how to write a business plan on selling

And if (or more likely when ) those goals change over time, you need to regularly communicate those shifts and the strategic adjustments that come with them to your team.

Your sales strategy keeps your sales process productive — it offers the actionable steps your reps can take to deliver on your vision and realize the goals you set. So naturally, you need to communicate it effectively. A sales plan offers a solid resource for that.

For instance, your sales org might notice that your SDRs are posting lackluster cold call conversion rates. In turn, you might want to have them focus primarily on email outreach, or you could experiment with new sales messaging on calls.

Regardless of how you want to approach the situation, a thoughtfully structured sales plan will give both you and your reps a high-level perspective that would inform more cohesive, effective efforts across the team.

An effective sales org is a machine — one where each part has a specific function that serves a specific purpose that needs to be executed in a specific fashion. That's why everyone who comprises that org needs to have a clear understanding of how they specifically play into the company's broader sales strategy.

Outlining roles and responsibilities while sales planning lends itself to more efficient task delegation, improved collaboration, overlap reduction, and increased accountability. All of which amount to more streamlined, smooth, successful sales efforts.

Sales planning can set the framework for gauging how well your team is delivering on your sales strategy. It can inform the benchmarks and milestones reps can use to see how their performance stacks up against your goals and expectations.

It also gives sales leadership a holistic view of how well a sales org is functioning as a whole — giving them the necessary perspective to understand whether they have the right people and tools in place to be as successful as possible.

Sales planning isn‘t (and shouldn’t) be limited to the actual sales plan document it produces. If that document is going to have any substance or practical value, it needs to be the byproduct of a thorough, well-informed, high-level strategy.

When sales planning, you have some key steps you need to cover — including:

• Gather sales data and search for trends.
• Define your objectives.
• Determine metrics for success.
• Assess the current situation.
• Start sales forecasting.
• Identify gaps.
• Ideate new initiatives.
• Involve stakeholders.
• Outline action items.

When putting this list together, I consulted  Zach Drollinger — Senior Director of Sales at edtech provider Coursedog — to ensure the examples detailed below are sound and accurate.

Step 1: Gather sales data and search for trends.

To plan for the present and future, your company needs to look to the past. What did sales look like during the previous year? What about the last five years? Using this information can help you identify trends in your industry. While it's not foolproof, it helps establish a foundation for your sales planning process.

For the sake of example, let‘s say that I’m a new sales director for an edtech company that sells curriculum planning software to higher education institutions. My vertical is community colleges, and my territory is the East Coast.

Once I assume this new role, I‘m going to want to gather as much context as possible about my vertical and how my company has approached it historically. I would pull information about how we’ve sold to this vertical.

How much new business have we closed within it in the past five years? How does that compare to how we perform with other kinds of institutions? Are we seeing significant churn from these customers?

I would also want to get context about the general needs, interests, and pain points of the kinds of institutions I‘m selling to. I’d look for insight into figures like degree velocity, staff retention, and enrollment.

Ultimately, I would get a comprehensive perspective on my sales process — a thorough understanding of where I stand and what my prospects are dealing with. That will ensure that I can deliver on the next step as effectively as possible.

Step 2: Define your objectives.

How do you know your business is doing well if you have no goals? As you can tell from its placement on this list, defining your goals and objectives is one of the first steps you should take in your sales planning process. Once you have them defined, you can move forward with executing them.

To extend the example from the previous step, I would leverage the context I gathered through the research I conducted about both my and my prospect's circumstances. I would start setting both broader goals and more granular operational objectives .

For instance, I might want to set a goal of increasing sales revenue from my vertical. From there, I would start putting together the kind of specific objectives that will facilitate that process — like connecting with administrators from at least 30 community colleges, booking demos with at least 10 schools, and successfully closing at least five institutions.

Obviously, those steps represent a streamlined (and unrealistically straightforward) sales process, but you get the idea — I would set a concrete goal, supplemented by SMART objectives , that will serve as a solid reference point for my org's efforts as the sales process progresses.

Download Free

All fields are required.

You're all set!

Click this link to access this resource at any time.

Step 3: Determine metrics for success.

Every business is different. One thing we can all agree on is that you need metrics for success. These metrics are key performance indicators (KPIs). What are you going to use to determine if your business is successful? KPIs differ based on your medium, but standard metrics are gross profit margins, return on investment (ROI), daily web traffic users, conversion rate, and more.

I kind of covered this step in the previous example, but it still warrants a bit more elaboration. The “M” in SMART goals (“measurable”) is there for a reason. You can‘t tell if your efforts were successful if you don’t know what “successful” actually means.

The edtech sales example I‘ve been running with revolves mostly around me assuming ownership of an existing vertical and getting more out of it. So it’s fair to assume that sales growth rate — the increase or decrease of sales revenue in a given period, typically expressed as a percentage — would be an effective way to gauge success.

I might want to structure my goals and objectives around a sales growth rate of 20% Y/Y within my vertical. I would make sure my org was familiar with that figure and offer some context about what it would take to reach it — namely, how many institutions we would need to close and retain.

Step 4: Assess the current situation.

How is your business fairing right now? This information is relevant to determining how your current situation holds up to the goals and objectives you set during step two. What are your roadblocks? What are your strengths? Create a list of the obstacles hindering your success. Identify the assets you can use as an advantage. These factors will guide you as you build your sales plan.

Continuing the edtech example, I would use the historical context I gathered and the objectives I set to frame how I look at my current circumstances. I might start by considering my goal of increasing revenue by 20% Y/Y. In that case, I would look at the company's retention figures — ideally, that would give me a sense of whether that needs to be a major area of focus.

I would also try to pin down trends in the colleges that we've already closed — are there any pain points we consistently sell on? I might take a closer look at how we demo to see if we might be glossing over key elements of our value proposition. Maybe, I would use conversation intelligence to get a better sense of how reps are handling their calls.

Ultimately, I would try to identify why we're performing the way we are, the inefficiencies that might be resulting from our current strategy, and how we can best set ourselves up to sell as effectively as possible.

Step 5: Start sales forecasting.

Sales forecasting is an in-depth report that predicts what a salesperson, team, or company will sell weekly, monthly, quarterly, or annually. While it is finicky, it can help your company make better decisions when hiring, budgeting, prospecting, and setting goals.

After the COVID-19 pandemic, economics has become less predictable. Claire Fenton , the owner of StrActGro — a professional training and coaching company — states, “Many economic forecasters won't predict beyond three months at a time.” This makes sales forecasting difficult. However, there are tools at your disposal to create accurate sales forecasts .

In our edtech example, I would approach this step by trying to estimate how my sales org is going to fare with the specific vertical we‘re pursuing in the time window we’ve allotted.

The method I decide to go with will depend on factors like how many concrete opportunities we have lined up — in addition to elements like the kind of historical data we have handy, how the reps working these deals tend to perform, and the degree of insight we have about our potential customers.

Let's say I consider those factors and decide to run something called a multivariable analysis. In that case, I could start by taking stock of the opportunities my reps have lined up. Then, I could look at the reps working those deals, their typical win rates, and the time they have to close — among other factors.

For instance, I might calculate that a rep working with a particularly large institution has a 50% chance of closing within the window we‘ve allotted. Using that insight, we could attribute 50% of the potential deal size to our forecast — we’d repeat that process with all of the opportunities in question and ideally get a solid sense of the revenue we can expect to generate in this window.

Step 6: Identify gaps.

When identifying gaps in your business, consider what your company needs now and what you might need in the future. First, identify the skills you feel your employees need to reach your goal. Second, evaluate the skills of your current employees. Once you have this information, you can train employees or hire new ones to fill the gaps.

Continuing the edtech example, let‘s say my forecast turned up results that weren’t in keeping with what we need to reach our goals. If that were the case, I would take a holistic look at our process, operations, and resources to pin down inefficiencies or areas for improvement.

In my search, I find that our sales content and marketing collateral are dated — with case studies that don‘t cover our product’s newest and most relevant features. I also might see that our reps don‘t seem to have too much trouble booking demos, but the demos themselves aren’t converting due to a lack of training and inconsistent messaging.

And finally, I find that a lack of alignment with marketing has prospects focusing on unrealistic outcomes our sales team can‘t deliver on. Once I’ve identified those gaps, I would start to hone in on ways to remedy those issues and improve those elements.

Step 7: Ideate new initiatives.

Many industry trends are cyclical. They phase in and out of “style.” As you build your sales plan, ideate new initiatives based on opportunities you may have passed on in previous years.

If your business exclusively focused on word-of-mouth and social media marketing in the past, consider adding webinars or special promotions to your plan.

In the edtech example we've been running with, I would likely ideate initiatives based on the gaps I identified in the previous step. I would start a push to ensure that our sales content and marketing collateral are up-to-date and impressive.

I would also consider new training programs to ensure that our coaching infrastructure is prioritizing how to conduct effective demos. Finally, I would start to work on a plan with marketing to ensure our messaging is aligned with theirs — so we can make sure prospects' expectations are realistic and effective.

One way or another, I would take the gaps I found and find concrete, actionable ways to fill them. I would make sure that these initiatives aren't abstract. Just saying, " We're going to be better at demos," isn‘t a plan — it’s a sentiment, and sentiments don't translate to hard sales.

Step 8: Involve stakeholders.

Stakeholders are individuals, groups, or organizations with a vested interest in your company. They are typically investors, employees, or customers and often have deciding power in your business. Towards the end of your sales planning process, involve stakeholders from departments that affect your outcomes, such as marketing and product. It leads to an efficient and actionable sales planning process.

This step is sort of an extension of the previous two — once I‘ve identified the key issues and roadblocks obstructing my edtech startup’s sales org, I would start identifying the right people to fulfill the necessary initiatives I've put together.

In this example, I would tap some stakeholders in charge of our sales content and marketing collateral to produce newer, more relevant case studies and whitepapers we can pass along to the institutions we're working with.

I would also go to middle management and either offer more direction for coaching on demos or bring in a third-party training service to offer more focused, professional insight on the issue.

Finally, I would connect with marketing leadership to align on the benefits and outcomes we generally stress when pitching the schools we sell to. That way, we can ensure that the institutions we're connecting with have realistic expectations of our product or service that we can speak to more clearly and effectively.

Step 9: Outline action items.

Once you have implemented this strategy to create your sales planning process, the final step is outlining your action items. Using your company's capacity and quota numbers, build a list of steps that take you through the sales process. Examples of action items are writing a sales call script, identifying industry competitors, or strategizing new incentives or perks.

In our edtech example, some key action items might be:

• Revamp our prospecting strategy via more involved coaching and re-tooled sales messaging.
• Revamp administrator and college dean buyer personas.
• Conduct new trainings on demoing our software.
• See our new prospecting strategy from ideation to execution.
• Align with our sales enablement stakeholders for new, more relevant case studies and whitepapers.

Obviously, that list isn‘t exhaustive — but those are still the kinds of steps we would need to clarify and take to structure a more effective high-level strategy to produce different (ideally much better) results than we’ve been seeing.

One thing to keep in mind is that sales planning shouldn't end with creating the document.

You‘ll want to reiterate this process every year to maintain your organization's sales excellence.

Now that you‘re committed to the sales planning process, let's dive into the written execution component of sales planning.

Featured Resource: Sales Plan Template

2. Sample Sales Plan by BestTemplates

Don't forget to share this post!

Related articles.

What Is Cross-Selling? Intro, Steps, and Pro Tips [+Data]

Company Growth Strategy: 7 Key Steps for Business Growth & Expansion

9 Bad Sales Habits (& How to Break Them In 2024), According to Sales Leaders

22 Best Sales Strategies, Plans, & Initiatives for Success [Templates]

9 Key Social Selling Tips, According to Experts

7 Social Selling Trends to Leverage This Year [New Data]

How Do Buyers Prefer to Interact With Sales Reps? [New Data]

7 Sales Tips You Need to Know For 2024 [Expert Insights]

Sales Tech: What Is It + What Does Your Team Really Need?

10 Key Sales Challenges for 2024 [+How You Can Overcome Them]

Outline your company's sales strategy in one simple, coherent plan.

Powerful and easy-to-use sales software that drives productivity, enables customer connection, and supports growing sales orgs

Our Recommendations

• Best Small Business Loans for 2024
• Businessloans.com Review
• Biz2Credit Review
• SBG Funding Review
• Rapid Finance Review
• 26 Great Business Ideas for Entrepreneurs
• Startup Costs: How Much Cash Will You Need?
• How to Get a Bank Loan for Your Small Business
• Articles of Incorporation: What New Business Owners Should Know
• How to Choose the Best Legal Structure for Your Business

Small Business Resources

• Business Ideas
• Business Plans
• Startup Basics
• Startup Funding
• Franchising
• Success Stories
• Entrepreneurs
• The Best Credit Card Processors of 2024
• Clover Credit Card Processing Review
• Merchant One Review
• Stax Review
• How to Conduct a Market Analysis for Your Business
• Local Marketing Strategies for Success
• Tips for Hiring a Marketing Company
• Benefits of CRM Systems
• 10 Employee Recruitment Strategies for Success
• Sales & Marketing
• Social Media
• Best Business Phone Systems of 2024
• The Best PEOs of 2024
• RingCentral Review
• Nextiva Review
• Ooma Review
• Guide to Developing a Training Program for New Employees
• How Does 401(k) Matching Work for Employers?
• Why You Need to Create a Fantastic Workplace Culture
• 16 Cool Job Perks That Keep Employees Happy
• 7 Project Management Styles
• Women in Business
• Personal Growth
• Best Accounting Software and Invoice Generators of 2024
• Best Payroll Services for 2024
• Best POS Systems for 2024
• Best CRM Software of 2024
• Best Call Centers and Answering Services for Busineses for 2024
• Salesforce vs. HubSpot: Which CRM Is Right for Your Business?
• Rippling vs Gusto: An In-Depth Comparison
• RingCentral vs. Ooma Comparison
• Choosing a Business Phone System: A Buyer’s Guide
• Equipment Leasing: A Guide for Business Owners
• HR Solutions
• Financial Solutions
• Marketing Solutions
• Security Solutions
• Retail Solutions
• SMB Solutions

How to Write a Sales Plan

This guide explains the purpose of a sales plan, what it contains and how to write one that works for your business. It also includes a free template for your own sales plan.

Table of Contents

Every business needs a business plan as well as more detailed road maps that offer guidance to each department working toward that common goal. As the revenue-generating engine of your company, the sales department should be a top priority for this type of document, aptly named the “sales plan.” This guide introduces the concept of a sales plan and gives you all the guidance you need to create a sales plan that works for your business.

What is a sales plan?

A sales plan details the overall sales strategy of a business, including the revenue objectives of the company and how the sales department will meet those goals. This may also include revenue goals, the target audience and tools the team will use in their day-to-day. In addition, the sales plan should include examples of the hurdles and pain points the team might encounter, as well as contingency plans to overcome them.

“[A sales plan] is essential to support the growth of an organization,” said Bill Santos, vice president of the ITsavvy Advanced Solutions Group. “A sales plan helps individual reps understand the priorities of the business as well as the measurements by which they will be evaluated.”

Business plans vs. sales plans

Business plans and sales plans are closely linked. A sales plan, though, should outline the actions that the sales department will take to achieve the company’s broader goals. A sales plan differs from a business plan, though both work toward the same end.

“A business plan is a ‘what’ [and] a sales plan is a ‘how,'” said James R. Bailey , professor of management and Hochberg Professional Fellow of Leadership Development at the George Washington University School of Business. “Business plans are where a firm wants to go. A sales plan is a part of how they can achieve that. A business plan is direction; a sales plan is execution.”

For example, a software company that developed a new mobile application might state in its business plan that the app will be installed by 1 million users within a year of launch, while the sales plan describes how that will actually be achieved.

How to write a sales plan

Every sales plan should suit the individual needs of a different company, so they come in all shapes and sizes. There is no one-size-fits-all sales plan; the one you create will be unique to your business. With careful planning, you’ll have a much clearer vision of what you need to accomplish and a road map for how to get there. 

Chris Gibbs, vice president of global sales at Centripetal Networks, named some additional items that every sales plan should include.

