example of business overview in business plan

You’ll also learn the financial benefits investors can reap from putting money into your venture rather than trying to sell them on how great your product or service is.

This business plan guide focuses less on the individual parts of a business plan, and more on the overarching goal of writing one. For that reason, it’s one of my favorites to supplement any template you choose to use. Harvard Business Review’s guide is instrumental for both new and seasoned business owners.

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• Small Business Grants
• Crowdfunding Sites
• How to Get a Business Loan
• Small Business Insurance Providers
• Best Factoring Companies
• Types of Bank Accounts
• Best Banks for Small Business
• Best Business Bank Accounts
• Open a Business Bank Account
• Bank Accounts for Small Businesses
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• Business Loan Eligibility Criteria
• Small-Business Bookkeeping Basics
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• Calculate Net Income
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• Calculate Payroll Tax

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

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

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

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

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

Let’s get started.

What Do You Need A Business Plan For?

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

1. Secure Funds

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

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

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

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

2. Monitor Business Growth

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

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

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

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

3. Measure Business Success

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

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

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

4. Document Your Marketing Strategies

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

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

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

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

How to Write a Business Plan Step-by-Step

1. create your executive summary.

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

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

A good executive summary should do the following:

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

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

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

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

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

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

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

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

2. Add Your Company Overview

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

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

Your company overview should contain the following:

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

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

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

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

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

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

• Mission Statement

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

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

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

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

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

Business Objectives

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

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

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

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

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

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

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

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

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

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

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

Market Analysis

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

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

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

• Market Research

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

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

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

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

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

How to Quantify Your Target Market

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

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

What Does a Good Market Analysis Entail?

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

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

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

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

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

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

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

Competitive Analysis

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

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

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

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

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

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

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

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

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

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

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

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

Direct vs Indirect Competition

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

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

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

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

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

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

Factors that Differentiate Your Business from the Competition

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

1. Cost Leadership

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

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

2. Product Differentiation

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

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

3. Market Segmentation

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

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

4. Define Your Business and Management Structure

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

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

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

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

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

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

Management Team

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

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

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

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

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

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

Key Questions to Answer When Structuring Your Management Team

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

Additional Tips for Writing the Management Structure Section

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

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

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

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

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

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

Organizational Chart

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

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

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

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

5. Describe Your Product and Service Offering

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1. Avoid Technical Descriptions and Industry Buzzwords

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

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

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

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

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

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

3. Long or Short Products or Services Section

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

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

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

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

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

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

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

4. Describe Your Relationships with Vendors or Suppliers

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

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

5. Your Primary Goal Is to Convince Your Readers

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

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

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

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

Key Questions to Answer When Writing your Products and Services Section

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

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

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

6. Show and Explain Your Marketing and Sales Plan

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

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

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

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

Outline Your Business’ Unique Selling Proposition (USP)

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

Target Market and Target Audience

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

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

Creating a Smart Marketing and Sales Plan

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

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

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

Your Positioning Statement

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Basic Rules to Follow When Pricing Your Offering

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

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

Pricing Strategy

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

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

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

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

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

Advertising

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

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

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

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

Public Relations

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

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

Content Marketing

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

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

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

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

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

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

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

Social Media

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

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

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

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

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

Strategic Alliances

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

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

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

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

Steps Involved in Creating a Marketing and Sales Plan

1. Focus on Your Target Market

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

2. Evaluate Your Competition

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

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

These questions can help you know your competition.

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

3. Consider Your Brand

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

4. Focus on Benefits

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

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

5. Focus on Differentiation

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

Key Questions to Answer When Writing Your Marketing and Sales Plan

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

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

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

7. Clearly Show Your Funding Request

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

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

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

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

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

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

Funding Request: Debt or Equity?

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

Case for Equity

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

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

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

Case for Debt

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

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

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

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

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

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

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

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

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

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

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

8. Detail Your Financial Plan, Metrics, and Projections

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

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

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

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

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

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

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

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

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

Use Graphs and Charts

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

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

Address the Risk Factors and Show Realistic Financial Projections

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

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

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

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

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

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

1. Sales Forecast

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

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

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

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

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

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

2. Personnel Plan

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

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

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

3. Income Statement

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

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

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

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

4. Cash Flow Statement

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

5. Balance Sheet

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

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

6. Exit Strategy

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

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

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

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

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

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

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

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

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

9. Add an Appendix to Your Business Plan

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

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

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

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

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

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

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

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

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

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

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

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

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

Tips and Strategies for Writing a Convincing Business Plan

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

1. Know Your Audience

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

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

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

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

2. Get Inspiration from People

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

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

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

3. Avoid Being Over Optimistic

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

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

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

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

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

4. Keep it Simple and Short

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

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

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

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

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

5. Make an Outline and Follow Through

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

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

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

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

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

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

6. Ask a Professional to Proofread

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

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

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

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

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

1. hubspot's one-page business plan.

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

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

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

2. Bplan’s Free Business Plan Template

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

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

3. HubSpot's Downloadable Business Plan Template

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

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

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

4. Business Plan by My Own Business Institute

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

The comprehensive template consists of a whopping 15 sections.

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

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

5. Score's Business Plan Template for Startups

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

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

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

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

6. Minimalist Architecture Business Plan Template by Venngage

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

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

7. Small Business Administration Free Business Plan Template

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

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

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

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

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

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

9. PandaDoc’s Free Business Plan Template

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

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

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

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

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

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

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

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

Alternatives to the Traditional Business Plan

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

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

Business Model Canvas (BMC)

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

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

Segments of the Business Model Canvas

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

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

Lean Canvas

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

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

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

Startup Pitch Deck

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

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

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

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

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

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

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

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

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

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

Business Plan FAQ

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

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

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

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

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

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

Exlore Further

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

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Martin luenendonk.

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

This insights and his love for researching SaaS products enables him to provide in-depth, fact-based software reviews to enable software buyers make better decisions.

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• How to Write a Great Business Plan: Overview and Objectives

The third in a comprehensive series to help you craft the perfect business plan for your startup.

This article is part of a series on  how to write a great business plan .

Providing an overview of your business can be tricky, especially when you're still in the planning stages. If you already own an existing business, summarizing your current operation should be relatively easy; it can be a lot harder to explain what you plan to become .

So start by taking a step back.

Think about what products and services you will provide, how you will provide those items, what you need to have in order to provide those items, exactly who will provide those items... and most importantly, whom you will provide those items to.

Consider our bicycle rental business example. It's serves retail customers. It has an online component, but the core of the business is based on face-to-face transactions for bike rentals and support.

So you'll need a physical location, bikes, racks and tools and supporting equipment, and other brick-and-mortar related items. You'll need employees with a very particular set of skills to serve those customers, and you'll need an operating plan to guide your everyday activities.

Sound like a lot? It boils down to:

• What you will provide
• What you need to run your business
• Who will service your customers, and
• Who your customers are

In our example, defining the above is fairly simple. You know what you will provide to meet your customer's needs. You will of course need a certain quantity of bikes to service demand, but you will not need a number of different types of bikes. You need a retail location, furnished to meet the demands of your business. You need semi-skilled employees capable of sizing, customizing, and repairing bikes.

And you know your customers: Cycling enthusiasts.

In other businesses and industries answering the above questions can be more difficult. If you open a restaurant, what you plan to serve will in some ways determine your labor needs, the location you choose, the equipment you need to purchase... and most importantly will help define your customer. Changing any one element may change other elements; if you cannot afford to purchase expensive kitchen equipment, you may need to adapt your menu accordingly. If you hope to attract an upscale clientele, you may need to invest more in purchasing a prime location and creating an appealing ambience.

So where do you start? Focus on the basics first:

• Identify your industry: Retail, wholesale, service, manufacturing, etc. Clearly define your type of business.
• Identify your customer. You cannot market and sell to customers until you know who they are.
• Explain the problem you solve. Successful businesses create customer value by solving problems. In our rental example, one problem is cycling enthusiasts who don't--or can't--travel with bikes. Another problem is casual cyclists who can't--or choose not to--spend significant sums on their own bikes. The rental shop will solve that problem by offering a lower-cost and convenient alternative.
• Show how you will solve that problem. Our rental shop will offer better prices and enhanced services like remote deliveries, off-hours equipment returns, and online reservations.

If you are still stuck, try answering these questions. Some may pertain to you; others may not.

• Who is my average customer? Who am I targeting? (Unless you plan to open a grocery store, you should be unlikely to answer, "Everyone!")
• What problem do I solve for my customers?
• How will I solve that problem?
• Where will I fail to solve a customer problem... and what can I do to overcome that issue? (In our rental example, one problem is a potential lack of convenience; we will overcome that issue by offering online reservations, on-resort deliveries, and drive-up equipment returns.)
• Where will I locate my business?
• What products, services, and equipment do I need to run my business?
• What skills do my employees need, and how many do I need?
• How will I beat my competition?
• How can I differentiate myself from my competition in the eyes of my customers? (You can have a great plan to beat your competition but you also must win the perception battle among your customers. If customers don't feel you are different... then you aren't truly different. Perception is critical.)

Once you work through this list you will probably end up with a lot more detail than is necessary for your business plan. That is not a problem: Start summarizing the main points. For example, your Business Overview and Objectives section could start something like this:

History and Vision

Blue Mountain Cycle Rentals is a new retail venture that will be located at 321 Mountain Drive, directly adjacent to an extremely popular cycling destination. Our initial goal is to become the premier provider for bicycle rentals. We will then leverage our customer base and position in the market to offer new equipment sales as well as comprehensive maintenance and service, custom equipment fittings, and expert trail advice.

• Achieve the largest market share bicycle rentals in the area
• Generate a net income of $235,000 at the end of the second year of operation
• Minimize rental inventory replacement costs by maintaining a 7% attrition rate on existing equipment (industry average is 12%)

Keys to Success

• Provide high quality equipment, sourcing that equipment as inexpensively as possible through existing relationships with equipment manufacturers and other cycling shops
• Use signage to attract visitors traveling to the national forest, highlighting our cost and service advantage
• Create additional customer convenience factors to overcome a perceived lack of convenience for customers planning to ride roads and trails some distance away from our shop
• Develop customer incentive and loyalty programs to leverage customer relationships and create positive word of mouth

You could certainly include more detail in each section; this is simply a quick guide. And if you plan to develop a product or service, you should thoroughly describe the development process as well as the end result.

The key is to describe what you will do for your customers--if you can't, you won't have any customers.

Next time we'll look at another major component in a business plan: your Products and Services .

More in this series:

• How to Write a Great Business Plan: Key Concepts
• How to Write a Great Business Plan: the Executive Summary
• How to Write a Great Business Plan: Products and Services
• How to Write a Great Business Plan: Market Opportunities
• How to Write a Great Business Plan: Sales and Marketing
• How to Write a Great Business Plan: Competitive Analysis
• How to Write a Great Business Plan: Operations
• How to Write a Great Business Plan: Management Team
• How to Write a Great Business Plan: Financial Analysis

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Business plans might seem like an old-school stiff-collared practice, but they deserve a place in the startup realm, too. It’s probably not going to be the frame-worthy document you hang in the office—yet, it may one day be deserving of the privilege.

Whether you’re looking to win the heart of an angel investor or convince a bank to lend you money, you’ll need a business plan. And not just any ol’ notes and scribble on the back of a pizza box or napkin—you’ll need a professional, standardized report.

Bah. Sounds like homework, right?

Yes. Yes, it does.

However, just like bookkeeping, loan applications, and 404 redirects, business plans are an essential step in cementing your business foundation.

Don’t worry. We’ll show you how to write a business plan without boring you to tears. We’ve jam-packed this article with all the business plan examples, templates, and tips you need to take your non-existent proposal from concept to completion.

Table of Contents

What Is a Business Plan?

Tips to Make Your Small Business Plan Ironclad

How to Write a Business Plan in 6 Steps

Startup Business Plan Template

Business Plan Examples

Work on Making Your Business Plan

How to Write a Business Plan FAQs

What is a business plan why do you desperately need one.

A business plan is a roadmap that outlines:

• Who your business is, what it does, and who it serves
• Where your business is now
• Where you want it to go
• How you’re going to make it happen
• What might stop you from taking your business from Point A to Point B
• How you’ll overcome the predicted obstacles

While it’s not required when starting a business, having a business plan is helpful for a few reasons:

• Secure a Bank Loan: Before approving you for a business loan, banks will want to see that your business is legitimate and can repay the loan. They want to know how you’re going to use the loan and how you’ll make monthly payments on your debt. Lenders want to see a sound business strategy that doesn’t end in loan default.
• Win Over Investors: Like lenders, investors want to know they’re going to make a return on their investment. They need to see your business plan to have the confidence to hand you money.
• Stay Focused: It’s easy to get lost chasing the next big thing. Your business plan keeps you on track and focused on the big picture. Your business plan can prevent you from wasting time and resources on something that isn’t aligned with your business goals.

