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Step 2: Choosing Composable vs Non-Composable Technologies
What type of technology do you need?
As part of our digital technology consultancy, we make sure that our clients understand the importance of choosing between composable and non-composable technologies based on their enterprise's unique needs.
Spoiler alert:
It’s not just about making the choice between either composable or non-composable.
If you’re building a system from scratch, that may be the exception. But who is actually doing that these days?
Make the components of your system composable where it has value in these two areas-
It solves issues you have
It gives you a competitive advantage
This is the core of composable technology; it’s faster, less risky, and adds value quickly.
In essence, here’s the differences between the two:
Composable Technology
Composable technologies are modular and flexible. They can be easily integrated or replaced without affecting the entire system, making them ideal for businesses looking for agility and scalability in a fast-paced market.
➡️ Composable technology is ideal for businesses undergoing rapid transformation or those that need to quickly adjust to market changes.
Non-Composable Technology
Non-composable technologies are often more stable and rigid (monolithic) than composable technologies.
➡️ Non-composable technology is generally preferred for enterprises with unchanging processes where consistency is the key priority.
Your implementation partner may…
Evaluate your business's adaptability and future growth plans.
Recommend composable technologies for dynamic, fast-evolving enterprises.
Suggest non-composable solutions for businesses with fixed, well-established processes.
Choosing between composable and monolithic technology is an important piece of your technology implementation plan, and there are many factors that should play into the decision.
Remember though - it’s not either/or. Your solution does not have to be 100% composable vs non-composable.
READ MORE: A 5-Step Process for Shifting to a Composable Commerce Platform
Step 3: Crafting a Customized Technology Implementation Plan (aka Digital Transformation Roadmap)
What do you want to achieve?
Developing a new technology implementation plan (or digital transformation roadmap ) means considering every facet of your business to ensure that your final plan is comprehensive, achievable, and aligned with the strategic goals of your enterprise.
Let’s look at an implementation plan example:
The following areas are key pieces to a well-organized plan that can be implemented cost-effectively.
Scope Definition : Clearly outline the project's scope, including the technologies to be implemented and the business areas they will impact.
Timeline and Milestones : Develop a realistic timeline with key milestones, ensuring timely progress and accountability.
Budgeting : Set a budget that reflects the project's scope and your enterprise's financial capacity.
Resource Allocation : Identify and allocate internal and external resources necessary for the project.
Risk Management Plan : Anticipate potential challenges and devise strategies to mitigate them.
Step 4: Employee Training and Change Management
What do you need for the transition?
One critical and often overlooked aspect of the software implementation process and integration is managing the human element.
Our consultancy provides comprehensive training and change management support to ensure our clients’ teams are well-equipped to adapt to the new technologies being integrated into the enterprise. Your implementation partner should offer the same service.
The following are some of the key activities for employee training and change management:
Develop customized training programs for different user groups.
Establish a change management team to guide employees through the transition.
Create communication plans to keep all stakeholders informed and engaged throughout the digital transformation process.
Step 5: Implementation and Continuous Monitoring
How will you stay on track?
With a solid plan in place, you’re ready to move towards the implementation phase.
Your implementation partner should be willing to become an extension of your enterprise to ensure the integration is smooth and disruption-free.
There are steps to be taken during and following implementation:
During Implementation
Monitor progress.
Make adjustments as necessary to stay on track.
Provide ongoing support to resolve any technical or operational issues.
Post-Implementation
Conduct regular reviews to ensure the technology aligns with your business goals.
Offer continuous monitoring and support services.
Step 6: Evaluation and Iterative Improvement
What will you need to measure?
Post-implementation, the focus should move to evaluating the impact of your new technologies.
Our goal is always to ensure that the new technology integration not only meets, but exceeds our clients’ expectations, driving growth and efficiency.
The steps we take for our evaluation include:
Measuring performance against pre-defined KPIs.
Gathering feedback from users and stakeholders.
Identifying areas for improvement and planning iterative enhancements.
How will you stay ahead?
The final step in your technology implementation plan is to prepare your enterprise for future technological advancements.
As your implementation partner, we would help you to establish a framework for scaling your new technologies and integrating future innovations seamlessly.
On an ongoing basis, as your digital consultancy partner, we would:
Conduct regular technology trend analyses.
Develop a scalable and adaptable IT architecture.
Foster a culture of continuous innovation and learning.
For enterprise businesses, integrating new technologies is not just an IT initiative; it's a strategic move that impacts the entire organization .
Your strategic implementation partner should demonstrate a commitment to ensuring your enterprise not only integrates new technologies effectively but also is poised to thrive in today’s ever-evolving digital landscape .
At Alpha Solutions, we take a holistic approach that considers the strategic business goals of your enterprise at each step of your digital transformation journey.
We recommend you follow these seven steps, and answer the following questions:
✅ Step 1: Initial Assessment and Strategy Development What are your business needs?
✅ Step 2: Choosing Composable vs Non-Composable Technologies What type of technology do you need?
✅ Step 3: Crafting a Customized Technology Implementation Plan What do you want to achieve?
✅ Step 4: Employee Training and Change Management What do you need for the transition?
✅ Step 5: Implementation and Continuous Monitoring How will you stay on track?
✅ Step 6: Evaluation and Iterative Improvement What will you need to measure?
✅ Step 7: Scaling and Future-Proofing How will you stay ahead?
Going lightyears beyond mere technology integration, we focus on how your software implementation plan may strategically drive business growth, enhance operational efficiency, and give your enterprise business a competitive edge in your industry.
Let us lead your enterprise toward a strategic advantage for sustainable growth and success. Contact us for a chat today.
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Understanding business plans, how to write a business plan, common elements of a business plan, 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 outlines a company's goals and the strategies to achieve them. It's valuable for both startups and established companies. For startups, a well-crafted business plan is crucial for attracting potential lenders and investors. Established businesses use business plans to stay on track and aligned with their growth objectives. This article will explain the key components of an effective business plan and guidance on how to write one.
Investopedia / Ryan Oakley
Any new business should have a business plan in place before beginning operations. Banks and venture capital firms often want to see a business plan before considering making a loan or providing capital to new businesses.
Even if a company doesn't need additional funding, having a business plan helps it stay focused on its goals. Research from the University of Oregon shows that businesses with a plan are significantly more likely to secure funding than those without one. Moreover, companies with a business plan grow 30% faster than those that don't plan. According to a Harvard Business Review article, entrepreneurs who write formal plans are 16% more likely to achieve viability than those who don't.
A business plan should ideally be reviewed and updated periodically to reflect achieved goals or changes in direction. An established business moving in a new direction might even create an entirely new plan.
There are numerous benefits to creating (and sticking to) a well-conceived business plan. It allows for careful consideration of ideas before significant investment, highlights potential obstacles to success, and provides a tool for seeking objective feedback from trusted outsiders. A business plan may also help ensure that a company’s executive team remains aligned on strategic action items and priorities.
While business plans vary widely, even among competitors in the same industry, they often share basic elements detailed below.
A well-crafted business plan is essential for attracting investors and guiding a company's strategic growth. It should address market needs and investor requirements and provide clear financial projections.
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, gathering the basic information into a 15- to 25-page document is best. Any additional crucial elements, such as patent applications, can be referenced in the main document and included as appendices.
Common elements in many business plans include:
Investors want to see a clear exit strategy, expected returns, and a timeline for cashing out. It's likely a good idea to provide five-year profitability forecasts and realistic financial estimates.
Business plans can vary in format, often categorized into traditional and lean startup plans. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.
A business plan isn't a surefire recipe for success. The plan may have been unrealistic in its assumptions and projections. Markets and the economy might change in ways that couldn't have been foreseen. A competitor might introduce a revolutionary new product or service. All this calls for building 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 its nature. Updating your business plan is crucial due to changes in external factors (market trends, competition, and regulations) and internal developments (like employee growth and new products). While 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.
The lean startup business plan is ideal for quickly explaining a business, especially for new companies that don't have much information yet. Key sections may include a value proposition , major activities and advantages, resources (staff, intellectual property, and capital), partnerships, customer segments, and revenue sources.
A well-crafted business plan is crucial for any company, whether it's a startup looking for investment or an established business wanting to stay on course. It outlines goals and strategies, boosting a company's chances of securing funding and achieving growth.
As your business and the market change, update your business plan regularly. This keeps it relevant and aligned with your current goals and conditions. Think of your business plan as a living document that evolves with your company, not something carved in stone.
University of Oregon Department of Economics. " Evaluation of the Effectiveness of Business Planning Using Palo Alto's Business Plan Pro ." Eason Ding & Tim Hursey.
Bplans. " Do You Need a Business Plan? Scientific Research Says Yes ."
Harvard Business Review. " Research: Writing a Business Plan Makes Your Startup More Likely to Succeed ."
Harvard Business Review. " How to Write a Winning Business Plan ."
U.S. Small Business Administration. " Write Your Business Plan ."
SCORE. " When and Why Should You Review Your Business Plan? "
Susan Ward wrote about small businesses for The Balance for 18 years. She has run an IT consulting firm and designed and presented courses on how to promote small businesses.
Production process section, the bottom line, frequently asked questions (faqs).
The operations plan is the section of your business plan that gives an overview of your workflow, supply chains, and similar aspects of your business. Any key details of how your business physically produces goods or services will be included in this section.
You need an operations plan to help others understand how you'll deliver on your promise to turn a profit. Keep reading to learn what to include in your operations plan.
In your business plan , the operations plan section describes the physical necessities of your business's operation, such as your physical location, facilities, and equipment. Depending on what kind of business you'll be operating, it may also include information about inventory requirements, suppliers, and a description of the manufacturing process.
Keeping focused on the bottom line will help you organize this part of the business plan.
Think of the operating plan as an outline of the capital and expense requirements your business will need to operate from day to day.
You need to do two things for the reader of your business plan in the operations section: show what you've done so far to get your business off the ground and demonstrate that you understand the manufacturing or delivery process of producing your product or service.
When you're writing this section of the operations plan, start by explaining what you've done to date to get the business operational, then follow up with an explanation of what still needs to be done. The following should be included:
A high-level, step-by-step description of how your product or service will be made, identifying the problems that may occur in the production process. Follow this with a subsection titled "Risks," which outlines the potential problems that may interfere with the production process and what you're going to do to negate these risks. If any part of the production process can expose employees to hazards, describe how employees will be trained in dealing with safety issues. If hazardous materials will be used, describe how these will be safely stored, handled, and disposed.
Show your awareness of your industry's local, regional, or national standards and regulations by telling which industry organizations you are already a member of and which ones you plan to join. This is also an opportunity to outline what steps you've taken to comply with the laws and regulations that apply to your industry.
