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Blog Business How to Create a Sales Plan: Strategy, Examples and Templates
![](http://nandemo.space/777/templates/cheerup1/res/banner1.gif)
How to Create a Sales Plan: Strategy, Examples and Templates
Written by: Aditya Rana Mar 25, 2024
![how to write a business plan on selling how to create a sales plan: strategy, examples, templates](https://venngage-wordpress.s3.amazonaws.com/uploads/2024/03/how-to-create-a-sales-plan-strategy-examples-templates.png)
The difference between a company struggling to drive sales and one that’s hitting home runs often boils down to a well-crafted sales plan.
Without knowing how to write a sales plan , your sales reps will lack vision, not understand the market, and be ineffective at engaging potential customers.
Most businesses fail in sales planning because they don’t focus on their unique value. If you’re struggling with sales, here’s what you need to do: define your goal(s), create customer personas, and create an action plan for success.
One of the best ways to organize this information in one place is to use sales planning templates . In this post, I’ll show you how to write a sales plan (…with plenty of template examples included of course!).
Click to jump ahead:
What is a sales plan?
Benefits of a sales plan, how to create a sales plan, sales plan example, sales plan templates.
A sales plan is a strategic document that outlines how a business plans to convert leads into sales. It typically details the target market, customer profile, and actionable steps that must be taken to achieve revenue targets.
Here’s a great example of a sales plan that includes all these elements neatly packed into one document.
![how to write a business plan on selling Colorful Food Retailer Sales Action Plan](https://s3.amazonaws.com/thumbnails.venngage.com/template/e5c6d99a-22e2-42e8-b4f6-1db73422fd8c.png)
Every company needs a sales plan, but have you ever wondered why?
Why should businesses invest time and resources in creating sales plan when they could…well…be focusing on sales?
Sales plans are worth it because they tell sales employees what to do.
Without a sales plan, your sales efforts will end up becoming a disorganized mess. Let’s explore the benefits of sales plans in detail.
Help you identify and target the right market
A sales plan helps you figure out the target market that’s most likely to be responsive to your messaging.
I mean do you really want to waste your time trying to sell to someone who has no need for your product or isn’t interested in your offering?
But if you know who your customer is, you can target their pain points.
![how to write a business plan on selling Cream Purple Customer Range Pictograms Charts](https://cdn.venngage.com/template/thumbnail/small/2c2d54ef-d7ad-4ed3-8bc4-1b1775493de1.webp)
Help you set goals
All great sales plans require you to set goals that are actually attainable and budgeted for.
Without goals, your sales team essentially operates in the dark unsure of what success looks like and how to achieve it.
One of the best ways to set goals is by conducting a SWOT analysis (strengths, weaknesses, opportunities, and threats) to understand the market landscape.
![how to write a business plan on selling Sales SWOT Analysis](https://s3.amazonaws.com/thumbnails.venngage.com/template/e43ab6af-ab37-4811-b731-33f8a3ef54a9.png)
Help you forecast sales
Since sales plans require you to study historical sales data , you have the ability to understand trends, seasonality, and customer buying patterns.
This information can be used to accurately forecast future sales performance.
And when you chart it out visually like in this example, you can make data-driven decisions to optimize your sales strategy.
![how to write a business plan on selling Sales Projections Line Chart](https://s3.amazonaws.com/thumbnails.venngage.com/template/2fa8e45d-c4ba-403c-92f8-786cbb078feb.png)
Help you identify risks
Because sales plans require you to study the market, you’ll be able to uncover risks such as market saturation, competitors, and shifting customer needs.
With this knowledge, you have the ability to be flexible in your approach.
Besides market risks, sales plans also help you pinpoint risks within your company such as a lack of qualified leads or unclear communication between departments.
![how to write a business plan on selling Risk Management Plan Templates](https://s3.amazonaws.com/thumbnails.venngage.com/template/0abe98b3-16f6-4fd1-ae8a-3b2f3dd63635.png)
Improve customer service
It may sound counterintuitive but creating a sales plan also actually improves your customer service.
Researching and trying to understand customer needs means new insights that you can share with the customer service team which allows them to tailor their approach.
You’ll also be able to train sales service reps to anticipate questions and concerns so that they can communicate effectively.
Increases sales efficiency
Sales plans help standardize sales tactics and ensure sales reps follow the same best practices to reduce inconsistencies and improve effectiveness.
One of the best ways to standardize practices is to use a flowchart like in this example to make sure everyone knows what to do when facing a decision.
![how to write a business plan on selling Sales Flowchart](https://s3.amazonaws.com/thumbnails.venngage.com/template/2eb75ac4-f2af-4920-81af-2756f46a4546.png)
Increases your profits
Sales plans generally guarantee a boost in profits because it allows sales team to laser-focus on high-value opportunities instead of being headless chickens.
Reducing wasted effort and a higher frequency of closed deals is a win in my book any day.
One of the best ways to measure changes in profits is to use a simple template to review performance like in this example.
![how to write a business plan on selling Free Bar Graph Template](https://s3.amazonaws.com/thumbnails.venngage.com/template/56161138-adbe-4082-bbd6-9e4548645c9c.png)
Help you understand customer needs
Contrary to what you might think, sales plans aren’t just about selling but also about understanding customers at a deeper level.
The process of creating a plan forces you to analyze customer data, buying habits, and pain points, all of which will help you understand what makes your customers tick and build trust and loyalty.
Here’s a great example of a customer persona you can edit to include in your sales plan.
![how to write a business plan on selling Purple Persona Guide Report](https://s3.amazonaws.com/thumbnails.venngage.com/template/36854129-bf9f-4849-a345-37a17c68abfa.png)
A sales plan is a document that helps you maximize profitability by identifying valuable segments and outlining strategies to influence customer behavior.
Common elements most sales plans include:
- Sales goals : Information on revenue, market share, and more.
- Sales strategy: Information on how to reach potential customers and convert them.
- Target audience: Information on ideal customers and their needs.
- Metrics : Methods to track progress.
- Resources : Tools, budget, and personnel needed to achieve sales goals.
Let’s take an in-depth look at how to create a sales plan.
( Note : You don’t need to include each of these points in your sales plan but I recommend you cover most of them to build a plan that’s well-rounded).
Define your business mission and positioning
Before you jump into tactics, build a strong foundation by defining your company’s mission and positioning.
Here’s why this step is a must-do:
- Your mission statement defines your company’s purpose and values and gives your sales team and customers something to relate to.
- Your positioning statement defines how your product or service meets a specific need and sets you apart from the competition.
Trying to sell without any alignment to company values will lead to inconsistent messaging and damage your brand reputation.
Here’s a great example of a sales plan template you can customize with your own brand’s mission and positioning statements.
![how to write a business plan on selling Dark Sales Action Plan](https://s3.amazonaws.com/thumbnails.venngage.com/template/f7e4750f-ee1c-4cf1-9582-ebb050b65345.png)
Define your target market
Unless you think you can sell to every person possible, you’ll need to define your ideal target market.
Study your customer base and ask questions like: do most of the customers belong to a specific industry? Or do they all face the same pain point?
Also, keep in mind that target market can change over time due to changes in your product, pricing, or factors out of your control, so it’s important to review and update your target market frequently.
![how to write a business plan on selling Market Infographic](https://s3.amazonaws.com/thumbnails.venngage.com/template/0bb7a1f9-9c58-4253-bee9-0591f44b6a5d.png)
Understand your target customers
This step often gets mixed with the previous one, so pay close attention.
Your target customers are those who your business wants to target because they’re most likely to make a purchase.
You can figure out who your target customers are by creating customer profiles by breaking down your target market into smaller groups based on geography, behavior, demography, and more.
Here’s a great sales plan template where you can edit in your own customer persona.
![how to write a business plan on selling Food Customer Sales Action Plan](https://s3.amazonaws.com/thumbnails.venngage.com/template/856e01d8-e123-43a0-849c-3c513a7b9db6.png)
When making your buyer personas, make sure you answer the following questions.
- Motivations and challenges: What are customer pain points? What drives purchasing decisions?
- Behaviors and preferences: How do customers research products? What communication channels do they prefer?
- Goals and aspirations: What are your prospective customers trying to achieve? How can your product or service help them get there?
Define sales objectives and goals
Setting clear, measurable goals gives you a method to measure performance of your sales strategies.
More importantly though, they give your sales team targets to aim for which then allows them to work in a structured and focused manner.
Your sale goals should be specific, measurable, achievable, relevant, and time-bound (SMART). This is to make sure they’re realistically achievable within a set timeframe.
Here’s a comparison of good sales goal setting vs a bad one.
- ✅Drive $100,000 in sales of product X by Y date using Z tactics
- ❌ Increase overall sales in each product line
You can organize this information using a template like in this example, especially if you have multiple product lines.
![how to write a business plan on selling Vintage Food Retailer Sales Action Plan](https://s3.amazonaws.com/thumbnails.venngage.com/template/13a9f3a3-0ebe-4aca-a00e-d156ca623a5a.png)
Define your value proposition
Your value proposition is a concise statement that explains why a customer should choose your product or service over the competition.
Here’s an example of a value statement:
“For busy small business owners, we provide a user-friendly accounting software that saves you time and money, allowing you to focus on growing your business.”
Here are some tips on defining your value proposition:
- Identify customer needs: What are the core challenges and pain points your ideal customer faces? Understanding their needs allows you to position your offering as the solution.
- Highlight your unique benefits: What sets your product or service apart? Focus on benefits you deliver that address the customer’s needs.
- Quantify the value: When possible, quantify the value you offer. Can you demonstrate a cost savings, increased efficiency, or improved outcomes?
Map out the customer journey
Unless you’re extremely lucky, no one is going to purchase from you during the first interaction.
That’s why it’s crucial for you to know the steps a customer takes from initial awareness to purchase. Mapping out their journey allows you to personalize messaging and influence behavior.
Here are some tips on how to create a customer journey map :
- Identify the stages: Break down the journey into distinct stages, such as awareness, consideration, decision, and post-purchase.
- Define touchpoints: Pinpoint the different touchpoints where your customer interacts with your brand (example: website, social media, customer reviews).
- Understand customer needs at each stage: What information are they looking for at each stage? What are their concerns and motivations?
- Identify opportunities to engage: Identify opportunities to engage with your potential customers and move them along the buying journey.
Want some help creating customer journeys?
This customer journey map template is an excellent way to bring customer journeys to life.
![how to write a business plan on selling Purchase Customer Journey Map](https://s3.amazonaws.com/thumbnails.venngage.com/template/0b82c8a9-49f5-4c16-8de2-ac46bef0af95.png)
Gather existing sales data
This step involves collecting and analyzing all available data on past sales performance.
This data is critical in helping you spot trends, patterns, and areas for improvement in your sales operations.
![how to write a business plan on selling Blank 5 Column Chart Template](https://s3.amazonaws.com/thumbnails.venngage.com/template/3a4fcfa4-53d0-4ed5-b6a7-805c8e013af9.png)
Perform sales forecasting
Sales forecasting is the practice of estimating future sales which can be presented as a report highlighting expected sales volume weekly, monthly, quarterly, or annually.
Though not always 100% accurate, sales forecasting is key to writing sales plans because it’ll provide you with a clear picture of the ground reality which leads to better decisions on budgeting.
Here’s a template you can use to perform sales forecasting to makes the sales planning process effective.
![how to write a business plan on selling Monthly Sales Report](https://s3.amazonaws.com/thumbnails.venngage.com/template/3a57e0e2-89c1-47d0-9741-538c7ccf5bca.png)
Define your sales KPIs
KPIs are a fancy way of saying that you need to set metrics to track effectiveness of your sales strategy and team’s performance.
Some example KPIs you can include in sales plans are:
- Number of sales
- Sales revenue
- Average deal size
This sales report template is a great example of how you can include KPIs in your meetings to test performance and adjust strategy.
![how to write a business plan on selling Weekly Sales Report](https://s3.amazonaws.com/thumbnails.venngage.com/template/8fc89e53-9c2b-4eb4-8bf4-66055b996a3b.png)
Identify gaps in the sales process
This step is all about analyzing your current sales process to figure out gaps and/or potential obstacles preventing you from achieving goals.
When you identify a gap, brainstorm potential solutions so that you can create a specific action plan.
Understand the sales stages
When writing a sales plan, make sure you cover each stage of the sales cycle. If you’re unsure of what the sales stages are, here’s a quick recap.
Prospecting
This is the foundation of the sales process where you identify potential customers who might be a good fit for your product or service.
Preparation
Once you have a list of prospects, you need to research their needs, challenges, and buying habits.
This is all about how you contact and communicate with prospects.
Presentation
This section is your opportunity to showcase the value proposition of your product or service. Tailor your presentation to address the prospect’s specific needs and demonstrate how your offering can solve their problems.
Handling objections
Identify common objections your sales team might encounter related to price, features, competition, or need. Develop clear and concise responses to address these concerns proactively.
Equip your sales team with effective closing techniques to secure commitments from prospects who are interested but might hesitate.
Plan your follow-up strategy based on the prospect’s decision timeline and the stage of the sales cycle. For longer timelines, periodic updates and information sharing through digital sales rooms can maintain engagement and provide valuable resources conveniently.
Organize the sales team
Organizing the sales team entails defining roles and responsibilities clearly to cover all aspects of the sales process effectively.
This might involve segmenting the team based on product lines, customer segments, or territories.
Here’s an example of how it might look:
Sarah — Sales Director — will lead the sales team, set overall strategy, goals and direction. Michael and Jessica — Business Development Executives — will focus on prospecting new leads. They will research potential customers, identify those who might be a good fit for the product, and qualify leads by gathering information and assessing their needs. William — Sales Development Manager — will manage the business development executives and ensuring they follow best practices. Chris and Lisa — Account Executives — will handle qualified leads. They build relationships with potential customers, present product demos, address objections, and close deals.
Using an org chart like in this example is a great way to visualize this information.
![how to write a business plan on selling Simple Corporate Organizational Chart](https://s3.amazonaws.com/thumbnails.venngage.com/template/3c861564-d493-45eb-9899-e08885c2bfdd.png)
Outline the use of sales tools
Sales tools play a crucial role in streamlining the sales process and enhancing productivity.
Make sure you outline the tools your team will use, how they fit into different stages of the sales process, and any training required to maximize their utility.
This ensures that your team has the resources needed to engage effectively with prospects and customers.
Set the budget
Setting the budget involves allocating resources efficiently across various sales activities to achieve your objectives without overspending.
This includes expenses related to personnel, sales tools, marketing initiatives, travel, and customer entertainment.
A well-planned budget balances investment in growth opportunities with the overall financial health of the business.
Create a sales strategy and action plan
Now that you’ve laid the groundwork of what you want to achieve and how you plan to achieve it, it’s time to bring it all together into a single view.
Create an action plan which not includes your strategy but also concrete steps.
Your action plan should outlines specific activities for each stage of the sales funnel from prospecting (lead generation channels) to closing (structured process and follow-up strategy with timelines) and everything in between.
![how to write a business plan on selling Vibrant Sales Action Plan](https://s3.amazonaws.com/thumbnails.venngage.com/template/1b04e71c-afc3-437c-a356-9ec27f8279d8.png)
Performance and results measurement
Last but not least, your sales plan should present a clear and quantifiable means to track the effectiveness of sales activities.
How are you going to measure outcomes against predefined targets?
Performance measurement is key because it builds accountability and allows you to always have a pulse on customer behavior, preferences, and trends that’ll help you make decisions based on data.
If you’ve made it this far, give yourself a pat! I’ve covered A LOT on elements that you can include in a sales plan.
However, in most cases, you don’t always need to go that in-depth and instead should aim for brevity so that anyone in your team can stay up-to-date without having to worry about the nitty gritty details.
Here’s a sales plan example that’s brief but highly effective. It includes a summary of all you need in one document, a target market analysis, a customer profile, and an action plan.
![how to write a business plan on selling Red Customer Sales Action Plan](https://s3.amazonaws.com/thumbnails.venngage.com/template/236d1f4e-d62a-4614-8b91-e06fd73b8b2b.png)
Want even more sales plan templates for design inspiration or to customize and make your own?
This 30-60-90 day sales plan provides a great way to organize goals, priorities, performance goals, and metrics of success over three three timeframes: first 30 days, first 60 days, and first 90 days.
![how to write a business plan on selling 30 60 90 Day Plan Template](https://s3.amazonaws.com/thumbnails.venngage.com/template/45eb9b68-9763-4087-8fb7-88a3883a6002.png)
This sales plan is structured around key components that drive the sales process: objectives, strategies, tactics, and key metrics. It emphasizes a multi-channel approach to sales,, with a strong focus on measuring performance through metrics.