• Targeted accounts: Assign each salesperson a few key accounts to focus on, and grow from that base.
• Targeted verticals: Sales teams might focus on specific market segments or verticals, such as a particular industry.
• SKUs: Salespeople should emphasize certain SKUs or inventory items rather than get lost in a broad catalog of merchandise to sell.
• Sales and marketing coordination: Sales and marketing teams should work together to create promotions to help generate sales.
• Product road maps: Every company has a road map, and each product should have a road map that shows the plan and direction for a product offering over time to chart out when a product will launch and when it might sunset or be replaced by a newer model.
• Forecasts: Sales forecasting is projecting sales volumes and expectations by comparing them historically to sales of previous years, and then conducting market comparison to determine where sales will fall against the competition.

“Sales plans are extremely important to ensure there is cohesiveness between product teams, sales and marketing,” Gibbs said. “In addition, they’re important for ensuring that timing of new products and/or new version releases coincide with sales objectives and forecasts.”

What are the steps to create a sales plan?

A sales plan is necessary for businesses of every size, from an individual entrepreneur to a Fortune 500 company. When you’re ready to actually write your sales plan, follow these steps:

1. Define the objectives. 

Clearly outlining your goals and stating your objectives should always be the first step in creating a sales plan or any other business venture. You should include the expected sales volume and any markets or territories you expect to reach. 

For example, let’s say you own a retail store selling household goods and electronics. If your purpose is to establish yourself as a trusted local retailer, ask yourself the following questions:

• If so, are they purchasing anything or just browsing?
• Was it word of mouth?
• Was it through marketing efforts, such as email marketing, direct mail or social media?
• How many are new customers?
• How many are repeat customers?
• Where do you want your sales to come from? 
• What are some external and internal factors that could impact your sales? These include industry trends and economic conditions.

When you can precisely state your key objectives, you are setting yourself up to plan later steps around achieving your goals.

2. Assess the current situation.

The next step is to create an honest overview of your business situation in relation to the goal you set in the first step. 

Review your strengths and assets. Take a look at your resources and how you can apply them to your goal. This can include personal relationships and competitive advantages like new products or services.

For example, if your goal is to enhance your relationship with your customers, you’d need to ask yourself some questions to examine your current situation:

• What is your current relationship with your customers?
• Where did most of your sales come from?
• Where would you like to expand your sales?

3. Determine and outline the sales strategies. 

Sales strategies are the actual tactics your team will use to reach customers. They can include marketing channels as well as procedures for lead generation and client outreach employed by your salespeople.

Here are two examples of potential sales strategies: 

• Use your POS system to retain customer information so you can track current and new customers.
• Employ email marketing, text message marketing , social media, outbound call center services and direct mail marketing campaigns.

4. Define roles for the sales team. 

Each member of the sales team should be assigned clear roles, whether they vary from person to person or everyone performs the same functions.

Defining the sales direction of the team is crucial, as it shows the focus of the company and helps the team target and execute sales most effectively.

The plan of attack for the sales team should be communicated clearly by leadership, whether it is from team leaders or the CEO.  

5. Inform other departments of sales objectives.

A sales plan shouldn’t just update a company president or C-suite; it should inform the whole organization of the sales team’s objectives. 

Clearly outline your plan for the rest of the company to help them understand the goals and procedures of the sales team. Other departments become more efficient when interacting with the sales team and clients. This also conveys a certain level of quality and professionalism to the clients about the company.

6. Provide tools for the sales team.

Provide the tools each member of the sales team needs to achieve the stated goals, such as customer relationship management (CRM) software. The best CRM software is customizable to meet a company’s needs, making it much easier for your team to use the software and work efficiently.

7. Detail how the department will track progress. 

Offer strategic direction and insight on how progress will be monitored. Having a quarterly review to assess whether the company is on target is just as important as the plan itself.

Markets change, and so should your sales plan. Keeping it up to date will help you capitalize on the market and achieve your goals. Tracking progress is made easier by the tools you use to collect data. That data will then have to be analyzed and presented in a way which all departments can understand and use for future growth. 

Key elements of a sales plan

Every sales plan should also include the following elements.

Realistic goals

You need to set achievable goals . Challenge your sales team, but don’t push too hard. Bailey said that these “deliverables” are among the key points to include in a sales business plan. 

“Deliverables need to be as specific as possible and moderately difficult to achieve – specific inasmuch as being measurable in a manner that is uncontested [and] moderately difficult inasmuch as making sales goals too difficult can lead to failure and discouragement.”

Midpoint goals also help build morale and keep the team working toward a larger goal. Instead of having one giant goal, creating smaller goals to achieve along the way will keep your team focused.

Sales tools

Tracking sales throughout the term is helpful, and you can employ tools to keep track of each team member as well as the department overall. It also helps establish a culture of accountability among salespeople.

“Tools can help, especially project management and CRM software,” Santos said. “Having a weekly cadence of update and review is also important, as it sends a message that ownership and updates are important.”

Clear expectations and a defined commission structure

Assign goals and responsibilities to each team member to make expectations clear. This is true whether or not each team member has the same goals.

“We meet with each individual to come up with a plan that works for them so that they can reach their goals,” said Leah Adams, director of client success at Point3 Security. “We measure results based on numbers. Each team member has his own plan and how they’re going to get there.”

It’s also necessary to spell out the commission structure in full detail.

“The only real difference is how sales count,” Bailey said. “In petroleum-based products … a few big clients are necessary. Compensation needs to be structured not just in contract value, but in graduated terms: Above $1 million, commissions move from 5% to 9%, and so forth. In smaller-volume enterprises, commissions might be front-loaded with higher percentages early, then graduated down. You have to reward what you want.”

Training programs

Along the way, some training might be necessary to maintain the momentum.

“What’s important to us is that we’re teaching these individuals to be the best salesperson they can be,” Adams said. “We help them do that by constantly training them and giving them knowledge of what’s going on in our industry. Everything stays on track because each member of the team knows their individual goal; though each person has a number, they also know the ultimate goal is for the entire team to hit.”

Adams said that an effective CRM keeps things organized and helps delegate tasks and responsibilities on a schedule that uses the company’s lead information.

Key steps to follow when devising a sales plan

Here are some best practices for creating a sales plan:

• Refer to the business plan. The sales plan should directly address the objectives of the business plan and how those objectives can be achieved.
• Advance clear objectives. The clearer the objectives are, the easier it will be to reach your goals.
• Reference prior sales data. Chart sales over the previous few terms, and project the trend for the current term. New businesses can create sales projections based on expectations.
• Outline the commission structure. This will help motivate your team and help you calculate anticipated costs.
• Be clear about how progress is measured. There should be no dispute about this. If larger clients carry more weight than lower-volume buyers, that should be stated upfront.

The benefits of a sales plan

A sales plan keeps the sales department on track, considering the details of how they must operate to hit their targets and achieve company objectives. Because the sales team is the primary driver of revenue, it is an incredibly important document. [Related article: Adopting a CRM? How to Get Buy-in From Your Sales Department ]

“It’s extremely important to have a sales plan in place, almost a must,” Adams said. “Without this plan, it’s almost impossible to get through the year and hit the company’s sales goals.”

It’s not uncommon to encounter obstacles along the way, however. A good sales plan accounts for that.

“Almost always, you’ll run into the speed bumps along the way, but with a plan in place, it makes it a whole lot easier to navigate through it all,” Adams said. “The sales plan allows you to adjust when necessary so the goal can still be hit. I strongly believe a plan allows you to stay in control and reduce the risk while being able to measure the team’s results along the way to that finish line.”

Sales plan templates

Sales templates are helpful in that many of them are based on tried-and-true formats that have been used by businesses across several industries. They can also provide structure so that it is clear to each employee what their role and responsibilities are. 

“A template helps plan each individual’s daily activities in a structured way,” Adams said. “If you know what each person is doing daily, it’s easier to help correct what’s going wrong. It helps with things like conversion rates, etc. Yes, these templates can be customized in any way a team’s manager sees fit, based on how he believes the team will perform better.”

Sales plans should be unique to the company; however, there are key components they should always include. Because there is somewhat of a formula, you can use a template.

Templates are extremely helpful, Gibbs said. “It creates uniformity for the team, as well as a yearly or quarterly sales plan to present to senior management.”

Gibbs added that templates can easily be customized to meet the needs of a particular business or sales team.

Keeping your team on track with a sales plan

Planning is vital for any business, especially when dealing with sales targets. Before selling your product or service, you must outline your goals and ways to execute them. Essentially, a sales plan enables you to mitigate problems and risks. When there is a clear plan of action, you will know how to proceed in order to attain your goals. 

Enid Burns contributed to the writing and reporting in this article. Source interviews were conducted for a previous version of this article.

Building Better Businesses

Insights on business strategy and culture, right to your inbox. Part of the business.com network.

• Credit cards
• View all credit cards
• Banking guide
• Loans guide
• Insurance guide
• Personal finance
• View all personal finance
• Small business
• Small business guide
• View all taxes

You’re our first priority. Every time.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

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.

On a similar note...

Find small-business financing

Compare multiple lenders that fit your business

Small Business Resources is now the Center for Business Empowerment.

Suggested Keywords

Center for Business Empowerment

How to write an effective business plan in 11 steps (with workbook)

February 02, 2023 | 14 minute read

Writing a business plan is a powerful way to position your small business for success as you set out to meet your goals. Landmark studies suggest that business founders who write one are 16% more likely to build viable businesses than those who don’t and that entrepreneurs focused on high growth are 7% more likely to have written a business plan. 1 Even better, other research shows that owners who complete business plans are twice as likely to grow their business successfully or obtain capital compared with those who don’t. 2

The best time to write a business plan is typically after you have vetted and researched your business idea. (See How to start a business in 15 steps. ) If conditions change later, you can rewrite the plan, much like how your GPS reroutes you if there is traffic ahead. When you update your plan regularly, everyone on your team, including outside stakeholders such as investors, will know where you are headed.

What is a business plan?

Typically 15-20 pages long, a business plan is a document that explains what your business does, what you want to achieve in the business and the strategy you plan to use to get there. It details the opportunities you are going after, what resources you will need to achieve your goals and how you will define success.

Why are business plans important?

Business plans help you think through barriers and discover opportunities you may have recognized subconsciously but have not yet articulated. A business plan can also help you to attract potential lenders, investors and partners by providing them with evidence that your business has all of the ingredients necessary for success.

What questions should a business plan answer?

Your business plan should explain how your business will grow and succeed. A great plan will provide detailed answers to questions that a banker or investor will have before putting money into the business, such as:

• What products or services do you provide?
• Who is your target customer?
• What are the benefits of your product and service for customers?
• How much will you charge?
• What is the size of the market?
• What are your marketing plans?
• How much competition does the business face in penetrating that market?
• How much experience does the management team have in running businesses like it?
• How do you plan to measure success?
• What do you expect the business’s revenue, costs and profit to be for the first few years?
• How much will it cost to achieve the goals stated in the business plan?
• What is the long-term growth potential of the business? Is the business scalable?
• How will you enable investors to reap the rewards of backing the business? Do you plan to sell the business to a bigger company eventually or take it public as your “exit strategy”?

How to write a business plan in 11 steps

This step-by-step outline will make it easier to write an effective business plan, even if you’re managing the day-to-day demands of starting a new business. Creating a table of contents that lists key sections of the plan with page numbers will make it easy for readers to flip to the sections that interest them most.

• Use our editable workbook to capture notes and organize your thoughts as you review these critical steps. Note: To avoid losing your work, please remember to save this PDF to your desktop before you begin.

1. Executive summary

The executive summary is your opportunity to make a great first impression on investors and bankers. It should be just as engaging as the enthusiastic elevator pitch you might give if you bumped into a potential backer in an elevator.

In three to five paragraphs, you’ll want to explain what your business does, why it will succeed and where it will be in five years. The executive summary should include short descriptions of the following:

• Business concept. What will your business do?
• Goals and vision. What do you expect the business to achieve, both financially and for other key stakeholders, such as the community?
• Product or service. What does your product or service do — and how is it different from those of competitors?
• Target market. Who do you expect to buy your product or service?
• Marketing strategy. How will you tell people about your product or service?
• Current revenue and profits. If your business is pre-revenue, offer sales projections.
• Projected revenue and profits. Provide a realistic look at the next year, as well as the next three years, ideally.
• Financial resources needed. How much money do you need to borrow or raise to fund your plan?
• Management team. Who are the company’s leaders and what relevant experience will they contribute?

2. Business overview

Here is where you provide a brief history of the business and describe the product(s) or service(s) it offers. Make sure you describe the problem you are attempting to solve, for whom you will solve it (your customers) and how you will solve it. Be sure to describe your business model (such as direct-to-consumer sales through an online store) so readers can envision how you will make sales. Also mention your business structure (such as a sole proprietorship , general partnership, limited partnership or corporation) and why it is advantageous for the business. And be sure to provide context on the state of your industry and where your business will fit into it.

3. Business goals and vision

Explain what you hope to achieve in the business (your vision) as well as its mission and value proposition. Most founders judge success by the size to which they grow the business using measures such as revenue or number of employees. Your goals may not be solely financial. You may also wish to provide jobs or solve a societal problem. If that’s the case, mention those goals as well.

If you are seeking outside funding, explain why you need the money, how you will put it to work to grow the business and how you expect to achieve the goals you have set for the business. Also explain your exit strategy—that is, how you would enable investors to cash out, whether that means selling the business or taking it public.

4. Management and organization

Many investors say they bet on the team behind a business more than the business idea, trusting that talented and experienced people will be capable of bringing sound business concepts to life. With that in mind, make sure to provide short bios of the key members of your management team (including yourself) that emphasize the relevant experience each individual brings, along with their special talents and industry recognition. Many business plans include headshots of the management team with the bios.

Also describe more about how your organization will be structured. Your company may be a sole proprietorship, a limited liability company (LLC) or a corporation in one or more states.

If you will need to hire people for specific roles, this is the place to mention those plans. And if you will rely on outside consultants for certain roles — such as an outsourced CFO — be sure to make a note of it here. Outside backers want to know if you’ve anticipated the staffing you need.

5. Service or product line

A business will only succeed if it sells something people want or need to buy. As you describe the products or services you will offer, make sure to explain what benefits they will provide to your target customers, how they will differ from competing offerings and what the buying cycle will likely be so it is clear that you can actually sell what you are offering. If you have plans to protect your intellectual property through a copyright or patent filing, be sure to mention that. Also explain any research and development work that is underway to show investors the potential for additional revenue streams.

6. Market/industry analysis

Anyone interested in providing financial backing to your business will want to know how big your company can potentially grow so they have an idea of what kind of returns they can expect. In this section, you’ll be able to convey that by explaining to whom you will be selling and how much opportunity there is to reach them. Key details to include are market size; a strengths, weaknesses, opportunities and threats (SWOT) analysis ; a competitive analysis; and customer segmentation. Make it clear how you developed any projections you’ve made by citing interviews or research.

Also describe the current state of the industry. Where is there room for improvement? Are most companies using antiquated processes and technology? If your business is a local one, what is the market in your area like? Do most of the restaurants where you plan to open your café serve mediocre food? What will you do better?

In this section, also list competitors, including their names, websites and social media handles. Describe each source of competition and how your business will address it.

7. Sales and marketing

Explain how you will spread the word to potential customers about what you sell. Will you be using paid online search advertising, social media promotions, traditional direct mail, print advertising in local publications, sponsorship of a local radio or TV show, your own YouTube content or some other method entirely? List all of the methods you will use.

Make sure readers know exactly what the path to a sale will be and why that approach will resonate with customers in your ideal target markets as well as existing customer segments. If you have already begun using the methods you’ve outlined, include data on the results so readers know whether they have been effective.

8. Financials

In a new business, you may not have any past financial data or financial statements to include, but that doesn’t mean you have nothing to share. Preparing a budget and financial plan will help show investors or bankers that you have developed a clear understanding of the financial aspects of running your business. (The U.S. Small Business Administration (SBA) has prepared a guide you can use; SCORE , a nonprofit organization that partners with the SBA, offers a financial projections template to help you look ahead.) For an existing business, you will want to include income statements, profit and loss statements, cash flow statements and balance sheets, ideally going back three years.

Make a list of the specific steps you plan to take to achieve the financial results you have outlined. The steps are generally the most detailed for the first year, given that you may need to revise your plan later as you gather feedback from the marketplace.

