how to sell your business plan to investors

How to Sell Your Business Idea to Investors

Whether you’re in the early stages of a startup or looking to scale your existing business, the one hurdle many small business owners face is obtaining funding. While entrepreneurs in some industries may have an easier time, typically, it is challenging to sell your business idea to investors.

Convincing someone to invest in your business is not just about showing potential profitability. There’s a whole process involved. You have to sell your vision, team, and ability to execute.

Here’s a step-by-step guide for small business owners interested in selling their business ideas to investors.

Start With a Solid Business Plan

Before you pitch to any investor, it’s essential to have a detailed business plan. This plan should outline:

Your business model
Market research
Competitive analysis
Financial projections
Marketing and sales strategies

A solid business plan demonstrates that you’ve thoroughly researched and planned for your venture and provides investors with a roadmap of how you intend to achieve success.

Know Your Audience

There are different types of investors—angel investors, venture capitalists, private equity brokerages, banks, and even friends and family. Each group has different expectations, risk tolerances, and interests. Research potential investors beforehand to understand:

What industries do they invest in
Their investment criteria
Past investments and their outcomes

Tailor your pitch to resonate with the specific investor’s interests and show them why your business fits their portfolio. Yes, you may need to create several different pitches, but it’s worth the extra effort if you want to sell your business idea to investors.

Craft a Compelling Pitch

Your pitch should be concise, clear, and engaging. Investors see countless pitches, so you need to make yours memorable. Key elements include:

Problem Statement : Clearly articulate the problem your business is solving.
Solution : Describe how your product or service addresses this problem.
Market Size : Highlight the potential of the market and your target audience.
Traction : If you have sales, partnerships, or any proof of concept, showcase it.
Revenue Model : Clearly explain how you intend to make money.
Team : Introduce your team and their credentials. A strong team can sometimes be the most convincing element of a pitch.

Rehearse your pitch multiple times. It should sound natural and confident.

Showcase Your Passion and Vision

Investors are not just investing in a business; they’re investing in you. So you’re not just selling your business idea; you’re selling you. Your passion, commitment, and vision can often be the tipping point in an investment decision. Paint a picture of where you see the business in five, 10, or even 20 years. You need to help potential investors see and believe in your vision.

Be Transparent

Honesty is crucial. If areas of your business need work or face challenges, be upfront about them. Investors appreciate transparency, and it builds trust. Plus, they may offer insights or solutions to the challenges you face.

Anticipate Questions and Objections

You’ll undoubtedly face tough questions. Anticipate these and be prepared with well-researched answers. Common questions include:

What is your customer acquisition cost?
How long until the business is profitable?
Who are your main competitors, and what sets you apart? Be prepared to define your unique selling proposition (USP).
How do you plan to scale?
What’s your marketing plan?
How will the funds be used?

Having ready answers not only shows that you’re prepared but also that you deeply understand all facets of your business.

Present a Clear Plan for the Funds

When asking for an investment, detail how you plan to use the funds. Whether for product development, marketing, hiring, or expansion, investors want to know their money is being used wisely and will help grow the business.

Build a Relationship

Securing an investment usually takes far more than one pitch to seal the deal. Building a relationship with potential investors can significantly boost your chances. Attend networking events, ask for introductions from people you know, and seek out opportunities to meet and engage with potential investors even before you pitch.

Close With a Strong Call to Action

After presenting your pitch, guide your investors on the next steps. Whether it’s a further detailed meeting, introducing them to your team, or offering a product demo, give them a clear path forward.

Negotiate Your Way to Success

Selling a business idea is not like selling your whole company, though some investors may choose to invest in your company. So, you must be prepared to negotiate.

Depending on the type of investor you’re pitching, you may have to give up some equity. Talk to your accountant about the amount of equity you’re comfortable giving up. Of course, you’ll need to know the valuation of your company and the potential return on investment (ROI) of your business idea.

Be flexible when negotiating, but don’t hesitate to walk away from the deal if it doesn’t meet your needs.

After your pitch, send a thank you note or email. Express gratitude for their time, reiterate key points from your pitch, and offer to provide additional information or answer any more questions.

At its core, securing an investment is about trust. By presenting a well-researched plan, showcasing your passion, and building a relationship, you instill confidence in investors that their money is in good hands. Remember, every rejection is a learning opportunity. Gather feedback, refine your pitch, and keep pushing forward. Your dream is worth it, and with persistence and preparation, you can secure the investment your business needs to thrive.

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8 Expert Tips for Pitching to Investors

Published: July 06, 2021

So you have a million-dollar idea. Naturally, you're thrilled and ready to make your bold, big-time vision a reality — that much you're clear on. What's less clear is how, exactly, you're going to get the funding you need to set your plans in motion.

how to sell your business plan to investors

New businesses generally can't kickstart and sustain the momentum they need to thrive solely through elbow grease and power of will — they usually need some serious cash to get things going. So when you're looking to push a bold new idea, business plan, or strategy that needs capital to move forward, you need to have some idea of how to secure it.

That's why any aspiring entrepreneur has to understand how to pitch to investors. Here, we’ll go over some tips, tricks, and tactics that will help you pitch your ideas and business plans confidently and effectively. Let’s take a look!

How to Pitch an Idea to Investors

When you have that light bulb moment, it can be tempting to reach out with a couple of halfway fleshed-out ideas and a dream, but investors are too savvy and practical to bite on that.

They need to know they’ll receive a promising return on their investment — and ideas and dreams aren’t all that compelling when it comes to demonstrating that potential.

That’s why you need to consider these steps before you start pitching.

1. Tailor an Elevator Pitch

Seasoned comedians generally have something known as a “tight 10” rehearsed and ready — it’s a solid, reliable, short set of jokes they can count on to make people laugh. And while there might not be a ton of overlap between business and comedy, new business owners can still take a cue from that strategy.

New and aspiring entrepreneurs should have an intriguing, informative elevator pitch on hand — a 30-or-so second description of the nature of your business, offering, and value proposition, designed to help you earn a second conversation with a potential investor or network connection.

2. Narrow Down Your Target Audience

Preparation is half the battle when it comes to pitching — your efforts can only do so much for you if they’re not tailored to suit the investors on the other end of the table. That's why you need to thoroughly research who you’re going to be talking to.

Take a close look at the other types of businesses they invest in and the degree to which they tend to be involved in those companies' operations. Get a feel for how new they are to investing. And see if you can learn more about their individual personalities.

This step will be much easier with some firms than others. Many investors will have a lot of public information available, but several tend to keep their efforts and preferences closer to the chest. Still, you can’t skimp here — do everything you can to approach your meeting as well-prepared and thoughtfully as possible.

3. Market Research

One of the best ways to prepare an effective pitch is to have your market research done and organized. Being able to demonstrate an ability to compile, analyze, and draw meaningful conclusions from market data shows investors that you’re dedicated, incisive, and trustworthy.

It can make your idea seem sounder. If you can show that market trends are conducive to your offering’s success, you’ll make your pitch significantly more interesting than it would be if it was based on conjecture.

4. Create a Business Plan and Model

If you want investors to take you seriously, you can’t just walk in with an idea and nothing else. Even the most exciting concept means nothing without concrete plans behind it.

At the end of the day, investors are investing to make money — you need to demonstrate that you have the framework and courses of action in place to deliver on that.

You also need to give them an outline of the return they can expect to see on their investments. A sound business plan isn’t impressive if you can’t show accurate, attainable, intriguing results that will stem from it.

5. Prepare a Demo

Whether you’re looking to fund a physical product or digital services, prepare a demo and be sure to work out all the technical issues before appearing in front of investors.

Make sure the product model works as intended and any electronics or batteries are operating and fully charged. For digital products or services, make sure everything is in working order even minutes up to the pitch.

How to Pitch a Business Plan to Investors

Pitching an idea to investors goes hand-in-hand with pitching a business plan to investors, so always come prepared with a business plan when you want to pitch your idea.

1. Make it thorough and thoughtful.

The business plan will include the nuts and bolts of the business — that means providing a picture of what you are selling, the need your offering will fulfill, your target audience, plans for marketing and operations, budget, expected revenue, and any other market research data you collect. You want to be detailed and transparent when presenting your business plan, so investors know you have done the research and are trustworthy.

2. Show the data.

Explain current data and how it applies to your business plan, and be as open as possible. Share how many customers you currently have and how many new ones are coming to you each month or quarter. Discuss exactly how the business plan will generate revenue and how much revenue you expect to see, going forward.

3. Put a pitch deck together.

Once you’ve collected the data, it’s time to organize it in a clear, easy-to-follow pitch deck. Learning how to write a pitch deck is simpler than you might think. After compiling all the data for your business plan, break it down into different segments of the pitch deck, which can be presented easily in a slideshow.

You’ll start by explaining who you are, introducing any team members, and explaining the problem you want to solve with your business. Like an elevator pitch, you’ll share why your business is different from your competitors.

Explain the product or service, and include a pause to implement your product or service demo. Share your target audience, expected revenue model, and your budget. Conclude the pitch deck with contact information, so investors can reconnect later if they are interested.

Prepare to Get Funded

Having a brilliant idea is just the start of making your dream business a reality. Even before your company starts, you have to conduct research and make comprehensive plans if you want to attract investors.

The more research you prepare, the more confident and transparent you can be in your pitch — showing investors you are dedicated to knowing your business inside and out and helping them boost their ROI.

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How to Sell Your Ingenious Business Idea

Learn to craft and deliver a winning pitch to potential investors or partners..

Selling an ingenious business idea to potential partners or investors requires careful planning, preparation, and effective communication. This article outlines crucial steps for entrepreneurs who want to craft and deliver a winning pitch that captivates investors and convinces them to back your innovative venture.

Refine Your Business Idea

Before attempting to sell your idea, ensure it is well-defined, innovative, and addresses a specific problem or need in the market. Conduct thorough market research to identify your target audience, competition, and potential demand. Refine your idea by considering feedback, analyzing market trends, and identifying unique selling points that differentiate your business from others.

Develop a Comprehensive Business Plan

A well-crafted business plan is crucial when selling your idea. It provides potential investors or partners a clear understanding of your vision, market analysis, financial projections, and growth strategy. See How to Write a Business Plan for tips on writing an effective business plan.

Create a Compelling Pitch Deck

A pitch deck is a presentation (slides and oral) that accompanies your business plan and helps you communicate your idea concisely. Create a compelling pitch deck that captures the essence of your business and engages potential investors or partners. Here are some tips:

Start with a strong hook : Begin your pitch with a captivating opening that immediately grabs the investors' attention. This could be a thought-provoking question, a compelling statistic, or an intriguing anecdote. The goal is to make the investors want to listen further.

Clearly articulate the problem : Explain the problem or pain point your business solves. Investors need to understand the market need and the opportunity your business addresses. Clearly demonstrate the magnitude of the problem and its relevance.

Present a unique value proposition : Differentiate your business by highlighting its unique value proposition. Explain why your solution is superior to existing alternatives and how it stands out in the market. Focus on what makes your product or service innovative, disruptive, or game-changing.

Show market potential : Investors want to see the potential for growth and scalability. Provide market research and data demonstrating your target market's size, growth rate, and trends. Highlight the market demand and the addressable market size.

Demonstrate traction and milestones : If you have achieved any significant milestones, such as early customers, partnerships, or revenue, showcase them to instill confidence in your business. Investors want to see that you have made progress and can execute your plans effectively.

Present a clear business model : Clearly explain how your business generates revenue and the pricing structure. Outline your customer acquisition strategy and the key drivers of profitability. Paint a clear picture of the financial viability and potential return on investment.

Showcase a strong team : Investors invest in people as much as they do in ideas. Highlight your team members' expertise and track record, emphasizing their relevant skills and experience. Investors want a capable and committed team to execute the business plan.

Provide a solid growth strategy : Articulate a well-thought-out growth strategy that outlines how to acquire and retain customers, penetrate new markets, and scale your operations. Showcase your competitive advantage and barriers to entry.

Highlight the financials : Present your financial projections, including revenue forecasts, cost structure, and key financial metrics. Be realistic and back your projections with sound assumptions and market research. Demonstrate your understanding of the financial aspects of your business.

Funding Requirements : Clearly state the amount of funding required, how it will be used, and the potential returns for investors.

Tailor Your Message to the Audience

When presenting your idea, it's crucial to adapt your message to the needs and interests of your audience. Research and understand the potential investors or partners you are approaching. Tailor your pitch to their specific industry, interests, and investment criteria. Address their potential concerns and highlight how your business idea aligns with their goals and objectives, and how you can provide a return on their investment. Remember, investors often have limited time, so keep your pitch succinct and to the point.

Practice Makes Perfect

Remember, practice makes perfect. The more you rehearse and refine your pitch, the more confident and persuasive you'll become. In addition, you should:

Anticipate questions : Prepare for potential questions and objections that investors may have. Practice responding confidently and succinctly to address concerns about your business model, market competition, growth strategy, and financial projections.

Seek feedback and iterate : Practice your pitch in front of a trusted audience, such as mentors, advisors, or fellow entrepreneurs. Incorporate their feedback and refine your pitch accordingly. Iterate on your presentation until you feel confident and comfortable delivering it.

Rehearse and time yourself : Practice delivering your pitch multiple times to improve your delivery and timing. Aim to strike a balance between being natural and rehearsed, avoiding sounding scripted or robotic.

Engage the audience : Maintain eye contact, use expressive body language, and vary your tone of voice to keep the investors engaged. Use visual aids sparingly and effectively to enhance your message.

Stay confident and enthusiastic : Believe in your business idea and showcase your passion and enthusiasm. Confidence in yourself and your pitch will inspire confidence in potential investors.

