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

Noah Parsons

24 min. read

Updated April 10, 2024

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

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

• The basics of business planning

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

You understand that planning helps you: 

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

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

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

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

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

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

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

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

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

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

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• What to include in your business plan

Executive summary

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

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

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

Your executive summary should include:

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

Dig Deeper: How to write an effective executive summary

Products and services description

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

This is usually called a problem and solution statement .

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

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

Market analysis

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

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

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

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

Related: Target market examples

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

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

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

Dig Deeper: Learn how to write a market analysis

Competitive analysis

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

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

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

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

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

Marketing and sales plan

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

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

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

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

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

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

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

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

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

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

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

Business operations

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

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

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

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

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

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

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

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

Key milestones and metrics

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

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

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

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

Possible milestones might be:

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

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

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

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

Dig Deeper: How to use milestones in your business plan

Organization and management team

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

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

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

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

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

• Sole proprietor
• Partnership

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

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

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

Financial plan

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

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

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

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

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

Dig Deeper: How to create financial forecasts and budgets

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

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

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

Dig Deeper : What to include in your business plan appendix

Optional: Business plan cover page

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

Your cover page should be simple and include:

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

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

Dig Deeper: How to create a business plan cover page

How to use AI to help write your business plan

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

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

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

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

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

• Writing tips and strategies

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

Determine why you are writing a business plan

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

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

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

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

Keep things concise

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

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

Have someone review your business plan

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

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

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

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

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

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

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

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

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

Common pitfalls and how to avoid them

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

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

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

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

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

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

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

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

Use your business plan to manage your business

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

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

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

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

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

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

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

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

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

Learn More: How to run a regular plan review

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How to write a business plan FAQ

What is a business plan?

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

What are the benefits of a business plan?

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

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

What are the 7 steps of a business plan?

The seven steps to writing a business plan include:

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

What are the 5 most common business plan mistakes?

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

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

What questions should be answered in a business plan?

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

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

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

How long should a business plan be?

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

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

What are the different types of business plans?

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

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

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

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

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

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

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

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

See why 1.2 million entrepreneurs have written their business plans with LivePlan

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

Table of Contents

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

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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 make a business plan

Table of Contents

How to make a good business plan: step-by-step guide.

A business plan is a strategic roadmap used to navigate the challenging journey of entrepreneurship. It's the foundation upon which you build a successful business.

A well-crafted business plan can help you define your vision, clarify your goals, and identify potential problems before they arise.

But where do you start? How do you create a business plan that sets you up for success?

This article will explore the step-by-step process of creating a comprehensive business plan.

What is a business plan?

A business plan is a formal document that outlines a business's objectives, strategies, and operational procedures. It typically includes the following information about a company:

Products or services

Target market

Competitors

Marketing and sales strategies

Financial plan

Management team

A business plan serves as a roadmap for a company's success and provides a blueprint for its growth and development. It helps entrepreneurs and business owners organize their ideas, evaluate the feasibility, and identify potential challenges and opportunities.

As well as serving as a guide for business owners, a business plan can attract investors and secure funding. It demonstrates the company's understanding of the market, its ability to generate revenue and profits, and its strategy for managing risks and achieving success.

Business plan vs. business model canvas

A business plan may seem similar to a business model canvas, but each document serves a different purpose.

A business model canvas is a high-level overview that helps entrepreneurs and business owners quickly test and iterate their ideas. It is often a one-page document that briefly outlines the following:

Key partnerships

Key activities

Key propositions

Customer relationships

Customer segments

Key resources

Cost structure

Revenue streams

On the other hand, a Business Plan Template provides a more in-depth analysis of a company's strategy and operations. It is typically a lengthy document and requires significant time and effort to develop.

A business model shouldn’t replace a business plan, and vice versa. Business owners should lay the foundations and visually capture the most important information with a Business Model Canvas Template . Because this is a fast and efficient way to communicate a business idea, a business model canvas is a good starting point before developing a more comprehensive business plan.

A business plan can aim to secure funding from investors or lenders, while a business model canvas communicates a business idea to potential customers or partners.

Why is a business plan important?

A business plan is crucial for any entrepreneur or business owner wanting to increase their chances of success.

Here are some of the many benefits of having a thorough business plan.

Helps to define the business goals and objectives

A business plan encourages you to think critically about your goals and objectives. Doing so lets you clearly understand what you want to achieve and how you plan to get there.

A well-defined set of goals, objectives, and key results also provides a sense of direction and purpose, which helps keep business owners focused and motivated.

Guides decision-making

A business plan requires you to consider different scenarios and potential problems that may arise in your business. This awareness allows you to devise strategies to deal with these issues and avoid pitfalls.

With a clear plan, entrepreneurs can make informed decisions aligning with their overall business goals and objectives. This helps reduce the risk of making costly mistakes and ensures they make decisions with long-term success in mind.

Attracts investors and secures funding

Investors and lenders often require a business plan before considering investing in your business. A document that outlines the company's goals, objectives, and financial forecasts can help instill confidence in potential investors and lenders.

A well-written business plan demonstrates that you have thoroughly thought through your business idea and have a solid plan for success.

Identifies potential challenges and risks

A business plan requires entrepreneurs to consider potential challenges and risks that could impact their business. For example:

Is there enough demand for my product or service?

Will I have enough capital to start my business?

Is the market oversaturated with too many competitors?

What will happen if my marketing strategy is ineffective?

By identifying these potential challenges, entrepreneurs can develop strategies to mitigate risks and overcome challenges. This can reduce the likelihood of costly mistakes and ensure the business is well-positioned to take on any challenges.

Provides a basis for measuring success

A business plan serves as a framework for measuring success by providing clear goals and financial projections . Entrepreneurs can regularly refer to the original business plan as a benchmark to measure progress. By comparing the current business position to initial forecasts, business owners can answer questions such as:

Are we where we want to be at this point?

Did we achieve our goals?

If not, why not, and what do we need to do?

After assessing whether the business is meeting its objectives or falling short, business owners can adjust their strategies as needed.

How to make a business plan step by step

The steps below will guide you through the process of creating a business plan and what key components you need to include.

1. Create an executive summary

Start with a brief overview of your entire plan. The executive summary should cover your business plan's main points and key takeaways.

Keep your executive summary concise and clear with the Executive Summary Template . The simple design helps readers understand the crux of your business plan without reading the entire document.

2. Write your company description

Provide a detailed explanation of your company. Include information on what your company does, the mission statement, and your vision for the future.

Provide additional background information on the history of your company, the founders, and any notable achievements or milestones.

3. Conduct a market analysis

Conduct an in-depth analysis of your industry, competitors, and target market. This is best done with a SWOT analysis to identify your strengths, weaknesses, opportunities, and threats. Next, identify your target market's needs, demographics, and behaviors.

Use the Competitive Analysis Template to brainstorm answers to simple questions like:

What does the current market look like?

Who are your competitors?

What are they offering?

What will give you a competitive advantage?

Who is your target market?

What are they looking for and why?

How will your product or service satisfy a need?

These questions should give you valuable insights into the current market and where your business stands.

4. Describe your products and services

Provide detailed information about your products and services. This includes pricing information, product features, and any unique selling points.

Use the Product/Market Fit Template to explain how your products meet the needs of your target market. Describe what sets them apart from the competition.

5. Design a marketing and sales strategy

Outline how you plan to promote and sell your products. Your marketing strategy and sales strategy should include information about your:

Pricing strategy

Advertising and promotional tactics

Sales channels

The Go to Market Strategy Template is a great way to visually map how you plan to launch your product or service in a new or existing market.

6. Determine budget and financial projections

Document detailed information on your business’ finances. Describe the current financial position of the company and how you expect the finances to play out.

Some details to include in this section are:

Startup costs

Revenue projections

Profit and loss statement

Funding you have received or plan to receive

Strategy for raising funds

7. Set the organization and management structure

Define how your company is structured and who will be responsible for each aspect of the business. Use the Business Organizational Chart Template to visually map the company’s teams, roles, and hierarchy.

As well as the organization and management structure, discuss the legal structure of your business. Clarify whether your business is a corporation, partnership, sole proprietorship, or LLC.

8. Make an action plan

At this point in your business plan, you’ve described what you’re aiming for. But how are you going to get there? The Action Plan Template describes the following steps to move your business plan forward. Outline the next steps you plan to take to bring your business plan to fruition.

Types of business plans

Several types of business plans cater to different purposes and stages of a company's lifecycle. Here are some of the most common types of business plans.

Startup business plan

A startup business plan is typically an entrepreneur's first business plan. This document helps entrepreneurs articulate their business idea when starting a new business.

Not sure how to make a business plan for a startup? It’s pretty similar to a regular business plan, except the primary purpose of a startup business plan is to convince investors to provide funding for the business. A startup business plan also outlines the potential target market, product/service offering, marketing plan, and financial projections.

Strategic business plan

A strategic business plan is a long-term plan that outlines a company's overall strategy, objectives, and tactics. This type of strategic plan focuses on the big picture and helps business owners set goals and priorities and measure progress.

The primary purpose of a strategic business plan is to provide direction and guidance to the company's management team and stakeholders. The plan typically covers a period of three to five years.

Operational business plan

An operational business plan is a detailed document that outlines the day-to-day operations of a business. It focuses on the specific activities and processes required to run the business, such as:

Organizational structure

Staffing plan

Production plan

Quality control

Inventory management

Supply chain

The primary purpose of an operational business plan is to ensure that the business runs efficiently and effectively. It helps business owners manage their resources, track their performance, and identify areas for improvement.

Growth-business plan

A growth-business plan is a strategic plan that outlines how a company plans to expand its business. It helps business owners identify new market opportunities and increase revenue and profitability. The primary purpose of a growth-business plan is to provide a roadmap for the company's expansion and growth.

The 3 Horizons of Growth Template is a great tool to identify new areas of growth. This framework categorizes growth opportunities into three categories: Horizon 1 (core business), Horizon 2 (emerging business), and Horizon 3 (potential business).

One-page business plan

A one-page business plan is a condensed version of a full business plan that focuses on the most critical aspects of a business. It’s a great tool for entrepreneurs who want to quickly communicate their business idea to potential investors, partners, or employees.

A one-page business plan typically includes sections such as business concept, value proposition, revenue streams, and cost structure.

Best practices for how to make a good business plan

Here are some additional tips for creating a business plan:

Use a template

A template can help you organize your thoughts and effectively communicate your business ideas and strategies. Starting with a template can also save you time and effort when formatting your plan.

Miro’s extensive library of customizable templates includes all the necessary sections for a comprehensive business plan. With our templates, you can confidently present your business plans to stakeholders and investors.

Be practical

Avoid overestimating revenue projections or underestimating expenses. Your business plan should be grounded in practical realities like your budget, resources, and capabilities.

Be specific

Provide as much detail as possible in your business plan. A specific plan is easier to execute because it provides clear guidance on what needs to be done and how. Without specific details, your plan may be too broad or vague, making it difficult to know where to start or how to measure success.

Be thorough with your research

Conduct thorough research to fully understand the market, your competitors, and your target audience . By conducting thorough research, you can identify potential risks and challenges your business may face and develop strategies to mitigate them.

Get input from others

It can be easy to become overly focused on your vision and ideas, leading to tunnel vision and a lack of objectivity. By seeking input from others, you can identify potential opportunities you may have overlooked.

Review and revise regularly

A business plan is a living document. You should update it regularly to reflect market, industry, and business changes. Set aside time for regular reviews and revisions to ensure your plan remains relevant and effective.

Create a winning business plan to chart your path to success

Starting or growing a business can be challenging, but it doesn't have to be. Whether you're a seasoned entrepreneur or just starting, a well-written business plan can make or break your business’ success.

The purpose of a business plan is more than just to secure funding and attract investors. It also serves as a roadmap for achieving your business goals and realizing your vision. With the right mindset, tools, and strategies, you can develop a visually appealing, persuasive business plan.

Ready to make an effective business plan that works for you? Check out our library of ready-made strategy and planning templates and chart your path to success.

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How to Write a Business Plan in 10 Steps (With FREE Template)

Discover how to write a business plan in just 10 steps! Access our comprehensive PowerPoint and PDF templates to streamline your process. Ready to write your business plan? Start here.

StrategyPunk

Have you ever wondered how the likes of SpaceX or Beyond Meat charted their course to industry dominance?

Spoiler alert: A meticulously crafted business plan was at the heart of their strategy.

If you're gearing up to launch your venture or scale it to new heights, a business plan isn't just a good-to-have; it's your roadmap to success.

I'd like you to take a look at this guide, peppered with real-world examples and actionable insights, as we break down the art of creating a business plan into nine digestible steps.

Ready to set the stage for your business triumph? Let's dive in!

1. The Elevator Pitch - Draft an Executive Summary

Imagine stepping into an elevator with a potential investor, and you have moments to encapsulate your business's essence. This is the challenge of the elevator pitch, and at the heart of it lies the Executive Summary. Often considered the gateway to your business plan, the Executive Summary is a snapshot, providing a tantalizing glimpse into the world you're building.

First Impressions Matter . The Executive Summary is not just an introduction; it's an invitation. It should succinctly convey your business's core concept, unique selling proposition, and growth potential. While it's positioned at the beginning of your business plan, it's often recommended to pen it last, ensuring it distills the essence of the detailed sections that follow.

The Essence of Brevity . An impactful Executive Summary is both concise and compelling. It should encapsulate the business's mission, vision, product or service offerings, target market, and a brief overview of financial projections. Think of it as a trailer for a blockbuster movie; it should entice the reader to delve deeper into the subsequent sections of the business plan.

In the grand tapestry of your business plan, the Executive Summary is the golden thread that weaves everything together. It's the first impression and, often, the lasting one. So, as you stand poised at the threshold of your entrepreneurial journey, please make sure that your Executive Summary is an overview and an overture, setting the stage for the following symphony of success.

Think of this as the trailer to your business's blockbuster movie. It's a snapshot, offering a glimpse into what your business is all about. Highlight your business's essence, vision, and what sets you apart. Remember, this is your first impression if you're pitching to investors. Make it count!

2. The Heartbeat - Write a Company Description

At the core of every thriving enterprise lies its essence, its heartbeat - the Company Description. This section is not just a narrative; it's the soulful story of your business, painting a vivid picture of who you are, what you stand for, and the journey you envision. It's the foundation upon which the rest of your business plan is built, offering readers a clear lens into your company's ethos and aspirations.

Diving Deep into Identity . A compelling Company Description goes beyond the surface. It delves into the very DNA of your business, encapsulating its mission, vision, and core values. It should articulate the problems you aim to solve, the solutions you offer, and the unique value proposition that sets you apart in the marketplace. This section is your opportunity to showcase the passion, purpose, and potential that drive your venture.

Crafting a Compelling Canvas . Think of your Company Description as a canvas, where each brushstroke adds depth and dimension. It should encompass the structure of your business, its history, and its future aspirations. Whether you're a budding startup or an established enterprise, this section should resonate with authenticity, reflecting the heart and soul of your brand.

In the intricate tapestry of your business plan, the Company Description is the vibrant thread that brings your vision to life. The narrative informs and inspires, drawing readers into the world you're creating. As you embark on this entrepreneurial odyssey, please ensure that your Company Description is not just an account but an anthem, echoing the passion and promise of your venture.

Who are you, and what's your mission? This section is your chance to introduce your business to the world. Dive into your business's ethos, unique selling points, and objectives. Think of brands like Patagonia and their commitment to sustainability; that's the passion and clarity you want to convey.

3. The Landscape - Perform a Market Analysis

Understanding your terrain is paramount in the vast expanse of the business world. The Market Analysis serves as your compass, guiding you through the intricate landscape of your industry, illuminating opportunities, and highlighting potential pitfalls. It's not merely a section in your business plan; it's the lens through which you view the world, ensuring that your venture is viable and valuable in the marketplace.

Deciphering the Dynamics . A robust Market Analysis dives deep into the currents of your industry. It assesses your target market's size and growth potential, identifies key players and competitors, and decodes consumer behaviors and preferences. This section is your chance to showcase your understanding, showing that you know the market trends and are adept at leveraging them to your advantage.

Crafting a Strategic Stance . With the insights gained from your Market Analysis, you can carve out a distinct position in the industry. Whether identifying an underserved niche, understanding the pricing strategies that resonate with your audience, or pinpointing the channels that offer maximum visibility, Market Analysis provides the intelligence to make informed decisions. It's the foundation upon which your strategies are built, ensuring that your business moves purposefully and precisely.

In the grand scheme of your business journey, Market Analysis is your roadmap. It offers clarity amidst complexity, ensuring that every step you take is grounded in research and resonates with relevance. As you chart your course in the business world, let your Market Analysis be the beacon that guides you, illuminating the path to success and sustainability.

Would you set sail without a compass? You'll need to understand your market. I'd appreciate it if you could delve into current market trends, identify competitors, and understand potential customers. This section is about showing that you've done your homework and are ready to navigate the business waters precisely.

4. The Dream Team - Outline the Management and Organization

In the intricate dance of business, while strategy and vision set the rhythm, the people truly make the magic happen. The Management and Organization section of your business plan is where you introduce the maestros behind the curtain, the individuals steering the ship through both calm and stormy seas. This isn't just about listing names and titles; it's about showcasing the collective expertise and passion that propels your venture forward.

The Pillars of Leadership . Every successful venture stands tall on the shoulders of its leaders. In this section, delve into your key team members' backgrounds, experiences, and unique strengths. Highlight their past achievements, industry expertise, and the specific roles they'll play in driving your business's growth. Whether it's the visionary CEO with a track record of successful startups or the tech genius who's revolutionized processes in their previous roles, this is your chance to spotlight the human capital that sets your business apart.

Structuring for Success . In addition to the individuals, it's essential to outline the organizational structure to help your operations. Will you lean towards a flat hierarchy, promoting open communication and collaboration? Or may a more traditional, tiered system better suit your industry and goals? Accompanied by an organizational chart, this section should clarify roles, responsibilities, and reporting lines, ensuring that current and potential stakeholders understand how decisions are made and tasks are executed.

In the grand tapestry of your business narrative, the Management and Organization section is where you weave in the threads of leadership and structure. It assures stakeholders that not only do you have a compelling vision, but you also have the right team and organizational framework in place to turn that vision into a vibrant reality. Remember, businesses thrive not just on strategies but on the people who bring them to life.

Behind every significant venture is a team of dedicated individuals. Highlight your business's key players, roles, and expertise. Whether you're a solo entrepreneur or have a diverse team, showcase the brains behind the operation.

5. The Offer - List Your Products and Services

In the bustling marketplace of ideas and innovations, what truly sets a business apart is its unique offering to the world. The Products and Services section of your business plan is your stage, where you unveil the stars of your show. It's not just about listing items or services; it's about painting a vivid picture of the solutions you provide, the needs you address, and the value you deliver.

The Spotlight on Solutions . You can start by diving deep into the core of your offerings. What problems are they designed to solve? How do they enhance your customers' lives or fill a market gap? Whether it's groundbreaking software that streamlines workflows or a handcrafted product that adds a touch of luxury to everyday life, this is your chance to showcase the benefits and features that make your offerings stand out.

Diversity in Delivery . In today's dynamic business landscape, versatility is vital. Highlight the range and variety of your products and services. Provide a clear breakdown if you offer multiple product lines or varied service tiers. This demonstrates the breadth of your offerings and caters to a diverse clientele with various needs and budgets.