![how to write a business plan on selling Territory Sales Plan Template](https://s3.amazonaws.com/thumbnails.venngage.com/template/95b4142d-7fa6-4878-a382-6d5384fcad7b.png)
This sales roadmap is a great way to visualize activities such as defining strategy and generating leads to more advanced steps.
![how to write a business plan on selling Blue and Orange Sales Roadmap](https://cdn.venngage.com/template/thumbnail/small/a9d15ada-73e5-4a7d-8c26-c62909a3a426.webp)
Conclusion: Save time on designing and updating sales plans and focus on growing your business with Venngage templates
Though there’s no secret formula for effective sales plan design, it’s good practice to include the basics or information on the target market, a customer persona, and a strategy on how you plan to sell.
What you definitely shouldn’t do is write a sales plan and then never look at it again.
And trust me, I know how time-consuming and frustrating it can be to edit your sales plan especially if you don’t have design skills. One small change might make the icons or numbers go all out of whack.
That’s why I recommend customizing our sales plan templates instead so that you can focus your energy on strategy.
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Small Business Trends
How to create a business plan: examples & free template.
This is the ultimate guide to creating a comprehensive and effective plan to start a business . In today’s dynamic business landscape, having a well-crafted business plan is an important first step to securing funding, attracting partners, and navigating the challenges of entrepreneurship.
This guide has been designed to help you create a winning plan that stands out in the ever-evolving marketplace. U sing real-world examples and a free downloadable template, it will walk you through each step of the process.
Whether you’re a seasoned entrepreneur or launching your very first startup, the guide will give you the insights, tools, and confidence you need to create a solid foundation for your business.
Table of Contents
How to Write a Business Plan
Embarking on the journey of creating a successful business requires a solid foundation, and a well-crafted business plan is the cornerstone. Here is the process of writing a comprehensive business plan and the main parts of a winning business plan . From setting objectives to conducting market research, this guide will have everything you need.
Executive Summary
![how to write a business plan on selling business plan](https://media.smallbiztrends.com/2023/07/business-plan-15.png)
The Executive Summary serves as the gateway to your business plan, offering a snapshot of your venture’s core aspects. This section should captivate and inform, succinctly summarizing the essence of your plan.
It’s crucial to include a clear mission statement, a brief description of your primary products or services, an overview of your target market, and key financial projections or achievements.
Think of it as an elevator pitch in written form: it should be compelling enough to engage potential investors or stakeholders and provide them with a clear understanding of what your business is about, its goals, and why it’s a promising investment.
Example: EcoTech is a technology company specializing in eco-friendly and sustainable products designed to reduce energy consumption and minimize waste. Our mission is to create innovative solutions that contribute to a cleaner, greener environment.
Our target market includes environmentally conscious consumers and businesses seeking to reduce their carbon footprint. We project a 200% increase in revenue within the first three years of operation.
Overview and Business Objectives
![how to write a business plan on selling business plan](https://media.smallbiztrends.com/2023/07/business-plan-14.png)
In the Overview and Business Objectives section, outline your business’s core goals and the strategic approaches you plan to use to achieve them. This section should set forth clear, specific objectives that are attainable and time-bound, providing a roadmap for your business’s growth and success.
It’s important to detail how these objectives align with your company’s overall mission and vision. Discuss the milestones you aim to achieve and the timeframe you’ve set for these accomplishments.
This part of the plan demonstrates to investors and stakeholders your vision for growth and the practical steps you’ll take to get there.
Example: EcoTech’s primary objective is to become a market leader in sustainable technology products within the next five years. Our key objectives include:
- Introducing three new products within the first two years of operation.
- Achieving annual revenue growth of 30%.
- Expanding our customer base to over 10,000 clients by the end of the third year.
Company Description
![how to write a business plan on selling business plan](https://media.smallbiztrends.com/2023/07/business-plan-13.png)
The Company Description section is your opportunity to delve into the details of your business. Provide a comprehensive overview that includes your company’s history, its mission statement, and its vision for the future.
Highlight your unique selling proposition (USP) – what makes your business stand out in the market. Explain the problems your company solves and how it benefits your customers.
Include information about the company’s founders, their expertise, and why they are suited to lead the business to success. This section should paint a vivid picture of your business, its values, and its place in the industry.
Example: EcoTech is committed to developing cutting-edge sustainable technology products that benefit both the environment and our customers. Our unique combination of innovative solutions and eco-friendly design sets us apart from the competition. We envision a future where technology and sustainability go hand in hand, leading to a greener planet.
Define Your Target Market
![how to write a business plan on selling business plan](https://media.smallbiztrends.com/2023/07/business-plan-12.png)
Defining Your Target Market is critical for tailoring your business strategy effectively. This section should describe your ideal customer base in detail, including demographic information (such as age, gender, income level, and location) and psychographic data (like interests, values, and lifestyle).
Elucidate on the specific needs or pain points of your target audience and how your product or service addresses these. This information will help you know your target market and develop targeted marketing strategies.
Example: Our target market comprises environmentally conscious consumers and businesses looking for innovative solutions to reduce their carbon footprint. Our ideal customers are those who prioritize sustainability and are willing to invest in eco-friendly products.
Market Analysis
![how to write a business plan on selling business plan](https://media.smallbiztrends.com/2023/07/business-plan-11.png)
The Market Analysis section requires thorough research and a keen understanding of the industry. It involves examining the current trends within your industry, understanding the needs and preferences of your customers, and analyzing the strengths and weaknesses of your competitors.
This analysis will enable you to spot market opportunities and anticipate potential challenges. Include data and statistics to back up your claims, and use graphs or charts to illustrate market trends.
This section should demonstrate that you have a deep understanding of the market in which you operate and that your business is well-positioned to capitalize on its opportunities.
Example: The market for eco-friendly technology products has experienced significant growth in recent years, with an estimated annual growth rate of 10%. As consumers become increasingly aware of environmental issues, the demand for sustainable solutions continues to rise.
Our research indicates a gap in the market for high-quality, innovative eco-friendly technology products that cater to both individual and business clients.
SWOT Analysis
![how to write a business plan on selling business plan](https://media.smallbiztrends.com/2023/07/business-plan-10.png)
A SWOT analysis in your business plan offers a comprehensive examination of your company’s internal and external factors. By assessing Strengths, you showcase what your business does best and where your capabilities lie.
Weaknesses involve an honest introspection of areas where your business may be lacking or could improve. Opportunities can be external factors that your business could capitalize on, such as market gaps or emerging trends.
Threats include external challenges your business may face, like competition or market changes. This analysis is crucial for strategic planning, as it helps in recognizing and leveraging your strengths, addressing weaknesses, seizing opportunities, and preparing for potential threats.
Including a SWOT analysis demonstrates to stakeholders that you have a balanced and realistic understanding of your business in its operational context.
- Innovative and eco-friendly product offerings.
- Strong commitment to sustainability and environmental responsibility.
- Skilled and experienced team with expertise in technology and sustainability.
Weaknesses:
- Limited brand recognition compared to established competitors.
- Reliance on third-party manufacturers for product development.
Opportunities:
- Growing consumer interest in sustainable products.
- Partnerships with environmentally-focused organizations and influencers.
- Expansion into international markets.
- Intense competition from established technology companies.
- Regulatory changes could impact the sustainable technology market.
Competitive Analysis
![how to write a business plan on selling business plan](https://media.smallbiztrends.com/2023/07/business-plan-9.png)
In this section, you’ll analyze your competitors in-depth, examining their products, services, market positioning, and pricing strategies. Understanding your competition allows you to identify gaps in the market and tailor your offerings to outperform them.
By conducting a thorough competitive analysis, you can gain insights into your competitors’ strengths and weaknesses, enabling you to develop strategies to differentiate your business and gain a competitive advantage in the marketplace.
Example: Key competitors include:
GreenTech: A well-known brand offering eco-friendly technology products, but with a narrower focus on energy-saving devices.
EarthSolutions: A direct competitor specializing in sustainable technology, but with a limited product range and higher prices.
By offering a diverse product portfolio, competitive pricing, and continuous innovation, we believe we can capture a significant share of the growing sustainable technology market.
Organization and Management Team
![how to write a business plan on selling business plan](https://media.smallbiztrends.com/2023/07/business-plan-8.png)
Provide an overview of your company’s organizational structure, including key roles and responsibilities. Introduce your management team, highlighting their expertise and experience to demonstrate that your team is capable of executing the business plan successfully.
Showcasing your team’s background, skills, and accomplishments instills confidence in investors and other stakeholders, proving that your business has the leadership and talent necessary to achieve its objectives and manage growth effectively.
Example: EcoTech’s organizational structure comprises the following key roles: CEO, CTO, CFO, Sales Director, Marketing Director, and R&D Manager. Our management team has extensive experience in technology, sustainability, and business development, ensuring that we are well-equipped to execute our business plan successfully.
Products and Services Offered
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Describe the products or services your business offers, focusing on their unique features and benefits. Explain how your offerings solve customer pain points and why they will choose your products or services over the competition.
This section should emphasize the value you provide to customers, demonstrating that your business has a deep understanding of customer needs and is well-positioned to deliver innovative solutions that address those needs and set your company apart from competitors.
Example: EcoTech offers a range of eco-friendly technology products, including energy-efficient lighting solutions, solar chargers, and smart home devices that optimize energy usage. Our products are designed to help customers reduce energy consumption, minimize waste, and contribute to a cleaner environment.
Marketing and Sales Strategy
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In this section, articulate your comprehensive strategy for reaching your target market and driving sales. Detail the specific marketing channels you plan to use, such as social media, email marketing, SEO, or traditional advertising.
Describe the nature of your advertising campaigns and promotional activities, explaining how they will capture the attention of your target audience and convey the value of your products or services. Outline your sales strategy, including your sales process, team structure, and sales targets.
Discuss how these marketing and sales efforts will work together to attract and retain customers, generate leads, and ultimately contribute to achieving your business’s revenue goals.
This section is critical to convey to investors and stakeholders that you have a well-thought-out approach to market your business effectively and drive sales growth.
Example: Our marketing strategy includes digital advertising, content marketing, social media promotion, and influencer partnerships. We will also attend trade shows and conferences to showcase our products and connect with potential clients. Our sales strategy involves both direct sales and partnerships with retail stores, as well as online sales through our website and e-commerce platforms.
Logistics and Operations Plan
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The Logistics and Operations Plan is a critical component that outlines the inner workings of your business. It encompasses the management of your supply chain, detailing how you acquire raw materials and manage vendor relationships.
Inventory control is another crucial aspect, where you explain strategies for inventory management to ensure efficiency and reduce wastage. The section should also describe your production processes, emphasizing scalability and adaptability to meet changing market demands.
Quality control measures are essential to maintain product standards and customer satisfaction. This plan assures investors and stakeholders of your operational competency and readiness to meet business demands.
Highlighting your commitment to operational efficiency and customer satisfaction underlines your business’s capability to maintain smooth, effective operations even as it scales.
Example: EcoTech partners with reliable third-party manufacturers to produce our eco-friendly technology products. Our operations involve maintaining strong relationships with suppliers, ensuring quality control, and managing inventory.
We also prioritize efficient distribution through various channels, including online platforms and retail partners, to deliver products to our customers in a timely manner.
Financial Projections Plan
![how to write a business plan on selling business plan](https://media.smallbiztrends.com/2023/07/business-plan-4.png)
In the Financial Projections Plan, lay out a clear and realistic financial future for your business. This should include detailed projections for revenue, costs, and profitability over the next three to five years.
Ground these projections in solid assumptions based on your market analysis, industry benchmarks, and realistic growth scenarios. Break down revenue streams and include an analysis of the cost of goods sold, operating expenses, and potential investments.
This section should also discuss your break-even analysis, cash flow projections, and any assumptions about external funding requirements.
By presenting a thorough and data-backed financial forecast, you instill confidence in potential investors and lenders, showcasing your business’s potential for profitability and financial stability.
This forward-looking financial plan is crucial for demonstrating that you have a firm grasp of the financial nuances of your business and are prepared to manage its financial health effectively.
Example: Over the next three years, we expect to see significant growth in revenue, driven by new product launches and market expansion. Our financial projections include:
- Year 1: $1.5 million in revenue, with a net profit of $200,000.
- Year 2: $3 million in revenue, with a net profit of $500,000.
- Year 3: $4.5 million in revenue, with a net profit of $1 million.
These projections are based on realistic market analysis, growth rates, and product pricing.
Income Statement
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The income statement , also known as the profit and loss statement, provides a summary of your company’s revenues and expenses over a specified period. It helps you track your business’s financial performance and identify trends, ensuring you stay on track to achieve your financial goals.
Regularly reviewing and analyzing your income statement allows you to monitor the health of your business, evaluate the effectiveness of your strategies, and make data-driven decisions to optimize profitability and growth.
Example: The income statement for EcoTech’s first year of operation is as follows:
- Revenue: $1,500,000
- Cost of Goods Sold: $800,000
- Gross Profit: $700,000
- Operating Expenses: $450,000
- Net Income: $250,000
This statement highlights our company’s profitability and overall financial health during the first year of operation.
Cash Flow Statement
![how to write a business plan on selling business plan](https://media.smallbiztrends.com/2023/07/business-plan-2.png)
A cash flow statement is a crucial part of a financial business plan that shows the inflows and outflows of cash within your business. It helps you monitor your company’s liquidity, ensuring you have enough cash on hand to cover operating expenses, pay debts, and invest in growth opportunities.
By including a cash flow statement in your business plan, you demonstrate your ability to manage your company’s finances effectively.
Example: The cash flow statement for EcoTech’s first year of operation is as follows:
Operating Activities:
- Depreciation: $10,000
- Changes in Working Capital: -$50,000
- Net Cash from Operating Activities: $210,000
Investing Activities:
- Capital Expenditures: -$100,000
- Net Cash from Investing Activities: -$100,000
Financing Activities:
- Proceeds from Loans: $150,000
- Loan Repayments: -$50,000
- Net Cash from Financing Activities: $100,000
- Net Increase in Cash: $210,000
This statement demonstrates EcoTech’s ability to generate positive cash flow from operations, maintain sufficient liquidity, and invest in growth opportunities.
Tips on Writing a Business Plan
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1. Be clear and concise: Keep your language simple and straightforward. Avoid jargon and overly technical terms. A clear and concise business plan is easier for investors and stakeholders to understand and demonstrates your ability to communicate effectively.
2. Conduct thorough research: Before writing your business plan, gather as much information as possible about your industry, competitors, and target market. Use reliable sources and industry reports to inform your analysis and make data-driven decisions.
3. Set realistic goals: Your business plan should outline achievable objectives that are specific, measurable, attainable, relevant, and time-bound (SMART). Setting realistic goals demonstrates your understanding of the market and increases the likelihood of success.
4. Focus on your unique selling proposition (USP): Clearly articulate what sets your business apart from the competition. Emphasize your USP throughout your business plan to showcase your company’s value and potential for success.
5. Be flexible and adaptable: A business plan is a living document that should evolve as your business grows and changes. Be prepared to update and revise your plan as you gather new information and learn from your experiences.
6. Use visuals to enhance understanding: Include charts, graphs, and other visuals to help convey complex data and ideas. Visuals can make your business plan more engaging and easier to digest, especially for those who prefer visual learning.
7. Seek feedback from trusted sources: Share your business plan with mentors, industry experts, or colleagues and ask for their feedback. Their insights can help you identify areas for improvement and strengthen your plan before presenting it to potential investors or partners.
FREE Business Plan Template
To help you get started on your business plan, we have created a template that includes all the essential components discussed in the “How to Write a Business Plan” section. This easy-to-use template will guide you through each step of the process, ensuring you don’t miss any critical details.
The template is divided into the following sections:
- Mission statement
- Business Overview
- Key products or services
- Target market
- Financial highlights
- Company goals
- Strategies to achieve goals
- Measurable, time-bound objectives
- Company History
- Mission and vision
- Unique selling proposition
- Demographics
- Psychographics
- Pain points
- Industry trends
- Customer needs
- Competitor strengths and weaknesses
- Opportunities
- Competitor products and services
- Market positioning
- Pricing strategies
- Organizational structure
- Key roles and responsibilities
- Management team backgrounds
- Product or service features
- Competitive advantages
- Marketing channels
- Advertising campaigns
- Promotional activities
- Sales strategies
- Supply chain management
- Inventory control
- Production processes
- Quality control measures
- Projected revenue
- Assumptions
- Cash inflows
- Cash outflows
- Net cash flow
What is a Business Plan?
A business plan is a strategic document that outlines an organization’s goals, objectives, and the steps required to achieve them. It serves as a roadmap as you start a business , guiding the company’s direction and growth while identifying potential obstacles and opportunities.
