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What Is a Business Plan?
Understanding business plans, how to write a business plan, common elements of a business plan, the bottom line, business plan: what it is, what's included, and how to write one.
Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.
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A business plan is a document that outlines a company's goals and the strategies to achieve them. It's valuable for both startups and established companies. For startups, a well-crafted business plan is crucial for attracting potential lenders and investors. Established businesses use business plans to stay on track and aligned with their growth objectives. This article will explain the key components of an effective business plan and guidance on how to write one.
Key Takeaways
- A business plan is a document detailing a company's business activities and strategies for achieving its goals.
- Startup companies use business plans to launch their venture and to attract outside investors.
- For established companies, a business plan helps keep the executive team focused on short- and long-term objectives.
- There's no single required format for a business plan, but certain key elements are essential for most companies.
Investopedia / Ryan Oakley
Any new business should have a business plan in place before beginning operations. Banks and venture capital firms often want to see a business plan before considering making a loan or providing capital to new businesses.
Even if a company doesn't need additional funding, having a business plan helps it stay focused on its goals. Research from the University of Oregon shows that businesses with a plan are significantly more likely to secure funding than those without one. Moreover, companies with a business plan grow 30% faster than those that don't plan. According to a Harvard Business Review article, entrepreneurs who write formal plans are 16% more likely to achieve viability than those who don't.
A business plan should ideally be reviewed and updated periodically to reflect achieved goals or changes in direction. An established business moving in a new direction might even create an entirely new plan.
There are numerous benefits to creating (and sticking to) a well-conceived business plan. It allows for careful consideration of ideas before significant investment, highlights potential obstacles to success, and provides a tool for seeking objective feedback from trusted outsiders. A business plan may also help ensure that a company’s executive team remains aligned on strategic action items and priorities.
While business plans vary widely, even among competitors in the same industry, they often share basic elements detailed below.
A well-crafted business plan is essential for attracting investors and guiding a company's strategic growth. It should address market needs and investor requirements and provide clear financial projections.
While there are any number of templates that you can use to write a business plan, it's best to try to avoid producing a generic-looking one. Let your plan reflect the unique personality of your business.
Many business plans use some combination of the sections below, with varying levels of detail, depending on the company.
The length of a business plan can vary greatly from business to business. Regardless, gathering the basic information into a 15- to 25-page document is best. Any additional crucial elements, such as patent applications, can be referenced in the main document and included as appendices.
Common elements in many business plans include:
- Executive summary : This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations.
- Products and services : Describe the products and services the company offers or plans to introduce. Include details on pricing, product lifespan, and unique consumer benefits. Mention production and manufacturing processes, relevant patents , proprietary technology , and research and development (R&D) information.
- Market analysis : Explain the current state of the industry and the competition. Detail where the company fits in, the types of customers it plans to target, and how it plans to capture market share from competitors.
- Marketing strategy : Outline the company's plans to attract and retain customers, including anticipated advertising and marketing campaigns. Describe the distribution channels that will be used to deliver products or services to consumers.
- Financial plans and projections : Established businesses should include financial statements, balance sheets, and other relevant financial information. New businesses should provide financial targets and estimates for the first few years. This section may also include any funding requests.
Investors want to see a clear exit strategy, expected returns, and a timeline for cashing out. It's likely a good idea to provide five-year profitability forecasts and realistic financial estimates.
2 Types of Business Plans
Business plans can vary in format, often categorized into traditional and lean startup plans. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.
- Traditional business plans : These are detailed and lengthy, requiring more effort to create but offering comprehensive information that can be persuasive to potential investors.
- Lean startup business plans : These are concise, sometimes just one page, and focus on key elements. While they save time, companies should be ready to provide additional details if requested by investors or lenders.
Why Do Business Plans Fail?
A business plan isn't a surefire recipe for success. The plan may have been unrealistic in its assumptions and projections. Markets and the economy might change in ways that couldn't have been foreseen. A competitor might introduce a revolutionary new product or service. All this calls for building flexibility into your plan, so you can pivot to a new course if needed.
How Often Should a Business Plan Be Updated?
How frequently a business plan needs to be revised will depend on its nature. Updating your business plan is crucial due to changes in external factors (market trends, competition, and regulations) and internal developments (like employee growth and new products). While a well-established business might want to review its plan once a year and make changes if necessary, a new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.
What Does a Lean Startup Business Plan Include?