Crafting the Products and Services section is akin to curating a gallery. Each product or service is a masterpiece, reflecting your business's ethos, passion, and commitment to excellence. It invites potential stakeholders and customers to experience the value you bring. In this section, you're not just listing items; you're telling a story of innovation, dedication, and the relentless pursuit of delivering unparalleled value.

What's on your offering menu? Detail the products or services you're bringing to the table. Whether you're launching a groundbreaking tech product or a new line of vegan snacks, ensure your audience understands your value.

6. The Audience - Perform Customer Segmentation

In the vast arena of business, knowing your audience is the compass that guides every decision. Customer segmentation is not just a section in a business plan; it's the lens through which you view your market, allowing you to tailor your offerings and strategies to resonate with the right crowd. It's about understanding the myriad faces in public and crafting a message that speaks directly to each one.

The Mosaic of Markets . Imagine a tapestry, each thread representing a different segment of your audience. Some lines represent age groups, others geographical locations, and yet others, specific behaviors or interests. By weaving these threads together, you get a vivid picture of your customers, their desires, and how they interact with the world. Whether it's the tech-savvy millennials, the eco-conscious urbanites, or the luxury-seeking retirees, each segment has unique characteristics and needs.

Strategies Tailored to Tastes . With a clear understanding of your customer segments, you can craft strategies that resonate. It's like curating a playlist for different moods and occasions. Your marketing campaigns, product features, and customer service protocols can be fine-tuned to appeal to each segment. This personalized approach enhances customer experience and optimizes resource allocation, ensuring your efforts and investments are channeled where they matter most.

Diving into customer segmentation is akin to being a maestro, understanding each instrument's unique notes and rhythms, and orchestrating a symphony that captivates the audience. It's a dance of data and intuition, where insights drive innovation, ensuring that your business reaches its audience and resonates, engages, and builds lasting relationships.

Only some people are your customers, and that's okay. Could you define who you're targeting? Are you catering to the tech-savvy millennials or the eco-conscious Gen Z? Pinpointing your audience ensures your marketing efforts hit the bullseye.

7. The Megaphone - Define a Marketing Plan

In the bustling marketplace of ideas and products, standing out is both an art and a science. A marketing plan isn't just about shouting the loudest; it's about ensuring your voice carries the right message to the right ears at the right time. It's the megaphone that amplifies your brand's story, values, and offerings, ensuring they echo in the hearts and minds of your audience.

The Symphony of Strategy . Think of a marketing plan as a musical score, where every note, every pause, and every crescendo is meticulously crafted. It begins with understanding your audience, their desires, and their pain points. Then, it's about choosing the suitable instruments - social media campaigns, influencer partnerships, or traditional advertising - and playing them harmoniously to create a resonant melody. Each strategy, whether a catchy jingle or a viral video, is a note in this grand composition, aiming to captivate and convert.

Adapting to the Audience's Rhythm . The beauty of a well-crafted marketing plan lies in its adaptability. Just as a maestro might tweak a performance based on the audience's reaction, a business must be ready to pivot its strategies based on market feedback. This means constantly monitoring performance metrics, staying attuned to industry trends, and being agile enough to capitalize on new opportunities or address challenges head-on.

Ultimately, a marketing plan is more than just a blueprint; it's a living, breathing entity that evolves with your business and audience. It's about striking the right chords, creating a symphony of strategies that reach the masses and touch individual souls, turning casual listeners into loyal fans.

How do you plan to shout your brand's name from the rooftops? Whether leveraging the power of social media or diving into grassroots marketing, chalk out your strategy. Remember, it's not just about reaching your audience; it's about resonating with them.

8. The Engine Room - Provide a Logistics and Operations Plan

Behind every successful venture lies the intricate machinery of logistics and operations, often unseen but undeniably vital. It's the engine room of a business, where ideas are transformed into tangible products, and strategies are executed with precision. While the spotlight often shines on the end product or service, the logistics and operations plan ensures the show runs smoothly, efficiently, and sustainably.

The Choreography of Coordination . Imagine a ballet performance where every leap, twirl, and step is perfectly synchronized. Similarly, a logistics and operations plan is about orchestrating a dance of various elements - from sourcing raw materials to ensuring timely deliveries. It's about mapping out the journey of a product, from conception to the consumer's hands, ensuring that every stage, be it manufacturing, storage, or distribution, is optimized for efficiency and cost-effectiveness. This choreography is crucial not just for meeting business objectives but also for delivering consistent value to customers.

Adapting to the Ebb and Flow . Just as a ship's captain must be prepared to navigate through calm seas and stormy waters alike, businesses must be equipped to handle the dynamic challenges of the market. A robust logistics and operations plan is not set in stone; it's flexible, allowing businesses to adapt to changing circumstances, be it a sudden surge in demand, supply chain disruptions, or technological advancements. It's about having contingency plans, alternative routes, and the agility to pivot when needed.

In essence, while the external facade of a business might be its products, marketing, or brand image, the logistics and operations plan forms its backbone. The silent force keeps the wheels turning, ensuring businesses survive and thrive in the competitive marketplace.

The behind-the-scenes magic. Detail how you'll source materials, manage production, handle shipping, and everything else. This section showcases that you have a robust system to deliver consistently.

9. The Treasure Chest - Make a Financial Plan

In the grand tapestry of business, if strategy and vision are the threads, then the financial plan is the loom of everything. The treasure chest safeguards a company's future, ensuring every decision is grounded in fiscal responsibility and foresight. While the allure of innovation and marketing might capture the imagination, the financial plan translates dreams into actionable, sustainable realities.

It is mapping the Business Odyssey . Every entrepreneurial journey is filled with aspirations, but the financial roadmap dictates these aspirations' pace, direction, and viability. A comprehensive financial plan delves deep into the numbers, projecting revenues, analyzing costs, and forecasting profits. It's not just about crunching numbers; it's about understanding the story they tell - where the business stands today, where it aims to be tomorrow, and the financial milestones along the way. This roadmap serves as both a guide and a barometer, helping businesses navigate challenges and capitalize on opportunities.

The Pillars of Stability . Within the financial plan lie the pillars that uphold a business's stability: the income statement reflecting profitability, the balance sheet showcasing assets and liabilities, and the cash flow statement, the lifeline that ensures operations run smoothly. Together, these documents offer a panoramic view of a company's financial health, enabling stakeholders, from investors to employees, to gauge the company's potential and resilience.

Ultimately, a financial plan is more than just spreadsheets and projections. It's the treasure chest that contains the essence of a business's potential, its challenges, and its path to success. It's the tool that turns entrepreneurial dreams into tangible, sustainable enterprises, ensuring that the ship sets sail and reaches its destined shores.

Show me the money! Outline your financial projections, potential expenses, and revenue streams. Whether you're bootstrapping or seeking investment, a clear financial plan showcases that you're in this for the long haul and have a clear path to profitability.

10. The Captain's Log: Charting Your Course with a Timeline

In the vast ocean of entrepreneurship, where unpredictable currents can sway even the most robust vessels, the Captain's Log serves as the compass, guiding businesses through both calm and stormy waters. Much like the seasoned captains of old, who meticulously recorded their journeys, today's business leaders need a timeline—a Captain's Log—to chart their course, ensuring they remain on the right path towards their destined harbor.

Anchoring Vision to Reality . The Captain's Log, or the business timeline, is not just a record of where you've been but a beacon illuminating where you're headed. It captures the milestones, the challenges overcome, and the victories celebrated. Each entry is a testament to the company's journey, offering insights into past decisions and their outcomes. But more crucially, it provides a structured framework for the future, setting clear objectives, deadlines, and benchmarks. This timeline becomes the rhythm to which the business marches, ensuring that every crew member, from the deckhand to the first mate, is synchronized in purpose and pace.

The Legacy of Lessons Learned . As with any journey, the business path is filled with lessons—some hard-earned, others serendipitous. The Captain's Log preserves these lessons, ensuring they become part of the company's legacy. Future endeavors can draw from past experiences, avoiding pitfalls and capitalizing on proven strategies. It's a living document, evolving with each entry, reflecting the company's growth, adaptability, and resilience.

The Captain's Log is more than just a timeline; it's the soul of the business journey. The narrative tells the tale of a venture's past, present, and future, ensuring that no matter how tumultuous the seas are, the ship remains steadfast, with its eyes firmly set on the horizon.

Every epic voyage has milestones, ports of call, and moments of reflection. When do you envision reaching each landmark as you embark on this business journey? By setting a clear timeline for your goals, you're not just dreaming but committing. It's the rhythm to your business song, ensuring you dance to the beats of progress and pause to celebrate the milestones. Remember, it's not just about the destination but the journey, and a well-defined timeline ensures you savor every moment.

Wrapping Up

In the grand tapestry of business, a well-crafted plan is the thread that binds everything together.

Whether you're a budding entrepreneur or a seasoned business magnate looking to pivot, these steps will ensure your business plan is not just a document but a beacon guiding you to success. So, are you ready to chart your legacy?

How to Write a Business Plan in 10 Steps - PDF Template

How to Write a Business Plan in 10 Steps - PowerPoint Template

Frequently asked questions.

FAQ About How to Write a Business Plan

Understanding the Blueprint: What is a business plan?

A business plan is more than just a document; it's a roadmap for your entrepreneurial journey. Think of it as the GPS guiding your business from its nascent stages to its ultimate goals. At its core, a business plan outlines your business's vision, mission, and strategies to achieve success. It delves into the specifics, detailing your products or services, your target market, your financial projections, and the challenges you anticipate.

But why is it so pivotal? For starters, a business plan offers clarity. It forces you to crystallize your vision, understand your market, and strategize effectively. It's also a tool of persuasion – a well-crafted business plan can attract investors, partners, and top-tier talent. Moreover, it serves as a reference point, allowing you to measure your business's progress and adjust course when needed. A business plan isn't just a requirement for securing funding; it's the foundation upon which successful companies are built. Whether you're a budding entrepreneur or an established business owner, crafting a comprehensive business plan is the first step towards turning your business dreams into reality.

The Power of Preparation: Why write a business plan?

Embarking on a business journey without a plan is akin to setting sail on turbulent seas without a compass. A business plan is your guiding star, illuminating the path to success. It's not merely a document; it's a strategic blueprint that outlines your business's vision, objectives, and the steps needed to achieve them. But why is it so indispensable?

Firstly, a business plan provides clarity and direction. It forces you to introspect to truly understand your business's core values, target audience, and unique selling propositions. I want to let you know that this clarity is invaluable, ensuring every decision aligns with your overarching goals. Secondly, it's a powerful tool of persuasion. Whether seeking investment, forging partnerships, or recruiting top-tier talent, a well-articulated business plan showcases your commitment, foresight, and strategic insight; it's a testament to your business's viability and potential for growth. Lastly, a business plan acts as a yardstick, allowing you to measure your progress, identify potential roadblocks, and recalibrate your strategies when necessary. Writing a business plan isn't just a bureaucratic exercise; it's the cornerstone of business success, ensuring your entrepreneurial vision is grounded in reality and poised for growth.

Blueprint for Success: What needs to be in a business plan?

A business plan is more than just a document; it's a comprehensive roadmap that charts the course of your entrepreneurial journey. But what exactly should this roadmap contain? A business plan must provide a clear and concise overview of your business's foundation, direction, and potential.

To start, every business plan should have an Executive Summary . Please think of this as your elevator pitch, which is the essence of your business in a brief yet compelling manner. It should provide an overview of your business concept, key objectives, and a snapshot of your potential growth. Next, I'd like you to go into the Company Description . This section paints a vivid picture of your business, its mission, vision, and the unique value it brings to the market. Following this, a thorough Market Analysis is crucial. This segment should offer insights into your target audience, industry trends, and competitive landscape, showcasing your understanding of the market dynamics and your business's position.

Also, details about your Products or Services, Marketing and Sales Strategies, and Financial Projections are essential. These sections provide a deep dive into what you're offering, how you plan to reach your audience, and the financial trajectory you anticipate. Don't forget the Operational Plan – a behind-the-scenes look at the logistics, from supply chain management to daily operations—and the Timeline of when it gets done.

A business plan should be a holistic representation of your business's past, present, and future, serving as both a guide and a tool for persuasion.

Navigating the Pitfalls -Common mistakes when writing a business plan

It has its pitfalls in crafting a business plan. Many enthusiastic entrepreneurs, brimming with passion and vision, often need to pay more attention to some critical aspects, leading to potential missteps. Recognizing these common mistakes can differentiate between a plan that shines and one that falls flat.

First and foremost, many fall into the trap of Over-ambitious Projections . While optimism is valuable, unrealistic financial or growth forecasts can undermine your plan's credibility. It's essential to base your projections on solid research and realistic market expectations. Another frequent oversight is the Lack of Market Analysis . A business plan that doesn't thoroughly address the target market, industry trends, and competitive landscape can appear uninformed. This section is your opportunity to showcase your deep understanding of the market dynamics and how your business fits within that ecosystem.

Additionally, many entrepreneurs need to pay more attention to the importance of Clear and Concise Writing . A business plan riddled with jargon, complex language, or, worse, grammatical errors can detract from its professionalism. Remember, clarity and precision are critical. Anyone, from potential investors to new team members, should easily understand your plan. By being aware of these common mistakes and proactively addressing them, you can craft a business plan that stands out and the test of time.

Unraveling the Core - What are the three primary purposes of a business plan?

Diving into entrepreneurship often begins with a foundational document: the business plan.

But what drives the creation of this pivotal document? At its heart, a business plan serves three primary purposes, each interwoven and essential for guiding a business toward success.

To start, the business plan acts as a Strategic Blueprint . The roadmap outlines the company's direction, goals, and strategies to achieve those goals. This blueprint not only provides a clear path for the team but also helps in anticipating potential roadblocks. The compass ensures every decision aligns with the company's core objectives and vision.

Secondly, it serves as a Validation Tool . Before diving headfirst into the market, validating the business idea's feasibility is crucial. The business plan offers a reality check through market analysis, competitive research, and financial projections. It answers critical questions: Is there a demand for the product or service? What differentiates the business from competitors? Are the financial projections sustainable?

Lastly, the business plan is an Investor Magnet . Whether to secure a loan, attract venture capitalists, or onboard strategic partners, a well-crafted business plan showcases the company's potential and viability. The document instills confidence in potential stakeholders, assuring them that their investment is sound and that the business has a clear strategy for growth and success. A business plan isn't just a document; it's the lifeline that threads a business's vision, validation, and value together.

Decoding the Varieties - What are the different types of business plans?

Not all business plans are created equal. Depending on the goals, audience, and stage of the business, entrepreneurs might consider several distinct types of business plans.

First on the list is the Traditional Business Plan . Comprehensive and detailed, this type of plan is the most common and covers all aspects of the business. From an in-depth market analysis to detailed financial projections, it's the go-to format for startups seeking significant funding from banks or investors. This plan is robust, often spanning dozens of pages, and is designed to leave no stone unturned.

For those looking for a more concise approach, the Lean Business Plan offers a solution. Streamlined and to the point, it focuses on the essentials. While it follows the structure of a traditional plan, it only includes the most crucial information, making it ideal for businesses that need a plan for internal use or to adapt to rapidly changing markets.

Lastly, there's the Nonprofit Business Plan . Tailored for organizations operating for public or social benefit, this plan covers the standard business strategies and delves into the impact the organization aims to make. It's a blend of traditional business strategies focusing on mission-driven goals.

In essence, the type of business plan chosen reflects the business's objectives, audience, and stage. Whether a comprehensive deep dive or a high-level overview, each project is a guiding star, illuminating the path to success.

The Timeline Tangle - How long does it take to write a business plan?

One of the budding entrepreneurs' most frequently pondered questions is, "How long will it take to chart my business blueprint?" Much like the vast ocean, the answer varies based on several factors.

At the outset, the Depth and Detail of the plan play a pivotal role. A comprehensive Traditional Business Plan, with market analyses, intricate financial projections, and a detailed operational roadmap, can take several weeks, if not months, to perfect. This meticulous approach ensures every facet of the business is explored, making it a preferred choice for those seeking substantial funding or entering competitive markets.

On the flip side, with its concise and agile format, the Lean Business Plancan can be crafted in a matter of days to a few weeks. Tailored for businesses needing a nimble strategy or internal brainstorming, this plan focuses on the essentials, allowing quicker turnaround times.

However, beyond the type of plan, the Research Intensity and the Familiarity with the Business Domain also influence the timeline. A well-researched plan, grounded in data and insights, will naturally demand more time. Similarly, the learning curve might extend the drafting duration if an entrepreneur ventures into a new industry.

While there's no one-size-fits-all answer, the time invested in a business plan is a testament to its thoroughness and clarity. Whether it's a month-long endeavor or a week's sprint, the goal remains to pave a clear path toward entrepreneurial success.

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How to Start a Business: A Startup Guide for Entrepreneurs [Template]

Published: February 15, 2024

I started a local HVAC business in the summer of 2020, and since then, I’ve learned a lot about which steps are most important for getting a business venture off the ground. To help you make your business idea a reality, I've put together a complete guide that walks you through the steps of starting a business.

The guide covers every step I’ve discovered you need to start a business, from the paperwork and finances to creating your business plan and growing your business online. At the bottom, you’ll find a library of the best free tools and resources to start selling and marketing your products and services.

Use the links below to navigate to each section of the guide:

• What do you need to start a business?

How to Start a Business

How to make a business plan, how to decide on a company name.

• How to Choose a Business Structure

How to Register Your Business

How to comply with legal requirements, how to find funding for your new business, how to create a brand identity for your new business, tips for starting a business, resources to start a business, how to start a business online.

Let's get started.

Every budding entrepreneur wants more visitors, more qualified leads, and more revenue. But starting a business isn’t one of those “if you build it, they will come” situations. So much of getting a startup off the ground has to do with timing, planning, and the market, so consider if the economic conditions are right to start a company and whether you can successfully penetrate the market with your solution.

In order to build and run a successful company , you’ll also need to create and fine-tune a business plan, assess your finances, complete all the legal paperwork, pick your partners, research apps for startup growth, choose the best tools and systems to help you get your marketing and sales off the ground … and a whole lot more.

When I first started my business, I felt overwhelmed by the sheer magnitude of requirements, which is why I’ve summed up the process to make it easier for you.

In brief, the requirements for starting a business are:

• A business plan.
• A business name.
• An ownership or business structure.
• A business registration certificate.
• A legal license or seller’s permit (as well as other legal documents).
• A source of funding.
• A brand identity.

Without these elements in place, you unnecessarily risk your new business’s future. Now let’s go over these basic steps for starting a business.

• Write a business plan.
• Choose a business name.
• Choose an ownership structure.
• Register your business.
• Review and comply with legal requirements.
• Apply for funding.
• Create a brand identity.

Having a great business idea is only part of the journey. In order to be successful, you’ll need to take a few steps to get it off the ground. In order to refine your business idea and set yourself up for success, consider doing the following:

1. Write a business plan.

Your business plan maps out the details of your business, including how it’s structured, what product or service you’ll sell, and how you’ll be selling it. Creating a business plan will help you find any obstacles on the horizon before you jump into running a business.

Pro tip: Remember that part of a business plan is telling investors or funders which specific items you need funding for. Be sure to list what you need to be funded, the reasoning behind items, and how long you will need funding.