Include interactive spreadsheets that contain a detailed financial analysis showing how much it costs your business to produce the goods and services you provide, the profits you will generate, any planned investments and the taxes you will pay. See our startup costs calculator to get started.

9. Financial projections

Creating a detailed sales forecast can help you get outside backers excited about supporting you. A sales forecast is typically a table or simple line graph that shows the projected sales of the company over time with monthly or quarterly details for the next 12 months and a broader projection as much as five years into the future. If you haven’t yet launched the company, turn to your market research to develop estimates. For more information, see “ How to create a sales forecast for your small business. ”

10. Funding request

If you are seeking outside financing such as a loan or equity investment, your potential backers will want to know how much money you need and how you will spend it. Describe the amount you are trying to raise, how you arrived at that number and what type of funding you are seeking (such as debt, equity or a combination of both). If you are contributing some of your own funds, it is worth noting this, as it shows that you have skin in the game.

11. Appendix

This should include any information and supporting documents that will help investors and bankers gain a greater understanding of the potential of your business. Depending on your industry, you might include local permits, licenses, deeds and other legal documents; professional certifications and licenses; media clips; information on patents and other intellectual property; key customer contracts and purchase orders; and other relevant documents.

Some business owners find it helpful to develop a list of key concepts, such as the names of the company’s products and industry terms. This can be helpful if you do business in an industry that may not be familiar to the readers of the business plan.

Tips for creating an effective business plan

Use clear, simple language. It’ll be easier to win people over if your plan is easy to read. Steer clear of industry jargon, and if you must use any phrases the average adult won’t know, be sure to define them.

Emphasize what makes your business unique. Investors and bankers want to know how you will solve a problem or gap in the marketplace differently from anyone else. Make sure you’re conveying your differentiating factors.

Nail the details. An ideal business plan will be detailed and accurate. Make sure that any financial projections you make are realistic and grounded in solid market research. (If you need help in making your calculations, you can get free advice at SCORE.) Seasoned bankers and investors will quickly spot numbers that are overly optimistic.

Take time to polish it. Your final version of the plan should be neat and professional with an attractive layout and copy that has been carefully proofread.

Include professional photos. High-quality shots of your product or place of business can help make it clear why your business stands out.

Updating an existing business plan

Some business owners in rapidly growing businesses update their business plan quarterly. Others do so every six months or every year. When you update your plan make sure you consider these three things:

• Are your goals still current? As you’ve tested your concept, your goals may have changed. The plan should reflect this.
• Have you revised any strategies in response to feedback from the marketplace? You may have found that your offerings resonated with a different customer segment than you expected or that your advertising plan didn’t work and you need to try a different approach. Given that investors will want to see a marketing and advertising plan that works, keeping this section current will ensure you are always ready to meet with one who shows interest.
• Have your staffing needs changed? If you set ambitious goals, you may need help from team members or outside consultants you did not anticipate when you first started the business. Take stock now so you can plan accordingly.

Final thoughts

Most business owners don’t follow their business plans exactly. But writing one will get you off to a much better start than simply opening your doors and hoping for the best, and it will be easier to analyze any aspects of your business that aren’t working later so you can course-correct. Ultimately, it may be one of the best investments you can make in the future of your business.

Business plan FAQs

What are common mistakes when writing a business plan.

The biggest mistake you can make when writing a business plan is creating one before the idea has been properly researched and tested. Not every idea is meant to become a business. Other common mistakes include:

• Not describing your management team in a way that is appealing to investors. Simply cutting and pasting someone’s professional bio into the management section won’t do the trick. You’ll want to highlight the credentials of each team member in a way that is relevant to this business.
• Failing to include financial projections — or including overly optimistic ones. Investors look at a lot of business plans and can tell quickly whether your numbers are accurate or pie in the sky. Have a good small business accountant review your numbers to make sure they are realistic.
• Lack of a clear exit strategy for investors. Investors may want the option to cash out eventually and would want to know how they can go about doing that.
• Slapdash presentation. Make sure to fact-check any industry statistics you cite and that any charts, graphs or images are carefully prepared and easy to read.

What are the different types of business plans?

There are a variety of styles of business plans. Here are three major types:

Traditional business plan. This is a formal document for pitching to investors based on the outline in this article. If your business is a complicated one, the plan may exceed the typical length and stretch to as many as 50 pages.

One-page business plan. This is a simplified version of a formal business plan designed to fit on one page. Typically, each section will be described in bullet points or in a chart format rather than in the narrative style of an executive summary. It can be helpful as a summary document to give to investors — or for internal use. Another variation on the one-page theme is the business model canvas .

Lean plan. This methodology for creating a business plan is ideal for a business that is evolving quickly. It is designed in a way that makes it easy to update on a regular basis. Lean business plans are usually about one page long. The SBA has provided an example of what this type of plan includes on its website.

Is the business plan for a nonprofit different from the plan for other business types?

Many elements of a business plan for a nonprofit are similar to those of a for-profit business. However, because the goal of a nonprofit is achieving its mission — rather than turning a profit — the business plan should emphasize its specific goals on that front and how it will achieve them. Many nonprofits set key performance indicators (KPIs) — numbers that they track to show they are moving the needle on their goals.

Nonprofits will generally emphasize their fundraising strategies in their business plans rather than sales strategies. The funds they raise are the lifeblood of the programs they run.

What is the difference between a business plan, a strategic plan and a marketing plan?

A strategic plan is different from the type of business plan you’ve read about here in that it emphasizes the long-term goals of the business and how your business will achieve them over the long run. A strong business plan can function as both a business plan and a strategic plan.

A marketing plan is different from a business plan in that it is focused on four main areas of the business: product (what you are selling and how you will differentiate it), price (how much your products or services will cost and why), promotion (how you will get your ideal customer to notice and buy what you are selling) and place (where you will sell your products). A thorough business plan may cover these topics, doing double duty as both a business plan and a marketing plan.

Explore more

Editable business plan workbook

Starting a new business

1 . Francis J. Green and Christian Hopp. “Research: Writing a Business Plan Makes Your Startup More Likely to Succeed.” HBR. July 14, 2017. Available online at https://hbr.org/2017/07/research-writing-a-business-plan-makes-your-startup-more-likely-to-succeed.

2 . CorpNet, “The Startup Business Plan: Why It’s Important and How You Can Create One,” June 29, 2022.

Important Disclosures and Information

Bank of America, Merrill, their affiliates and advisors do not provide legal, tax or accounting advice. Consult your own legal and/or tax advisors before making any financial decisions. Any informational materials provided are for your discussion or review purposes only. The content on the Center for Business Empowerment (including, without limitations, third party and any Bank of America content) is provided “as is” and carries no express or implied warranties, or promise or guaranty of success. Bank of America does not warrant or guarantee the accuracy, reliability, completeness, usefulness, non-infringement of intellectual property rights, or quality of any content, regardless of who originates that content, and disclaims the same to the extent allowable by law. All third party trademarks, service marks, trade names and logos referenced in this material are the property of their respective owners. Bank of America does not deliver and is not responsible for the products, services or performance of any third party.

Not all materials on the Center for Business Empowerment will be available in Spanish.

Certain links may direct you away from Bank of America to unaffiliated sites. Bank of America has not been involved in the preparation of the content supplied at unaffiliated sites and does not guarantee or assume any responsibility for their content. When you visit these sites, you are agreeing to all of their terms of use, including their privacy and security policies.

Credit cards, credit lines and loans are subject to credit approval and creditworthiness. Some restrictions may apply.

Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as “MLPF&S" or “Merrill") makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation (“BofA Corp."). MLPF&S is a registered broker-dealer, registered investment adviser,  Member SIPC , and a wholly owned subsidiary of BofA Corp.

Banking products are provided by Bank of America, N.A., and affiliated banks, Members FDIC, and wholly owned subsidiaries of BofA Corp.

“Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets division of Bank of America Corporation. Lending, derivatives, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc., which is a registered broker-dealer and Member of SIPC , and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. is a registered futures commission merchant with the CFTC and a member of the NFA.

Investment products:

• Build your business

Business Tools

• Profit Margin Calculator
• Business Name Generator
• Slogan Generator
• Traffic Calculator
• Ecommerce Statistics
• Ecommerce Wiki

Free business tools

Start a business and design the life you want – all in one place.

• © 2015-2024 Oberlo

How to Write a Business Plan in 2023: The Ultimate Guide for Every Entrepreneur

Are you starting a new business or trying to get a loan for your existing venture? If so, you’re going to need to know how to write a business plan. Business plans give entrepreneurs the opportunity to formally analyze and define every aspect of their business idea .

In this post, you’ll learn how to put together a business plan and find the best resources to help you along the way.

What is a Business Plan? 

A business plan is a formal document that outlines your business’s goals and how you will achieve those goals. Entrepreneurs who start out with business plans are 16 percent more likely to build successful companies , according to the Harvard Business Review.  Developing a business plan ensures sustainable success, guiding you as you grow your business, legitimizing your venture, and helping you secure funding (among countless other benefits). 

What Are the Main Purposes of a Business Plan?

Most financial institutions and service providers require you to submit a detailed business plan to obtain funding for your business. Online businesses will likely have a low overhead to start, so they may not need funding and therefore may not feel the need to write a business plan. That said, writing a business plan is still a good idea as it can help you secure a drastic increase limit on your credit card as your business grows or open a business account. This varies per bank.

If you’re growing your business, use it to help you raise expansion capital, create a growth strategy, find opportunities, and mitigate risks.Palo Alto software found that companies who make business plans are twice as likely to secure funding . .

If you’re just starting your business, making a business plan can help you  identify your strengths and weaknesses, communicate your vision to others, and develop accurate forecasts.

How to Make a Business Plan: The Prerequisites 

Here are the prerequisites to creating a solid business plan:

• Establish goals
• Understand your audience
• Determine your business plan format
• Get to writing! 

Establish Goals

There are two key questions to ask here: 

• What are you hoping to accomplish with your business?
• What are you hoping to accomplish with your business plan?

Approaching your business plan through that lens will help you focus on the end goal throughout the writing process. These also provide metrics to measure success against. 

Before writing your business plan, gather the content and data needed to inform what goes in it. This includes researching your market and industry – spanning everything from customer research to legalities you’ll need to consider. It’s a lot easier to start with the information already in front of you instead of researching each section individually as you go. 

Turn to guides, samples, and small business plan templates to help. Many countries have an official administration or service dedicated to providing information, resources, and tools to help entrepreneurs and store owners plan, launch, manage, and grow their businesses. 

The following will take you to online business plan guides and templates for specific countries.

• United States Small Business Administration (SBA) – The “write your business plan page” includes traditional and lean startup business plan formats, three downloadable sample business plans, a template, and a step-by-step build a business plan tool.
• Australian Government – The “business plan template” page includes a downloadable template, guide, and business plan creation app.
• UK Government Business and Self-Employed – The “write a business plan” page includes links to a downloadable business plan template and resources from trusted UK businesses. .
• Canada Business Network – The “writing your business plan” page includes a detailed guide to writing your business plan and links to business plan templates from Canadian business development organizations and banks.

These business resource sites also offer a wealth of valuable information for entrepreneurs including local and regional regulations, structuring, tax obligations, funding programs, market research data, and much more. Visit the sites above or do the following Google searches to find official local business resources in your area:

• your country government business services
• your state/province government business services
• your city government business services

Some Chamber of Commerce websites offer resources for business owners, including business plan guides and templates. Check your local chapter to see if they have any.

Banks that offer business funding also often have a resource section for entrepreneurs. Do a Google search to find banks that offer business funding as well as business plan advice to see the business plans that get funding. If your bank doesn’t offer any advice, search for the largest banks in your area:

• business plan guide bank name
• business plan samples bank name
• business plan template bank name

If you’re looking for more sample business plans, Bplans has over 500 free business plan samples organized by business type as well as a business plan template. Their collection includes 116 business plans for retail and online stores. Shopify also offers business plan templates intended to help small business owners and aspiring entrepreneurs identify functional areas of a business they may not have considered.

Understand Your Audience

Because business plans serve different purposes, you’re not always presenting it to the same audience. It’s important to understand who’s going to be reading your business plan, what you’re trying to convince them to do, and what hesitations they might have. 

That way, you can adapt your business plan accordingly. As such, your audience also determines which type of business plan format you use. Which brings us to our next point…

Which Business Plan Format Should You Use? 

The United States Small Business Administration (SBA) presents two business plan formats: 

• The traditional business plan format is for entrepreneurs who want to create a detailed plan for themselves or for business funding. 
• The lean startup business plan format, on the other hand, is for business owners that want to create a condensed, single-page business plan.

If the business plan is just for you and internal folks, draft a lean startup business plan or a customized version of the traditional business plan with only the sections you need. If you need it for business funding or other official purposes, choose the formal business plan and thoroughly complete the required sections while paying extra attention to financial projections.

If your business operates outside the U.S., clarify the preferred format with your bank.

How to Create a Business Plan: Questions to Ask Yourself

As you write a business plan, take time to not only analyze your business idea, but yourself as well. Ask the following questions to help you analyze your business idea along the way:

• Why do I want to start or expand my business?
• Do my goals (personal and professional) and values align with my business idea?
• What income do I need to generate for myself?
• What education, experience, and skills do I bring to my business?

How to Write a Business Plan Step by Step

According to the business plan template created by SCORE, Deluxe, and the SBA , a traditional business plan encompasses the following sections. 

• Executive summary
• Company description
• Products & services
• Market analysis
• Marketing & sales
• Management & organization
• Funding request
• Financial projections
• SWOT analysis

Since not everyone is aware of the key details to include in each section, we’ve listed information you can copy to fill in your business plan outline. Here’s how to build a business plan step by step.  

Executive Summary

The Executive Summary is the first part of your business plan, so this is where you need to hook readers in. Every business plan starts this way — even a simple business plan template should kick off with the Executive Summary. Summarize your entire business plan in a single page, highlighting details about your business that will excite potential investors and lenders. 

Explain what your business has to offer, your target market , what separates you from the competition, a little bit about yourself and the core people behind your business, and realistic projections about your business’ success.

While this is the first section of your business plan, write it after you’ve completed the rest of your business plan. It’s a lot easier because you can pull from the sections you’ve already written, and it’s easier to identify the best parts of your business plan to include on the first page.

Company Description

In the Company Description, share 411 about your business. Include basic details like: 

• Legal structure (sole proprietor, partnership, corporation, etc.)
• Business and tax ID numbers
• When the business started
• Ownership information
• Number of employees

Your mission statement , philosophy and values, vision, short- and long-term goals, and milestones along with a brief overview of your industry, market, outlook, and competitors should also be in the Company Description.

Pro tip: These are the details you’ll use each time you create a business profile, whether that's on social media, business directories, or other networks. Keep your information consistent to reduce confusion and instill more confidence in potential customers. 

Products & Services

The Products & Services section details what you plan to sell to customers. For a dropshipping business , this section should explain which trending products you’re going to sell, the pain points your products solve for customers, how you’ll price your products compared to your competitors, expected profit margin, and production and delivery details.

Remember to include any unique selling points for specific products or product groupings, such as low overhead, exclusive agreements with vendors, the ability to obtain products that are in short supply / high demand based on your connections, personalized customer service, or other advantages.

For dropshipping businesses selling hundreds or even thousands of products, detail the main categories of products and the number of products you plan to offer within each category. By doing this, it’s easier to visualize your business offerings as a whole to determine if you need more products in one category to fully flesh out your online store.

Market Analysis

The Market Analysis section of your business plan allows you to share the research you have done to learn about your target audience — the potential buyers of your products. People requesting a business plan will want to know that you have a solid understanding of your industry, the competitive landscape, who’s most likely to become your customers. It’s important to demonstrate that  there’s a large enough market for your product to make it profitable and/or to make a strong return on investment .

To complete the Market Analysis component of your business plan, check out the following resources for industry, market, and local economic research:

• U.S. Embassy websites in most countries have a business section with information for people who want to sell abroad. Business sections include a basic “getting started” guide, links to economic and data reports, trade events, and additional useful business links for a particular region.
• IBISWorld is a provider of free and paid industry research and procurement research reports for the United States , United Kingdom , Australia , and New Zealand .  
• Statista offers free and paid statistics and studies from over 18,000 sources including industry reports, country reports, market studies, outlook reports, and consumer market reports.   

