keys to success for business plan

5 Keys to Success in Your Business Plan

Written by Dave Lavinsky

The right business plan will allow you to:

• Create better business strategies
• Create a clear roadmap to grow your business
• Raise funding (if needed)

The five tips below will guide you to a stronger business plan that is more likely to achieve these goals.

Download our Ultimate Business Plan Template here

1. Research Before Writing Your Plan

Before putting pen to paper on the business plan itself, there is a significant amount of research needed. The research into the opportunity may uncover challenges you will have to face, in which case your plan must address those. You may find opportunities for additional customer segments you were unaware of. You may also find that the challenges will be very difficult to overcome and your idea must be drastically altered or discarded. Now is the time to make that decision, before you have poured weeks and weeks into a business plan.

2. Show a Clear Market Opportunity

Showing a clear market opportunity in your plan requires both a description of customers who need your product or service and competitors against whom you can build a competitive advantage. You must prove the size of the market is large enough to sustain growth, even if new competitors arise. You must show that your strengths will take advantage of the weaknesses of your competitors, allowing you to compete on qualities beyond price whenever possible.

3. Fill Logical Holes In Your Plan

The business plan is a logical argument, showing an opportunity, the resources you have or will have to take advantage of that opportunity (management team, intellectual property, cash, location, etc), the methods you will use to do so (your marketing and operations plans), and the results you expect to see (your financial projections and growth) which funders (including VC funding , angel investors and banks) can take part in.

Each of these four pieces must be coordinated with the others, and holes in the logic must be filled and not ignored. For example, the financial results or rewards must be appropriate for the inherent risk you face in taking on the opportunity.

4. Explain Your Financial Assumptions

Financial assumptions which drive the revenues and costs of your financial plan must be explained at some point in your plan. What these assumptions are and their validity should not be left up to the imagination of the reader, as he or she will likely imagine that unexplained assumptions are based on nothing but the entrepreneur’s extreme optimism.

5. Use a Standard Business Plan Format and Structure

The format and structure of the business plan must be professional, clean, and close to the standards used by business plan writers. This means referring to direction on the proper business plan format and outline and not using creativity in these areas. Creativity can certainly enter into the marketing and operations sections, but the plan should not have a distracting format or structure.

Our fill in the blank business plan delineates the 10 key sections you must include in your plan, but they are listed below too for your reference:

I. Executive Summary : in your business plan’s executive summary , provide an overview of your business, list your success factors (that is, what makes you uniquely qualified to succeed), and provide an overview of your financial plan (what are your topline financial projections for the next five years, and if you need funding, how much and for what uses.

II. Company Overview : discuss your company’s history and answer the following questions:

• When did you conceive your business?
• When did you start it?
• What type of business are you (e.g., C-corp, sole proprietorship)?
• What accomplishments have you achieved to date (e.g., developments, sales goals, new store opening, etc.)?

III. Industry Analysis : provide an overview of your market in terms of your market size and trends. Also detail your relevant market size which is the number of customers in your target market multiplied by the amount they might reasonably spend on your product/service each year.

IV. Customer Analysis : in the customer analysis section, discuss who your target customers are and their wants and needs.

V. Competitive Analysis : define your direct competitors and strengths and weaknesses of each. Give an overview of your indirect competitors. Define your areas of competitive advantages.

VI.  Marketing Plan : in your marketing plan, discuss your products, services and their pricing. Discuss the promotional methods you’ll use to attract new customers. Finally, discuss your distribution plan if customers will purchase from you in ways other than visiting your storefront or website (e.g., via distributors).

VII. Operations Plan : Here you will describe the key operational processes you need to perform on an ongoing basis to run your business. Also discuss the key milestones you hope to achieve as you grow your business.

VIII. Management Team : in this section of your plan, discuss the bios of your key management team members, mention any gaps you still need to fill, and if applicable, profile the members of your Board.

IX. Financial Plan : describe how you generate revenue, show your financial projections for the next five years, explain if you need funding and and so, how much and for what purposes, and discuss your exit strategy if you’re seeking equity financing.

X. Appendix : provide any supporting documentation such as customer lists, lease agreements, patents, etc.

Including each of these business plan components is critical to ensuring your plan is complete and ready to be implemented.

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Other Helpful Business Plan Articles & Templates

How to Write the Perfect Business Plan: 10 Essential Steps

Whether you’re starting a new small business or are already years into operating one, a business plan is one of the best ways to clarify your long-term vision. Follow our step-by-step guide to writing a highly effective business plan.

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hether you’re starting a new small business or are already years into operating one, a business plan is one of the best ways to clarify your long-term vision. While every business plan is different, there are several key elements to consider that will benefit you in the long run. 

Follow our step-by-step guide to writing a highly effective business plan. 

What is a business plan?

A business plan is a document that outlines your business goals and how you plan to achieve them. Ideally, this will become your roadmap for marketing, sales, finance, and growth. 

In other words, a business plan is...

• An explanation of your overall vision.
• A valuable tool to plan and track your business fundamentals.
• An overview of your path to profitability, which can help get funding for your company.

Do You Need A Business Plan?

While it’s not a requirement, having a business plan is strongly recommended. In a recent QuickBooks survey , nearly 70% of current business owners recommended writing a business plan.

Creating a business plan is especially useful in the following scenarios:

• Applying for business loans
• Seeking additional rounds of funding or investors 
• Growing your employee headcount  
• Attracting top-level management candidates 
• Looking for opportunities to scale your business

10 Steps To Creating A Comprehensive Business Plan

While not every business plan is the same, there are a few key steps you should take to create an effective and comprehensive document:

1. Create an executive summary

Think of an executive summary as your company's elevator pitch in written form. It should be 1 to 2 pages in length and summarize important information about your company and goals. If you are pitching your business plan to get funding, you should ensure your executive summary appeals to investors.

What should you include in an executive summary?

• An overview of your business
• Your company mission statement
• A concise description of products or services offered
• A description of your target market and customer demographics
• A brief analysis of your competition
• Financial projections and funding requirements
• Information about your management team
• Future plans and growth opportunities
• An overall summary of your business plan

2. Write your company description

Your company description is a more detailed and comprehensive explanation of your business. It should provide a thorough overview of your company, including your company history, your mission, your objectives, and your vision. A company description should help the reader understand the context and background of the business, as well as the key factors that contribute to its success.

What should you include in your company description?

• Official company name 
• Type of business structure
• Physical address(es)
• Company history and background information
• Mission statement and core values
• Management team members and their qualifications
• Products and services offered
• Target market and customer segmentation
• Marketing and sales strategy
• Goals (both short- and long-term)
• Vision statement

Novo Note : The company description is your chance to expound on the pain points your company solves. It should also give a reader an accurate impression of who you are. 

3. Conduct and outline market analysis

This is one of the most important steps in building a business plan. Here, you will assess the size and dynamics of the market your business operates in.

How to conduct a market analysis

Market analyses include both quantitative and qualitative data. You may want to conduct surveys or lean on existing industry research to gather this information. You’ll want to answer:

• What is the size of the market?
• How much revenue does your industry generate?
• What trends are impacting this industry?
• Where are opportunities for innovation?
• What are the most well-known companies in the industry? What tactics do they use to sell to customers? How do they price their offering?
• Where are there gaps in the market? 
• What are your customer demographics? What problems do they have that need solving? What are their values, desires, and purchasing habits?
• What barriers to entry, if any, exist? These could include startup costs, legal requirements, environmental conditions that impact consumer behavior, and market saturation.

What is your target market?

In this section, you will specify the customer segment(s) you’re targeting . You can divide customers into small segments organized by age, location, income, and lifestyle. The goal is to describe what type of consumer will be most interested in your offering.

Novo Note : Regardless of your company’s size, understanding the trends and opportunities within your target market enables you to build a more effective marketing plan to distinguish yourself from the marketplace and grow your business. This analysis might also help you find potential customers or new products you could offer. 

4. Analyze your competitors

After conducting a market analysis, you need to do a deep dive into your competitors. Look at how the competition is succeeding or failing and how each competitor has positioned itself. For example, you might want to evaluate your competitors’ brand, pricing, and distribution strategies. 

How to conduct a competitive analysis

You’ll want to research your competitors and ask the following questions:

• What are their strengths?
• What are their weaknesses?
• What are their customer reviews like?
• How do they price their offering(s)?
• What are their value propositions?
• What marketing and sales channels do they leverage?
• How are they growing and evolving?

Novo Note : After you develop a strong understanding of the competitive landscape, consider how your business is unique. Solidifying your competitive advantage can help you appeal to your target audience.  

5. Describe your products or services

This is your chance to go into more detail about the products and services you offer! Use this opportunity to note where your offering or service differs from others in the industry. Highlight the standout features of your product, your company’s unique ability to solve customer problems, and your product roadmap.

What to include:

• Your product catalog
• Key differentiating features
• Information about the production process
• The resources required for production
• Plans for future product releases

6. Define your marketing and sales strategy

Your marketing plan describes your strategy for connecting with your target market and generating leads. It doesn't need to be full-fledged at this point, but it should answer who you're trying to sell to and how you plan to target them. Investors also want to know how you plan on selling your brand and breaking into the market, so make sure to consider their perspective as you develop your marketing strategy.

• Your sales and marketing budget
• Your key sales and marketing objectives
• Details about your sales process and sales goals
• Platforms or strategies you’ll employ to reach your target audience
• PR initiatives, content ideas, and social media strategies

7. Gather your business financials and outline financial projections

Your financials section lays out your company's past and current performance. You can also include a roadmap that dives into financial projections for your business. Aim to include projections for the next five years at a minimum.

• Income statements
• Cash flow statements
• Balance sheets
• Explanation of any significant changes

Novo Note : Novo offers integrations with accounting software like Quickbooks and Xero , allowing you to seamlessly access all your financial information within your business checking account .

8. Describe your organization

Your business plan should also include an organizational chart that maps your company’s structure. 

What to include :

• Company’s management structure
• Other key personnel, along with their roles and responsibilities
• Expertise of your team (feature any specialists or experts)

Novo Note : This is also a good place to explain the legal structure of your company — for example, if you are an LLC , a corporation, or a sole proprietorship . 

9. Outline your funding requests

If you’re looking for business funding, include an outline of any funding requests and requirements.

• Why you are requesting funding
• What the funding will be used for specifically
• Desired terms and conditions of funding
• The length of time over which the funding will be used
• Type of funding required (for example, debt or equity)

Novo Note : Propose a five-year funding plan, and aim to be as detailed as possible about how you will utilize the funds to grow your business. 

10. Create an appendix

The last section, the appendix, includes supporting documents and additional information not listed elsewhere in your business plan. Not all of these items are necessary to include, so you’ll need to evaluate which are most relevant to your business. You might also want to include a table of contents to help keep the appendix organized.

Items to consider including:

• Bank statements
• Business credit history
• Legal documents
• Letters of reference

Sample Business Plans

Need an example to help you through the process? Check out the Small Business Administration’s downloadable examples or this even more in-depth one from Harvard Business School.

Tips For Creating A Great Business Plan

Here are some of our favorite tips for creating the most effective and efficient business plan:

• Keep it short and sweet : You want to be sure people will actually read your business plan, so stay on topic and to the point.
• Make it digestible : No need to use the fanciest terminology or draft up the most complex graphs. Keep wording and ideas simple and straightforward — it’s the most impactful way to get your information across.
• Triple-check your work : There’s nothing worse than noticing a grammar, spelling, or mathematical error when you’re presenting your vision. So proofread… and then proofread again!
• Start early : It’s never too late to write a business plan, but the earlier you do it, the stronger your strategy for growth and expansion will be from the start.
• Reference credible sources : If you are going to reference third-party research in your business plan, lean on sources that are widely recognized as authorities. Try tapping into trade associations and government resources, like U.S. Census data or data from the Bureau of Labor Statistics.
• Set yourself apart : Wherever you can, explain why your product or service stands out and how it can solve a problem.
• Be objective : Avoid the instinct to only showcase the good. Stakeholders and investors want to know that you are realistic and have a contingency plan if you hit a bump in the road.

Updating Your Business Plan

As with most situations in business (and life), things change! So don’t think that your business plan has to be set in stone after you create it. Instead, you should plan to return to it once a year and make updates.

Be sure to do the following when you review and update your business plan:

• Analyze your progress: Review your original business plan and compare it to your actual financial data. Are you moving in the right direction, or do you need to reevaluate your strategy?
• Consider whether your product offerings need to be adjusted: For example, decide if you want to diversify your product offerings or scale back and focus on a singular product. 
• Reassess your overall goals: Perhaps your sales goals have changed with your new marketing strategy. Or maybe your customer’s needs have changed. In any case, be flexible where needed. 

We know there’s a lot that goes into creating a business plan, but it’s worth it. There’s no one-size-fits-all formula for developing a business plan, but our steps outlined above will put you on the right track for developing a comprehensive, investor-friendly document.