Typically, a business plan covers areas such as market analysis, financial projections, marketing strategies, and organizational structure. It not only helps in securing funding from investors and lenders but also provides clarity and focus to the management team.
A well-crafted business plan is a very important part of your business startup checklist because it fosters informed decision-making and long-term success.
![how to write a business plan on selling business plan](https://media.smallbiztrends.com/2023/03/How-to-Write-a-Business-Plan-Step-By-Step-in-2023.png)
Why You Should Write a Business Plan
Understanding the importance of a business plan in today’s competitive environment is crucial for entrepreneurs and business owners. Here are five compelling reasons to write a business plan:
- Attract Investors and Secure Funding : A well-written business plan demonstrates your venture’s potential and profitability, making it easier to attract investors and secure the necessary funding for growth and development. It provides a detailed overview of your business model, target market, financial projections, and growth strategies, instilling confidence in potential investors and lenders that your company is a worthy investment.
- Clarify Business Objectives and Strategies : Crafting a business plan forces you to think critically about your goals and the strategies you’ll employ to achieve them, providing a clear roadmap for success. This process helps you refine your vision and prioritize the most critical objectives, ensuring that your efforts are focused on achieving the desired results.
- Identify Potential Risks and Opportunities : Analyzing the market, competition, and industry trends within your business plan helps identify potential risks and uncover untapped opportunities for growth and expansion. This insight enables you to develop proactive strategies to mitigate risks and capitalize on opportunities, positioning your business for long-term success.
- Improve Decision-Making : A business plan serves as a reference point so you can make informed decisions that align with your company’s overall objectives and long-term vision. By consistently referring to your plan and adjusting it as needed, you can ensure that your business remains on track and adapts to changes in the market, industry, or internal operations.
- Foster Team Alignment and Communication : A shared business plan helps ensure that all team members are on the same page, promoting clear communication, collaboration, and a unified approach to achieving the company’s goals. By involving your team in the planning process and regularly reviewing the plan together, you can foster a sense of ownership, commitment, and accountability that drives success.
What are the Different Types of Business Plans?
In today’s fast-paced business world, having a well-structured roadmap is more important than ever. A traditional business plan provides a comprehensive overview of your company’s goals and strategies, helping you make informed decisions and achieve long-term success. There are various types of business plans, each designed to suit different needs and purposes. Let’s explore the main types:
- Startup Business Plan: Tailored for new ventures, a startup business plan outlines the company’s mission, objectives, target market, competition, marketing strategies, and financial projections. It helps entrepreneurs clarify their vision, secure funding from investors, and create a roadmap for their business’s future. Additionally, this plan identifies potential challenges and opportunities, which are crucial for making informed decisions and adapting to changing market conditions.
- Internal Business Plan: This type of plan is intended for internal use, focusing on strategies, milestones, deadlines, and resource allocation. It serves as a management tool for guiding the company’s growth, evaluating its progress, and ensuring that all departments are aligned with the overall vision. The internal business plan also helps identify areas of improvement, fosters collaboration among team members, and provides a reference point for measuring performance.
- Strategic Business Plan: A strategic business plan outlines long-term goals and the steps to achieve them, providing a clear roadmap for the company’s direction. It typically includes a SWOT analysis, market research, and competitive analysis. This plan allows businesses to align their resources with their objectives, anticipate changes in the market, and develop contingency plans. By focusing on the big picture, a strategic business plan fosters long-term success and stability.
- Feasibility Business Plan: This plan is designed to assess the viability of a business idea, examining factors such as market demand, competition, and financial projections. It is often used to decide whether or not to pursue a particular venture. By conducting a thorough feasibility analysis, entrepreneurs can avoid investing time and resources into an unviable business concept. This plan also helps refine the business idea, identify potential obstacles, and determine the necessary resources for success.
- Growth Business Plan: Also known as an expansion plan, a growth business plan focuses on strategies for scaling up an existing business. It includes market analysis, new product or service offerings, and financial projections to support expansion plans. This type of plan is essential for businesses looking to enter new markets, increase their customer base, or launch new products or services. By outlining clear growth strategies, the plan helps ensure that expansion efforts are well-coordinated and sustainable.
- Operational Business Plan: This type of plan outlines the company’s day-to-day operations, detailing the processes, procedures, and organizational structure. It is an essential tool for managing resources, streamlining workflows, and ensuring smooth operations. The operational business plan also helps identify inefficiencies, implement best practices, and establish a strong foundation for future growth. By providing a clear understanding of daily operations, this plan enables businesses to optimize their resources and enhance productivity.
- Lean Business Plan: A lean business plan is a simplified, agile version of a traditional plan, focusing on key elements such as value proposition, customer segments, revenue streams, and cost structure. It is perfect for startups looking for a flexible, adaptable planning approach. The lean business plan allows for rapid iteration and continuous improvement, enabling businesses to pivot and adapt to changing market conditions. This streamlined approach is particularly beneficial for businesses in fast-paced or uncertain industries.
- One-Page Business Plan: As the name suggests, a one-page business plan is a concise summary of your company’s key objectives, strategies, and milestones. It serves as a quick reference guide and is ideal for pitching to potential investors or partners. This plan helps keep teams focused on essential goals and priorities, fosters clear communication, and provides a snapshot of the company’s progress. While not as comprehensive as other plans, a one-page business plan is an effective tool for maintaining clarity and direction.
- Nonprofit Business Plan: Specifically designed for nonprofit organizations, this plan outlines the mission, goals, target audience, fundraising strategies, and budget allocation. It helps secure grants and donations while ensuring the organization stays on track with its objectives. The nonprofit business plan also helps attract volunteers, board members, and community support. By demonstrating the organization’s impact and plans for the future, this plan is essential for maintaining transparency, accountability, and long-term sustainability within the nonprofit sector.
- Franchise Business Plan: For entrepreneurs seeking to open a franchise, this type of plan focuses on the franchisor’s requirements, as well as the franchisee’s goals, strategies, and financial projections. It is crucial for securing a franchise agreement and ensuring the business’s success within the franchise system. This plan outlines the franchisee’s commitment to brand standards, marketing efforts, and operational procedures, while also addressing local market conditions and opportunities. By creating a solid franchise business plan, entrepreneurs can demonstrate their ability to effectively manage and grow their franchise, increasing the likelihood of a successful partnership with the franchisor.
Using Business Plan Software
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Creating a comprehensive business plan can be intimidating, but business plan software can streamline the process and help you produce a professional document. These tools offer a number of benefits, including guided step-by-step instructions, financial projections, and industry-specific templates. Here are the top 5 business plan software options available to help you craft a great business plan.
1. LivePlan
LivePlan is a popular choice for its user-friendly interface and comprehensive features. It offers over 500 sample plans, financial forecasting tools, and the ability to track your progress against key performance indicators. With LivePlan, you can create visually appealing, professional business plans that will impress investors and stakeholders.
2. Upmetrics
Upmetrics provides a simple and intuitive platform for creating a well-structured business plan. It features customizable templates, financial forecasting tools, and collaboration capabilities, allowing you to work with team members and advisors. Upmetrics also offers a library of resources to guide you through the business planning process.
Bizplan is designed to simplify the business planning process with a drag-and-drop builder and modular sections. It offers financial forecasting tools, progress tracking, and a visually appealing interface. With Bizplan, you can create a business plan that is both easy to understand and visually engaging.
Enloop is a robust business plan software that automatically generates a tailored plan based on your inputs. It provides industry-specific templates, financial forecasting, and a unique performance score that updates as you make changes to your plan. Enloop also offers a free version, making it accessible for businesses on a budget.
5. Tarkenton GoSmallBiz
Developed by NFL Hall of Famer Fran Tarkenton, GoSmallBiz is tailored for small businesses and startups. It features a guided business plan builder, customizable templates, and financial projection tools. GoSmallBiz also offers additional resources, such as CRM tools and legal document templates, to support your business beyond the planning stage.
Business Plan FAQs
What is a good business plan.
A good business plan is a well-researched, clear, and concise document that outlines a company’s goals, strategies, target market, competitive advantages, and financial projections. It should be adaptable to change and provide a roadmap for achieving success.
What are the 3 main purposes of a business plan?
The three main purposes of a business plan are to guide the company’s strategy, attract investment, and evaluate performance against objectives. Here’s a closer look at each of these:
- It outlines the company’s purpose and core values to ensure that all activities align with its mission and vision.
- It provides an in-depth analysis of the market, including trends, customer needs, and competition, helping the company tailor its products and services to meet market demands.
- It defines the company’s marketing and sales strategies, guiding how the company will attract and retain customers.
- It describes the company’s organizational structure and management team, outlining roles and responsibilities to ensure effective operation and leadership.
- It sets measurable, time-bound objectives, allowing the company to plan its activities effectively and make strategic decisions to achieve these goals.
- It provides a comprehensive overview of the company and its business model, demonstrating its uniqueness and potential for success.
- It presents the company’s financial projections, showing its potential for profitability and return on investment.
- It demonstrates the company’s understanding of the market, including its target customers and competition, convincing investors that the company is capable of gaining a significant market share.
- It showcases the management team’s expertise and experience, instilling confidence in investors that the team is capable of executing the business plan successfully.
- It establishes clear, measurable objectives that serve as performance benchmarks.
- It provides a basis for regular performance reviews, allowing the company to monitor its progress and identify areas for improvement.
- It enables the company to assess the effectiveness of its strategies and make adjustments as needed to achieve its objectives.
- It helps the company identify potential risks and challenges, enabling it to develop contingency plans and manage risks effectively.
- It provides a mechanism for evaluating the company’s financial performance, including revenue, expenses, profitability, and cash flow.
Can I write a business plan by myself?
Yes, you can write a business plan by yourself, but it can be helpful to consult with mentors, colleagues, or industry experts to gather feedback and insights. There are also many creative business plan templates and business plan examples available online, including those above.
We also have examples for specific industries, including a using food truck business plan , salon business plan , farm business plan , daycare business plan , and restaurant business plan .
Is it possible to create a one-page business plan?
Yes, a one-page business plan is a condensed version that highlights the most essential elements, including the company’s mission, target market, unique selling proposition, and financial goals.
How long should a business plan be?
A typical business plan ranges from 20 to 50 pages, but the length may vary depending on the complexity and needs of the business.
What is a business plan outline?
A business plan outline is a structured framework that organizes the content of a business plan into sections, such as the executive summary, company description, market analysis, and financial projections.
What are the 5 most common business plan mistakes?
The five most common business plan mistakes include inadequate research, unrealistic financial projections, lack of focus on the unique selling proposition, poor organization and structure, and failure to update the plan as circumstances change.
What questions should be asked in a business plan?
A business plan should address questions such as: What problem does the business solve? Who is the specific target market ? What is the unique selling proposition? What are the company’s objectives? How will it achieve those objectives?
What’s the difference between a business plan and a strategic plan?
A business plan focuses on the overall vision, goals, and tactics of a company, while a strategic plan outlines the specific strategies, action steps, and performance measures necessary to achieve the company’s objectives.
How is business planning for a nonprofit different?
Nonprofit business planning focuses on the organization’s mission, social impact, and resource management, rather than profit generation. The financial section typically includes funding sources, expenses, and projected budgets for programs and operations.
Image: Envato Elements
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How to Write a Business Plan in 9 Steps (+ Template and Examples)
Every successful business has one thing in common, a good and well-executed business plan. A business plan is more than a document, it is a complete guide that outlines the goals your business wants to achieve, including its financial goals . It helps you analyze results, make strategic decisions, show your business operations and growth.
If you want to start a business or already have one and need to pitch it to investors for funding, writing a good business plan improves your chances of attracting financiers. As a startup, if you want to secure loans from financial institutions, part of the requirements involve submitting your business plan.
Writing a business plan does not have to be a complicated or time-consuming process. In this article, you will learn the step-by-step process for writing a successful business plan.
You will also learn what you need a business plan for, tips and strategies for writing a convincing business plan, business plan examples and templates that will save you tons of time, and the alternatives to the traditional business plan.
Let’s get started.
What Do You Need A Business Plan For?
Businesses create business plans for different purposes such as to secure funds, monitor business growth, measure your marketing strategies, and measure your business success.
1. Secure Funds
One of the primary reasons for writing a business plan is to secure funds, either from financial institutions/agencies or investors.
For you to effectively acquire funds, your business plan must contain the key elements of your business plan . For example, your business plan should include your growth plans, goals you want to achieve, and milestones you have recorded.
A business plan can also attract new business partners that are willing to contribute financially and intellectually. If you are writing a business plan to a bank, your project must show your traction , that is, the proof that you can pay back any loan borrowed.
Also, if you are writing to an investor, your plan must contain evidence that you can effectively utilize the funds you want them to invest in your business. Here, you are using your business plan to persuade a group or an individual that your business is a source of a good investment.
2. Monitor Business Growth
A business plan can help you track cash flows in your business. It steers your business to greater heights. A business plan capable of tracking business growth should contain:
- The business goals
- Methods to achieve the goals
- Time-frame for attaining those goals
A good business plan should guide you through every step in achieving your goals. It can also track the allocation of assets to every aspect of the business. You can tell when you are spending more than you should on a project.
You can compare a business plan to a written GPS. It helps you manage your business and hints at the right time to expand your business.
3. Measure Business Success
A business plan can help you measure your business success rate. Some small-scale businesses are thriving better than more prominent companies because of their track record of success.
Right from the onset of your business operation, set goals and work towards them. Write a plan to guide you through your procedures. Use your plan to measure how much you have achieved and how much is left to attain.
You can also weigh your success by monitoring the position of your brand relative to competitors. On the other hand, a business plan can also show you why you have not achieved a goal. It can tell if you have elapsed the time frame you set to attain a goal.
4. Document Your Marketing Strategies
You can use a business plan to document your marketing plans. Every business should have an effective marketing plan.
Competition mandates every business owner to go the extraordinary mile to remain relevant in the market. Your business plan should contain your marketing strategies that work. You can measure the success rate of your marketing plans.
In your business plan, your marketing strategy must answer the questions:
- How do you want to reach your target audience?
- How do you plan to retain your customers?
- What is/are your pricing plans?
- What is your budget for marketing?
![how to write a business plan on selling Business Plan Infographic](https://www.founderjar.com/wp-content/uploads/2021/07/Business-Plan-Infographic.jpg)
How to Write a Business Plan Step-by-Step
1. create your executive summary.
The executive summary is a snapshot of your business or a high-level overview of your business purposes and plans . Although the executive summary is the first section in your business plan, most people write it last. The length of the executive summary is not more than two pages.
![how to write a business plan on selling Executive Summary of the business plan](https://www.founderjar.com/wp-content/uploads/2021/07/Executive-Summary-of-the-business-plan.jpg)
Generally, there are nine sections in a business plan, the executive summary should condense essential ideas from the other eight sections.
A good executive summary should do the following:
- A Snapshot of Growth Potential. Briefly inform the reader about your company and why it will be successful)
- Contain your Mission Statement which explains what the main objective or focus of your business is.
- Product Description and Differentiation. Brief description of your products or services and why it is different from other solutions in the market.
- The Team. Basic information about your company’s leadership team and employees
- Business Concept. A solid description of what your business does.
- Target Market. The customers you plan to sell to.
- Marketing Strategy. Your plans on reaching and selling to your customers
- Current Financial State. Brief information about what revenue your business currently generates.
- Projected Financial State. Brief information about what you foresee your business revenue to be in the future.
The executive summary is the make-or-break section of your business plan. If your summary cannot in less than two pages cannot clearly describe how your business will solve a particular problem of your target audience and make a profit, your business plan is set on a faulty foundation.
Avoid using the executive summary to hype your business, instead, focus on helping the reader understand the what and how of your plan.
View the executive summary as an opportunity to introduce your vision for your company. You know your executive summary is powerful when it can answer these key questions:
- Who is your target audience?
- What sector or industry are you in?
- What are your products and services?
- What is the future of your industry?
- Is your company scaleable?
- Who are the owners and leaders of your company? What are their backgrounds and experience levels?
- What is the motivation for starting your company?
- What are the next steps?
Writing the executive summary last although it is the most important section of your business plan is an excellent idea. The reason why is because it is a high-level overview of your business plan. It is the section that determines whether potential investors and lenders will read further or not.
The executive summary can be a stand-alone document that covers everything in your business plan. It is not uncommon for investors to request only the executive summary when evaluating your business. If the information in the executive summary impresses them, they will ask for the complete business plan.
If you are writing your business plan for your planning purposes, you do not need to write the executive summary.
2. Add Your Company Overview
The company overview or description is the next section in your business plan after the executive summary. It describes what your business does.
