annual business plan format

How to Create a Profitable Annual Business Plan [+Free Template]

Published: February 09, 2023

The beginning of a new quarter is the perfect time to start planning the next year for your business. Start the next year or quarter off on the right foot by creating an annual business plan for your company.

Q4 often brings a flurry of business-related activity. And while all this activity helps fill the pipeline, it can distract you from reflecting on past performance and preparing for the year or quarter ahead.

Fortunately, you can write an annual business plan at any time of the year. Start your plan now to set your team up for success.

What is an annual business plan?

An annual business plan is just that — a plan for you and your employees to help achieve the company’s goals for the year. Think of an annual business plan as the guide to complete all of your company’s overall goals outlined in your initial business plan.

The first business plan you wrote for your business is the blueprint and the annual business plan is the detailed instructions to keep your business running long-term.

Usually, an annual business plan contains a short description of your company, a marketing analysis, and a sales/marketing plan.

Because an annual business plan is for the year, you’ll want to review your business at the end of four consecutive quarters and revise your plan for the next four quarters.

Why is annual business planning important?

Even though the fourth quarter might be a busy time of year, don’t put off creating an annual business plan.

Not only will your annual business plan keep you on track, it will also help you map out a strategy to keep your employees accountable. You can then more easily achieve the overall goals of your business.

Here are some reasons why it’s well worth creating an annual business plan for your company.

You can measure your success.

An annual business plan is the best way to measure your success. And I’m referring to the collective “you” here because it takes the entire company or all of your employees to make new business efforts effective.

An annual plan not only sets expectations for you but also for others within your company who need to contribute to the business’s success.

You can reflect on the past and plan ahead.

Creating an annual business plan allows you to reflect on the past 12 months.

As you reflect on the previous year, you’ll be able to get a good idea of what your business is capable of doing and set accurate, attainable projections based on previous numbers.

You’ll define your business goals.

Your annual business plan will shed some light on what the heck you do at your company. For those who are not routinely involved in new business, it can seem like a black hole of mystery.

Sharing your plan — whether to an executive committee, department heads, or even the entire staff — adds clarity and gives everyone something to aim for.

You can impress your boss.

If you head a department that could benefit from an annual business plan, don’t wait to be asked before you start writing. Get on your CEO’s schedule to review your outline and discuss your intentions for putting this plan together.

Sometimes the hardest part is getting started. You can get the ball rolling with the basic template that follows.

Annual Business Plan Template

Each section of your annual business plan will help tell the story of your company and clearly define your company’s goals for the year.

Let’s take a look at each section of the annual business plan template .

Executive Summary

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Annual Business Planning Template

Written by Dave Lavinsky

What is an Annual Business Plan?

An annual business plan is a document that sets out the goals and objectives for a company over the course of a year. It provides a roadmap for how the business will operate and achieve its desired results. The best business plan template will help guide you in creating a comprehensive annual plan.

Steps to Create an Annual Plan

There are seven steps to creating an annual business plan:

• Define the company’s overall vision and strategy.
• Set specific, measurable goals and objectives for the year.
• Identify the resources needed to achieve these goals.
• Create a timeline for each goal and objective.
• Assign responsibility for each goal and objective to specific individuals or teams.
• Review and revise the plan on a regular basis.
• Each of these steps is important in creating a well-formulated annual plan. Let’s take a closer look at each one.

Defining the Company’s Overall Vision and Strategy

The first step in creating an annual plan is defining the company’s overall vision and strategy. This involves deciding where the company wants to be in the future and outlining the steps needed to get there. It’s important to be realistic in setting these goals and to make sure they are aligned with the company’s overall strategic vision.

Setting Specific, Measurable Goals and Objectives

Once the company’s overarching vision has been defined, it’s time to set specific, measurable goals and objectives for the year. These should be attainable but challenging and should align with the company’s overall strategy. Each goal should have a target date for completion, as well as a specific metric that will be used to measure progress.

Identifying Resources Needed To Achieve Goals

Next, it’s important to identify the resources needed to achieve these goals. This includes everything from manpower and funding, to office space and equipment. It’s also important to assign responsibility for each goal/objective to specific individuals or teams. This helps ensure that everyone is aware of their role in achieving the desired results.

Creating a Timeline

Once goals have been defined and resources have been identified, it’s time to create a timeline for each one. This will help keep everyone on track throughout the year and ensure that tasks are completed in a timely manner. A Gantt chart can be helpful in organizing this information visually.

Assigning Responsibility

Finally, it’s important to assign responsibility for each goal/objective to specific individuals or teams. This helps ensure that everyone is aware of their role in achieving the desired results. By assigning clear responsibilities, tasks can be delegated efficiently and everyone will know who is responsible for what outcomes.

Reviewing and Revising Plan Regularly

It’s important to review and revise your annual plan on a regular basis. This ensures that the goals are still relevant and achievable and that the resources required are still available. It also allows for any necessary adjustments to be made if something isn’t working as planned. A good rule of thumb is to review the plan quarterly or more often if needed.

Parts of the Annual Strategic Plan Template

There are four key parts to the annual plan template:

1. Vision and Strategy

The first step is to define the company’s overall vision and strategy. This will provide a framework for all of the other steps in the process.

2. Goals and Objectives

The next step is to set specific, measurable goals and objectives for the year. These should be aligned with the company’s vision and strategy.

3. Resources

The third step is to identify the resources needed to achieve the goals and objectives. This includes things like budget, staff, and materials.

4. Timeline

The fourth step is to create a timeline for each goal and objective. This will help ensure that everything is completed on time and within budget.

The Importance of a Well-Formulated Annual Strategic Plan

The importance of a well-formulated annual plan cannot be overstated. It provides a clear roadmap for the company’s operations and sets forth a clear vision for its desired results. Additionally, it helps to ensure that all employees are aware of the company’s goals and objectives and are working towards the same end.

The Difference between an Annual Plan and A Company’s Broader Strategic Vision

The difference between an annual business plan and a company’s strategic vision is that the former is more focused on the specific goals and objectives to be achieved over the course of a year, while the latter is more concerned with the company’s long-term direction. An annual business plan lays out a roadmap for the company’s operations over the course of a year and sets specific targets to be met. A company’s strategic plan, on the other hand, is more concerned with the overall direction of the business and its long-term goals.

Ultimately the difference between an annual plan and a company’s broader strategic vision is that the former is more focused on the specific goals and objectives to be achieved over the course of a year, while the latter is more concerned with the company’s long-term direction.

Best Practices for Annual Planning

There are a few key best practices that businesses should keep in mind when planning their annual operations.  

First and foremost, it is important to be realistic about what can be accomplished in a year. Businesses should establish achievable goals and objectives, and then create a plan of action to achieve them. This includes setting timelines and specific tasks that need to be completed in order to reach the goal. 

Another key element of effective annual planning is creating a budget and sticking to it. Budgets help businesses stay accountable and track progress toward their goals. 

In addition, effective annual planning should always include regular review and course correction as needed. Businesses should routinely assess their progress, make necessary adjustments, and ensure they are still on track to meet their goals.

When it comes to business annual planning, there are a few best practices that can help your organization make the most of the process. Here are a few tips to get you started:

•  Set realistic goals. It’s important to set realistic goals for your annual planning process – this way, you’re more likely to achieve them. Be honest with yourself about what’s achievable and what’s not, and make sure your team is on the same page.
• Make a roadmap. Once you’ve set your goals, create a roadmap for how you’ll achieve them. This will help keep everyone on track and ensure that you’re making progress toward your targets.
• Use data to inform your decisions. When making decisions about your annual planning, use data to inform your decisions. This will help you make informed choices based on evidence rather than intuition alone.
• Communicate regularly. Make sure to communicate regularly with your team throughout the annual planning process – this will help keep everyone updated on what’s happening and ensure that everyone is working towards the same goal.
• Celebrate successes along the way. Celebrate successes along the way – this will keep everyone motivated and help ensure that the process is fun as well as productive.

Annual Contingency Plan Example

Sometimes it’s helpful to have a contingency plan or clause in case things don’t go as expected. Below is a sample contingency plan.

“In the event that we are unable to achieve our sales goals for the year, we will implement a number of contingency measures. These measures may include reducing our advertising budget, downsizing our workforce, and suspending operations at certain locations. We will only implement these measures if absolutely necessary and we are confident that they will help us to get back on track.”

Strategic Business Plan Example

Below is an example of a strategic business plan.

“Our long-term goal is to become the leading provider of XYZ products and services in our industry. To achieve this, we will need to increase our market share, expand our operations into new markets, and continue to innovate our product offerings. We are confident that we can achieve these goals and become the industry leader.”

Annual Business Plan Template

Executive summary.

The executive summary is a brief overview of the company’s annual plans while taking into account the company’s broader vision. It should include a description of the company, its products, and services, its marketing and sales strategy, its operations plan, and its financial plan.

Company Overview

The company overview section of the annual planning document should provide a brief history of the company, its mission and vision, and its current status.

Products and Services

This section of the annual plans should describe the company’s products and services in detail. It should also include information on the company’s competitive advantages and any new products or services that will be launched in the coming year.

Marketing Plan

The marketing plan section of the company’s strategy should outline the marketing and sales strategy for the entire organization for the coming year. It should include information on the company’s target market, its branding and positioning strategy, its advertising and promotion budget, and its sales goals.

Operations Plan

The operations plan section of the annual business plan should describe the company’s methods for manufacturing, distribution, and other aspects of its operations. It should also include information on the company’s capacity, its supply chain, and its quality control procedures.

Financial Plan

The financial plan section of the annual business plan should include a summary of the company’s financials, the budgetary approval process, contingency plans, as well as the broader visions and plans for funding and investment.

With regards to financials, you want to include past and projected Income Statements, Balance Sheets, and Cash Flow Statements. Also, if you are seeking external financing, document the amount of funding you need and the key expected uses of these funds.

Annual Goals

When creating your business plan, it’s important to set annual goals and objectives. This will help you track your progress and ensure that you’re on track to reaching your long-term goals. Some things you may want to consider when setting your annual goals include:

• Increasing revenue
• Expanding your customer base
• Improving product or service quality
• Reducing costs
• Developing new products or services
• Enhancing marketing efforts
• Expanding into new markets

One of the most important aspects of any business plan is setting annual goals. These goals should be attainable, yet ambitious, and should help to guide your business in the right direction. Some things you may want to consider when setting your annual goals include increasing sales, expanding your customer base, improving productivity or efficiency, reducing costs, or developing new products or services. Whatever your goals may be, make sure to document them and track your progress throughout the year. This will help you ensure that you are on track to meeting your targets and achieving success for your business.

The appendix of the annual business plan template should include any supporting documentation that is relevant to the plan, such as market research reports, financial projections, and product specifications.

Every company should have an annual business plan. This document helps you track your progress, set goals, plan forward, and make necessary adjustments throughout the year related to key results. Without a business plan, it is difficult to make informed decisions about where to allocate your resources or measure your success. If you need help getting started, we have a great business planning template that can get you on the right track. By following our simple tips and using our template, you can create a comprehensive business plan that will help ensure your success in the coming year. 

