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Most Popular Examples of Top Companies That Failed Business Strategy

Business strategy has been a serious business buzzword for a decade. Top leaders ponder about how to craft strategic business objectives that are aligned with the organization’s business needs.

It is hard-hitting to see how corporations like Kodak, Nokia, Blockbuster, Yahoo, and many others were severely shriveled, foundered and shrunk. There are few yet some of the world’s top companies (80’s) that once existed are now long gone.

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A familiar tale of woe you’re bound to hear at just about any business strategy conference you’ll attend.

The business world is and will always remain to be harsh. Even those that managed to survive for years have grown obsolete.

As said by Dr. Graeme Edwards, “It’s not the plan that is important, it’s the planning.”

The business strategist must ensure they build successful strategic plans to help businesses remain vital and sustainable.

Organizations that didn’t change with time are taken into the abyss of irrelevance. They have either been acquired by other top rivals or they’ve just failed with their business strategies.

History keeps reminding us that even though we’re in the worst days of greatest failure there will never be a shortage of business strategists to warn us against the perils of failed business strategies. However, it is for us to embrace any upcoming change we often ignore.

Phil McKinney, CEO of CableLabs made a statement that goes, “without a robust and resilient innovation strategy, no company can survive.”

World’s top companies that followed the best business strategies, yet fail, why?

Eastman Kodak

You’d be surprised, for almost a century no company could compete for the commercialization in terms of Kodak.

This didn’t last long, they blew their chance of leading the digital era as they were in denial for way too long.

Ever since the 80s, they’ve been trying to expand into other fields like document management, pharmaceuticals, healthcare imaging, memory chips – and the saddest part is – they could never return to their original state.

The magic just vanished as Kodak’s leaders failed to see the digital revolution to be the next era in the world of photography.

While web aggregation and the online search was under the virgin territory, yahoo charged their customers for services like file sharing and e-mail. When this was happening, Google, on the other hand, provided these services for free of cost.

Well, everybody flocked to Google. This approach of customers came out to be a commendable result for Google, which still holds a name for itself to date. While Yahoo grew to be the largest portal for sports, news coverage, financial , and web. It has hereby drifted into original entertainment, job-hunting services, and video streaming.

USD 45 billion buyouts offered by Microsoft turned out to be a huge loss since the market value for Yahoo drops down to USD 19 billion.

One of the largest company that drastically failed because they didn’t embrace the concept of software and didn’t put their focus on hardware due fear of having alienation of the current users.

Undoubtedly Nokia was the global leader in mobile phones during the 90s and 2000s.

When the internet came into existence, besides Nokia, other mobile companies started embracing how data and not voice would be the future’s aspect of communication.

This was one of Nokia’s biggest mistakes – not wanting to take the lead on user experience causing them to develop a messed-up operating system and a bad user experience which wasn’t the right fit for the current market .

However, in 2008 Nokia did try getting into competition with android but miserably failed.

Blockbuster

2004, a year when Blockbuster was at its peak. They even manage to survive the transition phase from VHS to DVD. All these came to a downfall when Netflix began forwarding videos via mail, a phase when cable, as well as phone companies, started providing videos on-demand. A phase when Redbox started renting out videos for a buck per night through vending machines. Since video streaming is now possible via phone and computer, Blockbuster’s retail outlets tend to become outdated thus leading to the closure of hundreds of stores. The firm is trying to copy some of the competitors’ business strategy , yet they have failed the chances to cope up.

Rather than being a leader today, it has started chasing the industry.

Turning down the offer made by the founder of Netflix Reed Hastings was the biggest mistake former CEO of Blockbuster John Antioco committed.

Today, Netflix stands to be a USD 28 billion-dollar company.

Other companies that failed to rise in the industry

Tie Rack, Segway, IBM, Blackberry Motion, Dell, Motorola, Polaroid, Pan Am, Borders, Tower Records, Compaq, General Motors, Pets.com, and Sears are names of the other companies that failed to rise again in the market due to bad business strategies.

Reasons why business strategies fail – why business strategist must keep a check on

• Zero succession plan

Who will be your future leaders? Do you have these names on your fingertips? Having zero or no succession plan will lead toward the death of your business.

• Poor managerial skills and management

Micro-managing, inability to listen and working without having the right strategic leadership are signs of poor managerial and management skills.

• Lag in planning

Most often business fails due to lack of short-term and long-term planning. It is vital to have strategized business plans planned of time – where will your business head in a months’ time to the next year.

• Following premature upscaling

Simply put, the scaling of businesses is good only when done at the right time. If you prematurely scale your business, you will eventually destroy it. Well, Pets.com failed because they tried to scale up way too fast.

Yes, it is true, most businesses fail yet rise again. Those that rise aren’t the result of a miracle but the result of executing the right business strategy.

Guest post courtesy of Michael Lyam

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13 Notorious Examples of Strategic Planning Failure

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blog , Strategic Planning

Strategic planning failure occurs when businesses cannot identify and solve issues surrounding disruptive software systems to achieve their corporate goals. Businesses experience strategic planning failure on many different levels, including large corporate scales, like when a merger fails, or on more specific individual levels when team members cannot value or support one another.

Avoiding strategic planning failure in businesses involves corporate leaders and team members recognizing where changes are necessary to best achieve success. Here are some examples of business planning failure from 13 companies with notorious cases.

1. Hewlett Packard

Hewlett Packard (HP) is a technology company specializing in hardware and software development. At their prime, HP oversaw the development of computers, printers, and software.

In 2002, CEO Carly Fiorina merged HP with another technology company , Compaq, to form HPQ. However, the merger occurred without allowing employees to adjust to each other’s company cultures, leading to mistrust and lack of support across all company levels. Neither company had the time to compare and sync their system software to find where they were compatible and needed to make adjustments.

Planning failures don’t have to define a company — many businesses can move beyond them if they learn from the experience. Now, HP is primarily known for its printer technology, but the company recently transformed what could have been a business tragedy into a growth opportunity.

2. Xerox 

Xerox Holding Corporation offers document goods and services in both digital and print formats. In 2001, after suffering financially for a couple of years, Xerox appointed Anne Mulcahy CEO in hopes that her enthusiasm and drive could turn the business around.

While the company made strides under her leadership, previous federal investigations hurt company performance and made it challenging to implement new improvement strategies. Management’s poor legal and ethical choices, which had roots in weak core company values, led to Xerox’s business strategy planning failure.

Cisco is a telecommunications and networking company that offers goods and services for software and hardware technology. In 2011, they announced a new product that required targeting a new market instead of focusing on a product fit for their existing one. The lack of strategic planning cost over 6,500 employees their jobs  and hurt the company’s financial performance.

4. Unum/Provident

Unum Group is an insurance provider that merged with Provident in 1999 to form UnumProvident. Under this merger, they became the first insurance company to offer group disability coverage as a part of employee plans. 

They are a company whose strategic planning failed, as they spent large sums of money on training and integrating the systems and cultures of the two companies. The two environments were too different, creating significant dips in UnumProvident stock and the break of the merger in 2007 .

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5. Laidlaw 

Laidlaw International Inc. is a transportation company specializing in intercity and public transit. Like Cisco, they tried to expand their business beyond their determined market by providing ambulances in addition to public transit. This ultimately hurt their business and led to them declaring bankruptcy.

6. Motorola 

Motorola is a communications company that specializes in phones that tried to market luxury cellphones in 2009. However, due to the strategic planning failure, investing in this kind of technology and market caused Motorola to lose millions. In 2014, Lenovo, a computer company, bought Motorola and still owns the brand .

7. Green Tree Financial 

In the 2008 housing market recession, Green Tree Financial, a mortgage financer, experienced great losses due to the market crash. With backing from the Lehman brothers, the company used aggressive marketing tactics to improve business, leading to legal consequences. Conseco, a financial firm, bought Green Tree to help put the business back on its feet but instead led to Green Tree Financial declaring bankruptcy due to strategic planning failure. 

8. Kodak 

While Cisco and Motorola’s strategic planning failures preach caution when investing in new technology, Kodak is the opposite. Kodak, a camera company, lost business and sales in the rise of digital cameras and photos when they didn’t invest in the new technology. Because of this, the camera market took off without them as customers wanted newer models and chose competition. 

9. WorkerExpress 

WorkerExpress is a company allowing customers to contact construction workers to hire by the hour directly. However, without research and planning, they didn’t realize there was little market for this. The company had to change its approach to business to instead work with construction contractors directly. 

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10. Schlitz Brewing Company 

Schlitz Brewing Company is a beer brand based in Milwaulkee that argued that its product made the city famous. They experienced business strategy planning failure when they tried to change their brewing process in 1967 to cut production costs. The public did not receive the change well, and it changed how people viewed their brand and products, causing another company to buy Schlitz in 1982. 

Instead of strategically forming a plan to cut production costs, Schlitz sacrificed the quality of their product, leading to the rejection of their beer by the public.

eBay is an online auction site where companies and individuals bid on products. eBay represents another strategic planning failure example where a merger was the cause.

In 2005, eBay decided to merge with Skype, thinking it would enhance their business. However, the values and systems of the two firms did not integrate well with each other. In 2009, eBay reversed the merger but already experienced significant decreases in stock .

12. Iridium 

Iridium Satellite Communications is a global communications network whose investment in technology did not have the desired effect on the public, who rejected their phones for being too expensive. Because the company failed to plan for this reaction, Iridium did not find the public success they were hoping for.

13. UPS 

UPS, a shipping company located in the U.S., rolled out a new shipping initiative during the holiday season in 2013 with a promise to have all packages delivered by a particular time before the holidays. However, the company did not anticipate the high demand that would follow this plan, which overwhelmed workers and delivery teams, causing large amounts of packages to arrive later than promised. 

UPS did not deliver its promises, and it bought new planes and trucks to execute its plan. They did not recognize the logistical difficulties in training new staff for their delivery promises, all of which hurt the company. 

Learn How to Prevent Strategic Planning Failure With AchieveIt

Failure to plan strategically can drastically change a company’s history and trajectory. When setting goals and plans for your business, it is best to account for the unknown circumstances that might arise, such as market reaction and merger costs. By planning for the future, you can best prepare your business for problems and have a plan for handling them. 

With AchieveIt, our software systems can help your company manage and implement business plans and initiatives . Test AchieveIt’s certified strategic planning software to improve how your company reaches its goals. 

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67 Failed Startups with a Bad Business Model

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Countless startups around the world are being launched every week.

Many fail because they did not learn from the success of other companies who've managed to rise above.

We just published this list of 67 startups that failed due to a bad business model, along with analyses on why they shut down and interviews with their founders.

Everything you need to raise funding for your startup, including 3,500+ investors, 7 tools, 18 templates and 3 learning resources.

Information about the industries, countries, and cities they generally invest in.

Information about their valuation, HQ's location, founded year, name of founders, funding amount and number of employees.

List of startup investors in the FinTech industry, along with their Twitter, LinkedIn, and email addresses.

List of startup investors in the BioTech, Health, and Medicine industries, along with their Twitter, LinkedIn, and email addresses.

List of 250 startup investors in the AI and Machine Learning industries, along with their Twitter, LinkedIn, and email addresses.

90% of startups fail. Learn how to not to with our weekly guides and stories. Join 40,000+ founders.

Aria Insights

Aria Insights developed highly advanced drones. After some pivots, the company couldn't find out the correct business model and had to shut down.

Details of the startup:

Helen Greiner

United States

Software & Hardware

Started in:

Nº of employees:

Funding Amount:

Specific cause of failure:

Multiple Reasons

You can read more about their failure here .

Berg was a cloud platform on which Little Printer, an IoT device, worked. They had loyal supporters, but couldn't convert it into a sustainable business.

United Kingdom

No Market Need

Call9 was a health startup targeted at patients who needed to speak with a doctor. The founder's inability to achieve growth, led to its shut down in 2019.

Celina Tenev, Timothy Peck, XiaoSong Mu

Bad Business Model

ChaCha was a search engine where you interacted with a human being. However, the startup got stiff competition when Google released its Panda algorithm.

Brad Bostic & Scott Jones

Competition

Circa had the mission of ‘fixing’ what was wrong with journalism. They suffered a financial breakdown and were copied by giants in the news sector.

Arsenio Santos, Ben Huh, Matt Galligan

Entertainment

Lack of Funds

CircleBack Lending

CircleBack Lending was a loan marketplace. Due to problems with profitability and issues with the industry, the startup was forced to cease its operations.

Manoj Ramnani & Patrick Questembert

Design Inc.

Design Inc. linked clients to talented designers. They reached market saturation and the startup could not make enough revenue to cover operation costs.

Bjoern Zinssmeister, Marc Hemeon

Desti was a traveling and mapping iPad app that used AI to help planning a trip. Although users found it useful, they ended up booking on other platforms.

Imri Goldberg, Mosi Shuchman, Nadav Gur

Dinner Lab offered a culinary experience with a group of strangers in an unusual place. They faced several problems, including the diner's timing.

Brian Bordainick, Francisco Robert, Zach Kupperman

Food & Beverage

Flowtab was an app that solved the problem of long queues in bars. They tried several business models but never found a profitable one, so they shut down.

Mike Townsend

Juicero was a juice company that packed fresh organic fruits. They claimed their juicer was innovative, until customers found out the machine was useless.

Kitchit brought local chefs to your home. They had to compete with other big food providers in the same market, which provoked their failure.

Brendan Marshall, Ian Ferguson

Lumos provided the ultimate smart switching tech. After the shutdown, the founders recognized they were not the right team to build a hardware company.

Pritesh Sankhe, Tarkeshwar Singh, Yash Kotak

Lack of Experience

Mailbox made your inbox more manageable and efficient. They didn't find a way to monetize the app. After being acquired by Dropbox, Mailbox shut down.

Gentry Underwood, Scott Cannon

Productivity

Maple prepared and delivered meals in NY. They were losing money on each meal and it only began making a profit from 2016, just before they shut down.

Akshay Navle, Caleb Merkl

MatterFab had the goal of making metal-based manufacturing affordable. However, the business never found a profitable business model and pricing strategy.

Matthew Burris

Move Loot was an online resale marketplace for furniture. They decided to have a furniture stockroom without thinking about the expenses of running it.

Bill Bobbitt, Jenny Karin Morrill, Ryan Smith, Shruti Shah

Parse offered a platform for mobile app devs with tools to let them build, run and test applications. Facebook bought Parse and shut it down in 2017.

Ilya Sukhar, James Yu, Kevin Lacker, Tikhon Bernstam

Acquisition Flu

PepperTap provided a platform to buy and deliver groceries from local markets. Customers found delivery fees too expensive for their needs, and shut down.

Milind Sharma, Navneet Singh

1,000-5,000

Poor Product

Poliana's aim was to bring order to the USA political system. They had low market demand and ran out of funds even after implementing 3 business models.

Grayson Carroll, Patrick Cason, Seth Whiting, Shawn Whiting

Selltag was a web-based buy & sell platform. The CEO realized their business model would not be sustainable in the long term and shut it down.

Javier Escribano, Ruben Colomer, Juan Luis Hortelano, Walter Kobylanski

Failure to Pivot

Sharinger was a marketplace for musicians to rent their instruments. They focused on a market that was too small and the business model was unsustainable.

Mircea Gabriel Eftemie

Shuddle was the go-to service for parents that needed someone to drive their kids to school. Parents found it disappointing, so they had to shut down.

Nick Allen, Rodrigo Prudencio

Transportation

Shyp imitated the Uber model with an on-demand shipping service. However, they were unable to figure out a profitable business model and had to shut down.

Jack Smith, Joshua Scott, Kevin Gibbon

Sprig delivered meals to customers who were looking for healthy choices. Sprig found the process time-consuming and expensive, and decided to shut down.

Gagan Biyani, Matt Kent, Morgan Springer, Neeraj Berry

Springpad was designed to empower users to clip, organize, and interpret all types of web content. The company failed to develop a monetization strategy.

Jason Horman

Lack of Focus

Stayzilla, once a thriving homestay network with $33.5M in funding, closed due to unsustainable operational costs and consistent financial losses.

Rupal Yogendra, Sachit Singhi, Sachit Singhi, Yogendra Vasupal

Stereomood was a music platform that provided mood-based song listings. The company was acquired but they weren’t able to make a profit.

Daniele Novaga, Eleonora Viviani, Giovanni Ferron, Maurizio Pratici

Sunrise was a calendar app for mobile and desktop. They had good reviews from users, but calendars are hard to monetize and they have a low entry barrier.

Jeremy Le Van, Pierre Valade

TeeBeeDee was a social network aimed at people over 40 to share their experiences. They weren’t able to grow their user base fast enough to survive.

David Markus, Jon Brandt, Robin Wolaner, Todd Basche

Social Media

Transpose was a comprehensive information management platform. Operated for two years before shutting down due to the inability to generate enough revenue.

Hussein Ahmed, Matt Goyer, Samah Gad, Skyler Johnson-Wagner

Turntable.fm

Turntable.fm was a platform on which DJ and fans were brought together. The cost of running it proved to be too expensive and they had to shut down.

Billy Chasen

What happened to Vine? Why did Vine shut down? When? Does TikTok face the same risk? Here's our detailed analysis.

Colin Kroll, Dom Hofmann, Rus Yusupov

Zoomo's goal was to build trust in the Indian used cars market. The buy-and-sell vehicle market was relatively young in India and decided to shut down.

Arnav Kumar, Himangshu Hazarika

101 Studios

101 Studios was a producer of video games that taught users things while they played. They went with a “business to professor” business model, but despite professors like the idea, they wouldn’t implement it in their classes. The startup could never reach product-market fit and shut down months later.

Matt “GundayMonday” Sever

Bad Market Fit

Matthew founded Adproval, a marketplace to connect blogging and social media influencers with brands. Raised around $300k in funds and made $200/mo from their self-service software for bloggers. In the end, they made over $200k in revenue from consulting services but it wasn't enough.

Matthew Anderson

$100K-$500K

Bediwin Information Services

James is a IT professional who decided to start a business on a “IT-manager-for-hire” type model. He built the company with really few resources and tools and started looking for clients. At peak, he was earning £2,500, but after some years, he had to shut down as he realized his business model was completely broken.

The Birdy was a simple app to track spending habits. Corey never figured out how to monetize it which also caused scaling issues.

Corey Maass

Steve and his housemate were always complaining food was expensive in Toronto. So, they came with a solution: hire a chef for themselves and 20 friends. This simple idea quickly escalated into a business, that, within a few months, was making +$110,000 per month. But, as it went up fast, it also came down rapidly. The business was involved in some legal problems, which forced the founders to shut it down. Read Steve’s failure story and learn from his mistakes!

Steven Long

Legal Challenges

Robert was the co-founder of Cuddli, a dating app for geeks. The startup was based in the US but they had their development team in Croatia. Media features grew the app to 100k users but a combination of a small market and their inability to monetize the app forced the startup to shut down.

Robert Walker

Formatically

Duncan Hamra has been building businesses with his best friend Tyler since they were in high school. They built Formatically, an instant citation tool that didn't take off. We'll discuss what went wrong with this project, and how those learnings helped him start Memberstack.

Duncan Hamra

GawkBox was a platform where viewers of live streams could play mobile games to donate real money to streamers. Chris co-founded this as his first startup and he was able to successfully raise $4.4M in venture funding, which the startup invested in marketing until they achieved 500k users and more than $1M in revenue. However, multiple mistakes and a series of reasons led to their shut down.

Christopher Brownridge

Graphite Docs

Justin Hunter had the courage to challenge Google Docs, all because he was scared of losing all his writing saved in the cloud. So he created Graphite Docs, a privacy-focused alternative to Google Docs powered by blockchain, that assured users that their saved files were indeed safe. And the effort paid off; he started gaining traction from individual users. However, he decided to focus on the B2B model, rather than B2C, and this decision cost him the business. Why? Read on to find it out.

Justin Hunter

Jeff Orr and two friends in college started Gulp- an app to pay bar cover. Gulp was meant to replace the inconvenience of having to go an ATM to pay for a bar’s cover fee, but with the lack of affiliate marketing knowledge and some bad unit economics, the friends quickly ran out of money.

HitroNaSplet

HitroNaSplet was a hosting reseller company. They invested a lot of time in SEO and achieved the first page in Google, which let them start making some monthly revenue. However, after some months, they realized it didn't generate enough revenue to be worth the time invested, so they closed their doors.

Ales Krivec

Hot Barber was a website that let hair stylists set up profiles and customers browse portfolios, but the founders couldn't find a way to monetize it!

Julia Enthoven

Tobi Ogunwande is a Nigerian filmmaker who tried to build the Netflix for African short films as a result of his frustration to find great African movies. He partnered with a technical co-founder and soon after launching, they were seeing an average of 1,000 views on their films. However, they soon realized the market niche was too small and there wasn’t a clear business model. Eventually, they run out of money and shut down.

Tobi Ogunwande

Andrew Askins, in partner with two of his best friends, started his company Krit in 2014. In 2015 they launched Ink, a tool that let freelancers create contracts and get them signed online. They got a couple thousand free users, but ultimately got burnt out before they could make the business model work. Now, they have been able to overcome this failure and build a successful consulting business.

Andrew Askins

Jasmeet is an Indian software engineer who a few years ago decided to build new revenue strategies for his business directory and decided to build a job board with a unique offline-online model. But their idea was too ahead to the time and, due to a bad business model, they had to shut down.

Jasmeet Singh

Juice Startup

Wit Sumathavanit has recently started to pivot from offline to online entrepreneurship. But before that, he tried to build a juice business in Bangkok. He lost around $3,000 but those learnings impacted his process to validate new ideas.

Wit Sumathavanit

In 2011, Gabriel decided to build a Go Server that would launch new features every few weeks. He and his co-founder built and launched it in 2 months and in the following months, they raised $20,000 through a crowdfunding campaign. 1 year into running and they were shut down: product, engineering, and morale were the problems to blame.

Gabriel Benmergui

Legaats was a web app where baby boomers and senior citizens could share their important life lessons. 5 were the causes of its failure.

Deepak Chhugani

Lernin Games

Jordi Miró has been building products and companies since 2007. After a successful CTO experience in Wuaki TV, he founded Lernin Games, an EdTech startup focused on toddlers. He raised €1.5M and built a team of 10, but Lernin ran out of cash and the project couldn’t succeed.

Kevin was the founder of Melon, a food delivery startup aimed at being more cost-effective. Melon’s unique approach was quickly validated through an MVP and in just two months, the business grew to $10k/mo and 500 users. However, they realized becoming profitable would be hard and decided to discontinue the service.

Following his objective of reaching $10k/month from his online businesses, Jake launched NE Lounge, an Amazon FBA store selling inflatable products. 1 year and $16,000 later, the startup shut down. Choosing the wrong product in an unfamiliar niche is the cause to blame.

Onepagetrip

Onepagetrip was a travel itinerary sharing community. Not having a plan to make money from the beginning was a stupid rookie mistake.

Ömer launched patron.ai, a gamification platform for developer teams. After promoting it on Twitter and Product Hunt without getting much traction, he decided to shut down the project. That decision was mainly due to a lack of product-market fit and not talking enough to users that signed up.

Shanti is a 38-year-old software developer and entrepreneur who, using Ruby on Rails, built Phez, a Reddit clone that rewarded users with Bitcoin. After a few months, however, Phez failed due to its poor business model. If Shanti would have sold the BTC he used as rewards at BTC peak, he would have made $29,014!

