how does a business plan help entrepreneurs

Importance of Business Plan to an Entrepreneur: Guide to Implement

Importance of Business Plan to an Entrepreneur – A business plan is an essential road map that entrepreneurs use to navigate the difficult process of starting and expanding a profitable firm. It performs as a strategic instrument for outlining the goals. Also, serve as a financial prediction of a company.

Whether you’re just starting or an experienced entrepreneur looking to sharpen your strategies, this guide will provide you with the knowledge and instructions you need to harness the power of a well-structured business plan.

Importance of a Business Plan to an Entrepreneurs

A strong business plan’s importance cannot be overstated since it provides entrepreneurs with a comprehensive framework for making decisions, attracting investors , securing funding, and navigating the dynamic business world. This article will cover the significance of a business plan. Also, offer practical guidance on how entrepreneurs can utilize it to advance their ventures. Let’s discuss what are the importance of a business plan to an entrepreneur.

A Business Plan Provides a Roadmap for a Business

A business plan may be compared to a road map that directs businesses toward commercial success. It acts as a strategy document that explains the objectives, strategies, and activities necessary to establish and expand a successful company. A business plan offers entrepreneurs a clear path to follow to accomplish their business goals. It is just like a roadmap that aids travelers in navigating new roads and arriving at their destination.

Picture you are going on a road trip to a dream destination. Before setting off, you would carefully plan your route, mark critical milestones, estimate travel time, and consider alternative paths in case of detours. Similarly, a business plan helps entrepreneurs chart their course by defining their vision, identifying target markets, assessing competition, setting financial goals, and mapping out strategies to overcome challenges.

Read – Can Anyone Be an Entrepreneur

Helps Entrepreneurs to Define Their Objectives

A business plan is a valuable tool that helps entrepreneurs in defining their objectives clearly. It offers business owners a well-organized framework for expressing their vision and establishing clear objectives. Entrepreneurs that go through the process of writing a business plan find clarity and concentration in their goals.

Imagine that an entrepreneur wishes to launch a sustainable clothing line. They would specify their goals through the business planning process, such as advancing ethical fashion, minimizing environmental effects, and making a good social impact. The business plan would outline these objectives and establish strategies and action steps to align the business activities with these goals.

Defined objectives in a business plan help entrepreneurs think critically, establish purpose, and guide decision-making. By setting SMART objectives, entrepreneurs can track performance, evaluate strategies, and make necessary adjustments to achieve desired outcomes. For example, an e-commerce business can increase online sales by 50% within a year, allowing regular monitoring, analysis, and adjustments to achieve its target.

Importance of Entrepreneurs to Identifying Their Target Market

When determining the target market for their goods or services, businesses place a lot of weight on their business plans. A business plan aids entrepreneurs in comprehending their potential clients, their demands, and their preferences by doing in-depth market research and analysis. This knowledge is essential for creating efficient marketing plans and modifying the company’s product offerings to satisfy the needs of the target market.

Let’s use the example of an entrepreneur who wants to launch a line of fitness clothes to demonstrate the significance of this. They would do market research as part of the process of writing a business plan to pinpoint their target consumers, such as fitness fanatics, gym visitors, or athletes. The business plan would include insightful information on the target market’s demographics, hobbies, and purchase patterns. With this knowledge, the business owner may carefully coordinate their product offering, price, and marketing messaging to appeal to the determined target demographic.

Entrepreneurs may focus on the appropriate audience, avoid one-size-fits-all techniques, and customize their products, services, and marketing strategies to their consumers’ needs by determining their target market. This aids in comprehending the competitive landscape, spotting gaps, and creating distinctive value propositions that appeal to the target market.

Read – Qualities of a Good Businessman

Helps Entrepreneurs to Assesses Competition

A business plan is a valuable tool that helps entrepreneurs assess their competition and gain a deeper understanding of the market landscape in which they operate. By following a structured approach, a business plan guides entrepreneurs on how to effectively analyze and evaluate their competitors.

A business plan helps entrepreneurs identify their key competitors by conducting research and gathering information about their products or services, pricing strategies, target market, marketing tactics, distribution channels, and customer reviews. This helps entrepreneurs understand their unique selling points and position themselves in the market. Entrepreneurs can compare their strengths and weaknesses to those of their competitors, identifying areas for differentiation. They also analyze market demand and customer preferences to identify gaps or underserved segments, tailoring their products or services to cater to these needs. A business plan guides entrepreneurs in positioning themselves against their competition, developing a unique value proposition that resonates with the target market. This roadmap helps entrepreneurs stay agile and adapt their strategies accordingly.

Importance to Evaluate Feasibility

When assessing the viability of their business idea, entrepreneurs must give the highest priority to their business plans. It acts as a helpful road map for business owners as they determine whether their idea is workable and has the potential to succeed.

Entrepreneurs should undertake in-depth market research and analysis, create financial predictions, perform a SWOT analysis, examine operational factors, and seek professional guidance to determine whether a company strategy is feasible. These steps help determine the feasibility of the business idea, identify potential blind spots, and develop contingency plans. By addressing factors such as resource availability, skills, expertise, infrastructure requirements, and operational processes, entrepreneurs can develop contingency plans and strategies to mitigate risks and ensure the venture’s success.

Read – Benefits of Being an Entrepreneur

Importance of Entrepreneurs to Attract Investors

A business plan holds immense importance for entrepreneurs when it comes to attracting investors to support their venture. A well-crafted business plan serves as a persuasive tool that demonstrates the potential of the business and convinces investors to provide financial backing.

To attract investors, entrepreneurs should create a compelling executive summary, detailed business description, market analysis, competitive advantage, financial projections, marketing and sales strategy, management team, risk assessment and mitigation, and clear exit strategy. These elements help investors understand the business’s growth potential, market potential, and competitive advantage.

Helps Entrepreneurs to Secures Their Funding

A business plan is essential for assisting entrepreneurs in obtaining finance for their projects. It acts as a roadmap that details the company’s potential, financial estimates, and growth plans. Entrepreneurs should write a succinct executive summary, thorough business description, market and competitive analysis, financial projections, funding requirements, marketing and sales strategy, management team, risk assessment, and mitigation, and supporting documents to obtain funding through a business plan.

These elements help investors and lenders understand the business’s unique value proposition, target market, revenue potential, and funding requirements. By presenting realistic financial projections, well-supported financial projections, and a well-thought-out marketing and sales strategy, entrepreneurs can secure funding and attract investors and lenders.

Read – Common Myths about Entrepreneurs

Business Plan Guides Entrepreneurs to Resource Allocation

A business plan serves as a valuable tool that guides entrepreneurs in allocating their resources effectively. It provides a clear roadmap for resource allocation by outlining the key areas of the business that require attention and investment.

To effectively allocate resources in a business plan, entrepreneurs should identify resource needs, set priorities, allocate financial resources based on projections and budget, allocate human resources based on skills and expertise, optimize time management, monitor and adjust resource allocation, seek efficiency and optimization, and regularly review and update the plan to reflect changes in resource needs. By doing so, entrepreneurs can optimize their resources and maximize the value derived from available resources. Regularly reviewing and updating the business plan ensures that resources are allocated effectively and efficiently.

Importance to Facilitate Decision-Making

A business plan holds great importance for entrepreneurs in facilitating effective decision-making throughout their entrepreneurial journey. It provides a framework that helps entrepreneurs make informed decisions by considering various factors and evaluating potential outcomes.

To effectively use a business plan for decision-making, entrepreneurs should define goals and objectives, gather relevant information, evaluate alternatives, consider financial implications, analyze risks and mitigation strategies, seek input from experts, regularly review and update the plan, and trust intuition and vision. This balances analytical thinking with an entrepreneurial instinct, ensuring long-term sustainability and informed decisions.

Read – Entrepreneur Mindset Books

Identifies Risks and Mitigation Strategies

A business plan plays a vital role in helping entrepreneurs identify risks and develop effective mitigation strategies. By carefully considering potential challenges and uncertainties, entrepreneurs can proactively address them and minimize their impact on the business.

To identify risks and develop mitigation strategies in a business plan, conduct a comprehensive risk assessment, analyze the impact and likelihood of risks, and develop specific strategies. Allocate resources, including financial, personnel, and time, to support the implementation of these strategies. Regularly monitor and update the business plan, seeking external expertise or consulting with industry professionals to gain insights. Communicate the identified risks and mitigation strategies clearly to stakeholders, including investors, lenders, and partners, to demonstrate professionalism and confidence in the business.

Importance of Entrepreneurs to Assists in Team Building

A business plan holds great importance for entrepreneurs in assisting them with team building, as it provides a clear framework for recruiting, developing, and managing their team effectively.

Entrepreneurs can use a business plan to aid in team building by defining roles and responsibilities, establishing recruitment criteria, developing a training and development plan, fostering a collaborative culture, setting performance goals and metrics, regularly evaluating and providing feedback, and fostering leadership and empowerment. These steps help attract and select the right individuals, align with the business plan’s objectives, and promote a supportive environment for innovation and creativity.

Read – Entrepreneurship Books for Students

Business Plan Supports Marketing and Sales Efforts

A business plan holds significant importance in supporting marketing and sales efforts for entrepreneurs. It provides a strategic roadmap for effectively promoting products or services and attracting customers. A business plan helps understand the target market, define the unique selling proposition (USP), develop marketing strategies, allocate budgets, monitor and measure results, and adapt and evolve.

By conducting thorough market research, defining the USP, and focusing on channels and tactics, entrepreneurs can effectively reach and engage their target audience. Regularly updating the business plan to reflect market trends and competitors can help entrepreneurs stay competitive and adapt their strategies accordingly.

Guides Product or Service Development

A business plan is essential for directing entrepreneurs as they create their goods or services. It offers a methodical way to determine consumer demands, specify product characteristics, and create a schedule for product development.

A business plan can guide product or service development by identifying customer needs, defining product or service features, setting development milestones, determining resource requirements, conducting testing and iteration, and integrating marketing and launch strategies. This helps entrepreneurs stay focused, track progress, and ensure the timely completion of activities. The plan should also outline the necessary funding, collaborations, and resources needed for the development process. By incorporating continuous improvement and iterative development, entrepreneurs can create a high-quality offering that meets or exceeds customer expectations.

Read – Green Innovation

Importance of Entrepreneurs to Manage Finances Effectively

A business plan holds great importance for entrepreneurs when it comes to managing finances effectively. It offers a thorough foundation for comprehending the financial facets of the firm and aids business owners in making defensible choices to maximize financial resources.

Entrepreneurs should construct a financial overview, define financial goals and objectives, develop a budget, track financial performance, plan for managing cash flow, and seek expert financial assistance to manage their money efficiently. This helps entrepreneurs forecast future financial needs, allocate resources effectively, and identify potential issues early on. By implementing these strategies, entrepreneurs can ensure the sustainability of their businesses and make informed decisions about their financial future.

Business Plan Measures Progress and Success

A business plan holds significant importance for entrepreneurs in measuring their progress and success. They may compare their accomplishments to it as a standard to see if they are progressing in the correct path.

Establish Key Performance Indicators (KPIs) that are in line with the goals of the business’s plan to successfully measure the growth and success of entrepreneurs. Regularly track and monitor KPIs to assess progress and make informed decisions. Conduct periodic reviews to evaluate progress against the plan, identify areas for adjustments or course corrections, and celebrate milestones and successes. Continuously update and evolve the business plan to reflect evolving goals, strategies, and market conditions.

Read – Difference Between Entrepreneur and Intrapreneur

Business Plan Importance to Enhance Credibility

A business plan plays a crucial role in enhancing the credibility of entrepreneurs and their ventures. It demonstrates to stakeholders, including potential investors, lenders, partners, and even customers, that entrepreneurs have a well-thought-out and strategic approach to their business.

To enhance entrepreneurs’ credibility, a well-presented business plan should present a professional image, conduct thorough market research, highlight the unique selling proposition, provide detailed financial projections, incorporate risk analysis and mitigation strategies, seek third-party validation, and regularly update and refine the plan. This shows credibility and commitment to continuous improvement, demonstrating the business’s ability to adapt and thrive in the ever-changing landscape.

Business Plan Provides a Basis for Partnerships

When forming partnerships, entrepreneurs place a lot of weight on their business plans. It offers a strong platform for prospective partners to comprehend the company. Also, its objectives, and the value it brings.

To successfully attract and establish partnerships, entrepreneurs should clearly define their business, highlight their target customers, market opportunities, and competitive advantages, outline partnership opportunities, develop partnership plans, and use the business plan as a communication tool. This aids potential partners in comprehending the goals and potential of the company as well as the growth potential of the market. Entrepreneurs may successfully convey their vision, ambitions, and potential to potential partners by emphasizing the advantages of collaboration, promoting development and success for both parties.

Read – Imitative Entrepreneurship

Importance of Entrepreneurs to Do Business Expansion

A business plan plays a crucial role for entrepreneurs when it comes to business expansion. It provides a strategic framework and guidance for expanding operations, entering new markets, or launching new products or services.

