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Setting Business Goals & Objectives: 4 Considerations

• 31 Oct 2023

Setting business goals and objectives is important to your company’s success. They create a roadmap to help you identify and manage risk , gain employee buy-in, boost team performance , and execute strategy . They’re also an excellent marker to measure your business’s performance.

Yet, meeting those goals can be difficult. According to an Economist study , 90 percent of senior executives from companies with annual revenues of one billion dollars or more admitted they failed to reach all their strategic goals because of poor implementation. In order to execute strategy, it’s important to first understand what’s attainable when developing organizational goals and objectives.

If you’re struggling to establish realistic benchmarks for your business, here’s an overview of what business goals and objectives are, how to set them, and what you should consider during the process.

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What Are Business Goals and Objectives?

Business objectives dictate how your company plans to achieve its goals and address the business’s strengths, weaknesses, and opportunities. While your business goals may shift, your objectives won’t until there’s an organizational change .

Business goals describe where your company wants to end up and define your business strategy’s expected achievements.

According to the Harvard Business School Online course Strategy Execution , there are different types of strategic goals . Some may even push you and your team out of your comfort zone, yet are important to implement.

For example, David Rodriguez, global chief human resources officer at Marriott, describes in Strategy Execution the importance of stretch goals and “pushing people to not accept today's level of success as a final destination but as a starting point for what might be possible in the future.”

It’s important to strike a balance between bold and unrealistic, however. To do this, you must understand how to responsibly set your business goals and objectives.

Related: A Manager’s Guide To Successful Strategy Implementation

How to Set Business Goals and Objectives

While setting your company’s business goals and objectives might seem like a simple task, it’s important to remember that these goals shouldn’t be based solely on what you hope to achieve. There should be a correlation between your company’s key performance indicators (KPIs)—quantifiable success measures—and your business strategy to justify why the goal should, and needs to, be achieved.

This is often illustrated through a strategy map —an illustration of the cause-and-effect relationships that underpin your strategy. This valuable tool can help you identify and align your business goals and objectives.

“A strategy map gives everyone in your business a road map to understand the relationship between goals and measures and how they build on each other to create value,” says HBS Professor Robert Simons in Strategy Execution .

While this roadmap can be incredibly helpful in creating the right business goals and objectives, a balanced scorecard —a tool to help you track and assess non-financial measures—ensures they’re achievable through your current business strategy.

“Ask yourself, if I picked up a scorecard and examined the measures on that scorecard, could I infer what the business's strategy was,” Simon says. “If you've designed measures well, the answer should be yes.”

According to Strategy Execution , these measures are necessary to ensure your performance goals are achieved. When used in tandem, a balanced scorecard and strategy map can also tell you whether your goals and objectives will create value for you and your customers.

“The balanced scorecard combines the traditional financial perspective with additional perspectives that focus on customers, internal business processes, and learning and development,” Simons says.

These four perspectives are key considerations when setting your business goals and objectives. Here’s an overview of what those perspectives are and how they can help you set the right goals for your business.

4 Things to Consider When Setting Business Goals and Objectives

1. financial measures.

It’s important to ensure your plans and processes lead to desired levels of economic value. Therefore, some of your business goals and objectives should be financial.

Some examples of financial performance goals include:

• Cutting costs
• Increasing revenue
• Improving cash flow management

“Businesses set financial goals by building profit plans—one of the primary diagnostic control systems managers use to execute strategy,” Simons says in Strategy Execution . “They’re budgets drawn up for business units that have both revenues and expenses, and summarize the anticipated revenue inflows and expense outflows for a specified accounting period.”

Profit plans are essential when setting your business goals and objectives because they provide a critical link between your business strategy and economic value creation.

According to Simons, it’s important to ask three questions when profit planning:

• Does my business strategy generate enough profit to cover costs and reinvest in the business?
• Does my business generate enough cash to remain solvent through the year?
• Does my business create sufficient financial returns for investors?

By mapping out monetary value, you can weigh the cost of different strategies and how likely it is you’ll meet your company and investors’ financial expectations.

2. Customer Satisfaction

To ensure your business goals and objectives aid in your company’s long-term success, you need to think critically about your customers’ satisfaction. This is especially important in a world where customer reviews and testimonials are crucial to your organization’s success.

“Everything that's important to the business, we have a KPI and we measure it,” says Tom Siebel, founder, chairman, and CEO of C3.ai, in Strategy Execution . “And what could be more important than customer satisfaction?”

Unlike your company’s reputation, measuring customer satisfaction has a far more personal touch in identifying what customers love and how to capitalize on it through future strategic initiatives .

“We do anonymous customer satisfaction surveys every quarter to see how we're measuring up to our customer expectations,” Siebel says.

While this is one example, your customer satisfaction measures should reflect your desired market position and focus on creating additional value for your audience.

Related: 3 Effective Methods for Assessing Customer Needs

3. Internal Business Processes

Internal business processes is another perspective that should factor into your goal setting. It refers to several aspects of your business that aren’t directly affected by outside forces. Since many goals and objectives are driven by factors such as business competition and market shifts, considering internal processes can create a balanced business strategy.

“Our goals are balanced to make sure we’re holistically managing the business from a financial performance, quality assurance, innovation, and human talent perspective,” says Tom Polen, CEO and president of Becton Dickinson, in Strategy Execution .

According to Strategy Execution , internal business operations are broken down into the following processes:

• Operations management
• Customer management

While improvements to internal processes aren’t driven by economic value, these types of goals can still reap a positive return on investment.

“We end up spending much more time on internal business process goals versus financial goals,” Polen says. “Because if we take care of them, the financial goals will follow at the end of the day.”

4. Learning and Growth Opportunities

Another consideration while setting business goals and objectives is learning and growth opportunities for your team. These are designed to increase employee satisfaction and productivity.

According to Strategy Execution , learning and growth opportunities touch on three types of capital:

• Human: Your employees and the skills and knowledge required for them to meet your company’s goals
• Information: The databases, networks, and IT systems needed to support your long-term growth
• Organization: Ensuring your company’s leadership and culture provide people with purpose and clear objectives

Employee development is a common focus for learning and growth goals. Through professional development opportunities , your team will build valuable business skills and feel empowered to take more risks and innovate.

To create a culture of innovation , it’s important to ensure there’s a safe space for your team to make mistakes—and even fail.

“We ask that people learn from their mistakes,” Rodriguez says in Strategy Execution . “It's really important to us that people feel it’s safe to try new things. And all we ask is people extract their learnings and apply it to the next situation.”

Achieve Your Business Goals

Business goals aren’t all about your organization’s possible successes. It’s also about your potential failures.

“When we set goals, we like to imagine a bright future with our business succeeding,” Simons says in Strategy Execution . “But to identify your critical performance variables, you need to engage in an uncomfortable exercise and consider what can cause your strategy to fail.”

Anticipating potential failures isn’t easy. Enrolling in an online course—like HBS Online’s Strategy Execution —can immerse you in real-world case studies of past strategy successes and failures to help you better understand where these companies went wrong and how to avoid it in your business.

Do you need help setting your business goals and objectives? Explore Strategy Execution —one of our online strategy courses —and download our free strategy e-book to gain the insights to create a successful strategy.

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How To Write A Business Plan (2024 Guide)

Updated: Apr 17, 2024, 11:59am

Table of Contents

Brainstorm an executive summary, create a company description, brainstorm your business goals, describe your services or products, conduct market research, create financial plans, bottom line, frequently asked questions.

Every business starts with a vision, which is distilled and communicated through a business plan. In addition to your high-level hopes and dreams, a strong business plan outlines short-term and long-term goals, budget and whatever else you might need to get started. In this guide, we’ll walk you through how to write a business plan that you can stick to and help guide your operations as you get started.

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Drafting the Summary

An executive summary is an extremely important first step in your business. You have to be able to put the basic facts of your business in an elevator pitch-style sentence to grab investors’ attention and keep their interest. This should communicate your business’s name, what the products or services you’re selling are and what marketplace you’re entering.

Ask for Help

When drafting the executive summary, you should have a few different options. Enlist a few thought partners to review your executive summary possibilities to determine which one is best.

After you have the executive summary in place, you can work on the company description, which contains more specific information. In the description, you’ll need to include your business’s registered name , your business address and any key employees involved in the business. 

The business description should also include the structure of your business, such as sole proprietorship , limited liability company (LLC) , partnership or corporation. This is the time to specify how much of an ownership stake everyone has in the company. Finally, include a section that outlines the history of the company and how it has evolved over time.

Wherever you are on the business journey, you return to your goals and assess where you are in meeting your in-progress targets and setting new goals to work toward.

Numbers-based Goals

Goals can cover a variety of sections of your business. Financial and profit goals are a given for when you’re establishing your business, but there are other goals to take into account as well with regard to brand awareness and growth. For example, you might want to hit a certain number of followers across social channels or raise your engagement rates.

Another goal could be to attract new investors or find grants if you’re a nonprofit business. If you’re looking to grow, you’ll want to set revenue targets to make that happen as well.

Intangible Goals

Goals unrelated to traceable numbers are important as well. These can include seeing your business’s advertisement reach the general public or receiving a terrific client review. These goals are important for the direction you take your business and the direction you want it to go in the future.

The business plan should have a section that explains the services or products that you’re offering. This is the part where you can also describe how they fit in the current market or are providing something necessary or entirely new. If you have any patents or trademarks, this is where you can include those too.

If you have any visual aids, they should be included here as well. This would also be a good place to include pricing strategy and explain your materials.

This is the part of the business plan where you can explain your expertise and different approach in greater depth. Show how what you’re offering is vital to the market and fills an important gap.

You can also situate your business in your industry and compare it to other ones and how you have a competitive advantage in the marketplace.

Other than financial goals, you want to have a budget and set your planned weekly, monthly and annual spending. There are several different costs to consider, such as operational costs.

Business Operations Costs

Rent for your business is the first big cost to factor into your budget. If your business is remote, the cost that replaces rent will be the software that maintains your virtual operations.

Marketing and sales costs should be next on your list. Devoting money to making sure people know about your business is as important as making sure it functions.

Other Costs

Although you can’t anticipate disasters, there are likely to be unanticipated costs that come up at some point in your business’s existence. It’s important to factor these possible costs into your financial plans so you’re not caught totally unaware.

Business plans are important for businesses of all sizes so that you can define where your business is and where you want it to go. Growing your business requires a vision, and giving yourself a roadmap in the form of a business plan will set you up for success.

How do I write a simple business plan?

When you’re working on a business plan, make sure you have as much information as possible so that you can simplify it to the most relevant information. A simple business plan still needs all of the parts included in this article, but you can be very clear and direct.