Beyond the reasoning, let’s look at what the data says:

• Simply writing a business plan can boost your average annual growth by 30%
• Entrepreneurs who create a formal business plan are 16% more likely to succeed than those who don’t
• A study looking at 65 fast-growth companies found that 71% had small business plans
• The process and output of creating a business plan have shown to improve business performance

Convinced yet? If those numbers and reasons don’t have you scrambling for pen and paper, who knows what will.

Don’t Skip: Business Startup Costs Checklist

Before we get into the nitty-gritty steps of how to write a business plan, let’s look at some high-level tips to get you started in the right direction:

Be Professional and Legit

You might be tempted to get cutesy or revolutionary with your business plan—resist the urge. While you should let your brand and creativity shine with everything you produce, business plans fall more into the realm of professional documents.

Think of your business plan the same way as your terms and conditions, employee contracts, or financial statements. You want your plan to be as uniform as possible so investors, lenders, partners, and prospective employees can find the information they need to make important decisions.

If you want to create a fun summary business plan for internal consumption, then, by all means, go right ahead. However, for the purpose of writing this external-facing document, keep it legit.

Know Your Audience

Your official business plan document is for lenders, investors, partners, and big-time prospective employees. Keep these names and faces in your mind as you draft your plan.

Think about what they might be interested in seeing, what questions they’ll ask, and what might convince (or scare) them. Cut the jargon and tailor your language so these individuals can understand.

Remember, these are busy people. They’re likely looking at hundreds of applicants and startup investments every month. Keep your business plan succinct and to the point. Include the most pertinent information and omit the sections that won’t impact their decision-making.

Invest Time Researching

You might not have answers to all the sections you should include in your business plan. Don’t skip over these!

Your audience will want:

• Detailed information about your customers
• Numbers and solid math to back up your financial claims and estimates
• Deep insights about your competitors and potential threats
• Data to support market opportunities and strategy

Your answers can’t be hypothetical or opinionated. You need research to back up your claims. If you don’t have that data yet, then invest time and money in collecting it. That information isn’t just critical for your business plan—it’s essential for owning, operating, and growing your company.

Stay Realistic

Your business may be ambitious, but reign in the enthusiasm just a teeny-tiny bit. The last thing you want to do is have an angel investor call BS and say “I’m out” before even giving you a chance.

The folks looking at your business and evaluating your plan have been around the block—they know a thing or two about fact and fiction. Your plan should be a blueprint for success. It should be the step-by-step roadmap for how you’re going from Point A to Point B.

How to Write a Business Plan—6 Essential Elements

Not every business plan looks the same, but most share a few common elements. Here’s what they typically include:

• Executive Summary
• Business Overview
• Products and Services
• Market Analysis
• Competitive Analysis
• Financial Strategy

Below, we’ll break down each of these sections in more detail.

1. Executive Summary

While your executive summary is the first page of your business plan, it’s the section you’ll write last. That’s because it summarizes your entire business plan into a succinct one-pager.

Begin with an executive summary that introduces the reader to your business and gives them an overview of what’s inside the business plan.

Your executive summary highlights key points of your plan. Consider this your elevator pitch. You want to put all your juiciest strengths and opportunities strategically in this section.

2. Business Overview

In this section, you can dive deeper into the elements of your business, including answering:

• What’s your business structure? Sole proprietorship, LLC, corporation, etc.
• Where is it located?
• Who owns the business? Does it have employees?
• What problem does it solve, and how?
• What’s your mission statement? Your mission statement briefly describes why you are in business. To write a proper mission statement, brainstorm your business’s core values and who you serve.

Don’t overlook your mission statement. This powerful sentence or paragraph could be the inspiration that drives an investor to take an interest in your business. Here are a few examples of powerful mission statements that just might give you the goosebumps:

• Patagonia: Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.
• Tesla: To accelerate the world’s transition to sustainable energy.
• InvisionApp : Question Assumptions. Think Deeply. Iterate as a Lifestyle. Details, Details. Design is Everywhere. Integrity.
• TED : Spread ideas.
• Warby Parker : To offer designer eyewear at a revolutionary price while leading the way for socially conscious businesses.

3. Products and Services

As the owner, you know your business and the industry inside and out. However, whoever’s reading your document might not. You’re going to need to break down your products and services in minute detail.

For example, if you own a SaaS business, you’re going to need to explain how this business model works and what you’re selling.

You’ll need to include:

• What services you sell: Describe the services you provide and how these will help your target audience.
• What products you sell: Describe your products (and types if applicable) and how they will solve a need for your target and provide value.
• How much you charge: If you’re selling services, will you charge hourly, per project, retainer, or a mixture of all of these? If you’re selling products, what are the price ranges?

4. Market Analysis

Your market analysis essentially explains how your products and services address customer concerns and pain points. This section will include research and data on the state and direction of your industry and target market.

This research should reveal lucrative opportunities and how your business is uniquely positioned to seize the advantage. You’ll also want to touch on your marketing strategy and how it will (or does) work for your audience.

Include a detailed analysis of your target customers. This describes the people you serve and sell your product to. Be careful not to go too broad here—you don’t want to fall into the common entrepreneurial trap of trying to sell to everyone and thereby not differentiating yourself enough to survive the competition.

The market analysis section will include your unique value proposition. Your unique value proposition (UVP) is the thing that makes you stand out from your competitors. This is your key to success.

If you don’t have a UVP, you don’t have a way to take on competitors who are already in this space. Here’s an example of an ecommerce internet business plan outlining their competitive edge:

FireStarters’ competitive advantage is offering product lines that make a statement but won’t leave you broke. The major brands are expensive and not distinctive enough to satisfy the changing taste of our target customers. FireStarters offers products that are just ahead of the curve and so affordable that our customers will return to the website often to check out what’s new.

5. Competitive Analysis

Your competitive analysis examines the strengths and weaknesses of competing businesses in your market or industry. This will include direct and indirect competitors. It can also include threats and opportunities, like economic concerns or legal restraints.

The best way to sum up this section is with a classic SWOT analysis. This will explain your company’s position in relation to your competitors.

6. Financial Strategy

Your financial strategy will sum up your revenue, expenses, profit (or loss), and financial plan for the future. It’ll explain how you make money, where your cash flow goes, and how you’ll become profitable or stay profitable.

This is one of the most important sections for lenders and investors. Have you ever watched Shark Tank? They always ask about the company’s financial situation. How has it performed in the past? What’s the ongoing outlook moving forward? How does the business plan to make it happen?

Answer all of these questions in your financial strategy so that your audience doesn’t have to ask. Go ahead and include forecasts and graphs in your plan, too:

• Balance sheet: This includes your assets, liabilities, and equity.
• Profit & Loss (P&L) statement: This details your income and expenses over a given period.
• Cash flow statement: Similar to the P&L, this one will show all cash flowing into and out of the business each month.

It takes cash to change the world—lenders and investors get it. If you’re short on funding, explain how much money you’ll need and how you’ll use the capital. Where are you looking for financing? Are you looking to take out a business loan, or would you rather trade equity for capital instead?

Read More: 16 Financial Concepts Every Entrepreneur Needs to Know

Startup Business Plan Template (Copy/Paste Outline)

Ready to write your own business plan? Copy/paste the startup business plan template below and fill in the blanks.

Executive Summary Remember, do this last. Summarize who you are and your business plan in one page.

Business Overview Describe your business. What’s it do? Who owns it? How’s it structured? What’s the mission statement?

Products and Services Detail the products and services you offer. How do they work? What do you charge?

Market Analysis Write about the state of the market and opportunities. Use date. Describe your customers. Include your UVP.

Competitive Analysis Outline the competitors in your market and industry. Include threats and opportunities. Add a SWOT analysis of your business.

Financial Strategy Sum up your revenue, expenses, profit (or loss), and financial plan for the future. If you’re applying for a loan, include how you’ll use the funding to progress the business.

5 Frame-Worthy Business Plan Examples

Want to explore other templates and examples? We got you covered. Check out these 5 business plan examples you can use as inspiration when writing your plan:

• SBA Wooden Grain Toy Company
• SBA We Can Do It Consulting
• OrcaSmart Business Plan Sample
• Plum Business Plan Template
• PandaDoc Free Business Plan Templates

Get to Work on Making Your Business Plan

If you find you’re getting stuck on perfecting your document, opt for a simple one-page business plan —and then get to work. You can always polish up your official plan later as you learn more about your business and the industry.

Remember, business plans are not a requirement for starting a business—they’re only truly essential if a bank or investor is asking for it.

Ask others to review your business plan. Get feedback from other startups and successful business owners. They’ll likely be able to see holes in your planning or undetected opportunities—just make sure these individuals aren’t your competitors (or potential competitors).

Your business plan isn’t a one-and-done report—it’s a living, breathing document. You’ll make changes to it as you grow and evolve. When the market or your customers change, your plan will need to change to adapt.

That means when you’re finished with this exercise, it’s not time to print your plan out and stuff it in a file cabinet somewhere. No, it should sit on your desk as a day-to-day reference. Use it (and update it) as you make decisions about your product, customers, and financial plan.

Review your business plan frequently, update it routinely, and follow the path you’ve developed to the future you’re building.

Keep Learning: New Product Development Process in 8 Easy Steps

What financial information should be included in a business plan?

Be as detailed as you can without assuming too much. For example, include your expected revenue, expenses, profit, and growth for the future.

What are some common mistakes to avoid when writing a business plan?

The most common mistake is turning your business plan into a textbook. A business plan is an internal guide and an external pitching tool. Cut the fat and only include the most relevant information to start and run your business.

Who should review my business plan before I submit it?

Co-founders, investors, or a board of advisors. Otherwise, reach out to a trusted mentor, your local chamber of commerce, or someone you know that runs a business.

Ready to Write Your Business Plan?

Don’t let creating a business plan hold you back from starting your business. Writing documents might not be your thing—that doesn’t mean your business is a bad idea.

Let us help you get started.

Join our free training to learn how to start an online side hustle in 30 days or less. We’ll provide you with a proven roadmap for how to find, validate, and pursue a profitable business idea (even if you have zero entrepreneurial experience).

Stuck on the ideas part? No problem. When you attend the masterclass, we’ll send you a free ebook with 100 of the hottest side hustle trends right now. It’s chock full of brilliant business ideas to get you up and running in the right direction.

About Jesse Sumrak

Jesse Sumrak is a writing zealot focused on creating killer content. He’s spent almost a decade writing about startup, marketing, and entrepreneurship topics, having built and sold his own post-apocalyptic fitness bootstrapped business. A writer by day and a peak bagger by night (and early early morning), you can usually find Jesse preparing for the apocalypse on a precipitous peak somewhere in the Rocky Mountains of Colorado.

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Business Plan Example and Template

Learn how to create a business plan

What is a Business Plan?

A business plan is a document that contains the operational and financial plan of a business, and details how its objectives will be achieved. It serves as a road map for the business and can be used when pitching investors or financial institutions for debt or equity financing .

A business plan should follow a standard format and contain all the important business plan elements. Typically, it should present whatever information an investor or financial institution expects to see before providing financing to a business.

Contents of a Business Plan

A business plan should be structured in a way that it contains all the important information that investors are looking for. Here are the main sections of a business plan:

1. Title Page

The title page captures the legal information of the business, which includes the registered business name, physical address, phone number, email address, date, and the company logo.

2. Executive Summary

The executive summary is the most important section because it is the first section that investors and bankers see when they open the business plan. It provides a summary of the entire business plan. It should be written last to ensure that you don’t leave any details out. It must be short and to the point, and it should capture the reader’s attention. The executive summary should not exceed two pages.

3. Industry Overview

The industry overview section provides information about the specific industry that the business operates in. Some of the information provided in this section includes major competitors, industry trends, and estimated revenues. It also shows the company’s position in the industry and how it will compete in the market against other major players.

4. Market Analysis and Competition

The market analysis section details the target market for the company’s product offerings. This section confirms that the company understands the market and that it has already analyzed the existing market to determine that there is adequate demand to support its proposed business model.

