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Free Startup Business Plan Templates and Examples

By Joe Weller | May 6, 2020

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In this article, we’ve rounded up a variety of the top, professionally designed startup business plan templates, all of which are free to download in PDF, Word, and Excel formats.

Included on this page, you’ll find a one-page startup business plan template , a business plan outline template for startups , a startup business planning template with a timeline , and a sample startup business plan .

Startup Business Plan Template

Download Startup Business Plan Template - Word

Word | Smartsheet

This startup business plan template contains the essential components you need to convey your business idea and strategy to investors and stakeholders, but you can customize this template to fit your needs. The template provides room to include an executive summary, a financial overview, a marketing strategy, details on product or service offerings, and more.

One-Page Startup Business Plan Template

Download One-Page Startup Business Plan Template

Excel | Word | PDF

This one-page business plan is ideal for startup companies that want to document and organize key business concepts. The template offers an easy-to-scan layout that’s ideal for investors and stakeholders. Use this plan to create a high-level view of your business idea and as a reference as you flesh out a more detailed roadmap for your business.

For additional resources, visit " Free One-Page Business Plan Templates with a Quick How-To Guide ."

Simple Fill-In-the-Blank Business Plan Template for Startups

Download Simple Fill-in-the-Blank Business Plan Template for Startups

This comprehensive fill-in-the-blank business plan template is designed to guide entrepreneurs through the process of building a startup business plan. This template comes with a customizable cover page and table of contents, and each section includes sample content that you can modify to fit the needs of your business. For more fill-in business templates, read our  "Free Fill-In-the-Blank Business Plan Templates"  article.

Lean Business Plan Template for Startups

Download Lean Business Plan Template for Startups

This Lean business plan template takes a traditional business plan outline and extracts the most essential elements. Use this template to outline your company and industry overview, convey the problem you are solving, identify customer segments, highlight key performance metrics, and list a timeline of key activities.

Business Plan Outline Template for Startups

Download Business Plan Outline Template for Startups

You can use this business plan outline as a basis to create your own business plan. This template contains all the elements of a traditional business plan, including a title page, a table of contents, and information on what to include in each section. Simplify or expand this outline based on the size and needs of your startup business.

Startup Business Planning Template with Timeline

Download Startup Business Planning Template with Timeline

Excel | Smartsheet

As you create your business plan, this business planning template doubles as a schedule and timeline to track the progress of key activities. This template enables you to break down your plan into phases and provides space to include key tasks and dates for each task. For a visual timeline, shade in the cells according to each task’s start and end dates. The timeline ensures that your plan stays on track.

Business Plan Rubric Template for Startups

Download Business Plan Rubric Template for Startups

Excel | Word | PDF | Smartsheet

If you’re starting a business and want to keep all your ducks in a row, use this rubric to evaluate and score each aspect of your startup business plan. You can tailor this template to the needs of your specific business, and can also highlight areas of your plan that require improvement or expansion. Use this template as a tool to make sure your plan is clear, articulate, and organized. A sharp, insightful, well thought-out plan will definitely get the attention of potential investors and partners.

For additional resources to help support your business planning efforts, check out “Free Startup Plan, Budget, and Cost Templates.”

What’s the Best Business Plan Template for Startups?

The template you choose for your startup business depends on a number of factors, including the size and specific needs of your company. Moreover, as your business grows and your objectives change, you will need to adjust your plan (and possibly your choice of template) accordingly. 

Some entrepreneurs find it useful to use a Lean business plan template design in order to jot down a business concept and see if it’s feasible before pursuing it further. Typically one to three pages, a Lean business plan template encourages you to highlight core ideas and strategic activities and remain focused on key points.

Other entrepreneurs prefer a template with a more traditional business plan design, which allows you to go into greater detail and ensure you include every detail. A traditional plan can range from 10 to 100 pages and cover both the high-level and granular particulars of your overall concept, objectives, and strategy.

There is no one-size-fits-all solution, but the following section outlines the minimum that your business plan template should include in order to gain buy-in from potential investors.

What to Include in a Startup Business Plan

Whether you choose to use a template to develop your startup business plan or decide to write one from scratch, you need to include the following elements:

• An overview of your company and the industry in which it operates
• The problem you are solving and the proposed solution
• A description of your product or service offerings, including key features
• The existing alternatives that customers use and your competitive advantage
• The target customer segments and the channels you will use to reach them
• The cost structure and revenue streams associated with your business
• A financial plan, including sales and revenue projections (ideally 3-5 years)
• If applicable, the financial requirements to get your business running, including how you will source and allocate funds

Each of the following sections provides an example of a business plan that you can use for reference as you develop your own.

One-Page Lean Business Plan Example

This Lean business plan example displays a visually appealing and scannable one-page illustration of a business plan. It conveys the key strategies you need to meet your main objectives. Each element of this concise plan provides stakeholders and potential investors with links to resources that support and expand upon the plan’s details, and it can also serve as an investor pitch deck.

Startup Business Plan Sample

This business plan sample contains all the aspects of a standard business plan. Using a fictional food truck business as the basis for a startup business plan, this sample will give you all the ideas you need to make your plan outstanding.

Download Startup Business Plan Sample - PDF

When the time comes that you need more space to lay out your goals and strategies, choose from our variety of  free simple business plan templates . You can learn how to write a successful simple business plan  here . 

Visit this  free non-profit business plan template roundup  or of you are looking for a business plan template by file type, visit our pages dedicated specifically to  Microsoft Excel ,  Microsoft Word , and  Adobe PDF  business plan templates. Read our articles offering  free 30-60-90-day business plan templates  to find more tailored options.

Top 10 Tips to Create a Startup Business Plan

Putting together a business plan can be overwhelming and time consuming, especially if you aren’t sure where to begin. Below, we share tips you can use to help simplify the process of developing a startup business plan of your own. 

• Use a business plan template, or begin with a business plan outline that provides all the elements of a standard plan to get your ideas down on paper in a structured manner. (You can choose from the selection of templates above.)  
• Remove sections from your outline that aren’t relevant or that aren’t necessary to launch and operate your business.
• Compile the data you have gathered on your business and industry, including research on your target market and product or service offerings, details on the competitive landscape, and a financial plan that anticipates the next three to five years. Use that information to fill in the sections of your plan outline. 
• Get input and feedback from team members (e.g., finance, marketing, sales) and subject matter experts to ensure that the information you’ve included in the plan is accurate.
• Make certain that the objectives of your plan align with marketing, sales, and financial goals to ensure that all team members are moving in the same direction.
• Although this section of the plan comes first, write the executive summary last to provide an overview of the key points in your business plan.
• Prepare a pitch deck for potential clients, partners, or investors with whom you plan to meet in order to share vital information about your business, including what sets you apart and the direction you are headed. 
• Who are the founders and management executives, and what relevant experience do they bring to the table?
• What is the problem you are solving, and how is your solution better than what currently exists? 
• What’s the size of the market, and how much market share do you plan to capture?
• What are the trends in your market, and how are you applying them to your business?
• Who are your direct competitors, and what is your competitive advantage?
• What are the key features of your product or service that set it apart from alternative offerings, and what features do you plan to add in the future?
• What are the potential risks associated with your business, and how do you plan to address them?
• How much money do you need to get your business running, and how do you plan to source it?
• With the money you source, how do you plan to use it to scale your business?
• What are the key performance metrics associated with your business, and how will you know when you’re successful?
• Revisit and modify your plan on a regular basis as your goals and strategies evolve.
• Use a work collaboration tool that keeps key information across teams in one place, allows you to track plan progress, and captures updates in real time.

Successfully Implement Your Startup Business Plan with Real-Time Work Management in Smartsheet

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How to make a business plan

Table of Contents

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

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

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

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

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

What is a business plan?

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

Products or services

Target market

Competitors

Marketing and sales strategies

Financial plan

Management team

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

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

Business plan vs. business model canvas

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

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

Key partnerships

Key activities

Key propositions

Customer relationships

Customer segments

Key resources

Cost structure

Revenue streams

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

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

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

Why is a business plan important?

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

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

Helps to define the business goals and objectives

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

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

Guides decision-making

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

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

Attracts investors and secures funding

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

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

Identifies potential challenges and risks

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

Is there enough demand for my product or service?

Will I have enough capital to start my business?

Is the market oversaturated with too many competitors?

What will happen if my marketing strategy is ineffective?

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

Provides a basis for measuring success

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

Are we where we want to be at this point?

Did we achieve our goals?

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

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

How to make a business plan step by step

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

1. Create an executive summary

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

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

2. Write your company description

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

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

3. Conduct a market analysis

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

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

What does the current market look like?

Who are your competitors?

What are they offering?

What will give you a competitive advantage?

Who is your target market?

What are they looking for and why?

How will your product or service satisfy a need?

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

4. Describe your products and services

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

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

5. Design a marketing and sales strategy

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

Pricing strategy

Advertising and promotional tactics

Sales channels

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

6. Determine budget and financial projections

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

Some details to include in this section are:

Startup costs

Revenue projections

Profit and loss statement

Funding you have received or plan to receive

Strategy for raising funds

7. Set the organization and management structure

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

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

8. Make an action plan

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

Types of business plans

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

Startup business plan

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

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

Strategic business plan

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

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

Operational business plan

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

Organizational structure

Staffing plan

Production plan

Quality control

Inventory management

Supply chain

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

Growth-business plan

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

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

One-page business plan

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

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

Best practices for how to make a good business plan

Here are some additional tips for creating a business plan:

Use a template

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

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

Be practical

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

Be specific

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

Be thorough with your research

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

Get input from others

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

Review and revise regularly

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

Create a winning business plan to chart your path to success

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

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

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

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What is a business plan?

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

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

ZenBusiness

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

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

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

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

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

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

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

Your business’s registered name.

Address of your business location .

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

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

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

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

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

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

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

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

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

You should include the following:

An explanation of how your product or service works.

The pricing model for your product or service.

The typical customers you serve.

Your supply chain and order fulfillment strategy.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

NerdWallet’s picks for setting up your business finances:

The best business checking accounts .

The best business credit cards .

The best accounting software .

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

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

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

Licenses and permits.

Equipment leases.

Bank statements.

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

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

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

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

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

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

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

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

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What Is a Business Plan?

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

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

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

Key Takeaways

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

Investopedia / Ryan Oakley

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

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

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

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

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

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

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

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

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

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

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

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

2 Types of Business Plans

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

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

Why Do Business Plans Fail?

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

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

What Does a Lean Startup Business Plan Include?

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

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

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

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

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

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Blog Feature Updates

Startup Business Plans 101: Your Path to Success

By Jay Nair , Jul 24, 2023

It’s time — you’ve got a promising idea and you’re now prepared to invest the necessary effort to turn it into reality. Startup business plans are vital hack tools that will guide you through your entrepreneurial journey and a business venture with clarity and purpose.

Though vital, business planning doesn’t have to be a chore. Business plans for lean startups and solopreneurs can simply outline the business concept, sales proposition, target customers and sketch out a plan of action to bring the product or service to market. These plans will serve as strategic documents outlining your company’s vision, mission statements, business objectives, target market, financial forecasts and growth strategies.

To simplify the creation of a robust business plan as an entrepreneur, you can harness the power of a business plan maker . This invaluable tool streamlines the process and ensures a polished and well-organized presentation.  Startup business plan templates provide pre-designed frameworks that can be customized to suit your specific industry needs, saving valuable time and effort while preserving the essential structure of a comprehensive business plan.

Ready to begin? Let’s go!

Just so you know, some of our business plan templates are free to use and some require a small monthly fee. Sign-up is always free, as is access to Venngage’s online drag-and-drop editor.

Click to jump ahead:

• Laying the foundation of your startup business plan
• Business plan executive summary
• Writing your business description
• Marketing & sales strategies
• Startup operational plans
• Financial plans – forecasting and projections
• Team and management
• Appendix and supporting documents

FAQs on startup business plans

• Use Venngage to create your startup business plan

Preparation and research: 6 steps to laying the foundation of your startup business plan

• What problem does your product or service solve? 
• Who are your target customers? 
• What differentiates your offering from existing solutions in the market? 

This self-reflection will help you establish a clear direction for your startup.

• Next, conduct market research to gather valuable insights about your target market , including demographics, preferences, and purchasing behavior . This data will enable you to tailor your product or service to meet the specific needs of your customers. Identify trends, industry growth projections, and any potential barriers or challenges you may encounter.
• Competitive analysis is another critical aspect of preparation and research. Study your competitors to understand their strengths, weaknesses, and strategies. Analyze their pricing, marketing tactics, customer experience, and product/service features. This analysis will allow you to identify gaps in the market and position your startup to offer a unique value proposition .
• Financial research is equally important during this phase. Calculate the costs associated with starting and operating your business , including overhead expenses, production costs, marketing expenses, and employee salaries. Assess potential revenue streams and estimate your expected sales. This financial analysis will help you determine the feasibility of your business idea and outline a realistic financial plan.
• Additionally, gather information about legal and regulatory requirements that apply to your industry and location . Understand the necessary permits, licenses, and certifications you need to operate legally. Complying with these regulations from the outset will prevent potential setbacks or legal issues in the future.
• Finally, organize your findings and insights into a coherent business plan. Create your business plan outline , list your business plan goals, strategies, target market, competitive analysis, marketing plan, financial projections and any other relevant information. This compilation will serve as a roadmap for your startup, guiding your decisions and actions moving forward.

You’ve just encountered a wealth of information and are well on your way to becoming a seasoned business owner! This can sometimes feel overwhelming. But don’t worry, take a moment to breathe deeply and remember how far you’ve come. You’ve got this!

To help you condense and organize your essential points, I have brilliant one-page samples of business plan layouts and templates that will capture everything in a concise format.

Knowing when to use a one-page business plan versus a more comprehensive plan depends on various factors. A one-page business plan is ideal for providing a quick overview, saving time, and internal planning. However, it may not suffice for detailed information, complex business models, or meeting external stakeholders’ expectations.

Ultimately, consider the purpose, audience, and complexity of your business when deciding whether to utilize a one-page business plan or opt for a more detailed approach.

Executive Summary: Your Startup’s Elevator Pitch

First impressions are crucial, and a concise yet comprehensive executive summary is your chance to grab potential investors’ attention.

To create a compelling elevator pitch, consider the following key elements:

Problem Statement : Clearly articulate the problem or pain point that your startup addresses. Emphasize the significance of the problem and the potential market size

Solution : Concisely describe your innovative solution or product that solves the identified problem. Highlight its unique features or benefits that differentiate it from existing alternatives.

Target Market : Define your ideal customer segment and outline the market potential. Demonstrate a deep understanding of your target audience’s needs, preferences, and behavior.

Competitive Advantage : Showcase the competitive edge that sets your startup apart from competitors. This could include intellectual property, strategic partnerships, cost advantages, or disruptive technology.

Business Model : Briefly explain how your startup generates revenue and sustains profitability. Outline your monetization strategy, pricing model, and any recurring revenue streams .

Traction and Milestones : Highlight any significant achievements or milestones reached by your startup. This could include customer acquisitions, partnerships, product development progress, or market validation.

Team : Showcase the expertise and qualifications of your founding team or business partners. Highlight key members and their relevant experiences demonstrating their ability to execute the business plan.

I can sense your eagerness to dive right in! To expedite your progress, I’m excited to present you with a collection of meticulously crafted executive summary templates. These templates have been thoughtfully designed and structured by Venngage designers, ensuring seamless integration into your thorough business plan. All you need to do is infuse them with your brilliant startup ideas, and you’ll be well on your way to success!

