3.2 what goes into a business plan multiple choice

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Chapter 3.2-1-What goes into a Business ...

11th - 12th grade.

Chapter 3.2-1-What goes into a Business Plan

21 questions

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The marketing section of your business plan should describe the location of your business.

Your business plan should describe the location of your business because

location is often a critical factor in a business's success

all of these

every industry has an ideal type of location

different forms of ownership have different types of locations

The marketing section of your plan explains

how you plan to enter the market

who your prospective customers are

your advantages over the competition

In the financial management section, a new business must include

projected financial statements

copies of all rental agreements

current financial statements

Every new business should have a business plan, but not all business plans are alike.

Choose all that apply: The following parts, or elements, of a business plan should be included in the main body of the business plan:

Introduction

Financial Management

Concluding statement

Choose all that apply. The following information should be should be included in the introduction section:

A detailed description of the nature of the business and its goals

The ownership of the business and legal structure

The skills and experience you bring to the business

The advantages you and your business have over your competition

Describing how you came up with your idea does not help lenders, investors, and others understand what your business is about.

Stating goals will help provide you with direction and focus for your business.

Select all that apply: Which of the following are legal structures that you could set up for your business?

Sole proprietorship

partnership

corporation

The ownership and legal structure of your business is important because each legal form of business has an effect on how the business works and makes profits.

Select all that apply: Which of the following are advantages you would want to mention in the Introduction section of your business plan?

Performance

Reliability

When describing your products or services in the marketing section you should highlight any unique features, and explain the benefits that customers will receive by purchasing from your business.

You do not need to include the industry in which you will operate in your marketing section.

Select all that apply: The financial management section of your business plan includes the following:

Identification of risk

Financial statements

Funding requests and return on investment

location of the business

exit strategy

Prospective lenders and investors do not want to know what risks your business faces and how you plan to deal with them.

A financial statement based on projected revenues and expenses is call a

Pro Forma Financial Statement

Look Ahead Financial Statement

Balance Sheet

Income Statement

In this section of your business plan you should explain how the business will be managed on a day-to-day basis and discuss hiring and personnel procedures.

Concluding Statement

An exit strategy will be found in which of the following sections of the business plan?

An exit strategy is the way an entrepreneur intends to extract his or her money from a business after it is operating successfully.

Select all that apply: In the concluding statement section of the business plan,

You should summarize the goals and objectives you have for your business

You should emphasize your commitment to the success of the business

You should explain the location and competition your business will face

You should include pro forma financial statements

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

May 24, 2021

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

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

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

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

What Is a Business Plan?

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

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

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

Get a Business Idea

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

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

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

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

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

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

Conduct Market Analysis

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

Product and Service Demand

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

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

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

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

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

Identify Demographics of Target Market

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

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

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

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

How to Write a Business Plan

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

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

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

SWOT Analysis

• Competitor Data
• Competitive Analysis
• Marketing Expenses Strategy 

Pricing Strategy

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

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

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

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

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

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

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

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

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

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

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

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

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

Mike told us,

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

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

It consists of three basic parts:

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

Example of an informal executive summary 

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

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

What should I include in an executive summary for investors?

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

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

Successful business plan examples

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

Here’s the interview with the owner of Urbanity:

When to write an executive summary?

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

What mistakes do people make when writing an executive summary?

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

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

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

How to Write a Business Plan Step 4. Company Description

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

• Mission statement
• Philosophy and vision
• Company goals

Target market

• Legal structure

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

Mission Statement

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

Company Philosophy and Vision

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

What makes your company different?

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

Examples of core values

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

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

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

What is a vision statement?

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

Example vision statements

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

A world without Alzheimer’s Disease and other dementia.

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

Business Goals

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

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

How far in advance should a business plan?

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

Example of great business goals

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

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

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

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

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

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

Industry resources

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

• Trade Associations
• Federal Reserve
• Bureau of Labor Statistics

Legal Structure

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

• Sole proprietorships
• Limited Liability Companies (LLC)

Partnerships

Corporations.

• Franchises.

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

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

Sole Proprietorship

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

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

Limited Liability Company (LLC)

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

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

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

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

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

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

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

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

Questions to answer about your products and services

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

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

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

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

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

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

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

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

SWOT Examples

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

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

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

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

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

Include Competitor Data in Your Business Plan

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

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

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

Marketing Strategy

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

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

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

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

Advertising Strategy

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

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

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

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

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

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

Some common pricing strategies are:

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

HubSpot has a great calculator and blog on pricing strategies.

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

Distribution Plan

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

Supply Chain Examples

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

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

Examples of Supply Chains

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

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

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

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

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

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

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

Quality Control

• Legal environment

Let’s look at each for some insight.

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

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

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

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

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

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

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

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

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

Legal Environment

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

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

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

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

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

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

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

How to Write a Business Plan Step 8. Financial Statements 

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

Provide All Financial Income from an Existing Business

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

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

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

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

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

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

Financial Projections For A Startup Business Plan

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

Mike gave the following advice in his interview:

Financial Forecasting Mistakes

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Ways to get funding for a small business

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

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

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

How funding will be used

When asking for business financing make sure to include:

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

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

How to Write a Business Plan Resources

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

• Sample plan

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

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

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

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

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

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

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

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

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How to Start a Clothing Brand (and Make 7 Figures a Year)

Have you ever wondered how to start a clothing brand? Starting a clothing line business only requires a little investment and some technical skills. You can start a clothing business and make a great living. We’ll show you how.

[su_note note_color="#dbeafc"] Read our guide from start to finish or click any of the links below to jump straight to the section you need to know about right now.

Case Study: Portland Gear

Learn design skills, create a clothing brand business plan, pay attention to fashion trends, create a brand identity, market your brand, source materials, curate a small clothing line, package & distribute your collection, promote your collection, sell your clothing brand, keep growing your clothing business.

• Go Start Your Own Clothing Brand [/su_note]

Marcus Harvey turned his love for Portland, Oregon, into a hometown clothing brand called Portland Gear . He started screen printing in college to make some extra money but stopped to take on his first job.

On Thanksgiving of 2014, he designed two shirts, posted them on Instagram, and sold $5K worth on the first day. Six years later, Portland Gear is making over $100K a month.

Marcus took the time to explain how to start a clothing brand. He gave us a ton of great advice about how to start your own clothing brand that we’ll include while providing a step-by-step guide to start a clothing brand.

How to Start a Clothing Brand

Starting a clothing brand is part art and part business. You’ll want to follow this 11-step process to start a clothing line.

• Learn design skills.
• Create a clothing brand business plan.
• Pay attention to fashion trends.
• Create a brand identity.
• Market your brand.
• Source materials.
• Develop your collection.
• Package and distribute your collection.
• Promote your collection.
• Sell your clothing brand.
• Keep growing your clothing brand.

Get ready to learn how to make your own clothing brand.

You don’t have to attend school to succeed in the fashion business. You can learn almost everything you need to about fashion brands online. While you can start a clothing brand without a formal education, many people find they benefit from the structured learning environment that comes with enrolling in some official courses.

Attending live in-person courses comes with access to networking opportunities, insights from an experienced fashion designer, and specialized resources and tools.

Educational institutions around the country and the world provide fashion design and small business programs that teach their students how to start successful clothing lines. Renowned schools like Parsons in New York and Central Saint Martins in the UK are globally recognized for their exceptional fashion education.

For those with more determination than resources or time, there are online courses from successful clothing line professionals including Marc Jacobs’ MasterClass and Maker’s Row Academy .

You can even use Udemy for accessible and flexible learning opportunities.

A clothing brand business owner may need skills in the following:

• Production and printing

Let’s dig deeper into each of these to see how they impact a clothing brand.

Clothing Design Skills

Every fashion brand needs a designer. This is the person who takes the idea and makes it a reality.

A fashion designer will typically include several steps in the design process. The steps to design your own clothing brand include:

• Draw design using paper or digital software, like Tailornova .
• Have a pattern maker cut the patterns for the design.
• Build a prototype.
• Make alterations.
• Create a tech pack (design specifications you give to a clothing manufacturer).
• Source the materials and begin manufacturing.

This process is called product development and is used consistently in the fashion business. Managing product development is one of the keys to a successful clothing company. Without a controlled design and development process, a company may fail or tarnish its brand identity.

I’m not going to go into all the details of each as these are highly technical fields, but there are a ton of great resources on how to design clothes. Here are some useful resources to consider:

• Best fashion design schools
• Free online design classes
• Best fashion design software
• Best print-on-demand companies

Pro Tip: I have a client who is in the process of starting their own clothing brand and have personally used Printful to help clients meet their print-on-demand needs. Their software helps you with all steps involved in creating clothing designs, making it easier to start building your fashion brand company and selling your designs to potential customers through an online store.

The next skill you need to develop is familiarity with the technology aspect of the industry. Paying a developer to help start your eCommerce store can be expensive. I’ve seen people spend $25K and not get what they want. It’s important to understand the technology aspect before you start.

Technology that will need to be used includes:

• An eCommerce platform (Find Investopedia’s review of the best ones here .)
• Payment processors
• Editing software
• Marketing software

Decisions around what tech you’ll use are crucial when trying to figure out how to start a clothing brand because the costs are much lower to run an eCommerce store with production from a print-on-demand company that handles the printing and shipping of the items you design than sourcing our own designs from a manufacturer.

Most tech companies offer free or low-cost tutorials on how to use their software. Make sure to use them. They were built to help you make the most of their offerings.

Production and Printing Skills

Your clothing business will need production, which can be done through a manufacturing partner, or you can print your own t-shirts and other apparel products. If you are going to take on the production, you’ll need to learn how to use the different types of machines.

Some techniques you might need to learn include:

• Screen printing
• Direct to garment
• Transfer printing
• Cad cut vinyl

The best way to learn these techniques is hands-on, which means purchasing your own machines or finding a manufacturing partner who will teach you. I’d like to remind you that drop-shipping companies reduce much of this workload. Once you’ve built the business up, learning to do it can save you some money, but production costs quickly increase the upfront costs to start a clothing brand.