Market analysis includes information about the target market’s demographics , geographical location, consumer behavior, and market needs. The company can present numbers and sources to give an overview of the target market size.

A business can choose to consolidate the market analysis and competition analysis into one section or present them as two separate sections.

5. Sales and Marketing Plan

The sales and marketing plan details how the company plans to sell its products to the target market. It attempts to present the business’s unique selling proposition and the channels it will use to sell its goods and services. It details the company’s advertising and promotion activities, pricing strategy, sales and distribution methods, and after-sales support.

6. Management Plan

The management plan provides an outline of the company’s legal structure, its management team, and internal and external human resource requirements. It should list the number of employees that will be needed and the remuneration to be paid to each of the employees.

Any external professionals, such as lawyers, valuers, architects, and consultants, that the company will need should also be included. If the company intends to use the business plan to source funding from investors, it should list the members of the executive team, as well as the members of the advisory board.

7. Operating Plan

The operating plan provides an overview of the company’s physical requirements, such as office space, machinery, labor, supplies, and inventory . For a business that requires custom warehouses and specialized equipment, the operating plan will be more detailed, as compared to, say, a home-based consulting business. If the business plan is for a manufacturing company, it will include information on raw material requirements and the supply chain.

8. Financial Plan

The financial plan is an important section that will often determine whether the business will obtain required financing from financial institutions, investors, or venture capitalists. It should demonstrate that the proposed business is viable and will return enough revenues to be able to meet its financial obligations. Some of the information contained in the financial plan includes a projected income statement , balance sheet, and cash flow.

9. Appendices and Exhibits

The appendices and exhibits part is the last section of a business plan. It includes any additional information that banks and investors may be interested in or that adds credibility to the business. Some of the information that may be included in the appendices section includes office/building plans, detailed market research , products/services offering information, marketing brochures, and credit histories of the promoters.

Business Plan Template

Here is a basic template that any business can use when developing its business plan:

Section 1: Executive Summary

• Present the company’s mission.
• Describe the company’s product and/or service offerings.
• Give a summary of the target market and its demographics.
• Summarize the industry competition and how the company will capture a share of the available market.
• Give a summary of the operational plan, such as inventory, office and labor, and equipment requirements.

Section 2: Industry Overview

• Describe the company’s position in the industry.
• Describe the existing competition and the major players in the industry.
• Provide information about the industry that the business will operate in, estimated revenues, industry trends, government influences, as well as the demographics of the target market.

Section 3: Market Analysis and Competition

• Define your target market, their needs, and their geographical location.
• Describe the size of the market, the units of the company’s products that potential customers may buy, and the market changes that may occur due to overall economic changes.
• Give an overview of the estimated sales volume vis-à-vis what competitors sell.
• Give a plan on how the company plans to combat the existing competition to gain and retain market share.

Section 4: Sales and Marketing Plan

• Describe the products that the company will offer for sale and its unique selling proposition.
• List the different advertising platforms that the business will use to get its message to customers.
• Describe how the business plans to price its products in a way that allows it to make a profit.
• Give details on how the company’s products will be distributed to the target market and the shipping method.

Section 5: Management Plan

• Describe the organizational structure of the company.
• List the owners of the company and their ownership percentages.
• List the key executives, their roles, and remuneration.
• List any internal and external professionals that the company plans to hire, and how they will be compensated.
• Include a list of the members of the advisory board, if available.

Section 6: Operating Plan

• Describe the location of the business, including office and warehouse requirements.
• Describe the labor requirement of the company. Outline the number of staff that the company needs, their roles, skills training needed, and employee tenures (full-time or part-time).
• Describe the manufacturing process, and the time it will take to produce one unit of a product.
• Describe the equipment and machinery requirements, and if the company will lease or purchase equipment and machinery, and the related costs that the company estimates it will incur.
• Provide a list of raw material requirements, how they will be sourced, and the main suppliers that will supply the required inputs.

Section 7: Financial Plan

• Describe the financial projections of the company, by including the projected income statement, projected cash flow statement, and the balance sheet projection.

Section 8: Appendices and Exhibits

• Quotes of building and machinery leases
• Proposed office and warehouse plan
• Market research and a summary of the target market
• Credit information of the owners
• List of product and/or services

Related Readings

Thank you for reading CFI’s guide to Business Plans. To keep learning and advancing your career, the following CFI resources will be helpful:

• Corporate Structure
• Three Financial Statements
• Business Model Canvas Examples
• See all management & strategy resources
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How to Write a Business Plan Executive Summary (Example Included!)

How do you turn your brilliant business idea into a reality? You've done your homework and know that to get investors or partners, you need a business plan . But more than that, you want to really stand out and make a strong first impression—and that's where the business plan executive summary steps in.

This key section gives a quick snapshot of your entire business strategy, and is designed to catch the interest of potential investors, stakeholders, or partners. It can be the difference between landing that dream deal or getting lost in the slush pile.

So, what's better than a business plan executive summary example to point you in the right direction? Below, you'll find a great one—plus tips on what to include, what to avoid, and how to craft yours.

What is a business plan executive summary?

A business plan executive summary is a condensed overview of the key elements of your business plan. It introduces your business, what you offer (products or services), your target market, and what sets you apart from the competition. It also outlines your financial projections and funding needs (if applicable) and gives a clear picture of your company description and vision.

Your business plan executive summary could be decisive in several situations:

• Pitching to investors: Investors often make preliminary decisions based on the executive summary. A well-crafted summary can get you a meeting and a chance to present your full business plan.
• Summarizing for stakeholders: Stakeholders need to quickly understand your business's direction and key strategies. An executive summary gives them a concise update.
• Business competitions: In many business plan competitions, judges rely on the executive summary to decide which plans move to the next round.

Now that you understand the importance of an executive summary in a business plan, let’s see the key components that make up a winning one.

What should an executive summary include in a business plan

Crafting an effective executive summary means transforming the most critical elements of your business plan into a clear and compelling story. It's typically positioned at the beginning of the document but is written last to ensure it accurately reflects the entire plan.

Here are the key parts of an executive summary in a business plan:

Mission statement

Your mission statement is the heart of your business; it can grab your audience's attention and clarify your business’s core values and objectives. Briefly describe your company’s purpose and what you aim to achieve.

Company history and management team

Provide a brief overview of your business’s history, noting key milestones and achievements. Introduce your management team, highlighting their experience and expertise. This section helps build credibility and shows that you have a capable team behind the business.

Products or services

Describe the products or services your business offers, focusing on what makes them unique and how they meet market needs. This part should clearly explain the value your offerings provide.

Target market

Define your target customers, including their demographics, needs, and pain points. Highlight the demand for your products or services and how your business meets this demand. Assess your main competitors, identifying their strengths, weaknesses, and market share.

Competitive edge

Identify what sets your business apart from the competition. This could be unique technology, excellent customer service, a strong brand, patents, or trademarks—anything that really gives you an edge. Emphasize these strengths to show why your business will thrive in the market.

Financial projections

Give a high-level overview of your financial projections, covering revenue, profit margins, and growth expectations. This section should reassure readers about your business’s financial viability and potential for success. Do not forget to include the amount of funding you're seeking and how you'll use it to achieve your goals.

Speaking of funding, you can build your dream business with the help of a high-paying job—browse open jobs on The Muse »

How to write a business plan executive summary: Dos and Don'ts

So, how do you write an executive summary for a business plan? Here's what you should do—and what you should avoid.

• Hook them early: Start with a captivating introduction that grabs the reader's attention. This could be a strong opening statement or an impactful statistic that highlights your most compelling value proposition.
• Write with clarity: Keep your language clear and straightforward. Using jargon or technical terms could confuse your audience.
• Tell a story : People are naturally drawn to stories. Try to frame your business plan executive summary as a narrative that includes challenges and successes.
• Focus on impact: Prioritize the most important information. Remember, it's a summary, not the full story.
• Quantify your success: Use data and metrics whenever you can to back up your claims about market size, growth potential, and financial projections.
• Proofread like a pro: Typos and grammatical errors can leave a negative impression. Double (or triple) check your work before sending it out. Don’t just use spelling and grammar check—actually re-read it to catch any mistakes.
• Showcase your passion: That should be the easy part. Just let your enthusiasm for your business and its mission shine through!
• Bury the lead: Don't wait until the end to share your most important information. Start strong and capture their interest right away.
• Be too vague: Instead, be specific and provide concrete details. Vague statements don’t add value or clarity, so they don't belong in your business executive summary.
• Ignore your audience: Tailor your summary to the needs and interests of your audience. Consider what they need to know and what will capture their interest.
• Overpromise and underdeliver: Be realistic about your projections and timelines. Setting unrealistic expectations can damage your credibility.
• Get bogged down in details: Save the nitty-gritty details for your full business plan. Focus on the key highlights in your executive summary.
• Forget the call to action: Tell your readers what you want them to do next. Do you want them to invest? Partner with you? Clearly outline your desired outcome.
• Write in a vacuum: Get feedback from trusted advisors or mentors before finalizing your summary. Fresh eyes can help spot areas for improvement.

Business plan executive summary example

Wondering how these tips look in action? Here's the business plan summary example you've been looking for.

This one is for a fictitious company—let's call it Econnovate—specializing in renewable energy solutions. Use it as a guide to craft your own business plan executive summary.

Mission and vision statements

Econnovate is revolutionizing the energy landscape with innovative, sustainable solutions that empower businesses and communities to embrace a cleaner future. Our mission is to use the power of renewable energy sources to provide innovative, affordable, and sustainable energy solutions to reduce our reliance on fossil fuels and create a more environmentally conscious world.

Founded in 2021, Econnovate is a team of passionate engineers and environmental enthusiasts dedicated to developing cutting-edge renewable energy technologies. Our team boasts over 50 years of combined industry experience, including experts in technology, marketing, and operations. Headquartered in Denver, CO, we operate with a global mindset, serving clients across diverse industries and geographies.

Our products

Econnovate's flagship product, SolarMax, is a cutting-edge solar panel system that offers 20% more efficiency than conventional panels. Additionally, we provide EcoBattery, a state-of-the-art energy storage solution that maximizes the utility of our solar panels, ensuring energy availability even during non-sunny periods. Our products are designed to be both cost-effective and easy to install, making sustainable energy accessible to a wider audience.

The global renewable energy market is expected to grow at a CAGR of 7.8% over the next decade. Our target market includes environmentally conscious homeowners and businesses seeking sustainable energy solutions. With increasing regulatory support and growing environmental awareness, the demand for our products is poised for substantial growth.

Econnovate’s proprietary solar technology not only increases efficiency but also reduces costs, giving us a significant edge over competitors. We not only provide renewable energy solutions but also adhere to sustainable practices in our own operations. Additionally, our exceptional customer service and strong brand reputation further differentiate us in the marketplace. We also offer comprehensive warranties and maintenance services, ensuring long-term customer satisfaction and loyalty.

We project a 30% annual revenue growth over the next five years, with profitability expected to be achieved by year three. Our robust financial model is based on conservative estimates and thorough market analysis. By year five, we anticipate generating $50 million in annual revenue, with a healthy profit margin of 15%.

We are seeking $2 million in funding to scale our manufacturing capabilities and expand our market reach. This investment will enable Econnovate to double production capacity and increase market share by 15% within two years. The funds will be allocated to enhancing our production facilities, boosting our marketing plan, and expanding our sales team.

1. What is an executive summary in a business plan?

It's a concise summary of the key points of a business plan, highlighting the business’s mission, products or services, market, competitive advantages, financial projections, and funding needs. The goal is to give a quick overview that captures the reader’s interest and encourages them to read the full plan.

2. How long should an executive summary be?

An executive summary is typically one to two pages long. It should provide a concise overview without overwhelming the reader. Focus on the most important aspects of your business plan, making sure each point is clear and impactful.

3. Can I use a template to write an executive summary?

Yes! Templates offer an effective structure and help ensure you cover all essential elements. But don't just fill in the blanks. Tailor the template to fit your business and make it your own. (Feel free to use our example as a guide.)

4. Should an executive summary be written in first person or third person?

An executive summary is typically written in the third person to maintain a professional tone. However, if your business plan is for internal use or a more personal presentation, using the first person can be appropriate. The key is to keep your writing clear and professional at all times.

5. How do I make my executive summary stand out?

To make your executive summary stand out, focus on being clear and compelling. Start with a strong opening statement that grabs attention. Use visual elements like bullet points, headings, and charts to make it easy to read. Highlight your unique selling points and ensure your summary is free of complex jargon and technical language.