Entrepreneurs can use a business plan to facilitate expansion by evaluating current performance, defining expansion goals and objectives, conducting market research, developing a strategic expansion plan, assessing financial requirements, monitoring and adjusting the plan as needed, and continuously monitoring and adjusting the plan to ensure success. This approach helps businesses navigate market dynamics, identify strengths and weaknesses, and adapt to unforeseen challenges or opportunities.

Guides Entrepreneurs to Succession Planning

A business plan is of significant importance when it comes to guiding entrepreneurs in succession planning, which involves preparing for the future transition of leadership and ownership within a business.

To effectively use a business plan for succession planning, assess current leadership and ownership, identify potential successors, define succession goals and timeline, develop a succession plan, communicate with stakeholders, and regularly review and update the plan. This process ensures alignment with the long-term vision and aspirations of the business and its stakeholders. Regularly assess the progress of potential successors and provide development opportunities to enhance their skills and knowledge.

Importance to Increases Self-Awareness

A business plan is crucial for entrepreneurs because it may help them become more self-aware and better grasp their advantages, disadvantages, and possibilities for growth.

Entrepreneurs should consider their objectives and values, perform a SWOT analysis, create reasonable company goals, ask for criticism and mentoring, constantly evaluate their success, and change to improve their self-awareness. By identifying strengths, weaknesses, opportunities, and threats, entrepreneurs can create a clear vision and align their business plans with their values. By seeking feedback and mentoring, entrepreneurs can develop a stronger self-awareness and improve their business strategies.

An effective business plan is a crucial tool for entrepreneurs . It gives them a path to success. A successful business plan may help entrepreneurs define clear goals. Also, identify their target market, analyze the competition, determine whether their idea is feasible, draw in investors, manage funds, and track their progress. It functions as a manual to assist business owners make wise decisions, manage resources effectively, and adjust to changing conditions.

A solid business plan is crucial for entrepreneurs to navigate the complex commercial world, guiding their companies toward expansion, profitability, and long-term success. It should be evaluated and revised regularly to reflect company demands, serving as a compass for entrepreneurs.

FAQ about the Importance of Business Plans to Entrepreneurs

Why is a business plan important.

Because it gives business owners a clear road map for their venture, a business plan is crucial. It aids in establishing goals, locating target markets, evaluating rivalry, obtaining finance, and coming to wise conclusions. Describing their vision and plans, it functions as a strategic instrument that leads business owners toward success.

When is the Best Time to Write a Business Plan?

Typically, before launching a new firm. It is the ideal time to draft a business plan. Likewise, when a current firm is expected to undergo significant adjustments. Be sure you have a solid strategy in place before approaching investors, looking for finance. Especially, starting a business. Making a business plan, though, is never too late, and you can always change it as your company grows.

What is a Business Plan’s Main Objective?

A business plan’s main objective is to outline an organization’s goals, strategies, and financial predictions. It helps business owners communicate their vision, pinpoint their target market, assess the profitability of their endeavor, entice investors, and allocate their resources effectively. It serves as a compass for monitoring growth and making adjustments as needed.

What are the Typical Challenges of Writing a Business Plan?

Entrepreneurs face hurdles while drafting a business plan, such as limited time and resources, writing skills, market research, financial predictions, and strategic planning. The complexity of the process may be increased by using accurate market data, reasonable estimates, strategic planning, clear writing, and managing other elements of the firm.

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How to make a business plan

Table of Contents

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

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

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

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

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

What is a business plan?

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

Products or services

Target market

Competitors

Marketing and sales strategies

Financial plan

Management team

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

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

Business plan vs. business model canvas

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

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

Key partnerships

Key activities

Key propositions

Customer relationships

Customer segments

Key resources

Cost structure

Revenue streams

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

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

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

Why is a business plan important?

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

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

Helps to define the business goals and objectives

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

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

Guides decision-making

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

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

Attracts investors and secures funding

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

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

Identifies potential challenges and risks

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

Is there enough demand for my product or service?

Will I have enough capital to start my business?

Is the market oversaturated with too many competitors?

What will happen if my marketing strategy is ineffective?

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

Provides a basis for measuring success

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

Are we where we want to be at this point?

Did we achieve our goals?

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

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

How to make a business plan step by step

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

1. Create an executive summary

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

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

2. Write your company description

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

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

3. Conduct a market analysis

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

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

What does the current market look like?

Who are your competitors?

What are they offering?

What will give you a competitive advantage?

Who is your target market?

What are they looking for and why?

How will your product or service satisfy a need?

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

4. Describe your products and services

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

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

5. Design a marketing and sales strategy

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

Pricing strategy

Advertising and promotional tactics

Sales channels

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

6. Determine budget and financial projections

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

Some details to include in this section are:

Startup costs

Revenue projections

Profit and loss statement

Funding you have received or plan to receive

Strategy for raising funds

7. Set the organization and management structure

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

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

8. Make an action plan

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

Types of business plans

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

Startup business plan

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

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

Strategic business plan

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

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

Operational business plan

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

Organizational structure

Staffing plan

Production plan

Quality control

Inventory management

Supply chain

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

Growth-business plan

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

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

One-page business plan

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

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

Best practices for how to make a good business plan

Here are some additional tips for creating a business plan:

Use a template

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

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

Be practical

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

Be specific

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

Be thorough with your research

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

Get input from others

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

Review and revise regularly

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

Create a winning business plan to chart your path to success

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

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

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

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What Is a Business Plan?

Understanding business plans, how to write a business plan, common elements of a business plan, how often should a business plan be updated, the bottom line, business plan: what it is, what's included, and how to write one.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

A business plan is a document that details a company's goals and how it intends to achieve them. Business plans can be of benefit to both startups and well-established companies. For startups, a business plan can be essential for winning over potential lenders and investors. Established businesses can find one useful for staying on track and not losing sight of their goals. This article explains what an effective business plan needs to include and how to write one.

Key Takeaways

• A business plan is a document describing a company's business activities and how it plans to achieve its goals.
• Startup companies use business plans to get off the ground and attract outside investors.
• For established companies, a business plan can help keep the executive team focused on and working toward the company's short- and long-term objectives.
• There is no single format that a business plan must follow, but there are certain key elements that most companies will want to include.

Investopedia / Ryan Oakley

Any new business should have a business plan in place prior to beginning operations. In fact, banks and venture capital firms often want to see a business plan before they'll consider making a loan or providing capital to new businesses.

Even if a business isn't looking to raise additional money, a business plan can help it focus on its goals. A 2017 Harvard Business Review article reported that, "Entrepreneurs who write formal plans are 16% more likely to achieve viability than the otherwise identical nonplanning entrepreneurs."

Ideally, a business plan should be reviewed and updated periodically to reflect any goals that have been achieved or that may have changed. An established business that has decided to move in a new direction might create an entirely new business plan for itself.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. These include being able to think through ideas before investing too much money in them and highlighting any potential obstacles to success. A company might also share its business plan with trusted outsiders to get their objective feedback. In addition, a business plan can help keep a company's executive team on the same page about strategic action items and priorities.

Business plans, even among competitors in the same industry, are rarely identical. However, they often have some of the same basic elements, as we describe below.

While it's a good idea to provide as much detail as necessary, it's also important that a business plan be concise enough to hold a reader's attention to the end.

While there are any number of templates that you can use to write a business plan, it's best to try to avoid producing a generic-looking one. Let your plan reflect the unique personality of your business.

Many business plans use some combination of the sections below, with varying levels of detail, depending on the company.

The length of a business plan can vary greatly from business to business. Regardless, it's best to fit the basic information into a 15- to 25-page document. Other crucial elements that take up a lot of space—such as applications for patents—can be referenced in the main document and attached as appendices.

These are some of the most common elements in many business plans:

• Executive summary: This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations.
• Products and services: Here, the company should describe the products and services it offers or plans to introduce. That might include details on pricing, product lifespan, and unique benefits to the consumer. Other factors that could go into this section include production and manufacturing processes, any relevant patents the company may have, as well as proprietary technology . Information about research and development (R&D) can also be included here.
• Market analysis: A company needs to have a good handle on the current state of its industry and the existing competition. This section should explain where the company fits in, what types of customers it plans to target, and how easy or difficult it may be to take market share from incumbents.
• Marketing strategy: This section can describe how the company plans to attract and keep customers, including any anticipated advertising and marketing campaigns. It should also describe the distribution channel or channels it will use to get its products or services to consumers.
• Financial plans and projections: Established businesses can include financial statements, balance sheets, and other relevant financial information. New businesses can provide financial targets and estimates for the first few years. Your plan might also include any funding requests you're making.

The best business plans aren't generic ones created from easily accessed templates. A company should aim to entice readers with a plan that demonstrates its uniqueness and potential for success.

2 Types of Business Plans

Business plans can take many forms, but they are sometimes divided into two basic categories: traditional and lean startup. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

• Traditional business plans : These plans tend to be much longer than lean startup plans and contain considerably more detail. As a result they require more work on the part of the business, but they can also be more persuasive (and reassuring) to potential investors.
• Lean startup business plans : These use an abbreviated structure that highlights key elements. These business plans are short—as short as one page—and provide only the most basic detail. If a company wants to use this kind of plan, it should be prepared to provide more detail if an investor or a lender requests it.

Why Do Business Plans Fail?

A business plan is not a surefire recipe for success. The plan may have been unrealistic in its assumptions and projections to begin with. Markets and the overall economy might change in ways that couldn't have been foreseen. A competitor might introduce a revolutionary new product or service. All of this calls for building some flexibility into your plan, so you can pivot to a new course if needed.

How frequently a business plan needs to be revised will depend on the nature of the business. A well-established business might want to review its plan once a year and make changes if necessary. A new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.

What Does a Lean Startup Business Plan Include?

The lean startup business plan is an option when a company prefers to give a quick explanation of its business. For example, a brand-new company may feel that it doesn't have a lot of information to provide yet.

Sections can include: a value proposition ; the company's major activities and advantages; resources such as staff, intellectual property, and capital; a list of partnerships; customer segments; and revenue sources.

A business plan can be useful to companies of all kinds. But as a company grows and the world around it changes, so too should its business plan. So don't think of your business plan as carved in granite but as a living document designed to evolve with your business.

Harvard Business Review. " Research: Writing a Business Plan Makes Your Startup More Likely to Succeed ."

U.S. Small Business Administration. " Write Your Business Plan ."

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• What Is a Marketing Plan? Types and How to Write One 5 of 25
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• How to Write a Business Plan for a Loan 9 of 25
• Business Startup Costs: It’s in the Details 10 of 25
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How to Write a Business Plan: Step-by-Step Guide + Examples

Noah Parsons

24 min. read

Updated April 17, 2024

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

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

• The basics of business planning

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

You understand that planning helps you: 

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

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

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

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

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

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

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

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

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

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

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• What to include in your business plan

Executive summary

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

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

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

Your executive summary should include:

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

Dig Deeper: How to write an effective executive summary

Products and services description

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

This is usually called a problem and solution statement .

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

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

Market analysis

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

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

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

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

Related: Target market examples

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

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

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

Dig Deeper: Learn how to write a market analysis

Competitive analysis

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

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

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

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

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

Marketing and sales plan

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

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

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

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

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

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

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

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

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

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

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

Business operations

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

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

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

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

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

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

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

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

Key milestones and metrics

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

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

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

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

Possible milestones might be:

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

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

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

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

Dig Deeper: How to use milestones in your business plan

Organization and management team

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

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

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

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

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

• Sole proprietor
• Partnership

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

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

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

Financial plan

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

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

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

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

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

Dig Deeper: How to create financial forecasts and budgets

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

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

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

Dig Deeper : What to include in your business plan appendix

Optional: Business plan cover page

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

Your cover page should be simple and include:

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

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

Dig Deeper: How to create a business plan cover page

How to use AI to help write your business plan

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

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

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

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

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

• Writing tips and strategies

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

Determine why you are writing a business plan

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

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

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

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

Keep things concise

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

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

Have someone review your business plan

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

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

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

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

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

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

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

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

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

Common pitfalls and how to avoid them

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

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

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

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

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

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

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

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

Use your business plan to manage your business

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

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

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

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

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

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

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

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

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

Learn More: How to run a regular plan review

Free business plan templates and examples

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Free business plan template

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How to write a business plan FAQ

What is a business plan?

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

What are the benefits of a business plan?

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

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

What are the 7 steps of a business plan?

The seven steps to writing a business plan include:

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

What are the 5 most common business plan mistakes?

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

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

What questions should be answered in a business plan?

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

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

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

How long should a business plan be?

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

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

What are the different types of business plans?

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

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

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

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

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

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

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

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

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

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

Table of Contents

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

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Knowledge at Wharton Podcast

How entrepreneurs can create effective business plans, march 2, 2010 • 16 min listen.

When an entrepreneur has identified a potential business opportunity, the next step is developing a business plan for the new venture. What exactly should the new plan contain? How can the entrepreneur ensure it has the substance to find interest among would-be investors? In this installment of a series of podcasts for the Wharton-CERT Business Plan Competition, Wharton management professor Ian MacMillan explains that business plans must contain several crucial elements: They must articulate a market need; identify products or services to fill that need; assess the resources required to produce those products or services; address the risks involved in the venture; and estimate the potential revenues and profits.