Adding your company overview can be tricky especially when your business is still in the planning stages. Existing businesses can easily summarize their current operations but may encounter difficulties trying to explain what they plan to become.
Your company overview should contain the following:
- What products and services you will provide
- Geographical markets and locations your company have a presence
- What you need to run your business
- Who your target audience or customers are
- Who will service your customers
- Your company’s purpose, mission, and vision
- Information about your company’s founders
- Who the founders are
- Notable achievements of your company so far
When creating a company overview, you have to focus on three basics: identifying your industry, identifying your customer, and explaining the problem you solve.
If you are stuck when creating your company overview, try to answer some of these questions that pertain to you.
- Who are you targeting? (The answer is not everyone)
- What pain point does your product or service solve for your customers that they will be willing to spend money on resolving?
- How does your product or service overcome that pain point?
- Where is the location of your business?
- What products, equipment, and services do you need to run your business?
- How is your company’s product or service different from your competition in the eyes of your customers?
- How many employees do you need and what skills do you require them to have?
After answering some or all of these questions, you will get more than enough information you need to write your company overview or description section. When writing this section, describe what your company does for your customers.
![how to write a business plan on selling It describes what your business does](https://www.founderjar.com/wp-content/uploads/2021/07/Company-Description-describes-what-your-business-does.jpg)
The company description or overview section contains three elements: mission statement, history, and objectives.
- Mission Statement
The mission statement refers to the reason why your business or company is existing. It goes beyond what you do or sell, it is about the ‘why’. A good mission statement should be emotional and inspirational.
Your mission statement should follow the KISS rule (Keep It Simple, Stupid). For example, Shopify’s mission statement is “Make commerce better for everyone.”
When describing your company’s history, make it simple and avoid the temptation of tying it to a defensive narrative. Write it in the manner you would a profile. Your company’s history should include the following information:
- Founding Date
- Major Milestones
- Location(s)
- Flagship Products or Services
- Number of Employees
- Executive Leadership Roles
When you fill in this information, you use it to write one or two paragraphs about your company’s history.
Business Objectives
Your business objective must be SMART (specific, measurable, achievable, realistic, and time-bound.) Failure to clearly identify your business objectives does not inspire confidence and makes it hard for your team members to work towards a common purpose.
3. Perform Market and Competitive Analyses to Proof a Big Enough Business Opportunity
The third step in writing a business plan is the market and competitive analysis section. Every business, no matter the size, needs to perform comprehensive market and competitive analyses before it enters into a market.
Performing market and competitive analyses are critical for the success of your business. It helps you avoid entering the right market with the wrong product, or vice versa. Anyone reading your business plans, especially financiers and financial institutions will want to see proof that there is a big enough business opportunity you are targeting.
This section is where you describe the market and industry you want to operate in and show the big opportunities in the market that your business can leverage to make a profit. If you noticed any unique trends when doing your research, show them in this section.
Market analysis alone is not enough, you have to add competitive analysis to strengthen this section. There are already businesses in the industry or market, how do you plan to take a share of the market from them?
You have to clearly illustrate the competitive landscape in your business plan. Are there areas your competitors are doing well? Are there areas where they are not doing so well? Show it.
Make it clear in this section why you are moving into the industry and what weaknesses are present there that you plan to explain. How are your competitors going to react to your market entry? How do you plan to get customers? Do you plan on taking your competitors' competitors, tap into other sources for customers, or both?
Illustrate the competitive landscape as well. What are your competitors doing well and not so well?
Answering these questions and thoughts will aid your market and competitive analysis of the opportunities in your space. Depending on how sophisticated your industry is, or the expectations of your financiers, you may need to carry out a more comprehensive market and competitive analysis to prove that big business opportunity.
Instead of looking at the market and competitive analyses as one entity, separating them will make the research even more comprehensive.
Market Analysis
Market analysis, boarding speaking, refers to research a business carried out on its industry, market, and competitors. It helps businesses gain a good understanding of their target market and the outlook of their industry. Before starting a company, it is vital to carry out market research to find out if the market is viable.
![how to write a business plan on selling Market Analysis for Online Business](https://www.founderjar.com/wp-content/uploads/2021/07/Market-Analysis-for-Online-Business.jpg)
The market analysis section is a key part of the business plan. It is the section where you identify who your best clients or customers are. You cannot omit this section, without it your business plan is incomplete.
A good market analysis will tell your readers how you fit into the existing market and what makes you stand out. This section requires in-depth research, it will probably be the most time-consuming part of the business plan to write.
- Market Research
To create a compelling market analysis that will win over investors and financial institutions, you have to carry out thorough market research . Your market research should be targeted at your primary target market for your products or services. Here is what you want to find out about your target market.
- Your target market’s needs or pain points
- The existing solutions for their pain points
- Geographic Location
- Demographics
The purpose of carrying out a marketing analysis is to get all the information you need to show that you have a solid and thorough understanding of your target audience.
Only after you have fully understood the people you plan to sell your products or services to, can you evaluate correctly if your target market will be interested in your products or services.
You can easily convince interested parties to invest in your business if you can show them you thoroughly understand the market and show them that there is a market for your products or services.
How to Quantify Your Target Market
One of the goals of your marketing research is to understand who your ideal customers are and their purchasing power. To quantify your target market, you have to determine the following:
- Your Potential Customers: They are the people you plan to target. For example, if you sell accounting software for small businesses , then anyone who runs an enterprise or large business is unlikely to be your customers. Also, individuals who do not have a business will most likely not be interested in your product.
- Total Households: If you are selling household products such as heating and air conditioning systems, determining the number of total households is more important than finding out the total population in the area you want to sell to. The logic is simple, people buy the product but it is the household that uses it.
- Median Income: You need to know the median income of your target market. If you target a market that cannot afford to buy your products and services, your business will not last long.
- Income by Demographics: If your potential customers belong to a certain age group or gender, determining income levels by demographics is necessary. For example, if you sell men's clothes, your target audience is men.
What Does a Good Market Analysis Entail?
Your business does not exist on its own, it can only flourish within an industry and alongside competitors. Market analysis takes into consideration your industry, target market, and competitors. Understanding these three entities will drastically improve your company’s chances of success.
![how to write a business plan on selling Market Analysis Steps](https://www.founderjar.com/wp-content/uploads/2021/07/Market-Analysis-Steps.jpg)
You can view your market analysis as an examination of the market you want to break into and an education on the emerging trends and themes in that market. Good market analyses include the following:
- Industry Description. You find out about the history of your industry, the current and future market size, and who the largest players/companies are in your industry.
- Overview of Target Market. You research your target market and its characteristics. Who are you targeting? Note, it cannot be everyone, it has to be a specific group. You also have to find out all information possible about your customers that can help you understand how and why they make buying decisions.
- Size of Target Market: You need to know the size of your target market, how frequently they buy, and the expected quantity they buy so you do not risk overproducing and having lots of bad inventory. Researching the size of your target market will help you determine if it is big enough for sustained business or not.
- Growth Potential: Before picking a target market, you want to be sure there are lots of potential for future growth. You want to avoid going for an industry that is declining slowly or rapidly with almost zero growth potential.
- Market Share Potential: Does your business stand a good chance of taking a good share of the market?
- Market Pricing and Promotional Strategies: Your market analysis should give you an idea of the price point you can expect to charge for your products and services. Researching your target market will also give you ideas of pricing strategies you can implement to break into the market or to enjoy maximum profits.
- Potential Barriers to Entry: One of the biggest benefits of conducting market analysis is that it shows you every potential barrier to entry your business will likely encounter. It is a good idea to discuss potential barriers to entry such as changing technology. It informs readers of your business plan that you understand the market.
- Research on Competitors: You need to know the strengths and weaknesses of your competitors and how you can exploit them for the benefit of your business. Find patterns and trends among your competitors that make them successful, discover what works and what doesn’t, and see what you can do better.
The market analysis section is not just for talking about your target market, industry, and competitors. You also have to explain how your company can fill the hole you have identified in the market.
Here are some questions you can answer that can help you position your product or service in a positive light to your readers.
- Is your product or service of superior quality?
- What additional features do you offer that your competitors do not offer?
- Are you targeting a ‘new’ market?
Basically, your market analysis should include an analysis of what already exists in the market and an explanation of how your company fits into the market.
Competitive Analysis
In the competitive analysis section, y ou have to understand who your direct and indirect competitions are, and how successful they are in the marketplace. It is the section where you assess the strengths and weaknesses of your competitors, the advantage(s) they possess in the market and show the unique features or qualities that make you different from your competitors.
![how to write a business plan on selling Four Steps to Create a Competitive Marketing Analysis](https://www.founderjar.com/wp-content/uploads/2021/07/Four-Steps-to-Create-a-Competitive-Marketing-Analysis.jpg)
Many businesses do market analysis and competitive analysis together. However, to fully understand what the competitive analysis entails, it is essential to separate it from the market analysis.
Competitive analysis for your business can also include analysis on how to overcome barriers to entry in your target market.
The primary goal of conducting a competitive analysis is to distinguish your business from your competitors. A strong competitive analysis is essential if you want to convince potential funding sources to invest in your business. You have to show potential investors and lenders that your business has what it takes to compete in the marketplace successfully.
Competitive analysis will s how you what the strengths of your competition are and what they are doing to maintain that advantage.
When doing your competitive research, you first have to identify your competitor and then get all the information you can about them. The idea of spending time to identify your competitor and learn everything about them may seem daunting but it is well worth it.
Find answers to the following questions after you have identified who your competitors are.
- What are your successful competitors doing?
- Why is what they are doing working?
- Can your business do it better?
- What are the weaknesses of your successful competitors?
- What are they not doing well?
- Can your business turn its weaknesses into strengths?
- How good is your competitors’ customer service?
- Where do your competitors invest in advertising?
- What sales and pricing strategies are they using?
- What marketing strategies are they using?
- What kind of press coverage do they get?
- What are their customers saying about your competitors (both the positive and negative)?
If your competitors have a website, it is a good idea to visit their websites for more competitors’ research. Check their “About Us” page for more information.
![how to write a business plan on selling How to Perform Competitive Analysis](https://www.founderjar.com/wp-content/uploads/2021/07/How-to-Perform-Competitive-Analysis.jpg)
If you are presenting your business plan to investors, you need to clearly distinguish yourself from your competitors. Investors can easily tell when you have not properly researched your competitors.
Take time to think about what unique qualities or features set you apart from your competitors. If you do not have any direct competition offering your product to the market, it does not mean you leave out the competitor analysis section blank. Instead research on other companies that are providing a similar product, or whose product is solving the problem your product solves.
The next step is to create a table listing the top competitors you want to include in your business plan. Ensure you list your business as the last and on the right. What you just created is known as the competitor analysis table.
Direct vs Indirect Competition
You cannot know if your product or service will be a fit for your target market if you have not understood your business and the competitive landscape.
There is no market you want to target where you will not encounter competition, even if your product is innovative. Including competitive analysis in your business plan is essential.
If you are entering an established market, you need to explain how you plan to differentiate your products from the available options in the market. Also, include a list of few companies that you view as your direct competitors The competition you face in an established market is your direct competition.
In situations where you are entering a market with no direct competition, it does not mean there is no competition there. Consider your indirect competition that offers substitutes for the products or services you offer.
For example, if you sell an innovative SaaS product, let us say a project management software , a company offering time management software is your indirect competition.
There is an easy way to find out who your indirect competitors are in the absence of no direct competitors. You simply have to research how your potential customers are solving the problems that your product or service seeks to solve. That is your direct competition.
Factors that Differentiate Your Business from the Competition
There are three main factors that any business can use to differentiate itself from its competition. They are cost leadership, product differentiation, and market segmentation.
1. Cost Leadership
A strategy you can impose to maximize your profits and gain an edge over your competitors. It involves offering lower prices than what the majority of your competitors are offering.
A common practice among businesses looking to enter into a market where there are dominant players is to use free trials or pricing to attract as many customers as possible to their offer.
2. Product Differentiation
Your product or service should have a unique selling proposition (USP) that your competitors do not have or do not stress in their marketing.
Part of the marketing strategy should involve making your products unique and different from your competitors. It does not have to be different from your competitors, it can be the addition to a feature or benefit that your competitors do not currently have.
3. Market Segmentation
As a new business seeking to break into an industry, you will gain more success from focusing on a specific niche or target market, and not the whole industry.
If your competitors are focused on a general need or target market, you can differentiate yourself from them by having a small and hyper-targeted audience. For example, if your competitors are selling men’s clothes in their online stores , you can sell hoodies for men.
4. Define Your Business and Management Structure
The next step in your business plan is your business and management structure. It is the section where you describe the legal structure of your business and the team running it.
Your business is only as good as the management team that runs it, while the management team can only strive when there is a proper business and management structure in place.
If your company is a sole proprietor or a limited liability company (LLC), a general or limited partnership, or a C or an S corporation, state it clearly in this section.
Use an organizational chart to show the management structure in your business. Clearly show who is in charge of what area in your company. It is where you show how each key manager or team leader’s unique experience can contribute immensely to the success of your company. You can also opt to add the resumes and CVs of the key players in your company.
The business and management structure section should show who the owner is, and other owners of the businesses (if the business has other owners). For businesses or companies with multiple owners, include the percent ownership of the various owners and clearly show the extent of each others’ involvement in the company.
Investors want to know who is behind the company and the team running it to determine if it has the right management to achieve its set goals.
Management Team
The management team section is where you show that you have the right team in place to successfully execute the business operations and ideas. Take time to create the management structure for your business. Think about all the important roles and responsibilities that you need managers for to grow your business.
Include brief bios of each key team member and ensure you highlight only the relevant information that is needed. If your team members have background industry experience or have held top positions for other companies and achieved success while filling that role, highlight it in this section.
![how to write a business plan on selling Create Management Team For Business Plan](https://www.founderjar.com/wp-content/uploads/2021/07/Create-Management-Team-For-Business-Plan.jpg)
A common mistake that many startups make is assigning C-level titles such as (CMO and CEO) to everyone on their team. It is unrealistic for a small business to have those titles. While it may look good on paper for the ego of your team members, it can prevent investors from investing in your business.
Instead of building an unrealistic management structure that does not fit your business reality, it is best to allow business titles to grow as the business grows. Starting everyone at the top leaves no room for future change or growth, which is bad for productivity.
Your management team does not have to be complete before you start writing your business plan. You can have a complete business plan even when there are managerial positions that are empty and need filling.
If you have management gaps in your team, simply show the gaps and indicate you are searching for the right candidates for the role(s). Investors do not expect you to have a full management team when you are just starting your business.
Key Questions to Answer When Structuring Your Management Team
- Who are the key leaders?
- What experiences, skills, and educational backgrounds do you expect your key leaders to have?
- Do your key leaders have industry experience?
- What positions will they fill and what duties will they perform in those positions?
- What level of authority do the key leaders have and what are their responsibilities?
- What is the salary for the various management positions that will attract the ideal candidates?
Additional Tips for Writing the Management Structure Section
1. Avoid Adding ‘Ghost’ Names to Your Management Team
There is always that temptation to include a ‘ghost’ name to your management team to attract and influence investors to invest in your business. Although the presence of these celebrity management team members may attract the attention of investors, it can cause your business to lose any credibility if you get found out.
Seasoned investors will investigate further the members of your management team before committing fully to your business If they find out that the celebrity name used does not play any actual role in your business, they will not invest and may write you off as dishonest.
2. Focus on Credentials But Pay Extra Attention to the Roles
Investors want to know the experience that your key team members have to determine if they can successfully reach the company’s growth and financial goals.
While it is an excellent boost for your key management team to have the right credentials, you also want to pay extra attention to the roles they will play in your company.
Organizational Chart
![how to write a business plan on selling Organizational chart Infographic](https://www.founderjar.com/wp-content/uploads/2021/07/An-organizational-chart-helps-to-identify-how-best-to-structure-your-management-team.jpg)
Adding an organizational chart in this section of your business plan is not necessary, you can do it in your business plan’s appendix.
If you are exploring funding options, it is not uncommon to get asked for your organizational chart. The function of an organizational chart goes beyond raising money, you can also use it as a useful planning tool for your business.
An organizational chart can help you identify how best to structure your management team for maximum productivity and point you towards key roles you need to fill in the future.
You can use the organizational chart to show your company’s internal management structure such as the roles and responsibilities of your management team, and relationships that exist between them.
5. Describe Your Product and Service Offering
In your business plan, you have to describe what you sell or the service you plan to offer. It is the next step after defining your business and management structure. The products and services section is where you sell the benefits of your business.
Here you have to explain how your product or service will benefit your customers and describe your product lifecycle. It is also the section where you write down your plans for intellectual property like patent filings and copyrighting.
