to make your business plan stand out you must

10 Proven Ways to Make Your Business Stand Out From Competitors

If you’re a business owner, you’ve undoubtedly heard the statistics around business failure rates.

Only 50 percent of businesses make it past the first five years and one-third make it past the 10-year mark.

Although there are plenty of reasons why businesses fail , lack of differentiation is one that often tops the list.

Why it’s Important to Stand Out in Business

Standing out from your competition is critical to your company’s success. While most people understand that concept, far too many businesses fail to put it into practice.

Case in point: a few years ago, saw an advertisement for a Nashville tattoo parlor with the following message:

“We specialize in all types of tattoos”

It made me shake my head. What does this even mean? What kind of tattoos do they design?

I find it hard to believe that they can create every kind of tattoo well. And, it makes it difficult to know why I should choose this company. To say you specialize in everything goes against the very idea of specialization. After all, to specialize means you’re focusing on one particular area of practice.

Had they said they specialize in traditional Japanese tattoo design, then I would have a much better understanding of what they can do.

Sadly, many businesses fall into this trap. They think they must serve everyone, be broad in focus or keep up with the Joneses , lest they miss out on revenue opportunities.

However, the exact opposite is true.

If you want to be successful, you have to differentiate your business if you want to stand out and get noticed. Otherwise, you end up looking like everyone else and you make it that much harder for people to know when to choose your company.

How to Stand Out From Your Competition

If you’re not sure how to differentiate your business, you’re in the right place.

Today, I will give you 10 ideas on how to stand out from the competition along with fantastic examples of companies that are doing it well.

Let’s dive in.

1. Deliver extraordinary customer service.

Plenty of businesses claim their customer service is what makes them different. However, just saying that is not enough. You have to deliver an extraordinary customer service experience that you can’t get anywhere else.

For instance, look at Fleet Feet . They custom fit your running shoes. They watch how you walk or run and recommend the proper shoe depending on how you pronate . They even allow you to run in the parking lot to see how they fit and feel. On top of that, they will let you return the shoe weeks or months later if they don’t work out.

One pair they sold me ended up giving me trouble after few weeks. Even though I had logged dozens of runs in them already, they refunded my money and helped me select the proper pair.

After that experience, why would I buy my shoes anywhere else?

Think about how you can offer extremely extraordinary service that goes far beyond what your competitors are doing. And, if you’re looking for additional examples, Nordstrom is another company that is known for delivering legendary customer service .

2. Address customer pain points.

If you want to win customers over, a great way to do that is to alleviate their pain. Let me give you a great example of this in action.

If you’re like most people, you don’t particularly enjoy going to the dentist. The lights, the smells and the sound of drills don’t make for a pleasant experience. That’s why many people avoid going to the dentist altogether.

Dental Bliss wanted to change that perception and address this problem head on. That’s why they created a dental practice with a spa-like atmosphere.

Patients can enjoy refreshments (including wine!) and get a massage while they wait for their appointment. And while patients are getting treated, they can wear noise-cancelling headphones so they don’t have to hear the sound of the dental tools.

This dental practice has gone to great lengths to remove all of the barriers and common pain points to create an experience that is completely different than any other dentist you will find.

Think about how you can solve a common problem for your customers and you’re sure to stand out.  

3. Do business differently than your competitors.

If you want to stand out from your competitors, it pays to do business differently than they do. Finding and exploiting holes in their business model is a great way to set your company apart.

Direct-to-consumer brands, such as Warby Parker or Dollar Shave Club, are great examples of this. They found ways to disrupt the supply chain to bring quality products to consumers at a lower price.

They decided to go against the grain and upend the industry standard. And it has paid off.

But you don’t have to be a large product brand to do this. Take a look at our client,  Encircle Acupuncture , for example.

Their founder, Alexa Hulsey, was frustrated because many of her patients and friends couldn’t get treated as often as they needed. So she transformed the practice in order to treat patients in a community setting. They even adopted a sliding scale payment model so patients only pay what they can afford.

Since opening 10 years ago, they have expanded to a second location and have treated thousands of patients throughout Nashville. They are now the largest acupuncture practice in the Nashville area.

Daring to deliver your product or service differently can pay off in dividends. How can you do the same thing?

4. Focus on a narrow niche.

When you try to serve everyone, you serve no one. This is especially true with service-based businesses.

Adapting your model or approach for a wide variety of businesses is not cost effective for your business and it makes it harder for people to know if your company is a right fit.

Remember the tattoo parlor above? That is a great example of what NOT to do.

A great way to stand out is to narrowly define whom you serve. For instance, CJ Advertising only serves personal injury law firms across the United States. Because of that, it makes it very simple for a law firm to know if they would be a good fit for their company.

5. Create a powerful offer or guarantee.

Guarantees are a great way to reduce the perceived risk of buying your product or service. Eliminating the hesitation for making a purchase can lead to more sales.

Plus, a guarantee can also make your company seem more trustworthy and likable.

For instance, Zappos is famous for their year-long return policy . It reduces the barriers to buy their shoes because you can take an entire year to decide whether you want to keep the shoes. Not to mention, shipping is free both ways.

We also worked with a law firm client that guaranteed that every phone call or email was returned within 24 hours. If you’ve struggled with law firm responsiveness in the past, this would be a great reason to contact them.

Other ideas include guaranteeing product satisfaction, service experience or results. What could you guarantee that your competitors don’t?

6. Create a memorable culture.

Creating an amazing company culture cannot only help you attract and keep top talent, but it can be a powerful marketing tool as well.

Take Rustici Software, for example.

They have built an incredible benefits program, called Jenafits , named after their company concierge, Jena. She handles everything from laundry and cleaning services to booking flights and restaurant reservations for employees. It’s her job to make life easier for the team so they can focus on doing excellent work.

If that weren’t enough, they don’t track vacation days and when they are at work, they focus on having a lot of fun, which includes everything from Ping-Pong and dodge ball.

As a result, they’ve been named one of Nashville’s Best Places to Work 12 years in a row . Not to mention, they’ve scored tons of press for their innovative approach.

It might seem that a great culture only benefits employees. But studies show that happier employees lead to increased sales and better productivity .

What can you do to make your company a place that people want to go on Monday mornings?

7. Create a cause marketing effort.

Showing that you are a social responsibility and ethical brand is another way to stand out, while also doing some good. You can do this through a cause marketing effort or campaign .

Cause marketing can take a couple of different forms. One way to do this is through giving campaigns or partnerships with non-profits. You’ve most likely seen this with organizations that support breast cancer awareness organizations or St. Jude’s Hospital, for example.

Another cause marketing approach is to use your voice to promote a social cause.

One of the most well-known examples of this is Dove’s real beauty campaign . Through their marketing, Dove is trying to eliminate unattainable beauty standards and promote self-esteem and body confidence in women and girls.

If you’ve seen any of these ads from Dove, you’ll notice that they don’t feature their products at all. Instead, Dove uses these ads to change the narrative when it comes to beauty.

Here’s one that I always found to be powerful .

Even without featuring products in their ads, Dove’s sales jumped from $2.4 Billion to $4Billion during the 10-year span of the campaign.

Ben & Jerry’s is another example of a brand that takes cause marketing seriously. They have adopted a number of causes ––criminal justice reform, racial justice, voting rights, climate change and more––that align with their values .

Not only do they create campaigns to encourage action on these issues, but they also create ice cream flavors to support the message. For instance, a portion of the proceeds from sales of their Justice ReMix’d ice cream  goes to the Advancement Project National Office to support their Free & Safe campaign.

Is there a cause you’re passionate about? Create a program to support that cause at your company.

It doesn’t have to be on the scale of these large brands. But attaching your business to a cause can be another way to attract customers who share your values.

8. Become a social business.

If you want to take your social responsibility to the next level, you could take your efforts one step further to become a social business .

There are more and more companies cropping up that have this kind of approach.

One of the most well known examples is TOMS, the shoe company known for their One for One effort that helps one person in need with every pair of shoes you buy.

Now, there are a number of brands that have adopted a similar one-for-one model, such as Bombas , which donates socks to homeless shelters and FIGS , which donates scrubs to resource-poor countries.

But you don’t have to adopt the one-for-one model to become a social business. Other ways to approach this is to focus providing living wages and reinvesting in the community.

31 Bits is such company. They work with women in Uganda to make fashionable, paper jewelry. They sell the jewelry online and the proceeds help fund healthy education, business training and counseling for their artisans in Uganda.

Nisolo does this with shoes. Not only do they focus on sustainability, their shoes are also ethically produced in factories in Mexico and Peru that provide living wages, healthcare and a healthy work environment.

This kind of approach might mean making a dramatic shift in your entire business model, but these businesses stand out because they are not just another company that sells shoes, socks or jewelry. They are making a positive impact on the world with every sale.

Can you change the world with your work?

9. Be quirky and weird.

Several years ago, the post office returned a Christmas card that I had attempted to send Ryan Hanley in December. I had the wrong address, but it took them six months to send it back to me.

Instead of throwing the card in the trash, I went ahead and sent it to Ryan and laughed about sending a Christmas card in June.

Was it quirky and weird? Yes.

But, that’s exactly why Ryan loved it. He shared it on his Facebook profile and tweeted about it. Doing something out of the ordinary made it stand out.

New strategy… @jr_sci @lauraclick pic.twitter.com/x3nJJmszOR – Ryan Hanley (@RyanHanley_Com) June 29, 2015

So, how can you do something that goes against conventional wisdom?

Maybe that means sending Christmas cards in June. Or, creating silly dance videos . Or, sending GIF-filled, hashtag-laden emails.

Embrace your weirdness as a company . It might be the very reason why people love you.

10. Surprise and delight your customers.

I always love the story that John Janstch shares about a coat his wife purchased at REI.

When she first wore the coat, she slipped her hand in the pocket and found a piece of paper. But, instead of showing the inspection number or some other product information, the slip of paper said, “You are a goddess!”

That tiny, thoughtful act made this coat stand out. And, as a result, it made them want to know more about the brand behind this coat.

Another great example is Dunn Brother’s Coffee , who delivered a kit of my favorite beverage TO MY OFFICE after I tweeted about how much I loved their coffee and wished they delivered.

Sometimes the smallest things can make the biggest impact. How can you do the unexpected to surprise and delight your customers? If you do this, you’ll stand out and create raving fans.

Make Your Business Stand Out From the Crowd

There are plenty of additional ways your company can stand out: you can deliver extreme value, give something valuable away for free, create unique partnership or build powerful communities.

But, this list gives you a great place to start. And hopefully, gives you some inspiration to focus on standing out instead of fitting in.

I’d love to know––how does your business stand out from the crowd? What do you do that makes your business different?

Originally published on July 20, 2015. Updated and expanded on May 12, 2021.

Share This Post

Laura Click

7 replies on “10 proven ways to make your business stand out from competitors”.

Thank you this was helpful information for my tutoring business

This is really helpful..It has opened my brain to thinking wide and also out of the box..Thank you so much

I’m so glad you found it valuable, Shannon!

Thank you so.much for your insightful advice. I was wondering how I am going to work it out. Some company opened the same business with us just right next door and was wondering how we can differentiate ourselves.

Hi, Laura… I appreciate the efforts you have made to publish such a nice and useful article. I hope it would be beneficial for a lot of business owners who are facing strong competition. So, keep it up…

Thank you soo much it have help me to think outside the box

This is such a powerful and insightful article I have ever ready on the internet, this is not a praise, it’s an expression for the results achieved after reading and applying what the article is saying, you can pay a couple of thousands to the gurus on the internet to get this information and here it is free utilize it will 10x your business just what it has done To my business. I am so grateful to you madam thank you.

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How to Build a Detailed Business Plan That Stands Out [Free Template]

Updated: March 29, 2022

Published: March 11, 2022

While starting a company may seem easier now than ever before, entrepreneurs have an uphill battle from the moment they start a business. And without a clear, actionable business plan for selling, marketing, finances, and operations, you're almost destined to face significant challenges.

This is why crafting a business plan is an essential step in the entrepreneurial process.

In this post, we'll walk you through the process of filling out your business plan template, like this free, editable version :

Download a free, editable one-page business plan template.

We know that when looking at a blank page on a laptop screen, the idea of writing your business plan can seem impossible. However, it's a mandatory step to take if you want to turn your business dreams into a reality.

That's why we've crafted a business plan template for you to download and use to build your new company. You can download it here for free . It contains prompts for all of the essential parts of a business plan, all of which are elaborated on, below.

This way, you'll be able to show them how organized and well-thought-out your business idea is, and provide them with answers to whatever questions they may have.

Free Business Plan Template

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

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

Download Free

All fields are required.

You're all set!

Click this link to access this resource at any time.

Building a Successful Business Plan

In the next section, we'll cover the components of a business plan , such as an executive summary and company description. But before we get to that, let's talk about key elements that should serve as building blocks for your plan.

For some entrepreneurs, the thought of writing a business plan sounds like a chore — a necessary means to an end. But that's a bad take.

A solid business plan is a blueprint for success . It's key to securing financing, presenting your business, outlining your financial projections, and turning that nugget of a business idea into a reality.

At the core, your business plan should answer two questions: why your business and why now?

Investors want to know why your business is entering the market, i.e. what problem it's solving and how it's different from what's currently out there. They also want to know why now is the right time for your type of product or service.

At a minimum, your plan should:

• Be more realistic than idealistic: Too often, business plans focus too much on how things could be instead of how they are. While having a vision is important, your plan needs to be rooted in research and data.
• Legitimize your business idea : If an idea fails on paper, it's a signal to go back to the drawing board. In doing so, you avoid losing precious time or money chasing an unrealistic idea.
• Position your business for funding: To get your business off the ground, chances are you'll need financial backing. Even with a solid business idea, investors, lenders, and banks still need convincing. An effective business plan will outline how much money you need, where it's going, what targets you will hit, and how you plan to repay any debts.
• Lay the foundation: Investors focus on risk – if anything looks shaky, it could be a dealbreaker. Ideally, your business plan will lay down the foundation for how you'll operate your business — from operational needs to financial projections and goals.
• Communicate your needs: It's nearly impossible to communicate your needs if you don't know what they are first. Of course, a business’ needs are always changing — but your plan should give you a well-rounded view of how your business will work in the short and long term.

So back to the question of why and why now – consider three things:

• Your industry – How does your product or service fit within your industry? Are you targeting a specific niche? Where do you see the industry going in the next five to 10 years?
• Your target audience – Who are you targeting? What challenges are they facing? How will your product or service help them in their daily lives?
• Your unique selling proposition (USP) – What sets you apart from your competitors? Is it your product/service features? Your company values? Price?

Once you know the answers to these questions, you'll be equipped to answer the question: why your business and why now.

How to Build a Business Plan

• Executive Summary
• Company and Business Description
• Product and Services Line
• Market Analysis
• Marketing Plan
• Legal Notes
• Financial Considerations

Featured Resource: Free Business Plan Template

1. cover page.

Your business plan should be prefaced with an eye-catching cover page. This means including a high-resolution image of your company logo, followed by your company's name, address, and phone number.

Since this business plan will likely change hands and be seen by multiple investors, you should also provide your own name, role in the business, and email address on the cover page.

At the bottom of this page, you can also add a confidentiality statement to protect against the disclosure of your business details.

The statement can read as follows: " This document contains confidential and proprietary information created by [your company name]. When receiving this document, you agree to keep its content confidential and may only reproduce and/or share it with express written permission of [your company name] ."

Remember to keep your cover page simple and concise — and save the important details for other sections.

Why it matters: First impressions are everything, and a clean cover page is the first step in the right direction.

Example of a Cover Page

2. Executive Summary

The executive summary of your business plan provides a one- to two-page overview of your business and highlights the most crucial pieces of your plan, such as your short-term and long-term goals.

The executive summary is essentially a boiled-down version of your entire business plan, so remember to keep this section to the point and filled only with essential information.

Typically, this brief section includes:

• A mission statement.
• The company's history and leadership model.
• An overview of competitive advantage(s).
• Financial projections.
• Company goals.
• An ask from potential investors.

Why it matters: The executive summary is known as the make-or-break section of a business plan. It influences whether investors turn the page or not — so effectively summarizing your business and the problem it hopes to solve is a must.

Think of the Summary as a written elevator pitch (with more detail). While your business plan provides the nitty-gritty details, your Summary describes — in a compelling but matter-of-fact language — the highlights of your plan. If it's too vague, complicated, or fuzzy, you may need to scrap it and start again.

Example of an Executive Summary Introduction

"The future looks bright for North Side Chicago, particularly the Rock Hill Neighborhood. A number of high-end commercial and residential developments are well on their way, along with two new condo developments in nearby neighborhoods.

While the completion of these developments will increase the population within the neighborhood and stimulate the economy, the area lacks an upscale restaurant where residents and visitors can enjoy fine food and drink. Jay Street Lounge and Restaurant will provide such a place."

3. Company & Business Description

In this section, provide a more thorough description of what your company is and why it exists.

The bulk of the writing in this section should be about your company's purpose – covering what the business will be selling, identifying the target market, and laying out a path to success.

In this portion of your business plan, you can also elaborate on your company's:

• Mission statement
• Core values
• Team and organizational structure

Why it matters: Investors look for great structures and teams in addition to great ideas. This section gives an overview of your businesses' ethos. It's the perfect opportunity to set your business apart from the competition — such as your team's expertise, your unique work culture, and your competitive advantage.

Example of a Values/Mission Statement

"Jay Street Lounge and Restaurant will be the go-to place for people to get a drink or bite in an elegant, upscale atmosphere. The mission is to be North Side's leading restaurant, with the best tasting food and the highest quality service."

3. Product & Services Line

Here's where you'll cover the makeup of your business's product and/or services line. You should provide each product or service's name, its purpose, and a description of how it works (if appropriate). If you own any patents, copyrights, or trademarks, it's essential to include this info too.

Next, add some color to your sales strategy by outlining your pricing model and mark-up amounts.

If you're selling tangible products, you should also explain production and costs, and how you expect these factors to change as you scale.

Why it matters: This section contains the real meat of your business plan. It sets the stage for the problem you hope to solve, your solution, and how your said solution fits in the market.

There's no one-size-fits-all formula for this section. For instance, one plan may delve into its ability to market in a more cost-effective way than the competition, whereas another plan focuses on its key products and their unique features and benefits.

Regardless of your angle, it's critical to convey how your offerings will differ from the competition.

Example of a Product/Service Offering

"The menu at Jay Street Lounge and Restaurant will focus on Moroccan cuisine. The stars of the menu (our specialties) are the Moroccan dishes, such as eggplant zaalouk, seafood bastilla, tagine, and chickpea stew. For those who enjoy American dishes, there will also be a variety of options, from burger sliders and flatbread pizza to grilled steak and salads.

The food at Jay Street will have premium pricing to match its upscale atmosphere. During the summer months, the restaurant will have extra seating on the patio where clients can enjoy a special summer menu. We will be open on all days of the week."

4. Market Analysis

It helps to reference your market research documentation in this section, like a Porter's Five Forces Analysis or a SWOT Analysis ( templates for those are available here ). You can also include them in your appendix.

If your company already has buyer personas, you should include them here as well. If not, you can create them right now using the Make My Persona Tool .

Why it matters: Having an awesome product is, well, awesome — but it isn't enough. Just as important, there must be a market for it.

This section allows you to dig deeper into your market, which segments you want to target, and why. The "why" here is important, since targeting the right segment is critical for the success and growth of your business.

It's easy to get lost (or overwhelmed) in a sea of endless data. For your business plan, narrow your focus by answering the following questions:

• What is my market? In other words, who are my customers?
• What segments of the market do I want to target?
• What's the size of my target market?
• Is my market likely to grow?
• How can I increase my market share over time?

Example of a Market Analysis

"Jay Street Lounge and Restaurant will target locals who live and work within the Rock Hill Neighborhood and the greater North Side Chicago area. We will also target the tourists who flock to the many tourist attractions and colleges on the North Side.

We will specifically focus on young to middle-aged adults with an income of $40,000 to $80,000 who are looking for an upscale experience. The general demographics of our target market are women between 20 to 50 years old.

A unique and varied Moroccan-American menu, along with our unique upscale atmosphere, differentiates us from competitors in the area. Jay Street will also set itself apart through its commitment to high-quality food, service, design, and atmosphere."

5. Marketing Plan

Unlike the market analysis section, your marketing plan section should be an explanation of the tactical approach to reaching your aforementioned target audience. List your advertising channels, organic marketing methods, messaging, budget, and any relevant promotional tactics.

If your company has a fully fleshed-out marketing plan, you can attach it in the appendix of your business plan. If not, download this free marketing plan template to outline your strategy.

Free Marketing Plan Template

Outline your company's marketing strategy in one simple, coherent plan.

• Pre-Sectioned Template
• Completely Customizable
• Example Prompts
• Professionally Designed

Why it matters: Marketing is what puts your product in front of your customers. It's not just advertising — it's an investment in your business.

Throwing money into random marketing channels is a haphazard approach, which is why it's essential to do the legwork to create a solid marketing plan.

Here's some good news — by this point, you should have a solid understanding of your target market. Now, it's time to determine how you'll reach them.

Example of a Marketing Plan Overview

"Our marketing strategy will focus on three main initiatives:

• Social media marketing. We will grow and expand our Facebook and Instagram following through targeted social media ads.
• Website initiatives. Our website will attract potential visitors by offering updated menus and a calendar of events.
• Promotional events. Jay Street will have one special theme night per week to attract new clients."

6. Sales Plan

It doesn't matter if your sales department is an office full of business development representatives (BDR) or a dozen stores with your products on their shelves.

The point is: All sales plans are different, so you should clearly outline yours here. Common talking points include your:

• Sales team structure, and why this structure was chosen.
• Sales channels.
• Sales tools, software, and resources.
• Prospecting strategy.
• Sales goals and budget.

Like with your marketing plan, it might make sense to attach your completed sales plan to the appendix of your business plan. You can download a template for building your sales plan here .

Why it matters: Among other things, investors are interested in the scalability of your business — which is why growth strategies are a critical part of your business plan.

Your sales plan should describe your plan to attract customers, retain them (if applicable), and, ultimately, grow your business. Be sure to outline what you plan to do given your existing resources and what results you expect from your work.

Example of a Sales Plan Overview

"The most important goal is to ensure financial success for Jay Street Lounge and Restaurant. We believe we can achieve this by offering excellent food, entertainment, and service to our clients.

We are not a low-cost dining option in the area. Instead, the food will have premium pricing to match its upscale feel. The strategy is to give Jay Street a perception of elegance through its food, entertainment, and excellent service."

7. Legal Notes

Your investors may want to know the legal structure of your business, as that could directly impact the risk of their investments. For example, if you're looking for business partners to engage in a non-corporation or LLC partnership, this means they could be on the line for more than their actual investment.

Because this clarification is often needed, explain if you are and/or plan to become a sole proprietor, partnership, corporation, LLC, or other.

You should also outline the steps you have taken (or will need to take) to operate legally. This includes licenses, permits, registrations, and insurance.

The last thing your investor wants to hear after they've sent you a big chunk of change is that you're operating without proper approval from the local, state, or federal government.

Why it matters: The last thing your investor wants to hear after they've sent you a big chunk of change is that you're operating without proper approval from the local, state, or federal government.

Example of Legal Notes

"Jay Street Lounge and Restaurant is up-to-date on all restaurant licenses and health permits. Our business name and logo are registered trademarks, presenting the possibility of expanding locally."

8. Financial Considerations

Ultimately, investors want to know two things:

• When they will earn their money back.
• When they will start seeing returns on their initial investment.

That said, be clear, calculated, and convincing in this section. It should cover:

• Startup costs.
• Sales forecasts for the next several months/quarters.
• Break-even analysis for time and dollars.
• Projected profit and loss (P&L) statement.

Facts and figures are key here, so be as specific as possible with each line item and projection. In addition, explain the "why" behind each of these sections.

However, keep in mind that information overload is a risk, especially when it comes to data. So, if you have pages upon pages of charts and spreadsheets for this section, distill them into a page or two and include the rest of the sheets in the appendix. This section should only focus on key data points.

Why it matters: One of the most important aspects of becoming "investor ready" is knowing your numbers. More importantly, you need to understand how those numbers will enhance your business.

While it's easy to write a number down on paper, it's more important to understand (and communicate) why you need capital, where it's going, and that your evaluation makes sense.

Example of Financial Projections

"Based on our knowledge and experience in the restaurant industry, we have come up with projections for the business.

Starting with an expenditure of $400,000 in year 1, we forecast sales of $1,500,000 and $2,800,000 for years two and three. We expect to achieve a net profit of 15% by year three."

9. Appendix

A detailed and well-developed business plan can range anywhere from 20 to 50 pages, with some even reaching upward of 80.

In many cases, the appendix is the longest section. Why? Because it includes the supportive materials mentioned in previous sections. To avoid disrupting the flow of the business plan with visuals, charts, and spreadsheets, business owners usually add them in the last section, i.e. the appendix.

Aside from what we've already mentioned – marketing plan, sales plan, department budgets, financial documents – you may also want to attach the following in the appendix:

• Marketing materials
• Market research data
• Licensing documentation
• Branding assets
• Floor plans for your location
• Mockups of your product
• Renderings of your office space or location design

Adding these pieces to the appendix enriches the reader's understanding of your business and proves you've put the work into your business plan without distracting from the main points throughout the plan.

Why it matters: An appendix helps the reader do their due diligence. It contains everything they need to support your business plan.

Keep in mind, however, that an appendix is typically necessary only if you're seeking financing or looking to attract business partners.

Use a Business Plan Template to Get Started

Writing a business plan shouldn't be an insurmountable roadblock to starting a business. Unfortunately, for all too many, it is.

That's why we recommend using our free business plan template. Pre-filled with detailed section prompts for all of the topics in this blog post, we're confident this template will get your business plan started in the right direction.

Editor's note: This post was originally published in June 2017 and has been updated for comprehensiveness.

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Write your business plan

Business plans help you run your business.

A good business plan guides you through each stage of starting and managing your business. You’ll use your business plan as a roadmap for how to structure, run, and grow your new business. It’s a way to think through the key elements of your business.

Business plans can help you get funding or bring on new business partners. Investors want to feel confident they’ll see a return on their investment. Your business plan is the tool you’ll use to convince people that working with you — or investing in your company — is a smart choice.

Pick a business plan format that works for you

There’s no right or wrong way to write a business plan. What’s important is that your plan meets your needs.

Most business plans fall into one of two common categories: traditional or lean startup.

Traditional business plans are more common, use a standard structure, and encourage you to go into detail in each section. They tend to require more work upfront and can be dozens of pages long.

Lean startup business plans are less common but still use a standard structure. They focus on summarizing only the most important points of the key elements of your plan. They can take as little as one hour to make and are typically only one page.

Traditional business plan

Lean startup plan

Traditional business plan format

You might prefer a traditional business plan format if you’re very detail-oriented, want a comprehensive plan, or plan to request financing from traditional sources.

When you write your business plan, you don’t have to stick to the exact business plan outline. Instead, use the sections that make the most sense for your business and your needs. Traditional business plans use some combination of these nine sections.

Executive summary

Briefly tell your reader what your company is and why it will be successful. Include your mission statement, your product or service, and basic information about your company’s leadership team, employees, and location. You should also include financial information and high-level growth plans if you plan to ask for financing.

Company description

Use your company description to provide detailed information about your company. Go into detail about the problems your business solves. Be specific, and list out the consumers, organization, or businesses your company plans to serve.

Explain the competitive advantages that will make your business a success. Are there experts on your team? Have you found the perfect location for your store? Your company description is the place to boast about your strengths.

Market analysis

You'll need a good understanding of your industry outlook and target market. Competitive research will show you what other businesses are doing and what their strengths are. In your market research, look for trends and themes. What do successful competitors do? Why does it work? Can you do it better? Now's the time to answer these questions.

Organization and management

Tell your reader how your company will be structured and who will run it.

Describe the  legal structure  of your business. State whether you have or intend to incorporate your business as a C or an S corporation, form a general or limited partnership, or if you're a sole proprietor or limited liability company (LLC).

Use an organizational chart to lay out who's in charge of what in your company. Show how each person's unique experience will contribute to the success of your venture. Consider including resumes and CVs of key members of your team.

Service or product line

Describe what you sell or what service you offer. Explain how it benefits your customers and what the product lifecycle looks like. Share your plans for intellectual property, like copyright or patent filings. If you're doing  research and development  for your service or product, explain it in detail.

Marketing and sales

There's no single way to approach a marketing strategy. Your strategy should evolve and change to fit your unique needs.

Your goal in this section is to describe how you'll attract and retain customers. You'll also describe how a sale will actually happen. You'll refer to this section later when you make financial projections, so make sure to thoroughly describe your complete marketing and sales strategies.

Funding request

If you're asking for funding, this is where you'll outline your funding requirements. Your goal is to clearly explain how much funding you’ll need over the next five years and what you'll use it for.

Specify whether you want debt or equity, the terms you'd like applied, and the length of time your request will cover. Give a detailed description of how you'll use your funds. Specify if you need funds to buy equipment or materials, pay salaries, or cover specific bills until revenue increases. Always include a description of your future strategic financial plans, like paying off debt or selling your business.

Financial projections

Supplement your funding request with financial projections. Your goal is to convince the reader that your business is stable and will be a financial success.

If your business is already established, include income statements, balance sheets, and cash flow statements for the last three to five years. If you have other collateral you could put against a loan, make sure to list it now.

Provide a prospective financial outlook for the next five years. Include forecasted income statements, balance sheets, cash flow statements, and capital expenditure budgets. For the first year, be even more specific and use quarterly — or even monthly — projections. Make sure to clearly explain your projections, and match them to your funding requests.

This is a great place to use graphs and charts to tell the financial story of your business.  

Use your appendix to provide supporting documents or other materials were specially requested. Common items to include are credit histories, resumes, product pictures, letters of reference, licenses, permits, patents, legal documents, and other contracts.

Example traditional business plans

Before you write your business plan, read the following example business plans written by fictional business owners. Rebecca owns a consulting firm, and Andrew owns a toy company.

Lean startup format

You might prefer a lean startup format if you want to explain or start your business quickly, your business is relatively simple, or you plan to regularly change and refine your business plan.

Lean startup formats are charts that use only a handful of elements to describe your company’s value proposition, infrastructure, customers, and finances. They’re useful for visualizing tradeoffs and fundamental facts about your company.

There are different ways to develop a lean startup template. You can search the web to find free templates to build your business plan. We discuss nine components of a model business plan here:

Key partnerships

Note the other businesses or services you’ll work with to run your business. Think about suppliers, manufacturers, subcontractors, and similar strategic partners.

Key activities

List the ways your business will gain a competitive advantage. Highlight things like selling direct to consumers, or using technology to tap into the sharing economy.

Key resources

List any resource you’ll leverage to create value for your customer. Your most important assets could include staff, capital, or intellectual property. Don’t forget to leverage business resources that might be available to  women ,  veterans ,  Native Americans , and  HUBZone businesses .

Value proposition

Make a clear and compelling statement about the unique value your company brings to the market.

Customer relationships

Describe how customers will interact with your business. Is it automated or personal? In person or online? Think through the customer experience from start to finish.

Customer segments

Be specific when you name your target market. Your business won’t be for everybody, so it’s important to have a clear sense of whom your business will serve.

List the most important ways you’ll talk to your customers. Most businesses use a mix of channels and optimize them over time.

Cost structure

Will your company focus on reducing cost or maximizing value? Define your strategy, then list the most significant costs you’ll face pursuing it.

Revenue streams

Explain how your company will actually make money. Some examples are direct sales, memberships fees, and selling advertising space. If your company has multiple revenue streams, list them all.

Example lean business plan

Before you write your business plan, read this example business plan written by a fictional business owner, Andrew, who owns a toy company.

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10 Rules of writing successful business plans.

A business plan is like a map that shows how you will get your business from where it is now to where you want it to be. It tells what your business does, how it will make money, and how it will reach its goals. A business plan includes rules that help you make sure the business stays on track. These rules help you make decisions, set your goals, and stay on the right path. Download a business plan template here .

1. Write for your audience

When writing your business plan, the most important consideration is your audience. You want to attract people who will be interested in investing or partnering with your business. To ensure your plan is accessible to all, use language that is simple and easy to understand. Avoid using industry-specific jargon; instead, use common English to make sure your message is clear and comprehensible to non-professionals.

2. Keep it concise

Make it to the point! When creating a pitch for potential lenders or investors, avoid including unnecessary details that could bore them. Keep your language clear, concise, and as close to a conversation as you can.

3. Check the competition

Knowing what your competitors are doing can help you stay ahead of the game and give you an edge in the market. Don’t underestimate the importance of a competitor, no matter how they compare. It’s important to explain the differences between you and your competitors so your audience can understand the benefits of your business.

4. Keep clear details

Writing a business plan is an important step in achieving success. Make sure your plan is clear and concise with all the necessary details. Use professional language and correct grammar and spelling to make a good impression on potential investors and lenders. Include accurate content with realistic assumptions and credible projections to make your business plan stand out.

5. Aim for the opportunity

Take a few moments to clear your head and ask yourself why you are writing this plan. If, for example, you are seeking investment for a business, it is important to clearly articulate the opportunity for investment. Capture the investor’s attention with a clear explanation of the potential return on their investment, and why it’s a better option than simply keeping the money in the bank. Detail your unique selling proposition (USP) and the advantages that come with investing in your business or purchasing it from you.

6. Cover the key elements

To create an effective business plan, research to determine which sections to include. There are many helpful websites that provide the necessary information to cover all aspects of the plan . Make sure to use vivid language and add colorful charts and spreadsheets to make the plan more engaging.