Shanti Braford

Logan was the CEO and CTO of Playdate, an on-demand social networking app. In two years, the startup grew to a team of 7 at its peak and 5,000 monthly active users. However, a collection of causes made the startup uninvestable and they eventually run out of money.

Steven was co-founder at Rent Nest, an app that allowed users to collect and share information on houses to rent. They raised some money from friends and were soon accepted on a startup accelerator. Throughout two years, the startup grew to $12k/mo, but they were spending +$40k/mo, which led them to eventually running out of funds and shutting down.

Steven Glod

Sport Draftr

Will created Sport Draftr, a Daily Fantasy Sports site in the UK, offering leagues in the English Premier League, and UEFA Champions League. The product was loved, looked great, and it worked well, but due to a lack of knowledge in the gambling industry and changes in legislation, they were forced to close the company.

Will Laurenson

Tandem was a live streaming platform for fitness. Cause of failure? Live fitness isn't that engaging. Influencers were reluctant to adopt a new platform.

Nick Raushenbush

When reading the Lean Startup book, Sergio came up with an idea he wanted to validate: a SaaS to help teams to perform at a higher level. The validation was done successfully, but since then, mistakes related to technology, founding team and listening to customers, meant its shut down 2 years later.

Sergio Schüler

The Punjab Kitchen

Amit is a hard-core sales professional, who decided to set up a home-made food business with his wife. They started investing $1,200/month to set up the startup and get the first customers. However, once running they had to confront a big problem: the prices of their competitors were much lower. After some pivots, they decided to shut it down.

Toygaroo was the Netflix of toys. Funded by a great group of people based in Los Angeles, the company appeared on Shark Tank asking $100k for a 10% stake. They ended up raising $250K in 2 funding rounds, but after some months, they had to shut down the company. Inventory and logistical costs were too high, so capital rapidly disappeared.

Maverick shifted from being an athlete to becoming an entrepreneur after seriously pondering what he wanted in life. He founded Uptrend, a deal sourcing agency for M&A firms in the US. He had some trial and errors initially but found his footing after he met an M&A advisor on a Facebook group who became his accountability partner. However, the business eventually closed down in January 2020 due to burnout and not having a foreseeable future.

Maverick Lim

Bad Marketing

Vacation Bird

Gene founded VacationBird, a marketplace for finding your vacation rental. It was an early version of Airbnb and a VRBO competitor. Having a misalignment of incentives between co-founders and poor planning were the main causes to shut it down in 2012.

Gene Maryushenko

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Top 5 Failed Business Strategies

Overview of failed business strategies

I wrote an article a few months ago about the best business strategies I've ever seen. Today, I wanted to explore the flip side of that coin - the worst business strategies I've ever seen.

More importantly, I want to explore what we can learn from those business strategies and how we can convert that learning into improvements to our own strategic plans.

A quick caveat - for each of the worst business strategies outlined below, there are actually a ton of reasons behind the scenes that contributed to them not working out.

I've picked out what I think the biggest offender was and outlined it for each. Also - many of these companies are super-successful and have achieved lots of other awesome things.

This isn't a criticism of them as companies, just of the particular business strategies I've picked out as being some of the worst I've seen ;)

1. Electronic Arts is Named Worst Company in America. Twice.

In-case you haven't heard of them - EA are pretty much the world's biggest publisher of computer games, famous for titles such as the 'Fifa' and 'Battlefield' games series. They've also had the dubious honor of being named the worst company in America twice in a row by the consumers voting in a Consumerist poll.

The reasons cited for this terrible bit of PR were that:

EA has failed at three "core requirements" of running a consumer-friendly business. These are: provide a product that people want and like, sell your product at a reasonable price, and support the products you sell.

The company's customer base saw EA as a greedy money-making machine - focused more on driving margins than creating good quality products. This was backed up when a number of company insiders spoke anonymously to the press about EA's corporate strategy at the time (the first 'award' was in 2013).

The company was under immense pressure from shareholders to grow financial returns, but the more focused EA became on growing profits, the more sales continued to dwindle:

What can we learn from EA?

One of the things we often see in strategic plans is a focus area around driving profit. This is something that I have a bit of a problem with. It's generally accepted that one of the core purposes of a company is to make profit.

But profit itself should rarely be a focus. Rather, the things that drive profit should be the things on which your strategic plan is focused. For example, for EA their focus areas should have been something like:

• Create awesome games
• Deliver exceptional customer service
• Drive innovation in the industry

Profit would have been a by-product of them delivering on these things. But according to the insiders - the core of their strategic plan at the time looked more like:

• Increase life-time value of games by xx%
• Explore additional revenue streams from digital media
• Capitalize on the explosion of mobile gaming

Definitely one of the worst business strategies I've seen. Here's why: Creating a 'profit first' culture shows a lack of imagination in strategic planning. Yes, it's the role of the business leader to drive ever-increasing financial returns.

But it's also his/her role to translate this outcome into positive focus areas that employees can get behind, and that go beyond pure financial metrics.

2. Kodak Decides to Press Pause on Digital Cameras

The prime example for companies that failed due to poor strategy. This is the story of how Kodak invented the digital camera, only to then decide not to launch one until over 15 years later!

In 1975, Steve Sasson created the world's first digital camera at the Kodak HQ in New York. It was a 0.1 Megapixel beast that was around the size of a toaster.

It was also utterly revolutionary and would change the face of photography for ever. The team at Kodak were smart - and they knew just how big of a deal this was. So they invested millions of dollars into getting digital cameras into production.

A few years later, they were all set to launch the world's first commercially available digital camera - until members of the senior management team put a stop to the whole endeavor.

Why? Because they were worried about hurting the performance of their film division - which relied on selling single-use rolls of films to customers with non-digital camera devices. Even when they were told that they had at most, 10 years until digital would completely displace film - they continued to resist in order to ensure that they met their own short term financial KPIs.

What can we learn from Kodak?

Plenty of postmortems has been performed on Kodak's demise and how it implemented one of the world's worst business strategies.

What most of them agree on, is that key executives at the time were working far more towards short-term profit goals than towards long-term viability of the business.

Even though film sales were declining - the executives did a great job of managing the expectations of their shareholders down, so that bonuses were still being regularly paid out, even as sales continued to decline.

One of the models we often suggest to our clients to avoid this scenario is to implement something like McKinsey's Strategic Horizon model as part of your strategic plan. This model forces you to balance your goals between the 3 horizons of:

• 1: Revenue from business as usual (around 70% of your effort)
• 2: Focus on broadening your revenue streams (around 20 of your effort)
• 3: Focus on exploring entirely new revenue streams (around 10% of your effort)

Whilst this model might not have saved Kodak - it would at least have highlighted how little focus was being put on revenue streams beyond that of their traditional film business. Take a look at our guide to the best strategy frameworks for more information about McKinsey's Strategic Horizons.

3. Kmart's Identity Crisis is Costing it Big-time

The 'big 3' of discount high street retailers in the US is made up of Walmart, Target, and Kmart (now owned by Sears). Usually, when you have this type of oligopoly, their fates tend to follow similar paths based on industry trends. That is, until one party starts to make mistakes:

Sales and footfall have been on a steady decline since around 2000, with revenue declined to match. Analysis has shown a direct move of shoppers from Kmart to their arch-enemies Walmart and Target.

In 2012, 10% of all Kmart stores were closed in one-fell swoop. The biggest criticism of Kmart and why it had one of the worst business strategies is because of its lack of  focus.

  Whilst Walmart is focused on 'always lowest prices' and Target is focused on 'cheap-chic clothing styles' - Kmart's vision statement at the peak of their problems read like this:

"To thrive as a mass merchandising company that offers customers quality products through a portfolio of exclusive brands and labels."

Huh? That vision statement could apply to just about any retailer on the planet!

What can we learn from Kmart?

Focus is probably the single biggest reason why you need to create a strategic plan. It helps you to channel your (limited) resources into a cohesive effort that everyone understands and can get behind.

But when your vision statement is as generic as Kmart's was - what chance do you have of bringing the focus needed to compete with juggernauts such as Walmart?

In addition to creating a great vision statement for your business, you might also want to implement a model such as the Value Disciplines approach. This model is about helping you to focus your business onto one key discipline from the following list:

• Operational Excellence
• Customer Intimacy
• Product Leadership

Kmart's friends at Walmart are probably the world's leading example of a company that is nailing Operational Excellence. Target have proved through their in-touch fashion lines that they have great Customer Intimacy.

Kmart on the other hand, had none of these things. Check out our guide to implementing Value Disciplines and other frameworks for more information.

4. Blackberry Fails to Realize that B2B Involves Actual Humans

In June 2008, Blackberry's shares sat at a healthy $144. Just 5 years later - they had sunk to a new record low of just $6.50. That epic fall is the result of another of the world's worst business strategies...

I remember my first Blackberry quite fondly. I was working at Bank of America, and received a shiny new monochrome screened Blackberry as part of a job promotion. Within a couple of weeks, I was firing off emails at the speed of light from anywhere and everywhere.

I'd become one of the many employees whose productivity had been boosted 20% through the simple act of issuing them a mobile device. So how did it all go so wrong for a company responsible for such a momentous shift in workplace productivity...

The single biggest problem faced by Blackberry was that people simply didn't want to use their phones anymore. Businesses themselves wanted to buy them - because they offered superior security and fewer distractions such as games than say an iPhone.

But the resistance from actual users inside those companies was huge - with an overwhelming clamor for iPhones and Androids. One by one, IT departments began to cave and allowed users to switch to devices of their own choosing.

Blackberry tried a few things to mitigate the slowdown in corporate sales, such as attacking the consumer space and implementing iPhone-esque designs and features.

What can we learn from Blackberry?

Ok, so this is a topic that's actually pretty close to my heart - and for me it comes down to the way that people think about B2B (business-to-business) vs B2C (business-to-consumer).

Blackberry's revenues were firmly entrenched in the B2B business model. They sold to corporations who then issued phones to their users.

So....who was Blackberry's customer in this case? Was it the corporations buying the phones or the users using them? Ultimately the people who made the decision to stop using Blackberry phones were the  users .

Yet Blackberry's entire pitch was geared towards the corporations. They resisted user trends such as touch screens and mobile games because businesses didn't seem to want these things.

But in doing so they overlooked the fact that ultimately, end-users would be the ones that would decide their fate.

We see this same pattern in a lot of enterprise SaaS software. How often have you found yourself one minute using an awesomely designed consumer product (Gmail, LinkedIn, etc) to the next minute logging on to your work computer and having to use a bit of crappy old-school software such as your company's CRM or HR system?

By the way, I can tell you that the  cost of that crappy enterprise software was many many times the cost of the awesome consumer software.

This happens because many companies think they get away with bad user experience in B2B products. That businesses are too lazy to notice or just don't care enough about their users.

But this is changing  fast . The expectations that businesses have around the enterprise products they buy is increasing rapidly.

That's why you're seeing more and more corporate use of platforms like Slack and Asana - and the demise of products like Blackberry.

To sum up why this is one of the worst business strategies - think deeply about who your customer actually is, and build a product for them - not just the middle-man you happen to be selling to.

5. McDonald's Salads Fail to Sell. And They Make you Fat.

Under increasing pressure from regulatory bodies about the high fat content of their menu - McDonald's in 2005 decided to launch their 'healthy' salad range. On the face of it, this seemed like a pretty good idea. Healthy living was becoming an increasingly prominent topic, and McDonald's wanted to capitalize on their powerful brand to cash-in.

But the salads didn't sell. Since their launch in 2005, they've only now managed to make it up to being around 2% of McDonald's' overall sales revenue. So, what did they do about it?

Consumer focus groups showed that McDonald's customers simply didn't enjoy the taste of the salads as much as they did the traditional burgers and fries. The psychology the focus groups unearthed went something along the lines of:

I've decided to go to McDonald's because I'm hungry and I want something tasty and satisfying. I'm unlikely to change my mind when I get there and buy a salad instead.

So McDonald's started to innovate on the flavors of their salads - adding dressings, sauces, and things like fried chicken. Sales increased a little bit, to around 3%, but quickly stalled until eventually, CEO Don Thompson admitted to investors that salads would likely never be a major source of revenue for the fast-food chain.

Furthermore, it emerged that McDonald's range of salads was actually   worse for you health-wise than their traditional fast-food menu. Leaving everyone scratching their head and asking the question: 'so why did they even bother??!'

What can we learn from McDonalds?

There are a couple of different learnings we can take from the McDonald's salad adventure, one of its worst business strategies. The first is simply the fact that as a general rule - companies should decide on what their core competencies are, and stick  to them.

But we kind of already covered that angle in the Kmart example above, so let's instead look at a different aspect of why this is one of the worst business strategies in recent times.

Whenever you embark on a new strategy - you need to clearly articulate  why you're doing it, and what problem you're trying to solve. This shared vision needs to be so well embedded in the strategy that the people involved can recite it easily and quickly, and that it permeates everything around the execution of that strategy.

The McDonald's strategy with salads started off as trying to mitigate reputational risk. Then it changed to trying to drive extra revenue.

That's fine - strategies are meant to evolve. But the problem is that in moving towards making extra revenue - they forgot entirely about the original reason that they launched salads in the first place!

And thus, they've come full circle and are once again defending themselves about how unhealthy their menus are - only the products they're defending are the very ones they introduced to try to solve this problem in the first place!

What are the Worst Business Strategies You've Ever Seen?

OK, so that's my top 5. Once again - now it's your turn. Tell me about the worst business strategies you've come across. The ones that made you smile and say 'damn they were dumb'. Share them with me via social media.

Over to you!

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13 Types Of Business Failure With 9 Real-Life Examples

Every business starts with a eureka moment.

It’s the sudden realization that your idea could, indeed, become a business.

Having a good idea, however, doesn’t happen overnight. It takes a lot of time, a lot of bouncing back and forth in your mind before finally, it starts making sense.

Indeed, there is no such thing as going to bed one night and waking up the next morning with a killer idea. It’s a long process during which you question your belief yourself; you discuss your inspiration with friends at the risk of them mocking you – after all, criticism helps your idea to grow.

Therefore, it’s not uncommon for enthusiastic first-time entrepreneurs to assume that once they’ve finally sorted out the business idea or services they could offer , they can just let it roll and hope for the best.

I remember as a kid, I witnessed my parents struggle with many businesses.

Although they were always quite enthusiastic to try new things, I still wondered why we were always changing shops and goods almost every three months.

Well, as I grew older I began to see why we were always changing from one shop to the other – our business kept on failing. We would accumulate so much profit in the first two months and in the third month, we would fold up due to some really bad management.

I began to wonder why we couldn’t just stick to one business and expand in due time, just like the businesses I see on the business newspapers that rake in millions in gross profit.

We obviously missed some steps. Let me shock you – your brilliant business idea is unlikely to be successful if you miss any of these essential building steps. T he truth is, a significant percentage of new businesses are bound to fail after the first three months or one year of operation. Here are the reasons some businesses fail.

#1. Lack of Planning

Your idea is only the beginning of your business journey. However, if you truly want to navigate safely to the market, you need to have a business plan .

Indeed, your plan includes the estimated costs of launching your company and the forecast revenues. By using these two figures, you can define when and where to spend money to establish your presence. More importantly, you can know how to recoup your investment.

Without a plan, you’re unlikely to be able to monitor your profits or control losses.

Why? Because losses happen during the first few years as you’re building a brand new presence in the market. 

#2. Poor Management

Most times, businesses fail as a result of bad management; it is usually the most common culprit for failed businesses. However, bad management isn’t the only cause of business closure. 

In my JSS2 or 8 th grade in high school, I was a very keen student of agriculture and would have gone for it as a major in university if I hadn’t gone for engineering. Well, I learnt in my agricultural studies class that so much care is given to crops when they are in their early stages.

For instance, rice plants are nurtured and cared for twenty-four hours as seedlings until they reach a mature stage of their growth. This is pretty much the same process in business. You need to pay special attention to your business at its early stages. A popular misconception is that when the business begins to grow, you should begin to monitor things with a UV microscope.

On the other hand, when a business has matured, it would take a mighty hit to bring it down unlike when you are still struggling to make enough profit and pay rent. Smaller children need more care and attention – smaller businesses also need that same care and attention.

#3. Lack of financial backing

Lastly, without funding, you’re going to struggle to bring your business idea to life.

A commercial loan can be tricky to obtain when you’re a new entrepreneur, but you can consider crowdfunding platforms, local investors and even bootstrapping.

The risk is less if you go for the latter. You can also save for a while using a secure money-saving platform like Piggyvest and use your accumulated funds to start or support your business whenever there’s a temporary challenge.

From knowing how to establish your business to understanding the limitations, there are questions you need to answer before your idea can be a successful company.

Don’t be tempted to rush through the steps; your future success depends on your patience and strategic approach. 

Get free tips and tricks that will help you to achieve success faster 😉

#4 Lack of location research

Back to my story. While my parents changed businesses, we also moved locations.

Believe me, relocation is not my thing – I hate moving. It gives me this unnecessary awkward nervousness of what the future holds. Now, you can imagine what it feels like to change businesses. I am sure I am not the only one that shares this predisposition.

Nothing beats settling down in one industry and growing your business to become a leading brand.  However, unless you know why each business fails in such a short time, you will be in the dark and will continue to jump from one business to another like a bird whose forest is on fire.

Where should you establish your business idea?

For new entrepreneurs keen to have an office instead of working from home, the cheapest option is typically better. In fact, it’s not uncommon for startups to establish themselves in rural areas or on the outskirts of large cities.

Unfortunately, the location can have an impact on the facilities available to your everyday processes. Water supplies, for instance, could be limited when you’re away from the town.

Small manufacturers, agricultural businesses, or even industrial firms that have not planned for a large water tank to harvest rainwater as a backup might find themselves unable to work for long periods of time.

Additionally, rural broadband access also plays a significant role in everyday business. Rural locations can dramatically affect your activities if you haven’t weighed your options well.

#5. Businesses not suited to customers

Who are the customers of your business idea? If you can’t answer the question, you may not know how to target the right target.

Your first step as a new business on the market is to study your customer personas .

Use keyword tools, social media information, Facebook Insights, and data-driven surveys and feedback. Then you can gradually build a realistic customer view that encompasses many audience types. 

#6. Poor Customer Services

When it comes to customer service, big businesses tend to have an upper hand in a lot of things compared to small start-ups. They usually have a functioning marketing/customer relations department that is tasked with following up on new trends and policies.

However, there are little things these big businesses fail to do and small businesses like yours can use them to their advantage.  Most big companies, after a while, are not able to create that familiarity with their customers the way smaller businesses can.

When you cannot point out at least one unique thing or a selling point, there is no way you can attract the customers enduring poor customer service from big names. Most times, what start-ups do is create an environment where your customers can feel like they are all getting special attention .

Psychology has proven that everyone loves to be noticed and treated specially. Actually, I feel that knowing your customers on a first-name basis is very important for startups, it creates a serious sense of familiarity and care.

#7. Poor Business Plan

It is true that some businessmen, investors and entrepreneurs may not see the full importance of a business plan. This is due to the common misconception that a business plan is only needed when seeking investments from sponsors and can be abandoned once gotten.

I beg to disagree that business plans not only serve as the foundation of your business but also serves as a reference book to future developments, management and possible expansion.

I can bet that Apple Inc. still has its business plan in possession. In fact, most major or established businesses have their rigid initial business plan that only needs to be amended based on industry policy changes.

With that in mind, one must take serious care to build a good business plan. According to Wikipedia, a business plan is a written document that contains business goals, the method of attaining those goals and the time frame within which the goals need to be achieved.

In other words, a business plan is a guiding light on your business journey.  Before you start building a house, you need an architect to draw a plan. Similarly, before you start any business you must structure your business plan in a way that it can be edited, invested into and achieved.

#8. Employing Too Many Staff

This is a mistake some small business owners make especially when they’re just starting out. The excitement of little leaps might get into the heads of some  startups which could tempt them to employ ten persons for a job that five people can do comfortably.

It’s fine to do this if you can afford it but if you can’t, it’s better to grow slowly until you can do bigger things. Else, the high running costs may start weighing down on the business and lead to failure.

#9. Poor leadership

This is another low-key problem that many businesses experience. Many business owners hate to admit that they lack the right skills to grow and expand a business properly.

This is why we have businesses that are struggling especially when it comes to making key business decisions. Just like the music industry, a lot of preparation is done before the actual music recording such as studio time, album sales, digital sales, show bookings, security and appearances.

Similarly, there are certain traits you need to possess to sustain your clients and customers. Business is not for everyone and that is a fact. I have seen boys that were given a whooping 5 million naira to start a business and because they have never been in a leadership position or know what it takes to be a leader , the business came crashing.

#10. Poor Financial Management

Yes, this is a problem that plagues many small startups and inexperienced managers. Usually at the early stage of a business, balancing profit and running costs can be quite frustrating. Most times businesses find it hard to separate capital from profit.

In business, turnover is very important, however, if you aren’t getting any profits, it is almost impossible to continue in the business. Depending on the level of financial problem, you might need to get a solution as fast as possible to keep your head up.

It is easy to sell products at a good cost price but the whole thing boils down to whether you can still afford your operating expenses after your inventory is exhausted.

#11. Bad accounting

If you can remember the company Eron, then you probably understand where I am going with this particular one. Well, for those of you who don’t know this story, Eron was a company whose name is now synonymous with falsifying profits.

Eron executives will post misleading profits of millions of dollars and meanwhile, they were in debt and barely floating. On the contrary, a source has reported that they had even been looking for iva help in the UK because executives from Moorcroft debt recovery companies were in pursuit.

If Eron succeeded in erecting a facility, they will post the projected income rather than the actual income of that facility. The result was a 63 billion dollars debt tied in assets which is one of the largest corporate bankruptcy. 

There are men with supposedly large enterprises that sit in their penthouse offices. If care is not taken, bankruptcy will creep in on them because they don’t take their time to find out whether any published money is real or not.

To make sure something like this doesn’t happen in your company, ensure you use a reputable audit firm to help do a proper and detailed account of your business. You can also get some accounting skills to have the basic knowledge.

#12. Incompetence and over expansion

This may be synonymous with bad leadership. However, incompetence might be on the side of everybody in the business which can also lead to a lack of productivity.

There are times when businesses experience the kind of incompetence only seen in African government institutions and it may become a problem for them.

Just like complacency, an expansion at the wrong time can be dangerous to the business. Expanding when you shouldn’t, puts a strain on your business.

#13. External factors

In a few cases, when a business crumbles, it is not due to incompetence or lack of funding. Sometimes, external factors might be the culprit.

The business market is a very unpredictable environment and small changes like a change in the government policy or what you might presume as small changes (competition) might affect your business adversely.

Read 20 businesses you can start with 10,000 naira or less in Nigeria

Real examples of failed businesses

1. gowell supermarket.

Gowell was a supermarket about two blocks from my old house in Lagos State, Nigeria. The supermarket was established by a couple who perhaps decided that running a supermarket was a profitable venture, and were keen to exploit the opportunity. The supermarket was large; one of the biggest in that area at that time.  

However, this couple was fully employed pharmacists who barely had time for their children let alone run a business. My sister was a regular babysitter for their kids when she concluded her junior WAEC examination.