Use these websites and others to learn about the projected growth of your industry and your potential profitability. You can also use social media tools like Facebook Audience Insights to estimate the size of your target market on the largest social network

Another way to research your market and products is through Google Trends . This free tool will allow you to see how often people search for the products your business offers over time. Be sure to explain how your business plans to capitalize on increasing and decreasing search trends accordingly.

Marketing & Sales

Knowing your target market is half the battle. In the Marketing & Sales section, share how you plan to reach and sell products to your target market. Outline the marketing and advertising strategies you intend to use to market your product to potential customers – search marketing , social media marketing , email marketing , and influencer marketing methods .

If you’re unsure how to market your business’ products, analyze your competitors for some inspiration. Discovering your competition’s marketing tactics will help you customize your own strategy for building a customer base and ultimately taking your business to the next level. 

Do a Google search for your competitor’s business name to find the websites, social accounts, and content they’ve created to market their products. Look at the ways your competitor uses each online entity to drive new customers to their website and product pages.

Then come up with a plan to convert a similar audience with your marketing and advertising messages. For dropshipping businesses, conversions will typically take place on your website as people purchase your products and/or by phone if you take orders over the phone. 

Management & Organization

In the Management & Organization piece of your business plan, describe the structure of your business. In terms of legal structure and incorporation, most businesses are classified as sole proprietorships (one owner), partnerships (two or more owners), corporations, or S corporations.

Draft a condensed resume for each of the key members of your business. If you’re a solopreneur , include how your past education and work experience will help you run each aspect of your business. If you have one or more partner(s) and employee(s), include their relevant education and experience as well.

Think of this as a great way to evaluate the strengths of each individual running your business. When self-evaluating, you’ll be able to identify the aspects of your business that’ll be easier to manage and which ones to delegate to freelancers, contractors, employees, and third-party services. This also makes it easier to find the best way to utilize their strengths for business growth.

Funding Request

Chances are, you don’t have a funding request for a startup dropshipping business since the appeal to dropshipping is the low upfront investment . If you’re looking for a loan, however, this would be the section where you outline the dollar amount you need, what you plan to invest in, and how you see the return on your investment.

Another way to use this section is to analyze the investment you have or plan to make when starting or growing your business. This should include everything from the computer you use to run your website to the monthly fee for business services.

Financial Projections

In Financial Projections, share your projected revenue and expenses for the first or next five years of your business. The idea here is to demonstrate that the revenue you’re anticipating will easily lead to a return on any investment, whether from your personal finances or a capital lending service.

If you’re looking for funding, you’ll need to go into detail with projected income statements, balance sheets, cash flow statements, and capital expenditure budgets. If you aren’t looking for funding, it won’t hurt to create these types of financial projections so you can realistically plan for the future of your business.

The Appendix of your business plan includes any supplemental documents needed throughout the sections of your business plan. These may include, but are not limited to: 

• Credit histories
• Product brochures
• Legal forms
• Supplier contracts

If you’re submitting your business plan for funding, contact the lender to see what documentation they want included with your funding request.

SWOT Analysis

In addition to the above sections, some business plans also include a SWOT Analysis. This is a one-page summary of your business’s strengths, weaknesses, opportunities, and threats. The strengths and weaknesses you include will be internal, whereas opportunities and threats you include will be external. 

Depending on the revelations of this section, you may or may not want to make a SWOT analysis when submitting your business plan formally unless it is requested.

Summary: How to Create a Business Plan

As you can see, creating a business plan for your dropshipping business is a great way to validate your business idea , discover your business’s strengths and weaknesses, and make a blueprint for your business's future.

In summary, here are the sections you will need to write for your business plan, step by step:

• SWOT analysis (Optional)

If you haven’t already, take the time to create a business plan to launch or grow your business in 2023!

Want to Learn More?

• How to Start a Dropshipping Business
• How to Register a Business in the USA
• How to Launch Your Ecommerce Store in Less Than 30 Minutes Flat
• 30+ Amazing Startup Business Ideas That’ll Make You Money

How to Write the Products and Services Section of Your Plan

1 min. read

Updated January 3, 2024

A complete business plan describes what you sell: either products, services, or both. This section needs to be more than a simple list of what you provide. It should detail the problem you’re solving, the value you provide, how it compares to the competition, and logistical information like pricing and distribution.

Learn how to go beyond simple product or service descriptions and create a compelling narrative around what you intend to offer.

What to include in the products and services section

What you add to this section fully depends on how much information you need to include in order to fully describe your products and services. While you may end up not including everything, it will benefit your business to work through these common topics.

A description of the problem and your solution

Successful businesses solve a problem for their customers. They make their lives easier or fill an unmet need and you need to identify and effectively describe a pain point that you are solving.

Optional information to strengthen your product and services section

While not required, there are additional pieces of information about your product and service offerings that you may want to include. These can be especially valuable for convincing investors that you have a business worth investing in.

Demonstrate business traction

Traction is an early indication that customers are eager to buy what you’re selling. Early sales, pre-orders, sign-ups, or contracts are just a few ways you can prove your idea has merit.

Understand the importance of intellectual property

Do you have patents, copyrights, or trademarks? It may be valuable to mention them here. They can be further proof that your idea has merit and the legal standing to be successful.

Why is the products and services section important?

The products and services section of your business plan provides the chance to describe why you’re in business. This will range from specific product or service details, such as pricing information, to more personally driven elements like your mission statement.

The point is that you need to paint a convincing picture, both technical and sentimental, of what you offer, how it works, and why it’s valuable. It needs to be a section that stands on its own and that is fully supported by the other sections of your plan.

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

Tim Berry is the founder and chairman of Palo Alto Software , a co-founder of Borland International, and a recognized expert in business planning. He has an MBA from Stanford and degrees with honors from the University of Oregon and the University of Notre Dame. Today, Tim dedicates most of his time to blogging, teaching and evangelizing for business planning.

Table of Contents

• What to include
• Optional information
• Why is this section important?

Related Articles

10 Min. Read

How to Write the Company Overview for a Business Plan

How to Write a Competitive Analysis for Your Business Plan

6 Min. Read

How to Write Your Business Plan Cover Page + Template

How to Set and Use Milestones in Your Business Plan

The Bplans Newsletter

The Bplans Weekly

Subscribe now for weekly advice and free downloadable resources to help start and grow your business.

We care about your privacy. See our privacy policy .

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

Salesforce is closed for new business in your area.

• Small Business
• How to Start a Business

How to Start a Business: A Comprehensive Guide and Essential Steps

Building an effective business launch plan

• Search Search Please fill out this field.

Conducting Market Research

Crafting a business plan, reviewing funding options, understanding legal requirements, implementing marketing strategies, the bottom line.

• How to Start a Business: A Comprehensive Guide and Essential Steps CURRENT ARTICLE
• How to Do Market Research, Types, and Example
• Marketing Strategy: What It Is, How It Works, How To Create One
• Marketing in Business: Strategies and Types Explained
• What Is a Marketing Plan? Types and How to Write One
• Business Development: Definition, Strategies, Steps & Skills
• Business Plan: What It Is, What's Included, and How to Write One
• Small Business Development Center (SBDC): Meaning, Types, Impact
• How to Write a Business Plan for a Loan
• Business Startup Costs: It’s in the Details
• Startup Capital Definition, Types, and Risks
• Bootstrapping Definition, Strategies, and Pros/Cons
• Crowdfunding: What It Is, How It Works, and Popular Websites
• Starting a Business with No Money: How to Begin
• A Comprehensive Guide to Establishing Business Credit
• Equity Financing: What It Is, How It Works, Pros and Cons
• Best Startup Business Loans
• Sole Proprietorship: What It Is, Pros & Cons, and Differences From an LLC
• Partnership: Definition, How It Works, Taxation, and Types
• What is an LLC? Limited Liability Company Structure and Benefits Defined
• Corporation: What It Is and How to Form One
• Starting a Small Business: Your Complete How-to Guide
• Starting an Online Business: A Step-by-Step Guide
• How to Start Your Own Bookkeeping Business: Essential Tips
• How to Start a Successful Dropshipping Business: A Comprehensive Guide

Starting a business in the United States involves a number of different steps spanning legal considerations, market research, creating a business plan, securing funding, and developing a marketing strategy. It also requires decisions about a business’ location, structure, name, taxation, and registration. Here are the key steps involved in starting a business, as well as important aspects of the process for entrepreneurs to consider.

Key Takeaways

• Entrepreneurs should start by conducting market research to understand their industry space, competition, and target customers.
• The next step is to write a comprehensive business plan, outlining the company’s structure, vision, and strategy.
• Securing funding in the form of grants, loans, venture capital, and/or crowdfunded money is crucial if you’re not self-funding.
• When choosing a venue, be aware of local regulations and requirements.
• Design your business structure with an eye to legal aspects, such as taxation and registration.
• Make a strategic marketing plan that addresses the specifics of the business, industry, and target market.

Before starting a business, entrepreneurs should conduct market research to determine their target audience, competition, and market trends. The U.S. Small Business Administration (SBA) breaks down common market considerations as follows:

• Demand : Is there a need for this product or service?
• Market size : How many people might be interested?
• Economic indicators : What are the income, employment rate, and spending habits of potential customers?
• Location : Are the target market and business well situated for each other?
• Competition : What is the market saturation ? Who and how many are you going up against?
• Pricing : What might a customer be willing to pay?

Market research should also include an analysis of market opportunities, barriers to market entry, and industry trends, as well as the competition’s strengths, weaknesses, and market share .

There are various methods for conducting market research, and these will vary depending on the nature of the industry and potential business. Data can come from a variety of places, including statistical agencies, economic and financial institutions, and industry sources, as well as direct consumer research through focus groups, interviews, surveys, and questionnaires.

A comprehensive business plan is like a blueprint. It lays the foundation for business development and affects decision-making, day-to-day operations, and growth. Potential investors or partners may want to review and assess it in advance of agreeing to work together. Financial institutions often request business plans as part of an application for a loan or other forms of capital. 

Business plans will differ according to the needs and nature of the company and should only include what makes sense for the business in question. As such, they can vary in length and structure. They can generally be divided into two formats: traditional and lean start-up. The latter is less common and more useful for simple businesses or those that expect to rework their traditional business plan frequently. It provides a vivid snapshot of the company through a small number of elements.

The process of funding a business depends on its needs and the vision and financial situation of its owner.  The first step is to calculate the start-up costs . Identify a list of expenses and put a dollar amount to each of them through research and requesting quotes. The SBA has a start-up costs calculator for small businesses that includes common types of business expenses.  

The next step is to determine how to get the money. Common methods include:

• Self-funding , also known as “ bootstrapping ”
• Finding investors willing to contribute to your venture capital
• Raising money online by crowdfunding
• Securing a business loan from a bank, an online lender, or a credit union
• Winning a business grant from a donor, usually a government, foundation, charity, or corporation

Different methods suit different businesses, and it’s important to consider the obligations associated with any avenue of funding. For example, investors generally want a degree of control for their money, while self-funding puts business owners fully in charge. Of course, investors also mitigate risk; self-funding does not.

Availability is another consideration. Loans are easier to get than grants, which don’t have to be paid back. Additionally, the federal government doesn’t provide grants for the purposes of starting or growing a business, although private organizations may. However, the SBA does guarantee several categories of loans , accessing capital that may not be available through traditional lenders. No matter the funding method(s), it’s essential to detail how the money will be used and lay out a future financial plan for the business, including sales projections and loan repayments . 

Businesses operating in the U.S. are legally subject to regulations at the local, county, state, and federal level involving taxation, business IDs, registrations, and permits.

Choosing a Business Location

Where a business operates will dictate such things as taxes, zoning laws (for brick-and-mortar locations), licenses, and permits. Other considerations when choosing a location might include:

• Human factors : These include target audience and the preferences of business owners and partners regarding convenience, knowledge of the area, and commuting distance.
• Regulations : Government at every level will assert its authority.
• Regionally specific expenses : Examples are average salaries (including required minimum wages), property or rental prices, insurance rates, utilities, and government fees and licensing.
• The tax and financial environment : Tax types include income, sales, corporate, and property, as well as tax credits; available investment incentives and loan programs may also be geographically determined.

Picking a Business Structure

The structure of a business should reflect the desired number of owners, liability characteristics, and tax status. Because these have legal and tax compliance implications , it’s important to understand them fully. If necessary, consult a business counselor, a lawyer, and/or an accountant.

Common business structures include:

• Sole proprietorship : A sole proprietorship is an unincorporated business that has just one owner, who pays personal income tax on its profits.
• Partnership : Partnership options include a limited partnership (LP) and a limited liability partnership (LLP) .
• Limited liability company (LLC) : An LLC protects its owners from personal responsibility for the company’s debts and liabilities.
• Corporation : The different types of corporations include C corp , S corp , B corp , closed corporation , and nonprofit .

Getting a Tax ID Number

A tax ID number is the equivalent of a Social Security number for a business. Whether or not a state and/or federal tax ID number is required will depend on the nature of the business and the location in which it’s registered.

A federal tax ID, also known as an employer identification number (EIN) , is required if a business:

• Operates as a corporation or partnership
• Pays federal taxes
• Has employees
• Files employment, excise, alcohol, tobacco, or firearms tax returns
• Has a Keogh plan
• Withholds taxes on non-wage income to nonresident aliens
• Is involved with certain types of organizations, including trusts, estates, real estate mortgage investment conduits, nonprofits, farmers’ cooperatives, and plan administrators

An EIN can also be useful if you want to open a business bank account, offer an employer-sponsored retirement plan, or apply for federal business licenses and permits. You can get one online from the Internal Revenue Service (IRS) . State websites will do the same for a state tax ID.

Registering a Business

How you register a business will depend on its location, nature, size, and business structure.  For example, a small business may not require any steps beyond registering its business name with local and state governments, and business owners whose business name is their own legal name might not need to register at all.

That said, registration can provide personal liability protection, tax-exempt status, and trademark protection, so it can be beneficial even if it’s not strictly required. Overall registration requirements, costs, and documentation will vary depending on the governing jurisdictions and business structure.  

Most LLCs, corporations, partnerships, and nonprofits are required to register at the state level and will need a registered agent to file on their behalf. Determining which state to register with can depend on factors such as:

• Whether the business has a physical presence in the state
• If the business often conducts in-person client meetings in the state
• If a large portion of business revenue comes from the state
• Whether the business has employees working in the state

If a business operates in more than one state, it may need to file for foreign qualification in other states in which it conducts business. In this case the business would register in the state in which it was formed (this would be considered the domestic state) and file for foreign qualification in any additional states.

Obtaining Permits

Filing for the applicable government licenses and permits will depend on the industry and nature of the business and might include submitting an application to a federal agency, state, county, and/or city. The SBA lists federally regulated business activities alongside the corresponding license-issuing agency, while state, county, and city regulations can be found on the official government websites for each region.

Every business should have a marketing plan that outlines an overall strategy and the day-to-day tactics used to execute it. A successful marketing plan will lay out tactics for how to connect with customers and convince them to buy what the company is selling. 

Marketing plans will vary according to the specifics of the industry, target market, and business, but they should aim to include descriptions of and strategies for the following:

• A target customer : Including market size, demographics, traits, and relevant trends
• Value propositions or business differentiators : An overview of the company’s competitive advantage with regard to employees, certifications, and offerings
• A sales and marketing plan : Including methods, channels, and a customer’s journey through interacting with the business
• Goals : Should cover different aspects of the marketing and sales strategy, such as social media follower growth, public relations opportunities, and sales targets
• An execution plan : Should detail tactics and break down higher-level goals into specific actions
• A budget : Detailing how much different marketing projects and activities will cost

How Much Does It Cost to Start a Business?

Business start-up costs will vary depending on the industry, business activity, and product or service offered. Home-based online businesses will usually cost less than those that require an office setting to meet with customers. The estimated cost can be calculated by first identifying a list of expenses and then researching and requesting quotes for each one. Use the SBA’s start-up costs calculator for common types of expenses associated with starting a small business.

What Should I Do Before Starting a Business?