Recommended Reading:

• What is a Business Plan? Definition, Tips, and Templates
• How to Build a Detailed Business Plan That Stands Out
• How to Write an Ecommerce Business Plan
• How to Become an Entrepreneur With No Money or Experience

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

Jump to: How to Start a Business Plan →

Featured Resource: Free Business Plan Template

Below are the key elements in a business plan template, details about what goes into each of them, and example sections at the bottom. You’ll also learn tips for writing a business plan .

1. Use a business plan template .

The executive summary should be about a page long. It should cover:

• Overview . Briefly explain what the company is, where you’ll be located, what you’ll sell, and who you’ll sell to.
• Company profile. Briefly explain the business structure, who owns it, what prior experience/skills they’ll bring to the table, and who the first hires might be.
• Products or services . Briefly explain what you’ll sell.
• The market. Briefly explain your main findings from your market analysis and product market fit .
• Financial considerations . Briefly explain how you plan to fund the business and what your financial projections are.

Featured Resource: Executive Summary Template

On the marketing side, you’ll want to cover answers to questions like:

• How do you plan to penetrate the market?
• How will you grow your business?
• Which channels will you focus on for distribution?
• How will you communicate with your customers?

Pro tip: Marketing trends change year after year, so be sure to keep up on the latest trends by subscribing to the Hubspot Marketing blog .

On the sales side, you’ll need to cover answers to questions like:

• What’s your sales strategy ?
• What will your sales team look like, and how do you plan to grow it over time?
• How do you plan to scale for growth ?
• How many sales calls will you need to make to make a sale?
• What’s the average price per sale?

Speaking of average price per sale, you’ll want to go into your pricing strategy as well.

Featured Resource: Marketing & Sales Alignment Template

More importantly, it typically doesn’t entail giving partial ownership of the business away. Instead, it’s a way of getting funding not from potential co-owners, but from potential fans and customers who want to support the business idea, but not necessarily own it.

What you give donors in exchange is entirely up to you — and typically, people will come away with early access to a product, or a special version of a product, or a meet-and-greet with the founders.

Pro tip: Choose the right platform for your crowdfunding campaign type. Some platforms are more geared towards traditional investors, while others are for donations. Learn more about crowdfunding here .

5. Venture Capital Financing

Only a very small percentage of businesses are either fit for venture capital or have access to it. All the other methods described earlier are available to the vast majority of new businesses.

If you’re looking for a significant amount of money to start your company and can prove you can quickly grow its value, then venture capital financing is probably the right move for you.

Venture capital financing usually means one or more venture capital firms make large investments in your company in exchange for preferred stock of the company — but, in addition to getting that preferred return as they would in series seed financing, venture capital investors also usually get governance rights, like a seat on the Board of Directors or approval rights on certain transactions.

VC financing typically occurs when a company can demonstrate a significant business opportunity to quickly grow the value of the company but requires significant capital to do so.

Pro tip: A lot of venture capital financing is simply being in the right room with the right people. Make sure to network extensively if this is your approach to financing.

When you’re first starting a business, you’ll need to build the foundation for a strong brand identity. Your brand identity is about your values, how you communicate concepts, and which emotions you want your customers to feel when they interact with your business. Having a consistent brand identity to promote your business will make you look more professional and help you attract new customers.

Here’s what you need to do to develop your brand identity:

1. Design a logo.

Creating the right logo for your business requires careful thought and consideration. It should be representative of your brand’s purpose and target audience, while also being memorable and distinct from competitors.

To start, you need a deep understanding of your business’s mission, values, and target audience. Think beyond what your company does and truly examine why you do what you do and who you do it for. This knowledge will serve as the foundation for your logo.

Conducting market research and identifying current logo trends can help you understand what works well for others and strategize on how to stand out. Then, start brainstorming design ideas that showcase what makes your business unique.

For instance, you could try writing out a list of words that best describe your business and what makes it special and then use those words as inspiration to start sketching ideas and concepts.

Once you have some sketches created, pick which ones you think are the best and share them with stakeholders, colleagues, and buyer personas to gather feedback and refine your design. After narrowing down a design, you’ll want to test its versatility and scalability to ensure it works well in different sizes and formats.

Pro tip: Check out this blog on designing your logo, and then try out different logo design features in Canva’s logo maker .

2. Develop a visual identity.

Your brand’s visual identity doesn’t stop at creating a logo — you’ll also need to establish guidelines for typography, color palette, imagery, and other graphic elements. The more consistent your brand is with its visuals, the more consumers will be able to recognize and trust it.

To get started, consider creating a brand mood board. Ask yourself: What kind of emotions do you want your brand to evoke? Is there a specific visual aesthetic that you want to emulate? This can help you gather visual inspiration that resonates with your brand.

Choose your color palette and typography wisely. Spend some time researching color theory , as color can have a major impact on how people perceive your brand. Make sure your typography is readable and looks good across different sizes and formats.

Additionally, you should create other visual assets such as patterns, shapes, illustrations, and icons that pair well with your color palette and typography.

Pro tip: If design and color palettes aren’t your thing, consider hiring a freelance graphic designer on LinkedIn or Fiverr to help you create your visual identity and incorporate it into your logo and overall design.

3. Craft a tagline.

In just a few words, your tagline should encapsulate your brand’s essence and communicate its value. Think of it as a written or verbal version of your logo. Both elements are created to immediately capture the attention of your audience. Even if consumers don’t remember anything about your product or service, they will remember a catchy tagline.

When crafting your tagline, keep it simple. You want your tagline to be memorable, so aim for a short phrase and focus on key benefits or unique aspects of your brand. Also consider using techniques like alliteration, rhyme, or play on words to make your tagline stand out — just make sure it aligns with the rest of your brand’s voice and tone.

Pro tip: This is another element of starting a business that could benefit from someone with experience. A marketing consultant or a content writer could help you establish a compelling tagline with the next step of developing your voice and tone.

4. Develop your voice and tone.

Your brand voice refers to the personality that your brand adopts in its communication with its audience. It provides direction on what to say and how to say it, allowing you to differentiate yourself and cut through the noise.

A well-defined brand voice helps create a distinct and memorable identity for your brand, allowing you to connect with your target audience on a deeper and more meaningful level.

When determining the appropriate voice and tone for your brand, remember that consistency is key. Ensure that your brand voice and tone align with your brand’s values, mission, and positioning. Alignment between your brand’s personality and its communication style is crucial for building trust and authenticity.

Pro tip: Adapt your voice and tone to suit the preferences and understanding of your audience. Additionally, use emotion and storytelling techniques to engage your audience and resonate with them.

5. Create brand guidelines.

Once you determine all of the previously mentioned brand elements, establish a set of brand guidelines that communicate how to appropriately use them. Having these rules and standards set in place ensures consistent and cohesive messaging and representation for your brand.

Get started by defining the rules for using your brand elements across different channels and applications, such as digital and print media, social media profiles, web design, packaging, and any other relevant materials.

Show practical examples of correct and incorrect usage scenarios to demonstrate the do’s and don’ts of brand representation. This helps stakeholders and users understand the guidelines and their application. You can also offer your team templates or mock-ups to ensure correct implementation.

Once the brand guidelines are set, distribute them to internal stakeholders and relevant external partners. To make sure everyone’s on the same page, take the time to review the guidelines with everyone and consider conducting training sessions if necessary.

As your brand evolves, so should your brand guidelines. Continuously review and update them to reflect any changes or refinements. Keep the guidelines easily accessible and communicate any updates effectively.

Pro tip: A writing style guide is a great place to start when creating brand guidelines. Check out this blog on brand style guide examples.

Starting a business online is a little different from starting a traditional business. Here are some important steps for starting and scaling your business online.

1. Determine your niche and business idea.

Your business niche is the target focus area for your product or service. It’s important to choose a niche because customers like brands and businesses that specifically cater to their needs. Most customers are more likely to purchase products or services from a brand that provides personalized experiences.

When determining your niche and business idea, first identify your target audience and specify everything from their age to their interests. Then, use that information to figure out their principal need. If your product doesn’t resolve a specific need, your business will fail to get off the ground.

Pro tip: You should have a good idea of the market at this point. Use that knowledge to position yourself in a way that differentiates you from your competitors.

2. Conduct market research.

Conduct market research to understand what product or service you should offer, whom you should serve, and where you face the stiffest competition. From physical goods to digital downloads, understanding your target market and competitors will help you determine how to best position your product.

Your research should help you create a strong selling proposition . In other words, what makes your business unique? Why should someone buy from you?

Pro tip: Sometimes, market research is as easy as calling around to competitors and getting a quote on services. Make sure your pricing is competitive but not so low as to be unsustainable.

3. Learn online business laws.

While online businesses may require fewer licenses and permits than traditional businesses, there are still legal requirements that you will need to adhere to. Be sure to check:

• What kind of business license (if any) do you need to start operations?
• What legal structure makes the most sense for your company?
• Are there any permits that you need to obtain?
• Are there any inspections that you need to pass?
• Do you need a sales tax license?
• Are there any specific regulations applicable to online businesses only?
• What are the laws regarding hiring contractors and hiring employees?

Pro tip: Check out this article for more information on starting an online business and navigating online laws.

4 . Make sure your business is insured.

Depending on your business type, you may be required by state law to be both licensed and insured. HVAC businesses have a lot of liability as they involve both plumbing and electricity. I spoke with several insurance agents before deciding on the best insurance for my business needs.

There are also many different business insurance types, such as:

• Liability insurance.
• Worker’s comp.
• Property insurance (think your business location, tools, and equipment you use).
• And more. Be sure to research these different insurance types and purchase the necessary ones.

Pro tip: Check out this article on small business insurance.

5. Create a website.

After handling the research, taking care of legalities, and honing your products or services, it is time to create your website . When creating your website, you will need to choose a strong ecommerce platform that will allow you to sell products online.

Pro tip: Check out Hubspot’s free CMS tool for website building here.

6. Set up shop.

Once your website is complete, it’s time to add products or services to your store. When adding your products, pay attention to product images and descriptions. Having a crisp image and a detailed but concise description will help your audience maneuver your website smoothly.

After you have finished setting up your store, it’s critical to ensure you offer a seamless shipping or delivery experience to your buyers. For example, you can use HubSpot to manage quality control before you ship products out.

Finally, you want to make sure everything is working before you hit the live button on your website. Make sure that everything is clickable and that all pages look good across all devices and browsers. Once you’ve checked that, you are ready to go live.

Pro tip: If you take credit card information on your website, you will need to abide by compliance laws that ensure the safety of sensitive data. Read more on credit card compliance .

7. Create a marketing plan.

You’ve created an awesome product, and now it’s time to get the word out. In other words, it’s time to grow your audience. There are numerous ways to reach your target customer, including:

• Social media : Use hashtags and paid ads to expand your reach.
• Influencer marketing : Send free samples to “celebrities” in your niche.
• Facebook groups : Connect with your target market on this platform.
• Google advertising : Put your products in front of people all over the web.
• Content marketing : Publish blog posts to bring organic traffic to your site.
• Word-of-mouth : Encourage customers to spread the word.
• YouTube videos : Start a channel to showcase your products.

Pro Tip: Google ads and LinkedIn ads regularly offer discounts or free ad money; consider using these promos to try online advertisements out.

8 . Grow your business.

You’ve heard it said that in business, you’re either growing or you’re dying. Here are a couple of tips for growing your business online:

• Reduce the amount of time it takes online viewers to receive value from you and your brand.
• Answer the questions no one in your industry is answering — for example, a lot of companies won’t talk about pricing, forcing customers to keep looking for someone who will.
• Create a dynamic website that changes with the times. Update your images and writing to reflect what’s happening with your business now, and ensure your website isn’t dating you.
• Invest in content and SEO . They aren’t cheap, but they are really important for being found online, organically.

Pro tip: Check out this blog on how to become an SEO expert, according to HubSpot’s SEO team.

9. Watch your income and expenditures closely.

The first year of your business is an essential set point for discovering your overhead and your profit. Have a date in mind of when you want your business to start turning a profit and a solid plan for if you aren’t meeting that goal. Read further on potential exit strategies below.

Pro tip: Use a free business budget template to monitor your finances.

10. Plan for an exit strategy.

If you’re like me, you didn’t consider an exit strategy when thinking up your business. You probably assumed you’d run your business for the foreseeable future. However, economic uncertainty or unexpected success can both impact the end of your business. In fact, 90% of startups fail , which makes it a wise choice to know under what circumstances you would close down your business.

You could also experience unexpected buzz and success and be offered a buyout. A good exit strategy will plan for this as well. What amount of money would make selling worth it? Consider also how long you would have to run your business before considering offers. Some want to sell high and fast, whereas other business owners want to see where things go during a set amount of time.

An exit strategy could also include who you want to inherit your business, maybe family or an employee.

Pro tip: Check out this blog on the importance of having an exit strategy.

Next Steps: Getting Ready to Launch Your Business

I know from experience that being a small business owner isn’t easy, but with the right plan, you can set up your business for success. Be sure to check and know your requirements, have a solid business plan, and submit your legal paperwork before you take your business live. Once you have a solid business plan and the financing to execute your goals, you’ll be well on the path to launching a successful enterprise.

Editor’s note: This post was originally published in August 2019 and has been updated for comprehensiveness.

Don't forget to share this post!

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13 steps on how to start a business (2024).

Starting your own business can be an exciting and rewarding opportunity. With careful planning and the proper legal considerations, it can be a straightforward process. This is especially true if you have an entrepreneurial mindset, a positive attitude, persuasive communication skills, and self-motivation. You’ll also need the right information to set you up for success. In this article, we’ll discuss how to start a business in 13 steps.

Key Takeaways 

• Your business idea should have unlimited earning potential.
• Competitor research helps you determine product viability.
• A business plan can help you acquire funding or partners.
• Your business structure has tax, legal, and liability implications.
• You’ll need a business bank account, EIN, registered business name, and business number.
• Use business tools to help streamline your processes and simplify tax time.

Table of Contents 

• Determine Your Business Idea
• Research Competitors and Market Trends
• Build Your Business Plan
• Select Your Business Structure
• Register Your Business and Get Licenses
• Set Up a Business Account for Your Business
• Secure Funding for Your Venture
• Obtain a Business Credit Card
• Prepare for Tax Obligations
• Get Business Insurance
• Invest in the Right Business Tools
• Market Your Business
• Make Your Business Scalable

1. Determine Your Business Idea 

To start your own business, you need to have an idea. Your idea creates the foundation for the business. The more you expand on the concept, the stronger your base is. 

Your idea must have earning potential. It can be a one-time project, like developing an app or an invention you plan to sell. But in most cases, it should have unlimited earning potential and be something people will pay for. 

Your business idea should be something you have some skill at or a strong interest in. One of the top markers of a successful entrepreneur is motivation and determination. Your business is unlikely to succeed if you lose interest or faith in your product. 

Ask yourself if your business idea solves a problem. You are more likely to succeed if there’s a market gap that your business can fill. A diluted market drives down the value and increases your marketing overhead.

While you’re developing your idea, keep an open mind. Review and critique your idea often and ask for feedback from friends and trusted experts in the field.

A great business idea is the cornerstone of how to start a successful business. Take your time with this step and think it through carefully.

2. Research Competitors and Market Trends

A critical step in how to start a company is performing due diligence. Start with primary research by exploring the market. Connect with your potential market and perform interviews. Use social media or footwork to conduct surveys about consumer interest. Observe how the lack of your product impacts your market or how consumers use similar products. Utilize focus groups and contract research services, if applicable.

Move on to secondary research by collecting and analyzing existing data. Find and examine any competitors, including variations on your theme. Note their price point, marketing scheme, delivery methods, storefronts, and locations in your market area. Review all their iterations, versions, color options, size choices, flavors, and other options that might reflect their market research. Read their customer and peer reviews, where applicable. 

Run a thorough SWOT analysis by exploring your strengths, weaknesses, opportunities, and threats. Use your primary and secondary research to support your results. This data can help you focus your idea and make the necessary adjustments before settling on a concept. 

Complete a financial viability analysis to determine if you can produce the product in a way that allows for continuity and reasonable profit. Consider supply chain issues (shipping, flights, trains, etc.), resource trends (lumber, steel, gold), and common staffing issues. Many people assume it’s easy to find employees, but the reality can be different in many markets.

Perform a minimum viable product (MVP) test. This means you create a prototype or simplified version of your product and launch it to a select group of potential clients. Observe whether they find it valuable, how they use it, and whether or not it fills the market gap. 

3. Build Your Business Plan 

Writing a business plan is often the most overwhelming of the steps to starting a business. It is a key document used to attain financing, stakeholders, and partners. Even if you don’t want partners or need a loan, your business plan acts as a written foundation. 

If you were thorough during steps 1 and 2, creating a business plan is easier than you think. In many cases, it’s as simple as filling in the blanks with the data you’ve already collected. Follow this outline for the key components of a business plan:  

• Executive Summary: This is a short overview of the main aspects of your business. It’s meant to capture attention and interest in your project. 
• Company Description: Use this section to describe your company. Give an overview of your vision and answer the five W’s—what, where, when, why, and how. You’ll have a chance to go into detail later. Keep it concise. 
• Market Analysis: In this section, you’ll distill your market research into key points. Demonstrate that you’ve completed a thorough market analysis without going into too much detail about your process. 
• Management and Organization: Outline your organization structure and business type. Include how and who will make decisions and an organizational chart if it’s relevant.
• Products and Services: List your products and or services in detail, including descriptions and pricing.
• Customer Segmentation: Divide your customer base into segments with shared characteristics or preferences.
• Marketing Plan: Include your marketing plan in detail. How to create a marketing plan is discussed later in this article. 
• Logistics and Operations Plan: Add a section that discusses how you’ll achieve the end product.
• Financial Plan: Include a detailed financial plan. It’s likely to be the most scrutinized section if you’re applying for funding or seeking partners.
• Appendix: Include any other detailed information on the aspects you outlined earlier in the business plan, particularly about your logistics and market research. 

4. Select Your Business Structure 

Many small businesses start as sole proprietorships 1 IRS. “ Sole proprietorships ” Accessed on March 20, 2024 2 IRS. “ Business structures ” Accessed on March 20, 2024 for the ease of establishment and financial benefits. Sole proprietorships don’t require legal consultation to establish, they’re easy to dismantle, have fewer upfront fees, and reporting taxes is as simple as completing a personal tax return. You also don’t need to share the profits.

The major drawback to a sole proprietorship is personal liability. Your business is not registered as a separate, legal entity, so you have no protection against lawsuits and tax implications. 

Partnerships 3 IRS. “ Partnerships ” Accessed on March 20, 2024. are a business structure type that’s suitable if you choose to work with one or more other people. Partnerships include general, limited, or limited liability partnership (LLP) structures. In a general partnership, all parties share the profits, debts, and liabilities. A limited partnership combines both structures in that one person takes on the liability while the other remains a silent partner. An LLP is common among doctors and lawyers who share a practice. Personal assets are siloed against liability in an LLP. 

In a partnership, both parties can pool labor and resources. They can act as sounding boards for each other, helping to bring new ideas to life. However, with a partnership comes the opportunity for disagreement or mismanagement, additional debts or liabilities, and increased difficulty in selling or dissolving the business.   

A corporation is a legal entity of its own. 4 IRS. “ Incorporating ” Accessed on March 20, 2024 It separates the individual business owner, shareholders, and board members from any legal liability and business assets . Starting a corporation involves a significant amount of paperwork and ongoing annual filings. 

It’s easier for an incorporated business to raise capital, sell shares, and divest ownership. While corporations can enjoy decreased tax rates, you are essentially taxed twice, first as a corporate entity on profits, then personally on your dividend income and capital gains. 

