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As a startup, you'll need to know how to write a business plan in order to attract investors. Here are some templates and examples to help you get started.

If you're starting a new business or executing a new plan within your company, you’ll want to have a business plan. It’s a formal document that outlines your company, your project, funding options and your means of execution. There are many resources available to help you write your business plan, including countless templates you can follow depending on your goals. Below we’ve outlined some examples, including a sample plan.

[Read: How to Write a Business Plan During a Pandemic ]

Business plan template examples

While business plans can be general, it’s helpful to gear yours toward your industry. Here are five business plan templates for specific industries or situations:

• For first-time entrepreneurs: The United States Small Business Administration (SBA) .
• For getting your ideas down: $100 Startup .
• For law firms: Cilo .
• For established businesses: SCORE .
• For additional industries: LawDepot .

Sample business plan

A one-page business plan briefly states your opportunity and timeline. It’s often used as an introduction to your longer, more robust plan. Here is a brief overview of a business plan and the nine elements that should be included.

1. The business opportunity

At the top of your plan, state the endeavor you're looking to pursue. Are you a new startup or an existing company looking to grow? Describe your challenges and how you plan to work through them. This section should be a one- or two-sentence elevator pitch of your business opportunity.

[Read: How to Refine Your Business Plan for Every Stage of Your Business ]

2. Your company description

When writing your company description, assume the reader knows nothing about your company. Briefly define who you are, identifying your values and why your company is necessary right now.

Outline your timeline for launching your business or project. Timelines are always subject to change, so make sure you account for alternative scenarios and setbacks.

3. Your talent description

In this section, you’ll want to introduce your team and demonstrate why they are the right fit for your business. Talk about their relevant skills, experience and background, getting as specific as possible. Providing their track record will reassure potential investors that your business is backed by reliable professionals.

4. The industry analysis

While writing your plan, it’s important to recognize your industry's outlook and your potential within it. This will also help you identify your competitors and analyze their offerings in comparison to yours, so you can focus on how you might stand out among them. This analysis is a great way to show investors that you’ve done your research and understand how you fit into your market.

[Read: Pivoting During the Pandemic? 16 Tools That Will Help Your Business Adapt ]

5. Your target audience

In this section, you will identify your target audience, defining their demographic, location and other specific traits. Additionally, explain how your audience will benefit from your company or project, or how you will solve common problems they share.

6. The timeline

Outline your timeline for launching your business or project. Timelines are always subject to change, so make sure you account for alternative scenarios and setbacks. For your one-page business plan, talk about your general timeline, its phases and why it’s a realistic goal.

7. Your marketing plan

How will you get the word out about your new business or project? Identify the avenues you and your company will choose to explore and how you plan to meet your target audience there. For example, consider your social media efforts, digital marketing and other methods that you seek to execute.

8. The financial summary

Clearly define your cost structure and revenue streams, describing your sales methods and post-launch goals, as well as how you will achieve them. Be sure to include both your long- and short-term financial goals and benchmarks.

[Read: Smart Strategies for Presenting Your Business Plan ]

9. Your funding requirements

One of the primary reasons you write a business plan is to help obtain funding. In this section, talk about the amount of funding you'll need from investors and where that funding will go. You should also be clear about how you plan to pay back your investors through your financial plan.

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How to Write a Business Plan, Step by Step

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What is a business plan?

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

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

ZenBusiness

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

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

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

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

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

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

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

Your business’s registered name.

Address of your business location .

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

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

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

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

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

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

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

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

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

You should include the following:

An explanation of how your product or service works.

The pricing model for your product or service.

The typical customers you serve.

Your supply chain and order fulfillment strategy.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

NerdWallet’s picks for setting up your business finances:

The best business checking accounts .

The best business credit cards .

The best accounting software .

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

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

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

Licenses and permits.

Equipment leases.

Bank statements.

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

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

How much do you need?

with Fundera by NerdWallet

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

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

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

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

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

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

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How To Write a Business Plan

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Starting a business is a wild ride, and a solid business plan can be the key to keeping you on track. A business plan is essentially a roadmap for your business — outlining your goals, strategies, market analysis and financial projections. Not only will it guide your decision-making, a business plan can help you secure funding with a loan or from investors .

Writing a business plan can seem like a huge task, but taking it one step at a time can break the plan down into manageable milestones. Here is our step-by-step guide on how to write a business plan.

Table of contents

• Write your executive summary
• Do your market research homework
• Set your business goals and objectives
• Plan your business strategy
• Describe your product or service
• Crunch the numbers
• Finalize your business plan

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Step 1: Write your executive summary

Though this will be the first page of your business plan , we recommend you actually write the executive summary last. That’s because an executive summary highlights what’s to come in the business plan but in a more condensed fashion.

An executive summary gives stakeholders who are reading your business plan the key points quickly without having to comb through pages and pages. Be sure to cover each successive point in a concise manner, and include as much data as necessary to support your claims.

You’ll cover other things too, but answer these basic questions in your executive summary:

• Idea: What’s your business concept? What problem does your business solve? What are your business goals?
• Product: What’s your product/service and how is it different?
• Market: Who’s your audience? How will you reach customers?
• Finance: How much will your idea cost? And if you’re seeking funding, how much money do you need? How much do you expect to earn? If you’ve already started, where is your revenue at now?

Step 2: Do your market research homework

The next step in writing a business plan is to conduct market research . This involves gathering information about your target market (or customer persona), your competition, and the industry as a whole. You can use a variety of research methods such as surveys, focus groups, and online research to gather this information. Your method may be formal or more casual, just make sure that you’re getting good data back.

This research will help you to understand the needs of your target market and the potential demand for your product or service—essential aspects of starting and growing a successful business.

Step 3: Set your business goals and objectives

Once you’ve completed your market research, you can begin to define your business goals and objectives. What is the problem you want to solve? What’s your vision for the future? Where do you want to be in a year from now?

Use this step to decide what you want to achieve with your business, both in the short and long term. Try to set SMART goals—specific, measurable, achievable, relevant, and time-bound benchmarks—that will help you to stay focused and motivated as you build your business.

Step 4: Plan your business strategy

Your business strategy is how you plan to reach your goals and objectives. This includes details on positioning your product or service, marketing and sales strategies, operational plans, and the organizational structure of your small business.

Make sure to include key roles and responsibilities for each team member if you’re in a business entity with multiple people.

Step 5: Describe your product or service

In this section, get into the nitty-gritty of your product or service. Go into depth regarding the features, benefits, target market, and any patents or proprietary tech you have. Make sure to paint a clear picture of what sets your product apart from the competition—and don’t forget to highlight any customer benefits.

Step 6: Crunch the numbers

Financial analysis is an essential part of your business plan. If you’re already in business that includes your profit and loss statement , cash flow statement and balance sheet .

These financial projections will give investors and lenders an understanding of the financial health of your business and the potential return on investment.

You may want to work with a financial professional to ensure your financial projections are realistic and accurate.

Step 7: Finalize your business plan

Once you’ve completed everything, it's time to finalize your business plan. This involves reviewing and editing your plan to ensure that it is clear, concise, and easy to understand.

You should also have someone else review your plan to get a fresh perspective and identify any areas that may need improvement. You could even work with a free SCORE mentor on your business plan or use a SCORE business plan template for more detailed guidance.

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The takeaway

Writing a business plan is an essential process for any forward-thinking entrepreneur or business owner. A business plan requires a lot of up-front research, planning, and attention to detail, but it’s worthwhile. Creating a comprehensive business plan can help you achieve your business goals and secure the funding you need.

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Free Startup Business Plan Templates and Examples

By Joe Weller | May 6, 2020

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In this article, we’ve rounded up a variety of the top, professionally designed startup business plan templates, all of which are free to download in PDF, Word, and Excel formats.

Included on this page, you’ll find a one-page startup business plan template , a business plan outline template for startups , a startup business planning template with a timeline , and a sample startup business plan .

Startup Business Plan Template

Download Startup Business Plan Template - Word

Word | Smartsheet

This startup business plan template contains the essential components you need to convey your business idea and strategy to investors and stakeholders, but you can customize this template to fit your needs. The template provides room to include an executive summary, a financial overview, a marketing strategy, details on product or service offerings, and more.

One-Page Startup Business Plan Template

Download One-Page Startup Business Plan Template

Excel | Word | PDF

This one-page business plan is ideal for startup companies that want to document and organize key business concepts. The template offers an easy-to-scan layout that’s ideal for investors and stakeholders. Use this plan to create a high-level view of your business idea and as a reference as you flesh out a more detailed roadmap for your business.

For additional resources, visit " Free One-Page Business Plan Templates with a Quick How-To Guide ."

Simple Fill-In-the-Blank Business Plan Template for Startups

Download Simple Fill-in-the-Blank Business Plan Template for Startups

This comprehensive fill-in-the-blank business plan template is designed to guide entrepreneurs through the process of building a startup business plan. This template comes with a customizable cover page and table of contents, and each section includes sample content that you can modify to fit the needs of your business. For more fill-in business templates, read our  "Free Fill-In-the-Blank Business Plan Templates"  article.

Lean Business Plan Template for Startups

Download Lean Business Plan Template for Startups

This Lean business plan template takes a traditional business plan outline and extracts the most essential elements. Use this template to outline your company and industry overview, convey the problem you are solving, identify customer segments, highlight key performance metrics, and list a timeline of key activities.

Business Plan Outline Template for Startups

Download Business Plan Outline Template for Startups

You can use this business plan outline as a basis to create your own business plan. This template contains all the elements of a traditional business plan, including a title page, a table of contents, and information on what to include in each section. Simplify or expand this outline based on the size and needs of your startup business.

Startup Business Planning Template with Timeline

Download Startup Business Planning Template with Timeline

Excel | Smartsheet

As you create your business plan, this business planning template doubles as a schedule and timeline to track the progress of key activities. This template enables you to break down your plan into phases and provides space to include key tasks and dates for each task. For a visual timeline, shade in the cells according to each task’s start and end dates. The timeline ensures that your plan stays on track.

Business Plan Rubric Template for Startups

Download Business Plan Rubric Template for Startups

Excel | Word | PDF | Smartsheet

If you’re starting a business and want to keep all your ducks in a row, use this rubric to evaluate and score each aspect of your startup business plan. You can tailor this template to the needs of your specific business, and can also highlight areas of your plan that require improvement or expansion. Use this template as a tool to make sure your plan is clear, articulate, and organized. A sharp, insightful, well thought-out plan will definitely get the attention of potential investors and partners.

For additional resources to help support your business planning efforts, check out “Free Startup Plan, Budget, and Cost Templates.”

What’s the Best Business Plan Template for Startups?

The template you choose for your startup business depends on a number of factors, including the size and specific needs of your company. Moreover, as your business grows and your objectives change, you will need to adjust your plan (and possibly your choice of template) accordingly. 

Some entrepreneurs find it useful to use a Lean business plan template design in order to jot down a business concept and see if it’s feasible before pursuing it further. Typically one to three pages, a Lean business plan template encourages you to highlight core ideas and strategic activities and remain focused on key points.

Other entrepreneurs prefer a template with a more traditional business plan design, which allows you to go into greater detail and ensure you include every detail. A traditional plan can range from 10 to 100 pages and cover both the high-level and granular particulars of your overall concept, objectives, and strategy.

There is no one-size-fits-all solution, but the following section outlines the minimum that your business plan template should include in order to gain buy-in from potential investors.

What to Include in a Startup Business Plan

Whether you choose to use a template to develop your startup business plan or decide to write one from scratch, you need to include the following elements:

• An overview of your company and the industry in which it operates
• The problem you are solving and the proposed solution
• A description of your product or service offerings, including key features
• The existing alternatives that customers use and your competitive advantage
• The target customer segments and the channels you will use to reach them
• The cost structure and revenue streams associated with your business
• A financial plan, including sales and revenue projections (ideally 3-5 years)
• If applicable, the financial requirements to get your business running, including how you will source and allocate funds

Each of the following sections provides an example of a business plan that you can use for reference as you develop your own.

One-Page Lean Business Plan Example

This Lean business plan example displays a visually appealing and scannable one-page illustration of a business plan. It conveys the key strategies you need to meet your main objectives. Each element of this concise plan provides stakeholders and potential investors with links to resources that support and expand upon the plan’s details, and it can also serve as an investor pitch deck.

Startup Business Plan Sample

This business plan sample contains all the aspects of a standard business plan. Using a fictional food truck business as the basis for a startup business plan, this sample will give you all the ideas you need to make your plan outstanding.

Download Startup Business Plan Sample - PDF

When the time comes that you need more space to lay out your goals and strategies, choose from our variety of  free simple business plan templates . You can learn how to write a successful simple business plan  here . 

Visit this  free non-profit business plan template roundup  or of you are looking for a business plan template by file type, visit our pages dedicated specifically to  Microsoft Excel ,  Microsoft Word , and  Adobe PDF  business plan templates. Read our articles offering  free 30-60-90-day business plan templates  to find more tailored options.

Top 10 Tips to Create a Startup Business Plan

Putting together a business plan can be overwhelming and time consuming, especially if you aren’t sure where to begin. Below, we share tips you can use to help simplify the process of developing a startup business plan of your own. 

• Use a business plan template, or begin with a business plan outline that provides all the elements of a standard plan to get your ideas down on paper in a structured manner. (You can choose from the selection of templates above.)  
• Remove sections from your outline that aren’t relevant or that aren’t necessary to launch and operate your business.
• Compile the data you have gathered on your business and industry, including research on your target market and product or service offerings, details on the competitive landscape, and a financial plan that anticipates the next three to five years. Use that information to fill in the sections of your plan outline. 
• Get input and feedback from team members (e.g., finance, marketing, sales) and subject matter experts to ensure that the information you’ve included in the plan is accurate.
• Make certain that the objectives of your plan align with marketing, sales, and financial goals to ensure that all team members are moving in the same direction.
• Although this section of the plan comes first, write the executive summary last to provide an overview of the key points in your business plan.
• Prepare a pitch deck for potential clients, partners, or investors with whom you plan to meet in order to share vital information about your business, including what sets you apart and the direction you are headed. 
• Who are the founders and management executives, and what relevant experience do they bring to the table?
• What is the problem you are solving, and how is your solution better than what currently exists? 
• What’s the size of the market, and how much market share do you plan to capture?
• What are the trends in your market, and how are you applying them to your business?
• Who are your direct competitors, and what is your competitive advantage?
• What are the key features of your product or service that set it apart from alternative offerings, and what features do you plan to add in the future?
• What are the potential risks associated with your business, and how do you plan to address them?
• How much money do you need to get your business running, and how do you plan to source it?
• With the money you source, how do you plan to use it to scale your business?
• What are the key performance metrics associated with your business, and how will you know when you’re successful?
• Revisit and modify your plan on a regular basis as your goals and strategies evolve.
• Use a work collaboration tool that keeps key information across teams in one place, allows you to track plan progress, and captures updates in real time.

Successfully Implement Your Startup Business Plan with Real-Time Work Management in Smartsheet

Empower your people to go above and beyond with a flexible platform designed to match the needs of your team — and adapt as those needs change. 

The Smartsheet platform makes it easy to plan, capture, manage, and report on work from anywhere, helping your team be more effective and get more done. Report on key metrics and get real-time visibility into work as it happens with roll-up reports, dashboards, and automated workflows built to keep your team connected and informed. 

When teams have clarity into the work getting done, there’s no telling how much more they can accomplish in the same amount of time.  Try Smartsheet for free, today.

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550+ Business Plan Examples to Launch Your Business

Need help writing your business plan? Explore over 550 industry-specific business plan examples for inspiration.

Find your business plan example

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Business plan template: There's an easier way to get your business plan done.

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Finish your plan faster with step-by-step guidance, financial wizards, and a proven format.

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View all sample business plans

Example business plan format

Before you start exploring our library of business plan examples, it's worth taking the time to understand the traditional business plan format . You'll find that the plans in this library and most investor-approved business plans will include the following sections:

Executive summary

The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally only one to two pages. You should also plan to write this section last after you've written your full business plan.

Your executive summary should include a summary of the problem you are solving, a description of your product or service, an overview of your target market, a brief description of your team, a summary of your financials, and your funding requirements (if you are raising money).

Products & services

The products & services chapter of your business plan is where the real meat of your plan lives. It includes information about the problem that you're solving, your solution, and any traction that proves that it truly meets the need you identified.

This is your chance to explain why you're in business and that people care about what you offer. It needs to go beyond a simple product or service description and get to the heart of why your business works and benefits your customers.

Market analysis

Conducting a market analysis ensures that you fully understand the market that you're entering and who you'll be selling to. This section is where you will showcase all of the information about your potential customers. You'll cover your target market as well as information about the growth of your market and your industry. Focus on outlining why the market you're entering is viable and creating a realistic persona for your ideal customer base.

Competition

Part of defining your opportunity is determining what your competitive advantage may be. To do this effectively you need to get to know your competitors just as well as your target customers. Every business will have competition, if you don't then you're either in a very young industry or there's a good reason no one is pursuing this specific venture.

To succeed, you want to be sure you know who your competitors are, how they operate, necessary financial benchmarks, and how you're business will be positioned. Start by identifying who your competitors are or will be during your market research. Then leverage competitive analysis tools like the competitive matrix and positioning map to solidify where your business stands in relation to the competition.

Marketing & sales

The marketing and sales plan section of your business plan details how you plan to reach your target market segments. You'll address how you plan on selling to those target markets, what your pricing plan is, and what types of activities and partnerships you need to make your business a success.

The operations section covers the day-to-day workflows for your business to deliver your product or service. What's included here fully depends on the type of business. Typically you can expect to add details on your business location, sourcing and fulfillment, use of technology, and any partnerships or agreements that are in place.

Milestones & metrics

The milestones section is where you lay out strategic milestones to reach your business goals.

A good milestone clearly lays out the parameters of the task at hand and sets expectations for its execution. You'll want to include a description of the task, a proposed due date, who is responsible, and eventually a budget that's attached. You don't need extensive project planning in this section, just key milestones that you want to hit and when you plan to hit them.

You should also discuss key metrics, which are the numbers you will track to determine your success. Some common data points worth tracking include conversion rates, customer acquisition costs, profit, etc.

Company & team

Use this section to describe your current team and who you need to hire. If you intend to pursue funding, you'll need to highlight the relevant experience of your team members. Basically, this is where you prove that this is the right team to successfully start and grow the business. You will also need to provide a quick overview of your legal structure and history if you're already up and running.

Financial projections

Your financial plan should include a sales and revenue forecast, profit and loss statement, cash flow statement, and a balance sheet. You may not have established financials of any kind at this stage. Not to worry, rather than getting all of the details ironed out, focus on making projections and strategic forecasts for your business. You can always update your financial statements as you begin operations and start bringing in actual accounting data.

Now, if you intend to pitch to investors or submit a loan application, you'll also need a "use of funds" report in this section. This outlines how you intend to leverage any funding for your business and how much you're looking to acquire. Like the rest of your financials, this can always be updated later on.

The appendix isn't a required element of your business plan. However, it is a useful place to add any charts, tables, definitions, legal notes, or other critical information that supports your plan. These are often lengthier or out-of-place information that simply didn't work naturally into the structure of your plan. You'll notice that in these business plan examples, the appendix mainly includes extended financial statements.