The research and development that you are undertaking for your product or service need to be explained in detail in this section. However, do not get too technical, sell the general idea and its benefits.
If you have any diagrams or intricate designs of your product or service, do not include them in the products and services section. Instead, leave them for the addendum page. Also, if you are leaving out diagrams or designs for the addendum, ensure you add this phrase “For more detail, visit the addendum Page #.”
Your product and service section in your business plan should include the following:
- A detailed explanation that clearly shows how your product or service works.
- The pricing model for your product or service.
- Your business’ sales and distribution strategy.
- The ideal customers that want your product or service.
- The benefits of your products and services.
- Reason(s) why your product or service is a better alternative to what your competitors are currently offering in the market.
- Plans for filling the orders you receive
- If you have current or pending patents, copyrights, and trademarks for your product or service, you can also discuss them in this section.
What to Focus On When Describing the Benefits, Lifecycle, and Production Process of Your Products or Services
In the products and services section, you have to distill the benefits, lifecycle, and production process of your products and services.
When describing the benefits of your products or services, here are some key factors to focus on.
- Unique features
- Translating the unique features into benefits
- The emotional, psychological, and practical payoffs to attract customers
- Intellectual property rights or any patents
When describing the product life cycle of your products or services, here are some key factors to focus on.
- Upsells, cross-sells, and down-sells
- Time between purchases
- Plans for research and development.
When describing the production process for your products or services, you need to think about the following:
- The creation of new or existing products and services.
- The sources for the raw materials or components you need for production.
- Assembling the products
- Maintaining quality control
- Supply-chain logistics (receiving the raw materials and delivering the finished products)
- The day-to-day management of the production processes, bookkeeping, and inventory.
Tips for Writing the Products or Services Section of Your Business Plan
1. Avoid Technical Descriptions and Industry Buzzwords
The products and services section of your business plan should clearly describe the products and services that your company provides. However, it is not a section to include technical jargons that anyone outside your industry will not understand.
A good practice is to remove highly detailed or technical descriptions in favor of simple terms. Industry buzzwords are not necessary, if there are simpler terms you can use, then use them. If you plan to use your business plan to source funds, making the product or service section so technical will do you no favors.
2. Describe How Your Products or Services Differ from Your Competitors
When potential investors look at your business plan, they want to know how the products and services you are offering differ from that of your competition. Differentiating your products or services from your competition in a way that makes your solution more attractive is critical.
If you are going the innovative path and there is no market currently for your product or service, you need to describe in this section why the market needs your product or service.
For example, overnight delivery was a niche business that only a few companies were participating in. Federal Express (FedEx) had to show in its business plan that there was a large opportunity for that service and they justified why the market needed that service.
3. Long or Short Products or Services Section
Should your products or services section be short? Does the long products or services section attract more investors?
There are no straightforward answers to these questions. Whether your products or services section should be long or relatively short depends on the nature of your business.
If your business is product-focused, then automatically you need to use more space to describe the details of your products. However, if the product your business sells is a commodity item that relies on competitive pricing or other pricing strategies, you do not have to use up so much space to provide significant details about the product.
Likewise, if you are selling a commodity that is available in numerous outlets, then you do not have to spend time on writing a long products or services section.
The key to the success of your business is most likely the effectiveness of your marketing strategies compared to your competitors. Use more space to address that section.
If you are creating a new product or service that the market does not know about, your products or services section can be lengthy. The reason why is because you need to explain everything about the product or service such as the nature of the product, its use case, and values.
A short products or services section for an innovative product or service will not give the readers enough information to properly evaluate your business.
4. Describe Your Relationships with Vendors or Suppliers
Your business will rely on vendors or suppliers to supply raw materials or the components needed to make your products. In your products and services section, describe your relationships with your vendors and suppliers fully.
Avoid the mistake of relying on only one supplier or vendor. If that supplier or vendor fails to supply or goes out of business, you can easily face supply problems and struggle to meet your demands. Plan to set up multiple vendor or supplier relationships for better business stability.
5. Your Primary Goal Is to Convince Your Readers
The primary goal of your business plan is to convince your readers that your business is viable and to create a guide for your business to follow. It applies to the products and services section.
When drafting this section, think like the reader. See your reader as someone who has no idea about your products and services. You are using the products and services section to provide the needed information to help your reader understand your products and services. As a result, you have to be clear and to the point.
While you want to educate your readers about your products or services, you also do not want to bore them with lots of technical details. Show your products and services and not your fancy choice of words.
Your products and services section should provide the answer to the “what” question for your business. You and your management team may run the business, but it is your products and services that are the lifeblood of the business.
Key Questions to Answer When Writing your Products and Services Section
Answering these questions can help you write your products and services section quickly and in a way that will appeal to your readers.
- Are your products existing on the market or are they still in the development stage?
- What is your timeline for adding new products and services to the market?
- What are the positives that make your products and services different from your competitors?
- Do your products and services have any competitive advantage that your competitors’ products and services do not currently have?
- Do your products or services have any competitive disadvantages that you need to overcome to compete with your competitors? If your answer is yes, state how you plan to overcome them,
- How much does it cost to produce your products or services? How much do you plan to sell it for?
- What is the price for your products and services compared to your competitors? Is pricing an issue?
- What are your operating costs and will it be low enough for you to compete with your competitors and still take home a reasonable profit margin?
- What is your plan for acquiring your products? Are you involved in the production of your products or services?
- Are you the manufacturer and produce all the components you need to create your products? Do you assemble your products by using components supplied by other manufacturers? Do you purchase your products directly from suppliers or wholesalers?
- Do you have a steady supply of products that you need to start your business? (If your business is yet to kick-off)
- How do you plan to distribute your products or services to the market?
You can also hint at the marketing or promotion plans you have for your products or services such as how you plan to build awareness or retain customers. The next section is where you can go fully into details about your business’s marketing and sales plan.
6. Show and Explain Your Marketing and Sales Plan
Providing great products and services is wonderful, but it means nothing if you do not have a marketing and sales plan to inform your customers about them. Your marketing and sales plan is critical to the success of your business.
The sales and marketing section is where you show and offer a detailed explanation of your marketing and sales plan and how you plan to execute it. It covers your pricing plan, proposed advertising and promotion activities, activities and partnerships you need to make your business a success, and the benefits of your products and services.
There are several ways you can approach your marketing and sales strategy. Ideally, your marketing and sales strategy has to fit the unique needs of your business.
In this section, you describe how the plans your business has for attracting and retaining customers, and the exact process for making a sale happen. It is essential to thoroughly describe your complete marketing and sales plans because you are still going to reference this section when you are making financial projections for your business.
Outline Your Business’ Unique Selling Proposition (USP)
![how to write a business plan on selling Unique Selling Proposition (USP)](https://www.founderjar.com/wp-content/uploads/2021/07/Unique-Selling-Proposition-USP.jpg)
The sales and marketing section is where you outline your business’s unique selling proposition (USP). When you are developing your unique selling proposition, think about the strongest reasons why people should buy from you over your competition. That reason(s) is most likely a good fit to serve as your unique selling proposition (USP).
Target Market and Target Audience
Plans on how to get your products or services to your target market and how to get your target audience to buy them go into this section. You also highlight the strengths of your business here, particularly what sets them apart from your competition.
![how to write a business plan on selling Target Market Vs Target Audience](https://www.founderjar.com/wp-content/uploads/2021/07/Target-Market-Vs-Target-Audience.jpg)
Before you start writing your marketing and sales plan, you need to have properly defined your target audience and fleshed out your buyer persona. If you do not first understand the individual you are marketing to, your marketing and sales plan will lack any substance and easily fall.
Creating a Smart Marketing and Sales Plan
Marketing your products and services is an investment that requires you to spend money. Like any other investment, you have to generate a good return on investment (ROI) to justify using that marketing and sales plan. Good marketing and sales plans bring in high sales and profits to your company.
Avoid spending money on unproductive marketing channels. Do your research and find out the best marketing and sales plan that works best for your company.
Your marketing and sales plan can be broken into different parts: your positioning statement, pricing, promotion, packaging, advertising, public relations, content marketing, social media, and strategic alliances.
Your Positioning Statement
Your positioning statement is the first part of your marketing and sales plan. It refers to the way you present your company to your customers.
Are you the premium solution, the low-price solution, or are you the intermediary between the two extremes in the market? What do you offer that your competitors do not that can give you leverage in the market?
Before you start writing your positioning statement, you need to spend some time evaluating the current market conditions. Here are some questions that can help you to evaluate the market
- What are the unique features or benefits that you offer that your competitors lack?
- What are your customers’ primary needs and wants?
- Why should a customer choose you over your competition? How do you plan to differentiate yourself from the competition?
- How does your company’s solution compare with other solutions in the market?
After answering these questions, then you can start writing your positioning statement. Your positioning statement does not have to be in-depth or too long.
All you need to explain with your positioning statement are two focus areas. The first is the position of your company within the competitive landscape. The other focus area is the core value proposition that sets your company apart from other alternatives that your ideal customer might consider.
Here is a simple template you can use to develop a positioning statement.
For [description of target market] who [need of target market], [product or service] [how it meets the need]. Unlike [top competition], it [most essential distinguishing feature].
For example, let’s create the positioning statement for fictional accounting software and QuickBooks alternative , TBooks.
“For small business owners who need accounting services, TBooks is an accounting software that helps small businesses handle their small business bookkeeping basics quickly and easily. Unlike Wave, TBooks gives small businesses access to live sessions with top accountants.”
You can edit this positioning statement sample and fill it with your business details.
After writing your positioning statement, the next step is the pricing of your offerings. The overall positioning strategy you set in your positioning statement will often determine how you price your products or services.
Pricing is a powerful tool that sends a strong message to your customers. Failure to get your pricing strategy right can make or mar your business. If you are targeting a low-income audience, setting a premium price can result in low sales.
You can use pricing to communicate your positioning to your customers. For example, if you are offering a product at a premium price, you are sending a message to your customers that the product belongs to the premium category.
Basic Rules to Follow When Pricing Your Offering
Setting a price for your offering involves more than just putting a price tag on it. Deciding on the right pricing for your offering requires following some basic rules. They include covering your costs, primary and secondary profit center pricing, and matching the market rate.
- Covering Your Costs: The price you set for your products or service should be more than it costs you to produce and deliver them. Every business has the same goal, to make a profit. Depending on the strategy you want to use, there are exceptions to this rule. However, the vast majority of businesses follow this rule.
- Primary and Secondary Profit Center Pricing: When a company sets its price above the cost of production, it is making that product its primary profit center. A company can also decide not to make its initial price its primary profit center by selling below or at even with its production cost. It rather depends on the support product or even maintenance that is associated with the initial purchase to make its profit. The initial price thus became its secondary profit center.
- Matching the Market Rate: A good rule to follow when pricing your products or services is to match your pricing with consumer demand and expectations. If you price your products or services beyond the price your customer perceives as the ideal price range, you may end up with no customers. Pricing your products too low below what your customer perceives as the ideal price range may lead to them undervaluing your offering.
Pricing Strategy
Your pricing strategy influences the price of your offering. There are several pricing strategies available for you to choose from when examining the right pricing strategy for your business. They include cost-plus pricing, market-based pricing, value pricing, and more.
![how to write a business plan on selling Pricing strategy influences the price of offering](https://www.founderjar.com/wp-content/uploads/2021/07/Pricing-strategy-influences-the-price-of-offering.jpg)
- Cost-plus Pricing: This strategy is one of the simplest and oldest pricing strategies. Here you consider the cost of producing a unit of your product and then add a profit to it to arrive at your market price. It is an effective pricing strategy for manufacturers because it helps them cover their initial costs. Another name for the cost-plus pricing strategy is the markup pricing strategy.
- Market-based Pricing: This pricing strategy analyses the market including competitors’ pricing and then sets a price based on what the market is expecting. With this pricing strategy, you can either set your price at the low-end or high-end of the market.
- Value Pricing: This pricing strategy involves setting a price based on the value you are providing to your customer. When adopting a value-based pricing strategy, you have to set a price that your customers are willing to pay. Service-based businesses such as small business insurance providers , luxury goods sellers, and the fashion industry use this pricing strategy.
After carefully sorting out your positioning statement and pricing, the next item to look at is your promotional strategy. Your promotional strategy explains how you plan on communicating with your customers and prospects.
As a business, you must measure all your costs, including the cost of your promotions. You also want to measure how much sales your promotions bring for your business to determine its usefulness. Promotional strategies or programs that do not lead to profit need to be removed.
There are different types of promotional strategies you can adopt for your business, they include advertising, public relations, and content marketing.
Advertising
Your business plan should include your advertising plan which can be found in the marketing and sales plan section. You need to include an overview of your advertising plans such as the areas you plan to spend money on to advertise your business and offers.
Ensure that you make it clear in this section if your business will be advertising online or using the more traditional offline media, or the combination of both online and offline media. You can also include the advertising medium you want to use to raise awareness about your business and offers.
Some common online advertising mediums you can use include social media ads, landing pages, sales pages, SEO, Pay-Per-Click, emails, Google Ads, and others. Some common traditional and offline advertising mediums include word of mouth, radios, direct mail, televisions, flyers, billboards, posters, and others.
A key component of your advertising strategy is how you plan to measure the effectiveness and success of your advertising campaign. There is no point in sticking with an advertising plan or medium that does not produce results for your business in the long run.
Public Relations
A great way to reach your customers is to get the media to cover your business or product. Publicity, especially good ones, should be a part of your marketing and sales plan. In this section, show your plans for getting prominent reviews of your product from reputable publications and sources.
Your business needs that exposure to grow. If public relations is a crucial part of your promotional strategy, provide details about your public relations plan here.
Content Marketing
Content marketing is a popular promotional strategy used by businesses to inform and attract their customers. It is about teaching and educating your prospects on various topics of interest in your niche, it does not just involve informing them about the benefits and features of the products and services you have,
![how to write a business plan on selling The Benefits of Content Marketing](https://www.founderjar.com/wp-content/uploads/2021/07/The-Benefits-of-Content-Marketing.jpg)
Businesses publish content usually for free where they provide useful information, tips, and advice so that their target market can be made aware of the importance of their products and services. Content marketing strategies seek to nurture prospects into buyers over time by simply providing value.
Your company can create a blog where it will be publishing content for its target market. You will need to use the best website builder such as Wix and Squarespace and the best web hosting services such as Bluehost, Hostinger, and other Bluehost alternatives to create a functional blog or website.
If content marketing is a crucial part of your promotional strategy (as it should be), detail your plans under promotions.
Including high-quality images of the packaging of your product in your business plan is a lovely idea. You can add the images of the packaging of that product in the marketing and sales plan section. If you are not selling a product, then you do not need to include any worry about the physical packaging of your product.
When organizing the packaging section of your business plan, you can answer the following questions to make maximum use of this section.
- Is your choice of packaging consistent with your positioning strategy?
- What key value proposition does your packaging communicate? (It should reflect the key value proposition of your business)
- How does your packaging compare to that of your competitors?
Social Media
Your 21st-century business needs to have a good social media presence. Not having one is leaving out opportunities for growth and reaching out to your prospect.
You do not have to join the thousands of social media platforms out there. What you need to do is join the ones that your customers are active on and be active there.
![how to write a business plan on selling Most popular social media platforms](https://www.founderjar.com/wp-content/uploads/2021/07/Most-popular-social-media-platforms.jpg)
Businesses use social media to provide information about their products such as promotions, discounts, the benefits of their products, and content on their blogs.
Social media is also a platform for engaging with your customers and getting feedback about your products or services. Make no mistake, more and more of your prospects are using social media channels to find more information about companies.
You need to consider the social media channels you want to prioritize your business (prioritize the ones your customers are active in) and your branding plans in this section.
![how to write a business plan on selling Choosing the right social media platform](https://www.founderjar.com/wp-content/uploads/2021/07/Choosing-the-right-social-media-platform.jpg)
Strategic Alliances
If your company plans to work closely with other companies as part of your sales and marketing plan, include it in this section. Prove details about those partnerships in your business plan if you have already established them.
Strategic alliances can be beneficial for all parties involved including your company. Working closely with another company in the form of a partnership can provide access to a different target market segment for your company.
The company you are partnering with may also gain access to your target market or simply offer a new product or service (that of your company) to its customers.
Mutually beneficial partnerships can cover the weaknesses of one company with the strength of another. You should consider strategic alliances with companies that sell complimentary products to yours. For example, if you provide printers, you can partner with a company that produces ink since the customers that buy printers from you will also need inks for printing.
Steps Involved in Creating a Marketing and Sales Plan
1. Focus on Your Target Market
Identify who your customers are, the market you want to target. Then determine the best ways to get your products or services to your potential customers.