Small businesses that start as sole proprietorships can always scale up to a partnership, corporation, or limited liability entity.

5. Register Your Business and Get Licenses

This step in starting a small business has a lot of variation. As a sole proprietor, you don’t need to register a business name if you do business under your own name. You also don’t need an employer identification number (EIN) if you don’t have employees, but it helps when it comes time to open a business bank account and pay taxes. Visit the IRS website to register for an EIN 5 IRS. “ Apply for an employer identification number online ” Accessed on March 20, 2024 when and if you decide to hire employees.

You will need to register your business and apply for a license or permit depending on your state and the nature of your business. A state tax ID can also help protect sole proprietorships against identity theft. 6 SBA. “ Get federal and state tax ID numbers ” Accessed on March 20, 2024 Visit your local municipal, state, or county website for more information. 

To stand out as a business entity, it’s important to choose the right business name. Research other businesses with similar names to see if your name infringes on their registered identity. The US Small Business Administration (SBA) can help you determine if you need to register your name with the local, state, and federal government. 

6. Set Up a Bank Account for Your Business

Setting up a business bank account 7 SBA. “ Open a business bank account ” Accessed on March 20, 2024 can make managing your business finances much simpler. A business bank account can also help you remain legally compliant. It’s easier to attain a business credit card and merchant services with a business checking or savings account. You receive limited personal liability protection and better purchasing power. 

Shop around for a bank with lower fees, introductory offers, and good benefits. When you’ve made your choice, you’ll need your social security number (SSN) or employer identification number (EIN), business license, ownership agreement, and proof of business address. If you are incorporated, you’ll need your articles of incorporation and proof of address for the named director.

7. Secure Funding for Your Venture 

Acquiring funding is one of the most important steps in how to start a small business. This financial decision can affect your business structure and the operation of your business. Draw on the financial section of your business plan to determine how much funding you’ll need. 

Self-funding through personal investments, mortgages, and family or personal loans can ensure you remain in control of the business. Speak to your mortgage advisor and financial planner about all the risks associated with leveraging your real estate assets or tapping into your retirement investments to fund a business venture. You take on all the risks with self-funding.

Venture capital from investors offers upfront financing for a share in the business and participation in the business decisions. It’s not a loan but an exchange for equity. It can also change your business structure.

Crowdfunding is another option that requires low risk for the reward. Crowdfunders donate or give money to your business in return for an acknowledgment rather than a share of your company.

A small business loan from a bank or professional lender is the perfect opportunity to pull out the business plan you worked so hard on. Be prepared to shop around for the best rates and terms for your loan. You’ll likely use the same bank or credit union for your business bank account and credit card.

You can also double your odds with a US SBA-guaranteed loan. Lender Match can pair you with a partner bank that offers SBA-guaranteed loans.

The US SBA also offers several investment programs 8 SBA. “ Fund your business ” Accessed on March 20, 2024 , including the Small Business Investment Company (SBIC), the Small Business Innovation Research (SBIR) program, and the Small Business Technology Transfer (STTR) program. Each program offers funding to specific small businesses.

8. Obtain a Business Credit Card 

A business credit card helps establish lines of credit with your suppliers and for large purchases required for product development. Getting a business credit card is difficult without an adequate credit history. 

Some banks will put you on a probation period with a business-secured card that acts like a credit card but needs to carry a balance to make purchases. As you regularly make work-related purchases and payments to the card, the bank reports your history to various credit bureaus. It’s a good way to build credit history for your business when you are just starting out.

Credit card companies require the same information the bank asks for when you open your business account. And, just like with your bank and loan, you’ll want to shop around for a good rate, terms, and benefits.

9. Prepare for Tax Obligations

Small business owners operating general partnerships or sole proprietorships have the same tax responsibilities as regular taxpayers. You are responsible for filing your tax returns and paying your taxes owed on time—failure to do so results in penalties.

A corporation or LLC business structure will have additional obligations, including filing annual reports. However, corporations can file in calendar years or fiscal years. 

Filing your taxes as a small business owner can be easy with the right support. You’ll want to get as much for each deduction as possible. Tracking your expenses, billable hours, and invoices is easier with expense-tracking software .

10. Get Business Insurance

Business insurance 10 SBA. “ Get Business Insurance ” Accessed on March 20, 2024 offers protection against unforeseen costs like natural disasters, lawsuits, death, and accidents. 

Some types of business, loan, bank, and lease agreements require insurance. If you have employees, you are federally required to have Workers’ Compensation, Unemployment, and Disability Insurance. Other insurance requirements vary by state.

Common types of business insurance include:

• General Liability Insurance : Suitable for any business, general liability covers financial loss from settlements, judgments, bodily function loss, libel, slander, medical expenses, and property damage.
• Product Liability Insurance : This type of insurance protects businesses that manufacture, wholesale, distribute, or retail a product from financial loss resulting from a defective product.
• Professional Liability Insurance : Suitable for service businesses, this insurance protects against financial loss from malpractice, negligence, and errors.
• Commercial Property Insurance : This type of insurance protects businesses with property and physical assets from loss and damage resulting from weather, vandalism, and riots.
• Home-Based Business Insurance : This is a rider added to home insurance for business owners who operate out of their homes.
• Business Owner’s Policy : This policy suits all small business owners and combines other typical coverages into one convenient, low-cost option. 

Not all business owner’s policies cover everything. Your business location can also influence your coverage and rates. Carefully read your proposed policy and discuss the details with your provider before purchasing.

11. Invest in the Right Business Tools

Investing in business tools can streamline your small business administration and processes, leaving you more time to focus on aspects of your life you can’t automate, like self-care.

Accounting Software 

Accounting software can help streamline your financial processes. FreshBooks accounting software is cloud-based for your convenience. It offers industry-standard double-entry accounting, invoicing, bookkeeping features, and expense tracking. 

Project Management Software 

Utilize project management software to create professional documents, RFPs, SOWs, and project plans. FreshBooks project management software includes templates, collaboration tools, and web-based centralized file storage.

Payment Processor 

Payment processors allow you to take online and in-person payments for invoices and services. FreshBooks Payments can do all that and more, integrating with multiple payment providers and making it easier for clients to pay for your products or services. Send invoices directly from the FreshBooks app or your online account. Invoices contain links and one-click payment options to streamline the process for your clients. 

CRM Software 

Client/Customer Relationship Management (CRM) software combines all your client data into one cloud-based location. FreshBooks software offers multiple CRM integration partners to make collaboration and customer management easy.

Scheduling Software 

Scheduling software can save time and streamline your small business administration. You can manage shifts, clock in and out, assign salaries and permission, and more. FreshBooks integrates with several top-rated scheduling products to help simplify your business processes.

Inventory Software

Inventory software helps you to track incoming and outgoing inventory, identify weaknesses in production, and streamline production efficiency.

12. Market Your Business 

In this digital age, there are more ways of marketing your new business than ever before. Start by developing your brand package. It can be as simple as selecting a font and colors for your business name. Your brand will be the most recognized feature of your online presence. It’s worth taking the time to consult a professional to develop a brand package. Professionally developed brand packages should include original logos in digital and print-ready format. 

When it comes to an online presence, at a minimum, you should have a Facebook page or website. These platforms allow you to inform people about your services, hours of operation, and contact information. Facebook offers step-by-step instructions on how to set up your page and best practices to maximize the platform.

When creating a website, you get what you pay for. Some companies offer free websites but charge you to unlock features like using your own domain name and adding payment options. 

You can also use social media platforms like Instagram and TikTok to put your brand in front of prospective buyers. Paid social media advertising can ensure customers in your preferred demographic see your product by utilizing data mining and algorithms.

Advanced online marketing techniques use search engine optimization (SEO) techniques. These methods use keyword and phrase strategies to boost your position in browser searches.

Analog marketing includes talking about your product at service groups, church functions, and other public speaking opportunities. Print advertising in specialized or location-specific magazines can provide long-term visual exposure, depending on the display location.

13. Make Your Business Scalable 

A common mistake small businesses make is failing to plan for success. Breaks in production or delays in promised services can cause the consumer to move on to other options. Design your new business so that you can expand production, add partners to help manage workload, or develop collaborative relationships with other creators that give you options when you need to pivot.

Your upscale plan should include tools that help your growing small business administration needs.

Introducing your products in phases is another way to scale your business, rather than rushing all your products to market at once. 

You can also expand your marketing plan in phases to allow you to reach broader markets as your brand gains recognition.

How To Start a Business With No Money 

Starting your own new business can seem like a fantasy when finances are tight or in a deficit. But before you give up hope, know there are ways to do it. 

The first recommendation is to keep your current job. It provides you with an income while you get your business plan together. Another step is evaluating your financial needs and what it will take to make your entrepreneurial dreams come true. For example, you might need to take out a small business loan.  

Don’t forget the power of experience. Talk to someone who’s succeeded in small business ownership, knows about money lending and leveraging capital, or has experience in the field of business you want to get into, or all three. 

Finally, get out into the community and meet people. Networking with the right people can open doors you may not know about.

You can learn more in our article on How to Start a Business with No Money . It outlines the steps to starting your own business and explores which businesses are the cheapest to start. 

Launch Your Business Dreams 

Small business ownership can put you in control of your destiny. With careful planning and the proper support, starting a small business can be an exciting and rewarding endeavor. Follow the steps outlined in this article to begin your entrepreneurial journey. 

Set yourself up for success by utilizing tools designed for small businesses. FreshBooks business suite of software tools offers features, integrations, and solutions for small business owners.

Article Resources

• IRS. “ Sole proprietorships ” Accessed on March 20, 2024
• IRS. “ Business structures ” Accessed on March 20, 2024 
• IRS. “ Partnerships ” Accessed on March 20, 2024.
• IRS. “ Incorporating ” Accessed on March 20, 2024
• IRS. “ Apply for an employer identification number online ” Accessed on March 20, 2024
• SBA. “ Get federal and state tax ID numbers ” Accessed on March 20, 2024
• SBA. “ Open a business bank account ” Accessed on March 20, 2024
• SBA. “ Fund your business ” Accessed on March 20, 2024
• IRS. “ Filing and paying your business taxes ” Accessed on March 20, 2024
• SBA. “ Get Business Insurance ” Accessed on March 20, 2024

Sandra Habiger, CPA

About the author

Sandra Habiger is a Chartered Professional Accountant with a Bachelor’s Degree in Business Administration from the University of Washington. Sandra’s areas of focus include advising real estate agents, brokers, and investors. She supports small businesses in growing to their first six figures and beyond. Alongside her accounting practice, Sandra is a Money and Life Coach for women in business.

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How To Create A Startup Business Plan

Why Should You Write a Business Plan?

What should you include in a business plan, top tips for creating a small business plan, avoid these mistakes when writing a business plan, frequently asked questions.

Have you made a business plan yet? If the answer is no, keep reading.

Small business plans make a world of difference when trying to achieve your financial goals. When you decide to write and formalise your start-up business plans, you not only clearly define your target customer, but plan your sales, marketing, and business operations too.

If you are asking yourself, how do I create and write a business plan? My New Venture is here to help. With the guidance of real-world experiences, tips, and advice, you can easily learn how to establish your business plan.

What is a business plan?

A business plan is a written document that describes your company and provides an overview of its future. Creating a business plan is essential to starting and running a successful business.

Not only will the plan set out your business strategy by outlining actions and goals but it can encourage you to make concrete objectives.

Planning and preparation are key for business longevity and continued success, that’s why a business plan highlights any gaps in your start-up that you may not have noticed if it wasn’t in writing.

Are you an entrepreneur that may require external funding? Investors rely on business plans to examine the feasibility of funding your start-up. Presenting a bank or outside investor with a strategic and well researched business plan is the first step in winning a loan or funding.

Your business plan will act as the written document that outlines all your start-up ideas, strategies, launching and venture management. As you prepare your proposal, it’s important to remember that it may change and evolve as you dive deeper into your market. A well-constructed business plan is the first step in ensuring success for any entrepreneurial endeavour.

The Executive Summary

This component of your business plan gives readers an initial overview of the entire document. The executive summary will help readers understand what to expect from the document and essentially what they will learn from your business plan.

Why is this an essential element?

Your executive summary may be the make or break for investors to continue reading the rest of your business plan. This overview of your research should concisely summarise your start-up business plans to encourage investors to act on your idea.

A Description Of Your Business

Now it’s time to explain the history of your start-up business. Your business description should include answers to these questions:

Have you started trading, if yes, when?

What progress has your business made, personal industry background, the owner of the business, business ownership.

It’s important to make your business plan accurate yet engaging, to stand out from other start-ups. It’s best to avoid technical jargon when explaining what makes your product or service different from the rest. Consider whether your start-up business offers any benefits to change and improve your industry?

Although you may not feel like spotlighting disadvantages or improvements, identifying these and highlighting how you plan to address and overcome them, will retain investors’ interest in your business plan.

Details Of Marketing Strategies

Your marketing strategy is the best way to show your plan of action, designed specifically to promote and sell your product or service. This element of your business plan will reveal your position in the market, taking into consideration the quality, price, unique selling features, and benefits of your product or service. As well as outlining your current decisions, you should provide details of your future strategy to retain and reach your ideal customer.

As a guide, your marketing strategy should provide information on these four key subjects:

Price: how much will you be selling your products for? How did you get to this price point?

Product: what are you selling and how is it unique in the market, promotion: how do you plan to reach your ideal customer, place: where will your product be sold place: where will your product be sold.

An Analysis Of Your Competitors

Choosing the right market for your product or service is one of many make or break decisions for your start-up business.

Planning your market entrance by researching and analysing competitors is the best way to reach customers and persuade an investor to trust your research. Performing a competitive analysis will give you a head start on success and act as the basis of your business plan. Creating a strategy that suits your business by researching major competitors not only gives you insight into their sales and marketing but also product performance. This will support your conclusions and validate your final business decisions.

What should I include in my competitor analysis? This may change depending on your market, customer, and product, however, answering these questions is the best groundwork:

Who are your competitors?

How big is your target market, who is your ideal customer, industry trends and trajectory, informed guesses and future goals.

Don’t overcomplicate the process. Find supporting sources relevant to your market by using:

• Government statistics offices
• Credible news outlets for your specific industry such as Real Business Magazine , Business Matters Magazine , Elite Business Magazine
• Academic research
• Industry associations

An Operations And Management Plan

This section of your business plan includes the organisational and management department of your start-up business. Clearly outlining who’s operating your venture and the details concerning the legal structure will help communicate to investors the potential in investing. Operations management planning will allow your business to seize opportunities and tackle challenges effectively.

Do you have a management team? Using an organisational chart can easily visualise your internal team by including the different roles, relationships, and responsibilities.

Financial Details And Forecasts

Aside from your vision, goals, and hard work, the success of your start-up relies on its financial health. This section of your business plan will reveal to investors the extent to which your start-up is viable for the foreseeable future.

Your financial details and forecasts should include:

An income statement

A balance sheet, cash-flow statement, financial data and projections.

This component of the plan is crucial to forecast and identify gaps or negative cash flow within your start-up and how you plan to improve and adjust operations. In short, your financial forecasts translate your start-up business into numbers.

A Development Plan Of Products And Services

Your product or service will feature predominantly throughout your business plan. However, this section is vital to outline important or specialised details to grab readers attention. It’s important to consider the launch of products or services in the near future within your development plan. This will not only build interest and trust with investors but show how your goals can be broken down into smaller, actionable tasks.

Do you sell many different products? It might be worth including general information on each to avoid an information overload.

Do you only stock a handful of products? You should aim to include additional details on each product.

Business plan writers have weighed in and shared with us their specialist advice on what to include to create a winning business plan.

Keep these top tips at hand when writing your start-up business plan:

Know your audience, it’s important to adapt your business plan for investors, companies, or banks

Evidence is key in supporting your claims, stand out from competitors, know why you’re different, be realistic in all financial estimates and projections, think like a banker, write your business plan through the lens of the reader, be pragmatic with the time and resources available to you, focus on your future progression and problem solving, ensure that your numbers are consistent throughout you plan, be clear and concise with your goals and objectives, add milestones to illustrate how you can achieve them where appropriate.

When it comes to writing your business plan, the final document is usually the result of many different drafts. Preparing a business plan for a small business is trial and error as the research develops and progresses as your understanding of your business and market grows.

Avoid these common mistakes when writing your business plan:

Formatting your business plan is second priority to content. The substance and solid basis of facts and research should always be more important than how it is presented. However, balance is key! It's important to remember that investors may be visual and lose interest in your plan if it seems too text heavy or hard to understand.

Empty claims with little to no research. include statistics, data, and quotes after each time you make a statement regarding your product or service. this will prove to readers that your argument comes from reputable and knowledgeable sources., avoid the use of strong adjectives and superlatives. this means words such as ‘amazing,’ ‘outstanding,’ or ‘best’ should be removed from your business narrative. not including these words in your business plan adds credibility to your plan., unrealistic financial projections that may not be fulfilled. present reasonable financial forecasts to ensure investors are interested in investing in your venture. always remember to accurately differentiate between revenue and profit., remember to always be conservative with your time predictions. overly optimistic time frames are usually unachievable, and delays regarding your product or service are expected in the beginning phases of your small business., how long should a business plan be.

Have you heard the phrase, as long as a piece of string? Your business plan is a large document that includes research, information, and data specifically for your start-up business. This means it’s hard to provide a universal length, it’s best to be concise and avoid waffling, but follow our guide and measure a plan by readability and summarisation.

What Is The Proper Format For A Business Plan?

There’s no set format but it should be simple, standard, and most importantly, easily understood. For good practice, aim to use standard fonts such as Arial or Times New Roman which are widely recognised and accepted. Always remember to number each page and include your company name in either the header or footer of each page.

Should I Hire Someone To Write My Business Plan?

If you are stuck on time, good news! You can hire a business plan writer. This will ensure your business plan is industry accurate, written well, and able to convince your intended audience to make an action. As your business plan is a very important and strategic tool for most start-up businesses, this may be the best option for you.

When selecting the right business plan writer make sure to read reviews, assess the quality of their writing and ensure the price works for you.

Sign up to My New Venture and we’ll guide you through everything you need to know to create and execute your business plan.

Related guides.

Have you conducted market research for your small business? This may seem like a daunting task to begin with, but once completed, you’ll soon see how market research can greatly help your small business.

Everything that you need to know to start your own business. From business ideas to researching the competition.

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Our best expert advice on how to grow your business — from attracting new customers to keeping existing customers happy and having the capital to do it.

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Start » strategy, ready, set, startup checklist: 25 steps to starting a new business.

Before you start your new business, here are 25 tasks to check off on your startup to-do list.

Starting a new business can be daunting. Breaking it down into smaller steps can make the process feel more manageable and help you build momentum until your first sale. If you have a great idea, but you’re not sure where how to get it off the ground, start with this checklist.

1. Perform market research

Whether you have an idea already, or you’re ready to build something from scratch, the first step is to do some research. Investigate how much demand there is for your product or service, as well as the existing competition. The information you learn can help you narrow down your business concept.

Market research encompasses both primary and secondary sources. In practice, it entails conducting focus groups, surveys, and interviews with potential customers (primary research) and reading government statistics and market reports (secondary research).

2. Test your concept

Before you dive in, test your business idea to make sure it’s based on a valid market need. Perform a competitive analysis to make sure your product or service doesn’t already exist. You may want to create a prototype or conduct beta testing to get user feedback on the product or service you plan to launch.