Types of business plans explained

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. To get the most out of your plan, it's best to find a format that suits your needs. Here are a few common business plan types worth considering.

Traditional business plan

The tried-and-true traditional business plan is a formal document meant to be used for external purposes. Typically this is the type of plan you'll need when applying for funding or pitching to investors. It can also be used when training or hiring employees, working with vendors, or in any other situation where the full details of your business must be understood by another individual.

Business model canvas

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

The structure ditches a linear format in favor of a cell-based template. It encourages you to build connections between every element of your business. It's faster to write out and update, and much easier for you, your team, and anyone else to visualize your business operations.

One-page business plan

The true middle ground between the business model canvas and a traditional business plan is the one-page business plan . This format is a simplified version of the traditional plan that focuses on the core aspects of your business.

By starting with a one-page plan , you give yourself a minimal document to build from. You'll typically stick with bullet points and single sentences making it much easier to elaborate or expand sections into a longer-form business plan.

Growth planning

Growth planning is more than a specific type of business plan. It's a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, forecast, review, and refine based on your performance.

It holds all of the benefits of the single-page plan, including the potential to complete it in as little as 27 minutes . However, it's even easier to convert into a more detailed plan thanks to how heavily it's tied to your financials. The overall goal of growth planning isn't to just produce documents that you use once and shelve. Instead, the growth planning process helps you build a healthier company that thrives in times of growth and remain stable through times of crisis.

It's faster, keeps your plan concise, and ensures that your plan is always up-to-date.

Download a free sample business plan template

Ready to start writing your own plan but aren't sure where to start? Download our free business plan template that's been updated for 2024.

This simple, modern, investor-approved business plan template is designed to make planning easy. It's a proven format that has helped over 1 million businesses write business plans for bank loans, funding pitches, business expansion, and even business sales. It includes additional instructions for how to write each section and is formatted to be SBA-lender approved. All you need to do is fill in the blanks.

How to use an example business plan to help you write your own

How do you know what elements need to be included in your business plan, especially if you've never written one before? Looking at examples can help you visualize what a full, traditional plan looks like, so you know what you're aiming for before you get started. Here's how to get the most out of a sample business plan.

Choose a business plan example from a similar type of company

You don't need to find an example business plan that's an exact fit for your business. Your business location, target market, and even your particular product or service may not match up exactly with the plans in our gallery. But, you don't need an exact match for it to be helpful. Instead, look for a plan that's related to the type of business you're starting.

For example, if you want to start a vegetarian restaurant, a plan for a steakhouse can be a great match. While the specifics of your actual startup will differ, the elements you'd want to include in your restaurant's business plan are likely to be very similar.

Use a business plan example as a guide

Every startup and small business is unique, so you'll want to avoid copying an example business plan word for word. It just won't be as helpful, since each business is unique. You want your plan to be a useful tool for starting a business —and getting funding if you need it.

One of the key benefits of writing a business plan is simply going through the process. When you sit down to write, you'll naturally think through important pieces, like your startup costs, your target market , and any market analysis or research you'll need to do to be successful.

You'll also look at where you stand among your competition (and everyone has competition), and lay out your goals and the milestones you'll need to meet. Looking at an example business plan's financials section can be helpful because you can see what should be included, but take them with a grain of salt. Don't assume that financial projections for a sample company will fit your own small business.

If you're looking for more resources to help you get started, our business planning guide is a good place to start. You can also download our free business plan template .

Think of business planning as a process, instead of a document

Think about business planning as something you do often , rather than a document you create once and never look at again. If you take the time to write a plan that really fits your own company, it will be a better, more useful tool to grow your business. It should also make it easier to share your vision and strategy so everyone on your team is on the same page.

Adjust your plan regularly to use it as a business management tool

Keep in mind that businesses that use their plan as a management tool to help run their business grow 30 percent faster than those businesses that don't. For that to be true for your company, you'll think of a part of your business planning process as tracking your actual results against your financial forecast on a regular basis.

If things are going well, your plan will help you think about how you can re-invest in your business. If you find that you're not meeting goals, you might need to adjust your budgets or your sales forecast. Either way, tracking your progress compared to your plan can help you adjust quickly when you identify challenges and opportunities—it's one of the most powerful things you can do to grow your business.

Prepare to pitch your business

If you're planning to pitch your business to investors or seek out any funding, you'll need a pitch deck to accompany your business plan. A pitch deck is designed to inform people about your business. You want your pitch deck to be short and easy to follow, so it's best to keep your presentation under 20 slides.

Your pitch deck and pitch presentation are likely some of the first things that an investor will see to learn more about your company. So, you need to be informative and pique their interest. Luckily, just like you can leverage an example business plan template to write your plan, we also have a gallery of over 50 pitch decks for you to reference.

With this gallery, you have the option to view specific industry pitches or get inspired by real-world pitch deck examples.

Ready to get started?

Now that you know how to use an example business plan to help you write a plan for your business, it's time to find the right one.

Use the search bar below to get started and find the right match for your business idea.

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

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Conducting Market Research

Crafting a business plan, reviewing funding options, understanding legal requirements, implementing marketing strategies, how much does it cost to start a business, what should i do before starting a business, what types of funding are available to start a business, do you need to write a business plan, the bottom line.

Building an effective business launch plan

Starting a business in the United States involves a number of different steps, spanning legal considerations, market research, creating a business plan, securing funding, and developing a marketing strategy. It also entails decisions around a business’s location, structure, name, taxation, and registration.

This article covers the key steps involved in starting a business, as well as important aspects of the process for entrepreneurs to consider.

Key Takeaways

• Entrepreneurs seeking to develop their own business should start by conducting market research to understand their industry space and competition, and to target customers.
• The next step is to write a comprehensive business plan, outlining the company’s structure, vision, and strategy. Potential funders and partners may want to review the business plan in advance of signing any agreements.
• Securing funding is crucial in launching a business. Funding can come in the form of grants, loans, venture capital, or crowdfunded money; entrepreneurs may also opt to self-fund instead of or in combination with any of these avenues.
• Choosing a location and business structure can have many implications for legal aspects of business ownership, such as taxation, registration, and permitting, so it’s important to fully understand the regulations and requirements for the jurisdiction in which the business will operate. 
• Another key aspect of launching a new business is having a strategic marketing plan that addresses the specifics of the business, industry, and target market.

Before starting a business, entrepreneurs should conduct market research to determine their target audience, competition, and market trends. 

The U.S. Small Business Administration (SBA) recommends researching demographic data around potential customers to understand a given consumer base and reduce business risk. It also breaks down common market considerations as follows:

• Demand : Do people want or need this product or service?
• Market size : How many people might be interested?
• Economic indicators : These include income, employment rate, and spending habits of potential customers.
• Location : Where are the target market and the business located?
• Market saturation : How competitive is the business space, and how many similar offerings exist?
• Pricing : What might a customer be willing to pay?

Market research should also include an analysis of the competition (including their strengths and weaknesses compared to those of the proposed business), market opportunities and barriers to entry, industry trends, and competitors’ market share .

There are various methods for conducting market research, and the usefulness of different sources and methodologies will depend on the nature of the industry and potential business. Data can come from a variety of sources: statistical agencies, economic and financial institutions, and industry sources, as well as direct consumer research through focus groups, interviews, surveys, or questionnaires.

A comprehensive business plan is like a blueprint for a business. It will help lay the foundation for business development and can assist in decision making, day-to-day operations, and growth. 

Potential investors or business partners may want to review and assess a business plan in advance of agreeing to work together. Financial institutions often request business plans as part of an application for a loan or other forms of capital. 

Business plans will differ according to the needs and nature of the company and only need to include what makes sense for the business in question. As such, they can vary in length and structure depending on their intended purpose. 

Business plans can generally be divided into two formats: traditional business plans and lean startup business plans. The latter is typically more useful for businesses that will need to adjust their planning quickly and frequently, as they are shorter and provide a higher-level overview of the company.

The process of funding a business can be as unique as the business itself—that is, it will depend on the needs and vision of the business and the current financial situation of the business owner. 

The first step in seeking funding is to calculate how much it will cost to start the business. Estimate startup costs by identifying a list of expenses and putting a number to each of them through research and requesting quotes. The SBA has a startup costs calculator for small businesses that includes common types of business expenses. 

From there, an entrepreneur will need to determine how to secure the required funding. Common funding methods include:

• Self-funding , also known as bootstrapping  
• Seeking funding from investors, also known as venture capital  
• Raising money by crowdfunding
• Securing a business loan
• Winning a business grant

Each method will hold advantages and disadvantages depending on the situation of the business. It’s important to consider the obligations associated with any avenue of funding. For example, investors generally provide funding in exchange for a degree of ownership or control in the company, whereas self-funding may allow business owners to maintain complete control (albeit while taking on all of the risk). 

The availability of funding sources is another potential consideration. Unlike loans, grants do not have to be paid back—however, as a result, they are a highly competitive form of business funding. The federal government also does not provide grants for the purposes of starting or growing a business, although private organizations may. On the other hand, the SBA guarantees several categories of loans to support small business owners in accessing capital that may not be available through traditional lenders.

Whichever funding method (or methods) an entrepreneur decides to pursue, it’s essential to evaluate in detail how the funding will be used and lay out a future financial plan for the business, including sales projections and loan repayments , as applicable.  

Legally, businesses operating in the U.S. are subject to regulations and requirements under many jurisdictions, across local, county, state, and federal levels. Legal business requirements are often tied to the location and structure of the business, which then determine obligations around taxation, business IDs, registration, and permits.

Choosing a Business Location

The location—that is, the neighborhood, city, and state—in which a business operates will have an impact on many different aspects of running the business, such as the applicable taxes, zoning laws (for brick-and-mortar, or physical locations), and regulations.

A business needs to be registered in a certain location; this location then determines the taxes, licenses, and permits required. Other factors to consider when choosing a location might include:

• Human factors : Such as the target audience for your business, and preferences of business owners and partners around convenience, knowledge of the area, and commuting distance
• Regulations and restrictions : Concerning applicable jurisdictions or government agencies, including zoning laws
• Regionally specific expenses : Such as average salaries (including required minimum wages), property or rental prices, insurance rates, utilities, and government fees and licensing
• The tax and financial environment : Including income tax, sales tax, corporate tax, and property tax, or the availability of tax credits, incentives, or loan programs

Picking a Business Structure

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

Common business structures include:

• Sole proprietorship : An unincorporated business that has just one owner, who pays personal income tax on profits
• Partnership : Options include a limited partnership (LP) or a limited liability partnership (LLP)
• Limited liability company (LLC) : A business structure that protects its owners from personal responsibility for its debts or liabilities
• Corporation : Options include a C corp , S corp , B corp , closed corporation , or nonprofit

Getting a Tax ID Number

A tax ID number is like a Social Security number for a business. Whether or not a state and/or federal tax ID number is required for any given business will depend on the nature of the business, as well as the location in which the business is registered.

If a business is required to pay state taxes (such as income taxes and employment taxes), then a state tax ID will be necessary. The process and requirements around state tax IDs vary by state and can be found on individual states’ official websites. In some situations, state tax IDs can also be used for other purposes, such as protecting sole proprietors against identity theft.

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

• Operates as a corporation or partnership
• Pays federal taxes
• Wants to open a business bank account
• Applies for federal business licenses and permits
• Files employment, excise, alcohol, tobacco, or firearms tax returns

There are further situations in which a business might need a federal tax ID number, specific to income taxation, certain types of pension plans, and working with certain types of organizations. Business owners can check with the Internal Revenue Service (IRS) about whether they need an EIN.

Registering a Business

Registration of a business will depend on its location and business structure, and can look quite different depending on the nature and size of the business. 

For example, small businesses may not require any steps beyond registering their business name with local and state governments, and business owners whose business name is their own legal name might not need to register at all. However, registration can include personal liability protection as well as legal and tax benefits, so it can be beneficial even if it’s not strictly required. 

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

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

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

Some businesses may decide to register with the federal government if they are seeking tax-exempt status or trademark protection, but federal registration is not required for many businesses.

Overall registration requirements, costs, and documentation will vary depending on the governing jurisdictions and business structure.

Obtaining Permits

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

• How to Start a Business: A Comprehensive Guide and Essential Steps 1 of 25
• How to Do Market Research, Types, and Example 2 of 25
• Marketing Strategy: What It Is, How It Works, and How to Create One 3 of 25
• Marketing in Business: Strategies and Types Explained 4 of 25
• What Is a Marketing Plan? Types and How to Write One 5 of 25
• Business Development: Definition, Strategies, Steps & Skills 6 of 25
• Business Plan: What It Is, What's Included, and How to Write One 7 of 25
• Small Business Development Center (SBDC): Meaning, Types, Impact 8 of 25
• How to Write a Business Plan for a Loan 9 of 25
• Business Startup Costs: It’s in the Details 10 of 25
• Startup Capital Definition, Types, and Risks 11 of 25
• Bootstrapping Definition, Strategies, and Pros/Cons 12 of 25
• Crowdfunding: What It Is, How It Works, and Popular Websites 13 of 25
• Starting a Business with No Money: How to Begin 14 of 25
• A Comprehensive Guide to Establishing Business Credit 15 of 25
• Equity Financing: What It Is, How It Works, Pros and Cons 16 of 25
• Best Startup Business Loans 17 of 25
• Sole Proprietorship: What It Is, Pros and Cons, and Differences From an LLC 18 of 25
• Partnership: Definition, How It Works, Taxation, and Types 19 of 25
• What Is an LLC? Limited Liability Company Structure and Benefits Defined 20 of 25
• Corporation: What It Is and How to Form One 21 of 25
• Starting a Small Business: Your Complete How-to Guide 22 of 25
• Starting an Online Business: A Step-by-Step Guide 23 of 25
• How to Start Your Own Bookkeeping Business: Essential Tips 24 of 25
• How to Start a Successful Dropshipping Business: A Comprehensive Guide 25 of 25

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Blog Feature Updates

Startup Business Plans 101: Your Path to Success

By Jay Nair , Jul 24, 2023

It’s time — you’ve got a promising idea and you’re now prepared to invest the necessary effort to turn it into reality. Startup business plans are vital hack tools that will guide you through your entrepreneurial journey and a business venture with clarity and purpose.

Though vital, business planning doesn’t have to be a chore. Business plans for lean startups and solopreneurs can simply outline the business concept, sales proposition, target customers and sketch out a plan of action to bring the product or service to market. These plans will serve as strategic documents outlining your company’s vision, mission statements, business objectives, target market, financial forecasts and growth strategies.

To simplify the creation of a robust business plan as an entrepreneur, you can harness the power of a business plan maker . This invaluable tool streamlines the process and ensures a polished and well-organized presentation.  Startup business plan templates provide pre-designed frameworks that can be customized to suit your specific industry needs, saving valuable time and effort while preserving the essential structure of a comprehensive business plan.

Ready to begin? Let’s go!

Just so you know, some of our business plan templates are free to use and some require a small monthly fee. Sign-up is always free, as is access to Venngage’s online drag-and-drop editor.

Click to jump ahead:

• Laying the foundation of your startup business plan
• Business plan executive summary
• Writing your business description
• Marketing & sales strategies
• Startup operational plans
• Financial plans – forecasting and projections
• Team and management
• Appendix and supporting documents

FAQs on startup business plans

• Use Venngage to create your startup business plan

Preparation and research: 6 steps to laying the foundation of your startup business plan

• What problem does your product or service solve? 
• Who are your target customers? 
• What differentiates your offering from existing solutions in the market? 

This self-reflection will help you establish a clear direction for your startup.

• Next, conduct market research to gather valuable insights about your target market , including demographics, preferences, and purchasing behavior . This data will enable you to tailor your product or service to meet the specific needs of your customers. Identify trends, industry growth projections, and any potential barriers or challenges you may encounter.
• Competitive analysis is another critical aspect of preparation and research. Study your competitors to understand their strengths, weaknesses, and strategies. Analyze their pricing, marketing tactics, customer experience, and product/service features. This analysis will allow you to identify gaps in the market and position your startup to offer a unique value proposition .
• Financial research is equally important during this phase. Calculate the costs associated with starting and operating your business , including overhead expenses, production costs, marketing expenses, and employee salaries. Assess potential revenue streams and estimate your expected sales. This financial analysis will help you determine the feasibility of your business idea and outline a realistic financial plan.
• Additionally, gather information about legal and regulatory requirements that apply to your industry and location . Understand the necessary permits, licenses, and certifications you need to operate legally. Complying with these regulations from the outset will prevent potential setbacks or legal issues in the future.
• Finally, organize your findings and insights into a coherent business plan. Create your business plan outline , list your business plan goals, strategies, target market, competitive analysis, marketing plan, financial projections and any other relevant information. This compilation will serve as a roadmap for your startup, guiding your decisions and actions moving forward.

You’ve just encountered a wealth of information and are well on your way to becoming a seasoned business owner! This can sometimes feel overwhelming. But don’t worry, take a moment to breathe deeply and remember how far you’ve come. You’ve got this!

To help you condense and organize your essential points, I have brilliant one-page samples of business plan layouts and templates that will capture everything in a concise format.

Knowing when to use a one-page business plan versus a more comprehensive plan depends on various factors. A one-page business plan is ideal for providing a quick overview, saving time, and internal planning. However, it may not suffice for detailed information, complex business models, or meeting external stakeholders’ expectations.

Ultimately, consider the purpose, audience, and complexity of your business when deciding whether to utilize a one-page business plan or opt for a more detailed approach.

Executive Summary: Your Startup’s Elevator Pitch

First impressions are crucial, and a concise yet comprehensive executive summary is your chance to grab potential investors’ attention.

To create a compelling elevator pitch, consider the following key elements:

Problem Statement : Clearly articulate the problem or pain point that your startup addresses. Emphasize the significance of the problem and the potential market size

Solution : Concisely describe your innovative solution or product that solves the identified problem. Highlight its unique features or benefits that differentiate it from existing alternatives.

Target Market : Define your ideal customer segment and outline the market potential. Demonstrate a deep understanding of your target audience’s needs, preferences, and behavior.

Competitive Advantage : Showcase the competitive edge that sets your startup apart from competitors. This could include intellectual property, strategic partnerships, cost advantages, or disruptive technology.

Business Model : Briefly explain how your startup generates revenue and sustains profitability. Outline your monetization strategy, pricing model, and any recurring revenue streams .

Traction and Milestones : Highlight any significant achievements or milestones reached by your startup. This could include customer acquisitions, partnerships, product development progress, or market validation.

Team : Showcase the expertise and qualifications of your founding team or business partners. Highlight key members and their relevant experiences demonstrating their ability to execute the business plan.

I can sense your eagerness to dive right in! To expedite your progress, I’m excited to present you with a collection of meticulously crafted executive summary templates. These templates have been thoughtfully designed and structured by Venngage designers, ensuring seamless integration into your thorough business plan. All you need to do is infuse them with your brilliant startup ideas, and you’ll be well on your way to success!

Now, remember that there’s still a ton of work to be done. Let’s take a moment to regroup and ensure we’re on the right track. Before diving into the process of writing your business plan , it’s imperative to gather a wealth of essential information. Conducting comprehensive research is key, and it should encompass the following aspects:

How to assess your target audience

To gain comprehensive insights into your potential user base, creating a user persona report is invaluable. This persona guide report will help you develop a detailed understanding of various user profiles, enabling you to tailor your products or services to meet their specific needs and preferences.