7. Show your numbers in the right way

When evaluating any business venture, potential investors will focus on the numbers. To give them a realistic understanding of the venture’s potential and success, it is important to create a detailed budget that takes into account the estimated costs and sales. Additionally, preparing a break-even chart and cash flow statement can help investors visualize their return on investment. While there may be a lot of start-up costs early on, investors are looking for the potential of the business, so it is important to emphasize that.

8. Have an Executive Summary

Once you have finished creating your business plan, it’s important to write an executive summary. This part should be read first by prospective investors, as it provides a quick and concise overview of your business plan. Be sure to keep the same team of writers and contributors involved in creating your business plan, as consistency will help make your document more convincing. The executive summary is exactly what it sounds like – a summary of your entire business plan.

9. Get your document checked and reviewed by experts

To make sure your business plan is as good as it can be, it’s important to get it independently reviewed. Ask someone who has the necessary knowledge and experience to take a look at it and provide feedback. Choose someone who is not involved in the planning process; they’ll be able to give you a fresh perspective and help identify any missing elements.

10. Implement and Go!

Now that you have all the necessary elements for a comprehensive executive summary, it’s time to implement your plan. To wrap your summary up and make it stand out, consider asking a thought-provoking question. Ensure you format your summary properly and use clear, concise language that conveys your business’s potential success. With content, strategies, and reasons that illustrate your business’s success, you’ll be sure to invite investment and interest.

Download a  business plan template and start creating your business plan.

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How to Make Your Business Stand Out From the Competition: 12 Techniques

By Brett Farmiloe

In a competitive marketplace, businesses must seek innovative ways to stand out. We've asked successful business leaders to share the techniques they use to differentiate their companies' offerings from their competitors. From niching down to connecting emotionally through storytelling, consider following these tactics to make your business shine.

How to stand out in a crowded market

1. niche down.

"One way to stand out? Niche down. For example, in my business I focus on helping employees break free from their 9-to-5 jobs and become successful entrepreneurs . Since I speak directly to my target audience and their pain points, I get much better results than if I had decided to coach without having a niche. Ultimately, this strategy works whether you offer a product or a service: focus on solving a specific problem that certain people have—rather than trying to appeal to everyone." — Luisa Zhou , LuisaZhou.com

2. Showcase the people behind the business

"One strategy businesses can use to differentiate their products and stand out in a crowded market is to showcase the person behind the business and their expertise in an ongoing campaign.

"I run a company that sells hiking tours, and in 2023 I created a challenge to spend 104 days in the mountains, using the hashtag #104MountainDays, and sharing the experiences on Facebook and Instagram. It showed potential clients that I'm an experienced hiker, which builds trust, while also helping me become top-of-mind for someone who wants to book a hiking tour. It was so successful that in 2024, I created the #114MountainDaysChallenge, and it's inspired many people to do their own hiking challenges.

"Other small businesses can take this same strategy and apply it to their business to showcase the people behind the business and to show their expertise, because people want to buy from the people behind the products." — Laurel Robbins , Monkeys and Mountains Hiking and Adventure Travel

3. Highlight unique product features

"To make your product stand out from others, you need to highlight its unique features. This means adding features or technologies that other companies don't have, like a patented system, a secret ingredient, or a unique design element. For example, in my company, we've come up with a unique mechanism that makes our product work much better, giving us an edge in the market." — Julian Patrick , Stovefitter's Warehouse

4. Offer personalized user experiences

"In our experience, personalization has been our ace. Understanding that no two users are the same, we introduced customizable viewing experiences. Users can tailor their interface, content recommendations, and even streaming quality to their preferences. This level of personalization not only set us apart, but also has deepened user engagement. It's a testament to how catering to individual needs can transform a service from just another option to a personal favorite." — Tyler Hall , IPTV Wire

5. Build a community around your brand

"My strategy extends beyond just offering services—it's about building a community around our brand. We've created online forums, hosted events, and encouraged social media interactions to foster a sense of community among our customers. This engagement creates emotional connections, turning customers into brand advocates. Our community-driven approach sets us apart in a crowded market by offering a sense of belonging and connection, which is invaluable in today’s digital age." — Ian Sells , Million Dollar Sellers

6. Integrate social responsibility into the company's mission

"Our main approach for boosting online visibility and standing out as a small business in our industry is to emphasize social responsibility. We center our mission on making a meaningful impact on the environment, our team, and our local community. For example, our efforts to reduce plastic usage in homes, guarantee fair working conditions for our employees, and engage in micro-financing activities within our community are vital in drawing and keeping customers who care deeply about sustainability.

"For other small businesses, I recommend using social responsibility as a way to carve out a distinct business identity. I believe that in the current era, companies should strive to be more than just profit-generating entities; they should actively contribute to societal well-being, irrespective of their field. By integrating social responsibility into your mission and showcasing your initiatives, you naturally attract people who share your values." — Antoinette Jackson , SuperBee

7. Focus on a specific customer group

"Find your niche! Don't try to be everything to everyone. Instead, focus on a specific customer group and their unique needs. Love organic pet food? Target health-conscious pet owners. This laser focus allows you to tailor your product and message perfectly. It's like having a secret handshake with your ideal customer—they'll see you understand them and choose you over the generic crowd." — Manobal Jain , Trainerfu

8. Share successful case studies

"One strategy that has really set my digital marketing services apart in a crowded market is leveraging case studies and success stories in a unique way. Instead of just listing achievements and metrics, I focus on storytelling.

"For each project, I create a detailed narrative that showcases the journey of the client from the challenge they faced to the solution we provided, and finally, the impactful results achieved. This approach makes the case studies more relatable and engaging. It's not just about numbers; it's about the human experience and the problem-solving journey. Clients have mentioned how these stories helped them see the potential for their own businesses, making my services stand out.

"The success of this strategy is measured by the increase in inquiries and engagements I receive from prospects who mention being inspired by these stories. This method has proven to be a powerful tool for showcasing my work and building trust and relatability in a digital space." — Jon Torres , JonTorres.com

9. Infuse products with interactive experiences

"In the ultra-competitive food and beverage industry, a strategy that has set us apart, which I highly recommend, is the art of infusing products with interactive experiences. Instead of merely selling a product, we create an experience around it that engages consumers on multiple sensory levels. This could range from virtual reality tours, showing the journey from farm to table, to augmented reality labels that bring a product's story to life right before the customer's eyes. This degree of immersion transforms the product from a mere item on the shelf into a memorable adventure.

"We've taken this concept to heart in our recruitment process. We don't just connect candidates with job opportunities; we immerse them in the culture and vision of their potential new workplace. For example, we've introduced virtual meet-and-greets with future team members and interactive tours of the company's facilities, even before the first interview. This helps make the candidates feel valued and excited about the opportunity and helps them visualize their future with the company, setting us apart in the competitive recruitment landscape." — Laurie Hyllberg , Kinsa Group

10. Give people a "peek" behind the curtain

"The concept is fairly simple and works well if you're confident in the product you're putting on the market. In my case, we have a great deal of stats, facts, and figures on both our product and our industry displayed front and center on our site. We want people to know as much as possible about SEO, copywriting, and AI when they visit our site, because in my mind, an informed consumer is one who is more likely to purchase our services simply because of the quality of the additional information they have access to. The idea is to make your customers think, 'Well, if they're giving away this level of information and utility for free, then the paid offering must be significantly better,' and it's a strategy that's worked well so far." — Kate Kandefer , SEOwind

11. Educate customers about your business

"Consumers know less than you think. I mean no disrespect to consumers; they just tend to have more important things to do than research every aspect of every product they might ever need. That means education is a key way for businesses to help their products stand out. If somebody doesn't know what they don't know, they also don't know how your product can help them. In my business, I've found that an education-first approach to marketing has really helped to better inform consumers and turn them into customers." — Temmo Kinoshita , Lindenwood Marketing

12. Connect emotionally through storytelling

"An emotional connection is vital in any business strategy, and storytelling is key. It can be used to connect with your audience on a personal and emotional level, where you can focus on the 'why' behind your brand and how it can potentially impact their lives. Include personal statements and stories from previous clients to create a sense of authenticity, and highlight their experiences in dealing with your company.

"By building a business that resonates on a personal and emotional level, you will be able to differentiate yourself from competitors. This will position your company as the go-to choice while building long-lasting relationships with clients and customers." — Ryan Carrigan , moveBuddha

About the Author

Post by: Brett Farmiloe

Brett Farmiloe is the founder and CEO of Featured, a platform where business leaders can answer questions related to their expertise and get published in articles featuring their insights.

Company: Featured Website: www.featured.com Connect with me on LinkedIn .

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How to Write a Business Plan in 9 Steps (+ Template and Examples)

Every successful business has one thing in common, a good and well-executed business plan. A business plan is more than a document, it is a complete guide that outlines the goals your business wants to achieve, including its financial goals . It helps you analyze results, make strategic decisions, show your business operations and growth.

If you want to start a business or already have one and need to pitch it to investors for funding, writing a good business plan improves your chances of attracting financiers. As a startup, if you want to secure loans from financial institutions, part of the requirements involve submitting your business plan.

Writing a business plan does not have to be a complicated or time-consuming process. In this article, you will learn the step-by-step process for writing a successful business plan.

You will also learn what you need a business plan for, tips and strategies for writing a convincing business plan, business plan examples and templates that will save you tons of time, and the alternatives to the traditional business plan.

Let’s get started.

What Do You Need A Business Plan For?

Businesses create business plans for different purposes such as to secure funds, monitor business growth, measure your marketing strategies, and measure your business success.

1. Secure Funds

One of the primary reasons for writing a business plan is to secure funds, either from financial institutions/agencies or investors.

For you to effectively acquire funds, your business plan must contain the key elements of your business plan . For example, your business plan should include your growth plans, goals you want to achieve, and milestones you have recorded.

A business plan can also attract new business partners that are willing to contribute financially and intellectually. If you are writing a business plan to a bank, your project must show your traction , that is, the proof that you can pay back any loan borrowed.

Also, if you are writing to an investor, your plan must contain evidence that you can effectively utilize the funds you want them to invest in your business. Here, you are using your business plan to persuade a group or an individual that your business is a source of a good investment.

2. Monitor Business Growth

A business plan can help you track cash flows in your business. It steers your business to greater heights. A business plan capable of tracking business growth should contain:

• The business goals
• Methods to achieve the goals
• Time-frame for attaining those goals

A good business plan should guide you through every step in achieving your goals. It can also track the allocation of assets to every aspect of the business. You can tell when you are spending more than you should on a project.

You can compare a business plan to a written GPS. It helps you manage your business and hints at the right time to expand your business.

3. Measure Business Success

A business plan can help you measure your business success rate. Some small-scale businesses are thriving better than more prominent companies because of their track record of success.

Right from the onset of your business operation, set goals and work towards them. Write a plan to guide you through your procedures. Use your plan to measure how much you have achieved and how much is left to attain.

You can also weigh your success by monitoring the position of your brand relative to competitors. On the other hand, a business plan can also show you why you have not achieved a goal. It can tell if you have elapsed the time frame you set to attain a goal.

4. Document Your Marketing Strategies

You can use a business plan to document your marketing plans. Every business should have an effective marketing plan.

Competition mandates every business owner to go the extraordinary mile to remain relevant in the market. Your business plan should contain your marketing strategies that work. You can measure the success rate of your marketing plans.

In your business plan, your marketing strategy must answer the questions:

• How do you want to reach your target audience?
• How do you plan to retain your customers?
• What is/are your pricing plans?
• What is your budget for marketing?

How to Write a Business Plan Step-by-Step

1. create your executive summary.

The executive summary is a snapshot of your business or a high-level overview of your business purposes and plans . Although the executive summary is the first section in your business plan, most people write it last. The length of the executive summary is not more than two pages.

Generally, there are nine sections in a business plan, the executive summary should condense essential ideas from the other eight sections.

A good executive summary should do the following:

• A Snapshot of Growth Potential. Briefly inform the reader about your company and why it will be successful)
• Contain your Mission Statement which explains what the main objective or focus of your business is.
• Product Description and Differentiation. Brief description of your products or services and why it is different from other solutions in the market.
• The Team. Basic information about your company’s leadership team and employees
• Business Concept. A solid description of what your business does.
• Target Market. The customers you plan to sell to.
• Marketing Strategy. Your plans on reaching and selling to your customers
• Current Financial State. Brief information about what revenue your business currently generates.
• Projected Financial State. Brief information about what you foresee your business revenue to be in the future.

The executive summary is the make-or-break section of your business plan. If your summary cannot in less than two pages cannot clearly describe how your business will solve a particular problem of your target audience and make a profit, your business plan is set on a faulty foundation.

Avoid using the executive summary to hype your business, instead, focus on helping the reader understand the what and how of your plan.

View the executive summary as an opportunity to introduce your vision for your company. You know your executive summary is powerful when it can answer these key questions:

• Who is your target audience?
• What sector or industry are you in?
• What are your products and services?
• What is the future of your industry?
• Is your company scaleable?
• Who are the owners and leaders of your company? What are their backgrounds and experience levels?
• What is the motivation for starting your company?
• What are the next steps?

Writing the executive summary last although it is the most important section of your business plan is an excellent idea. The reason why is because it is a high-level overview of your business plan. It is the section that determines whether potential investors and lenders will read further or not.

The executive summary can be a stand-alone document that covers everything in your business plan. It is not uncommon for investors to request only the executive summary when evaluating your business. If the information in the executive summary impresses them, they will ask for the complete business plan.

If you are writing your business plan for your planning purposes, you do not need to write the executive summary.

2. Add Your Company Overview

The company overview or description is the next section in your business plan after the executive summary. It describes what your business does.

Adding your company overview can be tricky especially when your business is still in the planning stages. Existing businesses can easily summarize their current operations but may encounter difficulties trying to explain what they plan to become.

Your company overview should contain the following:

• What products and services you will provide
• Geographical markets and locations your company have a presence
• What you need to run your business
• Who your target audience or customers are
• Who will service your customers
• Your company’s purpose, mission, and vision
• Information about your company’s founders
• Who the founders are
• Notable achievements of your company so far

When creating a company overview, you have to focus on three basics: identifying your industry, identifying your customer, and explaining the problem you solve.

If you are stuck when creating your company overview, try to answer some of these questions that pertain to you.

• Who are you targeting? (The answer is not everyone)
• What pain point does your product or service solve for your customers that they will be willing to spend money on resolving?
• How does your product or service overcome that pain point?
• Where is the location of your business?
• What products, equipment, and services do you need to run your business?
• How is your company’s product or service different from your competition in the eyes of your customers?
• How many employees do you need and what skills do you require them to have?

After answering some or all of these questions, you will get more than enough information you need to write your company overview or description section. When writing this section, describe what your company does for your customers.

The company description or overview section contains three elements: mission statement, history, and objectives.

• Mission Statement

The mission statement refers to the reason why your business or company is existing. It goes beyond what you do or sell, it is about the ‘why’. A good mission statement should be emotional and inspirational.

Your mission statement should follow the KISS rule (Keep It Simple, Stupid). For example, Shopify’s mission statement is “Make commerce better for everyone.”

When describing your company’s history, make it simple and avoid the temptation of tying it to a defensive narrative. Write it in the manner you would a profile. Your company’s history should include the following information:

• Founding Date
• Major Milestones
• Location(s)
• Flagship Products or Services
• Number of Employees
• Executive Leadership Roles

When you fill in this information, you use it to write one or two paragraphs about your company’s history.

Business Objectives

Your business objective must be SMART (specific, measurable, achievable, realistic, and time-bound.) Failure to clearly identify your business objectives does not inspire confidence and makes it hard for your team members to work towards a common purpose.

3. Perform Market and Competitive Analyses to Proof a Big Enough Business Opportunity

The third step in writing a business plan is the market and competitive analysis section. Every business, no matter the size, needs to perform comprehensive market and competitive analyses before it enters into a market.

Performing market and competitive analyses are critical for the success of your business. It helps you avoid entering the right market with the wrong product, or vice versa. Anyone reading your business plans, especially financiers and financial institutions will want to see proof that there is a big enough business opportunity you are targeting.

This section is where you describe the market and industry you want to operate in and show the big opportunities in the market that your business can leverage to make a profit. If you noticed any unique trends when doing your research, show them in this section.

Market analysis alone is not enough, you have to add competitive analysis to strengthen this section. There are already businesses in the industry or market, how do you plan to take a share of the market from them?

You have to clearly illustrate the competitive landscape in your business plan. Are there areas your competitors are doing well? Are there areas where they are not doing so well? Show it.

Make it clear in this section why you are moving into the industry and what weaknesses are present there that you plan to explain. How are your competitors going to react to your market entry? How do you plan to get customers? Do you plan on taking your competitors' competitors, tap into other sources for customers, or both?

Illustrate the competitive landscape as well. What are your competitors doing well and not so well?

Answering these questions and thoughts will aid your market and competitive analysis of the opportunities in your space. Depending on how sophisticated your industry is, or the expectations of your financiers, you may need to carry out a more comprehensive market and competitive analysis to prove that big business opportunity.

Instead of looking at the market and competitive analyses as one entity, separating them will make the research even more comprehensive.

Market Analysis

Market analysis, boarding speaking, refers to research a business carried out on its industry, market, and competitors. It helps businesses gain a good understanding of their target market and the outlook of their industry. Before starting a company, it is vital to carry out market research to find out if the market is viable.

The market analysis section is a key part of the business plan. It is the section where you identify who your best clients or customers are. You cannot omit this section, without it your business plan is incomplete.

A good market analysis will tell your readers how you fit into the existing market and what makes you stand out. This section requires in-depth research, it will probably be the most time-consuming part of the business plan to write.

• Market Research

To create a compelling market analysis that will win over investors and financial institutions, you have to carry out thorough market research . Your market research should be targeted at your primary target market for your products or services. Here is what you want to find out about your target market.

• Your target market’s needs or pain points
• The existing solutions for their pain points
• Geographic Location
• Demographics

The purpose of carrying out a marketing analysis is to get all the information you need to show that you have a solid and thorough understanding of your target audience.

Only after you have fully understood the people you plan to sell your products or services to, can you evaluate correctly if your target market will be interested in your products or services.

You can easily convince interested parties to invest in your business if you can show them you thoroughly understand the market and show them that there is a market for your products or services.

How to Quantify Your Target Market

One of the goals of your marketing research is to understand who your ideal customers are and their purchasing power. To quantify your target market, you have to determine the following:

• Your Potential Customers: They are the people you plan to target. For example, if you sell accounting software for small businesses , then anyone who runs an enterprise or large business is unlikely to be your customers. Also, individuals who do not have a business will most likely not be interested in your product.
• Total Households: If you are selling household products such as heating and air conditioning systems, determining the number of total households is more important than finding out the total population in the area you want to sell to. The logic is simple, people buy the product but it is the household that uses it.
• Median Income: You need to know the median income of your target market. If you target a market that cannot afford to buy your products and services, your business will not last long.
• Income by Demographics: If your potential customers belong to a certain age group or gender, determining income levels by demographics is necessary. For example, if you sell men's clothes, your target audience is men.

What Does a Good Market Analysis Entail?

Your business does not exist on its own, it can only flourish within an industry and alongside competitors. Market analysis takes into consideration your industry, target market, and competitors. Understanding these three entities will drastically improve your company’s chances of success.

You can view your market analysis as an examination of the market you want to break into and an education on the emerging trends and themes in that market. Good market analyses include the following:

• Industry Description. You find out about the history of your industry, the current and future market size, and who the largest players/companies are in your industry.
• Overview of Target Market. You research your target market and its characteristics. Who are you targeting? Note, it cannot be everyone, it has to be a specific group. You also have to find out all information possible about your customers that can help you understand how and why they make buying decisions.
• Size of Target Market: You need to know the size of your target market, how frequently they buy, and the expected quantity they buy so you do not risk overproducing and having lots of bad inventory. Researching the size of your target market will help you determine if it is big enough for sustained business or not.
• Growth Potential: Before picking a target market, you want to be sure there are lots of potential for future growth. You want to avoid going for an industry that is declining slowly or rapidly with almost zero growth potential.
• Market Share Potential: Does your business stand a good chance of taking a good share of the market?
• Market Pricing and Promotional Strategies: Your market analysis should give you an idea of the price point you can expect to charge for your products and services. Researching your target market will also give you ideas of pricing strategies you can implement to break into the market or to enjoy maximum profits.
• Potential Barriers to Entry: One of the biggest benefits of conducting market analysis is that it shows you every potential barrier to entry your business will likely encounter. It is a good idea to discuss potential barriers to entry such as changing technology. It informs readers of your business plan that you understand the market.
• Research on Competitors: You need to know the strengths and weaknesses of your competitors and how you can exploit them for the benefit of your business. Find patterns and trends among your competitors that make them successful, discover what works and what doesn’t, and see what you can do better.

The market analysis section is not just for talking about your target market, industry, and competitors. You also have to explain how your company can fill the hole you have identified in the market.

Here are some questions you can answer that can help you position your product or service in a positive light to your readers.

• Is your product or service of superior quality?
• What additional features do you offer that your competitors do not offer?
• Are you targeting a ‘new’ market?

Basically, your market analysis should include an analysis of what already exists in the market and an explanation of how your company fits into the market.

Competitive Analysis

In the competitive analysis section, y ou have to understand who your direct and indirect competitions are, and how successful they are in the marketplace. It is the section where you assess the strengths and weaknesses of your competitors, the advantage(s) they possess in the market and show the unique features or qualities that make you different from your competitors.

Many businesses do market analysis and competitive analysis together. However, to fully understand what the competitive analysis entails, it is essential to separate it from the market analysis.

Competitive analysis for your business can also include analysis on how to overcome barriers to entry in your target market.

The primary goal of conducting a competitive analysis is to distinguish your business from your competitors. A strong competitive analysis is essential if you want to convince potential funding sources to invest in your business. You have to show potential investors and lenders that your business has what it takes to compete in the marketplace successfully.

Competitive analysis will s how you what the strengths of your competition are and what they are doing to maintain that advantage.

When doing your competitive research, you first have to identify your competitor and then get all the information you can about them. The idea of spending time to identify your competitor and learn everything about them may seem daunting but it is well worth it.

Find answers to the following questions after you have identified who your competitors are.

• What are your successful competitors doing?
• Why is what they are doing working?
• Can your business do it better?
• What are the weaknesses of your successful competitors?
• What are they not doing well?
• Can your business turn its weaknesses into strengths?
• How good is your competitors’ customer service?
• Where do your competitors invest in advertising?
• What sales and pricing strategies are they using?
• What marketing strategies are they using?
• What kind of press coverage do they get?
• What are their customers saying about your competitors (both the positive and negative)?

If your competitors have a website, it is a good idea to visit their websites for more competitors’ research. Check their “About Us” page for more information.

If you are presenting your business plan to investors, you need to clearly distinguish yourself from your competitors. Investors can easily tell when you have not properly researched your competitors.

Take time to think about what unique qualities or features set you apart from your competitors. If you do not have any direct competition offering your product to the market, it does not mean you leave out the competitor analysis section blank. Instead research on other companies that are providing a similar product, or whose product is solving the problem your product solves.

The next step is to create a table listing the top competitors you want to include in your business plan. Ensure you list your business as the last and on the right. What you just created is known as the competitor analysis table.

Direct vs Indirect Competition

You cannot know if your product or service will be a fit for your target market if you have not understood your business and the competitive landscape.

There is no market you want to target where you will not encounter competition, even if your product is innovative. Including competitive analysis in your business plan is essential.

If you are entering an established market, you need to explain how you plan to differentiate your products from the available options in the market. Also, include a list of few companies that you view as your direct competitors The competition you face in an established market is your direct competition.

In situations where you are entering a market with no direct competition, it does not mean there is no competition there. Consider your indirect competition that offers substitutes for the products or services you offer.

For example, if you sell an innovative SaaS product, let us say a project management software , a company offering time management software is your indirect competition.

There is an easy way to find out who your indirect competitors are in the absence of no direct competitors. You simply have to research how your potential customers are solving the problems that your product or service seeks to solve. That is your direct competition.

Factors that Differentiate Your Business from the Competition

There are three main factors that any business can use to differentiate itself from its competition. They are cost leadership, product differentiation, and market segmentation.

1. Cost Leadership

A strategy you can impose to maximize your profits and gain an edge over your competitors. It involves offering lower prices than what the majority of your competitors are offering.

A common practice among businesses looking to enter into a market where there are dominant players is to use free trials or pricing to attract as many customers as possible to their offer.

2. Product Differentiation

Your product or service should have a unique selling proposition (USP) that your competitors do not have or do not stress in their marketing.

Part of the marketing strategy should involve making your products unique and different from your competitors. It does not have to be different from your competitors, it can be the addition to a feature or benefit that your competitors do not currently have.

3. Market Segmentation

As a new business seeking to break into an industry, you will gain more success from focusing on a specific niche or target market, and not the whole industry.

If your competitors are focused on a general need or target market, you can differentiate yourself from them by having a small and hyper-targeted audience. For example, if your competitors are selling men’s clothes in their online stores , you can sell hoodies for men.

4. Define Your Business and Management Structure

The next step in your business plan is your business and management structure. It is the section where you describe the legal structure of your business and the team running it.

Your business is only as good as the management team that runs it, while the management team can only strive when there is a proper business and management structure in place.

If your company is a sole proprietor or a limited liability company (LLC), a general or limited partnership, or a C or an S corporation, state it clearly in this section.

Use an organizational chart to show the management structure in your business. Clearly show who is in charge of what area in your company. It is where you show how each key manager or team leader’s unique experience can contribute immensely to the success of your company. You can also opt to add the resumes and CVs of the key players in your company.

The business and management structure section should show who the owner is, and other owners of the businesses (if the business has other owners). For businesses or companies with multiple owners, include the percent ownership of the various owners and clearly show the extent of each others’ involvement in the company.

Investors want to know who is behind the company and the team running it to determine if it has the right management to achieve its set goals.

Management Team

The management team section is where you show that you have the right team in place to successfully execute the business operations and ideas. Take time to create the management structure for your business. Think about all the important roles and responsibilities that you need managers for to grow your business.

Include brief bios of each key team member and ensure you highlight only the relevant information that is needed. If your team members have background industry experience or have held top positions for other companies and achieved success while filling that role, highlight it in this section.

A common mistake that many startups make is assigning C-level titles such as (CMO and CEO) to everyone on their team. It is unrealistic for a small business to have those titles. While it may look good on paper for the ego of your team members, it can prevent investors from investing in your business.

Instead of building an unrealistic management structure that does not fit your business reality, it is best to allow business titles to grow as the business grows. Starting everyone at the top leaves no room for future change or growth, which is bad for productivity.

Your management team does not have to be complete before you start writing your business plan. You can have a complete business plan even when there are managerial positions that are empty and need filling.

If you have management gaps in your team, simply show the gaps and indicate you are searching for the right candidates for the role(s). Investors do not expect you to have a full management team when you are just starting your business.

Key Questions to Answer When Structuring Your Management Team

• Who are the key leaders?
• What experiences, skills, and educational backgrounds do you expect your key leaders to have?
• Do your key leaders have industry experience?
• What positions will they fill and what duties will they perform in those positions?
• What level of authority do the key leaders have and what are their responsibilities?
• What is the salary for the various management positions that will attract the ideal candidates?

Additional Tips for Writing the Management Structure Section

1. Avoid Adding ‘Ghost’ Names to Your Management Team

There is always that temptation to include a ‘ghost’ name to your management team to attract and influence investors to invest in your business. Although the presence of these celebrity management team members may attract the attention of investors, it can cause your business to lose any credibility if you get found out.

Seasoned investors will investigate further the members of your management team before committing fully to your business If they find out that the celebrity name used does not play any actual role in your business, they will not invest and may write you off as dishonest.

2. Focus on Credentials But Pay Extra Attention to the Roles

Investors want to know the experience that your key team members have to determine if they can successfully reach the company’s growth and financial goals.

While it is an excellent boost for your key management team to have the right credentials, you also want to pay extra attention to the roles they will play in your company.

Organizational Chart

Adding an organizational chart in this section of your business plan is not necessary, you can do it in your business plan’s appendix.

If you are exploring funding options, it is not uncommon to get asked for your organizational chart. The function of an organizational chart goes beyond raising money, you can also use it as a useful planning tool for your business.

An organizational chart can help you identify how best to structure your management team for maximum productivity and point you towards key roles you need to fill in the future.

You can use the organizational chart to show your company’s internal management structure such as the roles and responsibilities of your management team, and relationships that exist between them.

5. Describe Your Product and Service Offering

In your business plan, you have to describe what you sell or the service you plan to offer. It is the next step after defining your business and management structure. The products and services section is where you sell the benefits of your business.

Here you have to explain how your product or service will benefit your customers and describe your product lifecycle. It is also the section where you write down your plans for intellectual property like patent filings and copyrighting.

The research and development that you are undertaking for your product or service need to be explained in detail in this section. However, do not get too technical, sell the general idea and its benefits.

If you have any diagrams or intricate designs of your product or service, do not include them in the products and services section. Instead, leave them for the addendum page. Also, if you are leaving out diagrams or designs for the addendum, ensure you add this phrase “For more detail, visit the addendum Page #.”

Your product and service section in your business plan should include the following:

• A detailed explanation that clearly shows how your product or service works.
• The pricing model for your product or service.
• Your business’ sales and distribution strategy.
• The ideal customers that want your product or service.
• The benefits of your products and services.
• Reason(s) why your product or service is a better alternative to what your competitors are currently offering in the market.
• Plans for filling the orders you receive
• If you have current or pending patents, copyrights, and trademarks for your product or service, you can also discuss them in this section.

What to Focus On When Describing the Benefits, Lifecycle, and Production Process of Your Products or Services

In the products and services section, you have to distill the benefits, lifecycle, and production process of your products and services.

When describing the benefits of your products or services, here are some key factors to focus on.

• Unique features
• Translating the unique features into benefits
• The emotional, psychological, and practical payoffs to attract customers
• Intellectual property rights or any patents

When describing the product life cycle of your products or services, here are some key factors to focus on.

• Upsells, cross-sells, and down-sells
• Time between purchases
• Plans for research and development.

When describing the production process for your products or services, you need to think about the following:

• The creation of new or existing products and services.
• The sources for the raw materials or components you need for production.
• Assembling the products
• Maintaining quality control
• Supply-chain logistics (receiving the raw materials and delivering the finished products)
• The day-to-day management of the production processes, bookkeeping, and inventory.

Tips for Writing the Products or Services Section of Your Business Plan

1. Avoid Technical Descriptions and Industry Buzzwords

The products and services section of your business plan should clearly describe the products and services that your company provides. However, it is not a section to include technical jargons that anyone outside your industry will not understand.

A good practice is to remove highly detailed or technical descriptions in favor of simple terms. Industry buzzwords are not necessary, if there are simpler terms you can use, then use them. If you plan to use your business plan to source funds, making the product or service section so technical will do you no favors.

2. Describe How Your Products or Services Differ from Your Competitors

When potential investors look at your business plan, they want to know how the products and services you are offering differ from that of your competition. Differentiating your products or services from your competition in a way that makes your solution more attractive is critical.

If you are going the innovative path and there is no market currently for your product or service, you need to describe in this section why the market needs your product or service.

For example, overnight delivery was a niche business that only a few companies were participating in. Federal Express (FedEx) had to show in its business plan that there was a large opportunity for that service and they justified why the market needed that service.

3. Long or Short Products or Services Section

Should your products or services section be short? Does the long products or services section attract more investors?

There are no straightforward answers to these questions. Whether your products or services section should be long or relatively short depends on the nature of your business.

If your business is product-focused, then automatically you need to use more space to describe the details of your products. However, if the product your business sells is a commodity item that relies on competitive pricing or other pricing strategies, you do not have to use up so much space to provide significant details about the product.

Likewise, if you are selling a commodity that is available in numerous outlets, then you do not have to spend time on writing a long products or services section.

The key to the success of your business is most likely the effectiveness of your marketing strategies compared to your competitors. Use more space to address that section.

If you are creating a new product or service that the market does not know about, your products or services section can be lengthy. The reason why is because you need to explain everything about the product or service such as the nature of the product, its use case, and values.

A short products or services section for an innovative product or service will not give the readers enough information to properly evaluate your business.

4. Describe Your Relationships with Vendors or Suppliers

Your business will rely on vendors or suppliers to supply raw materials or the components needed to make your products. In your products and services section, describe your relationships with your vendors and suppliers fully.

Avoid the mistake of relying on only one supplier or vendor. If that supplier or vendor fails to supply or goes out of business, you can easily face supply problems and struggle to meet your demands. Plan to set up multiple vendor or supplier relationships for better business stability.

5. Your Primary Goal Is to Convince Your Readers

The primary goal of your business plan is to convince your readers that your business is viable and to create a guide for your business to follow. It applies to the products and services section.

When drafting this section, think like the reader. See your reader as someone who has no idea about your products and services. You are using the products and services section to provide the needed information to help your reader understand your products and services. As a result, you have to be clear and to the point.

While you want to educate your readers about your products or services, you also do not want to bore them with lots of technical details. Show your products and services and not your fancy choice of words.

Your products and services section should provide the answer to the “what” question for your business. You and your management team may run the business, but it is your products and services that are the lifeblood of the business.

Key Questions to Answer When Writing your Products and Services Section

Answering these questions can help you write your products and services section quickly and in a way that will appeal to your readers.