The lean startup business plan is ideal for quickly explaining a business, especially for new companies that don't have much information yet. Key sections may include a value proposition , major activities and advantages, resources (staff, intellectual property, and capital), partnerships, customer segments, and revenue sources.
A well-crafted business plan is crucial for any company, whether it's a startup looking for investment or an established business wanting to stay on course. It outlines goals and strategies, boosting a company's chances of securing funding and achieving growth.
As your business and the market change, update your business plan regularly. This keeps it relevant and aligned with your current goals and conditions. Think of your business plan as a living document that evolves with your company, not something carved in stone.
University of Oregon Department of Economics. " Evaluation of the Effectiveness of Business Planning Using Palo Alto's Business Plan Pro ." Eason Ding & Tim Hursey.
Bplans. " Do You Need a Business Plan? Scientific Research Says Yes ."
Harvard Business Review. " Research: Writing a Business Plan Makes Your Startup More Likely to Succeed ."
Harvard Business Review. " How to Write a Winning Business Plan ."
U.S. Small Business Administration. " Write Your Business Plan ."
SCORE. " When and Why Should You Review Your Business Plan? "
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How To Write A Business Plan (2024 Guide)
Updated: Apr 17, 2024, 11:59am
Table of Contents
Brainstorm an executive summary, create a company description, brainstorm your business goals, describe your services or products, conduct market research, create financial plans, bottom line, frequently asked questions.
Every business starts with a vision, which is distilled and communicated through a business plan. In addition to your high-level hopes and dreams, a strong business plan outlines short-term and long-term goals, budget and whatever else you might need to get started. In this guide, we’ll walk you through how to write a business plan that you can stick to and help guide your operations as you get started.
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Drafting the Summary
An executive summary is an extremely important first step in your business. You have to be able to put the basic facts of your business in an elevator pitch-style sentence to grab investors’ attention and keep their interest. This should communicate your business’s name, what the products or services you’re selling are and what marketplace you’re entering.
Ask for Help
When drafting the executive summary, you should have a few different options. Enlist a few thought partners to review your executive summary possibilities to determine which one is best.
After you have the executive summary in place, you can work on the company description, which contains more specific information. In the description, you’ll need to include your business’s registered name , your business address and any key employees involved in the business.
The business description should also include the structure of your business, such as sole proprietorship , limited liability company (LLC) , partnership or corporation. This is the time to specify how much of an ownership stake everyone has in the company. Finally, include a section that outlines the history of the company and how it has evolved over time.
Wherever you are on the business journey, you return to your goals and assess where you are in meeting your in-progress targets and setting new goals to work toward.
Numbers-based Goals
Goals can cover a variety of sections of your business. Financial and profit goals are a given for when you’re establishing your business, but there are other goals to take into account as well with regard to brand awareness and growth. For example, you might want to hit a certain number of followers across social channels or raise your engagement rates.
Another goal could be to attract new investors or find grants if you’re a nonprofit business. If you’re looking to grow, you’ll want to set revenue targets to make that happen as well.
Intangible Goals
Goals unrelated to traceable numbers are important as well. These can include seeing your business’s advertisement reach the general public or receiving a terrific client review. These goals are important for the direction you take your business and the direction you want it to go in the future.
The business plan should have a section that explains the services or products that you’re offering. This is the part where you can also describe how they fit in the current market or are providing something necessary or entirely new. If you have any patents or trademarks, this is where you can include those too.
If you have any visual aids, they should be included here as well. This would also be a good place to include pricing strategy and explain your materials.
This is the part of the business plan where you can explain your expertise and different approach in greater depth. Show how what you’re offering is vital to the market and fills an important gap.
You can also situate your business in your industry and compare it to other ones and how you have a competitive advantage in the marketplace.
Other than financial goals, you want to have a budget and set your planned weekly, monthly and annual spending. There are several different costs to consider, such as operational costs.
Business Operations Costs
Rent for your business is the first big cost to factor into your budget. If your business is remote, the cost that replaces rent will be the software that maintains your virtual operations.
Marketing and sales costs should be next on your list. Devoting money to making sure people know about your business is as important as making sure it functions.
Other Costs
Although you can’t anticipate disasters, there are likely to be unanticipated costs that come up at some point in your business’s existence. It’s important to factor these possible costs into your financial plans so you’re not caught totally unaware.