Due to their busy time schedule, this couple handed the daily operations and management of Gowell to a church member and presumed friend. The business seemed to be doing well in the first six months. However, all hell broke loose by the last quarter of the year. My parents were close to this couple who were already laying serious complaints.

According to them, they were getting very little returns from their manager and goods were always missing from shelves. When queried, the manager usually blamed it on staff members and shoplifters.

My parents were shocked to hear that they were finding it difficult to pay their shop rent of just two million naira. Given the kind of crowd we see every day in that supermarket, one would think this couple was already on their way to success . My father, being an experienced person, was quick to point out that they made a terrible mistake by handing the care of such a large business  to a non-investor.

If you want to do something or you want to start a project, make sure you establish top-notch management especially at its early stage.

Compaq used to be one of the major suppliers of PC in the past bus they experienced business failure because they failed to predict the market shift and were unable to keep up.

Competition soon became tense and the company was bought for about 24.5 billion dollars by Hewlett-Packard.

3. A&P Construction

A&P was a construction firm that collapsed before it even started. The firm was established by two inexperienced fresh graduates of civil engineering and architecture. I was opportune to meet one of them during a seminar.  

These men were very skilled, nice and very polite. They started the company with what I would call a very faulty business plan.

First of all, they decided it would be the best idea to go for the big jobs rather than building their foundation from the underground. Trust the bigger construction companies , they had the reputation and could easily get jobs. It was not long before A&P couldn’t maintain running costs and the small business collapsed. 

4. Blockbuster

In 2004, blockbuster employed over 80,000 people worldwide with over 9,000 rental shops. Even though the company was at its peak, I think it was poor foresight and a terrible strategy that led to a decision like that.

In short, blockbuster filed for bankruptcy in 2010 due to a debt of over eight hundred and fifty million dollars. It did not help that a small struggling company called Netflix posed a very serious competition. It was just accepted that blockbuster paved the way for other movie streaming sites like Netflix.

5. Tommy Clothings

Tommy Clothings was a really popular clothing store in Lagos at a time. They made customised wear and even styled some celebrities. I remember my sister bought shoes from them around 2012. Well, Tommy Clothings was started by a young man called Tomiwa Akintola. He was a very talented tailor and could do things I had never seen any other tailor do before.

Tommy decided to expand his business and manage a clothing store where he sold his own designs, and other brands as well. The only problem was that Tomiwa, although a good tailor, was a terrible businessman. He found it very difficult to separate business from friendship.

His friends will troop in and take things on credit. His stock soon started to decrease until there was nothing more to sell. He kept following up on debtors and couldn’t have enough funds to continue his business.

6. Woolworths

Woolworth, a candy company that folded up, rendered more than 27,000 people jobless. Most experts believe that it was poor financial management that brought down one of the biggest companies down.

It started out with a few stores closing down in the last half of 2009 and finally, in 2015, the company failed.

Read Mobile App VS mobile website. Which one is better for your business?

7. Yu-mom Kitchen

Yu-mom kitchen used to be a very popular eatery in my area. They were, however, still very young in business when the manager decided another branch was a good idea. The new branch was a serious strain and soon they used profits from the main branch to keep the other running.

This whole thing continued for some time until they couldn’t keep up with the expenses. They had to shut them down. If the second one was built from scratch and made to earn its own profit, that might not have been the case.

The truth is that managing more than one place might seem exciting, but it is not usually easy unless you have more than enough funds to run both conveniently. Alternatively, you should give as much strength as possible to your current office instead.

8. RetireKing

RetireKing used to be a cooperative society that ran across different secondary schools in Nigeria. At first, they were doing so well that other institutions wanted to be a part of it. RetireKing would actually give you a product and take the money in bits from your account with the agreed interest.

However, a combination of corruption, bad leadership and incompetence brought down RetireKing before they finally experienced business failure in 1992.

Read: Benefits of social media for your business

9. Mr Biggs

Many Nigerians know about Mr Biggs, how popular they were and how quickly they fell in the face of competition. Mr Biggs used to be the go-to place for take-outs, family outings or even a business meeting.

However, they failed to make the necessary adjustments when new competition arrived. Other fast-food restaurants like Chicken republic and Domino’s Pizza began to outshine their predecessor and soon Mr Biggs shut down.

One tip I strongly think can prevent business failure and heartaches as much as possible is commitment. You must be committed to the early stage of your business to actually grow it. When you’re committed, you would have scaled through 70% of these problems.

Only commitment allows you to quickly adjust properly to industry changes. Knowing when to expand your business, when to sit tight and when to manage what you’ve got is key to your business success. Remember a bird at hand is worth more than two in the bush.

I hope this helps!

Share with love!

Post Author: Chibuike Nwogbo

2 replies to “13 types of business failure with 9 real-life examples”.

This is a valid article. Thanks

You’re welcome, Charles.

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Top 10 Business Plan Mistakes When it comes to creating a business plan that attracts investors, these tips will help you get it right the first time.

Every business should have a business plan. Unfortunately, despite the fact that many of the underlying businesses are viable, the vast majority of plans are hardly worth the paper they're printed on. Most "bad" business plans share one or more of the following problems:

1. The plan is poorly written. Spelling, punctuation, grammar and style are all important when it comes to getting your business plan down on paper. Although investors don't expect to be investing in a company run by English majors, they are looking for clues about the underlying business and its leaders when they're perusing a plan. When they see one with spelling, punctuation and grammar errors, they immediately wonder what else is wrong with the business. But since there's no shortage of people looking for capital, they don't wonder for long--they just move on to the next plan.

Before you show your plan to a single investor or banker, go through every line of the plan with a fine-tooth comb. Run your spell check--which should catch spelling and punctuation errors, and have someone you know with strong "English teacher" skills review it for grammar problems.

Style is subtler, but it's equally important. Different entrepreneurs write in different styles. If your style is "confident," "crisp," "clean," "authoritative" or "formal," you'll rarely have problems. If, however, your style is "arrogant," "sloppy," "folksy," "turgid" or "smarmy," you may turn off potential investors, although it's a fact that different styles appeal to different investors. No matter what style you choose for your business plan, be sure it's consistent throughout the plan, and that it fits your intended audience and your business. For instance, I once met a conservative Midwest banker who funded an Indian-Japanese fusion restaurant partly because the plan was--like the restaurant concept--upbeat, trendy and unconventional.

2. The plan presentation is sloppy. Once your writing's perfect, the presentation has to match. Nothing peeves investors more than inconsistent margins, missing page numbers, charts without labels or with incorrect units, tables without headings, technical terminology without definitions or a missing table of contents. Have someone else proofread your plan before you show it to an investor, banker or venture capitalist. Remember that while you'll undoubtedly spend months working on your plan, most investors won't give it more than 10 minutes before they make an initial decision about it. So if they start paging through your plan and can't find the section on "Management," they may decide to move on to the next, more organized plan in the stack.

3. The plan is incomplete. Every business has customers, products and services, operations, marketing and sales, a management team, and competitors. At an absolute minimum, your plan must cover all these areas. A complete plan should also include a discussion of the industry, particularly industry trends, such as if the market is growing or shrinking. Finally, your plan should include detailed financial projections--monthly cash flow and income statements, as well as annual balance sheets--going out at least three years.

4. The plan is too vague. A business plan is not a novel, a poem or a cryptogram. If a reasonably intelligent person with a high school education can't understand your plan, then you need to rewrite it. If you're trying to keep the information vague because your business involves highly confidential material, processes or technologies, then show people your executive summary first (which should never contain any proprietary information). Then, if they're interested in learning more about the business, have them sign noncompete and nondisclosure agreements before showing them the entire plan. [Be forewarned, however: Many venture capitalists and investors will not sign these agreements since they want to minimize their legal fees and have no interest in competing with you in any case.]

5. The plan is too detailed. Do not get bogged down in technical details! This is especially common with technology-based startups. Keep the technical details to a minimum in the main plan--if you want to include them, do so elsewhere, say, in an appendix. One way to do this is to break your plan into three parts: a two- to three-page executive summary, a 10- to 20-page business plan and an appendix that includes as many pages as needed to make it clear that you know what you're doing. This way, anyone reading the plan can get the amount of detail he or she wants.

6. The plan makes unfounded or unrealistic assumptions. By their very nature, business plans are full of assumptions. The most important assumption, of course, is that your business will succeed! The best business plans highlight critical assumptions and provide some sort of rationalization for them. The worst business plans bury assumptions throughout the plan so no one can tell where the assumptions end and the facts begin. Market size, acceptable pricing, customer purchasing behavior, time to commercialization--these all involve assumptions. Wherever possible, make sure you check your assumptions against benchmarks from the same industry, a similar industry or some other acceptable standard. Tie your assumptions to facts.

A simple example of this would be the real estate section of your plan. Every company eventually needs some sort of real estate, whether it's office space, industrial space or retail space. You should research the locations and costs for real estate in your area, and make a careful estimate of how much space you'll actually need before presenting your plan to any investors or lenders.

7. The plan includes inadequate research. Just as it's important to tie your assumptions to facts, it's equally important to make sure your facts are, well, facts. Learn everything you can about your business and your industry--customer purchasing habits, motivations and fears; competitor positioning, size and market share; and overall market trends. You don't want to get bogged down by the facts, but you should have some numbers, charts and statistics to back up any assumptions or projections you make. Well-prepared investors will check your numbers against industry data or third party studies--if your numbers don't jibe with their numbers, your plan probably won't get funded.

8. You claim there's no risk involved in your new venture. Any sensible investor understands there's really no such thing as a "no risk" business. There are always risks. You must understand them before presenting your plan to investors or lenders. Since a business plan is more of a marketing tool than anything else, I'd recommend minimizing the discussion of risks in your plan. If you do mention any risks, be sure to emphasize how you'll minimize or mitigate them. And be well prepared for questions about risks in later discussions with investors.

9. You claim you have no competition. It's absolutely amazing how many potential business owners include this statement in their business plans: "We have no competition."

If that's what you think, you couldn't be further from the truth. Every successful business has competitors, both direct and indirect. You should plan for stiff competition from the beginning. If you can't find any direct competitors today, try to imagine how the marketplace might look once you're successful. Identify ways you can compete, and accentuate your competitive advantages in the business plan.

10. The business plan is really no plan at all. A good business plan presents an overview of the business--now, in the short term, and in the long term. However, it doesn't just describe what the business looks like at each of those stages; it also describes how you'll get from one stage to the next. In other words, the plan provides a "roadmap" for the business, a roadmap that should be as specific as possible. It should contain definite milestones--major targets that have real meaning for your business. For instance, reasonable milestones might be "signing the 100th client" or "producing 10,000 units of product." The business plan should also outline all the major steps you need to complete to reach each milestone.

Smoothing Out the Rough Spots Once you know what mistakes not to make, there are still a few steps you need to take to make your business plan "bulletproof." Be sure you . . .

• Think it through. You might have a great idea, but have you carefully mapped out all the steps you'll need to take to make the business a reality? Think about building your management team, hiring salespeople, setting up operations, getting your first customer, protecting yourself from lawsuits, outmaneuvering your competition, and so on. Think about cash flow and what measures you can take to minimize your expenses and maximize your revenue.
• Do your research. Investigate everything you can about your proposed business before you start writing your business plan--and long before you start the business. You'll also need to continue your research while you write the business plan, since inevitably, things will change as you uncover critical information. And while you're researching, be sure to consult multiple sources since many times the experts will disagree.
• Research your potential customers and competitors. Is your product or service something people really want or need, or is it just "cool"? Study your market. Is it growing or shrinking? Could some sort of disruptive technology or regulatory change alter the market in fundamental ways? Why do you think people will buy your product or service? If you don't have any customers or clients yet, you'll need to convince investors that you have something people really want or need, and more important, that they'll buy it at the price you expect.
• Get feedback. Obtain as much feedback as you can from trusted friends, colleagues, nonprofit organizations, and potential investors or lenders. You'll quickly find that almost everyone thinks they're an expert and they all could do a better job than you. This may be annoying, but it's just part of the feedback process. You'll know when you're done when you've heard the same questions and criticisms again and again and have a good answer to almost everything anyone can throw at you.
• Hire professional help. Find a professional you trust to help guide you through the entire process, fill in knowledge gaps (for instance, if you know marketing but not finance, you should hire a finance expert), provide additional, unbiased feedback, and package your plan in an attractive, professional format.

Writing a business plan is hard work--many people spend a year or more writing their plan. In the early, drafting stages, business plan software can be very helpful. But the hard part is developing a coherent picture of the business that makes sense, is appealing to others and provides a reasonable road map for the future. Your products, services, business model, customers, marketing and sales plan, internal operations, management team and financial projections must all tie together seamlessly. If they don't, you may not ever get your business off the ground.

Andrew Clarke is the CEO of Ground Floor Partners , a business consulting firm that helps early-stage, small and middle-market businesses grow through design and execution of sound business strategies.

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17 Key Business Plan Mistakes to Avoid in 2024

Posted december 6, 2023 by noah parsons.

If you’re like most people and you’re writing a business plan for the first time, you want to make sure you get it right. Even if you follow the instructions in one of the popular business plan templates out there, you can still make mistakes. 

After having spent countless hours reading thousands of business plans and having judged hundreds of business plan competitions, I’ve assembled a list of the biggest business plan mistakes that I’ve seen.

What is the biggest mistake when preparing a business plan?

The absolute biggest business plan mistake you can make is to not plan at all.

That doesn’t mean everyone must write a detailed business plan. While you should do some planning to figure out what direction you want to take your business—your plan could be as simple as a one-page business plan, or even a pitch presentation that highlights your current strategy.

Your strategy and ideas will certainly evolve as you go, but taking a little time to figure out how your business works will pay dividends over time.

17 common business plan mistakes to avoid 

Assuming you’ve at least decided that you should do some business planning, here are the top business plan mistakes to avoid:

1. Not taking the planning process seriously

Writing a business plan just to “tick the box” and have a pile of paper to hand to a loan officer at the bank is the wrong way to approach business planning.

If you don’t take the business planning process seriously, it’s going to show that you don’t really care about your business and haven’t really thought through how your business is going to be successful. 

Instead, take the time and use the planning process to strengthen your understanding of how your business will be successful. It will improve your chances with lenders and investors and help you run a better business in the long run.

2. Not having a defined purpose for your business plan

Why are you writing a business plan?

Is it to raise money? Are you just trying to get your team on the same page as you so they understand your strategy? Or are you planning a new period of growth?

Knowing why you are writing a business plan will help you stay focused on what matters to help you achieve your goals, while not wasting time on areas of the plan that don’t matter for what you’re doing.

For example, if you’re writing an internal business plan, you can probably skip the sections that describe your team. 

3. Not writing for the right audience

When you’re putting together your business plan, make sure to consider who your readers are. This is especially important for businesses that are in the technology and medical industries .

If your audience isn’t going to understand the specialized vocabulary that you use to describe your business and what you do, they aren’t going to be able to understand your business.

On the other hand, if your audience is going to be all industry insiders, make sure to write in the language that they understand.

4. Writing a business plan that’s too long

Don’t write a book when you’re putting together your plan. Your audience doesn’t have time to spend reading countless pages about your business. Instead, focus on getting straight to the point and make your business plan as short as possible.

Start with a one-page plan to keep things concise. You can always include additional details in an appendix or in follow-up documents if your reader needs more information.

5. Not doing enough research

You don’t need to spend endless time researching, but your business plan should demonstrate that you truly understand your industry, your target market, and your competitors. If you don’t have this core knowledge, it’s going to show that you’re not prepared to launch your business.

To keep things simple, start with this four-step process to make sure you cover your bases with an initial market analysis.

6. Not defining your target market

Don’t assume your products are for “everyone.”

Even a company like Facebook that now truly does target “everyone” started out with a focus on college students. Make sure you take some time to understand your target market and who your customers really are.

Investors will want to see that you understand who you are marketing to and that you’re building your product or service for a specific market.

7. Failing to establish a sound business model

Every business needs to eventually have a way to make money. Your business plan needs to clearly explain who your customers are, what they pay you, and have financial projections that show your path to profitability.

Without a real business model , where income covers your expenses, it will be difficult to show that you have a viable path to success.

8. Failing to showcase current traction and milestones

Great business plans are more than just a collection of ideas. They also demonstrate that you have early traction — a fancy way of saying that you have some initial success.

This could come in the form of pre-orders from a Kickstarter campaign or initial contracts that you’ve signed with your first customers. Traction can be as little as expressed interest from potential customers, but the more commitment you have, the better. The companion to traction is milestones. Milestones are simply your roadmap for the future — your next steps with details of what you’re going to do and when you’re going to do it. Make sure to include your best guess at your future timeline as part of your business plan.  

9. Having unrealistic financial projections

Everyone dreams of sales that start from zero and then just skyrocket off the charts. Unfortunately, this rarely happens. So, if you have financial projections that look too good to be true, it’s worth a second look.

Investors don’t want you to be overly conservative either. You just need to have a financial forecast that’s based in reality and that you can easily explain. 

Keep in mind that when first starting out, you may not have exact numbers to work with. That’s perfectly fine. You can work with general assumptions and compare against competitive benchmarks to set a baseline for your business.

The key here is to develop reasonable projections that you and any external parties can reference and see as viable.

10. Ignoring your competitors

Not knowing who your competitors are , or pretending that you have no competition, is a common mistake. It’s easy to say that you have “no competition,” but that’s just taking the easy way out. Every business has competition, even if it’s a completely different way of solving the same problem.

For example, Henry Ford’s early competition to the automobile wasn’t other cars — it was horses.

11. Missing organizational or team information

When you’re starting a business, it’s likely that you haven’t hired everyone that you’re going to need. That’s OK. The mistake people make in their business plan is not acknowledging that there are key positions yet to be filled.

A successful plan will highlight the key roles that you plan to hire for in the future and the types of people you’ll be looking for. This is especially vital when pitching to investors to showcase that you’re already thinking ahead.

12. Inconsistent information and mistakes

This almost goes without saying, but make sure to proofread your plan before you send it out. Beyond ensuring that you use proper grammar and spelling, make sure that any numbers that you mention in your plan are the same ones that you have in your financial projections.

You don’t want to write that you’re aiming for $2 million in sales, while your sales forecast shows $3 million. 

13. Including incomplete financial information

You may have a great idea, but a business plan isn’t complete without a full financial forecast. Too many business plans neglect this area, probably because it seems like it’s the most challenging. But, if you use a good forecasting tool like LivePlan , the process is easy.

Make sure to include forecasts for Profit and Loss, Cash Flow, and Balance Sheet. You may also want to include additional detail related to your sales forecast.

For example, if you run a subscription business , you should include information about your churn rate and customer retention.

14. Adding too much information

Don’t fall into the trap of adding everything you know about your business, your industry, and your target market into your business plan. Your business plan should just cover the highlights so that it’s short enough that people will read it.

A simple and concise plan will engage your reader and could prompt follow-up requests for additional information. 

Focus on writing an engaging executive summary and push non-critical, detailed information into your appendix — or leave it out altogether and leave the details for those that ask.

Remember, your business plan is there to serve a purpose. If you’re raising money, you want to get that next meeting with your investors. If you’re sharing your strategy with your team, you want your team to actually read what you wrote.

Keep your plan short and simple to help achieve these goals.

What should not be included in a business plan?

Here are a few things to leave out of your plan:

• Full resumes of each team member. Just hit the highlights.
• Detailed technical explanations or schematics of how your product works. Put these in the appendix or just leave them out completely.
• A long history of your industry. A few sentences should be enough.
• Detailed market research. Yes, you want market research but just include the summary of your findings, not all the data.

Make sure to include:

• Executive summary.
• Financial projections.
• Market research (just a summary)
• Competition overview
• Funding needs (if you’re raising money)

15. Having no one review your plan

As with any work that you do, it’s always helpful to have a few other people take a look at your work as you go. You don’t have to please everyone and you don’t have to implement every comment, but you should listen for themes in your feedback and make adjustments as you go. 

A fresh pair of eyes will always help spot pesky typos as well as highlight areas of your plan that may not make sense. You can even explore having a plan writing expert review your plan for a more in-depth analysis.

16. Never revisiting your business plan

Business plans are never 100% accurate and things never go exactly as planned. Just like when you set out on a road trip, you have a plan to reach your final destination and an idea of how you will get there.

But, things can change as you go and you may want to adjust your route. 

Planning for your business is often the same as that road trip and your plans will change as you grow your business. Keeping your plan updated will help you set new goals for you and your team and, most importantly, set financial goals and budgets that will help your business thrive.

Incorporate your plan into regular review meetings to be sure you’re consistently revisiting it and integrating the time spent reviewing into your current workflow.

17. Not using your business plan to manage your business

Revisiting and revising your business plan is how you use your plan to manage your business. If you aren’t updating your goals and following a budget, you’re flying blind. Your plan is your ultimate tool to help you manage your business to success. You can use it to set sales goals and figure out when and how you should expand. 

You’ll use your plan to ensure that you have healthy cash flow and enough money in the bank to handle your growth. Without managing your plan, you’re left to guess and live with a level of uncertainty about where your business is headed.

How a business planning and management tool helps you avoid mistakes

Writing a business plan can seem like a daunting task. Sure, you can do it yourself with free templates and advice like you find on this website . But, doing it on your own can just slow the process down, lead to mistakes, and keep you from actually working on building your business.

Instead, consider using a planning tool, like LivePlan, which features step-by-step guidance and financial forecasting tools that propel you through the process.

LivePlan will help you include only what you need in your plan and reduce the time you spend on formatting and presenting. You’ll also get help building solid financial models that you can trust, without having to worry about getting everything right in a spreadsheet.

Finally, it will transform your plan into a management tool that will help you easily compare your forecasts to your actual results. This makes it easy to track your progress and make adjustments as you go.

So, whether you’re writing a plan to explore a new business idea, looking to raise money from investors, seeking a loan, or just trying to run your business better—a solid business plan built with LivePlan will help get you there. 

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Noah Parsons

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Why do business plans fail?

Table of Contents

Bad product ideas

Poor partnerships , a lack of detail , unrealistic financial planning , how a simple app can help improve your business plan.

Unfortunately, not every business will be a success. The failure of businesses is usually due to some issue in their business plan, and there are hundreds of different issues a business plan could have.

This article will describe some of the most common reasons a business plan might fail and how you can avoid them. We’ll look at common pitfalls such as:

• Poor partnerships
• A lack of detail
• Unrealistic financial planning

Sometimes, a business plan fails simply because it focuses on bad product ideas. A bad product idea means that the product or service your business specialises in does not sell well, and the lack of sales leads to an income problem for your business.

Business plans containing bad product ideas usually come about due to a misunderstanding of the term ‘ unique selling point ’. A unique selling point is what makes your product stand out from the products of the competition. It’s a feature that makes the product better as well as being unique. 

Many bad product ideas come from individuals that focus too much on the ‘unique’ part of the term unique selling point. While it is important to have a different product from anything else on the market, make sure you also know what your customers want from a product .

While it’s nice to have help running your business, it’s important to find the right person for the job before you write a contract for a business partnership . If you create a business plan as a partnership and your partner fails to fulfil their responsibilities, your business will struggle to succeed.

There are three things you may want to consider if you’re trying to avoid poor partnerships. The first is your partner’s skill set: look for someone with talents related to your business idea as well as talents you don’t possess. It’s helpful to have a diverse collection of skills within your business. 