• Are your products existing on the market or are they still in the development stage?
• What is your timeline for adding new products and services to the market?
• What are the positives that make your products and services different from your competitors?
• Do your products and services have any competitive advantage that your competitors’ products and services do not currently have?
• Do your products or services have any competitive disadvantages that you need to overcome to compete with your competitors? If your answer is yes, state how you plan to overcome them,
• How much does it cost to produce your products or services? How much do you plan to sell it for?
• What is the price for your products and services compared to your competitors? Is pricing an issue?
• What are your operating costs and will it be low enough for you to compete with your competitors and still take home a reasonable profit margin?
• What is your plan for acquiring your products? Are you involved in the production of your products or services?
• Are you the manufacturer and produce all the components you need to create your products? Do you assemble your products by using components supplied by other manufacturers? Do you purchase your products directly from suppliers or wholesalers?
• Do you have a steady supply of products that you need to start your business? (If your business is yet to kick-off)
• How do you plan to distribute your products or services to the market?

You can also hint at the marketing or promotion plans you have for your products or services such as how you plan to build awareness or retain customers. The next section is where you can go fully into details about your business’s marketing and sales plan.

6. Show and Explain Your Marketing and Sales Plan

Providing great products and services is wonderful, but it means nothing if you do not have a marketing and sales plan to inform your customers about them. Your marketing and sales plan is critical to the success of your business.

The sales and marketing section is where you show and offer a detailed explanation of your marketing and sales plan and how you plan to execute it. It covers your pricing plan, proposed advertising and promotion activities, activities and partnerships you need to make your business a success, and the benefits of your products and services.

There are several ways you can approach your marketing and sales strategy. Ideally, your marketing and sales strategy has to fit the unique needs of your business.

In this section, you describe how the plans your business has for attracting and retaining customers, and the exact process for making a sale happen. It is essential to thoroughly describe your complete marketing and sales plans because you are still going to reference this section when you are making financial projections for your business.

Outline Your Business’ Unique Selling Proposition (USP)

The sales and marketing section is where you outline your business’s unique selling proposition (USP). When you are developing your unique selling proposition, think about the strongest reasons why people should buy from you over your competition. That reason(s) is most likely a good fit to serve as your unique selling proposition (USP).

Target Market and Target Audience

Plans on how to get your products or services to your target market and how to get your target audience to buy them go into this section. You also highlight the strengths of your business here, particularly what sets them apart from your competition.

Before you start writing your marketing and sales plan, you need to have properly defined your target audience and fleshed out your buyer persona. If you do not first understand the individual you are marketing to, your marketing and sales plan will lack any substance and easily fall.

Creating a Smart Marketing and Sales Plan

Marketing your products and services is an investment that requires you to spend money. Like any other investment, you have to generate a good return on investment (ROI) to justify using that marketing and sales plan. Good marketing and sales plans bring in high sales and profits to your company.

Avoid spending money on unproductive marketing channels. Do your research and find out the best marketing and sales plan that works best for your company.

Your marketing and sales plan can be broken into different parts: your positioning statement, pricing, promotion, packaging, advertising, public relations, content marketing, social media, and strategic alliances.

Your Positioning Statement

Your positioning statement is the first part of your marketing and sales plan. It refers to the way you present your company to your customers.

Are you the premium solution, the low-price solution, or are you the intermediary between the two extremes in the market? What do you offer that your competitors do not that can give you leverage in the market?

Before you start writing your positioning statement, you need to spend some time evaluating the current market conditions. Here are some questions that can help you to evaluate the market

• What are the unique features or benefits that you offer that your competitors lack?
• What are your customers’ primary needs and wants?
• Why should a customer choose you over your competition? How do you plan to differentiate yourself from the competition?
• How does your company’s solution compare with other solutions in the market?

After answering these questions, then you can start writing your positioning statement. Your positioning statement does not have to be in-depth or too long.

All you need to explain with your positioning statement are two focus areas. The first is the position of your company within the competitive landscape. The other focus area is the core value proposition that sets your company apart from other alternatives that your ideal customer might consider.

Here is a simple template you can use to develop a positioning statement.

For [description of target market] who [need of target market], [product or service] [how it meets the need]. Unlike [top competition], it [most essential distinguishing feature].

For example, let’s create the positioning statement for fictional accounting software and QuickBooks alternative , TBooks.

“For small business owners who need accounting services, TBooks is an accounting software that helps small businesses handle their small business bookkeeping basics quickly and easily. Unlike Wave, TBooks gives small businesses access to live sessions with top accountants.”

You can edit this positioning statement sample and fill it with your business details.

After writing your positioning statement, the next step is the pricing of your offerings. The overall positioning strategy you set in your positioning statement will often determine how you price your products or services.

Pricing is a powerful tool that sends a strong message to your customers. Failure to get your pricing strategy right can make or mar your business. If you are targeting a low-income audience, setting a premium price can result in low sales.

You can use pricing to communicate your positioning to your customers. For example, if you are offering a product at a premium price, you are sending a message to your customers that the product belongs to the premium category.

Basic Rules to Follow When Pricing Your Offering

Setting a price for your offering involves more than just putting a price tag on it. Deciding on the right pricing for your offering requires following some basic rules. They include covering your costs, primary and secondary profit center pricing, and matching the market rate.

• Covering Your Costs: The price you set for your products or service should be more than it costs you to produce and deliver them. Every business has the same goal, to make a profit. Depending on the strategy you want to use, there are exceptions to this rule. However, the vast majority of businesses follow this rule.
• Primary and Secondary Profit Center Pricing: When a company sets its price above the cost of production, it is making that product its primary profit center. A company can also decide not to make its initial price its primary profit center by selling below or at even with its production cost. It rather depends on the support product or even maintenance that is associated with the initial purchase to make its profit. The initial price thus became its secondary profit center.
• Matching the Market Rate: A good rule to follow when pricing your products or services is to match your pricing with consumer demand and expectations. If you price your products or services beyond the price your customer perceives as the ideal price range, you may end up with no customers. Pricing your products too low below what your customer perceives as the ideal price range may lead to them undervaluing your offering.

Pricing Strategy

Your pricing strategy influences the price of your offering. There are several pricing strategies available for you to choose from when examining the right pricing strategy for your business. They include cost-plus pricing, market-based pricing, value pricing, and more.

• Cost-plus Pricing: This strategy is one of the simplest and oldest pricing strategies. Here you consider the cost of producing a unit of your product and then add a profit to it to arrive at your market price. It is an effective pricing strategy for manufacturers because it helps them cover their initial costs. Another name for the cost-plus pricing strategy is the markup pricing strategy.
• Market-based Pricing: This pricing strategy analyses the market including competitors’ pricing and then sets a price based on what the market is expecting. With this pricing strategy, you can either set your price at the low-end or high-end of the market.
• Value Pricing: This pricing strategy involves setting a price based on the value you are providing to your customer. When adopting a value-based pricing strategy, you have to set a price that your customers are willing to pay. Service-based businesses such as small business insurance providers , luxury goods sellers, and the fashion industry use this pricing strategy.

After carefully sorting out your positioning statement and pricing, the next item to look at is your promotional strategy. Your promotional strategy explains how you plan on communicating with your customers and prospects.

As a business, you must measure all your costs, including the cost of your promotions. You also want to measure how much sales your promotions bring for your business to determine its usefulness. Promotional strategies or programs that do not lead to profit need to be removed.

There are different types of promotional strategies you can adopt for your business, they include advertising, public relations, and content marketing.

Advertising

Your business plan should include your advertising plan which can be found in the marketing and sales plan section. You need to include an overview of your advertising plans such as the areas you plan to spend money on to advertise your business and offers.

Ensure that you make it clear in this section if your business will be advertising online or using the more traditional offline media, or the combination of both online and offline media. You can also include the advertising medium you want to use to raise awareness about your business and offers.

Some common online advertising mediums you can use include social media ads, landing pages, sales pages, SEO, Pay-Per-Click, emails, Google Ads, and others. Some common traditional and offline advertising mediums include word of mouth, radios, direct mail, televisions, flyers, billboards, posters, and others.

A key component of your advertising strategy is how you plan to measure the effectiveness and success of your advertising campaign. There is no point in sticking with an advertising plan or medium that does not produce results for your business in the long run.

Public Relations

A great way to reach your customers is to get the media to cover your business or product. Publicity, especially good ones, should be a part of your marketing and sales plan. In this section, show your plans for getting prominent reviews of your product from reputable publications and sources.

Your business needs that exposure to grow. If public relations is a crucial part of your promotional strategy, provide details about your public relations plan here.

Content Marketing

Content marketing is a popular promotional strategy used by businesses to inform and attract their customers. It is about teaching and educating your prospects on various topics of interest in your niche, it does not just involve informing them about the benefits and features of the products and services you have,

Businesses publish content usually for free where they provide useful information, tips, and advice so that their target market can be made aware of the importance of their products and services. Content marketing strategies seek to nurture prospects into buyers over time by simply providing value.

Your company can create a blog where it will be publishing content for its target market. You will need to use the best website builder such as Wix and Squarespace and the best web hosting services such as Bluehost, Hostinger, and other Bluehost alternatives to create a functional blog or website.

If content marketing is a crucial part of your promotional strategy (as it should be), detail your plans under promotions.

Including high-quality images of the packaging of your product in your business plan is a lovely idea. You can add the images of the packaging of that product in the marketing and sales plan section. If you are not selling a product, then you do not need to include any worry about the physical packaging of your product.

When organizing the packaging section of your business plan, you can answer the following questions to make maximum use of this section.

• Is your choice of packaging consistent with your positioning strategy?
• What key value proposition does your packaging communicate? (It should reflect the key value proposition of your business)
• How does your packaging compare to that of your competitors?

Social Media

Your 21st-century business needs to have a good social media presence. Not having one is leaving out opportunities for growth and reaching out to your prospect.

You do not have to join the thousands of social media platforms out there. What you need to do is join the ones that your customers are active on and be active there.

Businesses use social media to provide information about their products such as promotions, discounts, the benefits of their products, and content on their blogs.

Social media is also a platform for engaging with your customers and getting feedback about your products or services. Make no mistake, more and more of your prospects are using social media channels to find more information about companies.

You need to consider the social media channels you want to prioritize your business (prioritize the ones your customers are active in) and your branding plans in this section.

Strategic Alliances

If your company plans to work closely with other companies as part of your sales and marketing plan, include it in this section. Prove details about those partnerships in your business plan if you have already established them.

Strategic alliances can be beneficial for all parties involved including your company. Working closely with another company in the form of a partnership can provide access to a different target market segment for your company.

The company you are partnering with may also gain access to your target market or simply offer a new product or service (that of your company) to its customers.

Mutually beneficial partnerships can cover the weaknesses of one company with the strength of another. You should consider strategic alliances with companies that sell complimentary products to yours. For example, if you provide printers, you can partner with a company that produces ink since the customers that buy printers from you will also need inks for printing.

Steps Involved in Creating a Marketing and Sales Plan

1. Focus on Your Target Market

Identify who your customers are, the market you want to target. Then determine the best ways to get your products or services to your potential customers.

2. Evaluate Your Competition

One of the goals of having a marketing plan is to distinguish yourself from your competition. You cannot stand out from them without first knowing them in and out.

You can know your competitors by gathering information about their products, pricing, service, and advertising campaigns.

These questions can help you know your competition.

• What makes your competition successful?
• What are their weaknesses?
• What are customers saying about your competition?

3. Consider Your Brand

Customers' perception of your brand has a strong impact on your sales. Your marketing and sales plan should seek to bolster the image of your brand. Before you start marketing your business, think about the message you want to pass across about your business and your products and services.

4. Focus on Benefits

The majority of your customers do not view your product in terms of features, what they want to know is the benefits and solutions your product offers. Think about the problems your product solves and the benefits it delivers, and use it to create the right sales and marketing message.

Your marketing plan should focus on what you want your customer to get instead of what you provide. Identify those benefits in your marketing and sales plan.

5. Focus on Differentiation

Your marketing and sales plan should look for a unique angle they can take that differentiates your business from the competition, even if the products offered are similar. Some good areas of differentiation you can use are your benefits, pricing, and features.

Key Questions to Answer When Writing Your Marketing and Sales Plan

• What is your company’s budget for sales and marketing campaigns?
• What key metrics will you use to determine if your marketing plans are successful?
• What are your alternatives if your initial marketing efforts do not succeed?
• Who are the sales representatives you need to promote your products or services?
• What are the marketing and sales channels you plan to use? How do you plan to get your products in front of your ideal customers?
• Where will you sell your products?

You may want to include samples of marketing materials you plan to use such as print ads, website descriptions, and social media ads. While it is not compulsory to include these samples, it can help you better communicate your marketing and sales plan and objectives.

The purpose of the marketing and sales section is to answer this question “How will you reach your customers?” If you cannot convincingly provide an answer to this question, you need to rework your marketing and sales section.

7. Clearly Show Your Funding Request

If you are writing your business plan to ask for funding from investors or financial institutions, the funding request section is where you will outline your funding requirements. The funding request section should answer the question ‘How much money will your business need in the near future (3 to 5 years)?’

A good funding request section will clearly outline and explain the amount of funding your business needs over the next five years. You need to know the amount of money your business needs to make an accurate funding request.

Also, when writing your funding request, provide details of how the funds will be used over the period. Specify if you want to use the funds to buy raw materials or machinery, pay salaries, pay for advertisements, and cover specific bills such as rent and electricity.

In addition to explaining what you want to use the funds requested for, you need to clearly state the projected return on investment (ROI) . Investors and creditors want to know if your business can generate profit for them if they put funds into it.

Ensure you do not inflate the figures and stay as realistic as possible. Investors and financial institutions you are seeking funds from will do their research before investing money in your business.

If you are not sure of an exact number to request from, you can use some range of numbers as rough estimates. Add a best-case scenario and a work-case scenario to your funding request. Also, include a description of your strategic future financial plans such as selling your business or paying off debts.

Funding Request: Debt or Equity?

When making your funding request, specify the type of funding you want. Do you want debt or equity? Draw out the terms that will be applicable for the funding, and the length of time the funding request will cover.

Case for Equity

If your new business has not yet started generating profits, you are most likely preparing to sell equity in your business to raise capital at the early stage. Equity here refers to ownership. In this case, you are selling a portion of your company to raise capital.

Although this method of raising capital for your business does not put your business in debt, keep in mind that an equity owner may expect to play a key role in company decisions even if he does not hold a major stake in the company.

Most equity sales for startups are usually private transactions . If you are making a funding request by offering equity in exchange for funding, let the investor know that they will be paid a dividend (a share of the company’s profit). Also, let the investor know the process for selling their equity in your business.

Case for Debt

You may decide not to offer equity in exchange for funds, instead, you make a funding request with the promise to pay back the money borrowed at the agreed time frame.

When making a funding request with an agreement to pay back, note that you will have to repay your creditors both the principal amount borrowed and the interest on it. Financial institutions offer this type of funding for businesses.

Large companies combine both equity and debt in their capital structure. When drafting your business plan, decide if you want to offer both or one over the other.

Before you sell equity in exchange for funding in your business, consider if you are willing to accept not being in total control of your business. Also, before you seek loans in your funding request section, ensure that the terms of repayment are favorable.

You should set a clear timeline in your funding request so that potential investors and creditors can know what you are expecting. Some investors and creditors may agree to your funding request and then delay payment for longer than 30 days, meanwhile, your business needs an immediate cash injection to operate efficiently.

Additional Tips for Writing the Funding Request Section of your Business Plan

The funding request section is not necessary for every business, it is only needed by businesses who plan to use their business plan to secure funding.

If you are adding the funding request section to your business plan, provide an itemized summary of how you plan to use the funds requested. Hiring a lawyer, accountant, or other professionals may be necessary for the proper development of this section.

You should also gather and use financial statements that add credibility and support to your funding requests. Ensure that the financial statements you use should include your projected financial data such as projected cash flows, forecast statements, and expenditure budgets.

If you are an existing business, include all historical financial statements such as cash flow statements, balance sheets and income statements .

Provide monthly and quarterly financial statements for a year. If your business has records that date back beyond the one-year mark, add the yearly statements of those years. These documents are for the appendix section of your business plan.

8. Detail Your Financial Plan, Metrics, and Projections

If you used the funding request section in your business plan, supplement it with a financial plan, metrics, and projections. This section paints a picture of the past performance of your business and then goes ahead to make an informed projection about its future.

The goal of this section is to convince readers that your business is going to be a financial success. It outlines your business plan to generate enough profit to repay the loan (with interest if applicable) and to generate a decent return on investment for investors.

If you have an existing business already in operation, use this section to demonstrate stability through finance. This section should include your cash flow statements, balance sheets, and income statements covering the last three to five years. If your business has some acceptable collateral that you can use to acquire loans, list it in the financial plan, metrics, and projection section.

Apart from current financial statements, this section should also contain a prospective financial outlook that spans the next five years. Include forecasted income statements, cash flow statements, balance sheets, and capital expenditure budget.

If your business is new and is not yet generating profit, use clear and realistic projections to show the potentials of your business.

When drafting this section, research industry norms and the performance of comparable businesses. Your financial projections should cover at least five years. State the logic behind your financial projections. Remember you can always make adjustments to this section as the variables change.

The financial plan, metrics, and projection section create a baseline which your business can either exceed or fail to reach. If your business fails to reach your projections in this section, you need to understand why it failed.

Investors and loan managers spend a lot of time going through the financial plan, metrics, and projection section compared to other parts of the business plan. Ensure you spend time creating credible financial analyses for your business in this section.

Many entrepreneurs find this section daunting to write. You do not need a business degree to create a solid financial forecast for your business. Business finances, especially for startups, are not as complicated as they seem. There are several online tools and templates that make writing this section so much easier.

Use Graphs and Charts

The financial plan, metrics, and projection section is a great place to use graphs and charts to tell the financial story of your business. Charts and images make it easier to communicate your finances.

Accuracy in this section is key, ensure you carefully analyze your past financial statements properly before making financial projects.

Address the Risk Factors and Show Realistic Financial Projections

Keep your financial plan, metrics, and projection realistic. It is okay to be optimistic in your financial projection, however, you have to justify it.

You should also address the various risk factors associated with your business in this section. Investors want to know the potential risks involved, show them. You should also show your plans for mitigating those risks.

What You Should In The Financial Plan, Metrics, and Projection Section of Your Business Plan

The financial plan, metrics, and projection section of your business plan should have monthly sales and revenue forecasts for the first year. It should also include annual projections that cover 3 to 5 years.

A three-year projection is a basic requirement to have in your business plan. However, some investors may request a five-year forecast.

Your business plan should include the following financial statements: sales forecast, personnel plan, income statement, income statement, cash flow statement, balance sheet, and an exit strategy.

1. Sales Forecast

Sales forecast refers to your projections about the number of sales your business is going to record over the next few years. It is typically broken into several rows, with each row assigned to a core product or service that your business is offering.

One common mistake people make in their business plan is to break down the sales forecast section into long details. A sales forecast should forecast the high-level details.

For example, if you are forecasting sales for a payroll software provider, you could break down your forecast into target market segments or subscription categories.

Your sales forecast section should also have a corresponding row for each sales row to cover the direct cost or Cost of Goods Sold (COGS). The objective of these rows is to show the expenses that your business incurs in making and delivering your product or service.

Note that your Cost of Goods Sold (COGS) should only cover those direct costs incurred when making your products. Other indirect expenses such as insurance, salaries, payroll tax, and rent should not be included.

For example, the Cost of Goods Sold (COGS) for a restaurant is the cost of ingredients while for a consulting company it will be the cost of paper and other presentation materials.

2. Personnel Plan

The personnel plan section is where you provide details about the payment plan for your employees. For a small business, you can easily list every position in your company and how much you plan to pay in the personnel plan.

However, for larger businesses, you have to break the personnel plan into functional groups such as sales and marketing.

The personnel plan will also include the cost of an employee beyond salary, commonly referred to as the employee burden. These costs include insurance, payroll taxes , and other essential costs incurred monthly as a result of having employees on your payroll.

3. Income Statement

The income statement section shows if your business is making a profit or taking a loss. Another name for the income statement is the profit and loss (P&L). It takes data from your sales forecast and personnel plan and adds other ongoing expenses you incur while running your business.

Every business plan should have an income statement. It subtracts your business expenses from its earnings to show if your business is generating profit or incurring losses.

The income statement has the following items: sales, Cost of Goods Sold (COGS), gross margin, operating expenses, total operating expenses, operating income , total expenses, and net profit.

• Sales refer to the revenue your business generates from selling its products or services. Other names for sales are income or revenue.
• Cost of Goods Sold (COGS) refers to the total cost of selling your products. Other names for COGS are direct costs or cost of sales. Manufacturing businesses use the Costs of Goods Manufactured (COGM) .
• Gross Margin is the figure you get when you subtract your COGS from your sales. In your income statement, you can express it as a percentage of total sales (Gross margin / Sales = Gross Margin Percent).
• Operating Expenses refer to all the expenses you incur from running your business. It exempts the COGS because it stands alone as a core part of your income statement. You also have to exclude taxes, depreciation, and amortization. Your operating expenses include salaries, marketing expenses, research and development (R&D) expenses, and other expenses.
• Total Operating Expenses refers to the sum of all your operating expenses including those exemptions named above under operating expenses.
• Operating Income refers to earnings before interest, taxes, depreciation, and amortization. It is simply known as the acronym EBITDA (earnings before interest, taxes, depreciation, and amortization). Calculating your operating income is simple, all you need to do is to subtract your COGS and total operating expenses from your sales.
• Total Expenses refer to the sum of your operating expenses and your business’ interest, taxes, depreciation, and amortization.
• Net profit shows whether your business has made a profit or taken a loss during a given timeframe.

4. Cash Flow Statement

The cash flow statement tracks the money you have in the bank at any given point. It is often confused with the income statement or the profit and loss statement. They are both different types of financial statements. The income statement calculates your profits and losses while the cash flow statement shows you how much you have in the bank.

5. Balance Sheet

The balance sheet is a financial statement that provides an overview of the financial health of your business. It contains information about the assets and liabilities of your company, and owner’s or shareholders’ equity.

You can get the net worth of your company by subtracting your company’s liabilities from its assets.

6. Exit Strategy

The exit strategy refers to a probable plan for selling your business either to the public in an IPO or to another company. It is the last thing you include in the financial plan, metrics, and projection section.

You can choose to omit the exit strategy from your business plan if you plan to maintain full ownership of your business and do not plan on seeking angel investment or virtual capitalist (VC) funding.

Investors may want to know what your exit plan is. They invest in your business to get a good return on investment.

Your exit strategy does not have to include long and boring details. Ensure you identify some interested parties who may be interested in buying the company if it becomes a success.

Key Questions to Answer with Your Financial Plan, Metrics, and Projection

Your financial plan, metrics, and projection section helps investors, creditors, or your internal managers to understand what your expenses are, the amount of cash you need, and what it takes to make your company profitable. It also shows what you will be doing with any funding.

You do not need to show actual financial data if you do not have one. Adding forecasts and projections to your financial statements is added proof that your strategy is feasible and shows investors you have planned properly.

Here are some key questions to answer to help you develop this section.

• What is your sales forecast for the next year?
• When will your company achieve a positive cash flow?
• What are the core expenses you need to operate?
• How much money do you need upfront to operate or grow your company?
• How will you use the loans or investments?

9. Add an Appendix to Your Business Plan

Adding an appendix to your business plan is optional. It is a useful place to put any charts, tables, legal notes, definitions, permits, résumés, and other critical information that do not fit into other sections of your business plan.

The appendix section is where you would want to include details of a patent or patent-pending if you have one. You can always add illustrations or images of your products here. It is the last section of your business plan.

When writing your business plan, there are details you cut short or remove to prevent the entire section from becoming too lengthy. There are also details you want to include in the business plan but are not a good fit for any of the previous sections. You can add that additional information to the appendix section.

Businesses also use the appendix section to include supporting documents or other materials specially requested by investors or lenders.

You can include just about any information that supports the assumptions and statements you made in the business plan under the appendix. It is the one place in the business plan where unrelated data and information can coexist amicably.

If your appendix section is lengthy, try organizing it by adding a table of contents at the beginning of the appendix section. It is also advisable to group similar information to make it easier for the reader to access them.

A well-organized appendix section makes it easier to share your information clearly and concisely. Add footnotes throughout the rest of the business plan or make references in the plan to the documents in the appendix.

The appendix section is usually only necessary if you are seeking funding from investors or lenders, or hoping to attract partners.

People reading business plans do not want to spend time going through a heap of backup information, numbers, and charts. Keep these documents or information in the Appendix section in case the reader wants to dig deeper.

Common Items to Include in the Appendix Section of Your Business Plan

The appendix section includes documents that supplement or support the information or claims given in other sections of the business plans. Common items you can include in the appendix section include:

• Additional data about the process of manufacturing or creation
• Additional description of products or services such as product schematics
• Additional financial documents or projections
• Articles of incorporation and status
• Backup for market research or competitive analysis
• Bank statements
• Business registries
• Client testimonials (if your business is already running)
• Copies of insurances
• Credit histories (personal or/and business)
• Deeds and permits
• Equipment leases
• Examples of marketing and advertising collateral
• Industry associations and memberships
• Images of product
• Intellectual property
• Key customer contracts
• Legal documents and other contracts
• Letters of reference
• Links to references
• Market research data
• Organizational charts
• Photographs of potential facilities
• Professional licenses pertaining to your legal structure or type of business
• Purchase orders
• Resumes of the founder(s) and key managers
• State and federal identification numbers or codes
• Trademarks or patents’ registrations

Avoid using the appendix section as a place to dump any document or information you feel like adding. Only add documents or information that you support or increase the credibility of your business plan.

Tips and Strategies for Writing a Convincing Business Plan

To achieve a perfect business plan, you need to consider some key tips and strategies. These tips will raise the efficiency of your business plan above average.

1. Know Your Audience

When writing a business plan, you need to know your audience . Business owners write business plans for different reasons. Your business plan has to be specific. For example, you can write business plans to potential investors, banks, and even fellow board members of the company.

The audience you are writing to determines the structure of the business plan. As a business owner, you have to know your audience. Not everyone will be your audience. Knowing your audience will help you to narrow the scope of your business plan.

Consider what your audience wants to see in your projects, the likely questions they might ask, and what interests them.

• A business plan used to address a company's board members will center on its employment schemes, internal affairs, projects, stakeholders, etc.
• A business plan for financial institutions will talk about the size of your market and the chances for you to pay back any loans you demand.
• A business plan for investors will show proof that you can return the investment capital within a specific time. In addition, it discusses your financial projections, tractions, and market size.

2. Get Inspiration from People

Writing a business plan from scratch as an entrepreneur can be daunting. That is why you need the right inspiration to push you to write one. You can gain inspiration from the successful business plans of other businesses. Look at their business plans, the style they use, the structure of the project, etc.

To make your business plan easier to create, search companies related to your business to get an exact copy of what you need to create an effective business plan. You can also make references while citing examples in your business plans.

When drafting your business plan, get as much help from others as you possibly can. By getting inspiration from people, you can create something better than what they have.

3. Avoid Being Over Optimistic

Many business owners make use of strong adjectives to qualify their content. One of the big mistakes entrepreneurs make when preparing a business plan is promising too much.

The use of superlatives and over-optimistic claims can prepare the audience for more than you can offer. In the end, you disappoint the confidence they have in you.

In most cases, the best option is to be realistic with your claims and statistics. Most of the investors can sense a bit of incompetency from the overuse of superlatives. As a new entrepreneur, do not be tempted to over-promise to get the interests of investors.

The concept of entrepreneurship centers on risks, nothing is certain when you make future analyses. What separates the best is the ability to do careful research and work towards achieving that, not promising more than you can achieve.

To make an excellent first impression as an entrepreneur, replace superlatives with compelling data-driven content. In this way, you are more specific than someone promising a huge ROI from an investment.

4. Keep it Simple and Short

When writing business plans, ensure you keep them simple throughout. Irrespective of the purpose of the business plan, your goal is to convince the audience.

One way to achieve this goal is to make them understand your proposal. Therefore, it would be best if you avoid the use of complex grammar to express yourself. It would be a huge turn-off if the people you want to convince are not familiar with your use of words.

Another thing to note is the length of your business plan. It would be best if you made it as brief as possible.

You hardly see investors or agencies that read through an extremely long document. In that case, if your first few pages can’t convince them, then you have lost it. The more pages you write, the higher the chances of you derailing from the essential contents.

To ensure your business plan has a high conversion rate, you need to dispose of every unnecessary information. For example, if you have a strategy that you are not sure of, it would be best to leave it out of the plan.

5. Make an Outline and Follow Through

A perfect business plan must have touched every part needed to convince the audience. Business owners get easily tempted to concentrate more on their products than on other sections. Doing this can be detrimental to the efficiency of the business plan.

For example, imagine you talking about a product but omitting or providing very little information about the target audience. You will leave your clients confused.

To ensure that your business plan communicates your full business model to readers, you have to input all the necessary information in it. One of the best ways to achieve this is to design a structure and stick to it.

This structure is what guides you throughout the writing. To make your work easier, you can assign an estimated word count or page limit to every section to avoid making it too bulky for easy reading. As a guide, the necessary things your business plan must contain are:

• Table of contents
• Introduction
• Product or service description
• Target audience
• Market size
• Competition analysis
• Financial projections

Some specific businesses can include some other essential sections, but these are the key sections that must be in every business plan.

6. Ask a Professional to Proofread

When writing a business plan, you must tie all loose ends to get a perfect result. When you are done with writing, call a professional to go through the document for you. You are bound to make mistakes, and the way to correct them is to get external help.

You should get a professional in your field who can relate to every section of your business plan. It would be easier for the professional to notice the inner flaws in the document than an editor with no knowledge of your business.

In addition to getting a professional to proofread, get an editor to proofread and edit your document. The editor will help you identify grammatical errors, spelling mistakes, and inappropriate writing styles.

Writing a business plan can be daunting, but you can surmount that obstacle and get the best out of it with these tips.

Business Plan Examples and Templates That’ll Save You Tons of Time

1. hubspot's one-page business plan.

The one-page business plan template by HubSpot is the perfect guide for businesses of any size, irrespective of their business strategy. Although the template is condensed into a page, your final business plan should not be a page long! The template is designed to ask helpful questions that can help you develop your business plan.

Hubspot’s one-page business plan template is divided into nine fields:

• Business opportunity
• Company description
• Industry analysis
• Target market
• Implementation timeline
• Marketing plan
• Financial summary
• Funding required

2. Bplan’s Free Business Plan Template

Bplans' free business plan template is investor-approved. It is a rich template used by prestigious educational institutions such as Babson College and Princeton University to teach entrepreneurs how to create a business plan.

The template has six sections: the executive summary, opportunity, execution, company, financial plan, and appendix. There is a step-by-step guide for writing every little detail in the business plan. Follow the instructions each step of the way and you will create a business plan that impresses investors or lenders easily.

3. HubSpot's Downloadable Business Plan Template

HubSpot’s downloadable business plan template is a more comprehensive option compared to the one-page business template by HubSpot. This free and downloadable business plan template is designed for entrepreneurs.

The template is a comprehensive guide and checklist for business owners just starting their businesses. It tells you everything you need to fill in each section of the business plan and how to do it.

There are nine sections in this business plan template: an executive summary, company and business description, product and services line, market analysis, marketing plan, sales plan, legal notes, financial considerations, and appendix.

4. Business Plan by My Own Business Institute

My Own Business Institute (MOBI) which is a part of Santa Clara University's Center for Innovation and Entrepreneurship offers a free business plan template. You can either copy the free business template from the link provided above or download it as a Word document.

The comprehensive template consists of a whopping 15 sections.

• The Business Profile
• The Vision and the People
• Home-Based Business and Freelance Business Opportunities
• Organization
• Licenses and Permits
• Business Insurance
• Communication Tools
• Acquisitions
• Location and Leasing
• Accounting and Cash Flow
• Opening and Marketing
• Managing Employees
• Expanding and Handling Problems

There are lots of helpful tips on how to fill each section in the free business plan template by MOBI.

5. Score's Business Plan Template for Startups

Score is an American nonprofit organization that helps entrepreneurs build successful companies. This business plan template for startups by Score is available for free download. The business plan template asks a whooping 150 generic questions that help entrepreneurs from different fields to set up the perfect business plan.

The business plan template for startups contains clear instructions and worksheets, all you have to do is answer the questions and fill the worksheets.

There are nine sections in the business plan template: executive summary, company description, products and services, marketing plan, operational plan, management and organization, startup expenses and capitalization, financial plan, and appendices.

The ‘refining the plan’ resource contains instructions that help you modify your business plan to suit your specific needs, industry, and target audience. After you have completed Score’s business plan template, you can work with a SCORE mentor for expert advice in business planning.

6. Minimalist Architecture Business Plan Template by Venngage

The minimalist architecture business plan template is a simple template by Venngage that you can customize to suit your business needs .

There are five sections in the template: an executive summary, statement of problem, approach and methodology, qualifications, and schedule and benchmark. The business plan template has instructions that guide users on what to fill in each section.

7. Small Business Administration Free Business Plan Template

The Small Business Administration (SBA) offers two free business plan templates, filled with practical real-life examples that you can model to create your business plan. Both free business plan templates are written by fictional business owners: Rebecca who owns a consulting firm, and Andrew who owns a toy company.

There are five sections in the two SBA’s free business plan templates.

• Executive Summary
• Company Description
• Service Line
• Marketing and Sales

8. The $100 Startup's One-Page Business Plan

The one-page business plan by the $100 startup is a simple business plan template for entrepreneurs who do not want to create a long and complicated plan . You can include more details in the appendices for funders who want more information beyond what you can put in the one-page business plan.