Dress for success : Dressing appropriately for an investor pitch reflects your professionalism and credibility. Ensure your attire is clean, pressed, and wrinkle-free. Pay attention to grooming, including neat hair, trimmed nails, and minimal fragrance. Dress to match the level of formality of the occasion while maintaining your personal style.

Final Thoughts

With thorough preparation and a strong presentation, you'll be well-positioned to capture the interest and support of potential partners or investors. Remember, to also visit DealStream for funding opportunities . We wish you good luck!

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How to Sell Your Idea to Investors

Reethu Ravi

By Reethu Ravi
Published April 26, 2021

Getting the right funding can be the key to turning your startup idea into reality. Here are some tips to nail your pitch to investors.

You may have a great idea. But to turn your idea into reality, you need funds. While there are multiple ways to raise funds, the competition is also high. According to a 2019 report , insufficient funds are the second most commonly cited reason for a startup’s failure.

To raise capital for your startup, you have to know how to pitch your idea so that it piques the interest of potential investors. However, whether you are raising your seed capital or you are experienced at fundraising and seeking venture capital or even secondary VC funds , pitching to investors can be a stressful experience.

How can you prepare a good pitch and deliver your best? Here are some tips that can help you nail your pitch:

1. Do your investor research and find the right investor

Choosing the right investor is one of the most important decisions for a startup founder—an investor can make or break a startup. Your investors will hold stakes in your company – they’ll play a crucial role in directing your startup towards success. Therefore, you should devote as much effort in selecting investors as you put in selecting co-founders or employees, may be even more. Besides, the initial investors you get on-board can be crucial in attracting additional rounds of funding .

Before pitching, find out all you can about the potential investors. Learn about the companies they have invested in before, gauge their understanding of your industry, and know their interests. Make sure the investor you choose has the right skills, understands your product, aligns with your company’s goals, and can add value to your company. You also have to ensure that they have the funds to invest in your startup.

According to Rousseau Kazi, CEO and Founder of collaborative decision-making platform Threads, founders should look for investors who align with their values.

“We’re not only building a product; we’re building a company,” he said . “So it was important that I found someone that I knew was aligned with me, who cared about diversity and inclusion, and who recognized my strengths, but also would push me on my weaknesses.”

2. Build your pitch deck

A pitch deck is a presentation consisting typically of 15-20 slides. It should detail information such as the company overview, the problem you are addressing, the solution your startup is offering, the market size, the team, your competition, competitive advantage, business model, and marketing plan, among others.

A great pitch deck is your means to show that you have more than just an idea to offer. It can go a long way in getting you the financing you need . Keep your deck concise and avoid wordy slides and excessive use of jargon. You can also include graphics and images to make it interesting.

Meanwhile, having a product demo along with your presentation can go a long way in addressing investor’s product-related concerns . It can also help investors to better understand your product’s value and potential.

Furthermore, make sure to tailor your pitch to cater to the investor you are pitching to. Every investor has different interests, priorities, and investment goals. And the same pitch deck is not going to work for all investors.

This is where some of the investor research you carried out will come in handy – understanding your investor’s interests and needs can help you customize your pitch accordingly.

3. Know your numbers and show realistic forecasts

While pitching to investors, it is important to know your numbers. The investors are not going to give you money for your idea; they would want answers to many questions. How much would it cost to make your product? What is your revenue model? What are your future projections? When will the investor get paid back with a premium? How can they exit and when?

The more clearly you can put forth all the relevant data, the better. A clear road map adds credibility to your idea/product and the investor will be more confident to partner with you.

Additionally, ensure that your forecasts are not just bogus numbers. They should be backed by competitor analysis and market data. At the same time, make sure to mention your key assumptions.

4. Tell a compelling story

Once you have a great pitch deck ready with all the sufficient details, you shouldn’t rely on the pitch deck alone to sell your idea. Instead, use the pitch deck and all the facts and figures to tell a compelling and interesting narrative. This can help show your passion for your business as well as keep your investors engaged.

As Jessica Chang, Founder of childcare platform WeeCare, pointed out : “When you want to capture a room of investors, you really only have five minutes. Talk to them directly. Showcase your story and your passion.”

Additionally, it is important to be honest and transparent and present a realistic picture of your startup’s strengths and weaknesses.

“I think that sort of intellectual honesty and humility goes a long way, because nobody expects the founder to be a superhero and say, ‘We’re going to fix everything,’” Manuel Silva Martinez, Head of Investments at Santander InnoVentures, said during a webinar held by Innovate Finance last year. He added that it’s okay to admit there are problems and that you have not figured out everything.

5. Be clear about what you want

Be precise in asking what you are after. You may only want an investment or partnership or both. To ensure that both you and the investor are on the same page, it is important to be clear about the details and be specific with your requests.

Make sure to include details such as the amount of money you are seeking, information about funds previously raised, previous investors, if any, and how long you expect the funds to last.

Asking for a precise amount alone is not sufficient, investors need to know where their money is going. Hence, it is also important to mention what the funds will be utilized for and the milestones you will be able to reach with the amount.

6. Prepare yourself

Before approaching potential investors, make sure to nail down your pitch and prepare well. Practice your pitch multiple times in front of others, even if they are family or friends. This will not only help you to better prepare yourself but also to identify any mistakes in the presentation and make corrections.

Prepare yourself for the follow-up questions after your presentation as well. It is likely that investors will have some tough questions or objections. Go over your pitch from an investor’s perspective and anticipate the questions they may have. Then, prepare yourself to give adequate answers that can clarify the doubts or concerns.

According to Yin Wu, Founder of crypto startup Dirt Protocol, take the feedback from you initial meetings and then improve your pitch accordingly. She also made it a practice to jot down the common questions investors asked and prepared clear answers for the next pitch.

7. Maintain investor relations

Whether you land the funding or not, it is important to stay connected with the investors. You never know how they or their connections can become a resource in the future.

“Every investor that you currently have, whether it’s your cousin who put in a tiny amount when you started or the VC who came in later on – everyone has contacts, and some of those contacts could be prospective investors in your next round,” said Myles Milston, CEO of Globacap, during the Innovate Finance webinar. “Exploiting that contact network can help you increase your runway.”

While pitching to investors is an important milestone for your startup, the key is to do it right. Make sure you choose the right investor, prepare a good pitch desk, and pitch with confidence. However, if an investor rejects your idea, don’t lose hope. Investors like Ycombinator admire persistence – a number of companies apply multiple times before getting accepted.

As Dima Venglinski, Founder of a boutique design and software development company Fireart Studio said : “If you have ideas and want to grow your own company, never give up. Be diligent and patient, and do things as many times as needed to hit success and build a prosperous business.”

Header image by AbsolutVision on Unsplash

Finance, Fundraising & Accelerators , Latest - Home , Startup Toolkit

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How to Pitch Your Business Idea to Startup Investors

Securing funding, whether for a startup or an established business, is not an easy task. A strong startup concept won’t be enough when approaching investors; you’ll also need an exceptional pitch to sell it. Let’s look at what defines a startup pitch, a few different types, and how to create a fantastic one for your startup.

So, what defines a startup pitch? It’s a brief introduction, paper or speech that you provide to a potential investor. It’s used to persuade potential investors to supply funding. It communicates the viability, sustainability and scope of your startup concept.

A startup proposal should be concise, engaging and memorable. Ultimately, it should emphasize the value your products provide. Depending on the audience and/or circumstance, startup pitches can range from lengthy to concise. The key? When it comes to investors, focus on compatibility rather than persuasion. Demonstrate how your vision — and values — are compatible with theirs. Keep this objective in mind as you present. Remember: Investors typically don’t have much time. Adapt your pitch to their availability–and attention span.

The main types of startup pitches are:

Elevator Pitch : A pitch that is completed in the time it takes to ride an elevator. Aim for anywhere between 30 seconds to two minutes. You have only this limited time period to pitch your product, the problem it solves and why it’s worth investing in. Don’t worry about every little detail during an elevator pitch. Your goal? Stimulate the investor’s interest in learning more so you can secure a meeting to discuss it later.

Short Pitch: This pitch is around 5-10 minutes long; it’s the happy medium between an elevator and long pitch. Think of your short pitch as “phase two” after a successful elevator pitch . If an investor shows interest in learning more about your startup , they could potentially invite you to a meeting. This is your opportunity to cover the essentials: your product, business model and so on.

Long Pitch: When your short pitch is a success, but an investor is not fully convinced — and needs that final push — they will request a long pitch. This is very promising, and suggests they’re interested in funding you. An extended pitch is typically 20 minutes long, and gives a broader picture of your startup; not just the essentials, but extra information that completes the investor’s understanding of who you are. Make sure, however, that it covers critical information about your startup: such as financial projections, sales, market share, etc. The long pitch is often your final chance to impress an investor.

The Ideal Pitch Deck Is a Story, a Science and an Art

Selling your startup concept to investors.

One guaranteed road to rejection? Going into an investor meeting without adequate preparation. Successful presentations are orchestrated and rehearsed well in advance. Here are the vital steps to complete before pitching to potential funders:

Research the investors

Many entrepreneurs make the mistake of using the same pitch on every investor. You’re most likely to obtain funding when your proposal resonates with their interests. That’s why it’s crucial to conduct audience research before crafting a pitch. Some questions to ask about your potential investors prior to updating your pitch:

What industries do they typically invest in?
Do their company values align with your own?
How much cash do they typically invest?
What stage startups do they usually invest in?

Build a pitch deck

Before setting up a meeting, you will usually present a pitch deck to potential investors. The goal is to stoke their interest and create an outline of what you’ll discuss. A presentation deck is what you use to showcase your concept in its entirety. It serves as a visual depiction of the topic you’ll be discussing. A good practice is to follow the 10/20/30 rule. The rule is a simple trick for making your presentation more appealing. Your presentation should have a maximum of 10 slides, be under 20 minutes long, and use fonts no smaller than 30 points.

Organize sections

You’ve pitched your concept. Now you’ll need to convey all of the pertinent information surrounding it. The objective: communicate viability, scalability and profitability. Every startup proposal should have the following elements:

A target audience
The market size
A competitive analysis
Plan for marketing, finances, and sales
Product-market fit
An investment amount

Display your values

When investors listen to your pitch, they are more interested in your personality than in your startup idea. To gain an understanding of your actual business culture, investors look for particular attributes in you and your team. Here are a few of the questions they may ask:

Do you work well with your cofounders?
Do you respond well to criticism and feedback?
Are your predictions accurate, or did you exaggerate them to appeal to us?

Tell a story

Humans are more likely to remember stories over facts. Rather than bombarding investors with statistics, make room for storytelling . This provides a different viewpoint for investors–and an opportunity to interact with you. Once you have their attention, use facts, figures and other evidence to give your tale credibility (and exhibit your business skills). In taking a narrative approach, you can fulfill the investor’s emotional and intellectual interests.

Make a road map

Make your startup stand out by presenting a road map of how you foresee the enterprise growing. This will demonstrate a “growth mentality” to investors, who want to see preparation to scale your startup. Express this by outlining the core objectives for the next few years. Describing your organization’s dangers–and how you plan to mitigate them.

Must-Read: 5 Terms That are Killing Your Startup’s Pitch

Tips for putting together a startup proposal:, avoid technical jargon and details.

A startup pitch does not have to be lengthy. Don’t burden potential investors with details they didn’t ask for.

Make accurate projections

Investors are interested in learning how lucrative your startup is–and how you plan to develop it. This is communicated via your financial estimates. Although exact projections are difficult to make, you may still estimate and offer reasonable statistics based on historical data and analysis. Many entrepreneurs underestimate their costs, but experienced investors are quick to recognize them. The bottom line: Be certain you’ve thought of everything.

Use bottom-up forecasting techniques

When estimating future financial success, there is more than one approach to gathering the requisite figures. While the top-down approach is quicker and produces more spectacular data in pitch meetings, investors are fully aware of its limitations. The bottom-up market analysis technique is slower, but produces more definite estimates, which is what investors really want. It generates a generic prediction using particular criteria. It provides a more realistic view of your organization’s future potential.

Practice your pitch

Your presentation is only 20 minutes long. Make the most of it! Practice as much as possible; this will ensure you’re spending your time effectively–and not wandering off the subject.

Bring the necessary documents

If your presentation goes well, investors will usually want supporting documents. Your executive summary, mission statement or even entire business plan may be requested. Make sure you have these documents on hand, just in case.

Accept feedback and refine your pitch

Accept all feedback from investors with a constructive attitude–regardless of harshness. You can also ask for comments voluntarily if time allows. This way, you’ll be better prepared to pitch to future prospects.

If you want to grow your organization, you must acquire the skill of selling your startup concept. Create a pitch that communicates your message effectively. Use the methods and advice above to produce a captivating pitch that will entice investors to make a decision.

How to Take Your Pitch Deck From Good to Great

business pitch
elevator pitch

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How to Present a Business Plan to Potential Investors

Helping ideas to grow into measurable success. InnMind Expert in Metaverse, Crypto, Marketing Growth.

1 Judge the Level of Interest

You need to adeptly match the information you are presenting with the level of interest of the people you are communicating your business plan to.

People who don’t know much about your project won’t have the interest and patience to read a full 30-page document. At the same time, people who are familiar with your project and business and want to make a serious commitment would expect such details.

Regrettably, this means that one document wouldn’t be enough.

It helps to imagine the process as a sales funnel. From least-interested to most-interested, people should receive the following business plan communication:

2 Elevator pitch

You should be able to summarize the whole business in a few sentences to people you’re just meeting. It pays dividends to polish this presentation, as you would have to give it constantly to all kinds of stakeholders in your business. You can also use writing services like Trust My Paper , where experts will help you create a quality business plan early in your career.