Take time to review your business plan annually and make changes as your needs and goals change.

Novo Platform Inc. strives to provide accurate information but cannot guarantee that this content is correct, complete, or up-to-date. This page is for informational purposes only and is not financial or legal advice nor an endorsement of any third-party products or services. All products and services are presented without warranty. Novo Platform Inc. does not provide any financial or legal advice, and you should consult your own financial, legal, or tax advisors.

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

Noah Parsons

24 min. read

Updated May 7, 2024

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

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

• The basics of business planning

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

You understand that planning helps you: 

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

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

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

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

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

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

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

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

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

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

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• What to include in your business plan

Executive summary

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

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

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

Your executive summary should include:

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

Dig Deeper: How to write an effective executive summary

Products and services description

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

This is usually called a problem and solution statement .

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

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

Market analysis

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

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

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

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

Related: Target market examples

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

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

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

Dig Deeper: Learn how to write a market analysis

Competitive analysis

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

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

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

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

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

Marketing and sales plan

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

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

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

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

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

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

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

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

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

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

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

Business operations

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

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

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

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

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

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

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

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

Key milestones and metrics

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

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

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

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

Possible milestones might be:

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

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

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

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

Dig Deeper: How to use milestones in your business plan

Organization and management team

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

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

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

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

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

• Sole proprietor
• Partnership

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

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

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

Financial plan

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

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

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

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

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

Dig Deeper: How to create financial forecasts and budgets

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

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

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

Dig Deeper : What to include in your business plan appendix

Optional: Business plan cover page

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

Your cover page should be simple and include:

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

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

Dig Deeper: How to create a business plan cover page

How to use AI to help write your business plan

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

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

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

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

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

• Writing tips and strategies

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

Determine why you are writing a business plan

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

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

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

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

Keep things concise

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

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

Have someone review your business plan

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

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

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

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

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

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

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

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

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

Common pitfalls and how to avoid them

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

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

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

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

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

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

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

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

Use your business plan to manage your business

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

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

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

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

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

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

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

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

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

Learn More: How to run a regular plan review

Free business plan templates and examples

Kickstart your business plan writing with one of our free business plan templates or recommended tools.

Free business plan template

Download a free SBA-approved business plan template built for small businesses and startups.

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One-page plan template

Download a free one-page plan template to write a useful business plan in as little as 30-minutes.

Sample business plan library

Explore over 500 real-world business plan examples from a wide variety of industries.

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How to write a business plan FAQ

What is a business plan?

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

What are the benefits of a business plan?

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

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

What are the 7 steps of a business plan?

The seven steps to writing a business plan include:

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

What are the 5 most common business plan mistakes?

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

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

What questions should be answered in a business plan?

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

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

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

How long should a business plan be?

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

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

What are the different types of business plans?

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

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

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

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

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

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

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

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

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

Table of Contents

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

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Keys to Success in Business from SIXT Corporate

Starting and making a business grow in today’s world is no joke; entrepreneurs need to invest a lot of time, money, and energy in ensuring that their business succeeds. Even before you start a business, it is crucial to understand some of the key factors that can make a business successful.

It is no secret that many businesses tend to fail in the first five years of being open. In fact, according to Investopedia, a whopping 45% of new businesses fail during the first five years of being open. This could be due to factors such as failing to create a viable business model, limited finances, failing to build a strong, reliable team, and failing to identify ways to stand out from the competitors.

What are the 10 keys to a successful business?

Top keys for a successful business.

1. Be organized

It won’t be easier for you to make your business succeed if you are not organized. When you are organized, it will be easy to complete your daily or weekly tasks and stay on top of your to-do list. You should also encourage your staff or team to be organized too. That way, you will be working together as a team to achieve your objective, which ultimately is making the business successful.

2. Analyze your competitors

When you venture into business, you will find that there is a company or individual already selling your products or service; unless, of course, you have brought a completely novel product on the market. But if this is not the case, you will always have competitors. The goal here is to find how you can stand out from them.

You can achieve that by analyzing them. They may be doing something right that you can implement in your business to generate more money. Some of the things you can pay attention to when analyzing your competitors include their price, the marketing tools they use, how they handle customers’ complaints, etc. If you want to achieve business success, do not brush off your competitors—you may learn something vital from them.

3. Understand the risks and rewards

One of the top keys to business success is taking calculated risks. Risks are part and parcel of running a business. They can help you make the right decision and become a better entrepreneur who can take their business to the next level.

4. Be consistent

Consistency is key to success in business. If you are selling products or offering services, make sure that you consistently offer high-quality products and services. This way, your customers will trust you. Once you have established trust with your customers, they are less likely to move to your competition. More sales mean more money, and ultimately, more growth. This makes consistency a crucial business key to success.

5. Hire the right employees

Your employees can either make or break your business. So it’s upon you to choose what you want. If you are focused on making your business succeed, it is crucial to work with the right people. The best way you can achieve that is by making the right hire. You need to hire individuals who are not only qualified but also pay attention to details and fit into your business values and culture.

6. Be willing to make sacrifices for your business

In business, there are situations where you must make sacrifices. Sometimes you will have to work for longer periods and spend less time with your family and friends, or you may have to forego some luxuries to help your business grow. But these sacrifices will be rewarding in the long run. So as an entrepreneur, never be afraid to make sacrifices if you want your business to grow.

7. Be creative

Creativity is also a business key to success. Creativity is all about looking for ways to help your business grow and stand out from the crowd. Of course, when it comes to running a business and striving to become a smart entrepreneur, you have to be open to both new approaches and ideas that can potentially help your business grow. This involves having an open mind and continuously learning and exploring. The more you learn, the more ideas you will explore, which can eventually help you improve your business skills, and ultimately, your business.

8. Keep detailed records

If you want your business to be successful, you must keep detailed records. This is the only way you will know where your business stands financially, whether you are making a profit or not. It can also help you know some of the challenges your business is facing. If you are making losses, you will be able to identify ways to minimize these losses while maximizing profits.

9. Prioritize customer service

Without your customers, your business cannot exist. If you want your business to thrive, you must prioritize them. Offering excellent customer experience is one of the most crucial things you can do to improve your business’s chance of succeeding. Like SIXT’s CEO Erich SIXT so well put it, “We are not doing the customer a favor in our service. The customer is giving us the opportunity to do so.” Once you wrap your head around this principle, you will realize your business can only be driven by your customers’ satisfaction.

10. Remain physically and mentally fit

There is no way you will increase your business’s chance of success if you are physically and mentally unfit. You need to be mentally and physically fit to make the right decisions that will help your business grow. Take a day off to relax and unwind; read a book; do some exercise; meditate.

SIXT as the ultimate business partner to your success

Fortunately, making a business succeed is achievable. So long as you are focused, organized, consistent, know your competitors well, and keep detailed records, you are on the right track. Research shows that only 25% of new businesses can last 15 years or more. Implement the above-mentioned business keys to success and be among that 25%. When your business is up and running, remember it’s only fair to give it the flexibility it needs. Register your company at SIXT and start navigating your business fleet from the comfort of the SIXT app – with benefits dedicated to corporate customers.

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How to Write a Business Plan, Step by Step

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

What is a business plan?

1. write an executive summary, 2. describe your company, 3. state your business goals, 4. describe your products and services, 5. do your market research, 6. outline your marketing and sales plan, 7. perform a business financial analysis, 8. make financial projections, 9. summarize how your company operates, 10. add any additional information to an appendix, business plan tips and resources.

A business plan outlines your business’s financial goals and explains how you’ll achieve them over the next three to five years. Here’s a step-by-step guide to writing a business plan that will offer a strong, detailed road map for your business.

ZenBusiness

A business plan is a document that explains what your business does, how it makes money and who its customers are. Internally, writing a business plan should help you clarify your vision and organize your operations. Externally, you can share it with potential lenders and investors to show them you’re on the right track.

Business plans are living documents; it’s OK for them to change over time. Startups may update their business plans often as they figure out who their customers are and what products and services fit them best. Mature companies might only revisit their business plan every few years. Regardless of your business’s age, brush up this document before you apply for a business loan .

» Need help writing? Learn about the best business plan software .

This is your elevator pitch. It should include a mission statement, a brief description of the products or services your business offers and a broad summary of your financial growth plans.

Though the executive summary is the first thing your investors will read, it can be easier to write it last. That way, you can highlight information you’ve identified while writing other sections that go into more detail.

» MORE: How to write an executive summary in 6 steps

Next up is your company description. This should contain basic information like:

Your business’s registered name.

Address of your business location .

Names of key people in the business. Make sure to highlight unique skills or technical expertise among members of your team.

Your company description should also define your business structure — such as a sole proprietorship, partnership or corporation — and include the percent ownership that each owner has and the extent of each owner’s involvement in the company.

Lastly, write a little about the history of your company and the nature of your business now. This prepares the reader to learn about your goals in the next section.

» MORE: How to write a company overview for a business plan

The third part of a business plan is an objective statement. This section spells out what you’d like to accomplish, both in the near term and over the coming years.

If you’re looking for a business loan or outside investment, you can use this section to explain how the financing will help your business grow and how you plan to achieve those growth targets. The key is to provide a clear explanation of the opportunity your business presents to the lender.

For example, if your business is launching a second product line, you might explain how the loan will help your company launch that new product and how much you think sales will increase over the next three years as a result.

» MORE: How to write a successful business plan for a loan

In this section, go into detail about the products or services you offer or plan to offer.

You should include the following:

An explanation of how your product or service works.

The pricing model for your product or service.

The typical customers you serve.

Your supply chain and order fulfillment strategy.

You can also discuss current or pending trademarks and patents associated with your product or service.

Lenders and investors will want to know what sets your product apart from your competition. In your market analysis section , explain who your competitors are. Discuss what they do well, and point out what you can do better. If you’re serving a different or underserved market, explain that.

Here, you can address how you plan to persuade customers to buy your products or services, or how you will develop customer loyalty that will lead to repeat business.

Include details about your sales and distribution strategies, including the costs involved in selling each product .

» MORE: R e a d our complete guide to small business marketing

If you’re a startup, you may not have much information on your business financials yet. However, if you’re an existing business, you’ll want to include income or profit-and-loss statements, a balance sheet that lists your assets and debts, and a cash flow statement that shows how cash comes into and goes out of the company.

Accounting software may be able to generate these reports for you. It may also help you calculate metrics such as:

Net profit margin: the percentage of revenue you keep as net income.

Current ratio: the measurement of your liquidity and ability to repay debts.

Accounts receivable turnover ratio: a measurement of how frequently you collect on receivables per year.

This is a great place to include charts and graphs that make it easy for those reading your plan to understand the financial health of your business.

This is a critical part of your business plan if you’re seeking financing or investors. It outlines how your business will generate enough profit to repay the loan or how you will earn a decent return for investors.

Here, you’ll provide your business’s monthly or quarterly sales, expenses and profit estimates over at least a three-year period — with the future numbers assuming you’ve obtained a new loan.

Accuracy is key, so carefully analyze your past financial statements before giving projections. Your goals may be aggressive, but they should also be realistic.

NerdWallet’s picks for setting up your business finances:

The best business checking accounts .

The best business credit cards .

The best accounting software .

Before the end of your business plan, summarize how your business is structured and outline each team’s responsibilities. This will help your readers understand who performs each of the functions you’ve described above — making and selling your products or services — and how much each of those functions cost.

If any of your employees have exceptional skills, you may want to include their resumes to help explain the competitive advantage they give you.

Finally, attach any supporting information or additional materials that you couldn’t fit in elsewhere. That might include:

Licenses and permits.

Equipment leases.

Bank statements.

Details of your personal and business credit history, if you’re seeking financing.

If the appendix is long, you may want to consider adding a table of contents at the beginning of this section.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Here are some tips to write a detailed, convincing business plan:

Avoid over-optimism: If you’re applying for a business bank loan or professional investment, someone will be reading your business plan closely. Providing unreasonable sales estimates can hurt your chances of approval.

Proofread: Spelling, punctuation and grammatical errors can jump off the page and turn off lenders and prospective investors. If writing and editing aren't your strong suit, you may want to hire a professional business plan writer, copy editor or proofreader.

Use free resources: SCORE is a nonprofit association that offers a large network of volunteer business mentors and experts who can help you write or edit your business plan. The U.S. Small Business Administration’s Small Business Development Centers , which provide free business consulting and help with business plan development, can also be a resource.

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23 Pro Tips for Running a Successful Business

Published: December 12, 2022

Just about anyone can start a business.

Once you fill out a few forms, get the permits or licenses you need, offer a great product or service, and advertise it, it’s safe to say you’re a business owner.

Running a successful business is an entirely different story. Several factors affect the success of a business. In this article, we’ll share the latest data that you need to know before opening a small business. We'll talk about the factors that impact business success, and a few pro tips on how to run and maintain a thriving business.