What are some common mistakes in a business plan?

The most common mistakes in a business plan are common writing issues like grammar errors or misspellings. It’s important to be clear in your sentence structure and proofread your business plan before sending it to any investors or partners.

What basic items should be included in a business plan?

When writing out a business plan, you want to make sure that you cover everything related to your concept for the business,  an analysis of the industry―including potential customers and an overview of the market for your goods or services―how you plan to execute your vision for the business, how you plan to grow the business if it becomes successful and all financial data around the business, including current cash on hand, potential investors and budget plans for the next few years.

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Julia is a writer in New York and started covering tech and business during the pandemic. She also covers books and the publishing industry.

Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist covering small business marketing content. She is a former Google Tech Entrepreneur and she holds an MSc in International Marketing from Edinburgh Napier University. Additionally, she is a Columnist at Inc. Magazine.

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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• Setting business goals: The first step ...

Setting business goals: The first step to a successful business

Business goals are a predetermined target that a business or individual plans to achieve in a set period of time. This article discusses the importance of business goals and reasons why you should set them for your team.

These are just a few benefits the goal setting process provides. Whether you're looking at the big picture or looking for small stepping stones, we'll explain everything you need to know to set goals for your business.

What are business goals?

Business goals are a predetermined target that a business or individual plans to achieve in a set period of time. These goals are often split into short-term goals and long-term goals . Business goals can be general and high level, or they can focus on specific measurable actions. 

A good example of a general business goal is a mission statement. Missions statements are a general goal because they don't have one metric that defines their success. They’re more often used as a guiding North Star—something your team can strive for as opposed to hitting hard numbers.

Alternatively, you can set specific goals—measurable goals that are easy to track as your team progresses towards them. When someone talks about "setting goals" or the "goal setting process," they're talking about specific goals. A common goal setting process to use is the SMART goals process .

Short-term goals

Short-term goals are often bound by a set period of time, usually ranging from a few hours to a full year. Long-term goals can also be time-bound, but if they are, they’re typically set further into the future. 

Short-term goals are often used as building blocks towards larger goals. A common strategy in business is to set multiple short-term goals to make the long-term goals more achievable.

Examples of short-term business goals:

Increase net promoter score by 10 points this quarter.

Hire 12 new support representatives by the end of the year.

Increase employee satisfaction by 20%.

Long-term goals

Long-term goals are bigger visions—goals you want to achieve further into the future. A common long-term goal is a 10-year goal. Think about where you want your business to be 10 years from now. What business objectives do you want to have achieved by then? What new businesses do you want to break into, if any? 

Long-term goals are often used as vision or mission statements —these goals serve as a compass for your business to help you move in the right direction. Think of your goals as a map to get you where you want to go. Long-term goals may not tell you how to get there exactly, but they point you in the right direction. Short-term goals are like a GPS. They provide step-by-step directions on how to get where you want to go. 

Examples of long-term business goals:

Nike : To bring inspiration and innovation to every athlete in the world.

Patagonia : We're in business to save our home planet.

Google : To organize the world's information and make it universally accessible and useful.

Why are business goals important?

Setting business goals is a best practice for a reason—goals help drive businesses in the right direction. Here are a few more reasons why companies take the time to establish strong goals. 

Confidently define success

One of the easiest ways to know if your team is successful is by clearly outlining what success looks like. When you set your goals, take into consideration what you know your team is capable of, and push them slightly farther than expected.

There are a few common frameworks used to define goals. One of the most common ones used to create measurable and actionable goals is the Objectives and Key Results (OKRs) framework.

Connect work to goals

A good business strategy to get into the habit of doing is connecting your business goals to the work your team is already doing. When you connect daily work to short- and long-term goals, individual team members have a clear sense of what they need to do, when they need to complete it, and the strategies they're doing to achieve those goals. 

Not only are team members more confident in what they need to do, but it gives them a sense of pride and ownership over their work. Team members are confident in how the work they’re doing impacts your business and how they’ve contributed to that success.

Keep teams aligned

A key benefit of using business goals is to align teams towards a common goal. Establishing clear business objectives allows team leaders to define which tactics their individual teams should use to achieve these goals. 

For example, imagine your company's overall business goal is to increase profitability by 10%. This is an overarching goal, but there are many different ways your company can achieve this. By establishing smaller, more tailored goals, business leaders can define the specific strategy you plan to take to achieve this goal. Your sales team may increase their sales quota, and your marketing team may implement a new outreach strategy. These are two different tactics that can be implemented to ultimately reach the same goal.

Maintain accountability

Once you set business goals, you can then break them down to the individual level. Using a technique like this can help maintain accountability from the leadership level all the way down to individual team members. When individual team members are responsible for their individual goals, it's easy for managers to gauge how they're performing and when they might need more support. 

Inform decision-making

If your company regularly tracks its business goals, you can use past goals as a way to inform your decision making process. For example, if your team sets up a new marketing strategy to track your goals and progress, you can use that information to set your business strategy for the next year based on performance.

Tips for setting clear business goals

Now that you know the reasons why business goals are important, here are a few tips on how to establish them.

Use a framework to set goals

If you're on the path to setting your first business goal, it can be challenging to figure out where to start. You want to make sure that your goal is achievable, but not so easy to achieve that it's not a challenge.  Goal setting frameworks like SMART goals or OKRs are a good way to establish your first set of business goals.

Co-create with other business leaders

Your team doesn't work in a bubble. The work that your team does can affect other teams in your company and your business strategy as a whole. This is why co-creating with stakeholders is important. By working together, your team can utilize their unique knowledge and experience to set goals and create a sound business plan.

Start with the big picture

When you're establishing your goals, choosing numbers and tactics can feel overwhelming. To prevent that, start with the big picture first. Focus on answering the questions:

What do you want your company to stand for? 

Why was your company created? 

Where do you want to be in 10 years? What about 25 years? 

Once you’ve defined a big picture mission, break it down into smaller, more actionable goals. What steps can you take to get there? What new products can you introduce to help achieve that overall, big picture mission? 

With goal setting, there is no right or wrong answer. It's all about finding the strategies and methodologies that work best for your team.

Manage goals using software

There's no use in setting goals if you set them and forget them in a document somewhere, only to be opened again at the end of a quarter. Using software to regularly track goal progress is important, and what better way to do that than to use software that connects your goals to the work that needs to be done? 

Connecting the work you’re doing to goals is easy. Guru aligns their company OKRs to their projects with Asana. The Guru team uses Asana as a source of truth for clarity and accountability company-wide.

Start setting—and achieving—business goals today

All businesses start small, and setting goals is how they grow into successful companies. If you're interested in learning more about different goal strategies, how to measure them, or where to start with planning, visit the Asana goals resource page for more information.

Related resources

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How to accomplish big things with long-term goals

What are objectives and key results (OKRs)?

Fix these common onboarding challenges to boost productivity

How to Set Small Business Goals

8 min. read

Updated January 4, 2024

How happy are you with your business’s performance? Are you patting yourself on the back, having nailed every goal? 

If the answer is no, you’re like many business owners who struggle to hit business targets. You know exactly what you want—a bigger business, larger per-customer sales, more leads, higher profits—but you struggle to meet your goals.

In this article, we’ll show you how to set clear and actionable business goals to help you reach your full potential as an entrepreneur. 

How to set achievable business goals

There is always so much to do when you’re a business owner. You need to find new clients, keep your existing clients happy, manage your finances, streamline your processes, and motivate your employees—all at the same time. Here’s how you sort through all that clutter and set goals to move the needle.

1. Clarify the goals you’ll prioritize

To ensure you don’t waste time and money—you must know your top priorities when setting company goals for the year. These should be clear opportunities or issues that show the most significant potential to grow your business.

So, how do you identify them?

A SWOT analysis provides a simple but effective framework. You’ll look at your business and competitors to identify potential advantages and shortcomings that can set you apart. 

If you’re an up-and-running business, you’ll find additional value by reviewing your financial statements and forecasts . 

• Where did you over or underperform?
• Is your cash on hand what you expected?
• Are you overspending in any areas?

Answering questions like these will help you understand your current financial position. From there, you can dig deeper into specific departments, initiatives, line items, etc., and uncover what opportunities are worth tackling in the next year.  

Example: You run a local salon, and during your review, there was an immediate red flag—revenue is down. Exploring a bit further, you found that the average order value of each customer had decreased and that the number of new customers was far lower than the previous year. 

Considering those issues, you develop the following business goals:

• Introduce new product offerings and add-ons to increase revenue from existing clients.
• Increase client base by targeting local office workers.

Please note: These aren’t goals yet! They are your key areas to focus on. After you’ve discussed them with your team—which we’ll cover next—you’ll turn them into SMART goals (specific, measurable goals) to ensure that you’ll take action on them.

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2. Review these goals with your team

Your team is out there every day, working on your products or talking to clients. They are the people who can tell you what’s working and what’s not, what’s holding your business back, and where you should be focusing your efforts and setting your business goals for the year ahead.

So, once you’ve selected what you think should be the top goals for your business, sit down with your employees, and get their feedback. They may agree or have valuable insights that you haven’t considered.

By involving your employees in the goal-setting process, you make them feel valued and engaged while at the same time ensuring your goals are realistic and achievable.

Dig deeper: How to set team goals that actually work

3. Make your goals SMART

You have two to three business goals. Now, it’s time to make them actionable. While you can use several different goal-setting frameworks to do this, we recommend SMART goals:

• Specific: What exactly are you going to do?
• Measurable: How will you know if you are succeeding?
• Achievable: How will you implement the goal?
• Relevant: Does the goal connect to your overall objectives?
• Timely: When will you achieve the goal by?

Let’s take one of our business goals and turn it into a SMART goal.

Original idea: Increase client base by targeting local office workers.

• Specific: Gain 20 new customers from the surrounding office buildings.
• Measurable: Measure progress by tracking the number of new customers won and profits made while maintaining our existing customer base.
• Achievable: We will create a customized sales promotion, which we will publicize via leaflets and flyers in the office building.
• Relevant: This will help us increase the number of new customers, thus growing the salon business and profits.
• Timely: We will achieve this by the end of Q2 2024.

Dig deeper: How to set SMART business goals

4. Set key performance indicators (KPIs)

The SMART goal format should give you an idea of your timeline and what it will take to achieve your goal. However, you need to establish how you’ll measure your progress. One of the most common ways to do this is by adopting Key Performance Indicators (KPIs) .

These numerical values, like the number of new clients from a specific campaign or monthly sales targets, indicate whether the goal is within reach. While creating SMART goals, you’ll define relevant KPIs, ensuring they align with company and individual objectives. 