Understanding Your Market and Competition

Analyze your market and any trends relevant to your startup. Research your competitors, their strengths and weaknesses, and identify what differentiates your offering from the competition.

Developing a Unique Value Proposition

A business Unique Value Proposition (UVP) is a concise statement that communicates the unique advantage a product or service offers over competitors, addressing a specific problem or need. It highlights the distinctive value and benefits customers can expect, helping businesses attract and retain customers by differentiating themselves in the market.

Your unique value proposition (UVP) is the cornerstone of your startup, defining what sets you apart from your competitors. A strong UVP focuses on the specific benefits and solutions your startup offers to customers.

Company Description: Painting the Picture

Your company description allows you to showcase your startup’s unique features and provide more in-depth details about your business. This section should include:

The Purpose of the Company Description

Clarify the purpose of your business, your goals and how your startup is uniquely positioned to achieve them.

Essential Information to Include

Include details such as your company’s legal structure, location and a brief history of any founders or key personnel.

Showcase Your Company’s Unique Features

Emphasize the unique aspects of your startup, explaining how these features translate into a competitive advantage.

Allow me to provide you with a dash of inspiration to ignite the momentum for your startup business plan:

When it comes to showcasing your company’s unique features, keep in mind that it is essential to emphasize and highlight the distinctive aspects of your startup . Clearly articulate how these features set your company apart from competitors and translate into a tangible competitive advantage . 

Whether it’s through cutting-edge technology, innovative business models, exceptional customer service, or a combination of factors, conveying the value and impact of these unique features is crucial. By effectively communicating the benefits they bring to customers, investors, and partners, you can demonstrate the significance of your offerings and differentiate yourself in the market.

Product/Service Line: What You’re Bringing to the Table

This section highlights the finer details of your product or service offerings:

Detailing Your Product/Service Offerings

Provide a thorough description of your products/services, highlighting key features and their intended use.

Highlighting Features, Benefits, and Solutions

Demonstrate how your startup’s offerings solve specific problems or address customer needs through an analysis of product features and associated benefits.

Defining Your Pricing and Revenue Model

Outline your startup’s pricing strategy and how it aligns with the overall business model. Detail any plans for scaling or expanding your revenue sources in the future.

Presenting Your Market Research Findings

Share insights from your market research, including target customer demographics, market size, and growth potential.

Identifying Market Trends and Opportunities

Discuss current trends, emerging opportunities, and how your startup will capitalize on these developments.

Marketing and Sales Strategies: Spreading the Word

Developing a robust marketing and sales strategy plan aligns with your overall business strategy and ensures steady growth. Marketing planning will be an essential part of your journey once you’ve got your business plan tight-knit! Also, creating a marketing strategy can be the most fun part of your business plan!

Developing a Comprehensive Marketing Strategy & Plan

• Outline Specific Marketing Goals : Clearly define your marketing objectives, whether it’s increasing brand awareness, driving website traffic, generating leads, or boosting sales . Set measurable targets to track progress.
• Identify Target Audience : Conduct thorough market research to identify your ideal customer profiles. Understand their demographics, behaviors, preferences, and pain points. Tailor your marketing messages to resonate with their needs.
• Select Effective Marketing Channels : Consider both digital and traditional channels that align with your target audience and marketing goals. This may include online advertising, social media marketing, content marketing, search engine optimization (SEO), email campaigns, print media, events, or partnerships.
• Craft Compelling Messages : Develop persuasive and consistent messaging that highlights the unique value proposition of your products or services. Clearly communicate how your offerings solve customer problems or improve their lives.

5 Tips for Effective Sales Techniques and Growth Strategies + free templates

• Define Your Sales Strategy : Outline the approach and tactics your sales team will use to reach and convert customers. This may involve direct sales, channel partnerships, online sales, or a combination of strategies. Specify your sales process, including lead generation, qualification, nurturing, and closing.
• Expand Your Customer Base : Identify opportunities to expand your customer reach. Consider targeting new customer segments, entering new geographic markets, or exploring untapped market niches. Develop strategies to attract and engage these potential customers.
• Penetrate New Markets : Assess the feasibility of expanding into new markets or verticals. Market research will help you understand the dynamics, competition, and customer needs in these markets. Adapt your marketing and sales strategies accordingly to effectively penetrate and capture market share.
• Innovate Products/Services : Continuously evaluate and enhance your product or service offerings to meet evolving customer demands. Identify areas for innovation or improvement and develop a roadmap for launching new features, versions, or complementary offerings.
• Perform a SWOT analysis : By conducting a sales SWOT analysis , you will gather valuable insights to enhance your department’s performance. This analysis involves evaluating your company’s strengths, weaknesses, opportunities, and threats, enabling you to identify areas for improvement and capitalize on advantageous factors in the market.

Here’s a hack to get you organized – Get right into it with the help of these growth strategy templates and strategic planning templates :

Operational Plan: How Your Startup Will Run

Define an efficient and scalable operational plan, keeping in mind the following points:

Defining an Efficient and Scalable Plan

Outline the day-to-day operations, including processes, timelines, and necessary resources.

Legal Considerations for Your Startup Business

Identify any legal requirements or considerations, such as licenses, permits, or regulations that may apply to your startup.

Key Elements of Supply Chain Management and Logistics

Discuss supply chain and logistical aspects relevant to your business. Include details on how you plan to manage and scale these processes.

Here’s a kickstart on how you can structure your operating plans:

Financial Projections: Crunching the Numbers

A startup’s financial projections are vital in securing investor buy-in. This section should address:

The Importance of Financial Forecasting and Budgeting

Explain the significance of accurate financial forecasting, budgeting, and the assumptions made in your projections.

Identifying Key Performance Indicators (KPIs)

Highlight the KPIs used to gauge your business’s financial health and growth trajectory.

Outlining Funding Requirements

Detail the amount and type of funding your startup requires , including how the funds will be allocated and how this investment positions the company for growth.

Team and Management Structure: Building Your Dream Team

Your startup’s success depends on the people behind it. This section should cover:

Tips for Building the Right Team

Share your strategy for assembling a skilled team that supports your startup’s vision and growth trajectory.

Founders’ Background and Roles

Provide an overview of the founders’ backgrounds, their roles within the company, and how their skills contribute to the startup’s success.

Organizational Structure and Key Management Personnel

Outline your startup’s organizational structure, including any key management personnel who play a pivotal role in day-to-day operations.

Appendices and Supporting Documents: Backing Up Your Plan

Include any other relevant supporting documents, such as:

• Research data, market analysis, or competitor analyses.
• Financial statements, budgeting or forecasting data, and other financial documentation.
• Legal documents, agreements or contracts, and any patent or trademark information.

Finally, remember to review and update your business plan regularly as the industry, market, and competitive landscape evolve!

1. Why is a business plan essential for a startup?

A startup business plan is crucial for a startup because it provides a framework for strategic decision-making, facilitates financial planning, helps assess risks, aligns teams, communicates your vision, and ensures effective resource allocation. 

2. What should a startup business plan include?

A startup business plan should include:

• Vision and Direction : Set clear goals and objectives, and outline strategies to achieve them. With a well-defined plan, you will stay focused, make informed decisions, and ensure alignment with your vision.
• Market Analysis : A business plan necessitates thorough market research to understand your target market, identify competition, and assess product/service demand. These insights enable you to tailor offerings, meet customer needs, and gain a competitive edge.
• Financial Planning : By constructing a financial roadmap through projected statements such as income, cash flow, and balance sheets, a business plan unveils the expected revenues, expenses, and profitability. This comprehensive planning not only anticipates challenges and sets realistic goals but also serves as a magnet for attracting investors and securing funding.
• Risk Assessment : Devise strategies for risk mitigation and contingency planning. By proactively doing this, you can significantly enhance the likelihood of success by anticipating and effectively addressing potential obstacles.
• Communication and Team Alignment : From fostering effective communication with both internal and external stakeholders to aligning team members and showcasing your startup’s unique value proposition, a business plan plays a crucial role. It enables you to articulate target market insights, competitive advantages, and growth strategies to potential investors, partners, and employees.
• Resource Allocation : A business plan helps you identify the resources required to launch and operate your startup successfully. It includes an assessment of your human resources, technology needs, infrastructure requirements, and other key resources. By understanding your resource needs, you can allocate them effectively, ensuring that you have the necessary assets to execute your business strategy.
• Adaptability and Flexibility : Your business plan should be flexible enough to accommodate changes and adapt to new circumstances. Startups operate in dynamic environments, and a well-designed plan allows you to monitor progress, evaluate outcomes, and make adjustments as needed. This agility enables you to seize new opportunities and navigate challenges effectively.

3. What is the ideal length for a startup business plan?

The optimal length for a startup business plan typically depends on the specific requirements and intended audience, but a concise and focused plan of around 20 to 30 pages is often recommended.

4. How to write a good startup business plan?

To write a good and effective startup plan, include an executive summary, company description, market analysis, detailed products/services description and a clear marketing and sales strategy. Also incorporate a comprehensive financial plan, outline your organizational structure, and demonstrates your team’s expertise and capabilities. Your plan should be well-researched, concise, and compelling, with a focus on your company’s unique value proposition and market opportunity, making it attractive to investors and stakeholders.

Utilizing Venngage templates & other tools for success

A visually appealing and professional business plan needn’t be a daunting task. Leverage tools like Venngage Business Plan Maker for effective templates that cater to various industries and streamline the process. 

• Leveraging Venngage for Visually Appealing and Professional Business Plans

Venngage offers a range of templates designed specifically for business plans, allowing you to craft a polished and visually engaging plan without any design experience. Simply choose a template, customize it to suit your startup’s branding, and populate it with your content.

• Exploring Additional Resources and Tools for Entrepreneurs. In addition to Venngage, several other resources and tools can assist entrepreneurs in crafting the perfect business plan. Examples include:
• Small Business Administration (SBA) – Offers guidance on writing business plans and provides templates and resources for each section.
• SCORE – A nonprofit organization providing mentorship, workshops, and other resources for entrepreneurs.
• Industry-specific resources – Research relevant professional organizations, industry publications, and blogs to stay up to date on industry trends and insights.

Embarking on the entrepreneurial path may present formidable challenges, yet it offers abundant rewards in various aspects. Embrace the art of continuous learning, delving not only into the essence of your business idea but also immersing yourself in the vast world that surrounds it. Cultivate a genuine passion for understanding every facet of your enterprise, for it is through this journey of exploration that you will uncover invaluable insights and experience the true fulfillment of entrepreneurship.

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Startup Business Plan

Why Choose a Traditional Business Plan?

Startups are very different from established businesses. The most obvious reason is that startups don’t have any previous data on how to run their business. This is precisely why a traditional business plan will work for any startup.

There are some vital differences between a traditional business plan and a simple business plan. These differences exist due to several reasons:

• Lack of a definite business model In the early stages, it’s difficult to state the structure of your business model because your business idea and its execution are still in the testing phase. Only after a certain period of trial and error, you would be able to describe your business model.
• No performance history While creating financial projections, an established company examines its credit history, past sales, revenue, expenditure, and growth rate. In contrast, a startup needs to begin with assumptions. You have to predict sales, costs, expenses, growth rate, etc. To increase the accuracy of your predictions, you need to gather reliable factual data to back your predictions.
• Increased risk Startups have an increased risk factor compared to established businesses. This is because startups lack a loyal customer base, an expert team, brand recognition, etc. Devise strategies to overcome the potential risks and challenges that may come your way in the future.

These are the reasons why you need a dedicated business plan for your startup that helps focus on the essential elements while setting up your business.

Before you start writing your business plan, go through the below checkpoints to make sure you are ready for it.

Tips to Create a Business Plan for Your Startup

Writing your first business plan can be overwhelming and confusing. However daunting it may seem, it is still something you can’t avoid.

• Use a startup business plan template: It can be hard to start from scratch, especially when you are unsure of where to begin. A business plan template helps you get started quickly. You can use it to navigate and structure your plan according to your standards
• Tailor your plan: After choosing a template, it is essential to customize it to your business requirements. Remove sections that are irrelevant and create your business plan based on the purpose you need it for. For instance, if you are building a business plan to get funding, the financial section of your business plan needs more emphasis.
• Research thoroughly: Every section of your business plan needs extensive research. Collect data about your market, industry, and competitors. Study their pricing strategies and market trends. Run surveys and talk to your potential customers to understand their needs and problems.
• Compose according to your objectives: It can be easy to lose sight of your objectives and get lost in the process of writing your business plan. To avoid that, make sure that your marketing strategies, operations, and financial goals are aligning with your business objectives.
• Ask for feedback: Once you finish creating a business plan, get your team and various experts to provide your feedback. This helps you revise and make adjustments to your plan before presenting it to an investor or client.
• Be prepared to answer questions: Before you present your startup business plan, it is crucial to prepare yourself to answer any questions related to your plan. It can be because the reader of your business plan may not understand a specific topic or want to test your knowledge. Regardless, keep yourselves informed and ready.

Download a sample startup business plan

Need help writing your business plan from scratch? Here you go;  download our free startup business plan pdf  to start.

It’s a modern business plan template specifically designed for your house-flipping business. Use the example business plan as a guide for writing your own.

The Quickest Way to turn a Business Idea into a Business Plan

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

In conclusion, a business plan is an extremely handy device to get the best out of your efforts if you use it the right way. Planning your business involves consideration of several aspects that make up your business like the type of your industry, the stage of your business, the number of competitors, market size, etc.

Nonetheless, business planning always acts as a plus while tackling the challenges your business will face. It provides you with a proper structure to deal with your business problems head-on.

So, are you thinking of starting your own business? Then go ahead and start planning!

After getting started with Upmetrics , you can copy this startup business plan template into your business plan, modify the required information, and download your startup business plan pdf or doc file. It’s the fastest and easiest way to start writing a business plan for your new startup.

Related Articles On Business Plan Writing

• How to Write a Business Plan Step by Step
• Deciding the Ideal Length of Your Business Plan
• How to Write an Operations Plan for Your Business Plan
• Browse Through 400+ Free Business Plan Examples
• How to Design a Detailed Table of Contents for Your Business Plan

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How to Write a Business Plan for a Startup

Last Updated: December 22, 2023 Fact Checked

This article was co-authored by Jack Herrick . Jack Herrick is an American entrepreneur and wiki enthusiast. His entrepreneurial projects include wikiHow, eHow, Luminescent Technologies, and BigTray. In January 2005, Herrick started wikiHow with the goal of creating "the how-to guide for everything." He has a Master of Business Administration (MBA) from Dartmouth College. There are 13 references cited in this article, which can be found at the bottom of the page. This article has been fact-checked, ensuring the accuracy of any cited facts and confirming the authority of its sources. This article has been viewed 115,692 times.

As a startup, you will need a business plan. For example, you will need to show your plan to a bank if you are seeking a loan. You also need to show the plan to any investor. Business plans are helpful because they force you to step back and analyze your business critically. You should consider your target market, the products or services you will offer, and your projected finances. Writing a business plan isn’t difficult, though it will require considerable research and planning.

Explaining Your Marketing Plan

• Your mission. What is your driving goal every day? Don’t simply write, “Make money.” Identify how you will make money. For example, you can write: “Our mission is to offer residents of the Lakeview neighborhood the best day spa experience in the Near North Side of Chicago. We are committed to providing value and quality in a fun atmosphere that is never predictable.”
• Your goals. For example, a day spay might have the following goal: “To attract a minimum of 35 customers each day in the first year of operations.” Make your goals as concrete as possible.
• Description of the industry. Explain whether the industry is growing or poised for growth in the short and long term.
• The factors that will drive your success. How will you set yourself apart? For example, “You All Day will separate itself from the pack based on the owner’s deep experience running a day spa in Seattle for ten years. This experience includes familiarity with successful marketing techniques and trends analysis.”
• Your legal form. Are you a sole proprietorship, partnership, limited liability company (LLC), or corporation? Also explain why you selected this form.

Jack Herrick

Don’t skimp on how much energy and time you put into your mission. When asked about creating wikiHow’s mission, Jack Herrick, founder of wikiHow, responded: “We had the whole management team — alongside members of the wikiHow community — reviewing it, discussing it, and going back and forth on the wording. Those two sentences were many hours of work.”

• You can search for industry information in other places. For example, talk to people in your industry at trade shows. Also search online. Many industries have trade associations, which have websites with information.
• For example, when analyzing the day spa industry, you might want to talk about how it is growing because more upper-income men in urban areas are visiting. (If that’s true).
• By analyzing the industry, you gain insight as to your likely target market and how you can reach them.

• Age. What is the average age of your likely customer? If you don’t know, then visit similar businesses and note the ages of the clientele.
• Gender. Will men or women—or both—primarily use your products or services?
• Location. Generally, your market will be located near your business. However, if you have a web-based business, your target audience could have no geographic boundaries.
• Income level.
• Occupation. For example, a day spa might target stressed-out white collar professionals.
• Education level. There is often a link between education, income, and occupation—though not always. For example, a discount bookstore might target an educated audience that nevertheless has a lower income.

• To find competitors, look in the phone book and do a general Google search. Make sure to read their website and stop into the business.
• If you’re opening a restaurant, you’ll want to see a sample menu, as well as the hours of operation.
• Also identify indirect competitors. For example, a day spa is competing with more than other spas. You also compete with any business that offers relaxation, such as massage parlors or meditation centers.
• Name of your competitor.
• What you offer that they don’t. Think about products and services, but also location, ease of ordering, etc. What will make the consumer experience different at your business?
• What they offer that you don’t. Identify why you don’t offer their products or services. For example, they may be serving multiple niches while you are focused on only one. Alternately, they may have a favorable location.

• Whether you will sell pizza by the slice, as whole pies, or both
• How big your pizzas will be
• What toppings your customers can offer
• If you will have take-out and delivery options
• What other food items will be sold

• What type of advertising or promotion will you use? How often will you use paid promotion?
• What other promotion other than paid advertising will you use? For example, you might use social media, professional networks, etc.
• Will you create a logo and use it on cards, letterhead, websites, etc.?
• How large will your promotional budget be?

Discussing Your Business Organization

• State how much you expect to pay each employee in your first three years of business.
• Also name your professional support, such as your business lawyer, accountant, and insurance agent. Professionals are independent contractors you use but don’t employ. Calculate how much you expect to spend on each professional.

• You might write: “Lisa Jones is the sole proprietor of You All Day and will run day-to-day operations. As a certified massage therapist, she ran the Relax! chain of day spas in the Greater Seattle area for ten years. A former accountant, Lisa has an MS in accounting from the University of New Hampshire and worked as a CPA briefly before going into the spa business.”
• If you are asking for a loan, then include resumes for each owner. You can put them in the appendix at the end of the document.

• You should create professional-looking financial statements using a spreadsheet.
• You’ll have to gather quite a bit of information to make the financial statement. For example, you will need information on your assets, investments, and personal debts.
• You might also want to get a free copy of your credit report and review it as you draft your business plan.