Here’s a table of contents to help you navigate the important information you need to know:

What makes a business successful?

What factors can impact business success, business success trends [new data], how to run a business, what does business success look like.

One of the challenges of running a thriving business is that there are many ways to measure success. Each business owner must create their own unique definition, and stick to it.

For many, success means profit. While short-term gains are exciting, long-term wealth and growth are common goals. This may also extend to personal wealth and collecting expensive items like homes or cars. Others assess their value through their ability to solve problems for their customers. And some business owners focus their success on progress toward a dream or mission.

Revenue, gross profit, and cash flow management impact the present and future of every company. But to create sustained value, businesses need to make their own definitions of success.

• Focus on the customer experience.
• A powerful business idea.
• Offering value to your target audience.
• Being flexible and quick to adapt.
• Bold decision-making and creative problem-solving.
• Paying attention.
• Getting out of the office.

The world is changing quickly, and so the strategies and habits that worked in the past don't guarantee success today. You may be starting a business for the first time or working to pivot your company in a new direction. Either way, running a business today means staying open and taking in an ever-expanding flood of information.

The following steps will help you pay attention to the factors that matter most to business success.

1. Focus on the customer experience.

Customers and prospects have more access to information than ever before. According to HubSpot Research , 79% of customer service teams feel customers are more informed than they were in the past. And almost 90% of surveyed leaders say their expectations are higher than ever before.

In many situations, the way you treat your customers has more of an impact than your pricing or products.

Customer experience is the impression you give your customer. It tells them what your values are and how much you care about them. And this impacts their perception of your brand across each stage and touchpoint of the customer journey.

This means that businesses need to focus on every step of the buyer journey. You need to identify the problems on that path and offer new opportunities to create a great customer experience.

These are just a few ways you can build a customer focus:

• Make customer experience a priority by gathering insights from everyone on your team
• Take steps to reduce friction and focus energy on what's most important to your customers
• Look at your product experience from their point of view
• Solve problems before they impact your audience
• Invest in training and supporting your customer service team

Customers want and expect a great experience from beginning to end, and they’re willing to pay a premium for it. Are you ready to provide that experience? Are you over-delivering on your CX? To run a successful business, you should be.

Featured resources:

• Customer experience strategy
• How to improve your customer experience
• Customer experience trends

2. A powerful business idea.

The oldest companies in the world have been around for as long as 1,400 years . But many companies struggle to last. In 2021 alone, over 14,000 businesses in the United States filed for bankruptcy .

Every business is born from an idea. Some ideas are riskier than others. Some ideas seem like a good plan at the time, but fizzle out over time. There are a few approaches you can take to find an idea that can make your business a success.

First, start with what you know. If you've ever had a hobby or job you're passionate about, you know that every niche is more complex than it seems. As you learn more, you get a clearer picture of the joys and challenges below the surface.

For example, video games are more popular than ever. But a gamer playing Stardew Valley isn't the same audience as someone who's into Half-Life. Their different approaches to gaming mean that you'll need to get more specific. This will help you find the problems you want to solve with your video game business idea.

Next, you'll want to talk to your community. Whether it's family and friends or an online group, it's smart to test out the value of your ideas with a group of people. This step can help you refine your idea and figure out what the common objections might be.

Finally, research is essential before you launch your business idea. If you want to create a product or service that people are willing to pay for, it has to be unique, useful, and high-quality. That kind of idea may take some time to polish before it's ready for purchase.

• Small business ideas
• Business opportunities

3. Offering value to your target audience.

Customer value could come from your excellent business idea. But an idea isn't enough to build a business. Honestly, it's easy to come up with a great idea. What's difficult is executing an idea so that it does what it's meant to do, and does it well.

And no great product is ever finished. Many products will need constant updates from customer reviews and internal feedback to continue to offer value.

Even if your product or service is perfect, providing value doesn't end there. The foundation of any successful business is trust. To develop that trust, you want to make sure your business goes above and beyond target audience expectations . But what does that mean?

First, it's making sure that your product does exactly what you say it does. Don't over-promise or sell functionality your product doesn't have. Next, it's about value throughout the customer experience, from support to instructions to your return policy. Value isn't just the cost of making your product or what you ask in exchange for it. It's customer perception, and how you meet those expectations.

For example, PopFlex doesn’t just offer inclusive athleisure wear, it runs a female fitness channel called Blogilates with journals, resources, and accessories to support its customers.

Image Source

• Providing value through the buyer journey
• Writing a value proposition
• Value-based selling

4. Being flexible and quick to adapt.

Change is the only constant, and for your business to prosper, you'll need to shift with the times. Whether you have to follow fashion trends or shift with regular tech updates, the ability to flex is essential.

And flexibility isn't just useful when you're adjusting your products or marketing. Employee expectations and needs will change. Customer communications will swing. It might feel more comfortable for you to stick with what you're used to and ask other people to change instead. But that approach could limit your ability to succeed.

Adapting to change isn't always easy. But greeting change with a positive and open attitude can improve productivity, loyalty, and engagement. It can also help your business act on new ideas early and give you a competitive advantage by doing so.

Flexibility and adaptability are soft skills, and if they don't come naturally to you, you may need to go out of your way to practice them.

One way to stretch your flexibility is to travel somewhere new. The experience of adjusting to a different language and culture can make it easier to flex at home. Other ways to build your comfort with change include:

• Making constant learning a priority
• Keeping up with news and trends in your industry
• Expanding your network
• Becoming an adaptable leader
• How to make your business more flexible

5. Bold decision-making and creative problem-solving.

Starting any business is a risk. But it's rarely the only bold action you'll take. More often than not, running a successful business means big decisions and creative experiments.

Dynamic thinking sounds wild and dicey when you're talking about a company that supports you, your family, and your team. But it's that creativity that creates a stable foundation for your business.

Because being creative is about finding where typical thinking has failed. It's a chance to develop new ways of solving problems. Bold decisions don't require any less planning or preparation than traditional ideas. They just take more faith, because there is usually little to no proof that these ideas will work. They might take more trial and error. But when a creative solution works, it really works.

If you don't think of yourself as bold or creative, this aspect of business success may feel a bit daunting. But there are a few ways that anyone can use the creative process to improve their business decisions.

Begin with research, and try to quickly take in as much information as you can before you take action . Then, sit with the information for a little while. Consider the possible positive and negative impacts and don't let the urgency of a deadline or external pressure rush a decision.

Creative decision-making is rarely a linear process. These tools can help when you're feeling stuck:

• Critical thinking course
• Decision trees
• Decision making

6. Paying attention.

Running a business takes a lot of skill, effort, and time. When your batteries are running low, it's tough to give your focus to the people and processes that need "extra" attention. But paying attention is what will help your business survive and thrive. It can give you vital insights you can use to grow your business over time.

For example, you want to pay attention to your customers' changing needs. People are talking about you and your brand whether you ask them to or not. Are you listening and considering what they're saying?

Your team might use traditional methods like calling or emailing your customers. You may also use the process of social listening or conduct feedback surveys , such as net promoter score (NPS), to gather data on customer sentiment. Make a habit of listening to the market and your customers .

Here’s a powerful example of a CEO who listened to feedback and applied it to grow his business. "As the founder of an indie startup, I've come to embrace a few core values," says Eugene Woo , CEO of Venngage.

"This includes realizing our mission over a long period of time instead of a quick exit, creating value for our customers by helping them solve real problems, being responsible for our own financial sustainability, scaling at our own pace, and doing the right thing over 'it's just business.' This philosophy has guided every aspect of my decision-making process as I've made Venngage into an independent, growing, and profitable business over the past four years."

7. Getting out of the office.

"Entrepreneurs are the only people who will work 80 hours a week to avoid working 40 hours a week." - Lori Greiner

Running a business can take over your life. But if you don't take a break, you make it tough for your business to prosper. Stepping away from your office, store, or computer is essential to your continuing success.

Make time for social activities. Attend events, do some networking, or start a hobby that gets you out into the world. This can improve your energy levels and also help you expand your support system.

It's also a good idea to take extra care of yourself. Try to get in some physical activity, travel, and take short breaks throughout the day to give yourself a rest or change of perspective. There's a reason why airlines instruct us to place our oxygen masks on before helping others: if we don't take care of ourselves, we can't take care of someone else.

Likewise, if you don't have personal goals and plans for your overall health and well-being, you won't be as effective in running your business.

• Market demand for products and services.
• Building the right team.
• Preparation for leadership.
• Network development.
• Competitive analysis.
• Choosing the right pricing.
• Long-term goals and vision.

There are many reasons why a business might fail. According to research, there are a few challenges that are more common than others.

The following factors are essentials to consider as you start and run your business.

1. Market demand for products and services.

A great service or product will get you nowhere if there's zero need for it. Due diligence and careful, detailed market research are essential in the early stages of starting a business.

You need concrete data on your ideal customers, the existing competition, expected growth and demand, market trends, and more. Determine who would buy your product, how often, and why.

These types of insights are invaluable and help you make informed business decisions and goals. They help you not only find your niche but adequately plan inventory and forecast sales, too.

2. Building the right team.

The most successful business owners and entrepreneurs know to surround themselves with people smarter than they are. If you decide to scale your business, you’ll need a strong team to help you do great work. The only way to do this is by recruiting and hiring the best people .

And don't just build any team — build a super team. As your budget and demand allow, surround yourself with experts in things that you are not. Ask for input and feedback from them.

Involve them in decisions that will impact them directly and indirectly. This will help foster greater investment in what you're building. It will also lead you to make better, more informed decisions together. When you win, you all win.

But that's not all. "It's important to develop a clear onboarding strategy for employees and a system for measuring results," says Nico Prins .

"Putting systems in place will help as you scale the business, especially if you're expanding quickly, and reduce the amount of time and work associated in dealing with inevitable staff turnover."

3. Preparation for leadership.

Before anything else, develop the leadership qualities necessary to build your business's long-term vision. Great leaders exhibit:

• Accountability
• Organizational direction

Even as a new business owner with no other employees, you are responsible for leading your business to success. As you (hopefully) grow and others come on board, that becomes increasingly important.

If leadership skills don't come naturally to you, you're not alone. According to Gallup research, only one in ten leaders comes by those skills naturally.

This means that most people need to prepare to lead, and there are extensive resources to help develop these skills. As you begin to work on your leadership skills, these resources can help:

• Developing leadership skills
• Leadership training
• Leadership resources
• Leadership skills

4. Network development.

You'll need a strong community for your business to thrive. If you're just starting out, your network can connect you to co-marketing, funding, and other vital opportunities. If you're continuing to run a business, your network can shore up areas that need work or draw extra resources.

Networking is a buzzword that can be off-putting to some. But the quality of your network is in your relationships. If you support businesses that complement yours, they're likely to return that investment and support. It can create a steady stream of referrals and connections that can help your business grow.

To be a great partner to the people in your network, start with common values. Reach out to people in your local community and online who align with the mission and ideals you have for yourself and your business. Next, create a clear set of expectations and maintain friendly and consistent communication.

• Guide to networking
• Building business relationships

5. Competitive analysis.

Some ideas are so unique that there's little to no competition, but most businesses will be entering an already-crowded market. If your market is full of established providers, you may be fighting an uphill battle. But if you have a unique spin on your product or niche, you might be in the right place at the right time.

There's only one way you'll know for sure, and that's by completing a competitive analysis.

You'll use this strategy to learn about the products, marketing, and sales approaches of your top competition. Your learning may lead you to go in another direction. It might also help you find a need or problem that only your business can solve.

This process can also help you set benchmarks and understand the share of voice you'll need to reach your business goals.

The more organized you are, the more useful your research will be. It's also a good idea to perform this analysis on a consistent basis, each quarter is ideal, so that you can quickly respond to changes in your industry.

• Competitive analysis kit
• Competitive analysis templates

6. Choosing the right pricing.

Getting your pricing strategy right is important for your business's sustainability. If your prices are too high, you'll struggle to sell; too low, you won't be able to cover your costs.

Setting your pricing is one of the first things to do when starting a new business. Pricing your products to sell is a skill that may take some time to learn.

If your prices are too high and you limit your customer base. If they're too low and you're not pulling in enough revenue to stay afloat. Are your products priced appropriately? How many units will you need to sell each period to reach your revenue and profitability goals? Document and lay this information out clearly so you know exactly what you need to do to keep your business running and thriving.

Featured tool: Pricing strategy calculator

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7. Long-term goals and vision.

People start businesses for many different reasons. Some want to make ends meet with a side gig, others want to replace their full-time job and be their own boss. Whatever your reason is, decide upfront how you want your business to scale. If you aren't thoughtful about your long-term plans, you won't be prepared for what could happen.

For example, marketing can be unpredictable. Businesses go viral for doing great work and aren’t prepared for the influx. Knowing in advance whether you’ll meet the moment or let it pass can save you from FOMO, or even having to close your business because you lacked the preparation needed to scale.