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Free Annual Planning Templates

By Courtney Patterson | April 3, 2024

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You can set a clear, strategic direction for the year using annual plans, ensuring adaptability and sustained growth. These free annual planning templates outline strategies that enable your organization to achieve its annual goals and objectives.

Included on this page, you’ll find an annual planning template with a Gantt chart , an annual planning template with a calendar , an annual operational plan template , an annual training plan template , and more. Also, learn more about the types of annual planning templates .

Annual Plan Slide Template

Download an Annual Plan Slide Template for PowerPoint | Google Slides  

When to Use This Template : This template is ideal for corporate executives, business managers, and marketing professionals to communicate their annual objectives and inform stakeholders of their strategic vision.

Notable Template Features : Use this template to highlight the vision statement, goals, key performance indicators (KPIs), owners, and progress updates for each quarter of your annual plan. Define your organization’s approach to accomplishing objectives and goals with this collection of free strategic planning templates.  

Annual Planning Template With Gantt Chart

Download an Annual Planning Template With Gantt Chart for

Excel | Google Sheets

When to Use This Template : Project and business management professionals can use this template to visualize objectives and deliverables across a timeline. 

Notable Template Features : This spreadsheet template includes a section for providing a quick overview of your mission and objectives before diving into the detailed plan. Enter the start and due dates for global priority objectives. The template automatically populates these dates into a Gantt chart for a visual representation of the timeline. 

Annual Planning Template With Calendar

Download an Annual Planning Template With Calendar for

Excel | Microsoft Word | Google Docs | Google Sheets

When to Use This Template : This template is ideal for corporate executives, as well as marketing and business management professionals, to organize and align tasks with their goals.

Notable Template Features : The calendar, with a separate sheet for each month, provides the space for entering details on any day of the year in a clear format. This spreadsheet also includes a global priorities chart for detailing your annual plan.

Annual Marketing Plan Template

Download an Annual Marketing Plan Template for

When to Use This Template : Marketing and business professionals and executives can use this template to align their marketing efforts with objectives and reach their target audiences.

Notable Template Features : This comprehensive template details objectives, target audiences, and projected and annual costs for all marketing campaigns and projects. The timeline features columns where you can outline your specific marketing plan for each quarter, month, and week.

Check out this collection of free nonprofit marketing plan templates and samples to outline and manage your campaigns.

Annual Operational Plan Template

Download an Annual Operational Plan Template for

When to Use This Template : Operations and project management professionals and business owners can use this template to outline their goals and strategic plans.

Notable Template Features : Enter the executive summary and operational plan details into the convenient spreadsheet. List the responsible party, resources, start and end dates, and the number of days for each project task. The spreadsheet chart tracks progress each quarter and month to help you manage time and resources.

Check out this collection of free operational plan templates for various templates and learn more about operational plans.

Annual Training Plan Template

Download an Annual Training Plan Template for

Microsoft Word | Google Docs

When to Use This Template : This template is ideal for training and development professionals, human resources professionals, and department heads responsible for planning and implementing training programs in their organizations.

Notable Template Features : This comprehensive spreadsheet includes fields for detailing objectives, performance metrics, and outcomes for training goals. The Resources table includes columns for training budget, staff, full-time equivalents, and travel fund estimates. You can also list training and review schedules with this template.

Nonprofit Annual Strategic Plan Template

Download a Nonprofit Annual Strategic Plan Template for

When to Use This Template : This template is ideal for nonprofit executives, board members, and program and development professionals to set goals and outline strategies for nonprofit organizations.

Notable Template Features : Enter your nonprofit organization's mission, vision, and core values in the template fields and slides. You can detail the importance, action steps, and success metrics for your nonprofit's strategic goals. Also, list each goal's budget, start and end dates, and stakeholders.

Check out this collection of free nonprofit strategic plan templates for examples and guidance on creating a nonprofit strategic plan.   

Annual Business Plan Template

Download an Annual Business Plan Template for

When to Use This Template : This template is ideal for entrepreneurs, business owners, and executives outlining goals and striving for efficiency and growth in the upcoming year.

Notable Template Features : This business plan template features a three-year sales forecast and cash flow sheets. It also includes data fields for the executive summary, company overview, target market, marketing plan, key assumptions, and more essential business plan elements.

Annual Fundraising Plan Template

Download an Annual Fundraising Plan Template for

When to Use This Template : Nonprofit organizations, educational institutions, and healthcare organizations can use this template to outline fundraising goals, strategies, timelines, and budgets.

Notable Template Features : This template outlines targets and obstacles for donor acquisition, engagement, and retention. Use the timeline to enter quarterly and monthly costs, hours, and resource estimates for fundraising activities

Types of Annual Planning Templates

Many annual planning templates are available, each formatted to help you outline and detail process steps, strategic goals, and more. 

Select the template that best suits your organization's annual planning needs:

• Annual Planning Templates : Use an annual plan slide template to present the goal, key performance indicator (KPI), owner, and progress content for each quarter. These templates are perfect for outlining objectives and strategies for stakeholders.
• Annual Planning Gantt Chart Templates : Use an annual planning template with a Gantt chart to visualize deliverable statuses in a detailed timeline. These templates simplify planning by automatically entering start and end dates into a Gantt chart.
• Annual Planning Calendar Templates : An annual planning template with a calendar allows you to list and organize plan details at a glance for any day of the year.
• Annual Marketing Plan Templates : Document objectives and costs for your marketing campaigns and projects with an annual marketing plan template .
• Annual Operational Plan Templates : An annual operational plan template charts operational tasks, their corresponding goals, and strategies over a year. These templates enable you to document resources, evidence of success, and status updates.
• Annual Training Plan Templates : Manage your organization's training resources, programs, objectives, and schedules with an annual training plan template . These templates document immediate training needs, mandatory training, and review schedules.
• Nonprofit Annual Strategic Plan Templates : Use a nonprofit annual strategic plan template to list your nonprofit's mission and vision statements. Detail strategies, success metrics, budgets, and stakeholders for your organization's yearly goals.
• Annual Business Plan Templates : A comprehensive annual business plan template includes the executive summary, company overview, SWOT analysis, and other key elements of a business plan. These templates usually include features for calculating sales forecasts, financial statements, and other essential data.
• Annual Fundraising Plan Templates : Acquire and retain donors using an annual fundraising plan template . These templates feature a timeline for planning and tracking monthly and quarterly fundraising activities so that you can achieve your fundraising goals.

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Annual Planning Templates: How to Make your 2021 Annual Plan

It’s that time of the year when annual planning returns to the top of your list. And while you already have some great ideas in mind, the hardest part is to document and lay out the whole plan. So today I’ll show you 15 free annual planning templates you can download right away and use in the making of your annual business plan.

What’s an Annual Plan?

Before we start, let’s be clear on what “Annual Plan” means. An annual business plan is a work plan that outlines the goals, resources and operations a company will execute in a 1-year period. It usually includes an annual budget, project deadlines, roles and responsibilities. In other words, the annual plan acts as a roadmap for the organization and aligns internal teams to the yearly business goals.

As you can see, the annual plan sets the direction a company will go for the next 12 months. But, how to do annual planning? It really depends on how big the company is and how detailed you want your work plan to be. In the following section, I’ll cover all the essentials you need to make a strong annual plan.

How to Create a Successful Annual Plan? (+ Free Planning PowerPoint Templates)

Most people know that annual planning involves assessing past results, setting realistic goals and defining how to achieve them. But it doesn’t end there! A crucial part of the annual business plan is the implementation and for this you need to effectively communicate the new strategies. To make all this happen, the 24Slides designers have created a selection of amazing PowerPoint templates to help you in the process of making and sharing your annual plan. Let’s see each step in more detail below:

Step #1: Assess Your Current Situation

Planning is all about reading a situation and making informed choices. So step #1 in your annual planning process is to review last year . It’s important to determine what worked and what didn’t work for the business. To do this you can gather data from past reports or talk to managers from each area. You can also interview key roles like customer service reps to know what clients liked or disliked from your products. All the activities in this stage should help you identify what went well and what could be improved next year.

To maximize your productivity, use a planning tool like the December calendar template . It will help you manage your time and keep things running smoothly from the beginning. In this template, you’ll find horizontal and vertical December calendars you can pick from to visualize your monthly activities. And if you prefer to see each event in detail, opt for this corporate agenda template .

Once you have all the information you need, it’s time to put together your findings and conclusions. For this, the Business Review template is a great platform to showcase the analysis you’ve done so far. It features charts, diagrams, and timelines to review key areas such as finances, marketing, operations, sales, and others. Plus, having your initial ideas in a structured report will make your annual planning easier as you can come back to these points at any time in the process.

The most important advice I can give you for this step is to be honest with yourself. Remember that you can’t change what you don’t acknowledge, so being objective while assessing your current situation is crucial.

Step #2: Set Goals and Priorities

Now that you know where you stand, it’s time to look ahead. Where do you want the company to be next year? This is where you think about all the possibilities and pick the ones that can work within the situation of the business (that’s why the first step was so important!). I’m sure there are a million things you’d like your team to accomplish, but you need to be realistic with your annual goals.

A good practice to start goal-setting with the right foot is to identify the business priorities . And for this, Pyramid diagrams are perfect to order topics in a hierarchical way. With these triangle shapes, you’ll be able to rank “problems to solve” according to its relevance, available resources, or impact on the business. This approach allows you to set criteria for every topic you want to work on and see what you should address first in your annual plan.

With all this in place, you already have a clear sense of where the company is going and now you’re ready to use one of the most powerful tools for annual planning: the OKR framework template

Objectives and Key Results (OKR) is a goal-setting system that makes you focus on your annual goals and how to make them happen. First, you set your Objectives, which should answer: What do you want to achieve next year? And then your Key Results or the measurable ways you can prove you’re achieving the objectives. Here’s a simple OKR example :

• Objective: Improve your brand presence online
• Key Result 1: Hit 200,000 visits to your website every month
• Key Result 2: Collaborate with 5 micro-influencers in a product release campaign

Check out this article to learn more about how to set your OKR goals !

Step #3: Define Your Strategies and Actions

Next on your list is the HOW of your plan . Note that in the OKR framework, your Key Results work as strategies for reaching your objectives. This means you can go straight to defining your actions. However, if you’re still new to OKRs, use this visual method:

Circle mind maps are simple yet powerful tools to come up with new ideas. Just place your goals at the center and use the branches for the actions your company should take. This is a great way to focus on what you want to accomplish while mapping out your business strategies . Here are some examples: Improving your customer service, targeting a particular niche, or increasing your company’s sustainability. Remember that they should be aligned to your goals and broad enough to break them into actions.

Following, you can use Gantt charts to plan out the actions involved in each strategy. These corporate Gantt charts are perfect to distribute your team activities throughout the year and set monthly or quarterly deadlines. You can also color-code events according to their status. As you can see, Gantt charts are an easy way to organize strategies and actions for the annual business plan.

And here’s an extra annual planning template! If you want to group your objectives, strategies, and actions in a single place, check out the 30 60 90 business plan template . It has creative timelines, a table chart, milestone slides, and more to showcase everything you’ve worked on so far. The great thing about a 30-60-90 plan is that it allows you to implement quickly and test your plan in the first 3 months. This way you can see if you’re on the right path to close the gap between where you are and where you want to be next year.