Business plans are important for businesses of all sizes so that you can define where your business is and where you want it to go. Growing your business requires a vision, and giving yourself a roadmap in the form of a business plan will set you up for success.
How do I write a simple business plan?
When you’re working on a business plan, make sure you have as much information as possible so that you can simplify it to the most relevant information. A simple business plan still needs all of the parts included in this article, but you can be very clear and direct.
What are some common mistakes in a business plan?
The most common mistakes in a business plan are common writing issues like grammar errors or misspellings. It’s important to be clear in your sentence structure and proofread your business plan before sending it to any investors or partners.
What basic items should be included in a business plan?
When writing out a business plan, you want to make sure that you cover everything related to your concept for the business, an analysis of the industry―including potential customers and an overview of the market for your goods or services―how you plan to execute your vision for the business, how you plan to grow the business if it becomes successful and all financial data around the business, including current cash on hand, potential investors and budget plans for the next few years.
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Julia is a writer in New York and started covering tech and business during the pandemic. She also covers books and the publishing industry.
11.4 The Business Plan
Learning objectives.
By the end of this section, you will be able to:
- Describe the different purposes of a business plan
- Describe and develop the components of a brief business plan
- Describe and develop the components of a full business plan
Unlike the brief or lean formats introduced so far, the business plan is a formal document used for the long-range planning of a company’s operation. It typically includes background information, financial information, and a summary of the business. Investors nearly always request a formal business plan because it is an integral part of their evaluation of whether to invest in a company. Although nothing in business is permanent, a business plan typically has components that are more “set in stone” than a business model canvas , which is more commonly used as a first step in the planning process and throughout the early stages of a nascent business. A business plan is likely to describe the business and industry, market strategies, sales potential, and competitive analysis, as well as the company’s long-term goals and objectives. An in-depth formal business plan would follow at later stages after various iterations to business model canvases. The business plan usually projects financial data over a three-year period and is typically required by banks or other investors to secure funding. The business plan is a roadmap for the company to follow over multiple years.
Some entrepreneurs prefer to use the canvas process instead of the business plan, whereas others use a shorter version of the business plan, submitting it to investors after several iterations. There are also entrepreneurs who use the business plan earlier in the entrepreneurial process, either preceding or concurrently with a canvas. For instance, Chris Guillebeau has a one-page business plan template in his book The $100 Startup . 48 His version is basically an extension of a napkin sketch without the detail of a full business plan. As you progress, you can also consider a brief business plan (about two pages)—if you want to support a rapid business launch—and/or a standard business plan.
As with many aspects of entrepreneurship, there are no clear hard and fast rules to achieving entrepreneurial success. You may encounter different people who want different things (canvas, summary, full business plan), and you also have flexibility in following whatever tool works best for you. Like the canvas, the various versions of the business plan are tools that will aid you in your entrepreneurial endeavor.
Business Plan Overview
Most business plans have several distinct sections ( Figure 11.16 ). The business plan can range from a few pages to twenty-five pages or more, depending on the purpose and the intended audience. For our discussion, we’ll describe a brief business plan and a standard business plan. If you are able to successfully design a business model canvas, then you will have the structure for developing a clear business plan that you can submit for financial consideration.
Both types of business plans aim at providing a picture and roadmap to follow from conception to creation. If you opt for the brief business plan, you will focus primarily on articulating a big-picture overview of your business concept.
The full business plan is aimed at executing the vision concept, dealing with the proverbial devil in the details. Developing a full business plan will assist those of you who need a more detailed and structured roadmap, or those of you with little to no background in business. The business planning process includes the business model, a feasibility analysis, and a full business plan, which we will discuss later in this section. Next, we explore how a business plan can meet several different needs.
Purposes of a Business Plan
A business plan can serve many different purposes—some internal, others external. As we discussed previously, you can use a business plan as an internal early planning device, an extension of a napkin sketch, and as a follow-up to one of the canvas tools. A business plan can be an organizational roadmap , that is, an internal planning tool and working plan that you can apply to your business in order to reach your desired goals over the course of several years. The business plan should be written by the owners of the venture, since it forces a firsthand examination of the business operations and allows them to focus on areas that need improvement.
Refer to the business venture throughout the document. Generally speaking, a business plan should not be written in the first person.