There are five sections in the one-page business plan such as overview, ka-ching, hustling, success, and obstacles or challenges or open questions. You can answer all the questions using one or two sentences.

9. PandaDoc’s Free Business Plan Template

The free business plan template by PandaDoc is a comprehensive 15-page document that describes the information you should include in every section.

There are 11 sections in PandaDoc’s free business plan template.

• Executive summary
• Business description
• Products and services
• Operations plan
• Management organization
• Financial plan
• Conclusion / Call to action
• Confidentiality statement

You have to sign up for its 14-day free trial to access the template. You will find different business plan templates on PandaDoc once you sign up (including templates for general businesses and specific businesses such as bakeries, startups, restaurants, salons, hotels, and coffee shops)

PandaDoc allows you to customize its business plan templates to fit the needs of your business. After editing the template, you can send it to interested parties and track opens and views through PandaDoc.

10. Invoiceberry Templates for Word, Open Office, Excel, or PPT

InvoiceBerry is a U.K based online invoicing and tracking platform that offers free business plan templates in .docx, .odt, .xlsx, and .pptx formats for freelancers and small businesses.

Before you can download the free business plan template, it will ask you to give it your email address. After you complete the little task, it will send the download link to your inbox for you to download. It also provides a business plan checklist in .xlsx file format that ensures you add the right information to the business plan.

Alternatives to the Traditional Business Plan

A business plan is very important in mapping out how one expects their business to grow over a set number of years, particularly when they need external investment in their business. However, many investors do not have the time to watch you present your business plan. It is a long and boring read.

Luckily, there are three alternatives to the traditional business plan (the Business Model Canvas, Lean Canvas, and Startup Pitch Deck). These alternatives are less laborious and easier and quicker to present to investors.

Business Model Canvas (BMC)

The business model canvas is a business tool used to present all the important components of setting up a business, such as customers, route to market, value proposition, and finance in a single sheet. It provides a very focused blueprint that defines your business initially which you can later expand on if needed.

The sheet is divided mainly into company, industry, and consumer models that are interconnected in how they find problems and proffer solutions.

Segments of the Business Model Canvas

The business model canvas was developed by founder Alexander Osterwalder to answer important business questions. It contains nine segments.

• Key Partners: Who will be occupying important executive positions in your business? What do they bring to the table? Will there be a third party involved with the company?
• Key Activities: What important activities will production entail? What activities will be carried out to ensure the smooth running of the company?
• The Product’s Value Propositions: What does your product do? How will it be different from other products?
• Customer Segments: What demography of consumers are you targeting? What are the habits of these consumers? Who are the MVPs of your target consumers?
• Customer Relationships: How will the team support and work with its customer base? How do you intend to build and maintain trust with the customer?
• Key Resources: What type of personnel and tools will be needed? What size of the budget will they need access to?
• Channels: How do you plan to create awareness of your products? How do you intend to transport your product to the customer?
• Cost Structure: What is the estimated cost of production? How much will distribution cost?
• Revenue Streams: For what value are customers willing to pay? How do they prefer to pay for the product? Are there any external revenues attached apart from the main source? How do the revenue streams contribute to the overall revenue?

Lean Canvas

The lean canvas is a problem-oriented alternative to the standard business model canvas. It was proposed by Ash Maurya, creator of Lean Stack as a development of the business model generation. It uses a more problem-focused approach and it majorly targets entrepreneurs and startup businesses.

Lean Canvas uses the same 9 blocks concept as the business model canvas, however, they have been modified slightly to suit the needs and purpose of a small startup. The key partners, key activities, customer relationships, and key resources are replaced by new segments which are:

• Problem: Simple and straightforward number of problems you have identified, ideally three.
• Solution: The solutions to each problem.
• Unfair Advantage: Something you possess that can't be easily bought or replicated.
• Key Metrics: Important numbers that will tell how your business is doing.

Startup Pitch Deck

While the business model canvas compresses into a factual sheet, startup pitch decks expand flamboyantly.

Pitch decks, through slides, convey your business plan, often through graphs and images used to emphasize estimations and observations in your presentation. Entrepreneurs often use pitch decks to fully convince their target audience of their plans before discussing funding arrangements.

Considering the likelihood of it being used in a small time frame, a good startup pitch deck should ideally contain 20 slides or less to have enough time to answer questions from the audience.

Unlike the standard and lean business model canvases, a pitch deck doesn't have a set template on how to present your business plan but there are still important components to it. These components often mirror those of the business model canvas except that they are in slide form and contain more details.

Using Airbnb (one of the most successful start-ups in recent history) for reference, the important components of a good slide are listed below.

• Cover/Introduction Slide: Here, you should include your company's name and mission statement. Your mission statement should be a very catchy tagline. Also, include personal information and contact details to provide an easy link for potential investors.
• Problem Slide: This slide requires you to create a connection with the audience or the investor that you are pitching. For example in their pitch, Airbnb summarized the most important problems it would solve in three brief points – pricing of hotels, disconnection from city culture, and connection problems for local bookings.
• Solution Slide: This slide includes your core value proposition. List simple and direct solutions to the problems you have mentioned
• Customer Analysis: Here you will provide information on the customers you will be offering your service to. The identity of your customers plays an important part in fundraising as well as the long-run viability of the business.
• Market Validation: Use competitive analysis to show numbers that prove the presence of a market for your product, industry behavior in the present and the long run, as well as the percentage of the market you aim to attract. It shows that you understand your competitors and customers and convinces investors of the opportunities presented in the market.
• Business Model: Your business model is the hook of your presentation. It may vary in complexity but it should generally include a pricing system informed by your market analysis. The goal of the slide is to confirm your business model is easy to implement.
• Marketing Strategy: This slide should summarize a few customer acquisition methods that you plan to use to grow the business.
• Competitive Advantage: What this slide will do is provide information on what will set you apart and make you a more attractive option to customers. It could be the possession of technology that is not widely known in the market.
• Team Slide: Here you will give a brief description of your team. Include your key management personnel here and their specific roles in the company. Include their educational background, job history, and skillsets. Also, talk about their accomplishments in their careers so far to build investors' confidence in members of your team.
• Traction Slide: This validates the company’s business model by showing growth through early sales and support. The slide aims to reduce any lingering fears in potential investors by showing realistic periodic milestones and profit margins. It can include current sales, growth, valuable customers, pre-orders, or data from surveys outlining current consumer interest.
• Funding Slide: This slide is popularly referred to as ‘the ask'. Here you will include important details like how much is needed to get your business off the ground and how the funding will be spent to help the company reach its goals.
• Appendix Slides: Your pitch deck appendix should always be included alongside a standard pitch presentation. It consists of additional slides you could not show in the pitch deck but you need to complement your presentation.

It is important to support your calculations with pictorial renditions. Infographics, such as pie charts or bar graphs, will be more effective in presenting the information than just listing numbers. For example, a six-month graph that shows rising profit margins will easily look more impressive than merely writing it.

Lastly, since a pitch deck is primarily used to secure meetings and you may be sharing your pitch with several investors, it is advisable to keep a separate public version that doesn't include financials. Only disclose the one with projections once you have secured a link with an investor.

Advantages of the Business Model Canvas, Lean Canvas, and Startup Pitch Deck over the Traditional Business Plan

• Time-Saving: Writing a detailed traditional business plan could take weeks or months. On the other hand, all three alternatives can be done in a few days or even one night of brainstorming if you have a comprehensive understanding of your business.
• Easier to Understand: Since the information presented is almost entirely factual, it puts focus on what is most important in running the business. They cut away the excess pages of fillers in a traditional business plan and allow investors to see what is driving the business and what is getting in the way.
• Easy to Update: Businesses typically present their business plans to many potential investors before they secure funding. What this means is that you may regularly have to amend your presentation to update statistics or adjust to audience-specific needs. For a traditional business plan, this could mean rewriting a whole section of your plan. For the three alternatives, updating is much easier because they are not voluminous.
• Guide for a More In-depth Business Plan: All three alternatives have the added benefit of being able to double as a sketch of your business plan if the need to create one arises in the future.

Business Plan FAQ

Business plans are important for any entrepreneur who is looking for a framework to run their company over some time or seeking external support. Although they are essential for new businesses, every company should ideally have a business plan to track their growth from time to time.  They can be used by startups seeking investments or loans to convey their business ideas or an employee to convince his boss of the feasibility of starting a new project. They can also be used by companies seeking to recruit high-profile employee targets into key positions or trying to secure partnerships with other firms.

Business plans often vary depending on your target audience, the scope, and the goals for the plan. Startup plans are the most common among the different types of business plans.  A start-up plan is used by a new business to present all the necessary information to help get the business up and running. They are usually used by entrepreneurs who are seeking funding from investors or bank loans. The established company alternative to a start-up plan is a feasibility plan. A feasibility plan is often used by an established company looking for new business opportunities. They are used to show the upsides of creating a new product for a consumer base. Because the audience is usually company people, it requires less company analysis. The third type of business plan is the lean business plan. A lean business plan is a brief, straight-to-the-point breakdown of your ideas and analysis for your business. It does not contain details of your proposal and can be written on one page. Finally, you have the what-if plan. As it implies, a what-if plan is a preparation for the worst-case scenario. You must always be prepared for the possibility of your original plan being rejected. A good what-if plan will serve as a good plan B to the original.

A good business plan has 10 key components. They include an executive plan, product analysis, desired customer base, company analysis, industry analysis, marketing strategy, sales strategy, financial projection, funding, and appendix. Executive Plan Your business should begin with your executive plan. An executive plan will provide early insight into what you are planning to achieve with your business. It should include your mission statement and highlight some of the important points which you will explain later. Product Analysis The next component of your business plan is your product analysis. A key part of this section is explaining the type of item or service you are going to offer as well as the market problems your product will solve. Desired Consumer Base Your product analysis should be supplemented with a detailed breakdown of your desired consumer base. Investors are always interested in knowing the economic power of your market as well as potential MVP customers. Company Analysis The next component of your business plan is your company analysis. Here, you explain how you want to run your business. It will include your operational strategy, an insight into the workforce needed to keep the company running, and important executive positions. It will also provide a calculation of expected operational costs.  Industry Analysis A good business plan should also contain well laid out industry analysis. It is important to convince potential investors you know the companies you will be competing with, as well as your plans to gain an edge on the competition. Marketing Strategy Your business plan should also include your marketing strategy. This is how you intend to spread awareness of your product. It should include a detailed explanation of the company brand as well as your advertising methods. Sales Strategy Your sales strategy comes after the market strategy. Here you give an overview of your company's pricing strategy and how you aim to maximize profits. You can also explain how your prices will adapt to market behaviors. Financial Projection The financial projection is the next component of your business plan. It explains your company's expected running cost and revenue earned during the tenure of the business plan. Financial projection gives a clear idea of how your company will develop in the future. Funding The next component of your business plan is funding. You have to detail how much external investment you need to get your business idea off the ground here. Appendix The last component of your plan is the appendix. This is where you put licenses, graphs, or key information that does not fit in any of the other components.

The business model canvas is a business management tool used to quickly define your business idea and model. It is often used when investors need you to pitch your business idea during a brief window.

A pitch deck is similar to a business model canvas except that it makes use of slides in its presentation. A pitch is not primarily used to secure funding, rather its main purpose is to entice potential investors by selling a very optimistic outlook on the business.

Business plan competitions help you evaluate the strength of your business plan. By participating in business plan competitions, you are improving your experience. The experience provides you with a degree of validation while practicing important skills. The main motivation for entering into the competitions is often to secure funding by finishing in podium positions. There is also the chance that you may catch the eye of a casual observer outside of the competition. These competitions also provide good networking opportunities. You could meet mentors who will take a keen interest in guiding you in your business journey. You also have the opportunity to meet other entrepreneurs whose ideas can complement yours.

Exlore Further

• 12 Key Elements of a Business Plan (Top Components Explained)
• 13 Sources of Business Finance For Companies & Sole Traders
• 5 Common Types of Business Structures (+ Pros & Cons)
• How to Buy a Business in 8 Steps (+ Due Diligence Checklist)

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Martin loves entrepreneurship and has helped dozens of entrepreneurs by validating the business idea, finding scalable customer acquisition channels, and building a data-driven organization. During his time working in investment banking, tech startups, and industry-leading companies he gained extensive knowledge in using different software tools to optimize business processes.

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How To Create The Perfect Business Plan In 12 Steps

A business plan is a step-by-step guide that helps a business owner outline an idea and how to take it from concept to reality. It also includes financial projections, which help business owners plan for the future.

To create the perfect business plan template, you must first understand what components are essential to a successful business. Next, you must map how your company will function in the next five years and its financial goal. 

The next step is to take all of this information and present it in a clear, concise  timeline template  that can be used as a guide for your business. So, let's get started! Here are 12 steps on how to create the perfect business plan.

Table of Contents

What Is A Business Plan?

The traditional business plan is a written document that outlines an organisation's strategy and goals. It is a plan the company presents to investors and potential stakeholders who want to join them in the business venture. It provides a roadmap for how the organisation intends to achieve those goals and serves as the company's foundation.

A well-crafted business plan encompasses an executive summary, product or service overview, market analysis, competitive analysis, and financial projections. To ensure success, businesses create objectives around key performance indicators that are measurable, actionable, and aligned with the company's core values. 

Additionally, developing and adhering to concise action plans for meeting milestones can help companies keep on track from the project discovery phase  to reach their objectives promptly. In short, the purpose of a traditional business plan is to lay the foundation for the creation of any business enterprise.

Primary Purposes Of A Business Plan

A business plan helps keep businesses on track toward achieving their strategic goals in an agile manner while aligning them with changing customer preferences and emerging technologies. The primary purposes of business planning are:

• First and foremost, it is a tool for decision-making for potential investors, lenders, and stakeholders. Essentially, the plan acts as a set of guidelines that provide insight into the key elements that define a newly established or existing business, such as policies, staffing needs, marketing efforts, objectives, financial allocations, etc.
• It analyses entrepreneurs' overly optimistic assumptions regarding long-term strategies and future economic scenarios.
• The plan is an incentive to constantly review these decisions and ensure they are up-to-date with current market trends .

12 Steps To Create The Perfect Business Plan

Every great business starts with a well-crafted plan. But what goes into a good business idea? Here are some key components:

1 – Chose A Business Plan Format 

Before creating a traditional business plan template, it's essential to consider the format most beneficial. There are two commonly used approaches: the simple business plan, aka lean startup business plan and the traditional one.

The lean startup business plan may be suitable for those businesses that need to make decisions quickly and take action without needing in-depth detail. On the other hand, traditional plans contain more comprehensive information on every aspect of your business, such as a specific description of products or services offered and detailed financial statements, which makes them ideal for presenting to potential investors. 

So, deciding which format is best for you can guide each step of your overall approach toward constructing an effective business plan template .

2 – Create An Executive Summary

Once you've researched and discovered vital components to creating a successful business plan, it is essential to summarise these elements to present an executive summary. This section provides an overview of your entire business plan and should include your company's mission statement, vision, values, goals, and objectives. It should also provide an overview of your team, products or services, target market, competitive landscape, and growth strategy.

Moreover, an executive summary highlights your business's specific goals and objectives and what will be necessary for their realisation. In addition, this short section is designed to emphasise any innovative approaches or solutions that make your plan stand out from the competition.

Furthermore, the executive summary should also include a brief overview of your financial projections. This allows potential investors or stakeholders to understand the benefits of supporting your venture. Once this part of your business plan template is complete, you can move on to other steps necessary for launching a successful enterprise.

3 – Include the Company Description

Creating a comprehensive business description is the third step to crafting the perfect business plan. This section should include key details about the company and what it does, such as:

• Organisational structure
• The legal form of ownership
• Information about founders and key figures
• Information about the founders
• Mission and vision statement
• Current status of your company in terms of revenues and employees
• Financial investments that have been made to date
• Listing of corporate goals and objectives
• How your products or services differ from other businesses in its industry while also expressing what sets your product or service apart from competitors

Moreover, As staffing needs inevitably change over time, providing a headcount overview in the company description is an effective way of recording critical information for future business growth . Once you have included all relevant data in your company description, potential investors can make well-informed decisions based on their understanding of your business operations.

4 – Conduct A Market Analysis

The next step in creating the perfect business plan template is to conduct a market analysis. This requires thoroughly examining the external factors that influence and shape a company. Such factors include the industry environment, competitors, customer preferences, and demographic and economic trends.

A target market analysis helps to determine a company's competitive edge to craft strategies that will allow it to stay ahead of its competitors. In addition, this step enables businesses to identify potential buyers whom they can target more effectively through their marketing campaigns . 

Ultimately, conducting an in-depth target market analysis ensures that companies can make well-informed decisions regarding developing their products and services.

5 – Evaluate Your Competition

In this critical section, you must evaluate your competition with B2B data lists and supporting research. And describe who your main competitors are in the space. This includes researching the direct and indirect competitors in the industry, assessing their strengths and weaknesses, and analysing how they are positioned against each other.

This allows you to strategically differentiate your product or service from competitors to create an attractive value proposition for customers. Furthermore, by conducting competitor analysis regularly, businesses can stay informed of any changes in the marketplace and adjust their strategies accordingly. 

This will result in more innovative ways of positioning oneself competitively to attract potential customers and gain a competitive edge over rivals.

6 – Explain Your Service Or Product Line

This step is critical when preparing a plan as it gives potential investors, lenders, and customers all the necessary information about your company's offerings. In this section, you will describe your products or services, including features, benefits, value, and proposition. 

It should also include pricing information, if applicable. Clearly outline the product's features, pricing, relevant details, and any advantages your services offer over the competition.

A thorough explanation of each product line should also include all the necessary specifications, such as material costs, production methods, and expected timeline for completion. Furthermore, be sure to explain how each offering fits into the overall mission of your business, as well as why it will be beneficial in helping you achieve success.

7 – Describe Marketing And Sales Strategies

The next step in writing a business plan is thoroughly describing your product or service's marketing and sales strategies. You must explain who the target market is, what messages have been created for them, and how they will be delivered. 

Additionally, you need to show how sales will be managed, including forecasting sales, pricing strategies, and how you will service customers. Investing the time in detailing your marketing and sales strategies can make a huge difference in whether or not your business proposal receives the funding it needs. 

You must provide the following:

• Thorough research.
• Refined messaging and thoughtful price structures.
• Plans for delivering exceptional customer service.

8 – Outline Funding Requirements

Constructing a perfect plan involves outlining the necessary funding requirements. Understanding the total amount of capital needed and the sources it could come from is vital. 

These may include investments from owners, directors, shareholders, and lenders, government-funded grants, or other forms of financial assistance. Knowing exactly which types of capital you need and where it should come from will make all the difference in evaluating your business plan's success. 

With detailed funding information specified in advance, you can be sure your perfect plan has considered every aspect of capital needs for the future.

9 – Create Financial Projections

Creating financial projections is easily the most challenging when you write a business plan. This step touches on a few different areas, including a balance sheet, profit and loss statement, and cash flow statement. 

Each of these can be daunting to compile, but measuring a business's success over time is imperative. To complete this step accurately, you must evaluate your organisation's current position financially and understand all potential future costs of goods sold and the variance between anticipated expenditures and actual expenses. 

Completing this step properly can give any plan holder excellent insight into how well your business operates throughout its lifespan.

10 – List Customer Segments

Identifying customer segments is an essential step in writing a perfect business plan. Differentiating customers into various segments allows for more focused and targeted marketing for each specific group. Additionally, it helps outline a product pricing structure that considers the different needs of each segment.

When segregating customer segments to create tailored solutions, it is also essential to consider geographic differentiation, distribution channels, and age demographics. All these efforts will prove vital for developing a successful business plan.

11 – Detail Operation Strategies

Creating detailed operation strategies before beginning is essential to ensure all components are complete. This step allows for identifying any possible discrepancies in the plan's layout. Additionally, this section includes delving into all financial aspects and knowing how the actions of specific departments impact others.

Companies should also remember that running a successful business relies on devising practical performance standards, procedures, and processes. To compile a comprehensive plan, you must closely examine all areas of your company's operations while creating an organised yet insightful structure. 

Proving all relevant data collected can support the outlined goals. Crafting these strategies carefully will achieve unparalleled success in various business endeavours or projects.

12 – Create An Appendix

Constructing an appendix for a business plan is a great way to supplement the data in the plan's body. In essence, an appendix serves as a helpful reference tool that will provide additional information that can be beneficial to understanding the complete picture. 

It's also essential for clarifying and corroborating any insights turned up throughout the research stages of developing a business plan. Commonly filed items in the appendix include organisational charts, licenses, resumes and biographies for crucial personnel, supporting documents such as letters of intent or reference, patents, and product specifications. 

Allowing more room for comprehensive study, including an appendix when writing a business plan, will make it stand out from competitors and potentially increase investors' interest level.

Avoid These Common Mistakes When Writing A Business Plan 

Writing a business plan is no small task. It requires time, research, and strategic planning to cover all the bases necessary for success. It would help if you got it right the first time with so much on the line.

To help you with writing, we've compiled a list of five common mistakes you should avoid when writing your business plan. 

Beware Of Boring Business Ideas

One of the most important aspects of any business plan is its concept. If your business idea is innovative and marketable, it will survive today's competitive landscape. 

Before investing too much time and energy into writing a plan, ensure your concept is unique and feasible and has the potential for long-term success. 

No Exit Strategy

You should include a well-thought-out exit strategy in every business plan. An exit strategy outlines how and when you intend to leave your business if things don't work out as planned. 

This could involve selling to another entrepreneur, liquidating your assets, and closing the shop. Whatever the case, having an exit strategy will save you from costly mistakes.

Inaccurate Financial Projections

Financial projections are a significant component of any successful business plan and must be taken seriously. If not done correctly, inaccurate financial projections can lead to unforeseen problems. 

Such as insufficient capitalisation or cash flow issues that could kill your project before it gets off the ground. To ensure accuracy in your projections, it's essential to consult with experienced professionals who specialise in this area before finalising anything in your plan.

Spelling And Grammar Errors

No matter how great an idea may be or how soundly constructed its financials are, spelling and grammar errors can immediately destroy its credibility. 

To avoid this pitfall, ensure all sections are thoroughly edited by yourself or an experienced editor before submitting them to potential investors or lenders.

Unbalanced Teams

The team behind any successful business is just as important as the idea itself. When forming your team to write a business plan, ensure everyone involved has skills and experience related to the project. 

This means filling roles such as marketing expert, financial analyst, operations manager, etc., depending on what kind of company you're starting up and its needs. 

Tips To Make A Standout Business Plan 

As we know, a business plan is essential for any entrepreneur who wants to be successful in their venture. It outlines your goals, strategies, and resources to help you reach them.

The goal of a business plan should be to get potential investors interested in your project on board. And provide them with all the necessary information to make an informed decision. 

Writing a good business plan can be daunting, but it doesn't have to be. Here are practical tips to help you create a business plan that stands out from the rest: 

Know Your Audience

Before you start writing your business plan, you must understand your audience and what they expect from your business. 

Knowing this will help you tailor the content according to your plan so that it's geared toward the people reading it, making it more appealing and convincing.  

Have A Clear Goal

Having a clear goal will give your business plan a candid structure and ensure all aspects are focused on achieving that goal. 

It should clearly define what success looks like for you, whether it's getting funding or launching a new product line.

Invest Time In Research

Researching the industry, market trends, competitors, and potential partners is essential in creating an effective business plan. 

This research will help you make informed decisions and strategies throughout the process and ensure your plans are realistic and achievable based on current market conditions. 

Keep It Short & To The Point

Investors don't have time to read lengthy documents; they want concise information about why they should invest in your project quickly and easily. 

Keep things brief but still provide enough details for them to understand what makes your project unique and profitable. Make sure they remember you when considering potential investments.

Make It Easy To Read

Your business plan should be easily read with clear headings, section titles, and bulleted lists. 

It will ensure that they can quickly scan the document without reading through paragraphs of text, which can become tedious.

Keep Tone & Style Consistent

Consistency across both tone and style will help to keep them engaged. You don't want to confuse investors with conflicting styles throughout sections or pages.

So, use a consistent style and keep the tone formal. It will provide you with all the information they need quickly and effectively without getting distracted from critical points when reading your planning proposal.

Invest In Quality Design & Printing

A well-designed document with quality printing reflects professionalism, which can help build trust with investors. It will give the investors confidence that their money will be put to good use if they invest in projects like yours.

Use A Business Plan Software

Many software programs available online provide templates for creating professional-looking documents. As well as guidance on writing each section and including relevant financial information. They make it easier and faster than starting from scratch when creating an effective business plan. 

These programs also allow you access to editing capabilities at any point throughout the creation process, thus giving complete control over the final output before presenting the finished product. Venngage is wildly popular for providing useful templates to create your business plans with easy-to-use editors in no time. 

An effective business plan takes time, effort, research, planning, and design skills . Your business plan is a document that should grow and change as your business grows and changes. The most important parts of your business plan are your business goals and objectives. These are the foundation upon which you will build your research, company structure, marketing, and sales strategies. Keep these items in your mind as you develop your business plan.

Business Plans FAQs

What's the most important thing to consider when creating a business plan.

It would help if you always started with your purpose. You must figure out your purpose and why you are creating your business. Your business plan should answer these questions.

How do I write a business plan?

The first step to writing a business plan is to write down your purpose and goals. It would help if you decided who will be involved in your business and how you will operate.

How do I make sure my business plan is perfect?

You will want to write your business plan in the third person so it has a different voice than you. You also want to ensure that your business plan is easy to read.

What is the difference between a business plan and a mission statement?

A business plan is a document that describes your company, while a mission statement is a summary of what you stand for.

What should I include in my business plan?

You should include all of the information you have about your business. You should also include information about your company's history, employees, competitors, and plans.

What is the best way to get feedback on my business plan?

Getting feedback on your business plan from your lawyer, accountant, and other advisers would be best.

Is it possible to have too many goals in a business plan?

You may have too many goals, depending on how you plan to achieve them.

What should I consider when making decisions about a new business?

When starting a new business, you must consider your risk tolerance. It would be best to consider how much capital you have available.

How can I make my business plan more concise?

When writing your business plan, you can make it more concise by eliminating unnecessary information. You also can make your business plan more concise by using bullet points to summarise your information.

Author Bio:  Muhammad Aqeel is an experienced professional specialising in content creation. He has been working with Venngage Infographics, a leading graphic design platform. He is an expert in producing creative and engaging content on online tools and software.

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How to Make Your Business Plan Stand Out

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Introduction

When starting a business, having a comprehensive business plan is essential. A business plan outlines the goals and strategy of a business and serves as a guide during the startup and operational process. Having this vital document in place provides a number of important benefits, such as:

• Help you focus on your objectives,
• Clarify your business strategy,
• Ensure progress toward objectives is tracked,
• Attract potential investors, and
• Help secure financing.

Despite the importance of having a business plan, many business owners don't take the time to develop one or they miss essential components that can make or break the success of the plan. It is important to understand the differences between successful and unsuccessful business plans in order to create a stand-out business plan that sets the foundation for long-term success.

Gather Necessary Information

Before you can begin to craft a business plan, you need to know all the necessary information that goes into it. Gathering the right kind of information is the first step to make your business plan stand out. Here are some tips to get you started:

Research Your Industry

Knowing your industry inside-out is essential when pushing your business plan forward. Research up-to-date trends and data quickly to better understand the landscape you’re entering. This will allow you to identify new opportunities, understand competitors, and make your business plan stand out.

Calculate Startup Costs

Every business has upfront costs associated with getting the business up and running. Calculate the cost of the items you need to jumpstart your business, such as licenses, equipment, materials, and so on. Keep in mind, that certain items may have different costs across different markets, so take time to analyze the data accurately.

Inventory Your Business Objectives

Once you have an understanding of the market, the next step is to establish your business objectives. What do you want to achieve with your business? Develop a list of your goals and the actions you need to take to close the gap between where you are now and where you want to be in the future. Take the time to inventory your objectives thoroughly to ensure your business plan stands out.

Choose the Right Format

When it comes to creating an effective business plan, choosing the right format is just as important as choosing the right content. Different types of business plans may include a standard business plan, a Lean startup business plan and a modified traditional business plan. Let’s take a closer look at each one.

Standard Business Plan

The standard business plan is the most comprehensive of the three types and includes the following sections: executive summary, business description and overview, market analysis, product or service venture, marketing, management and financial statements. This type of business plan is used to show potential investors and lenders why they should put their money into the business. It should outline a company’s goals, values and objectives.

Lean Startup Business Plan

The Lean startup business plan is geared towards entrepreneurs who are looking to start their business with minimum resources. It is typically less comprehensive than a standard business plan, allowing entrepreneurs to focus on their ideas and the innovative aspects of their businesses. The Lean startup business plan typically includes executive summary, product venture, marketing strategy, financials, operational strategy, management and risk factors.

Modified Traditional Business Plan

The Modified traditional business plan combines the traditional and Lean startup business plan models. It is ideal for entrepreneurs who have more resources and an idea to grow their business. It typically includes an executive summary, business information, financial projections, marketing analysis, product venture and operational strategy. This type of business plan is also used to interest potential investors and lenders in a business.

Whether you choose the traditional, Lean startup or modified traditional business plan will depend on your business goals and objectives. Whichever format you choose, make sure that the content is thorough, accurate and realistic. A business plan should accurately depict your ideas and forecast the future success of your business.

Create an Executive Summary

As the name implies, the executive summary is designed to give readers an overview of your business plan. It is important to make this as detailed yet concise as possible; interesting, clear and easy to understand. An effective executive summary should include the following points:

Explain How You'll Differentiate Your Business

Your executive summary should explain the unique traits of your business. What is the unique value you offer your customers and how does that set you apart from the competition? Explain the services you provide, how you will deliver superior customer service, and the benefits of why customers should choose you.

Focus on Long-Term Goals and Success

The executive summary should include your vision for the future of the business and provide a clear plan for how you will bring it all together. Describe the short-term and long-term goals, and articulate how you plan to achieve those goals. Your executive summary should provide an overview of the expected future successes of the business.

State the Problem and How You'll Solve It

Finally, it's important to provide information on the problem you are solving, and how your business will solve it. Describe the current trends or specific industry problem, and how your business can provide a solution. Explain what you have done to research and analyze the issue, and demonstrate your understanding of the competitive landscape. This will help set you apart and show that you are serious about solving the problem.

Do Market Research

As part of your business plan, market research is essential to understanding the current and potential industry. By taking the time to do market research, you can increase the likelihood of your plan standing out against the competition. Here are three important steps to consider as part of your market research:

Identify Competitors

Identifying competitors is an essential part of conducting market research. Taking the time to understand who your competitors are, what products and services they offer and how successful they are can give you a greater understanding of the market and potential customers. Knowing your competitors can also help you develop a competitive advantage that can set you apart from the crowd.

Predict Customer Needs

In addition to learning from your competitors, you should take the time to consider what your customers’ needs and wants may be. This will help you create a product or service that is uniquely tailored to your customers’ needs. You should also consider what marketing tactics they may be most receptive to, as this can help you effectively reach them.

Analyze Industry Trends

By analyzing industry trends, you can get a better understanding of the current state of the market. Tracking the successes and failures of competitors, as well as keeping an eye on new technology and services, can help you anticipate potential changes and position yourself to take advantage of any opportunities that may arise. This knowledge can be used to your advantage when developing your business plan.

Obtain Financial Statements

Before you can make your business plan stand out, you need to obtain accurate financial statements. Financial statements provide a clear overview of a business’s performance. Accurate and up-to-date financial statements are an essential part of any business plan and can make all the difference in whether or not you stand out amongst the competition. Here are a few ways you can use financial statements to make your business plan stand out:

Create Profit and Loss Forecasts

Creating a profit and loss forecast is an excellent way to make your business plan stand out. This allows you to predict how your business will perform over a certain period of time and gives potential investors a better understanding of the financial resources and potential of your business. By taking the time to develop a detailed and accurate forecast, potential investors can gain insight into your business’s future success and make a well-informed decision.

Detail How Investments Will Be Allocated

When businesses decide to invest in a company, they want to know how their investment will be used. This is where detailing how investments will be allocated in your business plan comes in. Make sure to include specific information and goals for each asset and how the funds will be used throughout the period. This will ensure that potential investors understand exactly how the money will be used and will make your business plan stand out.

Explain Expected Return on Investment

Investors need to know that they can expect a return on their investment. Providing details on how much return on investment they can expect in the short-term and long-term is an excellent way to make your business plan stand out. You should also be prepared to provide clear and concise explanations of the factors that will influence the return on investment. This will help to demonstrate that you have an accurate understanding of the financial situation and potential of your business, making your business plan all the more attractive.

Although creating a business plan can seem daunting, following the steps outlined in this post can help make the task easier and lead to a plan that stands out. Whether you use the lean business model approach or the traditional business plan approach, there are organized steps to guide a business plan development. Craft a tailored executive summary and lay out a plan for meeting marketing, achievement, financial and implementation goals. Describe a well-rounded product roadmap and detail a strategy to monitor success and implementation of the plan. Additionally, consider ways to make your plan stand out, such as tackling potential risks, exploring potential deterrents, and using visuals to make content easier to understand.

To recap, key points from the business plan include:

• Crafting a tailored executive summary
• Laying out a plan to meet marketing, achievement, financial, and implementation goals
• Describing a product roadmap
• Monitoring success and implementation
• Considering potential risks and deterrents
• Using visuals to simplify understanding

By taking these steps, you can create a business plan that stands out and provides your business with well-defined objectives and strategies to successfully meet them. After creating a thorough business plan, the next step is to start implementing it. The key is to stay flexible, adjust when needed, and evaluate your progress to ensure successful implementation.