Step #4: Share the Action Plan with your Team

One of the top reasons plans fail is because there’s no clear implementation strategy. Thus, it becomes hard – if not impossible- to integrate the annual plan into the day-to-day operations. Luckily, we’ve addressed all this in step #3, but there’s still one thing left: communicate the HOW to your team .

What’s the use of putting together a great annual plan if you can’t execute it, right? That’s why a detailed action plan is key to help your staff understand how their efforts contribute to the company’s success.

And when it comes to sharing a work plan, this template is a must-have in your annual planning toolkit. The Work Plan PowerPoint template will help you showcase the next projects and activities. You can include business goals and key results so everyone knows what the company expects from them. And the best thing is that it’s full of engaging visual elements to hold your team’s attention exactly where you want it to be.

However, this stage is not only about stating what needs to be done, but also who is responsible for each action. To keep a common understanding of who does what in your plan, use the RACI Matrix template . With these charts you’ll be able to distribute tasks evenly and assign key responsibilities according to the RACI criteria: Responsible, Accountable, Consulted, and Informed. As a leader, you know how crucial effective communication is when managing teams, for that reason a RACI Matrix could be a great addition to the delivery of your action plan.

At this point, we’ve covered from activities and resources to deadlines and roles , which leaves your team ready to carry out the annual business plan.

Step #5: Implement and Review

The most common mistake in planning is believing that it ends when everything is up and running. And sure, it’s a huge accomplishment that what you had on paper is being executed in the real world. But don’t let that fool you! Your annual plan has one step more: Review the results.

The purpose of this stage is to evaluate the performance of your plan and determine whether your annual objectives were met. And, although most people do this at the end of the year, a recommended practice is to conduct these reviews every three months . This gives you the opportunity to see what’s working or not early in the year and adjust the direction of your actions on time.

Use the Quarterly Business Review template to compare your current metrics to the objectives you’ve established in step #2 . It has roadmaps and data charts to review your business performance, analyze quarterly projects, and monitor your team’s progress. Plus, with this corporate template, you’ll be ready to present early results to key investors or any other stakeholder interested in how the company is doing.

And there you have it: The 5-step annual planning process! But remember that it works like a cycle. Planning is iterative: you ideate, execute, review, and take what you’ve learned from the experience back to step #1 . This way you’re able to gain insights on what works best and craft stronger annual plans each year.

PRO TIP: How to Really Nail your Annual Planning?

Traditionally, people associate annual plans with large documents. The ones loaded with data and projections about the company. And while it’s important to have your annual plan in a well-organized document; this doesn’t add much to step #4: Sharing the action plan with your team .

Think about it: On top of their day-to-day tasks, will your team be able to read a text-heavy document from cover to cover? Of course not! And a huge part of your annual plan success involves getting everyone on board and excited about the upcoming projects. So, how about making your annual plan a presentation instead?

With an annual plan presentation, you’ll have control over how the company vision is delivered than through a Word document. This is also a great opportunity to motivate your team over what’s to come and resolve any question they might have. And what’s even more important: By the end of the day, you’ll make sure everyone is on the same page about the company’s direction for the upcoming year. It’s a win-win!

You can start building your presentation right now with the annual planning templates you’ve seen above. They’re all from Templates by 24Slides , our platform of free PowerPoint resources . Here you can download thousands of corporate PowerPoint templates and even opt for templates according to the industry you work in! Look at these examples:

Digital Marketing Agency PowerPoint Presentation

Digital marketing agencies move in a fast-evolving sector and it’s important that they refresh their strategies and services every now and then. With this dark-themed template agencies can showcase all they envision for the future and share the guidelines to make it happen. There are elegant visual elements like diagrams and lists to help deliver a solid business plan presentation.

Mobile Banking PowerPoint Presentation

This eye-catching template is for companies in the banking industry! If a mobile app is in the works, this creative template is ideal to share the plan with your team. It comes with amazing roadmaps, circle diagrams, and data-driven charts to display every detail of your annual plan. It even features mobile phone and tablet mockups! In short, the most complete presentation template you’ll find on mobile banking services.

Remote Onboarding PowerPoint Presentation

With the increase of remote work, it’s not difficult to guess that onboarding processes will need some adapting too. If your company plans for next year include the transition to remote onboarding, this template is for you. You’ll be able to show project goals, the open positions for each area, the steps to establish a new employee onboarding program, and more.

E-commerce Icon Set for Presentations

But presentation templates are not the only thing you can find on our Templates by 24Slides platform. There are also vector icons for your slides. Like the ones on top! E-commerce and online businesses can now use PowerPoint icons to enhance their annual plan presentation. They work wonders for showing processes, new site features or to easily explain something that otherwise would involve large chunks of text. Use them wisely!

Professional PowerPoint Design for your 2021 Annual Plan

Annual planning templates are definitely a great idea, but what happens when fiddling with PowerPoint the entire weekend is not your thing? Well, there’s an option for that too: Get your own custom annual plan presentation! Here at 24Slides , our PowerPoint designers can create a fully customized presentation for you. This means that instead of showing your strategies in old-fashioned bullet points, you’ll get to deliver your annual plan through a delightful visual experience for everyone. Including fussy managers and investors!

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How To Write A Business Plan (2024 Guide)

Updated: Apr 17, 2024, 11:59am

Table of Contents

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

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

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Drafting the Summary

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

Ask for Help

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

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

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

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

Numbers-based Goals

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

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

Intangible Goals

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

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

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

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

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

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

Business Operations Costs

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

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

Other Costs

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

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

How do I write a simple business plan?

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

What are some common mistakes in a business plan?

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

What basic items should be included in a business plan?

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

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

How to create a successful annual business plan

Here is what you need to know to create an effective and comprehensive annual plan for your department or company:

What is the purpose of annual planning?

An annual plan acts as a roadmap for your company. Annual planning allows you to go into a new fiscal or calendar year with specific and measurable goals set, budgets finalized, and a plan for how to measure progress on and achieve your company’s organizational and financial goals. Through this process, you develop the vision of where you hope that your company will be at the end of the year and the map of how you will get there.

You can also use annual planning to set goals and plans for individual departments or teams within an organization. Create marketing plans, human resource plans, and more to keep each segment of your business on track, reset your goals, and get your teams aligned towards common goals and initiatives. Since trends, consumer habits, and other factors change frequently, it’s good to create a fresh one-year plan each year.

Annual plans complement strategic planning while providing more short-term (one year) goals that are often tied to financial goals as well as the annual budget. Strategic plans often have more overarching goals that work to advance the company’s mission over three years or longer. Your annual plan will likely include goals that play into these longer-term goals in your company’s strategic plan.

Evaluating existing and prior year goals

Start your process by evaluating your current starting point. Take time to look back at last year’s annual plan and evaluate whether you achieved your set goals or fell short in certain areas. Attempt to determine why you fell short on specific goals and what steps you could take to prevent a repeat of that issue. This will help you set realistic goals for the new year.

This is also a great time to review your company’s:

Mission statement. This is a statement that describes the purpose of your organization. What does your business do and what does it hope to accomplish?

Core values. These are the principles, beliefs, and values that your organization’s culture is built on. These values shape how you do business, and as such, should shape your annual plan.

Strategic plan. Your strategic plan should detail your business plan and long-term goals while taking market conditions into consideration. Your annual plan should complement your overall strategic plan.

Financial reports. Review the prior year’s budget reconciliation, cash flow statements, and year-end reporting. If you have access to budgets or financial forecasts for the upcoming year, review them now. If not, they’ll need to be created later in the annual planning process.

Keep all of these documents handy, as you may need to reference them as you move through the annual planning process.

Create an updated SWOT analysis

It’s also time to update or create a SWOT Analysis chart for your company. A SWOT analysis is typically depicted as a four-quadrant square with the following quadrants:

Strengths. List out the things that your company already does well and your internal strengths. Perhaps you have a large Instagram following with a strong network of influencers promoting your product. Maybe you have unique branding, patents, or technology that set you apart from competitors. This section is your highlight reel from prior years and can also include strengths like new products or developments being released in the new year.

Weaknesses. Now it’s time to consider what can be improved. List out your company’s internal areas of weakness. A good way to identify weaknesses is to look at customer feedback. Do customers like your product but complain about the processing and delivery times? A weakness can also be staffing-related such as high turnover or taking too long to fill open positions. A common marketing weakness may be lack of media mentions or ranking low in Google search results for your product or business type.

Opportunities. These are external opportunities that you can take advantage of in the coming year. Are there new trends or technologies that could boost the success of your business? Is it time to start marketing your products to Gen Z? Are there changes in government regulations or laws going into effect in 2022 that could have a positive impact on your business?

Threats. Explore potential external threats to your company’s growth and success in the coming year. Maybe the current supply chain problems mean that you will have manufacturing or delivery delays in 2022. There could also be legal changes that negatively impact your business. Threats could also come in the form of major competitors or market saturation. Knowing what may threaten your success will help you build a plan to overcome these challenges, so be thorough with your market analysis.

After creating a company-wide SWOT analysis, consider breaking things down even further and creating a SWOT analysis on specific aspects or segments of your business.

For example, a marketing SWOT chart can help you identify what you need to adjust in your marketing strategy for the new year. Many businesses, especially small businesses, may have strong Facebook and Instagram accounts but weaknesses in the area of SEO. Reaching new audiences and market segments through TikTok may be an opportunity if your business has not jumped onto the platform yet. A new year is a great time to do a SWOT and update your ideal customer or target demographics to evaluate opportunities for expansion.

Goal setting with SMART goals

It’s a good idea to start off the new year by setting goals for your employees, departments, and the company overall. This creates trackable metrics to measure your company’s success at each level throughout the year. The best way to create goals is to use the SMART goal system.

Specific. Aim to make your goals specific and to identify who will be involved in the goal. A general goal would be to increase brand awareness. Specific goals would be growing your LinkedIn following to 10,000, obtaining 10 media mentions, or ranking one the first page of Google results for a specific target keyword. Within each of those specific goals you could identify who is responsible for them; a social media manager, PR or media relations team member, an SEO consultant, or in a small business, it may just be a digital marketing manager. Regardless, it’s helpful to define who is involved and who will oversee progress.

Measurable. Define how you will measure the success of each goal. What metric will you use to track progress towards the goal?

Attainable. Your goals should be realistic. They can be somewhat ambitious, but avoid including stretch goals that are unlikely to be achieved within the year with your anticipated staffing levels, budget, and level of consumer awareness. Of course, start-ups would love to score a major investor or have their company go viral and generate a huge amount of buzz with consumers, but unless you have reason to believe either of those is on the horizon, leave out goals that depend on unrealistic or unpredictable events. Also, leave goals that will take several years for your strategic plan.

Relevant. The goals that you set for this year should be relevant to your company’s vision, mission, and long-term objectives. This is why it’s helpful to start the process by looking at your mission statement, vision, and strategic plan.

Time-bound. All goals should have a clearly defined time frame including a specific deadline date. For annual planning, the timeframe may be one year, or you can break your goals down into monthly or quarterly goals and adjust the deadlines as such.