Secondly, make sure your potential partner is as passionate about the business as you are. If they aren’t, you may find that you end up doing most of the work or that they leave the business as soon as things become difficult. While measuring passion and emotional investment is challenging, finding a business partner that matches your feelings regarding your business plan is vital.

Finally, create an exit strategy. While you may have found a perfect business partner, you never know what difficulties you’ll encounter in the future. So make sure you know what to do if there is an internal conflict in your company that you can’t resolve peacefully.

When you write a business plan , you need to make sure that you plan for almost anything. One of the biggest reasons business plans fail is because they don’t account for certain situations.

It’s impossible to plan for truly unexpected problems, but a detailed business plan will account for most situations by listing off your company’s weaknesses during a SWOT analysis . SWOT stands for strengths, weaknesses, opportunities, and threats, and it’s a standard part of most business plans. 

By using SWOT to list weaknesses in your business plan and potential threats to your success, you can start planning ways to deal with problems. For instance, you might identify a lack of sales as a potential threat. To account for this, you could invest in marketing or reduce your prices. If your business plan doesn’t account for these sorts of situations, it increases its chances of failure. 

Another reason for lack of detail in a business plan is low-quality research or not performing research at all. Without researching the market and industry you operate in, you’ll struggle to learn about your competitors or understand your customers’ needs. Thorough research is an essential part of avoiding business plan failure.

Financial planning is essential in business. You might not know the future of your business, but with a decent financial plan, you’ll be able to avoid most obstacles to success. If your financial plan is poorly thought-out or unrealistic, though, it might not be as valuable.

Financial plans are all about mapping out your company’s growth. If you’re too optimistic about this growth, it can cause serious problems. Unrealistic expectations can cause unprepared businesses to go bankrupt very quickly.

For example, say you expect to be making £1,000 a week in sales revenue by your second week of business. Your financial plan relies on this for you to pay rent and buy supplies. If it gets to that week and you’re only making £500, you’ll not be able to pay the bills that allow your business to operate. 

To avoid these problems, try lowering your expectations. Even if you think you have a fantastic product idea, it’s better to prepare for the worst than plan for the best and run into trouble. If you create a conservative financial plan that expects some success but accounts for things like low sales, your business plan is much less likely to fail. 

One of the biggest parts of your business plan is the financial aspect. To create a business plan that’s unlikely to fail, you’ll need to make sure you have a good understanding of accounting and a way to track how you’re spending your money.

The Countingup app offers built-in accounting software with its business account so that you can manage all your financial data in one place. 

With additional features like automatic expense categorisation, invoicing on the go, receipt capture tools, tax estimates, and cash flow insights, you can confidently keep on top of your business finances wherever you are. 

You can also share your bookkeeping with your accountant instantly without worrying about duplication errors, data lags or inaccuracies. Seamless, simple, and straightforward! 

Find out more here .

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• Counting Up on Twitter
• Counting Up on LinkedIn

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10 Common Business Plan Mistakes and How to Avoid Them

There is plenty of information available via books and seminars on how to write a good business plan. And yet, many companies, especially start-ups, make serious mistakes in business plan writing that could have been avoided with more knowledge and effort.

As a business plan contest reviewer, I see a number of typical mistakes coming up again and again. Here are 10 of the most common business plan mistakes I have come across:

1. Boring Executive Summary

Investors, bankers, and other business plan readers usually start looking at the executive summary. It should highlight the most important points of the business plan in a pithy way. The business plan should provide a convincing story on how a a highly competent team will provide products or services to precisely defined target markets based on a consistent strategy. Moreover, it should share the company’s vision on how their products or services will make the world of their customers better in a profitable way.

In reality, many executive summaries are lackluster and incomplete summaries of a business idea whose implementation remains unclear. Sometimes, it is just cut and paste of some sections from the introduction and some other parts.

Losing the busy reader already in this part could mean that investors never care to go through the whole document. They may be missing some hidden gems. However, it is the job of the business plan writer to present these gems convincingly in the executive summary.

2. Lack of Focus

Many business plans are lacking a clear focus in defining their target markets and how the envisage products and services are competitive in serving the market needs better than others. Especially for innovative start-ups there is a risk of not focusing enough on a clearly define product/service segment and target market.

The result are often business plans describing a ‘me too’ business whose reason for existence does not become clear, not to speak of electrifying potential investors or customers.

3. Superficial Definition of Target Customers

Understanding who your target customers are and how your product adds value for them is crucial. That includes a granular segmentation of target customers and how the company’s products and services will satisfy the different needs of these different customer groups.

Many business plans, however, keep the definition of target customers very general. For example, saying that your travel app is aimed for everyone who is traveling may sound great first, because this is a very large number of people. However, different groups of travelers have different needs. Without clearly defining these needs in a differentiated way, the result will either be an app with the lowest common denominator of functionality needed by most, or it may be at risk of becoming overly complex, as it tries to please everyone.

4. Overly Optimistic Evaluation of Market Size and Opportunities

Entrepreneurs need to be optimistic to start a business in the first place. However, there is fine line between being upbeat about your business prospects and presenting a distorted view of the market size which is more driven by dreams than data. It can be related to a superficial definition of the target customers. If you think, for example, that 20% of all travelers worldwide will use your app, you would need to have a lot of supporting evidence to credibly convey how you will achieve that. It is not bad for an entrepreneur to think big. However, if you, for example, overestimate the readiness of people to buy your product, you may end up with dream figures you cannot achieve.

5. Underestimating the Competition

Many start-ups are too much self-centered. Being convinced of your product or service is certainly a good attitude. However, there is risk that this could distort your view of how it matches up against products and services of competitors who have been in the market for some time. In addition, some entrepreneurs also overlook or underestimate the possibility of new entrants who could increase competitive pressure.

6. Underestimating Business Risks

Understandably, entrepreneurs focus on exploiting opportunities. Some, however, underestimate or even neglect serious business risks that could endanger the existence of the company. Ignoring the risks will not make them disappear. Instead, it will leave the company unprepared, if a risk materializes. Apart from risk caused by changing demand trends, increasing competition, or unexpected increase of production there are also political and regulatory risks to be considered. If you have, for example, an export-oriented business, you need to take into account global trends like increasing protectionism and regulatory barriers in your target markets.

7. Too Detailed Description of the Product or Service

Especially innovative technology start-ups, often led by engineers, are really excited about the technical details of their product or service. It is part of a credible story to provide enough details so the reader understands that the product or service is well designed. However, if it drifts into jargon and technical details not relevant for understanding the business impact or innovative edge of a product, then details can become a distraction or even barrier, putting off the reader.

8. Unrealistic Financial Projections

This mistake is related to false assumptions on, for example, market size, competitive pressure, and financial risks. Nobody knows the future, and projections can, thus, not be exact. However, they can be based on real data related to general market trends and past revenue and cost development.

9. Unconvincing Presentation of the Executive Team

Quite often, there are just a couple of portrait photos and CVs pasted into the business plan without explaining to the reader, why exactly this team is complementary in their competencies specifically for running the particular business presented in the plan. Investors can get very critical, if they see that important competencies in an executive team are lacking. For example, if a group of engineers without business experience is launching a start-up, there will be questions on how competence gaps in areas like financial management and marketing will be covered.

10. Lack of Review

A team working enthusiastically on a business plan is at risk of false, overly optimistic assumptions and other mistakes that can easily be overlooked, if you are immersed in the process. Thus, not having a review of the business plan by an experienced consultant or a friendly business partner who has been there can lead to mistakes with detrimental effects. A review can help find flaws in the overall business rationale, market and customer definition, or the financial projections. Even if you are not looking for external funding, not having your business plan reviewed is a serious omission.

How to Avoid Business Plan Mistakes

The simple answer would be to be aware of these mistakes and make sure not to do them. However, it is not that easy. Even if you are aware of potential mistakes, it does not automatically mean you are capable of avoiding them. It is like with people who have bad eating habits. They know all about healthy eating and are fully aware of their mistakes. And yet the still continue making these mistakes.

This is where coaching comes in. You can either try self-coaching in the executive team, which requires a high level of awareness, openness and self-distance. Or you can hire an external coach to help you discover your blind spots, become aware of unproductive habits and attitudes like, e.g., over-optimism, and change them.

I would be interested to receive comments from entrepreneurs on what mistakes they have made in business plan writing and how they fixed them.

40 Common Business Plan Mistakes to avoid when writing your Business Plan

• EntrepreneursGateway.com Team
• October 29, 2018

This article is part of the Business Planning Hub where you’ll find lots of guides and resources to help you create the perfect business plan!

Would you like to be ahead of your competitors and avoid some the most obvious business plan mistakes people make?

Then you are in the right place.

Be sure to check out the top 40 common pitfalls I’ve listed below, because they are the main reasons business plans fail or are ineffective.

Good business planning comes from experience – and, of course, from trial and error. But not necessarly your own!

By learning from other people’s mistakes, you will be sure to speed up your journey and be one step ahead of your competitors.

Ready? Let’s go.

Unrealistic Financial Projections

One of THE most common business plan mistakes people make is unrealistic financial projections . Investors or lenders expect a realistic picture of where your business currently is and where you expect it to be in the future.

How can you avoid this mistake?

• Be sure to be realistic and not overly optimistic.
• Give clear explanations of your projections.

If you don’t do this, alarm bells will ring, and all your hard work will be rejected!

Not defining who your target audience is

It’s essential that you define your specific target market , as your business isn’t going to appeal to everyone.

Make sure that you present your assumptions and outline how you will target and communicate with your audience.

Unless you can talk to them, they’re not going to listen and your business won’t take off!

The business plan is poorly written

Punctuation, spelling, grammar, style…

They are all very important when it comes to putting a business plan down on paper.

If investors see a plan full of spelling, punctuation, and grammar errors , they will immediately wonder what else might be wrong with your business !

As there is no shortage of people looking for capital, investors won’t wonder for long…

They’ll just move right on to the next plan.

Make sure your business plan is as well written as it could be, then hire a freelancer to go through it and fix any mistakes you might have missed.

Sloppy plan presentation

Once the written part of your business plan is impecable, you need to make sure that the presentation matches .

Investors do not like to see inconsistent margins, charts without labels, tables without headings, or missing page numbers.

A bad business plan could result in an investor moving on to a much more organized plan in the stack!

An incomplete plan

All business plans need to have details on:

• Products and Services,
• Marketing and Sales,
• Operations,
• Competitors,
• Management team.

All plans, at an absolute minimum, must cover all these areas .

A good business plan template should include discussions about the industry, trends and whether the market is shrinking or growing. 

Finally, your plan should also have detailed financial projections; including income statements, monthly cash flows, and yearly balance sheets.

The business plan is too vague

Always remember:

A business plan isn’t a poem, a novel, or a cryptogram!

If a reasonably educated person has difficulty understanding your plan, then it needs to be re-written.

If, on the other hand, you feel you need to be vague because your plan involves confidential material, technologies or processes, then simply present the executive summary first. 

After that, if they are interested in finding out more, you can have them sign a non-disclosure and non-compete agreement before showing them the rest of the plan.

The business plan is too complicated

One of the pitfalls of writing a business plan is making it too technical. This is usually one of the main problems for technology-based start-ups.

You should always keep technical details to a minimum within the main plan.

If you need to include them, you should do so in the appendix. 

A good idea is to break your business plan into three parts . For example:

• a 2-3-page Executive Summary,
• a 10-20-page Business Plan,
• an Appendix, which can include as many pages as required.

The business plan makes unrealistic or unfounded assumptions

Business plans are full of assumptions – the most important being that the business will succeed.

However, keep in mind the following:

• The most successful business plans both highlight the critical assumptions and provide some kind of rationalization for them.
• The bad business plans , on the other hand, just bury assumptions within the plan, leaving investors to wonder where the assumptions actually end and the facts begin.

Many aspects of a business plan to involve assumptions – such as acceptable pricing, market size, and customer purchasing habits. That’s unavoidable. Just make sure that any assumption is made from benchmarks within the same industry, and then tie in your assumptions with facts. 

The plan includes inadequate research

It is important to support your assumptions with facts, but it is even more important to ensure that your facts are actually facts .

When writing a business plan, you need to identify and analyze various sources of information.

Find out all you can about the industry that your business focuses on, including customer purchasing habits and overall market trends. 

Keep in mind that investors will usually check your numbers against industry data , so that any mismatches could be the difference between receving funding or not!

Claims that there are no risks involved within the new venture

Sensible investors understand and know that there isn’t such a thing as a ‘no risk’ businesses.

Naturally, there are always risks.

However, it is important that you understand the risks before presenting the plan. Should any of them be mentioned, you need to be able to emphasize how they will be minimized .

You claim that you have no competition

It is unbelievable how many potential business owners use this statement within their business plans. And this one sentence couldn’t be further from the truth.

All successful businesses have competition, be it direct or indirect.

You should plan for this from the outset.

• Identify and analyze how you can accentuate your competitive advantages.
• Show within you business plan how you can use them to compete.

The business plan isn’t a business plan

Good business plans present an overview of the entire business. This is, surprisingly, something most people get wrong, so… how do you avoid this?

Well, it’s not difficult.

Make sure to:

• Include the present, the short term, and the long term.
• Have a description of how the different stages will be reached – almost like a roadmap.
• Include milestones , together with the major steps that will be taken to complete each one.

You are sorted.

Weak market research

Before asking for investment (or investing any money in the business plan yourself!), ensure that all research is airtight . 

Don’t settle for a quick Google search!

Read books about your industry, download relevant white papers…

This will prove that you have done your research and are knowledgeable within your area – which will make all the difference when pitching to investors.

Not taking general expenses into consideration

One of the pitfalls of business planning is not considering taxes, insurance, utility bills, and other everyday expenses . 

It is all too easy to omit one or more of these bills – and this can cause huge financial miscalculations.

Have you added all your expenses to your business plan?

Limited understanding of cash flow

The bane of most businesses – especially small ones – is cash flow.

It is all too common to see a viable business go under as a result of a temporary cash flow problem; that is to say, a situaion where there are enough customers, but not enough accessible money to pay the bills.

Ensure that your business plan includes the possibility of unexpected expenses, late payments, or short-term losses , as well as a buffer to help if times get difficult.

You will find this extremely helpful when something you weren’t expecting to go wrong actually goes wrong (which, believe me, happens!).

No objectives

Investors need to be given a reason to invest. From the onset, be very clear about the time span necessary for the investor to get their money back, PLUS how much more they can expect to amass.

It is still advisable to include an objective within the business plan, even if an investment isn’t being sought. Perhaps a franchise is in the pipeline, or maybe an expansion within the business…

Basically, success is easier to measure when you know what it is you want out of your business.

Failing to show ‘real’ demand

Just because you think a product is amazing, it doesn’t necessarily mean that there is a market for it.

It is important to see what sort of demand there is for the product. 

What does this mean?

Basically, before pumping lots of money into the idea, it is advisable to test the product on a smaller scale – especially if the business start-up costs are high.

This will ensure you are on the right track and won’t incur evitable losses.

Lack of Experience

Ensure that the individuals running the business have the correct skill set.

If you don’t have the necessary skills yourself, hire someone who does!

This is definitely one of the most common pitfalls that can be avoided when preparing a business plan.

Saving on this point now won’t do you any favour in the long run.

Not updating the plan

It may take a few years for the business to get off the ground, but this doesn’t mean that the same business plan should be relied on every year. 

Consumer markets are ever-changing.

Realistically, your business plan should be re-visited on average every six months , which also allows for new market research to be carried out.

Failure to estimate realistic startup costs

When writing a business plan, a common mistake is to underestimate the costs of running and launching the business. 

It is better to over-estimate costs rather than underestimating them , as this will ensure that the business is adequately covered, especially over the first couple of months.

It is also recommended to:

• Separate optional costs from essential ones;
• List fixed costs as opposed to those that are variable. 

Plans that try to be all things to all people

In your journey to secure an investor, you will no doubt meet different types of people, so don’t make the mistake of using one plan for different investors .

Instead, prior to pitching, make sure to tailor and target your business plan to a specific investor, so that they’ll feel like you are both speaking the same language.

The golden rule is to keep the essential parts of the plan as they are, but to review the industry jargon.  

Not detailing key team members and their responsibilities

The management team section ALWAYS needs to include the following:

• Who the team members are,
• A short biography and outline of their responsibilities.

These need to be tailored around different areas of the company. 

Start-up companies should focus on their management’s success in growing and launching ventures, while mature companies should holm in on how their team members successfully work within the framework.

Asking Investors to Sign a Non-Disclosure Agreement

Generally speaking, this is something that most investors will not do – simply because, typically, a business’s concept/strategy is not confidential.

If the strategy/concept has to remain confidential, then this could imply that no barriers apply to competitive entry; and if competitors are easily able to copy the concept, then this would indicate that the model is most likely not sustainable. 

The financials aren’t pro forma

A good business plan is fundamentally a map of the future – therefore, it needs to be forward thinking.

Pro forma financial statements are similar to forecasts and allow room for creative projections. They can be utilized to show investors how the business should and can perform, but you must also be prepared to back up any projections .

These statements should be used to provide an overall vision of the dynamic of the business as well as what it can expect to achieve.

Assume investors will read the business plan from back to front… or won’t read it at all

Even if investors don’t read your business plan, you still need to produce one. 

A well-researched and constructed business plan is an essential component of any successful business, whether it is seeking investment or not.

Make sure it’s artight and that you know it by heart.

Writing the business plan in one big push

You could think of a business plan as made of blocks and comprised of a set of connected modules.

It is probably best, to begin with, to work on the parts that you find the most interesting or that will provide the most benefit.

That is to say: Don’t try to write a complete business plan in one go.

Break it down into manageable steps and pieces.

Inadequate test procedures and testing

Another common pitfall which must be avoided when preparing a business plan is not carrying out the correct and necessary test procedures .

This could be as simple researching the need for the specific product, or physically testing whether the product actually works or not.

Hiding Weaknesses

Don’t highlight your weeknesses but also don’t hide them.

This is important.

All businesses have weaknesses, and by highlighting or hiding them too much, you risk putting off an investor.

The way forward is to include a strategy, which outlines how any problems will be addressed. In this way they’ll see you are aware of your weeknesses and ready to face them.

Not Knowing the Distribution Channels

A secure plan outlining how the services will be provided or the products distributed is an absolute must .

All possible channels must be included.

If not, it may appear to the investor that the list has merely come off the top of your head.  

It is vital that you articulate the strategy as to how the service or product will reach the client.

Being Inconsistent

Quoting conflicting statistics, highlighting different target markets or even including conflicting strategies within a plan can set off alarm bells. 

These types of errors could result in an investor challenging exactly how well you know your business and market.

Often, different sections of a business plan are written by different people, then pasted into one document – which is the perfect recipe for inconsistency.

Make sure to carefully review each section of the plan to avoid this mistake.

Of course, you will no doubt believe that your business idea is the best thing ever – which is great.

However, these claims need to be backed up .

Over-hyping a business will not substantiate your service or product.

What you need to do instead is to wow them with the business idea supported by an outstanding financial and research plan .

That’s what an investor wants to see.

Not Anticipating Lenders' or Investors' Requirements

More often than not, business plans barely touch (or miss out completely) the meat and veg of financial planning… and don’t even consider the needs of those supplying the cash!

Here are a few things to keep in mind.

If you are dealing with investors , you must:

• Define the primary objectives within a defined exit strategy;
• Put in place appropriate percentage ownership and prices. 

If you are dealing with lenders , consideration must be:

• Why the funds are required,
• How much is needed,
• Repayment conditions.

Writing the Executive Summary first, not last

The majority of people will read the Executive Summary first and then, based on this, will formulate their initial impressions.

These first pages are critically important and must be strong and well thought out . 

Quite often business people will write the summary first, then support it with a plan. However, you should do exactly the opposite.

Because the executive summary provides you with the opportunity to tie everything together , allowing you to check your assumptions and to ensure that the story matches the data within the plan.

By writing the executive summary first, you are not using the process of business planning to learn, and this will show in your summary.

So don’t jump to the solution, but make use of the process!

In this way you’ll be able to produce a well thought out Executive Summary to wow your investors.

Inability or defensiveness to adapt to Feedback

Always show your business plan to your lawyer and make sure they confirm that it meets all the necessary regulatory requirements. If it doesn’t, you need to revise it.

Most people are unable to listen to advice from experienced advisors – which is a recipe for disaster .

Of course, not all feedback is correct, but a key element of business failure is the inability to adapt to fair criticism.

Hiding the plan from your team

A business plan is a management tool.

Obviously, care needs to be taken when sharing with team members (such as salaries, etc).  However, don’t be afraid to share measurements and goals.

Use the plan to build up team spirit and you’ll soon see the benefits of this approach.

Confusing cash with profits

There is a big difference between the cash and profits. Your financial situation can be crippled by waiting for customers to pay, whereas the profits won’t be affected.

Basically, profits are an accounting concept, whereas cash is the actual money in the bank.

Always keep this in mind!

After all, profits don’t pay bills – money does!

Diluting your priorities

A plan with focus and power is one that stresses between 3 and 4 priorities .

These are easy for people to understand.

Any plan that lists, for example, 20 priorities… well, quite honestly doesn’t have any!

Fudging the details for the first year

You need to take all details into account, not just cash flow . These include the financials, responsibilities, milestones, and deadlines.

Of course, cash flow is really important; but details regarding setting dates, assigning tasks to people, and outlining what is supposed to be done and by whom are just as important!

After all, a business plan wouldn’t be a business plan without them.

Sweating the details for the future years

This isn’t about accounting, but about planning.

Monthly details are important at the beginning, but as time moves on, they become less important. After all, how can a monthly cash flow be predicted three years from now with uncertain sales forecasts?

Basically, monthly details cannot be planned beyond the first year . Nobody expects them, and nobody will believe them if you do; so make sure to focus on what’s really important.  

Overvaluing the business idea

Here’s something very important to keep in mind:

The value of an idea is the business that’s built on it, not the idea itself. 

For an idea to become a business, products need to be built, ordered and shipped; phone calls need to be answered; employees need to be coming to work every day; and customers need to be paying their bills. That’s it. 

Write a business plan that shows that you are creating a business around a great idea – or simply don’t bother.

A great business is not made by only an idea.  

Now, over to you...

Now I’d love to hear from you:

Are you still unsure of which business plan you need?

Maybe you have written a business plan and would like us to review it?

Leave any comments below and I will be sure to answer as soon as they come in!

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5 Examples of A Killer Business Plan

We shared with you how to write a business plan . We also talked about how important it is for every business, especially if you’re looking for funding or potential investors. Business plans are considered the roadmap of any business, so it’s just natural that you need it to find an investor or grow your business into a profitable venture.

What Makes A Killer Business Plan?

Is there some secret sauce to a killer business plan? Not really . But what makes a good, a killer business plan that will make investors fund your business or give you the ability to quit your day job? It’s not that really complicated, however, your business plan must have these basic elements: executive summary, business description, market analysis, competitive analysis, organization/management, product, marketing/sales plan, and financial projection ( read more about the basics here ).  