An explanation of who your suppliers are and their prices, terms, and conditions. Describe what alternative arrangements you have made or will make if these suppliers let you down.
An explanation of the quality control measures that you've set up or are going to establish. For example, if you intend to pursue some form of quality control certification such as ISO 9000, describe how you will accomplish this.
While you can think of the stage of the development part of the operations plan as an overview, the production process section lays out the details of your business's day-to-day operations. Remember, your goal for writing this business plan section is to demonstrate your understanding of your product or service's manufacturing or delivery process.
When writing this section, you can use the headings below as subheadings and then provide the details in paragraph format. Leave out any topic that does not apply to your particular business.
Do an outline of your business's day-to-day operations, including your hours of operation and the days the business will be open. If the business is seasonal, be sure to say so.
Describe the type, site, and location of premises for your business. If applicable, include drawings of the building, copies of lease agreements, and recent real estate appraisals. You need to show how much the land or buildings required for your business operations are worth and tell why they're important to your proposed business.
The same goes for equipment. Besides describing the equipment necessary and how much of it you need, you also need to include its worth and cost and explain any financing arrangements.
Make a list of your assets , such as land, buildings, inventory, furniture, equipment, and vehicles. Include legal descriptions and the worth of each asset.
If your business has any special requirements, such as water or power needs, ventilation, drainage, etc., provide the details in your operating plan, as well as what you've done to secure the necessary permissions.
State where you're going to get the materials you need to produce your product or service and explain what terms you've negotiated with suppliers.
Explain how long it takes to produce a unit and when you'll be able to start producing your product or service. Include factors that may affect the time frame of production and describe how you'll deal with potential challenges such as rush orders.
Explain how you'll keep track of inventory .
Describe any product testing, price testing, or prototype testing that you've done on your product or service.
Give details of product cost estimates.
Once you've worked through this business plan section, you'll not only have a detailed operations plan to show your readers, but you'll also have a convenient list of what needs to be done next to make your business a reality. Writing this document gives you a chance to crystalize your business ideas into a clear checklist that you can reference. As you check items off the list, use it to explain your vision to investors, partners, and others within your organization.
An operations plan is one section of a company's business plan. This section conveys the physical requirements for your business's operations, including supply chains, workflow , and quality control processes.
The operations plan and financial plan tackle similar issues, in that they seek to explain how the business will turn a profit. The operations plan approaches this issue from a physical perspective, such as property, routes, and locations. The financial plan explains how revenue and expenses will ultimately lead to the business's success.
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Thinking of starting a business here's the best step-by-step template for writing the perfect business plan when creating your startup..
Maybe you think you don't need a step-by-step guide to writing a great business plan . Maybe you think you don't need a template for writing a business plan. After all, some entrepreneurs succeed without writing a business plan. With great timing, solid business skills, entrepreneurial drive, and a little luck , some founders build thriving businesses without creating even an informal business plan .
But the odds are greater that those entrepreneurs will fail.
Does a business plan make startup success inevitable? Absolutely not. But great planning often means the difference between success and failure. Where your entrepreneurial dreams are concerned, you should do everything possible to set the stage for success.
And that's why a great business plan is one that helps you succeed .
The following is a comprehensive guide to creating a great business plan. We'll start with an overview of key concepts. Then we'll look at each section of a typical business plan:
Overview and objectives, products and services, market opportunities, sales and marketing.
Financial analysis.
So first let's gain a little perspective on why you need a business plan.
Many business plans are fantasies. That's because many aspiring entrepreneurs see a business plan as simply a tool--filled with strategies and projections and hyperbole--that will convince lenders or investors the business makes sense.
That's a huge mistake.
First and foremost, your business plan should convince you that your idea makes sense--because your time, your money, and your effort are on the line.
So a solid business plan should be a blueprint for a successful business . It should flesh out strategic plans, develop marketing and sales plans, create the foundation for smooth operations, and maybe--just maybe--persuade a lender or investor to jump on board.
For many entrepreneurs, developing a business plan is the first step in the process of deciding whether to actually start a business. Determining if an idea fails on paper can help a prospective founder avoid wasting time and money on a business with no realistic hope of success.
So, at a minimum, your plan should:
A good business plan delves into each of the above categories, but it should also accomplish other objectives. Most of all, a good business plan is convincing . It proves a case. It provides concrete, factual evidence showing your idea for a business is in fact sound and reasonable and has every chance of success.
Who must your business plan convince?
First and foremost, your business plan should convince you that your idea for a business is not just a dream but can be a viable reality. Entrepreneurs are by nature confident, positive, can-do people. After you objectively evaluate your capital needs, products or services, competition, marketing plans, and potential to make a profit, you'll have a much better grasp on your chances for success.
And if you're not convinced, fine: Take a step back and refine your ideas and your plans.
Who can your business plan convince?
1. Potential sources of financing. If you need seed money from a bank or friends and relatives, your business plan can help you make a great case. Financial statements can show where you have been. Financial projections describe where you plan to go.
Your business plan shows how you will get there. Lending naturally involves risk, and a great business plan can help lenders understand and quantity that risk, increasing your chances for approval.
2. Potential partners and investors. Where friends and family are concerned, sharing your business plan may not be necessary (although it certainly could help).
Other investors--including angel investors or venture capitalists--generally require a business plan in order to evaluate your business.
3. Skilled employees . When you need to attract talent, you need something to show prospective employees since you're still in the startup phase. Early on, your business is more of an idea than a reality, so your business plan can help prospective employees understand your goals--and, more important, their place in helping you achieve those goals.
4. Potential joint ventures. Joint ventures are like partnerships between two companies. A joint venture is a formal agreement to share the work--and share the revenue and profit. As a new company, you will likely be an unknown quantity in your market. Setting up a joint venture with an established partner could make all the difference in getting your business off the ground.
But above all, your business plan should convince you that it makes sense to move forward.
As you map out your plan, you may discover issues or challenges you had not anticipated.
Maybe the market isn't as large as you thought. Maybe, after evaluating the competition, you realize your plan to be the low-cost provider isn't feasible since the profit margins will be too low to cover your costs.
Or you might realize the fundamental idea for your business is sound, but how you implement that idea should change. Maybe establishing a storefront for your operation isn't as cost-effective as taking your products directly to customers--not only will your operating costs be lower, but you can charge a premium since you provide additional customer convenience.
Think of it this way. Successful businesses do not remain static. They learn from mistakes, and adapt and react to changes: changes in the economy, the marketplace, their customers, their products and services, etc. Successful businesses identify opportunities and challenges and react accordingly.
Creating a business plan lets you spot opportunities and challenges without risk. Use your plan to dip your toe in the business water. It's the perfect way to review and revise your ideas and concepts before you ever spend a penny.
Many people see writing a business plan as a "necessary evil" required to attract financing or investors. Instead, see your plan as a no-cost way to explore the viability of your potential business and avoid costly mistakes.
Now let's look at the first section of your business plan: The Executive Summary.
The Executive Summary is a brief outline of the company's purpose and goals. While it can be tough to fit on one or two pages, a good Summary includes:
I know that seems like a lot, and that's why it's so important you get it right. The Executive Summary is often the make-or-break section of your business plan.
A great business solves customer problems. If your Summary cannot clearly describe, in one or two pages, how your business will solve a particular problem and make a profit, then it's very possible the opportunity does not exist--or your plan to take advantage of a genuine opportunity is not well developed.
So think of it as a snapshot of your business plan. Don't try to "hype" your business--focus on helping a busy reader get a great feel for what you plan to do, how you plan to do it, and how you will succeed.
Since a business plan should above all help you start and grow your business, your Executive Summary should first and foremost help you do the following.
1. Refine and tighten your concept.
Think of it as a written elevator pitch (with more detail, of course). Your Summary describes the highlights of your plan, includes only the most critical points, and leaves out less important issues and factors.
As you develop your Summary, you will naturally focus on the issues that contribute most to potential success. If your concept is too fuzzy, too broad, or too complicated, go back and start again. Most great businesses can be described in several sentences, not several pages.
2. Determine your priorities.
Your business plan walks the reader through your plan. What ranks high in terms of importance? Product development? Research? Acquiring the right location? Creating strategic partnerships?
Your Summary can serve as a guide to writing the rest of your plan.
3. Make the rest of the process easy.
Once your Summary is complete, you can use it as an outline for the rest of your plan. Simply flesh out the highlights with more detail.
Then work to accomplish your secondary objective by focusing on your readers. Even though you may be creating a business plan solely for your own purposes, at some point you may decide to seek financing or to bring on other investors, so make sure your Summary meets their needs as well. Work hard to set the stage for the rest of the plan. Let your excitement for your idea and your business shine through.
In short, make readers want to turn the page and keep reading. Just make sure your sizzle meets your steak by providing clear, factual descriptions.
How? The following is how an Executive Summary for a bicycle rental store might read.
Introduction
Blue Mountain Cycle Rentals will offer road and mountain bike rentals in a strategic location directly adjacent to an entrance to the George Washington National Forest. Our primary strategy is to develop Blue Mountain Cycle Rentals as the most convenient and cost-effective rental alternative for the thousands of visitors who flock to the area each year.
Once underway, we will expand our scope and take advantage of high-margin new equipment sales and leverage our existing labor force to sell and service those products. Within three years we intend to create the area's premier destination for cycling enthusiasts.
Company and Management
Blue Mountain Cycle Rentals will be located at 321 Mountain Drive, a location providing extremely high visibility as well as direct entry and exit from a primary national park access road. The owner of the company, Marty Cycle, has over 20 years experience in the bicycle business, having served as a product manager for Acme Cycles as well as the general manager of Epic Cycling.
Because of his extensive industry contacts, initial equipment inventory will be purchased at significant discounts from OEM suppliers as well by sourcing excess inventory from shops around the country.
Because of the somewhat seasonal nature of the business, part-time employees will be hired to handle spikes in demand. Those employees will be attracted through competitive wages as well as discounts products and services.
460,000 people visited the George Washington National Forest during the last 12 months. While the outdoor tourism industry as a whole is flat, the park expects its number of visitors to grow over the next few years.
The market potential inherent in those visitors is substantial. According to third-party research data, approximately 30 percent of all cyclists would rather rent than transport their own bicycles, especially those who are visiting the area for reasons other than cycling.
Competitive Advantages
The cycling shops located in Harrisonburg, VA, are direct and established competitors. Our two primary competitive advantages will be location and lower costs.
Our location is also a key disadvantage where non-park rentals are concerned. We will overcome that issue by establishing a satellite location in Harrisonburg for enthusiasts who wish to rent bicycles to use in town or on other local trails.
We will also use online tools to better engage customers, allowing them to reserve and pay online as well as create individual profiles regarding sizes, preferences, and special needs.