Entrepreneurs seeking to start their own business should fully research and understand all the legal and funding considerations involved, conduct market research, and create marketing and business plans. They will also need to secure any necessary permits, licenses, funding, and business bank accounts.

What Types of Funding Are Available to Start a Business?

Start-up capital can come in the form of loans, grants, crowdfunding, venture capital, or self-funding. Note that the federal government does not provide grant funding for the purposes of starting a business, although some private sources do.

Do You Need to Write a Business Plan?

Business plans are comprehensive documents that lay out the most important information about a business. They reference its growth, development, and decision-making processes, and financial institutions and potential investors and partners generally request to review them in advance of agreeing to provide funding or to collaborate.

Starting a business is no easy feat, but research and preparation can help smooth the way. Having a firm understanding of your target market, competition, industry, goals, company structure, funding requirements, legal regulations, and marketing strategy, as well as conducting research and consulting experts where necessary, are all things that entrepreneurs can do to set themselves up for success.

U.S. Small Business Administration. “ Market Research and Competitive Analysis .”

U.S. Small Business Administration. “ Write Your Business Plan .”

U.S. Small Business Administration. " Calculate Your Startup Costs ."

U.S. Small Business Administration. “ Fund Your Business .”

U.S. Small Business Administration. “ Grants .”

U.S. Small Business Administration. “ Loans .”

U.S. Small Business Administration. “ Pick Your Business Location .”

U.S. Small Business Administration. “ Choose a Business Structure .”

Internal Revenue Service. “ Do You Need an EIN? ”

U.S. Small Business Administration. “ Get Federal and State Tax ID Numbers .”

U.S. Small Business Administration. “ Register Your Business .”

U.S. Small Business Administration. “ Apply for Licenses and Permits .”

U.S. Small Business Administration. “ Marketing and Sales .”

• Terms of Service
• Editorial Policy
• Privacy Policy
• Your Privacy Choices

• Updated Terms of Use
• New Privacy Policy
• Your Privacy Choices
• Closed Captioning Policy

Quotes displayed in real-time or delayed by at least 15 minutes. Market data provided by  Factset . Powered and implemented by  FactSet Digital Solutions .  Legal Statement .

This material may not be published, broadcast, rewritten, or redistributed. ©2024 FOX News Network, LLC. All rights reserved. FAQ - New Privacy Policy

How to start a candle business in 2024: 5 easy steps to selling candles from the comfort of your home

Starting a candle business can be an excellent source of additional income.

Small business owners fear they won't survive a second Biden term

Katlyn Swaffer and Maher Youssef explain how their small businesses have been affected by inflation and call on President Biden to address the issue.

Americans are rapidly working on side hustles as an additional source of income.

Fifty-four percent of Americans have begun a side hustle in the last twelve months, according to MarketWatch, as a means of making more money in addition to a primary source of income. 

All you really need to start a side hustle is an idea and an understanding of how to execute that idea. Taking a creative approach to your entrepreneurship can include a hobby-like business, and one of the more popular ones today is candle making.

Whether you have made a candle before or not, through trial and error, there are simple tricks to producing a product that is unique from what else is on the market.

One side hustle that can bring you extra income is a candle business. You can begin the business at home, selling online and at local craft fairs.  (David Crane/MediaNews Group/Los Angeles Daily News via Getty Images / Getty Images)

WANT TO MAKE MONEY OFF YOUR FLOURISHING GARDEN? HERE ARE 4 WAYS TO TURN YOUR CROPS INTO CASH 

You can make candles in your own home pretty easily. Here's a guide to get you started on your candle business. 

• Learn how to make candles from home
• Come up with a brand name, logo and label for your candles
• Write a business plan
• Register your business
• Decide how you are going to sell and get your business going

1. Learn how to make candles from home

The first step to starting your business is learning how to make candles. You'll need minimal supplies to get you started, including containers for your candles, wax, wicks and fragrance. 

It will take trial and error to perfect the look of your candle, the wick placement and the amount of fragrance you need for the perfect scent. If you want to add color to your candle, you'll also need to purchase dye. 

At first, the top of your candle may not appear totally smooth, your wick may be crooked, or you may not have enough fragrance for the scent. 

Practice makes perfect. The more candles you make, the better you'll get and the quicker you'll be ready to sell.  (Creative Touch Imaging Ltd./NurPhoto via Getty Images / Getty Images)

All the candles you make during your trial and error period can be gifts for friends and family because they probably won't be good enough to sell.

You could also buy wax molds to add uniqueness to your candles. 

TIPS FOR SELLING EGGS AND TURNING A PROFIT RIGHT FROM YOUR BACKYARD 

Once you have made numerous candles with success, you're ready to move to step two. 

2. Come up with a brand name, logo and label for your candles

You will need a unique brand name and logo for your business and a label for your candles. 

Your brand name should be something unique and memorable. You'll also want to create a logo for your business and a label to put on each of your candles. 

On each candle should be your brand name/logo as well as information about the candle itself, like the scent, instructions and safety information. 

3. Write a business plan

All businesses start out with a plan. 

A business plan is a document that describes the company and also highlights its goals. 

In a business plan, you can include elements like the mission statement, the products offered, the target audience of the company, marketing plans and financial information. 

HOW TO START A LEMONADE STAND WITH YOUR KIDS THIS SUMMER 

Your business plan is by no means set in stone. As your company grows and changes, your plan will, too. You can always make edits to your business plan when needed. 

4. Register your business

To run a business, you'll need to register it. The process varies depending on your state, so you'll need to look into the legal requirements where you live to avoid getting fined or having your business shut down. 

Once your business is registered, you'll receive an Employer Identification Number (EIN). This number is given to businesses for tax purposes.  

Also, make sure you obtain any necessary business licenses or permits in the state to legally operate your business. 

You'll want to have all these legal steps taken care of before you start selling candles. 

Make sure to have the scent of the candle and the name of your business clearly displayed on each container.  (David Crane/MediaNews Group/Los Angeles Daily News via Getty Images / Getty Images)

5. Decide how you are going to sell and get your business going

Now, it's time to officially launch your business. 

You will need to determine a price for your candles. According to Forbes, you'll want to aim for a 25% to 50% profit margin, so keep that in mind when you are considering how much to charge. 

You should create a website for your business with your contact information for customers to reach out to you. You can also sell your candles through your own website. 

Another way to sell is through an online marketplace like Etsy. 

GET FOX BUSINESS ON THE GO BY CLICKING HERE 

It's also a good idea to start social media channels for your business. Include high-quality pictures of your product on these channels. 

Social media is not only a great way to market your business, but another way you can sell your candles. 

During the warmer months, consider buying a booth at a local craft fair to sell your products. This is a great way to spend some time outside while also speaking directly with customers. 

Create Your Course

10 steps to creating a wildly successful online course, share this article.

As you read this, you might have an online course idea already hanging out in your head.

If you’re passionate about a topic, you’re good at it, and it fulfills a need for someone – then you have all the makings of becoming a successful course creator. 

Creating an online course has never been easier thanks to a host of new tools and platforms that do most of the heavy lifting for you. All you need is your knowledge.

And if you’re building a business, learning how to create an online course is an ideal way to open up an additional revenue stream for your business while establishing you as an expert in your niche.

By creating online courses, you turn your tried and true industry expertise into a lead-generating, money-making, impact-creating online course that gets your valuable skills out into the world. 

To help you learn how to create online courses from scratch, we’ve broken the process into 10 easy stages – with plenty of tips from ultra-successful course creators who have the academies and the accounts to prove it. 

We’ve also included templates, guides and workbooks to support you every step of the way, so you can get your online course business up and running in no time. 

Here are our 10 steps to create an online course:

Pick the perfect online course topic

Check if there’s market demand for your course idea, create compelling learning outcomes, structure your online course, choose the most engaging and effective delivery method, produce your online course: filming, recording, and editing, choose your online course platform, establish your pricing structure, launch your online course and market for success.

• Build an online course community

How to create an online course from scratch

At the heart of learning how to create an online course is understanding what experience, expertise, and skills you have to offer the world.

We’ve tailored this guide to help you draw out your own unique perspective to solve your audience’s challenges, pain points, and problems. And build your personal brand in the process.

While it’s definitely not an exhaustive list of everything you’ll need to create and sell an online course – it’s a ‘birds-eye-view’’ of the major milestones on the journey to creating your first online course and tips to help you find your unique voice along the way from creators who have been exactly where you are.

Here’s our 10 steps to creating an online course that’s tailored to your audience – and feels authentically you. 

Choosing a topic for your online course is the first step to building a successful and buzzing course business.

Your ideal course topic should ideally be something you’re passionate about, you’re skilled at, have experience in, and have a target audience for.

In other words, here are the 4 things you need for your online course topic :

• Target audience

Let’s look at each of those in more detail…

Your passion

Your online course topic doesn’t have to be something you’re head over heels in love with – but it should be a topic you’re passionate about. That means something you don’t mind thinking about, talking about, and reading about for weeks, months, and even years on end.

If you’re passionate about your online course topic, then it will translate into your content. You’ll be better placed to inspire and engage your audience while making your course feel more authentic and relatable. And keep your customers coming back.

Warning: choose a topic you’re not passionate about and you risk getting tired of teaching it. (And your lack of passion will lead to a course that’s as enticing as a cardboard sandwich.)

Related: How To Turn Your Passion Into A Business

Your skills

As well as being a topic you’re passionate about, you also need to have the specific skills that will help you teach others about your topic.

That means your topic should be something you’ve learnt how to do – and you’re confident you can teach other people how to do too. It might be something related to your profession or career or to a hobby or skill you have.

By teaching your chosen topic on a public stage, you can help people learn from you and solve the challenges they’re facing – while setting you up as a thought leader in your field. 

“We all have a gift that someone needs… Don’t let technology, imposter syndrome, or any other limiting beliefs scare you. Just put yourself out there and get started because you can always perfect yourself as you go.” – AMANDA SCHONBERG, THINKIFIC COURSE CREATOR AND MEMBERSHIP SITE OWNER

Related: How To Monetize Your Expertise

Your experience

We’re all the sum of our experiences. And your unique experiences are what will ultimately help you create a winning and wildly successful online course business.

Your experiences can include:

• Work experience
• Educational experience
• Hobbies and interests
• Volunteering
• Personal experiences e.g. relationships, family, spiritual, cultural experiences

If you can draw out the experiences that shaped you both professionally and personally, you can find a unique perspective for your online course that will help you stand out from the crowd.

“If you’re an expert in something – either from schooling or personal experience – I believe that you already have everything you need inside of you… The world is just waiting for you to share your knowledge, expertise, and lived experience in a way that’s digestible for others.” – KIAUNDRA JACKSON, THINKIFIC COURSE CREATOR

Your target audience

To create online courses that people will actually want to buy, you need to make sure you have a target audience in mind from the very beginning. Who will your course help? 

Try answering these questions to find your target audience:

• What demographic groups are you most likely to help with your skills and experience? 
• How do your audience think? What are their values, interests, and attitudes?
• What needs, challenges, and frustrations do they have?
• What do they currently not know or need help with?
• How will your online course help them solve the challenges they’re facing?

People take online courses because they need help getting from where they are now to a place they want to be in their future – and your knowledge and expertise can help them get there quicker.

If you have a target audience in mind now, you can make sure that everything you do when you’re creating your online course is tailored to them – including your course content, delivery methods, marketing, and sales strategy.

Related: How To Define Your Target Audience (+Templates & Workbooks)

Activity: How to find an online course topic

To help you zero in on the perfect course topic, try this simple exercise:

Start by taking a sheet of paper and writing “Passions & Interests,” “Skills,” and “Experience & Achievements” across the top of the page. Draw a line between them so that each is in its own column.

Next, go column by column and write down as many things as possible that come to mind for each category. It doesn’t have to be perfect. Just write down what comes into your head.

Now review what you’ve written. Do you notice any similarities between the 3 columns? They could point you to your perfect course topic. If nothing comes up, keep brainstorming. Go step-by-step through your experiences, including your education, career, and how you like to spend time.

The truth is, you don’t need to have a degree or decades of experience in your chosen course topic to become a successful course creator. In fact, some of the best courses out there focus on things you might consider a hobby. 

Here’s a list of 10 online courses from some of our most successful course creators:

• Microsoft Excel  
• Content creation
• Mindfulness and meditation
• Photography
• Roller skating
• Dog training

There are so many online course ideas to choose from (the possibilities are literally endless…).

Remember: If you love your topic, you’re good at it, you have experience , and it fulfills a need for someone – then you have everything you need to create an online course.

Hands up, who wants to spend weeks of their life creating an online course only to have no one buy it? Nope. Didn’t think so.

Once you’ve picked your online course topic (or at least narrowed your choices down to 2 or 3 options), the next step is to do market research for your idea. The goal at this stage is to understand if there’s demand for your online course and who else is currently offering courses on that topic. 

If you’re just getting started, here are 4 questions to ask to help validate market demand for your online course:

• Are people asking questions about your topic? If yes, what questions are they asking?
• Who are your biggest competitors? Are there any topics, formats, or audiences they don’t cover or serve?
• Will someone pay money to solve the problem your course topic covers?

Let’s look at each question more closely and check out some tools that will help you complete your market research. 

What questions are people asking about your topic?

To understand what questions people are asking about your topic, you need to do some online research. Here are 4 places to look online:

• Try searching your topic on Reddit or Quora to see what questions come up and how often.
• Take a look at Answer The Public to see what people are asking, how, and how often.
• Scroll through any Facebook groups on your topic to gain some insight into the challenges your audience has.
• Follow relevant creators on LinkedIn to see what they’re saying about your topic and who is commenting on their posts.

If you know where your target audience spends most time online, start your research there. For example, if you’re targeting florists, consider doing your research on Instagram and Pinterest rather than LinkedIn.

After doing this research, you’ll probably have a few words, concepts and ideas that show up in posts, forums, and questions over and over. You can use these as keywords for your research in the next section. 

Are people searching for your topic and asking questions?

To understand whether or not there’s demand for your course topic, it helps to know how many people are searching for terms related to your idea online. 

Google Trends is the quickest way to check general search trends for your topic. These trends will give you a better idea of how popular a topic is and how it’s been performing over time. 

Use the keywords from your initial research to look up the popularity of your topic. For example, you can see below that “ Online Yoga Classes ” spiked in popularity at the start of the pandemic in March 2020. And it’s still popular today.

Search volume is also a great way to validate demand for an online course topic. Use a tool like Google keyword planner , Semrush, or Ahrefs to look at your topic’s search volume.  

Enter your keywords, and each tool will give you insights into how many people are searching for each keyword. 

The more people who are searching for each keyword – and the more competitive it is – the more sought- after your chosen topic is likely to be. As you can see, “Online yoga courses” is a popular keyword and has decent competition. 

Pro tip: Keep in mind that the search volume and competition you’ll see in keyword research tools only applies to the specific keywords you’re searching for. There can be hundreds of different keywords for any given topic. For example, running a search on “online yoga courses” will give you different results to searching for “online yoga courses for beginners” and  “yoga courses online”.

Related: 5 Steps To Test Your Online Course Ideas In The Real World

Who are your main competitors and what are they missing?

As well as researching what your audience is currently searching for, it’s a good idea to take a look at your competition too.

Do some research to figure out who your top competitors are and what their courses offer. While you’re unlikely to be the first person to think of your idea, there’s a good chance you can do it differently and offer your target audience something new and fresh.

Online course marketplaces are a good place to check what’s already out there. You can also do a simple Google search – such as “online courses on [ your topic or idea ]”.

Many creator educators make the mistake of thinking that lots of competition for their chosen topic means their online course idea won’t be successful. In fact, it shows there’s already a thriving market for your course idea and it’s well worth investigating further. If other people are making courses on that topic, there must be potential to generate revenue from it. 

The trick is to find a gap in the market. 

Finding a gap in the market means finding an opportunity to offer something new that your competitors aren’t currently catering to – such as:

• An audience: Is there a demographic or group of people who aren’t currently being served by your competitors? Who can you appeal to that your competitors can’t?
• An idea: Are there any key concepts, methods, or ideas that your competitors aren’t covering? What’s missing from their course content?
• A format: Is there a course style or format that your competitors aren’t currently offering? What could you do differently? How could you make your course more engaging?