Samples of Killer Business Plan

Writing a business plan is no easy task, it takes a lot of time, effort and most importantly, research. On the other hand, not all business plans are created equal. There are bad ones (you don’t want that, trust me – see our do’s and don’ts ) but, there are also good ones that just really stand out, here are some samples of business plans and what you can learn from them:  

• I’ll Be Denim

A sample from Shopify, I’ll Be Denim  –  a fictional organic denim and apparel company has all the elements a business plan needs. It’s concise while still having all the relevant and vital information. See how they classified their target market:

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• The Beginners Guide On How To Write A Business Plan
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• Nivea For Men

In this marketing plan for Nivea For Men , they added visuals to illustrate their data and also to prevent it from being too text heavy. Use of visual presentation is an advantage for a business plan. It makes the data much easier to analyze and to look at.

• Airport Cafe

Let’s have a look at the business plan of Airport Cafe . In their marketing/competitor analysis, they provided a background and presented their data. Notice where they obtained the figures in their market analysis. They collected the data through the Airport Authorities which can be considered as a good source since they have an overview and information about the people in the airport.

• Fresin Fries

In their competitive comparison , they listed out all their advantages against their competitors. They also provided a table which gave an overview of what their competitors are offering against their product/services. This a good practice. A table can easily help identify the data instead of reading long texts which can be quite tedious to investors.

• Dr. Steven Gedeon

This isn’t exactly a sample of a business plan, however,  Dr. Steven Gedeon, PhD, MBA at Ryerson University’s Ted Rogers School of Management talked about what a good business plan looks like. As an entrepreneur, Dr. Gedeon has been on both sides of the entrepreneurship game. In this video he shared some great insights about business plan writing.  

  Now that we’ve seen a few good business plan, take what’s good and apply it to your own plan. As Tim Berry , a business planner and angel investor said, “ Although you definitely need a business plan to find investors, your plan alone–no matter how good it is–isn’t enough to attract investors. (It’s a start.) The investor’s decision still depends on a lot of other factors. By itself, your plan is like an automobile engine–the car won’t go anywhere without it. But the engine alone isn’t enough to make the car go, and you need to recognize this from the beginnin g.”  

Looking for more help to create your first business plan? Check out my book Day 1: A Practical Guide to Launching Your New Business now!

Business Plan Do’s and Donts

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How to Write a Business Plan (Plus Examples & Templates)

• 3 years ago

Have you ever wondered how to write a business plan step by step? Mike Andes, told us: 

This guide will help you write a business plan to impress investors.

Throughout this process, we’ll get information from Mike Andes, who started Augusta Lawn Care Services when he was 12 and turned it into a franchise with over 90 locations. He has gone on to help others learn how to write business plans and start businesses.  He knows a thing or two about writing  business plans!

We’ll start by discussing the definition of a business plan. Then we’ll discuss how to come up with the idea, how to do the market research, and then the important elements in the business plan format. Keep reading to start your journey!

What Is a Business Plan?

A business plan is simply a road map of what you are trying to achieve with your business and how you will go about achieving it. It should cover all elements of your business including: 

• Finding customers
• Plans for developing a team
•  Competition
• Legal structures
• Key milestones you are pursuing

If you aren’t quite ready to create a business plan, consider starting by reading our business startup guide .

Get a Business Idea

Before you can write a business plan, you have to have a business idea. You may see a problem that needs to be solved and have an idea how to solve it, or you might start by evaluating your interests and skills. 

Mike told us, “The three things I suggest asking yourself when thinking about starting a business are:

• What am I good at?
• What would I enjoy doing?
• What can I get paid for?”

If all three of these questions don’t lead to at least one common answer, it will probably be a much harder road to success. Either there is not much market for it, you won’t be good at it, or you won’t enjoy doing it. 

As Mike told us, “There’s enough stress starting and running a business that if you don’t like it or aren’t good at it, it’s hard to succeed.”

If you’d like to hear more about Mike’s approach to starting a business, check out our YouTube video

Conduct Market Analysis

Market analysis is focused on establishing if there is a target market for your products and services, how large the target market is, and identifying the demographics of people or businesses that would be interested in the product or service. The goal here is to establish how much money your business concept can make.

Product and Service Demand

A search engine is your best friend when trying to figure out if there is demand for your products and services. Personally, I love using presearch.org because it lets you directly search on a ton of different platforms including Google, Youtube, Twitter, and more. Check out the screenshot for the full list of search options.

With quick web searches, you can find out how many competitors you have, look through their reviews, and see if there are common complaints about the competitors. Bad reviews are a great place to find opportunities to offer better products or services. 

If there are no similar products or services, you may have stumbled upon something new, or there may just be no demand for it. To find out, go talk to your most honest friend about the idea and see what they think. If they tell you it’s dumb or stare at you vacantly, there’s probably no market for it.

You can also conduct a survey through social media to get public opinion on your idea. Using Facebook Business Manager , you could get a feel for who would be interested in your product or service.

 I ran a quick test of how many people between 18-65  you could reach in the U.S. during a week. It returned an estimated 700-2,000 for the total number of leads, which is enough to do a fairly accurate statistical analysis.

Identify Demographics of Target Market

Depending on what type of business you want to run, your target market will be different. The narrower the demographic, the fewer potential customers you’ll have. If you did a survey, you’ll be able to use that data to help define your target audience. Some considerations you’ll want to consider are:

• Other Interests
• Marital Status
• Do they have kids?

Once you have this information, it can help you narrow down your options for location and help define your marketing further. One resource that Mike recommended using is the Census Bureau’s Quick Facts Map . He told us,  

“It helps you quickly evaluate what the best areas are for your business to be located.”

How to Write a Business Plan

Now that you’ve developed your idea a little and established there is a market for it, you can begin writing a business plan. Getting started is easier with the business plan template we created for you to download. I strongly recommend using it as it is updated to make it easier to create an action plan. 

Each of the following should be a section of your business plan:

• Business Plan Cover Page
• Table of Contents
• Executive Summary
• Company Description
• Description of Products and Services

SWOT Analysis

• Competitor Data
• Competitive Analysis
• Marketing Expenses Strategy 

Pricing Strategy

• Distribution Channel Assessment
• Operational Plan
• Management and Organizational Strategy
• Financial Statements and/or Financial Projections

We’ll look into each of these. Don’t forget to download our free business plan template (mentioned just above) so you can follow along as we go. 

How to Write a Business Plan Step 1. Create a Cover Page

The first thing investors will see is the cover page for your business plan. Make sure it looks professional. A great cover page shows that you think about first impressions.

A good business plan should have the following elements on a cover page:

• Professionally designed logo
• Company name
• Mission or Vision Statement
• Contact Info

Basically, think of a cover page for your business plan like a giant business card. It is meant to capture people’s attention but be quickly processed.

How to Write a Business Plan Step 2. Create a Table of Contents

Most people are busy enough that they don’t have a lot of time. Providing a table of contents makes it easy for them to find the pages of your plan that are meaningful to them.

A table of contents will be immediately after the cover page, but you can include it after the executive summary. Including the table of contents immediately after the executive summary will help investors know what section of your business plan they want to review more thoroughly.

Check out Canva’s article about creating a  table of contents . It has a ton of great information about creating easy access to each section of your business plan. Just remember that you’ll want to use different strategies for digital and hard copy business plans.

How to Write a Business Plan Step 3. Write an Executive Summary

An executive summary is where your business plan should catch the readers interest.  It doesn’t need to be long, but should be quick and easy to read.

Mike told us,

How long should an executive summary bein an informal business plan?

For casual use, an executive summary should be similar to an elevator pitch, no more than 150-160 words, just enough to get them interested and wanting more. Indeed has a great article on elevator pitches .  This can also be used for the content of emails to get readers’ attention.

It consists of three basic parts:

• An introduction to you and your business.
• What your business is about.
• A call to action

Example of an informal executive summary 

One of the best elevator pitches I’ve used is:

So far that pitch has achieved a 100% success rate in getting partnerships for the business.

What should I include in an executive summary for investors?

Investors are going to need a more detailed executive summary if you want to secure financing or sell equity. The executive summary should be a brief overview of your entire business plan and include:

• Introduction of yourself and company.
• An origin story (Recognition of a problem and how you came to solution)
• An introduction to your products or services.
• Your unique value proposition. Make sure to include intellectual property.
• Where you are in the business life cycle
• Request and why you need it.

Successful business plan examples

The owner of Urbanity told us he spent 2 months writing a 75-page business plan and received a $250,000 loan from the bank when he was 23. Make your business plan as detailed as possible when looking for financing. We’ve provided a template to help you prepare the portions of a business plan that banks expect.

Here’s the interview with the owner of Urbanity:

When to write an executive summary?

Even though the summary is near the beginning of a business plan, you should write it after you complete the rest of a business plan. You can’t talk about revenue, profits, and expected expenditures if you haven’t done the market research and created a financial plan.

What mistakes do people make when writing an executive summary?

Business owners commonly go into too much detail about the following items in an executive summary:

• Marketing and sales processes
• Financial statements
• Organizational structure
• Market analysis

These are things that people will want to know later, but they don’t hook the reader. They won’t spark interest in your small business, but they’ll close the deal.

How to Write a Business Plan Step 4. Company Description

Every business plan should include a company description. A great business plan will include the following elements while describing the company:

• Mission statement
• Philosophy and vision
• Company goals

Target market

• Legal structure

Let’s take a look at what each section includes in a good business plan.

Mission Statement

A mission statement is a brief explanation of why you started the company and what the company’s main focus is. It should be no more than one or two sentences. Check out HubSpot’s article 27 Inspiring Mission Statement for a great read on informative and inspiring mission and vision statements. 

Company Philosophy and Vision

The company philosophy is what drives your company. You’ll normally hear them called core values.  These are the building blocks that make your company different. You want to communicate your values to customers, business owners, and investors as often as possible to build a company culture, but make sure to back them up.

What makes your company different?

Each company is different. Your new business should rise above the standard company lines of honesty, integrity, fun, innovation, and community when communicating your business values. The standard answers are corporate jargon and lack authenticity. 

Examples of core values

One of my clients decided to add a core values page to their website. As a tech company they emphasized the values:

•  Prioritize communication.
•  Never stop learning.
•  Be transparent.
•  Start small and grow incrementally.

These values communicate how the owner and the rest of the company operate. They also show a value proposition and competitive advantage because they specifically focus on delivering business value from the start. These values also genuinely show what the company is about and customers recognize the sincerity. Indeed has a great blog about how to identify your core values .

What is a vision statement?

A vision statement communicate the long lasting change a business pursues. The vision helps investors and customers understand what your company is trying to accomplish. The vision statement goes beyond a mission statement to provide something meaningful to the community, customer’s lives, or even the world.

Example vision statements

The Alzheimer’s Association is a great example of a vision statement:

A world without Alzheimer’s Disease and other dementia.

It clearly tells how they want to change the world. A world without Alzheimers might be unachievable, but that means they always have room for improvement.

Business Goals

You have to measure success against goals for a business plan to be meaningful. A business plan helps guide a company similar to how your GPS provides a road map to your favorite travel destination. A goal to make as much money as possible is not inspirational and sounds greedy.

Sure, business owners want to increase their profits and improve customer service, but they need to present an overview of what they consider success. The goals should help everyone prioritize their work.

How far in advance should a business plan?

Business planning should be done at least one year in advance, but many banks and investors prefer three to five year business plans. Longer plans show investors that the management team  understands the market and knows the business is operating in a constantly shifting market. In addition, a plan helps businesses to adjust to changes because they have already considered how to handle them.

Example of great business goals

My all time-favorite long-term company goals are included in Tesla’s Master Plan, Part Deux . These goals were written in 2016 and drive the company’s decisions through 2026. They are the reason that investors are so forgiving when Elon Musk continually fails to meet his quarterly and annual goals.

If the progress aligns with the business plan investors are likely to continue to believe in the company. Just make sure the goals are reasonable or you’ll be discredited (unless you’re Elon Musk).

You did target market research before creating a business plan. Now it’s time to add it to the plan so others understand what your ideal customer looks like. As a new business owner, you may not be considered an expert in your field yet, so document everything. Make sure the references you use are from respectable sources. 

Use information from the specific lender when you are applying for lending. Most lenders provide industry research reports and using their data can strengthen the position of your business plan.

A small business plan should include a section on the external environment. Understanding the industry is crucial because we don’t plan a business in a vacuum. Make sure to research the industry trends, competitors, and forecasts. I personally prefer IBIS World for my business research. Make sure to answer questions like:

• What is the industry outlook long-term and short-term?
• How will your business take advantage of projected industry changes and trends?
• What might happen to your competitors and how will your business successfully compete?

Industry resources

Some helpful resources to help you establish more about your industry are:

• Trade Associations
• Federal Reserve
• Bureau of Labor Statistics

Legal Structure

There are five basic types of legal structures that most people will utilize:

• Sole proprietorships
• Limited Liability Companies (LLC)

Partnerships

Corporations.

• Franchises.

Each business structure has their pros and cons. An LLC is the most common legal structure due to its protection of personal assets and ease of setting up. Make sure to specify how ownership is divided and what roles each owner plays when you have more than one business owner.

You’ll have to decide which structure is best for you, but we’ve gathered information on each to make it easier.

Sole Proprietorship

A sole proprietorship is the easiest legal structure to set up but doesn’t protect the owner’s personal assets from legal issues. That means if something goes wrong, you could lose both your company and your home.

To start a sole proprietorship, fill out a special tax form called a  Schedule C . Sole proprietors can also join the American Independent Business Alliance .

Limited Liability Company (LLC)

An LLC is the most common business structure used in the United States because an LLC protects the owner’s personal assets. It’s similar to partnerships and corporations, but can be a single-member LLC in most states. An LLC requires a document called an operating agreement.

Each state has different requirements. Here’s a link to find your state’s requirements . Delaware and Nevada are common states to file an LLC because they are really business-friendly. Here’s a blog on the top 10 states to get an LLC.

Partnerships are typically for legal firms. If you choose to use a partnership choose a Limited Liability Partnership. Alternatively, you can just use an LLC.

Corporations are typically for massive organizations. Corporations have taxes on both corporate and income tax so unless you plan on selling stock, you are better off considering an LLC with S-Corp status . Investopedia has good information corporations here .

There are several opportunities to purchase successful franchises. TopFranchise.com has a list of companies in a variety of industries that offer franchise opportunities. This makes it where an entrepreneur can benefit from the reputation of an established business that has already worked out many of the kinks of starting from scratch.

How to Write a Business Plan Step 5. Products and Services

This section of the business plan should focus on what you sell, how you source it, and how you sell it. You should include:

• Unique features that differentiate your business products from competitors
• Intellectual property
• Your supply chain
• Cost and pricing structure 

Questions to answer about your products and services

Mike gave us a list  of the most important questions to answer about your product and services:

• How will you be selling the product? (in person, ecommerce, wholesale, direct to consumer)?
• How do you let them know they need a product?
• How do you communicate the message?
• How will you do transactions?
• How much will you be selling it for?
• How many do you think you’ll sell and why?

Make sure to use the worksheet on our business plan template .

How to Write a Business Plan Step 6. Sales and Marketing Plan

The marketing and sales plan is focused on the strategy to bring awareness to your company and guides how you will get the product to the consumer.  It should contain the following sections:

SWOT Analysis stands for strengths, weaknesses, opportunities, and threats. Not only do you want to identify them, but you also want to document how the business plans to deal with them.

Business owners need to do a thorough job documenting how their service or product stacks up against the competition.

If proper research isn’t done, investors will be able to tell that the owner hasn’t researched the competition and is less likely to believe that the team can protect its service from threats by the more well-established competition. This is one of the most common parts of a presentation that trips up business owners presenting on Shark Tank .

SWOT Examples

Examples of strengths and weaknesses could be things like the lack of cash flow, intellectual property ownership, high costs of suppliers, and customers’ expectations on shipping times.

Opportunities could be ways to capitalize on your strengths or improve your weaknesses, but may also be gaps in the industry. This includes:

• Adding offerings that fit with your current small business
• Increase sales to current customers
• Reducing costs through bulk ordering
• Finding ways to reduce inventory
•  And other areas you can improve

Threats will normally come from outside of the company but could also be things like losing a key member of the team. Threats normally come from competition, regulations, taxes, and unforeseen events.

The management team should use the SWOT analysis to guide other areas of business planning, but it absolutely has to be done before a business owner starts marketing. 

Include Competitor Data in Your Business Plan

When you plan a business, taking into consideration the strengths and weaknesses of the competition is key to navigating the field. Providing an overview of your competition and where they are headed shows that you are invested in understanding the industry.

For smaller businesses, you’ll want to search both the company and the owners names to see what they are working on. For publicly held corporations, you can find their quarterly and annual reports on the SEC website .

What another business plans to do can impact your business. Make sure to include things that might make it attractive for bigger companies to outsource to a small business.

Marketing Strategy

The marketing and sales part of business plans should be focused on how you are going to make potential customers aware of your business and then sell to them.

If you haven’t already included it, Mike recommends:

“They’ll want to know about Demographics, ages, and wealth of your target market.”

Make sure to include the Total addressable market .  The term refers to the value if you captured 100% of the market.

Advertising Strategy

You’ll explain what formats of advertising you’ll be using. Some possibilities are:

• Online: Facebook and Google are the big names to work with here.
• Print : Print can be used to reach broad groups or targeted markets. Check out this for tips .
• Radio : iHeartMedia is one of the best ways to advertise on the radio
• Cable television : High priced, hard to measure ROI, but here’s an explanation of the process
• Billboards: Attracting customers with billboards can be beneficial in high traffic areas.

You’ll want to define how you’ll be using each including frequency, duration, and cost. If you have the materials already created, including pictures or links to the marketing to show creative assets.

Mike told us “Most businesses are marketing digitally now due to Covid, but that’s not always the right answer.”

Make sure the marketing strategy will help team members or external marketing agencies stay within the brand guidelines .

This section of a business plan should be focused on pricing. There are a ton of pricing strategies that may work for different business plans. Which one will work for you depends on what kind of a business you run.

Some common pricing strategies are:

• Value-based pricing – Commonly used with home buying and selling or other products that are status symbols.
• Skimming pricing – Commonly seen in video game consoles, price starts off high to recoup expenses quickly, then reduces over time.
• Competition-based pricing – Pricing based on competitors’ pricing is commonly seen at gas stations.
• Freemium services –  Commonly used for software, where there is a free plan, then purchase options for more functionality.

HubSpot has a great calculator and blog on pricing strategies.

Beyond explaining what strategy your business plans to use, you should include references for how you came to this pricing strategy and how it will impact your cash flow.

Distribution Plan

This part of a business plan is focused on how the product or service is going to go through the supply chain. These may include multiple divisions or multiple companies. Make sure to include any parts of the workflow that are automated so investors can see where cost savings are expected and when.

Supply Chain Examples

For instance, lawn care companies  would need to cover aspects such as:

• Suppliers for lawn care equipment and tools
• Any chemicals or treatments needed
• Repair parts for sprinkler systems
• Vehicles to transport equipment and employees
• Insurance to protect the company vehicles and people.

Examples of Supply Chains

These are fairly flat supply chains compared to something like a clothing designer where the clothes would go through multiple vendors. A clothing company might have the following supply chain:

• Raw materials
• Shipping of raw materials
• Converting of raw materials to thread
• Shipping thread to produce garments
• Garment producer
• Shipping to company
• Company storage
• Shipping to retail stores

There have been advances such as print on demand that eliminate many of these steps. If you are designing completely custom clothing, all of this would need to be planned to keep from having business disruptions.

The main thing to include in the business plan is the list of suppliers, the path the supply chain follows, the time from order to the customer’s home, and the costs associated with each step of the process.

According to BizPlanReview , a business plan without this information is likely to get rejected because they have failed to research the key elements necessary to make sales to the customer.

How to Write a Business Plan Step 7. Company Organization and Operational Plan

This part of the business plan is focused on how the business model will function while serving customers.  The business plan should provide an overview of  how the team will manage the following aspects:

Quality Control

• Legal environment

Let’s look at each for some insight.

Production has already been discussed in previous sections so I won’t go into it much. When writing a business plan for investors, try to avoid repetition as it creates a more simple business plan.

If the organizational plan will be used by the team as an overview of how to perform the best services for the customer, then redundancy makes more sense as it communicates what is important to the business.

Quality control policies help to keep the team focused on how to verify that the company adheres to the business plan and meets or exceeds customer expectations.

Quality control can be anything from a standard that says “all labels on shirts can be no more than 1/16″ off center” to a defined checklist of steps that should be performed and filled out for every customer.

There are a variety of organizations that help define quality control including:

• International Organization for Standardization – Quality standards for energy, technology, food, production environments, and cybersecurity
• AICPA – Standard defined for accounting.
• The Joint Commission – Healthcare
• ASHRAE – HVAC best practices

You can find lists of the organizations that contribute most to the government regulation of industries on Open Secrets . Research what the leaders in your field are doing. Follow their example and implement it in your quality control plan.

For location, you should use information from the market research to establish where the location will be. Make sure to include the following in the location documentation.

• The size of your location
• The type of building (retail, industrial, commercial, etc.)
• Zoning restrictions – Urban Wire has a good map on how zoning works in each state
• Accessibility – Does it meet ADA requirements?
• Costs including rent, maintenance, utilities, insurance and any buildout or remodeling costs
• Utilities – b.e.f. has a good energy calculator .

Legal Environment

The legal requirement section is focused on defining how to meet the legal requirements for your industry. A good business plan should include all of the following:

• Any licenses and/or permits that are needed and whether you’ve obtained them
• Any trademarks, copyrights, or patents that you have or are in the process of applying for
• The insurance coverage your business requires and how much it costs
• Any environmental, health, or workplace regulations affecting your business
• Any special regulations affecting your industry
• Bonding requirements, if applicable

Your local SBA office can help you establish requirements in your area. I strongly recommend using them. They are a great resource.

Your business plan should include a plan for company organization and hiring. While you may be the only person with the company right now, down the road you’ll need more people. Make sure to consider and document the answers to the following questions:

• What is the current leadership structure and what will it look like in the future?
• What types of employees will you have? Are there any licensing or educational requirements?
• How many employees will you need?
• Will you ever hire freelancers or independent contractors?
• What is each position’s job description?
• What is the pay structure (hourly, salaried, base plus commission, etc.)?
• How do you plan to find qualified employees and contractors?

One of the most crucial parts of a business plan is the organizational chart. This simply shows the positions the company will need, who is in charge of them and the relationship of each of them. It will look similar to this:

Our small business plan template has a much more in-depth organizational chart you can edit to include when you include the organizational chart in your business plan.

How to Write a Business Plan Step 8. Financial Statements 

No business plan is complete without financial statements or financial projections. The business plan format will be different based on whether you are writing a business plan to expand a business or a startup business plan. Let’s dig deeper into each.

Provide All Financial Income from an Existing Business

An existing business should use their past financial documents including the income statement, balance sheet, and cash flow statement to find trends to estimate the next 3-5 years.

You can create easy trendlines in excel to predict future revenue, profit and loss, cash flow, and other changes in year-over-year performance. This will show your expected performance assuming business continues as normal.

If you are seeking an investment, then the business is probably not going to continue as normal. Depending on the financial plan and the purpose of getting financing, adjustments may be needed to the following:

• Higher Revenue if expanding business
• Lower Cost of Goods Sold if purchasing inventory with bulk discounts
• Adding interest if utilizing financing (not equity deal)
• Changes in expenses
• Addition of financing information to the cash flow statement
• Changes in Earnings per Share on the balance sheet

Financial modeling is a challenging subject, but there are plenty of low-cost courses on the subject. If you need help planning your business financial documentation take some time to watch some of them.