Analyzing Business Finances

• Common startup costs include insurance, licenses, equipment, advertising, and employee expenses. [9] X Trustworthy Source U.S. Small Business Administration U.S. government agency focused on supporting small businesses Go to source
• Also identify the source of the startup capital. For example, if your startup has three initial owners, state how much each is contributing to the business and their ownership percentage.
• If you need financing, state how much. Include the terms of any proposed loan.

• You’ll need to make some assumptions in order to come up with a forecast of sales. You should explain these assumptions in your business plan.
• For example, you can write, “We assume continued interest in day spas in the Chicago area.”
• Another assumption is the overall health of the economy. “Although the Chicagoland economy has grown more slowly than other regions of the country, we assume that the Chicago economy will grow on par with other large metropolitan areas in the coming decade.”
• You can also include a four-year projection, though this is optional.

• Also talk about how you will build up your cash reserves. For example: “In addition to normal cash flow, we will focus on obtaining sufficient cash reserves for emergencies. These reserves include a line of credit with a bank, which we can use when business is slow. We will also invest excess cash in certificates of deposits at our bank.”

• Fixed costs: these don’t vary depending on your sales volume. For example, your rent, employee salaries, and insurance are fixed costs.
• Variable costs: these fluctuate depending on your sales and include shipping, inventory, and manufacturing costs.

Finishing Your Business Plan

• Add a cover page to your document. You can title it “[Company Name]’s Business Plan” or “Business Plan for [Your Name].” If you have a logo, include that too.

• For example, you can write, “You All Day is a start-up dedicated to providing men and women in Chicago a high-quality day spa experience at an affordable price. We specialize in pedicures, manicures, massage, and herbal aromatherapy. The Near North Side of Chicago has grown substantially over the past 20 years, with young, educated millennials settling in to start families. This area is currently under served, and we hope You All Day can meet the demand of the local market.”

• Executive Summary
• Company Description
• Industry Analysis
• Market and Competition
• Products and Services
• Marketing and Sales Plan
• Operations and Management
• Financial Forecasts
• Exhibits/Appendix

• Review for typos and other errors. An accountant should check your numbers to make sure they are accurate.
• Analyze the overall presentation. Is the information crammed in so that the document is tiring to read? If so, spread out the information so that there is a lot of white space on each page.
• You can also show the plan to a business adviser. If you live in the U.S., you can show it to someone at your nearest Small Business Development Center, which provides help drafting business plans. You can find your nearest SBDC by visiting this website: https://www.sba.gov/tools/local-assistance/sbdc .

• You might want to include tabbed partitions between each section of your business plan. This will make it easier for someone to flip through it and find what they are looking for.

Expert Q&A

• Don’t be afraid to change your business plans as you research and draft the document. That’s one of the reasons for writing the plan in the first place. For example, you might have intended to target women as consumers only to realize that there are growth opportunities with men. You can adjust your plans accordingly. Thanks Helpful 1 Not Helpful 0

You Might Also Like

• ↑ https://business.vic.gov.au/business-information/marketing-and-sales/increasing-sales-through-marketing/do-market-research
• ↑ https://openstax.org/books/entrepreneurship/pages/7-5-reality-check-contests-and-competitions
• ↑ https://www.sba.gov/business-guide/plan-your-business/market-research-competitive-analysis
• ↑ https://www.indeed.com/career-advice/career-development/business-plan-product-description
• ↑ https://business.gov.au/planning/business-plans/develop-your-marketing-plan
• ↑ https://openstax.org/books/entrepreneurship/pages/11-4-the-business-plan
• ↑ https://www.sba.gov/business-guide/plan-your-business/calculate-your-startup-costs
• ↑ https://www.alberta.ca/preparing-financial-projections-and-monitoring-results.aspx
• ↑ https://www.pwc.com/gx/en/services/entrepreneurial-private-business/small-business-solutions/blogs/preparing-a-cash-flow-forecast-simple-steps-for-vital-insight.html
• ↑ https://www.sba.gov/business-guide/plan-your-business/write-your-business-plan
• ↑ https://smallbusinessbc.ca/article/5-reasons-business-plan-review/

About This Article

To write a business plan for a startup, break your plan up into several sections, including an executive summary, a description of your company, an industry analysis, market and competition information, your products and services, your marketing and sales plan, operations and management information, your financial forecasts, and finally, an appendix. To format your business plan, use a professional font, like Times New Roman, and include a cover page with your company's name and logo on it. To learn how to write each section of your business plan, read on! Did this summary help you? Yes No

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How to Write a Startup Business Plan

May 28, 2022 - 10 min read

A startup business plan is an outline of your ideas and strategies for what you’ll need to do to start, manage, and even complete your startup’s mission. Creating one might sound simple enough, but because it’s a startup’s roadmap for success, it can be a complex document to create. 

Writing a business plan can make a world of difference for entrepreneurs who desire external funding. It involves determining your target customers, understanding what makes them tick, and figuring out how to reach them through marketing campaigns. 

In this blog post, we’ve explained why you should have a startup business plan, different types of startup business plans, and we’ve included 12 of the most effective tips for writing a startup business plan. If you’re ready to start with now, we have a product launch template to get you started quickly. 

What is a startup business plan?

A startup business plan is a written document that outlines your ideas and strategies for launching, managing, and eventually exiting your new venture. 

A well-constructed business plan can be crucial to the success of any entrepreneurial endeavor . As you prepare your proposal, keep in mind that it will evolve as you learn more about your market.

To start, create an outline of the most important items you'd like feedback on before writing anything down officially.

Then ask yourself these questions:

• What do I want?
• Why does my company exist?
• How will I make money?
• What are my long-term goals?

A detailed business plan helps you set milestones for measuring success. You can share the plan with investors who may want some reassurance on the viability of their investment in your company.

The best way to create a successful startup business plan is by including everything in an organized and easy-to-read document — marketing strategies, financial projections, team bios, timelines, and more.

What is a lean startup business plan?

A lean startup business plan is a method for developing products that relies on iterative experimentation to reduce uncertainty. 

It has been used by companies such as Google , Amazon, and Facebook in the early stages of their development, and involves testing your idea with real customers early in development.

Lean startups are less likely to fail because they have tested their product or service with live feedback from consumers. Doing this allows them to make changes quickly without wasting resources on something no one wants.

The goal is not to build an extensive business plan but rather a "lean" one that can be changed based on customer feedback and then re-evaluated in regular intervals until it reaches market potential — or fails.

A lean startup business plan is a strategy that focuses on getting a product in front of customers as quickly and cheaply as possible. Use the lean startup business plan to validate your ideas before wasting time and resources.

Why do you need a small startup business plan?

A small startup business plan is one of the most important steps in building a company. Apart from helping you to focus on company goals, it aids in obtaining feedback from potential partners and keeps the team on the same page.

The best thing about starting small? You can change course at any time! If you need help developing or tweaking your small startup business plan, use this guide for entrepreneurs to get started.

You've built a product and you're ready to take the next step, but what's your plan? First, you need a strategy in place. Do you know how much money it will cost, or where exactly that funding should come from? What about marketing strategies for getting customers in the door? 

You’ll also need to find ways to retain them afterwards so they keep coming back again and again (and spending more).

Obtain external funding

If you want to get funding from lenders or investors, you need a startup business plan. Lenders want to make sure they're investing in a company that will last and grow.

A well-organized idea shows passion for its purpose and outlines clear goals for helping customers. At the same time, having an exit strategy is also important.

Making a plan for when things don’t pan out as desired lets investors understand how much value there can be while giving customers (and yourself) peace of mind.

Understand your target market

One key piece of your business plan is knowing how to conduct a market analysis. To do this, consider the industry, target market, and competitors. 

Are there any market trends or competitor factors that can affect your business? Review them closely and get ready to make required changes to your business plan.

Prioritize high ROI strategies

In business, ROI is important. Any business that doesn’t generate as much cash as it burns is likely to fail.

With a startup business plan in place, the strategies with the highest ROI become crystal clear. You'll know exactly what to tackle first and how to prioritize the rest of your tasks.

Accelerate financial health

Business plans are not crystal balls, but they can help forecast your financial health. Planning for expenses is vital to keep operations steady and identify problems as soon as possible. 

Cash flow projections can help you see if goals are achievable or highlight upcoming issues that need correction before it's too late.

How to write a small startup business plan

Use this guide for entrepreneurs to develop or tweak a startup business plan. By following this easy six-step process, you'll soon have a clear path to startup success.

1. Clarify the startup vision, mission, and values

The first step to writing a startup business plan is understanding the startup itself.

Once you know what your startup does, ask yourself why. What is the startup's mission? What problem will it help customers solve? The startup's mission statement helps define its reason for existing.

It’s usually expressed in a simple sentence, but can also be written as a short paragraph.

Try to answer these questions: What does your startup do? How will it make money? How quickly do you hope it will grow? Are there any significant milestones or deadlines that need to be met?

2. Outline the executive summary

Now that you have an idea for your startup, its mission, and a vision in mind, it's time to write your startup business plan executive summary.

Keep it simple and precise. Begin by writing a one-sentence startup business plan introduction that showcases the core customer need/pain point and how you propose to solve it.

3. Develop startup goals and milestones

Next, write down the milestones and goals for your startup business plan. This is a crucial step that many entrepreneurs forget when they're starting out.

Do you want to focus on getting new customers? Or attaining a specific revenue number?  Without clear short-term goals, it can be hard to know how to prioritize startup tasks.

4. Write a company description

Answer the two fundamental questions — who are you and what will you do? Then, give an introduction to why you're in business.

Provide a summary of introspective goals, clarifying intangible aspects such as values or cultural philosophies. Make sure to mention:

• Proposed business structure (limited partnership, sole proprietorship, incorporated company, or a general partnership)
• Business model
• Business vision and mission statement
• Background information of your team members

5. Conduct market analysis

Choosing the right market is crucial to your organization’s success. There are different kinds of products and services that a business can offer and each has particular requirements for a successful market fit.

If you choose one that doesn't have a large enough customer base or is not profitable enough, your company may end up struggling for every sale.

Ensure that there is a clear market niche — an ideal audience of customers with a need or a pain point that your business can help solve.

6. Develop startup partnerships and resources

When you're launching a small startup, one of the most important things that your business needs is capital. There are several ways to get going on this front.

When thinking about sources of funding for startups , consider startup grants, startup loans, startup investors, and startup accelerators.

7. Write a startup marketing plan and startup budget

Your startup business plan is almost complete! All that's left is to create a startup marketing plan and budget. Your startup marketing plan will help you define your company’s target audience and brand image.

The startup budget is an integral part of any startup that helps you take the guesswork out of writing expenses.

Examples of startup business plans

Business plans differ based on the nature of the business, target market, competitive advantage, delivery of product/service, scope, and size.

Though the core business plan template remains the same, the content and flow change. Here is an example of an accounting firm's business plan:

Vision statement

At our company, ABC Accounting Services LLC, we work hard to provide the best service and build a strong team. Our vision is for this brand to be recognized as #1 throughout NYC by both smaller businesses and larger corporations.

Our values are reflected in all that we do: integrity (ethical behavior), service (giving top priority to clients' needs), excellence ("doing it right"), teamwork (working together).

Executive summary

ABC Accounting Services LLC is the premier accounting firm in New York City and will handle various financial services. We specialize in audits, bookkeeping, tax preparation/compliance work, and budgeting assistance with high-quality consulting.

Business structure

ABC Accounting Services LLC will be structured as an LLC — a Limited Liability Company in the state of New York. It will provide accounting, bookkeeping, taxation, auditing, and compliance-related services to small, medium, and large enterprises situated in New York City.

Marketing strategy and competitive advantages

Despite the fact that there are many established accounting services firms in our industry, we have a great chance of becoming successful because of the high demand for financial consulting. 

Often, small businesses don't need full-time employees but would rather hire an accounting service provider like us to handle their bookkeeping and tax returns on time every year.

It is best to find a unique niche or carve out your own market in the financial consulting services industry. If you're able to create an identifiable brand identity for your accounting business, then you will likely see less competition from other firms.

Startup milestones

ABC Accounting Services LLC will focus on delivering an exceptional client experience to grow the business and expand market share.

Startup business plan template

Here's a template you can follow when creating your startup business plan:

Top tips for writing a startup business plan

The following tips will help you create a compelling startup business plan without getting overwhelmed.

Know your audience

To write an effective business plan, tailor your language and level of detail to match the audience reading it. 

Have a simple and clear goal

If you have a goal of securing funding for your business, it will be an uphill task with lots of work and research.

Simplifying and breaking down bigger goals into smaller, actionable tasks will assist you in getting through them faster.

Spend time researching

Avoid assuming anything about your target audience, product/service, or the market need.

Spending adequate time and effort on research from primary and secondary sources will help you develop an accurate business plan.

Build a startup toolkit

The process of creation becomes easier if you have the right startup tools and software by your side. Pick the right ones that will help you in your journey.

Keep it precise

Short and easy-to-read business plans are best kept within 20 pages. If you have additional documents, consider adding them as appendices or provide a link if available online.

Ensure tonal consistency

Keep the tone consistent by having just one author write your startup business plan. Otherwise, be sure to edit it thoroughly before you finalize it.

Add reference points

All information regarding the market, your competitors, and your customers should reference authoritative data points.

Be ready to pivot

A business plan should be fluid and flexible. Think of it as an evolving document that will continue to change over time.

How to create a business plan with Wrike

A good business plan is a powerful tool and can be a key predictor of future progress, but simply filling in a startup business plan won’t help you achieve success. You need to create action steps with accountability that will help you reach your goals. 

Wrike’s project management software can help your organization deliver successful projects and maximize individual and team productivity, and our product launch template can help you turn your startup business plan goals into actionable steps. 

Start a free trial of Wrike today to see how it can help to simplify work, showcase progress to stakeholders, and achieve startup success.

Yuvika Iyer

Yuvika is a freelance writer who specializes in recruitment and resume writing.

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How to Write a Business Case (With Example & Template)

A business plan is a straightforward document. In it, you’ll include market research, your overall goals for the business, and your strategies for achieving those goals.  But what is a business case and why do you need one if a business plan outlines everything else? A business case takes a closer look at a specific problem and how you can solve it. Think of a business case as the reason you create a project you’re going to manage in the first place.  The article provides a step-by-step guide on how to write a successful business case, including a checklist for identifying problems, researching solutions, and presenting to stakeholders. As a bonus, we’ll show you how to use Wrike to manage your product business cases with a requirements management template or implement them with a project scheduling template. What is a business case? A business case is a project you’ll assemble for identifying, addressing, and solving a specific business problem.  The key to a business case is the change it creates in your business. Developing a business case starts with identifying a problem that needs a permanent solution. Without that lasting change, a business case is only an observation about what’s going wrong. A complete business case addresses how a company can alter its strategy to fix that problem. Front-to-back, a business case is a complete story. It has a beginning, a middle, and an end. It typically looks like this: Beginning: Someone identifies a problem within the business and presents the business case to the key decision-makers. Middle: With the project go-ahead, the company launches an internal team to address the business case and deliver results. End: The team delivers a presentation on the changes made and their long-term effects. In short, a business case is the story of a problem that needs solving.   Examples of business cases The problem for many companies is that they can turn a blind eye to challenges that are right in front of their faces. This is even the case when the company has a compelling product to sell. Consider the example of Febreze. In the mid-1990s, a researcher at Procter & Gamble was working with hydroxypropyl beta-cyclodextrin. His wife noticed that his clothes no longer smelled like cigarettes, which was a frequent complaint. P&G had something of a miracle product on its hands. However, their approach was wrong. They initially marketed Febreze as a way to eliminate embarrassing smells. Predictably, the product flopped.  But P&G stuck at it. They had a potential business case on their hands: a highly marketable product proved difficult to market. What was going wrong? Working on the business case from beginning to end provided the answer. After some focus group testing, P&G found out that few consumers recognized the nasty odors they were used to. Instead, they learned to use a different business case for Febreze: it was a cleaning product now, a way to make the house smell nice when the floors are vacuumed and the counters are wiped clean. They gave it its own pleasant smell and fashioned it into a cleaning product. And because it worked so well, so did the campaign.  That’s an example of a business case overall. But let’s get specific: developing a business case is easier when you have a template to look at. Let’s build an example using a made-up company, ABC Widgets, and a hypothetical business case. Let’s call our business case example “Operation Super Widgets”: Business Case: ABC Widgets Section 1: Summary Briefly describe the problem and the opportunities.  ABC Widgets’ latest widget, the Super Widget, is suffering from supply issues, requiring higher shipping costs to procure the necessary resources, and eating into profits. We need to switch to a new supplier to restore the viability of the Super Widget. Section 2: Project Scope This section should include the following: Financial appraisal of the situation. Super Widgets are now 20% more expensive to produce than in the year prior, resulting in -1% profits with each Super Widget sold. Business objectives. To get revenues back up, we need to restore profit margins on Cost Per Unit Sold for every Super Widget back to 2020 levels. Benefits/limitations. Restoring Cost Per Unit Sold will restore 5% of sagging revenues. However, we are limited to three choices for new Super Widget suppliers. Scope and impact. We will need to involve supply chain managers and Super Widget project management teams, which may temporarily reduce the number of widgets we’re able to produce, potentially resulting in $25,000 in lost revenue. Plan. Project Management Teams A and B will take the next two weeks to get quotes from suppliers and select one while integrating an immediate plan to bring in new Super Widget parts for manufacturing within four weeks. Organization. Team Member Sarah will take the lead on Operation Super Widget Profit. Both teams will report to Sarah. This is a bare-bones example of what a business case might look like, but it does hit on the key points: what’s the problem, how can you fix it, what’s the plan to fix it, and what will happen if you succeed? How do you write and develop a business case? When writing your own business case, the above example is a good guide to follow as you get started with the basics.  But, once you’re more familiar with the nuts and bolts, it’s also worth being prepared for some potential roadblocks you could face along the way.  Challenges of writing a good business case Why don’t more companies create a business case? It might come down to a lack of good communication. Many people don’t even know how to write a business case, let alone present one. “The idea may be great, but if it’s not communicated well, it won’t get any traction,” said Nancy Duarte, communication and author who wrote The HBR Guide to Persuasive Presentations. The key challenge, notes Duarte, is taking abstract business concepts (like lagging numbers) and turning them into an immediately recognizable problem. After all, if a company already had perfect awareness that it was making a mistake, it likely would find a way to stop the error in its tracks.  A business case is challenging because it usually means you’ll have to persuade someone that change is needed. And change can be difficult. In a thriving business, it’s especially problematic because it’s easy to point to the bottom line and say that whatever the company is doing is already working. How do you present a business case? The tips and examples above give you some nice remedies for creating a business case without the typical problems. But you’ll still want to present a business case with the straightforward proposals and numbers you’d associate with any new project.  Essentially, it all comes down to how well your business case can persuade the decision-makers. That’s why you shouldn’t just build a case off of raw numbers. The bottom line might be a compelling argument, but it’s not always what “clicks.”  If you’re presenting a business case, you’re a salesperson. And not every sale is a matter of precise logic. It’s also about emotion—the story of why something’s gone wrong and what needs doing if you’re going to overcome it.  The art of a good business case is the art of persuasion. Keep these specific points in mind as you craft one of your own: Point to an example of a bad business case and liken it to the present case. No one likes the idea of watching themselves walk into a mistake. Presenting an example of a business that made the same mistake your company is making and then translating it into the present moment is a compelling way to craft a business case that makes ears perk up. Build a narrative. Nancy Duarte pointed out that in one business case, a client convinced a CEO to follow through with a project by using simple illustrations. It’s not that the idea of adding illustrations to the business case was so great. It’s that the illustrations were able to tell a compelling story about why the case needed to go through. Distill the idea into an elevator pitch. Try this exercise: get your business case down to one sentence. If you can’t explain it any more simply than that, your business case might not be as memorable as it needs to be to sway decision-makers. Use analogies to drive the point home. Let’s say you discovered a problem in a growing business. Overall, revenues are good — but you’ve noticed an associated cost that has the potential to explode in the future and tank the business. But it’s not compelling to use dollars and cents when the business is doing so well. Instead, consider introducing the business case with a simple analogy: “Without repair, every leaky boat eventually sinks.” You now have their attention. Use the numbers to drive the point home, but not to make the point. If you’re presenting a business case to decision-makers, remember that it’s not only the logic of your argument that will convince people — it’s how persuasive you can be. Business case checklist Before you can check “learn how to write a business case” off your list, you have to know the essentials. Make sure you include the following elements in your business case checklist (and, of course, your business case itself): Reasons. This should be the most compelling part of your business case. You can tell a story here. And the most compelling stories start with a loss or a complication of some sort. What is the threat to the business that needs remedy? What are the reasons for moving forward? Potential courses of action. It’s not a complete story until we know the next chapter. A business case isn’t just about the problem — it’s about rectifying a problem through the solution. Recommend a few specific courses of action to help spur discussion about what to do next. Risks and benefits. Not every solution is going to be perfectly clean. There are going to be solutions with downsides. There are going to be costs along with the benefits. Make sure to include each of these to give a clear and complete picture. This is the time to manage expectations — but also the time to inspire action. Cost. What’s it going to cost to complete the project? The people making the decisions need to know the bottom line figure to assess which business cases to prioritize. Timeline. A good project isn’t only measured in dollars but in days, weeks, and months. What is the expected timeline for the business case? How quickly can the problem meet its solution?  With every business case, specificity is key. A vague timeline won’t help — a timeline with specific weekly milestones looks more achievable. To make your business case more compelling, always look for the specific details that tie your story together. Business case template A business case template is a document that outlines the key elements of a business case in a structured format. By using a standardized template, companies can ensure that all relevant information is captured and shared in a clear and consistent manner. Depending on the size of your business and the scope of your project, your business case template can be as detailed or as simple as you like. For a smaller project, you can use a one-pager to get started, detailing the main points of your project, which include: Executive summary: An overview of your project, its goals, and the benefits of completing it for your business Team and stakeholders: A list of the relevant people involved in your project, and their contact information SWOT analysis: An analysis of how your strengths, weaknesses, opportunities, and threats weigh up against your competitors Risk analysis: An overview of the kind of risks that are involved with your project and how you may avoid them Budget and financial plan: Details of your budget and where you may secure financing for your project Project plan: A schedule of how you plan to implement your project and what tasks are involved Let's see what that might look like. Executive summary   Team and stakeholders   SWOT analysis   Risk analysis   Budget   Project plan   How to write a business case with Wrike Wrike’s project management software can step in and turn a business case from the seedling of an idea to a full-fledged initiative.  The requirements management pre-built template can help you document and track project requirements in a structured manner. The template includes sections for capturing stakeholder requirements and business cases, as well as any constraints that may affect the project’s success. By using this template, you can ensure that all necessary requirements are identified and that potential issues are addressed early in the project planning process. If you want to move from the business case description to the actual implementation faster, consider using the project scheduling template. This template can help you create a detailed project timeline with milestones, identify task dependencies, and assign resources. By utilizing this template, you can ensure that the project is realistically achievable and meets all business needs, giving stakeholders confidence in the project’s success.