An edited transcript of the interview appears below:

Knowledge at Wharton: Professor MacMillan, thank you for speaking with us about the necessity of entrepreneurs writing business plans. To start with a basic question, what exactly is a business plan?

Ian MacMillan: A business plan to me is a 25-page, maximum 30-page, document, which is a description, analysis and evaluation of a venture that you want to get funded by somebody. It provides critical information to the reader — usually an investor — about you, the entrepreneur, about the market that you are going to enter, about the product that you want to enter with, your strategy for entry, what the prospects are financially, and what the risks are to anybody who invests in the project.

Knowledge at Wharton: Could you explain some of these elements in a little more detail and describe how entrepreneurs can develop an effective business plan?

MacMillan: Let me start by saying that you probably want to avoid developing a detailed business plan unless you have done some initial work. Basically what happens is that by doing a little bit of work, you earn the right to do more work. The first thing I would do before you start a business plan is think about a concept statement. A concept statement is about three to five pages that you put together and share with potential customers or investors just to see if they think it’s worth the energy and effort of doing more detailed work.

The concept statement has a few pieces to it. You are going to have a description of the market need that has to be fulfilled; a description of the products or services that you think are going to fulfill that need; a description of the key resources that you think are going to be needed to provide that product or service; a specification of what resources are currently available; an articulation of what you think the risks are; and then a sort of rough and ready estimate of what you think the profits and profitability will be.

The idea is to put together this concept document and begin to share it around with people who are going to have to support your venture if you take it forward. This allows you to rethink as a result of feedback that you get. You might get word back from the various stakeholders — like potential customers or distributors — that this really wasn’t such a good idea after all. That saves you the energy and effort of putting together a big business plan.

Knowledge at Wharton: Assuming the concept statement works out and you want to move towards the business plan, what else would you need? And where can you find the information? Some information can be hard to locate, especially about your competitors.

MacMillan: It’s really important to go out and speak to your potential customers. You need to find the people who you think will buy your product and talk to them about what dissatisfies them with their current offerings. You should get a sense from them about who is providing the alternative at the moment. Remember, the world has gone for maybe 100,000 years without your idea — and people are getting by; they’re not dying. Something out there is servicing their need. So what is the closest competitive alternative to what you want to offer?

That is what you need to find out — and that involves talking and listening. And for all the enthusiasm you have for your venture or your idea, you really need to listen to people who are eventually going to write a check for it.

Before you go on to write a business plan, you have to do some more work. If the concept statement looks good, then the next step is to do a 15- to 20-page feasibility analysis. This means we are now going to take this idea to the next level. We’ve learned from potential customers and distributors. We’ve learned who the major competitors are. We’ve shaped the idea more clearly, and now we’re digging deeper.

The next challenge you face is to say, well, if you start this business, what evidence do you have that the market actually wants it? Who do you think would write a check for your product? You need to articulate what makes your product or your service feasible. What has to be done in order to make this thing real? You need a description of how you intend to enter the market, a description of who the major competitors are, a preliminary plan — a very rough plan — which specifies what you think your revenues and profits are going to be, and an estimate of what you think the required investment will be. And only then, once you have articulated that, and once again shared it with your stakeholder community, will you perhaps be able to go and write a business plan.

Knowledge at Wharton: Once you have done your feasibility analysis and assuming you get the go ahead from your stakeholders, what is the next step?

MacMillan: The idea of the business plan is to convince the stakeholders. First, what we need to do in a business plan is show that we understand the needs — the unmet needs — of potential customers. Second, we need to understand the strengths and weaknesses of the current most competitive offering out there. Third, we need to understand the skills and capabilities that you and your team have as entrepreneurs. Next we need to understand what the investors need to get out of their investment, because they have to put their money in and they need to have some kind of sense of what they are going to get in terms of returns. In addition, the investment needs to be competitive with alternative investments that the investors might make.

The most important idea in the business plan is to articulate and satisfy the different perspectives of various stakeholders. This process sets in motion some basic requirements in the business plan — to tee up right from the start — evidence that the customer will accept it. Probably a third of the ventures out there that fail are because some person came up with the right product that they thought the world would love and then found out that the customers couldn’t care less. What you want to try to do in a business plan is convince the reader that there are customers out there who will in fact buy the product — not because it’s a great product, but because they want it and they are willing to pay for it.

Moreover, you need to convince the reader that you have some kind of proprietary position that you can defend. You also need to convince your readers that you have an experienced and motivated management team and that you have the experience and the management capabilities to pull it off. You need to convince potential investors that they are going to get a better return than they could get elsewhere, so you need to estimate the net present value of this venture. You need to show that the risk they are taking will be accompanied by appropriate returns for that risk. If we look at the contents of a typical business plan, you need to be able to articulate all these issues in some 25 to 30 pages. People get tired if they have to read too much.

Now let’s look at the various components of the business plan document:

First, you need an executive summary that grabs the attention of the potential investor. This should be done in no more than two pages. The executive summary is meant to convince the potential investor to read further and say, “Wow! This is why I should read more about this business plan.”

Next, you need a market analysis. What is the market? How fast is it growing? How big is it? Who are the major players? In addition, you need a strategy section. It should address questions such as, “How are you going to get into this market? And how are you going to win in that marketplace against current competition?”

After that, you need a marketing plan. How are we going to segment the market? Which parts of the market are we going to attack? How are we going to get the attention of that market and attract it to our product or service?

You also need an operations plan that answers the question, “How are we going to make it happen?” And you need an organization plan, which shows who the people are who will take part in the venture.

You need to list the key events that will take place as the plan unfolds. What are the major things that are going to happen? If your plan happens to be about a physical product, are you going to have a prototype or a model? If it happens to be a software product, are you going to have a piece of software developed — a prototypical piece of software? What are the key milestones by which investors can judge what progress you are making in the investment? Remember that you will not get all your money up front. You will get your funds allocated contingent on your ability to achieve key milestones. So you may as well indicate what those milestones are.

You should also include a hard-nosed assessment of the key risks. For example, what are the market risks? What are the product risks? What are the financial risks? What are the competitive risks? To the extent that you are upfront and honest about it, you will convince your potential investors that you have done your homework. You need to also be able to indicate how you will mitigate these risks — because if you can’t mitigate them, investors are not going to put money into your venture.

After that, what you get down to is a financial plan where you basically do a five-year forecast of what you think the finances are going to be — maybe with quarterly data or projections for the first two years and annual for the next three years.

You need a pro forma profit and loss statement. You need a pro forma balance sheet if you have assets in the balance sheet. You need to have a pro forma cash flow. Your cash flow is important, because it is the cash flow that kills. You may have great profits on your books but you may run out of money — so you need a pro forma cash flow statement. And you need a financing plan that explains, as the project unfolds, what tranches of financing you will need and how will you go about raising that money.

Finally you need a financial evaluation that tells investors, if you make this investment, what is its value going to be to you as an investor. That is basically the structure of the plan.

Knowledge at Wharton: Let’s say you have written a business plan and presented it to your investors. How closely do you have to be tied to the plan? Does it mean that once you are executing against the plan, you should reject new opportunities you find because they are not part of your plan? Or should you build in some flexibility that allows you to explore emerging opportunities?

MacMillan: Is this an opportunity for me to speak about discovery-driven planning?

Knowledge at Wharton: Of course.

MacMillan: Okay. The thing about most entrepreneurial ventures is that your outcome is uncertain — because what you are doing is very new. It is very, very hard to predict what the actual outcome is going to be. One of the most fundamental flaws is that in the face of unfolding uncertainty, you single-mindedly and bloody-mindedly pursue the original objective.

The reality is that the true opportunity will emerge over time. What venture capitalists do is they will put a small amount of money into the project, allow the entrepreneur to enter that market space and then — contingent on performance and contingent on what apparent traction you can get in that market space — completely re-plan to find out what the true opportunity really is. It is insanity to insist that people actually meet their plan as it was originally written.

This doesn’t mean you compromise your objectives. The idea is that I want to keep on trying to meet my objectives, but how I meet them must change as the plan unfolds. That’s basically what led to all the work that Wharton has done in the last few years on discovery driven planning. It’s a way of thinking about planning that says, “I’m going to make small investments. If I’m wrong early, I can fail fast, fail cheap and move on. But as I find out what the true opportunity is, I can aggressively invest in what this opportunity is.”

Knowledge at Wharton: Could you give an example of a company that has used this discovery-driven planning process to take its business to the next level?

MacMillan: One company that has done the most in this area is Air Products. What they have been able to do is use discovery-driven planning to unfold completely different businesses from the ones that they were in. Air Products makes things like carbon dioxide and oxygen and nitrogen. It is a very old-line company. Using discovery-driven planning, they have been able to move aggressively into, for instance, the service sector. Once they recognized that they were able to deliver reliably and predictably in the face of uncertain demand, they developed a set of skills that allowed them to enter the service business where the return on investment and return on assets are far higher than putting a huge plant in place.

Knowledge at Wharton: Professor MacMillan, thanks so much.

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What is a Business Plan? And How Does it Benefit My Business?

Last Updated:  

March 22, 2024

Before you start up a business , or even before you make any major changes to your existing business, it's essential to have a solid plan in place. Your business plan will guide you through the critical early stages and help minimise mistakes - and if you're looking for investors, it could be the deciding factor that gets them on board with your idea.

While understanding the components and benefits of a business plan is crucial, creating one can be a daunting task, especially for new entrepreneurs. If you're unsure where to start or how to structure your plan effectively, consider seeking professional assistance from a business plan writing service . These services can provide expert guidance and support, ensuring that your business plan is not only comprehensive but also tailored to your specific business goals and needs.

But what exactly is a business plan? How do you write one? And how does it benefit your startup? In this article, we'll tackle all of those questions and more!

Key Takeaways on the Benefit of a B ‍ usiness Plans:

• Definition : A business plan is a written document that outlines your business's goals and the strategy to achieve them.
• Benefits : It serves as a roadmap, aids in securing funding, and assists in decision-making.
• Components : It typically includes sections like the executive summary, company description, market analysis, organisation and management, product line or services, marketing and sales strategy, and financial projections.
• Flexibility : Your business plan should be a flexible document that evolves with your business.
• Investor Attractio n: A well-structured plan can attract investors and other stakeholders.
• Strategic Planning : It helps to define your business strategy and establish a clear path for growth.
• Performance Monitoring : Regularly reviewing and updating your business plan allows for effective performance monitoring.

What is a business plan?

A business plan is a document that outlines your company's goals and objectives. It's a roadmap to help you achieve those goals, as well as a tool for making better decisions. A good business plan can help you attract investors, customers and other resources (like employees) by showing them what makes your company unique, and how it will grow in the future.

A well-written business plan should be clear enough for anyone from outside of your industry to understand, but detailed enough that it gives readers confidence in their investment or purchase decision.

Why do I need a business plan?

Your business plan is the roadmap that helps you achieve your goals. It's also a great tool for keeping track of your progress and clarifying where you need to focus your efforts in order to get results. As an entrepreneur, it's important to know what type of information should be included in your plan so you can create one that meets all of its needs.

Here are some benefits of having a well-written business plan:

• Helps secure funding (including loans)
• Provides direction for future growth and development
• Serves as an internal guide for employees who may not have been involved in developing the original document

How do I write a good business plan?

Writing a good business plan is not easy, but it's not impossible either. With several AI business plan generators available, you may create the first draft of your plan in no time. The most important thing is to make sure that your business plan is written in a clear and concise way.

The next step is to make sure that you address all the relevant information in your plan. As mentioned earlier, this includes:

• Your company's mission statement (your why)
• Your vision for the future of your company (what)
• A detailed description of how you will achieve this goal (how)

What does my business plan need to include?

Your business plan should include:

• Company description . This section should include the company's history, mission statement, and goals for the future. It should also include your background and experience in the industry.
• Market analysis . This section will analyse your target market and competitors, including any research you have done on them that's relevant to your business plan (such as demographic information). It will also include details about how much money it will take to get started with this venture, including startup costs such as equipment purchases or lease payments; operating expenses like utilities or payroll; expenses associated with marketing/promotion (printing flyers, paying for Google ads); etcetera...
• Product description & financial projections/requirements (or "Financials"). If applicable, and particularly if you're planning on launching a new product line, this part of your plan needs plenty of detail about what makes up each component of production costs so that investors can evaluate whether or not they'd like their money invested here vs elsewhere before committing funds up front!

A solid business plan will help you define and execute your startup's vision.

A solid business plan will help you define and execute your startup's vision. It's a roadmap to help you set goals, measure progress, and focus on what's most important to the success of your company.

A good plan also helps investors understand what they're investing in by providing a detailed description of how their money will be used to achieve certain results, and why those results are important for the company (and for them).

FAQs on Business Plans

Are you planning to start a business, or do you want to bring clarity to your existing operations? A business plan can be an indispensable tool to guide your path. This article outlines what a business plan is and the various ways it can benefit your business. For more specific queries, you can browse through our FAQ section.

How can a business plan benefit my business?

A business plan is a roadmap for your company. It helps you define your business goals, identify the resources you need to achieve those goals, and build a plan for achieving them. A well-written business plan will also help you make better decisions by providing a framework for evaluating opportunities and risks.