Now, remember that there’s still a ton of work to be done. Let’s take a moment to regroup and ensure we’re on the right track. Before diving into the process of writing your business plan , it’s imperative to gather a wealth of essential information. Conducting comprehensive research is key, and it should encompass the following aspects:

How to assess your target audience

To gain comprehensive insights into your potential user base, creating a user persona report is invaluable. This persona guide report will help you develop a detailed understanding of various user profiles, enabling you to tailor your products or services to meet their specific needs and preferences.

Understanding Your Market and Competition

Analyze your market and any trends relevant to your startup. Research your competitors, their strengths and weaknesses, and identify what differentiates your offering from the competition.

Developing a Unique Value Proposition

A business Unique Value Proposition (UVP) is a concise statement that communicates the unique advantage a product or service offers over competitors, addressing a specific problem or need. It highlights the distinctive value and benefits customers can expect, helping businesses attract and retain customers by differentiating themselves in the market.

Your unique value proposition (UVP) is the cornerstone of your startup, defining what sets you apart from your competitors. A strong UVP focuses on the specific benefits and solutions your startup offers to customers.

Company Description: Painting the Picture

Your company description allows you to showcase your startup’s unique features and provide more in-depth details about your business. This section should include:

The Purpose of the Company Description

Clarify the purpose of your business, your goals and how your startup is uniquely positioned to achieve them.

Essential Information to Include

Include details such as your company’s legal structure, location and a brief history of any founders or key personnel.

Showcase Your Company’s Unique Features

Emphasize the unique aspects of your startup, explaining how these features translate into a competitive advantage.

Allow me to provide you with a dash of inspiration to ignite the momentum for your startup business plan:

When it comes to showcasing your company’s unique features, keep in mind that it is essential to emphasize and highlight the distinctive aspects of your startup . Clearly articulate how these features set your company apart from competitors and translate into a tangible competitive advantage . 

Whether it’s through cutting-edge technology, innovative business models, exceptional customer service, or a combination of factors, conveying the value and impact of these unique features is crucial. By effectively communicating the benefits they bring to customers, investors, and partners, you can demonstrate the significance of your offerings and differentiate yourself in the market.

Product/Service Line: What You’re Bringing to the Table

This section highlights the finer details of your product or service offerings:

Detailing Your Product/Service Offerings

Provide a thorough description of your products/services, highlighting key features and their intended use.

Highlighting Features, Benefits, and Solutions

Demonstrate how your startup’s offerings solve specific problems or address customer needs through an analysis of product features and associated benefits.

Defining Your Pricing and Revenue Model

Outline your startup’s pricing strategy and how it aligns with the overall business model. Detail any plans for scaling or expanding your revenue sources in the future.

Presenting Your Market Research Findings

Share insights from your market research, including target customer demographics, market size, and growth potential.

Identifying Market Trends and Opportunities

Discuss current trends, emerging opportunities, and how your startup will capitalize on these developments.

Marketing and Sales Strategies: Spreading the Word

Developing a robust marketing and sales strategy plan aligns with your overall business strategy and ensures steady growth. Marketing planning will be an essential part of your journey once you’ve got your business plan tight-knit! Also, creating a marketing strategy can be the most fun part of your business plan!

Developing a Comprehensive Marketing Strategy & Plan

• Outline Specific Marketing Goals : Clearly define your marketing objectives, whether it’s increasing brand awareness, driving website traffic, generating leads, or boosting sales . Set measurable targets to track progress.
• Identify Target Audience : Conduct thorough market research to identify your ideal customer profiles. Understand their demographics, behaviors, preferences, and pain points. Tailor your marketing messages to resonate with their needs.
• Select Effective Marketing Channels : Consider both digital and traditional channels that align with your target audience and marketing goals. This may include online advertising, social media marketing, content marketing, search engine optimization (SEO), email campaigns, print media, events, or partnerships.
• Craft Compelling Messages : Develop persuasive and consistent messaging that highlights the unique value proposition of your products or services. Clearly communicate how your offerings solve customer problems or improve their lives.

5 Tips for Effective Sales Techniques and Growth Strategies + free templates

• Define Your Sales Strategy : Outline the approach and tactics your sales team will use to reach and convert customers. This may involve direct sales, channel partnerships, online sales, or a combination of strategies. Specify your sales process, including lead generation, qualification, nurturing, and closing.
• Expand Your Customer Base : Identify opportunities to expand your customer reach. Consider targeting new customer segments, entering new geographic markets, or exploring untapped market niches. Develop strategies to attract and engage these potential customers.
• Penetrate New Markets : Assess the feasibility of expanding into new markets or verticals. Market research will help you understand the dynamics, competition, and customer needs in these markets. Adapt your marketing and sales strategies accordingly to effectively penetrate and capture market share.
• Innovate Products/Services : Continuously evaluate and enhance your product or service offerings to meet evolving customer demands. Identify areas for innovation or improvement and develop a roadmap for launching new features, versions, or complementary offerings.
• Perform a SWOT analysis : By conducting a sales SWOT analysis , you will gather valuable insights to enhance your department’s performance. This analysis involves evaluating your company’s strengths, weaknesses, opportunities, and threats, enabling you to identify areas for improvement and capitalize on advantageous factors in the market.

Here’s a hack to get you organized – Get right into it with the help of these growth strategy templates and strategic planning templates :

Operational Plan: How Your Startup Will Run

Define an efficient and scalable operational plan, keeping in mind the following points:

Defining an Efficient and Scalable Plan

Outline the day-to-day operations, including processes, timelines, and necessary resources.

Legal Considerations for Your Startup Business

Identify any legal requirements or considerations, such as licenses, permits, or regulations that may apply to your startup.

Key Elements of Supply Chain Management and Logistics

Discuss supply chain and logistical aspects relevant to your business. Include details on how you plan to manage and scale these processes.

Here’s a kickstart on how you can structure your operating plans:

Financial Projections: Crunching the Numbers

A startup’s financial projections are vital in securing investor buy-in. This section should address:

The Importance of Financial Forecasting and Budgeting

Explain the significance of accurate financial forecasting, budgeting, and the assumptions made in your projections.

Identifying Key Performance Indicators (KPIs)

Highlight the KPIs used to gauge your business’s financial health and growth trajectory.

Outlining Funding Requirements

Detail the amount and type of funding your startup requires , including how the funds will be allocated and how this investment positions the company for growth.

Team and Management Structure: Building Your Dream Team

Your startup’s success depends on the people behind it. This section should cover:

Tips for Building the Right Team

Share your strategy for assembling a skilled team that supports your startup’s vision and growth trajectory.

Founders’ Background and Roles

Provide an overview of the founders’ backgrounds, their roles within the company, and how their skills contribute to the startup’s success.

Organizational Structure and Key Management Personnel

Outline your startup’s organizational structure, including any key management personnel who play a pivotal role in day-to-day operations.

Appendices and Supporting Documents: Backing Up Your Plan

Include any other relevant supporting documents, such as:

• Research data, market analysis, or competitor analyses.
• Financial statements, budgeting or forecasting data, and other financial documentation.
• Legal documents, agreements or contracts, and any patent or trademark information.

Finally, remember to review and update your business plan regularly as the industry, market, and competitive landscape evolve!

1. Why is a business plan essential for a startup?

A startup business plan is crucial for a startup because it provides a framework for strategic decision-making, facilitates financial planning, helps assess risks, aligns teams, communicates your vision, and ensures effective resource allocation. 

2. What should a startup business plan include?

A startup business plan should include:

• Vision and Direction : Set clear goals and objectives, and outline strategies to achieve them. With a well-defined plan, you will stay focused, make informed decisions, and ensure alignment with your vision.
• Market Analysis : A business plan necessitates thorough market research to understand your target market, identify competition, and assess product/service demand. These insights enable you to tailor offerings, meet customer needs, and gain a competitive edge.
• Financial Planning : By constructing a financial roadmap through projected statements such as income, cash flow, and balance sheets, a business plan unveils the expected revenues, expenses, and profitability. This comprehensive planning not only anticipates challenges and sets realistic goals but also serves as a magnet for attracting investors and securing funding.
• Risk Assessment : Devise strategies for risk mitigation and contingency planning. By proactively doing this, you can significantly enhance the likelihood of success by anticipating and effectively addressing potential obstacles.
• Communication and Team Alignment : From fostering effective communication with both internal and external stakeholders to aligning team members and showcasing your startup’s unique value proposition, a business plan plays a crucial role. It enables you to articulate target market insights, competitive advantages, and growth strategies to potential investors, partners, and employees.
• Resource Allocation : A business plan helps you identify the resources required to launch and operate your startup successfully. It includes an assessment of your human resources, technology needs, infrastructure requirements, and other key resources. By understanding your resource needs, you can allocate them effectively, ensuring that you have the necessary assets to execute your business strategy.
• Adaptability and Flexibility : Your business plan should be flexible enough to accommodate changes and adapt to new circumstances. Startups operate in dynamic environments, and a well-designed plan allows you to monitor progress, evaluate outcomes, and make adjustments as needed. This agility enables you to seize new opportunities and navigate challenges effectively.

3. What is the ideal length for a startup business plan?

The optimal length for a startup business plan typically depends on the specific requirements and intended audience, but a concise and focused plan of around 20 to 30 pages is often recommended.

4. How to write a good startup business plan?

To write a good and effective startup plan, include an executive summary, company description, market analysis, detailed products/services description and a clear marketing and sales strategy. Also incorporate a comprehensive financial plan, outline your organizational structure, and demonstrates your team’s expertise and capabilities. Your plan should be well-researched, concise, and compelling, with a focus on your company’s unique value proposition and market opportunity, making it attractive to investors and stakeholders.

Utilizing Venngage templates & other tools for success

A visually appealing and professional business plan needn’t be a daunting task. Leverage tools like Venngage Business Plan Maker for effective templates that cater to various industries and streamline the process. 

• Leveraging Venngage for Visually Appealing and Professional Business Plans

Venngage offers a range of templates designed specifically for business plans, allowing you to craft a polished and visually engaging plan without any design experience. Simply choose a template, customize it to suit your startup’s branding, and populate it with your content.

• Exploring Additional Resources and Tools for Entrepreneurs. In addition to Venngage, several other resources and tools can assist entrepreneurs in crafting the perfect business plan. Examples include:
• Small Business Administration (SBA) – Offers guidance on writing business plans and provides templates and resources for each section.
• SCORE – A nonprofit organization providing mentorship, workshops, and other resources for entrepreneurs.
• Industry-specific resources – Research relevant professional organizations, industry publications, and blogs to stay up to date on industry trends and insights.

Embarking on the entrepreneurial path may present formidable challenges, yet it offers abundant rewards in various aspects. Embrace the art of continuous learning, delving not only into the essence of your business idea but also immersing yourself in the vast world that surrounds it. Cultivate a genuine passion for understanding every facet of your enterprise, for it is through this journey of exploration that you will uncover invaluable insights and experience the true fulfillment of entrepreneurship.

550+ Business Plan Examples to Launch Your Business

Need help writing your business plan? Explore over 550 industry-specific business plan examples for inspiration.

Find your business plan example

Accounting, Insurance & Compliance Business Plans

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Cleaning, Repairs & Maintenance Business Plans

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• Architecture
• Construction
• View All 46

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• Advertising
• View All 54

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Business plan template: There's an easier way to get your business plan done.

Entertainment & Recreation Business Plans

• Entertainment
• Film & Television
• View All 60

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• Event Planning
• View All 17

Farm & Agriculture Business Plans

• Agri-tourism
• Agriculture Consulting
• View All 16

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Fitness & Beauty Business Plans

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IT, Staffing & Customer Service Business Plans

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• Dental Practice
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• Co-op Nonprofit
• Food & Housing Nonprofit
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Retail & Ecommerce Business Plans

• Car Dealership
• View All 116

Technology Business Plans

• Apps & Software
• Communication Technology

Transportation, Travel & Logistics Business Plans

• Airline, Taxi & Shuttle
• View All 62

View all sample business plans

Example business plan format

Before you start exploring our library of business plan examples, it's worth taking the time to understand the traditional business plan format . You'll find that the plans in this library and most investor-approved business plans will include the following sections:

Executive summary

The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally only one to two pages. You should also plan to write this section last after you've written your full business plan.

Your executive summary should include a summary of the problem you are solving, a description of your product or service, an overview of your target market, a brief description of your team, a summary of your financials, and your funding requirements (if you are raising money).

Products & services

The products & services chapter of your business plan is where the real meat of your plan lives. It includes information about the problem that you're solving, your solution, and any traction that proves that it truly meets the need you identified.

This is your chance to explain why you're in business and that people care about what you offer. It needs to go beyond a simple product or service description and get to the heart of why your business works and benefits your customers.

Market analysis

Conducting a market analysis ensures that you fully understand the market that you're entering and who you'll be selling to. This section is where you will showcase all of the information about your potential customers. You'll cover your target market as well as information about the growth of your market and your industry. Focus on outlining why the market you're entering is viable and creating a realistic persona for your ideal customer base.

Competition

Part of defining your opportunity is determining what your competitive advantage may be. To do this effectively you need to get to know your competitors just as well as your target customers. Every business will have competition, if you don't then you're either in a very young industry or there's a good reason no one is pursuing this specific venture.

To succeed, you want to be sure you know who your competitors are, how they operate, necessary financial benchmarks, and how you're business will be positioned. Start by identifying who your competitors are or will be during your market research. Then leverage competitive analysis tools like the competitive matrix and positioning map to solidify where your business stands in relation to the competition.

Marketing & sales

The marketing and sales plan section of your business plan details how you plan to reach your target market segments. You'll address how you plan on selling to those target markets, what your pricing plan is, and what types of activities and partnerships you need to make your business a success.

The operations section covers the day-to-day workflows for your business to deliver your product or service. What's included here fully depends on the type of business. Typically you can expect to add details on your business location, sourcing and fulfillment, use of technology, and any partnerships or agreements that are in place.

Milestones & metrics

The milestones section is where you lay out strategic milestones to reach your business goals.

A good milestone clearly lays out the parameters of the task at hand and sets expectations for its execution. You'll want to include a description of the task, a proposed due date, who is responsible, and eventually a budget that's attached. You don't need extensive project planning in this section, just key milestones that you want to hit and when you plan to hit them.

You should also discuss key metrics, which are the numbers you will track to determine your success. Some common data points worth tracking include conversion rates, customer acquisition costs, profit, etc.

Company & team

Use this section to describe your current team and who you need to hire. If you intend to pursue funding, you'll need to highlight the relevant experience of your team members. Basically, this is where you prove that this is the right team to successfully start and grow the business. You will also need to provide a quick overview of your legal structure and history if you're already up and running.

Financial projections

Your financial plan should include a sales and revenue forecast, profit and loss statement, cash flow statement, and a balance sheet. You may not have established financials of any kind at this stage. Not to worry, rather than getting all of the details ironed out, focus on making projections and strategic forecasts for your business. You can always update your financial statements as you begin operations and start bringing in actual accounting data.

Now, if you intend to pitch to investors or submit a loan application, you'll also need a "use of funds" report in this section. This outlines how you intend to leverage any funding for your business and how much you're looking to acquire. Like the rest of your financials, this can always be updated later on.