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How To Create A Winning Business Plan For Your Startup

When it comes to starting a business, having a solid business plan is absolutely crucial.  Consider this as a conversation between you and your business’s future. You’d need to start by clearly defining what your startup offers – this is your product or service. It needs to answer the question, “What problem are you solving for your customers?”

Next, delve into market analysis. Understand who your competitors are and pinpoint your target customers. Once you have that, consider your business strategy and the sales and marketing plans you’ll employ to achieve your goals.

It’s crucial not to forget the operational aspect – how will your business function daily? And lastly, the financial projections. They can be a little tricky, but they’re the crux of the plan, demonstrating the financial viability of your startup.

We have got a helpful guide that’ll dive deep into all the essential elements you need to craft a top-notch business plan, tailored specifically for your unique startup. A solid business plan will help you make smarter decisions, catch the eye of potential investors, and give yourself an edge over your competitors in the market.

Why Business Plan Is Important For A Startup

Just as you wouldn’t venture into unknown territory without a compass, initiating a startup without a business plan can lead to wandering aimlessly, wasting precious resources, or even getting lost in the market’s vast wilderness. Here are some reasons why a business plan is crucial for a startup.

Your Guide To Decision-Making

Entrepreneurship involves constant decision-making and crisis management. The luxury of pondering the possible ramifications of every choice isn’t always an option for a fledgling business. This is where a well-thought-out business plan proves its worth. Setting out your strategies, goals, and expected outcomes in advance, can guide you in making smart decisions, reducing the likelihood of costly mistakes. It’s like your startup’s crystal ball, helping you predict and navigate future challenges.

Smoothing Out The Road Ahead

Compiling a business plan requires you to dig deep, ask tough questions, and seek out insightful, well-researched answers. It’s about creating a realistic vision of your startup’s future, and it’s the process that matters. Even if you never look at the document again, the act of writing it down helps to refine your vision and identify potential gaps in your plan.

Avoiding Common Pitfalls

There’s a sobering statistic that approximately half of all small businesses don’t reach their fifth birthday. Many of these failures result from issues that a well-structured business plan can help to avoid.

According to data from  CB Insights , common reasons businesses fail include a lack of market need, cash flow problems, inadequate team structure, intense competition, and pricing errors. An effective business plan can help you avoid these pitfalls by foreseeing issues like cash flow forecasts, market analysis, and pricing strategy before they become problems. 

Proving Business Viability

Passion is an excellent motivator when launching a startup. However, passion alone does not guarantee success. Your plan is crucial in demonstrating your startup’s potential by outlining exactly how your vision translates into a profitable business.

For instance, the market research section of your plan can provide deep insights into your customers, competitors, and industry. This information can be pivotal in shaping strategies for marketing, product development, and scaling your business.

A Roadmap For Growth

Business plans play a crucial role in setting objectives and creating benchmarks. Without a business plan, goals can become arbitrary, losing their relevance over time. A well-documented plan keeps you accountable, aligns your team with your vision, and provides insights into the effectiveness of your strategies.

Facilitating Communication And Collaboration

A business plan isn’t just a guide for you, but also for your team. Whether you have a staff of two or two hundred, everyone needs to understand your business’s goals and how you plan to reach them. Your business plan can serve as a communication tool, spelling out the next steps when you’re unavailable for direct guidance. It aligns everyone with your vision, fostering a sense of shared purpose and commitment to the objectives outlined.

Navigating The Business Landscape

Running a successful business is about more than just managing what’s happening within your company’s four walls. It’s also about understanding the larger market environment. Crafting a business plan encourages you to study your competition, identify trends and preferences among consumers, anticipate potential disruptions, and garner insights that might not be apparent at first glance. Armed with this information, you’re better equipped to anticipate and respond to changes in your industry.

Leveraging External Support

Startups often depend on a range of external service providers for expertise in areas like accounting, marketing, and legal matters. Your business plan can serve as a reference point for these professionals, helping them understand your business better and align their services with your needs. By sharing relevant sections of your business plan, you can ensure everyone is on the same page, enhancing the effectiveness of their support.

Securing Investment

Here’s a fact to consider: you are 2.5 times more likely to secure funding if you have a business plan. Investors, banks , and potential partners want to know that their investment is in capable hands and that your business has a promising future. A well-crafted business plan is your opportunity to demonstrate this, making it a must-have document if you’re seeking external financing.

Mitigating Risks

All entrepreneurial ventures involve some level of risk, but a well-designed business plan can significantly mitigate these dangers. By considering revenue and expense projections, operational plans, and the competitive landscape, you’ll be equipped with a risk management tool that can guide your decision-making and limit the chances of unpleasant surprises.

Some Facts About A Successful Business Plan

• According to the  Small Business Administration , a successful business plan typically includes an executive summary , market analysis, competitive analysis, description of products and services offered, management overview, financial projections, and funding requirements.
• A  Harvard Business School survey  found that entrepreneurs who have written a business plan are 16% more likely to achieve success than those who have not.
• One  study  found that companies with a business plan grow 30% stronger than those without a plan.

Business Plan Formats

While there is no one-size-fits-all approach, there are common formats that cater to different needs and objectives. Understanding these formats will help you choose the most suitable one for your venture and tailor it to your specific needs.

Traditional Business Plan

The traditional business plan is the most comprehensive and widely used format. It typically spans multiple pages and contains detailed information about your company’s strategy, objectives, and financial projections. Venture capitalist firms and lenders often require these plans when seeking investment or loans. Key sections in a traditional business plan include:

• Executive Summary: A brief overview of your company, including its mission, goals, and key selling proposition.
• Company Description: Details about your company, history, and unique selling proposition (USP).
• Market Analysis: An examination of the industry, market, and competition.
• Marketing and Sales Strategies: Plans for promoting your products or services and generating sales.
• Organization and Management: An outline of your company’s organizational structure and management team.
• Product Line or Services: A description of your products or services and their benefits.
• Financial Projections: A forecast of your company’s financial performance, including income statements, balance sheets, and cash flow statements.

Download the Traditional Plan template from  here .

Lean Business Plan

A lean business plan is a condensed version of a traditional plan, focusing on the most critical information. This format is ideal for businesses that need a quick, accessible reference or for those looking to modify existing plans to target a specific market. A lean business plan will cover the same sections as a traditional plan but in a more concise manner.

Nonprofit Business Plan

A nonprofit business plan is tailored for organizations that operate for public or social benefit. This format incorporates all elements of a traditional business plan, with an additional section highlighting the organization’s intended impact.

This section may describe the social or environmental issues the organization aims to address and how its operations contribute to solving these problems. Donors and grant-makers often request nonprofit business plans to assess the organization’s mission, strategies, and potential impact.

Comparative Analysis Of The Common Business Plan Models

 how to write a business plan:.

Stats Source:  1 , 2

The business plan acts as the blueprint of your venture, outlining its mission, operational strategy, market analysis, financial needs, and more. It gives stakeholders a holistic view of your company, underpinning decisions and attracting potential investors. Let’s explore the key components of a business plan that will serve as the compass guiding your startup toward success.

1. Write An Executive Summary

The executive summary is at the forefront of your business plan, which introduces your plan to the world. It encapsulates everything your plan will detail but at a much higher level. As a pro tip, this summary is often more effective when written last, ensuring you fully grasp your plan.

In the executive summary, you’ll present your organization’s mission statement and the offerings you intend to bring to the market. If your venture is a new startup, including the reasons that inspired you to initiate this journey might be beneficial.

Here is how you can write an executive summary for your business plan.

• Your executive summary begins with the “Mission” – a clear and concise statement of your company’s purpose. Your mission is not merely what you do; it’s why you do it and how you want to impact your customers and the world.
• Next is the “Company History and Management” section. Provide a snapshot of your company’s location, the period of operation, and the people at the helm. A brief overview of their experience will also be valuable.
• A significant part of your executive summary will be the “Products or Services” your company offers. What problems does your product or service solve? How does it add value to the customer’s life? Providing succinct answers to these questions can pique the reader’s interest.
• In the “Market” section, you summarize the potential of your product or service or Total Addressable Market (TAM). Highlight key insights into the size and nature of your target market, indicating the business growth potential.
• The “Competitive Advantages” segment allows you to shine a light on what sets you apart from the competition. Make sure to highlight the unique strengths that will make customers choose your company.
• Finally, you must present your “Financial Projections” and “Startup Financing Requirements.” Provide an estimate of sales for the first few years and a clear outline of what it’ll cost to launch and run your company.

2. Add A Business Description

The business description paints a vivid picture of your venture, its goals, the industry it serves, and your target customers. This section allows you to share the passion behind your venture while detailing your industry, including prevalent trends and formidable competitors. Highlight your team’s industry experience and what sets your venture apart from competitors.

3. Market Research And Strategies

The purpose of the market analysis and strategy component of a business plan is to research and identify a company’s primary target audience and where to find this audience. Factors to cover in this section include:

• The geographic locations of your target markets
• The primary pain points experienced by your target customers
• The most prominent needs of your target market and how your products or services can meet these needs
• The demographics of your target audience
• Where your target market spends most of their time, such as particular social media platforms and physical locations
• This section aims to clearly define your target audience so that you can make strategic estimations about how your product or service might perform with this audience.

4. Marketing And Sales Plan

This part of your business plan covers the specifics of how you plan to market and sell your products and services. This section includes:

• Your anticipated marketing and promotion strategies
• Pricing plans for your company’s products and services
• Your strategies for making sales
• Reasons for your target audience to purchase from your company versus your competition
• Your organization’s unique selling proposal

5. Management And Organization Description

This section of your business plan explores the details of your business’s management and organization strategy. Introduce your company leaders and their qualifications and responsibilities within your business. You can also include human resources requirements and your company’s legal structure.

6. Products And Services Description

Use this section to further expand on the details of the products and services your company offers that you covered in the executive summary. Include all relevant information about your products and services. This includes how you plan to manufacture or develop them, how long they can last, what needs they may meet, and how much you project it might cost to create them.

7. Competitive Analysis

Add a detailed competitive analysis that clearly outlines a comparison of your organization to your competitors. Outline your competitors’ weaknesses and strengths and how you expect your company might compare to these. Include any advantages or distinctions your competition has in the marketplace. In addition, explore what makes your business different from other companies in the industry and any potential challenges you may face when entering the marketplace, if applicable.

8. Operating Plan

This part of your business plan describes how you plan to operate your company. Include information regarding how and where your company plans to operate, such as shipping logistics or patents for intellectual property. The operating plan also details personnel-related operations, like how many employees you hope to hire in various departments.

9. Financial Projection And Needs

The financial section of your business plan explains how you anticipate bringing in revenue. If you need funding for your business, this section also describes the sources and amounts for that funding. Include your financial statements, an analysis of these statements, and a cash flow projection.

10. Exhibits And Appendices

The last section of your business plan provides any extra information to support further the details outlined in your plan. You can also include exhibits and appendices to support the viability of your business plan and give investors a clear understanding of the research that backs your plan. Common information to put in this section includes:

• Resumes of company management and other stakeholders
• Marketing research
• Proposed or current marketing materials
• Relevant legal documentation
• Image Of your product (or demo)

Tips To Create A Small Business Plan

Know Your Audience

Knowing your audience is paramount when crafting your small business plan. It’s not just about offering a product or service, but understanding who will buy it and why. Start by defining your target market – age, gender, geographic location, income level, occupation, and lifestyle preferences are just a few factors to consider. Once you’ve identified your potential customers, dive deeper. What are their pain points? How can your product or service address these issues? Having this knowledge not only helps you tailor your offerings but also guides your marketing and sales strategies.

Have A Clear Goal

Your business plan must have a clear goal – a specific aim that you intend to achieve. This could be anything from reaching a certain revenue target, expanding to new locations, or securing a specific market share within a given period. Setting clear, measurable goals serves as a roadmap, guiding your actions and decisions. Remember, these goals should be SMART – Specific, Measurable, Achievable, Relevant, and Time-bound. Each goal should directly support your overall business objectives and provide a clear path to success.

Invest Time In Research

A successful business plan is built on solid research. Market trends, competitive landscape, and regulatory environment – these are all factors that could affect your business and, thus, must be considered in your business plan. Research can inform product development, pricing, and promotional strategies, as well as identify potential opportunities and threats. Conduct both primary (surveys, interviews) and secondary research (reports, articles) to gather comprehensive information. It’s an investment of time that pays off in the long run by guiding informed decision-making.

Keep It Short And To The Point

While your business plan should be comprehensive, resist the temptation to include every minor detail. Remember, the plan is a tool to communicate your business idea and strategy to stakeholders, including potential investors, partners, or employees. Therefore, it should be concise, focusing on key aspects such as your product or service, market analysis, business model, marketing and sales strategy, and financial projections. Avoid jargon and keep your language simple and straightforward. It makes the plan easier to read and understand, increasing its effectiveness.

Keep The Tone, Style, And Voice Consistent

Consistency is key in the tone, style, and voice of your business plan. It not only enhances readability but also reflects your brand identity. If your business is a modern tech startup, a casual, conversational tone might work well. For a law firm, a more formal tone would be appropriate. Choose a tone and style that aligns with your brand, and maintain it throughout the plan. This consistency helps build a strong brand image and makes a positive impression on readers.

Use A Business Plan Software

In the digital age, business plan software can simplify the planning process. These tools come with features like templates, step-by-step guides, and financial forecasting tools, making it easier to create a professional, comprehensive plan. Using such software can save time, increase accuracy, and ensure that your plan covers all essential aspects. Some popular options include LivePlan, Bizplan, and Upmetrics. Before choosing a tool, consider your needs, budget, and the software’s ease of use.

Mistakes To Avoid When Writing A Business Plan

1. not choosing a feasible business idea.

When it comes to selecting a business idea, there’s a fine line between ambitious and unrealistic. Too often, entrepreneurs get so enthralled by their passion project that they lose sight of its practicality in the market. They overlook crucial factors like the demand, the target audience, or the industry’s economic climate. In the business world, a great idea isn’t enough; it also has to be feasible. Validate your idea with market research, seek professional advice, and listen to potential customer feedback before making a commitment.

2. No Clear Exit Strategy

Although it might seem counterintuitive to plan your business’s end before it has even begun, a clear exit strategy is paramount. It guides your decisions, indicates your long-term goals, and reassures investors about the safety of their investments. Whether it’s selling the business, distributing dividends, or opting for an IPO, consider your exit strategy from the get-go.

3. Lack Of A Balanced Team

A start-up’s success isn’t a one-person show; it involves a balanced team with diverse skills and experiences. Without a robust team, you may be overwhelmed, attempting to manage all aspects of the business singlehandedly. When composing your team, look for complementary skill sets. A mix of leadership, financial acumen, marketing prowess, and technical skills ensures a well-rounded, capable team.

4. No Comprehensive Financial Projections

Many startups fall into the trap of undervaluing comprehensive financial projections. The figures you present in your business plan should be accurate and realistic and include projections for revenue, expenses, and cash flow. This detail is not only vital for you to understand the financial requirements and sustainability of your venture, but it is also crucial for securing funding from investors. Your business plan should include:

• Balance Sheet: A snapshot of your company’s financial position, including assets, liabilities, and equity.
• Cash Flow Statement: An overview of cash inflows and outflows, highlighting your ability to generate and manage cash.
• Profit and Loss (P&L) Statement: A summary of your company’s revenues, expenses, and net income over a specified period.

5. Spelling And Grammar Mistakes

Nothing undermines the credibility of a business plan like spelling and grammar mistakes. They give an impression of carelessness and lack of attention to detail. In the business world, these are attributes that no entrepreneur should embody. Always proofread your plan, use professional editing tools, or seek the help of an editor to ensure impeccable presentation.