3. Work on your pricing model

There are a few ways to price your product or service, such as a subscription model, flat-rate pricing, or premium pricing. Your pricing model should help you find the right balance of value and revenue as well as fine-tune your price per item.

4. Build a business plan

A business plan is necessary for when you apply for funding. It also helps guide your operations. The goal of your business plan, according to the U.S. Small Business Administration (SBA), is to:

• Help find financing.
• Show you’ve vetted the market.
• Fully detail your execution strategy.

A business plan generally consists of a combination of market analyses, financial projections, and details about your business operations. This plan should be iterative and revisited as your business grows to reflect your expansion and future goals.

5. Work on your sales pitch

Hone in on what makes your business different from everyone else’s. When you’re just starting out, you must craft an elevator pitch that articulates what sets you apart and why investors and customers should care. A great sales pitch will explain what you do or sell to whom and why in two to three sentences.

6. Find funding

There are many sources of funding for new businesses. Some business financing options include:

• Short-term loans .
• SBA loans .
• Crowdfunding .
• Angel investments .
• Venture capital .
• Working capital loans .

Many entrepreneurs also bootstrap their ventures using their personal finances or by asking their friends and family for initial capital. Use your business plan to decide what option is right for you.

7. Decide on a business structure

The way you structure your business entity has tax and liability implications. No matter which business structure you choose — a sole proprietorship, limited liability company, or a nonprofit — if it’s more complicated than a sole proprietorship, you will need a lawyer to help set it up correctly. Consult an expert from the start to avoid any tax complications.

8. Get the right licenses and permits

Some businesses, like restaurants and cafes, need specific licenses to operate. Depending on where you operate and your industry, you may need several permits and licenses. Check this list from the SBA to find out what, if any, you need to procure.

9. Open a business bank account

Even when you start a sole proprietorship, it’s critical to keep your business and personal finances separate. Open a separate bank account for your new entity to keep your cash flow organized and trackable when it comes time to do your taxes.

[Read more: 5 Easy-to-Start Business Ideas ]

10. Organize your accounting

Anticipate tax time and set up your accounting system to make April much less stressful. Organize your expenses and income into three categories: business income, inventory costs, and other expenses (like payroll, rent, and other overhead). Find and hire an outside accountant , or buy an accounting tool to help you stay organized as you grow your business.

Advertise your grand opening on your social media channels and in local media outlets, like your town newspaper.

11. Develop your supply chain

Does your business idea revolve around a new product? If so, you’ll need to find a way to get it made that’s scalable. You may be able to make items yourself in the beginning, but as your business grows, that won’t be sustainable.

"Getting referrals from fellow business owners via social media and forums can be a great starting point and a way to get feedback on suppliers you've been evaluating," said Liz Bertorelli, owner of online lifestyle brand Shop Passionfruit , in Martha Stewart .

Or use a directory like ThomasNet , Maker's Row , MFG , Kompass , Alibaba , or Oberlo to find available manufacturers.

12. File a copyright or patent

Once you have a solid plan for your product or service, protect your intellectual property with a copyright or trademark. You can file to protect the rights to your company’s name, logo, content, creative ideas, or original creations in addition to a product design or service offering.

13. Decide where to sell

There are many companies that launch online before moving into a physical retail space. Warby Parker, Glossier, Casper, and Everlane are all companies that were founded as online-first retailers. Launching online can be a good way to keep costs down, but there are some serious benefits to having a brick-and-mortar location .

14. Develop a brand

Create a strong brand identity, including a memorable name, logo, and branding materials. Your brand identity communicates to consumers your business’s mission, values, and personality. It helps your company stand out from competitors and attract customers. You may want to work with a designer who can translate your brand identity into visual cues.

15. Design product packaging

Once you have your brand identity, it’s time to create the packaging , shipping materials, and any in-store physical assets that you will need to bring that identity to life. Even service businesses should consider using branded invoices or adding a logo to vehicles to help encourage brand recognition.

16. Negotiate a lease

Should you decide to open a storefront, you will need to find real estate property. That usually means negotiating a business lease . Make sure you know how much space you need, carefully vet the neighborhood, and read the contract thoroughly before signing.

17. Get the right insurance policies

The insurance policies you need will depend on the size of your company (i.e., how many employees you hire) in addition to your assets and liabilities. Here are a few policies you might need:

• Workers' compensation .
• Professional liability insurance .
• Product liability insurance .
• Business vehicle insurance .
• Small business health insurance .
• General liability insurance .
• Property insurance .

18. Set up a website

Your website is crucial to help customers learn more about your brand. Build a business website that tells your story to build excitement before your grand opening and help people learn about your product or service. Even entrepreneurs who don’t intend to sell online need a website with their store hours, location, and phone number, at a minimum.

19. Register your business

New businesses may need to register with their state government, the federal government, or they may not need to register at all. Generally speaking, if you want to file for trademark protection, or if you need a federal tax ID, you need to register with the federal government .

20. Get the right tools

When you’re just getting started, you don’t need a lot of fancy technology to start selling. But you do need some basics, like a point-of-sale system , wireless internet , and telephone service. You may also need office equipment, like desks and chairs, or software to enable remote work.

21. Prepare for order fulfillment

Retailers and some restaurants need to consider how they will get the product to the customer . If you offer online ordering, what logistics partner will you work with to ensure the item is delivered? Do you offer curbside pickup? For retailers, this means determining what shipping partner has the best rates and reliability — such as DHL, UPS, Fedex, or USPS. For restaurants, this could mean working with a third party like Uber Eats or Caviar.

22. Set up your social media channels

Social media is how many customers discover new brands. Create Facebook , Instagram , and Twitter profiles for your business. These platforms are where you can share news about your upcoming grand opening, launch your products, and generate buzz.

23. Hire an employee

If you have the budget, it’s time to bring an employee on board. Find someone you can trust to delegate part of the day-to-day operations so you can continue to focus on the big picture. This might be a manager, a partner, or your first hourly worker who can oversee the store.

24. Advertise your grand opening

Ready to meet your first customers? Make sure they know you’re about to open for business. Advertise your grand opening on your social media channels and in local media outlets, like your town newspaper. You might run an opening day discount or promotion to improve foot traffic or work with an influencer who can quickly spread the word about your brand.

25. Open your doors for business

Congratulations, you’re ready to go. Good luck selling! CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.

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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.

Related articles

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.

Operational Planning: How to Make an Operational Plan

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How to develop a strategic business plan for a new venture

by Jenny Bowes | Jul 01, 2021

A key aspect of launching any new business venture is planning – but truthfully, many would-be entrepreneurs aren’t sure where to start.

Business planning has had a revamp in recent years. The old business plan has undergone a massive makeover that reflects the contemporary pace of modern business. Now, your forecasts and proposals can be much more sophisticated and yield better results. When the OKR method is included in this process, you’ll have all the tools you need to get your new business venture off to a strong start.

So, how can you put a strategic business plan in place for a new venture, and where’s the best place to begin? We answer this question in this article.

What is a strategic business plan?

A strategic business plan goes a few steps further than a traditional business plan. Business planning previously focused mainly on numbers. However, a strategic business plan takes a holistic approach, encompassing business values, vision and a variety of goals concerning your business’ philosophy, ethos and methodology.

It also focuses on how best to use and optimise your existing resources in a controlled manner.  It’s essential to account for incremental growth so that you don’t exhaust your current resources too quickly. Of course, when setting up a new business venture you don’t have previous data to work from – so a strategic business plan will use industry insights and competitor analysis to shape your organisational objectives.

Why use a strategic business plan for a new venture?

New business ventures are exciting. They leave you buzzing with the prospect of fresh opportunities approached with abundant enthusiasm. It’s easy to get lost within all the excitement that comes along with starting a new business, but getting down to the nitty-gritty is even more important for fledgling companies. That’s where strategic business planning comes in.

This will help you to streamline your business planning process so that you boost your chances of long-term success. We’ve covered some of the other main benefits below…

How can strategic business planning benefit your new venture?

Focus is key when starting any new venture. Without a clear idea of where you’re headed and how you’re getting there, you’ll likely hit some bumps in the road. Many business owners also cite time management as one of their key challenges. Overwhelm can lead to a scattergun approach, which in turn, impairs productivity. If you can clearly see where you need to focus your time, money and efforts at each stage, you can be confident that nothing is being overlooked as you progress.

• Proactivity over reactivity

When you anticipate the good and the bad, you’ll be prepared for whatever life throws at you. Business can be unpredictable and external influences are not always under your control. However, forward planning for unexpected events enables you to prepare for any unfavourable scenarios before they occur. This allows you to act accordingly and minimise any negative impact. The same can be said for positive, yet unanticipated occurrences such as a steep rise in sales. 

Creating a strategic business plan puts you one step ahead of the game and significantly increases your chances of success!

• Increased efficiency

Streamlining is key for new ventures. Many new businesses waste a significant portion of their resources during their first few years, simply because they’re unable to adequately manage them. Operational efficiency is key for any new business especially as it grows and evolves.

• Improved resilience

Markets change and events occur that are not within your control – take Covid, for instance. But, with strategic business planning, you can increase your long-term resilience by building a more adaptable and flexible organisation. 

Things to consider during the strategic business planning process

Strategic business plans are comprehensive and incorporate multiple elements. Therefore, you’ll need to gather some information and consider various different aspects of your business (both now and how you want it to look in the future) before you begin.

To start with, consider the following elements:

Your vision and values: Who are you, what do you do and most importantly, why? What makes you different? What do you stand for?

Your industry and competitors: Who else is doing what you do, and how do they do it? What’s their market share – and what should yours be? How are you contributing to, or evolving your industry?

Your clients and customers: What does your ideal client or customer look like? Who are they, what do they do? Creating an avatar for your ideal customer can be useful especially for marketing and branding going forward. Go into detail about their salary, lifestyle, likes and dislikes and what other companies (both competitor and non-competitor) they engage with. 

Your products and services: What exactly do you offer? List absolutely everything with a detailed description.

Outlining the above provides a firm foundation for starting the strategic business planning process.

How to make a strategic business plan

There’s no one size fits all approach to the strategic business planning process. Each industry and company is entirely different, so of course, their plans will be unique too! Using a sample strategic business plan could help to guide you through the process, especially if it’s your first time setting up a new business.

You might like to start by sitting everyone down and talking about your business. Verbally communicating what you do and how you do it without the pressure of documenting things formally can allow you to be really open and creative. Doing this with your team will also enable you to gain a variety of insights and perspectives. It can relieve that stagnant feeling that can come with strategic business planning, as you simply talk it out and discuss your company candidly in a safe setting.

In addition, competitor and target market research will be a key element for any new venture – as you’re not working with your own existing data. If you’re looking to disrupt the market you’re in, you’ll be using these insights in reverse.

Once you’ve gathered plenty of notes from your brainstorming session, begin bit by bit to fill in each section of your strategic business plan. Think of this as your first draft – it’ll go through several refinements during this process until you have something solid to work from.

If you’re still struggling to get it right, don’t worry. Getting expert support from strategic planning specialists may be the best way to go.

At There Be Giants we help organisations to execute their strategic plans by using OKRs . The OKR process and strategic planning process go hand in hand. Using both methods can help to boost your chances of achieving sustained business growth.

If you want to learn more about executing your strategic plans, speak to one of our Giants today to learn more about how we can help you.

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What is a Business Venture? With Examples + How to Start

Are you looking to become a business owner ? Have you wondered what a business venture is and how to create one? Do you have a small amount of money and don’t know how to start?

Starting a business may seem intimidating , but it can be incredibly rewarding with the right knowledge and strategy. With a successful business venture , the sky is truly the limit with regard to earning potential.

If you’re ready to begin your entrepreneurial journey and start a business, I’m here to provide you with the necessary information and inspiration needed for success .

This blog post will define a business venture and examine some successful examples of what you can sell and how to grow fast. I’ll also provide some advice about how to find a profitable business venture. So read on for all the information you need!

What is a Business Venture?

A business venture is a project or undertaking where entrepreneurs create, organize, and manage their companies. Usually, this involves seeking an opportunity to develop and market a product or service in exchange for money. It can include opening a restaurant or launching a clothing line.

Most business ventures are frequently referred to as small businesses since they usually start with an idea and quite limited finances. They are typically supported by one or more angel investors who have faith in this business concept.

Any new business venture often starts from an existing gap in the market . It could be a demand for a product that consumers require or simply because of the lack of services available to them. No matter what business you are launching, you must have an idea to provide customers with a specific value.

How to Find a Profitable Business Venture

When looking for a business venture, it is important to look for an opportunity you can capitalize on . Your venture should have the potential to create a profit within a reasonable amount of time to stay in business.

There are many different business ideas to make money ! However, to make a better choice, answer the following three questions:

Question 1: Can I craft a convincing offer that people happily pay money for?

The first question to ask yourself when considering creating a successful small business venture is whether you can craft an offer that people will be willing to pay for . You need to provide something of value, a good business idea that customers feel they need, want, and are happy to pay for.

Think about what kind of product or service your potential customers would benefit from. The key is to make sure the offer solves a problem or fills people’s needs and provides them with something they would be willing to pay for.

So, priority number one is straightforward – identify what your potential customers desire and provide them with exactly that. Additionally, make sure you’re appropriately targeting the right individuals at a time when they will be most inclined to purchase.

Question 2: Can I systematically attract leads at low costs?

Once you’ve identified a great product or service, the next step is to focus on attracting potential customers . When it comes to marketing, it’s quite important to focus your efforts on tactics that will cost you as little money as possible.

It could mean taking advantage of organic social media posts, creating content (such as blog posts or videos) that can be shared and liked, or setting up partnerships with influencers who already have a significant and loyal following.

One of the most cost-effective strategies for attracting leads is email marketing . Email newsletters are an excellent way to reach out to potential customers and ensure that your offer is always in front of them.

You can also create targeted ads on different social media platforms such as Facebook, Twitter, and LinkedIn to reach out to people likely interested in your services or products. Ad campaigns like this can be especially useful if you want to sell products and services quicker and without much hassle.

It’s also worth considering offering a discount or giveaway to customers to entice them to make a purchase.

Question 3: Can I convert those leads into customers with relatively low CAC relative to CLV?

It’s not enough to attract leads – the key is to convert them into customers. It means that your offer must be compelling and attractive enough for potential customers to actually purchase it.

To ensure you’re getting a good return on investment, focus on calculating your customer acquisition cost (CAC) relative to your customer lifetime value (CLV) . The CAC is how much you spend to acquire a customer, while the CLV considers all revenue generated from that customer over time.

To discover your CAC , divide your marketing costs by the number of customers acquired in a given period.

The CLV is calculated by taking the average purchase value multiplied by the number of purchases made over a given time frame.

All businesses should strive for a CLV to CAC ratio of 3:1 for each marketing segment. If you spend too generously (for example, 1:1), it can be unprofitable as customers won't cover the cost of acquisition. On the other hand, if you under-invest in customer acquisition and set your bid cap low, then it could mean missing out on profitable customers who have an above-average cost per acquisition.

By taking the time to answer these three key questions, you will be able to determine whether your venture has the potential to create a profitable and sustainable business. The key is to make sure that you are providing something of value that customers feel they need, want, and are happy to pay for!

23 Profitable Business Venture Examples to Inspire You

If you’re looking for some inspiration and ideas, here are 23 profitable business ventures you can consider:

• Bird Tricks – Bird Tricks is an online business that specializes in providing online pet bird training classes. They use various marketing channels, such as YouTube and Instagram, to attract customers.
• Learning Herbs – Learning Herbs is an online herbalism education business. They earn financial gain via classes, webinars, and digital products to help people learn about herbs and their uses.
• Management Consulted – A great enterprise that provides management consulting to organizations, as well as individual and group training sessions. They attract customers using webinars, blog posts, and social media campaigns.
• Bonsai Empire – A community-based business that specializes in bonsai trees and care for them. They achieve profits through digital products, such as e-books, videos, and tutorials.
• The Online Dog Trainer – This business venture is based on providing online dog training services. They use YouTube advertising and targeted marketing campaigns to attract customers.
• Make a Living Writing – A practical venture that focuses on helping you become a successful freelance writer. They generate profits through digital products such as e-books and online courses.
• Goins, Writer – Need some inspiration? Goins, Writer, is a great business venture that focuses on helping people become successful writers. They use social media and blogging to reach out to the audience and profit from selling e-books, workshops, and courses.
• How to Program with Java – A highly successful business enterprise that specializes in teaching Java programming. They attract potential customers with YouTube video tutorials and online courses.
• Donald Robertson – Want to learn how to apply ancient philosophy to everyday life? This business venture is perfect for you. It provides online courses and sells books on Philosophy.
• Study Hacks – This start-up enterprise helps students become more productive and efficient in their studies. They use blogging and Youtube to reach out to the audience while generating profits through digital products such as e-books and courses.
• TaskRabbit – A great business venture that connects customers with skilled taskers who can take care of any task. They promote via Google Ads and generate profits through commission on each job completed via the website or app.
• Wealthy Affiliate – Ready to create a flourishing digital business centered around your passions and hobbies? Look no further than this all-inclusive platform, designed to help you reach success with ease! They generate profits through subscriptions and membership.
• AuditionHacker – A business venture designed to help aspiring musicians. They offer online courses and one-on-one coaching, helping musicians improve their performing skills.
• GooseChase – Looking to add something unique to your business? GooseChase is a perfect choice! This venture provides customers with mobile-based scavenger hunts that can be used for different events and settings. They generate profits through commission fees.
• Edx – A great business venture that specializes in online education. They provide online classes and certifications and generate profits through enrollments and subscriptions.
• Skillshare – Another great business venture that specializes in online learning. They use targeted ads and offer an annual subscription to generate profits.
• The Salon Business – This business venture focuses on helping salon owners manage their businesses. They use various marketing tactics, such as webinars and social media campaigns, to attract customers.
• La Vie En Code – Need to learn a programming language? This business venture offers online coding courses, and they generate profits through enrollments.
• Make Fabulous Cakes – Want to make a name in the cake decoration industry? This business venture provides support in online tutorials on cake decoration. They attract their customers through YouTube videos and generate profits through e-books, online courses, and digital products.
• WODprep – A great network that focuses on helping CrossFit athletes become more efficient and effective. Through subscription fees, online courses, and digital products, they are able to generate substantial profits.
• WoodSkills – Want to learn woodworking? This business venture offers online tutorials and e-books on the subject. They generate profits through their online courses and subscriptions.
• The Ultimate Disneyworld Savings Guide – A business venture geared towards helping customers save money when visiting Disneyworld. They use targeted ads and e-books to reach their audience and increase profits.
• Hardcore Music Studio – Looking to learn how to create a professional music studio? This business venture specializes in teaching aspiring producers and musicians the fundamentals of music production. They generate profits through online courses and digital products.

Here are just some of the many profitable business ventures out there. With the right strategy, any venture can become successful! The key is to identify your target audience, understand their needs, and develop a product or service that meets those needs!

Business Venture vs Startup

Small businesses and startups have a lot of commonalities , but there are also some key differences between them. Small business ventures typically involve one or two people taking risks to generate income from an idea or product. This type of venture usually requires less capital investment , and the goal is often to create a steady stream of revenue that can sustain the business.

On the other hand, startups are typically larger undertakings involving a team of people and more substantial capital investment . The goal of a startup is to create something new or disruptive that will quickly scale up to generate large profits. Startups tend to focus on growth rather than stability and often exploit technology to reach their goals.