For example, a salon might have overall KPIs related to customer acquisition from a campaign, while a stylist might focus on customer satisfaction and spending KPIs.

Dig deeper: 12 tips for choosing effective KPIs

5. Set a structure to review and revise

If you want to make something happen, you need to create a schedule and build good habits around it.

If you want to get healthier, you need to add exercise to your schedule, plan time to cook healthy meals, and so on. You should treat your business goals the same way. You need to schedule the actions you’ll take to reach your KPIs.

It’s a great idea to put regular (possibly monthly) business plan review meetings on your company calendar now This will help you set, revisit and revise specific short-and-long-term business goals and objectives.

To make these meetings less overwhelming, try and automate as much as possible. Use a calendar for both you and your staff, and add reminders and online task management software to organize tasks, set deadlines, and prompt you for repeat actions. 

Dig deeper: How to develop a strategic action plan

• The importance of setting business goals

Why are goals important? Here are a few reasons:

Goals provide clarity

There are plenty of things that you want to accomplish as a business owner. But what tasks are most important? How do you know if you’re making progress? 

Setting well-structured goals will help you prioritize work, establish a direction, and provide a framework to measure success. No more random assignments or distractions—just a clear idea of what you want to achieve and how you’ll get there.

Goals motivate and align your team

Aimlessly taking on work does not lead to success. Without a set goal, there’s no shining beacon ahead that you’re trying to reach. And no milestones on the way there to celebrate and keep you going.

Having company and team goals provides greater motivation. It also makes it far easier to set individual goals that connect each employee’s work to that larger objective. 

Goals provide a structure to measure success 

Setting goals requires you to consider what metrics you’ll use to measure success. Doing this upfront makes tracking your progress much more manageable and lets you know if you’re still on track.

Skipping the goal-setting process means your ideas of success will remain vague and aimless. You’ll be more likely to run down unproductive rabbit holes and may never actually realize your aspirations.

Goals help your business grow

Much like writing a business plan increases your chances of successfully launching a business —setting goals increases your chances of achieving regular business growth. You’ll have well-structured ideas of where you want to go, how to get there, and if you’re progressing. 

And by continuing to set, review, and revise your goals—you’ll speed up the process and avoid costly mistakes.  

• Types of business goals

The goal-setting process in this article focused primarily on long-term business performance goals—the kind you’ll set once a year. These broader goals may focus on any of the following:

Financial goals

Whether it’s achieving a specific net profit margin or finding ways to cut back on certain expenses—these goals focus on growing or maintaining financial health.

Customer-related goals

These goals are all about better serving your target customer. This may include improving customer service, increasing repeat purchases, or expanding your clientele.

Operational goals

Sometimes, you’ll find savings by optimizing current workflows. This could mean reducing product production times, eliminating error rates, or streamlining your supply chain.

Marketing and sales goals

Marketing and sales goals can be broad, like boosting brand awareness, or very specific, like improving specific channel sales or launching a new marketing campaign.

Employee and team goals

These are goals focused on reducing employee turnover, boosting team spirit, or furthering education to keep everyone at the top of their game.

Sustainability and social responsibility goals

These are goals that may not directly impact your bottom line. Instead, they focus on accomplishing an altruistic mission such as shrinking your carbon footprint or giving back to the community.

Innovation and development goals

Far more opportunistic and research-based goals that could include launching a new product, embracing the latest tech, or venturing into new markets.

Compliance and risk management goals

Goals to ensure your operations meet all legal requirements and have strategies in place to dodge financial and operational pitfalls.

• Choosing the right goals is a process

Selecting goals and creating a plan to reach them takes time. Even by following the steps in this article, there’s no guarantee that you’ll select the best opportunity and be able to efficiently pursue it. 

That’s why the review process is so crucial. Rather than pursuing a goal that won’t make an impact, you can quickly pivot if you realize something isn’t working. 

Goal setting is just the start, and plenty of other ways to better manage and grow your business. 

• Create a business strategy
• Manage during a crisis
• Selling your business

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

Kody Wirth is a content writer and SEO specialist for Palo Alto Software—the creator's of Bplans and LivePlan. He has 3+ years experience covering small business topics and runs a part-time content writing service in his spare time.

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• How to set business goals

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Goals and Objectives for Business Plan with Examples

Nov.05, 2023

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Every business needs a clear vision of what it wants to achieve and how it plans to get there. A business plan is a document that outlines the goals and objectives of a business, as well as the strategies and actions to achieve them. A well-written business plan from business plan specialists can help a business attract investors, secure funding, and guide its growth.

Understanding Business Objectives

Business objectives are S pecific, M easurable, A chievable, R elevant, and T ime-bound (SMART) statements that describe what a business wants to accomplish in a given period. They are derived from the overall vision and mission of the business, and they support its strategic direction.

Business plan objectives can be categorized into different types, depending on their purpose and scope. Some common types of business objectives are:

• Financial objectives
• Operational objectives
• Marketing objectives
• Social objectives

For example, a sample of business goals and objectives for a business plan for a bakery could be:

• To increase its annual revenue by 20% in the next year.
• To reduce its production costs by 10% in the next six months.
• To launch a new product line of gluten-free cakes in the next quarter.
• To improve its customer satisfaction rating by 15% in the next month.

The Significance of Business Objectives

Business objectives are important for several reasons. They help to:

• Clarify and direct the company and stakeholders
• Align the company’s efforts and resources to a common goal
• Motivate and inspire employees to perform better
• Measure and evaluate the company’s progress and performance
• Communicate the company’s value and advantage to customers and the market

For example, by setting a revenue objective, a bakery can focus on increasing its sales and marketing efforts, monitor its sales data and customer feedback, motivate its staff to deliver quality products and service, communicate its unique selling points and benefits to its customers, and adjust its pricing and product mix according to market demand.

Advantages of Outlining Business Objectives

Outlining business objectives is a crucial step in creating a business plan. It serves as a roadmap for the company’s growth and development. Outlining business objectives has several advantages, such as:

• Clarifies the company’s vision, direction, scope, and boundaries
• Break down the company’s goals into smaller tasks and milestones
• Assigns roles and responsibilities and delegates tasks
• Establishes standards and criteria for success and performance
• Anticipates risks and challenges and devises contingency plans

For example, by outlining its business objective for increasing the average revenue per customer in its business plan, a bakery can:

• Attract investors with its viable business plan for investors
• Secure funding from banks or others with its realistic financial plan
• Partner with businesses or organizations that complement or enhance its products or services
• Choose the best marketing, pricing, product, staff, location, etc. for its target market and customers

Setting Goals and Objectives for a Business Plan

Setting goals and objectives for a business plan is not a one-time task. It requires careful planning, research, analysis, and evaluation. To set effective goals and objectives for a business plan, one should follow some best practices, such as:

OPTION 1: Use the SMART framework. A SMART goal or objective is clear, quantifiable, realistic, aligned with the company’s mission and vision, and has a deadline. SMART stands for:

• Specific – The goal or objective should be clear, concise, and well-defined.
• Measurable – The goal or objective should be quantifiable or verifiable.
• Achievable – The goal or objective should be realistic and attainable.
• Relevant – The goal or objective should be aligned with the company’s vision, mission, and values.
• Time-bound – The goal or objective should have a deadline or timeframe.

For example, using the SMART criteria, a bakery can refine its business objective for increasing the average revenue per customer as follows:

• Specific – Increase revenue with new products and services from $5 to $5.50.
• Measurable – Track customer revenue monthly with sales reports.
• Achievable – Research the market, develop new products and services, and train staff to upsell and cross-sell.
• Relevant – Improve customer satisfaction and loyalty, profitability and cash flow, and market competitiveness.
• Time-bound – Achieve this objective in six months, from January 1st to June 30th.

OPTION 2: Use the OKR framework. OKR stands for O bjectives and K ey R esults. An OKR is a goal-setting technique that links the company’s objectives with measurable outcomes. An objective is a qualitative statement of what the company wants to achieve. A key result is a quantitative metric that shows how the objective will be achieved.

OPTION 3: Use the SWOT analysis. SWOT stands for S trengths, W eaknesses, O pportunities, and T hreats. A SWOT analysis is a strategic tool that helps the company assess the internal and external factors that affect its goals and objectives.

• Strengths – Internal factors that give the company an advantage over others. 
• Weaknesses – Internal factors that limit the company’s performance or growth. 
• Opportunities – External factors that allow the company to improve or expand. 
• Threats – External factors that pose a risk or challenge to the company.

For example, using these frameworks, a bakery might set the following goals and objectives for its SBA business plan :

Objective – To launch a new product line of gluten-free cakes in the next quarter.

Key Results:

• Research gluten-free cake market demand and preferences by month-end.
• Create and test 10 gluten-free cake recipes by next month-end.
• Make and sell 100 gluten-free cakes weekly online or in-store by quarter-end.

SWOT Analysis:

• Expertise and experience in baking and cake decorating.
• Loyal and satisfied customer base.
• Strong online presence and reputation.

Weaknesses:

• Limited production capacity and equipment.
• High production costs and low-profit margins.
• Lack of knowledge and skills in gluten-free baking.

Opportunities:

• Growing demand and awareness for gluten-free products.
• Competitive advantage and differentiation in the market.
• Potential partnerships and collaborations with health-conscious customers and organizations.
• Increasing competition from other bakeries and gluten-free brands.
• Changing customer tastes and preferences.
• Regulatory and legal issues related to gluten-free labeling and certification.

Examples of Business Goals and Objectives

To illustrate how to write business goals and objectives for a business plan, let’s use a hypothetical example of a bakery business called Sweet Treats. Sweet Treats is a small bakery specializing in custom-made cakes, cupcakes, cookies, and other baked goods for various occasions.

Here are some examples of possible startup business goals and objectives for Sweet Treats:

Earning and Preserving Profitability

Profitability is the ability of a company to generate more revenue than expenses. It indicates the financial health and performance of the company. Profitability is essential for a business to sustain its operations, grow its market share, and reward its stakeholders.

Some possible objectives for earning and preserving profitability for Sweet Treats are:

• To increase the gross profit margin by 5% in the next quarter by reducing the cost of goods sold
• To achieve a net income of $100,000 in the current fiscal year by increasing sales and reducing overhead costs

Ensuring Consistent Cash Flow

Cash flow is the amount of money that flows in and out of a company. A company needs to have enough cash to cover its operating expenses, pay its debts, invest in its growth, and reward its shareholders.