Business Skills

Business skills encompass a wide range of essential tasks including accounting, pricing, shipping, and managing inventory. To educate yourself on all of these would require a lifetime of learning. We’ve provided a list of useful resources for leveling up your fashion business skills.

• Accounting: Udemy , EDX
• Pricing: Coursera , Udemy
• Shipping: Shopify , BigCommerce
• Inventory Management: TradeGecko , Unleashed

Pro Tip: You can also use YouTube videos to learn almost anything these days.

Starting a clothing brand has many of the same considerations as any new small business, including establishing how much money you’ll need, when to get financing, and planning for legal, financial, marketing, production, and distribution of the clothing—all of which we recommend including in your business plan.

Marcus told us,

[su_quote] We started by setting up at Portland events in our old Volkswagen van and expanded from there. [/su_quote]

Meanwhile, the owner of Urbanity started his successful clothing boutique by writing a 100-page business plan and getting a small business loan at 22.

Fashion Brand Business Models

The most important consideration when you start a clothing brand is how you’ll produce your clothes brand. These are the main ways that designer brands produce their clothing:

• Hand-produced clothing: You can create your entire clothing line by hand. This is usually something that designers will do when they are designing prototypes or one-off pieces. It’s time-consuming and only suitable for extremely small batches, but great for creating the first piece of custom-tailored clothing.
• Bulk manufacturing: Bulk manufacturing is a necessity if you are selling your clothing in major retailers. Minimum order quantities apply for bulk orders. The equipment is costly, so you’ll likely work with a manufacturing partner. This is one of the least costly per item but highest upfront cost business models for clothing production.
• Print-on-demand: You can avoid handmaking many products and having to manage inventory with print-on-demand. You won’t get as good of deals as you will with bulk manufacturing (and may have less design control and fewer options), but you’ll be able to produce more pieces than you would by handmaking products. Production doesn’t start until the product is ordered.
• Dropshipping: With dropshipping , you don’t have to worry about managing inventory or printing. You simply list the item on your website and when someone places an order, it is sent directly from the manufacturer to the customer.

Now that you know different clothing brand business models, let’s discuss how much creating a clothing brand costs.

How Much Does It Cost to Start a Clothing Brand?

Once you’ve come up with some ideas, clothing brand costs need to be estimated. Most clothing line owners self-fund, but that may be impractical if you are manufacturing in bulk. You’ll probably want a couple thousand dollars to start a clothing brand. Still, minimum order quantities from some businesses can mean buying $30K+ in inventory, which will dramatically increase your costs.

If you’re wondering how to start your own brand of clothing, you need to pay attention to trends in the fashion industry. At the same time, you have to maintain a consistent brand identity.

Understanding the seasonal and annual trends in clothing design will help you stay relevant. Depending on the time it takes to create a line, manufacture it, and promote it, you may need to think one to three seasons ahead to stay on track with seasonal changes. There are tools to help you predict trends , too.

Alternatively, you can try to find evergreen designs that people are always buying, like plaid, which can be traced back to as far as the eighth century B.C.

Next, we’ll discuss how to create a clothing brand identity.

Making a clothing brand is more than a logo and your name. It’s about something bigger than a collection of clothing items. It’s about your values, how you’ll make lives better, your standards, your lifestyle, the colors, fonts, and fabrics you use, and more.

Once you’ve defined what makes your clothing brand unique, create a brand guide that will help you make decisions as you launch and grow the brand.

Pro Tip: Need some inspiration as you make clothing brand decisions? Check out our handpicked boutique name ideas for 2024 .

Clothing Brand Name Ideas

Your business name is often the first thing your target market will see. It will communicate what the brand is all about and you’ll use it to make your logo, too. There are a ton of ways to name a clothing business. Some fashion designers use names that:

• Pay Homage to the Founder: Think Ralph Lauren or Louis Vuitton.
• Describe Clothing Items: CryptoLids creates hats for crypto and web3 communities.
• Show a Passion: Portland Gear celebrates the culture of Portland in its fashion line.

Your business name should be one that makes it easy to convey your brand story. Unless you’re already an established brand, you’ll want every advantage you can get when communicating with your target audience.

Try out our clothing brand name generator to find inspiration . Once you find a clothing brand name you like, just click on it to find out if the domain name is available. Learn more about naming a clothing brand .

Financial Management

A crucial portion of successfully starting a fashion business is managing its financial aspects. Marcus emphasized the benefits of starting small:

[su_quote] You get quantity discounts the more of the same item you buy, so it’s better to start small than have 100 different products. [/su_quote]

He typically aims for a 65% margin on the apparel.

You may need some extra funds to start your clothing brand. To find banks that work with small businesses, use this resource .

Let’s look at some tricks you can use to help your clothing brand become profitable.

Get a Business Bank Account

Almost every bank offers business checking and savings accounts. Which one will work best for you depends on how you do business.

If all business is by card and you don’t need a branch nearby, online banks typically pay better interest, but going with the big players like Chase or Wells Fargo means you get a ton of support. Here are some of the most highly recommended business banking accounts:

• Chase Business Complete Banking – Great new account bonuses.
• U.S. Bank Silver Banking Checking – Excellent for use with eCommerce and PayPal transactions because you can send weekly deposits to avoid some of their fees.
• Axos Interest Checking – My personal favorite! Offers higher interest payments for lower balances. I love that they hook up the little guy!
• Wells Fargo – I was with Wells Fargo for the better part of 15 years, but when I had some problems a few years back, it caused me a real headache because the nearest branch was two hours away and I couldn’t handle it by phone. Despite that, they normally have great customer service and seem to have gotten past all that.

Pro Tip: Investopedia gives a more thorough review of each of these accounts. Ultimately, the interest offered by online banks tends to be significant and the absence of a bank building won’t be a problem unless you need to deposit cash.

Payment Processors

The last time I took the time to review payment processors, they all seem to be basically the same unless you are doing hundreds of thousands of transactions. That being said, there are some new players on the market due to the changes in the financial markets brought on by cryptocurrency. The primary players in this field are:

• PayPal – We all know the company and use it frequently, but if you’ve never used it for business, be careful. They show a ton of love for customers, but not as much toward businesses. When I started my first business, they thought we were making money too quickly and placed a 30-day hold on withdrawals. It was a pain. Once I got past that, it’s all good. They offer third-party financing, too.
• Square and Cashapp – Square has a ton of useful features and is constantly expanding its ecosystem. It’s a reasonable competitor to PayPal. I recommend you consider offering both.
• Authorize.Net – Visa-owned payment gateway. If you go through a bank for your payment processor, this is typically who they use. The banks tend to charge a higher fee than going directly to them.
• Crypto.Com – Lower fees than traditional processors, but still hasn’t perfected the UI or UX experience. If you work with a bunch of cryptocurrency holders, you might want to have it available. I’ve personally added my own on my site. This may be the future of tech, but it’s still in its infancy.

Budget, Budget, Budget!

A budget is the most important tool you can use in business. Without it, your clothing brand might not make it through the first few years.

Marcus encourages you to “know your margins, reinvest in your business, and grow responsibly.”

Consider Your Many Funding Options

Starting a clothing brand doesn’t cost a fortune. The initial investment in owning a clothing brand can be less than $1,000.

Marcus suggests beginners use:

• A print-on-demand company
• A social media marketing budget of less than $500 a month

Common funding paths include:

• Personal funds
• Loans from family or friends
• Business partner(s)
• Government programs

The Small Business Administration (SBA) offers free courses on funding programs . For info on using personal funds to start a business, check out this article from The Hartford.

Alternative sources of funding include:

• Crowdfunding
• Credit cards
• Home equity loans
• Rollover for business startups (ROBS)

Click on the link to find a list of the best offerings in each group.

Develop a Pricing Structure

How you price your clothing brand will impact how people view it. If your prices are too high, they’ll go elsewhere. Too low, and you’ll lose money. Based on the rules of thumb presented by Marcus in his interview,

[su_quote] Use a 65% markup, or half that if wholesale. T-shirts are typically $28, hats $35, and hoodies just under $70. [/su_quote]

Pricing Communicates Value

Shops will often sell their products or services for a lower price to bring in new customers. Be careful doing this. If you sell your clothing for a discount and they tell others, you might have to sell more clothing for the same price. People love a good deal! Just make sure it is sustainable for your clothing brand, or the “expiration date” is clear.

Marcus told us, [su_quote] You can go buy bargain basement t-shirts for $10, but I’m selling a brand, not clothing. I feel like $25 is really where people have to think about buying a t-shirt. If they have to think about buying it, they are more likely to wear it. [/su_quote]

Increase Prices Every Year

Inflation occurs every year. To keep your business running, raise your prices 5% per year. It gives you room to increase wages and to make some extra money. Makes sense, right?

Sales Taxes

All but five states and some cities (or counties) require sales tax. You can find a guide on applying for sales tax on TaxJar . After you register to pay sales taxes, you will need to keep track of the sales to pay them according to state laws.

Pro Tip: I highly recommend speaking with an accountant who specializes in taxes to help you comply with your business’s unique needs.

You’ll need some insurance depending on what kind of a business you are running. For example, you’ll need unemployment insurance and workers compensation if you have employees.

You may also want a general liability policy and cybersecurity insurance to protect against unforeseen events that could cause your clothing brand business substantial losses.