Another key difference between small business ventures and startups is the level of risk involved. Small businesses tend to involve less risk , as there is typically less capital investment and a steady revenue stream.

Startups , however, involve much more risk due to their focus on rapid growth and disruptive technology. As a result, the potential rewards from successful startups can be much higher than those of small business ventures. Still, the risk of failure is also greater.

Finally, small businesses and startups take different marketing approaches. Small business owners typically focus on established tactics such as direct mail, print advertising, and word-of-mouth referrals .

Startups often rely more heavily on digital marketing methods such as search engine optimization, social media marketing, and content marketing.

Overall, small business ventures and startups have different goals and approaches regarding risk, capital investment, and marketing. While both types of businesses can be successful, understanding their differences is key to setting realistic expectations for success.

Bottom Line

A business venture is a great way to start and grow a successful business. However, creating a new company requires writing a careful business plan , understanding the target audience , and developing services or products that meet their particular purpose.

Having an idea of which type of venture is right for you, be it a business venture or a startup, can help you make the proper decision and maximize your chances of success.

Consider the amount of risk you’re willing to take on and how quickly you want to make money. With the right strategy, any venture can be successful! Good luck!

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Anastasia belyh.

Anastasia has been a professional blogger and researcher since 2014. She loves to perform in-depth software reviews to help software buyers make informed decisions when choosing project management software, CRM tools, website builders, and everything around growing a startup business.

Anastasia worked in management consulting and tech startups, so she has lots of experience in helping professionals choosing the right business software.

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Venture Capital Business Plan: A Guide for Entrepreneurs

AUG.01, 2023

Are you looking for VC funding or funding from other potential investors? You need a good business idea – and an excellent business plan. Business planning and raising capital go hand-in-hand. An investor business plan is required to attract a venture capital firm. And the desire to raise capital (whether from an individual “angel” investor or a venture capitalist) is often the key motivator in business planning.

What is a venture capitalist?

A venture capitalist, often referred to as a VC, strategically allocates financial capital to early-stage, high-potential startup companies to foster exponential growth and catalyze groundbreaking innovation. By leveraging their investments, venture capitalists secure partial ownership and wield a profound influence over critical strategic decisions and operational facets. Furthermore, they impart invaluable guidance and mentorship and harness their extensive network of influential contacts and abundant resources.

Venture capitalists aim to attain considerable returns on their investments through the strategic divestment of their ownership stake in the company at a subsequent stage, commonly facilitated through an IPO or a trade sale, encompassing mergers or acquisitions. Given the inherent risks associated with their investment endeavors, venture capitalists adopt an exceptionally discerning approach, meticulously selecting a mere fraction of the myriad companies that seek their sought-after financial backing.

Their active pursuit centers around identifying enterprises that epitomize disruptive technologies or trailblazing business models, thrive within expansive and rapidly evolving markets, exhibit a significant competitive edge, and are steered by an adept and fervent management team. These are the essential elements of a compelling Business Plan for Investors that can attract the attention and support of venture capitalists.

What is a Venture Capital Firm?

Venture capital firms (VCs) are money companies that put money in and help new and scalable startups. VCs get funds from different investors and then give them to startups they think can change or make new markets. VCs use a team of experts who check the chance of new companies. These experts have different backgrounds and skills in different businesses, and they use their ideas to help VCs pick companies that are likely to do well.

Besides giving money, VCs also give their companies other benefits, such as advice and access to their network of people, which can be very important to early-stage companies.

Types of Venture Capital Investments

Venture capital investments can be classified into different types based on the company’s development stage. The main types are:

1. Seed Capital

Seed capital is the earliest funding given to an innovator or group with a vision for a novel product or service but has yet to transform it into a feasible business. Seed capital is typically used for market exploration, product creation, prototype evaluation, customer verification, etc. Seed capital is very precarious because there is no assurance that the vision will work or that there will be a market appetite for it. However, seed capital can also generate very high rewards if the vision becomes successful and attracts more funding.

2. Startup Capital

Startup capital is the funding given to a company that has created its product or service and has introduced it in the market but has yet to generate substantial revenue or profit. Startup capital is typically used for promotion, sales, distribution, customer acquisition, etc. Startup capital is less precarious than seed capital because there is some indication of product-market fit and traction. However, startup capital can also be challenging to obtain because there is still uncertainty about the scalability and sustainability of the business model.

3. Early Stage Capital

Early-stage capital is the funding granted to a company that has validated its product or service in the market and has begun generating revenue and profit but has yet to attain its full potential. Early-stage capital is typically used to diversify the product or service portfolio, penetrate new segments, recruit more talent, optimize operations, etc. Early-stage capital is less precarious than startup capital because there is more evidence and traction of the business. However, early-stage capital can also be challenging and demanding because there are more expectations and pressure from the investors.

4. Expansion Capital

Expansion capital is the funding given to a company that has attained a significant market presence, revenue, and profit growth and is ready to scale up its business to the next level. Expansion capital is usually used to acquire other entities, develop new products or services, open new outlets, increase production capability, etc. Expansion capital is less perilous than early-stage capital because the business has more stability and predictability. However, expansion capital can also be costly and dilutive because more investors are engaged, and more equity is surrendered.

5. Late Stage Capital

Late-stage capital is the funding bestowed to a company that has reached a mature stage of development and growth and is preparing for an exit event such as an IPO or a trade sale. Late-stage capital is usually used to enhance the company’s valuation, reputation, and visibility, improve financial performance, strengthen governance, etc. Late-stage capital is less perilous than expansion capital because there is more certainty and credibility in the business. However, late-stage capital can also be complex and restrictive because more regulations and obligations are involved. However, a SBA Business Plan can help late-stage companies comply with the requirements and expectations of investors.

6. Bridge Financing

Bridge financing is the interim funding granted to a company that requires short-term capital to fill an urgent need or gap until it obtains a lasting or stable source of financing. Bridge financing is typically utilized for satisfying payroll, settling bills, accomplishing a project, etc. Bridge financing is perilous because there is no assurance that the firm can secure lasting or stable financing. However, bridge financing can also be beneficial and adaptable because it can offer swift and effortless access to cash.

The following table compares the different types of venture capital investments based on their stage, amount, risk, return, and purpose:

Venture Capital and VC Funding Methods

Venture capital is a source of funding for entrepreneurs who need money to grow their businesses. VC funding methods are the terms and conditions venture capitalists agree on when investing in the companies they support. Different methods of making a venture capital deal exist based on the people involved, worth, chance, and choices. The main methods are:

1. Common stock

This is the most straightforward form of VC funding method. It involves issuing shares of common stock to investors in exchange for capital. A common stock gives the investors voting rights and dividends (if any) in proportion to their ownership stake. Common stock is usually preferred by early-stage companies with low valuation and high risk.

2. Preferred stock

This is a more complex and sophisticated form of VC funding method. It involves issuing shares of preferred stock to investors in exchange for capital. Preferred stock gives the investors preference over common stockholders regarding dividends, liquidation, and conversion rights. Preferred stock is usually preferred by later-stage companies that have higher valuations and lower risk.

3. Convertible debt

This is a mixed form of VC funding method. It means giving the investors a debt instrument that can be converted into shares later or when some conditions are satisfied. Convertible debt pays the investors interest and money back until it gets converted. Early companies with unclear worth and a high chance of failure often choose convertible debt.

4. SAFE (Simple Agreement for Future Equity)

This is a newer and simpler form of VC funding method. It means making a deal with the investors that lets them get shares in the future at a fixed worth or lower price. SAFE only involves issuing shares or debt instruments to the investors once a future financing event occurs. SAFE is usually preferred by seed-stage companies that have uncertain valuations and high risk.

Main Sections of a Venture Capital Business Plan

A venture business plan is a document describing your business idea, market opportunity, competitive advantage, financial projections, and funding needs. It is a tool that helps you communicate your vision and strategy to potential investors and partners. A venture business plan sample should include the following sections:

1. Executive Summary

The executive summary is pivotal in your venture business plan, serving as the primary section that demands attention. It aims to present a concise yet comprehensive overview of your business idea, target market, unique value proposition, traction and milestones, financial summary, and funding request. It is vital to draft the executive summary clearly and compellingly that captivates readers and incites their curiosity to explore your venture further.

2. Company Analysis

The company analysis section delves deeper into your company’s narrative, providing a detailed account of its history, mission, vision, values, goals, objectives, team, culture, and legal structure. This section highlights your company’s noteworthy achievements and inherent strengths while addressing the potential challenges and risks it faces. Moreover, it presents a compelling case for the qualifications and capabilities of your team, demonstrating their aptitude in executing the business plan.

3. Industry Analysis

The industry analysis section demonstrates your understanding of the market you operate in or plan to enter. It should provide relevant information about your industry’s size, growth, trends, drivers, challenges, opportunities, and outlook. It should also identify and analyze your industry’s key segments and sub-segments.

4. Customer Analysis

The customer analysis section is important as it outlines and describes your target market and various customer segments. It should encompass a detailed profile of your ideal customers, covering their demographics, psychographics, behaviors, needs, pains, desires, preferences, and purchasing patterns. Furthermore, this section should include an estimation of your product or service’s total addressable market (TAM), serviceable available market (SAM), and serviceable obtainable market (SOM).

5. Competitive Analysis

The competitive analysis section is crucial in identifying and evaluating direct and indirect competitors. It thoroughly assesses their strengths, weaknesses, strategies, products, services, prices, features, benefits, market share, customer satisfaction, and distinctive factors. Additionally, this section explains your market positioning strategy, emphasizing your competitive advantages and unique selling points.

6. Marketing Plan

The marketing plan section outlines your marketing strategy and tactics for reaching and attracting your target customers and generating sales and revenue. It should cover the following elements:

• Product and service
• Distribution
• Marketing process
• Marketing Physical Evidence

7. Operations Plan

The operations plan section describes how you will run and manage your business daily. It should cover the following aspects:

• Human Resources
• Legal issues and requirements

8. Financial Plan

The financial plan section provides a detailed projection of your financial performance and position for three to five years. It should include the following components:

• Income Statement
• Cash Flow Statement
• Balance Sheet
• Break-Even Analysis
• Funding Request
• Funding Sources
• Exit Strategy

OGSCapital for Your Venture Capital Business Plan

Are you looking for an answer to: How to write a venture capital business plan? Our business plan experts at OGSCapital can help. We have a team of professional business plan writers with over 15 years of experience offering business plan writing services. We have helped over 5,000 clients attract more than $2.7 billion in financing. Here are some of the reasons why you should choose OGSCapital for your venture capital business plan:

OGSCapital can provide you with the following benefits:

• A customized and high-quality business plan
• Comprehensive and in-depth market research and analysis
• A realistic and accurate financial model and projections
• A persuasive and compelling executive summary
• A professional and attractive design and layout of your business plan
• Fast and reliable delivery within 10 to 15 days
• A revision after receiving the first draft of your business plan

If you’re also confused about how to write a business plan for venture capital that stands out from the crowd and increases your chances of getting funded, contact our experts at OGSCapital today.

Frequently Asked Questions

1. What do venture capitalists look for in a business plan?

A business plan to raise venture capital should demonstrate a great business idea, a talented and experienced team, a unique and valuable product or service, a market validation, a huge and expanding market, and a good deal and exit strategy. Plus, it should be clear, concise, well-researched and realistic.

2. What is the golden rule for venture capitalists?

For venture capitalists, people matter more than ideas. They look for entrepreneurs and managers with passion, dedication, flexibility, and willingness to learn from feedback. Venture capitalists believe these are the essential qualities that make or break a venture.

Download Venture Capital Business Plan Sample in PDF

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Developing a business plan for your new venture

Do you have an idea to evolve your business or maybe even starting something brand new? Turning your vision into a reality requires developing a business plan. Here’s how to get started.

Many people are waiting for all the stars to align before taking the next leap in their business or starting an entirely  new company. Because of that hesitation, they never get around to fulfilling their dreams. But by getting rolling on developing your business plan, you can turn your dream into a reality faster. 

In 2022, industries will continue to shift in new ways, and now may be the perfect time to take your project to the next level. To get started, it’s important to know what is involved in venturing into new territory or starting a business, and that’s where a business plan comes in. 

Why is developing a business plan so important?

A business plan is a formal document that provides the roadmap for your company. It can help you navigate through tough decisions and can help you manage any challenges that may come your way. It will also help you stay focused on your end goal as you grow your business. And if you are starting a completely new venture, it’s essential to have one in place before applying for funding or securing partners. 

To create a great business plan — whether for your startup, scaling business or mature enterprise — you’ll want to start with these steps:

Step One: Define your business goals

The first step in creating your business plan is determining the direction of your business (if you’re evolving into new territory) or what kind of company you want to start — along with your overall goals. For example, will you run a physical store, or do you prefer an online business? Do you want to sell a specific product or focus on services? Maybe you already have a hobby that you want to turn into a business, or you have an idea of an innovation you can bring to the market?

Once you define your ultimate goals, you’ll be able to start thinking about how you want to achieve those goals.

Step Two: Evaluate your business skills and knowledge

Many new business owners find it helpful to take classes in business to better grasp the intricacies of running a business. Online universities offer convenient solutions for those seeking to learn more about leadership, strategy, operations and general management.

If there are some areas of running a business that you aren’t well-versed in, you’ll want to leverage outside help or software that fills in the gaps. For example, if you’ve never managed payroll, software or apps can help. Many of these services provide same-day direct deposit, automation for payroll and payroll taxes, and time tracking.

Tired of waiting 90 days for payment? Try this instead.

Step Three: Define the structure of your business

Next, you’ll want to clearly define the best business structure for your venture. Incorporating rather than operating as a sole proprietorship does have its benefits. For example, if you form an LLC, you could be eligible for certain tax incentives, tax credits and business incentives. 

You will need a clear idea of what products you will sell at the time of the company launch and how your offering will evolve with time to keep up with industry trends and client demands. You will also need to know if you will be selling directly to consumers, acting as a wholesaler, or offering a B2B service for other businesses.

Step Four: Get your financials in order

An important part of creating a business plan is planning out the financing aspect. What cost structure will allow you to create your product or service and have it reach your final consumer? This would include all the physical production costs, supply chain, marketing, and personnel costs for your company structure.

Once you have all of the above information, you can bring it all together. Make financial projections of what your sales and profits would look like over the first few years and what startup costs and cash flow you need to finance to start the business.

Access to funding will be crucial in getting your venture up and running. Invoice factoring can help build working capital. 

Step Five: Research the market

The final step in creating a business plan is to research the competition . This will help you to avoid starting an unnecessary or unprofitable venture. Think of ways that make your company unique from other similar companies who are also competing for clients in this space. Answering the following questions will help guide your research:

• What is different about your products and services that only you can provide?
• Based on your product, costs, customer target, and competition, what would be the optimal price points for each of your products or services? 
• How are you going to reach your consumers and let them know about your products? 

There are many resources online today that can help you establish a solid business plan. And once you have it on paper, you will see that it makes your vision come to life and gives you a base document that you can work with to approach investors or potential stakeholders in your business.

Up next:  Create a smart digital marketing plan on a budget

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How to Write a Sales Business Plan

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• How to Pitch a Business Plan
• How to Derive a Coherent Strategy

The objective of business planning is to develop a logical series of steps to help your business grow or a blueprint for constructing a venture that has the best chance of succeeding in a competitive marketplace. The cost of implementing these steps is projected, along with projected revenues. These forecast numbers are periodically compared to actual results in order to measure the company’s progress toward its goals and to address revenue shortfalls through a change in strategies and tactics.

Plan a Business Venture

Create your vision. Envision how large a company you intend to build, and what your venture will have achieved three to five years down the road. A retail store owner’s vision might be to build a mini-chain of ten stores within that time.

Define market need. Estimate the size of your market, or the population of potential customers. Define the benefits of your products or services to customers. Make sure you are bringing products and services to the market that customers will have a strong desire to purchase because the benefits are so significant relative to what competitors can provide.

Formulate a business model. Describe the various revenue streams your company will have and structural factors about your company that will lead to profitability. A manufacturing company could have additional revenue streams from the service and repair of products. Structural factors include low overhead, and a lower than average cost of goods sold.

Analyze your competition. Gather information about what they are doing well, or the core of their competitive advantage, and what their weaknesses might be.

Develop a strategic marketing plan. Describe the marketing methods you will use to make customers aware of your company, and the sales tactics you will use to encourage them to purchase from you.

Create a personnel plan. Determine the human resources needed to accomplish the company’s objectives. Identify the skills and experience you need your team, as a group, to have in order to effectively run the company.

Prepare a financial plan. The financial plan, or forecast, is prepared using spreadsheet software. Conduct a month-by-month projection of revenues and expenses.

Grow a Business Venture

Assess your progress. Take a critical look at your company’s overall performance at least once a year. Identify areas that are most important to improve in order to further grow the business.

Seek out new opportunities. Think of new target markets for your products or services, innovations to improve them, and new products or services you could market to your base of loyal customers.

Improve operational efficiency. Continually upgrade your level of customer service, which will bring about repeat business from these satisfied customers. Devise ways to operate the company in a leaner, more efficient manner both from a capital and human resource standpoint.

• Small Business Administration: Write a Business Plan
• Let other staff members and members of your management team provide input during the planning process.
• Invest in your future. Prioritize expenditures that need to be made to enable the company to compete more effectively. Reinvesting earnings in growth-oriented strategies pays off in the long run.
• Success and growth make the management challenge even more difficult. As the business grows, management becomes more complex and you have more people to supervise. Make sure you bring in highly skilled individuals to fill in any management gaps that develop, and upgrade your existing employees’ skills.

Brian Hill is the author of four popular business and finance books: "The Making of a Bestseller," "Inside Secrets to Venture Capital," "Attracting Capital from Angels" and his latest book, published in 2013, "The Pocket Small Business Owner's Guide to Business Plans."

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How To Start A New Business Venture: A Step By Step Guide

There are over   30 million small businesses   in the United States alone, and each year, this number grows exponentially. However, not all new businesses survive; in fact, only 50% of them will survive the first 5 years. Here's what you need to know when starting a new business venture.

Failing in business can be due to the economy, not having the right product, not marketing the business properly, but also running the business unprofessionally. This is why new business owners should know the process and steps of starting a company in order to set it up for success.

Discover the most important steps to register a company and start a business venture the right way.

Think of a Profitable Business Idea

The first step to take before starting a business is to think of a profitable business idea, niche, product, or service. You can brainstorm ideas, search online for profitable niches, or look at the brands you're already using to see if there's a demand on the market for more such products.

Conduct Market Research

Market research is a crucial first step in starting a business. It'll help you see if the market needs a product like yours or if it's already saturated. Positioning in an oversaturated market can be hard, especially if your competitors are well-established companies with huge marketing budgets.

Define Your Target Customer

If you find there's a need for your product on the market, the next step is defining your target customers. These are the people you'll be marketing to, so you need to know their demographics, spending habits, needs, lifestyles, and expectations.

Analyze Your Competition

Next, analyze your competitors and their business and marketing tactics to discover who they're serving. See how they market their products, what their websites look like, how they reply to complaints and comments on social media, and who their suppliers are.

This will help you better define your own business and serve your own customers better.

Write a Detailed Business Plan

Wondering how to start a brand people will love? You need a detailed business plan to guide you and keep you accountable.   A business plan   is a must if you plan to attract investors, but it's also a great tool for keeping track of business activities, goals, and projections.