The online courses already on the market have the upper hand. The creators behind those courses have been learning about your audience, developing their course, and tailoring their marketing for longer than you have. 

The best way to find success? Make sure you’re offering your audience something different to what’s already out there.

Here are a few examples of how creators managed to create new, different, and better online courses compared to their competitors.

Miss Excel – Making a (kinda) boring subject fun

Despite the stiff competition for Microsoft Excel courses, Miss Excel – real name Kat Norton – carved out a niche for herself in a crowded marketplace by using TikTok to create bite-sized Excel courses and infusing creativity, fun, and enthusiasm into her content. Making an otherwise boring topic super approachable.  

Miss Excel began by posting a new video on TikTok once a day. Then one of her videos went viral and hit 100,000 views in just four days. After that, the rest was history.

After her first video hit it big, Miss Excel was able to massively increase her online course sales, quit her job, and focus on growing her online course business full-time. She now boasts an impressive lineup of courses on Thinkific , helping over 17,000 students learn how to improve their Excel skills and bringing in a whopping 6-figure income in the process. 

The Budgetnista – Catering to an underserved audience 

Thinkific creator Tiffany Aliche from The Budgetnista found there was no shortage of creators offering financial advice. But she quickly realized that few online courses were catering to women – specifically black women – and this was a niche where she could use her skills and expertise to make a meaningful difference. 

By creating online courses tailored to her target audience, Tiffany carved out a hugely successful niche in a competitive industry – and built a 7-figure business in the process. To date, she’s helped over 2 million women learn how to manage their money, get out of debt, and save money smarter.

“I want to help women, especially black women, live richer lives. Because we have been left out of the financial conversation for so long.” -TIFFANY ALICHE, THINKIFIC COURSE CREATOR AND MEMBERSHIP SITE OWNER

Will someone pay to solve the problem your course topic covers?

Of course, to validate your online course idea, you also need to make sure that people will be willing to pay money for the products and services you’re offering.

There are a few ways to figure out who will pay for your course and how much they’ll pay. Here are 3 popular methods to validate your course idea:

• Talk to your audience : If you’re not engaging your audience during your market research, you’re missing out on valuable insights. Ask your audience about their challenges, needs, and whether or not they’d pay for a course to overcome them. Use surveys, quizzes, and 1:1 interviews to conduct your audience research and hear what your audience have to say.
• Create a free mini course: To check demand for your online course topic, create a free mini course for people to download via your website and/or social media channels. Depending on the interest in your free course, you can get a feel for whether or not a paid course would sell – and gather feedback from your audience on what could be improved and what they want to see more of.
• Pre-sell your course : To avoid creating a full-length course that no one buys, try pre-selling your online course before you create it. Pre-selling is one of the best approaches to launching an online course to make sure that you have an audience ready-and-waiting for your release date – and it can pre-fund your course production too. 

Related: 4 Steps To Validating And Selling Your Online Course

Once you’ve finalized your course topic – including who you’re tailoring your course to – it’s time to get clear on what exactly you’re offering your learners.

A critical step in learning how to create an online course is identifying your learning outcomes. Think of learning outcomes like your big picture goals for the course. Your learning outcomes summarize what your learners will gain from taking your course – and they’ll also play a key part in marketing your course to potential students.

To your learners, your learning outcomes explain clearly and succinctly what they’ll be able to do after taking your course. This means they know exactly what they’re getting from your online course before they start, helping to make sure that the people who hit “buy” are the right fit for your product.

The result? Higher completion rates, better satisfaction scores , glowing testimonials, and fewer refund requests.

How to write learning outcomes for your online course

To help you write your learning outcomes for your online course, focus on these 3 key things:

• What your learners will be able to DO by the end of your course
• What your learners will KNOW by the end of your course
• How your learners will FEEL by the end of your course

In other words, your learning outcomes should cover the skills your learners will gain, the knowledge they’ll acquire, and the attitudes and emotions they’ll feel after completing it.

Here is a formula from our creators for creating winning learning outcomes. Use this structure to create your own:

VERB + What they will do (with a measurement where possible) + how they will do it.

For example:

By the end of this program, you will be able to formulate your 3 profitable packages and offerings for your wider online course business using our profitable education business model.

Complete this statement using the formula to write your own learning outcomes: 

By the end of this program, you will be able to…

•     __________________________

Try to repeat this exercise for the skills, knowledge, and emotions your learners will have. When you’re done, you should have 9+ learning outcomes for your course.

It’s up to you whether you choose to display your learning outcomes in sentence form like this, as bullet points, or in some other format on your sales page and website. For example, Mimi Goodwin’s Sew It! Academy has a range of learning outcomes listed under each of their course pricing plans. 

As you can see, the learning outcomes are clearly listed below the cost of each membership plan. Take the ‘Kids Only’ plan for example – learners will get to understand sewing machine basics, how to cut, pin, and iron, how to sew in a straight line, and the basic stitches and terms. 

With these basic learning outcomes, the Sew It! Academy’s customers know exactly what to expect from their purchase and can easily decide if it’s the right choice for them.

“If you start at the beginning, you just go down a rabbit hole… Instead, look at the end result that you want to achieve, and focus on how you’re helping your students to transform.” – GEORGE PITTS, THINKIFIC COURSE CREATOR

Related: How To Craft Magnetic & Compelling Learning Outcomes

Video embed: https://youtu.be/IauJLnNx8HI

Now you’re clear on the learning outcomes for your online course, you can begin to organize and structure your course content. 

If your course topic has a step-by-step linear progression – like learning a new yoga pose –  this stage should be easy.

If your course topic is more complex, you’ll need to break it down into smaller sub-topics. Try to group similar themes, tips, and ideas into different modules and structure the lessons within each module in the most progressive and logical manner. The idea here is to form a flowing sequence of lessons .

Need more help? Here are 4 tips from our creators:

Plan your online course with an instructional design storyboard

An instructional design storyboard will help save you a lot of time in the process of planning your online course content. It’s designed to keep your training focused and makes sure you hit all the most important points in the learning journey – before you sink time into fleshing out your online course.

Storyboards aren’t just a tool for planning videos. They can help you map high-level learning themes. For example, you could storyboard your student’s learning objectives using a Bloom’s Taxonomy storyboard , that covers all the levels of mastery your students need to master along the way.

Related: How to Plan an Online Course (Templates & Tips)

From here, you can start planning what courses you’ll need to create based on the themes you’ve come up with.

Related: 10 Instructional Design Models For Creating A Winning Online Course

Create a course outline

To give your course creation process more focus, create a course outline.

Think of your course outline as the roadmap for how your online course will bring your learners from point A to point B. A course outline will help you deliver content to your learners in a structured, ordered way, layering skill upon skill until they finish your course feeling like an expert.

To help you create yours, download a copy of our course outline template here.

“I’ll get a sense of how things [in the course] are flowing and then I work through it in order from the top down. I’m always adding in things, and sometimes I’ll take things out if they seem irrelevant or if I’ve covered it somewhere else.” – FIONA HUMBERSTONE, THINKIFIC COURSE CREATOR

Plan your individual lessons

As well as thinking about your high level course outline, you’ll also need to plan your individual lessons.

When it comes to creating a lesson plan , it’s helpful to start with a few questions to determine the goal of your lesson.

• What do your students already know?
• What do they need to learn?
• What tasks and activities will help to lock that knowledge into place?

Here’s an example of a lesson plan, including learning objectives and the key topics covered.

Lesson #1: How To Source Ingredients For Baking

Learning Objective: Learn how to source ingredients for baking to save time and money

Topics Covered:

• How to find fresh locally sourced ingredients
• What ingredients to buy in bulk for multiple recipes
• How to evaluate ingredients by nutritional value

Create a lesson plan for every lesson in your online course to help you structure your content – and make your life easier when it comes to recording and creating the lessons.

Related: The Ultimate List of Free Online Course Lesson Plan Templates

Consider how you’ll structure your course academy

Most creator educators rarely create just one online course. Chances are, you’ll probably end up with a whole academy made up of many different courses.

If you can think about how you’ll structure your academy at this stage, you can understand more clearly how each course fits into the wider framework of your business.

Here’s the simplest way to think about structuring your online courses – you can follow this method to create an entire academy:

For example, let’s say the goal of your academy is to teach people about sewing. You might have a bundle of courses on sewing projects and patterns, including:

• A course on fabrics and garment sewing; a chapter about how to draft a garment; and a video lesson on using basic shapes to create a clothing item.
• A course on pattern making; with a chapter on how to read basic patterns; and a video lesson demonstrating how to sew a pattern.

Sound familiar? We gave you a glimpse of this earlier with Sew it! Academy’s pricing plan. This example was lifted straight from their course catalog. The Sew it! Academy is an ideal example of how you can bundle separate courses into cohesive units and create an overarching academy with a clear goal. 

Check out this structure map for another basic example:

By thinking about your online courses as part of a wider academy, you can build a cohesive brand throughout all your course content – making it easier to sell your courses as bundles and become known as a thought leader in your industry or field. 

“You need to do two things: make it easy for somebody to tell a friend about what you do, and make it easy for your brand to have a professional, recognizable look. That brand recognition helps give people the ability to connect the dots.” – AMANDA ROBINSON, THINKIFIC COURSE CREATOR

You’re at the halfway point for how to create an online course that wows your audience.

To recap, you have:

• Picked the perfect course topic
• Validated demand for that topic
• Created clear and compelling learning outcomes
• Designed your course structure and plan

Now, it’s time to decide how you’ll deliver your content to create an engaging online course your learners will love.

When figuring out the best way to create an online course, you need to keep in mind your audience’s different learning needs and the ways you can deliver information to make your course as interesting as possible for your learners.

Here are a few questions to get the creative juices flowing:

• Will you have videos, reading content, activities, audio content?
• What type of visuals will you use?
• Will you have opportunities for social learning ?
• How will you make your course fun and engaging?
• How will you help students with different learning styles ?

To help you design effective learning content, follow these 3 tips.

Related: How To Design Your Online Course (Visually And Structurally)

Use a blend of different teaching techniques to make content more engaging

Traditional classroom experiences don’t always translate nicely into engaging online learning experiences. So it’s important to find ways to make your online course fun, easy, and interesting to complete. 

Here are 8 ways to make your online course more engaging :

• Bring storytelling into your teaching
• Create a learning community
• Use both synchronous and asynchronous learning
• Host live lessons or Q&As
• Use microlearning to break big topics into bite-sized chunks
• Include gamification to motivate your students
• Design your course to be accessible
• Make your courses interactive with quizzes

“I like to think of delivering your course like putting together a sitcom episode… Use lots of relevant and fun examples in your delivery and change slides and/or camera angles often. The former will keep the content interesting and the latter will re-engage the brain of your student.” – SAMANTHA KING, THINKIFIC COURSE CREATOR

Engagement strategies like live Q&As and quizzes can be fun and add another dimension to your course content, helping to create the best possible learning experience for your audience.

When you’re creating an online course, make sure you’re also using universal design learning principles to ensure your course is accessible for anyone and everyone.

“Ask questions that make them think. Throw in a surprise slide every now and then to alert their senses and above all incorporate an opportunity to connect with you either on Facebook Live, Zoom or Instagram Live.” – YETUNDE SHORTERS, THINKIFIC COURSE CREATOR

Related: 24 Expert Tips On How To Be A Better Teacher

Don’t make your online course too long

The ideal length of your online course is the shortest amount of time it takes to get your students from point A to point B. (The shorter, the better.)

There’s no one-size fits all approach to creating an online course. But in many cases, bite-sized learning can be just as impactful as a lengthy online course. 

A few factors may influence the length of your course – these include:

• The complexity of the topic: Your chosen course topic will determine how long your course content needs to be. For example, a course on rocket science will probably be longer than a course on how to change a tire.
• Requirements for continuing education credits: If you’re hoping to get your course certified for continuing education, your learners may need to complete a certain number of hours. These requirements will influence the length of your course and how complex your course may need to be.
• Your pricing structure: If you’re planning to create a range of online courses at different price points, this might influence how long your course is. For example, if you’re offering a deep-dive premium course offer , it may end up being longer and more in-depth than your lower ticket introductory course that just covers the basics.

Many first-time course creators fall into the trap of thinking they need to put everything they know into one course. But the secret to learning how to create an online course is knowing what to include – and what not to include.

In fact, you might be more successful if you break your course topic up into several smaller courses rather than one big course, giving your audience the chance to cherry pick the content they want to learn.

Add social elements like learning communities and cohort-based learning

We’re social animals. And one of the biggest challenges with self-paced online learning is finding ways to engage your learners and make the learning experience more social.

Consider building an online community to help facilitate meaningful connections between you and your customers. Learning communities complement online courses perfectly because they open up a space for social learning, peer-to-peer support, and learner-to-educator support. 

Online learning communities also help with accountability – learners can be paired up or placed in cohorts to collaborate on activities and hold each other accountable for hitting their learning goals.

“Online learning is definitely the thing that’s working… But along with that, I think a community or a way to touch base is important.” – EVELYN WOODS, THINKIFIC COURSE CREATOR

Cohort-based learning is also a popular format for online courses. This model differs from self-paced learning as it’s a synchronous learning method where people gather to learn in real-time, putting the emphasis on collaboration and teamwork rather than individual learning. Cohort-based classes are a little more work to manage and coordinate – but learners tend to love them. 

And as a bonus, online communities will also help you in marketing your online course, turning your learners into powerful brand advocates – and opening up more opportunities to upsell and cross-sell to your existing customers in the future. More on that below.

Related: How To Create A Cohort-Based Course

When you’re confident in your online course structure, plan, and delivery methods, you’re ready to start creating your online course for real – including filming, recording, and editing your content. 

While this process will look different for every creator, depending on your course delivery plan, it’s likely you’ll need to shoot some video content. And you know what that means… it’s time to get in front of the camera and hit record.

Some of the most popular recording styles for online course content include:

• Talking heads – One of the top recording formats for creating online courses, talking head videos feature your face and upper body in the frame as you talk to camera. You might have a greenscreen, projector or whiteboard behind you for helpful materials like presentation slides, visuals, diagrams, animations, and much more. Consider shooting other angles too to make your content more visually interesting.
• Screen recording – Record your device’s screen to create your online course content. This style of video is used most often to walk viewers through a process, explain a concept, or create a how-to guide. You might choose to feature your face or an avatar on-screen as well. 
• Voiceovers – A voiceover is similar to a screen recording but you’re narrating what’s happening on screen. This style is often used for presentations and usually the speaker isn’t shown on screen. 

Related: How To Set Up A Video Recording Studio

Pro-Tip: Even though you’re learning how to create an online course, try looking at resources for how to build a YouTube channel too as many of the same video recording and editing principles apply. Check out content like ‘ How to Edit YouTube Videos ’ or editing software roundups to learn everything you need to know.

Don’t worry about your course content being perfect at this stage. The important thing is to get your course out there and in front of your target audience so you can start collecting feedback – then you can go back and refine and even reshoot your content based on what your customers are saying.

“I think things are shifting to becoming less perfect… you don’t have to have a huge production company to produce a course. Everybody can become a course creator with just an iPhone Pro.” – LOLA MELANI, THINKIFIC COURSE CREATOR

If you need additional support or you want a professional touch to produce and edit your courses, consider outsourcing the work to skilled freelancers. Check out popular platforms like Upwork and Fiverr to find people ready and waiting to help you. 

Related: Best Equipment & Software for Creating Online Courses

Where you choose to host your online courses will shape the whole course experience – from creating your online course to onboarding learners to collecting feedback and issuing certificates.

When you’re building an online course business , it’s essential to choose a learning platform that fits all of your needs and can scale as you grow – including design, marketing, and community-building tools.

As you search for the perfect platform for your online courses, make sure you look at the marketing options on offer to help you promote your content. Here are some key questions to ask:

• What marketing integrations does this platform allow?
• Can I build a website and/or landing pages on this platform?
• What email marketing features do they offer?
• What metrics can I track?
• Can I create bundles and packages?

If in doubt, check out reviews, testimonials, and case studies from other creators who have used the platform to find out what it’s really like.