• Unemployment Insurance: Unemployment insurance (UI) protects employees from entirely losing income when they lose their jobs. It is paid for on both the federal and state level. The federal unemployment insurance is driven by a 6% tax on the first $7,000 of each employee’s income, a total of $420 per year per employee. Your state taxes can reduce the federal portion down to $42 per year per employee, but each state has different requirements. You can find a full list of agencies that deal with UI on nolo.com .
• Workers Compensation: Workers compensation is for when people are injured on the job. There are both federal and state requirements, which you can review on this Department of Labor webpage . The policies protect against excessive costs when an employee is injured through acceptable business practices.
• General Liability Policy: A general liability policy is not required, but it is highly advised if people other than employees will be at your physical location. It protects against lawsuits and other occurrences that may occur. Contact an insurance agent to get a quote.
• Cybersecurity Insurance: Cybersecurity insurance will protect your clothing brand against online store hacks. Given the average data breach is millions of dollars, this is highly recommended if participating in any kind of eCommerce.

You’re ready to start a clothing brand. You have clothes to sell, but no clients! How are you going to let people know about your clothing items?

Marketing is crucial for clothing businesses.

From a marketing standpoint, Marcus uses several strategies that he would suggest.

• Only sell what you love. Owning a business is hard work. If you don’t believe in it, it will wear you out.
• Be active within your community. Do popup shops where your target market is.
• Keep your advertising budget low—typically less than $500 a month.
• Have certain dates when you have sales and be prepared for them.
• Invest in photography!

Marketing is about going where your target audience is to help them become aware of your clothing brand and turning awareness into purchasing. Marketing can be done both online and through other channels.

You’ll need to be familiar with the largest three places where you can reach your clothing brand’s customers:

• Facebook and Instagram

Each of these has a ton of resources to educate people on how to reach your target market with their products for businesses. Make sure to familiarize yourself with them; otherwise, you’ll be operating in the dark and wasting a lot of money.

Pro Tip: Portland Gear only spends about $500 a month on advertising because they already had a built-in following from their Portland Instagram page. They also use a super cool 1973 VW Westfalia to do pop-up shops around Portland, which we’ll discuss in a bit...

When you start a clothing company, how you source materials for your fashion brand will create different challenges based on the business model you choose.

With a print-on-demand model, you’ll be constrained by the materials and manufacturing capabilities of each of the providers. Meanwhile, with handmade clothing and limited runs, you probably want to focus on ordering materials from online stores located in the U.S. or local craft shops where you can see and feel the materials before you buy them.

When your business model involves creating larger batches, it gets far more complicated because the materials have shipping costs that are incurred when they are shipped to the clothing manufacturer facility, then the manufactured product has to be shipped to you (or your clients). Every time you have shipping during the manufacturing process, there is a potential for the business model to experience additional costs in the form of tariffs and mileage charges.

True Story: I knew a clothing business owner who ordered a single roll of fabric from China as an expedited order. The shipping ended up costing almost 20 times the fabric cost and guaranteed that the batch he was designing would be a loss. It was a tough mistake to make, especially before the company made any revenue. Sign up for our UpFlip Mentorship program to get advice and avoid costly mistakes.

Starting a clothing brand is a lot of work.

I reached out to the friend of mine who owns Cryptolids.com , which has helped 26 web3 companies launch their clothing business this year. He told us:

[su_quote] I spend about 40 to 60 hours on a full store build including all front end and back end creation as well as mocking up merch for up to 50 t-shirts, hats, and other products. [/su_quote]

He does this every day, so he is super fast at designing a t-shirt or hat design and adding it to an online store. My takeaway: Expect to spend at least two to three hours per product until you get used to all the design work for your own clothing brand.

Custom designs that don’t use standardized t-shirts and hats could take even longer. Project Runway contestants, for example, normally spend one to two days creating each piece on the reality TV show, while a discussion about fashion industry design times reflects varying inputs and revealed that:

[su_quote] This whole process takes about 4 months. 4 weeks for research and sourcing. 4 weeks for cutting and toiles. 8 weeks for finalising, material creation, accessories et cetera [/su_quote]

Once you’ve created your own clothing line, you’ll need to decide how to package each clothing item. Like designing clothes, private label packaging contributes to how your clothing brand idea will be received.

If you’re selling in an online store, you might want a box that showcases your brand and offers coupons to encourage customer loyalty, while a retail store in the clothing industry might want paper or plastic bags. Make sure to use recycled materials if you’re trying to be eco-friendly. On the other hand, wholesale clothing suppliers might go for a plain box with a packing slip inside.

There are a number of ways to promote your collection when starting a clothing brand.

Consignment

Create an online store.

• Retail Locations

We’ll discuss how each of these can help you turn your clothing company into a successful fashion brand.

Many retailers allow a new business to sell their products in their retail store if you offer consignment. Unfortunately, consignment means you have to provide your clothing line to the retailer and only get paid when they sell the item.

When you start a clothing brand, consignment makes it easier to get your entire clothing line into a store. This business model can be really beneficial in the fashion world because of the risk-free nature to the retailer.

When you wholesale your clothing brand, retailers will buy your clothing designs in bulk. Retailers normally won’t want to do this when you start a clothing brand because it’s more costly. Start with consignment and work your way up to wholesaling.

Pro Tip: When you’re approaching a store, make a point to be respectful of their time. A good sales strategy for clothing brands is to provide a card or catalog and ask to schedule a meeting in the future to give the business owner or manager time to review what you do and prepare for a conversation.

Your clothing business needs to be capable of working as an online business idea before you launch your own online store. Your business plan should also include information about handling shipping and fulfillment. You’ll need to consider aspects like online customer service, the impact on your production model or clothing manufacturer, and your packaging.

As long as you know how your clothing line will handle these things, your existing clothing brand can use your website as online marketing and a way to sell your products directly to customers. That means you’ll be able to get the full retail price for your clothing brand without having to share the profits with other retailers or eCommerce platforms like Amazon, Etsy, or eBay.

There are plenty of web builders that you can explore if you’re wondering how to start a clothing brand online. When you are choosing which ones to use you’ll want to consider which web templates work best for your style of ecommerce and which will convey your brand messaging best. Learn how to build a website here .

Pro Tip: I personally prefer Shopify . You can start with a free clothing brand template like Boundless . You might also want an app that makes it easier for people to understand how your clothing line fits. You can use other online marketplaces directly from Shopify, too, which can magnify your clothing brand results.

Important Website Pages

Some of the most important web pages for the fashion industry include your home page, collections, product pages, about page, contact page, and FAQ. Make sure to use your brand guide when creating these pages to keep your website in line with your clothing line branding.

Great Photos

A clothing line benefits tremendously from great pictures. Have you ever seen a picture of a product and then when you receive it, the color is completely different? Your target customers probably won’t be happy, which means they might return the product. They might even tell potential customers not to buy from you. 

Finding a professional photographer who captures true-to-color lifestyle images with clothing brand models can really convey a brand image better than using stock photos or cell phone pictures. It may seem costly, but it can pay off over the long run.

Every business model struggles to market its services until it cracks the code of what works for them, but some strategies work if you take the time to get good at them. Some of the marketing strategies you should consider for your clothing brand include:

• Content marketing: Sharing photos, optimized video, and blog posts helps drive traffic to your brand.
• Email marketing: Start building an email list as soon as you start working on your clothing business. You can share updates about working on the collection to help people get excited about the clothing line and do giveaways to incentivize emails.
• Lend clothing: Beauty businesses use clothes during photo shoots and will pin your clothing brand when they share the pics if they use your clothes.
• Influencer marketing: Working with TikTok, YouTube, and Instagram influencers can help get your clothing line in front of lots of people.
• Loyalty program: Reward loyal customers and encourage them to refer potential customers.
• Collaborations: Find other brands with similar values to collaborate with for crossbranding opportunities.
• Search engine optimization (SEO): Optimize your high-performing website pages with SEO to increase traffic to your fashion brand store.
• Social media advertising: Use paid ads, promoted posts, and organic content.

Clothing brands can be sold through a variety of sales channels. Some of the most common for a new business include:

• Online marketplaces
• Your own retail store
• Other retailers
• Popup shops
• Partner brands

Online Marketplaces

Selling clothes can be done through various sites. The top places to list your clothing brand include:

• Facebook Marketplace

Pro Tip: Shopify connects to most of these sales channels easily, which makes it so clothing companies can sell their wear on multiple sites at once. Make sure to look at the percentage of sales that each one takes to make sure you set the retail price of your clothing line to cover any commissions that they collect.

Your Own Retail Store

Creating clothing brand stores is a great way to make your brand more accessible, but it is expensive. You should probably assume you’ll need at least $100,000 to open a clothing store, and there are a lot of considerations.

[su_quote] One of the things we’ve done to keep the symmetry of the business is we keep the warehouse, office, and store real close together so everyone can be on the same page. [/su_quote]

Marcus discussed his experiences with opening his first shop in the interview about how to make a clothing brand below.

To find spaces to rent in your area, contact a local commercial real estate agent. You can search for them by your area here .

Other Retail Stores

As we discussed earlier, there are a few ways to get your fashion brand into other clothing stores, including consignment and wholesaling. Consignment pays when the clothing is sold, while wholesaling pays before the clothing is sold or on a Net-30, net-60 or Net-90 schedule.

Popup Shops

Popup shops are fun marketing tools to meet your customers where they gather. These are great for brand identity because they help associate the business with another place people already like.

Common places where popup shops are allowed include:

• Music festivals
• Flea markets
• Sporting events
• Coffee shops

You’ll have to talk to the owner or manager of the location you have your eye on to get their permission and sort out details, but most are normally agreeable if you meet their conditions. Your municipality may also have laws governing pop-up shops.

With popup shops, spaces are typically limited to no more than 10’x10’ or 20’x20’, and the location will normally want to be able to see what your setup will look like beforehand.

Pro Tip: This SBA guide on business laws is a good reference that you can skim now and dig into as sales opportunities unfold.

Partner Brands

Providing your clothing line to partner brands is a great strategy. You can make it even more meaningful by offering combined deals where the customer gets a discount if they buy from both brands together. This can be done both in-store and online.

As you achieve milestones in your business plan, you’ll want to look for new ways to grow your own brand and provide valuable services for your target audience. You might open another store, take control of the manufacturing process from your existing clothing manufacturer, wholesale clothing, or provide consulting services to other prospective designers.