6. Not Conducting A Proper Competitive Analysis

Understanding your competition is pivotal in carving your unique place in the market. An improper or superficial competitive analysis can lead to an ill-informed strategy and poor decision-making. Use methods like SWOT analysis to understand your competitors’ strengths, weaknesses, opportunities, and threats, and use this information to differentiate your offering.

7. A Proper Marketing And Sales Strategy

Without a well-defined marketing and sales strategy, even the most innovative product can get lost in the shuffle. Outline your strategy, detailing the mediums and  channels  you plan to use to reach your target audience. Be sure to include the  estimated costs  of these strategies to ensure alignment with your financial projections.

8. No Incorporating Scalable Business Model

A scalable business model is key to long-term success. It ensures that your business can adapt to increased demand without significantly increasing operational costs. If you neglect this aspect, you may struggle to grow or, worse, become overwhelmed by success.

9. Not Setting Realistic And Measurable Goals

Setting lofty, abstract goals may seem visionary, but in practice, they leave a business adrift. Your business plan should define realistic, measurable, and time-bound objectives. The idea here is to give your team a

10. No Presence Of A Risk Management Plan

All businesses face risks, whether they are financial, operational, strategic, or related to reputation. Ignoring these potential hazards won’t make them go away. On the contrary, it leaves you unprepared (i.e. SVB bank collapse). Incorporate a risk management plan into your business strategy, outlining potential challenges and your proactive steps to mitigate them.

11. Not Updating And Refining Your Business Plan

Remember, a business plan isn’t a static document you write once and forget. As your business evolves, so should your plan. Market dynamics change, customer preferences shift, and new competitors emerge. Regularly updating and refining your business plan ensures that it remains a useful tool for decision-making and a clear roadmap for your business’s future. An outdated plan will not reflect your current business status and may lead to misguided decisions.

Avoiding these common mistakes can set you on a successful path, enabling your startup to grow, thrive, and eventually, command a formidable presence in the market. It’s not an easy task, but with these guidelines in mind, you’re better equipped to navigate the challenges ahead.

1. Why Is A Traditional Business Plan Important For A New Business?

You know that feeling when you embark on a road trip without a map? It’s a blend of excitement and anxiety, right? Well, launching a new business without a traditional business plan is pretty much the same. It’s like sailing a ship with no compass or map.

The business plan serves as your guiding star, illuminating your path forward. It outlines your mission, vision, goals, and how you plan to achieve them. It’s your secret recipe for success, the blueprint for your entrepreneurial journey.

2. What Are The Key Elements Of A Traditional Business Plan?

Think of a business plan as a puzzle, made up of several key pieces that come together to create a complete picture. These pieces include the  executive summary  (think of it as your business’s elevator pitch), company description, market analysis (your business battlefield), organization and management structure (the captains of your ship), service or product line (the bread and butter of your venture), marketing and sales strategy (your business megaphone), and financial projections (the treasure you’re after). When these pieces fall into place, you get a clear image of your business’s future.

3. How Can I Make My Business Plan Stand Out?

You know the feeling when you’re trying to bake a cake for the first time? You can follow the recipe to the letter, but it might not turn out as you hoped. The same goes for a business plan. Using a  business plan template  can be helpful, but adding your unique flavor makes all the difference. Personalize it, and infuse it with your passion and vision. Use engaging anecdotes to highlight your experiences and lessons learned. It’s like telling a captivating story about your business, leaving everyone eager for the next chapter.

4. How Often Should I Update My Business Plan?

A business plan isn’t a “set it and forget it” type of deal. It’s a living document that evolves with your business. Like a gardener tending to his plants, you must regularly nurture and adjust your plan.  

Wrapping Up

In conclusion, crafting a comprehensive and effective business plan is crucial for any venture’s success. By outlining your vision, objectives, target market, competitive analysis, organizational structure, and financial projections, you can attract investors and provide a roadmap for growth.

Remember to keep the plan concise, realistic, and adaptable, as it will evolve with your business. Continually reviewing and updating your plan will serve as a dynamic tool, guiding your business toward its ultimate goals and long-term success.

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About the author: Oran Yehiel

Oran Yehiel is the founder of Startup Geek, with an MBA specializing in financial management and a background in Deloitte. As a Certified Public Accountant and Digital Marketing Professional, he writes about venture capital, marketing, entrepreneurship, and more, bringing a wealth of experience to businesses seeking growth and success.

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How to Create a Business Plan for a Startup

In today’s fast-paced business landscape, startups are sprouting like mushrooms after a spring rain.Starting a new business can be an exhilarating endeavor, but it’s important to remember that success often hinges on careful planning. One of the first steps in this process is crafting a well-thought-out business plan.According to the U.S. Census Bureau, there were 4.3 million business applications filed in 2020, a significant increase compared to previous years. But what sets a successful startup apart from the rest is not just the brilliant idea but the ability to turn that idea into a well-executed plan.

As a seasoned business plan writer, I’ve crafted over 15,000 plans for a diverse range of businesses. In this article, I’ll be sharing my wealth of experience on how to Create an exceptional business plan for your startup.

How to Write a Startup Business Plan, Step by Step

What is a startup business plan, startup business plan steps, executive summary, business description, product or service offering, marketing and sales strategy, operational plan, management and team, financial plan, risk assessment and mitigation, timeline and milestones, startup business plan examples, kickstart coffee business plan, executive summary:, market analysis:, marketing strategy:, operational plan:, financial projections:, funding request:, exit strategy:, why do you need a small startup business plan, securing external financing, comprehending your target market, prioritizing strategies with high return on investment (roi), enhancing financial stability, tips for writing a startup business plan, types of business plan, one page business plan, lean business plan.

A startup business plan is a strategic document that outlines a new company’s goals, objectives, and the means to achieve them. It typically includes details on the business concept, target market, financial projections, and operational strategies.

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The executive summary serves as the roadmap to your entire business plan. In a concise yet informative manner, it highlights your business concept, mission, and vision. Be sure to encapsulate the unique selling points of your startup.

The executive summary is the first thing potential investors, partners, or even your team will see. It’s your chance to make a great first impression. According to the U.S. Small Business Administration (SBA), a well-crafted executive summary can significantly increase your chances of securing funding, by up to 16%. This brief overview should be compelling and focused, setting the stage for what follows in the plan.

In this section, we delve deeper into your business’s mission and vision. Explain your target market, competition, and your startup’s role in the industry. Use clear language and rich detail to paint a vivid picture of your venture.

Here’s where you delve deeper into your business concept. A survey by CBInsights revealed that 42% of startups failed because they misjudged the market need. Describing the industry and market trends helps ensure your business is addressing a genuine need. In addition, a report by Statista indicates that 34% of startups fail due to poor market understanding. It’s crucial to thoroughly research and describe the industry and market trends you plan to enter.

Read more: How to write company overview or description and its  examples

Here, we guide you on conducting thorough market research. Explore your industry’s trends, identify your target audience’s needs, and assess your competitors. A detailed SWOT analysis can be an invaluable tool.

Your business plan should be based on solid market research. According to Forbes, businesses that conduct comprehensive market research are 30% more likely to succeed. This research provides insights that can be highlighted in your SWOT analysis . In fact, a report by Statistic Brain reveals that 47% of startups failed due to insufficient market research and poor market understanding, further emphasizing the importance of comprehensive research.

Read more: how to do market research.

Detail your products or services, emphasizing how they meet the needs of your target audience. Highlight the unique features and benefits that set your offerings apart from the competition.

Now, let’s get to the nitty-gritty of what you’re offering. According to a Price Intelligently study, setting the right price can increase your revenue by 30%. Explaining your pricing strategy in your business plan is crucial for success. Additionally, a report by Entrepreneur states that businesses that correctly price their products or services enjoy 24% higher profits than their competitors. This underlines the importance of meticulous pricing strategies.

Read more: how to write product or service offering section .

Elaborate on your marketing and sales tactics. Discuss your pricing strategy, distribution channels, and promotional efforts. Remember to emphasize the digital marketing techniques that will set you ahead in the online realm.

A great product or service won’t sell itself. According to HubSpot, businesses that blog consistently generate 67% more leads than those who don’t. This statistic highlights the importance of content marketing in your marketing plan. Furthermore, a study by McKinsey & Company found that businesses with effective marketing and sales strategies are 10% more likely to surpass their revenue targets, showcasing the essential role these strategies play.

Read more: how to write marketing and sales strategy section .

In the operational plan section of your business plan, you should provide a comprehensive overview of how your business will operate on a day-to-day basis. This includes detailing your location and facilities, production processes, inventory management, supplier relationships, staffing and organizational structure, operating hours, technology and information systems, risk management, scalability, costs and budget, as well as timelines and milestones. By addressing these components, you offer a clear and detailed blueprint for how your business will function, ensuring investors and stakeholders understand your operational strategy and its alignment with your overall business goals.

According to a study by Statistic Brain, poor management and inadequate business planning are responsible for 46% of startup failures. Demonstrating a well-structured operational plan in your business plan can mitigate these risks. Additionally, a report by Harvard Business Review indicates that businesses with a robust operational plan are 35% more likely to achieve their goals, further emphasizing the significance of a well-defined plan.

Read more: how to write financial plan section .

To write a winning team section in your business plan, you should include the following essential points:

• Leadership Team: Introduce your key leadership team members, including their names, roles, and a brief description of their professional backgrounds. Highlight their expertise and how it aligns with your business's goals.
• Roles and Responsibilities: Specify the responsibilities and functions of each leadership team member. Clearly define who is responsible for what within the organization.
• Biographical Profiles: Provide concise biographical profiles or resumes for top executives, showcasing their relevant qualifications, experiences, and achievements.
• Advisory Board (if applicable): If you have an advisory board, describe its composition and the expertise each member brings. Explain how the advisory board contributes to strategic decision-making.
• Organizational Structure: Present an organizational chart to illustrate the hierarchy and reporting relationships within your company.
• Succession Planning: Discuss your plans for leadership succession and how you intend to ensure continuity in case of key personnel changes.
• Team Development: Mention your strategies for team development, including training, mentorship programs, and ongoing skill enhancement initiatives.
• Cultural Values: Describe the cultural values and principles that guide your organization's behavior, fostering a positive work environment and alignment with your mission.
• Ethical Standards: Highlight your commitment to ethical business practices, including integrity, transparency, and adherence to industry regulations.

In other words, you should focus on the following:

• Who is on your team?
• What are their roles and responsibilities?
• What is their expertise?
• How does your team work together?
• What is your organizational structure?
• How do you ensure succession planning?
• How do you develop your team?
• What are your team’s values and ethical standards?
• How do you create a positive work environment and align your team with your mission?

Read more: how to write team and management section .

Introduce your founders and key team members. A report by McKinsey & Company suggests that 25% of startups fail because they don’t have a capable team. Clearly defining roles and responsibilities in your business plan can help mitigate this risk. Furthermore, a study by Inc.com reveals that startups with a strong team are 21% more likely to succeed, highlighting the critical role the team plays in a startup’s success.

In this section, create a comprehensive financial plan for startup business, which includes income statements , balance sheets , and cash flow projections. Visualize the growth trajectory of your startup with a line graph. Start with an overview of your startup costs and funding requirements. A study by Statista indicates that 53% of startups struggle due to a lack of financial resources.

A robust financial plan is essential to secure your business’s sustainability. Additionally, research by the Small Business Administration suggests that businesses that closely manage their finances are 36% more likely to thrive in the long run, demonstrating the importance of a well-thought-out financial plan.

Acknowledge potential risks and challenges your startup might face. Provide strategies for mitigating these risks, demonstrating your preparedness.

Every business has its risks, and acknowledging them demonstrates that you’ve thought through potential challenges. According to a report by Score, poor risk management is responsible for 21% of small business failures. Addressing risks in your plan can help mitigate these threats. Additionally, research by Forbes states that businesses that actively identify and manage risks are 33% more likely to achieve their objectives, emphasizing the significance of risk assessment and mitigation.

Establish key milestones and performance metrics. These serve as indicators of your startup’s progress. A well-structured table can make these details easily digestible.

A roadmap can inspire confidence. A study by the University of Virginia found that setting clear goals increases the likelihood of success by 90%. Milestones provide a clear path to success and are critical for investor confidence. Furthermore, a report by Startup Genome reveals that businesses that set and achieve milestones are 3.5 times more likely to secure investment, demonstrating the positive impact of milestones on a startup’s journey.

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These are the following essential points of kickstart coffee business plan.

Kickstart Coffee is a neighborhood coffee shop aimed at providing a cozy atmosphere and high-quality coffee to residents and workers in the downtown area. We will offer a diverse menu of coffee beverages, pastries, and light snacks. Our goal is to become the go-to coffee spot for locals seeking a welcoming environment and premium coffee.

• Target Market: Urban professionals and students in the downtown area seeking a relaxed and productive environment.
• Competitive Analysis: Kickstart Coffee competes with nearby chain coffee shops, differentiating by offering unique, locally sourced coffee blends and a warm, rustic ambiance.
• Branding: Create a cozy, community-centric image through social media, local partnerships, and neighborhood events.
• Pricing: Competitive pricing with loyalty programs and student discounts.
• Promotion: Regularly update the [Your Coffee Haven] website and social media platforms, and participate in local events and promotions.
• Location: Secure a high-traffic location in downtown with proximity to office buildings and schools.
• Suppliers: Establish relationships with local coffee roasters and bakeries for fresh, quality products.
• Staffing: Hire experienced baristas and service staff focused on exceptional customer experience.
• Start-up costs: $100,000
• Monthly expenses: $15,000
• Projected revenue in the first year: $300,000

Kickstart Coffee is seeking $150,000 in funding to cover initial start-up costs and operational expenses in the first year.

The long-term goal of kickstart coffee is to establish a loyal customer base and expand to multiple locations in the region. If opportunities for acquisition or franchising arise, kickstart coffee will consider these options.

Need help in writing your business plan?

Discover our 14 free business plan templates!

Creating a concise business plan for a small startup is a critical initial step in establishing a company. Not only does it assist in honing your business objectives, but it also serves as a tool for soliciting feedback from potential partners and ensures your team remains aligned.

What’s most advantageous about commencing with a small venture is the flexibility it offers. You can adjust your direction at any point. If you require assistance in crafting or refining your small startup business plan, you can utilize this entrepreneur’s guide to initiate the process.

Assuming you have developed a product and are poised to take the next step, what’s your blueprint? To begin with, you must formulate a strategic framework. Are you aware of the financial outlay required and the sources from which this funding should be secured? What about marketing approaches for attracting your initial customer base?

Furthermore, you’ll need methods for retaining these customers and encouraging their repeat business, ultimately increasing their spending.

Should you seek financial backing from lenders or investors, a well-structured startup business plan becomes indispensable. Lenders want assurance that they are investing in a sustainable and progressive enterprise.

A well-organized plan demonstrates your commitment to your venture’s mission and delineates specific objectives for benefitting your clientele. Additionally, an exit strategy holds significant importance. Formulating a plan for contingencies underscores your preparedness for unforeseen circumstances, providing investors with insight into the potential value of their investments and granting both customers and you peace of mind.

An essential facet of your business plan is conducting a thorough market analysis. This involves assessing your industry, identifying your target audience, and understanding your competitors.

It is imperative to scrutinize any market trends or competitor dynamics that might influence your business. Be prepared to make necessary adjustments to your business plan based on these insights.

In the business realm, ROI is of paramount importance. Any business that fails to generate more cash than it consumes is at risk of failure.

With a startup business plan firmly in place, the strategies with the most promising ROI become evident. This enables you to discern which initiatives to tackle first and how to effectively prioritize the remainder of your tasks.

Business plans are not crystal balls, but they can provide valuable insights into your financial well-being. Planning for expenses is indispensable for maintaining operational stability and swiftly addressing emerging issues.

Cash flow projections offer a glimpse into the feasibility of your goals and highlight potential challenges that require correction before they become insurmountable.

• Keep it simple and concise: Your business plan should be easy to read and understand, even for people who are not familiar with your industry. Avoid using jargon and technical language, and focus on the key points.
• Do your research: Make sure you have a good understanding of your target market, your competitors, and the industry as a whole. This will help you to write a more realistic and persuasive business plan.
• Be realistic: When setting financial projections and goals, be realistic about what you can achieve. It is better to underestimate than to overestimate.
• Be specific: When describing your products or services, your marketing strategy, and your financial plan, be as specific as possible. This will help potential investors to understand your business and to see why it is a good investment.
• Get feedback: Once you have drafted your business plan, ask trusted advisors and mentors to review it and give you feedback. This will help you to identify any areas that need improvement.
• One page business plans
• Start-ups business plans
• Strategic business plans
• Feasibility business plans
• Internal business plans
• Lean business plans

Starting a business from scratch? You’ll need a business plan template. Here are some basic and specific templates to help you create a successful plan.

Check out our 45 Plus collection of various business templates.

In the ever-evolving landscape of startups, a well-crafted business plan is your blueprint for success. It’s not just about the brilliance of your idea but also the meticulous planning and execution. From the executive summary to financial projections, each element plays a vital role in ensuring your startup’s sustainability and attracting potential investors. Remember, success often hinges on careful planning, and a solid business plan is your key to unlocking the full potential of your entrepreneurial journey. So, embrace the challenge, follow these steps, and let your startup story be one of innovation, growth, and accomplishment.

A business plan for a startup should outline the business concept, strategies, and financial projections, serving as a roadmap for success and a tool for attracting investors.

Here are 10 steps for small businesses to establish an effective strategic planning process:

• Assemble the right team.
• Collect necessary data.
• Anticipate the need for preparation.
• Foster a conducive environment.
• Develop your plan.
• Prioritize growth and value.
• Structure your approach around strategic objectives and a feasible plan.
• Introduce gamification elements.
• Execute relentlessly.
• Think of strategic planning as a process and not an event.

For a small business to thrive, it needs four key elements on its side: a strong product, a receptive market, adequate finances, and a skilled team. Whether you’re a startup seeking investment or aiming for independent success, these fundamental components are essential for any business.

A robust business plan consists of five key components. These include an executive summary, market analysis, business description, financial projections, and a detailed marketing and sales strategy. Together, these elements provide a comprehensive roadmap for the business’s mission and success.

Embarking on a business venture may appear daunting, but adhering to these steps ensures your path to success:

Create a comprehensive business plan. Secure the necessary funding. Assemble a proficient team. Navigate the essential legal processes. Set up a suitable location. Formulate a strategic marketing plan. Cultivate a loyal customer base. Prepare for adaptation and growth.

No, a business plan is vital even if you’re not seeking external funding. It acts as a crucial tool for internal planning, goal-setting, and decision-making, ensuring your business remains on a strategic path towards success.

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70 Small Business Ideas for Anyone Who Wants to Run Their Own Business

Published: March 19, 2024

A good business idea may seem hard to come by, but with some planning and preparation, you can easily launch a small business to supplement your income — or become your own full-time boss.

Maybe you already have an idea of the business you’d like to start. But while you might feel ready for a new venture and passionate about your idea, you might be looking for some direction.

To help get you started, here's a list of small business ideas separated into a few sections:

• What makes a good small business?

Best Small Business Ideas

Best businesses to start with little money, home business ideas.