Some possible objectives for ensuring consistent cash flow for Sweet Treats are:

• Increase monthly operating cash inflow by 15% by the end of the year by improving the efficiency and productivity of the business processes
• Increase the cash flow from investing activities by selling or disposing of non-performing or obsolete assets

Creating and Maintaining Efficiency

Efficiency is the ratio of output to input. It measures how well a company uses its resources to produce its products or services. Efficiency can help a business improve its quality, productivity, customer satisfaction, and profitability.

Some possible objectives for creating and maintaining efficiency for Sweet Treats are:

• To reduce the production time by 10% in the next month by implementing lean manufacturing techniques
• To increase the customer service response rate by 20% in the next week by using chatbots or automated systems

Winning and Keeping Clients

Clients are the people or organizations that buy or use the products or services of a company. They are the source of revenue and growth for a company. Therefore, winning and keeping clients is vital to generating steady revenue, increasing customer loyalty, and enhancing word-of-mouth marketing.

Some possible objectives for winning and keeping clients for Sweet Treats are:

• To acquire 100 new clients in the next quarter by launching a referral program or a promotional campaign
• To retain 90% of existing clients in the current year by offering loyalty rewards or satisfaction guarantees

Building a Recognizable Brand

A brand is the name, logo, design, or other features distinguishing a company from its competitors. It represents the identity, reputation, and value proposition of a company. Building a recognizable brand is crucial for attracting and retaining clients and creating a loyal fan base.

Some possible objectives for building a recognizable brand for Sweet Treats are:

• To increase brand awareness by 50% in the next six months by creating and distributing engaging content on social media platforms
• To improve brand image by 30% in the next year by participating in social causes or sponsoring events that align with the company’s values

Expanding and Nurturing an Audience with Marketing

An audience is a group of people interested in or following a company’s products or services. They can be potential or existing clients, fans, influencers, or partners. Expanding and nurturing an audience with marketing is essential for increasing a company’s visibility, reach, and engagement.

Some possible objectives for expanding and nurturing an audience with marketing for Sweet Treats are:

• To grow the email list by 1,000 subscribers in the next month by offering a free ebook or a webinar
• To nurture leads by sending them relevant and valuable information through email newsletters or blog posts

Strategizing for Expansion

Expansion is the process of increasing a company’s size, scope, or scale. It can involve entering new markets, launching new products or services, opening new locations, or forming new alliances. Strategizing for expansion is important for diversifying revenue streams, reaching new audiences, and gaining competitive advantages.

Some possible objectives for strategizing for expansion for Sweet Treats are:

• To launch a new product or service line by developing and testing prototypes
• To open a new branch or franchise by securing funding and hiring staff

Template for Business Objectives

A template for writing business objectives is a format or structure that can be used as a guide or reference for creating your objectives. A template for writing business objectives can help you to ensure that your objectives are SMART, clear, concise, and consistent.

To use this template, fill in the blanks with your information. Here is an example of how you can use this template:

Example of Business Objectives

Our business is a _____________ (type of business) that provides _____________ (products or services) to _____________ (target market). Our vision is to _____________ (vision statement) and our mission is to _____________ (mission statement).

Our long-term business goals and objectives for the next _____________ (time period) are:

S pecific: We want to _____________ (specific goal) by _____________ (specific action).

M easurable: We will measure our progress by _____________ (quantifiable indicator).

A chievable: We have _____________ (resources, capabilities, constraints) that will enable us to achieve this goal.

R elevant: This goal supports our vision and mission by _____________ (benefit or impact).

T ime-bound: We will complete this goal by _____________ (deadline).

Repeat this process for each goal and objective for your business plan.

How to Monitor Your Business Objectives?

After setting goals and objectives for your business plan, you should check them regularly to see if you are achieving them. Monitoring your business objectives can help you to:

• Track your progress and performance
• Identify and overcome any challenges
• Adjust your actions and strategies as needed

Some of the tools and methods that you can use to monitor your business objectives are:

• Dashboards – Show key data and metrics for your objectives with tools like Google Data Studio, Databox, or DashThis.
• Reports – Get detailed information and analysis for your objectives with tools like Google Analytics, Google Search Console, or SEMrush.
• Feedback – Learn from your customers and their needs and expectations with tools like SurveyMonkey, Typeform, or Google Forms.

Strategies for Realizing Business Objectives

To achieve your business objectives, you need more than setting and monitoring them. You need strategies and actions that support them. Strategies are the general methods to reach your objectives. Actions are the specific steps to implement your strategies.

Different objectives require different strategies and actions. Some common types are:

• Marketing strategies
• Operational strategies
• Financial strategies
• Human resource strategies
• Growth strategies

To implement effective strategies and actions, consider these factors:

• Alignment – They should match your vision, mission, values, goals, and objectives
• Feasibility – They should be possible with your capabilities, resources, and constraints
• Suitability – They should fit the context and needs of your business

How OGSCapital Can Help You Achieve Your Business Objectives?

We at OGSCapital can help you with your business plan and related documents. We have over 15 years of experience writing high-quality business plans for various industries and regions. We have a team of business plan experts who can assist you with market research, financial analysis, strategy formulation, and presentation design. We can customize your business plan to suit your needs and objectives, whether you need funding, launching, expanding, or entering a new market. We can also help you with pitch decks, executive summaries, feasibility studies, and grant proposals. Contact us today for a free quote and start working on your business plan.

Frequently Asked Questions

What are the goals and objectives in business.

Goals and objectives in a business plan are the desired outcomes that a company works toward. To describe company goals and objectives for a business plan, start with your mission statement and then identify your strategic and operational objectives. To write company objectives, you must brainstorm, organize, prioritize, assign, track, and review them using the SMART framework and KPIs.

What are the examples of goals and objectives in a business plan?

Examples of goals and objectives in a business plan are: Goal: To increase revenue by 10% each year for the next five years. Objective: To launch a new product line and create a marketing campaign to reach new customers.

What are the 4 main objectives of a business?

The 4 main objectives of a business are economic, social, human, and organic. Economic objectives deal with financial performance, social objectives deal with social responsibility, human objectives deal with employee welfare, and organic objectives deal with business growth and development.

What are goals and objectives examples?

Setting goals and objectives for a business plan describes what a business or a team wants to achieve and how they will do it. For example: Goal: To provide excellent customer service. Objective: To increase customer satisfaction scores by 20% by the end of the quarter. 

At OGSCapital, our business planning services offer expert guidance and support to create a realistic and actionable plan that aligns with your vision and mission. Get in touch to discuss further!

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

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How To Write a Business Plan

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

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

Table of contents

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

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Step 1: Write your executive summary

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

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

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

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

Step 2: Do your market research homework

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

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

Step 3: Set your business goals and objectives

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

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

Step 4: Plan your business strategy

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

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

Step 5: Describe your product or service

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

Step 6: Crunch the numbers

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

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

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

Step 7: Finalize your business plan

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

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

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The takeaway

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

Related content

• 5 Best Business Plan Software and Tools in 2023 for Your Small Business
• How to Get a Business License: What You Need to Know
• What Is a Cash Flow Statement?

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How to Write a Business Plan, Step by Step

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What is a business plan?

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

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

ZenBusiness

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

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

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

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

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

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

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

Your business’s registered name.

Address of your business location .

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

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

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

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

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

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

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

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

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

You should include the following:

An explanation of how your product or service works.

The pricing model for your product or service.

The typical customers you serve.

Your supply chain and order fulfillment strategy.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

NerdWallet’s picks for setting up your business finances:

The best business checking accounts .

The best business credit cards .

The best accounting software .

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

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

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

Licenses and permits.

Equipment leases.

Bank statements.

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

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

How much do you need?

with Fundera by NerdWallet

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

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

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

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

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

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

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What is a Business Plan? Definition, Tips, and Templates

Published: June 07, 2023

In an era where more than 20% of small enterprises fail in their first year, having a clear, defined, and well-thought-out business plan is a crucial first step for setting up a business for long-term success.

Business plans are a required tool for all entrepreneurs, business owners, business acquirers, and even business school students. But … what exactly is a business plan?

In this post, we'll explain what a business plan is, the reasons why you'd need one, identify different types of business plans, and what you should include in yours.

What is a business plan?

A business plan is a documented strategy for a business that highlights its goals and its plans for achieving them. It outlines a company's go-to-market plan, financial projections, market research, business purpose, and mission statement. Key staff who are responsible for achieving the goals may also be included in the business plan along with a timeline.

The business plan is an undeniably critical component to getting any company off the ground. It's key to securing financing, documenting your business model, outlining your financial projections, and turning that nugget of a business idea into a reality.

What is a business plan used for?

The purpose of a business plan is three-fold: It summarizes the organization’s strategy in order to execute it long term, secures financing from investors, and helps forecast future business demands.

Business Plan Template [ Download Now ]

Working on your business plan? Try using our Business Plan Template . Pre-filled with the sections a great business plan needs, the template will give aspiring entrepreneurs a feel for what a business plan is, what should be in it, and how it can be used to establish and grow a business from the ground up.

Purposes of a Business Plan

Chances are, someone drafting a business plan will be doing so for one or more of the following reasons:

1. Securing financing from investors.

Since its contents revolve around how businesses succeed, break even, and turn a profit, a business plan is used as a tool for sourcing capital. This document is an entrepreneur's way of showing potential investors or lenders how their capital will be put to work and how it will help the business thrive.

All banks, investors, and venture capital firms will want to see a business plan before handing over their money, and investors typically expect a 10% ROI or more from the capital they invest in a business.

Therefore, these investors need to know if — and when — they'll be making their money back (and then some). Additionally, they'll want to read about the process and strategy for how the business will reach those financial goals, which is where the context provided by sales, marketing, and operations plans come into play.

2. Documenting a company's strategy and goals.

A business plan should leave no stone unturned.

Business plans can span dozens or even hundreds of pages, affording their drafters the opportunity to explain what a business' goals are and how the business will achieve them.

To show potential investors that they've addressed every question and thought through every possible scenario, entrepreneurs should thoroughly explain their marketing, sales, and operations strategies — from acquiring a physical location for the business to explaining a tactical approach for marketing penetration.

These explanations should ultimately lead to a business' break-even point supported by a sales forecast and financial projections, with the business plan writer being able to speak to the why behind anything outlined in the plan.

Free Business Plan Template

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

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

You're all set!

Click this link to access this resource at any time.

Free Business Plan [Template]

Fill out the form to access your free business plan., 3. legitimizing a business idea..

Everyone's got a great idea for a company — until they put pen to paper and realize that it's not exactly feasible.

A business plan is an aspiring entrepreneur's way to prove that a business idea is actually worth pursuing.

As entrepreneurs document their go-to-market process, capital needs, and expected return on investment, entrepreneurs likely come across a few hiccups that will make them second guess their strategies and metrics — and that's exactly what the business plan is for.

