business owners with scrubbing, dusting, vacuuming, and more, all while enjoying flexibility in your working hours due to the ongoing demand for cleaning services.
Startup costs for household cleaning businesses are extremely low. Cleaning supplies and materials usually cost less than $100, though you might also consider investing in specialty equipment like steam vacuums or carpet cleaners. Setting up a website or social media page can be an effective and low-cost way to promote your services.
28. Meals to go
There’s a growing demand from those who struggle to find the time to cook nutritious and healthy meals. This trend offers a perfect opportunity to start your own local meals-to-go business.
Contrary to popular belief, you don’t need to invest heavily in a large commercial kitchen. A shared rental kitchen can efficiently cater to a meals-to-go business. These spaces come equipped with essential supplies and can be rented by the month, day, or hour. You can find shared-use licensed commissary kitchens on websites like The Kitchen Door .
29. Landscaping services
Are you passionate about gardening and yard work? Starting a landscaping business could be the perfect avenue to transform your hobby into a profitable venture. Landscaping services encompass a wide range of jobs, from mowing lawns to planting flowers and shrubs. Depending on your local climate, the demand for these services may vary seasonally.
To secure your initial clients, you might consider going door to door in your community or utilizing platforms like TaskEasy . Websites such as HomeAdvisor can also connect you with potential clients in your area.
30. Charity business
Have you ever dreamed of making a difference through your business? Now’s your chance. Infuse your company with a mission and allocate profits to a cause you care about. Partner with nonprofits or directly contribute to social good while staying transparent about your efforts.
You can also utilize tools like the Give & Grow Donations Shopify app to seamlessly incorporate your mission into your business and engage customers in supporting meaningful causes at checkout.
31. Website testing
![good product for business plan good product for business plan](https://cdn.shopify.com/s/files/1/0840/8370/3830/files/1605653272-website.jpg)
Did you know many digital brands hire real individuals to provide feedback on their websites? These external insights help them pinpoint and rectify problems that internal developers might have overlooked. You can leverage this demand by assembling a team of freelancers and establishing your own website testing company.
For each project you undertake, your team would be provided with a set of questions to guide them as they navigate a client’s website. They’d then share their impressions on the site’s user experience and potential improvements through video feedback.
You can find work through websites like UserTesting , Ferpection , and TryMyUI .
For each project you undertake, your team would be provided with a set of questions to guide them as they navigate a client’s website. They’d then share their impressions on the site’s user experience and potential improvements through video feedback. You can find work through websites like UserTesting , FerpectiFerpectionon , and TryMyUI .
Do you have experience in generating backlinks and improving the search engine visibility of a website? If yes, then there’s an opportunity for you to cash in on your skill set.
Site owners worldwide require the services of SEO experts, so opening a business in this field could turn out to be one of your best decisions. To attract clients, target a niche audience, leverage past experiences, and highlight your success stories. With monthly retainers of $500 to $1,000, selling SEO services is one of the best business ideas to make money in 2024.
33. App development
App development is one of the best profitable small business ideas, since so many companies require an app. The cost of starting this venture has also drastically gone down due to the growth of tools and affordable developers.
Today, you can use software like OmniGraffle or Sketch to create the wireframes and mockups before you decide to publish the app. There’s also the opportunity to earn passive income by creating apps for the general audience.
34. Virtual dance studio
The upsides to a virtual dance studio are pretty obvious: You don’t need to rent a big space, and it’s convenient to record, publish, and share the choreography at your own discretion. It’s even possible to give dance classes from home, making it one of the best home-based business ideas .
To start a virtual dance studio, you’ll need to invest in video conferencing software, such as Zoom . You’ll also need high-speed internet to ensure there are no lags or buffering during the livestream. Make sure to arrange enough classes per month so that your students learn their routines fast.
If you have a passion for creating your own unique choreography, you may also find opportunities to partner with dance schools to give their students access to your content on a membership basis.
35. Stock photography
If you have the ability to capture great candid moments or recently did a portrait shoot of a relative, you can become a stock photographer by registering a sole proprietorship under your name.
Most stock photography websites pay you a royalty for every download on their platform. Another option is to launch your own photography website and sell images directly to people, which is only viable if you have the resources to invest in marketing.
36. Instagram consulting
If you know the secrets to Instagram engagement , consider starting an Instagram consulting business. Clients will pay you for crafting engaging captions, responding to comments, creating attractive bios, and more.
You can monetize these services by charging a specific rate per hour or by project. This is the ideal business model for digital nomads , as all tasks can be managed from a laptop or smartphone.
37. Video production
The initial investment for this venture includes a basic lighting set, wireless microphones, one to two cameras (and lenses), and editing software such as Adobe Premiere or Final Cut Pro . Consider sourcing second-hand equipment to cut down on startup costs.
You can offer to produce video content for companies’ YouTube channels, manage graduation and wedding videography, and more. While there’s no restriction to the types of projects you can do, specializing in a niche makes it easy to stand out in a busy marketplace.
38. Software education
Are there people in your circle struggling with computer software? If so, starting a software education venture could be lucrative. Your students might range from entrepreneurs enhancing their IT capabilities to small business owners mastering tools like Excel and PowerPoint. As the primary expert, you can spearhead most of the training sessions.