A major external purpose for the business plan is as an investment tool that outlines financial projections, becoming a document designed to attract investors. In many instances, a business plan can complement a formal investor’s pitch. In this context, the business plan is a presentation plan, intended for an outside audience that may or may not be familiar with your industry, your business, and your competitors.
You can also use your business plan as a contingency plan by outlining some “what-if” scenarios and exploring how you might respond if these scenarios unfold. Pretty Young Professional launched in November 2010 as an online resource to guide an emerging generation of female leaders. The site focused on recent female college graduates and current students searching for professional roles and those in their first professional roles. It was founded by four friends who were coworkers at the global consultancy firm McKinsey. But after positions and equity were decided among them, fundamental differences of opinion about the direction of the business emerged between two factions, according to the cofounder and former CEO Kathryn Minshew . “I think, naively, we assumed that if we kicked the can down the road on some of those things, we’d be able to sort them out,” Minshew said. Minshew went on to found a different professional site, The Muse , and took much of the editorial team of Pretty Young Professional with her. 49 Whereas greater planning potentially could have prevented the early demise of Pretty Young Professional, a change in planning led to overnight success for Joshua Esnard and The Cut Buddy team. Esnard invented and patented the plastic hair template that he was selling online out of his Fort Lauderdale garage while working a full-time job at Broward College and running a side business. Esnard had hundreds of boxes of Cut Buddies sitting in his home when he changed his marketing plan to enlist companies specializing in making videos go viral. It worked so well that a promotional video for the product garnered 8 million views in hours. The Cut Buddy sold over 4,000 products in a few hours when Esnard only had hundreds remaining. Demand greatly exceeded his supply, so Esnard had to scramble to increase manufacturing and offered customers two-for-one deals to make up for delays. This led to selling 55,000 units, generating $700,000 in sales in 2017. 50 After appearing on Shark Tank and landing a deal with Daymond John that gave the “shark” a 20-percent equity stake in return for $300,000, The Cut Buddy has added new distribution channels to include retail sales along with online commerce. Changing one aspect of a business plan—the marketing plan—yielded success for The Cut Buddy.
Link to Learning
Watch this video of Cut Buddy’s founder, Joshua Esnard, telling his company’s story to learn more.
If you opt for the brief business plan, you will focus primarily on articulating a big-picture overview of your business concept. This version is used to interest potential investors, employees, and other stakeholders, and will include a financial summary “box,” but it must have a disclaimer, and the founder/entrepreneur may need to have the people who receive it sign a nondisclosure agreement (NDA) . The full business plan is aimed at executing the vision concept, providing supporting details, and would be required by financial institutions and others as they formally become stakeholders in the venture. Both are aimed at providing a picture and roadmap to go from conception to creation.
Types of Business Plans
The brief business plan is similar to an extended executive summary from the full business plan. This concise document provides a broad overview of your entrepreneurial concept, your team members, how and why you will execute on your plans, and why you are the ones to do so. You can think of a brief business plan as a scene setter or—since we began this chapter with a film reference—as a trailer to the full movie. The brief business plan is the commercial equivalent to a trailer for Field of Dreams , whereas the full plan is the full-length movie equivalent.
Brief Business Plan or Executive Summary
As the name implies, the brief business plan or executive summary summarizes key elements of the entire business plan, such as the business concept, financial features, and current business position. The executive summary version of the business plan is your opportunity to broadly articulate the overall concept and vision of the company for yourself, for prospective investors, and for current and future employees.
A typical executive summary is generally no longer than a page, but because the brief business plan is essentially an extended executive summary, the executive summary section is vital. This is the “ask” to an investor. You should begin by clearly stating what you are asking for in the summary.
In the business concept phase, you’ll describe the business, its product, and its markets. Describe the customer segment it serves and why your company will hold a competitive advantage. This section may align roughly with the customer segments and value-proposition segments of a canvas.
Next, highlight the important financial features, including sales, profits, cash flows, and return on investment. Like the financial portion of a feasibility analysis, the financial analysis component of a business plan may typically include items like a twelve-month profit and loss projection, a three- or four-year profit and loss projection, a cash-flow projection, a projected balance sheet, and a breakeven calculation. You can explore a feasibility study and financial projections in more depth in the formal business plan. Here, you want to focus on the big picture of your numbers and what they mean.