There are so many ways how to make your own brand of clothing successful. Read on to learn more about common strategies.

Keep Inventory

Carrying inventory is both a blessing and a curse for a fashion startup. You’ll have to pay more to create clothing brand inventory, but the per-unit pricing usually is less than using print-on-demand. That means when you sell your private label products to customers at a higher price point, your cost of goods sold leaves you with more gross profit.

A strictly online store can get away with using print-on-demand or dropshipping, but fashion brands will need at least some materials and clothing items when they sell in person. That means you’ll need product displays, registers, and mannequins.

Marcus started Portland Gear with just two designs and 1,000 shirts, which made it easy to sell out the first day.

Startingaclothingbrand.com offers a list of manufacturers by location and type of clothing. It’s a great place to start when looking for clothing manufacturers.

Take Over From the Manufacturing Facility

You can get used printing machines and product displays at huge discounts if you buy them used. You can find printers and product displays through most on-brand markets, pawnshops, going-out-of-business sales, and other places. Consider buying an existing business with the printers included in the purchase price.

Pro Tip: Learn more about valuing an existing business in our guide to buying businesses .

Taking over manufacturing may cost more upfront, but a business model in which you produce your existing or new clothing brand yourself can increase your margins and mean a successful business that’s that much more in your control. 

Hire Employees

Marcus emphasized the importance of hiring the right people when starting a clothing brand.

[su_quote] You need to hire people that fit the brand story. [/su_quote]

A clothing store that’s open to the public might need employees. Depending on your financial position when starting, you can work all the hours yourself or hire right away.

Even if you run a completely online clothing store, you might scale to a point where you need help with fulfilling orders, marketing efforts, sales strategy, and managing social media accounts so you can go from making your new business work to really taking on the fashion world.

Go Start Your Own Clothing Brand

Now that you know how to start a brand of clothing, take the next step. Start your own!

The truth is, all it takes is a great idea, some skills in design, and a good marketing strategy to get started. As Marcus told us:

[su_quote] If you like it, there are other people who will like it. You just have to find them. [/su_quote]

Have you started a clothing brand online, consigned your designs, or opened a retail shop? Or do you know someone who has? We’d love to hear about your brand in the comments below!

23 Best Business Books to Read in 2024!

Are you a small business owner looking for the best business books to help you solve a business problem? There are tons of books on business, entrepreneurship, marketing, accounting, and other topics. But it’s hard to filter through the noise to find the best business books.

Our co-founder and CEO, Serg Belous, made the mistake of believing he could just figure it out as he went. Five years later, he realized that there was information he just didn’t have as a business owner. That’s why he started researching everything he could.

In his research, he’s read close to hundreds of business books. The realizations he came to through his mistakes, research, and participation in mentorship groups led to the founding of UpFlip so others don’t have to make the same mistakes.

This list will help you find the best books on business topics that are worth your time. We have the books grouped into the following topics.

[su_note note_color="#dbeafc"] Read about them all or click the title that interests you most to jump right to it. By the end of this blog, you’ll know exactly which titles you need on hand to educate yourself for business success.

#1. Think and Grow Rich by Napoleon Hill

#2. traction: get a grip on your business by gino wickman, #3. from 6 to 7 figures: simplify your business, gain your time back, scale faster than ever by austin netzley, #4. ready, fire, aim: zero to $100 million in no time flat by michael masterson, #5. #maxout your life by ed mylett, #6. expert secrets: the underground playbook for creating a mass movement of people who will pay for your advice by russel brunson, #7. your next five moves: master the art of business strategy by patrick bet-david, #8. traffic secrets: the underground playbook for filling your websites and funnels with your dream customers by russel brunson, #9. raise your game: high-performance secrets from the best of the best by alan stein jr., #10. the real-life mba: your no-bs guide to winning the game, building a team, and growing your career by jack & suzy welch, #11. ca$hvertising: how to use more than 100 secrets of ad-agency psychology to make big money selling anything to anyone by drew eric whitman, #12. the bezos letters: 14 principles to grow your business like amazon by steve anderson, #13. predictable revenue: turn your business into a sales machine with the $100 million best practices of salesforce.com by aaron ross and marylou tyler, #14. the 10x mentor by grant cardone, #15. how to get rich: one of the world’s greatest entrepreneurs shares his secrets by felix dennis, #16. clockwork, revised and expanded: design your business to run itself by mike michalowicz, #17. the greatest salesman in the world by og mandino, #18. crushing it: how great entrepreneurs build their business and influence—and how you can, too by gary vaynerchuk, #19. entreleadership: 20 years of practical business wisdom from the trenches by dave ramsey, #20. $100m offers: how to make offers so good people feel stupid saying no by alex hormozi, #21. expert secrets: the underground playbook for converting your online visitors into lifelong customers by russell brunson, #22. developing the leader within you 2.0 by john c. maxwell, #23. clockwork: design your business to run itself by mike michalowicz, listen to the best business audiobooks on audible.

• These are the absolutely best business books [/su_note]

You can find most of the books on the UpFlip Amazon Shop , where we make it easy for you to buy business resources.

Best Business Books

These are not just any business books—they’re the best business books of all time! And they’re all detailed for you in this comprehensive list!

• In Think and Grow Rich , Hill draws on stories of Andrew Carnegie, Thomas Edison, Henry Ford, and other millionaires of his generation to illustrate his principles.
• This book will teach you the secrets that could bring you a fortune.
• It will show you not only what to do but how to do it.

All entrepreneurs and business leaders face similar frustrations—personnel conflict, profit woes, and inadequate growth. Decisions never seem to get made, or, once made, fail to be properly implemented. But there is a solution. It's not complicated or theoretical.The Entrepreneurial Operating System® is a practical method for achieving the business success you have always envisioned. More than 80,000 companies have discovered what EOS can do.

This book is designed for busy 6-figure online entrepreneurs who know they are destined for more. If you feel like you’ve been dealing with the same issues over and over again (no consistent leads, cash flow issues, stuck in the weeds, team frustrations), then I’m going to show you the 80/20 of the 80/20 of what you need to know to get more traction in less time and join the top 4% who reach $1 Million in revenue.

This book, called “the business bible” for 6-figure entrepreneurs, breaks down the proven 2X Machine Methodology and teaches you with practical systems and strategies.

Whether you’re thinking about starting a new business or growing an existing one,  Ready, Fire, Aim  has what you need to succeed in your entrepreneurial endeavors. In it, self-made multimillionaire and bestselling author Masterson shares the knowledge he has gained from creating and expanding numerous businesses and outlines a focused strategy for guiding a small business through the four stages of entrepreneurial growth. Along the way, Masterson teaches you the different skills needed in order to excel in this dynamic environment.

A no-nonsense, step-by-step strategy guide to #MAXOUT Your Life and become an elite performer #MAXOUT YOUR LIFE is for those that are serious about achieving their highest levels of life, and evolving into the best version of themselves.

Expert Secrets helps people find their message and then create a mass movement of people who will pay them for that advice.

Traffic Secrets  was written to help you get your message out to the world about your products and services. I strongly believe that entrepreneurs are the only people on earth who can actually change the world. It won't happen in government, and I don't think it will happen in schools. It'll happen because of entrepreneurs like you, who are crazy enough to build products and services that will actually change the world. It'll happen because we are crazy enough to risk everything to try and make that dream become a reality.

Performance coach Alan Stein Jr. shares the secret principles used by world-class performers that will help you improve your productivity and achieve higher levels of success. High achievers are at the top of their game because of the discipline they have during the unseen hours. They have made a commitment to establish, tweak, and repeat positive habits in everything they do.  Raise Your Game  examines the top leaders in sports and business and proves that success is a result of the little things we do  all the time .

FACT: Your brain is being controlled-and you don't even know it. Because if you think the ads you're seeing today are just pretty pictures with nice, creative copy, you're mistaken. Truth is, you are being powerfully influenced by dozens of proven scientific principles of advertising psychology... little-known techniques of consumer persuasion that go completely unnoticed by the buying public. And they're causing you--and millions like you--to spend enormous amounts of money every day on countless products and services. But what are these principles?  How do they work? And how can you use them in your own advertising? Prepare yourself for a unique learning experience  as author Drew Eric Whitman takes you on a wild, roller-coaster ride through the streets of New York's famed Madison Avenue and teaches you the specific psychological techniques that today's top copywriters and designers use to influence the masses... and how you can use them to rapidly increase your sales, no matter what you sell.

Jeff Bezos created Amazon, the fastest company to reach $100 billion in sales ever, making him the richest man in the world. Business owners marvel at Amazon’s success, but don’t realize they have the answers right at their fingertips as Bezos reveals his hidden roadmap in his annual letters to shareholders. For the first time, business analyst Steve Anderson unlocks the key lessons, mindset, principles, and steps Bezos used, and continues to use, to make Amazon the massive success it is today. Steve shows business owners, leaders, and CEOs how to apply those same practices and watch their business become more efficient, productive, and successful―fast!

Discover the outbound sales process that, in just a few years, helped add $100 million in recurring revenue to Salesforce.com, almost doubling their enterprise growth... with zero cold calls. This is NOT another book about how to cold call or close deals. This is an entirely new kind of sales bible for CEOs, entrepreneurs and sales VPs to help you build a sales machine.

Achieve "Massive Action" results and accomplish your business dreams!

While most people operate with only three degrees of action-no action, retreat, or normal action-if you're after big goals, you don't want to settle for the ordinary. To reach the next level, you must understand the coveted 4th degree of action. This 4th degree, also known as the 10 X Rule, is that level of action that guarantees companies and individuals realize their goals and dreams.