It ensures an entrepreneur's ducks are in a row before bringing their business idea to the world and reassures the readers that whoever wrote the plan is serious about the idea, having put hours into thinking of the business idea, fleshing out growth tactics, and calculating financial projections.

4. Getting an A in your business class.

Speaking from personal experience, there's a chance you're here to get business plan ideas for your Business 101 class project.

If that's the case, might we suggest checking out this post on How to Write a Business Plan — providing a section-by-section guide on creating your plan?

What does a business plan need to include?

• Business Plan Subtitle
• Executive Summary
• Company Description
• The Business Opportunity
• Competitive Analysis
• Target Market
• Marketing Plan
• Financial Summary
• Funding Requirements

1. Business Plan Subtitle

Every great business plan starts with a captivating title and subtitle. You’ll want to make it clear that the document is, in fact, a business plan, but the subtitle can help tell the story of your business in just a short sentence.

2. Executive Summary

Although this is the last part of the business plan that you’ll write, it’s the first section (and maybe the only section) that stakeholders will read. The executive summary of a business plan sets the stage for the rest of the document. It includes your company’s mission or vision statement, value proposition, and long-term goals.

3. Company Description

This brief part of your business plan will detail your business name, years in operation, key offerings, and positioning statement. You might even add core values or a short history of the company. The company description’s role in a business plan is to introduce your business to the reader in a compelling and concise way.

4. The Business Opportunity

The business opportunity should convince investors that your organization meets the needs of the market in a way that no other company can. This section explains the specific problem your business solves within the marketplace and how it solves them. It will include your value proposition as well as some high-level information about your target market.

5. Competitive Analysis

Just about every industry has more than one player in the market. Even if your business owns the majority of the market share in your industry or your business concept is the first of its kind, you still have competition. In the competitive analysis section, you’ll take an objective look at the industry landscape to determine where your business fits. A SWOT analysis is an organized way to format this section.

6. Target Market

Who are the core customers of your business and why? The target market portion of your business plan outlines this in detail. The target market should explain the demographics, psychographics, behavioristics, and geographics of the ideal customer.

7. Marketing Plan

Marketing is expansive, and it’ll be tempting to cover every type of marketing possible, but a brief overview of how you’ll market your unique value proposition to your target audience, followed by a tactical plan will suffice.

Think broadly and narrow down from there: Will you focus on a slow-and-steady play where you make an upfront investment in organic customer acquisition? Or will you generate lots of quick customers using a pay-to-play advertising strategy? This kind of information should guide the marketing plan section of your business plan.

8. Financial Summary

Money doesn’t grow on trees and even the most digital, sustainable businesses have expenses. Outlining a financial summary of where your business is currently and where you’d like it to be in the future will substantiate this section. Consider including any monetary information that will give potential investors a glimpse into the financial health of your business. Assets, liabilities, expenses, debt, investments, revenue, and more are all useful adds here.

So, you’ve outlined some great goals, the business opportunity is valid, and the industry is ready for what you have to offer. Who’s responsible for turning all this high-level talk into results? The "team" section of your business plan answers that question by providing an overview of the roles responsible for each goal. Don’t worry if you don’t have every team member on board yet, knowing what roles to hire for is helpful as you seek funding from investors.

10. Funding Requirements

Remember that one of the goals of a business plan is to secure funding from investors, so you’ll need to include funding requirements you’d like them to fulfill. The amount your business needs, for what reasons, and for how long will meet the requirement for this section.

Types of Business Plans

• Startup Business Plan
• Feasibility Business Plan
• Internal Business Plan
• Strategic Business Plan
• Business Acquisition Plan
• Business Repositioning Plan
• Expansion or Growth Business Plan

There’s no one size fits all business plan as there are several types of businesses in the market today. From startups with just one founder to historic household names that need to stay competitive, every type of business needs a business plan that’s tailored to its needs. Below are a few of the most common types of business plans.

For even more examples, check out these sample business plans to help you write your own .

1. Startup Business Plan

As one of the most common types of business plans, a startup business plan is for new business ideas. This plan lays the foundation for the eventual success of a business.

The biggest challenge with the startup business plan is that it’s written completely from scratch. Startup business plans often reference existing industry data. They also explain unique business strategies and go-to-market plans.

Because startup business plans expand on an original idea, the contents will vary by the top priority goals.

For example, say a startup is looking for funding. If capital is a priority, this business plan might focus more on financial projections than marketing or company culture.

2. Feasibility Business Plan

This type of business plan focuses on a single essential aspect of the business — the product or service. It may be part of a startup business plan or a standalone plan for an existing organization. This comprehensive plan may include:

• A detailed product description
• Market analysis
• Technology needs
• Production needs
• Financial sources
• Production operations

According to CBInsights research, 35% of startups fail because of a lack of market need. Another 10% fail because of mistimed products.

Some businesses will complete a feasibility study to explore ideas and narrow product plans to the best choice. They conduct these studies before completing the feasibility business plan. Then the feasibility plan centers on that one product or service.

3. Internal Business Plan

Internal business plans help leaders communicate company goals, strategy, and performance. This helps the business align and work toward objectives more effectively.

Besides the typical elements in a startup business plan, an internal business plan may also include:

• Department-specific budgets
• Target demographic analysis
• Market size and share of voice analysis
• Action plans
• Sustainability plans

Most external-facing business plans focus on raising capital and support for a business. But an internal business plan helps keep the business mission consistent in the face of change.

4. Strategic Business Plan

Strategic business plans focus on long-term objectives for your business. They usually cover the first three to five years of operations. This is different from the typical startup business plan which focuses on the first one to three years. The audience for this plan is also primarily internal stakeholders.

These types of business plans may include:

• Relevant data and analysis
• Assessments of company resources
• Vision and mission statements

It's important to remember that, while many businesses create a strategic plan before launching, some business owners just jump in. So, this business plan can add value by outlining how your business plans to reach specific goals. This type of planning can also help a business anticipate future challenges.

5. Business Acquisition Plan

Investors use business plans to acquire existing businesses, too — not just new businesses.

A business acquisition plan may include costs, schedules, or management requirements. This data will come from an acquisition strategy.

A business plan for an existing company will explain:

• How an acquisition will change its operating model
• What will stay the same under new ownership
• Why things will change or stay the same
• Acquisition planning documentation
• Timelines for acquisition

Additionally, the business plan should speak to the current state of the business and why it's up for sale.

For example, if someone is purchasing a failing business, the business plan should explain why the business is being purchased. It should also include:

• What the new owner will do to turn the business around
• Historic business metrics
• Sales projections after the acquisition
• Justification for those projections

6. Business Repositioning Plan

When a business wants to avoid acquisition, reposition its brand, or try something new, CEOs or owners will develop a business repositioning plan.

This plan will:

• Acknowledge the current state of the company.
• State a vision for the future of the company.
• Explain why the business needs to reposition itself.
• Outline a process for how the company will adjust.

Companies planning for a business reposition often do so — proactively or retroactively — due to a shift in market trends and customer needs.

For example, shoe brand AllBirds plans to refocus its brand on core customers and shift its go-to-market strategy. These decisions are a reaction to lackluster sales following product changes and other missteps.

7. Expansion or Growth Business Plan

When your business is ready to expand, a growth business plan creates a useful structure for reaching specific targets.

For example, a successful business expanding into another location can use a growth business plan. This is because it may also mean the business needs to focus on a new target market or generate more capital.

This type of plan usually covers the next year or two of growth. It often references current sales, revenue, and successes. It may also include:

• SWOT analysis
• Growth opportunity studies
• Financial goals and plans
• Marketing plans
• Capability planning

These types of business plans will vary by business, but they can help businesses quickly rally around new priorities to drive growth.

Getting Started With Your Business Plan

At the end of the day, a business plan is simply an explanation of a business idea and why it will be successful. The more detail and thought you put into it, the more successful your plan — and the business it outlines — will be.

When writing your business plan, you’ll benefit from extensive research, feedback from your team or board of directors, and a solid template to organize your thoughts. If you need one of these, download HubSpot's Free Business Plan Template below to get started.

Editor's note: This post was originally published in August 2020 and has been updated for comprehensiveness.

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Plan Your Business Plan Before you put pen to paper, find out how to assess your business's goals and objectives.

You've decided to write a business plan, and you're ready to get started. Congratulations. You've just greatly increased the chances that your business venture will succeed. But before you start drafting your plan, you need to--you guessed it--plan your draft.

One of the most important reasons to plan your plan is that you may be held accountable for the projections and proposals it contains. That's especially true if you use your plan to raise money to finance your company. Let's say you forecast opening four new locations in the second year of your retail operation. An investor may have a beef if, due to circumstances you could have foreseen, you only open two. A business plan can take on a life of its own, so thinking a little about what you want to include in your plan is no more than common prudence.

Second, as you'll soon learn if you haven't already, business plans can be complicated documents. As you draft your plan, you'll be making lots of decisions on serious matters, such as what strategy you'll pursue, as well as less important ones, like what color paper to print it on. Thinking about these decisions in advance is an important way to minimize the time you spend planning your business and maximize the time you spend generating income.

To sum up, planning your plan will help control your degree of accountability and reduce time-wasting indecision. To plan your plan, you'll first need to decide what your goals and objectives in business are. As part of that, you'll assess the business you've chosen to start, or are already running, to see what the chances are that it will actually achieve those ends. Finally, you'll take a look at common elements of most plans to get an idea of which ones you want to include and how each will be treated.

Determine Your Objectives Close your eyes. Imagine that the date is five years from now. Where do you want to be? Will you be running a business that hasn't increased significantly in size? Will you command a rapidly growing empire? Will you have already cashed out and be relaxing on a beach somewhere, enjoying your hard-won gains?

Answering these questions is an important part of building a successful business plan. In fact, without knowing where you're going, it's not really possible to plan at all.

Now is a good time to free-associate a little bit--to let your mind roam, exploring every avenue that you'd like your business to go down. Try writing a personal essay on your business goals. It could take the form of a letter to yourself, written from five years in the future, describing all you have accomplished and how it came about.

As you read such a document, you may make a surprising discovery, such as that you don't really want to own a large, fast-growing enterprise but would be content with a stable small business. Even if you don't learn anything new, though, getting a firm handle on your goals and objectives is a big help in deciding how you'll plan your business.