As enrollment grows, consider bringing onboard freelance software experts to cover specialized topics. While renting a space for physical classes is an option, virtual classes could reduce costs and broaden your reach.
39. College preparation
The business of assisting high school students in securing college admissions is thriving. As IBISWorld notes, the testing and educational support industry’s market size was a staggering $17.9 billion in 2023
Initiate your venture by choosing a specific aspect of college prep, like ACT tutoring or admission essay coaching. Once your niche is clear, register your business and start reaching out to students.
40. Niche staffing agency
Nearly every industry has open jobs, and employers are keen to hire the best people for their companies. Your task as a niche staffing agency is to match employees to employers in your sector of choice.
Figure out what type of roles you’ll be staffing (Junior? Mid-level? C-level?) so you can identify the right candidates for the position. Additionally, consider the employment terms that your agency will share with potential candidates. You can be a temporary, temporary-to-permanent, or long-term staffing agency based on the needs of the market.
41. Digital event planning
One of the best small business ideas is to open up a digital event planning company. In this business, you’ll plan, organize, and report on digital events like webinars and online summits for different companies.
Money can be made by charging an hourly fee for your service, selling sponsorships, etc. If you ever dreamed of planning a wedding or exhibition, but never quite had the time to organize anything, you can still channel your inner facilitator by planning digital events for people and businesses.
42. Personal training
Being a personal trainer transcends simple exercise instruction. Personal trainers craft tailored plans, providing both motivation and consistent accountability. Clients invest not just in workouts, but in the comprehensive expertise a personal trainer offers.
This expertise isn’t confined to gym walls. The surge of virtual training sessions allows personal trainers to tap into a global clientele. For those deeply passionate about fitness, establishing a personal training business stands at the intersection of profit and passion.
43. Child care
![good product for business plan good product for business plan](https://cdn.shopify.com/s/files/1/0840/8370/3830/files/1605713916-children-wearing-school-bags.jpg)
If you love working with children and can obtain the necessary licenses, starting a child care business might be a great opportunity for you. The increasing need for child care services and the lack of enough providers create an ideal situation for launching a new business. To differentiate your venture, consider offering personalized care options or engaging activity programs tailored to children’s ages and interests.
44. Home enhancement
Got an eye for aesthetics and space management? Consider getting into home enhancement, where you transform everyday spaces into showpiece properties. Initially, you can magnify the appeal of homes using the owner’s existing items, keeping startup costs low. As you gain momentum, many professionals in this field curate their own collection of versatile furnishings.
45. Tour guide business
Another small business idea is starting a tour guide business. Sure, there’s a lot of competition out there. But you can differentiate yourself by offering unique experiences. Consider crafting specialized tours that cater to niche interests, such as historical walking tours of your town’s most haunted spots, or curated food tours that showcase the city’s culinary delights.
46. Life coaching
Life coaches guide individuals through career shifts and help them create lives they adore. If you’re skilled at decision-making, communicate well, and like steering people toward their dream lives, this might be your calling. Get a qualification first. Then, grab clients through social media and local ads, and, eventually, word-of-mouth will do its magic.
47. Furniture upcycling/restoration
![good product for business plan good product for business plan](https://cdn.shopify.com/s/files/1/0840/8370/3830/files/1670603047-pexels-designecologist-1005058.jpg)
Furniture upcycling has become popular as people look to refresh their living spaces. If you’ve developed skills in restoring furniture and enjoy giving a new lease on life to well-loved pieces, think about starting a business in furniture restoration or upcycling. Search for hidden gems in local charity shops or reclamation centers to refurbish and sell, or offer your services to update people’s existing furniture.
48. Board game customization
Personalized board games are becoming popular as people look for unique, custom-made entertainment options. This business caters to everyone: single players, families, and companies who want special games. To start, think about if you want to make the games yourself or hire a specialist to do it. If you decide to make them, look at YouTube videos and online guides to learn how.
49. Massage therapy
Massage therapists offer a service many seek for relief and relaxation. Here’s how you can run your massage business:
- Go to clients’ houses to provide massages.
- Open a center where clients can visit you.
- Team up with a chiropractor, salon, or acupuncturist and work together.
First, you need to get certified. After that, you can start adding more services, like beauty treatments or relaxation therapies.
50. Personal storage help
Dealing with excess belongings is something a lot of people struggle with. They sometimes even end up needing extra space to store their stuff. As a personal storage helper, you step in to sort this out. You help decide what to keep, what to donate, and what to store. This job revolves around being organized and assisting people in decluttering their spaces.
51. Coffee shop
Turn your coffee enthusiasm into your own coffee shop. You can either join a franchise or start from scratch. Once your shop is up and running, make it a go-to place by organizing events, offering deals, and becoming a vital part of the community.
52. Food store
If you’re an expert in a certain type of food—or simply have a deep love for a specific product—consider opening a dedicated food store. With a clear business plan, transform your passion into a niche hub for cheese, wine, craft beers, or specialty olive oils, drawing in those with similar tastes.