The 10 X Rule  unveils the principle of "Massive Action," allowing you to blast through business clichŽs and risk-aversion while taking concrete steps to reach your dreams. It also demonstrates why people get stuck in the first three actions and how to move into making the 10X Rule a discipline. Find out exactly where to start, what to do, and how to follow up each action you take with more action to achieve Massive Action results.

How to Get Rich  is different from any other book on the subject because Dennis isn't selling snake oil, investment tips, or motivational claptrap. He merely wants to help people embrace entrepreneurship, and to share lessons he learned the hard way. He reveals, for example, why a regular paycheck is like crack cocaine; why great ideas are vastly overrated; and why "ownership isn't the important thing, it's the only thing."

• Transfer any task off your plate and trust that your team will get it done right.
• Elevate your role in your company (and life) with one single word.
• Pinpoint the critical function your business must master to avoid mediocrity.
• Leverage the extraordinary power of the 3.2-hour productivity rule.
• And finally—do what you want, when you want, in your business and your life.

Our CEO listed both the original and the revised version of this book in his list, so we’ve included both.

The Greatest Salesman in the World is a bestseller by Og Mandino. His books have sold over 50 million copies. Published in '68, reissued in '83 by Bantam, it's a guide to a philosophy of salesmanship, telling the story of Hafid, a poor camel boy who achieves a life of abundance. A cloth edition was published by Buccaneer Books in 6/93. It takes ten months to read the book. His instructions are to read Scroll I (Ch. 8) three times a day for 30 days. After completing Scroll I continue to II (Ch. 9) & so forth thru X (Ch. 17). The Ten Scrolls I - Commitment Scroll II - Love Scroll III - Persistence Scroll IV - Miracle Scroll V - Time Scroll VI - Emotion Scroll VII - Laughter Scroll VIII - Value Scroll IX - Action Scroll X - Guidance His primary message is to "do it now". In the marking of Scroll IX, "I will act now" appears 18 times. While his messages have Xian undertones, it's still a message of repetitive actions to build good habits.

Four-time  New York Times  bestselling author Gary Vaynerchuk offers new lessons and inspiration drawn from the experiences of dozens of influencers and entrepreneurs who rejected the predictable corporate path in favor of pursuing their dreams by building thriving businesses and extraordinary personal brands.

In his 2009 international bestseller  Crush It,  Gary insisted that a vibrant personal brand was crucial to entrepreneurial success, In  Crushing It!,  Gary explains why that’s even more true today, offering his unique perspective on what has changed and what principles remain timeless. He also shares stories from other entrepreneurs who have grown wealthier—and not just financially—than they ever imagined possible by following  Crush It  principles. The secret to their success (and Gary’s) has everything to do with their understanding of the social media platforms, and their willingness to do whatever it took to make these tools work to their utmost potential. That’s what  Crushing It ! teaches readers to do.

From the  New York Times  bestselling author of  The Total Money Makeover  and radio and podcast host Dave Ramsey comes an informative guide based on how he grew a successful, multimillion dollar company from a card table in his living room. Your company is only as strong as your leaders. These are the men and women doing battle daily beneath the banner that is your brand. Are they courageous or indecisive? Are they serving a motivated team or managing employees? Are they valued? Your team will never grow beyond you, so here’s another question to consider—are you growing? Whether you’re sitting at the CEO’s desk, the middle manager’s cubicle, or a card table in your living-room-based start-up,  EntreLeadership  provides the practical, step-by-step guidance to grow your business where you want it to go.

** OVER 300,000 COPIES SOLD!! **

Number 1 amazon best seller over the last 74 weeks.

I took home more in a year than the CEOs of McDonalds, IKEA, Ford, Motorola, and Yahoo….combined….as a kid in my twenties….using the $100M Offer method. It works. And it will work for you.

Not that long ago though, my business had gotten so bad that I literally couldn’t even give my services away for free. At the end of each month, I would look at my bank account hoping to see progress (but there wasn’t). I knew something had to change...but what?

Over the next 48 months, I went from losing money to  making $36 for every $1 spent.  In that time period, we generated over $120,000,000 across four different industries: service, e-commerce, software, and brick & mortar.

Master the art of what to say in your funnels to convert your online visitors into lifelong customers in this updated edition from the $100M entrepreneur and co-founder of the software company ClickFunnels. Your business is a calling. You've been called to serve a group of people with the products, services, and offers that you've created. People come into your funnels looking for a solution to their problems. By positioning yourself as an expert and learning how to tell your story in a way that gets people to move, you are able to guide people through your value ladder, giving them the results they are looking for. This is how you change the lives of your customers, and this is how you grow your company.

Learn how to develop the influence, character, service and vision that it takes to be a leader in every aspect of your life.

First released in 1993, John C. Maxwell’s now-classic work revolutionized the way leaders are made. By examining the differences between leadership styles, Maxwell outlines principles for inspiring, motivating, and influencing others from any type of leadership position--including as a business executive, a church leader, a teacher, or even a parent.

In this thoroughly revised and updated edition, Maxwell includes two new chapters to include the leadership insights and practices he has learned in the decades since the first edition so that you’ll receive everything you need to take a significant step in your leadership journey.

I personally love listening to audiobooks on Audible. It’s affordable and I can listen to them while working, driving, and doing other tasks. Subscribe below to start a free trial and help support UpFlip in bringing you more information to grow your business.

These are the absolutely best business books. ..

Don’t forget to go check out our Amazon Book List for more of the best business books. We update the list of best business books as we find books we love. If you think there are books that should be on this list, let us know so we can take a look. If we love it as much as you do, we’ll add it to this list.

My motto is:

[su_quote] Never quit learning. [/su_quote]

Which book will you read first?

How to Start a $100K/Month Window Cleaning Business

If you're considering getting into the field, you'll want to hear what Martin Skarra has to say about how to start a window cleaning business.

Martin decided he wanted to buy a window cleaning business for around $400K, and a year later, he doubled the company’s revenue. In this helpful how-to, he shares his business, marketing, and communication strategies for running a successful window cleaning business.

[su_note note_color="#dbeafc"] We'll share the industry outlook and business planning tips, as well as tips for registering a window cleaning company, buying cleaning supplies, marketing, and more. It’s all aimed at helping you save money while you start your business.

Case Study: Seattle Window Cleaning

Learn how to start a cleaning company, learn about the window cleaning industry, step 1. write a window cleaning business plan, step 2. register the window cleaning business, step 3. get a window cleaning business license, step 4. get business insurance, step 5. open a business bank account, step 6. create a pricing guide, step 7. buy window cleaning supplies, step 8. market your window cleaning business, step 9. provide window cleaning services.

• Conclusion [/su_note]

Martin Skarra graduated from business school and wanted to buy a business. He started looking for a service company that was already successful but provided opportunities to improve.

He spent 18 months looking for a small business opportunity that had opportunities to improve branding, adopt technology, and increase profitability. That’s when he found Mercer Island Window Cleaners. He bought it for $400K and started making changes.

First, Martin changed the business name from Mercer Island Window Cleaners, among other brands the company operated under, to Seattle Window Cleaning. This single change helped improve the company’s rank on search engines, jumping to the top three with more than 1,000 searches per month.

He updated the website, automated the business, improved the marketing, and hired more people. These changes helped him double the revenue in less than a year.

Watch his story below:

Does Martin’s story inspire you to be your own boss and start a window-washing company?

Starting a window washing business or any cleaning business can be a high-paying endeavor, but most business owners spend a lot of time and energy learning on the job.

What if you could skip all the guesswork and get straight to making money?

We partnered with Cristobal Mondragon to create a cleaning business course that gives you everything you need to start cleaning business operations. We’re so confident you’ll love the full course that we provide a 90-day refund policy.

Check out our FREE cleaning business course to get a preview of what you’ll learn.

How much do window cleaners make?

According to the Bureau of Labor Statistics , window cleaners typically get paid between $12 and $29 hourly, or a salary of $25,950 to $58,780 per year.

You might pay your window washing employees by the job, by the hour, or commission. In 2022, Martin told us:

[su_quote] “The guys make $12 base pay, and then they get 15% commission above that. So if they do a $100 job, they get $15. The guys are making between $35 and $40.” [/su_quote]

If you want to know how much you can make by starting a window cleaning business, keep reading.

How much do window washing business owners make?

Most window washing business owners pay themselves a salary, which is approximately $100K per year, according to the Bureau of Labor Statistics . You can pay yourself less if you make less, but the IRS likes going after business owners who don’t pay themselves a competitive wage.

While many local window cleaners don’t make that much, starting a window-washing business can be pretty profitable. Martin told us:

[su_quote] “I have about 20% to 25% profit margins but am reinvesting for growth.” [/su_quote]

That means he could be making as much as $22,500 per month. Sound good? Learn more about starting your own window cleaning business.

How much does it cost to start a window cleaning business?

As long as you have the vehicle, starting a window cleaning company costs under $1K. All you need to start a window cleaning business is:

• Window cleaner
• Extension pole
• Business license
• Limited liability company (LLC) or other business structure

If you have to buy a vehicle, you can still do it for under $5K. Martin took a different route and found a great window cleaning business opportunity. He told us:

[su_quote] “I paid around $400K for the business, but the beauty of the U.S., you have something called SBA loans, which are loans from a commercial bank guaranteed by the Small Business Administration. And they let you buy a business with up to 90% leverage.” [/su_quote]

His down payment was around $40K.

Now that you understand the financials, let’s look at how to start a window washing business.

How to Start a Window Cleaning Business

You will need to follow a seven-step process to start your own window cleaning business.

According to Harvard Business Review , taking the time to write a business plan increases the probability of success by 16%. A business plan is normally required to take out SBA loans, too.

To write a window cleaning business plan, you'll want to:

• Brainstorm cleaning business ideas.
• Establish goals for your business.
• Create a budget.
• Create your pricing strategy.
• Write your marketing plan.

Check out our interview with Mike Andes, a successful business owner and franchisor, about writing a business plan.

Let's start by discussing business ideas.