Make it a point to document how you calculated all the changes to the income statement, balance sheet, and cash flow statement in your business plan so that key team members or investors can verify your research.

Financial Projections For A Startup Business Plan

Unlike an existing business, a startup doesn’t have previous success to model its future performance. In this scenario, you need to focus on how to make a business plan realistic through the use of industry research and averages.

Mike gave the following advice in his interview:

Financial Forecasting Mistakes

One of the things a lot of inexperienced people use is the argument, “If I get one percent of the market, it is worth $100 million.” If you use this, investors are likely to file the document under bad business plan examples.

Let’s use custom t-shirts as an example.

Credence Research estimated in 2018 there were 11,334,800,000 custom t-shirts sold for a total of $206.12 Billion, with a 6% compound annual growth rate.

With that data,  you can calculate that the industry will grow to $270 Billion in 2023 and that the average shirt sold creates $18.18 in revenue.

Combine that with an IBIS World estimate of 11,094 custom screen printers and that means even if you become an average seller, you’ll get .009% of the market.

Here’s a table for easier viewing of that information.

The point here is to make sure your business proposal examples make sense.

You’ll need to know industry averages such as cost of customer acquisition, revenue per customer, the average cost of goods sold, and admin costs to be able to create accurate estimates.

Our simple business plan templates walk you through most of these processes. If you follow them you’ll have a good idea of how to write a business proposal.

How to Write a Business Plan Step 9. Business Plan Example of Funding Requests

What is a business plan without a plan on how to obtain funding?

The Small Business Administration has an example for a pizza restaurant that theoretically needed nearly $20k to make it through their first month.

In our video, How to Start a $500K/Year T-Shirt Business (Pt. 1 ), Sanford Booth told us he needed about $200,000 to start his franchise and broke even after 4 months.

Freshbooks estimates it takes on average 2-3 years for a business to be profitable, which means the fictitious pizza company from the SBA could need up to $330k to make it through that time and still pay their bills for their home and pizza shop.

Not every business needs that much to start, but realistically it’s a good idea to assume that you need a fairly large cushion.

Ways to get funding for a small business

There are a variety of ways to cover this. the most common are:

• Bootstrapping – Using your savings without external funding.
• Taking out debt – loans, credit cards
• Equity, Seed Funding – Ownership of a percentage of the company in exchange for current funds
• Crowdsourcing – Promising a good for funding to create the product

Keep reading for more tips on how to write a business plan.

How funding will be used

When asking for business financing make sure to include:

• How much to get started?
• What is the minimum viable product and how soon can you make money?
• How will the money be spent?

Mike emphasized two aspects that should be included in every plan, 

How to Write a Business Plan Resources

Here are some links to a business plan sample and business plan outline. 

• Sample plan

It’s also helpful to follow some of the leading influencers in the business plan writing community. Here’s a list:

• Wise Plans –  Shares a lot of information on starting businesses and is a business plan writing company.
• Optimus Business Plans –  Another business plan writing company.
• Venture Capital – A venture capital thread that can help give you ideas.

How to Write a Business Plan: What’s Next?

We hope this guide about how to write a simple business plan step by step has been helpful. We’ve covered:

• The definition of a business plan
• Coming up with a business idea
• Performing market research
• The critical components of a business plan
• An example business plan

In addition, we provided you with a simple business plan template to assist you in the process of writing your startup business plan. The startup business plan template also includes a business model template that will be the key to your success.

Don’t forget to check out the rest of our business hub .

Have you written a business plan before? How did it impact your ability to achieve your goals?

Brandon Boushy

Brandon Boushy lives to improve people’s lives by helping them become successful entrepreneurs. His journey started nearly 30 years ago. He consistently excelled at everything he did, but preferred to make the rules rather than follow him. His exploration of self and knowledge has helped him to get an engineering degree, MBA, and countless certifications. When freelancing and rideshare came onto the scene, he recognized the opportunity to play by his own rules. Since 2017, he has helped businesses across all industries achieve more with his research, writing, and marketing strategies. Since 2021, he has been the Lead Writer for UpFlip where he has published over 170 articles on small business success.

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Watch CBS News

Business plans: The good, bad and useless

By Michael Hess

August 6, 2014 / 5:45 AM EDT / MoneyWatch

"If you fail to plan, you plan to fail."

"A goal without a plan is just a wish."

"If we do not choose to plan, then we choose to have others plan for us."

Everyone has heard some or all of these bons mots , and probably many more, about the importance of planning. And you'd be hard-pressed to find a book about entrepreneurship that doesn't start with an admonition about writing a business plan. But for most people, and in most start-up situations, the value of the classic business plan -- particularly the excessively long, minutely detailed, chart-laden variety -- is overrated.

Of course, that's not to say would-be entrepreneurs should just dive recklessly into an endeavor with nothing but a dollar and a dream. It simply suggests understanding what business plans are good for and what they aren't, and investing time and effort accordingly:

Business plans are good for:

Envisioning: The immediate value of a business plan is that it takes your dreams, inventions, ideas, aspirations and expectations out of your head and commits them to paper, where they start to become something a little more "real." Your thoughts get organized and malleable, you can focus and refocus, step away and revisit, and in general start to see what your business might really look like.

Vetting: Similarly, putting things in writing gives you the opportunity to more seriously and professionally consider whether your ideas, assumptions, intentions and expectations are realistic. More important, crafting a plan makes it possible for others to participate in the process. The nature of an entrepreneur is to believe passionately in his or her ideas, but also often be blind to -- or refuse to accept -- anything that challenges them . A well-written plan should keep you honest with yourself and elicit honest feedback from others.

Learning: A plan (at least one of any value) requires research, and writing one should be an education. It should ensure that you are intimately familiar with your industry, competition, customer demographics and anything else on the landscape in which you plan to stake your claim. More than a few times an aspiring entrepreneur has excitedly shared with me what he was positive was a new and unique idea, only to have me burst his bubble by telling him that exact product or business already existed. (I've had a few of those bright ideas myself.) Information as basic as that should never come as a surprise.

Financing: People who are considering lending to or investing in a new business want to see a plan and some "numbers," even though those numbers are usually pure conjecture and rarely bear out. They want to see that you have done your homework, determine whether your vision and projections seem realistic, understand how you plan to achieve them and inevitably decide whether you represent an acceptable risk (in the case of a lender) or a potential reward (in the case of an investor).

But don't fall into the common trap of letting the need for money lead you off the straight and narrow in your business planning. If you back into numbers to support the financing you want, your puffed-up plan can come back to bite you.

What business plans are not good for:

Business planning: By their very nature, business plans are based on assumptions, which lead to other assumptions, used to make even more assumptions. ("If the market size is X, and we get just Y% of it, our sales will be Z.") I don't think I've ever met an entrepreneur whose assumptions or projections wound up being accurate, much less anyone whose business chugged ahead according to plan. Most business owners will tell you that (for better or worse), their businesses wound up being very different than what they had planned or expected, sometimes bearing no resemblance at all to where they started.

I hate buzzwords, but the pervasive use of the word "pivot" is just a jargony way of saying things often don't go as planned.

The bottom line is that unless you're beholden to someone (bank, investor, director, key business partner, etc.) who's demanding a business plan, think twice about how much time and energy to put into doing one. Rather than impressing yourself or others with a bound volume or stunning PowerPoint, produce a fat-free, realistic and usable brief that can serve as a road map for getting started. Then get to the business of getting started.

You can bet that your road map will take unexpected turns very early in the game, and you'll be glad you hadn't wasted time trying to turn that map into an atlas.

Concluding with one more quote on the subject, no more profound a philosopher than Mike Tyson may have said it best: "Everybody has a plan until they get punched in the face."

Michael is an entrepreneur who has launched businesses including Skooba Design and Hotdog Yoga Gear travel bag brands, as well as Journeyware Travel Outfitters. Michael sold his company in 2014 and is now focused on writing, speaking and consulting. Learn more about his ventures at www.businesswithclass.com.

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24 of My Favorite Sample Business Plans & Examples For Your Inspiration

Published: February 06, 2024

Free Business Plan Template

The essential document for starting a business -- custom built for your needs.

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I believe that reading sample business plans is essential when writing your own.

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As you explore business plan examples from real companies and brands, it’s easier for you to learn how to write a good one.

But what does a good business plan look like? And how do you write one that’s both viable and convincing. I’ll walk you through the ideal business plan format along with some examples to help you get started.

Table of Contents

Business Plan Format

Business plan types, sample business plan templates, top business plan examples.

Ask any successful sports coach how they win so many games, and they’ll tell you they have a unique plan for every single game. To me, the same logic applies to business.

If you want to build a thriving company that can pull ahead of the competition, you need to prepare for battle before breaking into a market.

Business plans guide you along the rocky journey of growing a company. And if your business plan is compelling enough, it can also convince investors to give you funding.

With so much at stake, I’m sure you’re wondering where to begin.

• Outline your idea.
• Pitch to investors.
• Secure funding.
• Get to work!

You're all set!

Click this link to access this resource at any time.

Fill out the form to get your free template.

First, you’ll want to nail down your formatting. Most business plans include the following sections.

1. Executive Summary

I’d say the executive summary is the most important section of the entire business plan. 

Why? Essentially, it's the overview or introduction, written in a way to grab readers' attention and guide them through the rest of the business plan. This is important, because a business plan can be dozens or hundreds of pages long.

There are two main elements I’d recommend including in your executive summary:

Company Description

This is the perfect space to highlight your company’s mission statement and goals, a brief overview of your history and leadership, and your top accomplishments as a business.

Tell potential investors who you are and why what you do matters. Naturally, they’re going to want to know who they’re getting into business with up front, and this is a great opportunity to showcase your impact.

Need some extra help firming up those business goals? Check out HubSpot Academy’s free course to help you set goals that matter — I’d highly recommend it

Products and Services

To piggyback off of the company description, be sure to incorporate an overview of your offerings. This doesn’t have to be extensive — just another chance to introduce your industry and overall purpose as a business.

In addition to the items above, I recommend including some information about your financial projections and competitive advantage here too.:

Keep in mind you'll cover many of these topics in more detail later on in the business plan. So, keep the executive summary clear and brief, and only include the most important takeaways.

Executive Summary Business Plan Examples

This example was created with HubSpot’s business plan template:

This executive summary is so good to me because it tells potential investors a short story while still covering all of the most important details.

Image Source

Tips for Writing Your Executive Summary

• Start with a strong introduction of your company, showcase your mission and impact, and outline the products and services you provide.
• Clearly define a problem, and explain how your product solves that problem, and show why the market needs your business.
• Be sure to highlight your value proposition, market opportunity, and growth potential.
• Keep it concise and support ideas with data.
• Customize your summary to your audience. For example, emphasize finances and return on investment for venture capitalists.

Check out our tips for writing an effective executive summary for more guidance.

2. Market Opportunity

This is where you'll detail the opportunity in the market.

The main question I’d ask myself here is this: Where is the gap in the current industry, and how will my product fill that gap?

More specifically, here’s what I’d include in this section:

• The size of the market
• Current or potential market share
• Trends in the industry and consumer behavior
• Where the gap is
• What caused the gap
• How you intend to fill it

To get a thorough understanding of the market opportunity, you'll want to conduct a TAM, SAM, and SOM analysis and perform market research on your industry.

You may also benefit from creating a SWOT analysis to get some of the insights for this section.

Market Opportunity Business Plan Example

I like this example because it uses critical data to underline the size of the potential market and what part of that market this service hopes to capture.

Tips for Writing Your Market Opportunity Section

• Focus on demand and potential for growth.
• Use market research, surveys, and industry trend data to support your market forecast and projections.
• Add a review of regulation shifts, tech advances, and consumer behavior changes.
• Refer to reliable sources.
• Showcase how your business can make the most of this opportunity.

3. Competitive Landscape

Since we’re already speaking of market share, you'll also need to create a section that shares details on who the top competitors are.

After all, your customers likely have more than one brand to choose from, and you'll want to understand exactly why they might choose one over another.

My favorite part of performing a competitive analysis is that it can help you uncover:

• Industry trends that other brands may not be utilizing
• Strengths in your competition that may be obstacles to handle
• Weaknesses in your competition that may help you develop selling points
• The unique proposition you bring to the market that may resonate with customers

Competitive Landscape Business Plan Example

I like how the competitive landscape section of this business plan below shows a clear outline of who the top competitors are.

It also highlights specific industry knowledge and the importance of location, which shows useful experience in this specific industry. 

This can help build trust in your ability to execute your business plan.

Tips for Writing Your Competitive Landscape

• Complete in-depth research, then emphasize your most important findings.
• Compare your unique selling proposition (USP) to your direct and indirect competitors.
• Show a clear and realistic plan for product and brand differentiation.
• Look for specific advantages and barriers in the competitive landscape. Then, highlight how that information could impact your business.
• Outline growth opportunities from a competitive perspective.
• Add customer feedback and insights to support your competitive analysis.

4. Target Audience

Use this section to describe who your customer segments are in detail. What is the demographic and psychographic information of your audience?

If your immediate answer is "everyone," you'll need to dig deeper. Here are some questions I’d ask myself here:

• What demographics will most likely need/buy your product or service?
• What are the psychographics of this audience? (Desires, triggering events, etc.)
• Why are your offerings valuable to them?

I’d also recommend building a buyer persona to get in the mindset of your ideal customers and be clear on why you're targeting them.

Target Audience Business Plan Example

I like the example below because it uses in-depth research to draw conclusions about audience priorities. It also analyzes how to create the right content for this audience.

Tips for Writing Your Target Audience Section

• Include details on the size and growth potential of your target audience.
• Figure out and refine the pain points for your target audience , then show why your product is a useful solution.
• Describe your targeted customer acquisition strategy in detail.
• Share anticipated challenges your business may face in acquiring customers and how you plan to address them.
• Add case studies, testimonials, and other data to support your target audience ideas.
• Remember to consider niche audiences and segments of your target audience in your business plan.

5. Marketing Strategy

Here, you'll discuss how you'll acquire new customers with your marketing strategy. I’d suggest including information:

• Your brand positioning vision and how you'll cultivate it
• The goal targets you aim to achieve
• The metrics you'll use to measure success
• The channels and distribution tactics you'll use

I think it’s helpful to have a marketing plan built out in advance to make this part of your business plan easier.

Marketing Strategy Business Plan Example

This business plan example includes the marketing strategy for the town of Gawler.

In my opinion, it really works because it offers a comprehensive picture of how they plan to use digital marketing to promote the community.

Tips for Writing Your Marketing Strategy

• Include a section about how you believe your brand vision will appeal to customers.
• Add the budget and resources you'll need to put your plan in place.
• Outline strategies for specific marketing segments.
• Connect strategies to earlier sections like target audience and competitive analysis.
• Review how your marketing strategy will scale with the growth of your business.
• Cover a range of channels and tactics to highlight your ability to adapt your plan in the face of change.

6. Key Features and Benefits

At some point in your business plan, you'll need to review the key features and benefits of your products and/or services.

Laying these out can give readers an idea of how you're positioning yourself in the market and the messaging you're likely to use. It can even help them gain better insight into your business model.

Key Features and Benefits Business Plan Example

In my opinion, the example below does a great job outlining products and services for this business, along with why these qualities will attract the audience.

Tips for Writing Your Key Features and Benefits

• Emphasize why and how your product or service offers value to customers.
• Use metrics and testimonials to support the ideas in this section.
• Talk about how your products and services have the potential to scale.
• Think about including a product roadmap.
• Focus on customer needs, and how the features and benefits you are sharing meet those needs.
• Offer proof of concept for your ideas, like case studies or pilot program feedback.
• Proofread this section carefully, and remove any jargon or complex language.

7. Pricing and Revenue

This is where you'll discuss your cost structure and various revenue streams. Your pricing strategy must be solid enough to turn a profit while staying competitive in the industry. 

For this reason, here’s what I’d might outline in this section:

• The specific pricing breakdowns per product or service
• Why your pricing is higher or lower than your competition's
• (If higher) Why customers would be willing to pay more
• (If lower) How you're able to offer your products or services at a lower cost
• When you expect to break even, what margins do you expect, etc?

Pricing and Revenue Business Plan Example

I like how this business plan example begins with an overview of the business revenue model, then shows proposed pricing for key products.

Tips for Writing Your Pricing and Revenue Section

• Get specific about your pricing strategy. Specifically, how you connect that strategy to customer needs and product value.
• If you are asking a premium price, share unique features or innovations that justify that price point.
• Show how you plan to communicate pricing to customers.
• Create an overview of every revenue stream for your business and how each stream adds to your business model as a whole.
• Share plans to develop new revenue streams in the future.
• Show how and whether pricing will vary by customer segment and how pricing aligns with marketing strategies.
• Restate your value proposition and explain how it aligns with your revenue model.

8. Financials

To me, this section is particularly informative for investors and leadership teams to figure out funding strategies, investment opportunities, and more.

 According to Forbes , you'll want to include three main things:

• Profit/Loss Statement - This answers the question of whether your business is currently profitable.
• Cash Flow Statement - This details exactly how much cash is incoming and outgoing to give insight into how much cash a business has on hand.
• Balance Sheet - This outlines assets, liabilities, and equity, which gives insight into how much a business is worth.

While some business plans might include more or less information, these are the key details I’d include in this section.

Financials Business Plan Example

This balance sheet is a great example of level of detail you’ll need to include in the financials section of your business plan.

Tips for Writing Your Financials Section

• Growth potential is important in this section too. Using your data, create a forecast of financial performance in the next three to five years.
• Include any data that supports your projections to assure investors of the credibility of your proposal.
• Add a break-even analysis to show that your business plan is financially practical. This information can also help you pivot quickly as your business grows.
• Consider adding a section that reviews potential risks and how sensitive your plan is to changes in the market.
• Triple-check all financial information in your plan for accuracy.
• Show how any proposed funding needs align with your plans for growth.

As you create your business plan, keep in mind that each of these sections will be formatted differently. Some may be in paragraph format, while others could be charts or graphs.

The formats above apply to most types of business plans. That said, the format and structure of your plan will vary by your goals for that plan. 

So, I’ve added a quick review of different business plan types. For a more detailed overview, check out this post .

1. Startups

Startup business plans are for proposing new business ideas.

If you’re planning to start a small business, preparing a business plan is crucial. The plan should include all the major factors of your business.

You can check out this guide for more detailed business plan inspiration .

2. Feasibility Studies

Feasibility business plans focus on that business's product or service. Feasibility plans are sometimes added to startup business plans. They can also be a new business plan for an already thriving organization.

3. Internal Use

You can use internal business plans to share goals, strategies, or performance updates with stakeholders. In my opinion, internal business plans are useful for alignment and building support for ambitious goals.

4. Strategic Initiatives

Another business plan that's often for sharing internally is a strategic business plan. This plan covers long-term business objectives that might not have been included in the startup business plan.

5. Business Acquisition or Repositioning

When a business is moving forward with an acquisition or repositioning, it may need extra structure and support. These types of business plans expand on a company's acquisition or repositioning strategy.

Growth sometimes just happens as a business continues operations. But more often, a business needs to create a structure with specific targets to meet set goals for expansion. This business plan type can help a business focus on short-term growth goals and align resources with those goals.

Now that you know what's included and how to format a business plan, let's review some of my favorite templates.

1. HubSpot's One-Page Business Plan

Download a free, editable one-page business plan template..

The business plan linked above was created here at HubSpot and is perfect for businesses of any size — no matter how many strategies we still have to develop.

Fields such as Company Description, Required Funding, and Implementation Timeline give this one-page business plan a framework for how to build your brand and what tasks to keep track of as you grow.

Then, as the business matures, you can expand on your original business plan with a new iteration of the above document.

Why I Like It

This one-page business plan is a fantastic choice for the new business owner who doesn’t have the time or resources to draft a full-blown business plan. It includes all the essential sections in an accessible, bullet-point-friendly format. That way, you can get the broad strokes down before honing in on the details.

2. HubSpot's Downloadable Business Plan Template

We also created a business plan template for entrepreneurs.

The template is designed as a guide and checklist for starting your own business. You’ll learn what to include in each section of your business plan and how to do it.

There’s also a list for you to check off when you finish each section of your business plan.

Strong game plans help coaches win games and help businesses rocket to the top of their industries. So if you dedicate the time and effort required to write a workable and convincing business plan, you’ll boost your chances of success and even dominance in your market.

This business plan kit is essential for the budding entrepreneur who needs a more extensive document to share with investors and other stakeholders.

It not only includes sections for your executive summary, product line, market analysis, marketing plan, and sales plan, but it also offers hands-on guidance for filling out those sections.

3. LiveFlow’s Financial Planning Template with built-in automation

This free template from LiveFlow aims to make it easy for businesses to create a financial plan and track their progress on a monthly basis.

The P&L Budget versus Actual format allows users to track their revenue, cost of sales, operating expenses, operating profit margin, net profit, and more.

The summary dashboard aggregates all of the data put into the financial plan sheet and will automatically update when changes are made.

Instead of wasting hours manually importing your data to your spreadsheet, LiveFlow can also help you to automatically connect your accounting and banking data directly to your spreadsheet, so your numbers are always up-to-date.

With the dashboard, you can view your runway, cash balance, burn rate, gross margins, and other metrics. Having a simple way to track everything in one place will make it easier to complete the financials section of your business plan.

This is a fantastic template to track performance and alignment internally and to create a dependable process for documenting financial information across the business. It’s highly versatile and beginner-friendly.

It’s especially useful if you don’t have an accountant on the team. (I always recommend you do, but for new businesses, having one might not be possible.)

4. ThoughtCo’s Sample Business Plan

One of the more financially oriented sample business plans in this list, BPlan’s free business plan template dedicates many of its pages to your business’s financial plan and financial statements.

After filling this business plan out, your company will truly understand its financial health and the steps you need to take to maintain or improve it.

I absolutely love this business plan template because of its ease-of-use and hands-on instructions (in addition to its finance-centric components). If you feel overwhelmed by the thought of writing an entire business plan, consider using this template to help you with the process.

6. Harvard Business Review’s "How to Write a Winning Business Plan"

Most sample business plans teach you what to include in your business plan, but this Harvard Business Review article will take your business plan to the next level — it teaches you the why and how behind writing a business plan.

With the guidance of Stanley Rich and Richard Gumpert, co-authors of " Business Plans That Win: Lessons From the MIT Enterprise Forum ", you'll learn how to write a convincing business plan that emphasizes the market demand for your product or service.

You’ll also learn the financial benefits investors can reap from putting money into your venture rather than trying to sell them on how great your product or service is.

This business plan guide focuses less on the individual parts of a business plan, and more on the overarching goal of writing one. For that reason, it’s one of my favorites to supplement any template you choose to use. Harvard Business Review’s guide is instrumental for both new and seasoned business owners.

7. HubSpot’s Complete Guide to Starting a Business

If you’re an entrepreneur, you know writing a business plan is one of the most challenging first steps to starting a business.

Fortunately, with HubSpot's comprehensive guide to starting a business, you'll learn how to map out all the details by understanding what to include in your business plan and why it’s important to include them. The guide also fleshes out an entire sample business plan for you.

If you need further guidance on starting a business, HubSpot's guide can teach you how to make your business legal, choose and register your business name, and fund your business. It will also give small business tax information and includes marketing, sales, and service tips.