Goals and Objectives Checklist If you're having trouble deciding what your goals and objectives are, here are some questions to ask yourself:

• How determined am I to see this succeed?
• Am I willing to invest my own money and work long hours for no pay, sacrificing personal time and lifestyle, maybe for years?
• What's going to happen to me if this venture doesn't work out?
• If it does succeed, how many employees will this company eventually have?
• What will be its annual revenues in a year? Five years?
• What will be its market share in that time frame?
• Will it be a niche marketer, or will it sell a broad spectrum of good and services?
• What are my plans for geographic expansion? Local? National? Global?
• Am I going to be a hands-on manager, or will I delegate a large proportion of tasks to others?
• If I delegate, what sorts of tasks will I share? Sales? Technical? Others?
• How comfortable am I taking direction from others? Could I work with partners or investors who demand input into the company's management?
• Is it going to remain independent and privately owned, or will it eventually be acquired or go public?

Your Financing Goals

It doesn't necessarily take a lot of money to make a lot of money, but it does take some. That's especially true if, as part of examining your goals and objectives, you envision very rapid growth.

Energetic, optimistic entrepreneurs often tend to believe that sales growth will take care of everything, that they'll be able to fund their own growth by generating profits. However, this is rarely the case, for one simple reason: You usually have to pay your own suppliers before your customers pay you. This cash flow conundrum is the reason so many fast-growing companies have to seek bank financing or equity sales to finance their growth. They are literally growing faster than they can afford.

Start by asking yourself what kinds of financing you're likely to need--and what you'd be willing to accept. It's easy when you're short of cash, or expect to be short of cash, to take the attitude that almost any source of funding is just fine. But each kind of financing has different characteristics that you should take into consideration when planning your plan. These characteristics take three primary forms:

• First, there's the amount of control you'll have to surrender. An equal partner may, quite naturally, demand approximately equal control. Venture capitalists often demand significant input into management decisions by, for instance, placing one or more people on your board of directors. Angel investors may be very involved or not involved at all, depending on their personal style. Bankers, at the other end of the scale, are likely to offer no advice whatsoever as long as you make payments of principal and interest on time and are not in violation of any other terms of your loan.
• You should also consider the amount of money you're likely to need. Any amount less than several million dollars is too small to be considered for a standard initial public offering of stock, for example. Venture capital investors are most likely to invest amounts of $250,000 to $3 million. On the other hand, only the richest angel investor will be able to provide more than a few hundred thousand dollars, if that.

Almost any source of funds, from a bank to a factor, has some guidelines about the size of financing it prefers. Anticipating the size of your needs now will guide you in preparing your plan.

• The third consideration is cost. This can be measured in terms of interest rates and shares of ownership as well as in time, paperwork and plain old hassle.

How Will You Use Your Plan

Believe it or not, part of planning your plan is planning what you'll do with it. No, we haven't gone crazy--at least not yet. A business plan can be used for several things, from monitoring your company's progress toward goals to enticing key employees to join your firm. Deciding how you intend to use yours is an important part of preparing to write it.

Do you intend to use your plan to help you raise money? In that case, you'll have to focus very carefully on the executive summary, the management, and marketing and financial aspects. You'll need to have a clearly focused vision of how your company is going to make money. If you're looking for a bank loan, you'll need to stress your ability to generate sufficient cash flow to service loans. Equity investors, especially venture capitalists, must be shown how they can cash out of your company and generate a rate of return they'll find acceptable.

Do you intend to use your plan to attract talented employees? Then you'll want to emphasize such things as stock options and other aspects of compensation as well as location, work environment, corporate culture and opportunities for growth and advancement.

Do you anticipate showing your plan to suppliers to demonstrate that you're a worthy customer? A solid business plan may convince a supplier of some precious commodity to favor you over your rivals. It may also help you arrange supplier credit. You may want to stress your blue-ribbon customer list and spotless record of repaying trade debts in this plan.

Assessing Your Company's Potential

For most of us, unfortunately, our desires about where we would like to go aren't as important as our businesses' ability to take us there. Put another way, if you choose the wrong business, you're going nowhere.

Luckily, one of the most valuable uses of a business plan is to help you decide whether the venture you have your heart set on is really likely to fulfill your dreams. Many, many business ideas never make it past the planning stage because their would-be founders, as part of a logical and coherent planning process, test their assumptions and find them wanting.

Test your idea against at least two variables. First, financial, to make sure this business makes economic sense. Second, lifestyle, because who wants a successful business that they hate?

Answer the following questions to help you outline your company's potential. There are no wrong answers. The objective is simply to help you decide how well your proposed venture is likely to match up with your goals and objectives.

• What initial investment will the business require?
• How much control are you willing to relinquish to investors?
• When will the business turn a profit?
• When can investors, including you, expect a return on their money?
• What are the projected profits of the business over time?
• Will you be able to devote yourself full time to the business, financially?
• What kind of salary or profit distribution can you expect to take home?
• What are the chances the business will fail?
• What will happen if it does?
• Where are you going to live?
• What kind of work are you going to be doing?
• How many hours will you be working?
• Will you be able to take vacations?
• What happens if you get sick?
• Will you earn enough to maintain your lifestyle?
• Does your family understand and agree with the sacrifices you envision?

Sources: The Small Business Encyclopedia , Business Plans Made Easy, Start Your Own Business and Entrepreneur magazine.

Continue on to the next section of our Business Plan How-To >> Elements of a Business Plan

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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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Examples of Effective Short-Term, Mid-Term, and Long-Term Business Goals

By Kate Eby | September 7, 2023

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Setting effective goals is vital to your business’s success. Good goals help organizations move forward and keep employees on track. We’ve talked with experts and gathered examples of solid short-term, mid-term, and long-term business goals.

Included on this page, you’ll find examples of long-term , mid-term , and short-term business goals and how they work together. Plus, check out an easy-to-read chart on which framework is best for setting time-based goals and a free, downloadable goal-setting worksheet that can help your team create your goals.

Common Time Ranges for Different Business Goals

Companies set large overarching goals to achieve in two to five years. To attain long-term goals, set goals with shorter time frames that work toward the long-term objective. Depending on the type of goal, some experts might refer to it as a strategy or an objective . However, there is a difference between a goal, an objective , and a strategy. 

Examples of Long-Term Business Goals

Long-term goals focus on the big-picture vision for the future of the organization, generally covering two years or longer. They typically don’t cover more than five years, since the business and technology environment can change drastically after that time frame.

Long-term goals are more aspirational and might not have the specificity of short-term and mid-term goals. “These goals ought to be aligned with the overall vision of the company,” says Izzy Galicia, President and CEO of global professional services firm the Incito Consulting Group and an expert in Lean enterprise transformation.

The long-term goals also must be realistic. “We know from the literature and practical experience that you want goals that are challenging, but they're also achievable. You don't want to have a goal that people don't buy into at all, or it's just so outrageous that you can't possibly achieve it,” explains Lee Frederiksen, managing partner of Virginia-based Hinge Marketing and former Director for Strategy and Organizational Development at Ernst & Young.

Here are four examples of long-term business goals:

• Increase Sales: A common long-term goal is to increase sales significantly. A company might establish a long-term goal of increasing total sales by 40 percent in three years.
• Become Niche Leader: Another company might have its sights on becoming dominant in its industry. It would set a long-term goal of becoming the leader in its market niche in four years.
• Expand Company Locations: Adding storefronts over the next few years is also a common long-term goal. A company with that aim would set a long-term goal of expanding its one restaurant location to four locations in four years.
• Create and Develop a Non-Profit Entity: An organization or group of people can also establish a long-term goal of establishing a successful nonprofit organization focused on environmental conservation.

Examples of Mid-Term Business Goals

Mid-term goals help an organization meet a long-term goal. They can take an organization six months to two years or so to reach. 

Here are examples of mid-term goals that will help a company reach a specific long-term goal: 

A company’s long-term goal is to open three more restaurants in the next four years. These examples are some of the mid-term goals they would need to achieve first:

• Systematize Standard Operating Procedures for Running the Restaurant: The mid-term goal would be to document and systematize its standard operating procedures to efficiently operate its original restaurant within a year.
• Develop a Hiring Process That Attracts Talented Employees: The company sets a goal of developing and implementing a hiring process to attract committed employees in the next 14 months. 
• Research and Evaluate the Best Locations to Open the New Restaurants: The company would set a goal of continually scouting and evaluating possible locations for new restaurants over the next two years.

A group of people have the goal of creating a successful nonprofit organization in five years. Here are some examples of mid-term goals they would set and meet first:

• Establish Partnerships with Local Environmental Organizations: The group of people would like to start a nonprofit focused on environmental conservation. A mid-term goal would be to develop and establish partnerships with key local environmental organizations within the next two years.
• Develop and Implement a Solid Fundraising Strategy: The nonprofit needs funding to be successful. The organization would set a mid-term goal of developing an effective fundraising strategy within the next 18 months.
• Build a Dedicated Team of Volunteers: To help it reach its long-term goal of establishing a successful nonprofit focused on environmental conservation, the organization would set a goal of building a system to attract and retain volunteers for the organization within the next year.

Examples of Short-Term Business Goals

Short-term business goals encompass work that helps an organization reach its mid-term goals. These goals are often meant to be reached in a month or a quarter. Some might take six months or so to accomplish. Only one department — or even only one worker — might work on some short-term goals.

Some experts call short-term goals objectives. They might call the shortest short-term goals tactics . (Learn more about the differences between business goals vs. business objectives and strategies vs. tactics .)

“If one of my goals is to develop a content strategy — so that more people are aware of my company — I can't jump into Year Three and say, ‘I have a content strategy,’” shares Keith Speers, CEO of Consulting Without Limits , which provides business consulting, leadership coaching, fractional leadership, and other consulting services. “Part of that one- to three-year plan is developing my audience, curating them, creating content, and establishing myself as someone who's a thought leader in a specific field. All of that requires establishing short-term goals or objectives.”

The short-term goals or objectives are “more about the measurable steps or actions to take in order to reach that (mid- or long-term) goal,” states Marco Scanu, a business coach and CEO of Miami-based Visa Business Plans , a consulting firm providing attorneys and investors with business planning services.

Here are examples of short-term goals to build toward achieving the mid-term goals associated with expanding a company’s restaurant count from one to four: 

• Assemble a Team to Develop a Standard Operating Procedures (SOP) Document for Current and Future Locations: To help reach the goal of systematizing its SOP for running its original restaurant, the company would set a short-term goal of developing a SOP document for the company’s original and future locations by the end of the next quarter.
• Work With an HR Consultant to Attract and Retain Qualified Staff: To reach the mid-term goal of developing a hiring process that attracts talented workers who will stay with the company, the business would set a goal of hiring and working with a human resources consultant to find ways to attract and retain employees within the next month.
• Create an Internal Team to Improve Compensation and Increase Retention: To reach the goal of developing a prosperous hiring process, the company would set a short-term goal of forming an internal team to assess ways to improve employee compensation and retention within the next two months.
• Research Demographic/Economic Trends in the Metro Area: To achieve the goal of researching and evaluating the best locations for new restaurants, the company would set a short-term goal of researching demographic and economic trends within neighborhoods where they want to add new restaurants.
• Work With a Real Estate Agency to Find Potential Buildings: To complete the mid-term goal of researching and evaluating the best locations for new restaurants, the company would set a goal of hiring and working with a real estate agency within the next two weeks. The real estate agent would continually search for good locations for possible new restaurants.