You’ll likely end up with a decently long list of goals for your company. As mentioned in the Specific criteria, breaking down your goals and defining who is responsible for them is important. Try to create goals that span the major business functions of your company such as product, operations, marketing, HR, and leadership . Set company-wide goals and then break them down by teams and later by individual contributors to ensure that everyone knows what goals they need to accomplish in order to help the business meet its overall yearly goals.

Budgeting and financial considerations

An important aspect of annual planning is financial planning. A good business plan should take financial constraints, budgets, and financial goals into consideration and plan accordingly. If you are a start-up and plan to go through a round of fundraising or have other major changes such as going public with an IPO, include those in your annual planning.

Your annual plan should include financial projections for the year. These projections will help you plan for financing needs, changes in cash flow, and evaluate the best timing for new projects or hiring. You’ll want to create sales forecasts to project your expected income. It’s also wise to forecast your anticipated expenses for things like labor, materials. supplies, and overhead.

You’ll also want to verify that you will be able to allocate the funds needed to accomplish the SMART goals that you created earlier. At this point, you may need to revise some of your goals to ensure that they are achievable within your financial constraints. Those that require a larger budget may need to be scaled down or saved for next year.

Contingency planning

Hopefully everything will go as planned, but it’s always good to have a contingency plan in place in case something goes awry. After all, we’ve all seen how unexpected challenges can derail business operations over the past two years.

Plan for potential emergencies or alternate scenarios. Does your annual business plan rely on covid conditions improving in 2022? Create a contingency plan in case there are more hiccups than expected during reopening or the return to the office.

Consider how your business could best handle supply chain issues, unexpected cash flow problems, and major IT or security concerns. If your headquarters is in an area prone to natural disasters such as wildfires or hurricanes, you should always have a plan in place for the safety of your staff, files, as well as assets that would be difficult to replace.

Putting it all together

There are a number of annual business plan templates available online that you can use to craft your final report. Larger companies often use specialized software for their annual business plan. If you plan to use the goals created during the annual planning process for performance management , a software solution may be best so that department leads and individual employees can track their goals throughout the year.

The report should open with an executive summary, although this is actually the last piece that you’ll typically want to write. The executive summary should act as an introduction to and a summary of the full report. Tailor it to your audience depending on whether the plan will be shared with employees, investors, or others.

A description of the product or services including new products, the team, and the company at present may also be included.

Then comes the meat of the report where you explain the goals you’ve created and your plan for achieving and measuring them. Your full report may be separated into marketing planning, financial planning, HR planning for organizational improvement, and other relevant sub-sections. This is where the zoomed-in SWOT analyses and department-level SMART goals will come in handy.

The report should leave the reader with a clear picture of what you will achieve and how you will do it.

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What is a business plan?

A business plan is a document that helps small business owners determine the viability of their business idea. Combining market research and financial analysis, a professional business plan helps startup CEOs and potential investors determine if the company can compete in the target market.

Typically, a good business plan consists of the following:

• Executive summary
• Company description
• Mission statement
• Product and services
• Marketing plan
• Operations plan
• Management organization
• Financial plan
• Conclusion & appendix

Every section involved in a business plan is designed to help startup businesses reach their target market.

A business plan asks founders and entrepreneurs to detail their business strategy in a step-by-step process that makes sense from an operational perspective. This is essential if a startup is seeking a business loan or an investment from a venture capital firm.

However, even small businesses that are already economically viable can benefit from creating a business plan, since it encourages business owners and their management teams to examine their business model and reevaluate the best ways to reach their target customers.

Should I use a business plan template?

Yes.  If you’ve never written one, a business plan can be challenging to write.

Creating a successful plan that you can use to grow your small business can require weeks of market analysis and financial preparation. You may spend time using Microsoft Excel or Powerpoint in order to create documentation which better supports our operational decisions.

However, almost every professional business plan is structured in the same way and most ask for the same information. Because of this, using a business plan template is advisable to save time, money, and effort.

Business plan templates for free

Rather than spending time trying to figure out how to write a business plan , use a free template as a guide to completion.

Business plan templates from PandaDoc can help you reach an effective go-to-market strategy even faster by asking you to provide all the relevant information you need when creating an effective business plan.

Grab a free template to get started!

Frequently asked questions

How many pages should my business plan be.

This depends on the kind of business plan you need to write and how you intend to use the plan that you create.

For example, a plan for a small business seeking potential investors or a business loan will need to provide income statements, cash flow statements, and a balance sheet (usually for a three-year or five-year forecast period).

These financial statements can be omitted if a small business owner isn’t seeking funding and is instead planning to use their business plan as a guiding document for themselves and their management team members.

Some business plans may only run a few pages. Fully-developed business plans can be as long as 50 pages. Much of this depends on the type of business, the operational strategy, and the level of detail that goes into developing the business plan.

Who needs a business plan?

Every business should have a business plan. This is an essential guidance document for any founder or CEO.

Good business plans help a company determine the viability of its place in the market and can help the business develop better strategies for differentiating itself from its competitors.

Business planning also forces business owners to evaluate their marketing strategy, the cost of customer acquisition and retention, and how they plan to grow their business over time.

What is the best business plan template?

Business plans come in all shapes and sizes. The best business plan template for your business is one that you understand and that matches the size and legal structure of your operation.

If you’re a sole proprietor, a business plan template designed for a big corporation probably doesn’t make sense. However, a business plan that helps you build an effective roadmap to grow your business while protecting your intellectual property is a good starting point.

PandaDoc offers specialized business plan templates for common industries along with tips to help you get started with business planning.

Should I hire someone to write my business plan for me?

No. You’ll find freelance writers and business strategy companies out there who are happy to write your business plan for a fee.  These resources can guide you through the process, but you should write (or be heavily involved in) the creation of your business plan.

The reason for this is simple: You know the most about your business, and your business needs you to succeed.

A writer can work with you to make your business plan sound better to investors, and a consultant can help you fill in knowledge gaps — like how to conduct a SWOT analysis — and point out weaknesses in your plan. But, at the end of the day, you need to use the business plan to pitch investors and run your business.

Those ideas and guiding principles aren’t something you can outsource.

Should I use business planning software?

Software isn’t required when creating an effective business plan. Most business planning software is designed to help you navigate the outlining and writing process more effectively.

You don’t need software to write a professional business plan, but a solid template can help you get started. Download a free template from PandaDoc today and take your business to the next level.

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• 6 steps for operations leaders to build ...

6 steps for operations leaders to build a better annual plan

An effective annual plan is critical to keep your teams, departments, and company together, working toward the same goals. 

As an operations leader, you oversee how your organization runs its business. By reviewing how your company performed in the past year, you and your operations teams can identify which strategies worked—and which fell short—to build an effective annual plan designed to maximize the impact of every department.

Here’s what you need to know about building a successful annual plan.

Connect everyone's work to company-wide goals

87% of workers with individual goals tied to company-wide goals say their business is well-prepared to meet customer expectations. Discover how Asana can transform the way your organization aligns work to goals.

Annual plans drive clarity and accountability 

With an annual plan, departments can start the year off with a strong understanding of the overall vision and how their work contributes to larger business goals. Without an overarching plan, it can be difficult to understand how a specific project or initiative moves the business forward. 

Clear goals establish benchmarks for project progress

Your annual plan shouldn’t be a set-it-and-forget-it goal. Rather, periodically check project progress against your annual plan so you can see how your operations teams are doing. Doing this throughout the year will not only give you a sense of how your teams are tracking towards their overall goals—it can also help you understand if they’re ahead or behind schedule, and adjust accordingly. 

If you notice that a specific initiative is not on track to meet the strategic goals outlined in your company’s annual plan, you can use this data to pivot and double down on—or divest from—specific initiatives. 

Establish concrete goals for a specific time period

The more specific your goal, the more concrete your action plan. Providing detailed and specific goals gives your employees a clear understanding of what work to prioritize and what deliverables they’re responsible for. 

Make sure your goals are measurable, as well. Clear KPIs and OKRs demonstrate how tangible work connects back to larger business goals. 

6 steps for annual business planning

The annual planning process often takes place near the end of the calendar year or at the end of your company’s fiscal year. As you get closer to annual planning time, consider these six steps of the annual planning process. 

1. Reflect on previous strategies—and develop new ones

Before your business can start planning for next year, ask yourself, your stakeholders, and your operations teams: How did we perform against the strategies laid out in last year’s annual plan?

No matter the answer, use these recent data points to steer your decision-making when building your next annual plan. That could mean doubling down on big programs or initiatives born in the last year—or going a different direction entirely. 

A well-built annual plan factors in reflection on what did and didn’t work—and improves off of it.

2. Transform your business’s greatest needs into goals

After reflecting on last year’s performance, hone in on the most significant growth and improvement opportunities. Use this for guidance as you construct company- and department-wide goals.

It helps to have a consistent framework for goals across the business, to accelerate the goal-setting process and ensure greater understanding of goals within all corners of the organization.

The exact goal framework you use will depend on your company, but a few good ones to consider are: 

The Objectives and Key Results (OKR) method , which helps your business set goals using the framework “I will [objective] as measured by [key result].”

Key Performance Indicators (KPIs) , which use leading and lagging indicators to track how you’re performing towards your goals. 

The SMART goals framework , which helps ensure the goals your organization sets are specific, measurable, achievable, realistic, and time-bound.

3. Create an action plan to maximize impact

The next step is to create an action plan for your business to achieve the goals outlined in step three. Your action plan should outline the list of steps your teams need to take to accomplish their goals. Think of an action plan like the map you’ll use to arrive at your final destination. 

From there, delegate the work laid out in the action plan to specific teams and departments. Connecting the work that your operations teams complete to larger company goals makes it easier for each team to understand the impact their work has on the business.

4. Ensure the annual plan is everyone’s plan

Not everyone can be involved in building the annual plan for your company—but every team member should feel like their work is seen and accounted for in the plan. 

As the annual plan comes together, meet with leaders and employees across the business to ensure varying perspectives and priorities are factored into the final product. This step is critical for getting buy-in and generating excitement across the business. 

You don’t want to be in a position where you’re just telling everyone what the annual plan is—you want to bring every department along for the journey and get them excited about what they’re working toward in the coming year. Consider conducting a presentation to not only share the company plan and why this plan matters, but also to outline timelines and how departments will use it to achieve the company’s goals. 

5. Execute your strategy, monitor metrics, and adjust as needed

At this point, your organization’s annual plan is completed, but nothing is ever fully set in stone. As the year progresses, make sure you’re continually monitoring success metrics and KPIs. If the results of your strategies are not behaving as you expected them to, it’s important to adjust so your business will still hit the goals outlined in your annual plan. 

6. Repeat again for next year 

At the end of the year, it’s time to start the process over again. Align with your strategic plan, look back at the past year’s results, and create another plan to achieve those business goals. 

What does a good annual plan include?

Effective annual plans should contain components that are essential for completing the work outlined in the plan itself, and context for why this plan will be effective. Here are a few examples of components you would find in an annual plan:

Reports of the previous year’s performance: Your company’s annual plan for the upcoming year should be based on the data from the previous year’s performance. This provides context for your teams as to what they’re capable of doing within one calendar year.