Financial Projections
Blue Mountain Cycle Rentals expects to earn a modest profit by year two based on projected sales. Our projections are based on the following key assumptions:
We project first-year revenue of $720,000 and a 10 percent growth rate for the next two years. Direct cost of sales is projected to average 60 percent of gross sales, including 50 percent for the purchase of equipment and 10 percent for the purchase of ancillary items. Net income is projected to reach $105,000 in year three as sales increase and operations become more efficient.
And so on ...
Keep in mind this is just a made-up example of how your Summary might read. Also keep in mind this example focused on the rental business, so a description of products was not included. (They'll show up later.) If your business will manufacture or sell products, or provide a variety of services, then be sure to include a Products and Services section in your Summary. (In this case the products and services are obvious, so including a specific section would be redundant.)
Bottom line: Provide some sizzle in your Executive Summary, but make sure you show a reasonable look at the steak, too.
Providing an overview of your business can be tricky, especially when you're still in the planning stages. If you already own an existing business, summarizing your current operation should be relatively easy; it can be a lot harder to explain what you plan to become .
So start by taking a step back.
Think about what products and services you will provide, how you will provide those items, what you need to have in order to provide those items, exactly who will provide those items, and most important, whom you will provide those items to.
Consider our bicycle rental business example. It's serves retail customers. It has an online component, but the core of the business is based on face-to-face transactions for bike rentals and support.
So you'll need a physical location, bikes, racks and tools and supporting equipment, and other brick-and-mortar related items. You'll need employees with a very particular set of skills to serve those customers, and you'll need an operating plan to guide your everyday activities.
Sound like a lot? It boils down to:
In our example, defining the above is fairly simple. You know what you will provide to meet your customer's needs. You will of course need a certain quantity of bikes to service demand, but you will not need a number of different types of bikes. You need a retail location, furnished to meet the demands of your business. You need semi-skilled employees capable of sizing, customizing, and repairing bikes.
And you know your customers: cycling enthusiasts.
In other businesses and industries, answering the above questions can be more difficult. If you open a restaurant, what you plan to serve will in some ways determine your labor needs, the location you choose, the equipment you need to purchase. And, most important, it will help define your customer. Changing any one element may change other elements; if you cannot afford to purchase expensive kitchen equipment, you may need to adapt your menu accordingly. If you hope to attract an upscale clientele, you may need to invest more in purchasing a prime location and creating an appealing ambience.
So where do you start? Focus on the basics first:
If you are still stuck, try answering these questions. Some may pertain to you; others may not.
Once you work through this list you will probably end up with a lot more detail than is necessary for your business plan. That is not a problem: Start summarizing the main points. For example, your Business Overview and Objectives section could start something like this:
History and Vision
Blue Mountain Cycle Rentals is a new retail venture that will be located at 321 Mountain Drive, directly adjacent to an extremely popular cycling destination. Our initial goal is to become the premier provider for bicycle rentals. We will then leverage our customer base and position in the market to offer new equipment sales as well as comprehensive maintenance and service, custom equipment fittings, and expert trail advice.
Keys to Success
You could certainly include more detail in each section; this is simply a quick guide. And if you plan to develop a product or service, you should thoroughly describe the development process as well as the end result.
The key is to describe what you will do for your customers--if you can't, you won't have any customers.
In the Products and Services section of your business plan, you will clearly describe--yep--the products and services your business will provide.
Keep in mind that highly detailed or technical descriptions are not necessary and definitely not recommended. Use simple terms and avoid industry buzzwords.
On the other hand, describing how the company's products and services will differ from the competition is critical. So is describing why your products and services are needed if no market currently exists. (For example, before there was Federal Express, overnight delivery was a niche business served by small companies. FedEx had to define the opportunity for a new, large-scale service and justify why customers needed--and would actually use --that service.)
Patents, copyrights, and trademarks you own or have applied for should also be listed in this section.
Depending on the nature of your business, your Products and Services section could be very long or relatively short. If your business is product-focused, you will want to spend more time describing those products.
If you plan to sell a commodity item and the key to your success lies in, say, competitive pricing, you probably don't need to provide significant product detail. Or if you plan to sell a commodity readily available in a variety of outlets, the key to your business may not be the commodity itself but your ability to market in a more cost-effective way than your competition.
But if you're creating a new product (or service), make sure you thoroughly explain the nature of the product, its uses, and its value, etc.--otherwise your readers will not have enough information to evaluate your business.
Key questions to answer:
In the cycling rental business example we've been using, products and services could be a relatively simple section to complete or it could be fairly involved. It depends on the nature of the products the company plans to rent to customers.
If Blue Mountain Cycling Rentals plans to market itself as a provider of high-end bikes, describing those bikes--and the sources for those bikes--is important, since "high-end cycling rentals" is intended to be a market differentiation. If the company plans to be the low-cost provider, then describing specific brands of equipment is probably not necessary.
Also, keep in mind that if a supplier runs out of capacity--or goes out of business altogether--you may not have a sufficient supply to meet your demand. Plan to set up multiple vendor or supplier relationships, and describe those relationships fully.
Remember, the primary goal of your business plan is to convince you that the business is viable--and to create a road map for you to follow.
The Products and Services section for our cycling rental business could start something like this:
Product Description
Blue Mountain Cycle Rentals will provide a comprehensive line of bicycles and cycling equipment for all ages and levels of ability. Since the typical customer seeks medium-quality equipment and excellent services at competitive prices, we will focus on providing brands like Trek bikes, Shimano footwear, and Giro helmets. These manufacturers have a widespread reputation as mid- to high-level quality, unlike equipment typically found in the rental market.
The following is a breakdown of anticipated rental price points, per day and per week:
Competition
Blue Mountain Cycle Rentals will have clear advantages over its primary competitors, the bike shops located in Harrisonburg, VA:
Future Products
Expansion will allow us to move product offerings into new equipment sales. We will also explore maintenance and fitting services, leveraging our existing maintenance staff to provide value-added services at a premium price.
When you draft your Products and Services section, think of your reader as a person who knows little to nothing about your business. Be clear and to the point.
Think of it this way: The Products and Services section answers the "what" question for your business. Make sure you fully understand the "what" factor; you may run the business, but your products and services are its lifeblood.
Market research is critical to business success. A good business plan analyzes and evaluates customer demographics, purchasing habits, buying cycles, and willingness to adopt new products and services.
The process starts with understanding your market and the opportunities inherent in that market. And that means you'll need to do a little research. Before you start a business you must be sure there is a viable market for what you plan to offer.
That process requires asking, and more importantly answering, a number of questions. The more thoroughly you answer the following questions, the better you will understand your market.
Start by evaluating the market at a relatively high level, answering some high-level questions about your market and your industry:
Fortunately, you've already done some of the legwork. You've already defined and mapped out your products and services. The Market Opportunities section provides a sense-check of that analysis, which is particularly important since choosing the right products and services is such a critical factor in business success.
But your analysis should go further: Great products are great, but there still must be a market for those products. (Ferraris are awesome, but you're unlikely to sell many where I live.)
So let's dig deeper and quantify your market. Your goal is to thoroughly understand the characteristics and purchasing ability of potential customers in your market. A little Googling can yield a tremendous amount of data.
For the market you hope to serve, determine:
The key is to understand the market in general terms and then to dig deeper to understand whether there are specific segments within that market--the segments you plan to target--that can become customers and support the growth of your business.
Also keep in mind that if you plan to sell products online the global marketplace is incredibly crowded and competitive. Any business can sell a product online and ship that product around the world. Don't simply assume that just because "the bicycle industry is a $62 billion business" (a number I just made up) that you can capture a meaningful percentage of that market.
On the other hand, if you live in an area with 50,000 people and there's only one bicycle shop, you may be able to enter that market and attract a major portion of bicycle customers in your area.
Always remember it's much easier to serve a market you can define and quantify.
After you complete your research you may feel a little overwhelmed. While data is good, and more data is great, sifting through and making sense of too much data can be daunting.
For the purposes of your business plan, narrow your focus and focus on answering these main questions:
The Market Opportunities section for our cycling rental business could start something like this:
Market Summary
Consumer spending on cycling equipment reached $9,250,000 in the states of VA, WV, MD, and NC last year. While we expect sales to rise, for the purposes of performing a conservative analysis we have projected a zero growth rate for the next three years.
In those states 2,500,000 people visited a national forest last year. Our target market includes customers visiting the Shenandoah National Forest; last year 120,000 people visited the area during spring, summer, and fall months.
Over time, however, we do expect equipment rentals and sales to increase as the popularity of cycling continues to rise. In particular we forecast a spike in demand in 2015 since the national road racing championships will be held in Richmond, VA.
Market Trends
Participation and population trends favor our venture:
Market Growth
According to the latest studies, recreation spending in our target market has grown by 14 percent per year for the past three years.
In addition, we anticipate greater than industry-norm growth rates for cycling in the area due to the increase in popularity of cycling events like the Alpine Loop Gran Fondo.
Market Needs
Out target market has one basic need: The availability to source bicycle rentals at a competitive price. Our only other competition are the bike shops in Harrisonburg, VA, and our location will give us a competitive advantage over those and other companies who try to serve our market.
You may want to add other categories to this section based on your particular industry.
For example, you might decide to provide information about Market Segments. In our case, the cycling rental business does not require much segmentation. Rentals are typically not broken down into segments like "inexpensive," "midrange," and "high-end." For the most part rental bikes are more of a commodity. (Although you'll notice in our Products and Services section, we decided to provide "high-end" rentals.)
But say you decide to open a clothing store. You could focus on high fashion, or children's clothes, or outdoor wear, or casual--you could segment the market in a number of ways. If that's the case, provide detail on segmentation that supports your plan.
The key is to define your market--and then show how you will serve your market.
Providing great products and services is wonderful, but customers must actually know those products and services exist. That's why marketing plans and strategies are critical to business success. (Duh, right?)
But keep in mind marketing is not just advertising. Marketing--whether advertising, public relations, promotional literature, etc.--is an investment in the growth of your business.
Like any other investment you would make, money spent on marketing must generate a return. (Otherwise why make the investment?) While that return could simply be greater cash flow, good marketing plans result in higher sales and profits.
So don't simply plan to spend money on a variety of advertising efforts. Do your homework and create a smart marketing program .
Here are some of the basic steps involved in creating your marketing plan:
Then focus on providing detail and backup for your marketing plan.
The Sales and Marketing section for our cycling rental business could start something like this:
Target Market
The target market for Blue Mountain Cycling Rentals is western VA, eastern WV, southwestern MD, and northern NC. While customers in the counties surrounding the George Washington National Forest make up 35 percent of our potential customer base, much of our market travels from outside that geographic area.