Remember, your executive summary is often the first impression of your business, so make it count!

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A Quick Guide to How to Write a Company Overview for Your Business Plan

Written by: Unenabasi Ekeruke

If you're planning to start a new business, the one key task on your to-do list should be to create a business plan. Studies have shown that 71% of fast-growing companies credit their success to having a written business plan.

Writing a solid company overview that describes your organization and where you're headed is equally important to win investors' confidence and secure their buy-in,

A company overview gives readers a general idea of your company, product or service and target market by describing your organization and plans. With this information, prospects can make informed decisions about whether or not to partner, invest in or work with your company.

In this article, we'll explore what is a company overview and how to write one for your business. We’ve included insights, tips and ready-made templates to get you started.

Table of Contents

What is a company overview, the importance of a company overview, what to include in a company overview, how to write a company overview.

• Company Overview Templates
• The company overview is part of a business plan that gives a general description of your company.
• It typically includes a company description and its history, legal structure, mission statement, target market, team members, etc.
• The company overview provides a strategic roadmap for your business, establishes a positive first impression about your company, attracts investors attention and persuades them to continue reading.
• Visme has a vast library of templates for creating winning business plans,  presentations, proposals and other business documents.
• Take advantage of  Visme's extensive library of templates, user-friendly editor, data visualizations and design assets to build impressive presentations swiftly and launch your business with style.

A company overview, or business overview, is an informative part of the business plan that provides a snapshot of your company's background and establishes its identity.

It provides a general overview of your company, its products or services and its customers. A business overview helps to introduce and spark the attention of investors, potential partners, clients and other stakeholders by succinctly presenting this crucial information.

It appears right after the executive summary in the business plan. Even though it is the document's shortest chapter, you can't ignore its significance. We’ll look at its importance in the next section.

Your company overview is one of the most crucial elements of your business plan. How you craft this section can make or break your entire business plan.

After all, it is the entry point to grab your readers' and stakeholders' interest. Failing to impress them at this stage might result in missed opportunities you would have otherwise won.

Let's provide more reasons why you should invest your time in making the company overview.

1. Establishes a Positive First Impression

Studies show that you only have a few seconds to make a solid first impression.

The situation is even more critical when presenting your business plan to someone unfamiliar with your organization.

Imagine if the reader had no prior knowledge about your business. What would they be able to glean from your business plan or company overview? What should people remember most about you and your business?

This is where the company overview shines. It can shape readers' initial perceptions and induce them to continue reading.

So by drafting an engaging business overview, you lay the cornerstone for building trust and curiosity. The result? It'll compel the audience to read on and discover your offer's value.

Moreover, using tools like Visme to create charts , graphs , plans , reports and infographics can help you quickly grab your reader’s eyeballs.

2. Helps To Attract Investors

If your business is in the growth or expansion phase, securing funding from potential investors becomes your priority.

Investors show interest in businesses with a clear vision, sound business plan and realistic financial projections.

But they come across numerous opportunities daily and have limited time to evaluate each. So to differentiate your business, you need to present a business overview beyond simply stating the obvious.

You must provide potential investors with information like your USP, market growth and competitive advantages. All this information will help investors assess the viability and attractiveness of your business.

3. Provides a Strategic Roadmap

A meticulous goal-driven plan is the best course of action for any company looking to succeed over the long run.

And to help you achieve those goals, the company overview acts as a strategic road map. That’s because it provides details about your company's vision, values and purpose.

By analyzing the company's operations, goals and strategies, the overview can provide insights into areas that may be vulnerable to risks and areas with the potential for growth and improvement.

The content of your company overview can vary depending on your company's specifics, mode of operation and purpose of the business plan.

But there are certain fundamental elements you should include in your company overview:

Let’s check them out.

Made with Visme Infographic Maker

1. Company Description:

Treat the “About company” section as your elevator pitch. It should provide an in-depth overview of your business. When writing this section, consider including the following pointers:

• The purpose and nature of your company,
• Highlight what sets it apart from competitors,
• Share the guiding principles of your company.

In addition, draw attention to any distinct features of your business, such as creative procedures, in-house developed technology, or unique corporate culture.

Depending on the intricacy of the business plan, a company description's length might vary, but it should always be precise and short. It should typically include 3-4 sentences.

Use the template below to showcase a digestible version of your business overview.

2. Team Members, CEO and Partners

Write a quick introduction for the members of your management team, including their names, roles and backgrounds. Emphasize their industry knowledge, accomplishments (if any) and related experience.

The Meet Our Team page shouldn't just be about the team growing your business and the value and expertise they bring to the table. It should help your audience and stakeholders get familiar with your team.

After writing about the team members, give specific information on the company's founder or CEO.

Outline their mission, vision, values, leadership style and significant contributions to the company. Draw attention to their track record of achievement, prominence in the business or any other unique and notable characteristics

3. Legal Structure

Determine your firm's legal structure, including whether it is a corporation, limited liability company (LLC) , partnership, joint venture, or sole proprietorship. This information makes your company's legal structure and ownership structure clear.

It should also contain details regarding the business's ownership structure, such as the names of the shareholders and the percentages of the company they own.

4. Company History

Describe your company's history, beginning with its inception and moving forward. Mention the date of establishment, the members involved and pivotal moments that have shaped your company.

Talk about any noteworthy accomplishments, industry accolades and growth milestones that show the progress and resiliency of your organization.

5. Mission Statement

The mission statement section should summarize your company's purpose (main motive) and core objectives.

When writing this section, show how your company's values align with those of your potential target audience. Describe the fundamental beliefs and principles that guide your company's activities and decision making.

6. Target Market

Analyze your target market, including your ideal customers' demographic and psychographic profiles. While writing about this element, consider including the following:

• personality traits,
• geographic location,
• size of the target market,
• changes/trends in the market

When writing this section, mention the industry and your target market in which they operate.

And if you’re pivoting or starting a new business in another industry or targeting a new market within the same industry, you should mention it in the company overview.

Detailed information about your target market shows you've done your homework and understand your market like the back of your hand.

This can boost investors' confidence in your business.

7. Product or Service

Give a detailed explanation of your products or services, highlighting their features, benefits and unique characteristics. Show how your products or services address customer problems/pain points or meet their desires.

Highlight any technology breakthroughs, quality certifications, or design characteristics that set your offerings apart. Share notable client success stories, feedback, or case studies demonstrating the worth of your offerings and clients' satisfaction.

8. Objective and Goals

Define your company's short and long term objectives and goals .

These may include financial objectives, market expansion strategies, product development successes and other quantifiable results.

Explain why each goal is important and how accomplishing it will help drive business growth. Additionally, explain the strategies or activities to achieve your goals.

9. Competitive Advantage

Lay out your competitive advantage by showcasing what distinguishes your business from other companies.

You can shed some light on what makes your company unique. It may be anything from novel technology to outstanding customer service, cost management, or exclusive alliances. Remember to highlight how your competitive edge makes investing in your company a great decision and opportunity for investors.

You should include the company's patents, trademarks and other intellectual property rights you’ve acquired here. Even if you’ve applied for a pending patent, feel free to mention it.

A company overview should highlight the USP of the business and convey it to the audience concisely and engagingly. To create a strong USP, businesses must examine the profile of their target customer and market their products in a way that shows how they can solve their problems.

Let's see how you can write the company overview and use it as the foundation of your marketing efforts:

1. Provide Basic Company Information

Consider the company overview as your company's introduction. Give critical details about your business in the first paragraph, such as

Company Name: Mention your company's legal name as it appears on state records.

Management Team: Consider listing the names of the company's owners, founders and individuals who are part of the company.

Business Structure: Identify the type of business, such as a corporation, LLC, partnership, or sole proprietorship.

Location: Share the address of your company's main office and any additional owned sites.

By including these specifics, you provide a succinct description of your firm in the business overview.

2. Include Unique Details

After jotting down the basic information, it’s time to write down the key components. Write down your company history, mission statement and the industry you operate in.

Include a brief summary of the problem your business is trying to address and the proposed solution. Be sure to keep this statement relevant by considering your long-term goals. Other relevant details you can mention here include:

• Any honors or accolades that your business has won
• The business principles and cultures
• Any new or unique aspects (features or benefits) of your product or service
• The commitment of your business to social responsibility

However, below are some common mistakes you should be mindful of while writing:

• Using a dull template,
• Drafting unrealistic goals,
• Over-hyping your business,
• Making the overview complex,
• Poor grammar and punctuation,
• Not defining your target audience

If you need help crafting content for your company overview, you can use Visme's AI writer . It can quickly generate text for your presentation, ensuring the information is clear and concise.

3. Showcase the Passion

When creating a company overview, showcasing your passion and enthusiasm for your business is essential. Injecting humor, storytelling and brand voice can make your overview more engaging.

However, it's also important to remember that 65% of the general population are visual learners. Therefore, creating visually appealing presentations is also crucial to keep your audience engaged, apart from storytelling and humor. Visual aids such as graphs, charts, and images can help convey complex information in an engaging way

To create stunning presentations with top-notch visuals, Visme's thousands of templates can be customized with text, images, and colors. Now you can enhance your content's value and make your slides look more engaging!

4. Define your Product or Services

Next, describe your offerings in more detail, along with your target market.

Your potential customers must first understand the products/service you offer and how they can help if you want them to invest in your company.

Nonetheless, other parts of your business plan, like your market analysis, will go more in-depth about that information.

5. Review with your Team

Writing a business plan is a collaborative activity. Brainstorm with your team to create a compelling narrative for your company summary.

During the session, pick everyone's brain to get unique ideas and then leverage their feedback and fill in the different sections of your company overview.

Visme makes team collaboration super seamless. In Visme, team members can leave tag each other, leave feedback and resolve comments in real-time and on their time. Once done, you can share and publish your work for everyone in your organization. You can easily publish your presentation online in Visme and share it directly with a URL or embed it on your website.

Watch this video to learn how to collaborating using Visme.

Consider your team member's suggestions, as they can help you whether or not you’ve communicated your message to the point.

6. Highlight Your Goals

Outline your objectives and what steps you will take to achieve them in the last section of your business overview.

Recognize that goals can change as your company goes through different stages of development.

For instance, if your business is growing and seeking investors, goals related to scale and growth become more prominent. However, profitability and expansion may become more critical as your business grows.

Emphasize the value of reevaluating and reviewing goals frequently to be responsive to market conditions. This approach ensures your business remains agile and focused on a path to long-term success.

7. Keep it Concise

Remember that your business plan has plenty of room for specifics. The company overview should include the most fundamental details required for someone to understand your business.

You don’t need to worry if your first draft is too long. Simply read it several times and cut out any extraneous elements and phrases to shorten it.

And to make your readers continue reading the whole plan, make sure it’s written clearly and complemented with engaging visuals such as icons , stock photos and videos.

The company overview is just one part of the business plan. We all know how important it is to start your new business on the right foot. And so we're here to help.

Watch the video below to learn how to write a  business plan. This video will help guide you through your financial planning, marketing strategy, unique selling point and more.

8 Company Overview Templates

Visme has many company overview and business plan templates with different design layouts and structures for various industries.

It might initially feel intimidating with all the data and no design experience. But our intuitive editor is foolproof whether you're a novice or a professional.

We have handpicked eight business overview templates to help you get started!

1. Consultancy Business Plan Template

The consulting industry has steadily grown over the past several years. It is expected to reach $343.5 billion by 2025 . So if you’re looking for investors or promoting a consulting agency, then this professional business template is perfect for you.

This template lets you present a business idea or proposal to your clients. It highlights your company's services, key features, strategies, testimonials and more.

Furthermore, you can ensure brand integrity by customizing this template by adding brand assets like colors, fonts and company logos . You can also create a brand kit in Visme to store them across all your designs.

If you don’t want to do it manually, you can also access Visme’s Brand Wizard to generate a complete set of branded templates. You only need to input your website URL; the wizard will pull in brand assets that match your brand style.

2. Software Brand Go-To-Market Strategy Plan Template

Are you looking to launch a new product as a software brand? There's nothing better than this template for a software brand's go-to-market strategy.

With a monochromatic color combination that enhances clarity and understanding, the template is professional and easy to read.

You can use Visme to make an interactive map to complement your go-to-market plan. To visualize geographic data, you can quickly generate color-coded maps using the free map maker and templates. This feature is helpful when envisioning an area where most of your consumers live.

3. Travel Website Business Plan Template

According to a study, an estimated 700 million people will book travel online by 2023. Out of these, 83% of US adults want to book their trips online.