The current business position section can furnish relevant information about you and your team members and the company at large. This is your opportunity to tell the story of how you formed the company, to describe its legal status (form of operation), and to list the principal players. In one part of the extended executive summary, you can cover your reasons for starting the business: Here is an opportunity to clearly define the needs you think you can meet and perhaps get into the pains and gains of customers. You also can provide a summary of the overall strategic direction in which you intend to take the company. Describe the company’s mission, vision, goals and objectives, overall business model, and value proposition.
Rice University’s Student Business Plan Competition, one of the largest and overall best-regarded graduate school business-plan competitions (see Telling Your Entrepreneurial Story and Pitching the Idea ), requires an executive summary of up to five pages to apply. 51 , 52 Its suggested sections are shown in Table 11.2 .
Section | Description |
---|---|
Company summary | Brief overview (one to two paragraphs) of the problem, solution, and potential customers |
Customer analysis | Description of potential customers and evidence they would purchase product |
Market analysis | Size of market, target market, and share of market |
Product or service | Current state of product in development and evidence it is feasible |
Intellectual property | If applicable, information on patents, licenses, or other IP items |
Competitive differentiation | Describe the competition and your competitive advantage |
Company founders, management team, and/or advisor | Bios of key people showcasing their expertise and relevant experience |
Financials | Projections of revenue, profit, and cash flow for three to five years |
Amount of investment | Funding request and how funds will be used |
Are You Ready?
Create a brief business plan.
Fill out a canvas of your choosing for a well-known startup: Uber, Netflix, Dropbox, Etsy, Airbnb, Bird/Lime, Warby Parker, or any of the companies featured throughout this chapter or one of your choice. Then create a brief business plan for that business. See if you can find a version of the company’s actual executive summary, business plan, or canvas. Compare and contrast your vision with what the company has articulated.
- These companies are well established but is there a component of what you charted that you would advise the company to change to ensure future viability?
- Map out a contingency plan for a “what-if” scenario if one key aspect of the company or the environment it operates in were drastically is altered?
Full Business Plan
Even full business plans can vary in length, scale, and scope. Rice University sets a ten-page cap on business plans submitted for the full competition. The IndUS Entrepreneurs , one of the largest global networks of entrepreneurs, also holds business plan competitions for students through its Tie Young Entrepreneurs program. In contrast, business plans submitted for that competition can usually be up to twenty-five pages. These are just two examples. Some components may differ slightly; common elements are typically found in a formal business plan outline. The next section will provide sample components of a full business plan for a fictional business.
Executive Summary
The executive summary should provide an overview of your business with key points and issues. Because the summary is intended to summarize the entire document, it is most helpful to write this section last, even though it comes first in sequence. The writing in this section should be especially concise. Readers should be able to understand your needs and capabilities at first glance. The section should tell the reader what you want and your “ask” should be explicitly stated in the summary.
Describe your business, its product or service, and the intended customers. Explain what will be sold, who it will be sold to, and what competitive advantages the business has. Table 11.3 shows a sample executive summary for the fictional company La Vida Lola.
Executive Summary Component | Content |
---|---|
The Concept | La Vida Lola is a food truck serving the best Latin American and Caribbean cuisine in the Atlanta region, particularly Puerto Rican and Cuban dishes, with a festive flair. La Vida Lola offers freshly prepared dishes from the mobile kitchen of the founding chef and namesake Lola González, a Duluth, Georgia, native who has returned home to launch her first venture after working under some of the world’s top chefs. La Vida Lola will cater to festivals, parks, offices, community and sporting events, and breweries throughout the region. |
Market Advantage | Latin food packed with flavor and flair is the main attraction of La Vida Lola. Flavors steeped in Latin American and Caribbean culture can be enjoyed from a menu featuring street foods, sandwiches, and authentic dishes from the González family’s Puerto Rican and Cuban roots. craving ethnic food experiences and are the primary customers, but anyone with a taste for delicious homemade meals in Atlanta can order. Having a native Atlanta-area resident returning to her hometown after working in restaurants around the world to share food with area communities offers a competitive advantage for La Vida Lola in the form of founding chef Lola González. |
Marketing | The venture will adopt a concentrated marketing strategy. The company’s promotion mix will comprise a mix of advertising, sales promotion, public relations, and personal selling. Much of the promotion mix will center around dual-language social media. |
Venture Team | The two founding members of the management team have almost four decades of combined experience in the restaurant and hospitality industries. Their background includes experience in food and beverage, hospitality and tourism, accounting, finance, and business creation. |
Capital Requirements | La Vida Lola is seeking startup capital of $50,000 to establish its food truck in the Atlanta area. An additional $20,000 will be raised through a donations-driven crowdfunding campaign. The venture can be up and running within six months to a year. |
Business Description
This section describes the industry, your product, and the business and success factors. It should provide a current outlook as well as future trends and developments. You also should address your company’s mission, vision, goals, and objectives. Summarize your overall strategic direction, your reasons for starting the business, a description of your products and services, your business model, and your company’s value proposition. Consider including the Standard Industrial Classification/North American Industry Classification System (SIC/NAICS) code to specify the industry and insure correct identification. The industry extends beyond where the business is located and operates, and should include national and global dynamics. Table 11.4 shows a sample business description for La Vida Lola.