Budget estimates: A common KPI investors track is return on investment (ROI). Knowing how much money different teams are spending makes it easier for your organization to calculate ROI and adjust strategies. Providing budget estimations also gives departments the context they need for the amount of resources they have at their disposal for the year.

Clear and specific goals: Annual plans should use the SMART goal framework so that your company can easily measure progress and report back on it later. 

Important milestones: Your business can accomplish a lot of work within one year—but to do that, each department needs to know how they're doing. Milestones operate like checkpoints, giving teams and departments a sense of direction and an idea of how they're pacing against annual goals.

Project buffers and contingency plans: Unexpected things happen all the time, and it’s better to be prepared than caught off guard. Develop a contingency plan for how your organization will get back on track in the event of an unexpected roadblock. Also set aside some resource buffers, such as a small portion of your company’s budget, to accommodate for unexpected expenses.

Gear up for next year

After a year of hard work, it’s time to reflect back and plan for more great things in the future. While annual planning takes time, collaboration, and thoughtful strategy, the efforts show in the form of your business success. 

Still have questions? We have answers. 

What is annual planning.

Annual planning is the act of developing a strategy for the upcoming year based on the learnings from the current year’s performance. This provides an opportunity for your operations teams to iterate on strategy from the past year and incorporate those learnings into your upcoming plans. 

In essence, your annual plan should contain: 

The goals your business needs to achieve

A strategy for how your organization will hit those goals

Clear tactics for what each department will work on

Any important milestones that benchmark progress

What’s the difference between annual planning and strategic planning? 

Strategic planning and annual planning are both important business planning methods that help set your team's strategy for the future. However, the scale of these planning strategies are different.

Strategic planning is the long-term strategy for your business. This encompasses a basic roadmap of how business should develop within three to five years. You will use your strategic planning process to inform your annual plan. 

Annual planning represents all of the goals and strategies that you want your business to achieve, similar to a strategic goal. The main difference here is that an annual plan only encompasses one calendar year, instead of a few years. If you think of it like a pie, annual planning is just one slice of the larger strategic plan pie.

When should your operations teams start annual planning?

Begin your annual planning process during Q4, so you can begin day one of Q1 with your plan in hand. If that’s not an option, do your annual planning as close to the start of the new year as possible. 

There are two benefits to planning earlier. First off, you’ll beat the end-of-year crunch, and avoid the stress that traditionally comes with the end of the year. Additionally, if you run an efficient annual planning process with your leadership team, your operations teams will still be free to execute on high-impact projects throughout Q4.

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How To Create An Effective Annual Operating Plan (+Template)

Do you even need one? Perhaps your organization excels at executing business strategies, keeping everything on track while you monitor performance in real-time.

That's the hope, isn't it?

But let's be honest. You wouldn't be here reading this article if you were confident in your existing annual operating planning process.

So let’s dive in and explore the step-by-step process to create your annual operating plan. This guide also includes a free planning template that will help you flesh out the plan’s details. 

What Is An Annual Operating Plan? 

An annual operating plan (AOP) is a forward-looking blueprint that translates your business strategy into actionable steps. It’s a detailed roadmap that outlines your organization's strategic objectives, annual budget, detailed action plans, and resource allocation for a specific fiscal year. 

With an AOP (also known as the annual business plan), you get a 10,000-foot view of how to allocate project resources and what risks to manage so you can execute key priorities. The plan serves as a bridge between high-level business goals and day-to-day operations.

💡What is the difference between a business strategy and an annual operating plan (AOP)? Business strategy outlines the choices you need to make for your organization to win. AOP involves budget allocation, timelines, and deliverables, empowering your team to execute your strategy successfully.

Benefits Of An Annual Operating Plan

Organizations can realize the full benefits of an annual operating plan when it's tightly integrated with their strategic plan and financial budget. Here’s how:

Maximized resource efficiency and utilization

An AOP ensures efficient resource allocation to projects and initiatives that align with the business strategy and financial budget. It helps you direct human, financial, and other assets toward achieving strategic objectives , minimizing resource waste by linking daily operations with long-term goals. 

Alignment and focus on key business priorities 

An annual operating plan provides a clear roadmap toward a shared vision and helps everyone in your team understand their roles in meeting business objectives. It promotes collaboration and communication while eliminating silos, fostering a unified, goal-driven work environment.

Controlled strategy execution 

By defining specific Key Performance Indicators (KPIs) and milestones in your AOP, you can easily assess whether the company is on track to achieve its goals. These metrics will help you identify areas that require immediate course correction to stay aligned with the overall strategy.

Confident, data-driven decisions 

A well-rounded AOP provides you with data to help you make the right decisions. These insights empower proactive responses to opportunities and challenges, ensuring that all team actions are focused on outcomes.

How To Create An Annual Operating Plan? 

Here’s a step-by-step guide for you to follow:

Step 1: Do the initial research and analysis

To kick off the planning process, assess the current state of your organization. Review the previous year's performance, considering various data sources, including financial statements and operational reports . 

By doing a thorough business review , you ensure that your annual operating plan for next year is grounded in reality. 

This helps you create a holistic plan that considers your business’s needs, strengths, and weaknesses. It also sets the stage for subsequent operational and financial planning —more on this later in the article.

👉How Cascade helps you:

With Cascade’s extensive library of 1,000+ integrations , you can centralize all your business data in one place. This simplifies data analysis and gives you easy access to past performance for an objective and thorough review. 

Step 2: Consult with key stakeholders to understand the needs 

The effectiveness of your annual operating plan (AOP) hinges on its alignment with your overarching company goals. Without it, you’re just creating a set of plans that, when executed, will have little to no impact on the overall business strategy. 

To ensure organizational alignment , discuss with the CEO and CFO about key business priorities. Also, meet with other key stakeholders like department heads to gather insights on departmental needs and priorities.

Their input will help you set realistic and achievable objectives and also get them fully onboard when the time comes to put the plan in motion.

👉How Cascade helps you:  

Cascade’s Metrics Library helps you tie metrics with your business objectives so you can have total visibility of what’s happening across the organization and achieve data-driven organizational alignment from top to bottom. 

Step 3: Set a budget and allocate resources

First, look at your revenue goals and identify how much will you actually need to sell to hit your targets.

Collaborate with department heads to assess the availability of manpower, equipment, and other resources. Verify whether these are sufficient to meet your set targets.

List out expenses, covering everything from materials and labor to marketing and new equipment. This exercise provides a clear picture of how much of resources you’ll need to allocate across various projects and functions to fulfill the objectives of your annual plan.

👉How Cascade helps you: 

Cascade makes budget tracking possible with custom fields that can capture data and link them to objectives. The budget custom field is a numerical field type where you can set the allocated, forecast, and spent values. As you work on your plan, you can update the relevant values and see a progress bar of the allocation vs. actuals.

📹 Check out this short video and learn how to set your custom field for budget tracking:

Step 4: Prepare a plan 

In this step, you should define your metrics and go beyond mere measurement. Set concrete targets. Then, link these targets to initiatives , projects, and actions that will drive you toward those numbers. 

Whether your organization operates with multiple departmental plans or a single, unified annual operating plan, ensure each department head outlines key projects and action plans aimed at achieving their annual targets.

When setting your KPIs to track progress, don’t forget to focus on both leading and lagging indicators .

Cascade’s free operational plan template gives you a clear and simple plan structure that you can use to easily collaborate with other department heads or team leaders. It’s pre-filled with examples and fully customizable to fit your needs.

📚 Are you an organization with multiple business units, each requiring its own AOP aligned with a central strategic plan? Explore our case study to see how a customer uses Cascade for strategic alignment between AOPs of different business units and the organization’s overarching 3-year strategy.

Step 5: Review and approve

Ensure your AOP is well-rounded and considers the needs of different stakeholders . Have different departments review the plan to promote alignment and collaboration. This step also ensures everyone is on the same page from the start. 

After an internal review, secure approval from decision-makers, such as board members or executives, to gain buy-in at the highest levels. This buy-in makes it easier to implement your annual plan.

Step 6: Execute and monitor 

Everyone involved must start working on their assigned initiatives. Ensure every team member knows that their duties are time-bound and remains accountable for completing them.

To make sure you're staying on course, it's vital to keep an eye on the progress through the KPIs established earlier. Monitoring progress against objectives ensures that you stay on track throughout the year. 

💡 Tip: Set a regular schedule to review your annual operating plan. Depending on your needs, this could be weekly, monthly, quarterly, or semi-annually. 

Cascade can help with monitoring through its user-friendly dashboards and comprehensive reporting capabilities. 

Dashboards use chart widgets and graphs populated with real-time data so you can understand what’s happening in different time frames. 

Cascade’s reports empower decision-making by providing the context of the data presented.

Annual Operating Plan Example With A Free Template

Cascade’s Operational Strategy Template is suitable for organizations of all sizes, and you can use it for free. 

This template comes with pre-filled fields to guide you on where to enter your data so you can quickly set it up within minutes. You can choose your focus areas and write down the objectives. Then you can set the KPIs that will be measured and tracked as you progress with the plan. 

Once set, designate responsible team members and use Cascade's real-time dashboard for monitoring.

It’s a tried and tested template that aligns your employees with the business strategy and provides clear guidelines on how to execute it.

Execute Your Annual Operating Plan With Cascade 🚀

You can’t simply make an AOP without tying it to the larger picture. Executing a plan without clear alignment to the overall business strategy is futile. Yes, your company is busy, but you’re getting nowhere. 

With Cascade , you can centralize your strategy. By doing so, you can easily see how the execution aligns with your business strategy.  

With its dynamic dashboards, real-time reports, and various other features, you can create seamless plans, execute them, and not worry that they’re being completed in silos. Every action your teams take, and every small goal they achieve, is connected to a bigger strategy that helps achieve your organization’s long-term vision. 

Want to give it a try? Sign up today for free or book a 1:1 product tour with one of Cascade’s strategy experts. 

Annual Operating Plan FAQ

What should be included in an annual operating plan .

A well-structured annual operating plan should include:

• A clear set of strategic objectives
• Detailed action plans
• Performance metrics
• Resource allocation
• Risk mitigation plans

What is the difference between annual operating plans and budgets?

Annual operating plans and budgets are both financial planning tools used to manage performance. An AOP is a comprehensive blueprint that includes your overarching goals and the details to execute them, including the financial and human resources needed.

On the other hand, CFOs use budgets to focus mostly on the financial aspect of the organization’s plan and are highly numbers-driven. They provide detailed projections of revenue, expenses, and cash flows but lack the strategic depth of AOPs. Unlike AOPs, they’re also less flexible once approved and are primarily intended for financial and accounting teams. 

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Annual Planning: Why Is It So Important?

On a personal level, planning is an essential aspect of everyday life. And when it comes to companies, whether small or large, planning is equally essential. Annual planning is one of the most important activities that companies do every year because it provides an opportunity to set the overall direction of a company by discussing goals, metrics, budget, and performance.  

What Is Annual Planning?

Annual planning can be defined as the process of defining a business roadmap for your company and your employees. It can also be seen as an organization's financial plan for the year, and it is comprised of a series of milestones that help to carry the plan forward through several tasks that lead to a broader vision of where the company aims to be by the end of the year. 