Featured tool: Growth grader

So, create a plan before you start selling and create a vision-based plan . Whether you're in it for the moment or the long haul, this process will give you a center to go back to when you and your team have decisions to make.

Your mission statement could be about annual revenue or inspiring a community to take significant action. Either way, you'll have a document to help you focus your energies when you need to decide what to do next.

Featured tool: Mission statement templates and examples

TL; DR — If you’re planning to start a business, you must actively work to make it successful. You’ll need to research, study, and learn about your industry, customer, and market inside and out.

When it comes to business data, most entrepreneurs want to know what chances they have for success.

How many people are starting new businesses?

According to Statista and the Bureau of Labor Statistics, 347,000 new businesses started in Q1 of 2022. That's an 8.4% decrease from the last quarter of 2021, but an almost 21% increase from Q1 2021. In other words, new business is booming.

Guidant research says that over 60% of entrepreneurs went into business because they wanted to be their own boss.

What are the top costs that come with starting a business?

Payroll is a top cost for many businesses. Depending on the nature of your business, wages alone can cover 15-50% of your overhead budget.

U.S. census data shows that compensation costs are up, with a 5.1% increase in wages and salaries and a 4.9% increase in benefits. At the same time, 51% of small businesses plan to expand their team in 2022.

Will my new business succeed?

The success rate of the average new business tends to decline over time. The exact numbers vary, but most align with 2021 Statista data that shows almost 80% of new businesses in operation after the first year. Ten years later, almost 35% of those businesses are still running.

The specific numbers also change depending on the industry . Some industries, like healthcare and social assistance, have a higher-than-average survival rate. Others, like construction and transportation, have rates that are lower.

But the most important business statistics are personal. 92% of surveyed business owners don't regret starting their own business. And 30% are serial entrepreneurs, starting two or more businesses.

• Define clear KPIs.
• Make great marketing and branding.
• Draft a business plan.
• Keep innovating.
• Develop a strong company culture.
• Focus on financial goals.
• Refine business processes.
• Use the right tools for your growth strategy.
• Develop a support system.

Learning how to run a business isn’t the same as starting one. But as you build your buyer personas, market research, and vision, you’ll also start to develop the skills it takes to keep a business going. Running a business looks a little different for everyone, but these steps can help you prepare your company for sustainable growth.

1. Make great marketing and branding.

If you build it, they may not come. The presence of a marketing strategy is one of the telltale signs of whether or not a business will make it.

Marketing spans everything from finding prospects to upselling new products and services to loyal customers. Marketing is about getting the right message to the right people at the right time.

Featured tool: Marketing plan template

As you build your marketing plan, ask yourself:

• Who are your customers?
• What problems do they have that you can solve?
• How do they want to engage with businesses?
• Where do they spend their time?

Answering these questions will help you understand your target audience and buyer persona. An effective marketing and branding strategy will focus on this specific audience and then grow from that core group.

Once you know who you're talking to, you need to choose the best channels for communication.

Successful businesses looking to share their message usually start by building a following on one platform at a time. Here are the most common methods for communicating with potential customers:

• Email marketing
• Social media
• Search Marketing
• Business website
• Content marketing

Most customers are online, so omnichannel marketing is a powerful option that can help you attract prospects and keep customers happy. Omnichannel integrates the various channels used by modern consumers into one seamless experience.

Strong businesses also focus their energy on a primary platform that they own. Branding is about creating a personality for your company that your audience can trust.

Your branding, design, tone, and personality all need to align across every marketing channel and point to a website.

Content marketing is another powerful option for small businesses. Having a website is beneficial because you own the channel. That means you can promote your content anytime you want without dealing with algorithms or paid ads. High-quality, valuable content on your website can drive traffic and leads to you.

As you build your marketing strategy, be sure that you're offering value to your customer. "One way to validate that people are looking for solutions to their 'problems' is through keyword research," says Nathan Gotch of Gotch SEO . "You can find the exact keywords your prospective customers are using with tools like UberSuggest or the Google Keyword Planner. You then need to create content around the keywords you find."

But it doesn't stop there. "Content is also a valuable sales tool," says Valerie Turgeon . "While a strong sales team is essential for closing the deal, buyers are more likely to self-educate and engage with digital content before conversing with sales. A content strategy will help guide your content creation and distribution efforts to get in front of buyers first and help capture leads for your sales team."

An effective content marketing strategy is one of the best ways to stand out in today's crowded online marketplace. Founder and marketing director Isaac Justesen says, "But consistently creating high-quality content isn't easy. That's why many successful businesses outsource content creation instead."

You might also want to work with partners to amplify your messaging. As CEO of Aptitude 8 Connor Jeffers told me, "In the early days of Aptitude 8, we found a lot of success with partner marketing. I recommend early-stage companies find partners that serve the same audience they're targeting, build relationships with their marketing teams, and supply those teams with great content they can help distribute easily."

More resources:

• Branding guide
• Develop brand identity
• Small business marketing guide
• Content marketing guide

2. Draft a business plan.

It's up to you whether you want to create a formal business plan or just document your professional goals. But if you want to create a business that lasts, you need a space to record and share your plan for your business, one that you're proud to share with every stakeholder.

Business plans vary but most will include most of the items below:

• Summary of your business idea
• Company description
• Products or services
• Market research
• A plan for marketing and branding
• Legal requirements
• Financial expectations
• Starting budget

It's easier than ever before to create a business plan. And your business plan isn't a just document that you write and set aside. It's a living document you can store in the cloud. This means that every person with a stake in your business can have access to your plan. This will ensure consistency, collaboration, and the evolution of your business plan over time.

Featured tool: Free business plan template

3. Define clear KPIs.

Without concrete goals, it will be difficult to tell how well your business is actually doing. So, setting the right KPIs is essential.

KPI stands for key performance indicator. These are a way to track your business performance against your goals. They can give your team a target to push toward, help you measure progress, and improve your decision-making as your business grows.

If you're not sure where to start, get clear on the four Ps : product, price, promotion, and place. These can guide your marketing plan, and customer personas, and can be a jumping-off point for setting other KPIs.

Try not to set too many KPIs to start, and make sure each KPI is SMART :

4. Keep innovating.

Like bold decision-making, innovation is a must for business success. Regular attention to invention and experimentation can keep your business from growing stagnant.

That said, you don't have to keep reinventing the wheel. Some of the most powerful innovations are small changes that improve the customer experience.

To make a habit of innovating, weave creative planning into your business processes. Set aside time during meetings and daily tasks for brainstorming, experiments, and trend research.

And make a point of keeping up with news and forward thinkers, especially in your industry and niche. Fresh insights can spark conversations that could lead to your next big idea.

5. Refine business processes.

Many business processes come about organically. Sometimes a process sticks around because of habits or resistance to change. Other processes evolve in response to outside forces.

To keep your business growing, effective processes are key. So, be intentional with planning and strategy before creating the processes your team completes each day.

Creating a solid plan before habits start forming will ensure that each process is best for your business. It also gives you an easy way to track and adjust processes that aren't working.

Featured tool: Free sales plan template

Processes often come from the tools you use. But if you scale your efforts with the right software you can get more done with less. Instead of disparate platforms, spreadsheets, and email tools, condense your sales process into one distinct CRM and sales platform .

The right tools make you better able to meet and exceed customer expectations. For example, 71% of customers are comfortable working with bots if it means a better experience. So, a tool like live chat software can help address the need for a quick response.

6. Develop a strong company culture.

Businesses often overlook the power that culture and employee engagement can have on all fronts of the company. But culture makes an impact, from recruiting to exit interviews.

To build a solid culture, focus on your team.

"Good HR teamed with an arsenal of great tools can change your company for the better," says Ali Anderson . "Happy, engaged employees do great work, and company growth will quickly follow."

According to Anderson: "When companies invest in their training and onboarding processes, they'll find their employees are more prepared to do great work and take on the challenges of the business."

Taking steps to measure and improve employee engagement and employee net promoter scores can increase productivity, improve employee sentiment, and make your employees more likely to recommend your business to their friends. If you’re looking for tips and ideas on this, check out the Culture Happens podcast .

Monthly or quarterly performance discussions build team camaraderie and improve employee mental health. These meetings can also create an environment of trust, which leads to greater innovation.

Small businesses can attract rare candidates by having a positive culture, a strong career track, and well-trained, unbiased recruiters. "A supportive culture and a strong career track are key to attracting the best of the best," agrees Taylor Dumouchel .

"Top professionals seek respect, not just within their immediate teams, but throughout an organization; they want to work for companies that value what they do. In order to recruit top talent, executives need to highlight their positive and supportive culture and underscore how they recognize that their positions are a part of the major drivers for company growth."

Good HR teams with an arsenal of great tools can change your company for the better. Happy, engaged employees do great work, and company growth will quickly follow.

Many business leaders don't realize that company culture begins when a company is still new. They sometimes forget to care for the employees who are creating that culture. So, once you have a strong team of people, make sure that you're providing what they need to stick around.

Do what you can to help your team feel motivated, incentivized, and well taken care of so they can effectively do their job. This is why offering benefits to your staff is so important.

As you make hiring decisions, factor in how much budget you have to cover employee benefits. Once you know your budget, consider what benefits are required on a federal, state, and local level for your business. Some required benefits may include:

• Unemployment taxes and insurance
• Time off for voting, jury duty, and active military service
• Workers’ compensation
• Compliance with Family and Medical Leave Act ( FMLA )

After factoring in the costs of required benefits, you can determine what elective benefits you would like to offer. Know that these benefits are often what keep an employer competitive, especially in a hot job market. Competitive analysis can also help you see what other companies in your industry are offering their employees.

Other potential benefits include:

• Health insurance
• Retirement savings
• Paid vacation and/or holidays
• Disability insurance (required for some states)
• Life insurance

7. Focus on financial goals.

Launching and building a business is expensive. You need financing — capital, investments, loans, and revenue — to get you through the lean times.

For a business to be successful, it has to make enough money to sustain operations and turn a profit that can be re-invested for future growth. A detailed budget can help you keep track of revenue and expenses.

Featured tool: Marketing budget template

As you develop and track your financial goals, don't forget to factor in your business costs including:

Determine how much money your business needs to bring in on a monthly, quarterly, and annual basis to succeed. If you're not comfortable with accounting , balance sheets , or financial forecasting , start learning now.

8. Use the right tools for your growth strategy.

The number of apps, products, and SaaS solutions available is growing exponentially. Identify and use those tools that can help you optimize your business.

Thanks to the ever-decreasing cost of technology, even small businesses have all the tools they need at their fingertips (for instance, a free-forever, all-in-one CRM ). But choosing the right tools can be challenging.

According to Manvi Agarwal , there are a few things you should consider when deciding which tool is best:

• Zero in on the processes you want to use each tool for.
• See how each one of those tools can make that process easier or more efficient.
• Choose one that performs a very specific task, even if it might be tempting to go for an all-in-one tool.
• Compare how much value the tool is providing vs. the amount it will cost you.
• Ensure the tool is scalable – that it grows along with your business and can meet your business's changing needs.

If you haven’t implemented a stack of tools to streamline your business processes, using a CRM is a great place to start. HubSpot CRM is the perfect foundation for an effective growth strategy.

9. Develop a support system.

Running a business can take over your life. While many thrive on the intensity, too much can create a level of stress that's not healthy. So, a support system is essential for the continued success of your business.

This group of people can help you manage your stress and keep a positive outlook through the highs and lows. They can be active members of your small business team or offer vital reminders to maintain a balance between work and life.

Those with a tight circle of family and friends may rely on them for more than moral support. According to 2022 Bank of America research, 46% of small business owners run their businesses with a partner or spouse. And 12% fund their businesses with resources from family and friends.

It's also a good idea to expand your social circle. Shore up your community with local social clubs, industry organizations, and charitable groups. A support system can benefit you and everyone who's important to you with positive personal impacts. It can also boost collaboration and productivity.

Starting a business is easy.

But running a successful company takes time, effort, and commitment. Take the time to study the businesses that keep people at the forefront. These are the best teachers, even if they’ve made a few missteps along the way.

Cultivate a reputation of trustworthiness and build credibility and expertise in your industry. Then, take what you’ve learned here and turn it into action. You’ll be on your way to running a successful business that will delight your customers and turn a profit.

Editor's note: This post was originally published in March 2021 and has been updated for comprehensiveness.

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

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

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

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

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

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

Let’s get started.

Why Are Business Plans Important?

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

1. Proves Your Business Viability

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

2. Guides You Throughout the Business Cycle

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

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

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

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

3. Helps You Make Better Business Decisions

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

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

4. Eliminates Big Mistakes

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

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

5. Secures Financing and Attracts Top Talents

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

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

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

Key Elements of Business Plan

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

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

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

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

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

1. Executive Summary

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

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

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

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

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

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

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

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

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

Components of an Executive Summary

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

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

2. Business Description

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

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

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

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

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

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

Components of a Business Description

Your business description needs to contain these categories of information.