The appendix isn't a required element of your business plan. However, it is a useful place to add any charts, tables, definitions, legal notes, or other critical information that supports your plan. These are often lengthier or out-of-place information that simply didn't work naturally into the structure of your plan. You'll notice that in these business plan examples, the appendix mainly includes extended financial statements.

Types of business plans explained

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. To get the most out of your plan, it's best to find a format that suits your needs. Here are a few common business plan types worth considering.

Traditional business plan

The tried-and-true traditional business plan is a formal document meant to be used for external purposes. Typically this is the type of plan you'll need when applying for funding or pitching to investors. It can also be used when training or hiring employees, working with vendors, or in any other situation where the full details of your business must be understood by another individual.

Business model canvas

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

The structure ditches a linear format in favor of a cell-based template. It encourages you to build connections between every element of your business. It's faster to write out and update, and much easier for you, your team, and anyone else to visualize your business operations.

One-page business plan

The true middle ground between the business model canvas and a traditional business plan is the one-page business plan . This format is a simplified version of the traditional plan that focuses on the core aspects of your business.

By starting with a one-page plan , you give yourself a minimal document to build from. You'll typically stick with bullet points and single sentences making it much easier to elaborate or expand sections into a longer-form business plan.

Growth planning

Growth planning is more than a specific type of business plan. It's a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, forecast, review, and refine based on your performance.

It holds all of the benefits of the single-page plan, including the potential to complete it in as little as 27 minutes . However, it's even easier to convert into a more detailed plan thanks to how heavily it's tied to your financials. The overall goal of growth planning isn't to just produce documents that you use once and shelve. Instead, the growth planning process helps you build a healthier company that thrives in times of growth and remain stable through times of crisis.

It's faster, keeps your plan concise, and ensures that your plan is always up-to-date.

Download a free sample business plan template

Ready to start writing your own plan but aren't sure where to start? Download our free business plan template that's been updated for 2024.

This simple, modern, investor-approved business plan template is designed to make planning easy. It's a proven format that has helped over 1 million businesses write business plans for bank loans, funding pitches, business expansion, and even business sales. It includes additional instructions for how to write each section and is formatted to be SBA-lender approved. All you need to do is fill in the blanks.

How to use an example business plan to help you write your own

How do you know what elements need to be included in your business plan, especially if you've never written one before? Looking at examples can help you visualize what a full, traditional plan looks like, so you know what you're aiming for before you get started. Here's how to get the most out of a sample business plan.

Choose a business plan example from a similar type of company

You don't need to find an example business plan that's an exact fit for your business. Your business location, target market, and even your particular product or service may not match up exactly with the plans in our gallery. But, you don't need an exact match for it to be helpful. Instead, look for a plan that's related to the type of business you're starting.

For example, if you want to start a vegetarian restaurant, a plan for a steakhouse can be a great match. While the specifics of your actual startup will differ, the elements you'd want to include in your restaurant's business plan are likely to be very similar.

Use a business plan example as a guide

Every startup and small business is unique, so you'll want to avoid copying an example business plan word for word. It just won't be as helpful, since each business is unique. You want your plan to be a useful tool for starting a business —and getting funding if you need it.

One of the key benefits of writing a business plan is simply going through the process. When you sit down to write, you'll naturally think through important pieces, like your startup costs, your target market , and any market analysis or research you'll need to do to be successful.

You'll also look at where you stand among your competition (and everyone has competition), and lay out your goals and the milestones you'll need to meet. Looking at an example business plan's financials section can be helpful because you can see what should be included, but take them with a grain of salt. Don't assume that financial projections for a sample company will fit your own small business.

If you're looking for more resources to help you get started, our business planning guide is a good place to start. You can also download our free business plan template .

Think of business planning as a process, instead of a document

Think about business planning as something you do often , rather than a document you create once and never look at again. If you take the time to write a plan that really fits your own company, it will be a better, more useful tool to grow your business. It should also make it easier to share your vision and strategy so everyone on your team is on the same page.

Adjust your plan regularly to use it as a business management tool

Keep in mind that businesses that use their plan as a management tool to help run their business grow 30 percent faster than those businesses that don't. For that to be true for your company, you'll think of a part of your business planning process as tracking your actual results against your financial forecast on a regular basis.

If things are going well, your plan will help you think about how you can re-invest in your business. If you find that you're not meeting goals, you might need to adjust your budgets or your sales forecast. Either way, tracking your progress compared to your plan can help you adjust quickly when you identify challenges and opportunities—it's one of the most powerful things you can do to grow your business.

Prepare to pitch your business

If you're planning to pitch your business to investors or seek out any funding, you'll need a pitch deck to accompany your business plan. A pitch deck is designed to inform people about your business. You want your pitch deck to be short and easy to follow, so it's best to keep your presentation under 20 slides.

Your pitch deck and pitch presentation are likely some of the first things that an investor will see to learn more about your company. So, you need to be informative and pique their interest. Luckily, just like you can leverage an example business plan template to write your plan, we also have a gallery of over 50 pitch decks for you to reference.

With this gallery, you have the option to view specific industry pitches or get inspired by real-world pitch deck examples.

Ready to get started?

Now that you know how to use an example business plan to help you write a plan for your business, it's time to find the right one.

Use the search bar below to get started and find the right match for your business idea.

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How to write a business plan

Writing a business plan will help nail down your idea and give you a blueprint for executing it.

What is a business plan?

A business plan describes your product or service, identifies who the customer is, explains why they need your product or service, and shows how you’ll make money from that opportunity.

Why write a business plan

How you write a business plan will depend on what you need it to do. There are a couple of key jobs a business plan can have. It can:

• explain a business idea
• convince lenders or investors to put money behind that business idea

It doesn’t take a book to do the first job. You can write a business plan that’s short, to the point, and easy to update. That may be all you ever need. But if you’re going for funding, your business plan will need to be a good deal longer and more comprehensive.

Why every business should start with a one-pager

Even if you will eventually write a long business plan, a one-pager is a great place to start. It could take as little as an hour to do your first draft and will make your idea stronger. Writing about customers, competitors, income and expenses will help develop your thinking.

How to write a one-page business plan

You’ll see in the example below that there are nine sections, or things to write about. So give yourself just a small space to write about each. Keeping it short will help you focus on what’s important.

Download a one-page business plan template.

When you need a longer business plan

The greater the risk you’re taking, the more comprehensive your plan should be. For instance, you’ll need to write a long-form business plan if you’re going to fund it with other people’s money. Banks and investors will expect it.

How to write a longer business plan

Long-form business plans touch on all the same things as a one-pager, but they go into more detail and contain fewer assumptions.

Back-of-the-napkin numbers are replaced by forecasts and budgets. And guesstimates for things like costs, market size, customer preferences, and competitor weaknesses need to be backed up with proof. It’s a good idea to involve an accountant or bookkeeper in developing the budgeting and finance sections.

Contents of a business plan:

• Executive summary: A short summary of the main points of your business plan. Write it last.
• Company overview: Identify your industry, what you’re selling, and how you’ll charge.
• Products or services: Include a description of the problem you’re solving for customers.
• Market analysis: Describe your target market, and examine the competition.
• Risk assessment: Flag potential hurdles (including assumptions that could be proved wrong).
• Marketing and sales plan: How will you find customers and make sales? How many sales will there be?
• Milestones: What needs to happen and when?
• Progress reporting: When and how will you report against the milestones?
• Team: Who will be involved in the business? Note their skills and responsibilities.
• Budget: Estimate your costs and income (and any debt that you plan to take on).
• Finance: Show how you’ll fund the business.

You can also add an appendix with any supporting or background documents.

Make a start by downloading our free business plan template.

How not to write a business plan

Avoid these common business planning mistakes:

• Underestimating how much money it will take to get started
• Failing to budget for the first few months of operation (before revenues start flowing)
• Expecting sales to ramp up too fast
• Relying too heavily on one or two customers (or suppliers)
• Not including contingencies for unexpected delays or costs

For more information, visit the SBA (Small Business Administration) page on writing a business plan , which comes complete with templates to help get you started.

Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.

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How To Write a Business Plan

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

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

Table of contents

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

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Step 1: Write your executive summary

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

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

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

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

Step 2: Do your market research homework

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

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

Step 3: Set your business goals and objectives

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

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

Step 4: Plan your business strategy

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

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

Step 5: Describe your product or service

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

Step 6: Crunch the numbers

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

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

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

Step 7: Finalize your business plan

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

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

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The takeaway

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

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• 5 Best Business Plan Software and Tools in 2023 for Your Small Business
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How to Write a Business Plan for a Startup

Last Updated: December 22, 2023 Fact Checked

This article was co-authored by Jack Herrick . Jack Herrick is an American entrepreneur and wiki enthusiast. His entrepreneurial projects include wikiHow, eHow, Luminescent Technologies, and BigTray. In January 2005, Herrick started wikiHow with the goal of creating "the how-to guide for everything." He has a Master of Business Administration (MBA) from Dartmouth College. There are 13 references cited in this article, which can be found at the bottom of the page. This article has been fact-checked, ensuring the accuracy of any cited facts and confirming the authority of its sources. This article has been viewed 115,257 times.

As a startup, you will need a business plan. For example, you will need to show your plan to a bank if you are seeking a loan. You also need to show the plan to any investor. Business plans are helpful because they force you to step back and analyze your business critically. You should consider your target market, the products or services you will offer, and your projected finances. Writing a business plan isn’t difficult, though it will require considerable research and planning.

Explaining Your Marketing Plan

• Your mission. What is your driving goal every day? Don’t simply write, “Make money.” Identify how you will make money. For example, you can write: “Our mission is to offer residents of the Lakeview neighborhood the best day spa experience in the Near North Side of Chicago. We are committed to providing value and quality in a fun atmosphere that is never predictable.”
• Your goals. For example, a day spay might have the following goal: “To attract a minimum of 35 customers each day in the first year of operations.” Make your goals as concrete as possible.
• Description of the industry. Explain whether the industry is growing or poised for growth in the short and long term.
• The factors that will drive your success. How will you set yourself apart? For example, “You All Day will separate itself from the pack based on the owner’s deep experience running a day spa in Seattle for ten years. This experience includes familiarity with successful marketing techniques and trends analysis.”
• Your legal form. Are you a sole proprietorship, partnership, limited liability company (LLC), or corporation? Also explain why you selected this form.

Jack Herrick

Don’t skimp on how much energy and time you put into your mission. When asked about creating wikiHow’s mission, Jack Herrick, founder of wikiHow, responded: “We had the whole management team — alongside members of the wikiHow community — reviewing it, discussing it, and going back and forth on the wording. Those two sentences were many hours of work.”

• You can search for industry information in other places. For example, talk to people in your industry at trade shows. Also search online. Many industries have trade associations, which have websites with information.
• For example, when analyzing the day spa industry, you might want to talk about how it is growing because more upper-income men in urban areas are visiting. (If that’s true).
• By analyzing the industry, you gain insight as to your likely target market and how you can reach them.

• Age. What is the average age of your likely customer? If you don’t know, then visit similar businesses and note the ages of the clientele.
• Gender. Will men or women—or both—primarily use your products or services?
• Location. Generally, your market will be located near your business. However, if you have a web-based business, your target audience could have no geographic boundaries.
• Income level.
• Occupation. For example, a day spa might target stressed-out white collar professionals.
• Education level. There is often a link between education, income, and occupation—though not always. For example, a discount bookstore might target an educated audience that nevertheless has a lower income.

• To find competitors, look in the phone book and do a general Google search. Make sure to read their website and stop into the business.
• If you’re opening a restaurant, you’ll want to see a sample menu, as well as the hours of operation.
• Also identify indirect competitors. For example, a day spa is competing with more than other spas. You also compete with any business that offers relaxation, such as massage parlors or meditation centers.
• Name of your competitor.
• What you offer that they don’t. Think about products and services, but also location, ease of ordering, etc. What will make the consumer experience different at your business?
• What they offer that you don’t. Identify why you don’t offer their products or services. For example, they may be serving multiple niches while you are focused on only one. Alternately, they may have a favorable location.

• Whether you will sell pizza by the slice, as whole pies, or both
• How big your pizzas will be
• What toppings your customers can offer
• If you will have take-out and delivery options
• What other food items will be sold

• What type of advertising or promotion will you use? How often will you use paid promotion?
• What other promotion other than paid advertising will you use? For example, you might use social media, professional networks, etc.
• Will you create a logo and use it on cards, letterhead, websites, etc.?
• How large will your promotional budget be?

Discussing Your Business Organization

• State how much you expect to pay each employee in your first three years of business.
• Also name your professional support, such as your business lawyer, accountant, and insurance agent. Professionals are independent contractors you use but don’t employ. Calculate how much you expect to spend on each professional.

• You might write: “Lisa Jones is the sole proprietor of You All Day and will run day-to-day operations. As a certified massage therapist, she ran the Relax! chain of day spas in the Greater Seattle area for ten years. A former accountant, Lisa has an MS in accounting from the University of New Hampshire and worked as a CPA briefly before going into the spa business.”
• If you are asking for a loan, then include resumes for each owner. You can put them in the appendix at the end of the document.

• You should create professional-looking financial statements using a spreadsheet.
• You’ll have to gather quite a bit of information to make the financial statement. For example, you will need information on your assets, investments, and personal debts.
• You might also want to get a free copy of your credit report and review it as you draft your business plan.

Analyzing Business Finances

• Common startup costs include insurance, licenses, equipment, advertising, and employee expenses. [9] X Trustworthy Source U.S. Small Business Administration U.S. government agency focused on supporting small businesses Go to source
• Also identify the source of the startup capital. For example, if your startup has three initial owners, state how much each is contributing to the business and their ownership percentage.
• If you need financing, state how much. Include the terms of any proposed loan.

• You’ll need to make some assumptions in order to come up with a forecast of sales. You should explain these assumptions in your business plan.
• For example, you can write, “We assume continued interest in day spas in the Chicago area.”
• Another assumption is the overall health of the economy. “Although the Chicagoland economy has grown more slowly than other regions of the country, we assume that the Chicago economy will grow on par with other large metropolitan areas in the coming decade.”
• You can also include a four-year projection, though this is optional.

• Also talk about how you will build up your cash reserves. For example: “In addition to normal cash flow, we will focus on obtaining sufficient cash reserves for emergencies. These reserves include a line of credit with a bank, which we can use when business is slow. We will also invest excess cash in certificates of deposits at our bank.”

• Fixed costs: these don’t vary depending on your sales volume. For example, your rent, employee salaries, and insurance are fixed costs.
• Variable costs: these fluctuate depending on your sales and include shipping, inventory, and manufacturing costs.

Finishing Your Business Plan

• Add a cover page to your document. You can title it “[Company Name]’s Business Plan” or “Business Plan for [Your Name].” If you have a logo, include that too.

• For example, you can write, “You All Day is a start-up dedicated to providing men and women in Chicago a high-quality day spa experience at an affordable price. We specialize in pedicures, manicures, massage, and herbal aromatherapy. The Near North Side of Chicago has grown substantially over the past 20 years, with young, educated millennials settling in to start families. This area is currently under served, and we hope You All Day can meet the demand of the local market.”

• Executive Summary
• Company Description
• Industry Analysis
• Market and Competition
• Products and Services
• Marketing and Sales Plan
• Operations and Management
• Financial Forecasts
• Exhibits/Appendix

• Review for typos and other errors. An accountant should check your numbers to make sure they are accurate.
• Analyze the overall presentation. Is the information crammed in so that the document is tiring to read? If so, spread out the information so that there is a lot of white space on each page.
• You can also show the plan to a business adviser. If you live in the U.S., you can show it to someone at your nearest Small Business Development Center, which provides help drafting business plans. You can find your nearest SBDC by visiting this website: https://www.sba.gov/tools/local-assistance/sbdc .