“Thinkific’s packages are simplistic and easy to follow. I love how user-friendly it is, and there is a ton of support. I like knowing that when I need something, I can get a response quickly.” – GEORGE PITTS, THINKIFIC COURSE CREATOR

Related: These are The Best Platforms for Online Course Hosting

A key part of figuring out how to create an online course is knowing how your course will fit into your business overall and the pricing structure you’ll use to sell them. 

Online courses pricing can range from zero to multiple thousands of dollars. To come up with a price tag for your course content, here are a few things to consider:

• What’s your pricing structure? How you choose to package your course as a product will influence the overall course design, the value you build into it, and how you market it. Are you selling a stand-alone course, a bundle, a membership, or a combination of these? Figure out your structure first to know how to price your online course.
• What are your income goals? Let’s be real – many creator educators choose to create courses to earn additional income. Look at what you’re hoping to earn from your online courses and price them accordingly. Remember the lower the price point, the more courses you’ll need to sell to hit your income goals.
• Where does your online course fit into your overall business? If you already have an established business, your plans for how you’ll use your online course content will likely impact how you choose to price your course. If you’re planning to use your online course as a free lead magnet , a passive income stream , or your primary product, this will influence your pricing.

There are no rules for setting a pricing structure for your online course. It’s up to you to decide what you want to charge.

For a starting point, look at what your competitors are charging. Take a look at the notes you took during your competitor research and compare the depth and complexity of their content to the course you’ve created. 

If you’re confident your course is significantly better than what’s currently on the market, then price yours higher than the competition. If your main priority is keeping your course accessible and selling to as many people as possible, then you may want to price it lower – but beware of underpricing.

Here are three reasons why you shouldn’t underprice your online course:

It will hurt your bottom line

If your course is a lot cheaper than your competition, people will assume it has less value and will be less likely to buy it. That means you could be driving customers away and into your competitors’ arms. 

If your strategy is to sell your course cheap to get as many learners as possible in the door, you also risk reducing the quality of the learning experience for your customers. Why? Because you’ll have less time to support your learners, answer questions, engage your audience, and offer a personalized experience.

For example, here are 5 different ways to make $50,000 selling an online course:

It’s a lot easier to manage 25 learners and provide a high-quality, tailored experience to your learners than to try and cater to 500. And the revenue result is the same.

Your marketing effort stays the same

The effort you need to put into marketing to get someone to buy your course at a lower price point is only marginally less than for a higher priced course – so don’t make the mistake of thinking you’ll instantly sell twice as many courses by low-balling.

This guide on how to price an online course gives you more details on why underpricing isn’t a good idea: 

(Assume each lead costs $5 and you have a 5% conversion rate.)

You can’t reinvest in growth if your margins are too low 

Putting a lower price point on your online course also results in a smaller marketing and advertising budget because you’ll have less money to reinvest. 

In the example below, the $50 course actually loses money compared to the $200 course: 

That $100 profit is money you can use to reinvest in filming equipment, a graphic designer, a better microphone, or even just a day off. 

Pricing your online course can be a tricky business – but don’t fall into the trap of undervaluing your expertise and pricing too low. It can end up damaging your reputation and losing you business in the long-run.

If you have no idea where to start with pricing your online course, try asking your audience. Set up a survey to find out how much they’d be willing to pay for your expertise. The results might surprise you.

“I saw what was included in other courses, how they were priced, the content, what I would change, and what I would add… that’s how I figured out the prices. It’s been five years and they haven’t changed.” – LOLA MELANI, THINKIFIC COURSE CREATOR

Now you’ve chosen and validated your topic, crafted your learning outcomes, created your course content, set up your school, and finalized your pricing, it’s time to launch! 

Give yourself a pat on the back, but don’t go anywhere…

If you think the work is over now you’ve completed your online course – think again. It takes a little more work to market and sell your course than just uploading it to your course platform and waiting. In reality, after launching your course you’ll need an ongoing marketing strategy to keep selling courses and converting followers into customers. In fact, your marketing plan can make the difference between zero sales and a seven-figure course business. 

To get started with your course marketing plan, try answering the following questions:

• How will you use social media to market your online courses?
• What types of content marketing will you use?
• What promotions and discounts can you offer?
• Will you run ads to market your courses?
• Do you have an existing email list you can sell to?
• Can you partner up with influencers?
• Will you run an affiliate program?

Each of these questions represent a possible pillar in your overall marketing strategy. Combine several of these strategies and you’re on the right path.

“The most important thing is not just to use marketing for the sake of it, but to actually get the right word out. I tend to prioritize quality and creativity over numbers. This has helped me build the right type of client relationships and gain traction.” – FIONA HUMBERSTONE, THINKIFIC COURSE CREATOR

Here’s a closer look at four of the most common marketing tools creator educators use to generate interest and drive sales for their online courses. 

Related: 58 Ways To Market Your Online Course & Increase Sales

Pre-sell your online course

Pre-selling your course means you start to sell it before you’ve even created it. 

This marketing method is one of the best ways to protect yourself from wasting time by creating a course that doesn’t sell – and drum up interest for your course.

To motivate customers to enroll early, consider an early bird special offer for anyone that buys your course during your pre-sell period. That might be a discount, bonus resources, or a sneak peek. 

Make sure your pre-sale is a limited time offer to create a sense of urgency and drive your audience to take action – you can include a countdown or stopwatch on your website, emails, and social media to drive home the message.

The main thing you’ll need to pre-sell your online course is a sales page – see more details on that below 👇

Create a sales page for your online course

Next, you’ll want to create a sales page for your course . A sales page (also known as a landing page) differs from other pages on your website. 

Your sales page only has one goal – to get people to enroll in your course. Everything on your course sales page should be tailored to converting casual visitors into customers. Here are a few key features of a high-converting online course sales page:

• A clear, compelling headline (to catch visitors’ attention)
• An opening story (to introduce the problem)
• Bullet points (to highlight the benefits of the solution, how it solves the problem, what you’re offering, and bonuses)
• Testimonials (for social proof )
• Credibility (instructor bio, your experience, and more relevant info)
• Pricing details (with a clear call-to-action)
• Risk Reversal (a satisfaction guarantee)

Make sure your content is clear and compelling with a concrete call-to-action (CTA) that directs your visitors on what to do next. 

The idea of a sales page is to make your offer irresistible, so you make your potential customers’ purchase decision as easy as possible – that means giving them all the information, social proof, and learning outcomes they need to know whether your course is right for them.

Related: Course Landing Pages: What You Need to Get Better Conversions

Use the webinar launch method

As well as creating a killer sales page for your online course, you can also use webinars as a strategy to sell your courses to potential customers. Webinars work because they create an environment where you can quickly earn your audience’s trust before you ask people to act.

“We need to be personable and connect with our target audience because they’ll probably never meet you in person.” – DIAMOND LEE, THINKIFIC COURSE CREATOR

Webinars are a proven marketing tool that can help you generate leads, generate interest, and sell your course. If you offer your webinar attendees a discount or early bird offer on your online course, you can also boost conversions.

This is a strategy Miss Excel – aka Kat Norton – has successfully used to sell her online courses. She hosts free Excel training and offers webinar attendees half-price on her courses at the end of the session, after demonstrating her expertise and showing the concrete value her target audience can expect to gain from purchasing her course. 

“This launch method is awesome. I did two webinars in April, granting me my first six-figure month… 99% of the revenue was from core sales on Thinkific.” – KAT NORTON, THINKIFIC COURSE CREATOR

Related: How to Promote a Webinar (Ultimate Guide)

Use lead magnets to grow your email list

As well as webinars, you can also use other lead magnets to grow your email list – and market and sell to your subscribers down the line. 

If you’re not already familiar with lead magnets , it might sound like a complex marketing term – but it’s actually exactly what it sounds like. Lead magnets act like a magnet to attract potential customers to your sales page, email campaign, or overall sales funnel. 

There are a huge range of lead magnets that can be ultra-effective for attracting and converting your ideal customers. You could offer a free mini-course, masterclass, or email course – and provide your audience with a shortened version of your paid course that delivers value, builds your authority, and encourages them to engage more with your content.

You can also create downloadable resources like guides, templates, workbooks, and ebooks to use as lead magnets.

Find out what your target audience are searching for, asking about, and eager to learn more about – then create lead magnets that are tailored to their needs.

“Don’t hold back what you know, be generous with the knowledge that you have. Once I said ‘screw it’ and just started teaching everything I knew without the intention to get paid, my audience found me.” – MILLIE ADRIAN, THINKIFIC COURSE CREATOR

It’s easy to create high-quality lead magnets for your business using graphic design tools like Canva and Adobe Express .

Related: Top Online Business Tools Used By Entrepreneurs

Build an online community

Last but certainly not least, the final stage of creating an online course is building your online community .

Why are we so obsessed with communities? Your online community is what turns one-time customers into loyal, repeat customers who act as brand advocates, mentors, and a readymade, committed focus group for your business. 

Building an online community lets you foster direct relationships with previous and current learners, allowing you to engage with your target audience in ways that a regular sales page or website won’t let you. 

By creating an online community , you give your students the space to ask you questions, share their learning experience, and give you feedback (directly or indirectly) about what your course does well and what it might be missing. You can also watch your learners grow.

“My first round of BAM graduated two years ago and they’re able to network and respond to newer members’ questions in the Slack community, as well as share their experiences, insights and stories of their journey.” – KAT LEE, THINKIFIC COURSE CREATOR

An online community can also function as an extension of your marketing strategy. When you ‘own’ a community, you have constant access to your target market that no algorithm can take away from you. You can use this access to build authority in your niche and generate more revenue. 

Just remember, as the community manager , it’s also your responsibility to keep the community machine oiled and the wheels turning. This might include:

• Sharing themed posts for each day of the week
• Asking questions to spark conversations
• Answering questions yourself or calling on others to share their tips
• Enforcing community rules and guidelines to ensure the safety of your members

And most importantly, it’s your responsibility to make sure you give more than you ask . Your students will quickly see through you if your community is nothing more than a marketing tool. So whatever you do, put people first . 

“For me, a membership is more effective than a one-off course because every single month I can check in with my students and watch them grow. Business has ups and downs and it’s never going to be perfect. I want to be there for all of it, and that’s what I love about the membership framework.” – AMANDA SCHONBERG, THINKIFIC COURSE CREATOR AND MEMBERSHIP SITE OWNER

Related: 13 Membership Site Examples That Will Inspire You

As well as improving the online course experience for your learners, an engaged, committed community can become the perfect space for generating new ideas, testing future products, and gathering valuable feedback to help you keep improving your offering and create the best possible experience for your customers.

Learn how to create an online course and start making money from your expertise today

The process of creating an online course can be hugely rewarding – especially if you’re able to create a resource that is genuinely helpful, valuable, and even life changing for your target audience.

If you have expertise and experience that you want to share with the world, now is the time to start. These 10 steps cover what to expect from the journey of creating, marketing, and selling online courses – all that’s left to do is for you to take the plunge. 

And if you need more inspiration, check out our Creator Stories from people who started where you are today.

“It’s never been easier to build your own course with all of the amazing tools that are offered nowadays to content creators… If I could do it in my living room on my laptop and make $1.3M in sales, you can do it too.” – LOLA MELANI, THINKIFIC COURSE CREATOR

Launch your online learning product for free 

Use Thinkific to create, market, and sell online courses, lead magnets, communities, and memberships — all from a single platform.

This blog was originally published in September 2021, it’s since been updated in May 2024 to include new information. 

Elizabeth Harris is a content marketer and copywriter with a passion for helping businesses get the most out of their content, helping to educate, inspire, and engage audiences.

• How to Plan an Online Course (Templates & Tips)
• How to Price Your Online Course (Complete Guide to Course Pricing)
• How To Create An Effective Course Outline (+Template)
• 7 Instructional Design Storyboard Templates For Online Course Creators
• 8 Steps to Building an Online Course Business (+ Business Plan Template)

Related Articles

Best learning management systems of 2023.

Compare and contrast the top LMS systems of 2023, so you can make an informed decision!

Turn Your eBook into an Interactive Online Course

Today we’ve got a video showing how you can quickly create interactive online courses from your existing eBooks. Unlike traditional…

Piaget Learning Theory of Cognitive Development

Today we can understand and appreciate children’s cognitive development thanks to Jean Piaget. Learn about Piaget Learning Theory here!

Try Thinkific for yourself!

Accomplish your course creation and student success goals faster with thinkific..

Download this guide and start building your online program!

It is on its way to your inbox

Money blog: Victorian island forts - complete with helipads and nightclubs - up for sale

Two Victorian island forts that were used to defend the Portsmouth dockyards during the Second World War have been listed for auction for £1m each. Read this and the rest of today's consumer news in the Money blog.

Friday 7 June 2024 12:56, UK

• 100,000 reportedly due to remortgage onto higher rates before election - here's what you need to know
• Victorian island forts - complete with nightclub - up for sale
• Does Wetherspoons buy lose to out-of-date beer?
• Rents fall in some big cities
• How much a last-minute Taylor Swift ticket will set you back

Essential reads

• Why you should consider swapping chicken breasts out of your shopping basket
• How brands get you to buy more, more, more
• Ed Conway : Claim of £2k tax rise under Labour is over four years - same maths suggests Tories have raised taxes by £13k in last four years
• How much are student loans, when do you start paying back and what is the interest?
• Best of the Money blog - an archive

Ask a question or make a comment

Ever wanted to own your own Victorian island fort?

Well now you can - with two being listed with a guide price of £1m.

Spitbank Fort in Hampshire and No Man's Land Fort off the Isle of Wight have been listed for auction and can be bought separately - or as a pair if you can't pick between the two.  

During the Second World War, the forts were used to defend the Portsmouth dockyards. 

No Man's Fort is substantially bigger and probably presents itself more as a business opportunity, but Spitbank offers nine large bedroom suites across three floors and could potentially work as a private home to the right buyer. 

No Man's Fort has its own traditional English pub, a nightclub, and a helipad, while Spitbank Fort naturally boasts a wine cave plus a swimming pool and spa complex.

"Throughout my career as an auctioneer I've seen several sea forts hit the market that have achieved impressive prices as buyers have sought to pursue these trophy assets," said Robin Howeson, head of Savills Auctions.

"Having been carefully restored by the current owners, No Man's and Spitbank Fort represent exceptional market value, each guided at £1m. 

"Both offer an opportunity like no other; a waterfront location, up to 99,000sq ft of space and a chance to champion the heritage and legacy of these iconic maritime structures."

The auction takes place on 18 June. 

If you missed out on the general sales but want to bag yourself a last-minute ticket to Taylor Swift's show in Edinburgh tonight , it could set you back a whopping £4,000. 

Not to fear, however, as it is currently possible to land yourself a ticket for as little as £271 - if you settle for a somewhat restricted view. 

We've checked resale giant Viagogo for the latest prices, accurate as of 10.30am. 

As is often the case with popular tours listed on resale sites, many of the tickets are sold individually - so if you're happy to go alone tonight, you're more likely to get a ticket. 

For context, a ticket at general sale cost somewhere between £80-£160 depending on where you sit/stand. 

As it stands, the cheapest seat with an unrestricted view of the stage is currently up for sale at £323.

Just one ticket is up for £271, but has a "restricted view". 

Bringing a crowd

If you're looking to take someone with you, the cheapest pair of tickets without any restricted view will cost you a combined £1,706.

However, if you're happy with a restricted or limited view, you can pay the cheaper price of £538 for the pair (£269 each). 

You can buy up to four tickets in the same area for £303 each (£1,212 together) for a restricted view, or £555 each (£2,220 together) for an unobstructed view of the stage. 

Getting closer to the action 

Standing tickets are much sought after given their proximity to the stage. 

As alluded to at the top of this post, one frankly optimistic reseller has listed four general admission tickets for a staggering £4,256 each (in the "floor" section shown in the map below). 

However, you can get even closer - with one ticket remaining in the separate section to the left of the stage at £651 and another to the right at £559. 

A word of caution

Ticket resale sites, including Viagogo, have previously been accused of "ripping off" consumers amid concerns customers could be turned away at venues because of restrictions on some resold tickets.

The company was told in 2019 that it was required to make a number of changes to the way it collects and presents information about tickets on its site.

It has since pledged to be compliant with UK watchdogs and now offers a "100% order guarantee [which] covers both buyers and sellers".