Here are examples of short-term goals necessary for a group of people to create a successful environmental conservation nonprofit:

• Research and Identify Potential Partner Organizations and Establish Connections: To reach the mid-term goal of establishing partnerships with local environmental organizations, the founding group would set a goal of identifying specific organizations that might be good partners and connecting with their representatives in the next six weeks.
• Research Grant Applications, Methods for Individual Donations, and Fundraising Events: To reach the goal of developing a solid fundraising strategy, the organization would set a short-term goal of researching the elements of  a fundraising plan that includes grant applications, individual donations, and fundraising events.
• Identify and Collect Contact Details of Potential Volunteers: To build a dedicated team of volunteers, the organization would set a goal of meeting and collecting contact details of potential volunteers over the next four months.

Examples of Short- and Mid-Term Business Goals Contributing to Long-Term Goals

These examples break down how to strategically set short- and mid-term goals to achieve a company’s long-term more visionary goals. “I think of short-term and mid-term goals as stepping stones to your long-term goals, things you have to accomplish to be able to get to the next goal,” Frederiksen explains.

• Short-Term Goal: Use customer relationship management (CRM) software to gather better information about potential and existing customers.
• Short-Term Goal: Increase production of website content.
• Short-Term Goal: Create and implement a new Google ad strategy.
• Short-Term Goal: Establish an engineering and product team to tweak product features.
• Short-Term Goal: Hire a new vice president of sales. 
• Short-Term Goal: Add three new members to the overseas sales team.
• Short-Term Goal: Hire a rebranding consultant.
• Short-Term Goal: Hire a contractor to lead the website redesign.
• Short-Term Goal: Find more opportunities for the new CEO to speak at industry events.
• Short-Term Goal: Become a key sponsor of an annual industry conference.
• Short-Term Goal: Empower the marketing vice president to pursue other sponsorship opportunities.

Business Goal-Setting Frameworks

When setting goals, it helps to use an established framework. Experts point out that, in setting business goals, people most often use one of five goal frameworks . Those frameworks are SMART, management by objectives (MBO), objectives and key results (OKR), key results areas (KRA) , or big hairy audacious goals (BHAG). Here are details on each of these business goal-setting frameworks and which goal length they work best for:

Which Business Goal-Setting Framework to Use

Learn more about goal-setting frameworks and use goal-setting and goal-tracking templates to get started working on your goals.

Business Goals Worksheet Template for Excel

Download the Business Goals Worksheet Template for Excel

Use this free template to guide your team in setting long-, mid-, and short-term business goals. Identify long-term goals, and then the mid-term and short-term goals that serve them. You have room to add any tasks and actions that must be completed to reach those goals. The downloadable worksheet is fully customizable.

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

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

Discover why over 90% of Fortune 100 companies trust Smartsheet to get work done.

Business Plan Goals and Examples for Success

Written by Dave Lavinsky

A well-crafted business plan serves as a roadmap for entrepreneurs and businesses to achieve their objectives. One crucial aspect of a business plan is outlining clear and measurable goals. Business plan goals are the specific targets and milestones that a company aims to achieve within a defined timeframe. They provide a direction and purpose for the business, guiding decision-making, resource allocation, and strategic planning. In this article, we will explore the importance of setting business plan goals and provide examples of common goals.

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Why are Business Plan Goals Important?

Business plan goals are essential for several reasons:

• Strategic Focus : Goals help businesses define their strategic direction and focus their efforts on what matters most. They align the company’s efforts and resources towards achieving specific objectives, ensuring that everyone is working towards a common purpose.
• Measurable Outcomes : Goals should be specific, measurable, achievable, relevant, and time-bound (SMART). By setting SMART goals, businesses can track progress, measure success, and identify areas for improvement.
• Motivation and Accountability : Goals provide motivation and drive for entrepreneurs and employees. They create a sense of purpose and urgency, encouraging individuals to work towards achieving the desired outcomes. Goals also establish accountability, as progress is monitored and reviewed regularly.
• Decision-Making : Goals serve as a reference point for decision-making. They help businesses prioritize initiatives, allocate resources, and evaluate opportunities based on their alignment with the established goals.

Examples of Business Plan Goals

Business plan goals can vary depending on the nature, size, and stage of the business. Here are some common examples of business plan goals:

Financial Goals:

• Achieve a specific revenue target within a defined timeframe.
• Increase profitability by a certain percentage or dollar amount.
• Reduce costs or increase efficiency in a particular area of the business.
• Secure funding or investment to support business growth.

Market Penetration Goals:

• Expand market share in a specific geographic region or target market.
• Increase brand awareness and recognition among the target audience.
• Launch new products or services in the market.
• Increase customer retention or loyalty.

Operational Goals:

• Improve production or service delivery processes to enhance quality or reduce lead times.
• Enhance supply chain management to optimize inventory levels or reduce costs.
• Implement new technologies or systems to streamline operations or improve customer experience.
• Achieve certifications or industry standards to improve credibility and competitiveness.

Human Resources Goals:

• Hire and retain top talent to support business growth.
• Provide training and development opportunities for employees to enhance their skills and performance.
• Improve employee engagement and satisfaction levels.
• Establish a diverse and inclusive workforce.

Social Responsibility Goals:

• Implement environmentally sustainable practices in the business operations.
• Contribute to the local community through philanthropic initiatives or social impact programs.
• Promote diversity, equity, and inclusion within the organization.
• Establish ethical and responsible business practices.

Business Plan Goals Conclusion

Business plan goals are critical for defining the direction and purpose of a business. They provide measurable outcomes, motivation, and accountability, guiding decision-making and resource allocation. Examples of business plan goals can include financial, market penetration, operational, human resources, and social responsibility objectives. When setting business plan goals, it’s essential to make them SMART – specific, measurable, achievable, relevant, and time-bound – to increase their effectiveness in driving business success. Regular monitoring and review of progress towards these goals can help businesses stay on track and adapt their strategies as needed to achieve their desired outcomes.

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How to Write a Business Plan

Five examples of business goals and how to set them

What are five examples of business goals

Financial goals, growth goals, customer goals, employee development goals, social goals.

Moving forward in business is like planning a great trip: You know where you want to end up, but the road there isn’t always straightforward.

Smart business goals help you navigate the twists and turns along the way. While a business plan and vision statement offer a “big picture” perspective about your company and what you want to accomplish, short-term and long-term goals define the specific strategies you’ll use to get there.

However, not all business goals are created equal. In order to be effective, goals must involve specific, actionable items with a clear time frame and responsible parties.

Build business forms for free with Jotform .

Here are five examples of smart goals for small business owners and how you can set them.

Financial goals help you focus on driving more revenue, cutting costs to raise profitability and sustain cash flow, and setting new financial targets for future growth.

To create and accomplish financial goals, you have to collaborate with different departments. Each department can help to identify strategies that trim costs, such as supplies or facility expenses. Your team’s expertise may also extend to implementing ideas that accomplish revenue and profitability goals.

When developing financial goals, project the total increase in profits over a long period like a year. Then break that amount down into quarterly financial targets. Make financial goals as specific as possible — for example, “increase production by x percent over three months.”

To develop growth goals, you need a clear vision statement that you can segment into achievable steps. Whether it’s reaching new markets, launching new products, increasing your customer base, or raising brand recognition, it’s important to establish a realistic number of goals, actionable tasks, and a team to complete those growth goals.

Start with a market analysis to ensure the approach makes sense. As you implement growth goals, you may need to change their priority or adapt them so you aren’t counteracting other business goals.

For example, growing a customer base may involve promotions that don’t necessarily improve your bottom line at the start. So you’ll need to make assessments along the way to gauge if and when you’ll achieve the financial goal connected to this growth goal.

Improving relationships with your target audience doesn’t just solve problems for individual customers. Enhanced customer service also helps your company develop respect among all stakeholders, which promotes additional business growth.

To set goals for customers, identify roadblocks that inhibit exceptional customer experiences. Roadblocks might include a complicated phone menu, significant response lag, or slow checkout time.

With these roadblocks in mind, develop customer goals to solve them, such as

• Simplify call-in customer support options
• Add other customer support channels like an online help desk or a chat option
• Streamline the online/in-store checkout process with new technology

Motivated, engaged employees offer many benefits for a company, such as increased productivity, deeper loyalty, and more creativity. This talent is an essential ingredient in a company’s recipe for success. That’s why it’s critical to design and execute goals that help employees develop skills and knowledge as well as challenge them enough to stay interested in their work.

To set employee development goals, collect regular feedback from team members about the types of incentives they want. Include these goals in performance reviews by aligning development actions like training and ongoing learning opportunities with business objectives like increasing engagement or converting new customers.

As your business grows, you’ll establish a place in the community you serve. To nurture this position, develop philanthropy and social programs that benefit local and global communities.

Not only does this feel good, but it also boosts your reputation as a socially conscious company. In addition, these social goals prove to the team that the company isn’t just about making money. Instead, it seeks to do good for everyone.

Your social goals don’t have to be financial. In-kind donations of products, services, or your thought leadership often make more of a positive impression than charitable donations. For example, if your small business isn’t yet in the position to donate a certain percentage of the profits from each sale, you can focus on having the team volunteer for a community project or donate products to those in need.

Specific and visible business goals

Studies show people are more likely to accomplish goals that are specific, challenging, and written down.

When creating the types of business goals detailed above, focus on adding a quantitative measure, where relevant, in terms of percentage of improvement or resource savings, growth or productivity improvements, or a deadline to achieve the goal. Also, keeping goals visible helps employees stay focused on business success. They have a way to benchmark their progress. And seeing what’s been achieved can be a prime motivator to continue working toward achieving your goals and tackling new ones in the future.

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I should have googled this page long ago but now know where and how to navigate. Thanks for being around for small emerging starters like myself in this highly regulated insurance industry

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Your Company's Legacy is at Stake Without Succession Planning — Do These 8 Things to Secure Your Future.

S o much entrepreneurial effort goes into starting and growing a business, yet one of the most overlooked issues is keeping it going beyond the founder . There are so many reasons it's not the top thing on a founder's priority list, and yet the saddest thing they'd never want to see is for all their years and decades of work to one day go down the drain.