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

3. Market Analysis

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

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

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

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

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

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

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

Market Analysis Factors

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

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

Components of the Market Analysis Section

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

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

4. Marketing Plan

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

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

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

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

5. Sales Strategy

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

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

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

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

6. Competitive Analysis

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

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

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

This section should define the following:

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

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

7. Management and Organization

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

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

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

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

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

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

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

8. Products and Services

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

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

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

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

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

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

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

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

9. Operating Plan

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

The operating plan for your business should include:

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

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

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

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

10. Financial Projections and Assumptions

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

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

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

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

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

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

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

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

11. Request For Funding

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

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

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

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

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

12. Exhibits and Appendices

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

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

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

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

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

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

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

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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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• The Art of Business Success: A Blueprint for Entrepreneurs

Building a successful business is a journey filled with challenges and opportunities at every turn. It’s a path that demands not just hard work, but smart work—understanding the essential components that form the foundation of successful businesses around the world.

As a business owner, your awareness in these key areas can dramatically shift the scales from start to final success. It’s about crafting your legacy, and your business’s legacy.

Whether you’re a seasoned business owner or just planting the seeds of your own business, the clarity with which you approach these critical steps will chart the course of your future.

That’s why I’m sharing what it takes to master the art of business success, guiding you to not only meet your ambitions but exceed them, setting new benchmarks in what it means to achieve success in the world of business.

What is Business Success?

A successful business goes beyond growing your income or expanding your market share. Building your legacy, creating a brand that resonates, and establishing a business that not only achieves but redefines its goals are what really lead you to achieve business success everywhere.

To be a successful business owner, you have to pursue excellence, innovation, and customer satisfaction. Successful businesses don’t just have a goal to be profitable, they’re also aiming to positively impact their customers, employees, and communities. They adapt, evolve, and lead in their respective fields, setting standards that others aspire to.

Business success isn’t measured only in financial terms but also in the value it adds to others. It’s about the difference you make in your customers’ lives and the problems you help them solve. It’s about how you, as a small business owner, contribute to society and push the boundaries of what’s possible.

Achieving business success is marked by the ability to not just dream big but also to manifest those dreams into reality through strategic planning, effective marketing strategies, and a relentless drive for improvement. The most successful companies understand that success is a continuous journey.

To be successful you must continue to strive to achieve success, innovate, and stay ahead of the curve, ensuring your legacy doesn’t only reflect what you achieved, but how you achieved it and who you helped along the way.

When looking at business success it’s about crafting a story of ambition, resilience, and impact. When your business strategy focuses on building something greater than yourself and something that stands the test of time, you’ll be like many successful businesses out there.

As we explore the different steps to build a successful business, remember that every decision, every strategy, and every innovation add to your business’s success.

What Makes a Business Successful?

At the heart of every successful business lies a combination of factors that propel it forward amidst challenges and competition.

While each enterprise is unique in its journey, there are common threads that weave through the fabric of successful companies. Here are key elements that contribute to business success:

Vision and Innovation

A clear vision coupled with a spirit of innovation forms the cornerstone of successful enterprises. Visionaries who anticipate market trends, identify unmet needs, and dare to innovate are often at the forefront of industry disruption and growth.

Customer-Centric Focus

Businesses that prioritize customer satisfaction stand out in crowded markets. Understanding and exceeding customer expectations, delivering exceptional service, and building strong relationships foster customer loyalty, and drive repeat business.

Strategic Planning and Adaptability

Strategic planning, coupled with the agility to adapt to changing market dynamics, is vital for business success. Successful companies leverage data, market insights, and foresight to chart their course while remaining flexible to seize emerging opportunities and navigate unforeseen challenges.

Effective Leadership

Strong leadership sets the tone for strong company culture and business success. Leaders who inspire, empower, and guide their teams foster a culture of excellence, innovation, and accountability, driving the organization toward its goals.

Talented and Motivated Team

A talented and motivated team is the lifeblood of any successful business. Hiring individuals who align with the company’s values, possess diverse skill sets, and demonstrate a commitment to excellence fuels innovation and drives collective success.

Operational Efficiency

Operational efficiency streamlines processes, reduces waste, and maximizes resources, contributing to business success. Successful companies prioritize efficiency across all facets of operations, from production and supply chain management to customer service and administration.

Financial Management

Good financial management is essential for business success. Successful businesses maintain healthy cash flow, manage expenses prudently, and invest strategically in growth opportunities, ensuring long-term viability and sustainability.

Adaptability to Market Changes

Flexibility and adaptability to market changes are critical for business success. Successful companies anticipate shifts in consumer behavior, industry trends, and regulatory landscapes, pivoting swiftly to capitalize on emerging opportunities and mitigate risks.

10 Steps to Create Business Success

Creating a successful business involves more than just an excellent business idea, you also need to build a solid foundation through strategic planning, relentless execution, and continuous improvement.

Here are key steps that every business owner should take to build a profitable business and ensure company growth.

1. Define Your Vision

Every successful company begins with a clear vision. This vision serves as the compass for all your business activities, guiding the development of your business plan and strategies.

It’s essential to articulate what you want your business to achieve in the long term, setting the stage for long-term positive habits that contribute to the sustainability and continued success of your enterprise.

2. Develop a Business Plan

A well-crafted business plan is crucial for both new and established business owners. It outlines your business goals, strategies, target market, financial projections, and the path to profitability.

A lot of small business owners overlook the importance of a dynamic business plan that evolves with their small business. Regularly revisiting and adjusting your plan is vital for navigating the challenges and opportunities that come with company growth.

3. Understand Your Target Market

Success progresses once you understand your target market. Thorough market research helps identify customer needs, preferences, and behaviors, enabling you to tailor your products or services to meet market demands effectively.

For small businesses, a deep understanding of your niche can be a significant competitive advantage.

4. Focus on Value Creation

What makes businesses successful is their ability to consistently add value to their customers. Whether through innovative products, new ideas, exceptional service, or a unique business model, your focus should always be on how your business can solve problems and enhance the lives of your customers.

5. Cultivate Long-Term Positive Habits

Long-term positive habits are the bedrock of personal and professional success. This includes everything from continuous learning and improvement, and effective time management, to fostering positive relationships with customers, employees, and partners.

Successful business owners know that these habits are critical in building a successful enterprise.

6. Implement a Strategic Marketing Plan

Your marketing strategy is essential in communicating the value your business offers to your target market. A strategic marketing plan encompasses understanding customer behavior, selecting the right marketing channels, and creating compelling messaging that resonates with your audience.

For small businesses, smart marketing tactics can level the playing field against larger competitors.

7. Leverage the Expertise of a Business Coach

A business coach can be a valuable asset for business owners at any stage of their journey. They provide guidance, accountability, and insights that can accelerate your path to success.

Whether it’s refining your business strategy, enhancing leadership skills, or navigating growth challenges, a business coach can help you achieve your goals more efficiently.

8. Monitor and Adjust Your Business Strategy

The business landscape is constantly evolving, and so should your business strategy. Regularly review your performance metrics, market trends, and customer feedback to identify areas for improvement.

Adjusting your strategy in response to these insights ensures your business remains competitive and on track for success.

9. Build a Team Aligned with Your Vision

Your team plays a crucial role in the success of your small business. Hiring individuals who share your vision, values, and dedication to customer satisfaction can drive your business forward.

Investing in your team’s development also pays dividends in terms of productivity, innovation, and workplace morale.

10. Stay Committed to Continuous Improvement

The journey to building a successful company is ongoing. There’s always room for improvement, whether in your products, customer service, internal processes, or personal development as a leader.

Embrace feedback, challenge the status quo, and commit to lifelong learning to ensure your business not only survives but thrives.

Ten Keys to Business Success

There are ten critical areas where your ability to think largely determines the success or failure of your business.

The greater clarity you have in each of these areas, the better decisions you will make and the better results you will achieve.

What is the purpose of a business? Many people think that the purpose of a business is to earn a profit, but they are wrong. The true purpose of a business is to create and keep a customer. Fully 50 percent of your time, efforts, and expenses should be focused on creating and keeping customers in some way.

The key measure of business success is customer satisfaction. Your ability to satisfy your customers to such a degree that they buy from you rather than from someone else, that they buy again, and that they bring their friends is the key determinant to measure success of growth and profitability.

Requirement

The key requirement for wealth building and business success is for you to add value in some way. All wealth comes from adding value. All business growth and profitability come from adding value. Every day, you must be looking for ways to add more and more value to the customer experience.

The most important person in the business is the customer . You must focus on the customer at all times. Customers are fickle, disloyal, changeable, impatient, and demanding-just like you. Nonetheless, the customer must be the central focus of everything you do in business.

In life, work, and business, you will always be rewarded in direct proportion to the value of your contribution to others, as they see it. The focus on outward contribution, to your company, your potential customers, and your community, is the central requirement for you to become an ever more valuable person, in every area.

The most important question you ask, to solve any problem, overcome any obstacle, or achieve any business goal is “How?” Top people always ask the question “How?” and then act on the answers that come to them.

In a world of rapid change and continuing aggressive competition, you must practice continuous improvement in every area of your business and personal life.

As Pat Riley, the basketball coach, said, “If you’re not getting better, you’re getting worse.” I have found that is an easy way to continuously improve yourself, your business, and your life.

The heartbeat of your business is sales.  Dun & Bradstreet analyzed thousands of companies that had gone broke over the years and concluded that the number-one reason for business failure was “low sales.”

When they researched further, they found that the number-one reason for business success was “high sales.” And all else was commentary.

The most important number in business is cash flow. Cash flow is to the business as blood and oxygen are to the brain. You can have every activity working efficiently in your business, but if your cash flow is cut off for any reason, the business can die, sometimes overnight.

Every business must have a growth plan . Growth must be the goal of all your business activities. You should have a goal to grow 10 percent, 20 percent, or even 30 percent each year. Some companies grow 50 percent and 100 percent per year, and not by accident. The only real growth is profit growth.

Profit growth is always measurable in what is called “free cash flow.” This is the actual amount of money that the business throws off each month, each quarter, and each year, above and beyond the total cost and expense of running a business.

Embrace Business Success

As an entrepreneur, each decision made, each strategy implemented, and each lesson learned will shape the result of your journey toward business success.

As you navigate the many ups and downs of the business world, remember that success is a continuous pursuit of excellence. Uphold the principles of strategic planning, effective leadership, and operational efficiency, knowing that each step brings you closer to your aspirations.

Embrace the art of business success with determination, ingenuity, and a belief in what is possible. With each milestone you achieve, you will find fulfillment in shaping a future filled with prosperity, purpose, and unparalleled achievement.

As you continue on your journey, consider unlocking your full potential with my free resource, the Sales Growth Potential Quiz . Discover your biggest sales weakness and learn how to turbo-charge your sales faster than ever.

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About Brian Tracy — Brian is recognized as the top sales training and personal success authority in the world today. He has authored more than 60 books and has produced more than 500 audio and video learning programs on sales, management, business success and personal development, including worldwide bestseller The Psychology of Achievement. Brian's goal is to help you achieve your personal and business goals faster and easier than you ever imagined. You can follow him on Twitter , Facebook , Pinterest , Linkedin and Youtube .

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How to Grow a Successful Business

Starting a business requires more than just a great idea

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Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest.

To build a successful business, you need more than a good—or even great—idea. You have to be well organized, flexible, and creative, and develop a knack for paying close attention to the details while never losing sight of the big picture. You should also be prepared to make some personal sacrifices. Whatever type of business you have in mind, these nine basic tips, with links to additional advice, can help you get it started and keep it growing.

Key Takeaways

• Starting and growing a business requires good organizational skills, creativity, and constant focus, among other essentials.
• It's important to be aware of your competition, particularly the things it is doing that you might want to adopt or improve upon.
• You'll almost certainly end up working harder for yourself than you would for someone else, so be prepared to make some sacrifices in your personal life.

9 Tips For Growing A Successful Business

1. get organized.

To achieve success as a business owner you first have to be well organized. That will help you complete tasks efficiently and stay on top of the many things that need to be done. A simple way to get and stay organized is to create a to-do list each day. As you complete each item, check it off your list. Remember, too, that some tasks are more important than others. Aim to tackle the high-priority ones first.

There are many online resources that are available to help. They include tools like Slack, Asana, Zoom, and Microsoft Teams. That being said, a simple Excel spreadsheet will meet many of a small business's organizational requirements, especially in the early days.

2. Keep Detailed Records

No matter how busy they are, successful businesses take the time to keep careful accounting records . By doing so, they know where their business stands financially and can often get a better (and earlier) grasp of any potential challenges they might be facing. Investopedia periodically rates the best accounting software for small businesses .