53. Food truck
![good product for business plan good product for business plan](https://cdn.shopify.com/s/files/1/0840/8370/3830/files/1707475454-nick-hillier-ozkghsxluxq-unsplash.jpg)
Starting a food truck is more affordable than opening a restaurant, since all you need is a vehicle and cooking gear. To do well, pick a certain type of food or cuisine because space is tight. If buying a truck is too costly, consider leasing one through a company such as the Food Truck Group. This way, you can start small and, if things go well, possibly open a restaurant later.
54. Vending machines
Vending machines provide convenient access to a variety of products without the need for human interaction. They cater to individuals seeking quick purchases in high-traffic locations like hospitals, schools, and community centers. To start this business, research and secure agreements with property owners for strategic machine placement.
55. Eco-friendly refill shop
As people become more eco-conscious, refill stations for everyday products like laundry detergent and cooking oil are gaining traction. These businesses appeal by helping customers reduce plastic waste and promoting sustainability. To get started, create a functional setup with clearly labeled bulk dispensers for various products.
56. Interior design
Many people can buy furniture and décor but don’t know how to pull a room together. That’s where you come in. Start by decorating friends’ homes to match their vision with your flair. Great interior design mixes client dreams with your know-how. Document your work, share it online, and watch your fanbase grow.
Start a small business today
There you have it—a list of 56 small business ideas that will make you money in 2024. To give yourself the best chance of success, focus on one idea at a time until you find one that aligns with your abilities.
Thousands of entrepreneurs have implemented these business ideas to make money, so you can be sure that you’re putting your time and effort into something viable and proven. Whether you’re a college student, a work-at-home parent, or simply someone looking to start a business , remember there are plenty of opportunities to earn a sizable income.
Want to learn more?
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The importance of a business plan
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Business plans are like road maps: it’s possible to travel without one, but that will only increase the odds of getting lost along the way.
Owners with a business plan see growth 30% faster than those without one, and 71% of the fast-growing companies have business plans . Before we get into the thick of it, let’s define and go over what a business plan actually is.
What is a business plan?
A business plan is a 15-20 page document that outlines how you will achieve your business objectives and includes information about your product, marketing strategies, and finances. You should create one when you’re starting a new business and keep updating it as your business grows.
Rather than putting yourself in a position where you may have to stop and ask for directions or even circle back and start over, small business owners often use business plans to help guide them. That’s because they help them see the bigger picture, plan ahead, make important decisions, and improve the overall likelihood of success.
Why is a business plan important?
A well-written business plan is an important tool because it gives entrepreneurs and small business owners, as well as their employees, the ability to lay out their goals and track their progress as their business begins to grow. Business planning should be the first thing done when starting a new business. Business plans are also important for attracting investors so they can determine if your business is on the right path and worth putting money into.
Business plans typically include detailed information that can help improve your business’s chances of success, like:
- A market analysis : gathering information about factors and conditions that affect your industry
- Competitive analysis : evaluating the strengths and weaknesses of your competitors
- Customer segmentation : divide your customers into different groups based on specific characteristics to improve your marketing
- Marketing: using your research to advertise your business
- Logistics and operations plans : planning and executing the most efficient production process
- Cash flow projection : being prepared for how much money is going into and out of your business
- An overall path to long-term growth
What is the purpose of a business plan?
A business plan is like a map for small business owners, showing them where to go and how to get there. Its main purposes are to help you avoid risks, keep everyone on the same page, plan finances, check if your business idea is good, make operations smoother, and adapt to changes. It's a way for small business owners to plan, communicate, and stay on track toward their goals.
10 reasons why you need a business plan
I know what you’re thinking: “Do I really need a business plan? It sounds like a lot of work, plus I heard they’re outdated and I like figuring things out as I go...”.
The answer is: yes, you really do need a business plan! As entrepreneur Kevin J. Donaldson said, “Going into business without a business plan is like going on a mountain trek without a map or GPS support—you’ll eventually get lost and starve! Though it may sound tedious and time-consuming, business plans are critical to starting your business and setting yourself up for success.
To outline the importance of business plans and make the process sound less daunting, here are 10 reasons why you need one for your small business.
1. To help you with critical decisions
The primary importance of a business plan is that they help you make better decisions. Entrepreneurship is often an endless exercise in decision making and crisis management. Sitting down and considering all the ramifications of any given decision is a luxury that small businesses can’t always afford. That’s where a business plan comes in.
Building a business plan allows you to determine the answer to some of the most critical business decisions ahead of time.
Creating a robust business plan is a forcing function—you have to sit down and think about major components of your business before you get started, like your marketing strategy and what products you’ll sell. You answer many tough questions before they arise. And thinking deeply about your core strategies can also help you understand how those decisions will impact your broader strategy.
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2. To iron out the kinks
Putting together a business plan requires entrepreneurs to ask themselves a lot of hard questions and take the time to come up with well-researched and insightful answers. Even if the document itself were to disappear as soon as it’s completed, the practice of writing it helps to articulate your vision in realistic terms and better determine if there are any gaps in your strategy.
3. To avoid the big mistakes
Only about half of small businesses are still around to celebrate their fifth birthday . While there are many reasons why small businesses fail, many of the most common are purposefully addressed in business plans.