Brainstorm Cleaning Business Ideas

Window cleaning businesses typically have three types of window washing clients they accept:

• Residential clients: Residential window cleaning services focus on a target market, typically homeowners in zip codes with high median wages.
• Commercial clients: Small business owners and building owners often look to commercial window cleaning services. You may focus on buildings like offices, shopping malls, hotels, and apartment complexes.
• High-rise clients: A high-rise window cleaning company operates on skyscrapers and has more safety and insurance requirements than other types of window washers.

Since residential and commercial window cleaners have fairly similar requirements, many businesses will accept both commercial and residential clients. Check out our blog about more cleaning business ideas here .

Once you decide what your business is going to focus on, you need to establish your goals.

Establish Goals for Your Cleaning Business

Every business owner has different goals for their window washing business. The average revenue per employee across the industry is only around $67K, so you probably aren't going to make $1M per year as a single-person business.

You should consider:

• How much do you want to earn?
• Do you want to be a home-based office or rent office space?
• How wide of a service area do you want to serve?
• When you're ready to retire, do you want to be able to sell the business or pass it on to your kids?
• Do you want the business to be in a single location, or would you like to expand through corporate-owned stores or franchising?
• Do you want to hire employees?

You'll want to document all this early because they will impact your pricing guide, insurance, software requirements, marketing, business licenses, and practically every decision you make when opening your own business.

Create a Budget for the Window Washing Business

You'll need a budget to run your window cleaning business successfully. Martin told us:

[su_quote] “I'm hoping long term, [margins] are gonna be in the 20% to 25% range. So that's roughly a third, 35%, 40% is gonna be your technicians, and then there's another, roughly 30% in the overhead and insurance.” [/su_quote]

The breakdown would look something like the table below for a solo entrepreneur. Just multiply the highlighted cells by the number of employees to alter projections when you hire employees.

Create Your Pricing Strategy

You’ll need to figure out how much to charge for window cleaning. You can quote bids for potential customers using the following business models:

• Per Pane: This business model uses the number of window panes to establish how much to charge. The window cleaning cost will normally be $4 to $15 per window.
• Square Footage: Some residential window cleaning companies charge based on the square footage of the windows or the home. These are good for tract homes where cleaning windows doesn’t require a lot of guesswork.
• Time and Materials: This business model is good for commercial properties and custom homes because you can estimate based on factors like ladders, screens, and other features. Companies normally charge $80 to $150 per hour.

Most small businesses call around to figure out what the local market normally charges.

Seattle Window Washing uses a tool called ResponsiBid that makes it easier to provide instant quotes, but BookingKoala ’s layout is better (in my opinion) and the cost is less. Chris discusses it in our blog about how to start a cleaning company

Write Your Marketing Plan

Now it's time to establish how you're going to market your business. You should establish:

• Marketing channels you want to use: Digital, print, radio, and TV are all options. Most opt for digital and limited print.
• Monthly marketing budget: How much do you want to spend on marketing, including blogs, ads, and print media?
• Physical products to market your business: You'll want vehicle signs, business cards, and door hangers. Some people also use mailers.

Martin told us:

[su_quote] “When we're at a house, the neighbors get a card in the mail afterwards and it says, ‘Hey, we're just cleaning the neighbor's windows, we'd love to do some work for you too!'” [/su_quote]

Learn more about finding cleaning customers here .

You’ll need to choose a business name and register the business. Check that the name is available as a web domain, social media handle (on all platforms), trademark, and as an actual business name.

Two common business structures are LLCs and corporations. Both have their benefits, which you can read about in our business structure guide . Make sure to talk to a business attorney before you register.

You'll also need to get tax permits and an Employer Identification Number (EIN) from the Internal Revenue Service.

You'll need to look up your local county clerk or business license department to verify what business licenses you’ll need. Licensing requirements vary by location, but common requirements are:

• General liability insurance
• Workers compensation insurance
• Security bonds
• A licensing fee

The window cleaning license cost will normally be between $100 and $500 , but I have seen some locations where a business license costs a percentage of the previous year’s or quarter’s revenue.

If your location requires insurance, you'll need to get it before the license.

Check out our blog on how to get a cleaning business license . We even walk you through how to get your EIN from the IRS.

You may need to get insurance before you offer window cleaning services. Even if insurance for window cleaners is not required, you should protect your business assets. I normally suggest Simply Business because they are quick, easy, and affordable. They compare window cleaning insurance for most types of business insurance, including:

• Professional liability
• Business owner policies
• Auto insurance
• Workers’ compensation

Make sure you get insurance that will protect your personal and business assets.

You'll want to keep your business and personal assets separate. Business expenses are tax-deductible, but personal expenses are not. A business bank account makes it easy to keep personal assets separate from your business expenses. Apply online or at your local credit union.

Small banks tend to have better approval rates than major banks when you apply for a business loan, so start building a relationship early.

Most window cleaners will also want a business credit card to pay for overhead costs like gas and cleaning solutions. If the bank approves you at the same time you open your bank account, you'll be able to use it for start-up costs.

You'll need to make it easy to provide price quotes to potential clients. Customer service representatives and your window cleaning team will benefit from having an easy way of providing estimates.

This is especially critical if you provide other services to existing customers. Martin told us:

[su_quote] “Window cleaning is super seasonal. We do that in the summer and then trailing into September. Late August, it starts to quiet down quite a bit.” [/su_quote]

They also offer gutter cleaning, roof cleaning, power washing, and Christmas light installation to provide year-round services for their target audience.

You might want to consider a similar approach to build relationships with existing and potential clients. It will help cover overhead costs during slow months. Check out our cleaners pricing guide for inspiration.

As mentioned previously, you should consider Responsibid or BookingKoala, but you can also use an Excel spreadsheet and script to provide window cleaning job quotes.

Check out our 7-Figure Cleaning Business Blueprint course to get the business skills, systems, and processes you need to run a profitable cleaning company. It will make day-to-day operations way easier.

You can buy window cleaning supplies on Amazon. You'll want to get:

• Cleaning solution

Window cleaning equipment might also include a pressure washing setup .

Check out our window cleaning business start-up kit on Kit . Combine it with the pressure washing kit for diversified revenue streams and power window washing capabilities.

Martin told us he attempted every type of marketing and found three that work well.

• Referral programs
• Send a mailer to five neighbors of each customer

He explained:

[su_quote] “I spend about $3,000 per month [on marketing]. We just use regular Google Ads. And then we also do a five-round automated with the cards that go out and to all the neighbors. When we're at a house, the neighbors get a card in the mail afterwards.” [/su_quote]

Check out our cleaning course to get templates for mailers, automations, and ad platforms.

You might also want to create social media accounts and join local business directories, like Angi (formerly Angie's List), Yelp, and Thumbtack. These provide leads and add to your authority.

You've started a window cleaning business, but now it's time to serve customers. If you offer other services like pressure washing, offer this to your customers to increase the revenue per trip. You already use similar cleaning solutions and towels—cleaning tools are pretty interchangeable.

Be careful when cleaning window panes. If you accidentally break a window pane, immediately pay for someone to come out and fix it. Accidents happen, but a quick, honest response can help build a good reputation even when you have accidents.

Now you know how to open a window cleaning business. We discussed how Martin runs his home window cleaning company and what to expect when you enter the industry.

Local service businesses, like window cleaners, can serve both residential and business customers to make a great living. To make a window cleaning business profitable, don’t offer $99 window cleaning unless you are in a place with a low cost of living. Window cleaning jobs require time and money, and you need to make money to stay afloat.

How much is window cleaning in your area?

nice work https://binarychemist.com/

My Name is PRETTY NGOMANE. A south African female. Aspiring to do farming. And finding a home away from home for the differently abled persons in their daily needs.

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3.2 Components of the Strategic Planning Process

Learning objectives.

The objectives of this section is to help students …

• Explain how a mission statement helps a company with its strategic planing.
• Describe how a firm analyzes its internal environment.
• Describe the external environment a firm may face and how it is analysed.

Strategic planning is a process that helps an organization allocate its resources to capitalize on opportunities in the marketplace. Typically, it is a long-term process. The strategic planning process includes conducting a situation analysis and developing the organization’s mission statement, objectives, value proposition, and strategies. Figure 3.2 “The Strategic Planning Process” shows the components of the strategic planning process. Let’s now look at each of these components.

Figure 3.2: The Strategic Planning Process

Conducting a Situation Analysis

As part of the strategic planning process, a situation analysis must be conducted before a company can decide on specific actions. A situation analysis involves analyzing both the external (macro and micro factors outside the organization) and the internal (company) environments. Figure 3.2 “The Strategic Planning Process” and Figure 3.3 “Elements of a SWOT Analysis” show examples of internal and external factors and in a SWOT analysis. The firm’s internal environment—such as its financial resources, technological resources, and the capabilities of its personnel and their performance—has to be examined. It is also critical to examine the external macro and micro environments the firm faces,such as the economy and its competitors. The external environment significantly affects the decisions a firm makes, and thus must be continuously evaluated. For example, during the economic downturn in 2008–2009, businesses found that many competitors cut the prices of their products drastically. Other companies reduced package sizes or the amount of product in packages. Firms also offered customers incentives (free shipping, free gift cards with purchase, rebates, etc.) to purchase their goods and services online, which allowed businesses to cut back on the personnel needed to staff their brick-and-mortar stores. While a business cannot control things such as the economy, changes in demographic trends, or what competitors do, it must decide what actions to take to remain competitive—actions that depend in part on their internal environment.

Conducting a SWOT Analysis

Based on the situation analysis, organizations analyze their strengths, weaknesses, opportunities, and threats, or conduct what’s called a SWOT analysis. Strengths and weaknesses are internal factors and are somewhat controllable. For example, an organization’s strengths might include its brand name, efficient distribution network, reputation for great service, and strong financial position. A firm’s weaknesses might include lack of awareness of its products in the marketplace, alack of human resources talent, and a poor location. Opportunities and threats are factors that are external to the firm and largely uncontrollable. Opportunities might entail the international demand for the type of products the firm makes, few competitors, and favorable social trends such as people living longer. Threats might include a bad economy, high interest rates that increase a firm’s borrowing costs, and an aging population that makes it hard for the business to find workers.