Many businesses today keep two sets of records: one physical and another in the cloud . That way, a business owner no longer has to worry about losing crucial data if something unfortunate happens, like a fire, computer virus, or other calamity.

3. Analyze Your Competition

To be successful, you can't afford to ignore your competitors. Instead, take the time to study and learn from them. Larger companies devote significant resources to obtaining this sort of competitive intelligence .

How you go about analyzing the competition can depend on the nature of your business. If you're a restaurant or store owner, you may simply be able to dine or shop at a competitor's place of business, ask customers what they like or don't like about it, and gain information that way.

If you're in a field with more limited access to your competitors' inner workings, such as manufacturing, try to keep up with the news in relevant trade publications, speak with any customers you share in common, and obtain and scrutinize whatever financial information a competitor makes publicly available.

4. Understand the Risks and Rewards

Another key to being successful is taking calculated risks to help your business grow. Besides contemplating the potential rewards if you succeed, a good question to ask is: "What's the downside if this doesn't work out?" If you can answer that question, you'll know what the worst-case scenario is. If you could live with that scenario, and are prepared to take the necessary steps to manage the risk as much as possible, you might want to give it a go. Otherwise, this could be a good time to consider other opportunities.

Understanding risks and rewards includes being smart about the timing of starting a business or launching a new product. For example, the severe economic dislocation during the COVID pandemic provided some businesses with new opportunities (say, manufacturing and selling protective gear) and others with difficult-to-overcome obstacles (such as running a restaurant with constraints on indoor dining).

5. Be Creative

Always be looking for ways to improve your business and make it stand out from the competition. Recognize that you don't know everything and be open to new ideas and different approaches. 

Keep an eye out for opportunities to expand your current business or develop related enterprises that will lead to additional revenues and provide the benefit of diversification. The history of Amazon provides a good example. The company started out as an online bookseller and grew into an e-commerce giant, selling just about everything. Today it has a growing brick-and-mortar presence, as well. Among its many subsidiaries are Amazon Pharmacy, Amazon MGM Studios, Whole Foods Market, and Zappos.

6. Stay Focused on Your Goals

The old saying "Rome wasn't built in a day" applies to building a business as well. Just because you open a business doesn't mean you're going to start making money immediately. It takes time to let people know who you are and what you have to offer, so stay focused on achieving your goals.

Even many small business owners who ultimately achieve success won't see a profit for a few years and will have to rely on borrowed money (if they can get it) or their own savings to support the business until it can become profitable. Fortunately, there are a variety of ways to finance a business .

That being said, if the business is not turning a profit after a reasonable period of time, it's worth looking into why that is and whether the business needs to go in another direction.

7. Provide Great Customer Service

Too many businesses forget the importance of providing great customer service . If you deliver better service for your customers, they'll be more inclined to come to you the next time they need something instead of going to your competition. High-quality service is one key to obtaining competitive advantage in the marketplace.

Some businesses refer to this as a taking a consumer-centric or client-centric approach .

In fact, in today's hyper-competitive business environment, service is often the major differentiating factor between successful and unsuccessful businesses. This is where the saying "undersell and overdeliver" comes in, and savvy business owners are wise to follow it.

8. Be Consistent

Consistency is a key component to success in business. You have to keep doing what is necessary to be successful, day in and day out. This will create long-term positive habits that will help you make money in the long run and create satisfied customers from day one. Customers value consistency, too.

9. Prepare to Make Some Sacrifices

Having your own business often requires putting in more time than if you were working for someone else. That can mean spending less time with family and friends than you wish you could. The adage that there are no weekends and no vacations for business owners can ring true for anyone who's committed to making their business work.

Owning a business isn't for everyone. If, after an honest self-evaluation, you decide you aren't cut out for it, you'll save yourself a lot of grief, and probably a lot of money, by pursuing another career path.

What Is the Fastest Way for a Business to Grow?

Businesses will grow at their own rates, and many times this is out of the control of the business owner or workers. However, there are some aspects to running lean that may help a business grow quickly, such as focusing on a small product line, scaling up at a manageable pace, and providing some sort of obvious edge over your competitors.

How Do You Increase Sales?

Increasing sales can come from a few different places. You can raise ad expenditures where advertising has already proven effective, proactively solicit referrals from existing clients, build a direct-to-consumer email list, and others. You can also expand your product portfolio, but if the new additions underperform, that will negatively affect your bottom line.

What Makes a Startup Successful?

Business success is a difficult concept to quantify, but if it means generating returns for stakeholders, startups can be an excellent way to deliver returns. The best startups have a good product or service that is scalable. A well-run startup will understand the overall market and its particular place in it, be able to pivot quickly, and be ready to take advantage of opportunities when they present themselves.

The Bottom Line

Growing a successful business is hard work, and not everyone succeeds at it. According to 2022 data from the U.S. Bureau of Labor Statistics, about 20% of new businesses fail during their first year, 50% fail during the first five years, and 65% fail during the first 10 years. Only 25% of new businesses make it to 15 years or beyond.

If you want to be among that 25%, paying attention to these nine tips is a good start, but certainly not exhaustive. To own and run a successful business you'll want to be in a state of constant learning and adapting.

Prime Video Amazon Studios. " Amazon MGM Studios Scores 68 Primetime Emmy Award Nominations in Studio's Biggest Year Ever ."

Amazon Pharmacy. " Save Time, Save Money, Stay Healthy ."

Amazon. " Subsidiaries ."

U.S. Bureau of Labor Statistics. " Business Employment Dynamics – Table 7. Survival of Private Sector Establishments by Opening Year .”

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Here’s How I Grew Five Businesses, and Eventually Sold One to a Fortune 500 Company.

The Keys to Business Success | 20-Point Exhaustive Checklist

Keys to business success a 20-point exhaustive checklist.

Attaining the keys to business success is a difficult yet rewarding journey!

The road towards finding the keys to business success can be long and complicated and requires careful planning and hard work to conquer. It’s no secret that there are many successful companies globally, but this doesn’t mean that it’s easy to achieve greatness. We often associate business success with large corporations like Apple, Microsoft, or GE. However, small businesses also enjoy a high level of success and can be tremendously rewarding.

“Almost everything worthwhile carries with it some sort of risk, whether it’s starting a new business, whether it’s leaving home, whether it’s getting married, or whether it’s flying into space.”  – Chris Hadfield

What is the secret behind their achievements? The answer to this question varies from one company to another, but there are some common threads that successful companies share. Before we delve into how to achieve business success and the various keys to business success, let’s look at why businesses fail.

What Is The Major Reason Behind Business Failures?

Lack of planning and preparation..

Sometimes companies fail because they don’t have a proper plan of action for their new business. They tend to jump into the market without doing any research or simply ignoring current industry trends. Or, on the other hand, they overestimate their capabilities and resources and don’t plan accordingly for future roadblocks and problems.

Not Adhering To Market Needs .

The second reason that leads to business failure is the lack of customer orientation. Businesses that fail tend to ignore market needs and preferences and try to sell unsuitable products or services, thus getting a low demand for their offerings.

Both of these reasons are closely related, but one of the major aspects of business success is the ability to offer products and services that are on-demand in the market. This not only helps you get your first customers easily; it also helps your business stay alive despite tough competition or changing times.

How Can You Run A Successful Business?

The keys to business success elude most business owners, and it’s not really a surprise – the road to success is complicated. Believe it or not, even well-known companies like Apple and Microsoft faced difficult times before getting through their early years.

It is widely known that, on average, 20% of new businesses fail during the first two years of start-up, 45% fail during the first five years, and 65% shut down during the first 10 years. Only about 25% of new businesses make it to 15 years or more. So how can your business be among the 25%? From  naming your LLC  to finding the right people to start your business with, let’s explore the “how”! Don’t ignore these keys to success!

Keys to Business Success – A 20-Point Exhaustive Checklist

Invest in your education.

As an entrepreneur, you need to arm yourself with the knowledge to learn how to achieve business success and handle tough situations and complications that will inevitably arise. You should take up courses, seminars, or webinars related to your field of business and can also read books on entrepreneurship and management. Successful business owners invest in their education and keep themselves updated with the latest trends and market demands.

“The road to success and the road to failure are almost exactly the same.”  – Colin R. Davis.

Perhaps the most important of the keys to business success is learning. While it may not always be a prerequisite to running a successful business (and the examples are numerous), don’t pass an opportunity to learn whenever you can. Whenever the opportunity presents itself, take it up and acquire as much knowledge as you can. That includes management, business start-up strategy, organization or financial management, etc. It may not even be an immediate skill/piece of knowledge you need right away. But having it in your toolbox will pay dividends when you need it.

Be Action-Oriented: Number 1 of the Top Keys to Business Success

Taking action is the key to success – it’s as simple as that. It doesn’t matter if you’re just starting or your business has been established for some time now – one of the keys to business success is taking action and delivering results.

When learning how to achieve business success, you can study all about marketing, management, and organizational skills over the years, but what will actually make your business grow is taking action. Without doing something, you will not get any results, and your business won’t be successful.

“Stop chasing the money and start chasing the passion.” – Tony Hsieh

You’ll need to take a step (or two or three) back and put in the hard work required to achieve the goals you set for yourself and your business. Successful individuals are often described as hardworking and action-oriented, so if you want to succeed in business, that’s one of many keys to business success.

Gaining knowledge and new insight or relevant skills is critical in running a business, no doubt. However, knowing how to achieve business succes s means your plans and goals should be action-oriented – be swift to act. My coaching clients understand this is one of the most important keys to business success . Business coaching clients who take action get spectacular results!

“The best investment is in the tools of one’s own trade.” –  Benjamin Franklin.

Many persons have imagined and envisioned themselves owning and running a successful business. However, most rob themselves of their dreams because they fail to act on them. Don’t hide behind the research of how to achieve business success each day to delay and procrastinate in starting your business or moving it to a realm of greater success. Many people suffer from “paralysis by analysis.” Don’t do that! Take action now. Apply the knowledge you already have on how to achieve business success . You’ll have more opportunities to learn on the way, both from experience and from other structured learning programs.

No matter how much knowledge you may have on how to achieve business success, it’ll matter very little to your goal of a successful business if you fail to act. Dreams are dreams and will remain imaginary until it is accompanied by a corresponding action. Turn a dream into action by setting a due date and telling others about your goal.

Present Relevant Products to Help You Attain The Keys to Business Success

Many businesses fail because they sell the wrong products and services to the wrong people. For instance, if you are selling weight loss supplements but your target market comprises persons suffering from heart diseases, it will be a waste of time for both clients and yourself. You will not make any money or have any happy customers either.

“Would you like me to give you a formula for success? It’s quite simple, really: Double your rate of failure. You are thinking of failure as the enemy of success. But it isn’t at all. You can be discouraged by failure or learn from it, so go ahead and make mistakes. Make all you can. Because remember that’s where you will find success.”  – Thomas J. Watson

The process of product development is about serving people, listening to them, and providing the things they actually need. It’s not just about inventing something that you think will be cool or interesting – it has to present value to someone, and that is how to achieve business success. I’m sure you all remember the story of James Dyson, who was convinced by his wife to keep on working on his vacuum cleaner design. Prior to its launch, the market was already saturated with several competitive products.

People who took action succeeded; people who did not fail. There are many reasons why people fail in business, but this is one of the main reasons (if not THE reason) why businesses fail: they sell what they think people need, not what they really want. There is no how-to achieve business success doing this.

“The way to get started is to quit talking and begin doing.”  – Walt Disney

Many businesses fail because there is no real demand for their products. The business idea might be great, but if the product or service does not solve a problem or meet a need of someone out there, then that business will end up failing. Make sure to do proper market research before launching any products or services.

Don’t get me wrong; I am not saying that you should never invent your own product. In fact, you can invent a new product or service by stumbling upon an unmet need in the market and then selling a solution to it. If there is a gap in the market for a specific problem, you can become an entrepreneur overnight.

However, you need to realize that new products and services are usually very risky business ventures, so make sure you know what you’re getting yourself into before taking any steps in this direction.

Build a competent team

Many people fail in business because of poor teamwork. Working on your own is somehow easy, but working with others can be hard. However, you should not be selfish and work alone to achieve success. Work with others who have abilities that complement yours. Play to each individual’s strength so that the whole team becomes strong. This is how to achieve business success easily.

Build a team of people who are more talented than you are. So many entrepreneurs fail because they’re bad at their job, but because they lack the strong team behind them to get things done.

“Far and away the best prize that life offers is the chance to work hard at work worth doing.”  – Theodore Roosevelt

The business idea may be great, but success will not be attained if the entrepreneur lacks competence or has no good relationship with their employees.

A bad team will kill your business even if you have a fantastic idea because your idea can only go as far as your competence and the competency of those who work with you.

“If you want to go fast, go alone. If you want to go far, go together.” – African Proverb.