A good plan should include a mission statement - What's the purpose or mission of your company? Why does it exist? What does it do that makes it unique from other companies in its industry space (if applicable)? This section should be written in clear language that anyone could understand; think back to when we talked about defining what makes up a good elevator pitch earlier in this series!

What are the key components of a business plan?

A business plan is a detailed, written document that outlines the goals of your company and how you plan to achieve them. It's essentially a road map for your business, outlining what you want to accomplish in the short term (3-5 years) and long term (10+ years).

A good business plan will include all of these key components:

• Business summary - This section summarises who your company is, what industry you're in, what value proposition sets you apart from competitors, where customers come from and go through your sales funnel (e.g., website visitors turn into leads who become customers), etc. It should also include any existing marketing materials like brochures or infographics that explain how great it is working with clients using your services/products.
• Company overview - This section details everything about who owns/operates each department within the organisation, what their role is within those departments; whether they have any special skills needed for this particular job function; any certifications or licences necessary for performing these tasks at an efficient level without breaking laws along the way...etcetera ad nauseum! It may seem boring but trust me when I say this information helps potential investors understand exactly how much work needs done before they invest money into something (or someone).
• Market analysis - In order not only survive but thrive as an entrepreneur one must first understand what makes up "the competition" so one can better develop strategies around beating them head-on! This part explains why yours would be better than theirs by highlighting key differences between products offered by both sides; explaining why consumers choose one product over another based on price point alone.

How often should I update my business plan?

You should update your business plan at least annually, but more frequently if you are changing your business model or expanding it. It can also be beneficial to do so if you are adding or removing team members from the team (for example, if someone leaves). When updating a plan, consider which parts of it need adjusting based on changes in your industry and market conditions.

How can a business plan attract investors?

A business plan is a document that helps you determine your goals, market and customers. It's also a document that investors look at when deciding whether or not to invest in your company.

The best way to attract investors is by presenting them with an attractive and well thought out business plan.

How does a business plan help in strategic planning?

A business plan helps you to plan for the future of your business, which is essential when you are trying to attract investors or secure funding. A business plan is a written document that outlines the goals of your business, how you will achieve them and how you will measure your success.

A well-written and well-structured plan will help in strategic planning by providing:

• A clear vision and mission statement for your company
• An overview of the industry in which it operates along with its competitors' strengths and weaknesses
• An assessment of its strengths relative to those competitors' weaknesses

A business plan is an important tool for any entrepreneur, and it can help you to make better decisions. If you're just starting out with your own startup, then we recommend that you create a plan as soon as possible so that you know where your company is going in the future.

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11.4 The Business Plan

Learning objectives.

By the end of this section, you will be able to:

• Describe the different purposes of a business plan
• Describe and develop the components of a brief business plan
• Describe and develop the components of a full business plan

Unlike the brief or lean formats introduced so far, the business plan is a formal document used for the long-range planning of a company’s operation. It typically includes background information, financial information, and a summary of the business. Investors nearly always request a formal business plan because it is an integral part of their evaluation of whether to invest in a company. Although nothing in business is permanent, a business plan typically has components that are more “set in stone” than a business model canvas , which is more commonly used as a first step in the planning process and throughout the early stages of a nascent business. A business plan is likely to describe the business and industry, market strategies, sales potential, and competitive analysis, as well as the company’s long-term goals and objectives. An in-depth formal business plan would follow at later stages after various iterations to business model canvases. The business plan usually projects financial data over a three-year period and is typically required by banks or other investors to secure funding. The business plan is a roadmap for the company to follow over multiple years.

Some entrepreneurs prefer to use the canvas process instead of the business plan, whereas others use a shorter version of the business plan, submitting it to investors after several iterations. There are also entrepreneurs who use the business plan earlier in the entrepreneurial process, either preceding or concurrently with a canvas. For instance, Chris Guillebeau has a one-page business plan template in his book The $100 Startup . 48 His version is basically an extension of a napkin sketch without the detail of a full business plan. As you progress, you can also consider a brief business plan (about two pages)—if you want to support a rapid business launch—and/or a standard business plan.

As with many aspects of entrepreneurship, there are no clear hard and fast rules to achieving entrepreneurial success. You may encounter different people who want different things (canvas, summary, full business plan), and you also have flexibility in following whatever tool works best for you. Like the canvas, the various versions of the business plan are tools that will aid you in your entrepreneurial endeavor.

Business Plan Overview

Most business plans have several distinct sections ( Figure 11.16 ). The business plan can range from a few pages to twenty-five pages or more, depending on the purpose and the intended audience. For our discussion, we’ll describe a brief business plan and a standard business plan. If you are able to successfully design a business model canvas, then you will have the structure for developing a clear business plan that you can submit for financial consideration.

Both types of business plans aim at providing a picture and roadmap to follow from conception to creation. If you opt for the brief business plan, you will focus primarily on articulating a big-picture overview of your business concept.

The full business plan is aimed at executing the vision concept, dealing with the proverbial devil in the details. Developing a full business plan will assist those of you who need a more detailed and structured roadmap, or those of you with little to no background in business. The business planning process includes the business model, a feasibility analysis, and a full business plan, which we will discuss later in this section. Next, we explore how a business plan can meet several different needs.

Purposes of a Business Plan

A business plan can serve many different purposes—some internal, others external. As we discussed previously, you can use a business plan as an internal early planning device, an extension of a napkin sketch, and as a follow-up to one of the canvas tools. A business plan can be an organizational roadmap , that is, an internal planning tool and working plan that you can apply to your business in order to reach your desired goals over the course of several years. The business plan should be written by the owners of the venture, since it forces a firsthand examination of the business operations and allows them to focus on areas that need improvement.

Refer to the business venture throughout the document. Generally speaking, a business plan should not be written in the first person.

A major external purpose for the business plan is as an investment tool that outlines financial projections, becoming a document designed to attract investors. In many instances, a business plan can complement a formal investor’s pitch. In this context, the business plan is a presentation plan, intended for an outside audience that may or may not be familiar with your industry, your business, and your competitors.

You can also use your business plan as a contingency plan by outlining some “what-if” scenarios and exploring how you might respond if these scenarios unfold. Pretty Young Professional launched in November 2010 as an online resource to guide an emerging generation of female leaders. The site focused on recent female college graduates and current students searching for professional roles and those in their first professional roles. It was founded by four friends who were coworkers at the global consultancy firm McKinsey. But after positions and equity were decided among them, fundamental differences of opinion about the direction of the business emerged between two factions, according to the cofounder and former CEO Kathryn Minshew . “I think, naively, we assumed that if we kicked the can down the road on some of those things, we’d be able to sort them out,” Minshew said. Minshew went on to found a different professional site, The Muse , and took much of the editorial team of Pretty Young Professional with her. 49 Whereas greater planning potentially could have prevented the early demise of Pretty Young Professional, a change in planning led to overnight success for Joshua Esnard and The Cut Buddy team. Esnard invented and patented the plastic hair template that he was selling online out of his Fort Lauderdale garage while working a full-time job at Broward College and running a side business. Esnard had hundreds of boxes of Cut Buddies sitting in his home when he changed his marketing plan to enlist companies specializing in making videos go viral. It worked so well that a promotional video for the product garnered 8 million views in hours. The Cut Buddy sold over 4,000 products in a few hours when Esnard only had hundreds remaining. Demand greatly exceeded his supply, so Esnard had to scramble to increase manufacturing and offered customers two-for-one deals to make up for delays. This led to selling 55,000 units, generating $700,000 in sales in 2017. 50 After appearing on Shark Tank and landing a deal with Daymond John that gave the “shark” a 20-percent equity stake in return for $300,000, The Cut Buddy has added new distribution channels to include retail sales along with online commerce. Changing one aspect of a business plan—the marketing plan—yielded success for The Cut Buddy.

Link to Learning

Watch this video of Cut Buddy’s founder, Joshua Esnard, telling his company’s story to learn more.

If you opt for the brief business plan, you will focus primarily on articulating a big-picture overview of your business concept. This version is used to interest potential investors, employees, and other stakeholders, and will include a financial summary “box,” but it must have a disclaimer, and the founder/entrepreneur may need to have the people who receive it sign a nondisclosure agreement (NDA) . The full business plan is aimed at executing the vision concept, providing supporting details, and would be required by financial institutions and others as they formally become stakeholders in the venture. Both are aimed at providing a picture and roadmap to go from conception to creation.

Types of Business Plans

The brief business plan is similar to an extended executive summary from the full business plan. This concise document provides a broad overview of your entrepreneurial concept, your team members, how and why you will execute on your plans, and why you are the ones to do so. You can think of a brief business plan as a scene setter or—since we began this chapter with a film reference—as a trailer to the full movie. The brief business plan is the commercial equivalent to a trailer for Field of Dreams , whereas the full plan is the full-length movie equivalent.

Brief Business Plan or Executive Summary

As the name implies, the brief business plan or executive summary summarizes key elements of the entire business plan, such as the business concept, financial features, and current business position. The executive summary version of the business plan is your opportunity to broadly articulate the overall concept and vision of the company for yourself, for prospective investors, and for current and future employees.

A typical executive summary is generally no longer than a page, but because the brief business plan is essentially an extended executive summary, the executive summary section is vital. This is the “ask” to an investor. You should begin by clearly stating what you are asking for in the summary.

In the business concept phase, you’ll describe the business, its product, and its markets. Describe the customer segment it serves and why your company will hold a competitive advantage. This section may align roughly with the customer segments and value-proposition segments of a canvas.

Next, highlight the important financial features, including sales, profits, cash flows, and return on investment. Like the financial portion of a feasibility analysis, the financial analysis component of a business plan may typically include items like a twelve-month profit and loss projection, a three- or four-year profit and loss projection, a cash-flow projection, a projected balance sheet, and a breakeven calculation. You can explore a feasibility study and financial projections in more depth in the formal business plan. Here, you want to focus on the big picture of your numbers and what they mean.

The current business position section can furnish relevant information about you and your team members and the company at large. This is your opportunity to tell the story of how you formed the company, to describe its legal status (form of operation), and to list the principal players. In one part of the extended executive summary, you can cover your reasons for starting the business: Here is an opportunity to clearly define the needs you think you can meet and perhaps get into the pains and gains of customers. You also can provide a summary of the overall strategic direction in which you intend to take the company. Describe the company’s mission, vision, goals and objectives, overall business model, and value proposition.

Rice University’s Student Business Plan Competition, one of the largest and overall best-regarded graduate school business-plan competitions (see Telling Your Entrepreneurial Story and Pitching the Idea ), requires an executive summary of up to five pages to apply. 51 , 52 Its suggested sections are shown in Table 11.2 .

Are You Ready?

Create a brief business plan.

Fill out a canvas of your choosing for a well-known startup: Uber, Netflix, Dropbox, Etsy, Airbnb, Bird/Lime, Warby Parker, or any of the companies featured throughout this chapter or one of your choice. Then create a brief business plan for that business. See if you can find a version of the company’s actual executive summary, business plan, or canvas. Compare and contrast your vision with what the company has articulated.

• These companies are well established but is there a component of what you charted that you would advise the company to change to ensure future viability?
• Map out a contingency plan for a “what-if” scenario if one key aspect of the company or the environment it operates in were drastically is altered?

Full Business Plan

Even full business plans can vary in length, scale, and scope. Rice University sets a ten-page cap on business plans submitted for the full competition. The IndUS Entrepreneurs , one of the largest global networks of entrepreneurs, also holds business plan competitions for students through its Tie Young Entrepreneurs program. In contrast, business plans submitted for that competition can usually be up to twenty-five pages. These are just two examples. Some components may differ slightly; common elements are typically found in a formal business plan outline. The next section will provide sample components of a full business plan for a fictional business.

Executive Summary

The executive summary should provide an overview of your business with key points and issues. Because the summary is intended to summarize the entire document, it is most helpful to write this section last, even though it comes first in sequence. The writing in this section should be especially concise. Readers should be able to understand your needs and capabilities at first glance. The section should tell the reader what you want and your “ask” should be explicitly stated in the summary.

Describe your business, its product or service, and the intended customers. Explain what will be sold, who it will be sold to, and what competitive advantages the business has. Table 11.3 shows a sample executive summary for the fictional company La Vida Lola.

Business Description

This section describes the industry, your product, and the business and success factors. It should provide a current outlook as well as future trends and developments. You also should address your company’s mission, vision, goals, and objectives. Summarize your overall strategic direction, your reasons for starting the business, a description of your products and services, your business model, and your company’s value proposition. Consider including the Standard Industrial Classification/North American Industry Classification System (SIC/NAICS) code to specify the industry and insure correct identification. The industry extends beyond where the business is located and operates, and should include national and global dynamics. Table 11.4 shows a sample business description for La Vida Lola.

Industry Analysis and Market Strategies

Here you should define your market in terms of size, structure, growth prospects, trends, and sales potential. You’ll want to include your TAM and forecast the SAM . (Both these terms are discussed in Conducting a Feasibility Analysis .) This is a place to address market segmentation strategies by geography, customer attributes, or product orientation. Describe your positioning relative to your competitors’ in terms of pricing, distribution, promotion plan, and sales potential. Table 11.5 shows an example industry analysis and market strategy for La Vida Lola.