Marketing Strategy
Our marketing strategy will focus on three basic initiatives:
Pricing Strategy
We will not be the low-cost provider for our target market. Our goal is to provide mid- to high-end equipment. However, we will create web-based loyalty programs to incent customers to set up online profiles and reserve and renew equipment rentals online, and provide discounts for those who do. Over time we will be able to market specifically to those customers.
Just as in the Market Opportunity section, you may want to include a few more categories. For example, if your business involves a commission-compensated sales force, describe your Sales Programs and incentives. If you distribute products to other companies or suppliers and those distribution efforts will impact your overall marketing plans, lay out your Distribution Strategy.
The key is to show you understand your market and you understand how you will reach your market. Marketing and promotions must result in customers--your goal is to thoroughly describe how you will acquire and keep your customers.
Also keep in mind you may want to include examples of marketing materials you have already prepared, like website descriptions, print ads, web-based advertising programs, etc. While you don't need to include samples, taking the time to create actual marketing materials might help you better understand and communicate your marketing plans and objectives.
Make sure your Sales and Marketing section answers the "How will I reach my customers?" question.
The Competitive Analysis section of your business plan is devoted to analyzing your competition--both your current competition and potential competitors who might enter your market.
Every business has competition. Understanding the strengths and weaknesses of your competition--or potential competition--is critical to making sure your business survives and grows. While you don't need to hire a private detective, you do need to thoroughly assess your competition on a regular basis even if you plan to run only a small business.
In fact, small businesses can be especially vulnerable to competition, especially when new companies enter a marketplace.
Competitive analysis can be incredibly complicated and time-consuming, but it doesn't have to be. Here is a simple process you can follow to identify, analyze, and determine the strengths and weaknesses of your competition.
Profile Current Competitors
First, develop a basic profile of each of your current competition. For example, if you plan to open an office supply store, you may have three competing stores in your market.
Online retailers will also provide competition, but thoroughly analyzing those companies will be less valuable unless you also decide you want to sell office supplies online. (Although it's also possible that they--or, say, Amazon--are your real competition. Only you can determine that.)
To make the process easier, stick to analyzing companies you will directly compete with. If you plan to set up an accounting firm, you will compete with other accounting firms in your area. If you plan to open a clothing store, you will compete with other clothing retailers in your area.
Again, if you run a clothing store, you also compete with online retailers, but there is relatively little you can do about that type of competition other than to work hard to distinguish yourself in other ways: great service, friendly salespeople, convenient hours, truly understanding your customers, etc.
Once you identify your main competitors, answer these questions about each one. And be objective. It's easy to identify weaknesses in your competition, but less easy (and a lot less fun) to recognize how they may be able to outperform you:
While these questions may seem like a lot of work to answer, in reality the process should be fairly easy. You should already have a feel for the competition's strengths and weaknesses--if you know your market and your industry.
To gather information, you can also:
Keep in mind competitive analysis does more than help you understand your competition. Competitive analysis can also help you identify changes you should make to your business strategies. Learn from competitor strengths, take advantage of competitor's weaknesses, and apply the same analysis to your own business plan.
You might be surprised by what you can learn about your business by evaluating other businesses.
Identify Potential Competitors
It can be tough to predict when and where new competitors may pop up. For starters, regularly search for news on your industry, your products, your services, and your target market.
But there are other ways to predict when competition may follow you into a market. Other people may see the same opportunity you see. Think about your business and your industry, and if the following conditions exist, you may face competition does the road:
In general terms, if serving your market seems easy you can safely assume competitors will enter your market. A good business plan anticipates and accounts for new competitors.
Now distill what you've learned by answering these questions in your business plan:
The Competitive Analysis section for our cycling rental business could start something like this:
Primary Competitors
Our nearest and only competition is the bike shops in Harrisonburg, VA. Our next closest competitor is located over 100 miles away.
The in-town bike shops will be strong competitors. They are established businesses with excellent reputations. On the other hand, they offer inferior-quality equipment and their location is significantly less convenient.
Secondary Competitors
We do not plan to sell bicycles for at least the first two years of operation. However, sellers of new equipment do indirectly compete with our business since a customer who buys equipment no longer needs to rent equipment.
Later, when we add new equipment sales to our operation, we will face competition from online retailers. We will compete with new equipment retailers through personalized service and targeted marketing to our existing customer base, especially through online initiatives.
Opportunities
While your business plan is primarily intended to convince you that your business makes sense, keep in mind most investors look closely at your competitive analysis. A common mistake made by entrepreneurs is assuming they will simply "do it better" than any competition.
Experienced businesspeople know you will face stiff competition: showing you understand your competition, understand your strengths and weaknesses relative to that competition, and that you understand you will have to adapt and change based on that competition is critical.
And, even if you do not ever plan to seek financing or bring in investors, you absolutely must know your competition.
The Competitive Analysis section helps you answer the "Against whom?" question.
The next step in creating your business plan is to develop an Operations Plan that will serve your customers, keep your operating costs in line, and ensure profitability . Your ops plan should detail strategies for managing, staffing, manufacturing, fulfillment, inventory--all the stuff involved in operating your business on a day-to-day basis.
Fortunately, most entrepreneurs have a better handle on their operations plan than on any other aspect of their business. After all, while it may not seem natural to analyze your market or your competition, most budding entrepreneurs tend to spend a lot of time thinking about how they will run their businesses.
Your goal is to answer the following key questions:
Operations plans should be highly specific to your industry, your market sector, and your customers. Instead of providing an example like I've done with other sections, use the following to determine the key areas your plan should address:
Location and Facility Management
In terms of location, describe:
Daily Operations
Personnel Requirements
Sound like a lot? It can be, but not all of the above needs to be in your business plan.
You should think through and create a detailed plan for each category, but you won't need to share the results with the people who read your business plan
Working through each issue and developing concrete operations plans helps you in two major ways:
Think of Operations as the "implementation" section of your business plan. What do you need to do? How will you get it done? Then create an overview of that plan to make sure your milestones and timeline make sense.
That way the operations section answers the "How?" question.
Many investors and lenders feel the quality and experience of the management team is one of the most important factors used to evaluate the potential of a new business.
But putting work into the Management Team section will not only benefit people who may read your plan. It will also help you evaluate the skills, experiences, and resources your management team will need . Addressing your company's needs during implementation will make a major impact on your chances for success.
The Management Team section for our cycling rental business could start something like this:
Jim Rouleur, Owner and Manager
Joe has over 20 years experience in the cycling business. He served for 10 years as a product manager for Acme Bikes. After that he was the operations manager of Single Track Cycles, a full-service bike shop located in Bend, Oregon. He has an undergraduate degree in marketing from Duke University and an MBA from Virginia Commonwealth University. (A complete resume for Mr. Rouleur can be found in the Appendix.)
Mary Gearset, Assistant Manager
Mary was the 2009 U.S. Mountain Biking National Champion. She worked in product development for High Tec frames, creating custom frames and frame modifications for professional cyclists. She also has extensive customer service and sales experience, having worked for four years as the online manager of Pro Parts Unlimited, an online retailer of high-end cycling equipment and accessories.
In some instances you may also wish to describe your staffing plans.
For example, if you manufacture a product or provide a service and will hire a key skilled employee, describe that employee's credentials. Otherwise, include staffing plans in the Operations section.
One key note: Don't be tempted to add a "name" to your management team in hopes of attracting investors. Celebrity management team members may attract the attention of your readers, but experienced lenders and investors will immediately ask what role that person will actually play in the running of the business--and in most cases those individuals won't play any meaningful role.
If you don't have a lot of experience--but are willing to work hard to overcome that lack of experience--don't be tempted to include people in your plan who will not actually work in the business.
If you can't survive without help, that's okay. In fact, that's expected; no one does anything worthwhile on their own. Just make plans to get help from the right people.
Finally, when you create your Management section, focus on credentials but pay extra attention to what each person actually will do . Experience and reputation are great, but action is everything.
That way your Management section will answer the "Who is in charge?" question.
Numbers tell the story. Bottom line results indicate the success or failure of any business.
Financial projections and estimates help entrepreneurs, lenders, and investors or lenders objectively evaluate a company's potential for success. If a business seeks outside funding, providing comprehensive financial reports and analysis is critical.
But most important, financial projections tell you whether your business has a chance of being viable--and if not let you know you have more work to do.
Most business plans include at least five basic reports or projections:
It's easy to find examples of all of the above. Even the most basic accounting software packages include templates and samples. You can also find templates in Excel and Google Docs. (A quick search like "google docs profit and loss statement" yields plenty of examples.)
Or you can work with an accountant to create the necessary financial projections and documents. Certainly feel free to do so, but first play around with the reports yourself. While you don't need to be an accountant to run a business, you do need to understand your numbers, and the best way to understand your numbers is usually to actually work with your numbers.
But ultimately the tools you use to develop your numbers are not as important as whether those numbers are as accurate as possible--and whether those numbers help you decide whether to take the next step and put your business plan into action.
Then Financial Analysis can help you answer the most important business question: "Can we make a profit?"
Some business plans include less essential but potentially important information in an Appendix section. You may decide to include, as backup or additional information:
Keep in mind creating an Appendix is usually only necessary if you're seeking financing or hoping to bring in partners or investors. Initially the people reading your business plan don't wish to plow through reams and reams of charts, numbers, and backup information. If one does want to dig deeper, fine--he or she can check out the documents in the Appendix.
That way your business plan can share your story clearly and concisely.
Otherwise, since you created your business plan, you should already have the backup.
While you may use your business plan to attract investors, partners, suppliers, etc., never forget that the goal of your business plan is to convince you that your idea makes sense.
Because ultimately it's your time, your money, and your effort on the line.
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Introduction, foundations of technology planning, what is a strategic technology plan.
Key contributors.
It’s an inescapable fact of today’s business environment: Growth and efficiency depend on how effectively your organization leverages data and technology.
For centuries, management of cash and physical assets have been central to building a growing, sustainable, successful business. Today, our technology systems that underpin the lifecycle of data are just as critical an asset as the cash and physical components.
Data and technology provide the lifeblood of every aspect of a modern business, including driving internal process improvements, maximizing marketing impacts, building sustainable customer relationships , accelerating sales and providing effective customer support.
There is now a clear imperative for all CEOs and boards to have a strategic understanding of the technology strategies, choices and investments their organizations need to make. Vistage International found that 40 percent of small- and medium-business CEOs surveyed plan to increase their technology investments for 2021. We’ve found a similar result among the clients and markets we serve.
The CEO’s challenge is to develop an appropriate strategic perspective on the choices to be made, so effective guidance and decisions can determine budgeting, investment priorities and talent strategies across the organization.