According to data from CB Insights , some of the most common reasons businesses fail include:
- No market need : No one wants what you’re selling.
- Lack of capital : Cash flow issues or businesses simply run out of money.
- Inadequate team : This underscores the importance of hiring the right people to help you run your business.
- Stiff competition : It’s tough to generate a steady profit when you have a lot of competitors in your space.
- Pricing : Some entrepreneurs price their products or services too high or too low—both scenarios can be a recipe for disaster.
The exercise of creating a business plan can help you avoid these major mistakes. Whether it’s cash flow forecasts or a product-market fit analysis , every piece of a business plan can help spot some of those potentially critical mistakes before they arise. For example, don’t be afraid to scrap an idea you really loved if it turns out there’s no market need. Be honest with yourself!
Get a jumpstart on your business plan by creating your own cash flow projection .
4. To prove the viability of the business
Many businesses are created out of passion, and while passion can be a great motivator, it’s not a great proof point.
Planning out exactly how you’re going to turn that vision into a successful business is perhaps the most important step between concept and reality. Business plans can help you confirm that your grand idea makes sound business sense.
![good product for business plan A graphic showing you a “Business Plan Outline.” There are four sections on the left side: Executive Summary at the top, Company Description below it, followed by Market Analysis, and lastly Organization and Management. There was four sections on the right side. At the top: “Service or Product Line.” Below that, “Marketing and Sales.” Below that, “Funding Request.” And lastly: “Financial Projections.” At the very bottom below the left and right columns is a section that says “Appendix.](https://cdn.prod.website-files.com/6253f6e60f27498e7d4a1e46/626280e66961718223568f03_business-plan-outline.png)
A critical component of your business plan is the market research section. Market research can offer deep insight into your customers, your competitors, and your chosen industry. Not only can it enlighten entrepreneurs who are starting up a new business, but it can also better inform existing businesses on activities like marketing, advertising, and releasing new products or services.
Want to prove there’s a market gap? Here’s how you can get started with market research.
5. To set better objectives and benchmarks
Without a business plan, objectives often become arbitrary, without much rhyme or reason behind them. Having a business plan can help make those benchmarks more intentional and consequential. They can also help keep you accountable to your long-term vision and strategy, and gain insights into how your strategy is (or isn’t) coming together over time.
6. To communicate objectives and benchmarks
Whether you’re managing a team of 100 or a team of two, you can’t always be there to make every decision yourself. Think of the business plan like a substitute teacher, ready to answer questions any time there’s an absence. Let your staff know that when in doubt, they can always consult the business plan to understand the next steps in the event that they can’t get an answer from you directly.
Sharing your business plan with team members also helps ensure that all members are aligned with what you’re doing, why, and share the same understanding of long-term objectives.
7. To provide a guide for service providers
Small businesses typically employ contractors , freelancers, and other professionals to help them with tasks like accounting , marketing, legal assistance, and as consultants. Having a business plan in place allows you to easily share relevant sections with those you rely on to support the organization, while ensuring everyone is on the same page.
8. To secure financing
Did you know you’re 2.5x more likely to get funded if you have a business plan?If you’re planning on pitching to venture capitalists, borrowing from a bank, or are considering selling your company in the future, you’re likely going to need a business plan. After all, anyone that’s interested in putting money into your company is going to want to know it’s in good hands and that it’s viable in the long run. Business plans are the most effective ways of proving that and are typically a requirement for anyone seeking outside financing.
Learn what you need to get a small business loan.
9. To better understand the broader landscape
No business is an island, and while you might have a strong handle on everything happening under your own roof, it’s equally important to understand the market terrain as well. Writing a business plan can go a long way in helping you better understand your competition and the market you’re operating in more broadly, illuminate consumer trends and preferences, potential disruptions and other insights that aren’t always plainly visible.
10. To reduce risk
Entrepreneurship is a risky business, but that risk becomes significantly more manageable once tested against a well-crafted business plan. Drawing up revenue and expense projections, devising logistics and operational plans, and understanding the market and competitive landscape can all help reduce the risk factor from an inherently precarious way to make a living. Having a business plan allows you to leave less up to chance, make better decisions, and enjoy the clearest possible view of the future of your company.
Business plan FAQs
How does having a business plan help small business owners make better decisions.
Having a business plan supports small business owners in making smarter decisions by providing a structured framework to assess all parts of their businesses. It helps you foresee potential challenges, identify opportunities, and set clear objectives. Business plans help you make decisions across the board, including market strategies, financial management, resource allocation, and growth planning.
What industry-specific issues can business plans help tackle?
Business plans can address industry-specific challenges like regulatory compliance, technological advancements, market trends, and competitive landscape. For instance, in highly regulated industries like healthcare or finance, a comprehensive business plan can outline compliance measures and risk management strategies.
How can small business owners use their business plans to pitch investors or apply for loans?
In addition to attracting investors and securing financing, small business owners can leverage their business plans during pitches or loan applications by focusing on key elements that resonate with potential stakeholders. This includes highlighting market analysis, competitive advantages, revenue projections, and scalability plans. Presenting a well-researched and data-driven business plan demonstrates credibility and makes investors or lenders feel confident about your business’s potential health and growth.