Getting off the ground can be difficult for many travel brands today. But if you want to invoke a sense of adventure in your business and clients, use this travel business plan template to show that you've researched and why you are the ideal fit for them.

Using this template, you can be sure that your business plan includes everything you need, including a mission statement, business objectives, a SWOT analysis of the market, a sales forecast and organizational management.

Tailored to those passionate about travel, you can effortlessly capture everyone’s imagination with photos of idyllic locations pulled from Visme’s library of high-resolution stock images .

And if you don't find anything that catches your fancy, don't sweat it. With Visme's AI image generator, you can generate professional-quality photos, graphics, art, drawings and paintings. The wizard will automatically generate and present options if you simply input an accurate prompt that precisely describes what you want.

4. Consulting Revenue-based Sales Plan Template

Do you want to create a comprehensive sales plan for your consulting business? This template can help you with that.

Consulting revenue-based sales plan template will help your businesses outline the various stages, executable actions, methodologies, outcomes, and goals of the sales process.

If you’re a consultant or a consulting firm, you can use this template to stay on top of your sales plans.

And if you want to include any data outside of Visme, as seen in the 7th slide, you can easily import it into your presentation. Visme allows you to connect and import data from Excel, Google Sheets, Google Analytics and Survey Monkey to create charts and graphs that visualize your data.

After importing the data, increase your presentation's impact by using data visualization tools to transform raw data into visually appealing graphs, charts and infographics. This approach stresses crucial points effortlessly, sparing your audience from grappling with text-heavy content.

5. Nonprofit - Business Plan Template

Creating a business and marketing plan for your nonprofit is essential when starting a business. You need to get the word out to increase donations and awareness for your cause.

This heartwarming business plan template will help you share your vision with potential donors and stakeholders. The stunning visuals capture the essence of your organization's objectives, making a lasting impression on those who support your mission.

Go ahead and edit content and change images, fonts and color themes to suit your unique needs. Add a dose of interactivity and animated features like navigation, pop-ups and icons that can highlight more information when users hover over them. It’ll create an immersive experience for your stakeholders.

However, If you’re short on time and looking for a way to customize and complete this template quickly and easily, try Visme Shortcuts . It’s a simple feature that allows you to find features, elements or assets by typing “/.”

6. Unique Restaurant Business Plan Template

Whether you're seeking to launch a new restaurant, grow or revamp your current business, or evaluate investments in this sector, you can use this vibrant and extensive template.

With soothing colors that will complement your restaurant's theme and beautiful visual elements, this template will add a touch of flair to your presentation. It has well-crafted aesthetic parts, balanced layouts and thoughtfully designed icons that make the presentation appear better.

Get a head start on creating a memorable business plan for your restaurant. If you want to share the business plan with key stakeholders, download it or share a live link.

If you share the live link, you can use Visme analytics to see how many people clicked and viewed your business plan. You can access unique visits, average time, duration, IP address and more analytics.

So wow your audience and unlock the doors to your restaurant's success with this delicious business plan template.

7. Denim Business Plan Template

A study by Technavio revealed that the denim industry will grow at a CAGR of 6.71% between 2022 and 2027. It means the demand is considerably high and the business is profitable. Now, that also implies cutthroat competition in the market.

So, you must create a winning business plan for your denim brand to engrave your audience and stakeholders. This trendy template can help you capture the essence of your creative vision and stay ahead of the curve,

If you want to fit your business or individual preferences, you can easily alter the backgrounds, fonts and colors while editing the template. Use Visme's dynamic fields to speed up the editing process and keep your presentation polished.

With the dynamic field option, you can update texts that repeat across slides. Even if you want to create specific variables for your use cases, you can do so with the Custom Fields option.

8. Real Estate - Marketing Plan Template

A written strategy and projections for your real estate investment are necessary to get funding for a proposed project.

Use this professionally created marketing plan template to increase your real estate sales. It includes pre-designed pages to display your business goals, buyer persona, SWOT analysis and more.

If your goal is lead generation for your real estate business, with Visme forms , you can create customized forms, popups and CTAs to embed on your landing page or website. Get three times more impressions and leave a lasting impression on your audience with no code builder form.

Effortlessly Create Company Overviews & More with Visme

A company overview is your entry point for attracting the interest of partners, investors and other stakeholders.

It takes skill and a deep awareness of your audience, as a business overview is not just a list of numbers and statistics. A well-crafted narrative that showcases your organization's vision, goals, and significant accomplishments is essential.

Nonetheless, creating and sharing a data-driven business plan doesn't have to be tough a nut to crack. You can seamlessly convey your ideas and goals with Visme's easy-to-use editor, professionally created templates, attractive data visualizations and interactive and collaborative features. Additionally, Visme offers millions of premium images, visual aids, and design elements to make your company overview stand out.

It's time to abandon traditional approaches and create a business plan that entices your stakeholders. Sign up for Visme today and start creating!

Create a compelling business plan and company overview with Visme

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About the Author

Unenabasi is a content expert with many years of experience in digital marketing, business development, and strategy. He loves to help brands tell stories that drive engagement, growth, and competitive advantage. He’s adept at creating compelling content on lifestyle, marketing, business, e-commerce, and technology. When he’s not taking the content world by storm, Unenabasi enjoys playing or watching soccer.

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How to Write a Company Overview for a Business Plan?

Company Profile Templates

• July 3, 2024

12 Min Read

If you were to invest in a business, what would be the first thing you’d like to know?

Of course, you’ll look at financials and numbers, but the first thing you would want to know would be the business idea, what the company does, who is behind it, and what it plans to accomplish.

A company overview section offers just that!

It’s a captivating sneak peek into your company and where it’s headed to keep readers hooked.

But the question is, what should you include in your company overview and how do you make it engaging?

We’ll learn exactly that in this blog post and also offer you examples to strengthen your practical understanding.

Let’s get started!

What is a company overview?

A company overview is a brief description of your business explaining what you do, the history of your business, and what you aim to achieve with your business idea. It also introduces the people in your management team and talks about your company’s legal structure.

A company description falls just after an executive summary and it’s an important section of your business plan. It offers business-related insights to the readers through a concise yet descriptive and structured summary.

Why do you need a company overview?

A company overview is part of a business plan where you introduce your business and its fundamentals to the readers. It’s the most important section upon which the details of your entire plan will surface.

Whether you’re planning to attract potential investors or partners—a reader will require essential information regarding what you do, your goals, legal aspects, and the company’s history. This information is essential before they invest further time into reading your business plan.

This section does just that. It offers enough information about your business and drives the reader to continue further by winning over their trust in your business idea.

Besides, this is a section where you can add a humane touch to your story. Potential investors often want to know the story of your business idea and the passion that drives you. If your passion resonates with them, they’re likely to keep reading till the end.

So yes, adding a company description isn’t optional. However, you can modify the contents and choose the structure that tells your story adequately.

What to include in an effective company overview

Let’s now understand what you should include in your company summary to make an impact.

1. Basic business information

For starters, you can include some basic information about your brand such as your registered company name, location(s) of operation, and the business structure or partnerships you’ve established.

While it’s not necessary to dive into much detail, you might need to explain why you have chosen a particular business or legal structure, i.e. limited liability company, sole proprietorship, or partnership.

2. Teams and partners

Elaborate further to write about the ownership, team members, management, and all other business partners. You can briefly record the names of those who hold key positions and the duties managed in their roles.

3. Business history

Any business overview must include a brief company history highlighting the following:

• Date of incorporation
• Number of active years
• Growth and diversification

Even as a startup, you can highlight your milestones achieved till now to win over the investors. This can include details about product development, the number of beta users, loans secured, or the sales attained.

4. Target customer base and services included

You’ll require some information and statistics regarding your company’s current target audience and expected customer base with your novel business ideas.

Here you can mention the different products and services you offer, its unique selling propositions (USPs) , and products that you’re likely to include in the brand’s future iterations.

Remember, it just needs to be an overview. You will dive into detailed depth when you write the products and services section .

5. Company mission statement

Include your company’s mission statement to highlight your company’s motto and central vision. If you don’t have a mission statement, create one highlighting your company’s purpose and what it aims to achieve.

Writing a mission statement doesn’t have to be complicated. Keep it as simple and crisp as possible.

6. Future goals for the business

For partners, investors, or any other party involved, laying out the future goals clearly can efficiently consolidate your vision. Highlight your service, financial, and business goals to get all concerned parties on the same page.

And that’s pretty much everything you would include in your company overview.

Tips to write an effective company overview

As simple as it may sound, writing a company overview isn’t that simple. You’re likely to sway away and make this section unnecessarily long. Not only that, there are higher chances that you’ll miss out on essential information if you don’t follow a structure.

Well, let’s make it easier for you. These tips about writing a company description will come in handy when drafting a quick overview.

1. Add a structure

Just like you need a structure to place together your business plan contents, a structure is essential when you write a company overview.

The basic structure of a company overview flows like this:

• Basic business details
• Company history
• Mission statement
• Services and products
• Future scope and objectives

Write these parts individually or merge them if required. However, make sure that you don’t stretch it unnecessarily. Add just a few sentences explaining each of these points with brevity.

2. Highlight the basics

When you write a company overview, focus on keeping things very basic. It’s very tempting to pile on additional information to make your business look peachier. However, don’t! Leave in-depth detailing for other sections of your business plan.

3. Demonstrate passion

Add passion and excitement to the narration of your business story, mission, and milestones. After all, the tone of writing can make a world of difference in how the readers perceive you.

Keeping it too formal can be monotonous, while a flashy representation can be distracting. Find a balance and maintain subtlety to get the investors excited.

4. Make it concise

Keep your company overview short and crisp.

Remember, the readers don’t have time to go through lengthy overviews all the time. They might lose interest and put aside your business plans.

Instead, get to the point quickly. Outline your goals, mission statement, and milestones, and quickly tell your story. You can uncover the details about the target market, product, financials, and strategies later on in the plan.

5. Write it at the end

Remember, how we skip writing an executive summary at the beginning. Similarly, you should always write your company overview after you’re done writing your entire plan.

This way you would have a very clear understanding about what details to include and how much depth to add.

6. Proofread and get it tested

It’s always a good idea to get someone to review your business plan and in this instance your company overview. A fresh perspective can help identify the mistakes and loopholes that exist in your summary.

Besides, always proofread the content again and again to find misspelled words, grammar, punctuation, and broken flow.

If you’re an existing company, revisit this section, time and again to keep it relevant and updated.

Now, before you head ahead and start working on your company description, check these company overview examples to get a better gist.

Company overview examples

Let’s get a more practical insight by referring to these real-life company overviews prepared by startups.

Ice cream cones company overview example

Crafty Cones Ltd. holds the central objective of retailing novelty ice cream cones. With our prior experience in the food industry through Dough’s Pizzeria, our three-year-old venture, our mission is to expand our customer base in the confectionery industry and bring top-quality delicacies to our consumers. With our ice cream outlet, we aim to bring gourmet quality confections to the busy sectors of Houston.

Our team is structured to work on different target aspects separately, then come together to deliver quality food to our customers. With communication and transparency at different tiers of our cooking, managerial, sales, and marketing teams, we hope to establish a working mechanism where experts are working in tandem. Our teams will also include dedicated customer support, photography, and documentation teams, as well as a legal team to assist with conflict management and ensure the outlet operates in alignment with state guidelines.

Crafty Cones stands out with gourmet quality ice cream cones that are offered at an affordable price for everyday consumers. Our flavors are intended to be original and created from scratch. We have several flavor combinations in addition to those popularly cherished in ice cream parlors. Our dessert line will stand out not only with the novel flavors incorporated but also with our “crafty” cones as a unique selling point. Our goal is to introduce fun flavors that are sophisticated and enjoyable for people of all age groups.

Financial estimation

Financially, it is estimated that our venture will cost $250,000 for cooking and staffing, equipment, marketing, and other support avenues. Our staffing is estimated to include a total of 8 members, including managerial and head pastry chef positions. The equipment for crafting cones and additional condiments as per our menu is estimated to require an investment of $100,000.

We seek the support of our investors in these financial aspects, which amounts to a total of $250,000. Our experience with a prior food outlet resonates with our experience in the industry. Thus, all estimates are readily chalked to practical requirements and are considered in our plan. We believe that Crafty Cones has the potential to put gourmet pastry cooking on the map. It aims to hone that sophistication along with the central goal of bringing quality food to our consumers.