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How to Make Your Business Plan Stand Out | Tory Burch Foundation

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One of the first steps to business planning is determining your target market and why they would want to buy from you.

For example, is the market you serve the best one for your product or service? Are the benefits of dealing with your business clear and are they aligned with customer needs? If you’re unsure about the answers to any of these questions, take a step back and revisit the foundation of your business plan.

The following tips can help you clarify what your business has to offer, identify the right target market for it and build a niche for yourself.

BE CLEAR ABOUT WHAT YOU HAVE TO OFFER

Ask yourself: Beyond basic products or services, what are you really selling? Consider this example: Your city or town probably has several restaurants all selling one fundamental product—food. But each is targeted at a different need or clientele.

One might be a drive-thru fast food restaurant, perhaps another sells pizza in a rustic Italian kitchen, and maybe there’s a fine dining seafood restaurant that specializes in wood-grilled fare. All these restaurants sell meals, but they sell them to targeted clientele looking for the unique qualities each has to offer. What they are  really  selling is a combination of product, value, ambience and brand experience.

When starting a business, be sure you understand what makes your business unique. What needs does your product or service fulfill? What benefits and differentiators will help your business stand out from the crowd?

DON’T BECOME A JACK-OF-ALL-TRADES – LEARN TO STRATEGIZE

It’s important to clearly define what you’re selling. You do not want to become a jack-of-all-trades and master of none because this can have a negative impact on business growth. As a smaller business, it’s often a better strategy to divide your products or services into manageable market niches. Small operations can then offer specialized goods and services that are attractive to a specific group of prospective buyers.

IDENTIFY YOUR NICHE

Creating a niche for your business is essential to success. Often, business owners can identify a niche based on their own market knowledge, but it can also be helpful to conduct a market survey with potential customers to uncover untapped needs. During your research process, identify the following:

• Which areas your competitors are already well-established in
• Which areas are being ignored by your competitors
• Potential opportunities for your business

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30 Ways to Make Your Business Stand Out From the Crowd

Let’s face it, starting a business can be very easy, but staying in business can be very difficult given that our customers have too many choices on where to spend their hard-earned cash.  So the question I posed to small business owners was “How do you make your business stand out from the crowd so that people will choose to spend their dollars with you?”  Here are 30 of the best responses that I received from businesses located all over the world!  I hope there’s a few that resonate with you.

1. Give ‘Em What They Want

For us, at The Burger Dive, it was all about offering something that we didn’t think our city really had, and that we believed would be wanted. Our city is overflowing with fast food burger chains, and a couple of higher end burger chains, but it really lacked that one little mom and pop burger joint that everyone loves. We have maintained our standards from day one, using only fresh and quality ingredients. We make everything ourselves, and it has paid off. People tell us daily “this is the best I’ve ever had,” and they say they can really tell the difference between us and our larger chain competitors. It really comes down to freshness, and also our creativity with our burgers and our specials.

Thanks to Brad Halsten, The Burger Dive

2. Become a Winner

We have won multiple awards and we are proud of them. The awards have become not only a pat on the back, but a great marketing tool that really gets our name out there. The award definitely holds its value as the years go on.

Thanks to Matt Pringle, DCP Productions

3.  Become Really Good at Something Really Difficult

We are a team of professional organizers who specialize in the severely cluttered and hoarders. We actually receive referrals from other organizers because this is a very difficult segment of our industry and is too much for many organizers.

We allow the client to be in command of their costs by charging hourly rather than making them buy a package up front and we make sure they are very comfortable with their organizer since this is SUCH an intimate business. We offer a quicker turn-around time if they are up against a deadline (often imposed by the county) while still allowing them to keep their dignity and self-esteem.

Thanks to Maria Spetalnik, ConquerTheClutter

Related: Media Branding Tips

4. Cater to Your Customer

Madcapz are specifically made for women by a woman. Most ball caps are made for men so they are too big and don’t fit women well. Our caps are low profile, meaning there is less room in the crown and this is better suited to women’s heads.

Also, Madcapz are available in over 20 fabulous prints; most baseball caps are in boring, drab colors and splattered with corporate and sports logos.

And finally, a growing trend with our buyers: they love that our baseball caps are Made in the USA! Most ball caps today are made in Bangladesh and China, ours are made here and buyers love that!

Thanks to Carrie Bell, Madcapz

5.  Tap into What Works and Make it Your Own

We are a military/patriotic fashion apparel brand. We just got started about 2 years ago but within 18 months had the most popular website among our competitors and the second largest following of fans on Facebook. How did I do it? A lot of long nights… But seriously, we separated ourselves. When I started the business I really just wanted something cool to wear that looked modern but had a military or patriotic twist to it, being a veteran of the United States Army and a Drill Sergeant at the time.

We took modern cool looks and quality from what’s currently hot in the market, put a patriotic or military twist on our designs and then guaranteed our apparel for life like another apparel retailer does. We really didn’t innovate anything, but took what works from other successful companies and put them together to come up with us, Grunt Style. It’s worked fantastically and we continue to explode with growth.

Thanks to Drill Sergeant Daniel Alarik, Grunt Style LLC

6. Specialize: Be The Expert-Then Deliver

There are a ton of freelance writers, but not many have expertise in my niches (aging, senior care, evidence-based health advice, and high-end SEO friendly content for websites). My clients come to me for expertise they haven’t seen elsewhere. They could pay cheap prices for lesser work, but they know that with me, they’ll get exceptional content that beats the competition’s. So I help their businesses stand out too! I also strive to be outstanding to work with.

Thanks to Leigh Ann Otte of LA Wordsmith

7. Ice The Cake

So many businesses advertise their “quality” or “speed” as if the competition doesn’t have this. Come up with something the competition doesn’t have, something extra – icing on the cake. I don’t market this enough – maybe I should – but when we write a book for a client, we will happily prepare a synopsis and query letter at no extra cost. We only bring this forward when a lead asks about what comes after the writing. It helps close the sale rather than generate new leads.

Thanks to David Leonhardt of THGM writers

8. Be Authentic, Be Bold, Be Different!

Here is something different in this day and age, NEVER TAKE ANY ONE for granted, listen to your clients. provide value in your products and service, and go above and beyond to make people feel like they are your only customer. Return to simple values such as face to face marketing, handshakes, and then use modern day technology to stay in front of them and provide resources, education establishing yourself as the authority in your field.

Thanks to Marc Abelman, Las Vegas Interior Design

9. Be Honorable and Forthright and You are Golden

Honest straightforward communication and portrayal of your product. No gimmicks schmooze.

Thanks to Lys Fulda, Sphinx Group

10. Cater to A Specific Niche

We make accommodations for, and cater, to special needs kids.

Thanks to David Perkins, Bubble Swim School

11. Specialize

I am a freelance copywriter competing with dozens, if not hundreds, of other freelance copywriters for assignments. However, with a degree in Chemistry and an insatiable appetite for understanding anything related to science and technology, I have a unique selling proposition. There are plenty of good writers “out there” who are terrified of anything having to do with technology. There are also plenty of highly skilled technical people who can’t tell you in English exactly what it is that they do. I have the rare ability to interview a scientist or an engineer, or read a very technical paper, and translate the “Techno-Babble” or “technical gobbledygook” into compelling English that even people with no technical training can read and understand. My corporate logo is a red apple, and my tag line is, “Technical copy with a delicious difference. Like an apple, it will be “red.” This is how I differentiate my business from my competition.

Thanks to Robert P. Baker, Copy To Go, Inc.

12. Create a Better Experience

Ringadoc puts patients in touch with doctors from any phone, anywhere, anytime. Our meticulous attention to technology separates us from our competitors. We devote just as much time to perfecting our software as we do to finding the best team of doctors, because we believe great technology goes a long way in creating a better healthcare experience. Most recently, we developed the first app that enables patients and doctors to video conference right on their Apple and Android devices.

Thanks to Stephanie A. Higa, Ringadoc Communications

13. Position Yourself As The Expert In Your Field

I try to not be a jack of all trades. We have a tendency to say, “Oh sure, I can do that.” By doing so you quickly find yourself in an over promise, under deliver situation. If you don’t spread yourself too thin, it gives you a chance to perfect the areas that you are really good at. That way you can be THE person in town who is the expert to work with. Be sure to have a list of people you trust to suggest in the fields that you don’t cover. You want to be the person your client consults for referrals!

Thanks to Darlynn Nangano of Little Blog Dress Media

14. Do it Differently Than Your Competitors

Listia.com is an online marketplace where you can buy and sell things without money. You post auction-style listings to earn credits, and can then use those credits to buy things from other users. It’s a great way to trade things you don’t use for things you actually want.

Our main competitive edge is being a truly free service, as opposed to eBay who charges listing fees to sell your things. In addition, we offer a charity donation feature so users can essentially turn the things they don’t want into charitable donations (www.listia.com/charities). We’ve captured a lot of users from the eBay market as well as the Free listings on Craigslist, and hope to continue expanding our services so everyone can barter instead of buy.

Thanks to Mabel Yoshimoto, Listia.com

15. Tell People HOW You Are Different

I changed my tagline last year to: We are not the biggest mover, but our clients tell us we are the BEST!

Then all of my follow-up with prospects and customers outlines how/why our clients say we are the best. This puts psychological triggers in their head so once we provide services for them (and my guys in the field are aware of this campaign), then when we ask for a testimonial they already have it in their head, that we are the best, and are more inclined to put that in their testimonial.

Thanks to Jim Howey of TechMove

16. Speak Their Language

We are the first marketing communication firm in the world to achieve LEED Platinum. LEED stands for Leadership in Energy and Environmental Design and was established in 1993 by the U.S. Green Building Council to encourage sustainable building practices in the U.S. My traditional marketing communications firm has clients in the building materials industry and we wanted to increase that business. Getting accredited, teaching LEED and finally getting the office Certified at the highest level tells our potential clients that we know what their customers are wanting in sustainable building products and that we can speak the customer’s language.

Thanks to Chuck Lohre, Lohre & Associates Marketing Communications

17. Niche-ify!

There are many companies that offer marketing services to small businesses. What makes Market Mommy different? We cater to the mom business owner who is trying to get her business off the ground in an affordable manner. All of our services are extremely low cost, yet professional. We help moms brainstorm and develop a marketing plan that is both effective and realistic. Our rates are low and we suggest other marketing efforts that are affordable as well.

Thanks to Dawn E. Berryman, Founder, Market Mommy®

18. Be Yourself, Have Personality

For many freelancers, we ARE our business. There’s just one person, just us. So, just like in personal relationships, just be yourself. Your business is unique because you are unique. Allow your personality to shine through. You don’t have to be the biggest or the fanciest or the most well-known company to be successful. Just look at me. There are bazillion web designers in Phoenix. What sets me apart? I treat clients like friends and let them get to know me.

Thanks to Perri Collins of Perri Collins Consulting

19. Partner with Your Customers

My company stands out because we make our members/customers revenue sharing partners in our business. Our referral program pays our members a percentage of the earnings of the customers they refer to us. They earn money without even shopping and establish residual income for themselves.

Thanks to Frank DeBlasi, Hoopla Doopla, Inc.

20. Helping Nurses Become Heroes

I recently launched a nurse speaking, training, and consulting business. At first, my sales message looked like the others (telling potential clients I could help improve their nurses’ clinical and professional…etc). Ugh. I looked like a cookie cutter. So, I got to the core of what I was trying to do and simplified my message. I want nurses to believe they are heroes; that making a difference is a choice. What makes me different is I tap into their emotions and help them believe in themselves.

Thanks to Renee Thompson of RTConnections

21. Be Old School!

I know that what makes my business stand out shouldn’t be so simple, or old school, but it is. I live by this motto: “Do What You Say You Will Do!” I know it’s not the golden rule, but pretty close to it. I am constantly amazed that my clients thank me for doing such a simple thing as returning a phone call. But, when your friendly competitors take days, or do it not at all, it makes you stand out from a huge pack. All you have is your word, respect it and others will respect you!

Thanks to Karen Berg of United Brokers Group

22. Personal Recommendations and Testimonials and Celebrity Endorsements

I work as a professional magician in the UK and it’s important to stand out in some way as there are hundreds of magicians fighting for the same (relatively small) amount of business and little to differentiate them.  One thing I have done is to make sure I get personal recommendations and testimonials from people who have hired me. It’s always useful to have plenty of these on your website, they really help. People can be a bit wary, as they know these things can easily be faked, so actual screenshots of any written “thank yous” are very powerful.

Also, I love celebrity endorsements. They are tricky to come by, but worth their weight in gold. I was working in a restaurant and an old guy came in with his family. I went over to do some magic for them and (OMG!) it was Jimmy Page from Led Zeppelin! I made sure to get a photo with him and put it onto my website; I’ve had several bookings as a result from people who say “If you’re good enough for Jimmy Page then you’re good enough for me!” Always be ready to grab a picture with any celebrity you come across, even if you only speak to them for a few seconds grab that shot, it will be invaluable.

Thanks to Mike Stoner (magician) Magician For Hire UK

23. Provide a Money-Back Guarantee

We offer a 100% money-back guarantee for our services. This means that if one or more objectives are not met within the agreed upon deadlines, we will give the client back every penny of their fee. At first glance, there appears to be a lot of risk involved with doing this. However, we’re confident in our experience and the level of services we provide to our clients.

Thanks to Tim Parkin, Parkin Web Development, LLC

24. Provide a Free Trial

GovernmentAuctions.org is a subscription-based service that gives the customer the best and cheapest possible way to view and participate in government auctions via our site. We have changed the game by offering people an initial three-day free trial membership which has never been done before by anybody in the industry.

Thanks to Ian Aronovich, GovernmentAuctions.org

25. Offer Something that Your Competitors Don’t

In Phoenix we have a lot of problems with car windshields breaking due to rocks from never ending road construction and excessive heat.  The problem was that you could get your windshield fixed one day and then need it again the next.  Our glass company, Desert Breeze Glass become the exclusive licensee of Diamon Fusion glass guard which is a coating that is applied to the exterior portion of the windshield making it water and rock resistant. We have several insurance agents who have said their glass claims have reduced from the repeat glass offenders since applying DFI to their windshields.  This makes agents refer customers to us again and again.

Thanks to Cathryn Curcio of Desert Breeze Glass

26. Don’t Follow the Dots, Create Your Own Path

At SaveOnBrew.com we have both a blessing and a curse by having a very unique product.  It is easy to share with people and we often hear “why didn’t I think of that.”  The downfall is we have no marketing model to follow.  We had to become just as unique in our marketing techniques as our product.

Thanks to Jennifer Davidson Director of Operations SaveOnBrew , LLC.

27. “World Change is How We Roll.”

Sevenly is a social good startup that stands out from the competition in several key ways. Lots of people sell cool t-shirts, but we sell tees with a cause. Each purchase gives $7 to the charity of the week. We also standout by getting our customers involved in promoting the cause. For example this week, when we hit $4,900, we’ll have raised enough to pay for a clean water well for a village in Peru.

Thanks to Justin Palmer, Sevenly

28. It’s All in The Name

I think our memorable name differentiates us from competitors: Fatpacking

Obviously people don’t base their decision to join our weight loss backpacking trips by name alone, but it does get them to at least consider us.

Thanks to Steve, FatPacking.com

29. Stand Out on Every Level

Boxiecat.com is the first provider of mail-order subscription-based home cat litter delivery. The number one way we stand out is by being more convenient. In truth, we also strive to provide a better product in a more green way and to have great customer interactions. We really try to stand out on every level, as a startup, we know that’s our best chance for success.

Thanks to Josh Wiesenfeld, Boxiecat.com

Related: Sign up to receive the StartupNation newsletter!

30. Send Your Message in a Unique Package

It’s trickier to get the attention of the decision maker with your message. Two ideas we’ve used that have worked: (1) We have emailed a letter to a nearby pizza restaurant, they printed it out & delivered the pizza (vegan & cheese free since we publish a newspaper on natural preventive health) with our letter taped on top of the box. This idea was a big hit and helped establish the relationship and sale. (2)

Send your info by mail in nice 4 color/gloss file folders (label goes horizontal).

Thanks to Thomas Katovsky of Healthy Referral Newspaper

Want to get more inexpensive and practical small business marketing ideas, grab a free ebook called  “Build Buzz for Your Biz, 23 Creative and Inexpensive Marketing Strategies That Will Get You Noticed” at http://23kazoos.com.

Wendy Kenney is the bestselling author of  How to Build Buzz for Your Business available on Amazon.com, and has been featured in the  Wall Street Journal ,  USA Today, and  Newsday.

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How to Write the Perfect Business Plan: A Comprehensive Guide

Thinking of starting a business here's the best step-by-step template for writing the perfect business plan when creating your startup..

Maybe you think you don't need a step-by-step guide to writing a great business plan . Maybe you think you don't need a template for writing a business plan. After all, some entrepreneurs succeed without writing a business plan. With great timing, solid business skills, entrepreneurial drive, and a little luck , some founders build thriving businesses without creating even an  informal business plan . 

But the odds are greater that those entrepreneurs will fail.

Does a business plan make startup success inevitable? Absolutely not. But great planning often means the difference between success and failure. Where your entrepreneurial dreams are concerned, you should do everything possible to set the stage for success.

And that's why a great business plan is one that helps you  succeed .

The following is a comprehensive guide to creating a great business plan. We'll start with an overview of key concepts. Then we'll look at each section of a typical business plan:

Executive Summary

Overview and objectives, products and services, market opportunities, sales and marketing.

• Competitive Analysis

Management Team

Financial analysis.

So first let's gain a little perspective on why you need a business plan.

Key Concepts

Many business plans are fantasies. That's because many aspiring entrepreneurs see a business plan as simply a tool--filled with strategies and projections and hyperbole--that will convince lenders or investors the business makes sense.

That's a huge mistake.

First and foremost, your business plan should convince  you  that your idea makes sense--because your time, your money, and your effort are on the line.

So a solid business plan should be a blueprint for a successful business . It should flesh out strategic plans, develop marketing and sales plans, create the foundation for smooth operations, and maybe--just maybe--persuade a lender or investor to jump on board.

For many entrepreneurs, developing a business plan is the first step in the process of deciding whether to actually start a business. Determining if an idea fails on paper can help a prospective founder avoid wasting time and money on a business with no realistic hope of success.

So, at a minimum, your plan should:

• Be as objective and logical as possible. What may have seemed like a good idea for a business can, after some thought and analysis, prove not viable because of heavy competition, insufficient funding, or a nonexistent market. (Sometimes even the best ideas are simply ahead of their time.)
• Serve as a guide to the business's operations for the first months and sometimes years, creating a blueprint for company leaders to follow.
• Communicate the company's purpose and vision, describe management responsibilities, detail personnel requirements, provide an overview of marketing plans, and evaluate current and future competition in the marketplace.
• Create the foundation of a financing proposal for investors and lenders to use to evaluate the company.

A good business plan delves into each of the above categories, but it should also accomplish other objectives. Most of all, a good business plan is  convincing . It proves a case. It provides concrete, factual evidence showing your idea for a business is in fact sound and reasonable and has every chance of success.

Who  must  your business plan convince?

First and foremost, your business plan should convince  you  that your idea for a business is not just a dream but can be a viable reality. Entrepreneurs are by nature confident, positive, can-do people. After you objectively evaluate your capital needs, products or services, competition, marketing plans, and potential to make a profit, you'll have a much better grasp on your chances for success.

And if you're not convinced, fine: Take a step back and refine your ideas and your plans.

Who  can  your business plan convince?

1. Potential sources of financing.   If you need seed money from a bank or friends and relatives, your business plan can help you make a great case. Financial statements can show where you have been. Financial projections describe where you plan to go.

Your business plan shows how you will get there. Lending naturally involves risk, and a great business plan can help lenders understand and quantity that risk, increasing your chances for approval.

2. Potential partners and investors. Where friends and family are concerned, sharing your business plan may not be necessary (although it certainly could help).

Other investors--including angel investors or venture capitalists--generally require a business plan in order to evaluate your business.

3. Skilled employees . When you need to attract talent, you need  something  to show prospective employees since you're still in the startup phase. Early on, your business is more of an idea than a reality, so your business plan can help prospective employees understand your goals--and, more important, their place in helping you achieve those goals.

4. Potential joint ventures. Joint ventures are like partnerships between two companies. A joint venture is a formal agreement to share the work--and share the revenue and profit. As a new company, you will likely be an unknown quantity in your market. Setting up a joint venture with an established partner could make all the difference in getting your business off the ground.

But above all, your business plan should convince  you  that it makes sense to move forward.

As you map out your plan, you may discover issues or challenges you had not anticipated.

Maybe the market isn't as large as you thought. Maybe, after evaluating the competition, you realize your plan to be the low-cost provider isn't feasible since the profit margins will be too low to cover your costs.

Or you might realize the fundamental idea for your business is sound, but how you implement that idea should change. Maybe establishing a storefront for your operation isn't as cost-effective as taking your products directly to customers--not only will your operating costs be lower, but you can charge a premium since you provide additional customer convenience.

Think of it this way. Successful businesses do not remain static. They learn from mistakes, and adapt and react to changes: changes in the economy, the marketplace, their customers, their products and services, etc. Successful businesses identify opportunities and challenges and react accordingly.

Creating a business plan lets you spot opportunities and challenges without risk. Use your plan to dip your toe in the business water. It's the perfect way to review and revise your ideas and concepts before you ever spend a penny.

Many people see writing a business plan as a "necessary evil" required to attract financing or investors. Instead, see your plan as a no-cost way to explore the viability of your potential business and avoid costly mistakes.

Now let's look at the first section of your business plan: The Executive Summary.

The Executive Summary is a brief outline of the company's purpose and goals. While it can be tough to fit on one or two pages, a good Summary includes:

• A brief description of products and services
• A summary of objectives
• A solid description of the market
• A high-level justification for viability (including a quick look at your competition and your competitive advantage)
• A snapshot of growth potential
• An overview of funding requirements

I know that seems like a lot, and that's why it's so important you get it right. The Executive Summary is often the make-or-break section of your business plan.

A great business solves customer problems. If your Summary cannot clearly describe, in one or two pages, how your business will solve a particular problem and make a profit, then it's very possible the opportunity does not exist--or your plan to take advantage of a genuine opportunity is not well developed.

So think of it as a snapshot of your business plan. Don't try to "hype" your business--focus on helping a busy reader get a great feel for what you plan to do, how you plan to do it, and how you will succeed.

Since a business plan should above all help you start and grow your business, your Executive Summary should first and foremost help you do the following.

1. Refine and tighten your concept.

Think of it as a written elevator pitch  (with more detail, of course). Your Summary describes the highlights of your plan, includes only the most critical points, and leaves out less important issues and factors.

As you develop your Summary, you will naturally focus on the issues that contribute most to potential success. If your concept is too fuzzy, too broad, or too complicated, go back and start again. Most great businesses can be described in several sentences, not several pages.

2. Determine your priorities.

Your business plan walks the reader through your plan. What ranks high in terms of importance? Product development? Research? Acquiring the right location? Creating strategic partnerships?

Your Summary can serve as a guide to writing the rest of your plan.

3. Make the rest of the process easy.

Once your Summary is complete, you can use it as an outline for the rest of your plan. Simply flesh out the highlights with more detail.

Then work to accomplish your secondary objective by focusing on your readers. Even though you may be creating a business plan solely for your own purposes, at some point you may decide to seek financing or to bring on other investors, so make sure your Summary meets their needs as well. Work hard to set the stage for the rest of the plan. Let your excitement for your idea and your business shine through.

In short, make readers want to turn the page and keep reading. Just make sure your sizzle meets your steak by providing clear, factual descriptions.

How? The following is how an Executive Summary for a bicycle rental store might read.

Introduction

Blue Mountain Cycle Rentals will offer road and mountain bike rentals in a strategic location directly adjacent to an entrance to the George Washington National Forest. Our primary strategy is to develop Blue Mountain Cycle Rentals as the most convenient and cost-effective rental alternative for the thousands of visitors who flock to the area each year.

Once underway, we will expand our scope and take advantage of high-margin new equipment sales and leverage our existing labor force to sell and service those products. Within three years we intend to create the area's premier destination for cycling enthusiasts.

Company and Management

Blue Mountain Cycle Rentals will be located at 321 Mountain Drive, a location providing extremely high visibility as well as direct entry and exit from a primary national park access road. The owner of the company, Marty Cycle, has over 20 years experience in the bicycle business, having served as a product manager for Acme Cycles as well as the general manager of Epic Cycling.

Because of his extensive industry contacts, initial equipment inventory will be purchased at significant discounts from OEM suppliers as well by sourcing excess inventory from shops around the country.

Because of the somewhat seasonal nature of the business, part-time employees will be hired to handle spikes in demand. Those employees will be attracted through competitive wages as well as discounts products and services.

460,000 people visited the George Washington National Forest during the last 12 months. While the outdoor tourism industry as a whole is flat, the park expects its number of visitors to grow over the next few years.

• The economic outlook indicates fewer VA, WV, NC, and MD cycling enthusiasts will travel outside the region
• The park has added a camping and lodging facilities that should attract an increased number of visitors
• The park has opened up additional areas for trail exploration and construction, ensuring a greater number of single-track options and therefore a greater number of visitors

The market potential inherent in those visitors is substantial. According to third-party research data, approximately 30 percent of all cyclists would rather rent than transport their own bicycles, especially those who are visiting the area for reasons other than cycling.

Competitive Advantages

The cycling shops located in Harrisonburg, VA, are direct and established competitors. Our two primary competitive advantages will be location and lower costs.

Our location is also a key disadvantage where non-park rentals are concerned. We will overcome that issue by establishing a satellite location in Harrisonburg for enthusiasts who wish to rent bicycles to use in town or on other local trails.

We will also use online tools to better engage customers, allowing them to reserve and pay online as well as create individual profiles regarding sizes, preferences, and special needs.

Financial Projections

Blue Mountain Cycle Rentals expects to earn a modest profit by year two based on projected sales. Our projections are based on the following key assumptions:

• Initial growth will be moderate as we establish awareness in the market
• Initial equipment purchases will stay in service for an average of three to four years; after two years we will begin investing in "new" equipment to replace damaged or obsolete equipment
• Marketing costs will not exceed 14 percent of sales
• Residual profits will be reinvested in expanding the product and service line

We project first-year revenue of $720,000 and a 10 percent growth rate for the next two years. Direct cost of sales is projected to average 60 percent of gross sales, including 50 percent for the purchase of equipment and 10 percent for the purchase of ancillary items. Net income is projected to reach $105,000 in year three as sales increase and operations become more efficient.

And so on ...

Keep in mind this is just a made-up example of how your Summary might read. Also keep in mind this example focused on the rental business, so a description of products was not included. (They'll show up later.) If your business will manufacture or sell products, or provide a variety of services, then be sure to include a Products and Services section in your Summary. (In this case the products and services are obvious, so including a specific section would be redundant.)

Bottom line:  Provide some sizzle in your Executive Summary, but make sure you show a reasonable look at the steak, too.

Providing an overview of your business can be tricky, especially when you're still in the planning stages. If you already own an existing business, summarizing your current operation should be relatively easy; it can be a lot harder to explain what you plan to  become .

So start by taking a step back.

Think about what products and services you will provide, how you will provide those items, what you need to have in order to provide those items, exactly who will provide those items, and most important, whom you will provide those items to.

Consider our bicycle rental business example. It's serves retail customers. It has an online component, but the core of the business is based on face-to-face transactions for bike rentals and support.

So you'll need a physical location, bikes, racks and tools and supporting equipment, and other brick-and-mortar related items. You'll need employees  with a very particular set of skills  to serve those customers, and you'll need an operating plan to guide your everyday activities.

Sound like a lot? It boils down to:

• What you will provide
• What you need to run your business
• Who will service your customers, and
• Who your customers are.

In our example, defining the above is fairly simple. You know what you will provide to meet your customer's needs. You will of course need a certain quantity of bikes to service demand, but you will not need a number of different types of bikes. You need a retail location, furnished to meet the demands of your business. You need semi-skilled employees capable of sizing, customizing, and repairing bikes.

And you know your customers: cycling enthusiasts.

In other businesses and industries, answering the above questions can be more difficult. If you open a restaurant, what you plan to serve will in some ways determine your labor needs, the location you choose, the equipment you need to purchase. And, most important, it will help define your customer. Changing any one element may change other elements; if you cannot afford to purchase expensive kitchen equipment, you may need to adapt your menu accordingly. If you hope to attract an upscale clientele, you may need to invest more in purchasing a prime location and creating an appealing ambience.

So where do you start? Focus on the basics first:

• Identify your industry. Retail, wholesale, service, manufacturing, etc. Clearly define your type of business.
• Identify your customer. You cannot market and sell to customers until you know who they are.
• Explain the problem you solve. Successful businesses create customer value by solving problems. In our rental example, one problem is cycling enthusiasts who don't--or can't--travel with bikes. Another problem is casual cyclists who can't--or choose not to--spend significant sums on their own bikes. The rental shop will solve that problem by offering a lower-cost and convenient alternative.
• Show how you will solve that problem. Our rental shop will offer better prices and enhanced services like remote deliveries, off-hours equipment returns, and online reservations.

If you are still stuck, try answering these questions. Some may pertain to you; others may not.

• Who is my average customer? Who am I targeting? (Unless you plan to open a grocery store, you should be unlikely to answer, "Everyone!")
• What pain point do I solve for my customers?
• How will I overcome that paint point?
• Where will I fail to solve a customer problem, and what can I do to overcome that issue? (In our rental example, one problem is a potential lack of convenience; we will overcome that issue by offering online reservations, on-resort deliveries, and drive-up equipment returns.)
• Where will I locate my business?
• What products, services, and equipment do I need to run my business?
• What skills do my employees need, and how many do I need?
• How will I beat my competition?
• How can I differentiate myself from my competition in the eyes of my customers? (You can have a great plan to beat your competition, but you also must win the perception battle among your customers. If customers don't feel you are different, then you aren't truly different. Perception is critical.)

Once you work through this list you will probably end up with a lot more detail than is necessary for your business plan. That is not a problem: Start summarizing the main points. For example, your Business Overview and Objectives section could start something like this:

History and Vision

Blue Mountain Cycle Rentals is a new retail venture that will be located at 321 Mountain Drive, directly adjacent to an extremely popular cycling destination. Our initial goal is to become the premier provider for bicycle rentals. We will then leverage our customer base and position in the market to offer new equipment sales as well as comprehensive maintenance and service, custom equipment fittings, and expert trail advice.

• Achieve the largest market share bicycle rentals in the area
• Generate a net income of $235,000 at the end of the second year of operation
• Minimize rental inventory replacement costs by maintaining a 7 percent attrition rate on existing equipment (industry average is 12 percent)

Keys to Success

• Provide high-quality equipment, sourcing that equipment as inexpensively as possible through existing relationships with equipment manufacturers and other cycling shops
• Use signage to attract visitors traveling to the national forest, highlighting our cost and service advantage
• Create additional customer convenience factors to overcome a perceived lack of convenience for customers planning to ride roads and trails some distance away from our shop
• Develop customer incentive and loyalty programs to leverage customer relationships and create positive word of mouth

You could certainly include more detail in each section; this is simply a quick guide. And if you plan to develop a product or service, you should thoroughly describe the development process as well as the end result.

The key is to describe what you will do for your customers--if you can't, you won't  have  any customers.

In the Products and Services section of your business plan, you will clearly describe--yep--the products and services your business will provide.

Keep in mind that highly detailed or technical descriptions are not necessary and definitely not recommended. Use simple terms and avoid industry buzzwords.

On the other hand, describing how the company's products and services will differ from the competition is critical. So is describing why your products and services are needed if no market currently exists. (For example, before there was Federal Express, overnight delivery was a niche business served by small companies. FedEx had to define the opportunity for a new, large-scale service and justify why customers needed--and would actually  use --that service.)

Patents, copyrights, and trademarks you own or have applied for should also be listed in this section.

Depending on the nature of your business, your Products and Services section could be very long or relatively short. If your business is product-focused, you will want to spend more time describing those products.

If you plan to sell a commodity item and the key to your success lies in, say, competitive pricing, you probably don't need to provide significant product detail. Or if you plan to sell a commodity readily available in a variety of outlets, the key to your business may not be the commodity itself but your ability to market in a more cost-effective way than your competition.

But if you're creating a new product (or service), make sure you thoroughly explain the nature of the product, its uses, and its value, etc.--otherwise your readers will not have enough information to evaluate your business.

Key questions to answer:

• Are products or services in development or existing (and on the market)?
• What is the timeline for bringing new products and services to market?
• What makes your products or services different? Are there competitive advantages compared with offerings from other competitors? Are there competitive disadvantages you will need to overcome? (And if so, how?)
• Is price an issue? Will your operating costs be low enough to allow a reasonable profit margin?
• How will you acquire your products? Are you the manufacturer? Do you assemble products using components provided by others? Do you purchase products from suppliers or wholesalers? If your business takes off, is a steady supply of products available?

In the cycling rental business example we've been using, products and services could be a relatively simple section to complete or it could be fairly involved. It depends on the nature of the products the company plans to rent to customers.

If Blue Mountain Cycling Rentals plans to market itself as a provider of high-end bikes, describing those bikes--and the sources for those bikes--is important, since "high-end cycling rentals" is intended to be a market differentiation. If the company plans to be the low-cost provider, then describing specific brands of equipment is probably not necessary.

Also, keep in mind that if a supplier runs out of capacity--or goes out of business altogether--you may not have a sufficient supply to meet your demand. Plan to set up multiple vendor or supplier relationships, and describe those relationships fully. 