Understanding the importance of a business plan
Now that you have a solid grasp on the “why” behind business plans, you can confidently move forward with creating your own.
Remember that a business plan will grow and evolve along with your business, so it’s an important part of your whole journey—not just the beginning.
Related Posts
Now that you’ve read up on the purpose of a business plan, check out our guide to help you get started.
The information and tips shared on this blog are meant to be used as learning and personal development tools as you launch, run and grow your business. While a good place to start, these articles should not take the place of personalized advice from professionals. As our lawyers would say: “All content on Wave’s blog is intended for informational purposes only. It should not be considered legal or financial advice.” Additionally, Wave is the legal copyright holder of all materials on the blog, and others cannot re-use or publish it without our written consent.
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How To Start A Business In 11 Steps (2024 Guide)
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Updated: Apr 7, 2024, 1:44pm
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Table of Contents
Before you begin: get in the right mindset, 1. determine your business concept, 2. research your competitors and market, 3. create your business plan, 4. choose your business structure, 5. register your business and get licenses, 6. get your finances in order, 7. fund your business, 8. apply for business insurance, 9. get the right business tools, 10. market your business, 11. scale your business, what are the best states to start a business, bottom line, frequently asked questions (faqs).
Starting a business is one of the most exciting and rewarding experiences you can have. But where do you begin? There are several ways to approach creating a business, along with many important considerations. To help take the guesswork out of the process and improve your chances of success, follow our comprehensive guide on how to start a business. We’ll walk you through each step of the process, from defining your business idea to registering, launching and growing your business.
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The public often hears about overnight successes because they make for a great headline. However, it’s rarely that simple—they don’t see the years of dreaming, building and positioning before a big public launch. For this reason, remember to focus on your business journey and don’t measure your success against someone else’s.
Consistency Is Key
New business owners tend to feed off their motivation initially but get frustrated when that motivation wanes. This is why it’s essential to create habits and follow routines that power you through when motivation goes away.
Take the Next Step
Some business owners dive in headfirst without looking and make things up as they go along. Then, there are business owners who stay stuck in analysis paralysis and never start. Perhaps you’re a mixture of the two—and that’s right where you need to be. The best way to accomplish any business or personal goal is to write out every possible step it takes to achieve the goal. Then, order those steps by what needs to happen first. Some steps may take minutes while others take a long time. The point is to always take the next step.
Most business advice tells you to monetize what you love, but it misses two other very important elements: it needs to be profitable and something you’re good at. For example, you may love music, but how viable is your business idea if you’re not a great singer or songwriter? Maybe you love making soap and want to open a soap shop in your small town that already has three close by—it won’t be easy to corner the market when you’re creating the same product as other nearby stores.
If you don’t have a firm idea of what your business will entail, ask yourself the following questions:
- What do you love to do?
- What do you hate to do?
- Can you think of something that would make those things easier?
- What are you good at?
- What do others come to you for advice about?
- If you were given ten minutes to give a five-minute speech on any topic, what would it be?
- What’s something you’ve always wanted to do, but lacked resources for?
These questions can lead you to an idea for your business. If you already have an idea, they might help you expand it. Once you have your idea, measure it against whether you’re good at it and if it’s profitable.
Your business idea also doesn’t have to be the next Scrub Daddy or Squatty Potty. Instead, you can take an existing product and improve upon it. You can also sell a digital product so there’s little overhead.
What Kind of Business Should You Start?
Before you choose the type of business to start, there are some key things to consider:
- What type of funding do you have?
- How much time do you have to invest in your business?
- Do you prefer to work from home or at an office or workshop?
- What interests and passions do you have?
- Can you sell information (such as a course), rather than a product?
- What skills or expertise do you have?
- How fast do you need to scale your business?
- What kind of support do you have to start your business?
- Are you partnering with someone else?
- Does the franchise model make more sense to you?
Consider Popular Business Ideas
Not sure what business to start? Consider one of these popular business ideas:
- Start a Franchise
- Start a Blog
- Start an Online Store
- Start a Dropshipping Business
- Start a Cleaning Business
- Start a Bookkeeping Business
- Start a Clothing Business
- Start a Landscaping Business
- Start a Consulting Business
- Start a Photography Business
- Start a Vending Machine Business
Most entrepreneurs spend more time on their products than they do getting to know the competition. If you ever apply for outside funding, the potential lender or partner wants to know: what sets you (or your business idea) apart? If market analysis indicates your product or service is saturated in your area, see if you can think of a different approach. Take housekeeping, for example—rather than general cleaning services, you might specialize in homes with pets or focus on garage cleanups.
Primary Research
The first stage of any competition study is primary research, which entails obtaining data directly from potential customers rather than basing your conclusions on past data. You can use questionnaires, surveys and interviews to learn what consumers want. Surveying friends and family isn’t recommended unless they’re your target market. People who say they’d buy something and people who do are very different. The last thing you want is to take so much stock in what they say, create the product and flop when you try to sell it because all of the people who said they’d buy it don’t because the product isn’t something they’d buy.
Secondary Research
Utilize existing sources of information, such as census data, to gather information when you do secondary research. The current data may be studied, compiled and analyzed in various ways that are appropriate for your needs but it may not be as detailed as primary research.