But that is often easier said than done.
In this guide, you’ll discover the process of creating a strategic technology plan that aligns with your business’s key growth and performance objectives.
In the simplest terms, a technology plan addresses the data and underlying technical capabilities needed to enable the organization to achieve its strategic objectives. It can be boiled down to:
An effective technology plan, then, does not simply encompass future needs based on your current operating framework. It must accommodate the evolution of the operating model and be driven by a handful of future scenarios.
Consider the case of one of our past clients, a publisher who sold a series of highly valuable annual reference books with lots of tabular data.
A thorough review with the customers of the books found most only bought them every two to three years and used them mainly for reference. After converting to a web-based annual subscription model, combined with an Excel plug-in, the publisher more than tripled its revenue.
The six elements above are required for any effective strategic technology plan. But success in these areas will depend on embracing some core principles.
One is to place an “outside-in” customer perspective at the core of the design of all digital products and services. Another is to ensure the strategic technology plan is closely aligned with the business’s strategic operating plan and is owned by the entire executive leadership team.
Most important, however, is effective communication.
The plan must be written in plain language and be understandable by the entire organization, including the board. Technical details should be placed in the appendix
Based on our work in technology strategy over the last several years, it’s safe to say you’ll require a master technology plan and then several smaller functional-specific plans for key strategic investments or operating transformations.
Here are three key steps to creating an effective plan:
Ensure you have the proper experience and expertise to conduct the technology assessment , either with in-house skills and expertise or by enlisting an external consulting firm . External partners should be able to demonstrate the depth of expertise in real-world technology operations valid for assessing your needs.
Interview key technology and business stakeholders to understand the current state of their technology landscape, capabilities and operational alignment with strategic objectives and – most importantly – perceived gaps and deficiencies in current capabilities.
Particular focus should be placed on the following functional domains:
Identify any functional gaps between your defined forward-looking business strategy and your current enabling technology landscape.
Quantify the costs and investments associated with addressing prioritized investments. Analysis should include engineering costs, third-party consulting, software licensing or cloud-based operating expenses, new staffing required to fill skills gaps, etc.
Define priorities and sequencing based on alignment to high-impact strategic requirements and the level of investment and associated risk.
Make sure your plan adopts the following principles:
Establish a small, dedicated team to manage the implementation. This also can be handled internally, but key staff should still be closely involved if the job is outsourced to a consulting firm .
The team will define implementation options and create a phased schedule that addresses dependencies and linkages between each investment stream.
Adopt an agile approach to carrying out the project, with success measured in short, manageable sprints and frequent value delivery of value.
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Once you have your plan, it is time to establish budgets. While it’s often contemplated in terms of which one comes first, it is difficult to budget without knowing what type of growth and change you want your technology to drive.
Working with so many organizations and technology budgets, we’ve seen a lot of dos and don’ts when it comes to budgeting.
Too often, budgets and reviews are focused simply on line-items such as hardware, software, security, networking, data center and staffing costs. But these don’t tell the whole story of the business, nor do they speak to the rationale for how technology investments are supporting the business today or paving the way for future growth.
Understanding your industry benchmarks is a good way to begin determining the size and scope of your technology plan. Start by defining your industry as narrowly as possible. Map the industry leaders, followers, mainstream and laggards and map your own place on this continuum today and in the future.
Then, you’ll want to define and benchmark each of your technology spending platforms and categories such as end-user computing, security, networking, e-commerce and customer relationship management (CRM) . You can obtain benchmark data from such sources as Gartner, Forrester and IDC, among others.
Don’t stop at benchmarking.
Once you have the data, analyze where in the range your technology budgets fall, and where the opportunity may be to make allocations both more efficient and effective for growth.
A final reminder when looking at your budget is the importance of teamwork.
As a CEO, your job is to bring together the plans between operations, finance, product, technology and service departments. A reserve, a capital spending plan or some other flexible approach to reallocate budgets based on changing priorities may be necessary to create future products. This may also be necessary to seize new market opportunities and improve the customer experience in a changing competitive landscape.
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While change is the only constant in our world today, it’s a component we must consider as we plan and manage technology.
Many companies establish three- to five-year cycles for their in-depth business strategy review, with annual review and update cycles. The technology plan cycle should match this business strategy cycle.
The majority of growth-minded, mid-market organizations revisit their technology plans on an annual basis and monitor spending throughout the course of the year, whether monthly or quarterly.
Major accomplishments or events can lead to the update of the plan.
For example, if a new CRM platform has been implemented, or a cloud policy has been established, these events should trigger a review of the plan to ensure any consequences are accurately reflected in the plan.
Obviously, there is no one single approach to developing and implementing a strategic technology plan. But we hope the guidance above sparks some thinking about how to tackle the problem in manageable pieces.
Developing a plan in a way that makes all stakeholders feel included is key.
Keeping the customers’ needs in mind, as well as the business’s imperatives, is also a core part of our message. And, when budgeting, deciding which functions you want to run, grow and transform will help you allocate your spending in a way that keeps current business operations intact while finding new revenue and staying current with customers fast-changing technology demands.
Starting a business often begins with writing a business plan , especially if you need funding . It acts as a roadmap, guiding you through each stage of launching and managing your company, and it presents a clear, compelling case to potential investors and partners. But here's the thing: not everyone finds this step intuitive. That's where a business plan outline can be incredibly helpful.
Creating a detailed business plan outline helps you organize your thoughts and ensure you cover all the key aspects of your business strategy. Plus, it might be just what you need to overcome that blank page and start typing.
Below, you'll find an easy-to-follow guide on how to craft your business plan outline, and an example to show you what it should look like.
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Think of a business plan outline as the skeleton of your entire business plan. It gives a high-level overview of the main sections you'll need to flesh out later. It's not the final document but a crucial step in getting you there.
Simply put, it's like creating a detailed table of contents for your business plan, showing you exactly what information to include and how everything fits together. A well-structured business plan outline also helps you plan things ahead, saving time and effort.
Follow these steps to build your business plan outline and learn exactly what each section should include.
(Bear in mind that every business plan is unique, tailored to the specific needs and goals of the business. While the structure below is common, the order of sections may vary—only the executive summary will always come first.)
Imagine you have just 60 seconds to convince someone to invest in your business. That's the essence of a strong executive summary. Although it appears first on your business plan, this section is often written last because it sums up the entire plan. Think of it as your elevator pitch . This section gives a quick overview of your entire business plan, highlighting key points that grab the reader's attention.
Keep it clear and concise. Start with a brief overview of your business, including its name and what it offers. Summarize your mission statement and objectives, and don’t forget to mention crucial aspects like financial projections and competitive advantages.
Here's where you provide detailed information about your company. Begin with the business name and location. Describe the legal structure (e.g., sole proprietorship, partnership, corporation) and ownership. If your business already exists, share a brief history.
For new ventures, explain the business's nature and the problems you aim to solve. Go into more detail about your vision and mission statements, outlining your goals and the principles guiding your business. This section helps potential investors and stakeholders grasp your company’s identity and purpose.
This section shares insights into your company’s industry. Start with a landscape analysis to give an overview of the market, including its size, growth rate, and key players.
Next, define your target market and customer demographics—age, location, income, and interests—detailing who your ideal customers are. Identify market needs and trends your business will address, and highlight customer pain points your product or service aims to solve.
Consider conducting a SWOT analysis to evaluate your business's strengths, weaknesses, opportunities, and threats, and gain a strategic view of where your business stands in the competitive landscape.
Describe how your business is structured and who runs it. Outline the organizational structure, and if helps, include a chart. Introduce the leadership team and key personnel, highlighting their qualifications and roles. If you have a board of directors, mention them and briefly explain their involvement.
Then, outline your production processes, detailing how your product or service is (or will be) created—from sourcing materials to delivery—to give a comprehensive view of your operational capabilities.
This section of your business plan outline is crucial for showing potential investors what makes your products and services unique and valuable.
Clearly describe what your business offers, emphasizing your unique selling propositions (USPs) and the benefits and features that set you apart from the competition. Talk about the product life cycle, including any plans for future updates.
If your business holds any intellectual property or proprietary technologies, detail them here to underscore your competitive advantages.
Having a fantastic product or service is just half the battle. The marketing plan section should outline how you'll reach your target market and convert them into customers.
Begin with market positioning and branding, explaining how you want your brand perceived. Detail your marketing and promotional strategies, including specific tactics to reach your target audience.
Discuss your sales strategy, focusing on how you'll convert leads into customers. Lastly, include your pricing strategy and provide a sales forecast, projecting your expected revenue over a certain period.
Here, the goal is to give a detailed overview of the physical and logistical aspects of your company. Start with the business location and facilities, describing where it operates and any significant physical assets. Detail the technology and equipment needed for daily operations.
Briefly describe your supply chain and logistics processes to illustrate how you manage inventory, procurement, and distribution. Finish it by outlining your production process and quality control measures to ensure your products or services consistently meet high standards.
Use this section of the business plan to show how your company will succeed financially. Include financial projections like income statements and cash flow statements. Specify how much capital you need and how you plan to use it, discussing funding sources.
Conduct a break-even analysis to estimate when your business will become profitable. Be transparent and address any financial risks and assumptions, outlining how you plan to mitigate them.
In this section, include any additional information that supports your business plan. This might be resumes of key personnel to highlight your team's expertise and experience, or even legal documents and agreements.
Include market research data and surveys to back up your market analysis. Add financial statements for a detailed look at your financial plan. Also, provide detailed product specifications to give a clear understanding of your products and services.
Not quite there yet? Take a look at this business plan outline example—it will make everything clear for you.
3.1 Executive Summary
3.2 Company Description
3.3 Market Research and Analysis
3.4 Organization and Management
3.5 Products and Services
3.6 Marketing Strategy
3.7 Operations Plan
3.8 Financial Plan
3.9 Appendices and Exhibits (if applicable)
Once you've done your business plan outline, it's time to fill in the gaps and craft a winning business plan. Here are some bonus tips to keep in mind:
Read this next: How to Start a Business in 8 Steps: A Comprehensive Guide from Concept to Launch
How To Start A Business Plan: A Step-By-Step Guide
Creating a business plan is a critical first step for any entrepreneur. Knowing how to start a business plan will help you create a roadmap, guiding your business from startup to growth and beyond. Whether you're looking for investment, trying to set clear goals, or simply organizing your thoughts, a solid business plan can make all the difference.
1. executive summary.
What It Is: This section summarizes your business plan as a whole and outlines your company profile and goals.
What to Include:
Tip: Keep it concise. Although it's the first section, it's often best to write it last, after you’ve detailed everything else.
What It Is: This section provides detailed information about your company, including who you are, what you do, and what markets you serve.