Competitive Analysis

The competitive analysis is a statement of the business strategy as it relates to the competition. You want to be able to identify who are your major competitors and assess what are their market shares, markets served, strategies employed, and expected response to entry? You likely want to conduct a classic SWOT analysis (Strengths Weaknesses Opportunities Threats) and complete a competitive-strength grid or competitive matrix. Outline your company’s competitive strengths relative to those of the competition in regard to product, distribution, pricing, promotion, and advertising. What are your company’s competitive advantages and their likely impacts on its success? The key is to construct it properly for the relevant features/benefits (by weight, according to customers) and how the startup compares to incumbents. The competitive matrix should show clearly how and why the startup has a clear (if not currently measurable) competitive advantage. Some common features in the example include price, benefits, quality, type of features, locations, and distribution/sales. Sample templates are shown in Figure 11.17 and Figure 11.18 . A competitive analysis helps you create a marketing strategy that will identify assets or skills that your competitors are lacking so you can plan to fill those gaps, giving you a distinct competitive advantage. When creating a competitor analysis, it is important to focus on the key features and elements that matter to customers, rather than focusing too heavily on the entrepreneur’s idea and desires.

Operations and Management Plan

In this section, outline how you will manage your company. Describe its organizational structure. Here you can address the form of ownership and, if warranted, include an organizational chart/structure. Highlight the backgrounds, experiences, qualifications, areas of expertise, and roles of members of the management team. This is also the place to mention any other stakeholders, such as a board of directors or advisory board(s), and their relevant relationship to the founder, experience and value to help make the venture successful, and professional service firms providing management support, such as accounting services and legal counsel.

Table 11.6 shows a sample operations and management plan for La Vida Lola.

Marketing Plan

Here you should outline and describe an effective overall marketing strategy for your venture, providing details regarding pricing, promotion, advertising, distribution, media usage, public relations, and a digital presence. Fully describe your sales management plan and the composition of your sales force, along with a comprehensive and detailed budget for the marketing plan. Table 11.7 shows a sample marketing plan for La Vida Lola.

Financial Plan

A financial plan seeks to forecast revenue and expenses; project a financial narrative; and estimate project costs, valuations, and cash flow projections. This section should present an accurate, realistic, and achievable financial plan for your venture (see Entrepreneurial Finance and Accounting for detailed discussions about conducting these projections). Include sales forecasts and income projections, pro forma financial statements ( Building the Entrepreneurial Dream Team , a breakeven analysis, and a capital budget. Identify your possible sources of financing (discussed in Conducting a Feasibility Analysis ). Figure 11.19 shows a template of cash-flow needs for La Vida Lola.

Entrepreneur In Action

Laughing man coffee.

Hugh Jackman ( Figure 11.20 ) may best be known for portraying a comic-book superhero who used his mutant abilities to protect the world from villains. But the Wolverine actor is also working to make the planet a better place for real, not through adamantium claws but through social entrepreneurship.

A love of java jolted Jackman into action in 2009, when he traveled to Ethiopia with a Christian humanitarian group to shoot a documentary about the impact of fair-trade certification on coffee growers there. He decided to launch a business and follow in the footsteps of the late Paul Newman, another famous actor turned philanthropist via food ventures.

Jackman launched Laughing Man Coffee two years later; he sold the line to Keurig in 2015. One Laughing Man Coffee café in New York continues to operate independently, investing its proceeds into charitable programs that support better housing, health, and educational initiatives within fair-trade farming communities. 55 Although the New York location is the only café, the coffee brand is still distributed, with Keurig donating an undisclosed portion of Laughing Man proceeds to those causes (whereas Jackman donates all his profits). The company initially donated its profits to World Vision, the Christian humanitarian group Jackman accompanied in 2009. In 2017, it created the Laughing Man Foundation to be more active with its money management and distribution.

• You be the entrepreneur. If you were Jackman, would you have sold the company to Keurig? Why or why not?
• Would you have started the Laughing Man Foundation?
• What else can Jackman do to aid fair-trade practices for coffee growers?

What Can You Do?

Textbooks for change.

Founded in 2014, Textbooks for Change uses a cross-compensation model, in which one customer segment pays for a product or service, and the profit from that revenue is used to provide the same product or service to another, underserved segment. Textbooks for Change partners with student organizations to collect used college textbooks, some of which are re-sold while others are donated to students in need at underserved universities across the globe. The organization has reused or recycled 250,000 textbooks, providing 220,000 students with access through seven campus partners in East Africa. This B-corp social enterprise tackles a problem and offers a solution that is directly relevant to college students like yourself. Have you observed a problem on your college campus or other campuses that is not being served properly? Could it result in a social enterprise?

Work It Out

Franchisee set out.

A franchisee of East Coast Wings, a chain with dozens of restaurants in the United States, has decided to part ways with the chain. The new store will feature the same basic sports-bar-and-restaurant concept and serve the same basic foods: chicken wings, burgers, sandwiches, and the like. The new restaurant can’t rely on the same distributors and suppliers. A new business plan is needed.

• What steps should the new restaurant take to create a new business plan?
• Should it attempt to serve the same customers? Why or why not?

This New York Times video, “An Unlikely Business Plan,” describes entrepreneurial resurgence in Detroit, Michigan.

• 48 Chris Guillebeau. The $100 Startup: Reinvent the Way You Make a Living, Do What You Love, and Create a New Future . New York: Crown Business/Random House, 2012.
• 49 Jonathan Chan. “What These 4 Startup Case Studies Can Teach You about Failure.” Foundr.com . July 12, 2015. https://foundr.com/4-startup-case-studies-failure/
• 50 Amy Feldman. “Inventor of the Cut Buddy Paid YouTubers to Spark Sales. He Wasn’t Ready for a Video to Go Viral.” Forbes. February 15, 2017. https://www.forbes.com/sites/forbestreptalks/2017/02/15/inventor-of-the-cut-buddy-paid-youtubers-to-spark-sales-he-wasnt-ready-for-a-video-to-go-viral/#3eb540ce798a
• 51 Jennifer Post. “National Business Plan Competitions for Entrepreneurs.” Business News Daily . August 30, 2018. https://www.businessnewsdaily.com/6902-business-plan-competitions-entrepreneurs.html
• 52 “Rice Business Plan Competition, Eligibility Criteria and How to Apply.” Rice Business Plan Competition . March 2020. https://rbpc.rice.edu/sites/g/files/bxs806/f/2020%20RBPC%20Eligibility%20Criteria%20and%20How%20to%20Apply_23Oct19.pdf
• 53 “Rice Business Plan Competition, Eligibility Criteria and How to Apply.” Rice Business Plan Competition. March 2020. https://rbpc.rice.edu/sites/g/files/bxs806/f/2020%20RBPC%20Eligibility%20Criteria%20and%20How%20to%20Apply_23Oct19.pdf; Based on 2019 RBPC Competition Rules and Format April 4–6, 2019. https://rbpc.rice.edu/sites/g/files/bxs806/f/2019-RBPC-Competition-Rules%20-Format.pdf
• 54 Foodstart. http://foodstart.com
• 55 “Hugh Jackman Journey to Starting a Social Enterprise Coffee Company.” Giving Compass. April 8, 2018. https://givingcompass.org/article/hugh-jackman-journey-to-starting-a-social-enterprise-coffee-company/

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• Authors: Michael Laverty, Chris Littel
• Publisher/website: OpenStax
• Book title: Entrepreneurship
• Publication date: Jan 16, 2020
• Location: Houston, Texas
• Book URL: https://openstax.org/books/entrepreneurship/pages/1-introduction
• Section URL: https://openstax.org/books/entrepreneurship/pages/11-4-the-business-plan

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Research: Writing a Business Plan Makes Your Startup More Likely to Succeed

• Francis J. Greene
• Christian Hopp

It’s particularly important if you plan to raise money.

When asked about an opponent’s plan for their impending fight, former world heavyweight champion Mike Tyson once said: “everyone has a plan until they get punched in the mouth.” It is a school of thought now fashionable in entrepreneurship circles. The truth, though, is that we just don’t know if it pays to plan. For every study that shows that it does, another study comes along and says that start-ups should just learn by doing. We wanted to study entrepreneurial planning, but with more context than previous efforts. We found that it pays to plan. Entrepreneurs who write formal plans are 16% more likely to achieve viability than the otherwise identical non-planning entrepreneurs. More than that, we were also able to see what makes people write business plans in the first place.

When asked about an opponent’s plan for their impending fight, former world heavyweight champion Mike Tyson once said: “Everyone has a plan until they get punched in the mouth.”

• FG Francis J. Greene is Chair in Entrepreneurship in the University of Edinburgh Business School.
• CH Christian Hopp is Chair in Technology Entrepreneurship in the TIME Research Area, the Faculty of Business and Economics, RWTH Aachen University.

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Business Model Canvas Benefits — How Does it Help Entrepreneurs?

Unlock the advantages of Business Model Canvas for entrepreneurs. Learn how it fosters strategic planning and business success with PitchBob.

Entrepreneurs and organizations need to be agile and adaptive to keep ahead of the competition in the quickly changing business environment. The Business Model Canvas (BMC) has become a useful tool for business owners to efficiently plan, strategize, and communicate their business concepts. The BMC offers a visual depiction of the business model of a firm, allowing stakeholders to comprehend, evaluate, and enhance many facets of their endeavour. We will discuss the advantages of using the Business Model Canvas in this article and how it can be used in real-world situations.

What is a Business Model Canvas?

A strategic management framework called the Business Model Canvas was created by Alexander Osterwalder and Yves Pigneur. It is made up of nine fundamental pieces that represent the main components of a business model. Customer groups, value propositions, channels, customer relationships, income streams, crucial resources, crucial activities, crucial alliances, and cost structure make up these building blocks.

Visual Representation and Clarity:

The Business Model Canvas’ visual aspect is one of its main benefits. The business concept is quickly and clearly summarised in the canvas, making it simple to comprehend and share. Entrepreneurs can arrange their thoughts and ideas in a simple and aesthetically pleasing way by using a pre-made template. Stakeholders can quickly understand the complete business model thanks to the visual representation, which speeds up deliberations and decision-making.

Identifying and Evaluating Key Components:

Entrepreneurs can define and evaluate the essential elements of their business model with the help of the business model canvas. Each component of the structure acts as a springboard for important queries that encourage strategic planning. For instance, the client segment block advises business owners to identify and comprehend their target customers, their demands, and the best ways to reach them. Entrepreneurs discover their business model’s strengths, shortcomings, and possibilities for improvement by analysing each component.

Facilitating Collaboration and Communication:

Teams and stakeholders can align their understanding of the business model using the collaborative tool known as the business model canvas. Participants can share their knowledge, viewpoints, and expertise by using a shared canvas. The canvas encourages collaboration, knowledge sharing, and conversation. It makes it possible for cross-functional teams to work together successfully, ensuring that everyone is on the same page and pursuing the same objectives.

Strategic Decision-Making:

The Business Model Canvas is a strategic tool that supports decision-making. It aids business owners in assessing different business plans, determining the viability of fresh concepts, and seeing potential pitfalls and opportunities. Entrepreneurs can predict the effects of their decisions and make wise decisions by visualising the interdependencies between various components. The canvas also promotes creativity and innovation by inspiring businesspeople to think creatively and explore new avenues.

Adaptability and Iteration:

Business models must change and adapt to the shifting demands of the market. By enabling business owners to test, improve, and iterate on their business models, the Business Model Canvas streamlines this procedure. It is simple to update and modify particular building components thanks to the canvas’s visual nature without completely redesigning the model. This flexibility enables business owners to react to customer feedback, change course as necessary, and maintain relevance in cyclical markets.

What Should You Use Business Model Canvas?

The business model canvas is a strategic management tool that assists in the study and planning of business models. Both startups and established companies use it as a useful tool for any firm looking to expand or enhance its business strategy.

To prospective business shareholders, tactical business managers, or product teams, the Business Model Canvas efficiently communicates your start-up concept, present business model, or even a new product or service since it essentially puts it "on a page." It is also a powerful tool for demonstrating which elements of your business need to be adjusted.

You may better comprehend all the various components of your company and how they interact by using the business model canvas examples . When introducing a new product or service or beginning a business, this could be quite helpful. You can use the business model canvas to explain to others the concept behind your current company or upcoming start-up.