• You might want to include tabbed partitions between each section of your business plan. This will make it easier for someone to flip through it and find what they are looking for.

Expert Q&A

• Don’t be afraid to change your business plans as you research and draft the document. That’s one of the reasons for writing the plan in the first place. For example, you might have intended to target women as consumers only to realize that there are growth opportunities with men. You can adjust your plans accordingly. Thanks Helpful 1 Not Helpful 0

You Might Also Like

• ↑ https://business.vic.gov.au/business-information/marketing-and-sales/increasing-sales-through-marketing/do-market-research
• ↑ https://openstax.org/books/entrepreneurship/pages/7-5-reality-check-contests-and-competitions
• ↑ https://www.sba.gov/business-guide/plan-your-business/market-research-competitive-analysis
• ↑ https://www.indeed.com/career-advice/career-development/business-plan-product-description
• ↑ https://business.gov.au/planning/business-plans/develop-your-marketing-plan
• ↑ https://openstax.org/books/entrepreneurship/pages/11-4-the-business-plan
• ↑ https://www.sba.gov/business-guide/plan-your-business/calculate-your-startup-costs
• ↑ https://www.alberta.ca/preparing-financial-projections-and-monitoring-results.aspx
• ↑ https://www.pwc.com/gx/en/services/entrepreneurial-private-business/small-business-solutions/blogs/preparing-a-cash-flow-forecast-simple-steps-for-vital-insight.html
• ↑ https://www.sba.gov/business-guide/plan-your-business/write-your-business-plan
• ↑ https://smallbusinessbc.ca/article/5-reasons-business-plan-review/

About This Article

To write a business plan for a startup, break your plan up into several sections, including an executive summary, a description of your company, an industry analysis, market and competition information, your products and services, your marketing and sales plan, operations and management information, your financial forecasts, and finally, an appendix. To format your business plan, use a professional font, like Times New Roman, and include a cover page with your company's name and logo on it. To learn how to write each section of your business plan, read on! Did this summary help you? Yes No

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Start » startup, how to write a startup business plan.

As a startup, you'll need to know how to write a business plan in order to attract investors. Here are some templates and examples to help you get started.

If you're starting a new business or executing a new plan within your company, you’ll want to have a business plan. It’s a formal document that outlines your company, your project, funding options and your means of execution. There are many resources available to help you write your business plan, including countless templates you can follow depending on your goals. Below we’ve outlined some examples, including a sample plan.

[Read: How to Write a Business Plan During a Pandemic ]

Business plan template examples

While business plans can be general, it’s helpful to gear yours toward your industry. Here are five business plan templates for specific industries or situations:

• For first-time entrepreneurs: The United States Small Business Administration (SBA) .
• For getting your ideas down: $100 Startup .
• For law firms: Cilo .
• For established businesses: SCORE .
• For additional industries: LawDepot .

Sample business plan

A one-page business plan briefly states your opportunity and timeline. It’s often used as an introduction to your longer, more robust plan. Here is a brief overview of a business plan and the nine elements that should be included.

1. The business opportunity

At the top of your plan, state the endeavor you're looking to pursue. Are you a new startup or an existing company looking to grow? Describe your challenges and how you plan to work through them. This section should be a one- or two-sentence elevator pitch of your business opportunity.

[Read: How to Refine Your Business Plan for Every Stage of Your Business ]

2. Your company description

When writing your company description, assume the reader knows nothing about your company. Briefly define who you are, identifying your values and why your company is necessary right now.

Outline your timeline for launching your business or project. Timelines are always subject to change, so make sure you account for alternative scenarios and setbacks.

3. Your talent description

In this section, you’ll want to introduce your team and demonstrate why they are the right fit for your business. Talk about their relevant skills, experience and background, getting as specific as possible. Providing their track record will reassure potential investors that your business is backed by reliable professionals.

4. The industry analysis

While writing your plan, it’s important to recognize your industry's outlook and your potential within it. This will also help you identify your competitors and analyze their offerings in comparison to yours, so you can focus on how you might stand out among them. This analysis is a great way to show investors that you’ve done your research and understand how you fit into your market.

[Read: Pivoting During the Pandemic? 16 Tools That Will Help Your Business Adapt ]

5. Your target audience

In this section, you will identify your target audience, defining their demographic, location and other specific traits. Additionally, explain how your audience will benefit from your company or project, or how you will solve common problems they share.

6. The timeline

Outline your timeline for launching your business or project. Timelines are always subject to change, so make sure you account for alternative scenarios and setbacks. For your one-page business plan, talk about your general timeline, its phases and why it’s a realistic goal.

7. Your marketing plan

How will you get the word out about your new business or project? Identify the avenues you and your company will choose to explore and how you plan to meet your target audience there. For example, consider your social media efforts, digital marketing and other methods that you seek to execute.

8. The financial summary

Clearly define your cost structure and revenue streams, describing your sales methods and post-launch goals, as well as how you will achieve them. Be sure to include both your long- and short-term financial goals and benchmarks.

[Read: Smart Strategies for Presenting Your Business Plan ]

9. Your funding requirements

One of the primary reasons you write a business plan is to help obtain funding. In this section, talk about the amount of funding you'll need from investors and where that funding will go. You should also be clear about how you plan to pay back your investors through your financial plan.

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How to Write a Business Plan for Your Startup

Anyone can have a great idea. But turning an idea into a viable business is a different ballgame.

You may think you’re ready to launch a startup company . That’s great news, and you should be excited about it.

Before you start seeking legal advice, renting office space, or forming an LLC, you need to put your thoughts on paper. This will help you stay organized and focused.

You’ll also be able to share this plan with others to help you get valuable feedback. We don’t recommend starting a company without consulting people first.

A typical business plan consists of the following elements:

• An executive summary
• A company description
• Market research
• Descriptions of products and/or services
• The management and operational structure
• Marketing and sales strategy

Thoroughly writing out your plan accomplishes several things.

Save your business plan progress in one place across all the document apps you use.

First, it gives you a much better understanding of your business. You may think  you know what you’re talking about, but putting it on paper will truly make you an expert.

Writing a formal plan increases your chances of success  by 16%.

Having a business plan also gives you a better chance of raising capital for your startup  company. No banks or investors will give you a dollar if you don’t have a solid business plan.

Plus, companies with business plans also see higher growth rates  than those without a plan.

If you have an idea for a startup company but not sure how to get started with a business plan, we can help you out. We will show you how to write different elements of your business plan and provide some helpful tips along the way.

8 Steps to Write a Business Plan

Here’s what you need to know to get started.

• Make sure your company has a clear objective
• Identify your target market
• Analyze your competition 
• Budget accordingly
• Identify your goals and financial projections
• Clearly define the power structure
• Discuss your marketing plan
• Keep it short and professional

Step 1 – Make sure your company has a clear objective

When writing a company description, make sure it’s not ambiguous.

“We’re going to sell stuff”

isn’t going to cut it.

Instead, identify who you are and when you plan on going into business. State what kinds of products or services you’ll be offering and in what industry.

Where will this business operate? Be clear whether you’ll have a physical store, operate online, or both. Is your company local, regional, national, or international?

Your company description can also incorporate your mission statement.

This is an opportunity for you to gain a better understanding of your startup. The company summary forces you to set clear objectives. The type of company you have and how you will operate should be obvious to anyone who reads it.

Include the reasons for going into business. For example, let’s say you’re opening a restaurant. A reason for opening could be that you identified that no other restaurants in the area serve the cuisine you specialize in.

You can briefly discuss the vision and future of your startup company, but you don’t need to go into too much detail. You’ll cover that in greater depth as you write the rest of your business plan.

Keep in mind, this description is a summary, so there’s no reason for you to write a ton. This section should be pretty concise and no more than three or four paragraphs.

Step 2 – Identify your target market

Your business isn’t for everyone. Although you may think everyone will love your idea, that’s not a viable business strategy.

One of the first steps to launching a successful business is clearly identifying the target market of your startup .

But to find out whom you’ll target, you need to conduct market research .

This is arguably the most important part of launching a startup company. If there’s no market for your business, the company will fail. It’s as simple as that.

All too often we see entrepreneurs rush into a decision because they fall in love with an idea. Due to this tunnel vision, they don’t take the necessary steps to conduct the proper research.

Sadly, those businesses don’t last.

But if you take the time to write a business plan, you may discover there’s not a viable market for your startup before it’s too late. It’s much better to learn this information in these preliminary stages than after you’ve dumped a ton of money into your venture.

To figure out your target market, start with broad assumptions and slowly narrow it down. Typically, the best way to segment your audience is using these four categories:

• demographic
• psychographic

Start with things like:

• income level

As we said earlier, start broadly. For example, you may start by saying your target market lives in North America, and then narrow it down to the United States.

But as you continue going through your market research, you can get even more specific. You can target customers living in New England, for example.

By the time you’re finished, the target market could look something like this:

• ages 26 to 40
• living in the Boston area
• with an annual income of $55,000-$70,000
• who are into recycling

This profile encompasses all four demographic segments we mentioned earlier. Plus, it’s very specific.

Your business plan should talk about the research you conducted to identify this market. Talk about the data you collected from surveys and interviews .

You’ll use this target market in other sections of the business plan as well when you discuss future projections and your marketing strategy. We’ll cover both of those topics shortly.

Step 3 – Analyze your competition

In addition to researching your target market, you need to conduct a competitive analysis as well. You’ll use this information to create your brand differentiation strategy .

When you’re writing a business plan, your startup doesn’t exist yet. Nobody knows about you. Don’t expect to be successful if you’re planning to launch a competitor’s carbon copy.

Customers won’t have a reason to switch to your brand if it’s the same as the company they already know and trust.

How will you separate yourself from the crowd?

Your differentiation strategy could involve your price and quality. If your prices are significantly lower, that can be your niche in the industry. If you have superior quality, there is a market for that as well.

Competitive analysis should be conducted simultaneously with identifying your target audience. Both of these fall under the market research category of your business plan.

Once you figure out who your competitors are, it will be easier to determine how your company will be different from them. But this information will be based on your target market.

For example, let’s say you’re in the clothing industry. Your competitors will depend on your target market. If you’re planning to sell jeans for $50, you won’t be competing with designer brands selling jeans for $750.

Or you can base your price differentiation on what you learned about your target market. From there, you’ll be able to identify your competitors.

As you can see, the two go hand in hand.

Step 4 – Budget accordingly

You need to have all your numbers in order when you’re writing a business plan, especially if you’re planning on securing investment funding.

Figure out exactly how much money  you need to start the business and stay operational; otherwise, you’ll run out of money.

Running out of cash is one of the most common reasons why startup companies fail. Taking the time to sort your budget out before you launch will minimize that risk.

Consider everything. Start with the basics like:

• equipment costs
• property (buying or leasing)

Here’s an example  of what this will look like in your business plan:

These numbers need to be accurate. When in doubt, estimate higher. Things don’t always go according to plan.

In the example above, although the total startup expenses are less than $28k, it may not be a bad idea to raise $40k or even $50k. That way, you’d have some extra cash in the bank in case something comes up.

You don’t want poor budgeting to be the reason for your startup’s failure.

Step 5 – Identify your goals and financial projections

Let’s continue talking about your financials. Obviously, you won’t have any income statements, balance sheets, cash flow reports, or other accounting documents if you’re not fully operational.

However, you can still make projections. You can base these projections on the total population of the target market in your area and what percentage of that market you think you can penetrate.

If you have an expansion strategy in mind, this would also be outlined in your financial projections.

These projections should cover the first three to five years of your startup. Make sure they are reasonable. Don’t just say you’ll make $10 million in your first year. In fact, your company may not be even profitable for the first couple of years.

As long as you’re being honest with yourself and potential investors, your financial plan will cover your break-even analysis.

While it’s reasonable to expect your sales revenue to increase each year, you still need to take all factors into consideration.

For example, if you’re planning to expand to a new location in year four, your financial projections need to be adjusted accordingly.

You may not be profitable until your third year of operation, but if you’re opening a new facility in year four, that year may have a net loss as well. Again, this is completely fine as long as you’re planning and budgeting accordingly.

Another example of a goal could be launching an ecommerce store in addition to your brick-and-mortar locations. Just don’t try to bite off more than you can chew. Keep everything within reason.

Step 6 – Clearly define the power structure

Your business plan should also cover the organizational structure of your startup. If it’s a small company with just you and maybe one or two business partners, this should be easy.

But depending on how you’re planning to scale the company, it’s best to get this sorted out sooner rather than later. Here’s an example of what your organizational chart  may look like:

It’s really important to have this hierarchy in place before you get started. That way, there’s no debate over who reports to which position. It’s clear who is in charge of specific people and departments.

Don’t get too complex with this.

If you put too many layers of managers, directors, and supervisors between the top of the chart and the bottom of the chart, things can get confusing.

You don’t want any instructions or assignments to get lost in translation between levels. You also don’t want anyone to be confused about who is in charge.

This is an opportunity for you to outline how your company will operate in terms of board members and investors. Who has the final say in decisions?

While we understand you may need to give up some equity in your startup to get off the ground, we recommend keeping the power in your hands.

Step 7 – Discuss your marketing plan

Your marketing plan relies on everything else we’ve talked about so far.

How will you acquire customers based on the market research of your target audience and competitive analysis?

This strategy needs to be aligned with your budget and financial projections as well.

We could sit here and talk about different marketing strategies all day. But there’s no right or wrong way to approach this for your startup company.

Our recommendation would be to stay as cost-effective as possible. Be versatile and well-balanced too.

Acquiring customers is expensive. You don’t want to dump your entire marketing budget into one strategy. If it doesn’t work, you’ve got nothing to fall back on.

Take these categories into consideration when you’re coming up with a marketing plan:

Before you try anything too crazy, get the basics sorted out first:

• launch a website
• stay active on social media platforms
• start building an email subscriber list
• focus on customer retention
• come up with customer loyalty programs.

Don’t ease into this one step at a time. Come out fast. Even before your company officially launches, you can start building your website and social media profiles.

The last thing you want is for consumers to find out about your brand but then be unable to find your website or contact information. Or worse, get directed to a website that’s broken or unfinished.

Step 8 – Keep it short and professional

We’ve talked about many different components of your business plan. It may sound overwhelming, but don’t be alarmed.

This shouldn’t be a 100-page dissertation.

You definitely want it to be detailed and thorough, but don’t go overboard. There’s no exact number of pages it should be, but have at least one page per section.

It should also be written cleanly and professionally. Don’t use slang terminology.

Proofread it for grammatical and spelling errors.

Remember, you may need to use this to raise capital. People may be hesitant to give you money if you overlook the small stuff like proper grammar.

Launching a startup company is exciting. It’s easy to get so caught up in the moment that you rush into things.

If you want to set yourself up for success, you need to take a step back and plan things out.

Going through the process of writing a formal business plan will increase your chances of securing an investment and also improve your potential growth rate.

The market research you’ll need to conduct in order to write this plan will also help you determine whether this is a viable business venture to proceed with.

If you’ve never written a business plan, use this post as a guide for what you should include. Follow our tips for best practices.

Writing a business plan may seem like a tedious task right now, but we promise it will keep you organized and save you lots of headaches down the road.

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Do you want to increase the odds that your business startup will be a success? Download this step-by-step business plan template to lay the groundwork for your new business.