• Online Businesses Ideas

Easy Businesses to Start

Business ideas for students, creative small business ideas, how to start a small business at home, starting a small business: faq.

The first step to becoming a successful entrepreneur is finding a business idea that works for you. In this article, you’ll find dozens of small business ideas you can start from home and scale up as your clientele grows. Let’s get started.

What makes a good small business idea?

Not all small business ideas are made equal: Some require more effort and funding than others, while some can be launched with few resources — or resources you already have. As a potential small business owner, you’ll want to save as much money as possible on training, rent, supplies, and other necessities.

Let’s go over what makes a good business idea:

• Requires little to no training . A good small business idea will ideally leverage your existing field of expertise and require little to no training. That will not only shorten your time-to-launch, but also lessen your expenses, since training courses can cost a significant amount of money. Plus, you’ll be more confident offering services that you feel prepared to deliver.
• Requires low setup costs. Your business should be cheap to start. Maybe you only need to purchase a website domain or buy a desk for your garage.
• Requires little hands-on inventory or supply management . A great business idea needs few supplies and little inventory management. If you want to sell physical goods, you can either try drop-shipping and manually make goods in small batches.
• Is based online . The best small business ideas are based online and can be carried out from your personal computer. This will automatically lower your commuting costs and give you greater flexibility over your personal and work life.
• Can sustainably be managed by few people . As a small business owner, you won’t have the funds to hire other people to help you run your business — at least not at first. A good business idea should give you the ability to run your business on your own.

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Airbnb Co-founder, Brian Chesky, said, “If we tried to think of a good idea, we wouldn’t have been able to think of a good idea. You just have to find the solution for a problem in your own life.”

If you’re like Brian and you’ve already thought about a solution for a problem you encounter in your life — or you’re on the path to doing so — then starting a small business may be in your future. It may also be for you if you dream of clocking out of your nine-to-five job for the last time and becoming your own boss.

Below, we include the best ideas for you to start your small business — with resources and examples to help you get started.

1. Handyman

8. Life/Career Coach

If you have experience navigating career, personal, and social transitions successfully, put it to good use as a life or career coach. Many of us are looking for guidance in our careers — and finding someone with the time to mentor us can be tough.

Life/career coaches don’t come cheap, but they are able to offer clients the intense and hands-on training and advice they need to make serious moves in their personal and professional lives. After all, everyone needs some uplifting advice from time to time.

To start your life/career coaching business with confidence, you can look for a certification program (like the Life Coach School’s or Diane Hudson’s ), then apply your skills as you acquire new clients.

A resume writing business is economical, has few overhead costs, and has few educational requirements. We still recommend having an Associate’s or Bachelor’s degree and a few resume samples on hand. If you still feel that you need to brush up on your resume writing skills, you can take a course like Coursera’s or LinkedIn Learning’s .

Once you’ve gotten resume writing down, you can expand your business to include cover letter writing and even offer career coaching services in conjunction with these services.

10. Freelance Writer

If you have writing skills , there’s someone out there willing to pay you for them. Write blog posts, magazine articles, and website copy galore — just make sure you have a body of work built up to share with potential clients. Even if you create a few sample pieces to have on hand, they’ll help exhibit your work and attract new business.

To become a freelance writer, it’s essential to choose a specialty. For instance, you might choose to only write for publications in the healthcare industry (maybe because you were previously a healthcare worker) or focus on lifestyle publications. Whatever the case, specializing will help you find your niche market and gain confidence as a new freelancer writer.

There are no educational requirements for freelance writing, but you do need strong writing skills. It also helps to enjoy writing. While certification may be beneficial, getting practice and writing every day is more important. Try these writing prompts to start.

11. Landscaper

Mowing, tree-trimming, and seasonal decor are all neighborhood needs. If you have or can acquire the equipment, a landscaping business can be a lucrative affair. It’s also a great choice if you enjoy doing it for your own home and have a good eye for landscape design.

The good news is that you can start small. For instance, you could offer your neighbors seasonal planting services and start with a few perennial plants, or simply offer mulching services.

To grow your landscaping business, you should consider taking some formal training. The following organizations offer courses:

• New York Botanical Gardens

After completing a course and getting enough experience, you can apply for a certificate from a landscaping organization. While a certificate isn’t necessary to work in the field, it can build your credentials and help you make industry connections to take your landscaping business to the next level. The Association of Professional Landscape Designers offers one potential certificate you could pursue.

Some states require licensure, especially if you’ll be using pesticides and fertilizers. Be sure to review the requirements for your state.

Learn some of the basics now with this video on landscape design from Lowe’s:

12. Videographer

Video production requires you to have invested in the equipment up front, which can be quite expensive. But that’s also what makes your services so valuable. Make sure you have a reel of your work to share or create a website with several selections of your work available for interested viewers.

There are no educational or licensure requirements for starting a video production business. As with writing and other creative arts, though, it pays to specialize. Real estate videos differ radically from wedding videos, and wedding videos differ radically from in-studio interviews and testimonials. By specializing, you target a highly specific customer who’ll benefit the most from your services, and you can also skill-up more effectively in one shooting style.

While you can find general classes on videography, you should consider taking a class in the type of videography you’d like to do. For instance, you could take The Complete Wedding Videography Course .

Hot tip: If you’re interested in specializing in video marketing, check out The Ultimate Guide to Video Marketing and download our starter pack below.

13. Photographer

Start by conducting photo shoots for your family and friends. As you build a body of work, ask for referrals and reviews. Photography businesses often grow by word of mouth, so create a Facebook page where you can tag recent clients. Photos where you tag those clients will show up in their friends’ newsfeeds, where they can view your work. You can also ask them to leave reviews on your Facebook business page.

Like with a video production small business, you’ll want to specialize. Will you do product shoots or portraits? How about wedding or fashion photo shoots? Once you specialize, you’ll be able to create a body of work that most accurately represents your strengths.

There are no educational or licensure requirements for starting a small photography business. Still, we recommend investing in a few photography courses, especially if you haven’t used your camera in a while. Some courses you might start with include:

• Cornell’s Digital Photography Certificate Program
• New York Institute of Photography’s Course

From there, seek courses that help you build skills in your chosen specialty.

If you’re not sure where to start with freelance photography, take a look at Erica Clayton’s journey into the business below. Her advice? Give yourself a firm deadline to turn a profit.

14. Bed and Breakfast Owner

Some consulting industries are more competitive than others, so be sure to complete your research before starting a small consulting business. One way to find out how competitive a consulting niche is by doing keyword search . If your target niche is highly searched or is already dominated by big companies, you may have a harder time breaking in. You can use keyword research tools to uncover keyword volume and local demand.

12. Event Planner

An event planning business is an excellent choice if you have great organizational and interpersonal skills, and it’s relatively cheap to start. You might choose to specialize in a specific type of event — like weddings or company meetings — or set yourself up as an event planner of all trades.

The good news is that event planners are always in demand. It’s not an easily automated job, so this small business idea is set to thrive regardless of the digital landscape. To start, you’ll want to look for a platform that will easily allow you to advertise your availability, such as event planner directories like Eventective and WeddingWire .

If you’re highly organized, detail-oriented, and have experience planning large events, it might be time for others to benefit from your skills.

13. Personal Assistant

Personal assistants help business owners and executives take care of administrative tasks. To launch a freelance personal assistant business, you should leverage networking opportunities on LinkedIn and attend small business events at local chambers of commerce. Most local business owners might not even know they need a personal assistant until you market your services to them.

If you’re an organized, highly-detailed person, the life of a personal assistant might be for you. Don’t want to be tied to one office or person all day, every day? Consider becoming a virtual assistant, which allows you a more flexible work environment.

To become an assistant, choose a niche — will you be helping women business owners specifically? Do you have a specific field of expertise, like bookkeeping? A website can also go a long way, and be sure to print business cards for you to hand out during networking events.

14. Consignment Shop Owner

If you have an eye for style but don’t want to invest in the inventory of a brand-new boutique, consider starting a consignment shop. It will allow you to curate a collection of clothing that matches your goals and aesthetic without the overhead of a boutique selling entirely new garments.

The beauty of a small consignment business is that you can now start one online. You can sign up on a platform such as Poshmark , Depop , and even Etsy , then easily start selling your own used fashion from home.

Once you’ve defined your niche — such as vintage clothing, unique locally made art, or colorful shoes — you can begin sourcing new products from your local stores and thrift shops.

15. Caterer

If the personal chef gig is too restrictive for your schedule, consider catering instead. Pick your projects, work on fewer but larger events, and hone in on your time management skills.

Becoming a caterer is a natural step for those who are used to cooking for large events — for instance, you may have already catered your friend’s wedding or brought a 20-person meal to a potluck (that counts, too!).

It’s essential that you have enough temperature-regulated storage for the meals prior to each event, and that you arrange for reliable, temperature-controlled transportation to and from your home kitchen. Alternatively, you can lower your costs by inviting customers to pick up their order at your home.

16. Gym Owner

Kickboxing gyms, yoga studios, CrossFit, oh my! Turn your passion for fitness into a community for others by creating your own gym — start one from the ground up, become an affiliate, or open a franchise location.

Available franchise opportunities include Anytime Fitness, Orangetheory Fitness, Pure Barre, Planet Fitness, Crunch Fitness, and more. Be prepared to take out a loan to finance your franchise — most agreements start with fees upward of $20,000. But the payoff can be tremendous due to brand recognition. You’ll have no trouble recruiting new members as long as you use local marketing strategies .

Alternatively, you can create a local studio, but ideally, it should be for a specific activity instead of general fitness. Yoga, pilates, bootcamp-style gyms, and martial arts perform well as independent fitness studios.

17. Boutique Agency Owner

What’s your specialty? Whether it’s marketing, social media, or PR, it might be time to start your own agency. Many other small businesses need this type of help but don’t have the resources or volume to necessitate a full-time position.

To start an agency, you would ideally have worked in your specialty for a number of years. You should also be prepared to interface directly with clients, fulfill their requirements, and temper their expectations (if they want results in an unreasonably short amount of time).

Consider building a small team and learn from other entrepreneurs who’ve successfully started their own agencies, like Duane Brown of Take Some Risk .

18. Coffee Shop Owner

Turn your caffeine addiction into something a little more lucrative. Opening a franchise or buying an existing shop are lower-risk entry points to the coffee game, but they usually require a little more cash upfront. Starting a shop from scratch requires more planning and work — but it also maximizes your earning potential in the future.

A coffee shop is an excellent fit if you already have a full-time remote job and wish to supplement your income with a small business. You can manage the coffee shop as you work at one of the tables, but be sure to have the budget to hire an experienced barista who can pick up the slack.

If you would like to open a coffee shop and run it full-time on your own, you’ll need to undertake barista training, understand worldwide coffee sources, and have excellent customer service skills.

19. Moving Company

A truck, moving equipment, manpower, and the correct permits and insurance are the building blocks of starting your own moving company . Before you buy your first fleet of trucks, however, start small with a moving van and keep your costs low.

Still sound like too much of an initial investment? Consider offering packing services only, which have a much lower financial barrier to entry. You can partner with moving companies and offer to do their packing, or have them refer clients to you.

You could even take a niche approach to the industry as Astro International has by offering international moving services.

2. Vending Machine Owner

Since 2015, the growth rate for vending machine businesses has increased 1.4%. Even as social distancing restrictions are still in place, this business can still be lucrative if you choose the right locations. High-traffic is key — places like hospitals, schools, and community centers are smart places to start placing your machines to generate enough revenue to cover cost and turn a profit.

3. Social Media Manager

Do you have a knack for social media? As a social media manager, you can use your skills to manage the social media accounts for companies and even individual people. Influencer marketing has become more common and many influencers rely on marketing agencies or employees to help them run their social channels.

Online Business Ideas

If you want a business idea that you can run entirely online, check out the ones below. These ideas are ideal for those looking for a passive income stream. In other words, you shouldn’t need to do too much manual work to launch these businesses from your home or preferred business location.

1. Become an online reseller.

To become an online reseller, all you need is some business savvy and some funds to invest in product stock from manufacturers — or, of course,the willingness to sell your own used items. Generally, this is a low-touch but high-performance way of creating a passive income online business.

Online resellers usually use a platform, such as Facebook Marketplace or Amazon Sellers, to sell either their own or manufacturers’ stock. The benefit of using Facebook Marketplace is that you can begin today with your own Facebook account, and simply list items that you already own.

Interested buyers typically drive directly to your home for pick-up — but if you’re not interested in human interaction, you can leave it outside and have the buyer pay via an online platform.

Blogging is one of the most accessible small businesses to start, and there are countless niches to choose from. That said, because there are many blogs online, you’ll need to learn blog SEO and keyword research to ensure your audience finds you. That way, you actually make money out of your blogging efforts.

The great news is that a small blogging business has a ridiculously low overhead. All you need is a custom domain and your time for writing blog posts.

5. Home-Baked Goods Seller

Warehouse-made, store-bought chocolate chip cookies will never compare to a batch made with love in someone’s home. Simple desserts can be easily baked and packaged to sell at local events or around your neighborhood. Use custom labels and watch the word spread about your goods!

You can begin a baked goods business easily by opening a Facebook and Instagram profile. Facebook and Instagram are both excellent platforms to market your goods, show pictures of your previous baked products, and even showcase happy clients.

Build a loyal following slowly, and save on costs by asking clients to drive to your home to pick up their order. Choosing a niche can be helpful here, or baking in a specific style that can’t be found at grocery store bakeries. The overhead can be especially low if you already have most essential baking supplies.

6. Ecommerce Store Owner

Do you create, collect, or curate anything special? Consider starting an ecommerce store and turning your hobby into a full-time job. Whether you need somewhere to sell all that pottery you’ve been making, or an excuse to search for the sports memorabilia you love tracking down, an ecommerce store can make it financially viable for you to pursue your passion.

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Starting an ecommerce store is simple and easy. You can set up a shop using an ecommerce website builder , all of which start at a minimal monthly subscription (some even start at free). Be sure to take good photos of your products and write descriptive product pages .

If you don’t have inventory, you can always own an ecommerce store by using dropshipping . Instead of creating and shipping your products yourself, you’ll instead partner with a dropshipping website and have them mail out the orders directly to your client.

7. House Cleaner

With a low barrier to entry, house cleaning can be a great way to start doing what you love — soon. Consider advertising to homes in your neighborhood and get more bang for your buck by earning a few small businesses as clients as well. They’ll usually bring in a higher paycheck for a similar amount of work.

To become a house cleaner, you should be prepared to invest in cleaning supplies and accessories, or be willing to use your own. If you plan to serve small businesses, you should buy industrial janitorial supplies so you can get work done more effectively.

Need some inspiration? This small business cleaning service grew virtually overnight on Instagram after their content went viral during the pandemic.

Learn more about choosing the right structure for your business from the Small Business Administration.

6. Create a business bank account.

Once you have a legally formed business and have been issued an Employer Identification Number (EIN), open a bank account specifically for your business. Having a business bank account is essential for keeping your personal and business finances separate which can help you gain an accurate picture of your business’s cash flow and financial health.

Additionally, keeping your personal and business finances separate makes bookkeeping and tax preparation easier.

Many banks offer business checking and savings accounts. Business checking accounts typically do not have a limit on the number of transactions that can take place, and issue a debit card that can be used for making business purchases. However, these checking accounts do not accrue interest.

Business savings accounts typically earn interest over time but have a limited number of transactions that can occur each month. When you’re just starting out, look for a business bank account that does not have a minimum balance requirement so you are not penalized for having low funds as you work to build your business.

7. Determine if your business idea works well from home.

Ask yourself whether your business idea will work well from home. Some businesses simply aren’t suited to be based from home. If you want to run a dog boarding center but live in an apartment without a backyard, you might want to consider a dog walking business instead.

8. Set up an office.

If your business idea is well-suited for being run from home, it’s still important you have a designated workspace. While a home office might not be possible, consider setting aside a corner in your living room or putting a desk in your bedroom for a space that inspires you and creates the conditions for success.

Need a more professional space? If you conduct client-facing work requiring you to be on video calls, no one wants to see your rumpled sheets in the background. Check out local coworking spaces for memberships that earn you access to conference rooms, desk space, and more.

9. Get to work!

You’ve put in the hard work, but I’ve got bad news — it’s only going to get harder. But most entrepreneurs will agree that the payoff of being your own boss, making your own hours, and working on projects that you’re passionate about will pay dividends for the rest of your life.

What are the types of small businesses?

The types of small business structures are sole proprietorships, partnerships, limited liability companies (LLCs), and corporations.

• Sole Proprietorship — The simplest type of business structure is a sole proprietorship, which is also the easiest to start. As a sole proprietor, you are personally responsible for the business's liabilities and profits, and you have complete control over your business. If you are a solopreneur, you are automatically considered a sole proprietor.
• Partnership — A partnership is a business model involving two or more individuals who agree to share the business‘s profits and liabilities. Each partner contributes to the business and shares the risks and rewards. It’s essential to have a partnership agreement that defines each partner's roles and responsibilities to ensure clarity and prevent potential misunderstandings.
• Limited Liability Company (LLC) — An LLC, or limited liability company, is a common option for small businesses because it protects its owners by separating personal assets from the company's liabilities. To form an LLC, the business owner must file the required paperwork with the state.
• Corporation — A corporation is an independent legal entity distinct from its owners. It provides limited liability protection to its shareholders, who are not held personally accountable for the company's debts. Corporations have formal requirements and often raise capital by issuing stocks or shares.

Which business type is best?

The best business type is a limited liability company (LLC). Operating as an LLC means that your personal assets are separate from your business assets. If your business goes bankrupt, your personal holdings won’t be affected. That said, it’s also one of the costlier types, requiring a fee paid to the state.

The easiest business type to start is a sole proprietorship. The main downside is that there’s no differentiation between you and your business.

It's crucial to seek advice from legal or accounting professionals to determine the best business structure based on your unique needs and objectives. Each structure has advantages, legal requirements, tax implications, and flexibility considerations.

How do I create a business idea?

To create a business idea, determine your skill set, work preferences, startup budget, and available resources. It’s important to strike the right balance between what you can feasibly offer and what you can feasibly afford in the short and long term.

We recommend starting with your skill set so that you can easily determine the niche in which you can effectively compete. For instance, if you have ample experience as a writer, you might consider starting a freelance writing business. But if you know you’d prefer to work with clients face-to-face, you might choose to start a ghostwriting business instead. That’s why it’s so important to take your work preferences into account, as well.

After that, take a look at your budget and determine the type of business you can start based on the resources at your disposal. For instance, you might not be able to afford a physical office or location, so a location-based business will likely not be a good fit. In that case, starting an online business is your best option.

What resources or tools can I use to refine and validate my business ideas during the brainstorming process?

Online market research tools like Google Trends, Keyword Planner, and SEMrush can provide insights into market demand, competition, and keyword trends related to your business niche. Industry reports and market analyses from reputable sources such as IBISWorld, Gartner, Statista, and industry-specific publications can offer valuable data and trends to inform your decision-making. Ensure you know the industry risk before embarking on your small business venture.

→ Download Now: Market Research Kit [Free Download]

Additionally, joining entrepreneurial communities, forums, and social media groups can provide opportunities to seek feedback, network with like-minded people, and gain insights from experienced entrepreneurs. Finally, consider conducting surveys or interviews with potential customers to gather feedback and validate your business concept before investing significant time and resources.