3 Pitch Deck

Short pitch deck, lean canvas, or business plan executive summary: the short pitch deck is the industry-standard way to present a startup idea to potentially interested parties. That said, the short pitch deck is great for meetings, but it suffers a bit when you send it by email for people to read, as it is short on text. Because of this, the Lean Canvas and the business plan executive summary could do a better job on such occasions (or even better – you can combine the short pitch deck with one of the other two documents). These documents have the benefit of being succinct but at the same time giving more information than the few-sentence long elevator pitch.

4 Detailed Pitch Deck

An online presentation made especially to send by email. It has the same structure and contains the same information as the short pitch deck, but it is more text-heavy and detailed. It could also be used for 15 to 40 min presentations instead of the standard 5 to 10-minute pitches. Once again, committing 40 minutes to your project suggests your audience is already relatively interested.

5 Business Plan

Finally, the full business plan. It is useful only to people who intend to commit to the project – usually investors, but also partners, co-founders, etc. Keep in mind that even though the business plan is usually used as a tool to attract investors, its main purpose is to give the founding team clarity of the path ahead.

Sell the Core Business Idea Efficiently

Whether you use a business plan or a pitch deck, the central principles of convincing a startup investor of the viability of your project remain the same.

Clarity is paramount . Complexity is usually counter-productive because it risks confusing your audience. Moreover, the more complex the plan, the higher the chance it would go wrong when executed.
Start with the problem you are tackling (make sure it’s a real problem) and the solution you are proposing.
Showcase the (hopefully big) upside of the project by talking about the total addressable market and your possible market penetration.
Give evidence – ideally traction numbers sufficient to convince the audience that the story you are telling is founded in reality.
Showcase the competence of the team – demonstrating deep domain knowledge and ideally, experience is paramount.
Talk about competition and your competitive advantages . Saying there’s no competition is usually a sign of a bad understanding of the space, so do your research diligently.

Finally, finish with the ask. In a business plan, you have more space to explore what you are looking for – investors, partners, etc., and what you need the resources for.

If you cover the points from above to a satisfying degree, then you are off to a great start to convince potential investors and partners.

Structure Your Business Plan Meticulously

Keep in mind that the business plan isn’t necessarily a document that’s meant to be read from A to Z. Usually people would skim-read it, and then they would use it as a reference document every time they need specific information. This means that it needs to be structured logically to allow people to easily find the information they are looking for even before they’ve read the whole document.

The business plan structure is not set in stone, but people expect to find specific pieces of information there, so being too creative with the structure is counter-productive.

A good business plan structure is the following:

Executive Summary : a summary of the whole plan, can be sent as a separate document as discussed above;
Opportunity : talk about the problem, solution, target market, segments, and possibly competition;
Execution : marketing and operations plan; milestones are helpful to illustrate the road ahead; success metrics are also a great idea;
Company Structure : cap table, management team, hiring plan for open/perspective positions;
Finance : financial projections – P&L and ideally net present value projections; needed funding; appendix: anything else, plus pictures and videos supporting the story.

Presenting a business project to investors isn’t as straightforward as one would think, so it pays dividends to invest the needed time to understand what the investor expects to see and to develop the needed documentation that would allow you to build a convincing case.

That said, the pitch deck and the business plan are just a framework – needless to say, the important thing is the content, so make sure you have worthwhile things to say in your business plan.

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How to Pitch Your Business Idea to Potential Investors

These four simple tips can help you find funding for your new business or product.

After you’ve drawn up your business idea and crafted your business plan, you need funding to turn your entrepreneurial dream into a reality. When your ability to secure funds comes down to a 10- to 20-minute pitch to potential investors, it’s easy to feel nervous. It’s a pressure-packed moment, and you need to be at your best.

So how can you erase your anxiety and impress potential investors? Business News Daily spoke with a handful of experts, including a former participant on ABC’s Shark Tank , about how to nail a pitch to potential investors.

How to present a business idea to investors

1. tell a story..

A common topic among experts was the need to be personable and create a narrative. While facts and figures go a long way, it’s important to use those numbers to tell a meaningful story. Framing your business idea as a story also helps you explain your passion for your business.

Erin Beck, the CEO of Komae, a cooperative childcare app, believes storytelling sets her presentations apart from those of her peers. She creates an emotional appeal with an engaging pitch. “Make the story more important than what you’re selling because once the market numbers speak for themselves, they don’t connect with you for what you’re doing, but why you’re doing it,” said Beck.

2. Define the problem.

You might be head over heels about your business concept. Your prototypes for the product are all stellar, and you’re thrilled about your business plan. Unfortunately, if your product doesn’t solve a problem or fill a need for customers, investors aren’t going to share your excitement.

“Start off with the problem,” said Donna Griffit, a corporate storyteller for startups. “Do you understand the need that’s in the market today? Do you have the facts to back that up?”

It is critical that you can answer these questions when heading into a meeting with investors. Thorough market research , along with customer surveys and interviews, can show if your product is needed. If you lack the data to prove that your idea addresses a problem, it’s difficult to engage the audience and even more difficult to get funding from investors.

“I’ve seen startups try to take shortcuts on this and end up with glazed-over eyes in their audience,” Griffit said.

3. Practice as much as you can.

The weeks and days leading up to your pitch to potential investors is no time to be shy. Give your pitch to friends, family, neighbors or anyone else willing to listen. Not only does practicing help take the nerves off, but it also allows you to learn where you can improve your presentation.

“You’ve likely told your origin story dozens of times and have it down,” said David Ciccarelli, the founder and CEO of Voices.com. “Now, get ready to tell it possibly hundreds more. During our capital raise, I told our founding story 200 times. While it’s old news to you, it’s new for the investor, so keep it upbeat and tell it with enthusiasm.”

Don’t hesitate to pitch to multiple potential investors. Ciccarelli went with his team to cities across the country and met with a few investors in each city. This gave his group practice and put his business idea in front of more eyes.

Once you’ve gotten comfortable with your pitch, start focusing on the little details.

“Use the privacy of your home or office to talk through your pitch and work on making it flow well,” Ciccarelli said. “Don’t be afraid to record your pitch, both audio and video, and review it with a critical eye to make sure you nail every sentence.”

Demonstrating proper body language and tightening up speaking mistakes can be the difference between successful and unsuccessful pitches. When you go over the minor details, Ciccarelli recommends planning your pauses. By doing this, you can make a perfectly rehearsed speech sound spontaneous.

“To make your pitch sound more natural, plan your dramatic pauses out,” he said. “The pause gives the impression that you’re coming up with the material on the fly. Plus, you’ll have a moment to collect your thoughts for what you’re going to say next.”

4. Be realistic.

While practicing the pitch is a must, very rarely will your pitch go exactly as planned. Having realistic expectations will help when you’re preparing. It’s important to practice for a realistic presentation experience, which may include interruptions by investors asking questions.

In addition to expecting disruptions, it’s important to view the presentation from the audience’s perspective. Brian Lim, an entrepreneur who owns three e-commerce businesses (EmazingLights, iHeartRaves and INTO THE AM) that collectively earn more than $20 million annually, pitched one of his businesses on Shark Tank in 2015. He received offers from all five judges on the show and made a deal with Mark Cuban and Daymond John. Lim credits his success to proof of concept: He entered the show with $13 million in sales to date, and his ability to view his business from a different vantage point set him apart.

“I had to imagine myself as an investor and check off boxes that I would want to see if I were going to invest money into a company,” Lim said.

Presentation mistakes to avoid

There are also some important things not to do when making a pitch:

Be late for the meeting.
Dress inappropriately. What’s appropriate will depend on your audience and your company/product brand.
Fail to convey clear benefits for your intended target market .
Use terminology, lingo or acronyms your audience may not recognize.
Talk over or interrupt those in your audience.
Be self-congratulatory; e.g., “This is a great idea/product!”
Argue with your potential investors.
Bring up deal details, like pricing, too early.

Move forward with confidence

It takes time and tenacity to make and close a business deal. Following the ideas above about what to do and what not to do can help you ensure that you’re prepared to make the pitch.

While immigrants and women entrepreneurs can face additional challenges , these stories of successful young entrepreneurs can provide inspiration to push onward.

Maintaining your confidence and conveying your belief in your business or product idea, without being arrogant, is key to making a positive impact and getting the funding you want.

Additional reporting by Linda Pophal.

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1. Identify Your Reasons for a Sale

2. Decide on Timing

3. Get a Business Valuation

4. hire a broker.

5. Prepare the Documents

6. Find a Buyer

7. handle the profits, the bottom line.

Small Business

7 Steps To Selling Your Small Business

Selling a small business is a complex venture that involves several considerations. It can require that you enlist a broker, accountant, and/or an attorney as you proceed.

Whether you profit on the venture will depend on the reason for the sale, the timing of the sale, the strength of the business' operation, and its structure.

A business sale will also require much of your time and, once the business is sold, the need to determine some smart ways to handle the profit. The seven considerations below can help you build a solid plan and negotiate a successful transaction.

Key Takeaways

Once you've decided to sell your business, identify why you want to sell and make sure that it's ready to be sold.
Take the time needed to determine the value of your business and consider hiring a business appraiser.
Decide whether you want to hire a business broker or negotiate the deal yourself.
Once you find a good buyer, there are a series of financial screenings and other steps that need to be taken to keep the process moving.
Work with a financial professional to determine how you want to invest or otherwise use the money you make from the sale of your business.

You've decided to sell your business. Why? That's one of the first questions a potential buyer will ask.

Owners commonly sell their businesses for any of the following reasons:

Partnership disputes
Illness or death
Becoming overworked

Some owners consider selling the business when it is not profitable , but this can make it harder to attract buyers. You must consider whether your business can attract buyers, its state of readiness, and your timing.

What Makes Your Business an Attractive Opportunity?

There are various attributes that can make your business attractive to buyers, including:

Increasing profits
Consistent income figures
Appealing profit margins
A strong customer base
A major contract that spans several years

2. Decide on the Timing of the Sale

Timing is everything. And that includes the time it takes to get everything ready to sell your business.

Once you've made the decision to sell, prepare for the sale as early as possible, preferably a year or two ahead of time. The preparation will help you to improve your financial records, business structure, and customer base to make the business more profitable and a transaction more attractive.

These improvements will also ease the transition for the buyer and keep the business running smoothly.

Selling a business involves a lot of legwork, discussions, and negotiations. If it's not possible for all of this to occur in person, use services like Zoom or Skype to hold digital business meetings with potential buyers.

Determine the value of your business to make sure you don't price it too high or too low. You can do this by hiring a business appraiser to provide you with a valuation .

Once you hire an appraiser, they will draw up a detailed explanation of the business' worth. The appraisal document will give credibility to the asking price and can serve as a gauge for your listing price .

You can also determine the overall value of your business using some key metrics. Consider evaluating your company by determining the market capitalization , earnings multipliers, book value, or other metrics.

Selling the business yourself allows you to save money and avoid paying a broker's commission . It's also the common sense route when the sale is to a trusted family member or current employee.

In other circumstances, a broker can help free up time for you to keep the business running, or keep the sale quiet and get the highest price. That's because the broker will want to maximize their commission. Discuss expectations and marketing approaches with the broker and maintain constant communication about their progress (or lack thereof).

Even if you decide to sell your business to a close family member or employee, don't rush the sales process. However, if you need a relatively quick turnaround, hire a business broker to speed up the proceedings and keep things on track.

5. Prepare the Necessary Documents

Gather your financial statements detailing assets, liabilities, and income as well as tax returns dating back three to four years. Review them with an accountant. Dig up any other relevant paperwork such as your current lease. In addition, develop a list of equipment that's being sold with the business. Create a list of contacts related to sales transactions and supplies.

Make copies of these documents to distribute to financially qualified potential buyers.

Operational

Your information packet should also provide a summary describing how the business is conducted, an up-to-date operating manual, and information about roles and employees.

In addition to gathering needed documentation, you'll also want to make sure the business is presentable. Any areas of the business or equipment that are broken or run down should be fixed or replaced before meeting solid prospects or prior to the sale.

A business sale may take anywhere from a few months to years. This includes the time you take to prepare for the sale all the way to the closing, according to SCORE, a nonprofit association for entrepreneurs and partners of the Small Business Administration (SBA) .

Finding the right buyer can be a challenge. Allow for solid, ongoing advertising to attract more potential buyers. Once you have some parties interested in your business, here's how to keep the process moving along:

Have two to three potential buyers in the pipeline just in case the initial deal falters.
Stay in contact with potential buyers.
Find out whether the potential buyer pre-qualifies for financing before giving out information about your business.
If you plan to finance the sale, work out the details with an accountant or lawyer so you can reach an agreement with the buyer.
Allow some room to negotiate, but stand firm on a price that is reasonable and reflects the company's future worth.
Put any and all agreements in writing. Potential buyers should sign a nondisclosure/ confidentiality agreement to protect your information.
Try to get the signed purchase agreement into escrow .

You may encounter the following documents after the sale:

The bill of sale , which transfers the business assets to the buyer
An assignment of a lease
A security agreement , which has a seller retain a lien on the business

A business broker often charges an average of 10% for businesses under $1 million. While that may seem steep, bear in mind that the broker may be able to negotiate a better deal than you can arrange on your own.

Now that you've sold your business, it's time to figure out what to do with the profit that you've made. The first instinct may be to go on a spending spree, but that probably isn't the best decision.

Here are a few things you may want to consider:

Take some time—at least a few months—before spending the profits from the sale.
Create a plan outlining your financial goals; focus on long-term benefits, such as getting out of debt and saving for retirement .
Consult with a tax professional to learn about the tax consequences associated with the sale and sudden wealth.
Speak with a financial professional to determine how you should invest the money so that you can meet your short- and long-term goals.

How Do You Sell a Franchise Business?

You'll need to work in conjunction with your franchiser, as they will need to determine if the new buyer is appropriate. Plus, that new buyer will need to sign a franchise agreement with the franchiser.

There are a variety of fees and rules associated with owning or selling a franchise. These can be found in the FTC's compliance guide .