How Can You Use Business Model Canvas?

a) Startup Planning: The Business Model Canvas is a tool that entrepreneurs may use to organise their thoughts, test presumptions, and provide a strong basis for their beginning businesses. They are able to create their distinctive value proposition, comprehend the market, and find possible revenue streams using its assistance.

b) Existing Business Analysis: The Business Model Canvas can be used by established businesses to evaluate the success of their present business model, pinpoint areas for development, and look into potential new markets. They can use it to assess their alliances, revenue sources, and consumer segments critically.

c) Strategic Partnerships: Organisations can use the Business Model Canvas to evaluate the suitability of their various business models when contemplating collaborations or partnerships. It aids in the evaluation of resource sharing, the identification of potential synergies, and the estimation of partnership value.

d) Product Development: The process of developing a product can make use of the business model canvas. It aids business owners in determining their target market, comprehending client requirements, and creating a value proposition that fits client tastes. Entrepreneurs may make sure that their product offering is viable and sustainable by taking into account the various building pieces.

e) Business Model Innovation: The Business Model Canvas invites business owners to use their imaginations and research cutting-edge business strategies. Entrepreneurs might discover new ways to produce and capture value by questioning preconceived notions and experimenting with various arrangements of the building blocks. It offers a methodical framework for formulating and improving fresh company ideas.

CONCLUSION:

The Business Model Canvas Template is an effective way that helps businesses and entrepreneurs comprehend, assess, and enhance their business models. It works well for communicating with stakeholders and bringing them into alignment due to its visual aspect, clarity, and systematic approach. The firm Model Canvas offers a thorough framework for analysing and improving numerous areas of a firm, whether it is used for startup planning, strategic decision-making, or business model innovation. Entrepreneurs can successfully traverse the complexity of the contemporary business environment by utilising this instrument.

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Subscribe for exclusive access, business ideas for women entrepreneurs in 2024.

Written by Mary Kate Miller | December 28, 2023

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More women are starting their own small businesses every day. Working women continue to face unique challenges, especially as small business owners, so what are the absolute best business ideas for women? Starting with the most profitable businesses , best online business ideas , low investment business ideas , and best side hustles , we’ve curated a list of industries where women entrepreneurs are set up for success.

These business ideas either offer flexibility for when you work, flexibility for where you work or are in women-dominated industries. Some of the business ideas are a combination of all 3. We’ll walk you through some of the top business ideas for women, pointing you to helpful resources to help turn your idea into reality.

Let’s look at the 26 best business ideas for women. With creative ideas, home business ideas, and service business ideas, there’s something for every entrepreneur.

Table of Contents

Creative Business Ideas for Women

Home business ideas for women, service business ideas for women, how to start a small business, are there other business ideas for women, questions to ask before you start your small business, business ideas for women faqs, real stories of successful women entrepreneurs.

You may already have experience working in one of these creative fields, which will give you a leg up when starting your own business. Many of these small business ideas can be done as freelance work, which involves the shortest launch time. You can also incorporate your business and work as a consultant or form your own agency, which gives you the opportunity to scale and hire employees in the future.

1. Start an Etsy Shop

Etsy provides a space for creative female entrepreneurs to market their products to an existing customer base. In 2022, there were 95.08 million active buyers on the platform worldwide. If you make something that fits into a particular niche, if you’re known for a scalable craft, or if people are always complimenting you on your embroidery or bridal denim jackets, then you might want to start an Etsy shop .

Opening an Etsy shop isn’t a guaranteed win. While there are millions of active buyers on the platform, there are also millions of active sellers (7.5 million in 2021). To stand out and grow a successful business on the platform, you’ll want to:

• Learn how to optimize your product titles and descriptions for Etsy’s search. You can use a keyword tool like this one to research the best terms to use so your listings show up in search results.
• Grow your own social media presence so you can drive customers to your shop directly from your social media profiles.

2. Interior Design

Interior design and decorating can help you monetize your impeccable taste. While many interior designers go through professional training and licensing, they are generally not required to work as an interior designer in the US (In some states, you need to be licensed to work in commercial spaces ).

Interior design can be a great career for women entrepreneurs looking for flexibility. If you run your own design business, you can decide how many clients and projects to take on. Because it’s client-based work, you can adjust your workload to make it heavier or lighter depending on your personal, family, and financial circumstances.

If you want to start your own interior design business, you can begin by creating an Instagram account to showcase your work. Because Instagram is a visual medium, it’s well-suited towards boosting your interior design profile within the industry and to prospective clients. Many of the most popular interior designers, like Studio McGhee, have found their success in large part due to the platform.

But how do you grow your Instagram followers? Learn the top growth tips to help your Instagram reach 10k+ followers.

3. Graphic Design

With the emergence of digital marketing as a driving force for most brands, there is a greater need for graphic design than ever before. A graphic designer might begin their career at an agency or in-house at a brand and then later go out on their own. Graphic design is one of the professions best suited towards a consulting model. When you start your own graphic design business, you can control what you charge and who you work with.

4. Build an AI Tool or App

Would any 2024 article on the future of business be truly complete without mentioning AI?

While the snake oil salesmen climb over each other to try and sell get-rich-quick AI courses that will ultimately come crumbling down, you can get to work on using AI to produce a proper business, such as building a new AI tool or app, either by yourself or with the help of freelancers.

As AI in the mainstream is still very much in its infancy, now is the perfect time to try and get in on the action and build your own AI business .

5. Freelance Writing

Freelance writing is another business that has boomed thanks to the advent of digital marketing. To turn your words into a profitable business, you’ll want to ensure that you develop a solid understanding of search engine optimization (SEO) or social media engagement. You don’t have to know both, but you will want to specialize in at least one of these areas.

Here are some resources to help you get started:

• The Art and Science of Writing Good Instagram Captions
• A Proven 10-Step Framework for Writing Copy That Converts
• 5 Important Steps to Becoming a Highly Paid Freelance Writer

6. Social Media Marketing

Social media is driving sales for everything from clothing to education. According to research from The Content Factory , the average organization spends $250-$300/day on social media. That’s an average of $6,000 to $10,500 every month. Given the demand, there’s a wealth of opportunity for savvy entrepreneurs to carve out a niche for themselves in social media marketing.

One of the reasons social media marketing has become such a hot business for female entrepreneurs is that it can be done fully remotely. Because posts are usually scheduled (there’s always the odd exception), you can also organize your work around your lifestyle, making this an ideal creative career for working moms.

An easy way to differentiate yourself is by becoming an expert at TikTok, the fastest-growing social media platform. Here’s some TikTok 101 info:

• How to Make Money on TikTok: 14 Surefire Ways
• How to Use TikTok for Your Business (Ultimate Guide)
• TikTok Ads Guide: How to Capitalize on the Fastest-Growing Social Platform

7. Brand Ambassador/Content Creator/Influencer

Instead of helping a business with its social media, why not get paid for doing it yourself? You can swap out labels like an influencer , brand ambassador , or content creator , but they essentially are all the same thing .

Do you have a social media presence that has enough influence that brands want to work with you?

This doesn’t mean you need 100K followers to earn income as a content creator. Many microinfluencers can earn four to five figures speaking to a niche audience. Here are some of the fields in which brands are looking to partner with ambassadors or influencers to promote their products:

• Fitness and exercise
• Diet and health
• Cooking and baking
• DIY and home improvement
• Parenting and childcare
• Beauty, skincare, and makeup

So, if you have a passion or hobby that people are interested in hearing about on social media, think about how you can leverage your following to get compensated.

Pro Tip: Women can carve out a niche in stereotypical male hobbies and interests like sports, hunting, fishing, grilling, beer/whiskey. 

Over the past couple of years, more and more people have discovered the joys of working from home. These business ideas are mostly online, so you can run your small business from your home. We’ve collected some of the most profitable, low-investment home business ideas for women.

8. Become an AI Consultant

As we have already touched on, the world of AI within the workplace is still in its infancy, making now the perfect time to strike.

A few decades ago, some individuals made the bold decision to become experts in a little-known industry called “computing.”

Needless to say, many of those gentlemen went on to become extremely valuable, in high demand, and successful.

But it’s 2024. So this time, why can’t women lead the tech revolution? Check out this great video on how to get started.

9. Affiliate Marketing

Affiliate marketing is a type of advertising where a company pays an affiliate based on the performance of their referrals. Think of it like working a commission sales position, only instead of earning commission from in-person sales, you use affiliate links and referral codes.

You’ve likely come across affiliate marketing on your favorite influencer’s posts. While it might seem like the kind of profession that only the already-internet-famous can do, it’s actually a lot more accessible than that—and it can be profitable.

Want to start your own affiliate marketing business? Check out these resources to hit the ground running:

• The Ultimate Guide to Affiliate Marketing for Beginners
• Is Affiliate Marketing Worth It? Yes.

10. Dropshipping

Dropshipping is a business model that allows an entrepreneur to sell products without having to keep those products in stock. The store (often an ecommerce store) sells the product, and then the order is fulfilled by a third-party supplier and sent to the customer.

So what makes dropshipping a fantastic business for a female entrepreneur? Think of it like the anti-Lula Roe. Instead of being required to purchase stock before you can sell anything, dropshipping allows you to start selling without having any products on hand. It’s a really accessible business to start because it requires low investment, outsources many of the logistics of order fulfillment, and it’s incredibly flexible.

In recent years, Amazon FBA (Fulfillment by Amazon) has become a popular hybrid dropshipping option. Amazon FBA isn’t a true dropshipping business because you’re only outsourcing the shipping to Amazon. They’re not responsible for inventory. Small business owners have found this to be a profitable dropshipping model because it allows you to leverage Amazon’s substantial logistical and shipping resources to sell products, along with making products available on one of the internet’s most popular marketplaces.

11. Ecommerce

Ecommerce refers to any business selling goods or services online. Ecommerce consistently ranks as one of the most profitable businesses you can start. It doesn’t require significant investment to get your ecommerce business up and running, and you can start making money relatively quickly.

Considering whether you should start your own online store? You won’t want to miss these resources.

How to Start a Profitable Online Store in 12 Weeks or Less How to Start an Ecommerce Business 13 Free Resources to Help You Start an Ecommerce Business Scaling to 7 Figures Ecommerce Masterclass

12. Life Coach

A life coach counsels their clients on personal and professional challenges. Many life coaches work with the intention of helping their clients find greater fulfillment and success. If you’re someone who really enjoys helping others find their path, this might be the business for you. There aren’t any state or federal agencies that regulate life coaching, so pretty much anyone can be a life coach. That’s both good and bad. It makes it a really easy career to enter or test as a side hustle, but it can also be harder to make yourself seem credible to prospective clients without a certification. While it’s not required, some formal training will likely help you make more money as a life coach.

You can also make your life coaching business more marketable by getting more specific. There’s tons of competition out there for general “life coaches,” but by getting more specific about the strengths of what you can offer and who would be served by it, you can carve out a highly profitable niche for yourself. Think “life coaching for working moms,” “body-positive life coach,” etc.

13. Career Coach

Career coaches help professionals navigate job searches, career development, career transitions, and meet their professional goals. If you have developed certain expertise through your years in the workplace and you enjoy working with people, career coaching might be the business for you . Thanks to Zoom, there are no longer strict geographical limitations to career coaching, meaning you can offer your services as an online business without ever leaving your home.

14. Online Tutoring

Online tutoring platforms are booming, and many are in search of new tutors. If you are an ace in a certain subject or if you have teaching credentials but don’t want to commit to working in person, you might want to consider becoming an online tutor.

15. Online Course

An online course, where students can sign up to learn on-demand, requires time and effort upfront with the potential to turn the course into passive income. The beauty of an online course is that you only have to build it once, and then students can continue to enroll over time. This business model can be equalling appealing to a woman entrepreneur who is working a high-stress job full-time and would like to make some side money or for a woman business owner who is trying to minimize the hours she spends bringing in revenue so she can maximize the time she can spend with her family.

To start building your online course, you first need to determine your niche. Then you need to do market research, decide which platform you want to use, build your course, and market it. Want to learn more about building an online course? We’ll help you learn absolutely everything you need to know to start making money from your personal expertise.

How to Create an Awesome Online Course How to Sell an Online Course Without Being an Expert Every Tool You Need to Create Your Online Course

16. Real Estate

Real estate is another business that has the potential to turn into a passive revenue stream. There are different ways to make a business out of real estate. If you want to create a real estate business from home, you’ll probably need some capital to start. Let’s start with the downside, real estate requires substantial investment to start and it does carry some risk.

But the upside is huge in that you can potentially generate a passive income that’s relatively low risk compared to other investments (assuming you’re investing in a rental property and not trying to flip houses with no experience).

It is important to note that the real estate market is ever-changing, meaning there are certainly better times than others to get involved. Before investing heavily, we recommend speaking to market experts to get their advice on what the best way to enter the market is and what the right time to strike might be.

17. Web Design

Web design includes many disciplines related to website maintenance, including interface design, web development, user experience (UX) design, search engine optimization (SEO), and interface design.

You can approach your web design business in a couple of ways. You can go direct-to-consumer and help end-users design websites, or you can sell your services to other businesses to help design their customer-facing websites.

18. Digital Marketing

Digital marketing encompasses many disciplines, including social media marketing, freelance writing, graphic design, and email marketing. Digital marketing is a booming industry, and you can do the work from anywhere. All you need is a computer and an internet connection, making this an ideal home business idea. If you’re just starting out, you might want to begin working in digital marketing as a freelancer. It’s often easier for a company to hire a freelancer than an agency (there’s typically less vetting required), so you can drum up business and start making money faster that way.

Once your digital marketing business is well established, you can always incorporate it, giving you the opportunity to hire employees and grow your business(if that’s something you want to do).