Conduct a SWOT Analysis
SWOT stands for strengths, weaknesses, opportunities and threats. Conducting a SWOT analysis allows you to look at the facts about how your product or idea might perform if taken to market, and it can also help you make decisions about the direction of your idea. Your business idea might have some weaknesses that you hadn’t considered or there may be some opportunities to improve on a competitor’s product.
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Asking pertinent questions during a SWOT analysis can help you identify and address weaknesses before they tank your new business.
A business plan is a dynamic document that serves as a roadmap for establishing a new business. This document makes it simple for potential investors, financial institutions and company management to understand and absorb. Even if you intend to self-finance, a business plan can help you flesh out your idea and spot potential problems. When writing a well-rounded business plan, include the following sections:
- Executive summary: The executive summary should be the first item in the business plan, but it should be written last. It describes the proposed new business and highlights the goals of the company and the methods to achieve them.
- Company description: The company description covers what problems your product or service solves and why your business or idea is best. For example, maybe your background is in molecular engineering, and you’ve used that background to create a new type of athletic wear—you have the proper credentials to make the best material.
- Market analysis: This section of the business plan analyzes how well a company is positioned against its competitors. The market analysis should include target market, segmentation analysis, market size, growth rate, trends and a competitive environment assessment.
- Organization and structure: Write about the type of business organization you expect, what risk management strategies you propose and who will staff the management team. What are their qualifications? Will your business be a single-member limited liability company (LLC) or a corporation ?
- Mission and goals: This section should contain a brief mission statement and detail what the business wishes to accomplish and the steps to get there. These goals should be SMART (specific, measurable, action-orientated, realistic and time-bound).
- Products or services: This section describes how your business will operate. It includes what products you’ll offer to consumers at the beginning of the business, how they compare to existing competitors, how much your products cost, who will be responsible for creating the products, how you’ll source materials and how much they cost to make.
- Background summary: This portion of the business plan is the most time-consuming to write. Compile and summarize any data, articles and research studies on trends that could positively and negatively affect your business or industry.
- Marketing plan: The marketing plan identifies the characteristics of your product or service, summarizes the SWOT analysis and analyzes competitors. It also discusses how you’ll promote your business, how much money will be spent on marketing and how long the campaign is expected to last.
- Financial plan: The financial plan is perhaps the core of the business plan because, without money, the business will not move forward. Include a proposed budget in your financial plan along with projected financial statements, such as an income statement, a balance sheet and a statement of cash flows. Usually, five years of projected financial statements are acceptable. This section is also where you should include your funding request if you’re looking for outside funding.
Learn more: Download our free simple business plan template .
Come Up With an Exit Strategy
An exit strategy is important for any business that is seeking funding because it outlines how you’ll sell the company or transfer ownership if you decide to retire or move on to other projects. An exit strategy also allows you to get the most value out of your business when it’s time to sell. There are a few different options for exiting a business, and the best option for you depends on your goals and circumstances.
The most common exit strategies are:
- Selling the business to another party
- Passing the business down to family members
- Liquidating the business assets
- Closing the doors and walking away
Develop a Scalable Business Model
As your small business grows, it’s important to have a scalable business model so that you can accommodate additional customers without incurring additional costs. A scalable business model is one that can be replicated easily to serve more customers without a significant increase in expenses.
Some common scalable business models are:
- Subscription-based businesses
- Businesses that sell digital products
- Franchise businesses
- Network marketing businesses
Start Planning for Taxes
One of the most important things to do when starting a small business is to start planning for taxes. Taxes can be complex, and there are several different types of taxes you may be liable for, including income tax, self-employment tax, sales tax and property tax. Depending on the type of business you’re operating, you may also be required to pay other taxes, such as payroll tax or unemployment tax.
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When structuring your business, it’s essential to consider how each structure impacts the amount of taxes you owe, daily operations and whether your personal assets are at risk.
An LLC limits your personal liability for business debts. LLCs can be owned by one or more people or companies and must include a registered agent . These owners are referred to as members.
- LLCs offer liability protection for the owners
- They’re one of the easiest business entities to set up
- You can have a single-member LLC
- You may be required to file additional paperwork with your state on a regular basis
- LLCs can’t issue stock
- You’ll need to pay annual filing fees to your state
Limited Liability Partnership (LLP)
An LLP is similar to an LLC but is typically used for licensed business professionals such as an attorney or accountant. These arrangements require a partnership agreement.
- Partners have limited liability for the debts and actions of the LLP
- LLPs are easy to form and don’t require much paperwork
- There’s no limit to the number of partners in an LLP
- Partners are required to actively take part in the business
- LLPs can’t issue stock
- All partners are personally liable for any malpractice claims against the business
Sole Proprietorship
If you start a solo business, you might consider a sole proprietorship . The company and the owner, for legal and tax purposes, are considered the same. The business owner assumes liability for the business. So, if the business fails, the owner is personally and financially responsible for all business debts.