Solar company overview example

Ownership & structure

SolarSynergy Inc. is a Delaware corporation co-owned by Laura Mitchell and Kevin Brown. The corporate structure was chosen to facilitate future expansion and to provide limited liability protection.

SolarSynergy Inc. was founded in 2019 by Laura Mitchell, a former energy consultant, and Kevin Brown, an experienced electrical engineer. The company began as a small startup focused on developing innovative solar energy solutions for residential and commercial properties. With initial funding from a successful Kickstarter campaign and a seed round from angel investors, SolarSynergy quickly established itself as a promising player in the renewable energy sector.

Location and services

Headquartered in Austin, Texas, SolarSynergy specializes in the design, installation, and maintenance of high-efficiency solar panels. The company aims to provide affordable and sustainable energy solutions to customers across Texas. SolarSynergy offers a range of services, including solar panel installation, energy efficiency consulting, and system maintenance, catering to both residential and commercial clients.

Management team

The management team of SolarSynergy Inc. is led by co-founders Laura Mitchell and Kevin Brown. Laura, the CEO, brings over 10 years of experience in the energy sector and is responsible for strategic planning and business development. Kevin, the CTO, has a background in electrical engineering and oversees the technical aspects of the company’s solar solutions. The team also includes a CFO with over 15 years of financial management experience, a marketing director, and a dedicated sales team.

“Our mission is to empower communities with sustainable, cost-effective solar energy solutions, reducing carbon footprints and promoting environmental responsibility.”

Achievements

Since its inception, SolarSynergy Inc. has installed over 500 solar systems, reducing carbon emissions by an estimated 10,000 tons annually. The company has received several industry awards, including the “Best Solar Startup” award at the 2020 Green Energy Expo.

Goals and vision

SolarSynergy Inc. aims to expand its operations to five additional states within the next three years. The company’s vision is to become a national leader in renewable energy solutions, known for its innovative products and exceptional customer service. By continually advancing its technology and expanding its market reach, SolarSynergy strives to make solar energy accessible to a broader audience.

SolarSynergy Inc. estimates an initial investment of $2 million to support its expansion efforts. The funds will be allocated as follows:

Equipment and setup

• $1 million for purchasing advanced solar panel manufacturing equipment and setting up new installation facilities.
• Staffing: $500,000 for hiring and training additional engineers, sales personnel, and customer support staff.
• Marketing: $300,000 for launching comprehensive marketing campaigns, including digital advertising, local promotions, and participation in industry trade shows.
• Operational Costs: $200,000 for initial inventory, office space, utilities, and other miscellaneous expenses.

The support of investors is crucial to achieving these financial goals. With a solid business plan and a proven track record in the industry, SolarSynergy Inc. is poised for significant growth and success in the renewable energy market.

P repare an effective company overview section

Consider your company overview as an elevator pitch. It will quickly introduce your business and prove its mettle to the readers. This section comes in quite handy when you want the readers to learn about your business in a short time.

Now, as you begin writing your company overview, ensure that it covers all the key components addressed in this blog post. Don’t forget to refer to the examples and use them as a reference to build your own unique section.

However, remember that this section is just a part of your overall business plan. To put together your entire plan, you can consider taking the help of a business planning app like Upmetrics .

With an extensive collection of 400+ business plan samples , a step-by-step guide, and AI assistance—this tool makes business planning a lot easier and faster.

Build your Business Plan Faster

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Frequently Asked Questions

How do you structure a company overview.

Here’s a structure you will follow to write a compelling company overview section:

Can a startup include a company overview in its business plan?

Yes, a company overview is essential whether you’re writing a business plan as a startup or an established business. Startups can avoid writing about company history and instead include achievements, if they have any, to date. Apart from that, details about the mission statement, legal structure, and products and services remain the same.

Should the company overview mention the target market?

A company overview should include a general understanding of your target market. Its in-depth detailing will be outlined in the market and competitive analysis section.

Should I include the company's history in the overview?

Yes. Anyone reading your business plan should know when you started the business, the people who own it, the milestones you have achieved, and your plans moving forward.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How to Write a Company Overview for a Business Plan

A company overview introduces your company.

People reading your business plan want to know about your business idea , how you plan to make your business idea a success and what are your chances of success. 

Your company overview is one of the important pieces of a business plan. Think of your company as a vehicle and your business plan a journey. You can navigate your way to success with a strong vehicle.  

Many business plans are made with the sole purpose of attracting funding and investment. If you have the same goal, writing a good company overview is essential.

Why should you Write a Company Overview?

A company overview is your chance to show your company’s strengths and the unique value proposition that your company offers. 

You can answer investors’ concerns here and convince them of your success. Lenders and investors want to know if their debt or investment will be secure with your business. 

When you can develop their confidence with your company overview section, it is likely that they will consider your business for investment. 

Want to write a business plan? Get help from our business plan writers for hire !

What goes into a company overview.

Here is what you should include in your company overview section of a business plan.

1-Basic Information

 The basic information of your company includes when your company was formed, how many employees you have, how much you are selling currently, your customer demographics, etc.

2- Owners & Managers Profiles  

Include your owners’ and managers’ profiles in the business plan company overview section. 

Showing the responsible people in your company and introducing your capable team to the world helps you gain investors’ confidence. 

If you can show that your business idea is credible and your team is capable of successfully carrying out the plan, your chances of getting funds from investors and backers increase.

3- Company History

Company history is relevant for old businesses. 

The companies working in the industry for some time and have shown steady growth over time have an easy time convincing lenders. 

Many times, a company that has already developed the product, tested it in the market, and has representative customers to show gets investment.

If you are in the business for a few years, investors would like to know about your representative customers, product or service performance in the past, and data on how soon the product will pay for itself in terms of reduced costs or increased efficiency.

4- Mission Statement

Try to write a simple mission statement. It should be easy to read and easy to understand. 

Keep your mission statement short to one or two sentences only. 

5- Product/Service and Customer 

Shortly discuss your product or service in your business overview. 

Tell your readers about your product or service, how it is different and why it will capture a market share.

You’ll need to shortly discuss your competitors to clear your unique proposition. Discuss what the competitors’ product or service is lacking and how you are filling that gap.

Mention your target customers. Many people will overestimate their target customers. Keep the estimates realistic and take a second opinion on this from a knowledgeable person.

Discuss your future goals at the end of the company overview section. 

Consider answering these questions when writing about your business goals. 

• How will you grow your customer base?
• How will you increase your market share?
• If and how will you increase your service area

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How to Write a Business Overview?

Follow these simple steps to write a business overview for your business plan. Remember your business overview is only a small section and you’d want to keep it short. 

Use Elevator Pitch

Your elevator pitch is the shortest version of your business plan. Start your company overview with your elevator pitch.

Keep yourself to the Basics

A company description is meant to shortly introduce your company. Make a small paragraph for each point but restrict yourself to the basics. 

Fight the urge to lengthen it as you have a full document ahead to explain your business plan. We recommend that you write the company overview after you have written your business plan. That way, you’ll know what is the most concise way to include all necessary details.

Show Passion for your Business

Show your love and passion for your business. Make your company introduction engaging with your passion and excitement for your business.

Keep it Compact

You know your company better than anyone elsel. Your emotions may carry you away from the topic. Here, think in terms of the readers of your business plan and write a compact, to-the-point firm overview or corporate overview. 

Your business plan readers are only partly interested in your company. They want to know if your company can meet business plan goals. Keeping your company overview brief will help readers get to the point easily.

Have Structure 

A company overview example structure looks like this:

• Basic Introduction to your company
• Introduction the team
• Company history 
• Mission Statement 
• Product or Service 
• Customer profile
• Future goals 

Consider writing 1, 2 sentence paragraphs for each point to write a compact and well-structured company overview.

Get a test reader 

Ask someone with some knowledge of the topic to read your company overview. 

You may miss your mistakes or even not recognize them. However, the second pair of eyes will be able to spot errors and mistakes without any bias.

Proofreading checks your work for grammar, punctuation, and spelling. Some tools like Grammarly also help you do that but it is still better to ask a human to proofread your work.

Why should you put so much effort into writing a business plan and a company overview? 

Company Overview examples

You may need to see a business description example to exactly know what you need to write about.

Cleaning Service Company Overview Example

Anna Active Cleaning Services offers home cleaning services in Detroit. This sole proprietorship is based in East Side, Detroit. 

Anna Active Cleaning offers services to local residents. We are also available on call for jobs in the other areas of the city. 

Our CEO, Ms. Anna Smith,  is a single mother with an ambition for helping people live well. She has a high school diploma. 

Ms. Smith has over 5 years of combined experience in managing home cleaning businesses. Our team includes 4 female workers with over 10 years of experience and 3 of them have a professional house cleaning certificate. 

Anna Active Cleaning started in May 2018 as a small local business. The lack of quality home cleaning services in her area inspired Ms. Smith to start this business. 

We have successfully served over 1000 customers in the past 3 years. Most of our customers repeatedly hire us. 

Our mission statement is: “Everyone deserves a clean and shining home, we will make it happen for you”.

Anna Cleaning Service offers home cleaning, kitchen cleaning, floor cleaning, and laundry services. Our customers include homeowners, working women, parents with kids who can’t spare time, or new movers. 

Our goal is to first expand to all areas of Detroit city and then to all major cities in Michigan and neighboring states. We are working hard to achieve the first goal within one year and expansion goals within 5 years i.e, before the end of 2027.

Worried about writing a business plan? Hiring a business plan writer can ease your worries and create a strong plan.

Tips for writing a strong company overview for a business plan:.

• Keep it concise: Your company overview should be no more than a few pages long. The goal is to give your readers a high-level overview of your business without overwhelming them with too much detail.
• Your company name and legal structure.
• Your mission statement and vision.
• Your products or services.
• Your target market.
• Your competitive landscape.
• Your management team.
• Your financial projections.
• Proofread carefully: Before you submit your business plan to potential investors or lenders, be sure to proofread your company overview carefully for any errors in grammar or spelling.

 A company overview in a business plan provides a summary of your business, including its mission, vision, goals, and key details such as its legal structure, location, and founding date. It gives readers a snapshot of your business and sets the stage for the rest of the plan.

A company overview should include essential information about your business, such as its name, legal structure, location, industry, target market, unique selling proposition, and competitive advantage. It should also highlight any notable achievements, milestones, or partnerships.

Structure your company overview by starting with a concise mission statement that encapsulates your business’s purpose. Then, provide an overview of your business history, including key milestones and achievements. Finally, outline your business’s unique value proposition and competitive advantage.

A company overview is important in a business plan as it gives readers an understanding of your business’s identity, purpose, and market positioning. It helps investors, lenders, and other stakeholders grasp the essence of your business and its potential for success.

When writing a company overview, focus on presenting a clear and compelling narrative that highlights your business’s strengths, values, and market relevance. Use concise and impactful language, and make sure to tailor the content to your target audience’s needs and interests.

• Focus on your unique selling proposition (USP).
• Be specific and data-driven.
• Write in a clear and engaging style.
• Tell a story.

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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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Great Business Plan Examples That Drive Success

Creating a successful business plan is both an art and a science. A well-crafted plan not only outlines your business’s goals but also lays out a clear roadmap for achieving them. From identifying target markets to detailing financial projections, a strong business plan serves as the foundation for growth, providing direction and attracting potential investors. However, creating such a plan can be challenging, requiring a deep understanding of your industry, precise financial modeling, and the ability to foresee potential challenges.

This is where great business plan examples come into play. By studying proven examples, you can gain insights into what works and avoid common pitfalls. These examples show how to structure your plan, effectively communicate your vision, and back up your ideas with solid data. Using a 10-year financial model template alongside these examples can elevate your plan, offering a detailed, long-term view of your business’s potential, and setting you on the path to success.

Exceptional Business Plan Examples That Inspire Success

Embarking on a new business venture or scaling an existing one necessitates a robust and comprehensive business plan. Crafting an effective business plan is essential as it serves as a blueprint for your company’s growth, helping to communicate your vision and strategy to stakeholders and investors. Whether you’re a seasoned entrepreneur or a newcomer to the business world, examining well-crafted business plan examples can provide invaluable insights and inspiration. Learning from successful businesses that have navigated similar challenges can significantly enhance your planning process, setting you up for long-term accomplishment.

In this article, we will delve into several great business plan examples that have demonstrated remarkable success in their respective industries. These examples will highlight various approaches ranging from visionary startups to social entrepreneurship. By studying these successful business plans, you will be equipped with better tools and strategies to create a compelling blueprint for your own business aspirations. Let’s explore these exceptional business plans and discover what makes them a model worth emulating.