How Do You Sell a Business Idea?

It's possible to approach a company with a business idea, but first, do your research, prepare a presentation, and find potential targets. While some business plans are best protected with a patent, others can be secured by getting a potential company you want to work with to agree to a non-disclosure agreement.

Can I Sell a Small Business Without a Broker?

Many people would like to avoid the average 10% commission that a business broker may charge. But the expense may be negligible compared to the risks of selling on your own. If you decide to go it alone, prioritize selling to a buyer you know, make use of the advice of experienced, retired owners and executives, and use all the internet resources available, such as those offered by the Small Business Administration, or the National Federation of Independent Business (NFIB) .

How Would I Sell Just My Share of a Business?

Selling your share of a business to your partner(s) is a common ownership transfer method, particularly for small businesses. Have an agreement in place with your partners ahead of the sale to help smooth the transition. This can increase the likelihood that both the remaining and exiting partners benefit.

What Does Selling a Business Cost?

If you go through a business broker and your business is under $1 million, the broker's commission is likely 10% to 12%. Other fees that can crop up include attorney fees, marketing fees, and the costs of making any cosmetic or more substantial upgrades to your business so as to make it more sellable. There are also fees that may come up if you are transferring a lease to the new owner of your business.

Selling a business is time-consuming burden and, for many people, an emotional venture. A solid reason for selling or the existence of a hot market can ease the burden. So can the help of professionals, such as business brokers.

It may also be possible to obtain free counseling from organizations such as SCORE. Your local chamber of commerce may offer relevant seminars and workshops, as well.

When all is said and done, the large sum of money in your bank account and your newfound free time can make the potentially grueling process of selling your business worthwhile.

Small Business Chronicle. " How to Calculate the Selling Price For a Business ."

Berkshire Business Sales & Acquisitions. " What To Look For When Choosing a Business Broker ."

Inc. " What You Should Know About Working With Business Brokers ."

Score. " Selling Your Business ."

Federal Trade Commission. " Franchise Rule Compliance Guide ," Pages i, 24-119.

International Franchise Association. " Royalty Fee Requirement Definitions ," Page 1.

Small Business Chronicle. " How to Sell Ownership in a Partnership ."

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How to sell yourself to investors.

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The following guest post is by Pete Sheinbaum, founder and CEO of LinkSmart , a Boulder, CO, based company that helps web publishers develop and engage their audiences. He most recently served as the CEO of DailyCandy, overseeing its successful sale to Comcast Interactive Media.

Pete Sheinbaum

People from all walks of life start businesses each year. Some spark brilliant concepts, some turn hobbies into enterprises and some stumble onto ideas by accident. Yet, all of these entrepreneurs have one thing in common – the courage to take the first step toward realizing a dream.

So what’s the key factor that propels some toward success and others toward failure? In most instances it’s capital – the fuel to take ideas from prototypes to companies. Securing capital involves several elements, but in my opinion, the ability to sell effectively is critical. As an entrepreneur, you must sell yourself and your idea and convince others to join you on this adventurous journey.

Selling yourself as a company founder means exuding confidence, leadership and a vision. Employees want to believe in something and they will look to you to inspire and reassure. Customers want to buy from a leader and a brand they can trust and respect. Investors want all of that and more.

Throughout the many stages of starting a company, most founders find themselves in uncharted territory. Rather than relying on a sink-or-swim methodology, here are a few self-selling tips for budding entrepreneurs who need the investor community to make their innovation a reality.

Know the Structure of the Initial Pitch

Some nervous energy is good to bring to an initial investor meeting, but unpreparedness is not. Know what’s expected of you and arrive armed and ready.

During this first pitch, prospective investors will be looking for you to succinctly cover three things: 1. The problem you are solving and how you plan to solve it, 2. Why you and your team have the experience or skill to execute on the vision, and, 3. That the market size is large and addressable, and the business model simple and transparent.

Communicate your vision by painting a picture using real examples or tell a story. Describe the use-case – Who will interact with the product? How will it improve their lives? How will it save them or make them money? Storytelling brings your vision to life, helps investors grasp your ideas faster, and makes them remember your company after you’ve left the building.

Structure-wise, initial meetings typically last an hour, with 20 minutes for the ‘pitch’ and the remainder for Q&A. Set the hook in the first five minutes of the pitch. If an investor is interested in learning more, they’ll ask for a summary to share with partners. Be armed with a 15-page slide deck that addresses the key elements of the product, market, how your product or service fits within that market, business model and team. If you’re adjusting fonts to cram more information into your deck, it’s too much.

It goes without saying that you should practice, practice, practice. Try out your pitch on your mentor or a friendly peer, as your executive team is drinking from the same Kool-Aid pitcher.

Research & Homework

Do your homework on who you are pitching, the investments they have made and, if possible, find a personal relationship through mutual friends, school, hobby or geography. Investors not only need to like the idea, but also the people behind the idea, so don’t be all business and neglect the personal aspect of the pitch.

Typically during initial meetings, investors are asking themselves: “Do I like these people? Are they going to be easy (and fun) to work with? Are they creative? Are they smart? Are they confident but humble? Can they overcome adversity? Will they figure it out? Will they find and hire the right people? Have they ever done something like this before?”

Being knowledgeable about the market, space and players (without name dropping) shows your level of preparedness. Also, identifying what is not known but can be figured out is important.

Never Claim to Have Everything Figured Out

I’ve sat through multiple pitches and when potential investors start firing questions, often times the entrepreneur tries to answer them – all of them. Some answers are thoughtful and concrete, while others are simply air supply. Investors know that not every question can or should be answered in the early stages. What they care about is how you take those questions, the questions you may respond with, and your thought process in exploring solutions. Be confident in your replies, but understand that sometimes the best answer is: “That’s a great question. I hadn’t thought about that. Let’s explore that idea further. I will add it to the consideration list.” Humility and honesty are two very important leadership qualities in the eyes of investors. A defensive attitude is not, so resist all urges to get defensive to probing questions.

Build and Sell the ‘A’ Team

Entrepreneurs often focus on their idea and the market opportunity first. They describe how their widget is better and smarter. But in reality, the entrepreneur is being sized up based on character, honesty, intellect and, more importantly, their team and their ability to attract ‘A’ players to their venture. I’ve heard more than a few times that investors will always bet on an ‘A+ Team’ with a ‘B Idea’ over an ‘A+ Idea’ and a ‘B Team,’ and it starts at the top. As such, early conversations should be weighted on who will be executing the idea, their skills and background, and why you will work well together.

The Buck Stops at Execution

In the course of an hour, you have to communicate your (and your team’s) ability to execute. This begins with experience, both in the domain and with tactics. Entrepreneurs love to look to the future, what will be, and could be. Equally as important to them is the past. What have you done? How will those experiences help increase the probability of success? What failures have you experienced that will be avoided and how? Many of the best entrepreneurs I know use their worst failures as effective selling tools as it proves they can learn from their missteps.

Notice that none of my suggestions has to do with your genius idea, pedigree, competitors, customers, the beautification of your presentation or your clothing. Yes, your idea did get you through the door, but getting investors to support a new business idea often hinges on your ability to sell answers to their questions.

My advice to entrepreneurs is this: once you realize your innovative idea and before you approach the investment community, master the art of selling yourself. It can mean the difference between your ultimate success and a series of failed attempts at entrepreneurship.

What other advice would you give to other entrepreneurs approaching their initial investor meeting?

Gallery: Top Predictions For 2014 By VCs

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How to Write a Convincing Business Plan for Investors

Noah Parsons

9 min. read

Updated May 10, 2024

Raising money for your business is a major effort. You need lists of investors to reach out to and you need to be prepared for your investor meetings to increase your chances of getting funded . You need to practice your pitch and be ready to intelligently answer any number of questions about your business. A key to making this entire process much easier is to invest a little time and write a business plan . It’s true — not all investors will ask to see your business plan. But the process of putting together a business plan will ensure that you’ve thought through every aspect of your business and you’re ready to answer any questions that come up during the fundraising process.

Why do investors want to see a business plan?

The business plan document itself isn’t what’s important to investors. It’s the knowledge that you’ve generated by going through the process that’s important. Having a business plan shows that you’ve done the homework of thinking through how your business will work and what goals you’re trying to achieve.

When you put together a business plan, you have to spend time thinking about things like your target market , your sales, and marketing strategy , the problem you solve for your customers, and who your key competitors are . A business plan provides the structure for thinking through these things and documents your answers so you’re prepared for the inevitable questions investors will ask about your business.

Even if investors never ask to see your business plan, the work you’ve done to prepare it will ensure that you can intelligently answer the questions you’ll get. And, if an investor does ask for your business plan, then you’re prepared and ready to hand it over. After all, nothing could be worse than arriving at an investor meeting and then getting a request for a business plan and not having one ready.

Beyond understanding your business strategy, investors will also want to understand your financial forecasts. They want to know how your business will function from a financial standpoint — what is typically called your “ business model .” They’ll also want to know what it will take for your business to be profitable and where you anticipate spending money to grow the business. A complete financial plan is part of any business plan, so investing a little time here will serve you well.

What do investors want to see in a business plan?

There’s no such thing as a perfect business plan and investors know this. After all, they’ve spent years, and often decades, hearing business pitches, reading business plans, investing in companies, and watching them both succeed and fail. As entrepreneur and investor Steve Blank likes to say, “No business plan survives first contact with a customer.”

If this is true, then why bother writing a business plan at all? What’s the value of planning and why do investors want them if they know the plan will shortly be outdated?

The secret is that it’s the planning process, not the final plan, that’s valuable. Investors want to know that you’ve thought about your idea, documented your assumptions, and are on track to validate those assumptions so that you can remove risk from your business.

So what do investors want to see in your business plan? Beyond the typical sections , here are the most important things that investors want to see in your plan.

A vision for the future

Investors, particularly those investing in early-stage startups, want to understand your vision . Where do you see your company going in the future? Who will your customers be and what problems will you solve for them? Your vision may take years to execute — and it’s likely that the vision will change and evolve over time — but investors want to know that you’re thinking beyond tomorrow and into the future.

Product/market fit and traction

Investors want more than just an idea. They want evidence that you are solving a problem for customers. Your customers have to want what you are selling for you to build a successful business and your business plan needs to describe the evidence that you’ve found that proves that you’ll be able to sell your products and services to customers. If you have “traction” in the form of early sales and customers, that’s even better.

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Funding needed and use of funds

When you’re pitching investors, you need to know how much you’re asking for. Your financial forecast should help you figure this out. You’ll want to raise enough money to cover planned expenses and cash flow requirements plus some additional funding as a safety net. In addition, you’ll want to specify exactly how you plan on using your investment . In a business plan, this section is often called “sources and uses of investment.”

A strong management team

A good idea is really only a small part of the equation for a successful business. In fact, lots of people have good business ideas — it’s the people that can execute well that generally succeed. Investors will pay a lot of attention to the section of your plan where you talk about your management team because they want to know that you can transform your idea into a successful business. If you have gaps and still need to hire key employees, that’s OK. Communicating that you understand what your needs are is the most important thing.

An exit strategy

When investors give you money to start and grow your business, they are looking to eventually make a return on their investment. This could happen by eventually selling your business to a larger company or even by going public. One way or another, investors will want to know your thoughts about an eventual exit strategy for your business.

What documents do investors want to see?

Even if investors never ask for a detailed business plan, your business planning process should produce a few key documents that investors will want to see. Here’s what you need to be prepared to pitch investors:

Cover letter

These days, a lot of fundraising outreach is done over email and you’ll need a concise cover letter that sparks investor interest. Your cover letter needs to be very brief, but describe the problem you’re solving for your target market.

Great cover letters are sometimes in a “story” format that hooks readers with a real-world, relatable example of the problems your customers face and how our product or service The goal of the cover letter isn’t to explain every aspect of your business. It’s just to spark interest and get a meeting with an investor where you’ll have more time to actually pitch your business. Keep your cover letter brief, engaging, and to the point.

If you get an investor meeting, you’ll almost certainly need a pitch deck to present your idea in more detail and showcase your business idea. Your pitch deck will cover the problem you’re solving, your solution, your target market, and key market trends.

Further Reading: What to include in your pitch deck

Executive summary and/or one-page plan

You might not get a meeting right away. Your cover letter may generate a request for additional information and this is where a solid executive summary or one-page business plan comes in handy. This document, while still short, is more detailed than your cover letter and explains a bit more about your business in a page or two.

Read more about what goes into a great executive summary and how to build a lone-page business plan.

Financial forecasts

Investors will inevitably want to see your financial forecasts. You’ll need a sales forecast, expense budget , cash flow forecast , profit and loss, and balance sheet . If you have historical results, you should plan on sharing those too as well as any other key metrics about your business. Investors will always look deep under the hood of your business, so be prepared to share all the details of how your business will work from a financial perspective.

What to include in your investor business plan

When you put together a detailed business plan for investors, you’ll follow a fairly standard format. Of course, feel free to customize your plan to fit your business needs. Remember: your business plan isn’t about the plan document that you create — it’s about the planning process that helps you think through and develop your business strategy. Here’s what most investor business plans will include:

Executive Summary

Usually written last, your executive summary is an overview of your business. As I mentioned earlier, you might use the executive summary as a stand-alone document to provide investors more detail about your business in a concise form. Read our guide on executive summaries here .

Opportunity

The opportunity section of your plan covers the problem you are solving, what your solution is, and highlights any data you have to prove that people will spend money on what you’re offering. If you have customer validation in any form, this is where you highlight that information.

Market Analysis

Describe what your target market is and key trends that are occurring in this market . Is the market growing? Are buying patterns changing? How is your business positioned to take advantage of these changes? Be sure to spend some time discussing your competition and how your target market solves their problems today and how your solution is superior.