You can conduct a SWOT analysis of yourself to help determine your competitive advantage. Perhaps your strengths include strong leadership abilities and communication skills, whereas your weaknesses include a lack of organization. Opportunities for you might exist in specific careers and industries; however, the economy and other people competing for the same position might be threats. Moreover, a factor that is a strength for one person (say, strong accounting skills) might be a weakness for another person (poor accounting skills). The same is true for businesses. See Figure 3.3 “Elements of a SWOT Analysis” for an illustration of some of the factors examined in a SWOT analysis.

Figure 3.3: Elements of a SWOT Analysis

The easiest way to determine if a factor is external or internal is to take away the company, organization, or individual and see if the factor still exists. Internal factors such as strengths and weaknesses are specific to a company or individual, whereas external factors such as opportunities and threats affect multiple individuals and organizations in the marketplace. For example, if you are doing a situation analysis on PepsiCo and are looking at the weak economy, take PepsiCo out of the picture and see what factors remain. If the factor—the weak economy—is still there, it is an external factor. Even if PepsiCo hadn’t been around in 2008–2009, the weak economy reduced consumer spending and affected a lot of companies.

Assessing the Internal Environment

As we have indicated, when an organization evaluates which factors are its strengths and weaknesses, it is assessing its internal environment. Once companies determine their strengths, they can use those strengths to capitalize on opportunities and develop their competitive advantage. For example, strengths for PepsiCo are what are called “mega” brands, or brands that individually generate over $1 billion in sales1. These brands are also designed to contribute to PepsiCo’s environmental and social responsibilities.

PepsiCo’s brand awareness, profitability, and strong presence in global markets are also strengths. Especially in foreign markets, the loyalty of a firm’s employees can be a major strength, which can provide it with a competitive advantage. Loyal and knowledgeable employees are easier to train and tend to develop better relationships with customers. This helps organizations pursue more opportunities.

Although the brand awareness for PepsiCo’s products is strong, smaller companies often struggle with weaknesses such as low brand awareness, low financial reserves, and poor locations. When organizations assess their internal environments, they must look at factors such as performance and costs as well as brand awareness and location. Managers need to examine both the past and current strategies of their firms and determine what strategies succeeded and which ones failed. This helps a company plan its future actions and improves the odds they will be successful. For example, a company might look at packaging that worked very well for a product and use the same type of packaging for new products. Firms may also look at customers’ reactions to changes in products, including packaging, to see what works and doesn’t work. When PepsiCo changed the packaging of major brands in 2008,customers had mixed responses.Tropicana switched from the familiar orange with the straw in it to a new package and customers did not like it. As a result,Tropicana changed back to their familiar orange with a straw after spending $35 million for the new package design.

Watch Video Clip: Tropicana’s Ad

https://www.youtube.com/watch?v=LDnkqlnhGGI

Tropicana’s ad left out the familiar orange with a straw.

Individuals are also wise to look at the strategies they have tried in the past to see which ones failed and which ones succeeded. Have you ever done poorly on an exam? Was it the instructor’s fault, the strategy you used to study, or did you decide not to study? See which strategies work best for you and perhaps try the same type of strategies for future exams. If a strategy did not work, see what went wrong and change it. Doing so is similar to what organizations do when they analyze their internal environments.

Assessing the External Environment

Analyzing the external environment involves tracking conditions in the macro and micro market place that,although largely uncontrollable, affect the way an organization does business. The macro environment includes economic factors, demographic trends, cultural and social trends, political and legal regulations, technological changes, and the price and availability of natural resources. Each factor in the macro environment is discussed separately in the next section. The micro environment includes competition, suppliers, marketing intermediaries (retailers, wholesalers), the public, the company, and customers. We focus on competition in our discussion of the external environment in the chapter. Customers, including the public will be the focus of Chapter 3 “Consumer Behavior: How People Make Buying Decisions” and marketing intermediaries and suppliers will be discussed in Chapter 8 “Using Marketing Channels to Create Value for Customers” and Chapter 9 “Using Supply Chains to Create Value for Customers”.

When firms globalize, analyzing the environment becomes more complex because they must examine the external environment in each country in which they do business. Regulations, competitors, technological development,and the economy may be different in each country and will affect how firms do business. To see how factors in the external environment such as technology may change education and lives of people around the world, watch the videos “Did You Know 2.0?” and “Did You Know 3.0?” which provide information on social media sites compared to populations in the world. Originally created in 2006 and revised in 2007, the video has been updated and translated into other languages. Another edition of “Did You Know?” (4.0) focused on changing media and technology and showed how information may change the world as well as the way people communicate and conduct business.

Watch Video Clip: Did You Know 2.0?

https://www.youtube.com/watch?v=pMcfrLYDm2U

To see how the external environment and world are changing and in turn affecting marketing strategies, watch “Did You Know 4.0?”

Watch Video Clip: Did You Know 4.0?

https://www.youtube.com/watch?v=6ILQrUrEWe8

To see how fast things change and the impact of technology and social media, visit “Did You Know 4.0?”

Although the external environment affects all organizations, companies must focus on factors that are relevant for their operations. For example, government regulations on food packaging will affect PepsiCo but not Goodyear. Similarly, students getting a business degree don’t need to focus on job opportunities for registered nurses.

The Competitive Environment

All organizations must consider their competition, whether it is direct or indirect competition vying for the consumer’s dollar. Both nonprofit and for-profit organizations compete for customers’ resources. Coke and Pepsi are direct competitors in the soft drink industry, Hilton and Sheraton are competitors in the hospitality industry,and organizations such as United Way and the American Cancer Society compete for resources in the nonprofit sector. However, hotels must also consider other options that people have when selecting a place to stay, such as hostels, dorms, bed and breakfasts, or rental homes.

A group of competitors that provide similar products or services form an industry. Michael Porter,a professor at Harvard University and a leading authority on competitive strategy, developed an approach for analyzing industries. Called the five forces model (Porter,1980) and shown in Figure 3.4 “Five Forces Model”, the framework helps organizations understand their current competitors as well as organizations that could become competitors in the future. As such, firms can find the best way to defend their position in the industry.

Figure 3.4: Five Forces Model (Porter, 1980)

Competitive Analysis

When a firm conducts a competitive analysis, they tend to focus on direct competitors and try to determine a firm’s strengths and weaknesses, its image, and its resources. Doing so helps the firm figure out how much money a competitor may be able to spend on things such as research, new product development, promotion, and new locations. Competitive analysis involves looking at any information (annual reports, financial statements, news stories, observation details obtained on visits, etc.) available on competitors. Another means of collecting competitive information utilizes mystery shoppers, or people who act like customers. Mystery shoppers might visit competitors to learn about their customer service and their products. Imagine going to a competitor’s restaurant and studying the menu and the prices and watching customers to see what items are popular and then changing your menu to better compete. Competitors battle for the customer’s dollar and they must know what other firms are doing. Individuals and teams also compete for jobs, titles, and prizes and must figure out the competitors’ weaknesses and plans in order to take advantage of their strengths and have a better chance of winning.

According to Porter, in addition to their direct competitors (competitive rivals), organizations must consider the strength and impact the following could have (Porter, 1980):

• Substitute products
• Potential entrants (new competitors) in the marketplace
• The bargaining power of suppliers
• The bargaining power of buyers

When any of these factors change, companies may have to respond by changing their strategies. For example, because buyers are consuming fewer soft drinks these days, companies such as Coke and Pepsi have had to develop new, substitute offerings such as vitamin water and sports drinks. However, other companies such as Dannon or Nestlé may also be potential entrants in the flavored water market. When you select a hamburger fast-food chain, you also had the option of substitutes such as getting food at the grocery or going to a pizza place. When computers entered the market, they were a substitute for typewriters. Most students may not have ever used a typewriter, but some consumers still use typewriters for forms and letters.

Figure 3.5: Substitute products

When personal computers were first invented, they were a serious threat to typewriter makers such as Smith Corona. (pclemens –Smith-Corona Classic 12– CC BY 2.0)

Suppliers, the companies that supply ingredients as well as packaging materials to other companies, must also be considered. If a company cannot get the supplies it needs, it’s in trouble. Also, sometimes suppliers see how lucrative their customers’ markets are and decide to enter them. Buyers, who are the focus of marketing and strategic plans, must also be considered because they have bargaining power and must be satisfied. If a buyer is large enough, and doesn’t purchase a product or service, it can affect a selling company’s performance. Walmart, for instance, is a buyer with a great deal of bargaining power. Firms that do business with Walmart must be prepared to make concessions to them if they want their products on the company’s store shelves.

Lastly, the world is becoming “smaller” and a more of a global marketplace. Companies everywhere are finding that no matter what they make, numerous firms around the world are producing the same “widget” or a similar offering (substitute) and are eager to compete with them. Employees are in the same position. The Internet has made it easier than ever for customers to find products and services and for workers to find the best jobs available, even if they are abroad. Companies are also acquiring foreign firms. These factors all have an effect on the strategic decisions companies make.

The Political and Legal Environment

All organizations must comply with government regulations and understand the political and legal environments in which they do business. Different government agencies enforce the numerous regulations that have been established to protect both consumers and businesses. For example, the Sherman Act (1890) prohibits U.S. firms from restraining trade by creating monopolies and cartels. The regulations related to the act are enforced by the Federal Trade Commission (FTC), which also regulates deceptive advertising. The U.S. Food and Drug Administration (FDA) regulates the labeling of consumable products, such as food and medicine. One organization that has been extremely busy is the Consumer Product Safety Commission, the group that sets safety standards for consumer products. Unsafe baby formula and toys with lead paint caused a big scare among consumers in 2008 and 2009.