Creating a great business plan is crucial for any new or existing venture looking to succeed. An exceptional business plan not only outlines your vision and strategy but also provides a roadmap for achieving your objectives. Let’s explore some inspirational business plan examples that can serve as models for your own endeavors.

Visionary Startups

Many startups start with a visionary concept that fills a gap in the market. Two standout examples in this category include:

• Airbnb: Initially, Airbnb was founded to help people find short-term lodging in private homes rather than hotels. Their business plan emphasized scalability, targeting urban markets, and user-friendly technology. Today, they highlight community and trust as their core business values.
• Warby Parker: This eyewear company disrupted the traditional glasses market with a direct-to-consumer model. Their plan emphasized social responsibility, offering a pair of glasses to someone in need for every pair sold. Their marketing strategy relied heavily on a strong online presence and innovation in customer service.

Social Entrepreneurship

Business plans for social enterprises often intertwine profit with purpose. Notable examples include:

• Toms: Known for their one-for-one model, Toms has built a business plan around giving back. Their strategies integrate ethical sourcing and sustainable practices with a focus on community upliftment, which resonates remarkably with modern consumers.
• Unreasonable Group: This company’s plan focuses on supporting entrepreneurs who tackle social and environmental challenges. Unreasonable Group combines investment with mentoring, demonstrating a model that prioritizes impactful solutions over mere profits.

Established Enterprises with Innovative Plans

Even well-established companies can inspire with their innovative approaches. Consider the following:

• Google: Their early business plan defined a commitment to excellence in technology and information management. Google continually evolves its strategy, focusing on data-driven decision-making and agility in the face of technological change.
• Apple: Apple’s plan has consistently centered around innovation and user experience. With a strong focus on branding, they managed to create a loyal customer base. Their business strategy combines a premium pricing model with a robust ecosystem of complementary products and services.

Key Components of an Exceptional Business Plan

To stand out, a business plan needs to incorporate several essential components:

• Executive Summary: Offer a snapshot of your business and its potential.
• Market Analysis: Clearly outline your target market and competitor landscape.
• Organization and Management: Highlight your business structure and team qualifications.
• Service or Product Line: Discuss what you’re offering and how it solves a problem.
• Marketing Strategy: Define how you’ll reach your audience and grow your customer base.
• Funding Request: If seeking investment, detail any funding you need to launch or expand.
• Financial Projections: Provide data on expected revenue and expenses to reassure stakeholders.

Technology-Driven Business Models

In today’s fast-paced world, technology-driven businesses often shape their plans to leverage digital tools and platforms. Check out these compelling examples:

• Spotify: By focusing on user experience and a freemium model, Spotify revolutionized how we consume music. Their business plan prioritizes partnerships with artists and measures success through user engagement metrics.
• Slack: Starting as an internal communication tool, Slack’s business plan effectively catered to the growing need for collaboration in remote work. Their plan focuses on integration capabilities and user-friendly features, driving user growth and retention.

Exceptional business plans are not one-size-fits-all; they are tailored to fit the unique needs and goals of the business. By analyzing successful examples and incorporating fundamental elements into your own plan, you position yourself for success. These businesses illustrate that a strong plan can pave the way for growth and transformation, making all the difference in today’s competitive landscape.

Key Components of an Effective Business Plan

Crafting an effective business plan is crucial for anyone looking to launch or grow a business. An impactful plan serves as both a roadmap for the entrepreneur and a tool to attract investors. Focusing on the essential components ensures that the plan is thorough and meets the needs of its intended audience.

Executive Summary

The executive summary is the first impression you make on stakeholders. It should encapsulate your business idea, the problem it solves, and your vision. Aim to make this section engaging yet concise. Typically, it should not exceed two pages. Highlight key points like your mission statement, fundamental financial projections, and details on the management team.

Company Description

In this section, provide an overview of your business. Discuss the type of business structure—such as sole proprietorship, partnership, or corporation. Include information about your business goals, what sets you apart from competitors, and the industries you operate in. Your company description should clearly articulate your business’s mission and vision.

Market Analysis

Perform a thorough analysis of your target market. This includes identifying your target demographics, market trends, and potential barriers to entry. Employ research to provide insights on competitors. Utilizing tools like SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) can be invaluable in assessing where your business fits into the current market landscape.

Marketing Strategy

A well-defined marketing strategy lays the groundwork for how you’ll attract customers. Whether it encompasses traditional advertising, social media, or email campaigns, justify your methods with data. Outline specific marketing tactics, budget allocations, and metrics for measuring success. Decide if you’ll employ a direct sales approach or use distribution channels, and be clear about your positioning strategy.

Organization and Management

This section should detail your business’s organizational structure. Include bios of key team members, their roles, and responsibilities. Highlight relevant experiences and qualifications. A visual organizational chart might be beneficial. Discuss any advisors, consultants, or board members you plan to engage. This section is critical for establishing credibility.

Products or Services

Explain what you are offering consumers. This part should describe your products or services in detail, including their life cycle, features, and benefits. Discuss research and development plans if applicable. Address how your offerings solve customer pain points or fulfill needs, thereby differentiating themselves from competitors.

Funding Request

If you seek external funding, be clear about your needs. Include how much funding you require, how it will be utilized, and your planned repayment strategy. This is where you can specify your financial projections and expected returns for investors. Clarity and specificity in this section can build trust and confidence in potential funders.

Financial Projections

In the financial projections segment, present a detailed projection for at least three to five years. Utilize tables for clarity. This often includes:

• Income statements
• Cash flow statements
• Balance sheets
• Break-even analysis

These figures should align with your funding requests and market analysis. Use realistic assumptions backed by market research.

An appendix is not mandatory but can add value. It provides supplementary information that supports your business plan but may disrupt the flow if included in the main sections. You might include resumes, legal agreements, product images, or additional financial data here. This section acts as a resource that interested readers can refer to for more in-depth insights.

Creating an effective business plan involves meticulously covering these core components. By ensuring each section is thoughtfully prepared with concise information and actionable insights, you lay a solid foundation for your business venture. A clear, well-organized business plan can be the key to not only securing funding but also guiding your business toward long-term success.

Analyzing the Business Plans of Successful Startups

Analyzing the business plans of successful startups reveals significant insights that aspiring entrepreneurs can leverage to build their own ventures. Distilling the essence of these plans not only highlights the critical elements that contribute to a startup’s success but also serves as a blueprint for those embarking on their entrepreneurial journey.

One vital aspect to note in successful business plans is the clear articulation of the business idea. This concept should solve a specific problem or meet a unique need in the market. For instance, consider companies like Airbnb and Uber; both recognized gaps in the market for affordable accommodation and transportation, respectively. They capitalized on existing resources, transforming how people find places to stay and travel around cities. A well-defined business idea should answer the questions:

• What problem does the startup solve?
• Who are the potential customers?
• What makes this solution unique?

The next critical component is the market analysis section. Successful startups invest time in conducting exhaustive research to understand their target audience and market dynamics. For example, a deep dive into competitor analysis allows startups to identify gaps and opportunities in the market. This section must answer key questions such as:

• Who are the main competitors?
• What are the current market trends?
• What is the size of the target market?

Moreover, financial projections play an essential role in business plans. Startups like Slack and Zoom provided realistic and well-structured financial forecasts that outlined their potential revenue streams, costs, and funding needs. These projections should not only show the expected growth over time but also include detailed assumptions that support the financial estimates. Important financial elements include:

• Startup costs
• Revenue streams
• Projected income statements

Another crucial aspect present in the business plans of successful startups is an effective marketing strategy. Startups like Warby Parker utilized innovative marketing approaches, such as leveraging social media and creating referral programs that resonate with their audience. They understood their customer segment and communicated effectively through channels that could reach them. Your marketing strategy should cover:

• Brand positioning
• Marketing channels (digital, offline, etc.)
• Customer acquisition strategies

Furthermore, a solid operational plan demonstrates how a startup intends to deliver its product or service effectively. This section should outline the operational workflow, supply chain logistics, and team structure. Startups such as Tesla are meticulous in detailing their manufacturing and operational processes, showcasing how they maintain quality while scaling production. Important considerations for an operational plan include:

• Key metrics to measure efficiency
• Partnerships and supplier management
• Team roles and responsibilities

The importance of a compelling executive summary cannot be overstated. This section serves as a hook, piquing the interest of investors or stakeholders. An engaging executive summary should encapsulate the startup’s vision, mission, key selling points, and impressive statistics that hint at future success. Think of it as your business’s elevator pitch, succinct yet powerful.

The lessons learned from analyzing the business plans of thriving startups also highlight the significance of adaptability. Companies like Netflix evolved from DVD rentals to becoming a leading streaming service, exemplifying how the ability to pivot based on market trends can lead to sustained success. Entrepreneurs should build flexibility into their business models, allowing them to adapt to changes in consumer preferences or emerging technologies.

Successful business plans share several common characteristics that aspiring entrepreneurs can emulate. By focusing on a clear business idea, conducting thorough market analysis, crafting realistic financial projections, developing effective marketing and operational strategies, and composing an engaging executive summary, one can lay down a solid foundation for a startup. The entrepreneurial landscape is filled with opportunities, and with the right strategies in place, aspiring business owners can navigate it with confidence.

Importance of Customizing Your Business Plan

Every entrepreneur knows that a robust business plan serves as the backbone of a successful venture. However, many overlook the fundamental importance of customizing their business plan. Each business is unique, and a one-size-fits-all approach can lead to missed opportunities and potential pitfalls. Tailoring a business plan to fit specific goals, industry standards, and target audiences is crucial for success.

When you customize your business plan, you ensure that it aligns with your unique vision and objectives. This alignment helps clarify your mission and keeps your team focused and motivated. A strategic, customized approach makes it easier to communicate your vision to stakeholders, investors, and team members, fostering a shared understanding of your goals.

Engaging your target audience is another critical aspect. For instance, if you’re seeking investment, your business plan should speak to potential investors’ interests and concerns. Highlighting your competitive advantage, projected returns, and market positioning will resonate far more than generic data points.

Key Reasons for Customizing Your Business Plan

• Market Relevance: A customized business plan considers current market trends and industry specifics. This relevance can give you an edge over competitors who use outdated or generalized plans.
• Tailored Financial Projections: Altering your financial forecasts to adapt to your unique circumstances enables a more accurate reflection of your potential profitability, operational costs, and cash flow.
• Specific Target Audience: Understanding your audience allows you to modify your messaging, ensuring it aligns with their needs and interests. Whether you’re addressing investors, customers, or partners, this tailored approach builds trust and credibility.
• Flexibility in Strategies: Customization allows for dynamic strategies that can respond quickly to changes in the market or business environment. This flexibility is essential in navigating unforeseen challenges.

Creating a personalized business plan requires a detailed understanding of your industry, competition, and target customer. Research is a vital component, as it offers critical insights into what your audiences value and the existing gaps in the market. Utilizing market intelligence enables you to define your unique selling proposition and the specific needs your product or service can meet.

Components of a Custom Business Plan

Here is a breakdown of essential components you should focus on when customizing your business plan:

• Executive Summary: This should effectively summarize what your business does, your mission, and how you stand out in your sector.
• Market Analysis: Conduct thorough research to identify trends, customer segments, and competitive landscape specifics, ensuring your content reflects real data relevant to your niche.
• Marketing Strategy: Tailor your approach to show how you’ll reach your target audience. Include details about the channels you’ll use, messaging, and customer engagement tactics.
• Operational Plan: Make sure to address how your operations reflect the specific needs of your business model. Outline your daily operations, team organization, and key resources required.
• Financial Projections: Be realistic and reflect your unique business context, factoring in local economic conditions and your operational circumstances.

Moreover, as you tailor your business plan, it’s vital to revisit and revise it regularly. Your business environment is in constant flux, so adjustments should be made to remain relevant. This ongoing customization shows that you are proactive and adaptable, qualities highly valued by investors and stakeholders alike.

Ultimately, a customized business plan serves as a powerful tool that not only communicates your vision but also acts as a roadmap for navigating the complex landscape of entrepreneurship. It encourages resourcefulness and strategic thinking, equipping you for both everyday challenges and long-term planning. Investing the time and effort to create a personalized business plan will set you on the path to realizing your entrepreneurial dreams.

Customizing your business plan is not just beneficial; it’s essential. It creates a clear, actionable strategy that resonates with your target audience and aligns with your unique business objectives. By understanding the importance of a tailored approach, you can position your venture for a successful journey ahead.