Marketing & Sales Plan

Most businesses need to figure out how to get the word out and attract customers. Your business plan should include a marketing plan that describes how you’re going to reach your target market and any key marketing initiatives that you’re going to undertake. You should also spend time describing your sales plan, especially if your sales process takes time to close customers.

Milestones / Roadmap

Outline key milestones you hope to achieve and when you plan on achieving them. This section should cover key dates for product development, key partnerships you need to create, and any other important goals you plan on achieving.

Company & Management

Here’s where you describe the nuts and bolts of your business. How is your organization structured? Who is on your team and what are their backgrounds? Are there any important positions that you still need to recruit for?

Financial Plan

As I mentioned, you’ll need to create a profit and loss, cash flow, and balance sheet forecast. Your financial plan should be optimistic, yet realistic. This is a tough balance and your forecast is certain to be wrong, but you need to document your assumptions and plans for the business.

Finally, you can include an appendix for any key additional information you want to share. Product diagrams, additional details on how you deliver your service, or additional research can all be included.

What comes next?

Writing a business plan for investors is really about preparing you to pitch your business . It’s quite likely that you’ll never get asked for the actual business plan document. But, the process will prepare you better than anything else to answer any questions investors may have.

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

Table of Contents

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Cap Table Explained — What is it and How to Maintain it for Investors

30 Questions Angel Investors Will Ask You

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Things to Consider Before Presenting Your Idea to Investors

Ensure you address the issues that concern potential investors – and determine if you're ready.

Did you invent something? Do you have a terrific idea for a new product? You may think it’s time to present your idea to an investor and launch your business.

However, don’t rush the process. Successful investor presentations require exhaustive preparation and organization. You must ensure your idea is fully formed and sound and that you address the specific proposal aspects investors want clarified. For example, you must have a firm grasp on your potential users, target market, competitors and suppliers and be able to express how you see your offering’s short-term and long-term future. You must also understand exactly what type of investor partnership you’re seeking.

We’ll outline crucial considerations to think through before presenting your idea to investors and share telltale signs you’re not quite ready for this step.

What to consider before presenting your idea to investors

Entrepreneurs often focus on finding investors for their businesses and determining the type of investor, such as angel investors or venture capitalists , best suited to their endeavor. However, finding investors is only half the battle.

Consider the following crucial elements you must firmly grasp ― and be able to convey ― before stepping into your investor meeting.

1. Consider your path to market before presenting to investors.

How do you visualize introducing your product or invention to the market? Your path to market can take several forms, including the following:

Licensing and technology transfer

Contract manufacturing
Starting a business

Here’s more about each path to market:

Inventors often opt for licensing deals or technology transfers. They don’t want to sell a product; instead, they want their invention to thrive with outside involvement.

Licensing deals can be complex to understand and execute because there isn’t a direct process or path. When trying to get a product licensed, you must dedicate sufficient time to the following:

Finding the right potential buyers
Researching intellectual property matters
Perfecting a licensing agreement
Consulting professionals for help and guidance.

Technology transfer is another popular path-to-market option; it enables quick monetization and frees inventors to concentrate on new projects.

Contract manufacturing

Product creation can be challenging for inventors and entrepreneurs because accessing specific parts and equipment can be near-impossible. Contract manufacturing can help.

Contract manufacturing firms will produce a specific quantity of your product for a set fee. Contract manufacturing may make sense for startups and solopreneurs who must amass product inventory. It also allows them to entrust the entire creation process to one entity without spending money on manufacturing equipment.

Contract manufacturers vary by industry, so it’s crucial to research the right partner for your invention.

Starting a business

Some inventors want to start a business to sell their products. Setting up a company requires a significant investment of time and money. However, if your product is promising and fulfills the needs of a target audience, it’s worthwhile to seek funding and create a business framework to present to investors.

As an inventor, if you believe in yourself and think you have the expertise and experience necessary to start and run a company, this could be the right approach.

2. Consider your idea’s feasibility before presenting it to investors.

Your idea must translate to a feasible product and investors must be on board with your vision.

Three steps can help you determine product feasibility:

Create a prototype.
Define your target market.
Research the industry.

Create a prototype

When developing a unique product , prototype creation and testing are crucial. A prototype can inform your marketing strategy and licensing approach and help you determine if your idea works. To get started with your prototype, sketch a drawing of how you envision your product’s appearance. Next, create product markups. You can create prototypes from objects around your house or use a third-party manufacturer or 3D printer.

Ask yourself these questions:

Does the prototype work as expected?
Are the product’s components or raw materials affordable and easily accessible?
How easy is the product to produce?
Does it require any specialized equipment or expertise that is expensive or in short supply?
Are there any aspects of it that need to be reworked?
Has this idea been implemented or invented already? If so, what was the outcome?

Define and learn about your target market

Your product is only feasible if it has a market. Before meeting with investors, you should identify your target market and understand them thoroughly, including their demographics and psychographics.

When you know your target audience, conduct beta testing or focus group research to get feedback from likely purchasers and improve your offering. The following questions are helpful:

Do they understand your idea’s features, benefits and value?
Is the product easy to use?
Can they afford your product? Is it a bargain, splurge or somewhere in between?
How much would they be willing to pay for it?
How will they use your product or idea?
How often are they likely to purchase it?
How does it compare to available competitive or substitute products?
Do they envision themselves buying the product when it’s available?
Are there any other features they would like to see included?

Research the industry

Detailed market research will reveal if your idea already exists in the market and help you understand potential sales channels and competitors. Your market research plan should help you project the number of people likely to purchase your invention, determine overall market size and pinpoint what opportunities exist in the industry.

You must know and understand your industry competitors so you can differentiate your product .

Research the competition’s strengths, weaknesses, strategies and price points. This information will help you fine-tune your target market and set the best possible selling price.

3. Consider the quality of your presentation.

Your presentation must be captivating and include the information your investors need. Focus on the following criteria:

A strong value proposition
A high-quality presentation deck
A solid business plan

Strong value proposition

Your value proposition should articulate the problem your product addresses, how it solves it and why people would buy your product instead of a competitor. Your value proposition should address the following:

Who are your customers?
What need does your invention address?
What’s your invention’s name?
What’s the product category?
Why will they buy your product?
What is the current primary alternative to your product?
What’s the primary differentiation?

Business plan

Investors want to see a solid business plan that summarizes your strategies and plans to make the business succeed. The business plan shows that you’re serious about the idea and understand the key performance criteria that impact a business. It should include:

An industry analysis
Evaluation of the market and competition
Product and service offerings
Marketing and sales strategies
A discussion of the founder and executive team’s qualifications
Financial projections (if possible)
Financial requirements

Although a business plan takes time to build, it can be crucial in today’s competitive business climate.

Signs that you’re not ready to pitch investors

Consider the following to gauge if you’re ready to pitch to investors or if you need more time to percolate your idea. Approaching investors when you’re ready will help you get the funds you need and avoid a bad product launch . But meeting with them too soon can derail your dreams.

1. Your idea is not fully formed.

When presenting to investors, you must be able to answer all their questions quickly and confidently. That means that your idea must be extremely well thought out. You must be able to explain its features, benefits, exactly how it works, your production plan and your market analysis.

If there is anything you’re unsure about, you must research that element thoroughly and at least be able to explain details, options, pros and cons.

2. Your team is not complete.

One of a new venture’s biggest selling points is its executive team. Investors want to have confidence that the business’s founder and C-suite executives have the knowledge, experience and drive to make the business successful.

You don’t have to have every employee chosen and vetted. Still, at a minimum, you should have a chief marketing officer, someone with deep technical or operational experience and a vice president of sales to lead your sales team. If you and your co-founders have some of the necessary knowledge and background, you may only need to get one or two additional people on board.

3. You don’t know how to scale your business.

Every investor will want to know your plans for scaling your business. Early investors are taking a big risk by investing in your startup, so they want to feel confident there’s a big payoff coming. For example, they’d rather invest in a restaurant concept that can be franchised nationwide than a single-location local eatery.

To scale your business, you must consider standardizing your processes, using technology to aggregate tasks and lining up suppliers that can handle much larger orders as you grow. You also must consider protecting your intellectual property so copycat businesses don’t crop up.

4. Your product doesn’t have a clear competitive advantage.

If you’re entering a crowded market with a slightly different version of something that’s already there, it will be very challenging to convince customers to switch from their current supplier to buy from you. The difference in your product must be compelling.

If it is just the cost basis, you’re setting yourself up for better-funded competitors to compete on price, which will probably end badly for you. Marketing alone is also not a strong differentiator because your marketing strategy can be easily copied.

5. You haven’t done any market research.

Market research is a critical part of your path to market and feasibility preparatory steps. Customer and competitive research is crucial to discover if there will be a demand for your product in the first place. Market research will help you determine what other trends or forces will impact your demand and the supply of talent or raw materials. By doing exhaustive research, you will know what you can expect once you enter the market and you can communicate this to investors, giving you a better chance of getting a “yes” when you ask for an investment.

6. You haven’t run the numbers.

Investors are interested in ideas, but their real interest is in the bottom line. Is this investment likely to make money for them or waste it? How long will it take to give them a profit and allow them an exit? How vulnerable is the company to changes that will affect its profit margin? Will they invest now only to be asked for more money down the road when the company runs into a cash flow problem ?

All of these questions and more can be answered in pro forma financial statements, including:

A pro forma income statement with sales projections and estimated expenses
A pro forma balance sheet where they can see the company’s projected assets and liabilities
A pro forma cash flow projection that will show how much investment is needed and when

7. Your presentation isn’t tight.

A single investor presentation could secure the cash you need to grow your venture, so doing everything in your power to get it right is critical. Ensure your presentation deck is attractive, easy to read and compelling. If creating slide decks is not your strong suit, consider hiring a freelancer to do it for you.

Each slide should follow the 5/5/5 rule:

No more than five words per line of text
No more than five lines of text per slide
No more than five text-heavy slides in a row

The vast majority of the information conveyed should be verbal. The slide deck is best used to present graphs, numbers and images, with text that reinforces your primary ideas. Because most of the information will be spoken, you will need to rehearse your presentation until you can give it flawlessly.

Additionally, you must be prepared to answer investor questions. Your preparatory research and business plan should provide your foundation, but it’s a good idea to review all the information to refresh your memory. Having answers readily available will show investors that you are professional, knowledgeable and thorough.

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Small Business Trends

How to create a business plan: examples & free template.

This guide has been designed to help you create a winning plan that stands out in the ever-evolving marketplace. U sing real-world examples and a free downloadable template, it will walk you through each step of the process.

Table of Contents

How to Write a Business Plan

Executive summary.

The Executive Summary serves as the gateway to your business plan, offering a snapshot of your venture’s core aspects. This section should captivate and inform, succinctly summarizing the essence of your plan.

Example: EcoTech is a technology company specializing in eco-friendly and sustainable products designed to reduce energy consumption and minimize waste. Our mission is to create innovative solutions that contribute to a cleaner, greener environment.

Overview and Business Objectives

This part of the plan demonstrates to investors and stakeholders your vision for growth and the practical steps you’ll take to get there.

Company Description

Include information about the company’s founders, their expertise, and why they are suited to lead the business to success. This section should paint a vivid picture of your business, its values, and its place in the industry.

Define Your Target Market

Example: Our target market comprises environmentally conscious consumers and businesses looking for innovative solutions to reduce their carbon footprint. Our ideal customers are those who prioritize sustainability and are willing to invest in eco-friendly products.

Market Analysis

Our research indicates a gap in the market for high-quality, innovative eco-friendly technology products that cater to both individual and business clients.

SWOT Analysis

Competitive analysis.

In this section, you’ll analyze your competitors in-depth, examining their products, services, market positioning, and pricing strategies. Understanding your competition allows you to identify gaps in the market and tailor your offerings to outperform them.

Organization and Management Team

Example: EcoTech’s organizational structure comprises the following key roles: CEO, CTO, CFO, Sales Director, Marketing Director, and R&D Manager. Our management team has extensive experience in technology, sustainability, and business development, ensuring that we are well-equipped to execute our business plan successfully.

Products and Services Offered

Marketing and sales strategy.

Describe the nature of your advertising campaigns and promotional activities, explaining how they will capture the attention of your target audience and convey the value of your products or services. Outline your sales strategy, including your sales process, team structure, and sales targets.

Logistics and Operations Plan

Inventory control is another crucial aspect, where you explain strategies for inventory management to ensure efficiency and reduce wastage. The section should also describe your production processes, emphasizing scalability and adaptability to meet changing market demands.

Financial Projections Plan

In the Financial Projections Plan, lay out a clear and realistic financial future for your business. This should include detailed projections for revenue, costs, and profitability over the next three to five years.

Income Statement

The income statement , also known as the profit and loss statement, provides a summary of your company’s revenues and expenses over a specified period. It helps you track your business’s financial performance and identify trends, ensuring you stay on track to achieve your financial goals.

Cash Flow Statement

Section	Description	Example
Executive Summary	Brief overview of the business plan	Overview of EcoTech and its mission
Overview & Objectives	Outline of company's goals and strategies	Market leadership in sustainable technology
Company Description	Detailed explanation of the company and its unique selling proposition	EcoTech's history, mission, and vision
Target Market	Description of ideal customers and their needs	Environmentally conscious consumers and businesses
Market Analysis	Examination of industry trends, customer needs, and competitors	Trends in eco-friendly technology market
SWOT Analysis	Evaluation of Strengths, Weaknesses, Opportunities, and Threats	Strengths and weaknesses of EcoTech
Competitive Analysis	In-depth analysis of competitors and their strategies	Analysis of GreenTech and EarthSolutions
Organization & Management	Overview of the company's structure and management team	Key roles and team members at EcoTech
Products & Services	Description of offerings and their unique features	Energy-efficient lighting solutions, solar chargers
Marketing & Sales	Outline of marketing channels and sales strategies	Digital advertising, content marketing, influencer partnerships
Logistics & Operations	Details about daily operations, supply chain, inventory, and quality control	Partnerships with manufacturers, quality control
Financial Projections	Forecast of revenue, expenses, and profit for the next 3-5 years	Projected growth in revenue and net profit
Income Statement	Summary of company's revenues and expenses over a specified period	Revenue, Cost of Goods Sold, Gross Profit, Net Income
Cash Flow Statement	Overview of cash inflows and outflows within the business	Net Cash from Operating Activities, Investing Activities, Financing Activities

Tips on Writing a Business Plan

3. Set realistic goals: Your business plan should outline achievable objectives that are specific, measurable, attainable, relevant, and time-bound (SMART). Setting realistic goals demonstrates your understanding of the market and increases the likelihood of success.