Most often than not, small businesses thrive when there is teamwork. As such, one of the important keys to success in your business, you must carefully select those you want on your team. Being the business owner, especially in small- to medium-sized businesses, you’re most likely in charge of making hiring decisions. As such, strive to hire those who have the necessary skill set to fit your business to accomplish the set goals. Create the ideal employee profile in advance, and then compare your candidates to the profile.

“Play by the rules, but be ferocious.”  – Phil Knight

When we speak of a team, we referred to those serving in various business areas: accountants, consultants, business attorneys, or sales agents. Their effectiveness in their delegated responsibilities will reflect on the overall success of the business. Consider those who have the necessary experience, including working in similar businesses or industries, before hiring them.

Learn from Others – One of the Most Important Keys to Business Success

Along with formal education, one of the keys to business success is not being afraid to learn from others. While you may have experience in your industry, it pays to learn from others who are ahead of you. This is how to achieve business success.

It doesn’t matter if they are well-known or not, study them carefully and try to understand their moves. Learn what makes them successful and implement those strategies in your business to avoid mistakes they made. But remember at the same time that you must be careful not to copy them.

That’s because it is very much easy to be successful copying others, but in the long run, your prospects for continued success are slim. The reason is simple; you will never have a new idea or path of your own if you do not create anything original. Furthermore, competitors may see your work, read between the lines, and get ahead of you.

“The successful warrior is the average man, with laser-like focus.” – Bruce Lee.

“Instead of comparing our lot with that of those who are more fortunate than we are, we should compare it with the lot of the great majority of our fellow men. It then appears that we are among the privileged.” – Helen Keller.

When you study how others have achieved success in their businesses, you can learn from their mistakes or challenges that gave them sleepless nights. You can then use this information when planning your business strategy , which will help make it easier to achieve success.

Learning from other peoples’ failure

To learn how to achieve business success, connect with other business owners, and try to learn a thing to two from their experiences and how they’ve been successful. Of course, you can only learn from someone who has something to give. You can’t achieve success by learning from a failure, can you? You can! Learning from other’s failures can be very instructive.

There are two lessons that you can learn from every failure. The first is if the other person could have avoided it, so can you! And second, what should they do differently next time? If you only take the first lesson and ignore the second one, then your brain will try its best to avoid making the same mistake.

Now, imagine how much you can learn from other’s failures? Obviously, a lot!

Also, don’t be shy or afraid to share your successes and failures, and challenges you face, as it creates more opportunities for learning and growth.

You can also find yourself a mentor or business coach . These people can help navigate you through the ocean of business and guide you on how to achieve business success as you venture into your own business. Having these contacts with others can be important. Their wisdom, successes, and even failures can guide you and keep you from making similar unnecessary mistakes.

Have a well-strategized business plan when seeking the keys to business success

You can have the most skilled managers in your firm, but it will be difficult for you to achieve success without a well-strategized business plan.

“Every child is an artist. The problem is how to remain an artist once he grows up.”

Having a formal business plan that includes detailed information about your business growth, expenses, and revenue is very crucial. Not having a set business path could lead to chaos in your business. It can be disastrous if you are unable to achieve the milestones you have set for your business. And this can result in you losing clients or not being able to attract investors at all.

“Many of life’s failures are people who did not realize how close they were to success when they gave up.”  – Thomas Edison

Another important thing about formulating a good plan is that it forces you to think. Many businesses owners view having a formal plan as unnecessary work. They just jump straight into their businesses without ever considering how to achieve business success or goals or what kind of obstacles may be in their way.

But be mindful,  “Success usually comes to those who are too busy to be looking for it.”  – Henry David Thoreau.

These plans will show you where your strengths and weaknesses lie. If you lack in an area, you need to find someone who can fill the gap or hire another person, for that matter.

Your business plan also defines how to achieve business success, how a business will function, and with what strategies. This plan maps out the target market in view. You want a clearly established and attainable vision as well as the methods to achieve that vision. The business plan also defines financial and staffing projections and the goods/services rendered.

“The only limit to our realization of tomorrow will be our doubts of today.”  – Franklin D. Roosevelt

A well-strategized business plan will keep you and the team well organized, focused, and motivated. Business plans aren’t for show. All decisions and steps you take should be in line with the clearly defined plan. You should also create plans for activities like meetings, exhibitions, or even promotional activities.

Continually Revise And Tailor The Business Idea For The Keys to Business Success

It is, however, important to note that you will continually revise and tailor the business idea as you develop the plan. This plan will be updated and amended as you engage in the business and deploy the plan. The strategy may need to be modified, staffing projections altered, and even goods/services rendered changed to meet consumer preferences. The keys to business success greatly hinge on the business plan, so carefully strategize your plan for success and stay focused on it.

Expand Your Financial Knowledge

Finance is a very crucial aspect of your business. Your effective management and mastery of it are another of the keys to business success. Even when you have a great plan with a committed team, how you manage the business’ finances will determine how to achieve business success.

So, invest and learn basic aspects of finance, including creating a budget, saving, and accountability in business. At some point, you will invest in a finance person, accountant, or bookkeeper. But it’s great to handle and review financial statements and have enough knowledge to fully understand the profits the business is generating. For example, balancing out income and expenses from the business can enable you to make statistically sound and strategic decisions. Errors in cash flow can pull even a successful business into the pit of failure.

“There are no secrets to success. It is the result of preparation, hard work and learning from failure.”  – Colin Powell

Also, as part of the keys to business success, it is important to understand the types and amount of taxes you pay, when you pay and how those balance in your balance sheet. Knowledge of insurance and loans will go a long way to boost the keys to the success of the business, so be wise to invest in your education.

Having the right financial information can also help you maintain a good cash flow, fund important opportunities , and save the business from sinking. This allows you to maintain the road to success. If you are planning to expand your business or just starting, then knowing the basics of finance is great for making better decisions. This is how to achieve business success.

Don’t be afraid of the competition. Embrace it and use it for the advancement of your business.  “Every problem is a gift—without problems, we would not grow.”  – Anthony Robbins

“Finance is a language. And like all languages, you need to master it to be able to speak and understand it fluently.” – Robert Kiyosaki.

Have an effective working process

Small businesses often have a small staff and struggle with getting things done and on time too. As such, there is often the feeling there isn’t always enough time to accomplish all designated tasks, and that can be true. To manage this, you create systems.

To be successful, your business needs to be well organized; this is one of the vital keys to business success you must understand to succeed. For example, you can lay down a process for handling taxes monthly or even handling invoices. Such processes spell out every action at every step of the activity chain, thereby reducing the chances of mistakes. This will save time and enhance the chances of achieving success in the business. And when you delegate these tasks to your staff and ensure the processes are followed, you can rest assured they’ll get the job done right. Doing this will allow you to focus on other aspects of the business for growth and ultimately achieve the keys to business success.

Not only that but having a system in place for hiring employees is important. It can prevent you from hiring the wrong kinds of people who cannot contribute to the business. This is another important process on how to achieve business success.

“An ordinary mind can only think of one way to do things. A creative mind has unlimited ways.” – Anonymous

Take advantage of  targeted advertising

Another of the keys to success comes with increased profit, which comes from increased customers. Now, how do you get more customers to know and demand your goods/services? Marketing, that’s how. You can’t get customers to a business they don’t know about. It doesn’t matter whether you have a physical sales point or use e-commerce facilities. You should have targeted marketing/advertising strategies to expand your customer base.

Economical and practical advertising recommendations

Custom promotional products are a great form of targeted advertising that can enhance your brand. For example, if your product is beer, you can consider customizing a challenge coin bottle opener and Custom Metal Pins from BPS printed with your brand logo and pattern as a gift to customers who purchase the product, attracting customers through innovative customization and matching practical gifts.

“Success seems to be connected with action. Successful people keep moving. They make mistakes, but they don’t quit.”  – Conrad Hilton

When you advertise, don’t just go with the flow. Your marketing campaign should be well thought out and consistent in delivery. Have your budget ready to handle this exercise before embarking on it. Analyze the cost of advertising per unit. Also, for online or social media campaigns, track individuals who shared or retweeted your post/advert to identify your target market. You can then develop a more targeted marketing strategy that will help you capture the customers who are most likely to buy from you.

“Even if you are on the right track, you’ll get run over if you just sit there.”  – Will Rodgers

You must find types of marketing and advertising that are most effective and would make the greatest impact on your particular business. When you have good marketing and advertisement strategies implemented, more people will know your business. More customers will be added, thereby increasing the scope of the business and ultimately tending towards success. This is a great tip on is how to achieve business success sooner than expected.

“Advertising is the art of convincing people to spend money they don’t have for something they don’t need.” – Will Rogers.

Build Customer Loyalty- Important Keys to Business Success

One of the important keys to business success is loyalty to its customers. Building loyalty to and from customers can take a significant length of time. But once established, it can ensure consistent revenue and referrals by satisfied customers. So, be diligent and consistent at what developing relationships.

“If you really want to do something, you’ll find a way. If you don’t, you’ll find an excuse.” – Jim Rohn.

To build customer loyalty, you must consistently provide good customer service. People remember good customer service and easily get attached to such a business. People want to be treated well. When you achieve this consistently, customers will feel comfortable frequenting your business, being confident that they’d be treated well. With this, you can build customer loyalty to your business.

Communicate the business vision and mission to customers:

When customers can understand your vision, what you stand for, and your policies, they can easily decide if they want to align themselves to your business to become part of what you’re building.

Communicate the value of the goods/services your business provides. Sometimes, people may not fully understand why what you sell is of any importance to them. It is your job to enlighten them if you want to make a profit. Make customers see the importance of choosing the goods/services you offer, and they’ll get “hooked” on your products when they do.

Build on your interests- Important Keys to Business Success

On an individual level, what are your interests? What do you enjoy doing? What do you like to do? One of the most important keys to business success is engaging your interests in business. Getting involved in what appeals to you will go a long way to define your enthusiasm and devotion to the business venture and, ultimately, the success of the business. Don’t just do what you have to; do what you want to! When you engage in what interests you, you’ll be more devoted, working harder at it with passion, and ultimately, you’ll reap the rewards. When you engage in what appeals to you personally, you’ll easily find ways to succeed at it.

“To succeed, we must first believe that we can.”  – Nikos Kazantzakis

For example, if you’re drawn to phones and gadgets, then dealing in mobile phones or consumer electronics may be of more appeal to you than engaging a clothing line. You’ll be more likely to passionately engage the former and find more ways to be successful than the latter.

Create Business Networks

In business, you can’t and shouldn’t try to be an island; that is not is how to achieve business success. Be open to creating networks in your business. Even when on vacation, when you attend social events or personal interactions, keep your eyes and ears open to every opportunity. Connect with people for the betterment of your business. This might include other business owners, potential clients, or partners. Such connections can happen at any time. Be keen to make the most of every opportunity and talk business.

Maximize Profit for the keys to business success

The ultimate goal of every business is to reduce costs and maximize profits. So be open to new ideas to maximize available resources to profit. Brainstorm with your employees to find better approaches. Develop new ways to save on costs that do not conflict with your values and mission. These keys to business success will positively impact the profits generated by the business and steer your business on the path to achieving the keys to success.

Protect Yourself

As a business owner, you should have protective measures in place for your assets. For example, you should function in such a way that you don’t lose your house or car if someone sues your company. Liability insurance can, thus, be useful. Also, have a legal team to work this out and keep them posted on the developments and changes in your business to better shield you from any fallouts in the business. Regularly consult with them to ensure you make the right moves legally about your business.

Keep Detailed Records

When it comes to record-keeping, successful business owners understand its importance, and they keep good records. Records help you keep track of the progress of the business, the financial standing of the business, and existing challenges in the business. Records highlight trends in the functioning of the business. They help the management to make statistically accurate decisions based on facts. Knowing is half the solution.

Know Your Competition

If you are determined on how to achieve business success, it is of utmost importance to know what your competitors are up to. This is one of the keys to business success that will enable you to have the upper hand in the industry. So, keep a close watch on their products, marketing strategies, pricing schemes, new initiatives, or advertisement campaigns so that you can stay one step ahead of them.

“Success is not the key to happiness. Happiness is the key to success. If you love what you are doing, you will be successful.”  – Albert Schweitzer

Competition brings out the best in a business. Know your competition. Study them and learn from them. When you have competing businesses in the same domain as you, it pays to know them and possibly their modus operandi. It is possible to learn from your competition, especially when you feel the competition is fierce. They might be doing something you aren’t that is getting the results you desire.

Don’t be afraid to take risks or fail for the keys to business success

Another of the keys to business success is owners who are not afraid to take calculated risks for the growth and betterment of their businesses. For every venture you intend to engage in, you must clearly establish the worst-case scenario, accept it, and strategically proceed. Some risks are necessary to succeed, and some are unnecessary, but you must not be afraid of taking risks. There are no guarantees of success, but you can do your best to assess the risks. Accept the risk and roll up your sleeves for action.