Remember, the primary goal of your business plan is to convince  you  that the business is viable--and to create a road map for you to follow.

The Products and Services section for our cycling rental business could start something like this:

Product Description

Blue Mountain Cycle Rentals will provide a comprehensive line of bicycles and cycling equipment for all ages and levels of ability. Since the typical customer seeks medium-quality equipment and excellent services at competitive prices, we will focus on providing brands like Trek bikes, Shimano footwear, and Giro helmets. These manufacturers have a widespread reputation as mid- to high-level quality, unlike equipment typically found in the rental market.

The following is a breakdown of anticipated rental price points, per day and per week:

• Bicycle $30/$120
• Helmet $6/$30
• Customers can extend the rental term online without visiting the store.
• A grace period of two hours will be applied to all rentals; customers who return equipment within that two-hour period will not be charged an additional fee.

Competition

Blue Mountain Cycle Rentals will have clear advantages over its primary competitors, the bike shops located in Harrisonburg, VA:

• Newer equipment inventory with higher perceived quality
• Price points 15 percent below the competition
• Online renewals offering greater convenience
• A liberal return grace period that will reinforce our reputation as a customer-friendly rental experience

Future Products

Expansion will allow us to move product offerings into new equipment sales. We will also explore maintenance and fitting services, leveraging our existing maintenance staff to provide value-added services at a premium price.

When you draft your Products and Services section, think of your reader as a person who knows little to nothing about your business. Be clear and to the point.

Think of it this way: The Products and Services section answers the "what" question for your business. Make sure you fully understand the "what" factor; you may run the business, but your products and services are its lifeblood.

Market research is critical to business success. A good business plan analyzes and evaluates customer demographics, purchasing habits, buying cycles, and willingness to adopt new products and services.

The process starts with understanding your market and the opportunities inherent in that market. And that means you'll need to do a little research. Before you start a business you must be sure there is a viable market for what you plan to offer.

That process requires asking, and more importantly answering, a number of questions. The more thoroughly you answer the following questions, the better you will understand your market.

Start by evaluating the market at a relatively high level, answering some high-level questions about your market and your industry:

• What is the size of the market? Is it growing, stable, or in decline?
• Is the overall industry growing, stable, or in decline?
• What segment of the market do I plan to target? What demographics and behaviors make up the market I plan to target?
• Is demand for my specific products and services rising or falling?
• Can I differentiate myself from the competition in a way customers will find meaningful? If so, can I differentiate myself in a cost-effective manner?
• What do customers expect to pay for my products and services? Are they considered to be a commodity or to be custom and individualized?

Fortunately, you've already done some of the legwork. You've already defined and mapped out your products and services. The Market Opportunities section provides a sense-check of that analysis, which is particularly important since choosing the right products and services is such a critical factor in business success.

But your analysis should go further: Great products are great, but there still must be a market for those products. (Ferraris are awesome, but you're unlikely to sell many where I live.)

So let's dig deeper and quantify your market. Your goal is to thoroughly understand the characteristics and purchasing ability of potential customers in your market. A little Googling can yield a tremendous amount of data.

For the market you hope to serve, determine:

• Your potential customers. In general terms, potential customers are the people in the market segment you plan to target. Say you sell jet skis; anyone under the age of 16 and over the age of 60 or so is unlikely to be a customer. Plus, again in general terms, women make up a relatively small percentage of jet ski purchasers. Determining the total population for the market is not particularly helpful if your product or service does not serve a need for the entire population. Most products and services do not.
• Total households. In some cases determining the number of total households is important depending on your business. For example, if you sell heating and air conditioning systems, knowing the number of households is more important than simply knowing the total population in your area. While people purchase HVAC systems, "households" consume those systems.
• Median income. Spending ability is important. Does your market area have sufficient spending power to purchase enough of your products and services to enable you to make a profit? Some areas are more affluent than others. Don't assume every city or locality is the same in terms of spending power. A service that is viable in New York City may not be viable in your town.
• Income by demographics. You can also determine income levels by age group, by ethnic group, and by gender. (Again, potential spending power is an important number to quantify.) Senior citizens could very well have a lower income level than males or females age 45 to 55 in the prime of their careers. Or say you plan to sell services to local businesses; in that case, try to determine the amount they currently spend on similar services.

The key is to understand the market in general terms and then to dig deeper to understand whether there are specific segments within that market--the segments you plan to target--that can become customers and support the growth of your business.

Also keep in mind that if you plan to sell products online the global marketplace is incredibly crowded and competitive. Any business can sell a product online and ship that product around the world. Don't simply assume that just because "the bicycle industry is a $62 billion business" (a number I just made up) that you can capture a meaningful percentage of that market.

On the other hand, if you live in an area with 50,000 people and there's only one bicycle shop, you may be able to enter that market and attract a major portion of bicycle customers in your area.

Always remember it's much easier to serve a market you can define and quantify.

After you complete your research you may feel a little overwhelmed. While data is good, and more data is great, sifting through and making sense of too much data can be daunting.

For the purposes of your business plan, narrow your focus and focus on answering these main questions:

• What is your market? Include geographic descriptions, target demographics, and company profiles (if you're B2B). In short: Who are your customers?
• What segment of your market will you focus on? What niche will you attempt to carve out? What percentage of that market do you hope to penetrate and acquire?
• What is the size of your intended market? What is the population and spending habits and levels?
• Why do customers need and why will they be willing to purchase your products and services?
• How will you price your products and services? Will you be the low cost provider or provide value-added services at higher prices?
• Is your market likely to grow? How much? Why?
• How can you increase your market share over time?

The Market Opportunities section for our cycling rental business could start something like this:

Market Summary

Consumer spending on cycling equipment reached $9,250,000 in the states of VA, WV, MD, and NC last year. While we expect sales to rise, for the purposes of performing a conservative analysis we have projected a zero growth rate for the next three years.

In those states 2,500,000 people visited a national forest last year. Our target market includes customers visiting the Shenandoah National Forest; last year 120,000 people visited the area during spring, summer, and fall months.

Over time, however, we do expect equipment rentals and sales to increase as the popularity of cycling continues to rise. In particular we forecast a spike in demand in 2015 since the national road racing championships will be held in Richmond, VA.

Market Trends

Participation and population trends favor our venture:

• Recreational sports in general and both family-oriented and "extreme" sports continue to gain in exposure and popularity.
• Western VA and eastern WV have experienced population growth rates nearly double that of the country as a whole.
• Industry trends show cycling has risen at a more rapid rate than most other recreational activities.

Market Growth

According to the latest studies, recreation spending in our target market has grown by 14 percent per year for the past three years.

In addition, we anticipate greater than industry-norm growth rates for cycling in the area due to the increase in popularity of cycling events like the Alpine Loop Gran Fondo.

Market Needs

Out target market has one basic need: The availability to source bicycle rentals at a competitive price. Our only other competition are the bike shops in Harrisonburg, VA, and our location will give us a competitive advantage over those and other companies who try to serve our market.

You may want to add other categories to this section based on your particular industry.

For example, you might decide to provide information about Market Segments. In our case, the cycling rental business does not require much segmentation. Rentals are typically not broken down into segments like "inexpensive," "midrange," and "high-end." For the most part rental bikes are more of a commodity. (Although you'll notice in our Products and Services section, we decided to provide "high-end" rentals.)

But say you decide to open a clothing store. You could focus on high fashion, or children's clothes, or outdoor wear, or casual--you could segment the market in a number of ways. If that's the case, provide detail on segmentation that supports your plan.

The key is to define your market--and then show how you will serve your market.

Providing great products and services is wonderful, but customers must actually know those products and services exist. That's why marketing plans and strategies are critical to business success. (Duh, right?)

But keep in mind marketing is not just advertising. Marketing--whether advertising, public relations, promotional literature, etc.--is an investment in the growth of your business.

Like any other investment you would make, money spent on marketing must generate a return. (Otherwise why make the investment?) While that return could simply be greater cash flow, good marketing plans result in higher sales and profits.

So don't simply plan to spend money on a variety of advertising efforts. Do your homework and create a smart marketing program .

Here are some of the basic steps involved in creating your marketing plan:

• Focus on your target market. Who are your customers? Who will you target? Who makes the decisions? Determine how you can best reach potential customers.
• Evaluate your competition. Your marketing plan must set you apart from your competition, and you can't stand out unless you  know  your competition. (It's hard to stand out from a crowd if you don't know where the crowd stands.) Know your competitors by gathering information about their products, service, quality, pricing, and advertising campaigns. In marketing terms, what does your competition do that works well? What are their weaknesses? How can you create a marketing plan that highlights the advantages you offer to customers?
• Consider your brand. How customers perceive your business makes a dramatic impact on sales. Your marketing program should consistently reinforce and extend your brand. Before you start to market your business, think about how you want your marketing to reflect on your business and your products and services. Marketing is the face of your to potential customers--make sure you put your best face forward.
• Focus on benefits. What problems do you solve? What benefits do you deliver? Customers don't think in terms of products--they think in terms of benefits and solutions. Your marketing plan should clearly identify benefits customers will receive. Focus on what customers  get  instead of on what you provide. (Take Dominos; theoretically they're in the pizza business, but really they're a delivery business.)
• Focus on differentiation. Your products and services have to stand out from the competition in some way. How will you compete in terms of price, product, or service?

Then focus on providing detail and backup for your marketing plan.

• What is your budget for sales and marketing efforts? 
• How will you determine if your initial marketing efforts are successful? In what ways will you adapt if your initial efforts do not succeed?
• Will you need sales representatives (inside or external) to promote your products?
• Can you set up public relations activities to help market your business?

The Sales and Marketing section for our cycling rental business could start something like this:

Target Market

The target market for Blue Mountain Cycling Rentals is western VA, eastern WV, southwestern MD, and northern NC. While customers in the counties surrounding the George Washington National Forest make up 35 percent of our potential customer base, much of our market travels from outside that geographic area.

Marketing Strategy

Our marketing strategy will focus on three basic initiatives:

• Road signage. Access to the forest is restricted to a few primary entrances, and visitors reach those entrances after traveling on one of several main roadways. Since customers currently rent bicycles in the local town of Harrisonburg, road signage will communicate our value proposition to all potential customers.
• Web initiatives. Our website will attract potential visitors to the resort. We will partner with local businesses that serve our target market to provide discounts and incentives.
• Promotional events. We will hold regular events with professional cyclists, like demonstrations and autograph signings, to bring more customers to the store as well as to extend the athletes' "brand" to our brand.

Pricing Strategy

We will not be the low-cost provider for our target market. Our goal is to provide mid- to high-end equipment. However, we will create web-based loyalty programs to incent customers to set up online profiles and reserve and renew equipment rentals online, and provide discounts for those who do. Over time we will be able to market specifically to those customers.

Just as in the Market Opportunity section, you may want to include a few more categories. For example, if your business involves a commission-compensated sales force, describe your Sales Programs and incentives. If you distribute products to other companies or suppliers and those distribution efforts will impact your overall marketing plans, lay out your Distribution Strategy.

The key is to show you understand your market and you understand how you will reach your market. Marketing and promotions must result in customers--your goal is to thoroughly describe how you will acquire and keep your customers.

Also keep in mind you may want to include examples of marketing materials you have already prepared, like website descriptions, print ads, web-based advertising programs, etc. While you don't need to include samples, taking the time to create actual marketing materials might help you better understand and communicate your marketing plans and objectives.

Make sure your Sales and Marketing section answers the "How will I reach my customers?" question.

Competitive Advantage

The Competitive Analysis section of your business plan is devoted to analyzing your competition--both your current competition and potential competitors who might enter your market.

Every business has competition. Understanding the strengths and weaknesses of your competition--or potential competition--is critical to making sure your business survives and grows. While you don't need to hire a private detective, you do need to thoroughly assess your competition on a regular basis even if you plan to run only a small business.

In fact, small businesses can be especially vulnerable to competition, especially when new companies enter a marketplace.

Competitive analysis can be incredibly complicated and time-consuming, but it doesn't have to be. Here is a simple process you can follow to identify, analyze, and determine the strengths and weaknesses of your competition.

Profile  Current  Competitors

First, develop a basic profile of each of your current competition. For example, if you plan to open an office supply store, you may have three competing stores in your market.

Online retailers will also provide competition, but thoroughly analyzing those companies will be less valuable unless you also decide you want to sell office supplies online. (Although it's also possible that they--or, say, Amazon--are your  real  competition. Only you can determine that.)

To make the process easier, stick to analyzing companies you will directly compete with. If you plan to set up an accounting firm, you will compete with other accounting firms in your area. If you plan to open a clothing store, you will compete with other clothing retailers in your area.

Again, if you run a clothing store, you also compete with online retailers, but there is relatively little you can do about that type of competition other than to work hard to distinguish yourself in other ways: great service, friendly salespeople, convenient hours, truly understanding your customers, etc.

Once you identify your main competitors, answer these questions about each one. And be objective. It's easy to identify weaknesses in your competition, but less easy (and a lot less fun) to recognize how they may be able to outperform you:

• What are their strengths? Price, service, convenience, and extensive inventory are all areas where you may be vulnerable.
• What are their weaknesses? Weaknesses are opportunities you should plan to take advantage of.
• What are their basic objectives? Do they seek to gain market share? Do they attempt to capture premium clients? See your industry through their eyes. What are they trying to achieve?
• What marketing strategies do they use? Look at their advertising, public relations, etc.
• How can you take market share away from their business?
• How will they respond when you enter the market?

While these questions may seem like a lot of work to answer, in reality the process should be fairly easy. You should already have a feel for the competition's strengths and weaknesses--if you know your market and your industry.

To gather information, you can also:

• Check out their websites and marketing materials. Most of the information you need about products, services, prices, and company objectives should be readily available. If that information is not available, you may have identified a weakness.
• Visit their locations. Take a look around. Check out sales materials and promotional literature. Have friends stop in or call to ask for information.
• Evaluate their marketing and advertising campaigns. How a company advertises creates a great opportunity to uncover the objectives and strategies of that business. Advertising should help you quickly determine how a company positions itself, who it markets to, and what strategies it employs to reach potential customers.
• Browse. Search the Internet for news, public relations, and other mentions of your competition. Search blogs and Twitter feeds as well as review and recommendation sites. While most of the information you find will be anecdotal and based on the opinion of just a few people, you may at least get a sense of how some consumers perceive your competition. Plus you may also get advance warning about expansion plans, new markets they intend to enter, or changes in management.

Keep in mind competitive analysis does more than help you understand your competition. Competitive analysis can also help you identify changes you should make to  your  business strategies. Learn from competitor strengths, take advantage of competitor's weaknesses, and apply the same analysis to your own business plan.

You might be surprised by what you can learn about your business by evaluating other businesses.

Identify  Potential  Competitors

It can be tough to predict when and where new competitors may pop up. For starters, regularly search for news on your industry, your products, your services, and your target market.

But there are other ways to predict when competition may follow you into a market. Other people may see the same opportunity you see. Think about your business and your industry, and if the following conditions exist, you may face competition does the road:

• The industry enjoys relatively high profit margins
• Entering the market is relatively easy and inexpensive
• The market is growing--the more rapidly it is growing the greater the risk of competition
• Supply and demand is off--supply is low and demand is high
• Very little competition exists, so there is plenty of "room" for others to enter the market

In general terms, if serving your market seems easy you can safely assume competitors will enter your market. A good business plan anticipates and accounts for new competitors.

Now distill what you've learned by answering these questions in your business plan:

• Who are my current competitors? What is their market share? How successful are they?
• What market do current competitors target? Do they focus on a specific customer type, on serving the mass market, or on a particular niche?
• Are competing businesses growing or scaling back their operations? Why? What does that mean for your business?
• How will your company be different from the competition? What competitor weaknesses can you exploit? What competitor strengths will you need to overcome to be successful?
• What will you do if competitors drop out of the marketplace? What will you do to take advantage of the opportunity?
• What will you do if new competitors enter the marketplace? How will you react to and overcome new challenges?

The Competitive Analysis section for our cycling rental business could start something like this:

Primary Competitors

Our nearest and only competition is the bike shops in Harrisonburg, VA. Our next closest competitor is located over 100 miles away.

The in-town bike shops will be strong competitors. They are established businesses with excellent reputations. On the other hand, they offer inferior-quality equipment and their location is significantly less convenient.

Secondary Competitors

We do not plan to sell bicycles for at least the first two years of operation. However, sellers of new equipment do indirectly compete with our business since a customer who buys equipment no longer needs to rent equipment.

Later, when we add new equipment sales to our operation, we will face competition from online retailers. We will compete with new equipment retailers through personalized service and targeted marketing to our existing customer base, especially through online initiatives.

Opportunities

• By offering mid- to high-end quality equipment, we provide customers the opportunity to "try out" bikes they may wish to purchase at a later date, providing additional incentive (besides cost savings) to use our service.
• Offering drive-up, express rental return services will be seen as a much more attractive option compared with the hassle of renting bikes in Harrisonburg and transporting them to intended take-off points for rides.
• Online initiatives like online renewals and online reservations enhances customer convenience and positions us as a cutting-edge supplier in a market largely populated, especially in the cycling segment, by customers who tend to be early technology adapters.
• Renting bikes and cycling equipment may be perceived by some of our target market as a commodity transaction. If we do not differentiate ourselves in terms of quality, convenience, and service, we could face additional competition from other entrants to the market.
• One of the bike shops in Harrisonburg is a subsidiary of a larger corporation with significant financial assets. If we, as hoped, carve out a significant market share, the corporation may use those assets to increase service, improve equipment quality, or cut prices.

While your business plan is primarily intended to convince  you  that your business makes sense, keep in mind most investors look closely at your competitive analysis. A common mistake made by entrepreneurs is assuming they will simply "do it better" than any competition.

Experienced businesspeople know you will face stiff competition: showing you understand your competition, understand your strengths and weaknesses relative to that competition, and that you understand you will have to adapt and change based on that competition is critical.

And, even if you do not ever plan to seek financing or bring in investors, you absolutely must know your competition.

The Competitive Analysis section helps you answer the "Against whom?" question.

The next step in creating your business plan is to develop an Operations Plan that will serve your customers, keep your operating costs in line, and ensure profitability . Your ops plan should detail strategies for managing, staffing, manufacturing, fulfillment, inventory--all the stuff involved in operating your business on a day-to-day basis.

Fortunately, most entrepreneurs have a better handle on their operations plan than on any other aspect of their business. After all, while it may not seem natural to analyze your market or your competition, most budding entrepreneurs tend to spend a lot of time thinking about how they will  run  their businesses.

Your goal is to answer the following key questions:

• What facilities, equipment, and supplies do you need?
• What is your organizational structure? Who is responsible for which aspects of the business?
• Is research and development required, either during start up or as an ongoing operation? If so, how will you accomplish this task?
• What are your initial staffing needs? When and how will you add staff?
• How will you establish business relationships with vendors and suppliers? How will those relationships impact your day-to-day operations?
• How will your operations change as the company grows? What steps will you take to cut costs if the company initially does not perform up to expectations?

Operations plans should be highly specific to your industry, your market sector, and your customers. Instead of providing an example like I've done with other sections, use the following to determine the key areas your plan should address:

Location and Facility Management

In terms of location, describe:

• Zoning requirements
• The type of building you need
• The space you need
• Power and utility requirements
• Access: Customers, suppliers, shipping, etc.
• Specialized construction or renovations
• Interior and exterior remodeling and preparation

Daily Operations

• Production methods
• Service methods
• Inventory control
• Sales and customer service
• Receiving and Delivery
• Maintenance, cleaning, and re-stocking
• Licenses and permits
• Environmental or health regulations
• Patents, trademarks, and copyrights

Personnel Requirements

• Typical staffing
• Breakdown of skills required
• Recruiting and retention
• Policies and procedures
• Pay structures
• Anticipated inventory levels
• Turnover rate
• Seasonal fluctuations in demand
• Major suppliers
• Back-up suppliers and contingency plans
• Credit and payment policies

Sound like a lot? It can be, but not all of the above needs to be in your business plan.

You should think through and create a detailed plan for each category, but you won't need to share the results with the people who read your business plan

Working through each issue and developing concrete operations plans helps you in two major ways:

• If you don't plan to seek financing or outside capital, you can still take advantage of creating a comprehensive plan that addresses all of your operational needs.
• If you do seek financing or outside capital, you may not include all the detail in your business plan--but you will have answers to any operations questions at your fingertips.

Think of Operations as the "implementation" section of your business plan. What do you need to do? How will you get it done? Then create an overview of that plan to make sure your milestones and timeline make sense.

That way the operations section answers the "How?" question.

Many investors and lenders feel the quality and experience of the management team is one of the most important factors used to evaluate the potential of a new business.

But putting work into the Management Team section will not only benefit people who may read your plan. It will also help  you  evaluate the skills, experiences, and resources your management team will need . Addressing your company's needs during implementation will make a major impact on your chances for success.

• Who are the key leaders? (If actual people have not been identified, describe the type of people needed.) What are their experiences, educational backgrounds, and skills?
• Do your key leaders have industry experience? If not, what experience do they bring to the business that is applicable?
• What duties will each position perform? (Creating an organization chart might be helpful.) What authority is granted to and what responsibilities are expected in each position?
• What salary levels will be required to attract qualified candidates for each position? What is the salary structure for the company, by position?

The Management Team section for our cycling rental business could start something like this:

Jim Rouleur, Owner and Manager

Joe has over 20 years experience in the cycling business. He served for 10 years as a product manager for Acme Bikes. After that he was the operations manager of Single Track Cycles, a full-service bike shop located in Bend, Oregon. He has an undergraduate degree in marketing from Duke University and an MBA from Virginia Commonwealth University. (A complete resume for Mr. Rouleur can be found in the Appendix.)

Mary Gearset, Assistant Manager

Mary was the 2009 U.S. Mountain Biking National Champion. She worked in product development for High Tec frames, creating custom frames and frame modifications for professional cyclists. She also has extensive customer service and sales experience, having worked for four years as the online manager of Pro Parts Unlimited, an online retailer of high-end cycling equipment and accessories.

In some instances you may also wish to describe your staffing plans.

For example, if you manufacture a product or provide a service and will hire a key skilled employee, describe that employee's credentials. Otherwise, include staffing plans in the Operations section.

One key note: Don't be tempted to add a "name" to your management team in hopes of attracting investors. Celebrity management team members may attract the attention of your readers, but experienced lenders and investors will immediately ask what role that person will actually play in the running of the business--and in most cases those individuals won't play any meaningful role.

If you don't have a lot of experience--but are willing to work hard to overcome that lack of experience--don't be tempted to include people in your plan who will not actually work in the business.

If you can't survive without help, that's okay. In fact, that's expected; no one does anything worthwhile on their own. Just make plans to get help from the  right  people.

Finally, when you create your Management section, focus on credentials but pay extra attention to what each person actually will  do . Experience and reputation are great, but action is everything.

That way your Management section will answer the "Who is in charge?" question.

Numbers tell the story. Bottom line results indicate the success or failure of any business.

Financial projections and estimates help entrepreneurs, lenders, and investors or lenders objectively evaluate a company's potential for success. If a business seeks outside funding, providing comprehensive financial reports and analysis is critical.

But most important, financial projections tell you whether your business has a chance of being viable--and if not let you know you have more work to do.

Most business plans include at least five basic reports or projections:

• Balance Sheet: Describes the company cash position including assets, liabilities, shareholders, and earnings retained to fund future operations or to serve as funding for expansion and growth. It indicates the financial health of a business.
• Income Statement: Also called a Profit and Loss statement, this report lists projected revenue and expenses. It shows whether a company will be profitable during a given time period.
• Cash Flow Statement: A projection of cash receipts and expense payments. It shows how and when cash will flow through the business; without cash, payments (including salaries) cannot be made.
• Operating Budget: A detailed breakdown of income and expenses; provides a guide for how the company will operate from a "dollars" point of view.
• Break-Even Analysis: A projection of the revenue required to cover all fixed and variable expenses. Shows when, under specific conditions, a business can expect to become profitable.

It's easy to find examples of all of the above. Even the most basic accounting software packages include templates and samples. You can also find templates in Excel and Google Docs. (A quick search like "google docs profit and loss statement" yields plenty of examples.)

Or you can work with an accountant to create the necessary financial projections and documents. Certainly feel free to do so, but first play around with the reports yourself. While you don't need to be an accountant to run a business, you do need to understand your numbers, and the best way to understand your numbers is usually to actually work with your numbers.

But ultimately the tools you use to develop your numbers are not as important as whether those numbers are as accurate as possible--and whether those numbers help you decide whether to take the next step and put your business plan into action.

Then Financial Analysis can help you answer the most important business question: "Can we make a profit?"

Some business plans include less essential but potentially important information in an Appendix section. You may decide to include, as backup or additional information:

• Resumes of key leaders
• Additional descriptions of products and services
• Legal agreements
• Organizational charts
• Examples of marketing and advertising collateral
• Photographs of potential facilities, products, etc.
• Backup for market research or competitive analysis
• Additional financial documents or projections

Keep in mind creating an Appendix is usually only necessary if you're seeking financing or hoping to bring in partners or investors. Initially the people reading your business plan don't wish to plow through reams and reams of charts, numbers, and backup information. If one does want to dig deeper, fine--he or she can check out the documents in the Appendix.

That way your business plan can share your story clearly and concisely.

Otherwise, since you created your business plan, you should already have the backup.

Tying It All Together

While you may use your business plan to attract investors, partners, suppliers, etc., never forget that the goal of your business plan is to convince  you  that your idea makes sense. 

Because ultimately it's your time, your money, and your effort on the line.

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How to Make Your Business Stand Out These tips should help you to define exactly what your business offers, how that can serve the needs of your target market and how to build a niche for yourself.

Feb 13, 2015

This story originally appeared on Sageworks

Most businesses face steep competition; According to the US Small Business Administration, to be successful and break away from the pack, one of the first steps in your business development plan should be to determine your market and identify why they should give their business to you. Make sure that the market you are targeting is the best market for your product or service. To do this, you must identify the benefits that your business offers, and how your target market's needs are aligned with those benefits.

These tips should help you to define exactly what your business offers, how that can serve the needs of your target market and how to build a niche for yourself.

Make sure you know precisely what you have to offer

Beyond your actual product or service, what are you really selling ? For example, your city probably has a wide variety of restaurants and diners. They all sell food, but they do not all cater to the same people. Each is filling a slightly different need, and catering to a slightly different market.

Your local diner probably caters to people who want affordable, home-style meals, while the drive-through serves those on the go and the sit-down restaurant with tablecloths and candlesticks serves those looking for a more upscale dining experience. All three businesses serve hot meals, but the experience they offer varies greatly.

Make sure you understand not only your product or service, but how it fits the exact need your customers are looking for and how it compares with similar competition offering perhaps the same product or service with a different experience. What exactly separates you from the rest?

Don't be a jack of all trades

It is far better to do one thing with excellence than to do several things second-rate. To succeed in your market you must know precisely what you are offering and what makes you excellent. Divide your products or services into a few, manageable market niches . You can then offer specialized goods and services with expert knowledge delivery to your target market.

Identify your niche

It is important not only to understand what you are selling, but who you are selling to. To that end, creating and serving a niche market can be critical to your success as a small business. New business owners often tend to try to identify their niche markets through personal knowledge. But it can be incredibly worthwhile to conduct market research, and survey existing and potential customers to expose new and undiscovered customer needs. In the course of this research, be sure to identify:

• What markets are already saturated with competitors
• What markets do not receive attention from competitors
• What markets generate the most potential for your business

For CFO's looking to help objectify this process, Sageworks' financial analysis suite takes financial data and quickly converts it into plain-language reports with industry comparisons, ratio analysis and trend analysis along with recommendations for improvement. The analytical solutions are designed to be intuitive and to make financial reports more accessible to non-financial colleagues.

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• Jun 17, 2019

How to Make Your Business Stand out From the Crowd by Leveraging Your Point of Difference

Updated: Jan 27, 2023

One of the most critical things you need to think about as you grow your startup is how to make your business stand out from the crowd. In a marketplace where being different means a better chance of surviving and getting funding, having a unique point of difference is one of the most important things you can do for your business.

The latest Gartner forecast predicts that cloud service providers will increase substantially over the next three years. In the last year, there have been 224,516 startups launched in the UK alone.

With more and more businesses leaving traditional software behind in favor of agile cloud products, the opportunity for SaaS startups to step in and offer solutions is enormous. But there’s a downside.

In a $214 billion global industry the opportunities may be plentiful, but for new businesses trying to be seen and heard among the noise – the struggle is real. It’s going to be more and more important to stand out as a company, and get creative with your thinking and marketing.

Find your business’s unique point of difference

Finding your unique point of difference will help you equip your startup with a strong value proposition that instantly sets you apart from competitors that aren’t quite so clued up with their marketing.

What is a value proposition?

Your value proposition tells customers at a glance what you do, and how you’re different (and better) than similar companies in your space. It might not be the actual features of your product that set you apart, but the way you deliver your service or disrupt a traditional method (think Uber, for example).

Examples of strong value propositions include:

Stripe – “The new standard in online payments”

Target – “Expect more. Pay less”

HubSpot – “There’s a better way to grow”

Zapier – “Connect your apps and automate workflows”

These are all recognizable statements from companies that stand out in their respective markets for their branding and positioning. Getting clear on exactly what makes your business unique through your point of difference will help your customers understand what’s unique about you too.

Leverage your team to make your business stand out from the crowd

Hiring a great team is important on many levels. Obviously they’re there to help your business grow, but a team that’s proud to work for your company and proactively spreads positive things about your business via their online channels is a huge bonus.

Leveraging the networks of your team can help make your business stand out from the crowd, as they can help spread the word about your product and solutions to a wider variety of people. Dedicated team members are natural evangelists for your company and can also provide support in terms of keeping an eye out for positive and negative feedback online while responding quickly and appropriately.

Sales, customer support, and service

Teams that go above and beyond in their quest for customer satisfaction and happiness can help make a business stand out from the crowd as well. A company with a likable approach and friendly team has an immediate advantage.

Customers want to feel heard and understood by the companies they support, and they might have taken a big gamble doing business with your startup.

Find ways to make people successful using your product and ways to support them so their experience with you is as smooth and memorable as possible. This could be as simple as checking in with a personal phone call or email to make sure customers are happy with their plan and service. It’s also a smart tactic to increase your customer retention rate and encourage referrals from your subscribers.

The element of human connection is at the heart of your business growth; it’s what makes your business unique. If you have terrible customer service and people walk away from you with a bad experience, you’ll also stand out eventually – but for all the wrong reasons.

Know your competition’s point of difference

While you shouldn’t obsess about your competitors, it’s always good to check in on your competitors every now and then. Knowing your competition’s points of difference can be particularly useful in determining your competitive differentiation.

Startup businesses can get caught up in the excitement and pressure of their new venture and forget that they have competition. Realistically – a lot of competition. This could be from other entrepreneurs building similar solutions, or from well-established companies that have a head start.

Looking at what your competitors are doing well (and what they’re doing badly) can help you figure out new ideas for your own company and competitive differentiation.

Checking out review sites and forums can dig up insights on the weakest points of your competitors’ products and services, giving you a competitive advantage in your market if you can avoid (or improve upon) their shortcomings.

Branding is an important part of your point of difference

Invest some time and money into creating a brand strategy and voice guide. Companies with consistent imagery, tone, and messaging across all of their marketing channels have a better chance of standing out and resonating with their target customers.

Not only that, but investing in a brand style guide early on will actually save you time and money further down the road when it comes to training new hires and creating content.

We can all see the websites and logos in our minds when somebody says “Slack. Mailchimp . Basecamp.” Not only that, but we can hear their distinct tones of voice in their content, copy, and advertisements. Purposeful, playful, and helpful.

These companies haven’t made products that are mind-meltingly different from any of the other products out there in their space. It’s the way they “speak” to their subscribers and leverage their point of difference that makes these businesses stand out from the crowd. They’ve created likable brands that people want to do business with.

Note: If you can’t figure out exactly how to be likable right now, at the very least make sure you’re not unlikable!

Creating a standalone document that unifies your company’s language, mission, value proposition, and editorial voice allows you make sure all your team members and contractors are on the same page when they’re designing, developing, and writing. No matter how many people come and go in your company, your guide will be there to help them stay aligned with your point of difference.

Creativity sets your business apart from your competition

The online world is awash with tired ideas to help your company stand out. For every so-called thought leadership article written, you can bet there are thousands of startups reading them and wringing all they can out of the exact same “best practices.”

Standing out from the crowd doesn’t mean following the herd; instead, create a defined point of difference by letting your own creativity loose on your brand. This is what sets you apart from your competition.

Find ways to work with relevant influencers and websites to leverage their audience.  They can help spread the word to relevant audiences that you may not otherwise easily reach.

Get creative on social media. Interesting promotions, videos, and partnerships can all be great points of difference to your startup. It doesn’t have to be all about advertising.

Make sure your website is sharp and on-brand at all stages of your growth. Bad design and copywriting should be avoided at all costs, so it’s worth putting some effort into creating a streamlined user experience as early as possible.

Look for ideas offline! Great ideas can’t always be Googled. Everywhere you go there’s marketing that could translate into fresh ideas to help your company stand out. Television ads, retail store promotions, networking events, and trade shows can all help give you perspective on different ways to promote and market your startup.

Bottom line

Making your business stand out from the crowd is getting more challenging. It’s also becoming a necessity. There’s a low entry level to the startup world, and every entrepreneur wants a piece of this lucrative and delicious pie.