Figure 3.6: The legal environment

The U.S. Food and Drug Administration prohibits companies from using unacceptable levels of lead in toys and other house hold objects, such as utensils and furniture. Mattel voluntarily recalled Sarge cars made in mid-2000.

As we have explained, when organizations conduct business in multiple markets, they must understand that regulations vary across countries and across states. Many states and countries have different laws that affect strategy. For example, suppose you are opening up a new factory because you cannot keep up with the demand for your products. If you are considering opening the factory in France (perhaps because the demand in Europe for your product is strong), you need to know that it is illegal for employees in that country to work more than thirty-five hours per week.

The Economic Environment

The economy has a major impact on spending by both consumers and businesses, which, in turn, affects the goals and strategies of organizations. Economic factors include variables such as inflation, unemployment, interest rates, and whether the economy is in a growth period or a recession. Inflation occurs when the cost of living continues to rise, eroding the purchasing power of money. When this happens, you and other consumers and businesses need more money to purchase goods and services. Interest rates often rise when inflation rises. Recessions can also occur when inflation rises because higher prices sometimes cause low or negative growth in the economy.

During a recessionary period, it is possible for both high-end and low-end products to sell well. Consumers who can afford luxury goods may continue to buy them, while consumers with lower in comes tend to become more value conscious. Other goods and services, such as products sold in tradition at department stores, may suffer. In the face of a severe economic downturn, even the sales of luxury goods can suffer. The economic downturn that began in 2008 affected consumers and businesses at all levels worldwide. Consumers reduced their spending, holiday sales dropped, financial institutions went bankrupt, the mortgage industry collapsed, and the “Big Three” U.S.auto manufacturers (Ford, Chrysler, and General Motors) asked for emergency loans.

The demographic and social and cultural environments—including social trends, such as people’s attitudes toward fitness and nutrition; demographic characteristics, such as people’s age, income, marital status, education, and occupation; and culture, which relates to people’s beliefs and values—are constantly changing in the global marketplace. Fitness, nutrition, and health trends affect the product offerings of many firms. For example, PepsiCo produces vitamin water and sports drinks. More women are working, which has led to a rise in the demand for services such as house cleaning and day care. U.S. baby boomers are reaching retirement age, sending their children to college, and trying to care of their elderly parents all at the same time. Firms are responding to the time constraints their buyers face by creating products that are more convenient, such as frozen meals and nutritious snacks.

The composition of the population is also constantly changing. Hispanics are the fastest-growing minority in the United States. Consumers in this group and other diverse groups prefer different types of products and brands. In many cities, stores cater specifically to Hispanic customers.

The technology available in the world is changing the way people communicate and the way firms do business. Everyone is affected by technological changes. Self-scanners and video displays at stores, ATMs, the Internet, and mobile phones are a few examples of how technology is affecting businesses and consumers. Many consumers get information, read the news, use text messaging, and shop online. As a result, marketers have begun allocating more of their promotion budgets to online ads and mobile marketing and not just to traditional print media such as newspapers and magazines. Applications for telephones and electronic devices are changing the way people obtain information and shop, allowing customers to comparison shop without having to visit multiple stores. As you saw in “Did You Know 4.0?” technology and social media are changing people’s lives. Many young people may rely more on electronic books, magazines, and newspapers and depend on mobile devices for most of their information needs. Organizations must adapt to new technologies in order to succeed.

Figure 3.7: The technological environment

Technology changes the way we do business. Banking on a cell phone adds convenience for customers. Bar codes on merchandise speed the checkout process. “first direct –first direct Banking ‘on the go’ iPhone App”

(front– CC BY-NC-ND 2.0; Paul Domenick –Lasered– CC BY-NC-ND 2.0)

 Natural Resources

Natural resources are scarce commodities, and consumers are becoming increasingly aware of this fact. Today, many firms are doing more to engage in “sustainable” practices that help protect the environment and conserve natural resources. Green marketing involves marketing environmentally safe products and services in a way that is good for the environment. Water shortages often occur in the summer months, so many restaurants now only serve patrons water upon request. Hotels voluntarily conserve water by not washing guests’ sheets and towels every day unless they request it. Reusing packages (refillable containers) and reducing the amount of packaging, paper, energy, and water in the production of goods and services are becoming key considerations for many organizations, whether they sell their products to other businesses or to final users (consumers). Construction companies are using more energy efficient materials and often have to comply with green building solutions. Green marketing not only helps the environment but also saves the company, and ultimately the consumer, money. Sustainability, ethics (doing the right things), and social responsibility (helping society, communities, and other people) influence an organization’s planning process and the strategies they implement.

Although environmental conditions change and must be monitored continuously, the situation analysis is a critical input to an organization’s or an individual’s strategic plan. Let’s look at the other components of the strategic planning process.

The Mission Statement

The firm’s mission statement states the purpose of the organization and why it exists. Both profit and nonprofit organizations have mission statements, which they often publicize. The following are examples of mission statements:

PepsiCo’s Mission Statement “Our mission is to be the world’s premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity (2).”

The United Way’s Mission Statement “To improve lives by mobilizing the caring power of communities (3).” Sometimes SBUs develop separate mission statements. For example, PepsiCo Americas Beverages, PepsiCo Americas Foods, and PepsiCo International might each develop a different mission statement.

• A firm must analyze factors in the external and internal environments it faces throughout the strategic planning process.
• These factors are inputs to the planning process. As they change, the company must be prepared to adjust its plans.
• Different factors are relevant for different companies.
• Once a company has analyzed its internal and external environments, managers can begin to decide which strategies are best, given the firm’s mission statement

(1) PepsiCo, Inc., “PepsiCo Brands,” http://www.pepsico.com/Company/Our-Brands.html (accessed December 7, 2009).

(2) PepsiCo, Inc., “Our Mission and Vision,” http://www.pepsico.com/Company/Our-Mission-and-Vision.html (accessed December 7, 2009).

(3) United Way Worldwide, “Mission and Vision,” http://www.liveunited.org/about/missvis.cfm (accessed December 7, 2009).

Porter, M. E.,Competitive Strategy(New York: The Free Press, 1980), 3–33.

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3.11: Introduction to the Planning Cycle

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What you’ll learn to do: explain the stages of the planning cycle

Planning is often viewed as a linear process, with a sequence of steps taken in order. Although this is true, it is also true that at any point in the planning process it may be necessary—because of changing conditions or unexpected results—to go back and change earlier decisions. This section will look at planning with both a sequential and cyclical approach.

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• Introduction to The Planning Cycle. Authored by : John/Lynn Bruton and Lumen Learning. License : CC BY: Attribution

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3.1 Why a Business Plan Is Important True or False 1. A business

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Multiple Choice

• is taxed in the same manner as a C corporation
• is eligible for more efficient financing in the face of company growth than a C corporation
• is usually more difficult to form than a C corporation
• is not taxed at the corporate level, unlike a C corporation
• it is easier to raise capital under such a structure than under other organizational forms
• it allows for an unlimited life of the business
• it is relatively easy to create
• Both a and b are correct.
• sits on the audit committee of a firm
• is an ex-employee of a company
• profits from the favorable results of a company
• follows the company for an investment firm
• accountability
• objectivity
• higher share price
• is required to read a company’s annual report
• answers to a board of directors
• has a vested interest in a company’s success
• is hired to do a specific job
• employing an experienced environmental consulting firm
• the advantages of having an audit committee
• having a diversified and well-experienced board of directors
• practicing strong corporate governance
• former employees of the company
• able to write a strong corporate press release
• culturally diverse and experienced in the industry
• new to the industry and without preconceptions
• to avoid mismanagement of the company
• to enable the company to raise capital more efficiently and mitigate financial and operational risk to stakeholders
• to analyze the company’s operations and systems of internal control in order to detect and prevent various forms of fraud and other accounting irregularities
• to increase the company’s overall accountability and prevent significant organizational problems
• shareholders
• board of directors
• external auditors
• stakeholders
• increased vacation time
• increased paid sick leave
• stock options
• comprehensive health insurance
• press releases
• end-of-year financial ledgers
• a letter from the board of directors
• reviewing the work of the internal audit
• reviewing systems of internal control.
• ensuring that appropriate resources are used in company operations
• launching special investigations of employees, company practices, or procedures
• improving banking relations
• ethics and its implementation
• improving profits for shareholders
• expanding operations internationally
• conflicts of interest
• problems with the IRS
• fraudulent business activities
• earnings, shareholders, and governance
• earnings, social, and general profit
• environmental, social, and goals
• environmental, social, and governance
• self-evaluation and training for members of the board of directors
• hiring a prestigious independent public accounting firm
• ensuring cultural diversity and public speaking eloquence of the senior management team
• conducting well-organized shareholder meetings and conference calls with the investment community
• regulatory obligations than standard public relations because of government-mandated financial and legal requirements
• personnel within a company dedicated to its function compared to other corporate departments
• interpretations regarding its effective implementation and use than other managerial and financial disciplines
• documented historical cases of corporate failure than other managerial and financial disciplines
• no longer an important component of modern investor relations strategy
• not yet a thing of the past, though it is highly likely to be replaced by social media in the near future
• written by the chief financial officer in conjunction with the audit committee
• best written to be easy to understand, free of corporate jargon, and as concise as possible
• headquartered in a non-US country but have homogeneous profit centers with little differentiation in product or service
• based in the United States but operate through the use of heavy investments outside the country via multinational profit centers
• larger and more complex than their domestic counterparts
• more likely to be formed as partnerships or sole proprietorships than as corporations

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• Authors: Julie Dahlquist, Rainford Knight
• Publisher/website: OpenStax
• Book title: Principles of Finance
• Publication date: Mar 24, 2022
• Location: Houston, Texas
• Book URL: https://openstax.org/books/principles-finance/pages/1-why-it-matters
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