FREE Business Plan Template

To help you get started on your business plan, we have created a template that includes all the essential components discussed in the “How to Write a Business Plan” section. This easy-to-use template will guide you through each step of the process, ensuring you don’t miss any critical details.

What is a Business Plan?

Why you should write a business plan, what are the different types of business plans.

In today’s fast-paced business world, having a well-structured roadmap is more important than ever. A traditional business plan provides a comprehensive overview of your company’s goals and strategies, helping you make informed decisions and achieve long-term success. There are various types of business plans, each designed to suit different needs and purposes. Let’s explore the main types:

Type of Business Plan	Purpose	Key Components	Target Audience
Startup Business Plan	Outlines the company's mission, objectives, target market, competition, marketing strategies, and financial projections.	Mission Statement, Company Description, Market Analysis, Competitive Analysis, Organizational Structure, Marketing and Sales Strategy, Financial Projections.	Entrepreneurs, Investors
Internal Business Plan	Serves as a management tool for guiding the company's growth, evaluating its progress, and ensuring that all departments are aligned with the overall vision.	Strategies, Milestones, Deadlines, Resource Allocation.	Internal Team Members
Strategic Business Plan	Outlines long-term goals and the steps to achieve them.	SWOT Analysis, Market Research, Competitive Analysis, Long-Term Goals.	Executives, Managers, Investors
Feasibility Business Plan	Assesses the viability of a business idea.	Market Demand, Competition, Financial Projections, Potential Obstacles.	Entrepreneurs, Investors
Growth Business Plan	Focuses on strategies for scaling up an existing business.	Market Analysis, New Product/Service Offerings, Financial Projections.	Business Owners, Investors
Operational Business Plan	Outlines the company's day-to-day operations.	Processes, Procedures, Organizational Structure.	Managers, Employees
Lean Business Plan	A simplified, agile version of a traditional plan, focusing on key elements.	Value Proposition, Customer Segments, Revenue Streams, Cost Structure.	Entrepreneurs, Startups
One-Page Business Plan	A concise summary of your company's key objectives, strategies, and milestones.	Key Objectives, Strategies, Milestones.	Entrepreneurs, Investors, Partners
Nonprofit Business Plan	Outlines the mission, goals, target audience, fundraising strategies, and budget allocation for nonprofit organizations.	Mission Statement, Goals, Target Audience, Fundraising Strategies, Budget.	Nonprofit Leaders, Board Members, Donors
Franchise Business Plan	Focuses on the franchisor's requirements, as well as the franchisee's goals, strategies, and financial projections.	Franchise Agreement, Brand Standards, Marketing Efforts, Operational Procedures, Financial Projections.	Franchisors, Franchisees, Investors

Using Business Plan Software

Enloop is a robust business plan software that automatically generates a tailored plan based on your inputs. It provides industry-specific templates, financial forecasting, and a unique performance score that updates as you make changes to your plan. Enloop also offers a free version, making it accessible for businesses on a budget.

Software	Key Features	User Interface	Additional Features
LivePlan	Over 500 sample plans, financial forecasting tools, progress tracking against KPIs	User-friendly, visually appealing	Allows creation of professional-looking business plans
Upmetrics	Customizable templates, financial forecasting tools, collaboration capabilities	Simple and intuitive	Provides a resource library for business planning
Bizplan	Drag-and-drop builder, modular sections, financial forecasting tools, progress tracking	Simple, visually engaging	Designed to simplify the business planning process
Enloop	Industry-specific templates, financial forecasting tools, automatic business plan generation, unique performance score	Robust, user-friendly	Offers a free version, making it accessible for businesses on a budget
Tarkenton GoSmallBiz	Guided business plan builder, customizable templates, financial projection tools	User-friendly	Offers CRM tools, legal document templates, and additional resources for small businesses

Business Plan FAQs

What is a good business plan, what are the 3 main purposes of a business plan, can i write a business plan by myself.

We also have examples for specific industries, including a using food truck business plan , salon business plan , farm business plan , daycare business plan , and restaurant business plan .

Is it possible to create a one-page business plan?

How long should a business plan be, what is a business plan outline, what are the 5 most common business plan mistakes, what questions should be asked in a business plan.

A business plan should address questions such as: What problem does the business solve? Who is the specific target market ? What is the unique selling proposition? What are the company’s objectives? How will it achieve those objectives?

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

How is business planning for a nonprofit different.

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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 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.

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.

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.

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.

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.

Four Steps to Create a Competitive Marketing Analysis

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.

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.

Create Management Team For Business Plan

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

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)

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.

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.

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,

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.

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.

Choosing the right social media platform

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.

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.

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.

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.

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.

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.

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.

Exit Strategy Section of Business Plan Infographic

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.

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

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

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

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

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

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

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

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

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

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.

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.

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.

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.

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.

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.

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How to brand your company to investors

When talking to investors , the best thing you can do for your brand is have a very tight business pitch.

For advice on this, we spoke to a seasoned entrepreneur who owns a successful startup in the beer business. His name is Bob Russell and he is a partner in the craft brewer, Collective Arts Brewing . Collective Arts has a unique business model that largely hangs on the way it labels its cans with new artwork every three months. Support for indie music is another big part of the marketing mix. After four years in business, Collective Arts now has seven brands and is sold all over Canada, as well as in 16 American states, three European countries, and China.

Bob’s success is partly attributable to his long history as an entrepreneur in the world of visual communications design. As a designer with strong packaging and branding chops, he understands the power of design and art in a marketing context. And as an entrepreneur, he is very familiar with the challenge of raising capital . For a growing concern like Collective Arts, that task never ends.

Investor branding checklist

Assuming you have done all of the work described in the first three articles in this series, (which you can see here , here and here ), let’s take a look at Bob’s investor branding checklist.

1. Clearly articulate your company’s vision and brand story.

This is why you need to do what we have already talked about in this series. There can be no lack of clarity about the potential you see in your idea. Your vision should not only be clear, but bold and inspiring. You need to have a very compelling value proposition .

2. Know the size of the opportunity.

How big is the addressable market? What about the serviceable market? Know the difference and what you can actually deliver at scale. Your product may be relevant to several markets, but you will only have resources to service some of them. What kind of revenue can you expect from your serviceable market and how fast can you expect it?

3. Know why you will win.

This is really about your business strategy and value proposition. What are you delivering that your competition cannot? What’s different about you? (See Treacy and Wiersema’s value disciplines strategy, which is discussed in the second article of this series). What operational support will you put in place to win? Where will you play to win?

4. Know your competition.

We talked about this in the second article in this series. You will have conducted a robust analysis of the competitive landscape and you’ll be familiar with the strengths, capabilities, product portfolios and value propositions of your competitive set. You’ll see the gaps the competition is not addressing, where your opportunity lies and how you will seize it.

5. Know your target audience.

Without this, you have no brand. Or business for that matter. You actually have two audiences to worry about: investors and your eventual customers. The former is easy: they want to know that you are going to be a worthwhile investment. They need a tight business plan . They need to trust that you can deliver. And they need to know that you completely understand who you’ll be selling to . As with everything else on this list, you need to be very clear and focused. (Hint: you can’t sell to everybody.)

6. Build a strong management team.

People invest in people. Your idea may be great, but ultimately it will come down to who you are , what your credentials are, what qualifies you to be doing what you’re doing, and what kind of special expertise and talent you bring to the table. Investors are taking a risk, and they want to feel—not think, but feel—really comfortable with you as people. They need reassurance. You need confidence in yourselves and a track record to justify it.

7. Know how you will spend your investors’ money.

What are you going to do with the investment? How will you deploy it against capital equipment, staffing, marketing and product development? Make sure you have a comprehensive, detailed budget to share.

8. Know your product.

Know what you are selling, how it will work, what problems it will solve and what new value it is creating—both for your end customer and your investors. Be prepared to present all of that with demos if possible.

9. Know your business plan.

Build a financing roadmap . How much revenue do you need to generate and how much time do you have to generate it in order to move to the next level of funding? Lay out how you’ll deploy the revenue across all the elements listed in point #7. Know the stages and timing of your growth as a company, both short and long term.

10. Know your exit strategy.

Investors don’t just give their money away. They want it back—with a healthy return. So you need to understand when that exit will happen and what that ROI will look like.

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Free Business Plan Template for Small Businesses (2024)

Use this free business plan template to write your business plan quickly and efficiently.

A stack of books against a gradient background

A good business plan is essential to successfully starting your business — and the easiest way to simplify the work of writing a business plan is to start with a business plan template.

You’re already investing time and energy in refining your business model and planning your launch—there’s no need to reinvent the wheel when it comes to writing a business plan. Instead, to help build a complete and effective plan, lean on time-tested structures created by other entrepreneurs and startups.

Ahead, learn what it takes to create a solid business plan and download Shopify's free business plan template to get started on your dream today.

What this free business plan template includes

Executive summary
Company overview
Products or services offered
Market analysis
Marketing plan
Logistics and operations plan
Financial plan

This business plan outline is designed to ensure you’re thinking through all of the important facets of starting a new business. It’s intended to help new business owners and entrepreneurs consider the full scope of running a business and identify functional areas they may not have considered or where they may need to level up their skills as they grow.

That said, it may not include the specific details or structure preferred by a potential investor or lender. If your goal with a business plan is to secure funding , check with your target organizations—typically banks or investors—to see if they have business plan templates you can follow to maximize your chances of success.

Our free business plan template includes seven key elements typically found in the traditional business plan format:

1. Executive summary

This is a one-page summary of your whole plan, typically written after the rest of the plan is completed. The description section of your executive summary will also cover your management team, business objectives and strategy, and other background information about the brand.

2. Company overview

This section of your business plan will answer two fundamental questions: “Who are you?” and “What do you plan to do?” Answering these questions clarifies why your company exists, what sets it apart from others, and why it’s a good investment opportunity. This section will detail the reasons for your business’s existence, its goals, and its guiding principles.

3. Products or services offered

What you sell and the most important features of your products or services. It also includes any plans for intellectual property, like patent filings or copyright. If you do market research for new product lines, it will show up in this section of your business plan.

4. Market analysis

This section includes everything from estimated market size to your target markets and competitive advantage. It’ll include a competitive analysis of your industry to address competitors’ strengths and weaknesses. Market research is an important part of ensuring you have a viable idea.

5. Marketing plan

How you intend to get the word out about your business, and what strategic decisions you’ve made about things like your pricing strategy. It also covers potential customers’ demographics, your sales plan, and your metrics and milestones for success.

6. Logistics and operations plan

Everything that needs to happen to turn your raw materials into products and get them into the hands of your customers.

7. Financial plan

It’s important to include a look at your financial projections, including both revenue and expense projections. This section includes templates for three key financial statements: an income statement, a balance sheet, and a cash-flow statement . You can also include whether or not you need a business loan and how much you’ll need.

Business plan examples

What do financial projections look like on paper? How do you write an executive summary? What should your company description include? Business plan examples can help answer some of these questions and transform your business idea into an actionable plan.

Professional business plan example

Inside our template, we’ve filled out a sample business plan featuring a fictional ecommerce business .

The sample is set up to help you get a sense of each section and understand how they apply to the planning and evaluation stages of a business plan. If you’re looking for funding, this example won’t be a complete or formal look at business plans, but it will give you a great place to start and notes about where to expand.

Example text in a business plan company overview section

Lean business plan example

A lean business plan format is a shortened version of your more detailed business plan. It’s helpful when modifying your plan for a specific audience, like investors or new hires.

Also known as a one-page business plan, it includes only the most important, need-to-know information, such as:

Company description
Key members of your team
Customer segments

💡 Tip: For a step-by-step guide to creating a lean business plan (including a sample business plan), read our guide on how to create a lean business plan .

Example text in a business plan's marketing plan section

Benefits of writing a solid business plan

It’s tempting to dive right into execution when you’re excited about a new business or side project, but taking the time to write a thorough business plan and get your thoughts on paper allows you to do a number of beneficial things:

Test the viability of your business idea. Whether you’ve got one business idea or many, business plans can make an idea more tangible, helping you see if it’s truly viable and ensure you’ve found a target market.
Plan for your next phase. Whether your goal is to start a new business or scale an existing business to the next level, a business plan can help you understand what needs to happen and identify gaps to address.
Clarify marketing strategy, goals, and tactics. Writing a business plan can show you the actionable next steps to take on a big, abstract idea. It can also help you narrow your strategy and identify clear-cut tactics that will support it.
Scope the necessary work. Without a concrete plan, cost overruns and delays are all but certain. A business plan can help you see the full scope of work to be done and adjust your investment of time and money accordingly.
Hire and build partnerships. When you need buy-in from potential employees and business partners, especially in the early stages of your business, a clearly written business plan is one of the best tools at your disposal. A business plan provides a refined look at your goals for the business, letting partners judge for themselves whether or not they agree with your vision.
Secure funds. Seeking financing for your business—whether from venture capital, financial institutions, or Shopify Capital —is one of the most common reasons to create a business plan.