19. Virtual Assistant

A virtual assistant provides administrative, technical, or creative support to clients in a remote capacity. Most virtual assistants are self-employed and work from their homes. If you’re looking for a way to make some extra cash, this can be a great option.

20. Virtual HR

One of the only benefits that came from the recent years many of us spent working from the kitchen table (or hunched over by the washing in the spare room), is that it showed employers that virtual work can, well, work!

And in some instances, it’s not just a solid substitute but a better alternative to in-person work. As a result, there are many more companies open to the idea of hiring virtually, with industries like HR becoming on of the popular options for this.

It allows the employer to keep costs low and meet business requirements, and it allows you to keep impartiality when dealing with issues, all without getting out of your slippers.

The service industry, the business sector that provides customers with services or intangible goods, is ripe with business ideas for women. Many sectors of the service industry have been dominated by working women historically, so why not leverage your power within the industry to start your own small business?

21. Wedding Planning

Weddings are one of the most important days in life for many, and they’re usually one of the most complicated. A wedding has many moving parts—from navigating the catering to the ceremony and reception decor, coordinating with vendors, and managing the families—there’s a lot that couples need help with when planning a wedding. If you’re a really organized person who loves details, solving problems, and helping couples realize their dream weddings, then wedding planning might be the business idea for you. You can begin by leveraging your network to find clients. Ask for referrals and testimonials when you work with a client, so you can continue to build your business by word of mouth.

No matter what’s happening in the world, people keep getting married. Even during the height of the pandemic, optimistic couples found innovative ways to tie the knot and celebrate their nuptials. For this reason, wedding planning can be an incredibly stable business to start. It also has a seasonal cadence, allowing you portions of the year to relax and regroup while gearing up for the next wedding season.

Not sure you want to work all the time? That’s easy to control. Once you get your business started, you’ll have a sense of how much time and energy each wedding takes. Then you can determine how many clients you want to take on based on how many hours you want to dedicate to the business.

Keep Learning: This Founder Turned Her Wedding Hacks into All-in-One Bridal Business

22. Personal Chef

Personal chefs work in private settings to cook for an individual or family. There are a few different ways to approach a personal chef business. Many chefs work in a family’s home to prep the meals for the day. Then they leave the family with heating/cooking instructions so they can finish the meal themselves and enjoy a private family meal. Other chefs cook the meal from start to finish with the client present. There’s also a hybrid model, where a chef might cook for several clients at once at an offsite kitchen and then deliver packaged meals with reheating instructions to their clients. As you can see, there’s a lot of flexibility for what kind of business model and what kind of workday you have as a personal chef, making it one of the best business ideas for women.

23. Event Planning

An event planner manages the process of planning a ceremony, party, meeting, convention, tradeshow, or other events. While the industry took a hit during the pandemic, it’s returning to continued growth now. You might make a great event planner if you enjoy being around and working with people, you’re organized, you’re a quick thinker who knows how to problem solve, and you love to process of bringing a vision to life.

Tech-savvy? Know how to run a Zoom event like a pro? The pandemic has ushered in a new market for hybrid and virtual events. These events come with their own set of challenges, which means that you can tailor your services to meet these new needs directly.

24. Makeup Artist

If you’re a pro with makeup, you might want to consider starting your own makeup artist business. Instagram, YouTube, and TikTok have provided novel ways for makeup artists to showcase their work and create a portfolio. If you’re just starting out, you can start by posting your work on social media. Eventually, you can build a bustling business helping people look their best for work events, holidays, special events, and anything else that calls for a professional beauty touch.

25. Animal Care

70% of US households own a pet, and at some point, they’re going to need help taking care of them. So, whether you walk dogs, have space for overnight care, or are willing to pick through fur as a groomer, pet care is a booming industry. Because a majority of pet owners need care during business hours or while on vacation, this is an easy way for stay-at-home moms to earn extra cash while their kids are at school.

26. Cleaning Business

People are messy. This universal truth has long made a cleaning business a solid, reliable business idea. But the pandemic (and our subsequent need to disinfect literally everything) made a cleaning business one of the most opportunistic small business ideas out there. Everyone needs cleaning, especially spaces where people gather. You can offer commercial cleaning for office spaces, restaurants, or other businesses. Or you could carve out a niche for yourself by offering “pre-event” cleaning to help clients feel safe as they gather with friends and family. Now, more than ever, there’s an enormous opportunity in the cleaning sector to carve out a niche for yourself. All you need is an idea and the wherewithal to test it.

Now that you’ve combed through all our small business ideas and nailed down the business that works for you, how do you go from idea to revenue-generating machine? We’ll review the major points in every entrepreneurship journey. For a step-by-step walkthrough, check out our guides 15 Steps to Starting a Successful Small Business and Learn How to Start a Small Business at Home .

Test Your Idea as a Side Hustle

Before you put all your resources into your new small business idea, you want to test it to ensure that there’s demand in the market and that your idea has the potential to make money. One of the best ways to do that is to start your small business as a side hustle. This requires a smaller investment, will help you make some extra cash, and will give you valuable information about your business—allowing you to see what’s working and what needs adjustment.

Our Start Your Side Hustle course can help you create a roadmap for how to start an online side hustle in 30 days or less, including how to “fail-proof” your ideas, how to come up with your unique value proposition, and how to identify your money-making skills.

Create a Business Plan

A business plan states what your business is, what you’ll do, and how you’ll do it. It will act as a road map to help you determine how your business will achieve its goals. A business plan will help you avoid losing money. And it will also help you secure outside capital if you need it.

Here are some helpful resources to help you craft the perfect business plan:

• How to Write a Business Plan (Tips, Templates, Examples)
• The Guide to Defining Your Target Market
• The Complete Guide to Market Research: What It Is, Why You Need It, and How to Do It

Determine How Much Capital You Need

Money. You can’t start a business without it. To set yourself up for success, you need to first determine how much money you need to start your business. Your business plan should give you a sense of how much capital you’ll need upfront.

Find Funding if You Need It

Once you have that estimate, you can figure out how to get it. Many small business owners raise money first by bootstrapping (the process of self-financing) and asking friends and family to invest. A business loan is another popular, common way to finance a new small business. Venture capital, on the other hand, is a less likely form of financing. Venture capitalists tend to prefer investing in established, scalable businesses.

For a full rundown of everything you need to know about getting funding for your new small business, read our guides:

• Startup Funding: How Does It Work and What Are Your Options?
• How to Find Investors

What if you have an idea that wasn’t on this list? Are there other business ideas for women? Yes, the world is full of opportunities for entrepreneurs. When starting a small business, the 2 most important things to consider are whether you’re passionate about the work and whether there’s an opportunity to make money. Without the first, you won’t have the energy or the fortitude to put in the work required to start a small business. Without the second, it’s going to be a money pit.

These questions will help you determine whether your idea has what it takes to become a successful small business.

• What products or services will you offer? (It’s best to begin by getting as specific as possible. It’s better to do one thing well than 10 things poorly, especially for a new business)
• Who needs your product or service?
• Do you already have the skills, experience, certifications, or licenses required to start this business? If not, what would be the financial and time investment needed to acquire them?
• How much money would be required to cover startup costs? Will you need further financing down the road? If so, how much?
• Are there people in your network who can help you—either financially or by lending their expertise?
• What are your goals for this business? Do you want it to become your main source of income? Are you hoping it will become the primary income source for your family? Do you want it to be a side hustle? (Get specific. It will help you reach your goals.)

Is it worth starting an LLC for a part-time business?

First and foremost, we always suggest talking to a tax professional about business finances. The rule of thumb is that if your side hustle earns you $600 or more net profit, you'll need to file that as income as a self-employed freelancer. However, if you hope to turn your side hustle into a full-time business, then as soon as it financially makes sense, get started on filing for an LLC and securing your trademarks. If your business involves contracts or anything that could be liable to legal action, separating your business and personal finances is a must.

When is the best time for women to start a business?

Yesterday. If not, today. There's never a perfect time to start a business, so don't get caught up in the timing. Instead, focus on your long-term purpose of starting a business. Timing can be even more difficult for female founders trying to navigate starting and raising a family. Make sure you have a robust support system and understand the sacrifices it will take to make your business sustainable.

What challenges do women face in starting a business?

Unfortunately, we still live in a world where women earn less on average than men. That trend trickles into business ownership as well. As a female founder, you will face unique challenges because of your gender, especially in a traditionally male-dominated field like IT, finance, or consulting. The key is not to go it alone and seek out female mentors, female-friendly incubators and investors, and a community of customers that will have your back.

There’s nothing that matches the inspiration or information you can get from stories of real women entrepreneurs who’ve turned their ideas into highly successful businesses. Here are some of our favorite resources and stories from women business owners who have been there .

• What It’s Like to Go On Maternity Leave When You’re a Founder
• Why Kendra Scott Risked Everything on the Customer Experience
• 3 Ways to Build Confidence from Quest Nutrition Cofounder Lisa Bilyeu
• How This Ukrainian Female Founder is Building an Agency in a Time of Crisis
• How Samantha Brett Built Naked Sundays into Australia’s #1 SPF Skincare Brand
• How Jessica Sepel Built JSHealth’s Women-Run Brand
• How Holly Thaggard and Supergoop! Took Sun Protection Global
• Eat My Baby Co. Founder Turned Nostalgic Snacks into an Apparel Brand That Celebrates Heritage
• Brow Code’s Melanie Marris Doesn’t Need Motivation to Innovate – Founder Q&A

This article was updated with support from Graeme Whiles .

About Mary Kate Miller

Mary Kate Miller writes about small business, real estate, and finance. In addition to writing for Foundr, her work has been published by The Washington Post, Teen Vogue, Bustle, and more. She lives in Chicago.

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How to create a farm business plan.

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

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

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

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

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

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

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

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

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

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

Executive Summary

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

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

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

Goals and Objectives

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

Introduction

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

Mission Statement and Values of Your Farming Business Plan

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

Industry History

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

Company Background and History

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

Competitor Analysis

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

Target Market

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

Products and Services

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

Organization, Human Resources, and Management Plans

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

SWOT Analysis

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

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

Growth Strategy

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

Financial Plan

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

Marketing Strategy

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

Establishing a Farming Business Entity

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

Detailed Description of Farm Operations

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

Risk Management Strategies

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

Sustainability and Environmental Impact

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

Community Involvement and Social Responsibility

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

Supply Chain and Vendor Relationships

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

Technology and Innovation

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

Training and Development Plans

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

Expansion and Diversification

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

Exit Strategy

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

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

Frequently Asked Questions

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

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

Do I Need a Business Plan for My Farm?

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

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

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

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

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

How Do I Write a Small Farm Business Plan?

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

How do you start a farm business plan?

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

How much do farm owners make a year?

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

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

How much does it cost to start a small farm?

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

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

What is the most profitable farming business?

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

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

Image: Depositphotos

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Free Webinar | May 7: How to Write Your One-Page Business Plan Workshop Did you know entrepreneurs with business plans are 260% more likely to launch? Join our workshop on May 7th and learn how to create a one-page business plan that will help you get your business off the ground. Register now!

By Entrepreneur Staff • Apr 16, 2024

Do you wish you could run a business that would make the most of your skills, experience and earn you the money that you're really worth?

Or perhaps you've already started your own business but it seems like no matter how hard you work you're no closer to the dream that inspired you to start your company in the first place.

If you're not hitting your goals, it's not due to a lack of ambition, you just need a better plan to make it happen.

Specifically, a business plan.

Related: Join our workshop on May 7th and learn how to create a one-page business plan that will help you get your business off the ground. Register now!

A study from BusinessDIT revealed that:

Entrepreneurs with business plans are 260% more likely to launch

71% of fast-growing businesses have plans

With the right business plan, you'll be more likely to launch and grow faster once you do.

So, why don't you have an updated plan? There are a few common reasons.

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Now is the time to work on your business so the time you spend working in your business will be more efficient and rewarding.

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Prior to becoming a creator-entrepreneur, Terry's previous experience includes internal consulting roles at Adobe and Meta.

In addition to his role as Director of Growth and Partnerships at Good People Digital, Terry is an instructor at New York University, speaks at events for leading companies - including Amazon and Google - and has been featured as a subject matter expert by Good Morning America, Fast Company and the Wall Street Journal.

Based in Brooklyn, he is a husband, father of five children, and is an advocate for mental and physical fitness.

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From tax preparation, answers to tax law questions, refund tracking, tax law research to business topics and more, IRS.gov has everything needed for taxpayers to file on time or get an easy, automatic six-month extension to file. The IRS also has special Saturday hours available at 70 Taxpayer Assistance Centers across the country to help taxpayers.

“Millions of taxpayers across the nation will be working on their tax returns during the final hours, and people should remember they have many ways to get last-minute help,” said IRS Commissioner Danny Werfel. “We have a variety of free tools on IRS.gov that can help with basic tax law questions, provide free filing options, update refund status and even provide ways to request an extension for more time to file. We’re continuing our expanded special assistance for taxpayers right through the final weekend of tax season with special Saturday hours at 70 locations.”