Companies must hold planning sessions to review last year’s performance, as well as specific goals and achievements. These sessions will help to analyze expectations and results from the previous year in order to create an annual plan that gives everyone in the organization a sense of where they’re headed, and where they want to be twelve months from now. 

Is Annual Planning the Same as Strategic Planning?

Strategic planning is about establishing goals to sustain the company’s vision. Is about creating a strategy where the end product is a long-term plan that includes identifying goals, as well as mapping out how exactly those goals will be met. The process of strategic planning involves choosing a methodology, assessing resources, and receiving feedback from both external and internal stakeholders. A strategic plan can also be implemented during the course of years, and not necessarily within one business year. 

To put it simply, the strategic plan will identify the framework for a company to advance on its mission. The annual plan can include goals directly related to the strategic plan but it is largely connected to the budgetary approval process for the next business year, and as such, annual planning is usually conducted by leadership or directors. 

Why Is Annual Planning Important?

A well-formulated annual plan is an opportunity to set the overall direction for your company. It can also help to empower the team by providing a sense of direction. Let’s take a look at the most relevant benefits of annual planning:

• Annual planning generates efficiency because it circles around performance.
• It helps to define what is critical to achieving over the year.
• It delivers clear leadership to employees and it helps to keep the workforce united.
• Employees gain a clear sense of direction in their departments and roles. 
• An annual plan can rally an entire organization around goals. It can also provide a stronger connection to the company’s strategic plan.

What Is Included in an Annual Plan?

Generally, an annual plan will contain the following elements:

Goals. Before you can look forward it’s important to look back. For this, it’s a great idea to review your SMART (Specific, Measurable, Attainable, Relevant, Time-Bound) goals, they can help to clarify ideas, focus efforts and ensure resources are being used in the most productive manner. Remember, your annual plan should also hold a strong connection to your company’s strategic goals.

Budget. Financial elements are key to annual planning, so it’s important to take into consideration projections for the upcoming 12 months. These projections will help you plan resources, cash flow, and decide the best course of action and timing for individual projects. 

Expectations, responsibilities, and clear OKRs. Goals need to be clearly specified, indicating which teams, individuals, or departments will be responsible for carrying out tasks. Expectations must be exceptionally clear for collaborators. Also, working with well-defined OKRs can help to keep teams on track because they help to provide visibility into what other teams and individuals are working on. It’s all about maintaining the workforce motivated and crystal clear regarding who’s in charge of what. 

Timelines. When measuring performance it’s important to understand how successful your company has been in terms of achieving goals within their deadlines. Split your goals into tasks and set deadlines. 

Contingency plans. A well-formulated annual plan will also consider emergencies. It’s always a good idea to think of alternate scenarios, such as what would happen if suddenly your cash flow would become compromised? 

Values and mission. It’s also instrumental to keep your company’s aspirational future vision in mind when working on your annual plan. 

Annual Planning: 

When it comes to managing annual plans and strategic plans , you need to be on top of everything. A strong annual planning strategy can help to build a company’s broader strategic vision and to set the overall direction of a business roadmap for the next 12 months. However, as you may already know, this process entails keeping track of critical information. This can be an exhausting and difficult process, but it gets easier when you use the right tools. 

Project management software can be a powerful ally for project managers. Instagantt , for instance, allows you to keep information centralized. You can quickly store, update, share, access, and review important company-related information , all in one single place. With gantt charts , you can keep track of your budget and streamline your business plan, making sure you and your team stay on track. Moreover, you can use the same tool to keep track of your strategic and your annual plans, which will help to increase transparency across the organization, keeping track of the key results you’re trying to achieve, and visualizing progress and performance at all times. With the right tools and processes, you can create and execute a strong annual strategy.

Template: Annual Planning Example

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Powerful business plan templates

Plan for the future, no matter what your business plans are or the size of your business with these designs and templates. whether it's just one big project or an entire organization's worth of dreams, these templates will keep you and your company on track from ideation to completion..

Put your ideas to work with simple templates for every business plan

Every successful business took a lot of planning to get there, and these templates will be cornerstones of your future success. Whether you're looking to attract new business, pitch your services or reimagine your company, with these simple, customizable templates at your fingertips you can turn complexity into something tangible. These templates can become marketing assets or simply remain internal touchpoints for your team. And as your dreams change, you'll always have this template to refer to – it's easy to change what exists on paper. If you're a small business, focusing on your niche can help you dominate in your field, and you can forge a plan to figure out exactly what that niche might be and how to target your ideal customer . When it's time to share your vision with stakeholders, craft a presentation that outlines your plan succinctly and with style. Let these templates from Microsoft Designer be your partner in business strategy for years to come.

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Home » Employer Resources » Startup Center » The Ultimate Guide to Creating Investor-Friendly Business Plans [Format Guide]

The Ultimate Guide to Creating Investor-Friendly Business Plans [Format Guide]

Are you an aspiring entrepreneur wondering what a business plan should look like and how to create one? A well-structured business plan is an essential part of any successful venture. But it may seem challenging to give shape to your business idea and not miss out on any important details.

In this blog, we’ll discuss the key elements of a business plan and provide you with a useful business plan format with sample statements to help you on your way.

Table of Contents

Business Plan: An Overview

A business plan is a detailed document that outlines the objectives, strategies, and tactics of a business. It is typically used to secure investments, financing, and other forms of support from stakeholders. The document should include information such as descriptions of the company, its products and services, its customers, its marketing and financial plans, and its operational plans. Having a business plan is crucial for any business. It can ensure that everything is taken into account and that the business is well-prepared to succeed.

Business Plan Format with Sample Templates

Writing a business proposal can be tricky. Whether it is a small or large business, there are a few key elements you should consider when discussing a business strategy to enhance your business plan. This section provides sample templates that can help you streamline your unique business proposal.

1. Give an Executive Summary

An executive summary in a business plan is a brief overview that outlines the major points of the plan. It should be concise and engaging so that it captures the attention of potential investors or lenders. The summary should be in paragraphs with comprehensible headings and points. To write an executive summary, you should briefly answer the following questions (not necessarily all):

• What is the mission of your business or your company/organization?
• How did the idea of business come up?
• Who has the highest leadership?
• Which industry does the business belong to?
• What is going to be the employee base?
• What are the business’s products and services?
• What are the competitive advantages of the business in the already existing market/industry?
• What marketing strategy will be used?
• How many different operational teams are going to form?
• What is going to be the location?
• Who are the stakeholders?
• How will you fund the business?
• How much money is required to set up the business?
• What are its future financial targets?

Here is an example of an executive summary of an organic food product start-up.

“[Company Name] is a start-up business venture that specializes in the production and distribution of organic health food products. It was founded by two entrepreneurs who have 10 years of combined experience in the health food industry. The company is located in a major metropolitan area.

Our goal is to become the top provider of organic health food products in our market. We plan to do this by providing high-quality products and services and excellent customer service. We have identified some key competitive advantages that will help us succeed, including our experienced management team, our strong network of suppliers, and our commitment to innovation.”

2. Talk About the Business’s Key Products and Services

In this section, talk about the key products and services that your business plans to offer, along with their value proposition. Here, the term value proposition means why a person will care to buy your product or service. It also uncovers unexplored and potentially marketable opportunities.

Here’s a business proposal example that includes details of key products and services for an organic healthy food product start-up:

“Our business offers organic foods that are healthier and more sustainable. Our value proposition is that our customers can enjoy healthy, farm-fresh foods while feeling good about contributing to the environment. We strive to offer a wide range of products, from organic produce to organic sauces, fruit bars, and snacks.

As dietary habits have evolved, there are a significant number of people who prefer or require gluten-free products due to their health issues. We strive to produce gluten-tolerance-tested, authentic, and trustworthy gluten-free products with delivery and online ordering to make purchasing easier for our customers.”

3. Insight on Competitive Market Analysis

Business planners need to possess comprehensive knowledge of their target industry and market. Having great business analysis skills can help a business planner get a clear understanding of how to compete effectively and gain a foothold in the market. This section should cover the following information:

• Market Size: Describe the size of the industry, the expected growth rate, and the potential earnings it offers.
• Target Audience: Who are the perfect customers for your business? Include details like their age, where they live, and their preferences.
• Competitors: Write about your key competitors’ strengths and weaknesses and how you plan to counter them.
• USP (Unique Selling Point): Cite what distinguishes your product or service from the competition. What’s your marketing plan to set yourself apart from the competition?
• Price and Profit: Share what pricing scheme your business will follow and the estimated profit margin.
• Rules and Regulations: Specify any special rules or laws you must follow in your industry.

An example to describe the market analysis in the business proposal template for an organic healthy food product’s start-up will be like this:

“The health food industry in India is rapidly expanding, with a compound annual growth rate (CAGR) of 20% and an expected CAGR of 16% by 2026, equivalent to $30 billion. This growth is attributed to the increasing number of health-conscious individuals, who are expected to grow from 100 million to 176 million by 2026. Healthy snacking categories like cookies, fruit snacks, snack bars, and trail mixes are expected to experience significant growth.

Our products and services stand out due to our commitment to quality and reasonable prices. Our experienced management team, strong supplier network, and innovation are key competitive advantages. We aim to market our products to health-conscious consumers seeking organic alternatives to conventional foods, aiming to become the leading organic food supplier.”

4. Target Audience Selection

A business’s success is incomplete without fostering and developing its customer base. “You must know your customers and the customers must know you” – this should be the motto for your business.

After in-depth research on target customers, you can form the right marketing and sales strategies. The best way to identify customers is to understand their problems and needs. Simply put, your business’s products and services must solve their problems and fulfill their wants. Here’s an example to share about the target audience selection for an organic, healthy food product start-up:

“Our target audience is adults aged 18-40 who are health-conscious and interested in organic options. We will focus our marketing and sales efforts on this demographic, as they are likely to be more open to trying new products and more likely to embrace organic alternatives. Our goal is to become the leading organic food supplier for this demographic.”

5. Structure of the Company’s Management and Team

This section of the business plan template will discuss the teams and departments that will make the business run. Briefly outline the roles and responsibilities of a position and create a job posting to hire the right employee.

Here is one way to briefly mention your company’s management team structure:

We will have a CEO, COO, CFO, and other executive positions to manage the company’s operations. Several teams will be involved in running the business, including a customer service team, administration, human resources, sales and marketing team, finance team, operations team, and product development team. Each team would have its own set of roles and responsibilities.”

6. Marketing and Promotional Strategies

This is one of the most crucial parts of your business plan. The right marketing and promotional plans help spread the word about your product or service, increase overall brand awareness, capture market share, and thereby, increase the customer base, sales, and profits. Here is a brief overview of marketing and promotional strategies in your business proposal:

“Our marketing strategy is centered around a multi-faceted approach to engaging with our customers. We will create interesting and relevant content for social media platforms, optimize our website for search engines, collaborate with influencers, run targeted online ads, and send out email campaigns.

Our promotional efforts will include limited-time discounts, loyalty programs, and exclusive events to connect with our customers on a personal level. We plan to expand our outreach through partnerships with complementary businesses and attending industry events. To measure the effectiveness of our strategies, we will leverage analytics tools and gather customer feedback to make necessary adjustments. Our ultimate aim is to build trust and credibility in our brand.”