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Tip: Use this section to highlight your company’s strengths and what makes you unique.
What It Is: Market research demonstrates your understanding of the industry and target market.
Tip: Include data and statistics to back up your findings and show that you’ve done your homework.
What It Is: This section outlines your business’s organizational structure and management team.
Tip: Highlight the skills and experiences of your team that will help the business succeed.
What It Is: Here, you detail the products or services you offer or plan to offer.
Tip: Focus on the benefits your products or services bring to your customers.
What It Is: This section explains how you will attract and retain customers.
Tip: Ensure your marketing and sales strategies are aligned with your market research findings.
What It Is: If you’re seeking funding , this section outlines your requirements.
Tip: Be specific and realistic about how much funding you need and how it will be used.
8. Financial Projections
What It Is: Financial projections provide a forecast of your business’s financial future.
Tip: Use realistic and conservative estimates. Consider hiring a financial professional to help with this section if needed.
What It Is: The appendix includes any additional information that supports your business plan.
Tip: Only include essential information that adds value to your business plan.
Creating a business plan requires clarity and precision. First and foremost, keep your business plan clear and concise. Avoid using jargon or complex language that could make the plan difficult to read or understand. Your aim should be to communicate your ideas effectively and efficiently.
Next, be realistic in your approach. Ensure that your goals and financial projections are attainable based on your research and understanding of the market. Overly ambitious projections can undermine your credibility and potentially lead to unrealistic expectations.
It's also essential to remember that a business plan is a dynamic document. As your business grows and market conditions change, you should revisit and revise your plan regularly. This helps you stay aligned with your goals and adapt to new challenges and opportunities.
Finally, seek feedback from experienced business professionals. Having someone with business experience review your plan can provide valuable insights and help identify any potential issues or areas for improvement. Their feedback can enhance the overall quality and effectiveness of your business plan.
By following these tips, you'll be better equipped to create a robust and effective business plan that can guide your business towards success.
The bottom line is that starting a business plan may seem challenging, but with careful planning and attention to detail, you can create a comprehensive guide to steer your business toward success. Use this step-by-step guide to ensure that all essential components are covered, giving your business the best possible start.
Melissa Houston, CPA is the author of Cash Confident: An Entrepreneur’s Guide to Creating a Profitable Business and the founder of She Means Profit . As a Business Strategist for small business owners, Melissa helps women making mid-career shifts, to launch their dream businesses, and I also guide established business owners to grow their businesses to more profitably.
The opinions expressed in this article are not intended to replace any professional or expert accounting and/or tax advice whatsoever.
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Find out how to achieve ROI and business outcomes with a documented digital marketing success plan. Get tips from Corey Morris' new book.
This excerpt is from The Digital Marketing Success Plan, the new book from SEJ VIP Contributor Corey Morris.
In what is the most distracted and disrupted era in digital marketing–especially SEO–history, we’re testing and trying things out faster than ever. While change is coming at us fast, it is critically important to still have a documented, actionable, and accountable plan for your digital marketing efforts .
In his new book, Corey Morris, details a five-step START Planning process to help brands arrive at their own digital marketing success plans to ensure ROI and business outcomes are at the heart of every effort while allowing plenty of room and agility for the rapid changes we’re experiencing in digital and search marketing.
Search Engine Journal has an exclusive feature of the first step in the START Planning process–”S for Strategy”–unpacking the four steps in this first and most critical phase.
The Strategy Phase is the most comprehensive part of the START planning process. The subsequent phases are all dependent on the work done and defined in this phase.
Strategy works through profiling, auditing, research, and goal setting. Knowing what marketing has been done in the past, where things stand currently, and—most importantly—where you want to go is critical at this juncture and overall for any digital marketing success plan.
The strategy phase has four steps, the first of which is profile. This could be considered a simple step, as we’re just gathering information and definitions.
However, it could also be misinterpreted, and it is challenging because it requires an expert to ask the right questions. That includes detailing the team involved in the effort and defining the product (services) we must sell, the brand, and the target audiences.
In short, we’re putting the details on the table about who we are, our resources, and our capabilities. We are identifying what we’re selling, what value it has, how we deliver it, and the pricing model. We also must know what our brand is in terms of positioning, differentiation, and equity that it holds.
And, as important as anything, we must know who our target audience personas are, their customer behaviors, and the funnels or journeys they take to buy.
Anyone can ramble off some demographics or targets. But, as companies grow, having a mutually agreed understanding of what the business sells, who it sells to, and the money it costs to do so is extremely hard.
I say all of this in hopes that you don’t get stuck here on some of the hard details, and also knowing that if it is easy, you might want to challenge some things and see if you can go deeper and ensure that you truly have the agreement and buy-in that you seem to.
The second step in the strategy phase is audit. We need to know what we’ve done in the past and are currently doing so we have a full picture of what has worked, what hasn’t, and why. Audits are important at this juncture, and this step might be one of the most time-consuming in the entire digital marketing success plan development journey.
As you obtain or create documentation of historical activities, you’ll need access to all the past and present networks and platforms. Then, you can deep dive into audits , including technical paid search , technical SEO , content SEO , web systems, email marketing systems , and more, based on what has been done in the past and what is available for you at this juncture.
The third step in the strategy phase is research. So far, the focus has been on who we are and what we’ve done leading up to where we currently stand with our efforts. This phase is where we get perspectives beyond our own data and understanding.
This is where we seek out internal perspectives from marketing, sales, ops, product, and other relevant teams and stakeholders—as well as from our customers or clients. Additionally, we’re doing external research to learn new insights or validate what we think when it comes to competitors, target audiences, and what the future opportunity forecasts or models out for us.
The final step in strategy is goals. With a thorough picture of who we are, where we stand, and what opportunities are out there for us, we can workshop to arrive at a realistic set of goals . Maybe we came into the process with our own goals, or maybe at this point, we’re starting from scratch.
Regardless, this step is critical to the rest of the process and arriving at a plan that can drive success. This is where we look at business goals and how marketing can affect them and ensure we set proper expectations before we move the strategy from ideas to action.
A high-end roofing manufacturing company came to us with a unique problem. Marcy, their marketing manager, had a lot of past success with SEO, their website and email marketing, and extensive campaigns driving traffic to their websites for homeowners and contractors alike–fueling their sales operations.
Marcy had gone through several different agencies over the past few years. She had varying experiences with them, had a great one for a while, and then had a couple that didn’t value or know as much about SEO. She didn’t realize that, at the time, it was a line item to some of those agencies. It was getting done, and rankings and traffic were fine. Nothing was sticking out of the ordinary.
One day, Marcy noticed a problem in Google Analytics. Traffic is starting to drop overall. She dives in and, as she is very familiar with the reports and channels and diagnoses this as an SEO problem within a minute. SEO traffic is dropping, but she can’t tell why.
The agency says everything looks good on their end. Marcy can’t find any errors on the site. However, there’s this mysterious drop where she can see they’re not where they used to be in the Google rankings. Subsequent drops in traffic, conversions, and form submissions going through to their sales team validate it.
She remembered her work with me a few years prior at a different agency and reached out. She thought of me as someone she could trust to fix any SEO problem, which I take as high praise. I was at a conference in Silicon Valley, getting ready to take the stage to speak about SEO troubleshooting.
And so that was the ironic part of it to me. I gave my speech and immediately after had a longer conversation with Marcy over the phone. I could dive in and see the same things she saw, and I knew that we needed to do a full audit very quickly and understand what was going on.
I brought the rest of my team back home into the challenge. Within two days, we had diagnosed two very acute issues that were hidden and that most people wouldn’t see. We wouldn’t have found them unless we had gone through our analysis auditing process to get that deep.
We presented those findings to Marcy and her CEO, who both knew how big of a negative impact this would have on their business if they didn’t get this corrected.
We presented three options. One was to fix the issues technically within their current site. Still, being forward-thinking and ROI-driven, we didn’t want just to offer to patch the holes and wait for the next problem to come. So, we presented two other plans. They included a midrange plan and a long-range plan to build a new website and not only fix the issues but also strategically amplify some other things.
They opted to invest in the new website, and that turned into an ongoing relationship with us to monitor and amplify their SEO and take it to new heights, not just reclaiming what they had lost but making new ground. And I’m excited that we saw that all the way through. It played out exactly as we had projected and was validated by growth for them.
The company eventually sold for a record amount and won awards from our peers for that work. The moral of the story is not just to accept the status quo but to realize that not all professionals who have SEO in their title have an equal set of skills. Auditing is an important tool in getting to the root cause, not just for fixing an immediate problem but even more critically for long-term success.
Jamaal found us through Google. He was the director of admissions and marketing for a high-end retirement facility that serves as a continuing care community. They had everything: independent living, dining in chef-inspired restaurants, activities, a pub, and anything that active senior living would want through the continuum of care, including assisted living and skilled nursing.
They have an excellent reputation in their city and are well known; however, that’s with the community at large. They needed help to reach their target audience, who could be potential residents or adult child influencers in their lives—the next generation down.
When something happens, and it’s time to look for this type of living situation, the people at that important step are less aware and less prepared for the conversations they must have with their loved ones in a critical phase of life. These people were supposed to be moving into research and action toward admission.
Also, while it was a wealthy, high-end property, it was nonprofit, very benevolent, and gave back so much. The margins were tight, and there wasn’t a large marketing budget, but they knew they needed to do something.
Jamaal’s challenge when he came to us was, “I know you can do everything. I know I probably need all the things under the digital marketing umbrella. I even need a new website, but I don’t have the budget.”
We said, “That’s not a problem. We start small with many of our clients and find the areas where we can have the greatest ROI and impact. Then, we build from there and create budgets, opening up dollars for investment in other opportunities.”
So, we came into the situation, and we analyzed their audience. They had a wealth of data. They knew their business inside and out, and it was fantastic for us to see that. Still, they needed help understanding digital marketing and couldn’t connect the dots.
They had talked to three or four other providers who gave them high-ticket products or service offerings and didn’t want to work with them to find the right solution or where they should get the most bang for their buck.
We returned to them and recommended, “You should start with SEO.”
Jamaal laughed because he said that was the opposite recommendation that several of the other agencies had made. They had said, “No, you should start with $100,000 a month in Google Ads.”
I said, “You should start on SEO at a fraction of that,” even though we knew the challenges were there with being unable to build a new website. We’d have to navigate their antiquated website and optimize what they had.
We knew that telling the story, getting the content right, and even optimizing a lousy website would get us further along in the long-term journey of driving new leads to the website. We knew we only needed a handful of people to find the site to understand what they did at the right moment, get the right story, and come through the doors and experience this wonderful place.