Writing a business plan allows you to carefully think through every step of starting your company so you can better prepare and handle any challenges. While a thorough business plan is essential in the financing process, it's helpful even if you don’t need outside financing.

Creating a business plan can:

• Help you discover any weaknesses in your business idea so you can address them before you open for business
• Identify business opportunities you may not have considered and plan how to take advantage of them
• Analyze the market and competition to strengthen your idea
• Give you a chance to plan strategies for dealing with potential challenges so they don’t derail your startup
• Convince potential partners, customers, and key employees that you’re serious about your idea and persuade them to work with you
• Force you to calculate when your business will make a profit and how much money you need to reach that point so that you can be prepared with adequate startup capital
• Determine your target market and how to reach them

A detailed, step-by-step plan gives you a blueprint you can refer to during the startup process and helps you maintain momentum.

What this business plan template includes

Writing a business plan for a startup can sometimes seem overwhelming. To make the process easier and more manageable, this template will guide you step-by-step. The template includes easy-to-follow instructions for completing each business plan section, questions to help you think through each aspect, and corresponding fillable worksheet/s for critical sections.

After you complete the 11 worksheets, you will have a working business plan for your startup to show your SCORE mentor .

Business plan sections covered in this template:

• Executive Summary
• Company Description
• Products and Services
• Marketing Plan
• Operational Plan
• Management and Organization
• Startup Expenses and Capitalization
• Financial Plan

The Appendices include documents that supplement information in the body of the plan.  These might be contracts, leases, purchase orders, intellectual property, key managers’ resumes, market research data or anything that supports assumptions or statements made in the plan.

The last section of the template, “Refining Your Plan,” explains ways to modify your plan for specific purposes, such as getting a bank loan, or for specific industries, such as retail or manufacturing.

Complete the Business Plan Template for a Startup Business to create a working business plan for your startup.

Then, contact a  SCORE mentor  to review and refine your plan online or in person.

Quick Start Business Plan The aim of this module is to give you the tools, direction and ideas you need to build a business plan. If you're starting a business then a business plan is essential, because it forces you to think through your ideas and options.

10 Business Planning Tips for Starting a Business In this webinar, you'll learn 10 business planning tips to help you start your entrepreneurial journey on the right path.

Business Plan 101: Sales & Marketing The sales and marketing section of your business plan describes how you intend to sell your product. Learn what you should include in this section.

Copyright © 2024 SCORE Association, SCORE.org

Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.

How To Create A Winning Business Plan For Your Startup

When it comes to starting a business, having a solid business plan is absolutely crucial.  Consider this as a conversation between you and your business’s future. You’d need to start by clearly defining what your startup offers – this is your product or service. It needs to answer the question, “What problem are you solving for your customers?”

Next, delve into market analysis. Understand who your competitors are and pinpoint your target customers. Once you have that, consider your business strategy and the sales and marketing plans you’ll employ to achieve your goals.

It’s crucial not to forget the operational aspect – how will your business function daily? And lastly, the financial projections. They can be a little tricky, but they’re the crux of the plan, demonstrating the financial viability of your startup.

We have got a helpful guide that’ll dive deep into all the essential elements you need to craft a top-notch business plan, tailored specifically for your unique startup. A solid business plan will help you make smarter decisions, catch the eye of potential investors, and give yourself an edge over your competitors in the market.

Why Business Plan Is Important For A Startup

Just as you wouldn’t venture into unknown territory without a compass, initiating a startup without a business plan can lead to wandering aimlessly, wasting precious resources, or even getting lost in the market’s vast wilderness. Here are some reasons why a business plan is crucial for a startup.

Your Guide To Decision-Making

Entrepreneurship involves constant decision-making and crisis management. The luxury of pondering the possible ramifications of every choice isn’t always an option for a fledgling business. This is where a well-thought-out business plan proves its worth. Setting out your strategies, goals, and expected outcomes in advance, can guide you in making smart decisions, reducing the likelihood of costly mistakes. It’s like your startup’s crystal ball, helping you predict and navigate future challenges.

Smoothing Out The Road Ahead

Compiling a business plan requires you to dig deep, ask tough questions, and seek out insightful, well-researched answers. It’s about creating a realistic vision of your startup’s future, and it’s the process that matters. Even if you never look at the document again, the act of writing it down helps to refine your vision and identify potential gaps in your plan.

Avoiding Common Pitfalls

There’s a sobering statistic that approximately half of all small businesses don’t reach their fifth birthday. Many of these failures result from issues that a well-structured business plan can help to avoid.

According to data from  CB Insights , common reasons businesses fail include a lack of market need, cash flow problems, inadequate team structure, intense competition, and pricing errors. An effective business plan can help you avoid these pitfalls by foreseeing issues like cash flow forecasts, market analysis, and pricing strategy before they become problems. 

Proving Business Viability

Passion is an excellent motivator when launching a startup. However, passion alone does not guarantee success. Your plan is crucial in demonstrating your startup’s potential by outlining exactly how your vision translates into a profitable business.

For instance, the market research section of your plan can provide deep insights into your customers, competitors, and industry. This information can be pivotal in shaping strategies for marketing, product development, and scaling your business.

A Roadmap For Growth

Business plans play a crucial role in setting objectives and creating benchmarks. Without a business plan, goals can become arbitrary, losing their relevance over time. A well-documented plan keeps you accountable, aligns your team with your vision, and provides insights into the effectiveness of your strategies.

Facilitating Communication And Collaboration

A business plan isn’t just a guide for you, but also for your team. Whether you have a staff of two or two hundred, everyone needs to understand your business’s goals and how you plan to reach them. Your business plan can serve as a communication tool, spelling out the next steps when you’re unavailable for direct guidance. It aligns everyone with your vision, fostering a sense of shared purpose and commitment to the objectives outlined.

Navigating The Business Landscape

Running a successful business is about more than just managing what’s happening within your company’s four walls. It’s also about understanding the larger market environment. Crafting a business plan encourages you to study your competition, identify trends and preferences among consumers, anticipate potential disruptions, and garner insights that might not be apparent at first glance. Armed with this information, you’re better equipped to anticipate and respond to changes in your industry.

Leveraging External Support

Startups often depend on a range of external service providers for expertise in areas like accounting, marketing, and legal matters. Your business plan can serve as a reference point for these professionals, helping them understand your business better and align their services with your needs. By sharing relevant sections of your business plan, you can ensure everyone is on the same page, enhancing the effectiveness of their support.

Securing Investment

Here’s a fact to consider: you are 2.5 times more likely to secure funding if you have a business plan. Investors, banks , and potential partners want to know that their investment is in capable hands and that your business has a promising future. A well-crafted business plan is your opportunity to demonstrate this, making it a must-have document if you’re seeking external financing.

Mitigating Risks

All entrepreneurial ventures involve some level of risk, but a well-designed business plan can significantly mitigate these dangers. By considering revenue and expense projections, operational plans, and the competitive landscape, you’ll be equipped with a risk management tool that can guide your decision-making and limit the chances of unpleasant surprises.

Some Facts About A Successful Business Plan

• According to the  Small Business Administration , a successful business plan typically includes an executive summary , market analysis, competitive analysis, description of products and services offered, management overview, financial projections, and funding requirements.
• A  Harvard Business School survey  found that entrepreneurs who have written a business plan are 16% more likely to achieve success than those who have not.
• One  study  found that companies with a business plan grow 30% stronger than those without a plan.

Business Plan Formats

While there is no one-size-fits-all approach, there are common formats that cater to different needs and objectives. Understanding these formats will help you choose the most suitable one for your venture and tailor it to your specific needs.

Traditional Business Plan

The traditional business plan is the most comprehensive and widely used format. It typically spans multiple pages and contains detailed information about your company’s strategy, objectives, and financial projections. Venture capitalist firms and lenders often require these plans when seeking investment or loans. Key sections in a traditional business plan include:

• Executive Summary: A brief overview of your company, including its mission, goals, and key selling proposition.
• Company Description: Details about your company, history, and unique selling proposition (USP).
• Market Analysis: An examination of the industry, market, and competition.
• Marketing and Sales Strategies: Plans for promoting your products or services and generating sales.
• Organization and Management: An outline of your company’s organizational structure and management team.
• Product Line or Services: A description of your products or services and their benefits.
• Financial Projections: A forecast of your company’s financial performance, including income statements, balance sheets, and cash flow statements.

Download the Traditional Plan template from  here .

Lean Business Plan

A lean business plan is a condensed version of a traditional plan, focusing on the most critical information. This format is ideal for businesses that need a quick, accessible reference or for those looking to modify existing plans to target a specific market. A lean business plan will cover the same sections as a traditional plan but in a more concise manner.

Nonprofit Business Plan

A nonprofit business plan is tailored for organizations that operate for public or social benefit. This format incorporates all elements of a traditional business plan, with an additional section highlighting the organization’s intended impact.

This section may describe the social or environmental issues the organization aims to address and how its operations contribute to solving these problems. Donors and grant-makers often request nonprofit business plans to assess the organization’s mission, strategies, and potential impact.

Comparative Analysis Of The Common Business Plan Models

 how to write a business plan:.

Stats Source:  1 , 2

The business plan acts as the blueprint of your venture, outlining its mission, operational strategy, market analysis, financial needs, and more. It gives stakeholders a holistic view of your company, underpinning decisions and attracting potential investors. Let’s explore the key components of a business plan that will serve as the compass guiding your startup toward success.

1. Write An Executive Summary

The executive summary is at the forefront of your business plan, which introduces your plan to the world. It encapsulates everything your plan will detail but at a much higher level. As a pro tip, this summary is often more effective when written last, ensuring you fully grasp your plan.

In the executive summary, you’ll present your organization’s mission statement and the offerings you intend to bring to the market. If your venture is a new startup, including the reasons that inspired you to initiate this journey might be beneficial.

Here is how you can write an executive summary for your business plan.

• Your executive summary begins with the “Mission” – a clear and concise statement of your company’s purpose. Your mission is not merely what you do; it’s why you do it and how you want to impact your customers and the world.
• Next is the “Company History and Management” section. Provide a snapshot of your company’s location, the period of operation, and the people at the helm. A brief overview of their experience will also be valuable.
• A significant part of your executive summary will be the “Products or Services” your company offers. What problems does your product or service solve? How does it add value to the customer’s life? Providing succinct answers to these questions can pique the reader’s interest.
• In the “Market” section, you summarize the potential of your product or service or Total Addressable Market (TAM). Highlight key insights into the size and nature of your target market, indicating the business growth potential.
• The “Competitive Advantages” segment allows you to shine a light on what sets you apart from the competition. Make sure to highlight the unique strengths that will make customers choose your company.
• Finally, you must present your “Financial Projections” and “Startup Financing Requirements.” Provide an estimate of sales for the first few years and a clear outline of what it’ll cost to launch and run your company.

2. Add A Business Description

The business description paints a vivid picture of your venture, its goals, the industry it serves, and your target customers. This section allows you to share the passion behind your venture while detailing your industry, including prevalent trends and formidable competitors. Highlight your team’s industry experience and what sets your venture apart from competitors.

3. Market Research And Strategies

The purpose of the market analysis and strategy component of a business plan is to research and identify a company’s primary target audience and where to find this audience. Factors to cover in this section include:

• The geographic locations of your target markets
• The primary pain points experienced by your target customers
• The most prominent needs of your target market and how your products or services can meet these needs
• The demographics of your target audience
• Where your target market spends most of their time, such as particular social media platforms and physical locations
• This section aims to clearly define your target audience so that you can make strategic estimations about how your product or service might perform with this audience.

4. Marketing And Sales Plan

This part of your business plan covers the specifics of how you plan to market and sell your products and services. This section includes:

• Your anticipated marketing and promotion strategies
• Pricing plans for your company’s products and services
• Your strategies for making sales
• Reasons for your target audience to purchase from your company versus your competition
• Your organization’s unique selling proposal

5. Management And Organization Description

This section of your business plan explores the details of your business’s management and organization strategy. Introduce your company leaders and their qualifications and responsibilities within your business. You can also include human resources requirements and your company’s legal structure.

6. Products And Services Description

Use this section to further expand on the details of the products and services your company offers that you covered in the executive summary. Include all relevant information about your products and services. This includes how you plan to manufacture or develop them, how long they can last, what needs they may meet, and how much you project it might cost to create them.

7. Competitive Analysis

Add a detailed competitive analysis that clearly outlines a comparison of your organization to your competitors. Outline your competitors’ weaknesses and strengths and how you expect your company might compare to these. Include any advantages or distinctions your competition has in the marketplace. In addition, explore what makes your business different from other companies in the industry and any potential challenges you may face when entering the marketplace, if applicable.

8. Operating Plan

This part of your business plan describes how you plan to operate your company. Include information regarding how and where your company plans to operate, such as shipping logistics or patents for intellectual property. The operating plan also details personnel-related operations, like how many employees you hope to hire in various departments.

9. Financial Projection And Needs

The financial section of your business plan explains how you anticipate bringing in revenue. If you need funding for your business, this section also describes the sources and amounts for that funding. Include your financial statements, an analysis of these statements, and a cash flow projection.

10. Exhibits And Appendices

The last section of your business plan provides any extra information to support further the details outlined in your plan. You can also include exhibits and appendices to support the viability of your business plan and give investors a clear understanding of the research that backs your plan. Common information to put in this section includes:

• Resumes of company management and other stakeholders
• Marketing research
• Proposed or current marketing materials
• Relevant legal documentation
• Image Of your product (or demo)

Tips To Create A Small Business Plan

Know Your Audience

Knowing your audience is paramount when crafting your small business plan. It’s not just about offering a product or service, but understanding who will buy it and why. Start by defining your target market – age, gender, geographic location, income level, occupation, and lifestyle preferences are just a few factors to consider. Once you’ve identified your potential customers, dive deeper. What are their pain points? How can your product or service address these issues? Having this knowledge not only helps you tailor your offerings but also guides your marketing and sales strategies.

Have A Clear Goal

Your business plan must have a clear goal – a specific aim that you intend to achieve. This could be anything from reaching a certain revenue target, expanding to new locations, or securing a specific market share within a given period. Setting clear, measurable goals serves as a roadmap, guiding your actions and decisions. Remember, these goals should be SMART – Specific, Measurable, Achievable, Relevant, and Time-bound. Each goal should directly support your overall business objectives and provide a clear path to success.

Invest Time In Research

A successful business plan is built on solid research. Market trends, competitive landscape, and regulatory environment – these are all factors that could affect your business and, thus, must be considered in your business plan. Research can inform product development, pricing, and promotional strategies, as well as identify potential opportunities and threats. Conduct both primary (surveys, interviews) and secondary research (reports, articles) to gather comprehensive information. It’s an investment of time that pays off in the long run by guiding informed decision-making.

Keep It Short And To The Point

While your business plan should be comprehensive, resist the temptation to include every minor detail. Remember, the plan is a tool to communicate your business idea and strategy to stakeholders, including potential investors, partners, or employees. Therefore, it should be concise, focusing on key aspects such as your product or service, market analysis, business model, marketing and sales strategy, and financial projections. Avoid jargon and keep your language simple and straightforward. It makes the plan easier to read and understand, increasing its effectiveness.

Keep The Tone, Style, And Voice Consistent

Consistency is key in the tone, style, and voice of your business plan. It not only enhances readability but also reflects your brand identity. If your business is a modern tech startup, a casual, conversational tone might work well. For a law firm, a more formal tone would be appropriate. Choose a tone and style that aligns with your brand, and maintain it throughout the plan. This consistency helps build a strong brand image and makes a positive impression on readers.