Funding Options

Will you be funding your business with your own money? Do you plan to look for investors or get a business loan? You should know exactly how you'll be financing your business before you register it. Click here to learn how to get a business loan.

Project Timelines and Deadlines

Your business plan will contain all the projects and activities you want to complete, as well as projected timelines and deadlines. This is why most business plans are made for at least 1 year in advance, but you can also start with 6 months.

Marketing Activities

A business plan should also have a detailed marketing strategy listing the marketing activities, budgets, and channels you'll be using. The most essential marketing points include:

• Defining your target market
• KPIs (Key Performance Indicators)
• Marketing goals
• Marketing channels (email, social media, paid advertising, promo materials)
• Marketing software and tools
• Marketing budget
• Marketing team and employees (if applicable)
• Marketing activities deadlines
• Content distribution (website, email, brochures, commercials)

You'll typically learn how to market effectively once you start working with customers and learn about their needs. You can then adjust your marketing strategy and improve it as you go.

Find Suppliers

If you sell a physical product, you need to find legitimate suppliers who are ready to meet an increasing demand. You should do your research and reach out to suppliers long before you register your business to make sure you have the product in hand to test it for performance, quality, delivery, and durability.

The best way to find suppliers is to look at online directories for manufacturers, wholesalers, suppliers, distributors, and retailers to find the best fit. There are costs associated with using suppliers, especially if you're ordering in smaller quantities. As your business grows, you'll be able to negotiate lower prices for larger quantities.

Register Your Company

Registering a company is easy and quick as long as you know the type of business you want to have. Will you be an LLC or a business start up? Do you plan to hire more people and expand into other branches or stick to one niche?

Talk to a business advisor or an experienced businessperson to learn more about your options. The type of company you register depends on the products or services you're selling, so do your own research before you decide.

Get the Necessary Permits and Licenses

To run a legal business, you need to obtain all the necessary permits and licenses on a state and national level. You can learn about the different documentation you need by visiting your local government agencies.

Hire an Accountant

Next, you   need an accountant   to take care of the financial aspect of your business, as well as the payroll, taxes, expenses, and all other money-related matters. You can also buy accounting software to keep track of your expenses and revenue wherever you are.

Pick a Location

If your business needs a physical store, you need to start looking for a good location as early as possible. Foot traffic and visibility matter, so start looking at the best spots in your area. You may want to hire a real estate agent to help you find the best options for the best rate.

At the same time, make sure to consider the costs and expenses of running a business in your preferred location. Depending on your state or city regulations, you might need to obtain special licenses and comply with zoning ordinances.

Market Your Business

Now that you've completed all steps for starting your own business, it's time to put your products out there and start marketing. Use social media, email marketing, paid TV or internet ads, and tell as many people as possible about your new venture.

Better yet,   hire a digital marketing agency   to handle these activities for you.

Launch Your Business Venture Today!

Whether you're a small business owner or you plan to launch an empire, these tips will help you open a new business venture the easy, hassle-free way.

Looking to incorporate an existing business? Read the   step-by-step instructions here   and compare quotes to find the best fit for you.

Author: Hudson Piccini

Hudson Cynar, a Harvard University alumna and the owner of three prosperous enterprises, is a distinguished business consultant, author, and writer. Her expertise spans multiple business sectors, with a particular emphasis on storage containers, commercial copiers, payroll services, and medical billing software. Dedicatedly investing thousands of hours into product and service research, Hudson crafts insightful reviews to guide entrepreneurs in making informed decisions for their businesses.

Small Business Trends

How to create a farm business plan.

If you buy something through our links, we may earn money from our affiliate partners. Learn more .

Crafting a comprehensive farm business plan is a crucial step towards transforming your agricultural visions into tangible realities. This plan serves as a blueprint, enabling you to formally articulate your thoughts, ideas, and aspirations. Engaging in this process can lead to profound insights, illuminating the path to a thriving agricultural enterprise.

Even though the term ‘farm business plan’ might evoke a sense of formal rigidity, it’s important to remember that this document is, in fact, a living, evolving entity. Just like a seedling that sprouts, grows, and changes with the seasons, your business plan is not meant to be static.

It’s something you nurture, revise, and expand as circumstances dictate and as your farm business matures. Feeling pressure to perfect your business plan from the outset could be paralyzing. Instead, we suggest you view this document as a foundation that can be continuously built upon.

To get you started, we offer a detailed farm business plan template. This invaluable resource can be tailored and expanded to suit your unique agricultural venture, whether you’re cultivating a sprawling wheat field or nurturing a boutique organic herb garden.

The most effective business plans are those that exhibit flexibility and resilience, characteristics that are at the heart of any successful farm business. Agriculture, by its very nature, is a domain subject to the whims of Mother Nature. From unpredictable weather patterns to seasonal variations, farmers of all kinds grapple with an array of external factors.

Therefore, your farm business plan should not only anticipate these challenges but also prescribe adaptive measures to navigate through them. It’s this inherent adaptability that transforms a good farm business plan into a great one.

Writing a Farm Business Plan Template: 15+ Things Entrepreneurs Should Include

A farm business plan, like any strategic document, should be comprehensive, encompassing all aspects of your operation, be it agricultural (crops) or product-based. Utilize these 15 key sections to shape your farm business plan template.

Do bear in mind that while these sections are integral, they are by no means exhaustive. Your farm business plan may necessitate additional topics based on your specific farming operations.

Creating a robust business plan is of paramount importance, whether you’re kickstarting a farm venture or acquiring an existing one. Our farm business plan template starts off with an executive summary.

Executive Summary

The executive summary provides an essential overview of your farm business. It helps to streamline communication and understanding between various stakeholders, such as internal team members, potential lenders, business partners, and customers. When drafting your executive summary, consider the following key components:

• Business Profile : Provide a snapshot of your farm business, describing its nature and scope. Are you into crop cultivation, livestock rearing, or any specialized farming practices?
• Products : Clearly outline what product or products your farm will produce. These could range from dairy products to specific crops or even services like agrotourism.
• Production Methodology : Describe how you plan to achieve your production goals. This could involve discussing your farming techniques, usage of technology, or unique methodologies.
• Target Audience : Identify the individuals or groups who will be interested in your farm products or services. These might be local consumers, restaurants, farmers’ markets, or even online customers.
• Key Strategies : Highlight the strategies you plan to implement to run and grow your business. This could cover marketing techniques, sustainability practices, or partnerships.
• Mission and Vision : Briefly outline the mission and vision of your farm business. This helps to convey your long-term objectives and core values.

Remember, your executive summary is essentially the first impression of your business plan. Making it comprehensive, clear, and compelling will help attract interest and support from stakeholders.

Goals and Objectives

A well-crafted business plan should encapsulate both personal and economic goals and objectives. Many successful farm business plans also address environmental stewardship and community outreach. You may want to include goals around preserving farm resources for future generations, ensuring that both the operational and stewardship aspects remain within the family.

Introduction

Your introduction should provide information about the business owners, including their backgrounds and levels of industry experience.

Mission Statement and Values of Your Farming Business Plan

This section enables you to express the core values that led you to the farming business, whether it’s an urban farming venture or a homemade product-based farm. Your mission statement should reflect these values. Sustainable practices and conservation are often key motivations that draw people to farming, so don’t be shy to share your commitment to such principles.

Industry History

Understanding your place within the wider agricultural landscape is key. Be sure to research farms that have historically dominated your region, whether they specialize in vineyards, urban farming, or livestock rearing. Use this research to make educated projections about the future.

Company Background and History

Share the history of your farm if it has been a long-standing family venture or the journey leading up to your purchase if it wasn’t. If your farm business is a startup, focus on the business experience and backgrounds of the involved parties.

Competitor Analysis

Understanding your competition is crucial. In the agricultural sector, farmers often share resources, such as a high-tech corn planter , or cooperate in marketing endeavors. Factor in such synergies when analyzing competitors.

Target Market

Clearly define your target market. This can include area groceries, farmers’ markets, or online customers. If you’ll be relying on online sales, ensure your website is professionally designed, keyword optimized, and easily discoverable.

Products and Services

Describe each product or service offered by your farm, highlighting those features most appealing to your target market.

Organization, Human Resources, and Management Plans

These interconnected elements cover your farm’s day-to-day operations, employee roles and responsibilities (including their job descriptions ), and overarching management plans.

SWOT Analysis

Conduct a SWOT analysis to identify your farm’s strengths, weaknesses, opportunities, and threats. This will help you strategize on how to leverage your strengths, mitigate your weaknesses, exploit opportunities, and neutralize threats.

Your vision is the roadmap for your farm’s future. It should express not just your financial aspirations but also your plans for the farm operation in the long run.

Growth Strategy

A comprehensive growth strategy should outline your plans for debt reduction, savings, and business expansion. Keeping detailed farm production records is key to evaluating the effectiveness of your growth strategy.

Financial Plan

Your financial plan should include elements like balance sheets, income statements, projected cash flows, loan repayment schedules, and depreciation factors.

Marketing Strategy

A robust marketing strategy is essential for your farm’s success. Look into brochures, advertisements, and joining co-op groups. Resources from institutions like the University of Minnesota and Cornell University offer comprehensive insights into effective marketing strategies for farm businesses.

Establishing a Farming Business Entity

Discuss the legal structure of your farm business. Will it be a sole proprietorship, a partnership, an LLC, or a corporation? Outline the pros and cons of each and why the chosen structure is the best fit for your farm business.

Detailed Description of Farm Operations

Include a section that provides an in-depth look at your day-to-day farm operations. This can cover everything from crop rotation plans, livestock breeding programs, to the use of technology and machinery in your farming activities.

Risk Management Strategies

Address potential risks and challenges your farm might face, such as natural disasters, market fluctuations, or pest infestations. Discuss the strategies you plan to implement to mitigate these risks, like insurance coverage, diversification, and emergency response plans.

Sustainability and Environmental Impact

Highlight your farm’s approach to sustainability and its impact on the environment. Discuss practices like organic farming, conservation techniques, and renewable energy usage, which demonstrate your commitment to environmental stewardship.

Community Involvement and Social Responsibility

Describe how your farm business plans to engage with and contribute to the local community. This could include hosting educational farm tours, participating in farmers’ markets, or supporting local food programs.

Supply Chain and Vendor Relationships

Detail your farm’s supply chain and vendor relationships. Explain how you plan to source inputs like seeds, feed, or equipment, and any partnerships with local suppliers or distributors.

Technology and Innovation

Discuss the role of technology and innovation in your farm business. This could include the use of precision agriculture, innovative irrigation systems, or the adoption of farm management software to enhance efficiency and productivity.

Training and Development Plans

Explain how you intend to train and develop your staff. Include plans for ongoing education, skill development, and potentially, leadership training for future farm managers.

Expansion and Diversification

Outline your long-term plans for expansion and diversification. This could involve adding new crops, branching into agrotourism, or exploring value-added products like farm-produced jams or cheeses.

Exit Strategy

Consider including an exit strategy for your farming business. This could be a plan for succession, selling the business, or transitioning to a different type of agricultural operation.

Wrap up your business plan with a conclusion that reiterates your farm’s core mission and vision, and express your enthusiasm and commitment to making your farm business a success.

Frequently Asked Questions

Include a FAQ section at the end of your business plan to address common questions potential investors or partners may have about your farm business. This can include queries about your business model, funding needs, or market potential.

Provide an addendum for additional documents that support your business plan. This can include resumes of key team members, detailed financial projections, market research data, or letters of support from future customers or partners.

Do I Need a Business Plan for My Farm?

Even if you’re knee-deep in the dirt, tending to your crops or livestock, every farming enterprise has the core elements of a business at its heart. These include aspects such as operations, marketing, human resources, and finances. When you embark on developing a farm business plan, it might astonish you to see where the journey takes you. You could end up discovering facets of your farm business that you hadn’t previously considered.

One of the many advantages of constructing your business plan is the opportunity it affords to involve others. Employees, family members, even your loyal farm dog might have innovative small farm business ideas that could significantly enhance your farm’s productivity and marketability. A different perspective can often yield solutions for issues you might not have even been aware of. Therefore, encourage an open exchange of thoughts and ideas. Who knows, the next great idea could be lying right under your hay bale!

More than just a document outlining your farm’s structure, your farm business plan should serve as a valuable decision-making tool. With it, you can confidently navigate the varied terrain of farm management, from daily operations to larger strategic initiatives. When you’ve got a meticulously crafted, robust farm business plan, it doesn’t just narrate your farm’s story, but also provides you with a roadmap to future growth and success.

Beyond this, a top-notch farm business plan can also be a lever that helps you access critical financing. Lenders and investors are more likely to support your venture when they see a well-structured, thoughtful business plan that articulates your vision, illustrates your understanding of the market, and demonstrates your commitment to fiscal responsibility.

So, where to begin? Let’s dive into our fundamental guide to crafting a farm business plan using our adaptable template. This resource has been designed to help you capture every aspect of your agricultural venture, laying a strong foundation for a bountiful future.

How Do I Write a Small Farm Business Plan?

Don’t sit down to write the whole thing. Chip away, one section at a time. Keep in mind that the plan doesn’t have to be the definitive last word. You can make adaptations.

How do you start a farm business plan?

Start with one piece of the business plan. One of the hardest sections of a business plan to write is the Mission Statement . If you get bogged down there, continue and come back to it later.

How much do farm owners make a year?

As you can imagine, the net income varies greatly by type of farm business.

The bottom line after expenses may not be high. Farmers need to consider net worth as assets grow and the farm property increases in value.

How much does it cost to start a small farm?

Getting set up to raise 100 beef cattle costs lots more than getting set up to raise 100 rabbits.

Things like property acquisition, soil preparation, equipment and machinery and the key costs. Other costs may be i rrigation systems , packaging and trucking.

What is the most profitable farming business?

Poultry farming is currently the most profitable – and common – farm business in the world. It includes chicken, turkey, quail, ducks and goose, that are being raised for meat or eggs.

It’s also one of the most expensive businesses to start, requiring significant capital investment. The industry is very labor-intensive and labor costs are high.

Image: Depositphotos

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Make Decisions with a VC Mindset

• Ilya A. Strebulaev

Venture capitalists’ unique approach to investment and innovation has played a pivotal role in launching one-fifth of the largest U.S. public companies. And three-quarters of the largest U.S. companies founded in the past 50 years would not have existed or achieved their current scale without VC support.

The question is, Why? What makes venture firms so good at finding start-ups that go on to achieve tremendous success? What skills do they have that experienced, networked, and powerful large corporations lack?

The authors’ research reveals that the venture mindset is characterized by several principles: the individual over the group, disagreement over consensus, exceptions over dogma, and agility over bureaucracy. This article offers guidance to traditional firms in using the VC mindset to spur innovation.

The key is to embrace risk, disagreement, and agility.

Idea in Brief

The opportunity.

Venture capitalists’ unique approach to investment and innovation has played a pivotal role in launching one-fifth of the largest U.S. public companies, demonstrating the power of the venture mindset.

The Challenge

Traditional companies often struggle to replicate the success of venture firms because of their aversion to risk and failure and their preference for consensus and stability.

The Solution

When faced with market changes or disruptive technology, big companies should adopt the venture mindset, prioritizing the individual over the group, disagreement over consensus, exceptions over dogma, and agility over bureaucracy.

Venture investors are the hidden hand behind the most innovative companies surrounding us. According to research conducted by one of us (Ilya), venture capitalists were causally responsible for the launch of one-fifth of the 300 largest U.S. public companies in existence today. They have played an essential role in unlocking the power of the internet, the mobile revolution, and now artificial intelligence in all its forms. Apple, Google, Moderna, Netflix, Airbnb, OpenAI, Salesforce, Tesla, Uber, and Zoom—these firms disrupted entire industries despite initially having fewer resources and less support and experience than their mature, successful, cash-rich competitors. All these businesses could theoretically have emerged from within an established company—but they didn’t. Instead, they were financed and shaped by VCs. Indeed, we estimate that three-quarters of the largest U.S. companies founded in the past 50 years would not have existed or achieved their current scale without VC support.

• IS Ilya A. Strebulaev is the David S. Lobel Professor of Private Equity and a professor of finance at the Stanford Graduate School of Business. He is also the founder of the Stanford GSB Venture Capital Initiative and a research associate at the National Bureau of Economic Research.
• AD Alex Dang is a venture builder and a digital strategy adviser. He was a partner at McKinsey and EY and launched numerous businesses at Amazon.

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• Politics & Policy
• Philadelphia

New effort aims to make starting and building a business in Philly easier

The goal of the "phl: open for business" effort is to make starting or keeping a business easier for people, especially disadvantaged communities who need help..

• Tom MacDonald

Mayor Cherelle Parker announces plan to make Philadelphia more business-friendly. (Tom MacDonald/WHYY News)

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Philly City Council may expand ‘displaced worker’ law despite business pushback

As office towers are retrofitted, residential buildings’ unionized cleaners in Center City say they worry about job security. But businesses say proposed changes go too far.

Business owners ‘cautiously optimistic’ about how Mayor-elect Cherelle Parker will lead Philly

Philadelphia is an old city with a “strong foundation,” and some business owners say Mayor-elect Cherelle Parker’s opportunity to change the economy is now.

5 months ago

Irene Council-Grant almost gave up on running the city gauntlet of permits and licenses for the business she owns, Platinum Fruit Creations, on Girard Avenue. She said at first the myriad of permits and the like were mind-boggling.

“When I opened up my business, it was crazy. I had to run here to get that. I had to run there to get that. I had to go back to the same man that told me to go over here. It was crazy and I almost gave up,” Grant said. “I put my $30,000 back in my pocket. I was thinking about some trips.”

But help from the city changed that and now her business is doing well, even after a setback when crews tore up the street to do construction work.

“They knew that we needed some money on that. We had taken a real hit and so the money came through. I was able to get some mailings in the mail and I started seeing people again, so I thank you all so much for what you guys did for the corridor of Gerard Avenue.”

The mayor signed an executive order which renames the Office of Business Services to the Mayor’s Business Action Team.

The change is part of an effort to break down silos and bring efforts to help businesses together. The team is housed in the Department of Commerce and provides one-on-one help for businesses that need assistance navigating city services.

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Philly’s 100th mayor, you may also like.

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Mayor Parker calls for return to in-person work at Philadelphia offices: ‘Unlock economic opportunity’

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How One Family Lost $900,000 in a Timeshare Scam

A mexican drug cartel is targeting seniors and their timeshares..

This transcript was created using speech recognition software. While it has been reviewed by human transcribers, it may contain errors. Please review the episode audio before quoting from this transcript and email [email protected] with any questions.

Hello, James.

Hey. How’s it going?

Yeah. I’m not having much luck. So the problem is funding. And all of my money is in Mexico, all of it.

From “The New York Times,” I’m Katrin Bennhold. This is “The Daily.” A massive scam targeting elderly Americans who own timeshare properties has resulted in hundreds of millions of dollars sent to Mexico.

Once you move forward and make your payment, if anything were to happen, he will directly pay you the full amount of what you’re entitled to, including the gains. He will pay you the full amount.

You’ve got all my money. It’s been sent. I sold a freaking house.

Listen to this. I sold a house that I grew up in so that I could come up with funds to send to Mexico.

I don’t even have anything from the sale, nothing.

My colleague Maria Abi-Habib on one victim who lost everything and the people on the other side of the phone.