After building momentum, one lead at a time, we could start talking about a new website, activate additional marketing channels, and layer in aspects of the digital marketing success plan to see success in the long term.
Ultimately, they grew as a business and their marketing investment grew respectively. Eventually, they were acquired by a large hospital system, where everyone could flourish and get the mission and the word out.
The moral of the story is it’s always better to do something rather than nothing.
But if you’re on a limited budget, understand that the obvious answers or the expensive ones aren’t necessarily the best ones. Be willing to dig into the data, do the hard work, and see the opportunity to create new budgets.
By seeing small successes, one at a time, you can build toward bigger things.
To learn more about why digital marketing planning is so important, Corey’s START Planning process, and how to implement which he details in the full book (including more real stories and “how to” sections for each phase of the process), download the book now on Amazon .
For a limited time through July 17, the Kindle version is only 99 cents.
You can also find out more information and free resources at https://thedmsp.com
More resources:
Featured Image: nuruddean/Shutterstock
Corey is the owner and President/CEO of Voltage. He has spent nearly 20 years working in strategic and leadership roles ...
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Noah Parsons
24 min. read
Updated May 7, 2024
Writing a business plan doesn’t have to be complicated.
In this step-by-step guide, you’ll learn how to write a business plan that’s detailed enough to impress bankers and potential investors, while giving you the tools to start, run, and grow a successful business.
If you’re reading this guide, then you already know why you need a business plan .
You understand that planning helps you:
As you start to write your plan, it’s useful to zoom out and remember what a business plan is .
At its core, a business plan is an overview of the products and services you sell, and the customers that you sell to. It explains your business strategy: how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.
Most business plans also include financial forecasts for the future. These set sales goals, budget for expenses, and predict profits and cash flow.
A good business plan is much more than just a document that you write once and forget about. It’s also a guide that helps you outline and achieve your goals.
After completing your plan, you can use it as a management tool to track your progress toward your goals. Updating and adjusting your forecasts and budgets as you go is one of the most important steps you can take to run a healthier, smarter business.
We’ll dive into how to use your plan later in this article.
There are many different types of plans , but we’ll go over the most common type here, which includes everything you need for an investor-ready plan. However, if you’re just starting out and are looking for something simpler—I recommend starting with a one-page business plan . It’s faster and easier to create.
It’s also the perfect place to start if you’re just figuring out your idea, or need a simple strategic plan to use inside your business.
Dig deeper : How to write a one-page business plan
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The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally just one to two pages. Most people write it last because it’s a summary of the complete business plan.
Ideally, the executive summary can act as a stand-alone document that covers the highlights of your detailed plan.
In fact, it’s common for investors to ask only for the executive summary when evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation , or more in-depth financial forecasts .
Your executive summary should include:
Dig Deeper: How to write an effective executive summary
This is where you describe exactly what you’re selling, and how it solves a problem for your target market. The best way to organize this part of your plan is to start by describing the problem that exists for your customers. After that, you can describe how you plan to solve that problem with your product or service.
This is usually called a problem and solution statement .
To truly showcase the value of your products and services, you need to craft a compelling narrative around your offerings. How will your product or service transform your customers’ lives or jobs? A strong narrative will draw in your readers.
This is also the part of the business plan to discuss any competitive advantages you may have, like specific intellectual property or patents that protect your product. If you have any initial sales, contracts, or other evidence that your product or service is likely to sell, include that information as well. It will show that your idea has traction , which can help convince readers that your plan has a high chance of success.
Your target market is a description of the type of people that you plan to sell to. You might even have multiple target markets, depending on your business.
A market analysis is the part of your plan where you bring together all of the information you know about your target market. Basically, it’s a thorough description of who your customers are and why they need what you’re selling. You’ll also include information about the growth of your market and your industry .
Try to be as specific as possible when you describe your market.
Include information such as age, income level, and location—these are what’s called “demographics.” If you can, also describe your market’s interests and habits as they relate to your business—these are “psychographics.”
Related: Target market examples
Essentially, you want to include any knowledge you have about your customers that is relevant to how your product or service is right for them. With a solid target market, it will be easier to create a sales and marketing plan that will reach your customers. That’s because you know who they are, what they like to do, and the best ways to reach them.
Next, provide any additional information you have about your market.
What is the size of your market ? Is the market growing or shrinking? Ideally, you’ll want to demonstrate that your market is growing over time, and also explain how your business is positioned to take advantage of any expected changes in your industry.
Dig Deeper: Learn how to write a market analysis
Part of defining your business opportunity is determining what your competitive advantage is. To do this effectively, you need to know as much about your competitors as your target customers.
Every business has some form of competition. If you don’t think you have competitors, then explore what alternatives there are in the market for your product or service.
For example: In the early years of cars, their main competition was horses. For social media, the early competition was reading books, watching TV, and talking on the phone.
A good competitive analysis fully lays out the competitive landscape and then explains how your business is different. Maybe your products are better made, or cheaper, or your customer service is superior. Maybe your competitive advantage is your location – a wide variety of factors can ultimately give you an advantage.
Dig Deeper: How to write a competitive analysis for your business plan
The marketing and sales plan covers how you will position your product or service in the market, the marketing channels and messaging you will use, and your sales tactics.
The best place to start with a marketing plan is with a positioning statement .
This explains how your business fits into the overall market, and how you will explain the advantages of your product or service to customers. You’ll use the information from your competitive analysis to help you with your positioning.
For example: You might position your company as the premium, most expensive but the highest quality option in the market. Or your positioning might focus on being locally owned and that shoppers support the local economy by buying your products.
Once you understand your positioning, you’ll bring this together with the information about your target market to create your marketing strategy .
This is how you plan to communicate your message to potential customers. Depending on who your customers are and how they purchase products like yours, you might use many different strategies, from social media advertising to creating a podcast. Your marketing plan is all about how your customers discover who you are and why they should consider your products and services.
While your marketing plan is about reaching your customers—your sales plan will describe the actual sales process once a customer has decided that they’re interested in what you have to offer.
If your business requires salespeople and a long sales process, describe that in this section. If your customers can “self-serve” and just make purchases quickly on your website, describe that process.
A good sales plan picks up where your marketing plan leaves off. The marketing plan brings customers in the door and the sales plan is how you close the deal.
Together, these specific plans paint a picture of how you will connect with your target audience, and how you will turn them into paying customers.
Dig deeper: What to include in your sales and marketing plan
The operations section describes the necessary requirements for your business to run smoothly. It’s where you talk about how your business works and what day-to-day operations look like.
Depending on how your business is structured, your operations plan may include elements of the business like:
Some businesses distribute their products and reach their customers through large retailers like Amazon.com, Walmart, Target, and grocery store chains.
These businesses should review how this part of their business works. The plan should discuss the logistics and costs of getting products onto store shelves and any potential hurdles the business may have to overcome.
If your business is much simpler than this, that’s OK. This section of your business plan can be either extremely short or more detailed, depending on the type of business you are building.
For businesses selling services, such as physical therapy or online software, you can use this section to describe the technology you’ll leverage, what goes into your service, and who you will partner with to deliver your services.
Dig Deeper: Learn how to write the operations chapter of your plan
Although it’s not required to complete your business plan, mapping out key business milestones and the metrics can be incredibly useful for measuring your success.
Good milestones clearly lay out the parameters of the task and set expectations for their execution. You’ll want to include:
If you have a budget, you can include projected costs to hit each milestone. You don’t need extensive project planning in this section—just list key milestones you want to hit and when you plan to hit them. This is your overall business roadmap.
Possible milestones might be:
You should also discuss the key numbers you will track to determine your success. Some common metrics worth tracking include:
It’s perfectly fine to start with just a few metrics and grow the number you are tracking over time. You also may find that some metrics simply aren’t relevant to your business and can narrow down what you’re tracking.
Dig Deeper: How to use milestones in your business plan
Investors don’t just look for great ideas—they want to find great teams. Use this chapter to describe your current team and who you need to hire . You should also provide a quick overview of your location and history if you’re already up and running.
Briefly highlight the relevant experiences of each key team member in the company. It’s important to make the case for why yours is the right team to turn an idea into a reality.
Do they have the right industry experience and background? Have members of the team had entrepreneurial successes before?
If you still need to hire key team members, that’s OK. Just note those gaps in this section.
Your company overview should also include a summary of your company’s current business structure . The most common business structures include:
Be sure to provide an overview of how the business is owned as well. Does each business partner own an equal portion of the business? How is ownership divided?
Potential lenders and investors will want to know the structure of the business before they will consider a loan or investment.
Dig Deeper: How to write about your company structure and team
Last, but certainly not least, is your financial plan chapter.
Entrepreneurs often find this section the most daunting. But, business financials for most startups are less complicated than you think, and a business degree is certainly not required to build a solid financial forecast.
A typical financial forecast in a business plan includes the following:
A strong business plan will include a description of assumptions about the future, and potential risks that could impact the financial plan. Including those will be especially important if you’re writing a business plan to pursue a loan or other investment.
Dig Deeper: How to create financial forecasts and budgets
This is the place for additional data, charts, or other information that supports your plan.
Including an appendix can significantly enhance the credibility of your plan by showing readers that you’ve thoroughly considered the details of your business idea, and are backing your ideas up with solid data.
Just remember that the information in the appendix is meant to be supplementary. Your business plan should stand on its own, even if the reader skips this section.
Dig Deeper : What to include in your business plan appendix
Adding a business plan cover page can make your plan, and by extension your business, seem more professional in the eyes of potential investors, lenders, and partners. It serves as the introduction to your document and provides necessary contact information for stakeholders to reference.
Your cover page should be simple and include:
Just remember, the cover page is optional. If you decide to include it, keep it very simple and only spend a short amount of time putting it together.
Dig Deeper: How to create a business plan cover page
Generative AI tools such as ChatGPT can speed up the business plan writing process and help you think through concepts like market segmentation and competition. These tools are especially useful for taking ideas that you provide and converting them into polished text for your business plan.
The best way to use AI for your business plan is to leverage it as a collaborator , not a replacement for human creative thinking and ingenuity.
AI can come up with lots of ideas and act as a brainstorming partner. It’s up to you to filter through those ideas and figure out which ones are realistic enough to resonate with your customers.
There are pros and cons of using AI to help with your business plan . So, spend some time understanding how it can be most helpful before just outsourcing the job to AI.
Learn more: 10 AI prompts you need to write a business plan
To help streamline the business plan writing process, here are a few tips and key questions to answer to make sure you get the most out of your plan and avoid common mistakes .
Knowing why you are writing a business plan will determine your approach to your planning project.
For example: If you are writing a business plan for yourself, or just to use inside your own business , you can probably skip the section about your team and organizational structure.
If you’re raising money, you’ll want to spend more time explaining why you’re looking to raise the funds and exactly how you will use them.