Well-calculated risks can also include the timing of starting or expanding your business. When is it the right time to make a move in advancing your business? What is your perspective when others see impediments and setbacks?

Be Creative and Innovative to gain the keys to business success

When learning how to achieve business success, you must be innovative. Creativity and innovation go a long way when trying to find new ways to do things in business. Just as every other living being evolves, so does business. If your business remains stagnant, it will die a slow death – this is one of the greatest keys to business success you must understand. Thus, you must be open to constructive criticism and embrace change to better your company or business. While change is difficult, it can be a good thing if done for the right purpose.

“Be not afraid of growing slowly; be afraid only of standing still.” – Chinese Proverb.

In other words, to be successful, you must constantly be innovating, making out new opportunities for an increase. Also, be open to ideas from any and every source. You’re not omniscient, so pay attention to ideas and innovations from others towards your business. Paying attention doesn’t mean you’ll commit to those ideas, but be open to consider them carefully.

“Forget past mistakes. Forget failures. Forget everything except what you’re going to do now and do it.”  – William Durant

Stay focused and consistent.

The mark of successful business people is how they stay focused and consistent on a path to accomplish their goals. Business owners must align the purpose of the business with a higher vision, whether it is personal or cultural. They know that for them to be successful, others must succeed as well. They focus on keeping their business aligned with the purpose and vision of why they started it in the first place. Income is a bonus, not an end goal.

When it comes to business, you’ll not likely become a success overnight. As such, be patient, focused, and consistent in what you do. Consistency will put you on the map of many customers. You must keep at it, day in and day out, to establish long-term habits and loyalties that will pay dividends in the long run. This is how to achieve business success! Remember, “Rome wasn’t built in a day.”

Be ready to make the necessary sacrifices when seeking the keys to business success

To make how to achieve business success easier, a lot of sacrifices are required to be made before you see the results from your business. Sacrifice time, money, and effort – these three things must be given up for a successful business. You need to have the right balance between all three – find it and cling on to it until you’re successful! Be ready to do anything it takes to make it in business.

“If you really look closely, most overnight successes took a long time.”  – Steve Jobs

The last of the keys to business success, ‘sacrifice’ isn’t always a cakewalk, and you must be ready to endure what it takes to be successful. It may entail cutting back on your leisure activities, sleep, personal expenditures, etc. You must be ready to make the necessary sacrifices and establish a balance in all things. At the end of the day, your business is important and should be given due diligence. The sacrifices will be well worth it.

Sacrificing is difficult, but the results are always worth it. Once you make the necessary sacrifices, take hold of your business and ride out to success. This is how to achieve business success – You can do it!

“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired and success achieved.” – Helen Keller.

Conclusion:

Success is a wonderful and exciting thing to achieve, but it isn’t for the faint of heart who are not ready to learn how to achieve business success the best way. If you aren’t ready to make many sacrifices along the way, then you may want to rethink your goals. It’s work; nothing worth achieving comes easy! However, if your ambition is high enough and you’re willing to take hold of the reins, then you are sure to succeed beyond your wildest dreams. Just remember that success can’t be achieved overnight, nor should it be. Instead, it is a journey, one that must take place day in and day out. Make the right sacrifices, focus on what you need to do, learn from your mistakes/failures, stay consistent in your endeavors, etc., all along the way so you may succeed!

I had a lot of fun writing this article for those searching for how to achieve business success and the keys to business success. I know it’s easier said than done, but everyone has chops deep down inside of them. You can be successful if you are willing to make the necessary sacrifices and learn how to achieve business success by staying focused on your goals and taking action when opportunity knocks. Just remember these keys to business success!

Have a great day, my friends!

Whether you think you can or whether you think you can’t, you’re right!”  – Henry Ford

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Summary. The five key success factors — strategic focus, people, operations, marketing, and finance — help businesses determine their strategy for long-term success. Critical success factors, on the other hand, are the steps a company needs to complete to reach a goal.

As an organization that caters to its consumers, comprehending the needs and values of a business’s target demographic is crucial to forming a logical strategy.

Identifying and understanding the five key success factors of business is the best way to establish a foundation of knowledge about a company and its customers.

Key Takeaways

The five key success factors of business are:

Strategic focus

Companies need to implement all five key success factors in order to be successful in the long term.

Critical success factors are accomplishments businesses must have in order to meet their goals.

5 Key Success Factors of Business

What is a critical success factor, how to determine your business’s critical success factors, examples of critical success factors, factors of success in business faq.

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The key success factors are a series of five overarching aspects that ultimately determine a business’s long-term success.

The five larger groups contain ten smaller conditions, which need to be satisfied for the business to (hypothetically) thrive. In each of the world’s most profitable companies, the five success factors join together to establish a cohesive unit that’s lucrative for the long term.

The 5 Key Success Factors of business is a theory of strategic business management posed by Buck Lawrimore. The concept was derived after the analysis of over 100 popular books and 20 years.

Below is a definition for each factor:

Strategic focus. The strategic focus aspect of success means that the company’s goals, brand, and actions all move towards a targeted goal. The companies that manage to last in competitive markets are the ones whose leaders define their values and a realistic mission.

This factor is about sticking to the ultimate business objective and ensuring that every project is an effort toward this. A significant part of the strategic focus is making sure that the target chosen is constructed from the customer’s wants and needs .

Strategic Focus Key Success Factor Examples: Establishing and sharing core values that align with customers Leaders of the business are devoted to upholding the business’s core values The overall company mission is pursued through realistic goal-setting

People. The second ingredient for business success is the personnel that makes up the corporation. A company’s staff is what expands its development, which means it’s crucial to hire a team that’s qualified, dependable, and passionate about performing well.

This success factor also refers to how satisfied a business’s employees are with working there.

Just as much as employees need to strengthen the business, the business needs to provide its team with adequate opportunities for success as well. Satisfaction with working for your business builds productivity and increases employee retention rates .

People Key Success Factor Examples: Hiring the most qualified applicants based on their skills and experience The company’s employees fully understanding their job responsibilities Employees are given the chance to provide meaningful input on business decisions

Operations. The daily and long-term functioning of a company is defined as its operations. The specific operations that a business handles differ depending on the industry it exists in.

For example, the operations of a company that produces jeans likely involve sourcing materials, product creation, and generating sales. The business operations of a pediatrician ’s office would be very different.

For operations to be successful, the functions need to be recorded and have a measurable efficiency to determine if the processes need tweaking over time.

Operations Key Success Factor Examples: Processes focused on providing excellent service to the customer All operation efforts being documents and trackable over time Procedures being continually evaluated to ensure effectiveness

Marketing. Marketing acts as the branch between a company and its customers. There are many facets to good marketing, such as targeting the right audience, forming a recognizable brand, and evaluating consumer satisfaction post-purchase.

Marketing attracts new customers to your brand through media communication, supporting business growth. Without its customers, a business is quick to fall flat on its face.

Marketing Key Success Factor Examples: Defining a target marketing audience for the business Expanding the customer base through media communication and advertisements Eagerly receiving customer feedback and using it to improve

Finances. The final factor of success is often the first one that people’s mind jumps to when they consider the term, finances.

A company’s finances refer to the entirety of its assets, which include things like sums of money, properties, and materials.

In addition to maintaining the company’s financial data, it also includes their product’s financial characteristics. Pricing has a considerable impact on how customers perceive the product and how well it sells.

Finances Key Success Factor Examples: The products are appropriately priced for a profit to be made while still attracting and maintaining customers Keeping track of finances for a better understanding of company health Every employee of the company understands how their actions affect profits and finances

Critical success factors are a business management framework similar to the Five Factors, but it’s composed of the elements necessary to complete a project. It’s a checklist of qualities that enable a professional goal to be accomplished.

Unlike the Five Factors model, critical success factors do not outline the success of businesses. Rather:

They describe what needs to be done to achieve and provide a reliable system of measuring success.

A company’s critical success factors vary greatly depending on the circumstances of their industry, competitors, and what their goals are.

A business that sells alarm systems to homeowners might look at sales and the percentage of customers who left positive reviews to quantify their success.

Alternatively, a social media manager would consider their critical success factors to be the number of new customers generated monthly and website traffic.

Gather a group to manage critical success factors. Before beginning work towards establishing a business’s critical success factors, gather a team to handle the matter.

Delegating tasks ensures that nothing gets overlooked. The main participants in this group should be senior employees since they are the most experienced in the business and on the team.

Request feedback from employees . A company’s employees are its eyes and ears. As such, they usually have extremely valuable insight into what a business needs to do to succeed in long-term goals.

Develop business goals. Before evaluating the conditions needed to accomplish an objective, the business first must set its goals.

Consider what is needed to achieve these goals. This is the part where critical success factors come into play. Now that a list of achievable short and long-term goals has been set, think about what steps need to be taken to achieve them.

The elements required to reach a goal describe the company’s critical success factors when it comes to that particular project.

For example, a restaurant whose long-term goal is to improve its profits by 6% might take on the critical success factors of improving customer satisfaction and the quality of its food.

Put the plan into action. The beauty of critical success factors is that they map out a strategic plan for completing a professional goal . With an inventory of the most essential success factors settled, the only thing left to do is explain and execute the strategic plan.

To quantify the effectiveness of critical success factors over time, establish a measurement system. With a goal involving an aspect, like sales, measuring success is straightforward, but that’s not the case for every critical success factor.

Observe and evaluate as needed. A strategy based on critical success factors has been put into motion, but that doesn’t mean the job is done.

Strengthening employee satisfaction . Employees are the backbone of the company they represent. This means that boosting employee satisfaction is often a relevant critical success factor in improving other aspects like productiveness, regardless of industry.

Improving sales and profit. Since many businesses survive off of maintaining sales and profits, it makes sense that it’s a popular critical success factor. Improving these finances is implemented as a critical success factor when the long-term goal involves needing increased funding. For example, a dog groomer who wants to expand their business by buying a second location might address the success factor of improving sales to buy the new property.

Brand awareness. Customers need to know that a business exists for it to survive among its competition. A lot of companies feel this pressure and choose to focus on brand awareness as a critical success factor. Building up a name for a brand helps solidify standing in the market and assists in working towards a variety of long-term goals.

What are the five key success factors for a successful business?

The five key success factors for a successful business are:

What are success factors in business?

Success factors in business are the elements required for a business to be successful in the long term. Success factors can also be the steps a company needs to complete in order to meet a goal — these are usually called critical success factors.

University of Missouri System – Success Factors and Other Competency Models

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Sky Ariella is a professional freelance writer, originally from New York. She has been featured on websites and online magazines covering topics in career, travel, and lifestyle. She received her BA in psychology from Hunter College.

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10 Keys to a Successful Business Plan

For example, look at # 4 on the infographic, “Name Your Stakeholder.”  Do you know all the relationships that are important to your business’ success?  And, why do you think they are important?

Having a business isn’t about doing it all yourself.  In fact, it’s just the opposite.

One of the biggest challenges that face small business owners is learning how to delegate to other.  If you do not learn to delegate then you will quickly meet the maximum capacity of your business and it will be YOU!  A successful business plan is a tool that allows you to communicate what you’re doing to your stakeholders.

Building a Successful Business Plan

A great assessment for whether you need to do a successful business plan or not is to quickly review the questions posed by the infographic.  See if you can thoroughly answer all the questions.

• What need does your business fulfill?
• How does your offering fulfill this need?
• How is your business unique from others that fulfill this need?
• Who are the key stakeholders in your business?
• How big is your market?
• Who makes up your target market?
• What is the best way to communicate with each of these different parts of your market?
• Describe all the different ways that you will make money from this market?
• How much money will it take to get started and keep your business going?
• Outline exactly what you need to do to breakeven every month?

Next, have someone review your answers. See if someone else can understand your answers to the questions and agrees with them.  If not, then this is a red flag!  You’re not on track to produce a successful business plan.

A bank or investor will almost certainly require a business plan if you want money.  And if borrowing money is not part of your growth plan then I can almost guarantee with 100% certainty, your business will not grow.  Money is ALWAYS a key resource with business growth and creating a self-sustaining business .

But a successful business plan helps you with more than just getting money from a bank.  It will help you communicate what to do next with those that are helping you grow a self-sustaining business – your employees, your advisors, your strategic partners, your suppliers, etc.

So, what’s keeping you from taking the challenge?  If you answer the questions and send them to me I’ll review them for you – NO CHARGE!  That should get you started.  I look forward to seeing your answers and helping you with the next step to business growth and self-sustainability !

Share This Knowledge, Choose Your Platform!

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One comment.

Interesting infograph and a great advice for entrepreneur. It is important to make sure the business grows looking 3-4 years ahead, this will make it easy when looking at a sale and not worry about the value of your business. I work for McGladrey and thought this conversation aligns well with a white paper that was created on this subject, if your readers are interested in it.@ “Building business value: Maximizing the results of selling your company” http://bit.ly/1eudzwT

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