If you're happy paying over the odds for last-minute tickets, make sure you're buying through a site with such a guarantee and always beware of scams!

House prices in the UK dropped by 0.1% between April and May, data from mortgage lender Halifax shows.

Analysts had expected a drop of around 0.2%, while last week, rival lender Nationwide said its measure of house prices rose in May after falling in the previous two months.

In the 12 months to May, prices rose by 1.5%, Halifax said - faster than the median forecast in a Reuters news agency poll for an annual increase of 1.2%.

"Market activity remained resilient throughout the spring months, supported by strong nominal wage growth and some evidence of an improvement in confidence about the economic outlook," Halifax's head of mortgages, Amanda Bryden, said.

The stable picture for property prices over the last three months was likely to give more confidence to buyers and sellers, she added. 

Sir Keir Starmer will shortly promise to get more young people on the housing ladder as Labour announces its "freedom to buy" policy. 

We've now got some reaction from business leaders, who've been speaking to Newspage.

Justin Moy, managing director at EHF Mortgages, was not impressed. 

"Freedom to buy looks great on the first read, but then you realise it’s actually been in place since 2021 and many lenders don't use it anyway," he said. 

"Labour are effectively promoting something that already exists and isn't used," he added. 

Andrew Montlake, managing director at Coreco, disagreed, saying it marked a "promising" first offering from Labour. 

"This can allow lenders to take a longer-term approach in their offerings and ensure that competitive products are continually available for those with lower deposits. 

"Whilst it doesn't solve the long-term housing issues overnight, Labour have at least shown they understand them and have already shown they are willing to speak and engage with those on the front lines, which is more promising for the housing market as a whole should the next government be a red one."

However, many more had a negative outlook. 

Lewis Shaw, owner of Shaw Financial Services, was scathing in his assessment, saying: "This policy is about as useful as a chocolate teapot. 

"Prior to the pandemic, 95% loan-to-value mortgage lending was the norm. 

"It happened without any political interference or putting the taxpayer on the hook - has everyone forgotten that? 

"If Labour really wants to help young people buy a home, then do the things that we all know are needed: Tax the super-rich, reduce wealth inequality and build more houses. It's not rocket science."

Katy Eatenton, mortgage and protection specialist at Lifetime Wealth Management, said it was "yet another scheme with no real substance", which was echoed by Stephen Perkins, managing director at Yellow Brick Mortgages.

"This policy will not hugely impact the property market," he said. 

Shortly, we're expecting Sir Keir Starmer to promise to get more young people on the housing ladder as Labour announces its "freedom to buy".

He's set to speak in the coming hours. 

The party will pledge to make the existing mortgage guarantee scheme - which sees the government act as a guarantor for people unable to save big deposits - into a permanent fixture if it wins the election on 4 July.

Sir Keir will also commit to an overhaul of the planning system, including reintroducing housing targets, claiming his measures will see 1.5 million more homes built over the next five years.

Among the planning changes, the party will promise to tax foreign buyers "pricing out young people" from the housing market in order to pay for new planning officers, which it claims will help increase projects being signed off.

It will bring back house-build targets - scrapped by the Tories in 2022 - as well as fast-track permissions to build on brownfield sites, and reform compulsory purchase orders to "stop speculators frustrating housebuilding".

They will also promise to offer "first dibs" on new developments to local people looking for a home and reiterate their pledge to create "the next generation" of new towns.

Read more in our dedicated Politics Hub :

GAME are set to end their long-running rewards programme on 31 July and have urged customers to use their remaining credit whilst they still can.

Both the company's standard GAME Reward scheme and their Elite membership tier will cease to exist, while no further reward points will be earned from purchases made in store or online after July 15.

You can currently redeem 400 reward points for £1 off of a purchase. The end of GAME Elite will mean the end of its monthly offers and prize draws. Any outstanding paid Elite membership months will be eligible for a refund.

"We would strongly urge you to redeem your GAME reward points prior to the closure date on purchases in store or online to avoid disappointment," said GAME.

"After the closure date, GAME reward points will be reset to zero and the GAME reward account will be closed, you will no longer be able to access it and you will no longer be able to redeem your GAME reward points."

The end of GAME's reward programme is the latest move from the company to make changes to their business model.

The chain has already closed several of their own bespoke high street stores and instead taken up residence within Sports Direct and other Fraser Group outlets.

By Sarah Taaffe-Maguire , business reporter

We've now had the first interest rate cut in the UK, US and EU for years. 

Yesterday the European Central Bank (ECB) brought down the cost of borrowing in the countries using the euro - the first reduction since 2019.

Sterling stayed roughly where it has been against the euro for the last two weeks - one pound buys more euro than it has done for most of the last year, €1.1740. 

Oil prices have ticked up through the week but are still just below $80 a barrel for Brent crude, the benchmark price. 

That's cheaper than the vast majority of this year and good news for motorists.  

Signs of stabilisation can be seen in the housing market with the news that house prices fell just 0.1% in May, equivalent to a £170 drop in the average house, according to mortgage lender Halifax. 

But renting is still becoming more expensive, just at a slightly slower rate than before, according to property portal Zoopla.

The average rent costs £80 more a month compared with a year earlier.

Higher housing costs have also shown through in a market update from British homebuilder Bellway, which said it expects to sell houses at a higher price point than it previously thought.

The company is a constituent of the Financial Times Stock Exchange (FTSE) 250 index of 101st to 350th most valuable companies on the London Stock Exchange which is down 0.22% this morning. 

Wetherspoons pubs are known for their cheap pints.

But how is the chain able to keep prices so low?

Many punters will have heard that this is because the pubs buy short-dated beer from breweries just a couple of months from expiry date - but the owner of the business now says this is not true. 

Sir Tim Martin told The Sun : "I've never hung outside the brewery gate waiting for it to go out of date. It would be impossible."

Asked then how the chain is able to keep prices so low, he said that the vast quantities allowed greater profits.

"There's no real secret, we sell a lot of beer," he said.

He also explained the reason he named the chain Wetherspoons - dispelling the myth that it was named after a teacher who said that he would never make it.

Sir Tim said: "This is a story that got twisted and a bit out of hand. I named it after Mr Wetherspoon, who was a very nice man, but couldn't control his class because at the time I couldn't control my punters."

It can be hard to balance the demands of eating well without spending a lot.

In this series, we try to find the healthiest options in the supermarket for the best value - and have enlisted the help of  Sunna Van Kampen , founder of Tonic Health, who went viral on social media for reviewing food in the search of healthier choices.

In this series we don't try to find the outright healthiest option, but help you get better nutritional value for as little money as possible.

Today we're looking at chicken. 

"When it comes to healthy eating, the first thing that often springs to mind is chicken breast," Sunna says. 

That's mainly because it is lean, versatile, and packed with protein, making it a staple in many health-conscious kitchens.

"But what if we told you there are even better options for your wallet and your health?" Sunna says. 

Cost savings

Chicken breast fillets can be pricey - sitting at an average of around £8.33 per kilogram. 

In contrast, chicken thighs usually come in at about £3.30 per kilogram. 

"That's under half the price," Sunna says.

"To put that into perspective - over the course of a year this can save you over £261.56, assuming you consume 1kg per week in your household. Well worth the saving."

Nutritional value

Many people gravitate towards chicken breasts for their lean protein, but chicken thighs have their own set of nutritional benefits. 

"While they have more fat, it's important to note that they contain more healthy monounsaturated fats, which are good for heart health," Sunna explains. 

"Plus, they're richer in iron, zinc and B12 by at least double."

These are essential minerals that help boost your energy and general wellbeing.

Much of this goodness is down to thighs having more joint cartilage and tendons - which naturally boost the collagen content of the chicken - helping to feed your hair, skin and nails.

"Chicken thighs are not only nutritious but also renowned for their flavour," Sunna points out.

"When slow cooking chicken thighs with bones, you are also getting the benefits of bone broth in the stew which is a great source of collagen, calcium, and magnesium, as well as glycine, arginine and proline which are anti-inflammatory amino acids."

A hidden gem

If you've got the stomach for it, there is one cut of chicken that is ultra affordable and is officially one of the most nutrient-dense foods in the world. 

"Chicken livers are one of the most economical protein and nutrient sources out there," Sunna says.

"At £3.42 per kilo, they're a similar price to thighs but pack a more powerful nutrient punch."

Chicken livers should really be touted as a superfood due to their high nutrient density, in Sunna's view.

"They are an exceptional source of vitamin A, which is crucial for vision, immune function, and skin health. 

"They also boast high levels of B vitamins, particularly B12, which is vital for brain health and energy production.

"Additionally, chicken livers are rich in folate and iron."

While you might be hesitant about the taste or texture of chicken livers, they are incredibly versatile and can be prepared in ways that make them more palatable. 

Sunna's go to is to simply fry the livers quickly with onions, mushrooms and a spicy sauce like a peri-peri.

"Swapping chicken breasts for thighs or livers isn't just a cost-saving measure; it's a health upgrade. 

"By embracing these underrated parts of the bird, you'll enjoy richer flavours, diverse nutrients, and significant savings."

A note on organic

"The health of the bird and its quality of life will directly affect the nutrition and quality of the meat you consume, and as such, if you can afford it, always opt for free range or organic chicken."

The nutritionist's view - from Nichola Ludlam-Raine, dietitian at  nicsnutrition.com ...

"When it comes to budget-friendly eating, chicken thighs significantly outshine chicken breasts.

"While chicken breasts are renowned for their lean (ie low in calorie and low in fat) protein content, chicken thighs do indeed offer great nutritional benefits such as the presence of more connective tissue in thighs boosts collagen intake, which is beneficial for skin, hair, and joint health. 

"As I dietitian I would recommend skipping the skin though, to lower intake of saturated fat - as the preferred type of fat for health is unsaturated, which is found in higher levels in plant foods such as olives, nuts, seeds and avocados.

"Chicken livers are high in vitamin A, essential for vision, immune function and skin health, and also boast significant levels of B vitamins, iron, and folate, supporting brain health and energy production. 

"Due to its vitamin A content though, liver, as well as pate, should be avoided during pregnancy (note that plant-derived vitamin A i.e. beta-carotene, does not need to be avoided).

"When it comes to diet, balance and variety is key, and while including richer sources of meat such as chicken thigh and liver may be a good idea from time to time, I would recommend including other cheaper and leaner protein sources too including lentils, beans, chickpeas, tofu, eggs as well as tinned oily fish - the latter for their omega 3 fatty acid content too."

Read more from this series... 

Every Friday we get an overview of the mortgage market with the help of industry experts. This week we have spoken to David Hollingworth, associate director at L&C Mortgages , and Rachel Springall, finance expert at Moneyfactscompare.co.uk . 

New research this week - commissioned by the Lib Dems - suggested about 100,000 households will be renewing onto higher rates before the 4 July election. They'll face an average increase of £240 a month.

Ms Springall said: "Those borrowers looking to remortgage this year on a longer-term fixed deal will find the average overall five-year fixed rate is much higher than it was back in June 2019, when it was 2.85%. 

"Week on week, the overall average two and five-year fixed rates rose to 5.95% and 5.51%."

These are the lowest rates on offer...

Moneyfacts advises people looking to avoid upfront costs, legal fees etc to look at Best Buys as well as the deals with the lowest rates...

Good news on the horizon?

Arguably the big news for mortgages this week didn't directly impact UK households - it came yesterday when the European Central Bank went first, ahead of the UK and US, in cutting rates, potentially signalling the beginning of the end of an era of high rates.

The Bank of England and US Federal Reserve are forecast to wait a little longer - markets are currently expecting a September cut in the UK.

It's a waiting game - and that's been reflected in a relatively quiet period for rates movements among UK lenders.

Mr Hollingworth said the flurry of repricing announcements - shifting rates upwards - that followed news of inflation falling less than expected in April had "eased back".

According to Moneyfacts, HSBC increased selected fixed deals by up to 0.26% this week, while Cambridge Building Society pulled its two and five-year fixed mortgages at 90% loan-to-value.

Mr Hollingworth said: "Once lenders start to shift rates it can quickly knock onto others.

"As one deal withdraws the next lender will come under pressure, either from a rate perspective or also to protect service levels. That can cause a snowball effect of rate withdrawals."

He is advising people due to renew to "lock in" - knowing you can "review the situation before completing and take advantage of any better rates if they drop back again".  

Also of note to Mr Hollingworth has been UK Finance's Household Finance Review, which highlighted that many are taking mortgages over longer terms, with 35 to 40-year mortgages more common.

"That does help to reduce the monthly payments on a repayment mortgage but will increase the total interest over the life of the mortgage substantially," he said.

"It's therefore important for borrowers to keep reviewing the term as their circumstances change or to make overpayments if possible. That will help to cut the mortgage back more quickly and could save thousands in interest."

Be the first to get Breaking News

Install the Sky News app for free

• Unity Runtime Fee
• Changes to Unity Plans
• Unity Personal
• New value included

The Unity Runtime Fee

The Unity Runtime Fee will only apply to certain games created with Unity Pro and Unity Enterprise. If you’re on a Unity Personal or Unity Plus plan, the Runtime Fee does not apply.

Games created with currently supported Unity versions will not be impacted by the fee. The Runtime Fee is only relevant to games created with, or upgraded to, Unity 6, the next Long Term Support (LTS) version to be released in 2024. For those games, the fee applies only after a game has crossed two thresholds:

• $1,000,000 (USD) in gross revenue (trailing 12 months), AND
• 1,000,000 initial engagements.

If your game crosses both thresholds, you will be charged whichever amount is lower:

• 2.5% of your game’s monthly gross revenue, OR
• The Runtime Fee based on monthly initial engagements.

The Unity Personal plan remains free and the Runtime Fee does not apply to this plan. Starting with Unity 6, we will increase the revenue limit from $100,000 to $200,000 (USD), and make the Made with Unity splash screen optional.

The Runtime Fee does not apply to games created with any currently supported Unity version. It only applies to games created with or upgraded to Unity 6, the next LTS version to be released in 2024.

We will make sure that you can stay on the terms applicable for the version of Unity you are using as long as you keep using that version.

On a monthly basis, you have a choice of the lesser of 2.5% revenue share or the calculated fee based on unique initial engagements per game. Both your initial engagements and your revenue are self-reported.

Frequently asked questions

Below are answers to some of your top questions about the Runtime Fee and Unity plans.

What versions of Unity does the Runtime Fee apply to?

How do i know if the runtime fee applies to my game, will the fee apply if i started creating a game with an earlier version of unity, but ship it with unity 6 or later releases, what about tech stream 2023.1 and 2023.2, how is the unity runtime fee calculated, how does unity define an “initial engagement” for the runtime fee policy, when do my revenue and initial engagements start counting toward the runtime fee thresholds, how does unity expect me to measure the number of initial engagements for my game, do i have to self-report revenue or initial engagements monthly or quarterly, does installing the same game on multiple devices count towards the unity runtime fee, does installing and reinstalling a game count as two separate initial engagements, are games distributed through subscription services, streaming services, or as webgl applications, required to pay the runtime fee, for some of my distribution channels, i do not receive data that i can use as an accurate estimate for initial engagements. how should i report these channels for calculation of the runtime fee, how do i report my data, can i get a discount or a custom deal on the unity runtime fee, who is charged the unity runtime fee, do i still need to pay for my unity subscription plan, how does unity estimate the runtime fee when i have not supplied data, how are nongaming applications impacted by the unity runtime fee, does the unity runtime phone home by default, for the runtime fee, what are group a and group b countries, how do i calculate the runtime fee, what’s the status of the editor terms on github, what are you changing in the terms, is the price increasing for unity pro and enterprise, what changes are being made to unity subscription plans, does the runtime fee apply to unity personal, if i’m on unity personal, will i have the option to customize the splash screen, is there still a revenue limit for eligibility to use unity personal, are there any other changes coming to unity personal, will the unity runtime fee apply to unity plus customers, what changes are coming to unity plus what happens to my existing unity plus plan, what is the latest date i can renew unity plus, what will happen to my unity plus subscription agreement after march 27, 2024, if i don’t upgrade to unity pro, with unity plus being discontinued, can i customize the unity splash screen without migrating to unity 6 or upgrading to unity pro, what is unity devops, what is unity asset manager, what is central administration.

All amounts in U.S. dollars (USD).