Regardless of how you intend to use your business plan , think about why you are writing and what you’re trying to get out of the process before you begin.
Keep things concise
Probably the most important tip is to keep your business plan short and simple. There are no prizes for long business plans . The longer your plan is, the less likely people are to read it.
So focus on trimming things down to the essentials your readers need to know. Skip the extended, wordy descriptions and instead focus on creating a plan that is easy to read —using bullets and short sentences whenever possible.
Writing a business plan in a vacuum is never a good idea. Sometimes it’s helpful to zoom out and check if your plan makes sense to someone else. You also want to make sure that it’s easy to read and understand.
Don’t wait until your plan is “done” to get a second look. Start sharing your plan early, and find out from readers what questions your plan leaves unanswered. This early review cycle will help you spot shortcomings in your plan and address them quickly, rather than finding out about them right before you present your plan to a lender or investor.
If you need a more detailed review, you may want to explore hiring a professional plan writer to thoroughly examine it.
Knowing what information to include in a business plan is sometimes not quite enough. If you’re struggling to get started or need additional guidance, it may be worth using a business plan template.
There are plenty of great options available (we’ve rounded up our 8 favorites to streamline your search).
But, if you’re looking for a free downloadable business plan template , you can get one right now; download the template used by more than 1 million businesses.
Or, if you just want to see what a completed business plan looks like, check out our library of over 550 free business plan examples .
We even have a growing list of industry business planning guides with tips for what to focus on depending on your business type.
It’s easy to make mistakes when you’re writing your business plan. Some entrepreneurs get sucked into the writing and research process, and don’t focus enough on actually getting their business started.
Here are a few common mistakes and how to avoid them:
Not talking to your customers : This is one of the most common mistakes. It’s easy to assume that your product or service is something that people want. Before you invest too much in your business and too much in the planning process, make sure you talk to your prospective customers and have a good understanding of their needs.
The planning process forces you to think through every aspect of your business and answer questions that you may not have thought of. That’s the real benefit of writing a business plan – the knowledge you gain about your business that you may not have been able to discover otherwise.
With all of this knowledge, you’re well prepared to convert your business plan into a pitch presentation to present your ideas.
A pitch presentation is a summary of your plan, just hitting the highlights and key points. It’s the best way to present your business plan to investors and team members.
Dig Deeper: Learn what key slides should be included in your pitch deck
One of the biggest benefits of planning is that it gives you a tool to manage your business better. With a revenue forecast, expense budget, and projected cash flow, you know your targets and where you are headed.
And yet, nothing ever goes exactly as planned – it’s the nature of business.
That’s where using your plan as a management tool comes in. The key to leveraging it for your business is to review it periodically and compare your forecasts and projections to your actual results.
Start by setting up a regular time to review the plan – a monthly review is a good starting point. During this review, answer questions like:
Now that you see whether you’re meeting your goals or are off track, you can make adjustments and set new targets.
Maybe you’re exceeding your sales goals and should set new, more aggressive goals. In that case, maybe you should also explore more spending or hiring more employees.
Or maybe expenses are rising faster than you projected. If that’s the case, you would need to look at where you can cut costs.
A plan, and a method for comparing your plan to your actual results , is the tool you need to steer your business toward success.
Learn More: How to run a regular plan review
Kickstart your business plan writing with one of our free business plan templates or recommended tools.
Free business plan template
Download a free SBA-approved business plan template built for small businesses and startups.
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One-page plan template
Download a free one-page plan template to write a useful business plan in as little as 30-minutes.
Sample business plan library
Explore over 500 real-world business plan examples from a wide variety of industries.
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How to write a business plan FAQ
What is a business plan?
A document that describes your business , the products and services you sell, and the customers that you sell to. It explains your business strategy, how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.
What are the benefits of a business plan?
A business plan helps you understand where you want to go with your business and what it will take to get there. It reduces your overall risk, helps you uncover your business’s potential, attracts investors, and identifies areas for growth.
Having a business plan ultimately makes you more confident as a business owner and more likely to succeed for a longer period of time.
What are the 7 steps of a business plan?
The seven steps to writing a business plan include:
What are the 5 most common business plan mistakes?
There are plenty of mistakes that can be made when writing a business plan. However, these are the 5 most common that you should do your best to avoid:
What questions should be answered in a business plan?
Writing a business plan is all about asking yourself questions about your business and being able to answer them through the planning process. You’ll likely be asking dozens and dozens of questions for each section of your plan.
However, these are the key questions you should ask and answer with your business plan:
How long should a business plan be?
The length of your business plan fully depends on what you intend to do with it. From the SBA and traditional lender point of view, a business plan needs to be whatever length necessary to fully explain your business. This means that you prove the viability of your business, show that you understand the market, and have a detailed strategy in place.
If you intend to use your business plan for internal management purposes, you don’t necessarily need a full 25-50 page business plan. Instead, you can start with a one-page plan to get all of the necessary information in place.
What are the different types of business plans?
While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. Here are a few common business plan types worth considering.
Traditional business plan: The tried-and-true traditional business plan is a formal document meant to be used when applying for funding or pitching to investors. This type of business plan follows the outline above and can be anywhere from 10-50 pages depending on the amount of detail included, the complexity of your business, and what you include in your appendix.
Business model canvas: The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea.
One-page business plan: This format is a simplified version of the traditional plan that focuses on the core aspects of your business. You’ll typically stick with bullet points and single sentences. It’s most useful for those exploring ideas, needing to validate their business model, or who need an internal plan to help them run and manage their business.
Lean Plan: The Lean Plan is less of a specific document type and more of a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, test, review, refine, and take action based on performance. It’s faster, keeps your plan concise, and ensures that your plan is always up-to-date.
What’s the difference between a business plan and a strategic plan?
A business plan covers the “who” and “what” of your business. It explains what your business is doing right now and how it functions. The strategic plan explores long-term goals and explains “how” the business will get there. It encourages you to look more intently toward the future and how you will achieve your vision.
However, when approached correctly, your business plan can actually function as a strategic plan as well. If kept lean, you can define your business, outline strategic steps, and track ongoing operations all with a single plan.
Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.
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FILE - Intuit TurboTax packages are seen on display in a Costco Warehouse, Jan. 26, 2023, in Pittsburgh. Tax preparation and financial software company Intuit announced an AI-focused reorganization plan Wednesday, July 10, 2024, that includes laying off about 10% of its workforce. (AP Photo/Gene J. Puskar, File)
WASHINGTON (AP) — Tax preparation and financial software company Intuit announced an AI-focused reorganization plan Wednesday that includes laying off about 10% of its workforce.
The company behind QuickBooks and TurboTax said it was laying off 1,800 employees, but that it expects to hire at least that many in fiscal 2025 as it accelerates its focus on incorporating artificial intelligence into its products and services.
In an email to employees, CEO Sasan Goodarzi said more than 1,000 of the layoffs were employees that were not meeting the company’s elevated expectations.
Another 300 positions are being eliminated “to streamline work and reallocate resources toward key growth areas,” the email said.
Mountain View, California-based Intuit will also close offices in Boise, Idaho and Edmonton in Alberta, Canada where more than 250 employees work. Some of those workers will transfer to new locations, the company said.
“The era of AI is one of the most significant technology shifts of our lifetime,” Goodarzi said in the opening of his email to staff. ”Companies that aren’t prepared to take advantage of this AI revolution will fall behind and, over time, will no longer exist.”
As for severance, Intuit said that all its laid off U.S. employees will get a minimum of 16 weeks of pay, plus two additional weeks for every year of service and “at least” six months of health insurance coverage. U.S. employees received 60 days notice of their termination, with a last day of Sept. 9.
In a regulatory filing, Intuit estimated the reorganization plan will incur between $250 million and $260 million in charges, mostly coming in its fiscal fourth quarter ending July 31.
Intuit shares fell 3.6% in morning trading to $626.29 per share.
SpaceX employees are working on designs for a Martian city, including dome habitats and spacesuits, and researching whether humans can procreate off Earth. Mr. Musk has volunteered his sperm.
Credit... Gica Tam
Supported by
By Kirsten Grind
Reporting from San Francisco
For more than two decades, Elon Musk has focused SpaceX , his rocket company, on his lifelong goal of reaching Mars.
Over the last year, he has also ramped up work on what will happen if he gets there.
Mr. Musk, 53, has directed SpaceX employees to drill into the design and details of a Martian city, according to five people with knowledge of the efforts and documents viewed by The New York Times. One team is drawing up plans for small dome habitats, including the materials that could be used to build them. Another is working on spacesuits to combat Mars’s hostile environment, while a medical team is researching whether humans can have children there. Mr. Musk has volunteered his sperm to help seed a colony, two people familiar with his comments said.
The initiatives, which are in their infancy, are a shift toward more concrete planning for life on Mars as Mr. Musk’s timeline has hastened. While he said in 2016 that it would take 40 to 100 years to have a self-sustaining civilization on the planet, Mr. Musk told SpaceX employees in April that he now expects one million people to be living there in about 20 years.
“There’s high urgency to making life multi-planetary,” he said, according to a publicly posted video of his remarks. “We’ve got to do it while civilization is so strong.”
Mr. Musk has long tried to defy the impossible and has often managed to beat tough odds. But his vision for life on Mars takes his seemingly limitless ambitions to their most extreme — and some might say absurdist — point. No one has ever set foot on the planet. NASA doesn’t expect to land humans on Mars until the 2040s. And if people get there, they will be greeted by a barren terrain, icy temperatures, dust storms, and air that is impossible to breathe.
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** CYIE on Thursday said it approved setting up separate unit for end to end turnkey ASIC semiconductor business
** More than 1 mln shares change hands, 2.6x the 30-day avg
** Average analyst rating on stock is "Buy"; median PT at 2,210 rupees, a 16% premium to day's high - LSEG data
** Stock last up 4.2%, set to snap 4 straight weeks of losses
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Tax preparation and financial software company Intuit announced an AI-focused reorganization plan Wednesday that includes laying off about 10% of its workforce.
SpaceX employees are working on designs for a Martian city, including dome habitats and spacesuits, and researching whether humans can procreate off Earth. Mr. Musk has volunteered his sperm.
International Business Machines Corp.'s proposed $6.4 billion takeover of software maker HashiCorp Inc. will undergo an in-depth antitrust review by the US Federal Trade Commission.
TradingView India. ** Shares of technology solutions provider Cyient NSE:CYIENT rise as much as 7.4% at 1,905 rupees** CYIE on Thursday said it approved setting up separate unit for end to end turnkey ASIC semiconductor business** More than 1 mln shares change hands, 2.6x the 30-day avg** Average analyst rating on st…