7. Details of Developing Sales Funnel

The growth strategy of a business depends heavily on its sales funnel strategy. This is because successful sales will lead to revenue growth and business expansion. An example to mention about the sales funnel in the business plan model is:

“Our sales funnel is designed to help our business generate more leads and close more sales. We will start by optimizing our online presence to increase visibility and attract potential customers. From there, we will create content and campaigns to nurture leads and build valuable customer relationships. We will then use analytics and other data-driven tactics to identify qualified prospects and target them with effective messaging and emails. Finally, we plan to use automated tools to manage the sales process from start to finish.”

8. Lay Out Your Financial Plan and Budget

This point of your business proposal will include details of the budget, balance sheet, revenue generation, cost reduction strategies, and other expenses. It should talk about the costs required to cover all business operations, management, and estimated future revenue projections. Here is a template of a business budget.

9. Add Appendix to Provide Additional Details

The appendix to a business proposal template includes extra documents that give more information about the proposal. You can put in any part that needs evidence, facts, or reports. Normally, the appendix can have these documents:

• Market research with charts and data from other sources.
• Licenses, contracts, certificates, or patent papers.
• Maps and plans for expanding the business facility.
• Contact details for team members, board members, and current investors.
• Reports and statements from quality-check experts.
• Financial documents like the balance sheet and the company’s account statements.

Every business needs a one-of-a-kind business plan format. It should contain all the necessary information and documents to give the reader, investors, and stakeholders a comprehensive overview of the proposed business. By taking the time to structure and create a detailed business plan, entrepreneurs, business planners, and analysts can create a clear and concise guide to help them achieve their goals. Executing a successful business plan, therefore, requires skilled professionals. If you are interested in the field of business management and helping businesses make valuable decisions, then look for work from home accounts jobs to contribute.

Have you ever drafted a business plan? Tell us in the comments below!

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Sandipta Banerjee has completed her Master's in English Literature and Language. She has been working in the field of editing and writing for the past five years. She started her writing journey at a very young age with her poems which have now evolved into a poetry blog. She was working as Editorial Head in a US-based publishing house before joining Internshala.

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8+ SAMPLE Annual Business Plans in PDF | MS Word

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Annual Plan

Any business, whether it’s a small business or a large one, must develop a plan for themselves. This is so they may consistently develop and run operations smoothly. Whether it’s a project plan ,  simple business plans  or a development plan , are needed for a company to exist. Failed business plans may cost a company its resources. This is why a company needs to come up with a good and effective plan.

Every year, a company evaluates its performance in the previous years. The highs and the lows are closely studied to determine what went right and where they went wrong. To do so, a company develops an annual plan.

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What Is an Annual Plan?

An annual plan is a company’s yearly financial plan in which the company’s annual budget plan, marketing plan , and other business-related matters are concerned. A company’s business plan is always crucial, as there’s always a possibility of it backfiring. This is why annual plans must be carefully deliberated before it is implemented.

What Is the Purpose of an Annual Plan?

An annual plan is essential for every organization. You might be wondering, why not make monthly plans? Or even weekly plans instead? For starters, weekly plans and monthly plans are only used to resolve relatively minor issues at a time. These minor issues are usually reflected from lapses and unforeseen circumstances that have not been properly assessed in the annual plan.

With an annual plan, overall strengths and weaknesses from the previous year are taken into consideration. Meetings are conducted to discuss how things can be handled differently in the succeeding year to avoid the same mistakes from happening. This will make it easier for a company to come up with appropriate solutions and marketing strategies .

How to Prepare an Annual Plan

To prepare an annual plan, the company must consider the progress made over the past year. This could be based on sales reports , market status, and employee performance. You need to think of topics, issues, and suggestions that can be examined and addressed in the annual plan.

They need to consider what they did wrong and do what they can do to make it right. You have to be practical with your annual plan, decisions and proposal format should reflect the company’s capacity and resources.

Steps to Build Your Annual Plan

Here are a few steps you can use yo make the best annual plan you need of any kind:

• See where you are now:  This is your current status. Are you happy with how things turned out? Did everything go as planned?
• Determine where you want to go:  Think about your vision for the company. This could be short-term or long-term goals. With this, you’ll be able to determine the objectives that you must attain over the span of time.
• Think of how you could get there:  This concerns the proposals and strategies needed to achieve your goals. Focus on what you could do to take it to the next level. You need to make your company evolve through innovative ideas. You may not attain everything in a year, but it’s a good start.

General FAQ’s

1. define an annual plan..

An annual plan is an organization’s financial plan for a whole year. The annual plan is an operating budget which means that it does not include restricted grants. With the help of this plan, you can make the best budget for the year for your entity.

2. What is the purpose of an Annual Plan?

The purpose of an annual plan is to provide complete directions so that each and every function can develop objectives and strategies for an organization. These will align all your market resources to support in reaching the entity’s goals and objectives. It helps make a helpful annual plan for 12 months.

3. What is included in an Annual Plan?

The following details can be included in an annual plan for your entity:

• Details of the objectives and goals to be achieved
• Measurements and action steps to reach the goals
• Responsibilities and roles of every team in the organization
• Dates ad budgets
• Long and short term goals
• Competitors and target market, etc.

4. How long is an Annual Plan?

An annual plan is basically 12 months or a year long. It has all the necessary details in it which make it easier for the entity to reach its goals and objectives effectively. it guarantees the customer will be around at least for the next 12 months or more if need be.

5. How do you format an Annual Plan?

Formating an annual plan:

• Review and confirm your annual goals
• Brainstorm all ideas you can get from employees
• Present the ideas
• Prioritize the best and most-needed action steps
• Select and schedule when these actions will take place
• Choose leaders for each team
• Review, brief and approve the most important things to be done.

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Comprehensive 2024 Annual Planning

Guide for your 2024 annual plan.

2024 Annual Planning: Create a Strategic 2024 Annual Plan

Table of contents, appoint a skilled annual planning facilitator, prep work: getting ready for your annual planning session, review prep work and learnings from the year, work on long term strategy and 3-5 year strategic plan, determine common vision of what a great year looks like [destination postcard], create annual and quarterly action plans, do departmental planning; then communicate to entire firm [video], customize your annual planning agenda, annual planning process checklist, appoint annual planning professional facilitator.

If you are the CEO, it is almost impossible to participate and facilitate your planning session simultaneously. Your team is already used to deferring to your opinions. Couple the power of being the CEO with the power of being the facilitator, and your opportunity to listen, learn, and get the best ideas from your team falls dramatically. Instead, pass the annual planning facilitation duties to someone else and immerse yourself in the meeting. Your ideas and contribution to the discussions will provide a much greater return than if you had facilitated the meeting.

When designating an annual planning facilitator, consider this: when executive team members facilitate your yearly strategic planning meetings, it can cause participants to withhold agendas or thoughts, to resist challenging others, not to be challenged in their thinking, and not to be fully engaged. However, using an outside facilitator can change this dynamic. It allows all of the best ideas to be heard. It encourages executive team members, especially the CEO, to fully participate in designing the best plan, fostering a more challenging and engaging environment. As a company with more than 50 employees and $10mm in revenue, your time is valuable. We suggest designating an expert facilitator or hiring an outside facilitator to bring out the best in your team and you, and to get the best return on investment from your strategic planning session. This article outlines the complicated annual planning process. Rest assured, we are here to support you if needed, respecting and appreciating the demands of your time and expertise.

Download a Strategic Planning Facilitator Checklist [PDF]

Roles and Responsibilities of a Great Facilitator

Why Top CEOs Choose Rhythm Systems Facilitators

"Having a Rhythm Facilitator allowed me to be an active participant in our Annual Planning session. The decisions we made at that meeting helped us grow 140%, 3 years in a row.”

Dr. Steve Vogt, CEO, BioPlus Pharmacy 

Need an Expert Facilitator? Contact Us

2024 Annual Planning Prep Work:

Annual plan meaning.

An annual plan serves as a company's roadmap for the upcoming year, outlining the strategic goals, key initiatives, and priorities guiding its journey toward success. It acts as a compass, providing direction and focus, enabling the organization to align its resources and efforts toward achieving its overarching vision. By setting clear, actionable objectives, an annual plan helps to ensure that every department and team member is working in concert towards common goals, fostering a sense of unity and purpose across the company. Moreover, it is a critical tool for measuring progress, allowing leaders to track milestones, adjust strategies as needed, and stay on course to fulfill their ambitions. The annual plan embodies the company's aspirations for the year ahead, laying the foundation for growth, innovation, and achievement.

Here’s what the CEO should do to prepare well for the Annual Strategic Planning session:

• This sounds elementary, but one of the main mistakes CEOs make is that they need to schedule annual planning dates with the team and communicate their importance. As a CEO, you must own this so others see how critical their full participation is to the company’s success.
• Appoint a skilled facilitator. Great facilitators have critical skills to help set the agenda, manage difficult discussions, and drive the team to make decisions that result in a clear plan everyone supports. Their expertise comes from practice leading dozens of sessions. You may have someone on your team with these skills and experience, or you may decide to hire an outside facilitator.
• Please be prepared to discuss the high-level strategy and specific goals you want the company to accomplish to help set the tone for the meeting.
• Make sure that you have all of the right members of your leadership team in the room with you to get a complete view of the departments in your organization.
• Depending on the size of the organization, keep the number of people in the room to about 12.

Here’s what the effective Annual Planning Facilitator should do to prepare for the planning session:

• Set up a meeting with the CEO to determine a strategy session meeting agenda.
• Manage the logistics for the session - when, where, materials needed, food for lunch and dinner plans, etc.
• Create, distribute, collect, and analyze the proper prep work.
• Modify the agenda based on prep work feedback. Confirm the timing for all discussions.
• Develop the PowerPoint slide deck for the session and any other tools or handouts needed.
• Communicate key questions that must be discussed or decided upon to all participants so they have time to consider them before the meeting.

Here’s what each participant should do to prepare for the annual plan review:

• Share the agenda with each executive team member and ask them to read it and provide feedback on any other meaningful discussions that need to occur.
• Ask departmental/other leaders to come prepared with relevant information to help the team make informed decisions.
• Complete prep work sent out by the facilitator, such as a Start, Stop, Keep exercise before the session.
• Come to the strategic planning session with all the data required to support strategic annual planning discussions.
• Are any course corrections needed to get us back on track for our 3-5 year strategic plan?

“In the 16 years of AvidXchange, we have never missed a quarterly planning session. Many of our greatest inflection points of growth in the company came from those sessions. And our Rhythm Facilitators were critical in making that happen"

Michael praeger, ceo, avidxchange, 2024 annual planning process step 1:, how to write an annual plan.

Before planning for the future, you must understand where you are. It is an integral step in the annual business planning process, as you need a clear understanding of where you are presently and where you want to be at the end of the yearly plan. Everyone on the team will come into the planning session with their unique perception of how things are going and some ideas for improving and growing the business. It’s great to start the meeting by getting everyone talking and sharing their thoughts. Allowing time for introspection at the beginning of the planning session will immediately engage everyone on the team. It will establish some context for the strategic and future-directed conversations you will soon have. Here are a few ideas to get you started.