What are some of the most successful small businesses?

Every small business has the potential to be successful and profitable, provided it’s backed by a strong product-market fit and a robust business plan . These two elements are essential. Maybe postnatal services are one of the most successful small businesses to launch, but if you live in an area with declining population or a large elderly population, then that small business idea won’t yield a high return on investment.

Think carefully about the market where you’re launching your business, and you’ll be more than likely to see lasting success.

What are the top growing small businesses?

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Find Free Funding: Small Business Grant Opportunities for Startups

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Antonio Del Cueto, CPA

April 11, 2024

The startup journey is exhilarating, brimming with potential and innovation. But let's be honest, transforming your brilliant idea into a thriving business often requires a financial boost. Grants can be the magic ingredient that fuels your startup's launch and propels it toward success.

This article will help you understand the different types of grants specifically designed for startups. We'll delve into the diverse funding sources available, from government programs to private foundations, helping you identify the perfect grant opportunity to match your unique business goals .

Are you in the process of starting your own business? Download FREE our business plan template here.

What are Small Business Grants and How to Find Them?

Small business grants can give your startup the boost it needs. Let's explore what these grants are and how you can get them.

Understanding the Concept of Small Business Grants

Small business grants are like gifts for your business. You don't have to pay them back. They're offered by different groups to help small businesses grow and succeed. Some grants are for all small businesses, while others might be for startups, businesses run by minorities, or those bringing new technology to the market. Grants can help your business without adding debt.

Where to Look for Small Business Grants?

You can find grants from federal agencies, state and local governments, and private companies, offering significant opportunities for those who have been at least three months in business. Federal grant options include the Small Business Innovation Research Program and the Small Business Technology Transfer program. Don't forget about local grants and those from organizations that want to support businesses like yours, including grants for minority businesses. The Small Business Development Center and contests like the Fresh Start Business Grant or Fast Break for Small Business are great places to start looking.

Government Grant Powerhouses:

• Grants.gov: This comprehensive database is the official source for federal grant opportunities. Filter by category (small business) and keywords to find relevant grants [Grants.gov].
• Small Business Administration (SBA): Explore the SBA website for federal grant programs like the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs specifically designed for innovative startups https://www.sba.gov/ .

State and Local Gems:

• State Government Websites: Many state governments offer grant programs for startups. Research your state's economic development department website to discover relevant opportunities.
• Local Development Authorities: These organizations often provide grants to foster local business growth. Check your city or county's website for details.

Beyond Government:

• SCORE: This non-profit organization offers free mentoring and resources to small businesses , including guidance on finding grants
• Minority Business Development Agency (MBDA) Centers: If your startup is minority-owned, explore MBDA centers for grant programs and resources designed to support your venture
• Industry Associations: Many industry associations offer grants to startups within their specific field — research associations relevant to your business for potential funding opportunities.

Private Grant Power:

• Philanthropic Foundations: Certain foundations offer grants aligned with their mission. Research foundations that might resonate with your startup's goals.
• Crowdfunding Platforms: While not technically grants, some crowdfunding platforms offer grant opportunities alongside fundraising options. Explore platforms like Kickstarter or Indiegogo.

Bonus Tip: Grant Application Resources

• National Association for the Self-Employed (NASE): This organization provides resources and workshops to help with the grant application process
• Small Business Development Centers (SBDCs): SBDCs offer free business consulting, including guidance on crafting compelling grant proposals.

Steps to Apply for Small Business Grants

Applying for a grant takes time and effort, but grants offer access to essential resources without the burden of repayment. First, find a grant that matches your business, like the Venmo small business grant program for innovative payment solutions. Read all the rules to make sure you qualify. Next, gather all the information you need. This might include details about your business plan, how you'll use the grant, and what makes your business special. Some grants require a grant writer, a professional who can make your application stand out. Finally, submit your application before the deadline. Be patient – it can take time to hear back.

By understanding grants, where to find them, and how to apply, you're taking big steps to help your business. Grants offer a chance to grow without the worry of paying back a loan, making them a critical component of any small business program. With some research and effort, you might just land a grant that'll give your startup the push it needs.

Further Reading: How To Get A Startup Business Loan With No Money

Types of small business grants available.

Finding the right grant can give your startup the boost it needs. We'll look at different kinds of grants and how they can help your business grow.

Government Grants for Small Businesses

Government grants are a big help for small businesses, with many grants at the state level specifically designed to support these entities. These grants come from federal, state, and local levels. Federal business grants often focus on research and development. Programs like the Small Business Innovation Research program and the Small Business Technology Transfer program are good examples. State and local grants might be more about helping your business integrate into the community and could include services like a FedEx business shipping account number for logistics support. To find these, check out grants at government websites or visit a national network of business centers.

Grants for Minority-Owned Small Businesses

If you own a minority-owned business, specific grants can help you. These grants aim to support diversity in business. They can come from the government or private sectors. Some programs offer access to resources, mentoring, and funding to help minority businesses start and grow. To find these grants, look for ones relevant to your business and from organizations supporting minority entrepreneurs.

Grants for Women Entrepreneurs

Women entrepreneurs also have grants specifically designed for them. These grants can help overcome women's challenges in the business world. They offer money, support, and resources to help women start and expand their businesses. To apply, you must have been in business for at least three months, have a valid FedEx business shipping account, and meet other specific criteria.

By understanding the types of grants available, you can better navigate the process of securing funding for your startup. Whether it’s a small-business grant from the government, a grant for your minority-owned small business, or a grant designed for women entrepreneurs, there are many small business grants out there. Remember, applying for grants is a step towards finding new ways to fund your business and help it grow.

How to Maximize Your Chances of Securing Grant Funding?

Getting a grant can be a great way to get funds to grow your business without the need to pay it back. Let's see how you can improve your chances of getting one.

Developing a Strong Business Plan

A solid business plan is your first step. It shows that you have a clear idea and plan for your business. Make sure it outlines what your business does, how it makes money, and how the grant will help. Grants vary, so having a plan that's a good fit for your business and the grant you're applying for is crucial. This helps grant providers see that your business is a serious and thought-out venture.

Utilizing Small Business Administration Resources

The Small Business Administration (SBA) offers resources and guidance to help business owners learn more about small business grants and loans. They provide grants to local economic development organizations that, in turn, help small businesses with funding, emphasizing the role of grants to small businesses in economic development. They also offer advice on how to make your business a good fit for various grants and resources.

Further Reading: How to Get a Startup Business Loan with No Money or Revenue in 2024

Key takeaways:.

• Grants : This is like getting a gift of money to help start your small business. You don't have to pay it back, which makes it super helpful for new businesses just beginning their journey.
• Small Business Startup : Imagine starting a lemonade stand. A small business startup is like that but can be any kind of business. It's the beginning phase where you set everything up and start selling.
• Application Process : This is like filling out a form to join a club or team. For grants, you fill out forms to explain why your business deserves the money. You might also share your plans on how you'll use it.
• Eligibility Criteria : These are like the rules for entering a contest. They tell you who can apply for the grants. For example, some grants might only be for businesses in a certain place or for business owners who have served in the military.
• Funding : This is another word for the money you get from the grant. It's like the fuel for your car; it helps you go further and faster with your business plans.

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Small Business Trends

How to start a medical transportation business.

A Non-emergency medical transportation business provides a service that is a valuable community asset. Moreover, the NEMT business can be profitable with the right planning and execution.  The need for NEMT is increasing, especially in communities with a growing aging population. In addition to an aging population, the US is enjoying increased healthcare accessibility, yet with limited public transportation in many areas.

A non-emergency medical transportation business is a solid choice for an entrepreneur who likes to drive and is good at customer service. If that matches your strengths, read on for a guide on how to start a medical transportation business.

Medical Transportation Services

Let’s get the basic definitions out of the way:

• Emergency Medical Transportation (EMT): Typically involves ambulances equipped to handle medical emergencies, staffed with trained paramedics and EMTs. These vehicles respond to urgent medical situations and accidents.
• Nonemergency Medical Transportation (NEMT): Designed for patients who need transportation to and from medical appointments but do not have a medical emergency. The staff may not need to have the same medical training level as EMTs, but they should know basic first aid.

The Role of Non-Emergency Medical Transportation (NEMT)

NEMT acts as a crucial link, ensuring patients get timely medical care, attend regular check-ups, and receive treatment, reducing long-term healthcare costs and improving community health outcomes.

NEMTS are vital parts of a local healthcare network.

Services Offered by Medical Transportation Businesses

Medical transportation businesses can provide rides to and from various appointments and activities, including:

• Medical Appointments
• Rehabilitation Visits
• Dialysis Centers
• Hospital Discharge Transportation
• Long-Distance Reliable Medical Transportation Services
• Transportation to pharmacies for medication pick-up
• Transportation to outpatient procedures
• Transporting patients with special needs to therapy or day programs
• Senior transport for wellness or community programs

How Much Does a Medical Transportation Business Make?

The profitability varies based on factors like operational efficiency, volume of clients, service rates, and region.

On average, the revenue can range from $25 to $60 per hour per vehicle.

Essential Steps in Starting a Medical Transportation Business

Now, let’s focus on how to start a business in the medical transportation field.

Complying Regulations in The NEMT Business

Though starting a medical transportation business can be a great option for those interested in learning how to make money with your car , some additional qualifications must be met. Both federal and state authorities regulate NEMT companies, with each state having specific regulations and licensure requirements.

Any business acting as a medical transportation company must adhere to Medicaid regulations if they plan to service Medicaid beneficiaries.

Vehicle drivers will need a commercial driving license.

The vehicle must have a current inspection and registration and be insured.

The NEMT business must be registered and obtain an operating license. The business should also obtain special transportation permits, as the individual state requires.

Crafting a Medical Transportation Business Plan

Your business plan for the NEMT business should include a thorough market analysis. You must determine how much demand for the service exists, and also identify competitors and set pricing. The strength of the NEMT business is that it is a profitable senior service business – seniors make up the bulk of the clients.

On the business side, research common business structures and expenses like small business insurance . Then, you can create financial projections based on your services and pricing model.

You must also analyze the area’s driving routes. That way, you’ll have a head start on being able to ensure timely service for clients. Analyzing the routes will also lead you to improve route optimization and fuel efficiency.

Fleet Considerations for a Medical Transportation Business: Wheelchair Accessible Vans

There are several options for vehicles. A NEMT business could start with one type of vehicle and add more of the same type or a different type depending on client demand:

• Modified vans with wheelchair ramps/lifts.
• Smaller vehicles for patients without mobility issues.
• Ambulettes or mini-buses for multiple passengers.

Medical Equipment Need Onboard

Onboard medical equipment ensures safety and timely response in case of any emergencies during the transport. Here are some essential items that should be present in nonemergency medical transportation vehicles:

• First Aid Kit: This is a basic requirement. The kit should contain bandages, antiseptics, sterile gauze, adhesive tape, scissors, tweezers, instant cold packs, disposable gloves, burn ointment, and other essential first aid items.
• Oxygen Tanks: Patients may require oxygen due to various medical conditions. Ensure oxygen tanks are properly stored and secure.
• Automated External Defibrillator (AED): An AED can be a lifesaver during sudden cardiac emergencies. Ensure that staff are trained to use it.
• Blood Pressure Monitor: A portable blood pressure monitor (sphygmomanometer) helps to check patients’ blood pressure when needed.
• Blood Glucose Monitoring Kit: For patients who are diabetic or have blood sugar issues.
• Portable Suction Machine: Useful to clear airway obstructions.
• Stethoscope: Basic equipment to check heart and respiratory sounds.
• Wheelchair and Stretcher: Depending on the nature of the transport, these items ensure the safe and comfortable transfer of patients.
• Cervical Collars: Useful for stabilizing neck injuries during transportation.
• Splints: For stabilizing potential fractures or sprains.
• Thermometer: A digital or infrared thermometer can monitor for fever or changes in body temperature.
• Blankets and Pillows: For comfort and to maintain body temperature in cold conditions.
• Sanitation Supplies: Hand sanitizers, disinfectant wipes, masks, and protective gloves. In today’s context, it’s also wise to consider including personal protective equipment (PPE) such as face shields or gowns, especially if transporting patients with infectious conditions.
• Emergency Medications: As per the regulatory guidelines of the region, certain emergency medications like epinephrine auto-injectors (for allergic reactions) or nitroglycerin (for chest pain) can be kept onboard.
• Spill Kits: For managing and cleaning up any biohazard spills or bodily fluids.
• Fire Extinguisher: Ensure it’s regularly checked and accessible.
• Always ensure that the medical equipment is regularly checked, maintained, and replaced when necessary. Furthermore, all staff should be adequately trained to use the equipment and understand the protocol for different medical scenarios.

Funding Your Medical Transport Business

You have several choices for getting funding for your NEMT business:

• Traditional bank loans – Armed with good, favorable financial documentation and a well-crafted business plan, an entrepreneur can land a loan to start the business.
• Small Business Administration (SBA) loans – SBA loans are administered through participating banks. They usually offer lower interest rates and longer payback terms.
• Angel investors or venture capitalists – With the right connections and a solid business plan, you may be able to attract investors.
• Crowdfunding – This is a good option for the entrepreneur who is willing to start small, perhaps with a single vehicle.

Building a Brand and Marketing Your Medical Transport Company

So exactly what is marketing for a medical transportation business? A medical transportation company needs a strong brand that is easily identifiable. Seeing that logo on a vehicle door will help clients feel a stronger sense of safety and reliability using the service.

Here are some important elements of branding and marketing:

• Develop a strong brand identity (logo, color scheme).
• Utilize local advertising (local newspapers, radio).
• Create a user-friendly website with online booking. Refer to our website startup guide to learn what to include. However, a NEMT should include the option to book appointments by phone, cell phone, and text for older clients or other citizens who do not use a computer.
• Engage with community events or health fairs.

Hiring and Training Staff for Medical Transport Businesses

Drivers, as we mentioned, will typically need commercial driving licenses. And each employee should undergo a complete background check.

Drivers also need first aid and CPR training, often offered through Red Cross courses. These certifications must be renewed annually.

Detailed Startup Costs

Starting a nonemergency medical transportation business (NEMT) involves various costs, which can vary based on your location, scale, and specific choices. Now that you know how to start a medical transportation business, here’s a general breakdown of some startup costs to consider:

• Modified Vans with Wheelchair Access: Can range from $30,000 to $60,000 or more per vehicle, depending on new vs. used and the specifics of the modifications.
• Ambulettes/Minibuses: Can range from $40,000 to $100,000 or more, again depending on new vs. used and the type of modifications.
• Initial investment: $1,000 to $3,000 for basics like spare tires, tools, and an initial checkup.
• Vehicle Insurance: This specialized commercial auto insurance for medical transport can range from $5,000 to $15,000 per vehicle annually, depending on the location and coverage level.
• Liability Insurance: To cover potential patient injuries or accidents. Expect to pay $3,000 to $7,000 annually.
• Worker’s Compensation Insurance: If you have employees. The cost varies based on state and payroll but budget for $2,000 to $5,000 annually.
• Business License: Costs can vary widely depending on location, but a general estimate is $100 to $500.
• Special Transport Permits: These vary by state and can range from $100 to $1,000.
• Commercial Driving License (for drivers): Around $100 to $200 per driver.
• First Aid Kit: $50 to $200.
• Oxygen Tanks with Supplies: $300 to $600.
• Automated External Defibrillator (AED): $1,000 to $2,500.
• Blood Pressure Monitor: $50 to $200.
• Blood Glucose Monitoring Kit: $20 to $100.
• Portable Suction Machine: $200 to $600.
• Wheelchair and Stretcher: $500 to $1,500 combined.
• Cervical Collars, Splints, etc.: $100 to $500 for an assortment.
• Thermometer, Sanitation Supplies, and Miscellaneous: $100 to $300.
• Office Space: If you don’t operate from home, you’ll need a space. Costs vary widely based on location, but budget for $500 to $3,000 monthly for rent.
• Equipment (computers, phones, etc.): Initial investment of $1,000 to $5,000.
• Software (scheduling, billing, etc.): $50 to $500 monthly, depending on the complexity and features.
• Marketing and Advertising: $500 to $5,000 initially for branding, website development, and initial advertising campaigns.
• Employee Salaries: If you plan to hire drivers or administrative staff from the outset, you’ll need to budget for their salaries. Depending on the region, a starting salary might range from $25,000 to $40,000 per year for drivers and similar for office staff.

Total Estimated Startup Costs: Depending on the scale of your business and regional factors, startup costs can range from $50,000 to $200,000 or more.

What are some challenges faced by medical transportation companies?

Problems within the fleet of vehicles create serious challenges, as clients must be driven to appointments or locations in a timely manner. Owners of NEMT companies need a backup plan for how to handle such problems.

Staffing issues can also create problems. Drivers need a level of skill and training before they are ready to work in the role, and that includes first aid and cpr training. Reliable replacement drivers should be on call to be used as needed.

How does a NEMT business ensure patient safety?

There are steps you can take to help ensure patient safety:

• Regular vehicle maintenance.
• Ensure vehicles have first aid kits.
• Regular staff training and re-certifications.
• Adequate insurance coverage.

How do Rules for Medical transportation businesses vary between States?

Rules and regulations differ among states. Some states might have stricter vehicle, driver, or operational requirements. Checking the specific regulations in your area should be part of your business startup checklist .

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Careers, Jobs, Small Business Seminars, Online, Small Business How-to Seminars: New York StartUP! 2024 Business Plan Competition Orientation

**This event will be online only**

Are you an entrepreneur looking for the chance to launch your business? Then don’t miss out on the New York StartUP! 2024 Business Plan Competition! The competition provides an opportunity for inspiring and innovative entrepreneurs to take their ideas and turn them into reality with access to Library resources, mentorship, and the chance to win one of three prizes: 1st Place: $15,000, 2nd Place: $10,000, and 3rd Place $7,500. Register for an orientation session now to -

• Get an overview of the timeline and requirements of the competition
• Learn about the resources available at the Business Center to start and grow your business.
• Attending an orientation session or viewing the orientation is the first requirement of the competition

Bring your questions! Visit nypl.org/bizplan for more details.

Click here to register

About the presenter: .

Paisley Demby

Paisley Demby  has been responsible for the training and development of over 12,000 business owners. A recognized authority on business and leadership development Mr. Demby is a highly sought-after speaker, Executive Coach, and CEO trainer: offering dynamic keynote and general session presentations, in-depth seminars, and lively executive development training courses that inspire audiences to take action in the areas of business strategy, leadership, marketing, sales, and finance. Mr. Demby draws upon over 25 years of business development and finance experience working with startups to large-scale multimillion-dollar corporations.

Registration for this event is through Eventbrite. Click here to view Eventbrite's Privacy Policy .

* Do you live in Brooklyn or Queens? We welcome all to participate in the competition and learn how to put a business plan together. However, only residents of Manhattan, The Bronx, or Staten Island who start a business in one of these three boroughs are eligible to win a prize.

Similar competitions are available for residents of brooklyn and queens. the brooklyn public library runs the brooklyn powerup competition for brooklyn residents. the queens economic development corporation (qedc) offers the startup competition for queens residents..