Use A Business Plan Software

In the digital age, business plan software can simplify the planning process. These tools come with features like templates, step-by-step guides, and financial forecasting tools, making it easier to create a professional, comprehensive plan. Using such software can save time, increase accuracy, and ensure that your plan covers all essential aspects. Some popular options include LivePlan, Bizplan, and Upmetrics. Before choosing a tool, consider your needs, budget, and the software’s ease of use.

Mistakes To Avoid When Writing A Business Plan

1. not choosing a feasible business idea.

When it comes to selecting a business idea, there’s a fine line between ambitious and unrealistic. Too often, entrepreneurs get so enthralled by their passion project that they lose sight of its practicality in the market. They overlook crucial factors like the demand, the target audience, or the industry’s economic climate. In the business world, a great idea isn’t enough; it also has to be feasible. Validate your idea with market research, seek professional advice, and listen to potential customer feedback before making a commitment.

2. No Clear Exit Strategy

Although it might seem counterintuitive to plan your business’s end before it has even begun, a clear exit strategy is paramount. It guides your decisions, indicates your long-term goals, and reassures investors about the safety of their investments. Whether it’s selling the business, distributing dividends, or opting for an IPO, consider your exit strategy from the get-go.

3. Lack Of A Balanced Team

A start-up’s success isn’t a one-person show; it involves a balanced team with diverse skills and experiences. Without a robust team, you may be overwhelmed, attempting to manage all aspects of the business singlehandedly. When composing your team, look for complementary skill sets. A mix of leadership, financial acumen, marketing prowess, and technical skills ensures a well-rounded, capable team.

4. No Comprehensive Financial Projections

Many startups fall into the trap of undervaluing comprehensive financial projections. The figures you present in your business plan should be accurate and realistic and include projections for revenue, expenses, and cash flow. This detail is not only vital for you to understand the financial requirements and sustainability of your venture, but it is also crucial for securing funding from investors. Your business plan should include:

• Balance Sheet: A snapshot of your company’s financial position, including assets, liabilities, and equity.
• Cash Flow Statement: An overview of cash inflows and outflows, highlighting your ability to generate and manage cash.
• Profit and Loss (P&L) Statement: A summary of your company’s revenues, expenses, and net income over a specified period.

5. Spelling And Grammar Mistakes

Nothing undermines the credibility of a business plan like spelling and grammar mistakes. They give an impression of carelessness and lack of attention to detail. In the business world, these are attributes that no entrepreneur should embody. Always proofread your plan, use professional editing tools, or seek the help of an editor to ensure impeccable presentation.

6. Not Conducting A Proper Competitive Analysis

Understanding your competition is pivotal in carving your unique place in the market. An improper or superficial competitive analysis can lead to an ill-informed strategy and poor decision-making. Use methods like SWOT analysis to understand your competitors’ strengths, weaknesses, opportunities, and threats, and use this information to differentiate your offering.

7. A Proper Marketing And Sales Strategy

Without a well-defined marketing and sales strategy, even the most innovative product can get lost in the shuffle. Outline your strategy, detailing the mediums and  channels  you plan to use to reach your target audience. Be sure to include the  estimated costs  of these strategies to ensure alignment with your financial projections.

8. No Incorporating Scalable Business Model

A scalable business model is key to long-term success. It ensures that your business can adapt to increased demand without significantly increasing operational costs. If you neglect this aspect, you may struggle to grow or, worse, become overwhelmed by success.

9. Not Setting Realistic And Measurable Goals

Setting lofty, abstract goals may seem visionary, but in practice, they leave a business adrift. Your business plan should define realistic, measurable, and time-bound objectives. The idea here is to give your team a

10. No Presence Of A Risk Management Plan

All businesses face risks, whether they are financial, operational, strategic, or related to reputation. Ignoring these potential hazards won’t make them go away. On the contrary, it leaves you unprepared (i.e. SVB bank collapse). Incorporate a risk management plan into your business strategy, outlining potential challenges and your proactive steps to mitigate them.

11. Not Updating And Refining Your Business Plan

Remember, a business plan isn’t a static document you write once and forget. As your business evolves, so should your plan. Market dynamics change, customer preferences shift, and new competitors emerge. Regularly updating and refining your business plan ensures that it remains a useful tool for decision-making and a clear roadmap for your business’s future. An outdated plan will not reflect your current business status and may lead to misguided decisions.

Avoiding these common mistakes can set you on a successful path, enabling your startup to grow, thrive, and eventually, command a formidable presence in the market. It’s not an easy task, but with these guidelines in mind, you’re better equipped to navigate the challenges ahead.

1. Why Is A Traditional Business Plan Important For A New Business?

You know that feeling when you embark on a road trip without a map? It’s a blend of excitement and anxiety, right? Well, launching a new business without a traditional business plan is pretty much the same. It’s like sailing a ship with no compass or map.

The business plan serves as your guiding star, illuminating your path forward. It outlines your mission, vision, goals, and how you plan to achieve them. It’s your secret recipe for success, the blueprint for your entrepreneurial journey.

2. What Are The Key Elements Of A Traditional Business Plan?

Think of a business plan as a puzzle, made up of several key pieces that come together to create a complete picture. These pieces include the  executive summary  (think of it as your business’s elevator pitch), company description, market analysis (your business battlefield), organization and management structure (the captains of your ship), service or product line (the bread and butter of your venture), marketing and sales strategy (your business megaphone), and financial projections (the treasure you’re after). When these pieces fall into place, you get a clear image of your business’s future.

3. How Can I Make My Business Plan Stand Out?

You know the feeling when you’re trying to bake a cake for the first time? You can follow the recipe to the letter, but it might not turn out as you hoped. The same goes for a business plan. Using a  business plan template  can be helpful, but adding your unique flavor makes all the difference. Personalize it, and infuse it with your passion and vision. Use engaging anecdotes to highlight your experiences and lessons learned. It’s like telling a captivating story about your business, leaving everyone eager for the next chapter.

4. How Often Should I Update My Business Plan?

A business plan isn’t a “set it and forget it” type of deal. It’s a living document that evolves with your business. Like a gardener tending to his plants, you must regularly nurture and adjust your plan.  

Wrapping Up

In conclusion, crafting a comprehensive and effective business plan is crucial for any venture’s success. By outlining your vision, objectives, target market, competitive analysis, organizational structure, and financial projections, you can attract investors and provide a roadmap for growth.

Remember to keep the plan concise, realistic, and adaptable, as it will evolve with your business. Continually reviewing and updating your plan will serve as a dynamic tool, guiding your business toward its ultimate goals and long-term success.

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About the author: Oran Yehiel

Oran Yehiel is the founder of Startup Geek, with an MBA specializing in financial management and a background in Deloitte. As a Certified Public Accountant and Digital Marketing Professional, he writes about venture capital, marketing, entrepreneurship, and more, bringing a wealth of experience to businesses seeking growth and success.

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2024 Basic Business Plan Template for Small Business Owners

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Simple and Basic Business Plan Template for Small Businesses

Antonio Del Cueto, CPA

April 5, 2024

Did you know that 42% of small businesses fail within the first four years ? The dream of starting your own venture can quickly turn sour without a roadmap for success. That's where a business plan comes in. This article introduces a comprehensive business plan template designed to dramatically increase your odds of becoming a thriving statistic .

Studies show that businesses with a well-defined plan are twice as likely to survive beyond the five-year mark . This template will guide you through crafting a document that outlines your goals, target market, financial projections, and competitive edge. By dedicating time to planning, you'll gain a clearer understanding of your business concept, identify potential roadblocks , and attract investors who believe in your vision. So, ditch the guesswork and unlock the power of planning.

Are you in the process of starting your own business? Download FREE our business plan template here.

What is a Basic Business Plan Template and Why Do You Need One?

A business plan template is a step-by-step guide that helps you create a plan for your business. It's like a map for your 2024 startup journey. This template shows you what to do first, next, and last. You need one because it helps you think about all the important parts of your business upfront.

Importance of Having a Business Plan Template

A business plan template is crucial. It helps you outline your value proposition, which is what makes your business special. It also makes sure you think about your potential investors. They want to see a clear plan before they give you money. Plus, a template helps you organize your thoughts and ideas in one place.

Key Sections of a Simple Business Plan Template

In a basic template , there are some key elements you can't skip. These include a company description that tells people what you do. You also need a marketing strategy to explain how you'll find customers. Don't forget about competitive analysis, which shows how you stack up against others. Finally, financial forecasts predict your money flow, and supporting documents back up everything you say.

How to Tailor a Business Plan Template for Your 2024 Startup

To customize a business plan for your startup, start with the high-level stuff. Add your unique company description and value proposition. Show how you're different to get a competitive advantage. Update the marketing strategy to fit today's world. Make sure your financial forecasts are fresh and include all costs and expected income. Add any new documents that support your plan.

Remember, a good business plan template guides you but doesn't limit you. Always include what makes your business shine and use the template to help you organize your great ideas.

Essential Components of a Startup Business Plan

Starting a new business? You’ll need a plan that shows what your business is about and how you plan to make it successful. Let's look at what makes up a good business plan.

Writing an Effective Executive Summary

The executive summary is like a quick snapshot of your business plan. It shows the big ideas of your plan in a short way. Even though it's the first thing in your plan, you might write it last. It should say what your business does, what you want to achieve, and why it's going to work. This part is super important because it’s what people read first to get an idea about your business.

Developing a Comprehensive Marketing Plan

Your marketing plan is all about how you’re going to tell people about your business and what you sell. It should talk about who might want to buy your stuff and how you plan to reach them. This part includes your plan of action for getting customers to notice you, like using social media or putting ads online. Knowing your customers and how to reach them helps your business grow.

Creating a Financial Projection for Your Small Business

This section is about the money. It guesses how much money you’ll make and spend. Financial projections help you see if your business can earn more money than it spends. It includes how much money you need upfront to start and keep running your business. This helps you and business partners see how your business might do in the future.

For anyone thinking about starting a business, these parts of a business plan are key. They help you write a business plan quickly and efficiently. With a good plan, you can support your business, get help from others, and have a clear roadmap to run your business.

Further Reading: What You Should Know About Small Business Accounting, Tax, And Bookkeeping Services

Tips for crafting a one-page business plan.

Creating a one-page business plan is like drawing a map that shows the way to success for your specific business. This short plan helps you focus on what's really important. It saves time and lets you get moving faster.

Benefits of Using a Lean Business Model

A lean business model is all about making things simple and focusing on what works. It helps you use resources wisely. Free templates for lean business plans help you organize your ideas without wasting time. It’s essential to be clear and straight to the point, so you don’t get lost in details.

Identifying Your Target Market in a One-Page Business Plan

Knowing who you’re selling to is key. Your one-page plan should clearly say who your customers are. You’ll need to research and use that info to make your marketing and sales work better. This part of your plan makes sure your business talks to the right people.

Streamlining Revenue Streams in a Lean Business Plan

A lean plan means having a clear idea of how you’ll make money. This part of the plan looks at different ways to bring in cash, from selling products to offering services. It’s about picking the best ways that fit your business and focusing on them for the next three to five years. Using a standard template, like one from Microsoft Word or free templates available online, can help you get this part right.

Utilizing Free Business Plan Templates: Pros and Cons

Using a free business plan template is like finding a treasure map that guides you to your business goals. Let’s see how these templates can be both helpful and challenging.

How a Free Business Plan Template Can Help Small Business Owners

A free simple business plan or a one-page business plan template can be a huge help. It gives you a clear outline of what to include, like your business needs, marketing and sales strategies, and financial data. Templates from sources like the Small Business Administration (SBA) or Shopify come with sections already set up for you. This makes it easier to organize your ideas and present them clearly. It’s essential for owners of specific businesses to have a roadmap. This way, you can build your business plan quickly and efficiently, focusing on elements of your plan that support your financial success. Free templates help you get started with little effort and no cost.

Exploring Sample Business Plans to Guide Your Business Planning Efforts

Looking at sample business plans can provide valuable insights. These examples show you different ways to format and write your plan. They cover various industries, giving you a peek at successful strategies and outcomes. By exploring these samples, you can learn tips for creating important sections like income statements , cash on hand, and even plans for intellectual property like patent filings. Whether you use a standard template from Microsoft Word or detailed guides for specific types of businesses, such as a limited liability company, these samples can inspire and guide you. They offer a comprehensive view of what a successful plan includes, from the table of contents to the final financial statements, helping you envision the path for your own business over three to five years.

Further Reading: Effective Balance Sheet Creation for Small Businesses: Simplified Templates and Guidelines

Key takeaways:.

• Summary : A quick explanation of your business idea, like telling a friend about a game plan.
• Market Analysis : Understanding who wants to buy what you're selling, similar to figuring out who loves chocolate ice cream.
• Product/Service : What you're selling or offering, like selling cool stickers or helping with homework.
• Marketing Plan : How you'll tell people about your business, like making posters for your lemonade stand.
• Financial Plan : Planning your money, figuring out how much you need to start, and how you'll earn more, like saving up for a new bike.

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40 Small Business Ideas You Can Do From Home

Do you dream of starting a business from home but have no idea what type of business to start? Oh, believe me, I've been there!

If you're interested in being the boss and calling the shots, here is a list of the best small business ideas you can easily run from home!

1. App Creator

If you have an idea for a smartphone app that makes life simpler or more enjoyable, becoming an app creator or developer may be the perfect small business idea for you! One mom that has found success as an app creator is Patti Rogers . She created the Rallyhood app to help organize community outreach and simplify communication between individuals in a group.

To start this business, you'll likely have to secure funding for your app development. As an app creator, you can earn money through ads, in-app purchases, or affiliate marketing once it's live.

2. Bake and Sell Dog Treats

It's estimated that pet owners spent $136.8 billion on their pets last year, with online shopping being the preferred method for purchasing pet supplies for millenials! If you want to cash in on this lucrative industry, consider starting your own gourmet dog treat business. My friend, Kristin Larsen, did this as a side gig for many years and easily earned $500-$1,000+ per month!

Today, she teaches others how to start their own dog treat businesses. If this sounds appealing, you can check out her free training here . Once you're on the page, click on the pink free training workshop button. You can also enroll in her course, which you can complete in as little as a weekend.

Are you known for your baked goods? Do you enjoy decorating cupcakes and cookies? Then maybe starting an at-home bakery business is your calling. With this sort of business, you'll need to secure the proper permits and licenses and figure out kitchen space, storage, and delivery logistics.

One woman that's found success as a baker is self-taught cake designer Jennifer Jacobs of the Wandering Whisk. Jennifer ran her cake-baking business for four years out of her home, but in 2019 she opened a brick-and-mortar location. If you think this is the ideal business for you, check out this post for more details.

There are so many reasons why I love blogging, such as you can write about any topic; there are multiple ways to monetize and market your business, you don't need a college degree, and it doesn't cost a lot of money to start. 

If you're interested in starting a blog, I have a free step-by-step tutorial  that walks you through the process. Once you have your blog up and you've written a few blog posts, you can make money with affiliate programs , direct ad sales, brand sponsorships, selling e-books, digital courses, printables, and so much more! According to  Financial Samurai , bloggers who have 100,000 page views per month can easily earn $1,000-$10,000 per month.