Learning from the previous year - Start the session by revisiting the plan you established for the year that is about to end (Targets, Theme, Key Initiatives), and then discuss the actual results. Ask the team: What did we accomplish this year? What improvements to the business did we make? What were our victories and bright spots? What did not go as planned? Most importantly, what lessons did we learn this year? This exercise aims to reflect on the past year, gather insight into what worked well and what didn’t, what you learned during the year, and what is different today than it was a year ago. Much work has been done over the past year, and it’s important to celebrate the progress you have made. All that you have accomplished and improved this year creates a foundation for planning that is stronger, wiser, and steps ahead of the foundation you were planning from last year.

Start, Stop, Continue Exercise - The Start, Stop, Continue exercise is excellent to send out ahead of time as homework for the team. This gets everyone thinking about the future of the business before they come into the planning session. It’s a great way to bridge the gap and ease people out of their day-to-day focus and into a planning mindset. In this exercise, participants are asked to share their top three answers in the following areas:

Start: New things to consider doing. What do you think you or your group should start doing that is not being done today? What things can we do to increase our growth rate?

Stop: What is ineffective that we must stop doing and save energy for other opportunities? These are items that can help us "dehassle" the business.

Keep: What is working well that we should continue? Look for bright spots - items working very well that we might want to replicate across the company.

Opportunities and Threats - The 'Opportunities and Threats' discussion is a key part of the planning process. Unlike the internal focus of the Strengths and Weaknesses part of the SWOT analysis, this exercise encourages the team to consider external conditions, forces, or trends that could impact the business. This exercise prompts a more comprehensive and strategic planning approach by asking the team to assess the impact on the 3-5-year plan. What Opportunities are you aware of that could help you achieve your 3-5 year goals? What Threats are you aware of that could prevent you from achieving your 3-5 year goals? The team can brainstorm a list of potential Opportunities and Threats, then discuss, debate and agree on the top 3 Opportunities and the top 3 Threats.

Preparing For Your Session Is Very Time Consuming. Expert Facilitators Make It Easier.

2024 annual plan process step 2:, work on strategic annual plan to connect to 3-5 year strategic goals.

Annual Planning should include a good balance of strategic thinking and execution planning. This is your opportunity to prepare your team for a successful year and connect strategy to execution with your strategic initiatives. To plan for a successful year, you must have a good idea of the strategic direction you are moving in. Where do you want to be in the next 3-5 years and beyond? What are your strategic goals? What are the strategic priorities to help you achieve them? Because strategic thinking is a process, not an event, you must think about how to use this time most effectively. If you have a fully developed long-term strategy, you could use this time to review it with the team. If you have some pieces developed and some that need more work, you could spend this time focusing on just one strategic topic. Here are a few strategic decisions you should be working on. Consider where you are with each of these and customize this portion of the annual planning agenda to work on the areas most important to you at this time.

CORE VALUES

These are the handful of rules that will remain constant over time that you believe are key to the long-term success of your business. They already exist and are evident in the behavior of individuals representing the organization's very heart. Discovering, understanding, and encouraging these core values will strengthen your company’s culture and will provide a good foundation for every individual in the company to make decisions on a daily basis.

CORE PURPOSE

Understanding and reinforcing your Core Purpose will provide inspiration for people on a daily basis. People need to be inspired. They need to understand how their daily work connects to a greater good being served through the company's success. Your Core Purpose will answer the question, “Why?”

Your Big Hairy Audacious Goal (BHAG) creates a vision of future success for your company. It should paint a picture of what things might look like 10-20 years in the future when you have achieved this wildly ambitious, measurable goal. Your BHAG will also inspire your people and create a framework for strategic decision-making.

BRAND PROMISE

Working on your Brand Promise will require you to identify and understand your core customer, your company’s core capabilities, and your unique position in the market. Clarity around what is meaningful to your customers and what you promise to deliver will provide direction on internal improvement initiatives, marketing messages, and sales and delivery processes.

3-5 YEAR STRATEGIC PLAN

These are specific; revenue-generating growth strategies, you will execute over the next 3-5 years that have the potential to 3X your business. You could use this time in your Annual Planning session to brainstorm and select new Winning Moves or evaluate progress and next steps on existing Winning Moves.

2024 Annual Planning Process Step 3:

How to prepare an annual plan with a vision.

Before you can start working on the specific details of your Annual Plan, you need to align the team around a common vision of what a great year looks like. To do this, we recommend a team exercise called the Destination Postcard. This idea comes from Chip Heath and Dan Heath’s book Switch (ch. 4, Point to the Destination). A Destination Postcard is a vivid picture of the near-term future that shows what could be possible. It asks the team to consider how the company will be different a year from now, how life at work may change, and how you will celebrate your success.

Make sure your annual plan is successful. This will help you create your four-quarter flyover and envision your path to success.

Destination Postcard Exercise

Ask each person to take a few minutes to quietly think about and write a descriptive narrative of what a successful year looks like to them. They can write a paragraph or use bullet points, whatever is most comfortable for them. It should not just be a list of KPIs or financial targets. Those may be included, but what you’re looking for should be more descriptive than that. Ask them to consider how the company will be different a year from now, how life at work may change, and how you will celebrate your success. Manufacturing companies can get a head start on their Key Performance Indicators by reviewing our 25 KPI Examples For Manufacturing Companies .

Ask each person to consider what three things must have happened during the year that made it possible to achieve this vision. They should write down the three specific objectives that were accomplished.

Once everyone is finished writing, go around the room and ask each person to share their description of a great year and the Top 3 things the company accomplished. Capture the Top 3 things each person mentions on a flip chart. You can use checkmarks if more than one person mentions the same thing.

Leave the flip chart notes on the wall and refer back to them as you work to develop the details of your Annual Plan.

2024 Annual Planning Process Step 4:

Annual process planning: create quarterly action plans.

Now that you, as a key player in our team, have created the proper context, confirmed our strategy, and envisioned a successful year together, we are ready to discuss the details of our execution plan for the next twelve months. We must consider and agree upon four components of the Annual Plan.

Targets - As key players in our team, it's your crucial role to set the measurable results we want to achieve this year. These targets, including Revenue and Profit targets, are not just numbers. They are the Milestones that will guide our Journey and measure our Success. Choose a handful of targets that are strategic and meaningful to our company.

Theme/Main Focus - Your input is vital in agreeing on the main thing the company must focus on this year. What barrier do you need to break? What Winning Move must pay off this year? Maybe this is the year to focus on your company’s culture. It could be anything. The idea is to identify one overarching theme for the year that you are confident will drive your business forward. Creating this kind of “rally cry” will help people remember those things they know are most important throughout the year.

3-5 Annual Initiatives - Now comes the hard work of prioritizing and choosing 3-5 specific Key Initiatives you will commit to completing this year. The right Key Initiatives will support your ability to achieve the Main Focus, hit your Targets, move forward on your Winning Moves, and execute your core business excellently. To identify your Key Initiatives, refer back to your work in the first three steps: Lessons from the Prior Year, Start, Stop, Keep ideas, Opportunities and Threats, Strategic Decisions, Winning Moves, and the Destination Postcard. Based on all this, what are your Top 3-5 Key Initiatives for the company this year? In addition to identifying these Key Initiatives, you must assign an owner for each, determine the Red-Yellow-Green success criteria, and map out the sequence and timing of significant milestones for each initiative.

Quarterly 90-day action plan - Now you are ready to get to work. As the last section of your Annual Planning Session or in a separate meeting, take the next step in your Plan Rhythm and create the execution plan for the first quarter. Like the Annual Plan, the Quarterly Plan should include a Main Thing, 3-5 Top Priorities that can be achieved in 90 days, owners, and Red-Yellow-Green success criteria for each Priority.

Year Plan 2024: Annual Planning Process Step 5

Annual business planning: departmental planning and communication.

Having a great Annual Plan created by the executive team at the company level is essential, but the truth is that most of the actual work will not be done at the executive level. Most of the work will be done at the departmental level, and even then, only when it’s broken down into bite-size quarterly pieces for your cross-functional teams to execute. Once the company plan is finished, each department leader should meet with their team to share the vision for the year, explain how the plan supports the long-term strategy, and discuss the department’s role in supporting it.

The leader should also share the 3-5 Priorities the executive team has identified for the first quarter of the new year. Based on that, the department should consider their year and determine the 3-5 Priorities they will pursue in the first 90 days. Each department’s Quarterly Priorities will also need an owner and Red-Yellow-Green success criteria. Taking it one step further, each team member should also identify the 3-5 Individual Priorities they commit to that will support the business unit's plan.

Once the departmental plans are finished, many companies will schedule a kick-off meeting (or series of meetings) for the whole company. This is a great way to bring people together, create positive energy, and make sure the company plan is communicated in an inspiring way to everyone. Remember, your plan is only as good as your ability to communicate it to those who will carry it out effectively. The best time to break down departmental silos is in the planning process, have your discussions surrounding shared resources in the planning stages.

Why Top CEOs Choose Rhythm Facilitators

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Create an Annual Planning Agenda for Free  PDF]

This is the standard Annual Planning Agenda Template however, top CEOs customize their agenda. Download the agenda based on decades of professional annual planning sessions and and annual plans now. 

Yearly Plans are The CEO's Job To Get Right

If you find yourself short on time and resources to execute Annual Planning effectively, consider reaching out to us. Our Rhythm Systems Facilitators can provide the expertise and support you need to streamline your planning process and achieve your business goals.

Your Annual Planning session is a crucial opportunity to align your team and organization around a select few priorities. These priorities, once accomplished, will propel your company towards its 3-5 year targets and, ultimately, the 10-20 year visionary BHAG (Big Hairy Audacious Goal). Your Annual Plan will not only inspire your team but also form the bedrock of your Quarterly Plans.

You and your executive team should take five steps to ensure that your Winning Annual Plan effectively connects your strategy to execution. There are many ways to structure an agenda that includes these steps, and the details of that agenda will vary based on where you are as a company, how much of your strategy has already been developed, and the specific questions and opportunities you are faced with. The annual planning definition Rhythm Systems uses includes a clear plan to hit your targets.

Download our free 3 Steps to Ensure Your Meeting Will Be a Success to ensure you are ready to lead an annual planning meeting or drop us a line to see if we can help. Rhythm Systems has 20  years of expertise in creating winning annual plans for mid-market growth companies and helps keep your team on track with our patented strategy execution software .

Learn how Rhythm Systems can help you create a winning annual plan with our yearly profession al planning facilitation services.

Annual Planning Facilitator Checklist

The Roles and Responsibilities of a Great Facilitator

Our Annual Planning Facilitator checklist will provide:

14 critical items needed to prepare for your planning session

6 skills all great Facilitators must have to run the session

Thank you for downloading our guide

We appreciate you taking time to read the guide. If you have any questions, please don’t hesitate to contact us at [email protected] . Happy Planning!

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Free Annual Planning Agenda Template

Annual Planning Agenda – Best Practices Based on 13+ Years of Experience

This annual planning agenda template will provide you:

5 steps top Facilitators use to run effective planning sessions