2. Evaluate Your Competition
One of the goals of having a marketing plan is to distinguish yourself from your competition. You cannot stand out from them without first knowing them in and out.
You can know your competitors by gathering information about their products, pricing, service, and advertising campaigns.
These questions can help you know your competition.
- What makes your competition successful?
- What are their weaknesses?
- What are customers saying about your competition?
3. Consider Your Brand
Customers' perception of your brand has a strong impact on your sales. Your marketing and sales plan should seek to bolster the image of your brand. Before you start marketing your business, think about the message you want to pass across about your business and your products and services.
4. Focus on Benefits
The majority of your customers do not view your product in terms of features, what they want to know is the benefits and solutions your product offers. Think about the problems your product solves and the benefits it delivers, and use it to create the right sales and marketing message.
Your marketing plan should focus on what you want your customer to get instead of what you provide. Identify those benefits in your marketing and sales plan.
5. Focus on Differentiation
Your marketing and sales plan should look for a unique angle they can take that differentiates your business from the competition, even if the products offered are similar. Some good areas of differentiation you can use are your benefits, pricing, and features.
Key Questions to Answer When Writing Your Marketing and Sales Plan
- What is your company’s budget for sales and marketing campaigns?
- What key metrics will you use to determine if your marketing plans are successful?
- What are your alternatives if your initial marketing efforts do not succeed?
- Who are the sales representatives you need to promote your products or services?
- What are the marketing and sales channels you plan to use? How do you plan to get your products in front of your ideal customers?
- Where will you sell your products?
You may want to include samples of marketing materials you plan to use such as print ads, website descriptions, and social media ads. While it is not compulsory to include these samples, it can help you better communicate your marketing and sales plan and objectives.
The purpose of the marketing and sales section is to answer this question “How will you reach your customers?” If you cannot convincingly provide an answer to this question, you need to rework your marketing and sales section.
7. Clearly Show Your Funding Request
If you are writing your business plan to ask for funding from investors or financial institutions, the funding request section is where you will outline your funding requirements. The funding request section should answer the question ‘How much money will your business need in the near future (3 to 5 years)?’
A good funding request section will clearly outline and explain the amount of funding your business needs over the next five years. You need to know the amount of money your business needs to make an accurate funding request.
Also, when writing your funding request, provide details of how the funds will be used over the period. Specify if you want to use the funds to buy raw materials or machinery, pay salaries, pay for advertisements, and cover specific bills such as rent and electricity.
In addition to explaining what you want to use the funds requested for, you need to clearly state the projected return on investment (ROI) . Investors and creditors want to know if your business can generate profit for them if they put funds into it.
Ensure you do not inflate the figures and stay as realistic as possible. Investors and financial institutions you are seeking funds from will do their research before investing money in your business.
If you are not sure of an exact number to request from, you can use some range of numbers as rough estimates. Add a best-case scenario and a work-case scenario to your funding request. Also, include a description of your strategic future financial plans such as selling your business or paying off debts.
Funding Request: Debt or Equity?
When making your funding request, specify the type of funding you want. Do you want debt or equity? Draw out the terms that will be applicable for the funding, and the length of time the funding request will cover.
Case for Equity
If your new business has not yet started generating profits, you are most likely preparing to sell equity in your business to raise capital at the early stage. Equity here refers to ownership. In this case, you are selling a portion of your company to raise capital.
Although this method of raising capital for your business does not put your business in debt, keep in mind that an equity owner may expect to play a key role in company decisions even if he does not hold a major stake in the company.
Most equity sales for startups are usually private transactions . If you are making a funding request by offering equity in exchange for funding, let the investor know that they will be paid a dividend (a share of the company’s profit). Also, let the investor know the process for selling their equity in your business.
Case for Debt
You may decide not to offer equity in exchange for funds, instead, you make a funding request with the promise to pay back the money borrowed at the agreed time frame.
When making a funding request with an agreement to pay back, note that you will have to repay your creditors both the principal amount borrowed and the interest on it. Financial institutions offer this type of funding for businesses.
Large companies combine both equity and debt in their capital structure. When drafting your business plan, decide if you want to offer both or one over the other.
Before you sell equity in exchange for funding in your business, consider if you are willing to accept not being in total control of your business. Also, before you seek loans in your funding request section, ensure that the terms of repayment are favorable.
You should set a clear timeline in your funding request so that potential investors and creditors can know what you are expecting. Some investors and creditors may agree to your funding request and then delay payment for longer than 30 days, meanwhile, your business needs an immediate cash injection to operate efficiently.
Additional Tips for Writing the Funding Request Section of your Business Plan
The funding request section is not necessary for every business, it is only needed by businesses who plan to use their business plan to secure funding.
If you are adding the funding request section to your business plan, provide an itemized summary of how you plan to use the funds requested. Hiring a lawyer, accountant, or other professionals may be necessary for the proper development of this section.
You should also gather and use financial statements that add credibility and support to your funding requests. Ensure that the financial statements you use should include your projected financial data such as projected cash flows, forecast statements, and expenditure budgets.
If you are an existing business, include all historical financial statements such as cash flow statements, balance sheets and income statements .
Provide monthly and quarterly financial statements for a year. If your business has records that date back beyond the one-year mark, add the yearly statements of those years. These documents are for the appendix section of your business plan.
8. Detail Your Financial Plan, Metrics, and Projections
If you used the funding request section in your business plan, supplement it with a financial plan, metrics, and projections. This section paints a picture of the past performance of your business and then goes ahead to make an informed projection about its future.
The goal of this section is to convince readers that your business is going to be a financial success. It outlines your business plan to generate enough profit to repay the loan (with interest if applicable) and to generate a decent return on investment for investors.
If you have an existing business already in operation, use this section to demonstrate stability through finance. This section should include your cash flow statements, balance sheets, and income statements covering the last three to five years. If your business has some acceptable collateral that you can use to acquire loans, list it in the financial plan, metrics, and projection section.
Apart from current financial statements, this section should also contain a prospective financial outlook that spans the next five years. Include forecasted income statements, cash flow statements, balance sheets, and capital expenditure budget.
If your business is new and is not yet generating profit, use clear and realistic projections to show the potentials of your business.
When drafting this section, research industry norms and the performance of comparable businesses. Your financial projections should cover at least five years. State the logic behind your financial projections. Remember you can always make adjustments to this section as the variables change.
The financial plan, metrics, and projection section create a baseline which your business can either exceed or fail to reach. If your business fails to reach your projections in this section, you need to understand why it failed.
Investors and loan managers spend a lot of time going through the financial plan, metrics, and projection section compared to other parts of the business plan. Ensure you spend time creating credible financial analyses for your business in this section.
Many entrepreneurs find this section daunting to write. You do not need a business degree to create a solid financial forecast for your business. Business finances, especially for startups, are not as complicated as they seem. There are several online tools and templates that make writing this section so much easier.
Use Graphs and Charts
The financial plan, metrics, and projection section is a great place to use graphs and charts to tell the financial story of your business. Charts and images make it easier to communicate your finances.
Accuracy in this section is key, ensure you carefully analyze your past financial statements properly before making financial projects.
Address the Risk Factors and Show Realistic Financial Projections
Keep your financial plan, metrics, and projection realistic. It is okay to be optimistic in your financial projection, however, you have to justify it.
You should also address the various risk factors associated with your business in this section. Investors want to know the potential risks involved, show them. You should also show your plans for mitigating those risks.
What You Should In The Financial Plan, Metrics, and Projection Section of Your Business Plan
The financial plan, metrics, and projection section of your business plan should have monthly sales and revenue forecasts for the first year. It should also include annual projections that cover 3 to 5 years.
A three-year projection is a basic requirement to have in your business plan. However, some investors may request a five-year forecast.
Your business plan should include the following financial statements: sales forecast, personnel plan, income statement, income statement, cash flow statement, balance sheet, and an exit strategy.
1. Sales Forecast
Sales forecast refers to your projections about the number of sales your business is going to record over the next few years. It is typically broken into several rows, with each row assigned to a core product or service that your business is offering.
One common mistake people make in their business plan is to break down the sales forecast section into long details. A sales forecast should forecast the high-level details.
For example, if you are forecasting sales for a payroll software provider, you could break down your forecast into target market segments or subscription categories.
![how to write a business plan on selling Benefits of Sales Forecasting](https://www.founderjar.com/wp-content/uploads/2021/07/Benefits-of-Sales-Forecasting.jpg)
Your sales forecast section should also have a corresponding row for each sales row to cover the direct cost or Cost of Goods Sold (COGS). The objective of these rows is to show the expenses that your business incurs in making and delivering your product or service.
Note that your Cost of Goods Sold (COGS) should only cover those direct costs incurred when making your products. Other indirect expenses such as insurance, salaries, payroll tax, and rent should not be included.
For example, the Cost of Goods Sold (COGS) for a restaurant is the cost of ingredients while for a consulting company it will be the cost of paper and other presentation materials.
![how to write a business plan on selling Factors that affect sales forecasting](https://www.founderjar.com/wp-content/uploads/2021/07/Factors-that-affect-sales-forecasting.jpg)
2. Personnel Plan
The personnel plan section is where you provide details about the payment plan for your employees. For a small business, you can easily list every position in your company and how much you plan to pay in the personnel plan.
However, for larger businesses, you have to break the personnel plan into functional groups such as sales and marketing.
The personnel plan will also include the cost of an employee beyond salary, commonly referred to as the employee burden. These costs include insurance, payroll taxes , and other essential costs incurred monthly as a result of having employees on your payroll.
![how to write a business plan on selling True HR Cost Infographic](https://www.founderjar.com/wp-content/uploads/2021/07/True-HR-Cost.jpg)
3. Income Statement
The income statement section shows if your business is making a profit or taking a loss. Another name for the income statement is the profit and loss (P&L). It takes data from your sales forecast and personnel plan and adds other ongoing expenses you incur while running your business.
![how to write a business plan on selling The income statement section](https://www.founderjar.com/wp-content/uploads/2021/07/The-income-statement-section.jpg)
Every business plan should have an income statement. It subtracts your business expenses from its earnings to show if your business is generating profit or incurring losses.
The income statement has the following items: sales, Cost of Goods Sold (COGS), gross margin, operating expenses, total operating expenses, operating income , total expenses, and net profit.
- Sales refer to the revenue your business generates from selling its products or services. Other names for sales are income or revenue.
- Cost of Goods Sold (COGS) refers to the total cost of selling your products. Other names for COGS are direct costs or cost of sales. Manufacturing businesses use the Costs of Goods Manufactured (COGM) .
- Gross Margin is the figure you get when you subtract your COGS from your sales. In your income statement, you can express it as a percentage of total sales (Gross margin / Sales = Gross Margin Percent).
- Operating Expenses refer to all the expenses you incur from running your business. It exempts the COGS because it stands alone as a core part of your income statement. You also have to exclude taxes, depreciation, and amortization. Your operating expenses include salaries, marketing expenses, research and development (R&D) expenses, and other expenses.
- Total Operating Expenses refers to the sum of all your operating expenses including those exemptions named above under operating expenses.
- Operating Income refers to earnings before interest, taxes, depreciation, and amortization. It is simply known as the acronym EBITDA (earnings before interest, taxes, depreciation, and amortization). Calculating your operating income is simple, all you need to do is to subtract your COGS and total operating expenses from your sales.
- Total Expenses refer to the sum of your operating expenses and your business’ interest, taxes, depreciation, and amortization.
- Net profit shows whether your business has made a profit or taken a loss during a given timeframe.
4. Cash Flow Statement
The cash flow statement tracks the money you have in the bank at any given point. It is often confused with the income statement or the profit and loss statement. They are both different types of financial statements. The income statement calculates your profits and losses while the cash flow statement shows you how much you have in the bank.
![how to write a business plan on selling Cash Flow Statement Example](https://www.founderjar.com/wp-content/uploads/2021/07/Cash-Flow-Statement-Example.jpg)
5. Balance Sheet
The balance sheet is a financial statement that provides an overview of the financial health of your business. It contains information about the assets and liabilities of your company, and owner’s or shareholders’ equity.
You can get the net worth of your company by subtracting your company’s liabilities from its assets.
![how to write a business plan on selling Balance sheet Formula](https://www.founderjar.com/wp-content/uploads/2021/07/Balance-sheet-Formula.jpg)
6. Exit Strategy
The exit strategy refers to a probable plan for selling your business either to the public in an IPO or to another company. It is the last thing you include in the financial plan, metrics, and projection section.
You can choose to omit the exit strategy from your business plan if you plan to maintain full ownership of your business and do not plan on seeking angel investment or virtual capitalist (VC) funding.
Investors may want to know what your exit plan is. They invest in your business to get a good return on investment.
Your exit strategy does not have to include long and boring details. Ensure you identify some interested parties who may be interested in buying the company if it becomes a success.
![how to write a business plan on selling Exit Strategy Section of Business Plan Infographic](https://www.founderjar.com/wp-content/uploads/2021/07/Exit-Strategy-Section-of-Business-Plan-Infographic.jpg)
Key Questions to Answer with Your Financial Plan, Metrics, and Projection
Your financial plan, metrics, and projection section helps investors, creditors, or your internal managers to understand what your expenses are, the amount of cash you need, and what it takes to make your company profitable. It also shows what you will be doing with any funding.
You do not need to show actual financial data if you do not have one. Adding forecasts and projections to your financial statements is added proof that your strategy is feasible and shows investors you have planned properly.
Here are some key questions to answer to help you develop this section.
- What is your sales forecast for the next year?
- When will your company achieve a positive cash flow?
- What are the core expenses you need to operate?
- How much money do you need upfront to operate or grow your company?
- How will you use the loans or investments?
9. Add an Appendix to Your Business Plan
Adding an appendix to your business plan is optional. It is a useful place to put any charts, tables, legal notes, definitions, permits, résumés, and other critical information that do not fit into other sections of your business plan.
The appendix section is where you would want to include details of a patent or patent-pending if you have one. You can always add illustrations or images of your products here. It is the last section of your business plan.
When writing your business plan, there are details you cut short or remove to prevent the entire section from becoming too lengthy. There are also details you want to include in the business plan but are not a good fit for any of the previous sections. You can add that additional information to the appendix section.
Businesses also use the appendix section to include supporting documents or other materials specially requested by investors or lenders.
You can include just about any information that supports the assumptions and statements you made in the business plan under the appendix. It is the one place in the business plan where unrelated data and information can coexist amicably.
If your appendix section is lengthy, try organizing it by adding a table of contents at the beginning of the appendix section. It is also advisable to group similar information to make it easier for the reader to access them.
A well-organized appendix section makes it easier to share your information clearly and concisely. Add footnotes throughout the rest of the business plan or make references in the plan to the documents in the appendix.
The appendix section is usually only necessary if you are seeking funding from investors or lenders, or hoping to attract partners.
People reading business plans do not want to spend time going through a heap of backup information, numbers, and charts. Keep these documents or information in the Appendix section in case the reader wants to dig deeper.
Common Items to Include in the Appendix Section of Your Business Plan
The appendix section includes documents that supplement or support the information or claims given in other sections of the business plans. Common items you can include in the appendix section include:
- Additional data about the process of manufacturing or creation
- Additional description of products or services such as product schematics
- Additional financial documents or projections
- Articles of incorporation and status
- Backup for market research or competitive analysis
- Bank statements
- Business registries
- Client testimonials (if your business is already running)
- Copies of insurances
- Credit histories (personal or/and business)
- Deeds and permits
- Equipment leases
- Examples of marketing and advertising collateral
- Industry associations and memberships
- Images of product
- Intellectual property
- Key customer contracts
- Legal documents and other contracts
- Letters of reference
- Links to references
- Market research data
- Organizational charts
- Photographs of potential facilities
- Professional licenses pertaining to your legal structure or type of business
- Purchase orders
- Resumes of the founder(s) and key managers
- State and federal identification numbers or codes
- Trademarks or patents’ registrations
Avoid using the appendix section as a place to dump any document or information you feel like adding. Only add documents or information that you support or increase the credibility of your business plan.
Tips and Strategies for Writing a Convincing Business Plan
To achieve a perfect business plan, you need to consider some key tips and strategies. These tips will raise the efficiency of your business plan above average.
1. Know Your Audience
When writing a business plan, you need to know your audience . Business owners write business plans for different reasons. Your business plan has to be specific. For example, you can write business plans to potential investors, banks, and even fellow board members of the company.
The audience you are writing to determines the structure of the business plan. As a business owner, you have to know your audience. Not everyone will be your audience. Knowing your audience will help you to narrow the scope of your business plan.
Consider what your audience wants to see in your projects, the likely questions they might ask, and what interests them.
- A business plan used to address a company's board members will center on its employment schemes, internal affairs, projects, stakeholders, etc.