As the marketplace gets crowded, founders and marketers need to leverage all the moving parts of their business in order to survive. Creating a strong, memorable brand and being a likable company that customers want to do business with will help you create your point of difference and stand out among an increasing sea of sameness.

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How can you make your business plan stand out

1. how to make your business plan stand out from the rest, 2. the importance of a strong business plan, 3. what makes a successful business plan, 4. how to make your business plan unique, 5. why you need a business plan, 6. the benefits of having a well crafted business plan, 7. how to create a winning business plan, 8. tips for making your business plan stand out, 9. how can you make your business plan shine.

If you're like most entrepreneurs, you've probably spent a lot of time thinking about your business plan. You've probably also spent a lot of time wondering how to make your business plan stand out from the rest .

After all, there's a lot of competition out there. And, if you're not careful, your business plan could end up looking just like everybody else's.

So, how can you make sure that your business plan stands out from the crowd? Here are five tips:

1. Keep it short and sweet.

One of the best ways to make your business plan stand out is to keep it short and sweet. No one wants to read a 100-page business plan. In fact, most people won't even read a 20-page business plan.

Instead, focus on creating a lean and mean business plan that gets straight to the point. You can always include additional information in appendices or supplementary materials.

2. Use visuals.

People are visual creatures. We're much more likely to remember something if we see it, rather than just read about it. So, why not use visuals in your business plan ?

Include charts, graphs, and infographics to break up the text and make your points more memorable. Just be sure to use visuals that are high-quality and professionally-designed.

3. Tell a story.

Another great way to make your business plan stand out is to tell a story. Don't just regurgitate facts and figures. Instead, weave a compelling tale that will engage your reader and make them want to find out more about your business.

4. Be different.

If you want your business plan to stand out, you need to be different. Don't try to copy what everyone else is doing. Instead, focus on what makes you unique.

What makes your business different? What makes your product or service better than the competition ? Why should someone invest in your company? These are the types of questions you need to answer in your business plan.

5. Get help from a professional.

Finally, if you really want your business plan to stand out, you may want to get help from a professional. There's no shame in admitting that you need some help. In fact, most successful entrepreneurs have used professional help at some point in their careers.

A professional can help you fine-tune your business plan and make sure that it's as strong as it can be. They can also help you with the design and layout of your business plan, which can make a big difference in how impressive it looks.

How to make your business plan stand out from the rest - How can you make your business plan stand out

Your business plan is one of the most important documents you will create when starting a business. It is a roadmap that will help you to achieve your business goals and objectives .

creating a strong business plan is essential for any business, but it can be especially important for small businesses . This is because a well-crafted business plan can help you to secure funding from investors, lenders, or other sources of capital. Additionally, a strong business plan can help you to attract talented employees and partners, and to gain the trust of customers and clients.

There are a few key things that you should keep in mind when creating your business plan. First, make sure that your plan is clear and concise . You should avoid using jargon or overly technical language. Second, your business plan should be realistic. It should be based on market research and feasibility studies . Finally, your business plan should be flexible . You should be prepared to revise your plan as your business grows and changes.

If you take the time to create a strong business plan , you will be putting your business on the path to success .

In order to make your business plan stand out, there are a few key elements that you should focus on. First and foremost, your business plan should be clear and concise . It should be easy for the reader to understand what your business does, how it makes money, and what your goals are.

Another important aspect of a successful business plan is that it should be realistic. Your financial projections should be achievable, and your marketing strategy should be based on solid market research. You should also have a clear understanding of your competition and what you need to do to stand out from the crowd .

Finally, your business plan should be convincing . This means that it should be well-written and persuasive. You need to make a case for why your business will be successful, and you should back up your claims with data and research. If you can do all of these things, then you will have a much better chance of impressing potential investors and partners and getting the funding you need to start your business .

When you're putting together a business plan , you want to make sure that it's going to stand out from the rest. After all, if your business plan is just like everyone else's, then it's not going to be very effective. So, how can you make your business plan stand out?

One way to make your business plan stand out is to focus on what makes your business unique. What are the unique selling points of your business ? What can you offer that no one else can? When you focus on what makes your business unique , you'll be able to create a business plan that is truly unique and will be more likely to get attention.

Another way to make your business plan stand out is to focus on the benefits that your business can provide. Instead of just listing the features of your business, focus on how those features can benefit your customers or clients. When you can show potential customers or clients how your business can help them, they'll be more likely to take notice.

Finally, don't forget to proofread your business plan before you submit it. Even the best business plans can be overlooked if they're full of typos and grammatical errors. Take the time to proofread your plan so that it's error-free and ready to make a great impression.

By following these tips, you can create a business plan that will stand out from the rest and help you get the attention you need.

Your marketing strategy should get you customers!

FasterCapital helps you improve your marketing performance through identifying your customers' needs and developing an effective marketing strategy

In today's business world, a well-written and thought-out business plan is essential for any company, whether startup or established. There are many reasons why your business needs a business plan .

A business plan is a road map for your business. It helps you map out your business goals and how you plan on achieving them. This document is also a valuable tool for communicating your business plans to potential investors, partners, and employees.

A business plan forces you to think through every aspect of your business, from your product or service to your marketing and sales strategy, to your financials. This process can help you identify potential problems and find solutions before they become too big to handle.

A business plan also provides a baseline against which you can measure your progress. As your business grows and changes, you can revisit your business plan and make necessary adjustments. This document can also help keep you accountable to yourself and to your partners or investors.

A well-crafted business plan can also help you secure funding from banks or investors. This is because lenders and investors want to see that you have a solid plan in place for how you will use their money to grow your business .

So, if you're still on the fence about whether or not your business needs a business plan, we hope this article has helped convince you. A business plan is an essential tool for any business , large or small.

As the old saying goes, "fail to plan and you plan to fail." Having a well-crafted business plan is essential to the success of any business, small or large. Why? Because a business plan forces you to think through all aspects of your business, from start to finish. It's a road map that will help you navigate the bumps and detours that are inevitable in any business venture.

Think of your business plan as your company's foundation . It will provide the structure and support that you need to build a successful business . Without a solid foundation, your business will be vulnerable to the many challenges that businesses face every day.

A well-crafted business plan will also give you a much better chance of securing financing from investors or lenders. They will want to see that you have a clear understanding of your business and its potential before they will invest their money in it.

But perhaps the most important reason to have a business plan is that it will force you to think through all aspects of your business, from start to finish. It's very easy to get caught up in the day-to-day operations of your business and lose sight of the bigger picture. A business plan will help you stay focused on your long-term goals and keep you from making costly mistakes .

If you're not sure where to start, there are plenty of resources available to help you write a business plan . You can find templates and software online, or you can hire a professional consultant to help you through the process. Whichever route you choose, make sure that your business plan is comprehensive and realistic. It should be something that you refer to often and revise as your business grows and changes.

Don't let the process of writing a business plan intimidate you. Just remember that it's an important tool that will help you build a successful business.

If you're like most entrepreneurs, you've probably spent a lot of time thinking about your business plan. But what makes a winning business plan ? How can you make yours stand out from the rest?

1. Keep it simple

The best business plans are clear, concise and easy to understand. They're not overly long or filled with technical jargon. So, make sure your plan is well-written and easy to follow.

2. Focus on the future

Your business plan should be focused on the future, not the past. It should describe your vision for the company and where you see it going. Investors want to see that you have a clear roadmap for growth.

3. Know your audience

Before you start writing your business plan, you need to know who you're writing it for. Are you trying to raise money from investors ? If so, you'll need to focus on financials and include a lot of detail. Are you just trying to get your ideas down on paper? If so, you can be more creative and focus less on numbers.

4. Make it visually appealing

No one wants to read a boring, text-heavy business plan. So, make sure yours is visually appealing. Use charts, graphs and other visuals to break up the text and make it more interesting to read.

5. Be realistic

Investors want to see that you have a realistic view of your business. They're not interested in pie-in-the-sky projections or overly optimistic forecasts. So, make sure your financial projections are realistic and achievable.

6. Have a clear strategy

Your business plan should include a clear strategy for how you're going to achieve your goals . What are your marketing plans? How will you reach your target market ? What are your competitive advantages? Make sure you have answers to these questions before you start writing your business plan.

7. Back it up with data

Investors want to see that you've done your homework. They want to see that your ideas are based on solid market research and data. So, make sure you include data and market analysis in your business plan .

8. Get feedback

Before you finalize your business plan, get feedback from friends, family, mentors and other entrepreneurs. They may have valuable insights that can help you improve your plan.

9. Be prepared to revise

Your business plan is not set in stone. As your business grows and changes, your plan should evolve as well. Be prepared to revise and update your plan as needed.

10. Have fun

Writing a business plan can be a daunting task, but it doesn't have to be all work and no play. So, have fun with it! Let your creativity shine through and enjoy the process.

How to create a winning business plan - How can you make your business plan stand out

1. Keep it concise.

Your business plan doesn't need to be a novel. In fact, most investors prefer a shorter, more to-the-point plan. So focus on the essentials and cut out any fluff.

2. Start with a strong executive summary.

This is essentially your elevator pitch, so make sure its clear, concise, and engaging. Hook your reader from the start and give them a taste of what's to come.

3. Make sure your numbers add up.

Investors will be closely scrutinizing your financial projections, so make surethey are realistic and based on solid data . Nothing will sink your business plan faster than unrealistic numbers.

4. Be clear about your target market .

Investors want to know who your target market is and how you plan on reaching them. So do your research and be specific about who your ideal customer is.

5. Focus on the future.

Your business plan should be forward-thinking, outlining your plans for growth and expansion. Investors want to see that you have a clear vision for the future of your company .

6. Be prepared to answer tough questions .

Investors will likely have some tough questions for you, so its important to be prepared. Anticipate their concerns and have thoughtful answers ready.

7. Have a professional-looking plan.

Investors will judge your business plan not only on its content but also on its presentation. So take the time to make it look professional and polished.

8. Get feedback from others.

Before you finalize your business plan, get feedback from trusted advisors, mentors, and others in your network. They may catch errors or have helpful suggestions.

9. Know your stuff.

Be prepared to answer any questions about your business planand about your business in general. Investors will want to know that you're an expert in your field.

10. Keep it updated.

Your business planshouldn't be a static document; it should be dynamic and ever-evolving as your business grows and changes. So make sure to keep it updated on a regular basis.

Tips for making your business plan stand out - How can you make your business plan stand out

In order to make your business plan stand out amongst the rest, you'll need to focus on what makes your company unique and how you plan to capitalize on that. Here are a few tips:

1. Do your research

Before you even start writing your business plan, it's important to do your research and understand the industry you're entering, your target market, and your competition. This will not only help you create a more informed and targeted business plan, but it will also give you a leg up when it comes time to pitch your company to investors.

2. Keep it simple

When it comes to your business plan, less is more. No one wants to read a 100-page document, so focus on the most important aspects of your business and make sure your writing is clear and concise.

3. Highlight what makes you different

As mentioned above, it's important to focus on what makes your company unique. Whether it's a new product or service, a innovative business model , or a different approach to marketing, make sure to highlight what sets you apart from the competition.

4. Have a solid financial plan

One of the most important aspects of any business plan is the financials. Investors will want to see that you have a clear understanding of your expenses and revenue streams, as well as a realistic forecast for the future. Be sure to consult with an accountant or financial advisor to ensure your numbers are sound.

5. Get feedback

Once you've put together a draft of your business plan, it's important to get feedback from people you trust. Ask them for their honest opinion on what works and what doesn't, and be open to making revisions based on their input.

By following these tips, you can create a business plan that will stand out from the rest and give you a better chance of attracting investors and achieving success.

How can you make your business plan shine - How can you make your business plan stand out

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When it comes to winning new customers, the proposal you put in front of potential clients is key. If you’re using the same template for each business proposal that you send out, you’re missing the opportunity to customize each one for maximum engagement and impact.

With a few tricks and tips, you can ensure that all of your business proposals knock the socks off of your soon-to-be customers!

1. use positive, engaging words.

Most business proposals are incredibly boring. Yes, they cover the scope of a project and deliverables, but what stands out? What makes the potential client sit up and take notice?

It’s all about the words you use . Think about what the client wants to achieve with this project or in general. Maybe you talk about how you can help the client become a “trailblazer” or ”thought leader.” Maybe your solutions are “exclusive” or “innovative.”

Find those words that spark interest, and use them throughout your proposal.

Also, make sure you aren’t wasting space with filler words and phrases like “in total” or “very.” Stick to what you need to say, and keep it simple.

2. Keep It Short and Sweet

You might feel like the longer the proposal, the greater the likelihood that you’ll get the sale, but the opposite is true. If your business proposal can’t be read in eight minutes or less , it’s too long. Covering the basics (what the project is, what you will deliver, time and financial estimates, milestones, etc.) shouldn’t be more than a few pages. Any longer and your audience might glaze over while reading.

3. Know Your Audience’s Problem

You’re here to solve a problem for a potential client, so keep that problem at the center of your business proposal. Rather than focusing on all the cool things your product or solution can do, frame it in terms of how it will remove a headache for the client.

How will this solution make the client’s life or job easier? Will it save time or money? Streamline operations? Help them make more money? These benefits are more important than any features of your product , so leverage them.

4. Shine the Light on Your Process

Sorry to say, but you’re far from the only company who can solve this client’s particular problem. Your competitive advantage is in how you solve it. Outline your approach in the business proposal so your audience can understand why it’s unique and why it’s the best choice for them.

If you work with a highly-trained team, outline their experience and why it’s a boon for the client. If you turn work around lightning-fast, say so. Whatever makes you stand out in your industry, that’s what needs to be highlighted in this proposal.

5. Be Realistic

If you say you can complete the project in a week, you better be able to do that. It’s better to give yourself and your team a time buffer in case something comes up (sometimes it’s the client who actually causes a bottleneck, and yet you’ll still be blamed if you miss a deadline).

Build a few extra days into your deadlines in the proposal. That way, if you’re able to finish the work early, the client is surprised and delighted.

6. Detail the Costs

Many clients will balk at seeing large figures on the estimated cost without explanation. If you say the project will cost $5,000, what does that include? How do the numbers break down?

If you are estimating based on an assumed number of hours, say so. If you have fixed costs (website design: $2,500; website template: $100), itemize those to provide clarity to your potential client.

7. Make the Proposal Visually Appealing

While there’s no need to go overboard in the design department, a nice template with a colored header and subheaders can make your business proposal more enticing to read . If charts or graphs can support the information you include, feel free to add them. Always print in color!

8. Have Three People Read the Proposal Before You Send it

While certainly you should proofread the proposal, you may not catch errors or confusing points since you wrote the proposal. Ask three other people (employees, if you’ve got them; friends and family, if not) and ask them:

• Is what I’m proposing clear?
• Are there areas that need clarification?
• Are there errors (spelling, grammatical, formatting, etc.)?
• Would you say yes to the proposal?

Make edits as necessary and put your ego aside. Your objective is to make this proposal reader-friendly and compelling.

With the right verbiage and presentation, your business proposal can open doors to new business. Customize for each potential client to ensure you hit the mark with their need

Pitch Your Business Follow these guidelines to develop or refine a pitch that sizzles.

Simple Steps for Starting Your Business: Business Concept In this module of the Simple Steps for Starting Your Business online program, you will learn how to evaluate your business concept.

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.

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Make Your Business Plan Stand Out

Related Topics

10 simple steps to writing a business plan, how to write a plan for starting your own e-commerce business, making a business plan: what 10 experts have to say about creating a winning plan, what differentiates a great business plan from an ordinary one.

Good business plans weave a story that is understandable, believable and makes sense to the reader.

All elements of the story must link together in a coherent way: If the marketing plan provides for a product launch event then the costs of that event must be evident in cash flow forecasts; if the sales forecast provides for a ramp up in sales in month four, then the marketing plan must provide something to spur that increase and the operations plan must provide for the increase in production in month three and four.

A great business plan is short, sharp and to the point. People who read business plans are usually busy and time pressured. You need to capture and hold their attention by including only what is relevant and will assist them in evaluating the proposal being put forward.

A great business plan has a very strong opening that captures the essence of the idea in a few paragraphs. Few people ever get past page two of a business plan so you need to make your point early and position the concept in such a way that the reader wants to go on.

How can a business plan assist in mitigating risk?

Writing a business plan forces the management team of a growing venture to come together and talk about where they are taking their business and how they plan to get there. Very often people in a fast-growing business have different ideas about the overall strategy of the business and therefore begin pulling in opposite directions.

Going through the task of writing a business plan compels the management team to align the different elements of an enterprise and to begin to work together to achieve a specified outcome.

Writing a business plan forces an entrepreneur to test whether reasonable assumptions translate into positive cash flow and, ultimately, profit. If an entrepreneur needs to adjust too many assumptions to create that, then you need to evaluate whether the new assumptions are reasonable. If you cannot achieve positive cash flow with reasonable assumptions, this highlights a major risk for the business. Such a risk will only come to the fore as a result of the pain of preparing a business plan.

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How to Make Your Business Plan Stand Out

So how do you stand out amongst the sea of business plans being submitted to funding sources? Below are five keys to distinguishing your plan from the rest. First though, I suggest you use a good business plan template when creating your plan. A good template will include the questions you need to answer in your business plan. This will save you time and ensure you don’t miss any key points.

Start with Brevity

Readers of your business plan don’t skip to the middle. Rather, they start with the first paragraph of the first page. If they like what they read, they’ll read on. If they don’t, they won’t.

As such, the first paragraph of your business plan is the most important. In it, you must concisely explain the nature of your business. Don’t tell a story. Don’t go into a complex discussion of your business. But do succinctly describe what your business does so the reader understands the premise of your venture.

On the rest of your first page, known as the Executive Summary, give a concise description of the other key elements of your business plan as follows. Document the customer segments you are targeting. Detail the size of your market. Identify your key competitors. Describe the key elements of your marketing plan. Show your financial projections and funding requirements. And identify the key members of your management team.

Identify Your Unique Qualities

Businesses that lack unique qualities are bad investments. If there’s nothing unique about your organization, it’s too easy for others to copy you, which would eventually drain your profits. Successful companies have unique qualities. Sometimes these qualities include great management teams with significant experience. Something they includes intellectual property. Oftentimes they include agreements with customers and partners that ensure long-term sales. Whatever your current or planned unique qualities, be sure to document them in your business plan.

Look and Feel Counts

If I didn’t include any returns and this article was lines and lines of text, would you read it? Probably not. Likewise, if your business plan is hard to read, investors and lenders won’t waste their time.

While your business plan doesn’t need to look like a professionally designed brochure, it needs to be user-friendly. Have lots of white space, charts, graphs and pictures to help make your points while making the document more accessible.

Include Realistic Financials

Investors and lenders care deeply about your financials, as they want to make sure they’ll get a return on their investment. Be sure to explain how much funding you need and what you’ll use it for. Also, be sure to include your financial projections, mainly your Income Statement, Balance Sheet and Cash Flow Statement.

In creating these projections, be sure to use assumptions you can support. For example, it’s very easy to say you’ll double sales each month for the first year, but can you actually do it? Have you identified other companies, perhaps in different industries, that have achieved such growth in the past? It’s very hard to support assumptions that no company in the history of the world has achieved, so don’t include such assumptions or you’ll lose credibility.

Show Your Past Accomplishments

The best indicator of future success is past success. So be sure to include all your organization’s successes to date. Even if those successes are limited to items like choosing a location, they show you know how to execute.

There are too many dreamers out there who can only dream, and just can’t execute. Show what you’ve been able to execute on as it will give readers confidence that you’ll be able to continue executing once they fund you.

By following these five keys, you will distinguish your business plan from others. You will impress investors and lenders, and put your company in the best position to raise funding.

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Make your business stand out from the crowd

Find ways to help your business to stand out against your competitors and give your customers a memorable experience.

Are you looking to make your business stand out? Giving a unique and memorable experience for your customers shows your appreciation. It can also encourage word of mouth recommendations and returning customers.

Here's some ways you can help your business stand out: 

• Unique packaging:  use your brand colours, logos and fonts on your packaging to get attention and strengthen your brand.
• Birthday gift or discount voucher:  if you have a rewards program include the option to add birthdays, so you can send out a free gift or discount voucher.
• Subscription boxes:  subscription services allow customers to sign up to receive ongoing products.
• Free gift with purchase:  if a customer spends over a certain amount or you're currently running a promotional campaign, you could add a free product or sample in your customer’s order.
• Mystery bags:  a fun way to surprise your customers with products to try is by offering mystery sample bags. 
• Free trials or returns:  free trials or returns allows customers to try your service or product without committing.
• Social media giveaways or exclusive discounts:  use your platform to host giveaway contests or offer exclusive discounts for just your social media followers.
• Support a charity or not-for-profit organisation: if your business values a cause or aims to make a difference, consider using your business to help raise awareness, give your customers the option to donate, or pledge a percentage of your profits.

Learn more about promoting your business by email or text messages.

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So you’ve decided to start a business. First off, congrats on taking the plunge — being in business for yourself has personal rewards above and beyond any monetary success you might achieve. You’re joining a growing number of new entrepreneurs over the past year. There’s autonomy and satisfaction in knowing that every milestone is the result of your own blood, sweat, and tears.

But whether this is something you’ve been dreaming about for years or an idea that’s just recently struck, you need to make a plan. This guide walks you through the steps required to start a business.

Before embarking on your entrepreneurial journey, you may want to consider writing your own checklist for starting a business to ensure you don’t miss a step. While your industry and business goals will largely influence this checklist, all owners likely need to do the following before opening their doors for business:

1. Start with a business idea

Begin by solidifying a business idea and doing your market research . Before you start planning, make sure you have a clear idea of what you want your business to be. This is also the time to research your industry to determine trends and identify key competitors and how you can differentiate yourself.

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2. write a business plan.

A business plan is where you plan out your business’s future objectives and how you will achieve them. Think of it as your guide for success and any potential roadblocks you may face. Your plan should show you’re looking three to five years ahead, and include markers for milestones along the way.

You need a business plan for a couple of reasons. First off, it’s a blueprint for how you’re going to start, run, and then grow your business — something you can look back on for reference and measure yourself against. Secondly, if you’re seeking outside funding, you need a business plan to show that you’ve thought things through carefully.

When it comes to writing a business plan, there’s no one-size-fits-all approach. There is a bounty of resources out there to help entrepreneurs like you get started.

But even though business plans vary, they all typically contain a few key components. When you think about formatting, it’s a good idea to use the below sections as a template — including visuals like graphs and projections where appropriate. Length can also fluctuate depending on what you’re trying to do but, typically, business plans are between 15 and 20 pages long.

Here’s an overview of what your business plan should include :

• Executive summary: A top-line description of your business and how you’re going to accomplish your goals
• Business description: Your elevator pitch, conveying your business idea in a concise manner
• Market analysis: A current landscape of the market and a description that identifies your target market
• Competitive analysis : The strategic research outlining information about competitors in the space
• Service and product line: Details on what type of service or product you’re offering
• Operations and management plan: How you’re going to get up and running, and then manage day-to-day operations
• Financial considerations: A financial analysis  of all the capital you need to start, run, and grow your business

3. Determine a Business Model to Make Money

As you lay the groundwork for your new business, it’s important to consider the different types of business models you may want to pursue. A business model is the way a company plans to make money with its product or service. It is an explanation for how you will deliver value to your customers and includes who your customer base is, products or services you plan to sell, and costs that will be incurred.

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Here are different types of business models to evaluate:

• Distributor: A distributor purchases products, stores them, and subsequently sells them through a distribution channel. The selling of these products may take many forms, such as selling using the aid of a sales team or a reseller.
• Wholesaler: A wholesale business model means a business is selling products in bulk to a retailer, often at a discounted price. These retailers will in turn sell directly to customers.
• Subscription: In a subscription business model , customers make a recurring payment on a monthly, quarterly, yearly, or other consistent basis for a product or service.
• Freemium: Freemium business models are a combination of “free” and “premium.” The business might give away the service at no cost while offering more advanced or additional services for a fee.
• Marketplace: Marketplace business models are where multiple sellers or vendors come together to sell products to customers.
• Direct-to-consumer: A direct-to-consumer business model is when a business sells directly to the consumer rather than through vendors, retailers, or resellers.
• Razor-razor blade: A razor-razor blade business model is when a product or service is sold at a lower price to increase sales of a complementary or paired product. For example, a razor might be priced at a lower cost in order to increase sales of the razor blades necessary to use it.
• Consulting services: Your business can offer consulting services by sharing your expertise with others. Businesses might hire a consultant to provide guidance on a specific project or over a specific amount of time.
• Franchisee: In a franchise business model, the franchisee pays a fee to the franchise in order to license the name and operating systems of the business.

4. Choose Your Business Name

It’s time to make things real: Decide on your business name (an important branding exercise in itself) and register it with the government.

Here are some steps to get you rolling with your business name :

• Brainstorm business name ideas.
• Make sure the name isn’t taken.
• Use tools to generate and verify the business name.
• Consult an expert.
• Trademark your business name .

5. Choose Your Business Structure

Each type of business entity — sole proprietorship, partnership, LLC, corporation — has its own unique tax, legal, and structural implications. Because of this, it’s smart to consult a reputable accountant and lawyer before officially deciding on what form of business entity you want to establish. It’s also a good idea to spend some time with the IRS Small Business and Self-Employed Tax Center , as well as the the State and Local Tax Guide .

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You need to register your name or DBA (doing business as) name with the county clerk’s office or your state government, depending on where your business is located. But before registering your business name, you have to decide on a business structure. If you’re stuck, the IRS is a good place to start.

Registering your business name is usually part of the process of registering LLCs and corporations. But if you’re starting a sole proprietorship or a partnership operating under a name that isn’t your own (e.g., your name is John Smith but you want your business name to be something else), you may need to file a DBA.

6. Get Your Licenses and Permits

Most businesses require licenses or permits to operate. If figuring out licensing and permits sounds overwhelming, you might want to think about consulting an attorney in the beginning stages, just to make sure you are compliant with all rules and regulations. Outside of a general business license, and depending on the type of business you’re building, you may need additional licensing and permits.

Now for all the paperwork.

• Register for state and local taxes. Each state and locality has its own taxes, so it’s important to have a solid knowledge on this front to help you avoid problems and save your business money. (This is another place where an accountant or lawyer comes in handy.) Check the Small Business Administration for more information on determining your state and local tax obligations.
• You may also need a number of state and local licenses and permits. The required licenses and permits vary from business to business, so be sure you have the ones you need before you set up shop .

If you’re planning on hiring employees, now is the time to familiarize yourself with all your obligations as an employer . You want to cross your t’s and dot your i’s before you hire your first team member. This is also something you may want to discuss with your lawyer.

7. Determine Your Business Startup Costs

Starting a business does come with a variety of upfront costs that all business owners incur while getting their new venture off the ground. Proactively making allowances for expenses will help you track your working capital or the measure of how much liquidity your business has.

While every business is different, and startup costs vary, there are a few expenses that are common to most businesses:

• Employee expenses: You’ve probably considered labor costs as part of your business plan. Factoring in wages, salaries — including your own — and employee benefits will help you better manage your cash flow and plan ahead as you scale your business .
• Bills and utilities: Consider the bills and utilities related to your business. Regardless of whether you own or rent your physical space, you can expect to manage payment for utilities ranging from water and electricity to installing and maintaining WiFi. Both online and brick-and-mortar businesses may incur bills related to their website’s hosting service subscription, customer support software, point-of-sale systems, or accounting software.
• Equipment and supplies: Different types of businesses will require different equipment. Think through the inventory, property, and equipment needs that are related to your business so you can determine if owning or leasing those supplies might be best. For example, a hair salon will have different equipment and supply needs than a food truck .
• Insurance, licensing, and permit fees: Protecting your business by making sure you have all the appropriate licenses and permits to operate should be a top priority. A lot of licenses and permits do come with processing fees, and some with annual fees. These should be factored into your business’s budget.
• Marketing materials: You may rely on print or digital marketing to increase awareness and sales for your business. Keep in mind any costs related to printing or distributing marketing materials.

Overhead costs can be sorted by fixed, variable, and semi-variable. Take a look at where your costs might fall, or calculate a break-even analysis to help forecast future business decisions and stay on top of cost accounting.

As you grow your business, you may want to consider financing . Taking on business financing is a way to provide funds for your business and can take the shape of a traditional loan, line of credit, credit card, and more.

Express your brand’s unique vibe with a versatile website theme.

8. find a location (or focus on ecommerce).

Where will you conduct business? This can vary widely based on the type of business you’re running. If you’re a home contractor, for example, you may not even need to rent a physical office. But if you’re opening a salon , on the other hand, you need a space you can use for cutting hair.

Choosing a physical space is one of the most challenging aspects of starting a business. But it’s also one of the most important and requires loads of research and planning. For starters, you have to understand your city’s zoning laws and have a solid grasp on all the financials (like payroll taxes and any hidden costs) associated with renting a space. For help with this, talk with your city and neighborhood councils, or consider bringing on a professional agent to help.

Aside from laws, fees, and regulations, you should also consider your brand image, the safety and accessibility of the neighborhood, your proximity to any suppliers you might need to work with, and any plans for expansion. Talk to fellow business owners in the area and consult free government-provided data on neighborhood and city demographics to help inform your decision.

Don’t need a physical location? Embrace eCommerce with a free online store . As technology blurs the lines between digital and physical commerce, new opportunities to engage with consumers are bubbling up. And consumers are game, according to Square Future of Commerce data : 39% are open to trying virtual experiences or interactive displays, and 37% of consumers do their shopping online rather than in-person. 

9. Set up Your Business Bank Accounts

As you set up your business, you will begin to accept and spend money. Separating your business accounts from your personal accounts will help mitigate risks, and it’s crucial to do this right at the start. By setting up business banking for your newly founded business, you start building a track record of your finances that will help inform your future business decisions and options.

Open a business bank account

Opening a business checking or savings account can help keep your finances separate, protecting both your business and your customers. Not only can starting a business bank account create a place for your company to store money, you can start building business credit. Building business credit is important to maintain if you’d like to consider outside financing in the future. In fact, you will be accruing a business credit score separate from your personal credit score.

Here are different types of bank accounts you may consider opening:

• A business checking account , which enables you to receive payments under your business name and spend funds using debit cards, checks, or wire transfers. This is the account you’d use to manage payroll and handle other operational expenses.
• A business savings account , which allows you to store funds safely while they earn interest.
• A business credit card account , which enables you and other authorized users to make purchases on credit and pay them off later.
• A merchant services account , which allows you to accept credit and debit card transactions from customers in a safe manner, with purchase protection for customers and security for their personal information.

Keep track of your financial statements

By looking at your accounting from the start, you can gain a better sense of your business’s cash inflows and outflows. The three accounting statements you’ll want to keep track of include a cash flow statement , balance sheet, and profit and loss (or income) statement .

These statements are not only a good way for you to have a sense of your business’s financial health, but also to establish a history of your business’s finances.

10. Get Your Business Online

Consumers expect that they can interact with your business on their own terms, any time, and anywhere. And the key channel that customers can use to contact you and learn about your business is your website. Here’s how to get started.

Register a domain name

If you don’t have a website, you need to purchase your domain. Some eCommerce platforms let you buy it directly from them or you can use a domain registrar. Your domain should be your business name if it’s available, or something that fits your brand, products, or services.

A good domain name should be short and easy to share. Avoid using numbers, hyphens, underscores, and symbols that are difficult to remember. Connect the domain name to your business. If your business name isn’t available, add a prefix or suffix. For example, a kayak company located in San Francisco could choose SanFranKayakTours.com or KayakToursSF.com.

Also, be sure to check with your legal counsel to ensure that you don’t run into trouble by choosing a domain name that may be confusingly similar to another business’s brand.

Create a website

There is a wide range of approaches for business websites , from DIY self-hosted services to eCommerce platforms, that make it easy to build a site with no coding required.

Square Online helps you grow your business with a professional, beautiful website. The easy-to-use online store builder allows you to sell online, offer curbside pickup or local delivery, and sell through Facebook, Instagram, and more. And it integrates with your point-of-sale system to keep online and in-person orders, items, and inventory in sync, all in one place.

No matter the path you choose, here are some key tips to optimize your business website :

• Stay current: Keep everything updated, from service and menu offerings to pricing, contact information, hours of operation, and directions
• Put your best foot forward: Make the site easy to navigate with well-lit, composed shots of your space and offerings
• Optimize for mobile: Most consumers will find your site on their phones, so make sure it works on mobile devices as well as desktops
• Implement some SEO : Help customers find your business when they’re searching
• Link your social media : Let visitors easily keep up with your updates across channels

11. Get Business Insurance

Business insurance can protect your business from possible financial loss. There is a range of different types of business insurance options, but not all of them will be applicable. For some business owners, having insurance can provide protection from paying unexpected costs .

Depending on your type of business, here are a few types of business insurance options to explore:

• General liability insurance: General liability insurance protects your business from claims of bodily injury or property damage resulting from your products or services.
• Commercial property insurance: Commercial property insurance protects your business’s physical assets, such as equipment, furniture, inventory, or supplies. This can help cover costs for damaged, destroyed, or stolen property.
• Business income insurance: Business income insurance covers loss of income when damage to a company’s premises or property causes a slowdown or suspension of operations. Common costs covered under business income coverage can include employee wages, mortgage and rent payments, tax payments, or loan payments.
• Workers’ compensation insurance: Most states require employers to obtain an insurance policy for workers who get injured on the job or become ill due to a workplace exposure. Workers’ compensation insurance requirements for employers vary from state to state, so be sure to review your state’s requirements and find a policy that suits your business.