- Sole proprietorships are easy to form
- There’s no need to file additional paperwork with your state
- You’re in complete control of the business
- You’re personally liable for all business debts
- It can be difficult to raise money for a sole proprietorship
- The business may have a limited lifespan
Corporation
A corporation limits your personal liability for business debts just as an LLC does. A corporation can be taxed as a C corporation (C-corp) or an S corporation (S-corp). S-corp status offers pass-through taxation to small corporations that meet certain IRS requirements. Larger companies and startups hoping to attract venture capital are usually taxed as C-corps.
- Corporations offer liability protection for the owners
- The life span of a corporation is not limited
- A corporation can have an unlimited number of shareholders
- Corporations are subject to double taxation
- They’re more expensive and complicated to set up than other business structures
- The shareholders may have limited liability
Before you decide on a business structure, discuss your situation with a small business accountant and possibly an attorney, as each business type has different tax treatments that could affect your bottom line.
Helpful Resources
- How To Set Up an LLC in 7 Steps
- How To Start a Sole Proprietorship
- How To Start a Corporation
- How To Start a Nonprofit
- How To Start a 501(c)(3)
There are several legal issues to address when starting a business after choosing the business structure. The following is a good checklist of items to consider when establishing your business:
Choose Your Business Name
Make it memorable but not too difficult. Choose the same domain name, if available, to establish your internet presence. A business name cannot be the same as another registered company in your state, nor can it infringe on another trademark or service mark that is already registered with the United States Patent and Trademark Office (USPTO).
Business Name vs. DBA
There are business names, and then there are fictitious business names known as “Doing Business As” or DBA. You may need to file a DBA if you’re operating under a name that’s different from the legal name of your business. For example, “Mike’s Bike Shop” is doing business as “Mike’s Bikes.” The legal name of the business is “Mike’s Bike Shop,” and “Mike’s Bikes” is the DBA.
You may need to file a DBA with your state, county or city government offices. The benefits of a DBA include:
- It can help you open a business bank account under your business name
- A DBA can be used as a “trade name” to brand your products or services
- A DBA can be used to get a business license
Register Your Business and Obtain an EIN
You’ll officially create a corporation, LLC or other business entity by filing forms with your state’s business agency―usually the Secretary of State. As part of this process, you’ll need to choose a registered agent to accept legal documents on behalf of your business. You’ll also pay a filing fee. The state will send you a certificate that you can use to apply for licenses, a tax identification number (TIN) and business bank accounts.
Next, apply for an employer identification number (EIN) . All businesses, other than sole proprietorships with no employees, must have a federal employer identification number. Submit your application to the IRS and you’ll typically receive your number in minutes.
Get Appropriate Licenses and Permits
Legal requirements are determined by your industry and jurisdiction. Most businesses need a mixture of local, state and federal licenses to operate. Check with your local government office (and even an attorney) for licensing information tailored to your area.
- Best LLC Services
- How To Register a Business Name
- How To Register a DBA
- How To Get an EIN for an LLC
- How To Get a Business License
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Open a Business Bank Account
Keep your business and personal finances separate. Here’s how to choose a business checking account —and why separate business accounts are essential. When you open a business bank account, you’ll need to provide your business name and your business tax identification number (EIN). This business bank account can be used for your business transactions, such as paying suppliers or invoicing customers. Most times, a bank will require a separate business bank account to issue a business loan or line of credit.
Hire a Bookkeeper or Get Accounting Software
If you sell a product, you need an inventory function in your accounting software to manage and track inventory. The software should have ledger and journal entries and the ability to generate financial statements.
Some software programs double as bookkeeping tools. These often include features such as check writing and managing receivables and payables. You can also use this software to track your income and expenses, generate invoices, run reports and calculate taxes.
There are many bookkeeping services available that can do all of this for you, and more. These services can be accessed online from any computer or mobile device and often include features such as bank reconciliation and invoicing. Check out the best accounting software for small business, or see if you want to handle the bookkeeping yourself.
Determine Your Break-Even Point
Before you fund your business, you must get an idea of your startup costs. To determine these, make a list of all the physical supplies you need, estimate the cost of any professional services you will require, determine the price of any licenses or permits required to operate and calculate the cost of office space or other real estate. Add in the costs of payroll and benefits, if applicable.
Businesses can take years to turn a profit, so it’s better to overestimate the startup costs and have too much money than too little. Many experts recommend having enough cash on hand to cover six months of operating expenses.
When you know how much you need to get started with your business, you need to know the point at which your business makes money. This figure is your break-even point.
In contrast, the contribution margin = total sales revenue – cost to make product
For example, let’s say you’re starting a small business that sells miniature birdhouses for fairy gardens. You have determined that it will cost you $500 in startup costs. Your variable costs are $0.40 per birdhouse produced, and you sell them for $1.50 each.
Let’s write these out so it’s easy to follow:
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Describe Your Services or Products. The business plan should have a section that explains the services or products that you're offering. This is the part where you can also describe how they fit ...
7 business plan examples: section by section. The business plan examples in this article follow this template: Executive summary. An introductory overview of your business. Company description. A more in-depth and detailed description of your business and why it exists. Market analysis.
Feasibility business plans focus on that business's product or service. Feasibility plans are sometimes added to startup business plans. They can also be a new business plan for an already thriving organization. ... This is a good business plan example for service-based businesses such as gyms, boxing classes, dancing studios, etc. For starters ...