- A business plan for financial institutions will talk about the size of your market and the chances for you to pay back any loans you demand.
- A business plan for investors will show proof that you can return the investment capital within a specific time. In addition, it discusses your financial projections, tractions, and market size.
2. Get Inspiration from People
Writing a business plan from scratch as an entrepreneur can be daunting. That is why you need the right inspiration to push you to write one. You can gain inspiration from the successful business plans of other businesses. Look at their business plans, the style they use, the structure of the project, etc.
To make your business plan easier to create, search companies related to your business to get an exact copy of what you need to create an effective business plan. You can also make references while citing examples in your business plans.
When drafting your business plan, get as much help from others as you possibly can. By getting inspiration from people, you can create something better than what they have.
3. Avoid Being Over Optimistic
Many business owners make use of strong adjectives to qualify their content. One of the big mistakes entrepreneurs make when preparing a business plan is promising too much.
The use of superlatives and over-optimistic claims can prepare the audience for more than you can offer. In the end, you disappoint the confidence they have in you.
In most cases, the best option is to be realistic with your claims and statistics. Most of the investors can sense a bit of incompetency from the overuse of superlatives. As a new entrepreneur, do not be tempted to over-promise to get the interests of investors.
The concept of entrepreneurship centers on risks, nothing is certain when you make future analyses. What separates the best is the ability to do careful research and work towards achieving that, not promising more than you can achieve.
To make an excellent first impression as an entrepreneur, replace superlatives with compelling data-driven content. In this way, you are more specific than someone promising a huge ROI from an investment.
4. Keep it Simple and Short
When writing business plans, ensure you keep them simple throughout. Irrespective of the purpose of the business plan, your goal is to convince the audience.
One way to achieve this goal is to make them understand your proposal. Therefore, it would be best if you avoid the use of complex grammar to express yourself. It would be a huge turn-off if the people you want to convince are not familiar with your use of words.
Another thing to note is the length of your business plan. It would be best if you made it as brief as possible.
You hardly see investors or agencies that read through an extremely long document. In that case, if your first few pages can’t convince them, then you have lost it. The more pages you write, the higher the chances of you derailing from the essential contents.
To ensure your business plan has a high conversion rate, you need to dispose of every unnecessary information. For example, if you have a strategy that you are not sure of, it would be best to leave it out of the plan.
5. Make an Outline and Follow Through
A perfect business plan must have touched every part needed to convince the audience. Business owners get easily tempted to concentrate more on their products than on other sections. Doing this can be detrimental to the efficiency of the business plan.
For example, imagine you talking about a product but omitting or providing very little information about the target audience. You will leave your clients confused.
To ensure that your business plan communicates your full business model to readers, you have to input all the necessary information in it. One of the best ways to achieve this is to design a structure and stick to it.
This structure is what guides you throughout the writing. To make your work easier, you can assign an estimated word count or page limit to every section to avoid making it too bulky for easy reading. As a guide, the necessary things your business plan must contain are:
- Table of contents
- Introduction
- Product or service description
- Target audience
- Market size
- Competition analysis
- Financial projections
Some specific businesses can include some other essential sections, but these are the key sections that must be in every business plan.
6. Ask a Professional to Proofread
When writing a business plan, you must tie all loose ends to get a perfect result. When you are done with writing, call a professional to go through the document for you. You are bound to make mistakes, and the way to correct them is to get external help.
You should get a professional in your field who can relate to every section of your business plan. It would be easier for the professional to notice the inner flaws in the document than an editor with no knowledge of your business.
In addition to getting a professional to proofread, get an editor to proofread and edit your document. The editor will help you identify grammatical errors, spelling mistakes, and inappropriate writing styles.
Writing a business plan can be daunting, but you can surmount that obstacle and get the best out of it with these tips.
Business Plan Examples and Templates That’ll Save You Tons of Time
1. hubspot's one-page business plan.
![how to write a business plan on selling HubSpot's One Page Business Plan](https://www.founderjar.com/wp-content/uploads/2021/07/HubSpots-One-Page-Business-Plan.jpg)
The one-page business plan template by HubSpot is the perfect guide for businesses of any size, irrespective of their business strategy. Although the template is condensed into a page, your final business plan should not be a page long! The template is designed to ask helpful questions that can help you develop your business plan.
Hubspot’s one-page business plan template is divided into nine fields:
- Business opportunity
- Company description
- Industry analysis
- Target market
- Implementation timeline
- Marketing plan
- Financial summary
- Funding required
2. Bplan’s Free Business Plan Template
![how to write a business plan on selling Bplan’s Free Business Plan Template](https://www.founderjar.com/wp-content/uploads/2021/07/Bplans-Free-Business-Plan-Template.jpg)
Bplans' free business plan template is investor-approved. It is a rich template used by prestigious educational institutions such as Babson College and Princeton University to teach entrepreneurs how to create a business plan.
The template has six sections: the executive summary, opportunity, execution, company, financial plan, and appendix. There is a step-by-step guide for writing every little detail in the business plan. Follow the instructions each step of the way and you will create a business plan that impresses investors or lenders easily.
3. HubSpot's Downloadable Business Plan Template
![how to write a business plan on selling HubSpot's Downloadable Business Plan Template](https://www.founderjar.com/wp-content/uploads/2021/07/HubSpots-Downloadable-Business-Plan-Template.jpg)
HubSpot’s downloadable business plan template is a more comprehensive option compared to the one-page business template by HubSpot. This free and downloadable business plan template is designed for entrepreneurs.
The template is a comprehensive guide and checklist for business owners just starting their businesses. It tells you everything you need to fill in each section of the business plan and how to do it.
There are nine sections in this business plan template: an executive summary, company and business description, product and services line, market analysis, marketing plan, sales plan, legal notes, financial considerations, and appendix.
4. Business Plan by My Own Business Institute
![how to write a business plan on selling The Business Profile](https://www.founderjar.com/wp-content/uploads/2021/07/The-Business-Profile.jpg)
My Own Business Institute (MOBI) which is a part of Santa Clara University's Center for Innovation and Entrepreneurship offers a free business plan template. You can either copy the free business template from the link provided above or download it as a Word document.
The comprehensive template consists of a whopping 15 sections.
- The Business Profile
- The Vision and the People
- Home-Based Business and Freelance Business Opportunities
- Organization
- Licenses and Permits
- Business Insurance
- Communication Tools
- Acquisitions
- Location and Leasing
- Accounting and Cash Flow
- Opening and Marketing
- Managing Employees
- Expanding and Handling Problems
There are lots of helpful tips on how to fill each section in the free business plan template by MOBI.
5. Score's Business Plan Template for Startups
![how to write a business plan on selling Score's Business Plan Template for Startups](https://www.founderjar.com/wp-content/uploads/2021/07/Scores-Business-Plan-Template-for-Startups.jpg)
Score is an American nonprofit organization that helps entrepreneurs build successful companies. This business plan template for startups by Score is available for free download. The business plan template asks a whooping 150 generic questions that help entrepreneurs from different fields to set up the perfect business plan.
The business plan template for startups contains clear instructions and worksheets, all you have to do is answer the questions and fill the worksheets.
There are nine sections in the business plan template: executive summary, company description, products and services, marketing plan, operational plan, management and organization, startup expenses and capitalization, financial plan, and appendices.
The ‘refining the plan’ resource contains instructions that help you modify your business plan to suit your specific needs, industry, and target audience. After you have completed Score’s business plan template, you can work with a SCORE mentor for expert advice in business planning.
6. Minimalist Architecture Business Plan Template by Venngage
![how to write a business plan on selling Minimalist Architecture Business Plan Template by Venngage](https://www.founderjar.com/wp-content/uploads/2021/07/Minimalist-Architecture-Business-Plan-Template-by-Venngage.jpg)
The minimalist architecture business plan template is a simple template by Venngage that you can customize to suit your business needs .
There are five sections in the template: an executive summary, statement of problem, approach and methodology, qualifications, and schedule and benchmark. The business plan template has instructions that guide users on what to fill in each section.
7. Small Business Administration Free Business Plan Template
![how to write a business plan on selling Small Business Administration Free Business Plan Template](https://www.founderjar.com/wp-content/uploads/2021/07/Small-Business-Administration-Free-Business-Plan-Template.jpg)
The Small Business Administration (SBA) offers two free business plan templates, filled with practical real-life examples that you can model to create your business plan. Both free business plan templates are written by fictional business owners: Rebecca who owns a consulting firm, and Andrew who owns a toy company.
There are five sections in the two SBA’s free business plan templates.
- Executive Summary
- Company Description
- Service Line
- Marketing and Sales
8. The $100 Startup's One-Page Business Plan
![how to write a business plan on selling The $100 Startup's One Page Business Plan](https://www.founderjar.com/wp-content/uploads/2021/07/The-100-Startups-One-Page-Business-Plan.jpg)
The one-page business plan by the $100 startup is a simple business plan template for entrepreneurs who do not want to create a long and complicated plan . You can include more details in the appendices for funders who want more information beyond what you can put in the one-page business plan.
There are five sections in the one-page business plan such as overview, ka-ching, hustling, success, and obstacles or challenges or open questions. You can answer all the questions using one or two sentences.
9. PandaDoc’s Free Business Plan Template
![how to write a business plan on selling PandaDoc’s Free Business Plan Template](https://www.founderjar.com/wp-content/uploads/2021/07/PandaDocs-Free-Business-Plan-Template.jpg)
The free business plan template by PandaDoc is a comprehensive 15-page document that describes the information you should include in every section.
There are 11 sections in PandaDoc’s free business plan template.
- Executive summary
- Business description
- Products and services
- Operations plan
- Management organization
- Financial plan
- Conclusion / Call to action
- Confidentiality statement
You have to sign up for its 14-day free trial to access the template. You will find different business plan templates on PandaDoc once you sign up (including templates for general businesses and specific businesses such as bakeries, startups, restaurants, salons, hotels, and coffee shops)
PandaDoc allows you to customize its business plan templates to fit the needs of your business. After editing the template, you can send it to interested parties and track opens and views through PandaDoc.
10. Invoiceberry Templates for Word, Open Office, Excel, or PPT
![how to write a business plan on selling Invoiceberry Templates Business Concept](https://www.founderjar.com/wp-content/uploads/2021/07/Invoiceberry-Templates-Business-Concept.jpg)
InvoiceBerry is a U.K based online invoicing and tracking platform that offers free business plan templates in .docx, .odt, .xlsx, and .pptx formats for freelancers and small businesses.
Before you can download the free business plan template, it will ask you to give it your email address. After you complete the little task, it will send the download link to your inbox for you to download. It also provides a business plan checklist in .xlsx file format that ensures you add the right information to the business plan.
Alternatives to the Traditional Business Plan
A business plan is very important in mapping out how one expects their business to grow over a set number of years, particularly when they need external investment in their business. However, many investors do not have the time to watch you present your business plan. It is a long and boring read.
Luckily, there are three alternatives to the traditional business plan (the Business Model Canvas, Lean Canvas, and Startup Pitch Deck). These alternatives are less laborious and easier and quicker to present to investors.
Business Model Canvas (BMC)
The business model canvas is a business tool used to present all the important components of setting up a business, such as customers, route to market, value proposition, and finance in a single sheet. It provides a very focused blueprint that defines your business initially which you can later expand on if needed.
![how to write a business plan on selling Business Model Canvas (BMC) Infographic](https://www.founderjar.com/wp-content/uploads/2021/07/Business-Model-Canvas-BMC.jpg)
The sheet is divided mainly into company, industry, and consumer models that are interconnected in how they find problems and proffer solutions.
Segments of the Business Model Canvas
The business model canvas was developed by founder Alexander Osterwalder to answer important business questions. It contains nine segments.
![how to write a business plan on selling Segments of the Business Model Canvas](https://www.founderjar.com/wp-content/uploads/2021/07/Segments-of-the-Business-Model-Canvas.jpg)
- Key Partners: Who will be occupying important executive positions in your business? What do they bring to the table? Will there be a third party involved with the company?
- Key Activities: What important activities will production entail? What activities will be carried out to ensure the smooth running of the company?
- The Product’s Value Propositions: What does your product do? How will it be different from other products?
- Customer Segments: What demography of consumers are you targeting? What are the habits of these consumers? Who are the MVPs of your target consumers?
- Customer Relationships: How will the team support and work with its customer base? How do you intend to build and maintain trust with the customer?
- Key Resources: What type of personnel and tools will be needed? What size of the budget will they need access to?
- Channels: How do you plan to create awareness of your products? How do you intend to transport your product to the customer?
- Cost Structure: What is the estimated cost of production? How much will distribution cost?
- Revenue Streams: For what value are customers willing to pay? How do they prefer to pay for the product? Are there any external revenues attached apart from the main source? How do the revenue streams contribute to the overall revenue?
Lean Canvas
The lean canvas is a problem-oriented alternative to the standard business model canvas. It was proposed by Ash Maurya, creator of Lean Stack as a development of the business model generation. It uses a more problem-focused approach and it majorly targets entrepreneurs and startup businesses.
![how to write a business plan on selling The lean canvas is a problem oriented alternative to the standard business model canvas](https://www.founderjar.com/wp-content/uploads/2021/07/The-lean-canvas-is-a-problem-oriented-alternative-to-the-standard-business-model-canvas.jpg)
Lean Canvas uses the same 9 blocks concept as the business model canvas, however, they have been modified slightly to suit the needs and purpose of a small startup. The key partners, key activities, customer relationships, and key resources are replaced by new segments which are:
- Problem: Simple and straightforward number of problems you have identified, ideally three.
- Solution: The solutions to each problem.
- Unfair Advantage: Something you possess that can't be easily bought or replicated.
- Key Metrics: Important numbers that will tell how your business is doing.
Startup Pitch Deck
While the business model canvas compresses into a factual sheet, startup pitch decks expand flamboyantly.
Pitch decks, through slides, convey your business plan, often through graphs and images used to emphasize estimations and observations in your presentation. Entrepreneurs often use pitch decks to fully convince their target audience of their plans before discussing funding arrangements.
![how to write a business plan on selling Startup Pitch Deck Presentation](https://www.founderjar.com/wp-content/uploads/2021/07/Startup-Pitch-Deck-Presentation.jpg)
Considering the likelihood of it being used in a small time frame, a good startup pitch deck should ideally contain 20 slides or less to have enough time to answer questions from the audience.
Unlike the standard and lean business model canvases, a pitch deck doesn't have a set template on how to present your business plan but there are still important components to it. These components often mirror those of the business model canvas except that they are in slide form and contain more details.
![how to write a business plan on selling Airbnb Pitch Deck](https://www.founderjar.com/wp-content/uploads/2021/07/Airbnb-Pitch-Deck.jpg)
Using Airbnb (one of the most successful start-ups in recent history) for reference, the important components of a good slide are listed below.
- Cover/Introduction Slide: Here, you should include your company's name and mission statement. Your mission statement should be a very catchy tagline. Also, include personal information and contact details to provide an easy link for potential investors.
- Problem Slide: This slide requires you to create a connection with the audience or the investor that you are pitching. For example in their pitch, Airbnb summarized the most important problems it would solve in three brief points – pricing of hotels, disconnection from city culture, and connection problems for local bookings.
- Solution Slide: This slide includes your core value proposition. List simple and direct solutions to the problems you have mentioned
- Customer Analysis: Here you will provide information on the customers you will be offering your service to. The identity of your customers plays an important part in fundraising as well as the long-run viability of the business.
- Market Validation: Use competitive analysis to show numbers that prove the presence of a market for your product, industry behavior in the present and the long run, as well as the percentage of the market you aim to attract. It shows that you understand your competitors and customers and convinces investors of the opportunities presented in the market.
- Business Model: Your business model is the hook of your presentation. It may vary in complexity but it should generally include a pricing system informed by your market analysis. The goal of the slide is to confirm your business model is easy to implement.
- Marketing Strategy: This slide should summarize a few customer acquisition methods that you plan to use to grow the business.
- Competitive Advantage: What this slide will do is provide information on what will set you apart and make you a more attractive option to customers. It could be the possession of technology that is not widely known in the market.
- Team Slide: Here you will give a brief description of your team. Include your key management personnel here and their specific roles in the company. Include their educational background, job history, and skillsets. Also, talk about their accomplishments in their careers so far to build investors' confidence in members of your team.
- Traction Slide: This validates the company’s business model by showing growth through early sales and support. The slide aims to reduce any lingering fears in potential investors by showing realistic periodic milestones and profit margins. It can include current sales, growth, valuable customers, pre-orders, or data from surveys outlining current consumer interest.
- Funding Slide: This slide is popularly referred to as ‘the ask'. Here you will include important details like how much is needed to get your business off the ground and how the funding will be spent to help the company reach its goals.