Why you should you use a template for a business plan

A business plan can be as informal or formal as your situation calls for, but even if you’re a fan of the back-of-the-napkin approach to planning, there are some key benefits to starting your plan from an existing outline or simple business plan template.

No blank-page paralysis

A blank page can be intimidating to even the most seasoned writers. Using an established business planning process and template can help you get past the inertia of starting your business plan, and it allows you to skip the work of building an outline from scratch. You can always adjust a template to suit your needs.

Guidance on what to include in each section

If you’ve never sat through a business class, you might never have created a SWOT analysis or financial projections. Templates that offer guidance—in plain language—about how to fill in each section can help you navigate sometimes-daunting business jargon and create a complete and effective plan.

Knowing you’ve considered every section

In some cases, you may not need to complete every section of a startup business plan template, but its initial structure shows you you’re choosing to omit a section as opposed to forgetting to include it in the first place.

Tips for creating a successful business plan

There are some high-level strategic guidelines beyond the advice included in this free business plan template that can help you write an effective, complete plan while minimizing busywork.

Understand the audience for your plan

If you’re writing a business plan for yourself in order to get clarity on your ideas and your industry as a whole, you may not need to include the same level of detail or polish you would with a business plan you want to send to potential investors. Knowing who will read your plan will help you decide how much time to spend on it.

Know your goals

Understanding the goals of your plan can help you set the right scope. If your goal is to use the plan as a roadmap for growth, you may invest more time in it than if your goal is to understand the competitive landscape of a new industry.

Take it step by step

Writing a 10- to 15-page document can feel daunting, so try to tackle one section at a time. Select a couple of sections you feel most confident writing and start there—you can start on the next few sections once those are complete. Jot down bullet-point notes in each section before you start writing to organize your thoughts and streamline the writing process.

Maximize your business planning efforts

Planning is key to the financial success of any type of business , whether you’re a startup, non-profit, or corporation.

To make sure your efforts are focused on the highest-value parts of your own business planning, like clarifying your goals, setting a strategy, and understanding the target market and competitive landscape, lean on a business plan outline to handle the structure and format for you. Even if you eventually omit sections, you’ll save yourself time and energy by starting with a framework already in place.

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Business plan template FAQ

What is the purpose of a business plan.

The purpose of your business plan is to describe a new business opportunity or an existing one. It clarifies the business strategy, marketing plan, financial forecasts, potential providers, and more information about the company.

How do I write a simple business plan?

Choose a business plan format, such as a traditional or a one-page business plan.
Find a business plan template.
Read through a business plan sample.
Fill in the sections of your business plan.

What is the best business plan template?

If you need help writing a business plan, Shopify’s template is one of the most beginner-friendly options you’ll find. It’s comprehensive, well-written, and helps you fill out every section.

What are the 5 essential parts of a business plan?

The five essential parts of a traditional business plan include:

Executive summary: This is a brief overview of the business plan, summarizing the key points and highlighting the main points of the plan.
Business description: This section outlines the business concept and how it will be executed.
Market analysis: This section provides an in-depth look at the target market and how the business will compete in the marketplace.
Financial plan: This section details the financial projections for the business, including sales forecasts, capital requirements, and a break-even analysis.
Management and organization: This section describes the management team and the organizational structure of the business.

Are there any free business plan templates?

There are several free templates for business plans for small business owners available online, including Shopify’s own version. Download a copy for your business.

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Home Business Business Plan

Business Plan Templates

Use our template to make an investment-worthy business plan.

Updated December 8, 2023 Written by Sara Hostelley | Reviewed by Brooke Davis

A business plan is a document outlining a company’s operations, strategies, goals, and objectives. It’s crucial to guide you through each stage of starting and growing your business.

Templates (8)

What is a business plan, why is a business plan essential, components of a business plan, how to write a business plan, business plan sample.

Below, you can find free business plan templates for specific business types. You can also find more in-depth information on writing a plan for your business, whether it’s a food truck, restaurant, real estate business, or another entity:

Create a detailed plan that lays out the details of how your business will achieve it's objectives.

Traditional Business Plan

Create a simplified version of a traditional business plan.

One-Page Business Plan

Create a Non-Profit Business Plan and learn how to write one.

Create a Daycare Business Plan and learn how to write one.

Create a Restaurant Business Plan and learn how to write one.

Create a Real Estate Business Plan and learn how to write one.

Real Estate

Create a Food Truck Business Plan and learn how to write one.

A business plan is a document detailing how a business, whether it’s a new or existing company, will achieve its goals and objectives. It guides you through every step of starting and running a company.

A business plan can be the foundation of your business, serving as a written roadmap that covers all aspects of how to structure, run, and grow your business. You can also refer back to it as your business progresses to track its growth and success.

In addition to being a helpful document internally, a business plan is also vital for a company to communicate its success to external parties that may influence its future success.

Consider some of the main reasons why large and small business owners alike use business plans:

1. Use As a Roadmap

A business plan sets specific, measurable, and time-bound goals. Having these goals helps you track progress, evaluate performance, and adjust as necessary.

By laying out goals, you have a clear and attainable plan of action with the ability to see and monitor your progress.

2. Plan Strategies For Potential Challenges

A business plan can help you think objectively about your business’s key elements and inform your decision-making as you move forward.

A detailed plan can provide a semblance of control over a potentially cumbersome process. Formulating a plan can improve your ability to make choices and decisions for yourself and the business. This approach is much better than suddenly making a critical decision without time to evaluate or haphazardly letting others decide for you.

3. Get Funding or Bring on New Business Partners

An accurate business plan is essential whether or not you need to secure a business loan. Investors and lenders often require a business plan before they commit capital. A solid plan demonstrates your commitment, viability, and potential return on investment.

Create a business plan that grabs the attention of potential investors and provides them with enough structure and confidence that they will move forward and grant funding and support to your business.

You can use your business plan to highlight how the proposed business will be successful and profitable.

4. Discover Any Weaknesses

A business plan includes a strengths, weaknesses, opportunities, and threats (SWOT) analysis that helps identify potential risks and challenges. It is essential to allocate resources and demonstrate monthly profit or loss. By recognizing these elements early, you can develop strategies to mitigate or address them.

5. Analyze the Market and Competition

Market research within the plan helps you better understand your target audience, competition, and industry trends. This knowledge is crucial for making informed business decisions.

By learning about your competition, you can help make your goods or services stand out and help validate your business idea.

You should update a business plan as you go, altering your goals as necessary and being mindful of any changes of direction in your business.

A typical business plan includes the following sections:

Executive Summary
Management Team
Products and Services
Customers and Marketing
SWOT Analysis

Our business plan template includes all of the above, so you won’t have to worry about missing out on essential sections.

Step 1 – Create an Executive Summary

An executive summary is the first section of a traditional business plan, serving as the first impression of your business. Please give a brief overview of your company, including its mission, key goals, and a snapshot of your financial projections.

You can skip this step if you’re writing a lean business plan for a startup. Instead, replace it with a few sentences outlining the problem your startup aims to solve and the solution you will provide.

Executive Summary Example:

Market research indicates there are a growing number of dog owners in Tallahassee who want to train their animals. Consumer surveys indicate that most consumers don’t have the time or resources to train their animals themselves.

Consumers have also expressed a desire for combined dog walking and training services to help discipline their animals.

Pawsitive Strides Canine Coaching & Walks provides a convenient service for customers with furry friends and disposable incomes.

Tips for Writing an Executive Summary

Define a problem in your market and state how your business will solve it.
Limit your executive summary to one page.
Use a tone appropriate for your audience.

Step 2 – Describe Your Company’s Team

A professional business plan will include a statement about your company’s team and management.

Describe your startup’s legal structure. After that, you can insert a chart to show the hierarchical structure of your company. Show and name your C-suite executives, management team, and key employees. Include short biographies and links to their resumes and LinkedIn profiles to give the reader a complete picture of your staff’s qualifications.

If you have a smaller staff, you can highlight the founder and CEO and your staff members who perform the services or create your business’s products.

Example for Company’s Team Statement:

Jamie Clayton, Founder and CEO

Board-certified veterinarian.

Pawsitive Strides Canine Coaching & Walks’s dog walkers and trainers

14 full-time staff members.
26 part-time staff members.
All staff members have the Certified Professional Dog Trainer-Knowledge and Skills Assessed (CPDT-KSA) credential from the Certification Council for Professional Dog Trainers.

Tips for Writing about Your Company Management and Team

Include any roles you’d like to hire to grow your company, if applicable.
Highlight expertise and awards one to show your staff’s capabilities.

Step 3 – Summarize Market Analysis and Potential

Your business plan must also thoroughly analyze your target market and customer base. The goal here is to show that you understand your market and target audience and that there is a viable market for your business.

Market Analysis Example:

Pawsitive Strides Canine Coaching & Walks’s ideal customer is a dog owner between the ages of 25 and 65 with a high disposable income. They’re ideally a working professional or have recently retired from the workplace. They love their dog (or dogs) and want them to be well-behaved and have an outlet for all their energy.

Market research shows that Pawsitive Strides Canine Coaching & Walks has ample opportunities in the Tallahassee area:

The total revenue for dog walking services in the U.S. increased from $900 million in 2019 to $1.1 billion in 2023.
Dog ownership has increased by 20% over the last five years.
Online search volume for “dog walkers in Tallahassee” is up by 10% since last year.
19% of Tallahassee’s residents have a household income of $125,000 or more (compared to the average of 5% across the U.S.).

Tips for Writing a Market Analysis

Use reliable sources for acquiring data.
Conduct consumer surveys to hear from people in your target area.
Focus on the demand in your area and the growth potential.
Include revenue and expense projections based on market data.

Step 4 – Describe Your Product or Service

Describe the products and services you offer. Pinpoint the value they provide to current and future customers and share your plans for research and development.

The main goal of this section is to convince the reader and yourself that your business is viable and that you have enough resources, time, and energy to achieve your goals.

Product Description Example:

Pawsitive Strides Canine Coaching & Walks isn’t an ordinary dog walking service. When a customer signs up for our monthly subscription plan, we have one of our certified dog walkers go to their house 12 times a month on a schedule that works for them.

Our dog walker takes their dog on a 30-minute walk and corrects their behavior. Their dog learns how to walk on a leash calmly and be around cars and people. Not only does the dog get some exercise and fresh air, but they also learn discipline, meaning the customer doesn’t have to worry about training their dog in this sense.

Tips for Writing a Product/Service Description

Highlight cross-sell and upsell opportunities, if applicable.
Emphasize what distinguishes you from other companies providing similar services/products.
Include details for updating your offerings in the future.

Step 5 – Plan Your Marketing Strategy

Discuss the brand vision you want to cultivate, the metrics you’ll track, and the channels you’ll use to reach your target audience. Outlining how you plan to collect and retain customers will help you experience growth in the long term.

Marketing Strategy Example:

Pawsitive Strides Canine Coaching & Walks will focus on social media and direct mail marketing as its two main forms of advertising. We’ll track customer referrals to determine how many current customers are satisfied with our services.

On our social media platforms, including Instagram and Facebook, we’ll track our audience growth rate, bounce rate, and click-through rate.

Tips for Writing a Marketing Strategy

Add the budget/resources you have, if applicable.
Create strategies for marketing to different segments within your main target audience.

Step 6 – Conduct SWOT Analysis

Organizations use SWOT analyses to determine how closely a business will adhere to its growth trajectories. This analysis involves looking at a company’s SWOTs, which are:

Strengths: Strengths are things your company does well. Examples include having a unique selling proposition, standout brandings, or human resources, like your employees and C-class executives.
Weaknesses: These barriers prevent your project or company from reaching certain milestones. Examples include financial limitations, a shortage of skilled professionals, and unclear selling propositions.
Opportunities: These positive external factors could give you a competitive edge. For instance, if you’re a manufacturer and the federal government cuts tariffs, you can export your products into a new market to boost market share and sales.
Threats: These are events, competitors, and situations that pose a risk to your company and the goals you’ve set for it. Typical threats include negative media coverage, changing customer demands, emerging competitors, and new rules and regulations.

SWOT Analysis Example:

Appeals to people who don’t have the time or resources to train their pets.
Low startup costs.
Finding enough certified employees to meet the anticipated demand.
Dealing with aggressive animals may be challenging for newer employees.

Opportunities

Offering multiple subscription packages for customers who want more frequent training sessions for their pets.
BehaviorBuddies is a dog walking service in Bradfordville that may take away customers.

Tips for Writing a SWOT Analysis

Be honest with your business’s weaknesses and threats.
Capitalize on opportunities you find through market analysis.

Step 7 – Develop a Strategy for Operations

Your business plan needs to include a thorough operations plan. This section reveals your manufacturing, fulfillment, managing, staffing, hiring strategies, and all the other processes you go through when running your business daily.

Operations Strategy Example:

Jamie Clayton will oversee the hiring of all employees, and the team lead will train all employees for at least one month to ensure they have the knowledge necessary to deal with animals of all temperaments.

The team lead will also organize the dog walking schedule to ensure all team members have enough time to arrive at customers’ houses and complete the dog walking/training sessions thoroughly.

Tips for Writing a Business Strategy

Consider what your business needs to thrive on a daily basis.
Account for inventory and supplies, even if your business is service-based.

Step 8 – Compile Your Business Financials

Create financial projections, including income statements, balance sheets, and cash flow statements for the first few years of operation. If you need funding, specify the amount and how you plan to use it.

Financial Statement Example:

Income Statement for the Year Ended December 31, 2023

Revenue: $150,000
Cost of Goods Sold: $30,000
Gross Profit: $120,000
Operating Expenses: $80,000
Net Operating Income: $40,000
Other Income/Expenses: -$2,000
Net Income: $38,000

Tips for Writing a Financial Section

Double-check the accuracy of financial information.
Demonstrate how the proposed funding aligns with your company’s goals.
Forecast future financial performance.