1. Create Your Executive Summary. The executive summary is a snapshot of your business or a high-level overview of your business purposes and plans. Although the executive summary is the first section in your business plan, most people write it last. The length of the executive summary is not more than two pages.
Most business plans also include financial forecasts for the future. These set sales goals, budget for expenses, and predict profits and cash flow. A good business plan is much more than just a document that you write once and forget about. It's also a guide that helps you outline and achieve your goals. After completing your plan, you can ...
Tips on Writing a Business Plan. 1. Be clear and concise: Keep your language simple and straightforward. Avoid jargon and overly technical terms. A clear and concise business plan is easier for investors and stakeholders to understand and demonstrates your ability to communicate effectively. 2.
How to Write a Business Plan Step 1. Create a Cover Page. The first thing investors will see is the cover page for your business plan. Make sure it looks professional. A great cover page shows that you think about first impressions. A good business plan should have the following elements on a cover page:
While your plan will be unique to your business and goals, keep these tips in mind as you write. 1. Know your audience. When you know who will be reading your plan—even if you're just writing it for yourself to clarify your ideas—you can tailor the language and level of detail to them.
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.
Traditional business plans use some combination of these nine sections. Executive summary. Briefly tell your reader what your company is and why it will be successful. Include your mission statement, your product or service, and basic information about your company's leadership team, employees, and location.
The steps below will guide you through the process of creating a business plan and what key components you need to include. 1. Create an executive summary. Start with a brief overview of your entire plan. The executive summary should cover your business plan's main points and key takeaways.
Significance of a business plan. All product organizations have started seeing the importance of a business plan before approving a new product idea. A good business plan has numerous benefits, the most fundamental being an opportunity to think through the idea before investing time and resources. The following are the key traits of a good ...
Marketing plan: A strategic outline of how you plan to market and promote your business before, during, and after your company launches into the market. Logistics and operations plan: An explanation of the systems, processes, and tools that are needed to run your business in the background. Financial plan: A map of your short-term (and even ...
Step #3: Conduct Your Market Analysis. Step #4: Research Your Competition. Step #5: Outline Your Products or Services. Step #6: Summarize Your Financial Plan. Step #7: Determine Your Marketing Strategy. Step #8: Showcase Your Organizational Chart. 14 Business Plan Templates to Help You Get Started.
Business Plan: A business plan is a written document that describes in detail how a business, usually a new one, is going to achieve its goals. A business plan lays out a written plan from a ...
For a thorough explanation of how to write a business plan, refer to Shopify's guide. 12 components of a business plan. Business plans vary depending on the product or service. Some entrepreneurs choose to use diagrams and charts, while others rely on text alone. Regardless of how you go about it, good business plans tend to include the ...
1. Investors Are Short On Time. If your chief goal is using your business plan to secure funding, then it means you intend on getting it in front of an investor. And if there's one thing investors are, it's busy. So keep this in mind throughout writing a business plan.
Step 2: Do your market research homework. The next step in writing a business plan is to conduct market research. This involves gathering information about your target market (or customer persona), your competition, and the industry as a whole. You can use a variety of research methods such as surveys, focus groups, and online research to ...
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.
Early on, your business is more of an idea than a reality, so your business plan can help prospective employees understand your goals--and, more important, their place in helping you achieve those ...
The second measure of a good or bad business plan is realism. You don't get points for ideas that can't be implemented. Setting unrealistic and unachievable goals is a waste of time. For example, a brilliantly written, beautifully formatted, and excellently researched business plan for a product that can't be built is not a good business ...
This section of your simple business plan template explores how to structure and operate your business. Details include the type of business organization your startup will take, roles and ...
To attract clients, target a niche audience, leverage past experiences, and highlight your success stories. With monthly retainers of $500 to $1,000, selling SEO services is one of the best business ideas to make money in 2024. 33. App development. App development is one of the best profitable small business ideas, since so many companies ...
A critical component of your business plan is the market research section. Market research can offer deep insight into your customers, your competitors, and your chosen industry. Not only can it enlighten entrepreneurs who are starting up a new business, but it can also better inform existing businesses on activities like marketing, advertising, and releasing new products or services.
The best way to accomplish any business or personal goal is to write out every possible step it takes to achieve the goal. Then, order those steps by what needs to happen first. Some steps may ...
2. Products and services. Start the products and services section of your business plan by describing the problem you are solving for your customer. Next, describe how you solve that problem with your product or service. If you've already made some headway selling your solution, detail that progress here—this is called "traction".
The four Ps are a "marketing mix" comprised of four key elements—product, price, place, and promotion—used when marketing a product or service. Typically, successful marketers and businesses consider the four Ps when creating marketing plans and strategies to effectively market to their target audience. Although there are many other ...
Our template steps you through the process of developing a succession plan with links to extra information if you need it. You may want to check our tips below before you start. 1. Analyse your market. 2. Set your goals and objectives. 3. Outline your marketing strategies. 4.
Our free business plan template includes seven key elements typically found in the traditional business plan format: 1. Executive summary. This is a one-page summary of your whole plan, typically written after the rest of the plan is completed. The description section of your executive summary will also cover your management team, business ...
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