Of course, with blogging, there is a learning curve. You'll need to educate yourself on best blogging practices, like learning SEO (search engine optimization), how to diversify your income streams, and FTC rules for affiliate marketing and sponsorships. Even though there is a lot to learn with blogging, I'd argue it's one of the best online business ideas who people who enjoy writing and being creative.

5. Bookkeeper

If you're detail-oriented and love working with numbers, launching a virtual bookkeeping business may be your calling. Not only is bookkeeping lucrative ($60-$80 per hour), but it's also an in-demand service, as most business owners dread bookkeeping tasks, myself included. While bookkeeping itself is pretty straightforward, you will need to be familiar with bookkeeping software, how to get clients, and stand out from the crowd; this is where a bookkeeping course can come in handy.

The course I'm most familiar with and recommend is Bookkeeper Launch . More than 15,000 students have gone through this program, including Callie Sitek of the Radical Profits Club; you can read more about her entrepreneurial journey here .

6. Consulting Business

Not a new business idea by far, but it is an easy one to start. Take the expertise, knowledge, and skills that you already have to consult others in that area. For instance, if you worked as a social media manager before becoming a stay-at-home parent, take this expertise and pitch businesses that don't yet have an online social media presence. 

With consulting, you're helping businesses and individuals incorporate processes, strategies, and a plan for achieving their goals. Other consulting business ideas might be baby-proofing consults for new parents or organic lawn care consulting for the environmentally conscious. Take what you know, and start pitching your ideal clients. For a full blueprint on how to begin a consulting business from home, check out this article .

7. Copywriter

When I first heard of copywriters, I thought they were legal professionals that dealt with filling copyrights for books. That is not what they do!

Copywriters are skilled persuasive writers that write marketing promotions and advertising campaigns. While you can get a degree in business and marketing to become a copywriter, many copywriters that I know have taken online training courses and have become proficient at writing persuasive copy.

One such individual is Mindy McHorse , who left her project management job and pursued copywriting by taking a course through the American Writers & Artists Institute. According to Salary.com , an agency copywriter can expect to earn $63,711-$80,404 annually, but a freelance copywriter, especially one who writes copy that converts leads to sales, can make much more!

Both Mindy McHorse and Danny Margulies earn six figures a year running freelance copywriting businesses from home - be sure to check out their stories!

8. Course Creator

If you've succeeded in a particular area and people always ask you how you achieved your success, you may be the perfect candidate to create an online course. I know people who have created courses on how to choose a paint color, how to decorate your house, and how to stay on budget -- the topics are endless!

You can use video, audio, written, or a combination of the three formats to present your materials to students. There are lots of platforms that you can use to deliver your course content, from free sites like Skillshare and Udemy or paid platforms like Teachable , Kajabi , or Uscreen .

Now, let's talk about money. Some course creators earn an average of $0-$1,000 per month. Yet others, like Nick Stephenson , have made $130,208 with his first-course launch! According to data , 17.9% of creators using the Teachable platform for 15 months sold under $25,000, so you can make excellent money selling courses online!

9. Craft Seller

If you love creating handmade items, you can make a full-time income selling crafts on Etsy , Amazon Handmade , or Shopify. One such crafter that's found success in the crafting arena is Melanie from Simple Made Pretty . In 2014, Melanie started selling custom-made cards on Etsy, and because of her unique greeting card niche (she created anniversary cards for homeowners), she ended up doing exceptionally well. Today she earns a full-time income from selling crafts like printables, decals, SVG files , and party supplies on her Shopify store and crafting blog.

10. Customer Service Agency

If you would like to start your micro-call center business, Arise can help you achieve your goals. For a small startup fee, Arise will guide you through the steps of starting and running a call center business from home. With this opportunity, you can remain a solopreneur or expand and manage a team of call center agents. With Arise, you can choose to focus on retail, e-commerce, travel and hospitality, insurance, roadside assistance, healthcare, telecommunications, and more. The average costs for getting started with Arise are $280-$595.

11. Direct Seller

The direct sales industry has come a long way in the past ten years! Selling updated and premium products and expanding into a variety of niches, if you have the right personality for direct selling, this may be the perfect business idea for you!

For a nominal startup fee, you'll get everything you need to start selling products online and in person. One thing I love about direct sales is that you have other team members helping and cheering you on. With this sort of business model, you'll earn a commission (averaging 20-40%) on personal sales, and if you decide to build a team, you'll make even more.

Here are a few opportunities worth checking out:

• Cabi - clothing
• Noonday - fashion accessories
• Tastefully Simple - food

12. Dog Walking and Pet Sitting Business

One of the easiest home businesses to start is that of a dog walker or pet sitter. People are always needing qualified pet lovers to care for their pets while they are on vacation or working long days at the office. With this business idea, you don't even need a website to get started. Post a notification on your local neighborhood or Facebook group letting others know about your pet-watching services.

The types of pets you can watch and the services you can offer are diverse, and all depend on your preferences, availability, and skills. If you'd like to reach a further audience, you could post a cheap ad on Craigslist or use a third-party app like Rover or Wag! to connect with potential clients.

13. Event Planner

If you love planning, organizing, and executing events, becoming a home-based event planner  may be your calling. While most companies will want you to have training or experience in the hospitality industry, you can start your own event planning business without a degree or previous job experience. 

First, read up on the industry. Then see if you can plan a party for someone you know, either for free or at a discounted rate, to get some experience and a positive testimonial that you can use to promote your business. Start with smaller gigs like birthday parties and then work your way up to bigger events like weddings or corporate events. You can even specialize in an area, like decorating , and pitch other event planners with your service offerings.

14. Flea Market Flipper

Do you enjoy watching TV shows like Storage Wars, Auction Kings, and American Pickers? Think you'd be good at finding that diamond in the rough? If so, becoming a flea market or garage sale flipper or reseller may be your calling.

One couple that has found success in this industry is Melissa and Rob Stephenson . In 2016, they earned $130K, reselling used stuff on eBay. They search for items on OfferUp, flea markets, and even dumpsters for things that are cheaply priced (or free), and they clean them up and sell them for a profit.

15. Franchise Owner

You're already familiar with franchises like Starbucks and McDonald's, but did you know there are smaller, more affordable franchise opportunities that you can do from home? The great thing about franchises is that you get detailed training and instructions, making it easier to replicate the same successful business model. The downside of franchise opportunities is that they often have steep startup costs and recurring fees. If you're curious about this business model, here are some home-based franchise opportunities to check out.

• Club Z - tutoring
• Cruise Planners - travel
• Elite Teepees - children's sleepover parties
• Fit 4 Mom - fitness
• Neat Method - organizing

16. Freelance Writer

If you've got a way with words, there are many ways in which you can make a good living as a freelance writer . From copywriting and grant writing to ghostwriting, resume writing, and writing articles online, there are a ton of opportunities for people who can eloquently string words together.

Here are some places where you can apply, pitch, and bid on freelance gigs:

17. Graphic Designer

You don't have to go to design school to be a graphic designer ; in fact, I know many self-taught designers who run successful businesses from home. Even if you don't know how to use Photoshop , you can create simple graphics using Canva or PicMonkey. Depending on your skill level and the types of projects you work on, graphic designers can earn anywhere from $35,430-$100,920 per year.

18. Influencer

If you love creating content for TikTok, Instagram, or YouTube , becoming an influencer may be your calling. The great thing about this small business idea is all you really need is a smartphone with a good camera and the time to create eye-catching content.

As your audience grows, you can make money through paid sponsorships , ad revenue, and affiliate marketing. Once you have some money coming in, set up a blog to expand your web presence and earnings. One person who has found major success in making millions as an influencer is Judy Travis , who creates parenting content and beauty reviews on her YouTube channel.

19. Inventor

If you can create a product or service that solves a problem, you can make excellent money as an inventor!

One of the most well-known female inventors of our time is Sara Blakely , the creator, and founder of Spanx. If you're not familiar with Sara's story -- she needed a smoothing undergarment to go under some white pants she was wearing to a party but didn't have anything that fit the bill. So, she cut up some control-top pantyhose to solve her problem. This one moment started the whole Spanx revolution. Today Spanx makes slimming undergarments, leggings, and clothing for women and men and generates an estimated $400 million a year!

20. Life Coach 

If you enjoy helping other people achieve their life ambitions, starting your own business as a life coach might be just the thing for you. Most coaches, whether a life, business, career, health or another specialty, enroll in some sort of online training. iPEC offers certificate training programs in life, executive, health and wellness, and sports and performance coaching. This is a good small business idea for people who are empathic and enjoy helping others. 

One lifestyle entrepreneur coach who has had massive success is  Jessica Nazarali . She started a blog and an online health food shop that she worked as a side gig on nights and weekends. This side gig quickly took off, and people started approaching her on how to do the same. Jessica eventually quit her day job, sold her business, and started coaching other lifestyle entrepreneurs on how to be successful. Today, she earns seven figures a year, mentoring others!

With coaching, you can work anywhere in the world, as long as you have a computer and internet connection. With platforms like Zoom, it's never been easier to run a virtual coaching business from home!

21. Lip Gloss Maker and Seller

OK, I'll admit it, I have a small lip gloss addiction. Right now, in my purse, I have eight tubes of lip gloss. It turns out I'm not the only one who enjoys a good tinted or plumping gloss; according to  Grand View Research , Americans spent 1.98 billion dollars on lip care products in 2020. If you love makeup, becoming a lip gloss maker and seller is a fun way to start your own business. 

Honestly, I had never thought about this business idea until I came across an entrepreneur ( Kiki Quesada ) on TikTok who films her lip gloss business-making activities. With over 1.7 million followers on TikTok, she's constantly running out of products to sell. I'd say she's doing pretty well with her lip gloss business! For more info on starting this kind of business, check out  this post.

22. Membership Business

This is a good business idea for people with expertise in a specific area; start a membership business! With platforms like Patreon and Podia, it has never been simpler to generate recurring income with a membership business. 

First, decide what you're going to provide for monthly members; it could be meal plans, a newsletter , templates, job leads, training in a subject like freelance writing, music, and on and on. Once you decided on what you'll deliver each month, choose a platform to deliver your content and set up your payment options. Then get the word out about your business on sites like Facebook, Twitter, LinkedIn, Instagram, and more. 

Carol Tice, the brains behind the Freelance Writers Den, offers a monthly membership to freelance writers. With this $40-a-month membership, members get 300+ hours of training, a forum, live Q&A sessions, and more. Talk about a lucrative business; the last time I spoke to Carol, she was making $300K a year just from her membership income.

Go to this post , for more tips, on starting a membership business.

23. Online Tutoring Business

If you have expertise in a subject like math or you're bilingual, you can make good money as an online tutor . With this small business idea, you can reach out to neighbors, friends, and family letting them know about your online tutoring services. You can also get the word out on sites like Facebook, LinkedIn, and Nextdoor. Having a website is a good option for showcasing your credentials and listing your hours, prices, and policies. 

Adrianne Meldrum left her full-time job as a teacher to become a stay-at-home mom. But after a year of full-time mom duty, she felt the need to exercise her brain. With a suggestion from her sister, she launched a small home tutoring business. Today, she runs a tutoring agency from home called Made for Math. If you'd like to learn more about starting a tutoring business from home, check out her interview , it has lots of great tips.

24. Personal Concierge

Would you enjoy managing a client's personal affairs? As a personal concierge , sometimes called a personal assistant, you'll help people tackle their personal to-do lists. Some common tasks may include running errands, making appointments, paying bills, booking travel, and picking out gifts.

According to Forbes , a personal concierge can expect to make $40,000-$60,000 annually, depending on the number of clients and the types of services you offer. The great thing about this small business idea is that it doesn't require any special knowledge or skills to get started.

25. Personal Trainer

Becoming a fitness instructor is an easy way to share your love of fitness with others while making an income from home. If you don't have a college degree in kinesiology or exercise science, you can train online to become a personal trainer in almost any discipline.

I recently did a 200-hour yoga teacher training online, and it only took four months to complete. Once you have the proper skills, start getting more comfortable as an instructor by offering free classes to your friends and family. Once you've built up your confidence, you can teach group classes online via Zoom; you can sub for other instructors and even teach private lessons.

26. Photographer

Do you have an eye for lighting and composition? Do you enjoy snapping photos of the world around you? If so, you can start a photography business from home! Depending on your interests, you can specialize in various niches such as drone photos , pets, nature, flat lays, feet , family, newborns, fashion bloggers, and stock photos; the opportunities are endless!

One photographer I know purchased a $5 ad on Craigslist and landed $2,700 in business in just one month! You can read the exact steps she took here to achieve this success level using Craigslist.

27. Professional Organizer

If you get a sense of accomplishment from organizing, decluttering, and tidying, becoming a professional organizer may be your calling. You may already possess natural organizing skills, but if you need some help in turning this passion into a business, some professional training from the National Association of Productivity and Organizing Professionals ( NAPO ) or Marie Kondo can quickly get you up to speed. According to this Forbes article , professional organizers can earn around $30-$130 per hour!

28. Proofreader

Do spelling and grammar errors drive you bonkers? Then perhaps starting a proofreading business from home is your calling. As a proofreader, you can help authors, bloggers, writers, and small business owners proof their documents and articles for critical errors. Having an English or journalism degree can help establish you as an expert, or you can take a proofreading course like Proofread Anywhere , which will teach you proofreading and business-building skills.

29. Publishing Business

If starting a blog from scratch sounds daunting, consider joining one of the many local publishing companies that offer a blog-in-a-box business opportunity. With these companies, you'll purchase the rights to a specific geographical area, and you'll get a website and training on how to run your publishing business. Some companies split advertising commission 50/50, and with others, you get 100% of the advertising commission, but you have recurring fees.

If this sounds appealing, here are some companies to check out:

• City Mom Collective
• Living on the Cheap
• Macaroni Kid

30. Purchase an Existing Business

Not sure which type of business to start, but you like the idea of a turn-key-ready operation? Perhaps purchasing an established business is your path to entrepreneurship. Take a look at online business marketplaces like Flippa , Niche Investor , and Digital Exits . On these sites, you can view the cost of the business, how much revenue it generates, and other pertinent factors. For some great tips on buying an established business, check out this interview with Lisa Stein .

31. Resume Writer

Have you worked in HR or been a recruiter? Do you know what makes a resume stand out from the crowd? And, of course, do you enjoy writing? If so, use your passion and inside knowledge and spin it into a home-based resume-writing business! According to this post , resume writers can earn an average of $62,170 per year. You can also offer career and interview coaching, cover, and thank you letter services to expand your offerings and increase your earnings.

32. Sell Printables

Are you a pen-and-paper fanatic? Do you love to create invitations, daily schedules, or custom gift tags? If so, turn your passion into a profit by creating and selling printables from home ! Two people who've found success in this arena are Julie Berninger and Cody Berman of Gold City Ventures. Julie has made thousands of dollars selling bachelorette party printables on Etsy, and Cody has created a successful side hustle selling kitchen jar labels, coloring pages, and cleaning binders!

33. Social Media Manager

Do you know how to create social media posts that generate a lot of views and likes? If so, starting a social media business from home could be your calling. The types of services you offer and the platforms you manage will depend on your expertise. Whether it's setting up new accounts, creating videos for TikTok or YouTube, or managing advertising campaigns on Facebook or Pinterest. While you can work as a generalist, I highly suggest choosing a niche. One course that can help you launch a Pinterest social media business is Become Pinterest VA Today. In this course, you'll learn both Pinterest skills and business-building skills so that you can help clients manage their Pinterest accounts.