Business succession planning is a process that ensures continuity beyond the founder's work life. This is part of a strategic plan for any forward-thinking leader who wants their clients, customers and team members to continue to thrive beyond their working life.

Business succession planning (BSP) differs from business to business depending on their size and their goals. Small businesses often have limited resources and are family-owned, which often entails changing the ownership and not just the leadership. With family-owned businesses, you face more than simple financial and business decisions because of the close relationships at home. For larger organizations with more complex structures and diversified workforces , the approach is usually very formal, involving a board of directors to identify the right fit for future leadership teams.

BSP may be a complex topic and endeavor, with a long list of considerations to ensure the vision and long-term goals of the business remain forward-driven. Regardless, here are eight tips you should consider.

Related: How Successful Entrepreneurs Use Doubt to Drive Growth

1. Align your succession plan with your goals

Knowing where you want to be 10 or 20 years from now is just as crucial as planning how to achieve it now. This is to ensure your business is headed in the right direction, with or without you in the picture. Think about whether you want to retire easily, knowing you've passed on the responsibilities to a trusted family member or a long-term executive. Or maybe you want to look into a merger with someone already succeeding in your industry. These decisions don't develop overnight, more so that they don't ripen in the next couple of years. Hence, gradual planning and assessments along the way are essential. Your goals may change, and so will your succession plan.

2. Define clear ownership roles

A common hurdle in succession planning is answering the question, "Who gets the keys?" Only this time, it's your business that's at stake. You have to identify key people who have the potential to take over or be a part of the leadership once you decide to exit or, worse, pass away. Create a clear roadmap of how you want to develop the skills of these people to hit the ground running and how decisions could be made in your absence. However, ensure that you keep everyone on the same page about ownership roles to avoid internal conflicts so the transition — before and after — is smooth. This is especially critical in a family-owned business; the clearer your ownership plan, the more likely there will be peace in your family once the transition begins.

Related: The 4 Roles of Accountability Within Your Company

3. Value your business, protect your assets

One of the most crucial aspects of BSP is getting a crystal clear picture of your business's value. This will guide you in strategizing the areas of estate planning or tax implications, as well as setting up potential buy-sell agreements. However, valuation is just the tip of the iceberg. You have to protect your assets and safeguard your intellectual property, which is the lifeblood of your business.

Additionally, make sure there's enough financial backing during the transition to support you and your successor. Your successor likely doesn't have the same level of financial resources as you do, and this is an issue to consider. Lastly, protecting your business relationships can greatly contribute to your success when future leaders take responsibility.

Related: 1 in 10 Leaders Say Succession Planning Is Not Worth the Time and Money It Costs — Here's Why They're Wrong.

4. Develop a comprehensive transition plan

Your company's game plan for a successful leadership transition lies in a detailed ownership and management handover. This should cover operational, legal, and financial changes and should have much of the plan in writing. This documentation should also include a comprehensive guide on how to overcome potential roadblocks, how to make decisions, who has votes, and what the transition process looks like. This will ensure that your business remains stable and your legacy intact.

5. Encourage open communication

Everyone involved should be in the loop. Create a space for open dialogue talking about their aspirations, concerns, and reservations. Share your vision and your goals for the future of your company. This initiative should establish a sense of ownership and buy-in for the plan.

This way, you can reduce resistance and cultivate a more collaborative environment that will make the transition easier and smoother. This strategy doesn't simply pass on information, but it helps create some engagement and helps them remain invested in your company's future.

Related: How to Communicate More Authentically and Effectively

6. Seek expert advice

Naturally, you may want to do everything alone in this succession planning journey. After all, you started the company, and nobody knows it better than you. But remember that you can only do so much on your own. It's tempting to do it all by yourself because you are more comfortable navigating and sharing confidential information. Still, you don't want to go rogue dangling on monkey bars without safety nets. Consult BSP pros or build your A-team experts. These advisors can help you navigate financial intricacies and legal frameworks more efficiently, with greater attention to identifying relevant regulations and potential hurdles.

7. Execute with a clear plan

A blueprint — your comprehensive transition plan — is not yet everything. Think of a "launch countdown" where milestones are clearly articulated within a specific timeline. Having a clear plan with timelines encourages accountability and progress toward your end goal. Assign ownership of specific steps and ensure you thoroughly review them regularly as a leadership team until you're confident that the transition will go smoothly.

8. Learn from successful examples

Many transitions and successions have succeeded in both small and large companies. Strive to learn by benchmarking your BSP with companies that have successfully executed theirs. For example, Microsoft transitioned from Gates to Ballmer . Ballmer has been with Microsoft for over two 20 years, which gives him an upper hand on the intricacies of the company's processes and day-to-day operations. He was an internal talent who the company supported and helped grow, which made the transition less risky and successful. Talk with other entrepreneurial peers and discuss what they're planning for their succession.

Effective business succession planning is not like writing your final chapter in the business book and closing the book, but more like preparing it for a sequel. While your approach will depend on the size and complexity of your business, proactive planning remains the core principle to ensure your vision doesn't fade with your exit. This may be 20 years away for you or only a couple of years in the future. Either way, keep your approach light and flexible while taking the process seriously, and don't hesitate to reach out to experts for additional guidance to ensure that your transition is smooth. By planning your exit as strategically as you led your entrance, you solidify your legacy and your business's future.

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CA needs Sh107bn for digital superhighway goals

During the period, the authority intends to increase mobile broadband penetration to 99% from the current 97%.

• The average level of implementation of the last Strategic Plan was recorded at 72.6%.
• The Authority is targeting 95% achievement in 2023-27

The Communications Authority (CA) will need at least Sh107 billion to protect consumers and foster competitive ICT markets in a bid to establish Kenya as a digital superhighway.

While unveiling its five-year strategic for 2023-27, CA boss David Mugonyi said the authority would prioritise increased broadband penetration, adoption of emerging technologies and improvement of cyber security as a way of powering the government's Bottom-Up Economic policies. 

The authority also targets the expansion of the postal services and digitally empowering the youth, women and people living with disabilities.  

"The goals are backed by a robust implementation plan and regulated by stringent monitoring and evaluation programme,'' CA director general David Mugonyi said. 

"To successfully implement this Strategic Plan, a total budget of Sh106.98 billion is required over the five years.”

During the period, the authority intends to increase mobile broadband penetration to 99 per cent from the current 97 per cent, and increase the number of public postal offices supported from 50 to 100 among others. 

He outlined major goals achieved in the Authority’s 4th Strategic Plan which was anchored on three key result areas: access and market development, enabling environment and capacity development.

"The average level of implementation of the Strategic Plan was recorded at 72.6 per cent,'' Mugonyi said. 

For instance, in a bid to close the digital access gap, the Authority finalised the rollout of Internet connectivity in 886 public secondary schools spread across 47 counties.

It also finalised Phase I of the cellular mobile infrastructure project which connected 76 sub-locations in unserved and underserved parts of the country with mobile connectivity.

The authority further commenced the implementation of Phase II of the project which aims to roll out mobile network infrastructure and services in 101 sub-locations where a total of 51 sub-locations have been covered. 

In the broadcasting services sector, digital television subscriptions experienced a 25.4 per cent increase, rising from 4.96 million in June 2018 to 6.22 million by June 2023.

The number of licensed Free-to-Air TV stations also saw substantial growth, increasing from 67 in June 2018 to 343 (334 Commercial and 9 Community) television stations by June 2023, representing a 411.94 per cent increase.

Additionally, the number of licensed FM radio stations increased from 169 to 275 (201 Commercial and 74 Community FM radio stations), indicating a growth rate of 62.72 per cent.

"These developments signify expanded access to information and increased opportunities for local content development in Kenya,'' Mugonyi said.

In the electronic transactions sector, there was an increase in dot.ke domain users, rising from 75,096 to 103,298 users by June 2023, indicating a growth rate of 37.6 per cent. 

The mobile money subscriptions sub-sector also exhibited steady growth, with a 28 per cent increase from 29.68 million to 37.99 million by June 2023.

Furthermore, the number of registered mobile money agents increased by 61.3 per cent, reaching 333,753 in June 2023 from 206,940 in June 2018.

"These trends highlight improved access to mobile money transactions and increased opportunities for users."

The available international bandwidth experienced a significant growth of 404.11 per cent, rising from 3,277.72 Gbps in June 2018 to 16,523.30 Gbps by June 2023.

The country’s utilisation of this bandwidth also increased to 6,722.21 Gbps by June 2023, compared to 931.37 Gbps in June 2018.

The Authority facilitated mobile network operators to broaden their networks through the deployment of additional 2G, 3G and 4G transceivers which stood at 137,316 (2G), 112,584 (3G) and 93,928 (4G).

The highest growth was recorded in the 4G category, which rose from 7,469 in June 2018 to 93,92, signalling a growth towards the embracement of high-speed Internet services.

The Fifth Generation (5G) broadband cellular network technology was rolled out and registered 449,794 subscribers as of June 2023.

Furthermore, mobile phone subscriptions increased from 45.5 million (97.8 per cent penetration) in June 2018 to 66.4 million (131.3 per cent penetration) in June 2023.

Internet subscriptions on the other hand grew from 41.1 million to 49.36 million in the five years.

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Ten federal agencies receive 'A+' in annual scorecard measuring small business contracting goals

Mae Anderson

Associated Press

NEW YORK – Federal grants can be a huge boost for small businesses. And some federal agencies do better at giving grants to small businesses than others.

The Small Business Administration released its annual scorecard measuring how well federal agencies meet their small business contracting goals each year.

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Overall, the federal government has a goal to award 23% of contracts to small businesses. In fiscal 2023, 28.4% of contracts were awarded to small businesses, amounting to $178.6 billion. It's the third year of exceeding the goal, according to the SBA.

The SBA said the contracts support over a million jobs in industries like manufacturing, construction, and technology.

“Through President Biden’s Investing in America agenda, we have championed initiatives to fuel the nation’s economy – ensuring competition and a level playing field so that small businesses can access the historic level of investments through federal contracting,” said SBA Administrator Isabel Casillas Guzman.

Ten federal agencies received ‘A+’ grades on the annual scorecard. Those included: the SBA, Department of Agriculture, Department of Housing and Urban Development, Department of the Interior, Department of Homeland Security, National Science Foundation, General Services Administration, Department of Commerce, Nuclear Regulatory Commission, and Office of Personnel Management.

Two agencies that received a ‘B,’ the lowest grade awarded: the Environmental Protection Agency and the Department of Health and Human Services.

More information can be found at www.sba.gov/agency-scorecards.

Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

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