For most of the nation, the tax deadline is April 15. Taxpayers in Maine and Massachusetts have until April 17 to file and pay taxes due this year. This is because these states observe the Patriots’ Day holiday on April 15 this year and April 16 is the Emancipation Day holiday in the District of Columbia. Other taxpayers in disaster areas, certain active-duty military members and citizens living abroad automatically get more time to file; more details are below.

For taxpayers who need an extension of time to file their taxes, there are several options to get an automatic extension through Oct. 15. Although an extension grants extra time to file, it does not extend the obligation to pay taxes due on April 15, 2024. To avoid penalties and late fees, taxpayers who owe should pay either their full tax bill or at least what they can afford to pay by the April 15 deadline.

The IRS estimates 19 million taxpayers will file for an automatic extension.

The IRS has already received more than 100 million tax returns, with tens of millions more expected to be filed as the tax deadline approaches.

“Delivering tax season is a massive undertaking, and we greatly appreciate people in many different areas working long hours to serve taxpayers as the tax deadline approaches,” Werfel added. “This effort reaches far beyond the IRS and includes hard-working tax professionals, software providers, the payroll community as well as our colleagues in the state tax agencies. Their work helping taxpayers makes a difference.”

Get tax help, day or night

For those needing last-minute help, taxpayers will find filing information for individuals as well as businesses and self-employed on IRS.gov. For last-minute filers looking for free resources, IRS Direct File remains an option as does IRS Free File . Anyone can use IRS Free File to submit an extension of time to file regardless of their income.

IRS.gov is an important resource that can help in a number of areas:

• For answers to tax law questions, taxpayers will find tools like the Interactive Tax Assistant or they can use the Frequently Asked Questions tool to find answers to dozens of topics.
• To see federal tax information, taxpayers can use the Online Account . They'll find information such as a payoff amount, a balance owed, their payment history and key information from their current year tax return as originally filed. They can also get tax return transcripts.
• Use the Get Transcript tool to view, print or download their tax transcripts after the IRS has processed a return.
• Current and prior year forms , instructions and tax publications can be downloaded and printed anytime.
• Special information is available about tax credits and deductions , some of which can be overlooked. Available to individuals and businesses, credits can reduce the amount of tax due while deductions can reduce the amount of taxable income.
• Get the most up-to-date information about tax refunds using the Where's My Refund? tool and on the official IRS mobile app, IRS2Go .
• For payment information, Direct Pay is free and allows people to securely pay their taxes directly from their checking or savings account without any fees or registration. They can schedule payments up to 365 days in advance. After submitting a payment through Direct Pay, they’ll receive immediate confirmation. For more payment options, visit IRS.gov/payments .

Go paperless

The IRS encourages all taxpayers to file electronically and choose direct deposit to avoid refund delays. Filing on paper can significantly delay a refund. Tax software helps individuals steer clear of mistakes by doing the math. It also guides people through each section of their tax return using a question-and-answer format.

Some taxpayers get automatic extensions

Special rules offer some taxpayers more time without having to request an extension:

• U.S. citizens and resident aliens who live and work outside of the United States and Puerto Rico get an automatic two-month extension, until June 15, to file their tax returns. However, tax payments are still due April 15 or interest will accrue on the unpaid tax.
• Members of the military on duty outside the United States and Puerto Rico also receive an automatic two-month extension to file. Those serving in combat zones have up to 180 days after they leave the combat zone to file returns and pay any taxes due. Details are available in Publication 3, Armed Forces' Tax Guide .
• When the U.S. president makes a disaster area declaration, the IRS can postpone certain tax deadlines for taxpayers in affected areas. Taxpayers in qualified disaster areas do not need to submit an extension electronically or on paper. Information on the most recent tax relief for disaster situations can be found on the Extension of time to file your tax return page.

Find information on free local tax prep

The IRS' Volunteer Income Tax Assistance (VITA) program offers free basic tax return preparation to qualified individuals, including:

• People who generally make $64,000 or less.
• People with disabilities.
• Limited English-speaking taxpayers.

The Tax Counseling for the Elderly (TCE) program also offers free tax help for taxpayers, particularly those age 60 and older.

The VITA/TCE Site Locator can help eligible taxpayers find the nearest community-based site staffed by IRS-trained and certified volunteers. Demand is high for this service, so taxpayers may experience longer wait times for appointments. Taxpayers can use the locator tool to find an available site near them. It’s updated throughout the tax season, so individuals should check back or increase the distance from their location in their search if they don't see a nearby site listed.

MilTax , Military OneSource’s tax service, offers online software for eligible military members, veterans and their families to electronically file a federal return and up to three state returns for free.

Assistive technology options

At the online Alternative Media Center , taxpayers will find a variety of accessible products like screen reading software, refreshable Braille displays and screen magnifying software. These products include tax forms, instructions and publications. Many can be downloaded or viewed online as Section 508 compliant PDF, HTML, eBraille, text and large print.

Having trouble paying? IRS has options to help

For those who owe a payment with their tax return, the IRS has a number of payment options .

For taxpayers that are unable to pay in full by the tax deadline, the IRS recommends they should file their tax return and pay what they can, and apply for an online payment plan . By filing by the deadline, taxpayers will avoid failure to file penalties and interest – even if they’re unable to pay. Taxpayers can explore various payments options; they can receive an immediate response of payment plan acceptance or denial without calling or writing to the IRS. Online payment plan options include:

• Short-term payment plan – The total balance owed is less than $100,000 in combined tax, penalties and interest. Additional time of up to 180 days to pay the balance in full.
• Long-term payment plan – The total balance owed is less than $50,000 in combined tax, penalties and interest. Pay in monthly payments for up to 72 months. Payments may be set up using direct debit (automatic bank withdraw) which eliminates the need to send in a payment each month, saving postage costs and reducing the chance of default. For balances between $25,000 and $50,000, direct debit is required.

Though interest and late-payment penalties continue to accrue on any unpaid taxes after April 15, the failure to pay penalty is cut in half while an installment agreement is in effect. Find more information about the costs of payment plans on the IRS’ Additional information on payment plans webpage.

Adjust withholding to prevent tax "surprises"

Tax filing season is an excellent time for taxpayers to check their withholding to avoid a tax surprise when filing in 2025. Life events like marriage, divorce, having a child or an income change can all impact taxes.

The Tax Withholding Estimator helps people bring the tax they pay closer to what is owed. Employees can assess their income tax, credits, adjustments and deductions, and determine whether they need to change their withholding by submitting a new Form W-4, Employee's Withholding Allowance Certificate to their employer, not the IRS.

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More From Forbes

18 efficient methods for finding business capital in a tough market.

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An entrepreneur’s ability to obtain financing for their business is hard in a normal market and downright challenging in a down market. In the face of rising interest rates and an unstable market, many investors reduce their spending and turn their focus to investment opportunities with little financial risk.

While a tough market does limit the amount of available funding sources, entrepreneurs can acquire the capital their business needs if they are willing to put in the work and think outside the box. Below, 18 Forbes Business Council members offer suggestions on how companies can efficiently find capital in a difficult banking market.

1. Diversity Your Funding Sources

In a tough banking market, diversify your funding sources. Consider business credit cards for immediate funds, apply for grants to get nonrepayable capital and use crowdfunding to validate your business while raising money. Each option caters to different needs and increases your chances of securing essential funding by broadening your financial strategy. - Kameel Gaines , Rig On Wheels Broker & Recruitment Services

2. Look Beyond Traditional Bank Loans

Companies must proactively navigate today's banking climate. Look beyond traditional bank loans and actively seek out alternative finance lenders who specialize in your industry. These lenders offer creative expertise and flexibility, providing a swift and adaptable funding option that is less restrictive than traditional bank loans. This enables quicker access to capital for companies on their own terms. - Marius Silvasan , eCapital

3. Strengthen Your Brand And Reputation

The first priority of every company should be to strengthen their brand and reputation. This involves investing additional financial resources into brand development and promotion. Following this, they can explore various sources of financing that were not previously utilized by the company. With a strategic approach and effective risk management, this strategy can significantly enhance the chances of success. - Jekaterina Beljankova , WALLACE s.r.o

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The fallout show appears to have given fallout 4 a canon ending, goldman sachs issues stark bitcoin halving price warning, 4. develop a compelling pitch.

In today's banking world, telling a compelling story is key for companies seeking capital. Tailored pitches linking profitability and trends, along with a visionary narrative, will appeal to investors. Connecting your company narrative with data and market insight will strengthen your investment case. - Michael Shribman , APS Global Partners Inc.

5. Highlight Your Business's Impact

Companies looking for capital can increase their chances of success in today’s difficult financial market by identifying and highlighting the impact and objectives of their business. This should be done in addition to standard requirements of credible historical cash flows and attractive future cash flow projections. This can differentiate their business from other financing targets. - Toyin Sanni , Emerging Africa Group

6. Take A Multi-Pronged Approach

Embrace a multi-pronged approach to enhance your chances of success. Explore alternative financing options beyond traditional banks to consider venture capital, crowdfunding or strategic partnerships. Develop a compelling business plan that showcases your business's growth potential and profitability. Build a strong network, engage with industry experts and leverage digital platforms to increase visibility. - Mike Vietri , AmeriLife

7. Focus on Strengthening Your Relationships

In today's tough banking market, companies should focus on strengthening relationships with existing investors. Additionally, explore alternative funding sources like venture capital or crowdfunding to improve your odds of success. - Tomas Keenan , Step It Up Academy

Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?

8. Build Connections With Your Bankers

I recommend that companies seeking capital build relationships with their bankers. Understanding your finances inside and out is crucial. Present a clear, well-thought-out business plan and financial projections. Transparency and a strong track record can boost your credibility, as trust and reliability are key in banking. If you show that you're a safe bet, you'll increase your chances of securing capital. - Aleesha Webb , Pioneer Bank

9. Highlight Your Status As A Low-Risk Borrower

Banks these days are saddled with high borrowing costs, older low-yielding bonds, empty office spaces, nonperforming assets and various credit risks. Being able to show that you are a low-risk borrower will go a long way toward getting that loan you need. For equity financing, show a high probability plan of achieving growth in these challenging times. - Zain Jaffer , Zain Ventures

10. Prioritize Reaching A Proof Of Concept

In my mind, you should do everything you can to reach a proof of concept without bankrupting yourself or raising a meaningful amount of money. Funding yourself can be a daunting prospect, but if solving the proof of concept means that you need millions of dollars before you even get off the ground, it’s going to be an uphill battle when trying to raise capital. - Howard Makler , Innovation Refunds

11. Understand Finance And Economic Basics

The most essential part is to know the basics of corporate finance and economics. Be able to understand and calculate all the options capital providers have apart from providing capital to your company. Another important part is being able to answer the following questions: "Why should my company be given the capital?", "How do I make capital providers sure in the promised ROCE'' and "What if I'm wrong?" - Oleg Chanchikov , CapyGroup

12. Determine What You Need In A Financial Partner

There is a natural tendency for business owners to run head-on at challenges and opportunities. First, business owners should think about what they need and the profile of their ideal capital partner. Second, research potential investors. Finally, reach out to them in a thoughtful manner, ideally finding common referral points to connect. This strategy takes more time upfront but it leads to better results. - Brett Hickey , Star Mountain Capital

13. Explore Alternative Financing Options

Diversify your funding sources by exploring alternative financing options such as venture capital, crowdfunding or government grants. This reduces reliance on traditional banking and increases your chances of securing capital by appealing to a broader range of investors, enhancing financial stability and growth potential. - Malcolm Allen , Graduate America

14. Lean On Your Network Of Bankers And Partners

Relationships always matter. If you’ve been good to your bankers and capital partners in the good times, you should find the ability to work through and with them in the difficult times. Sometimes, chasing every last basic point is pound-foolish. - Seth Gellis , Community Preservation Partners

15. Identify Funding Partners Who Target Entrepreneurs In Need

Align your search for financial resources and support to those seeking to become long-term partners in growth. There are many entrepreneurs who are often limited in capital and those who embrace the opportunity to be helpful. It is wise to look for funding sources that value people in need of capital and shop them for a fit. - Paul L. Gunn, Jr. , KUOG Corporation

16. Engage Investment Firms In Your Industry

If your company can’t obtain capital from traditional lenders, search for investment firms that understand your business and are aligned with your business’s goals and objectives. Developing a partnership with a firm that is aligned will reduce the likelihood of interference. For example, a company in growth mode needs a lender who understands the purpose and use of the capital being raised. - Joseph White , Real Estate and Mortgage Institute of Canada Inc.

17. Articulate What Sets Your Business Apart

Independent of interest rates or cost of funds, Founders need to be able to clearly articulate their competitive differentiation and build credibility instantly by making the right hires. Founders who hire experienced leaders will fare much better in fundraising because no one wants to fund "lessons learned." Young founders definitely need a balance of seasoned executives to cover the gap. - Brian Shore , elevēo

18. Show A Track Record Of Success

The best way to find capital in any environment is to show a proven track record of success. Banks and private investors look for lending opportunities with low risk. Part of being a business owner is taking risks but if you can't show where the risks paid off, lenders will see you as a bigger risk than many are willing to take. If you show lenders your success, they'll be open to lending more. - Chris Clear , Clear Storage Group, LLC

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