How to Present Your Business Plan to Investors

Presenting your business plan to investors is a crucial step in securing the funding you need to launch or grow your business. A well-structured presentation captures their attention and persuades them to take the leap and invest in your vision. Here are some effective strategies for delivering a compelling presentation.

Understand Your Audience

Before you even begin to craft your presentation, take time to learn about your investors. Consider their interests, previous investments, and the sectors they typically fund. Tailoring content to meet their preferences can make a significant difference in how your business plan is received.

Craft a Clear and Engaging Narrative

Every good business plan tells a story. It’s essential to present your business not just as numbers and charts, but as a compelling narrative that showcases your mission and vision. Start with a strong opening that captures attention, such as a personal anecdote or thought-provoking statistic, followed by a logical flow that takes them through your plan. Use the following structure:

• Problem Statement: Define the problem your business aims to solve.
• Solution: Explain how your product or service effectively addresses this problem.
• Market Opportunity: Highlight the size and potential of your target market.
• Competitive Advantage: Discuss what sets your business apart from others in the industry.
• Business Model: Detail how your business will make money.
• Financial Projections: Present your expected revenue, expenses, and profits over the next few years.

Focus on Visual Aids

Your presentation should be visually appealing to keep investors engaged. Use slides that are clear, concise, and not overloaded with information. Employ graphs and charts to illustrate key points, such as market analysis, financial projections, and competitive landscape. Here are some tips for effective visual aids:

• Minimal Text: Use bullet points instead of full sentences to maintain clarity.
• Consistent Design: Stick to a consistent color scheme and font style.
• Incorporate Images: Visuals of your product, service, or team can add a human element to your presentation.

Anticipate Questions

Investors are likely to have questions about your business model and market strategy. Prepare for this by anticipating potential inquiries and formulating clear, concise answers. Consider common questions such as:

• What are the risks associated with your business?
• Who are your main competitors, and how will you capture market share?
• What will you do if your projections do not meet expectations?

Being well-prepared shows investors that you understand your business and the risks involved, boosting their confidence in your ability to manage challenges.

Practice, Practice, Practice

Nothing beats practice when it comes to delivering your presentation. Rehearse multiple times, preferably in front of friends or colleagues who can provide honest feedback. Focus on your pacing, articulation, and body language. Look for ways to make your delivery natural and conversational, rather than robotic or overly rehearsed.

Follow Up After the Presentation

After you’ve delivered your presentation, don’t end the conversation there. A follow-up email expressing gratitude for their time is not just courteous; it reinforces your professionalism. Include a recap of your business plan and any additional information that can support your case. This keeps the dialogue open and shows that you’re genuinely interested in their feedback and engagement.

Presenting your business plan to investors is both an art and a science. A thorough understanding of your audience, a compelling narrative, engaging visuals, and confident delivery can create a strong impression. Remember to prepare for questions and stay proactive in following up. Each of these elements contributes to making your pitch not just successful, but memorable.

Common Mistakes in Business Plans and How to Avoid Them

Creating a business plan is a vital step for any entrepreneur, but it’s easy to make mistakes that can derail the entire process. Understanding the common pitfalls can help you craft a plan that is not only comprehensive but also appealing to investors and stakeholders. Let’s explore some of these common mistakes and how to avoid them.

Overly Ambitious Projections

One of the biggest mistakes people make in a business plan is presenting overly optimistic financial projections. While it’s important to showcase potential growth, unrealistic forecasts can lead to skepticism from investors.

• Research Market Trends: Use real data to support your projections. Analyze industry trends, competitor performance, and economic conditions.
• Be Conservative: It’s better to underpromise and overdeliver. Provide a range of potential outcomes rather than a single, absolute figure.

Neglecting to Address Your Competition

Ignoring the competitive landscape can make your business plan appear naive. It’s crucial to acknowledge competitors and present a strategy for how your business will stand out.

• Conduct a SWOT Analysis: Evaluate your business’s Strengths, Weaknesses, Opportunities, and Threats concerning your competitors.
• Identify Your Unique Selling Proposition (USP): Clearly outline what makes your product or service unique and why customers should choose you over the competition.

Lack of a Clear Marketing Strategy

A business plan that doesn’t outline how you intend to reach your target audience lacks direction. Your marketing strategy should clearly articulate how you will acquire and retain customers.

• Define Your Target Audience: Provide detailed demographics and psychographics of your ideal customers.
• Outline Your Channels: Specify which marketing channels (social media, email, content marketing) you will use to engage with your audience.

Ignoring the Business Model

Another common oversight is not defining a sustainable business model. Investors want to know how you plan to make money.

• Clearly Define Revenue Streams: Identify all potential revenue streams your business will depend upon.
• Explain Your Cost Structure: Provide a breakdown of your costs, including fixed and variable expenses.

Focusing Too Much on the Product

While it’s essential to describe your product or service, focusing solely on its features can detract from the overall business plan. Instead, emphasize customer benefits and value.

• Discuss the Problem You Solve: Focus on how your product resolves a pain point for your customers.
• Include Testimonials or Case Studies: These can help validate your claims and demonstrate the effectiveness of your solution.

Being Vague or Jargon-Heavy

Using jargon or ambiguous language can alienate potential readers of your business plan. Aim for clarity and simplicity to ensure your message is accessible.

• Use Clear Language: Avoid technical terms unless absolutely necessary. If you must use them, explain them clearly.
• Be Specific: Provide details rather than general statements. Instead of saying “we will market aggressively,” specify how you will do that.

Failing to Update the Plan Regularly

A successful business plan is not static. Failing to revise your plan as your business grows can result in an outdated strategy that doesn’t align with current market conditions.

• Schedule Regular Reviews: Set aside time every few months to revisit your business plan and adjust as necessary.
• Seek Feedback: Regularly consult mentors, advisors, or peers for input to ensure your plan remains relevant.

By avoiding these common mistakes, you can create a business plan that not only serves as a roadmap for your venture but also effectively communicates your vision to potential investors and stakeholders. Remember, a well-thought-out business plan increases your chances of success and demonstrates to others that you are serious about your business journey.

The Role of Market Research in Crafting Your Business Plan

Creating a robust business plan requires a thorough understanding of the market landscape. Market research plays a critical role in this process, providing insights that shape every aspect of your business strategy. Whether you’re starting a new venture or seeking to improve an existing one, leveraging market research is key to making informed decisions that align with consumer needs and industry opportunities.

To start, market research helps identify your target audience. Understanding who your customers are is essential for tailoring your products or services. Through surveys, focus groups, and data analysis, you can capture vital information about demographics, preferences, and purchasing behavior. This not only aids in pinpointing your target market but also assists in creating buyer personas that inform marketing strategies.

Consider these benefits of in-depth market research:

• Competitive Analysis: Researching competitors reveals their strengths and weaknesses. By analyzing their marketing strategies, pricing models, and customer feedback, you can uncover gaps in the market and identify opportunities to differentiate your offerings.
• Trend Identification: Trends evolve rapidly in every industry. Regularly conducting market research helps you stay relevant by identifying emerging trends that could shape consumer behavior and preferences.
• Risk Mitigation: Launching a new product or service carries risks, but market research can reduce them. By understanding market conditions, consumer demand, and potential challenges, you can make educated decisions that minimize uncertainties.
• Strategic Planning: Insights gained from market research directly inform your business planning process. From sales forecasts to marketing strategies, having a clear picture of the market landscape ensures your plan is grounded in reality.

Moreover, effective market research informs your product development cycle. Knowing what your consumers want allows you to innovate and refine existing products or services. This feedback loop ensures that you stay ahead of the competition by continuously adapting to consumer needs. For example, if market research shows a growing demand for sustainable products, your business can pivot to meet that demand before competitors even notice.

Utilizing diverse research methods is crucial for a well-rounded perspective. Qualitative research methods, such as interviews and focus groups, provide deep insights into consumer emotions and motivations, while quantitative methods, like surveys, offer numerical data that can confirm or challenge assumptions. By combining these approaches, you create a comprehensive view of the market.

In addition, understanding your industry’s regulatory environment is essential. Regulations can significantly affect how you operate and your plan’s feasibility. A thorough review of legal constraints, industry standards, and economic conditions is critical. Consult industry reports, attend trade shows, and network with other professionals to stay informed about the regulatory landscape.

The timing of your research is also vital. Conducting market research not only before launching but also throughout the business lifecycle keeps you informed about shifts in consumer preferences and competitive dynamics. Regular check-ins can help you adjust strategies in real time and maintain a strong market position.

Including data in your business plan is essential. Market research findings lend credibility to your projections and strategies. When potential investors or stakeholders read your plan, solid data is more compelling than conjecture. Showcasing well-researched statistics can reinforce your business’s viability and growth potential. Presenting your research visually, through charts or graphs, can enhance understanding and engagement.

Think about the long-term implications of your market research. As your business grows, maintaining a relationship with your customers through regular feedback mechanisms is vital. Continuous market research ensures you adapt to changing needs and remain competitive over time.

Market research is not merely a step in the business planning process; it is the foundation that supports every strategic decision. By investing time and resources in understanding the market landscape, you position your business for sustainable growth and success.

Crafting a great business plan is not just a chore; it’s an essential step toward achieving success for your entrepreneurial endeavors. The journey through the exceptional business plan examples provided earlier encourages aspiring entrepreneurs to harness creativity and strategic thinking. Notable companies, exemplified by their comprehensive and inspiring business plans, light the way for new ventures. These examples showcase that a solid foundation built on clear goals, detailed strategies, and realistic financial projections attracts the attention and investment necessary for growth.

An effective business plan comprises several key components that ensure its functionality. It should include an executive summary, a detailed description of the business, market analysis, organizational structure, and financial details. Each section serves a unique purpose but must flow seamlessly from one to the next, weaving together a compelling narrative that highlights the viability of the business idea. By clearly articulating each aspect, entrepreneurs not only clarify their vision for themselves but also make it easier for potential investors to understand and buy into their possibilities.

Analyzing the business plans of successful startups provides invaluable insights. These case studies reveal diverse approaches and diverse industries, offering lessons that can be adapted to any business model. Startups often thrive by recognizing their unique selling propositions and articulating them effectively within their plans. By studying the successes and failures of others, you can avoid common pitfalls and develop techniques that resonate with your target audience.

Customizing your business plan is paramount. A generic plan will not capture the interest of stakeholders, nor will it address the specific challenges or opportunities within an industry or market niche. Personalization fosters connection, whether speaking to potential investors or aligning with the long-term aspirations of your own team. Tailoring your business plan means engaging with the local market dynamics, understanding customer segments, and outlining methods that address their needs. It underscores the unique aspects of your business, setting you apart from competitors vying for the same resources.

Presenting your business plan effectively to investors is another critical factor that can significantly impact your fundraising success. Investors want to see conviction and competence in applicants, so how you sell your business concept is just as important as the content itself. Crafting a compelling narrative, practicing your presentation skills, and anticipating questions leads to a more engaging experience. Visual aids, such as graphs and charts, can enhance understanding while keeping the investor’s attention focused on your key points. Remember that storytelling is powerful, and a well-told journey of your business can leave a lasting impression.

Despite the care taken, many entrepreneurs fall into common traps when drafting their business plans. These pitfalls include neglecting financial projections, overlooking the competitive landscape, or failing to review and revise their plans. Avoiding these mistakes involves diligent research, thorough reviews, and seeking feedback from mentors or industry experts. By continually iterating your plan, you make it more robust and reflective of the realities of your business environment.

The role of market research cannot be overstated in the creation of an effective business plan. Engaging with potential customers, understanding market trends, and gathering competitive intelligence serve as the bedrock for informed decision-making. A business plan grounded in solid research showcases your commitment to understanding the landscape you’re entering and paints a picture that resonates with investors. They want evidence that you’ve done your homework and can anticipate market shifts, customer behaviors, and potential challenges.

Navigating the complex world of business planning requires diligence, creativity, and adaptability. Your business plan is a living document that evolves alongside your business. Keeping it updated and relevant ensures it remains a tool for success rather than a mere formality. By learning from great business plan examples, adhering to key components, customizing for distinct needs, presenting effectively, avoiding common mistakes, and leveraging market research, you’ll be better positioned to drive your startup toward success. Embrace the journey, apply these insights, and turn your vision into a reality. Ultimately, a meticulously crafted business plan serves as your roadmap—guiding you toward the milestones that define your entrepreneurial journey.

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