34. T-Shirt Seller

Another great business idea is designing and selling T-shirts , coffee mugs, tote bags, sweatshirts, and hoodies online. With the print-on-demand (POD) economy, it's never been easier or more affordable to start this kind of online business. 

To begin, choose which POD platform you'd like to use ( Spring , Spreadshirt , and Redbubble are good for beginners), and start adding your designs, logos, or catchy phrases to items. Next, you'll price your items and then promote the listings online.

A few nice things about POD companies are most are free to get started, and you don't have to worry about inventory or fulfillment, as they print the item on demand and ship it directly to your customer. The company will then take its cut of the profit and cost of supplies, and what's left is yours to keep.

35. Translator 

Are you fluent in more than one language? If so, take your bilingual skills and open a freelance translation service business! With this small business idea, you can apply for freelance translation gigs, or you can build your website and find your own clients, taking 100% of the profits from your work. Or maybe you want to think bigger and build your own translation agency, hiring other bilingual individuals to do the translation work. Of course, you have other options to explore as well, such as language tutoring, offering interpreter services, or even captioning services.

36. Travel Agent

Do you love searching the web for the best travel deals and unique places to visit? If this is your idea of fun, starting a home-based travel business may be your calling. According to this post , travel agents can earn $50K-$100K per year on the low end, and on the high end, $250K-$500K per year!

Pick a traveling niche that you're passionate about, such as Disney , cruises , family, adventure, or luxury travel, and either start an agency from scratch or find a hosting company or franchise to join.

37. UGC Creator

If you enjoy creating videos and filming unboxings, reviews, and other forms of user-generated content, you can make good money with this new type of business venture.

The nice thing about being a UGC creator is that you don't need a large following on your social media accounts. This is because the companies you work with will take your content and license it for their social media platforms. Essentially, you are creating content and ads for companies and not trying to influence your audience to take an action or make a purchase. 

To get started as a UGC creator, launch your social media accounts (TikTok, Instagram, Pinterest, YouTube, and Facebook) and start creating content. Your content should reflect your video and editing abilities, the types of products and brands you'd like to work with, and the style of your work. Once you have some content on your platforms to showcase your skills, you can either begin pitching brands or sign up with companies that match brands and UGC creators. This post has a list of companies you can sign up with and more details on launching this small business idea from home.

38. Vending Machine Business

This next business idea is going to take a little capital upfront, but it can be an excellent way to earn passive income. Starting a vending machine business will require you to purchase the machine and snacks or drinks, but once it's all set up, you'll watch the money roll in without doing much work. According to  this article , one machine can generate $75-$650 a month. To make this a truly profitable business idea, most vending machine owners purchase multiple machines increasing their monthly earnings. 

While a new vending machine will likely cost you $3,000 or more, you can find used machines for $200 on up. Of course, this business idea will require you to leave the house to fill your machines and shop for bulk supplies. But if that doesn't bother you, this might be an excellent home-based business to start.

39. Virtual Assistant

If you're detail-oriented and organized and enjoy working on a variety of professional tasks, this next small business idea might be your calling. Many small business owners, including real estate agents, bloggers, influencers, legal firms, and authors, need extra hands to help them with administrative tasks .

The jobs you'll perform will be based on your experience, skills, and expertise but could include editing, writing, research, design, data entry, or managing calendars and email. The more complex the tasks, the more money you can charge. Be sure to check out this post , where nine virtual assistants share their highest-earning services.

40. Voice Actor

Do people tell you that you have a great voice? If so, you can make good money as a voice actor ! One woman that has found success in narrating audiobooks from home is Julie Eickhoff. She started in 2011, and since then, she's recorded over 100 audiobooks, and she's an Audible-approved producer. Go here to learn more about recording audiobooks for cash .

Launch Your Small Business Idea

Out of this list of home-based business ideas, did you find one that suits your personality? Great, here are some common next steps to starting your small business.

1. Get the Proper Training

If you don't already possess the skills needed to perform the task at hand, you'll need to educate yourself on both skill-building and business-building skills. If you're taking a course , ensure that it covers both of these aspects so that once you master the skill, you can get your business up and running quickly.

2. Write a Business Plan

Every business, no matter how big or how small, should start by writing a business plan. Writing a business plan will help ensure that you have all of your bases covered, and it will help you think through all the next logical steps to take. Not sure how to get started? No problem! Grab our free business plan template here .

3. Get the Right Tools

As a new business owner, you'll need to invest in the right tools to get the job done. At a bare minimum. you'll need a computer, a high-speed internet connection, a way to accept payments, and, more than likely, a website. 

A website allows you to showcase your expertise, your service offerings, rates, testimonials, and more. 

Here are some pages you'll need to include: 

• Contact information
• Services or products
• Testimonials
• Privacy policy

There are so many easy-to-use and affordable options for building your website, and  this post  can help you determine which platform or online marketplace s right for you.

4. Market Your Small Business

I don't know who said,  build it, and they'll come , but I doubt that they ever started a business. 

Once your business is up and running, you'll need to get the word about it, meaning you'll need to choose 2-3 marketing methods and block out time in your schedule each day for promoting your business. You can choose to get the word out by: 

• Attend networking events
• Bid on freelance gigs
• Cold calling
• Email marketing
• Pitching clients via email
• Social media
• Use Facebook groups

Be Your Own Boss With These Small Business Ideas

Sometimes, the most challenging part about starting a business is figuring out which type of business to start. But with some exploration of your skills, passions, personality type, and familial obligations, this list of best business ideas should spark some ideas that will be perfect for your situation.

Looking for more profitable business ideas? Here is a list of service-based ideas and creative business ideas !

Holly Reisem Hanna is the Founder and Publisher of the award-winning career website  The Work at Home Woman.

How one millennial quit a corporate job, became self-employed, and set himself up financially to start a small business

• In 2017, Paul Millerd left his high-paying consulting job to work for himself.
• He set himself up financially by saving a 12-month cash runway and negotiating a gradual transition.
• This article is part of " Unlocking Small Business Success ," a series providing micro businesses with a road map to growth.

In 2017, Paul Millerd walked away from a six-figure consulting salary.

The decision also meant paying back his full $24,000 sign-on bonus to his previous employer, he said.

"It wasn't this cliché of, 'I'm going to boldly quit my job and run into the sunset and bet on myself,'" the 39-year-old solopreneur and author of " The Pathless Path " told Business Insider. "It was more of an exasperated only-option-left mindset. I wasn't loving my job. I was working with a boss that I wasn't getting along with."

Since graduating from college, Millerd had worked for five companies, convinced every move was "the final stop" but finding himself right where he found himself in 2017: burned out and looking for a different consulting gig.

It was time to try something new, but he wasn't sure what. He shared the steps he took that set him up to leave corporate America and exchange a comfortable paycheck for the unknown.

1. He had a 12-month cash runway

Millerd had about $50,000 in savings after paying back his bonus. It was enough to sustain him for roughly a year, according to back-of-the-envelope math.

He wouldn't necessarily have felt comfortable quitting without the cash cushion. "As soon as I calculated I could live a minimal life on 50 grand a year, I was out of there," he said, adding that he didn't always have savings. Business school "wiped out" what little he'd saved early on in his career and left him with about $70,000 in student-loan debt.

"As soon as that savings account built up, I became a little bolder in terms of taking risks," he said. "It was like, this is some potential freedom to try different things."

2. He negotiated a gradual transition with his company

Millerd didn't give two weeks' notice or leave immediately.

"I negotiated to stay on and train some people," he said. "I really had no plan, so I needed at least a couple of months."

If anything, he stayed "a month or a month and a half too long," he added, but it gave him time to prepare for his next chapter and think about what freelancing would look like.

"I set up my LLC," he said. "I started networking . I reached out to some small consulting firms to see if they needed contractors. I reached out to friends in business school. I built a website. I did some writing."

The networking paid off: It was at a business-school reunion that he landed his first freelance gig after reconnecting with one of his former professors who was looking for consulting work.

3. He lowered his expenses and funded a cheaper life through freelance projects

After leaving his firm in May 2017, the "first phase" of working for himself, as Millerd described it, was: "Get paid; lower costs."

He became a more conscious spender, he said: "A lot of people start with, 'Here's what I make; here's what I budget and spend.' I flipped this equation in my head. For me, it was, 'Everything I spend, I need to earn 30% more than that because of taxes.' So if I'm going to go out for ramen and it costs $20 in New York, that's going to cost me $26. I need to earn the $26."

It helped that he temporarily moved to Boston for his first freelance gig in late 2017. He sublet his New York City apartment, moved in with roommates in Boston, and "really simplified my life," he said, adding that he cut his cost of living from about $6,500 a month to $3,500 a month.

An early money mindset he adopted was "buying time" by living on as little as possible, Millerd, who moved to Taiwan in 2019 and decreased his expenses even more, said. The less he spent, the longer his runway would last.

"If you're spending $1,000 a month, you can buy six months for $6,000," he said. "That was the mode I was in from years two to three."

Lowering costs takes some of the earning pressure off, but it helps to have income coming in even if you have a cash runway.

"I think the smoothest transitions are what I did: Go from full-time work to freelance work, which is essentially doing full-time work, but you're just doing it in a more flexible contract way," said Millerd, who encourages aspiring entrepreneurs to start asking their employers about flexible, part-time work. "Go to your company and say, 'I don't want to quit. Would you be open to a pitch of me turning this into a four-day-a-week job? Could I do three days a week? Here's what I want to do. Here's how much I charge for this.'"

If your manager doesn't want to lose you, they may be more open than you think to part-time work, he said.

4. He had a 'break the glass' plan

In a worst-case scenario, if he drained his savings and couldn't land any freelance gigs, Millerd always knew he could find a way to make money.

Since leaving corporate America in 2017, his revenue streams have included freelance consulting, coaching , online course sales, book sales, and affiliate marketing.

If he never figured out how to make money working for himself , "there was always the sense that I had the capability of breaking glass in case of emergency," he said, adding: "I'm creative enough to figure out how to make money. I can go work at a restaurant. I'll take any job if I need to. Especially now with a kid, I don't have an ego when it comes to taking care of my family."

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California fast-food workers will get $20 minimum wage, starting Monday

Vanessa Romo

Alina Selyukh

A McDonald's worker hands food to a customer at a drive-thru window in Los Angeles, on Sept. 28. Damian Dovarganes/AP hide caption

A McDonald's worker hands food to a customer at a drive-thru window in Los Angeles, on Sept. 28.

California fast-food workers cooking Big Macs or whipping Frappuccinos will start making a minimum wage of $20 an hour on Monday. For many, this means a 25% raise.

The new state minimum uniquely focuses on a particular segment, fast food, affecting some of the country's biggest chains, including McDonald's, Starbucks, Subway and Pizza Hut.

It's a big win for cooks, cashiers and other fast-food workers – some of the lowest-paid jobs in the U.S. – whose wages have been growing at a faster clip since the pandemic, after decades of stagnation.

California is one of the country's most expensive states; about half a million people are estimated to work in fast food here, mostly women, immigrants and people of color. Many live below the poverty line.

Uber and Lyft threaten to halt operations in Minneapolis over minimum wage law

Sandra Jauregui from Sacramento is counting down the days to her first bigger paycheck in two weeks. After 18 years working at several Jack in the Box franchises, her pay will jump from $17.50 to $20. That means she could be bringing home another $120 each paycheck.

"It's super great," says Jauregui, 52, speaking in Spanish. "At the very least it'll give me some breathing room ... and make it easier to pay the rent and other bills."

Chipotle, McDonald's warn of price hikes, less work

But the dramatic pay raise has also touched off a heated debate about the impact on local businesses. Smaller franchise restaurant owners warn they'll have to raise prices, reduce worker's hours, cut jobs or even close shop.

California's pay hike is a result of a contentious deal struck by labor leaders, including the large Service Employees International Union, and fast-food companies last year. The new wage law applies to fast-food chains with at least 60 locations nationwide, with exemptions for some bakeries and smaller fast-food outposts inside grocery stores, airports and other venues.

Several fast-food executives have suggested prices would go up 2.5% to 3.5% to offset higher wages; Jack in the Box, Starbucks, McDonald's and Chipotle have all warned of upcoming price hikes. That's on top of price increases many restaurants have been rolling out for months. The cost of eating out has stubbornly inched higher even as inflation has cooled elsewhere .

Other chains plan to speed up their use of automation, including kiosks and robots. A major Pizza Hut franchisee cited the wage hike as the reason for layoffs of more than 1,000 delivery drivers this year, in a switch to apps like Uber Eats and DoorDash that pushes more delivery fees onto shoppers.

One big Pizza Hut franchisee in California cited the upcoming wage hike as a reason for laying off more than 1,000 delivery drivers in a shift to delivery apps like Uber Eats and DoorDash. Justin Sullivan/Getty Images hide caption

One big Pizza Hut franchisee in California cited the upcoming wage hike as a reason for laying off more than 1,000 delivery drivers in a shift to delivery apps like Uber Eats and DoorDash.

Franchisees weigh cuts to workers' hours

Many restaurant owners expect workers to be working fewer hours. That was the main side-effect a decade ago, when Seattle hiked its minimum wage to $15, research suggests .

"I am used to being a champion of labor and I'm in this odd position," says Michaela Mendelsohn, a longtime advocate for LGBT workers and also owner of six El Pollo Loco restaurants with about 170 employees.

Her restaurants lost shoppers after a pre-emptive price increase in February, she says. Now, the focus is on cutting costs by simplifying operations, changing how long it takes workers to make sauces, for example, or to close up for the night.

Minimum-wage workers in 22 states will be getting raises on Jan. 1

"We're having to get more efficient," Mendelsohn says. "So really what's left is ... to reduce labor hours. And I hate saying that."

In recent years, the battle for higher minimum wages has increasingly played out at the city, county and state levels as the federal minimum wallows at $7.25 an hour .

Broadly, California often sets the bar for many business decisions that other states later follow. Advocates hope something similar will happen with fast-food pay – spreading to other industries in the state and across the country.

California's minimum previously rose to $16 an hour on Jan. 1.

Workers are thrilled, but also anxious

Employers' warnings have left many workers with mixed feelings about the raise, despite the potential for extra spending power.

The Jack in the Box worker Jauregui, 52, has been cobbling together two salaries, working about 54 hours a week between the restaurant and a laundromat.

She says she's always trying to save a bit to treat her grandchildren – she has custody of three of them – who are constantly growing out of clothes and shoes. And although she marched alongside fellow SEIU members to win the wage increase, she is fearful of the downside.

These millionaires want to tax the rich, and they're lobbying working-class voters

"My boss told me that he won't reduce my hours but that he will cut others' hours," Jauregui said.

All this makes California's wage hike a high-profile case study for how exactly a higher minimum wage reverberates through the local economy.

"This policy is going to be really different in different parts of California," says Jacob Vigdor, professor of public policy and governance at the University of Washington, who has studied the effects of Seattle's 2014 minimum wage hike.

The research found that after the minimum wage rose from $9.47 to $13 – in the early years of the Fight For $15 labor campaign – workers generally didn't lose jobs even though they did lose hours. And they ended up with higher pay.

"The restaurant business is a really tough business," Vigdor says. "Restaurants open and close all the time, even in places where the minimum wage hasn't changed for more than a decade. ... Generally speaking, we found that in the restaurant industry, businesses were able to find ways to adapt to higher wage costs."

KQED's Farida Jhabvala Romero contributed to this report.

• fast food workers
• minimum wage