Step 9 – Explain Your Funding Request

If you’re seeking funding or investment for your business, explain the amount you need and how you intend to use it. Be transparent about the terms you’re offering to investors or lenders.

Funding Request Example:

Pawsitive Strides Canine Coaching & Walks has already hired a team to serve our existing customers. Once we scale to $500,000 in annual revenue over the next two years and at a 10% profit margin, our primary ongoing annual expenses (not including taxes) will total $350,000.

While already profitable, we are requesting $200,000 in the form of a business loan to buy two additional company vehicles. These vehicles will improve our employees’ ability to get to customers’ homes, and the remaining money will go toward maintaining current company vehicles.

Tips for Writing a Funding Request

Add a timeline so investors know your goals and how you plan to use the money.
If you seek funding in the form of an exchange for equity, an investor may expect to gain decision-making powers in your company. Plan for this situation accordingly.

Step 10 – Compile an Appendix for Official Documents

Include relevant documents, such as resumes of key team members, legal agreements, market research data, product design mock-ups, and your business’s legal structure documents.

Remember that each business plan is unique, so tailor your content to your venture and audience. Your business plan should effectively communicate your vision, strategy, and financial viability to potential investors, partners, and stakeholders.

Combine the appendix with a table of contents and footnotes section so you can reference it throughout your document.

You can download a free business plan template below in PDF or Word format:

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I'm self-employed, and I've found 6 essential ways to invest in my business

I'm a freelance writer, and I've learned that investing in my business and myself is essential.
I use several pieces of software to maintain a website and track my email, revenue, and more.
It's important to keep learning, so I use the Libby app and coaching sessions to gain new perspectives.

Running a freelance writing business has brought many learning curves, and one of my biggest realizations is the importance of investing in myself. Along the way, I've gotten a good sense of what expenses enable me to make more impact, whether it's a website that showcases my best work or one-on-one coaching from folks who understand the challenges of being a freelance writer and running a small business .

After three years of running my business, I have six tools that have been the most valuable. One of them is even free — but they're all an essential part of my budget .

1. A website for building a personal brand and showcasing my work

Having your own website ensures you have a central place to collect and share your work, such as links to talks and sessions, products you sell, and testimonials from past clients. You can also use your website to share case studies about your process for creating things, not just the final product.

No matter what you create, treat your website like a living, breathing place that you can continuously update as your work evolves.

I host my website on Squarespace because I appreciate that the templates are easy to customize without requiring knowledge of website development.

Other sites like Webflow offer more customizability, though, and Substack may be better if you're looking for an all-in-one platform for sharing a newsletter.

2. One-on-one coaching for getting an outside perspective

Running a business as a solo entrepreneur can be really isolating, which is why I appreciate one-on-one coaching as a way to get an outside perspective on how to evolve my business as it grows.

3. Authory for tracking and saving stories

Instead of looking my name up daily, I can use Authory to get an email every time a new story of mine has gone live. It's equally great for saving an offline version of stories as a link or PDF in case the story is taken down later.

That way, I always have an archive of my work and can share links to past stories. I also love that my Authory page is a single-page view of all of my recently published stories, and I can filter by publication or search for keywords.

4. Boomerang for following up on emails

It's easy for me to send a dozen pitches in a week, and even easier to lose track of who has responses. I use the Boomerang for Gmail email extension to automatically bring unanswered or unopened emails to the top of my inbox after a specific amount of time.

This way, I know when to follow up on pitches or emails without digging through my entire inbox. You can also use this extension to schedule messages or resurface messages after you're gone for vacation.

5. Quickbooks Online for bookkeeping

I still remember when I finally graduated from tracking expenses in spreadsheets to using Quickbooks Online, and I haven't looked back.

Quickbooks offers many ways to track revenue and expenses across different tags and categories, and you can upload invoices and receipts so everything is saved in one place.

Plus, I can use Quickbooks to draft, send, and save invoices, which makes it easy to use the tool as a singular view of how my business is doing and identify invoices that I need to chase down.

6. The Libby app for reading and learning on the go

Equally important to being a good writer is reading good writing. If you're looking for a free tool that makes it easy to read on the go, I highly recommend using the Libby app , which you can use to borrow e-books and audiobooks from your local library.

I use Libby to read books by entrepreneurs, small business owners, and writers that I admire, and reading using the Kindle app makes it easy to highlight key points and reference them on Goodreads whenever needed.

Some of my favorite books that I've read this way are "We Should All Be Millionaires" by Rachel Rodgers , "More Than Enough" by Elaine Welteroth, and "Wordslut: A Feminist Guide to Taking Back the English Language" by Amanda Montell.

No matter what tools you use, they should add value to your business, whether it's by streamlining a process, tracking your work, or empowering you to focus on what really matters.

Watch: Logitech's chief marketing officer tells Insider that creators 'take my brand places that I can't go alone'

Main content

IMAGES

Free business plan template & how to write a business plan
How to Create Business Proposal for Investors?
Business Plan for Investors
Creative Presenting Business Plan To Investors PPT Slide
Write a Business Plan for Investors
Simple Business Plan Template For Startup Founders

VIDEO

How to create a business plan investors will love!
Do You Need a Business Broker to Sell Your Business?
7 Steps to Buying a Business and 2 Unkown Steps Thereafter
Raising Finance to Buy a Business
How to Sell Your Business: Our Exclusive Guide
How to Successfully Pass On or Sell Your Business in the 21st Century

COMMENTS

Sell Your Business Idea to Investors or a Company: Step by Step
These are ongoing payments that are made to the product inventor or business idea generator based on a percentage of the product sales. The average royalty ranges from 2% to 5%. This means that you will be paid 5% of the wholesale price of each unit sold. Note that we said the wholesale price, not the retail price.
How to pitch your business idea to investors
Spend as much time on your script as you have on your slides. Practice in front of your team, friends, and family before your first call with an investor. " Start by writing your key messages as ...
How to Sell Your Business Idea to Investors
Investors are not just investing in a business; they're investing in you. So you're not just selling your business idea; you're selling you. Your passion, commitment, and vision can often be the tipping point in an investment decision. Paint a picture of where you see the business in five, 10, or even 20 years.
8 Expert Tips for Pitching to Investors
5. Prepare a Demo. Whether you're looking to fund a physical product or digital services, prepare a demo and be sure to work out all the technical issues before appearing in front of investors. Make sure the product model works as intended and any electronics or batteries are operating and fully charged.
How to Sell Your Ingenious Business Idea
Develop a Comprehensive Business Plan. A well-crafted business plan is crucial when selling your idea. It provides potential investors or partners a clear understanding of your vision, market analysis, financial projections, and growth strategy. See How to Write a Business Plan for tips on writing an effective business plan.
Selling To Investors: Five Tips For Funding Your New Business
1. Sell Yourself, Not Your Idea. In the early rounds of funding, the most important aspect of your business is you. Sell yourself, first and foremost, by proving your ability to take on four ...
How to Sell Your Business Idea to Investors: 6 Tips
Here are some tips to help you sell your business idea to investors and secure the financing you need. ... 4. Who Gives Them a Simple Plan (your solution) 5. And Calls Them to Action (varies, for ...
How to Pitch Investors: 14 Tips to Get Your Startup Funded
When pitching to angel investors, focus more on the big picture, the potential upside, and the huge market your product addresses. 2. Prepare For The Appropriate Amount of Time. Most investors take meetings in slots, meaning you'll know how much time you'll need to fill.
How to Sell Your Idea to Investors
At the same time, make sure to mention your key assumptions. 4. Tell a compelling story. Once you have a great pitch deck ready with all the sufficient details, you shouldn't rely on the pitch deck alone to sell your idea. Instead, use the pitch deck and all the facts and figures to tell a compelling and interesting narrative.
How to Pitch Your Business Idea to Startup Investors
Stimulate the investor's interest in learning more so you can secure a meeting to discuss it later. Short Pitch: This pitch is around 5-10 minutes long; it's the happy medium between an elevator and long pitch. Think of your short pitch as "phase two" after a successful elevator pitch. If an investor shows interest in learning more ...
How to Present Your Business Plan Effectively to Investors
Sell business idea efficiently Sell the Core Business Idea Efficiently. Whether you use a business plan or a pitch deck, the central principles of convincing a startup investor of the viability of your project remain the same. Clarity is paramount. Complexity is usually counter-productive because it risks confusing your audience.
How to Create a Winning Business Pitch for Investors
1. Tell a story. A common topic among experts was the need to be personable and create a narrative. While facts and figures go a long way, it's important to use those numbers to tell a ...
How To Sell Your Business: What To Do Before, During, And ...
How to sell your small business: key steps before, during, and after the sale. Selling a business requires a lot of planning. Here's a primer on what to expect when selling a company.
How to Write a Business Plan That Investors Will Like
Although business plans can vary greatly, there are a few essential elements. Here are eight sections that a business plan should include: Executive Summary: This is an overview of the rest of your business plan. It will summarize things like your mission statement, plans, goals, structure, and financial needs.
How to Write a Business Plan For Investors
Identify the three to four key factors that make your company a great opportunity and make sure they're included in this section. 3. Team Overview. This is where you introduce your team and how you'll work together to bring the business to life. An ideal Team Overview section makes the case not only that your team is the right team for the ...
7 Steps To Selling Your Small Business
Brigitte Yuille has 10+ years of experience in journalism. She is a writer, teacher, author of two e-books, and founder of B.Y. Communications. Selling a small business is a complex venture that ...
How To Sell Yourself To Investors
Some nervous energy is good to bring to an initial investor meeting, but unpreparedness is not. Know what's expected of you and arrive armed and ready. During this first pitch, prospective ...
How to Write a Convincing Business Plan for Investors
Financial forecasts. Investors will inevitably want to see your financial forecasts. You'll need a sales forecast, expense budget, cash flow forecast, profit and loss, and balance sheet. If you have historical results, you should plan on sharing those too as well as any other key metrics about your business.
How to Find Investors for Your Business
Telling your brand's story is crucial for finding investors. Investors look for brand value, especially regarding social media and a business's presence in its local community. If you marry a strong company mission with a distinct, well-developed brand voice, you're halfway to finding the right investors. 3.
How to Present Your Ideas to Investors
1. Your idea is not fully formed. When presenting to investors, you must be able to answer all their questions quickly and confidently. That means that your idea must be extremely well thought out. You must be able to explain its features, benefits, exactly how it works, your production plan and your market analysis.
How to Write a Business Plan That Attracts Investors
2. Cuttles. Cuttles helps entrepreneurs and business owners plan and grow their businesses using a fully interactive and guided business plan software. The software provides features and guides to create a startup pitch, write a business plan, define a startup team, and do budgets and financial projections.
How to Create a Business Plan: Examples & Free Template
Tips on Writing a Business Plan. 1. Be clear and concise: Keep your language simple and straightforward. Avoid jargon and overly technical terms. A clear and concise business plan is easier for investors and stakeholders to understand and demonstrates your ability to communicate effectively. 2.
How to Write a Business Plan in 9 Steps (+ Template and Examples)
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 brand your company to investors
Know your product. Know what you are selling, how it will work, what problems it will solve and what new value it is creating—both for your end customer and your investors. Be prepared to present all of that with demos if possible. 9. Know your business plan. Build a financing roadmap.
Free Business Plan Template for Small Businesses (2024)
Our free business plan template includes seven key elements typically found in the traditional business plan format: 1. Executive summary. This is a one-page summary of your whole plan, typically written after the rest of the plan is completed. The description section of your executive summary will also cover your management team, business ...
Free Business Plan Templates for Startups & Businesses
Step 1 - Create an Executive Summary. An executive summary is the first section of a traditional business plan, serving as the first impression of your business. Please give a brief overview of your company, including its mission, key goals, and a snapshot of your financial projections.
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Step 3: Choose a business name and start building your brand. Next, your business needs a name and brand identity. For those starting white label e-commerce businesses, the brand is especially crucial to the success of your business. Choosing a business name can be fun, but it requires a bit of strategic thinking.
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How to Sell Your Business Idea to Investors

Start With a Solid Business Plan

Know Your Audience

Craft a Compelling Pitch

Showcase Your Passion and Vision

Be Transparent

Anticipate Questions and Objections

Present a Clear Plan for the Funds

Build a Relationship

Close With a Strong Call to Action

Negotiate Your Way to Success

Form a C Corporation

Nellie Akalp

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8 Expert Tips for Pitching to Investors

How to Pitch an Idea to Investors

1. Tailor an Elevator Pitch

2. Narrow Down Your Target Audience

3. Market Research

4. Create a Business Plan and Model

5. Prepare a Demo

How to Pitch a Business Plan to Investors

1. Make it thorough and thoughtful.

2. Show the data.

3. Put a pitch deck together.

Prepare to Get Funded

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9 Sales Pitch Examples (Plus Tips on How to Write Your Own)

Unique Selling Proposition: What It Is & How to Develop a Great One

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Don’t Know the Answer? Try These 10 Tips for Thinking on Your Feet

How to Sell Your Ingenious Business Idea

Refine Your Business Idea

Develop a Comprehensive Business Plan

Create a Compelling Pitch Deck

Tailor Your Message to the Audience

Practice Makes Perfect

Final Thoughts

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How to Sell Your Idea to Investors

Reethu Ravi

1. Do your investor research and find the right investor

2. Build your pitch deck

3. Know your numbers and show realistic forecasts

4. Tell a compelling story

5. Be clear about what you want

6. Prepare yourself

7. Maintain investor relations

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How to Pitch Your Business Idea to Startup Investors

The Ideal Pitch Deck Is a Story, a Science and an Art

Research the investors

Build a pitch deck

Organize sections

Display your values

Tell a story

Make a road map

Must-Read: 5 Terms That are Killing Your Startup’s Pitch