This comprehensive guide will walk you through the process of starting a business, in addition to writing your business plan, with a high level of exactitude and detail. So if you’re in the midst of starting your business, this is an excellent guide for you.

It also offers other resources you might need, such as market analysis templates.

8. Panda Doc’s Free Business Plan Template

PandaDoc’s free business plan template is one of the more detailed and fleshed-out sample business plans on this list. It describes what you should include in each section, so you don't have to come up with everything from scratch.

Once you fill it out, you’ll fully understand your business’ nitty-gritty details and how all of its moving parts should work together to contribute to its success.

This template has two things I love: comprehensiveness and in-depth instructions. Plus, it’s synced with PandaDoc’s e-signature software so that you and other stakeholders can sign it with ease. For that reason, I especially love it for those starting a business with a partner or with a board of directors.

9. Small Business Administration Free Business Plan Template

The Small Business Administration (SBA) offers several free business plan templates that can be used to inspire your own plan.

Before you get started, you can decide what type of business plan you need — a traditional or lean start-up plan.

Then, you can review the format for both of those plans and view examples of what they might look like.

We love both of the SBA’s templates because of their versatility. You can choose between two options and use the existing content in the templates to flesh out your own plan. Plus, if needed, you can get a free business counselor to help you along the way.

I’ve compiled some completed business plan samples to help you get an idea of how to customize a plan for your business.

I chose different types of business plan ideas to expand your imagination. Some are extensive, while others are fairly simple.

Let’s take a look.

1. LiveFlow

One of the major business expenses is marketing. How you handle your marketing reflects your company’s revenue.

I included this business plan to show you how you can ensure your marketing team is aligned with your overall business plan to get results. The plan also shows you how to track even the smallest metrics of your campaigns, like ROI and payback periods instead of just focusing on big metrics like gross and revenue.

Fintech startup, LiveFlow, allows users to sync real-time data from its accounting services, payment platforms, and banks into custom reports. This eliminates the task of pulling reports together manually, saving teams time and helping automate workflows.

"Using this framework over a traditional marketing plan will help you set a profitable marketing strategy taking things like CAC, LTV, Payback period, and P&L into consideration," explains LiveFlow co-founder, Lasse Kalkar .

When it came to including marketing strategy in its business plan, LiveFlow created a separate marketing profit and loss statement (P&L) to track how well the company was doing with its marketing initiatives.

This is a great approach, allowing businesses to focus on where their marketing dollars are making the most impact. Having this information handy will enable you to build out your business plan’s marketing section with confidence. LiveFlow has shared the template here . You can test it for yourself.

2. Lula Body

Sometimes all you need is a solid mission statement and core values to guide you on how to go about everything. You do this by creating a business plan revolving around how to fulfill your statement best.

For example, Patagonia is an eco-friendly company, so their plan discusses how to make the best environmentally friendly products without causing harm.

A good mission statement  should not only resonate with consumers but should also serve as a core value compass for employees as well.

Patagonia has one of the most compelling mission statements I’ve seen:

"Together, let’s prioritise purpose over profit and protect this wondrous planet, our only home."

It reels you in from the start, and the environmentally friendly theme continues throughout the rest of the statement.

This mission goes on to explain that they are out to "Build the best product, cause no unnecessary harm, and use business to protect nature."

Their mission statement is compelling and detailed, with each section outlining how they will accomplish their goal.

4. Vesta Home Automation

This executive summary for a smart home device startup is part of a business plan created by students at Mount Royal University .

While it lacks some of the sleek visuals of the templates above, its executive summary does a great job of demonstrating how invested they are in the business.

Right away, they mention they’ve invested $200,000 into the company already, which shows investors they have skin in the game and aren’t just looking for someone else to foot the bill.

This is the kind of business plan you need when applying for business funds. It clearly illustrates the expected future of the company and how the business has been coming along over the years.

5. NALB Creative Center

This fictional business plan for an art supply store includes everything one might need in a business plan: an executive summary, a company summary, a list of services, a market analysis summary, and more.

One of its most notable sections is its market analysis summary, which includes an overview of the population growth in the business’ target geographical area, as well as a breakdown of the types of potential customers they expect to welcome at the store. 

This sort of granular insight is essential for understanding and communicating your business’s growth potential. Plus, it lays a strong foundation for creating relevant and useful buyer personas .

It’s essential to keep this information up-to-date as your market and target buyer changes. For that reason, you should carry out market research as often as possible to ensure that you’re targeting the correct audience and sharing accurate information with your investors.

Due to its comprehensiveness, it’s an excellent example to follow if you’re opening a brick-and-mortar store and need to get external funding to start your business .

6. Curriculum Companion Suites (CSS)

If you’re looking for a SaaS business plan example, look no further than this business plan for a fictional educational software company called Curriculum Companion Suites. 

Like the business plan for the NALB Creative Center, it includes plenty of information for prospective investors and other key stakeholders in the business.

One of the most notable features of this business plan is the executive summary, which includes an overview of the product, market, and mission.

The first two are essential for software companies because the product offering is so often at the forefront of the company’s strategy. Without that information being immediately available to investors and executives, then you risk writing an unfocused business plan.

It’s essential to front-load your company’s mission if it explains your "Why?" and this example does just that. In other words, why do you do what you do, and why should stakeholders care? This is an important section to include if you feel that your mission will drive interest in the business and its offerings.

7. Culina Sample Business Plan

Culina's sample business plan is an excellent example of how to lay out your business plan so that it flows naturally, engages readers, and provides the critical information investors and stakeholders need. 

You can use this template as a guide while you're gathering important information for your own business plan. You'll have a better understanding of the data and research you need to do since Culina’s plan outlines these details so flawlessly for inspiration.

8. Plum Sample Business Plan

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The 7 Best Business Plan Examples (2024)

As an aspiring entrepreneur gearing up to start your own business , you likely know the importance of drafting a business plan. However, you might not be entirely sure where to begin or what specific details to include. That’s where examining business plan examples can be beneficial. Sample business plans serve as real-world templates to help you craft your own plan with confidence. They also provide insight into the key sections that make up a business plan, as well as demonstrate how to structure and present your ideas effectively.

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Example business plan

To understand how to write a business plan, let’s study an example structured using a seven-part template. Here’s a quick overview of those parts:

• Executive summary: A quick overview of your business and the contents of your business plan.
• Company description: More info about your company, its goals and mission, and why you started it in the first place.
• Market analysis: Research about the market and industry your business will operate in, including a competitive analysis about the companies you’ll be up against.
• Products and services: A detailed description of what you’ll be selling to your customers.
• Marketing plan: A strategic outline of how you plan to market and promote your business before, during, and after your company launches into the market.
• Logistics and operations plan: An explanation of the systems, processes, and tools that are needed to run your business in the background.
• Financial plan: A map of your short-term (and even long-term) financial goals and the costs to run the business. If you’re looking for funding, this is the place to discuss your request and needs.

7 business plan examples (section by section)

In this section, you’ll find hypothetical and real-world examples of each aspect of a business plan to show you how the whole thing comes together. 

• Executive summary

Your executive summary offers a high-level overview of the rest of your business plan. You’ll want to include a brief description of your company, market research, competitor analysis, and financial information. 

In this free business plan template, the executive summary is three paragraphs and occupies nearly half the page:

• Company description

You might go more in-depth with your company description and include the following sections:

• Nature of the business. Mention the general category of business you fall under. Are you a manufacturer, wholesaler, or retailer of your products?
• Background information. Talk about your past experiences and skills, and how you’ve combined them to fill in the market. 
• Business structure. This section outlines how you registered your company —as a corporation, sole proprietorship, LLC, or other business type.
• Industry. Which business sector do you operate in? The answer might be technology, merchandising, or another industry.
• Team. Whether you’re the sole full-time employee of your business or you have contractors to support your daily workflow, this is your chance to put them under the spotlight.

You can also repurpose your company description elsewhere, like on your About page, Instagram page, or other properties that ask for a boilerplate description of your business. Hair extensions brand Luxy Hair has a blurb on it’s About page that could easily be repurposed as a company description for its business plan. 

• Market analysis

Market analysis comprises research on product supply and demand, your target market, the competitive landscape, and industry trends. You might do a SWOT analysis to learn where you stand and identify market gaps that you could exploit to establish your footing. Here’s an example of a SWOT analysis for a hypothetical ecommerce business: 

You’ll also want to run a competitive analysis as part of the market analysis component of your business plan. This will show you who you’re up against and give you ideas on how to gain an edge over the competition. 

• Products and services

This part of your business plan describes your product or service, how it will be priced, and the ways it will compete against similar offerings in the market. Don’t go into too much detail here—a few lines are enough to introduce your item to the reader.

• Marketing plan

Potential investors will want to know how you’ll get the word out about your business. So it’s essential to build a marketing plan that highlights the promotion and customer acquisition strategies you’re planning to adopt. 

Most marketing plans focus on the four Ps: product, price, place, and promotion. However, it’s easier when you break it down by the different marketing channels . Mention how you intend to promote your business using blogs, email, social media, and word-of-mouth marketing. 

Here’s an example of a hypothetical marketing plan for a real estate website:

Logistics and operations

This section of your business plan provides information about your production, facilities, equipment, shipping and fulfillment, and inventory.

Financial plan

The financial plan (a.k.a. financial statement) offers a breakdown of your sales, revenue, expenses, profit, and other financial metrics. You’ll want to include all the numbers and concrete data to project your current and projected financial state.

In this business plan example, the financial statement for ecommerce brand Nature’s Candy includes forecasted revenue, expenses, and net profit in graphs.

It then goes deeper into the financials, citing:

• Funding needs
• Project cash-flow statement
• Project profit-and-loss statement
• Projected balance sheet

You can use Shopify’s financial plan template to create your own income statement, cash-flow statement, and balance sheet. 

Types of business plans (and what to write for each)

A one-page business plan is a pared down version of a standard business plan that’s easy for potential investors and partners to understand. You’ll want to include all of these sections, but make sure they’re abbreviated and summarized:

• Logistics and operations plan
• Financials 

A startup business plan is meant to secure outside funding for a new business. Typically, there’s a big focus on the financials, as well as other sections that help determine the viability of your business idea—market analysis, for example. Shopify has a great business plan template for startups that include all the below points:

• Market research: in depth
• Financials: in depth

Internal 

Your internal business plan acts as the enforcer of your company’s vision. It reminds your team of the long-term objective and keeps them strategically aligned toward the same goal. Be sure to include:

• Market research

Feasibility 

A feasibility business plan is essentially a feasibility study that helps you evaluate whether your product or idea is worthy of a full business plan. Include the following sections:

A strategic (or growth) business plan lays out your long-term vision and goals. This means your predictions stretch further into the future, and you aim for greater growth and revenue. While crafting this document, you use all the parts of a usual business plan but add more to each one:

• Products and services: for launch and expansion
• Market analysis: detailed analysis
• Marketing plan: detailed strategy
• Logistics and operations plan: detailed plan
• Financials: detailed projections

Free business plan templates

Now that you’re familiar with what’s included and how to format a business plan, let’s go over a few templates you can fill out or draw inspiration from.

Bplans’ free business plan template

Bplans’ free business plan template focuses a lot on the financial side of running a business. It has many pages just for your financial plan and statements. Once you fill it out, you’ll see exactly where your business stands financially and what you need to do to keep it on track or make it better.

PandaDoc’s free business plan template

PandaDoc’s free business plan template is detailed and guides you through every section, so you don’t have to figure everything out on your own. Filling it out, you’ll grasp the ins and outs of your business and how each part fits together. It’s also handy because it connects to PandaDoc’s e-signature for easy signing, ideal for businesses with partners or a board.

Miro’s Business Model Canvas Template

Miro’s Business Model Canvas Template helps you map out the essentials of your business, like partnerships, core activities, and what makes you different. It’s a collaborative tool for you and your team to learn how everything in your business is linked.

Better business planning equals better business outcomes

Building a business plan is key to establishing a clear direction and strategy for your venture. With a solid plan in hand, you’ll know what steps to take for achieving each of your business goals. Kickstart your business planning and set yourself up for success with a defined roadmap—utilizing the sample business plans above to inform your approach.

Business plan FAQ

What are the 3 main points of a business plan.

• Concept. Explain what your business does and the main idea behind it. This is where you tell people what you plan to achieve with your business.
• Contents. Explain what you’re selling or offering. Point out who you’re selling to and who else is selling something similar. This part concerns your products or services, who will buy them, and who you’re up against.
• Cash flow. Explain how money will move in and out of your business. Discuss the money you need to start and keep the business going, the costs of running your business, and how much money you expect to make.

How do I write a simple business plan?

To create a simple business plan, start with an executive summary that details your business vision and objectives. Follow this with a concise description of your company’s structure, your market analysis, and information about your products or services. Conclude your plan with financial projections that outline your expected revenue, expenses, and profitability.

What is the best format to write a business plan?

The optimal format for a business plan arranges your plan in a clear and structured way, helping potential investors get a quick grasp of what your business is about and what you aim to achieve. Always start with a summary of your plan and finish with the financial details or any extra information at the end.

Want to learn more?

• Question: Are You a Business Owner or an Entrepreneur?
• Bootstrapping a Business: 10 Tips to Help You Succeed
• Entrepreneurial Mindset: 20 Ways to Think Like an Entrepreneur
• 101+ Best Small Business Software Programs 

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550+ Business Plan Examples to Launch Your Business

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

Find your business plan example

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

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Example business plan format

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

Executive summary

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

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

Products & services

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

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

Market analysis

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

Competition

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

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

Marketing & sales

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

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

Milestones & metrics

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

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

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

Company & team

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

Financial projections

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

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

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

Types of business plans explained

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

Traditional business plan

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

Business model canvas

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

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

One-page business plan

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

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

Growth planning

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

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

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

Download a free sample business plan template

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

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

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

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

Choose a business plan example from a similar type of company

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

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

Use a business plan example as a guide

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

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

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

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

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

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

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

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

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

Prepare to pitch your business

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

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

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

Ready to get started?

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

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

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How bad is Boeing's 2024 so far? Here's a timeline

Bill Chappell

Boeing CEO Dave Calhoun speaks to reporters on Capitol Hill on Jan. 24. "We have confidence in the safety of our airplanes," Calhoun says. "And that's what all of this is about. We fully understand the gravity." Anna Moneymaker/Getty Images hide caption

Boeing CEO Dave Calhoun speaks to reporters on Capitol Hill on Jan. 24. "We have confidence in the safety of our airplanes," Calhoun says. "And that's what all of this is about. We fully understand the gravity."

In the first week of 2024, a Boeing 737 Max 9 passenger jet lost a rear door plug in midflight, terrifying people on board. The large door plug plummeted into the backyard of a high school science teacher in Portland, Ore. The Federal Aviation Administration ordered the grounding of similarly configured Boeing 737 Max 9 aircraft for weeks.

"This incident should have never happened and it cannot happen again," the FAA said at the time.

The news hasn't gotten much better for Boeing, whose reputation was already tarnished by deadly crashes of its 737 Max 8 jets in 2018 and 2019, and a host of problems with its 787 Dreamliner a decade ago.

Ripple effects of the door plug incident quickly hit airlines that bought dozens of new 737 Max 9 airliners only to see them idled — and then face skepticism from passengers once the aircraft were cleared.

The FAA gives Boeing 90 days to fix quality control issues. Critics say they run deep

Though commercial air travel is still very safe overall , Boeing now faces renewed questions over its ability to meet quality and safety standards. Many of the same questions also center on the FAA's oversight of Boeing and the corporation's cozy relationship with the U.S. government , from the U.S. role in helping Boeing sell planes on the international market to its status as a major employer and military contractor.

Here's a recap of Boeing's troubled year so far:

Jan. 5: Door plug failure cuts Alaska Airlines flight short

An image from the NTSB investigation shows the interior of Alaska Airlines Flight 1282 on a Boeing 737 Max 9, which suffered a violent explosion when the aircraft lost a door plug during a commercial flight. NTSB hide caption

An image from the NTSB investigation shows the interior of Alaska Airlines Flight 1282 on a Boeing 737 Max 9, which suffered a violent explosion when the aircraft lost a door plug during a commercial flight.

Alaska Airlines Flight 1282, a Boeing 737 Max 9, climbs to 16,000 feet after taking off in Portland, Ore. — but its rear door plug is violently expelled from the plane , with 171 passengers and six crew members aboard.

Rapid decompression sucks phones and other items out of the person-sized hole. No serious injuries are reported. The flight lasts almost exactly 20 minutes.

"We are very, very fortunate here that this didn't end up in something more tragic," National Transportation Safety Board Chair Jennifer Homendy says the next day, adding, "no one was seated in 26A and 26B, where that door plug is."

Alaska Airlines grounds its 65 Boeing 737 Max 9 aircraft; the FAA then orders a wider shutdown, affecting 171 planes overall.

Jan. 8: Airlines find more loose parts, while a lawsuit alleges "excessive amount of defects" at key Boeing supplier

Alaska Airlines and United Airlines, both of which fly Boeing jets with the door-plug configuration, say they found loose parts on their grounded 737 Max 9 jets.

Preliminary inspections "found instances that appear to relate to installation issues in the door plug — for example, bolts that needed additional tightening," United says. Alaska's maintenance crews report hardware that was visibly loose.

As the door-plug failure makes headlines, new scrutiny also comes to Spirit AeroSystems , which manufactured the fuselage and door plug on the Alaska Airlines plane.

In court filings for a shareholder lawsuit, a former Spirit quality-control inspector alleged finding an "excessive amount of defects" at its plant in Kansas. The suit also alleges that an employee was asked to obscure quality problems — and was retaliated against when he raised a red flag about defects.

Spirit was spun off from Boeing in 2005 and is led by former Boeing executive Pat Shanahan, who was tapped to right the ship last fall after its former CEO was fired.

Jan. 12: FAA says it will audit Boeing production, hints at a major shift

One day after sending the company formal notice of an investigation into whether it broke regulations, the FAA says it will audit the Boeing 737 Max 9 production line and its suppliers as the agency boosts oversight.

And in what could promise a sea change for the industry, the FAA says it's looking at clawing back some of the safety analysis work it has outsourced to plane makers — a controversial practice that has allowed Boeing and other companies to self-certify the quality of their work.

"It's something that's long overdue," David Soucie, a former FAA safety inspector, tells NPR .

Jan. 16: Apparent Boeing insider blames company for door plug

Workers and an unpainted Boeing 737 aircraft are pictured as Boeing's 737 factory teams hold the first day of a "Quality Stand Down" for the 737 program at Boeing's factory in Renton, Wash., on Jan. 25. Jason Redmond/AFP via Getty Images hide caption

Workers and an unpainted Boeing 737 aircraft are pictured as Boeing's 737 factory teams hold the first day of a "Quality Stand Down" for the 737 program at Boeing's factory in Renton, Wash., on Jan. 25.

A self-described Boeing employee says the aircraft company, not Spirit, was the last to install the door plug on the 737 Max 9.

"The reason the door blew off is stated in black and white in Boeings own records," the person writes on an aviation website . "It is also very, very stupid and speaks volumes about the quality culture at certain portions of the business."

Specifically, the apparent whistleblower says, Boeing's manufacturing records show that workers failed to properly reinstall bolts meant to hold the large panel in place.

The claim was first reported by The Seattle Times , after a separate source tells the newspaper that when the plane was flagged to have some more work done on its fuselage, Boeing mechanics in Renton, Wash., reinstalled the door plug improperly.

Jan. 24: FAA clears path for 737 Max 9 to resume flying

The FAA says the grounded Boeing 737 Max 9 jets can be put back into service once they've undergone "a thorough inspection and maintenance process."

But in a new setback for Boeing, the agency also says it won't allow the company to ramp up production for any of its Max family of aircraft.

"This won't be back to business as usual for Boeing," FAA Administrator Mike Whitaker says , adding that the regulator won't let Boeing expand production until it's satisfied the company has resolved quality control issues.

Meanwhile, Boeing CEO Dave Calhoun meets with lawmakers in Washington, D.C.

"We believe in our airplanes," Calhoun tells reporters on Capitol Hill. "We have confidence in the safety of our airplanes. And that's what all of this is about. We fully understand the gravity."

Jan. 26: The 737 Max 9 flies again, but some customers balk

A Boeing 737 Max 9 for Alaska Airlines is pictured along with other 737 aircraft at Renton Municipal Airport adjacent to Boeing's factory in Renton, Wash., on Jan. 25. Jason Redmond/AFP via Getty Images hide caption

A Boeing 737 Max 9 for Alaska Airlines is pictured along with other 737 aircraft at Renton Municipal Airport adjacent to Boeing's factory in Renton, Wash., on Jan. 25.

After three weeks, Alaska Airlines puts the first of its Boeing 737 Max 9 jets back into service. But some customers say they're reluctant to fly on the aircraft, their confidence shaken by the nightmarish incident earlier that month.

"I never paid any attention until this happened as to what I was flying in," Corrie Savio tells NPR .

As potential passengers look for ways to know what plane they'll likely be on , airlines and booking sites offer ways for customers to change planes, including omitting the Max 9 from flight search results.

Feb. 6: In preliminary report, NTSB says bolts were missing

Four critical bolts were missing from the plane whose door plug explosively blew off the Alaska Airlines flight, the NTSB says in its preliminary report . The bolts are meant to prevent the door plug from sliding upward, the agency says.

When the plane arrived at Boeing's plant near Seattle, the NTSB says, workers needed to correct a problem with its fuselage rivets — a process that requires its door plug to be opened and then closed. The NTSB says that after Spirit AeroSystems workers at the plant replaced those rivets last September, the door plug was put back on the plane without four bolts.

The NTSB does not say who was responsible for the failure to ensure the bolts were reinstalled.

NTSB says key bolts were missing from the door plug that blew off a Boeing 737 Max 9

"Boeing is taking immediate action to strengthen quality," the company says in response , noting it has begun new inspections for structural items such as the door plug, and adding a protocol to ensure door plugs are reinstalled properly and inspected before delivery to customers.

Feb. 21: Head of 737 Max program departs in shakeup

Boeing executive Ed Clark, who oversaw Boeing's 737 Max program and Renton, Wash., plant, leaves the company , replaced by Katie Ringgold.

Boeing also creates a new role of senior vice president of quality, naming Elizabeth Lund to the post.

Feb. 28: FAA gives Boeing 90 days to come up with a plan

The FAA tells top Boeing officials that they have 90 days to develop a comprehensive plan to address "systemic quality-control issues to meet FAA's non-negotiable safety standards."

The changes should be foundational and far-reaching — and Boeing also needs to apply a high level of rigor and oversight to its suppliers, FAA Administrator Mike Whitaker says.

"Boeing must commit to real and profound improvements," Whitaker says in a statement, adding later, "Boeing must take a fresh look at every aspect of their quality-control process and ensure that safety is the company's guiding principle."

Federal Aviation Administration Administrator Michael Whitaker testifies before the House Transportation and Infrastructure Committee in the Rayburn House Office Building on Feb. 6. Kevin Dietsch/Getty Images hide caption

Federal Aviation Administration Administrator Michael Whitaker testifies before the House Transportation and Infrastructure Committee in the Rayburn House Office Building on Feb. 6.

March 4: FAA audit slams Boeing and Spirit

After a six-week audit of Boeing and Spirit, the FAA says it "found multiple instances where the companies allegedly failed to comply with manufacturing quality control requirements."