That’s it. That’s it. There’s nothing —

You know what? That’s what has been said every freaking time. Every time, just pay this. That releases the funds.

But that’s why we won’t allow it to happen again. This is the last time, James.

It’s Friday, April 12.

Maria, you’ve been looking into this scam that’s targeting Americans. Where did your investigation start?

So several weeks ago, I received a phone call from a lawyer based in St. Petersburg, Florida, who had been contacted by a family who was very concerned that the father, this man named James, was in the middle of being scammed. He’d sent hundreds of thousands dollars to Mexico. And he was considering sending another $157,000 when his daughter decided to call up this law firm and try to get her father to stop, stop sending money to Mexico.

So I called him a few weeks ago as I was trying to understand what was going on.

Hi, James. How are you?

Good. Thank you.

He’s asked that his last name be withheld for privacy concerns because he’s quite embarrassed about the story that I’m about to tell you.

You’re retired now, but what were you doing for work? And if your wife was working, what was her job?

I was with the Highway Patrol.

James is a retired state trooper from California. And his wife Nikki is a former school nurse.

She was born in ‘51. So 71-ish.

Two. She’s just reminded me, 72.

And they’re both in their early 70s. And they own this timeshare that is in Lake Tahoe, California. And they bought it in the 1990s for about $8,000.

And for someone who did not grow up vacationing in a timeshare, remind me how exactly timeshares work.

Timeshares are essentially vacation properties. And they tend to be beach resorts. And multiple people can buy into this property. The ownership is a shared ownership. And this gives you the right to use the timeshare for one to two weeks out of every year.

And so James and Nikki used their timeshare every other year with their daughters. But as they hit retirement age and their daughters are growing up and starting their own families, they’re just not really using it that much anymore. And timeshares require the owners to pay off yearly maintenance fees. And so they’re starting to think about maybe letting go of their timeshare and selling it.

Then one day, in late 2022, James gets a phone call from a company that is purporting to be based out of Atlanta, Georgia called Worry Free Vacations.

Worry Free Vacations?

That sounds enticing.

Yeah. And they start off with a simple question, which is, do you want to buy a timeshare? And James says, I already have a timeshare. And then they say, great. Well, what about selling the timeshare? Do you want to sell? There’s this Mexican businessman, and he’s interested in your timeshare. And he’s willing to buy it for about $20,000.

So we figured, well, what the heck? If we can make a few bucks on it, we’ll go for it.

And James jumps at the opportunity.

And did he do anything to try and verify that this was real?

Yeah. So remember, James is former law enforcement. And he feels very confident in his abilities to sniff out untrustworthy people. So he goes online, and he googles this Mexican businessman and sees that, yeah, he is a real person.

He’s a very well-respected individual in Mexico, very well off. And —

And this makes James feel at ease, that he’s selling to a legitimate person, that Worry Free Vacations are who they claim to be and that he’s going to double his money overnight, essentially.

And what happens next?

Well, a couple of weeks after he makes the agreement with the buyer, he’s told that he needs to send a couple thousand dollars to facilitate the purchase.

What does that mean, facilitate?

[MUSIC PLAYING]

I can’t remember specifically whether it was supposed to be cross-border registration —

So he’s being told that there are these fees that are paid directly to the Mexican government.

Or SPID or some other fee that was Mexican government required or not.

A lot of these fees are the same types of fees that you would pay in the United States for a real estate transaction. So he begins wiring money to an account in Mexico.

After that —

— a few days later, we get a notification. Well, everything went well, except that we have to pay an additional fee.

Every time that he sends one fee, he’s being told that he’s got to send another fee right afterwards.

Does he get suspicious at any point?

His wife is suspicious. After the first couple of payments, she starts saying, this does not feel right.

But James is the former law enforcement officer, right? And he’s the one that basically handles the family finances. And he’s confident that all of this is going to work out because he’s being told that the buyer of the timeshare will reimburse James for all of these fees once the sale goes through.

Michael from the Worry Free Vacations was constantly reassuring me the money’s in that account. Check with the commercial escrow account. It’s there. It’s just these fees have to be paid, and you’re being reimbursed for all of this.

They’re sending James documents that show all of the reimbursements that he’s owed and how much money he’s going to get. And this just makes him feel like all of this is kosher.

We have this commercial escrow company that was involved out of New York. So there was an air of legitimacy that I was comfortable with.

Maybe OK, these guys just need one more fee and everything is going to finally be cleared.

But about a year in, James starts to get suspicious. He begins asking questions because he wants his money.

And every time I asked, hey, is there a way I can get a partial release of these funds, there was always no, these funds have to be paid from your account before they’re released.

But Worry Free Vacations, they pivot. And they tell him that, listen, there are all these complications. It’s going to be really hard to get your money out from this transaction.

I could pay about $30,000 and change to reinvest the $313,000 into an environmentally-conscious development in Loreto, Mexico.

Instead, we’ve got this other investment opportunity in Mexico.

And I’m sure you know where that is, over on the East Coast of Baja.

And that is going to make you a huge return, even more money than you had thought that you were going to make, much more than the $20,000.

I’m supposed to have 54 million pesos in a Mexican bank account.

So this is now no longer just about his timeshare. They are now partners in a real estate investment.

Right. And there’s this whole new round of fees and fines associated with that.

So how many payments would you say?

Quite a few. Couple dozen at least, maybe more.

When was your last payment?

It would have been 17 January.

Uh-huh. And what was that for?

Good question.

And all along, he believed it was necessary to pay these costs just to get the money that he’s owed.

The amount of money that I’ve sent to Mexico is just freaking exorbitant. And I mean, it is approaching $900,000 or more.

And at this point, he’s sent about $900,000 to Mexico over about a year and a half.

Nearly $1 million.

That was almost all the money that he and his wife had saved for their retirement.

It also included money from the sale of James’s childhood home and money that he had borrowed from his daughter and son-in-law, about $150,000 from them.

It’s awful. So they were completely cleaned out by these guys.

Yeah. And this is when his daughter asks a law firm to look into this, which is the point in the story when I meet James. And when we start talking, it was clear to me that he just did not know what to think, even after losing this much money.

So this started in 2022. When did it end?

We’re still in it.

And he’s still talking to the scammers.

And as a matter of fact, presently, there was a request for $157,000 and change to clear up this whole thing. It would clear the entire issue out. Now —

And James is even considering putting a second mortgage on his house to send that money that he’d been promised would finally clear all this up — one final payment of $157,000.

It really sounds like he’s still wanted to believe that this was somehow legit.

Yeah. It was pretty clear to me that he was being scammed. But I didn’t definitively know what was going on, so I asked him if he could start recording his phone calls with the scammers.

Would you be so kind as to do me a favor?

Would you be willing to give them a call and record them?

[LAUGHS]: I’ll let you in on a little secret. I’ve been recording them.

And it turns out he already had been.

Worry Free Vacations.

So he shared the recordings of these calls that he’d had with these scammers over the last year or so. And it was just remarkable. It gave me huge insight into how the scam worked and the way that it sounded over the phone.

Is this is Michael in? I think he’s trying to call me. I couldn’t get through pick up.

Yes, I believe he did try to call you, sir. Give me a second. I think he’s only going to be in for a couple of minutes. One second.

There are two main takeaways for me listening to these calls.

Good afternoon. Michael McCarthy.

Michael, I missed your call. I was trying to pick up.

Yeah, don’t worry. Yeah, I figured something was wrong with your phone. Everything OK?

The first is that these scammers had really gotten to know James so well, and they really made James believe that Worry Free was a company that was working for him.

That’s why we need to hurry up and get this money over to you. Because hey, I’m losing my mind too. I’m not even here to convince you, James. I’m not — I’m your broker, and —

One of the things they continuously say is, trust me.

Look, I’m doing everything I can in my power and will on my end. So James, just look — like I told you from the get-go, I’m going to resolve this. And we are doing it. I just need you to focus on the goal.

They would refocus the conversation on what James needed to do to get his money back.

Look, if you make your payment as a security deposit, right away they will release the funds to you. With these —

And the other thing —

I’ve been having so much trouble trying to reach you, and I have not been successful.

— is that the scammers had created this elaborate cast of characters.

Why don’t you answer my calls?

And some of them were really aggressive. James shared a recording of this one man who claimed to be an agent for the Mexican government. And he basically started yelling at James.

I don’t care if your wife is at the hospital. To be honest with you, I don’t give a damn! But you know where I do give a damn? It’s your money, and my name is written all over it! Do you understand?

And he even threatened James. If James didn’t pay off these fines, then he would lose all the money that he’d sent to Mexico already.

You could get the best lawyer you want. You could get whoever you want. And this is not a threat. This is facts. But anyways, who am I to convince you, right?

Well, thank you for the information. And — are you still there? Hello?

Wow. So these scammers were basically doing a good cop, bad cop routine to stop James from walking away and to squeeze every last penny out of him.

If you provide me your email, contact information, I will certainly be happy to forward all of the wire transfer information from my bank account to you so that you can see where those funds went.

Yeah, that would be great. I have your email.

James asks me, a reporter who’s based in Mexico, who speaks the language, if I could help him figure out where his money had gone to.

Thank you very much. I really appreciate your assistance.

I’m just doing my job. Thanks again, and we’ll talk soon.

And the only way that I could figure that out was to understand who was on the other side of the phone.

We’ll be right back.

So Maria, who was on the other side of that phone line?

So by the time that I’d met James, I’d already gotten a tip from US law enforcement agencies that they were seeing a new trend. Mexican drug cartels were getting involved in the timeshare scam industry.

Drug cartels?

Yeah. And not just any drug cartel. This is one of the most notorious, violent, bloody drug cartels that exists in Mexico and Latin America, the Jalisco New Generation cartel. And when I looked at James’s bank records, guess what? All the money that he was sending was going to various bank accounts that were all located in Jalisco state in Mexico.

Wow. So why would the drug cartels get into the timeshare scamming business?

It is a huge business. The FBI told me that it’s about $300 million in profits over the last five years.

But the thing is is that the potential for it to actually be multitudes more is huge. Because the FBI estimates that most of the scams are actually not even reported. In fact, only about 20 percent are. So that means the total timeshare scam business could actually be much larger than the $300 million that they have knowledge of over the last five years.

But wait. I thought the drug business was a pretty lucrative business in itself. So why get into the scamming of elderly people for their properties in Lake Tahoe?

Well, you have to remember that these drug cartels, they’re not just doing one thing. They’re doing multiple things. They’re essentially conglomerates. Because it’s really expensive to run a cartel. You need to pay off officials, both Mexican and American. You need to maintain basically an army in order to secure your routes up to the United States, ports of entry into Mexico from Colombia. And any big business, you need to diversify your income to make sure that you keep the money flowing. Because you never know when one business is going to be shut down by authorities or taken over by your rivals.

We’ve reported that they’re now in the avocado business and the construction business. And timeshare fraud is basically no different than any of those. So we’re seeing that the cartels have their fingers in many pies, the legitimate and the illegitimate economy here in Mexico.

It’s kind of fascinating to think of these drug cartels as like sprawling diversified business empires. But when did the cartels first get into the scamming business?

So Jalisco New Generation started about 15 years ago.

And when they started to consolidate their empire in Jalisco state, they found that there were all these scam timeshare call centers all over the state that were being run by various players, and that this was a huge, huge moneymaker. Because essentially, all you have to do is call up retired senior citizens in the US and Canada. It doesn’t take that much money to run that kind of a scheme. There’s no product you’re making.

So essentially, they conducted a hostile takeover of these call centers. They went in. They kicked down doors and dragged out the people who were managing these call centers by their hair and threatened to kill them unless they gave up the call centers or started handing over a cut of what they made. And slowly, slowly Jalisco New Generation cartel took over the entire timeshare fraud industry.

Interesting. Were you able to find any of these call centers?

So these call centers are pretty hard to find. They look like any other storefront. But I was able to visit two that were located in an upscale neighborhood in Guadalajara, which is the capital of Jalisco state. And it was just really perturbing because it was just so normal. Two villas about a mile away from each other outside. Outside of one villa, parents were walking by, holding their children’s hands as they did drop off at school.

It was right next to a park where people taking their morning exercise or their dogs for a walk. There was no real sign that the cartel was doing business there. But a few months before, Mexican law enforcement had found the bodies of eight young people who had used to work at one of these call centers and said that the Jalisco cartel had killed them.

Wow. What happened?

So I wasn’t able to talk directly to any of the victims’ families. They’re just too scared. But in general, this is usually how it starts.

The cartel seeks out English speakers to work for their call centers. Sometimes they don’t even tell them what exactly they are doing. They would tell the recruits that the job was adjacent to the hotel industry.

You have to remember, Jalisco is a huge, huge tourism magnet for Americans and Canadians and others. And the cartel would get their call lists from bribing hotel employees to give them the names of people who stayed at these hotels and also at the timeshare resorts. And the people who would work at the call centers are provided the names and a manual of what you need to do when you call, like a loose script of how to try to suck as much money as you can out of these people up North in Canada and the States.

So we don’t know for sure what exactly happened with the eight young Mexicans who were killed last year. But through an intermediary, one sibling told us that when their family member knew what their job actually was, they became extremely uncomfortable and tried to leave the call center and find another job maybe.

But the Jalisco New Generation cartel is known for being extremely brutal. They chop off heads, and they’ll put them on the gates of a playground, for instance. So that everybody in the neighborhood knows what went down. And in this case, it’s possible that they wanted to send a warning that there’s no defection from their timeshare call centers.

So basically making a very scary example of these guys, in case anyone else is thinking about quitting one of the call centers.

Exactly. And one man, who runs an organization who advocates for missing people and actually organizes search parties to comb the forests of Jalisco state looking for the missing, says that he knows of about 30 people who have disappeared from the call centers in Jalisco state since 2017. So while Americans and Canadians might be losing much of their life savings, in Mexico, this is actually deadly.

Are the authorities doing anything about this?

Not really, other than the fact that these two call centers were shut down. The authorities haven’t arrested others. They’re not putting pressure on Mexican banks, for instance, to look into these payments coming from senior citizens in the US or Canada. And you have to remember that people are really afraid. But you also have to remember that in Mexico things are not that clear. There is a lot of corruption and government collusion with organized crime and cartels.

And the tourism industry, it is huge in Mexico and particularly in Jalisco state. This is a multi-billion dollar industry. They don’t want Americans or Canadians or Europeans who are coming to Jalisco for its beautiful beaches and its mountains to hear about these stories regarding the cartels being involved in the tourism industry and think, I’m not going to send my family there for that beach vacation. It’s just simply too dangerous.

So everybody has an incentive to have the scam continue, whether because they’re too afraid and don’t want to speak out or because they’re in on it.

So in a way, local authorities have an interest in sweeping it under the carpet in order to just maintain this idea of a tourist destination.

Exactly. I mean, the spokeswoman for the prosecutor’s office was very responsive to me until I told her what I wanted to ask her questions about. And then she just simply never answered any of my texts or phone calls.

So Maria, based on everything you know, all the information you have, would you say that you’re confident that the cartels were the ones who scammed James?

Yes, 100 percent. Everything I’ve seen points in that direction.

What did James say when you told him this?

So it took him quite a while to really allow himself to believe it. On the advice of his lawyers, he stopped picking up the phone calls. And about a week ago, they stopped after the scammers kept trying to call him.

But you said he was in it for over a year. Why do you think it took him so long?

Can you tell me, after all of that had been presented to you, why do you think you weren’t willing to be entirely convinced?

Well, I actually asked him that question.

That’s a very good question. Why wasn’t I able to pick up on that right away? And I think in the back of my mind, I’m finding out that I’m a little more stubborn than I thought I was.

And for him, it was pretty complicated.

And I think that I didn’t want to believe that I had fallen for this. I didn’t feel I was that foolish and stupid when it came to this. You know? I guess I didn’t want to believe that I could be fooled.

To come to terms with the fact that he had lost so much money was to come to terms with the fact that he wasn’t the person that he thought that he was, that he wasn’t this kind of clever former law enforcement officer who was used to fighting the bad guys and winning.

I’m disappointed in myself. There’s a huge level of anger towards the perpetrators. And all of those things wrapped into one. And part of that, I think, contributes to not wanting to actually believe that I was wrong.

Hmm. Yeah, I hear you. I’m sorry. I can hear the pain in your voice.

[LAUGHS]: Yeah.

Some of it’s based on shame, right? That he lost all this money, everything that he’s worked for, and the fact that this was all supposed to be money that his children and his grandchildren were going to inherit. And now it’s gone.

And have you told your daughter that you think you’ve come to terms with the fact that this might have been a scam?

Oh, she’s been involved. Yeah. They know.

My daughter does.

I’m sorry. This is a tough time.

So I’ve got to make some sort of arrangement to compensate them for this on top of our regular debt. So yeah. It’s been a swell experience, all of it brought on by my — evidently, my stubbornness to believe that I couldn’t possibly be a victim.

How’s your wife doing throughout this whole process, with this new knowledge?

She’s not real happy, obviously, at all. I hear a lot of “I told you so.” And at this point, I’ve got no defense. She’s absolutely right. There’s no question about it.

Do you worry this is going to affect your marriage?

Yes, there has been an effect.

And do you think that at this point there’s any way for James and his family to get some kind of justice or at least find some kind of closure?

Ay. Justice? Unlikely.

At this point, I’m not necessarily expecting much in the way of restitution.

And as for closure, it’s a little bit too soon to tell. In a way, James has gone through several stages of acceptance for what happened. There’s fear. There’s shame. There’s resignation. And now he’s talking to me partly because he feels like it’s a public service, that he needs to be vocal so that other people don’t go through what he’s gone through and fall for the scam. And I think it also helps him feel a little bit empowered in a situation for over the last year and a half he was at the mercy of these people who were calling him multiple times a week.

I want to try to get as much information to as many of these official organizations as possible. I have a streak of anger through me now that I’ve developed to the point where I’m not going to let this go.

Well, Maria, thank you.

Thank you for having me.

Here’s what else you need to know today. OJ Simpson, the football star who was accused and later acquitted of murdering his former wife and her friend, died of cancer at his home in Las Vegas, his family said Thursday. He was 76.

Today’s episode was produced by Astha Chaturvedi and Will Reid, with help from Clare Toeniskoetter and Lindsay Garrison. It was edited by Brendan Klinkenberg and Michael Benoist, contains original music by Marion Lozano, Rowan Niemisto, Dan Powell, Pat McCusker, and Will Reid, and was engineered by Chris Wood. Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly.

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That’s it for “The Daily.” I’m Katrin Bennhold. See you on Monday.

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Hosted by Katrin Bennhold

Produced by Asthaa Chaturvedi and Will Reid

With Clare Toeniskoetter and Lynsea Garrison

Edited by Brendan Klinkenberg and Michael Benoist

Original music by Marion Lozano ,  Rowan Niemisto ,  Dan Powell ,  Pat McCusker and Will Reid

Engineered by Chris Wood

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Warning: this episode contains descriptions of violence.

A massive scam targeting older Americans who own timeshare properties has resulted in hundreds of millions of dollars sent to Mexico.

Maria Abi-Habib, an investigative correspondent for The Times, tells the story of a victim who lost everything, and of the criminal group making the scam calls — Jalisco New Generation, one of Mexico’s most violent cartels.

On today’s episode

Maria Abi-Habib , an investigative correspondent for The New York Times based in Mexico City.

Background reading

How a brutal Mexican drug cartel came to target seniors and their timeshares .

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