There are also additional types of business insurance to explore, like data breach insurance, commercial auto insurance, or professional liability insurance. Depending on the industry your business operates in, there may be state mandated business insurance requirements.

12. Create a Brand, Marketing Strategy, and Promotion Plan

While it’s often the last thing new business owners focus on, marketing can be the thing that ensures your new venture is successful.

Build your business and entrepreneurial brand

Your business brand is built around the identity created for your business. You craft a name, mission statement, and vibe. A personal brand is more about what you stand for personally and what you’ve achieved, as opposed to the business side. It’s also what distinguishes you from your competitors. It’s important to work on both.

Develop a marketing strategy

Your marketing strategy gives you and your employees a clear understanding of your marketing and priorities, and what the tactics to achieve your goals are. Setting goals and outlining how you plan to achieve them is the best way to grow your business. From doing your research to determining KPIs, here’s how to get started with a marketing strategy .

Put together a promotion plan

Marketing online can be daunting. It may even sound like something only large companies have the budget to afford. But there are several ways small business owners can connect more easily with their customers online if they’re just starting out. Here are some resources:

• Paying It Forward Podcast: How Small Businesses Are Connecting with Customers Online
• How to Get Media Coverage for Your Business
• How to Start and Grow a Newsletter
• See How Square Marketing Can Help Grow Your Business

13. Check Business Laws

While you may be an expert in your industry, the business laws that apply to your company might be new territory for you. Here are the types of business laws to be aware of when you’re getting started:

• Intellectual property laws: This covers intangible property, such as patents, trademarks, copyrights, and trade secrets that distinguish brands
• Tax laws: There are specific tax laws for businesses, including income tax, employment tax, and excise tax for certain products and industries
• Employment laws: The general set of rules that apply to businesses that have workers
• Healthcare laws: Regulations governing healthcare and health insurance provided by employers
• Advertising laws: These laws work to prevent acts or practices in advertising that might deceive or be unfair to consumers
• Privacy laws: Consumers and employees care about the privacy of their personal information, and it’s critical that you’re clearly communicating how you use their data
• Finance laws: This governs how companies can spend money and grow their businesses

14. Consider Hiring Staff

Not every business needs a team, and that’s okay. But if you do decide to hire employees or contractors , they’re often the people customers interact with on a daily basis and should represent your company well. When looking to bring on new employees, there are a few important factors to consider .

• Define the roles you’re hiring for: First, identify which roles you want to hire. Then create a job description for each role, detailing the job responsibilities and the skillset you’re looking for in an ideal candidate.
• Find your candidates: When looking for candidates, cast a wide net. Employee referrals are a great place to start, but to create diversity, look for employees outside of your or your employees’ networks. Post your job description to sites like Indeed, Craigslist, or LinkedIn.
• Conduct interviews: Interview a few candidates and include existing employees in the process. Go through each candidate’s work history to make sure they’re qualified, and ask questions that give you an idea of how they’d interact with the rest of your staff and customers.
• Obtain workers’ compensation insurance: Most states require employers to obtain an insurance policy for workers who are injured or become ill due to a workplace exposure. Workers’ compensation insurance requirements for employers vary from state to state, so be sure to review your state’s requirements and find a policy that suits your business.
• Choose a payroll method: After you hire your first employee or contractor, you need to set up a system to pay them and take care of payroll taxes. You can do payroll yourself, through an accountant, or through a payroll service like Square Payroll.

Looking for HR resources? Square HR Manager helps you save time and money with customizable HR document templates, an employee handbook builder, and access to certified HR experts. HR Manager also helps you avoid costly compliance penalties with proactive alerts when employment laws are released or updated.

Industry-Specific Info on Starting a Business

This guide provides general information about how to start a business. But each industry has its own requirements and unique factors that you need to take into consideration when you open up shop. Here are some industry-specific guides to help you get started:

How to Start a Restaurant

• Starting a Photography Business
• How to Start a Retail Business
• How to Open a Bar
• How to Start a Consulting Business
• How to Start a Cleaning Business
• How to Start a Coffee Shop

FAQ: How to Start a Business

What do you need to start a business?

• Business plan
• Financing plan
• Business structure
• Business name
• Required government paperwork
• Location or online store
• Payment system and business bank account
• Marketing plan

How do you start a business from home?

• Develop your business idea
• Identify your customer
• Run a competitive analysis
• Articulate your unique selling proposition
• Build your business model
• Register your business
• Develop your marketing strategy
• Set up your software stack
• Prepare your payment system

How do you start a business with no money?

• Freelance in your areas of expertise
• Consider businesses with little up-front cost : Dog walking, personal assistant, organizer, social media manager
• Build up savings
• Apply for a small business grant or loan
• Recruit investors

How do you start a business online?

• Have an idea
• Find your URL and brand name
• Build a website
• Optimize for SEO
• Create a marketing plan

ACH Transactions: What Every Small Business Should Know

How to Start a Pet Grooming Business

How to Start a Dog Walking Business

How to Open a Pet Store

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6 Ways to Bring Strategy into Your Work Every Day

• David Lancefield

Small decisions about where to focus and what to do throughout your day may feel inconsequential, but their impacts accumulate.

Business leaders are expected to be strategic, and while organizational obstacles can prevent you from translating intent into strategic actions, so can your personal limitations and practices. It doesn’t have to be this way. Even when it feels like the odds are stacked against you, you have more choices than you may realize. Small decisions about where to focus and what to do throughout your day may feel inconsequential, but their impacts accumulate. Master those small decisions and before you know it, you’ll overcome the obstacles as you pursue your strategy with greater clarity, determination, and ultimately success. The author presents six ways to incorporate strategy into your daily practices.

Being strategic — that is, making a coherent set of choices to help you pursue an ambition or goal — is a nonnegotiable skill for business leaders. But it can be hard to practice, and strategies are notoriously hard to design and deliver. Sometimes we blame organizational obstacles. For example, micromanagement dampens enthusiasm for trying something new. Incentives encourage us to stick to the status quo. Poor communication makes it hard to know where to focus.

• David Lancefield is a  catalyst, strategist, and coach  for leaders. He’s advised more than 40 CEOs and hundreds of executives, was a senior partner at Strategy&, and is a guest lecturer at the London Business School. Find him on LinkedIn (@davidclancefield) or at  davidlancefield.com , where you can sign up for his free “Mastering Big Moments”  workbook .

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More From Forbes

20 tips for business leaders to develop book ideas that stand out.

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When a business leader is interested in expanding their personal brand to include thought leadership, publishing a book can be a great way to demonstrate one's expertise. However, as publishing thought leadership content has become more and more popular in recent years, it has also become difficult to stand out in an increasingly saturated market.

Before brainstorming book ideas in earnest, it’s best to sit down and think about the reasons why you’re interested in publishing beyond the branding aspect. Below, 20 Forbes Business Council members each share one tip on how business leaders can develop a book idea that will help them stand out in a saturated market.

1. Determine Your 'Why'

The most important tip is to know why you want to write a book and what success looks like. Is it to grow your business, be recognized as an expert speaker or just to accomplish a goal? Also, know your definition of success beyond book sales. Writing a book takes a lot of time and the payoff is very limited unless your book is a true national bestseller, so it's important to know your "why" before you begin. - Patti Johnson , PeopleResults

2. Identify The Biggest Challenges Your Audience Faces

Publishing a book helps business leaders stand out and grow their brands. Think about the biggest challenges your customers or audience face and write a book that provides solutions and insights. By helping them solve a pressing problem, your book will be more valuable and useful. That can help establish you as a thought leader in your field while also building trust and loyalty with your audience. - Vikrant Shaurya , Authors On Mission

3. Do Your Due Diligence

Before you go wild with book ideas, do your due diligence to make sure you know what already exists. Read other books in your area to avoid thinking about your book in a vacuum. What's missing from other books in the industry? Where can you and your knowledge fill in the gaps, especially when it comes to actionable information? - Bobbie Carlton , Innovation Women

Today’s NYT Mini Crossword Clues And Answers For Friday, July 26

New pixel 9 pro details confirm google’s big design decision, 2024 paris olympics: how france planned for three opening ceremonies, 4. look to past public speaking opportunities.

Most thought leaders deliver sessions at global conferences. To ideate on a book, pick a topic that you have spoken about and gotten great feedback about from your audience. Remember that while the book idea might not be unique, your experience, authenticity, treatment and marketing can make a book stand out from the crowd. - Rashim Mogha , eWOW

5. Determine Your Niche

The best way to stand out in a saturated market is to have a creative niche that appeals to your audience and demonstrates an understanding of your target market. For example, I own a medspa that focuses on beauty treatments that are non-surgical and non-invasive but my main target customer is a mid-40s to 50-year-old perimenopausal business owner who is willing to do anything to feel good and look good. By creating a desirable book title and cover, you can grab your target audience and stand out amongst other books that are less appealing. - Krystal Roney-Smith , Lush RX Med Spa

6. Focus On Your Experiences And Insights

To stand out, focus on your unique experiences and insights. Identify a specific challenge in your industry that you have successfully addressed. Conduct thorough market research to uncover gaps in existing literature. Then develop your book idea to provide innovative solutions and real-world examples. Your authentic voice and practical advice will make your book compelling and valuable to readers. - Chris Dyer , Chris Dyer

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

7. Avoid Chasing Trends

Rather than chasing trends, find your niche within the market. Readers crave actionable insights. Instead of a broad business book, focus on a specific challenge you see your target audience facing. Offer a unique perspective informed by your experiences and expertise. This combination of niche focus and practical solutions will make your book a standout resource for a specific group of readers. - Reco McCambry , Novae

8. Identify And Address A Niche Industry Problem

To stand out from the competition, business leaders should identify and address a unique problem or niche in their industry. Focus on a specific challenge and develop an innovative idea to overcome gaps in existing literature and leverage personal experiences for a distinct voice. This approach highlights expertise, provides genuine value and differentiates the book in a crowded market. - Khurram Akhtar , Programmers Force

9. Research Popular Books Online

One simple tip is to check out the most popular books in the niche you specialize in. Look at books with two- or three-star reviews to see what the feedback is. This can help you identify where the common gaps are that can help you formulate ideas for your book. This is exactly what I did and how I was able to write and launch my book that became a best-selling book in the first week of release. - Marcus Chan , Venli Consulting Group

10. Pinpoint Your Zone Of Genius

You want to create a book that establishes you as a leading authority. Pinpoint your zone of genius where your expertise shines. Be sure your passion point showcases your enthusiasm for the subject matter. Lastly, leverage your track record to demonstrate the tangible results you've achieved within this domain. - Ibrahim Jackson , Ubiquitous Preferred Services Inc

11. Communicate What You Believe

If you have a strong point of view about a topic, a book can be an excellent way to communicate what you believe. When you communicate your beliefs, you will naturally attract world-class talent who believe what you believe and who are motivated and inspired to help you bring your vision to life. - Cate Gutowski , Quantis.ai

12. Tell An Honest Story

Your story is unique. If you're honest and authentic about the idea of looking back, telling an honest account of the past will help you stand out from the crowd. The team disagreements and choices made that helped build the business and made it successful are the key. - Adam Rumanek , Aux Mode

13. Make It About The Audience

Remember that the book is not about you. When you write a book, it should always be about the audience and how your experiences can help them achieve their goals. - Brian Will , Brian Will Media

14. Gravitate Toward Topics With Questions

Pick a topic where there are far more questions than answers. For instance, in the sustainability space, many organizations will not achieve the environmental targets they’ve made public. Anyone who can provide good answers as to why that is will likely have a bestseller. - Jody L. Bickel , Creekbank Associates

15. Lean On Your Unique Experiences

To stand out, draw on your unique experiences. For example, I started playing golf during my initial business phase. Surprisingly, I found connections between golf and sales and recorded these insights on my phone. This improved my sales success and inspired me to write the book, Sales Lessons from Golf . Your book should reflect your journey where personal interests unexpectedly enhance business acumen, ensuring authenticity. - Gaurav Kumar , Beyond Codes Inc

16. Determine What You're Passionate About

I have published four books on topics I am involved in on a day-to-day basis and am passionate about. I enjoy writing but I also do it because it matches my goal of helping as many leaders as possible maximize the value of their business and achieve a successful exit. What are you both passionate about and also experienced with? What thought leadership content can you produce that helps others and aligns with your goals? - Craig West , Capitaliz

17. Be Authentic

Determine what is real to you. What are you passionate about? What do you know? What relevant, authentic experiences can you share? What are the tangible lessons that the story reveals and anchors? Once you're able to answer these questions, share your wisdom in a way that others understand. Use clear simple language and steer away from jingoistic management speak. In summary, make it understandable, memorable and usable. - Manley Hopkinson , Manley Talks Ltd - Compassionate Leadership Academy

18. Avoid Covering Broad Topics

Focus on niche expertise. Instead of trying to cover broad topics, hone in on a specific area where you have deep knowledge and unique insights. This specialized focus will help your book stand out in a saturated market and establish you as a thought leader in your niche. - Eran Mizrahi , ingredient brothers

19. Prioritize Actionable Content

Focus on actionable content. Ensure your book provides advice that is both practical and actionable. Readers appreciate content that not only inspires but also equips them with tools and strategies they can implement immediately. - Lajuanda Williams-Griffin , ResolveIt ADR Services, Inc.

20. Tap Into Your Personal And Professional Goals

To stand out in a saturated market, a business leader or entrepreneur should develop a book idea that taps into their personal goals and the unique mark they want to leave. Reflect on how you can live up to your potential, be of service and contribute to the greater good. This personal alignment will ensure your book resonates deeply with readers and distinguishes your voice in a crowded market. - Irina Logman , Advanced Holistic Center

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Best Retirement Plans for Employees

Best retirement plans for self-employed individuals.

• Best Individual Retirement Accounts (IRAs)

Other Retirement Savings Options

• Why You Should Trust Us

Best Retirement Plans for 2024: Choosing the Right Path for Your Future

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Why Start Saving for Retirement Now?

Financial experts all agree: The sooner you start saving, the better. Retirement savings accounts offer long-term wealth-building features like compounding, tax advantages, and retirement-focused investment strategies. 

Compound interest allows you to earn interest on your interest. The longer your money grows, the faster it accumulates and the closer you are to achieving a financially secure retirement. Contributing a little here and there is better than not contributing at all. 

Moreover, retirement plans like IRAs and 401(k)s offer tax benefits. You can contribute pre-tax money to lower your taxable income today. Or you can contribute after-tax money for tax-free growth and withdrawals. 

Here are Business Insider's editors' top picks for the best retirement plans in 2024. 

401(k) Plans

401(k)s are popular retirement savings plans offered by for-profit companies. Employees can open a traditional 401(k) or a Roth 401(k). Traditional 401(k)s grow with pre-tax dollars, but Roth 401(k)s rely on after-tax contributions, just like with IRAs.

Employees can contribute up to $23,000 in 2024, and individuals age 50 and older can contribute additional "catch-up" contributions of $7,500. 

Many 401(k)s offer employer-matching contributions. Your employer matches up to a certain limit for every dollar you put into your account. This is generally considered "free money" toward your retirement. For instance, if you make $50,000 annually, and your company matches 50% of your 401(k) contributions up to 5% of your salary, you would need to contribute $2,500 into your account to receive the full match amount. Your employer would then contribute an additional $1,250 a year.

403(b) Plans

403(b)s, or tax-sheltered annuities, are retirement plans for public school employees, tax-exempt organizations, churches, and other nonprofit companies. Similar to a 401(k), 403(b)s may offer the benefit of an employer match. You can contribute pre-tax or after-tax money. 

If you're under 50, you can contribute up to $23,000 in 2024. Employees 50 and up can contribute an additional $7,500. In addition to pre-tax and after-tax contributions, you can contribute to your 403(b) by allowing your employer to withhold money from your paycheck to deposit into the account.

Thrift Savings Plans

Thrift savings plans (TSPs) are retirement accounts for federal and uniformed services employees. Like 401(k)s, these plans let you contribute pre- or after-tax dollars. But, unlike many 401(k) employer matches, most TSPs offer a full 5% contribution match. Your employer will match your contributions up to 5% of your salary.

The annual contribution limit for 2024 is $23,000. The catch-up contribution limit is $7,500. 

457(b) plans are retirement savings accounts offered by certain state and local governments and tax-exempt organizations. Like 403(b)s, you can contribute to your 457(b) plan by asking your employer to withhold a portion of your paycheck and deposit it in your retirement plan. Some employers allow you to make Roth contributions. 

The annual contribution limit for 2024 is $23,000. The catch-up contribution limit is $7,500. Folks 50 and older can contribute up to the annual additions limit, currently $69,000. 

Pension Plans

Pension plans are retirement plans fully funded by your employer, who are required to make regular contributions toward your retirement. However, depending on the plan's terms, you may not have control over how the money is invested. 

There are two main types of pension plans: the defined contribution plan and the defined benefit plan. 401(k)s are technically considered defined-contribution pension plans, and your employer is not responsible if your investments perform poorly.

Traditional pension plans are defined benefit plans (plans with fixed, pre-established benefits). Employers are liable to provide retirement funds for a certain dollar amount, calculated based on employee earnings and employment years.

Solo 401(k)

Solo 401(k)s are an option for business owners who work for themselves and have no employees. They can contribute as both an employer and employee (and spouses of business owners may be able to contribute as well), meaning they can contribute twice as much. You can make pre- or post-tax (Roth) contributions to your account. 

As an employee, you can defer up to $23,000 of your self-employed income in 2024. If you're 50 or older, you can make an additional $7,500 catch-up contribution. As an employer, you can contribute up to $23,000, plus the catch-up contribution if you're 50 or older. The total contribution limit is $76,500. 

Simplified employee pension (SEP) IRAs are retirement vehicles managed by small businesses or self-employed individuals. According to the IRS, employees (including self-employed individuals) are eligible if they are 21 years old, have worked for the employer for at least three of the last five years, and have made a minimum of $750. 

SEP IRAs also require that all contributions to the plan are 100% vested. This means that each employee holds immediate and complete ownership over all contributions to their account, including any employer match. You can contribute up to $69,000 or 25% of your employee's compensation 2024.

Vesting protects employees against financial loss. For instance, according to the IRS, an employer can forfeit amounts of an employee's account balance that isn't fully vested if that employee hasn't worked more than 500 hours in a year for five years.

SIMPLE IRAs are for self-employed individuals or small businesses with 100 employees or less. According to the IRS, these retirement plans require employers to match each employee's contributions on a dollar-for-dollar basis up to 3% of the employee's salary.

To qualify, employees (and self-employed individuals) must have made at least $5,000 in the last two years and expect to receive that amount during the current year. But once you meet this requirement, you'll be 100% vested in all your SIMPLE IRA's earnings, meaning you have immediate ownership over your and your employer's contributions. 

Employees can contribute up to $16,000 in 2024. You can also add a catch-up contribution of $3,500 if you're 50 or older.

Payroll Deduction IRAs

Small businesses and self-employed people can set up employee IRAs even simpler. With payroll deduction IRAs, businesses delegate most of the hard work to banks, insurance companies, and other financial institutions.

After determining which institutions their employer has partnered with, employees can set up payroll deductions with those institutions to fund their IRAs. These accounts are generally best for employees who don't have access to other employer-sponsored retirement plans like 401(k)s and 457(b)s.

For 2024, you can contribute up to $7,000 in annual contributions and up to $1,000 in annual catch-up contributions for employees aged 50 or older. 

Best Individual Retirement Arrangements (IRAs)

One of the most appealing components of independent retirement plans like IRAs is that you can open one as long as you've got taxable (earned) income. And even if you have an employer-sponsored retirement account, you can usually set up a traditional IRA, Roth IRA, and other independent retirement accounts.

Traditional IRA

Traditional IRAs let you save with pre-tax contributions toward your retirement savings. You'll pay tax when you withdraw during retirement. Traditional IRAs are recommended for higher-income workers who prefer to receive a tax deduction benefit now rather than later.

The 2024 contribution limit is $7,000, with up to $1,000 in catch-up contributions.

Roth IRAs are funded by after-tax dollars, meaning you pay taxes on your contributions now and make tax-free withdrawals later. As long as you're eligible, experts recommend Roth IRAs for early-career workers who expect to be in a higher tax bracket when they withdraw. Traditional and Roth IRAs share the same contribution limits: $7,000 in 2024, with up to $1,000 in catch-up contributions.

If you want to open one of the best Roth IRAs , single filers can only contribute the maximum amount in 2024 if their modified adjusted gross income (MAGI) is less than $146,000. Married couples must earn less than $230,000 annually to contribute the full amount in 2024. You can still contribute less if you earn a little more, though. 

You can find your MAGI by calculating your gross (before tax) income and subtracting any tax deductions from that amount to get your adjusted gross income (AGI), then adding back certain allowable deductions.

Spousal IRAs

There's also an option for married couples where one spouse doesn't earn taxable income. Spousal IRAs allow both spouses to contribute to a separate IRA as long as one spouse is employed and earns taxable income. This account allows the nonworking spouse to fund their own IRA. 

In 2024, each can contribute $7,000 (or $8,000 if they are 50 or older) for up to $16,000 annually.

Rollover IRAs

The best rollover IRAs let you convert your existing employer-sponsored retirement plan into an IRA, something experts generally recommend doing when you leave a job for a few reasons: primarily because you have more control over the investment options in an IRA than in a 401(k), and also because it's easier to consolidate your accounts for record-keeping.

Many online brokerages and financial institutions offer rollover IRAs; some will even pay you to transfer your employer-sponsored plan to an IRA.

Self-Directed IRAs (SDIRAs)

You can fund a self-directed IRA using traditional or Roth contributions ($7,000 and contribution limits in 2024, plus another $1,000 for catch-up contributions). But the difference between these accounts is mainly one of account custody and investment choices.

Unlike traditional and Roth IRAs, the IRS requires that all SDIRAs have a certified custodian or trustee who manages the account. These third parties handle the setup process and administrative duties of the IRA (e.g., executing transactions and assisting with account maintenance).

SDIRAs also give investors access to a wider range of investment options. With traditional and Roth IRAs, you're limited to mutual funds, ETFs, stocks, and other traditional investments. But, SDIRAs allow you to invest in alternative assets like real estate, precious metals, and cryptocurrencies .

Nondeductible IRAs

Nondeductible IRAs are for people who earn too much to get the full tax benefits of an IRA. Contributions for these accounts aren't tax deductible, meaning you'll fund your IRA with post-tax dollars like a Roth IRA. The difference is that you'll still have to pay taxes on any earnings or interest from the account once you withdraw at age 59 1/2.

Annuities are investment vehicles purchased from insurance companies at a premium. You'll receive periodic payouts during retirement once you purchase an annuity using pre-tax or after-tax dollars. Annuities offer a reliable income stream for retirees and reassurance they won't outlive their savings. 

The funds in an annuity can also be invested. Before you start receiving payouts, the investment gains grow tax-free, but you'll still be liable to pay income tax. Plus, annuities have limited liquidity and high fees that may diminish potential gains. 

Health Savings Accounts (HSAs)

Health Savings Accounts (HSAs) are savings accounts designed to cover medical expenses but can double as retirement savings. Once you're 65, you can withdraw the funds from your HSA penalty-free for non-medical expenses. 

While an HSA isn't a great main retirement savings vehicle, it can be a great addition to a different long-term savings account. In addition to penalty-free withdrawals on qualifying expenses, HSAs are funded with pre-tax dollars and grow-tax-free. But you'll still be subject to income tax. 

In 2024, you can contribute up to $4,150 for self-coverage and $8,300 for family coverage. Folks 55 and older can contribute an additional $1,000 catch-up contribution. 

Choosing the Best Retirement Plan for You

If you're not a small-business owner or self-employed, the best retirement plan for you usually depends on your type of employer, marital status, and short- and long-term savings goals. 

However, for most employer-sponsored retirement accounts, you can decide whether to make pre-tax or post-tax (Roth) contributions to your account. Roth contributions are best for those who expect to pay more in taxes as they age, but you should consider pre-tax contributions if you don't mind paying taxes when you withdraw money from your account in retirement.

You can boost your retirement savings even more by opening a separate IRA in addition to your employer-sponsored plan (you can still save toward retirement with an IRA if you're unemployed).

FAQs About Retirement Plans

Your best retirement option depends on your income, employer, financial situation, time horizon, and goals. If you can access a retirement savings account through your employer, especially a pension or 401(k) plan, that is likely your best option. If not, a traditional or Roth IRA offers tax advantages, compounding power, and flexible investment options.

A traditional or Roth IRA may be a better retirement saving account than a 401(k) due to the low fees and flexibility. Although 401(k)s come with great benefits like an employer match, they have high fees that can eat away at gains. An IRA may be a better option if your employer is not covering those fees. 

A Roth IRA may be the better option, depending on your situation. In most cases, a 401(k) is the stronger retirement account due to the convenience of automatic payroll deduction and the additional benefit of an employer match. However, Roth IRAs can double as emergency funds. A Roth IRA may be better if you're looking for increased flexibility and Roth tax benefits. 

Why You Should Trust Us: Our Expert Panel For The Best Retirement Plans

We interviewed the following investing experts to see what they had to say about retirement savings plans. 

• Sandra Cho , RIA, wealth manager, and CEO of Pointwealth Capital Management
• Tessa Campbell , Investment and retirement reporter at Personal Finance Insider

What are the advantages/disadvantages of investing in a retirement plan?

Sandra Cho:

"The main advantage is the tax implications of the account. Depending on the account, taxes will either be deferred or not included at all. For employer-sponsored retirement plans like 401(k)s, contributions to the plan are made with pre-tax funds, and the account grows tax-deferred. Taxes are then owed upon withdrawal.

"Roth IRAs, on the other hand, are contributed to with post-tax funds but grow tax-free. Both should be included in an investor's portfolio. Another advantage is that 401(k)s often have an employer matching component. That is, an employer will match your contributions up to a certain point (usually around 3% of your salary). 

"The disadvantage is that retirement accounts have a max contribution limit. Another disadvantage is that these funds cannot be used until age 59 1/2. For younger investors, that can be a long time wait."

Tessa Campbell: 

"Tax benefits and compound interest are two of the major advantages of contribution to a retirement savings plan like a 401(k) or individual IRA. Depending on the kind of plan you open (traditional or Roth), you can benefit from contributions after- or post-tax dollars. In addition, some 401(k) plans are eligible for employer-sponsored matches, which are essentially free money.

"The disadvantage of a retirement plan is that you won't be able to access the funds in your account penalty-free until you're at least 59 1/2 years old. Unless there are no other options, early withdraws from a retirement savings plan isn't advised."

Who should consider opening a retirement plan?

"Every individual should be investing through a retirement plan if they have the financial capability to. At the minimum, investors should try to contribute up to the matching amount for their 401(k) and the maximum amount for their Roth IRA. The growth in these funds compounds over time, helping to enhance the long-term return."

Tessa Campbell:

"I can't think of a single person that wouldn't benefit from a retirement savings plan, other than maybe someone that is already well into retirement. Although some younger individuals don't feel the need to start contributing quite yet, it's actually better to open an account as soon as possible and take advantage of compound interest growth capabilities."

Is there any advice you'd offer someone who's considering opening a retirement plan?

"I would advise them to work with a financial advisor or trusted professional. This will give them insight into where they should be investing their money, whether that be a 401(k), Roth IRA, or another vehicle. There are plenty of people and sources out there who provide important information and can help you create a strong financial future."

"Don't contribute huge portions of your salary if it doesn't make sense with your budget. While contributing to a retirement savings plan is important, you must still afford your monthly expenses and pay down an existing debt. If you're having trouble establishing a reasonable budget, consult a financial advisor or planner for professional help."

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Morning Rundown: Arson attacks hit French rail ahead of opening ceremony, Obama endorses Kamala Harris, and Sinaloa cartel kingpins arrested in Texas

Does Kamala Harris get Biden’s delegates? Here are answers to all your questions about what comes next

The situation that Democrats find themselves in is unprecedented in modern presidential history: a major party's presumptive nominee deciding to leave the race in the summer before the election and before the official nomination.

But the good news for Democrats is, as in most cases, there's already a rule for that.

Established procedures in party rules, campaign finance laws and state code govern most of the key questions facing Democrats, and the country, right now.

Some of them are untested and could be the subject of lawsuits down the road. But here's a look at a few of the pressing questions, and what we know about the answers:

Does Biden need to release his delegates? No

This is not a thing in the Democratic Party, just the Republican Party. We delved into it more deeply here , but the quick summary is: The only command to delegates under current convention rules is to “in all good conscience reflect the sentiments of those who elected them.”

After a primary process in which President Joe Biden won virtually every contest and faced no true opposition, those “sentiments” were easy to predict. Now that means those Democratic delegates can do whatever they want. That said, Biden’s campaign played a big role in picking the delegates, choosing supporters for their loyalty. So it’s likely that Biden’s endorsement of Harris will have some sway with these members. But it’s not a directive.

Does Harris get his delegates automatically? No

See above. But since delegates aren’t officially bound, there’s no mechanism here that would give Harris control of them. She has to win them the old-fashioned way — convincing them to support her.

So far, a handful of state delegations are getting behind her, along with most of the state party leadership. But it's up to every individual when they cast their vote, not any directive from party leadership.

Can Harris take over Biden's campaign coffers? She just did

The presidential campaign, the entity officially known as Biden for President, filed paperwork changing the name of its organization to Harris for President with Kamala Harris as the authorized candidate. While the situation has never arisen in modern history, and the law is untested, most campaign finance experts believe that Harris has the right to Biden's campaign’s bank account, which ended June with almost $96 million in the bank. Harris’ name had been on all the previous filings as she and Biden shared a campaign account, leading most to believe that she can take it over without any problems.

Those supporting the view that Harris has the right to the money include Campaign Legal Center President Trevor Potter (a former Republican chairman of the FEC who served as counsel to the late GOP Sen. John McCain's presidential campaigns), Hans A. von Spakovsky , a senior legal fellow with the Heritage Foundation, and Dara Lindenbaum , a sitting FEC commissioner who often serves as a swing vote.

It’s possible someone tries to argue she shouldn’t have the right. But the bottom line is: She just did, and most experts believe she's in the clear.

Do Democrats have to do a virtual convention still? Unclear

Remember, Democrats are currently planning to do a virtual convention sometime in the first week of August , an idea born of concerns about Ohio's previous deadline for parties to submit the names of their nominees for the ballot. That deadline had been Aug. 7, but while Ohio passed a fix into law to move the deadline back, it doesn’t go into effect until Sept. 1. So technically, the Aug. 7 date will come and go with the old law still on the books, leaving the Democrats technically in violation of that law.

By the beginning of September, they’d no longer be in violation. But Democrats supportive of the virtual roll call argue they don't want to leave themselves open to a lawsuit that would cast into doubt whether they can secure a spot on Ohio's ballot.

Whether they decide to move forward with the virtual convention is a different story. NBC News is reporting that two sources familiar with the matter say the plan is still to expect a virtual roll call within the next two weeks. That would allow for the party to have a nominee heading into Chicago to let Democrats focus on their message at the convention without a question about who will be the nominee.

When will Democrats pick their nominee? TBD

If the party is unified around Harris and proceeds with current plans for a pre-convention virtual roll call, then Harris would be formally nominated before Aug. 7. But the roughly 200-member Convention Rules Committee, which governs the nominating process, did not finalize that plan in a meeting Friday .

The Rules Committee could decide to push the roll call back to the convention or even vote to hold it sooner. It meets on Wednesday.

Could someone else still run against Harris? Yes, but no one has yet

Nearly all of the usual suspect big-name Democrats with national ambitions have endorsed Harris, including Gov. Gavin Newsom of California and Gov. Gretchen Whitmer of Michigan. But someone could still run against her, and sources close to Sen. Joe Manchin of West Virginia, who recently left the Democratic Party and became an independent , say he is considering it.

How would someone run against Harris? They need to act fast

All it takes to be in considered for the Democratic nomination at the convention is a petition with signatures from at least 300 delegates (with no more than 50 from any one state).

But the process does not allow draft efforts (the candidate has to sign the petition themselves) so someone would have to declare their intentions to seek the party’s nomination very soon and no one has yet. And a delegate can only sign one petition.

Do you need to be a Democrat to run against Harris?

Technically yes. According to the 2024 Call to the Convention, presidential candidates must sign a pledge that they are "a bona fide Democrat whose record of public service, accomplishments, public writings and/or public statements affirmatively demonstrate that the candidate is faithful to the interests, welfare and success of the Democratic Party of the United States, and will participate in the Convention in good faith."

Yes, Bernie Sanders ran without changing his party affiliation. But if he had won, it would have been very unlikely the party would have disqualified him on this if the will of the voters was to have him as their nominee. 

Will Democrats have ballot access issues with Biden not on the top of the ticket?

Republicans are making hay of this, but it doesn’t appear like much will come of it. National party rules decide who gets to be the nominee, and there hasn’t been a convention yet, so Biden was not the nominee in any official capacity. Even in states with deadlines that seemed to conflict with the late Democratic convention date, most told NBC News in recent months that they would allow (and have allowed during repeated instances where parties have had late conventions) the party to tell them who it ultimately chooses to be its nominee once it’s decided at the convention.

Only Alabama and Ohio were pushing back on this, and both states’ governors signed legislation to push back nominee certification deadlines (but obviously, the Ohio situation remains somewhat of a live ball, as explained above).

If they wanted to replace their nominee after they're officially selected, that could get more complicated . But the bottom line is, there was no official Democratic presidential nominee yesterday, and there will not be one tomorrow. So under party rules, not much has officially changed.

Ben Kamisar is a national political reporter for NBC News

Alex Seitz-Wald is a senior political reporter for NBC News.