The FAA cites problems in numerous areas, including "manufacturing process control, parts handling and storage, and product control."

The agency also cites an expert review panel's report on Boeing, which found "a disconnect between Boeing's senior management and other members of the organization on safety culture." The experts, who had been working on the federally mandated review before the door-plug incident, reported speaking with Boeing employees who doubted the company's systems could ensure open communication and non-retaliation; several also said that before their interview, they were briefed by Boeing's legal department.

March 6: NTSB says Boeing isn't sharing basic details

Jennifer Homendy, chair of the U.S. National Transportation Safety Board (NTSB), testifies before the Senate Commerce, Science and Transportation Committee on Capitol Hill on March 6. Homendy said Boeing has not fully cooperated with the NTSB investigation. Kevin Dietsch/Getty Images hide caption

Jennifer Homendy, chair of the U.S. National Transportation Safety Board (NTSB), testifies before the Senate Commerce, Science and Transportation Committee on Capitol Hill on March 6. Homendy said Boeing has not fully cooperated with the NTSB investigation.

Boeing hasn't shared key information — such as which workers were responsible for not reinstalling the door plug properly at its factory in Washington state, NTSB chair Jennifer Homendy tells the Senate Commerce Committee.

"It's absurd that two months later, we don't have that," Homendy says .

The NTSB wants details about who did the work on the door plug, and when.

"Boeing has not provided us with documents and information we have requested numerous times," Homendy tells lawmakers.

Boeing spokesman Connor Greenwood pushes back on that version of events.

"Early in the investigation, we provided the NTSB with names of Boeing employees, including door specialists, who we believed would have relevant information. We have now provided the full list of individuals on the 737 door team, in response to a recent request," Greenwood says in a message to NPR.

March 8: Boeing says it can't locate documents related to door plug

In a letter to Washington Sen. Maria Cantwell, Ziad Ojakli, Boeing's executive vice president of government operations, says employees looked "extensively" but could not find any documents on the "opening and closing of the door plug."

Ojakli also says Boeing has been transparent with the government's investigation, denying allegations that the company hasn't been fully cooperative.

March 9: A Boeing whistleblower is found dead

John Barnett, a former Boeing quality control manager who became a whistleblower, is found dead in Charleston, S.C. , where he once worked at Boeing's large 787 plant.

Police are investigating after finding Barnett dead in a vehicle. The coroner's office says he died "from what appears to be a self-inflicted gunshot wound."

Barnett was locked in a yearslong legal battle with Boeing. In a whistleblower complaint filed in early 2017, he accused his former employer of retaliating against him for raising safety concerns in the company's commercial airplanes.

"He was looking forward to having his day in court and hoped that it would force Boeing to change its culture," his family says in a statement.

March 12: NTSB sets date for investigative hearing; Boeing replies to FAA audit findings

An employee checks a Boeing 737 Max 9 airplane from a lift outside the company's factory, on March 14, 2019 in Renton, Wash. Stephen Brashear/Getty Images hide caption

An employee checks a Boeing 737 Max 9 airplane from a lift outside the company's factory, on March 14, 2019 in Renton, Wash.

The NTSB announces plans to hold an investigative hearing on Aug. 6 and 7 about its investigation "into how and why a door plug departed" from the passenger jet during flight.

The hearing will be livestreamed, featuring investigators, witnesses and others, the agency says .

On the same day, Boeing responds to the FAA audit's conclusions announced the previous week.

"FAA inspectors went deep into our Renton factories in January and February to audit our production and quality control," says Stan Deal, the CEO of Boeing's commercial airplanes division.

The "vast majority" of problems, he adds, pertained to situations where Boeing employees didn't follow the company's processes and procedures. Deal promises to focus on improving compliance by working with employees and conducting more internal audits. Of the expert review, he says Boeing's procedures were too complicated.

"If you spot an issue, you are fully empowered to report it through your manager or the Speak Up portal," Deal says.

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8 Incidents in 2 Weeks: What’s Going on With United’s Planes?

While no one was injured, most of the mishaps required emergency landings or diversions. One safety expert said the incidents were not the result of “systemic problems.”

By Christine Chung

An engine fire sparked by plastic packaging wrap , a tire lost shortly after takeoff and a plane veering off the runway : These are among the eight incidents that have occurred over the past two weeks on flights operated by United Airlines. While no injuries — or worse — have been reported, the mishaps have generated headlines and stoked rising anxiety about aviation safety among federal officials and passengers alike.

All of the incidents happened on flights that took off from or were headed to airports in the United States, and five involved airplanes made by Boeing, a manufacturer already under intense scrutiny. In January, a door plug blew out of an Alaska Airlines Boeing 737 Max 9 jetliner in mid-flight, forcing the plane to make an emergency landing.

United, one of the world’s largest airlines, flies aircraft manufactured mainly by Boeing and Airbus. In an email United began sending to customers on Monday, the company’s chief executive, Scott Kirby, wrote that while the recent incidents were unrelated, they were “reminders of the importance of safety.”

“I want you to know that these incidents have our attention and have sharpened our focus,” he continued, adding that every case was being reviewed by the airline and would influence its safety training and procedures.

Here’s what travelers should know about the latest in airplane woes.

What exactly happened on or to the planes?

Most of the incidents reported in the last two weeks required emergency landings or diversions.

March 4: A Boeing 737-900 departing from George Bush Intercontinental Airport in Houston returned to the airport to make an emergency landing after one of the plane engines ingested and burned plastic wrap .

March 7: A Boeing 777 leaving San Francisco for Osaka, Japan, made an emergency landing at Los Angeles International Airport after the aircraft lost a tire .

March 8: A Boeing 737 Max 8 veered off the runway upon landing at George Bush Airport in Houston and tilted onto the grass .

Later that day, a flight leaving San Francisco for Mexico City was diverted to Los Angeles after the Airbus A320 experienced issues with its hydraulic system.

March 9: An Airbus A320 heading to Salt Lake City turned back to Chicago O’Hare International Airport after it reported maintenance issues .

March 11: A Boeing 777, flying from Sydney, Australia , to San Francisco, turned back after takeoff because the plane had a hydraulic leak.

March 14: An Airbus A320 that departed from Dallas Fort Worth International Airport had a hydraulic leak shortly before it landed in its scheduled destination, San Francisco.

Later that day, a Boeing 737-800 that took off from San Francisco landed at Rogue Valley International Medford Airport in Oregon missing an external panel .

Are the recent issues typical, or cause for concern?

The mishaps were not the result of “systemic problems,” said Robert Sumwalt, a former chairman of the National Transportation Safety Board who now heads a new aviation safety center at Embry-Riddle Aeronautical University.

“Some of these issues are things that happen occasionally, but often don’t get reported in media,” Mr. Sumwalt said, though he emphasized that none were acceptable.

Kyra Dempsey, who writes about aviation accidents in a blog called Admiral Cloudberg, said that United’s recent issues were being “falsely conflated with Boeing’s troubles.”

“While it’s bad luck that United had so many incidents in such a short period, in general such incidents happen frequently around the world and they aren’t on the rise overall,” Ms. Dempsey said.

How has United responded?

Mr. Kirby’s 270-word message to United customers, including to members of the airline’s frequent flier program, started to be sent on Monday morning, said Josh Freed, a spokesman for United.

Starting in May, United pilots will have an extra day of in-person training, a change that was already planned before the incidents, Mr. Kirby wrote. The airline will also use a “centralized training curriculum for our new hire maintenance technicians” and will dedicate additional resources to the carrier’s supply chain.

What government agencies oversee these issues, and how are they responding?

The Federal Aviation Administration regulates the country’s aviation system and investigates safety incidents on U.S. airlines, while the N.T.S.B. investigates the causes of accidents, collisions and crashes involving planes flown by U.S. carriers, in addition to other accidents involving commercial and mass transit operators. Both agencies have discretion on what they investigate, Mr. Sumwalt said.

Currently, the N.T.S.B. is investigating the incident that occurred on March 8 in Houston, when the plane veered off the runway, an agency spokesperson said. The N.T.S.B. is also looking into a Feb. 10 Los Angeles-to-Newark flight , operated by United, that experienced severe turbulence, leading to injuries among more than a dozen passengers. (The Boeing 777 landed normally, but the flight was met by medical personnel.)

Safety experts said some issues don’t necessarily rise to the level of an investigation by either agency.

For example, partial loss of some of an airplane’s multiple hydraulics systems is common, said Michael McCormick, an assistant professor at Embry-Riddle Aeronautical University and a former F.A.A. control tower operator. The F.A.A. may or may not get involved for this kind of issue, unless there’s a pattern, Mr. Sumwalt said.

The January episode involving the blown door plug aboard the Alaska Airlines jet is under investigation by the N.T.S.B. and the Justice Department.

Follow New York Times Travel on Instagram and sign up for our weekly Travel Dispatch newsletter to get expert tips on traveling smarter and inspiration for your next vacation. Dreaming up a future getaway or just armchair traveling? Check out our 52 Places to Go in 2024 .

Christine Chung is a Times reporter covering airlines and consumer travel. More about Christine Chung

Boeing: A Company in Turmoil

Boeing is weathering a particularly difficult period: two fatal crashes, a loose panel that blew out during a flight, quality concerns and production slowdowns..

A Major Reshuffle : Boeing said that it was overhauling its leadership  amid its most significant safety crisis in years, announcing sweeping changes that included the departure of its chief executive, Dave Calhoun , at the end of the year.

United’s Planes : An engine fire sparked by plastic packaging wrap, a tire lost shortly after takeoff and a plane veering off the runway: These are among several recent incidents that have occurred  on Boeing flights operated by United Airlines.

Alaska Airlines Flight 1282: After a section of a plane blew out  10 minutes after it took off , there was increased scrutiny  on the plane’s manufacturer: Boeing . The Justice Department has since launched a criminal investigation .

Quality Control Issues: An audit that was initiated by the Federal Aviation Administration after the Alaska Airlines incident found dozens of problems  throughout Boeing’s manufacturing process and one of its key suppliers.

At Fault: A report released in February by the F.A.A. said that Boeing’s safety culture remains flawed , despite improvements made after two fatal crashes  in 2018 and 2019.

I was put on a performance improvement plan. Surviving a PIP not only let me keep my job but made me a better employee.

• I thought my career as a teacher was over when I was put on an Performance Improvement Plan.
• Receiving support and constructive feedback made me a better teacher.
• I kept my job and got off of the PIP but eventually left teaching behind. 

After completing my first year of teaching 8th-grade English at a private school , I was happy to have survived. Teaching is hard; teaching 105 adolescents is even harder.

Not only are they navigating puberty and the emotional whiplash that comes with it, but they are working with an undeveloped prefrontal cortex, the decision-making part of the brain. They are also distracted by social media , screen time, and seeking the approval of their friends, which makes it more difficult to get and hold their attention long enough to complete an entire unit. But I managed to do it — one lesson at a time — over the course of a very long year. I was proud of myself.

The self-congratulatory buzz didn't last long, though. When I met with the school's principal for my year-end review, I was presented with a Performance Improvement Plan (PIP) . I assumed it was code for you should just quit .

While I had worked as a teacher's assistant and part-time writing instructor for a few years, this was my first time managing a homeroom and instructing on my own. As I looked over the language of the plan — difficulty with classroom management, needs to establish clear classroom procedures, all students are not engaged in the lesson — I forgot about the lessons that went well, the books the students enjoyed, the tests that demonstrated a true understanding of the material.

Was I a horrible teacher?

The principal assured me that the point of the PIP was to improve my performance

Reluctantly, I agreed to the PIP — not necessarily because I thought all the statements were a true assessment of my ability, but because I knew some areas could use improvement. I wanted to show the school's administration what I was capable of.

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In the summer between my first and second year of teaching, I took a few professional development courses, wrote detailed lesson plans, carefully curated a selection of books for outside reading, and mapped out a variety of seating charts.

When I returned that fall, I met the new assistant principal, Mr. White, who would serve as head of discipline — as well as my advisor. He'd make sure I was following my PIP. We set up goals based on the areas that needed the most improvement, which was predominantly classroom management.

Once a week for a few months, I would observe other teachers for one class period. Together, Mr. White and I came up with classroom routines that I began implementing immediately. I remember nervously standing at the front of the classroom and reading aloud the procedures for homeroom. I heard Mr. White's voice in my head amid the groans of students who couldn't believe they had to stay seated until the bell rang.

"By setting clear expectations and consequences, you will create an atmosphere where everyone will feel respected," the voice said. "You will have command of the classroom."

We reviewed my lesson plans and day-to-day procedures. We met weekly. Occasionally, I would find him in the back of my classroom. I'd be reviewing a grammar lesson on parts of speech, and I would look up to see him glancing at the papers on the students' desks or watching the slideshow I was nervously clicking through. There was never a thumbs up, a smile, or a you're-doing-a-good-job nod in my direction. Mr. White had the ultimate poker face.

So, my jaw nearly dropped to the carpeted floor of his office on the day he told me I passed and survived my PIP with flying colors. Beyond just meeting the goals laid out before me, I exceeded them. I had, he told me, become a masterful teacher.

The PIP helped improve my abilities as an employee

What ultimately helped me to improve as a teacher was receiving constructive feedback and meeting specific, achievable goals with the support of the assistant principal. I did become a more effective teacher.

I showed myself what I could do — in and out of the classroom. That was truly the greatest gift of all.

I went on to teach for a few more years before realizing that teaching wasn't for me, but the skills and confidence I gained in that classroom have helped me immensely in other professions.

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Politics latest: Tory deputy chairman Jonathan Gullis blames 'pesky peers' and Labour for blocking Rwanda bill he abstained on

Jonathan Gullis, the new deputy chair of the Conservative Party, faced questions on Politics Hub With Sophy Ridge after latest figures showed a record number of migrants crossed the Channel in the first three months of this year.

Wednesday 27 March 2024 19:49, UK

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• Tory deputy chair blames 'pesky peers' and Labour for blocking Rwanda bill he abstained on
• Record number of migrants cross Channel in first three months of year
• Figures spell trouble for 'stop the boats' pledge
• Sophy Ridge: Why aren't the polls narrowing for Sunak? I've got a theory
• Explained: How Tory MPs can get rid of Sunak - and who could replace him
• Minister hits out a 'credulous clerics and lefty lawyers' over Clapham chemical attacker case
• Live reporting by Tim Baker

Housing Secretary Michael Gove's ambition - laid out in January 2023 - to end the leasehold system appears to have been gutted.

A leasehold is where someone pays a figure on a level with the sale price of a property, but actually just rents the property from a landlord for a period of 99 years or such - and they can be left liable to paying extra charges.

Kwajo Tweneboa, an affordable housing campaigner, says he believes Mr Gove will be "disappointed" in the turn of events.

Mr Gove said he wanted to end the system - which dates back hundreds of years - before the election, but it seems only a watered-down version is going to be passed.

 Mr Tweneboa says: "I'm not here to pour glitter on any sort of politician, any MP or anything, but from my meetings with [Mr Gove], I do believe that he wants to create changes, whether it comes to the Renters' Reform bill, Social Housing Regulation Bill, but also Leasehold reform too. 

"So if it is the case where it is being watered down in the way that's being suggested, I do believe he will be disappointed.

"I think perhaps he's going to have to take a firmer stance.

"Ultimately, we need reform to be as strong as possible."

Mr Tweneboa says pressure needs to be applied "equally" to whoever the next government is - Labour or Conservative.

Sophy's panel discuss why people are increasingly unhappy with the NHS.

Former Corbyn adviser James Schneider says the health service is one of "probably the most civilised things about our country".

But he says the past 30 years of "under-funding, part-privatisation and various botched attempts to reorganise it" have left people dissatisfied.

Ex-Tory minister Lord Vaizey says he has always been in favour of NHS reform - and that he doesn't see any problems with a private company delivering an NHS service.

He advocates for private companies to be given "simple operations - cataracts, knee replacements, that kind of thing" on a free-at-use basis to bring down waiting lists - as was the case under New Labour.

Our City editor Mark Kleinman  has some breaking news tonight about Thames Water.

He has heard that shareholders seem to be unwilling to stump up funds of up to £3bn to secure the utility's future.

Mark stresses to Sophy the company is not on the brink of collapse - but this is a major headache for the company as it has massive debts.

"This will raise fresh questions about whether Thames Water can survive as a solvent, independent company or whether it will have to be nationalised temporarily by the government," Mark says.

"Now, that would be a huge political headache for Rishi Sunak's administration, because it would come just months before the general election.

"It would ultimately cost taxpayers billions of pounds."

Read Mark's story below...

Over a year ago, Rishi Sunak made five pledges for voters to judge him on.

The prime minister met his pledge to halve inflation by the end of 2023.

However, as evidenced by the latest figures on small boat crossings (see 11.20 post), he is faring less well with his other pledges.

With the general election approaching, how is Mr Sunak doing on delivering on his promises?

You can see the progress for yourself below.

Sophy asks our panel why Rishi Sunak pledged to stop the boats when he could not do it.

Former Conservative minister Lord Vaizey says, that while he disagrees with Sophy's thesis, he agrees that it was a "mistake" to make the pledge.

There's nothing wrong with a politician making a promise, Lord Vaizey says, but the prime minister has driven "himself into a cul-de-sac".

James Schneider , a former Labour adviser in the Corbyn period, says he is not sure what the current Labour Party's policy on the issue is.

He says the opposition seem to be "duck for cover and let the government make a mess of it".

Mr Schneider says the row has the "intricate detail" of the Brexit debate, but it can't be voted on in such a way.

Mr Gullis sets out why he is different from former deputy chair Lee Anderson, who has defected to Reform UK.

Mr Anderson was a Labour councillor before he joined the Conservatives.

Mr Gullis says: "I've been a member of the Conservative Party since I was 18 years old.

"I've been an association officer, a councillor, and now a member of parliament.

"I've obviously been out with my members and across other members and across the country delivering leaflets, knocking on doors. 

"I'm proud of the Conservative Party and what we've done and what we've delivered."

He says he "will go into battle" for Mr Sunak.

"I'll tell you something about Rishi that not many people know. 

"My son went into hospital last year, and he was really struggling to breathe, and I only told one whip because I left the chamber and dashed in the car to get back up here to Stoke-on-Trent.

"Ten o'clock that night, Rishi texted me to ask how my child was doing. He checked in again at 7am the next morning and 10pm the next evening, and he did that day in, day out for five days in a row until my child was back home. 

"That shows you the measure of the man, that shows you the decency, the humility, the caring nature he has for his colleagues as well as the country as a whole."

Jonathan Gullis is the newly minted deputy chair of the Conservative Party, and is speaking to the Politics Hub with Sophy Ridge.

He has taken up the role after Lee Anderson, a former deputy chair, defected to Reform UK.

Speaking about the record numbers of people who have crossed the Channel this year, Mr Gullis blames "pesky peers" - who are "predominantly Labour" - for blocking the Safety of Rwanda Bill.

Sophy puts it to Mr Gullis that he "blocked" the bill as well - as he abstained from voting for it previously.

"Sophy, there's a very clear difference here between saying that you want something to work, you believe in Rwanda, as I do," he says.

"And I want Rwanda to work as well, as I do, as the prime minister does.

"But obviously I had, with that particular bill, a couple of amendments that I wanted to see be adopted. 

"They weren't adopted - I was true to my word. 

"I said that I was going to not block the bill, unlike the Labour Party, who continue to block it at every turn, every corner."

Politics Hub With Sophy Ridge   is live now on Sky News.

The fast-paced programme dissects the inner workings of Westminster, with interviews, insights, and analysis - bringing the audience into the corridors of power.

Sophy will be joined by  Jonathan Gullis , a Tory MP and a newly minted deputy party chair.

Also on the show is  Kwajo Tweneboa , a housing and social issues campaigner.

On Sophy's panel tonight are:

• Lord Ed Vaizey , former Conservative minister;
• James Schneider , the former chief strategist for Jeremy Corbyn.

Watch Politics Hub  from Monday to Thursday on Sky channel 501, Virgin channel 602, Freeview channel 233, on the  Sky News website  and  app  or on  YouTube .

If historical precedent is anything to go by, in an election year, right now you would expect the polls to be narrowing.

But they're not. If anything they're moving in the opposite direction… the gap between Labour and the Conservatives is growing, not shrinking.

Professor John Curtice - the man who the phrase "election guru" was invented for - puts the chances of a Labour victory at the next general election at 99%. 99%!

So what's going on? Why aren't the polls narrowing?

Well, I've got a theory.

We're underestimating the impact of Rishi Sunak's failure to meet his five pledges, the criteria that he's asked us all to judge him on, after all.

Other than his promise to halve inflation - a pledge he is meeting - it's not a pretty scorecard.

Growth, flatlining.

NHS waiting lists, not coming down.

Debt has gone up - not down - since he promised to reduce it.

And there's nothing that symbolises Mr Sunak's failure to deliver on his pledges more than his vow to stop the boats.

Today, new figures show that 2024 has been the worst year yet for the number of migrants crossing the channel in small boats.

So I feel like the impact of the prime minister's failure to meet his pledges is being underestimated.

As the pollster James Johnson points out, "the PM doesn’t deliver his promises" is one of the most common reasons people give in focus groups for switching away from the Conservatives.

If you fail to deliver on four of the five pledges you've made to the country, you can't be surprised when the country doesn't vote for you.

The first three months of this year have seen, according to provisional figures from the Home Office, the highest number of small boat arrivals ever, at 4,644. 

Not by very much, the number for the first three months of 2022 was 4,548 - 96 fewer. A few days of poorer weather could have swung it the other way, but the point is it's moving in the wrong direction for a prime minister who promised to Stop the Boats. 

If you promise to reduce the numbers as one of your key pledges, then you get blamed for every failure to do so. 

Former immigration minister Robert Jenrick, who resigned from government last year, described his party's immigration policy in a tweet as "the triumph of hope over experience". 

As Tories head off on the local election campaign trail in glum spirits, the message from Downing Street is this "migration emergency" can only be solved by getting flights to Rwanda. 

And the legislation that might - possibly - allow that to happen won't be debated again until after Easter, after a string of defeats by peers. 

Time is ticking down. 

"It's a mess, voters raise small boats all the time, and they know there's no deterrent," one former cabinet minister tells me. 

"Number 10 seem to think if they just keep saying the numbers will go down, maybe they will." 

Plenty of initiatives been launched, as the Home Office point out, but MPs question whether they are effective. 

A year ago, the prime minister agreed a deal with France worth £500m to step up patrols on their side of the Channel and fund a new detention centre - Rishi Sunak hailing it as progress in his small boats fight. 

Despite a flurry of effort in government to reduce the backlog of asylum claims and close migrant hotels, in favour of bigger sites such as former military bases, it was revealed last week this may cost even more money. 

The numbers are already eye-watering. The National Audit Office noted that in the year to March 2024, the Home Office expects to spend £4.7bn on asylum support, including £3.1bn on hotels. 

Immigration is not the top issue for most voters, with the cost of living and the NHS regularly leading the list of voters' concerns, but it lurks in third place. 

For Conservative supporters, concern at the government's handling of immigration, or mishandling, has been rising steadily. 

With the additional challenge from the Reform Party, which wants stronger border controls, the prime minister heads into local elections with another of his five pledges looking very shaky. 

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