- Appendix Slides: Your pitch deck appendix should always be included alongside a standard pitch presentation. It consists of additional slides you could not show in the pitch deck but you need to complement your presentation.
It is important to support your calculations with pictorial renditions. Infographics, such as pie charts or bar graphs, will be more effective in presenting the information than just listing numbers. For example, a six-month graph that shows rising profit margins will easily look more impressive than merely writing it.
Lastly, since a pitch deck is primarily used to secure meetings and you may be sharing your pitch with several investors, it is advisable to keep a separate public version that doesn't include financials. Only disclose the one with projections once you have secured a link with an investor.
Advantages of the Business Model Canvas, Lean Canvas, and Startup Pitch Deck over the Traditional Business Plan
- Time-Saving: Writing a detailed traditional business plan could take weeks or months. On the other hand, all three alternatives can be done in a few days or even one night of brainstorming if you have a comprehensive understanding of your business.
- Easier to Understand: Since the information presented is almost entirely factual, it puts focus on what is most important in running the business. They cut away the excess pages of fillers in a traditional business plan and allow investors to see what is driving the business and what is getting in the way.
- Easy to Update: Businesses typically present their business plans to many potential investors before they secure funding. What this means is that you may regularly have to amend your presentation to update statistics or adjust to audience-specific needs. For a traditional business plan, this could mean rewriting a whole section of your plan. For the three alternatives, updating is much easier because they are not voluminous.
- Guide for a More In-depth Business Plan: All three alternatives have the added benefit of being able to double as a sketch of your business plan if the need to create one arises in the future.
Business Plan FAQ
Business plans are important for any entrepreneur who is looking for a framework to run their company over some time or seeking external support. Although they are essential for new businesses, every company should ideally have a business plan to track their growth from time to time. They can be used by startups seeking investments or loans to convey their business ideas or an employee to convince his boss of the feasibility of starting a new project. They can also be used by companies seeking to recruit high-profile employee targets into key positions or trying to secure partnerships with other firms.
Business plans often vary depending on your target audience, the scope, and the goals for the plan. Startup plans are the most common among the different types of business plans. A start-up plan is used by a new business to present all the necessary information to help get the business up and running. They are usually used by entrepreneurs who are seeking funding from investors or bank loans. The established company alternative to a start-up plan is a feasibility plan. A feasibility plan is often used by an established company looking for new business opportunities. They are used to show the upsides of creating a new product for a consumer base. Because the audience is usually company people, it requires less company analysis. The third type of business plan is the lean business plan. A lean business plan is a brief, straight-to-the-point breakdown of your ideas and analysis for your business. It does not contain details of your proposal and can be written on one page. Finally, you have the what-if plan. As it implies, a what-if plan is a preparation for the worst-case scenario. You must always be prepared for the possibility of your original plan being rejected. A good what-if plan will serve as a good plan B to the original.
A good business plan has 10 key components. They include an executive plan, product analysis, desired customer base, company analysis, industry analysis, marketing strategy, sales strategy, financial projection, funding, and appendix. Executive Plan Your business should begin with your executive plan. An executive plan will provide early insight into what you are planning to achieve with your business. It should include your mission statement and highlight some of the important points which you will explain later. Product Analysis The next component of your business plan is your product analysis. A key part of this section is explaining the type of item or service you are going to offer as well as the market problems your product will solve. Desired Consumer Base Your product analysis should be supplemented with a detailed breakdown of your desired consumer base. Investors are always interested in knowing the economic power of your market as well as potential MVP customers. Company Analysis The next component of your business plan is your company analysis. Here, you explain how you want to run your business. It will include your operational strategy, an insight into the workforce needed to keep the company running, and important executive positions. It will also provide a calculation of expected operational costs. Industry Analysis A good business plan should also contain well laid out industry analysis. It is important to convince potential investors you know the companies you will be competing with, as well as your plans to gain an edge on the competition. Marketing Strategy Your business plan should also include your marketing strategy. This is how you intend to spread awareness of your product. It should include a detailed explanation of the company brand as well as your advertising methods. Sales Strategy Your sales strategy comes after the market strategy. Here you give an overview of your company's pricing strategy and how you aim to maximize profits. You can also explain how your prices will adapt to market behaviors. Financial Projection The financial projection is the next component of your business plan. It explains your company's expected running cost and revenue earned during the tenure of the business plan. Financial projection gives a clear idea of how your company will develop in the future. Funding The next component of your business plan is funding. You have to detail how much external investment you need to get your business idea off the ground here. Appendix The last component of your plan is the appendix. This is where you put licenses, graphs, or key information that does not fit in any of the other components.
The business model canvas is a business management tool used to quickly define your business idea and model. It is often used when investors need you to pitch your business idea during a brief window.
A pitch deck is similar to a business model canvas except that it makes use of slides in its presentation. A pitch is not primarily used to secure funding, rather its main purpose is to entice potential investors by selling a very optimistic outlook on the business.
Business plan competitions help you evaluate the strength of your business plan. By participating in business plan competitions, you are improving your experience. The experience provides you with a degree of validation while practicing important skills. The main motivation for entering into the competitions is often to secure funding by finishing in podium positions. There is also the chance that you may catch the eye of a casual observer outside of the competition. These competitions also provide good networking opportunities. You could meet mentors who will take a keen interest in guiding you in your business journey. You also have the opportunity to meet other entrepreneurs whose ideas can complement yours.
Exlore Further
- 12 Key Elements of a Business Plan (Top Components Explained)
- 13 Sources of Business Finance For Companies & Sole Traders
- 5 Common Types of Business Structures (+ Pros & Cons)
- How to Buy a Business in 8 Steps (+ Due Diligence Checklist)
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Martin luenendonk.
Martin loves entrepreneurship and has helped dozens of entrepreneurs by validating the business idea, finding scalable customer acquisition channels, and building a data-driven organization. During his time working in investment banking, tech startups, and industry-leading companies he gained extensive knowledge in using different software tools to optimize business processes.
This insights and his love for researching SaaS products enables him to provide in-depth, fact-based software reviews to enable software buyers make better decisions.
What is Sales Planning? How to Create a Sales Plan
![how to write a business plan on selling Jay Fuchs](https://blog.hubspot.com/hs-fs/hubfs/1666292200070%20(2).jpeg?width=48&height=48&name=1666292200070%20(2).jpeg)
Published: December 06, 2023
Sales planning is a fundamental component of sound selling. After all, you can‘t structure an effective sales effort if you don’t have, well, structure . Everyone — from the top to the bottom of a sales org — benefits from having solid, actionable, thoughtfully organized sales plans in place.
![how to write a business plan on selling how to create a sales plan; Sales team creating a sales plan for the upcoming quarter](https://blog.hubspot.com/hs-fs/hubfs/how-to-create-a-sales-plan-1.jpg?width=595&height=400&name=how-to-create-a-sales-plan-1.jpg)
This kind of planning offers clarity and direction for your sales team — covering everything from the prospects you‘re trying to reach to the goals you’re trying to hit to the insight you're trying to deliver on.
But putting together one of these plans isn‘t always straightforward, so to help you out, I’ve compiled this detailed guide to sales planning — including expert-backed insight and examples — that will ensure your next sales plan is fundamentally sound and effective.
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In this post, we'll cover:
What is a sales plan?
Sales planning process.
- What goes in a sales plan template?
How to Write a Sales Plan
Tips for creating an effective sales plan, sales plan examples, strategic sales plan examples.
A sales plan lays out your objectives, high-level tactics, target audience, and potential obstacles. It's like a traditional business plan but focuses specifically on your sales strategy. A business plan lays out your goals — a sales plan describes exactly how you'll make those happen.
Sales plans often include information about the business's target customers, revenue goals, team structure, and the strategies and resources necessary for achieving its targets.
![how to write a business plan on selling how to write a business plan on selling](https://blog.hubspot.com/hubfs/Editable-Sales-Plan-Template-Cover-2.png)
Free Sales Plan Template
Outline your company's sales strategy in one simple, coherent sales plan.
- Target Market
- Prospecting Strategy
What are the goals of an effective sales plan?
![how to write a business plan on selling how to write a business plan on selling](https://blog.hubspot.com/hubfs/Screenshot%202023-11-20%20at%2012.39.28%20PM.jpg)
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.
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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
![](http://nandemo.space/777/templates/cheerup1/res/banner1.gif)
2. Sample Sales Plan by BestTemplates
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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
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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.
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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.
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How to Write a Business Plan, Step by Step
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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.
![how to write a business plan on selling ZenBusiness](https://www.nerdwallet.com/cdn-cgi/image/quality=85/cdn/software/logos/ZenB.png)
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
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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?
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We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Here are some tips to write a detailed, convincing business plan:
Avoid over-optimism: If you’re applying for a business bank loan or professional investment, someone will be reading your business plan closely. Providing unreasonable sales estimates can hurt your chances of approval.
Proofread: Spelling, punctuation and grammatical errors can jump off the page and turn off lenders and prospective investors. If writing and editing aren't your strong suit, you may want to hire a professional business plan writer, copy editor or proofreader.
Use free resources: SCORE is a nonprofit association that offers a large network of volunteer business mentors and experts who can help you write or edit your business plan. The U.S. Small Business Administration’s Small Business Development Centers , which provide free business consulting and help with business plan development, can also be a resource.
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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
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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.
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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.
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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.
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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?
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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.
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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.
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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!
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How to Write the Products and Services Section of Your Plan
![how to write a business plan on selling An assortment of items and tools. Represents crafting a product or service to solve a problem for customers.](https://web-cdn.bplans.com/bplans/content/uploads/2023/02/03152028/How-to-Write-the-Products-and-Services-Section-of-Your-Plan.png)
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.
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Table of Contents
- What to include
- Optional information
- Why is this section important?
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- 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.
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- 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 .”
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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.
![how to write a business plan on selling Katlyn Swaffer and Maher Youssef explain how their small businesses have been affected by inflation and call on President Biden to address the issue.](https://cf-images.us-east-1.prod.boltdns.net/v1/static/694940094001/a711ab7a-9644-4460-ac41-d2787cfa88ad/df2bc772-efc0-4732-894e-a927da42ab1b/1280x720/match/image.jpg?pubId=854081161001)
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.
![how to write a business plan on selling A bunch of homemade candles](https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2024/05/931/523/homemade-candle.jpg?ve=1&tl=1)
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.
![how to write a business plan on selling Homemade candles on display](https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2024/05/931/523/candles-homemade.jpg?ve=1&tl=1)
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.
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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.
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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.
![how to write a business plan on selling A homemade ginger candle](https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2024/05/931/523/ginger-homemade-candle.jpg?ve=1&tl=1)
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.
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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…
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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:
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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.
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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.
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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
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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
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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.
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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
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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)
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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:
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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:
![how to write a business plan on selling](https://www.thinkific.com/wp-content/webp-express/webp-images/doc-root/wp-content/uploads/2024/05/unnamed-2024-05-27T091101.082-1024x682.png.webp)
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.)
![how to write a business plan on selling](https://www.thinkific.com/wp-content/webp-express/webp-images/doc-root/wp-content/uploads/2024/05/unnamed-2024-05-27T091122.693-1024x682.png.webp)
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:
![how to write a business plan on selling](https://www.thinkific.com/wp-content/webp-express/webp-images/doc-root/wp-content/uploads/2024/05/unnamed-2024-05-27T091147.785-1024x682.png.webp)
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
![how to write a business plan on selling](https://www.thinkific.com/wp-content/webp-express/webp-images/doc-root/wp-content/uploads/2024/05/unnamed-2024-05-27T091205.789-1024x575.png.webp)
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
![how to write a business plan on selling](https://www.thinkific.com/wp-content/webp-express/webp-images/doc-root/wp-content/uploads/2024/05/unnamed-2024-05-27T091227.878-1024x577.png.webp)
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
![how to write a business plan on selling](https://www.thinkific.com/wp-content/webp-express/webp-images/doc-root/wp-content/uploads/2024/05/unnamed-2024-05-27T091317.111-1024x575.png.webp)
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)
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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
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- 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."
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- 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).
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Describe Your Services or Products. The business plan should have a section that explains the services or products that you're offering. This is the part where you can also describe how they fit ...
Here's a comparison of good sales goal setting vs a bad one. Drive $100,000 in sales of product X by Y date using Z tactics. Increase overall sales in each product line. You can organize this information using a template like in this example, especially if you have multiple product lines.
Tips on Writing a Business Plan. 1. Be clear and concise: Keep your language simple and straightforward. Avoid jargon and overly technical terms. A clear and concise business plan is easier for investors and stakeholders to understand and demonstrates your ability to communicate effectively. 2.
Most business plans also include financial forecasts for the future. These set sales goals, budget for expenses, and predict profits and cash flow. A good business plan is much more than just a document that you write once and forget about. It's also a guide that helps you outline and achieve your goals. After completing your plan, you can ...
Many business leaders see their sales plan as an extension of the traditional business plan. The business plan contains strategic and revenue goals across the organization, while the sales plan lays out how to achieve them. The benefits of a sales plan. A successful sales plan will keep all your reps focused on the right activities and ensure ...
1. Create Your Executive Summary. The executive summary is a snapshot of your business or a high-level overview of your business purposes and plans. Although the executive summary is the first section in your business plan, most people write it last. The length of the executive summary is not more than two pages.
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.
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 ...
2. Have a clear goal. When creating a business plan, you'll need to put in more work and deliver a more thorough plan if your goal is to secure funding for your business versus working through a plan for yourself or even your team. 3. Invest time in research.
Learn about the best business plan software. 1. Write an executive summary. This is your elevator pitch. It should include a mission statement, a brief description of the products or services your ...
Step #3: Conduct Your Market Analysis. Step #4: Research Your Competition. Step #5: Outline Your Products or Services. Step #6: Summarize Your Financial Plan. Step #7: Determine Your Marketing Strategy. Step #8: Showcase Your Organizational Chart. 14 Business Plan Templates to Help You Get Started.
Make sure to use the worksheet on our business plan template. How to Write a Business Plan Step 6. Sales and Marketing Plan. The marketing and sales plan is focused on the strategy to bring awareness to your company and guides how you will get the product to the consumer.
Step 7: Financial Analysis and Projections. It doesn't matter if you include a request for funding in your plan, you will want to include a financial analysis here. You'll want to do two things here: Paint a picture of your business's performance in the past and show it will grow in the future.
Start with the figures from last year; track the exponential increase in sales and compare them with your industry's present realities. This should be able to inform the milestones you'll need to set. 3. Select a suitable niche and focus on it. The previous steps have helped set a "bullseye" that you want to hit.
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.
Common items to include are credit histories, resumes, product pictures, letters of reference, licenses, permits, patents, legal documents, and other contracts. Example traditional business plans. Before you write your business plan, read the following example business plans written by fictional business owners.
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 ...
Here's how to take it one step at a time. 1. Connect sales plan data with your CRM. It's important to build your sales plan in customer relationship management (CRM) software. When you have all your sales data in one central place, updated in real-time, real world changes show up as misalignments in the data.
Ecommerce Business Plan Example. Below is an example business plan that we've written for a fictional cookware business. You can see how it breaks down the most important parts of a business - overall business model, competitive advantages, messaging guidelines, target audiences, budgets, key personnel - in a highly summarized, accessible format.
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.
1. Outline realistic goals. One of the first steps in your plan should be creating realistic and definable sales goals. In some cases, an employer or sales manager might determine the goals. However, in some cases, your manager might ask you to present your own sales goals, so you would work together to form an agreement.
3. Work with stakeholders across the organization. A sales plan drives the direction of the entire organization, so it should represent the goals and input of all stakeholders. In addition to sales and finance, customer success, product teams, finance, and marketing should also be included in the process.
A business plan is a written document that defines your business goals and the tactics to achieve those goals. A business plan typically explores the competitive landscape of an industry, analyzes a market and different customer segments within it, describes the products and services, lists business strategies for success, and outlines ...
The average initial cost of opening a store can be anywhere from $48,000 USD to $150,000 USD, and this figure doesn't include an upfront payment of first month's rent or utilities. Having an accurate idea of your initial cost—and, as such, how much funding you need—is one of the key benefits of a thorough boutique business plan.
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 ...
Writing a business proposal that wins clients over is tough work. It gets even tougher when you're competing against multiple vendors for the same contract. According to a recent report by Loopio, teams on average win only 44% of their Request for Proposals (RFPs). Here's the silver lining.
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 ...
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.
The AI microchip maker's share price has risen to be worth more than $3trn (£2.34trn) for the first time. Only Microsoft is a more valuable company listed on a stock exchange, while Apple has ...
Unity Personal: No Runtime Fee, no splash screen. 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.