Business Description | La Vida Lola will operate in the mobile food services industry, which is identified by SIC code 5812 Eating Places and NAICS code 722330 Mobile Food Services, which consist of establishments primarily engaged in preparing and serving meals and snacks for immediate consumption from motorized vehicles or nonmotorized carts. Ethnically inspired to serve a consumer base that craves more spiced Latin foods, La Vida Lola is an Atlanta-area food truck specializing in Latin cuisine, particularly Puerto Rican and Cuban dishes native to the roots of the founding chef and namesake, Lola González. La Vida Lola aims to spread a passion for Latin cuisine within local communities through flavorful food freshly prepared in a region that has embraced international eats. Through its mobile food kitchen, La Vida Lola plans to roll into parks, festivals, office buildings, breweries, and sporting and community events throughout the greater Atlanta metropolitan region. Future growth possibilities lie in expanding the number of food trucks, integrating food delivery on demand, and adding a food stall at an area food market. After working in noted restaurants for a decade, most recently under the famed chef José Andrés, chef Lola González returned to her hometown of Duluth, Georgia, to start her own venture. Although classically trained by top world chefs, it was González’s grandparents’ cooking of authentic Puerto Rican and Cuban dishes in their kitchen that influenced her profoundly. The freshest ingredients from the local market, the island spices, and her attention to detail were the spark that ignited Lola’s passion for cooking. To that end, she brings flavors steeped in Latin American and Caribbean culture to a flavorful menu packed full of street foods, sandwiches, and authentic dishes. Through reasonably priced menu items, La Vida Lola offers food that appeals to a wide range of customers, from millennial foodies to Latin natives and other locals with Latin roots. |
Industry Analysis and Market Strategies
Here you should define your market in terms of size, structure, growth prospects, trends, and sales potential. You’ll want to include your TAM and forecast the SAM . (Both these terms are discussed in Conducting a Feasibility Analysis .) This is a place to address market segmentation strategies by geography, customer attributes, or product orientation. Describe your positioning relative to your competitors’ in terms of pricing, distribution, promotion plan, and sales potential. Table 11.5 shows an example industry analysis and market strategy for La Vida Lola.
Industry Analysis and Market Strategy | According to ’ first annual report from the San Francisco-based Off The Grid, a company that facilitates food markets nationwide, the US food truck industry alone is projected to grow by nearly 20 percent from $800 million in 2017 to $985 million in 2019. Meanwhile, an report shows the street vendors’ industry with a 4.2 percent annual growth rate to reach $3.2 billion in 2018. Food truck and street food vendors are increasingly investing in specialty, authentic ethnic, and fusion food, according to the report. Although the report projects demand to slow down over the next five years, it notes there are still opportunities for sustained growth in major metropolitan areas. The street vendors industry has been a particular bright spot within the larger food service sector. The industry is in a growth phase of its life cycle. The low overhead cost to set up a new establishment has enabled many individuals, especially specialty chefs looking to start their own businesses, to own a food truck in lieu of opening an entire restaurant. Off the Grid’s annual report indicates the average typical initial investment ranges from $55,000 to $75,000 to open a mobile food truck. The restaurant industry accounts for $800 billion in sales nationwide, according to data from the National Restaurant Association. Georgia restaurants brought in a total of $19.6 billion in 2017, according to figures from the Georgia Restaurant Association. There are approximately 12,000 restaurants in the metro Atlanta region. The Atlanta region accounts for almost 60 percent of the Georgia restaurant industry. The SAM is estimated to be approximately $360 million. The mobile food/street vendor industry can be segmented by types of customers, types of cuisine (American, desserts, Central and South American, Asian, mixed ethnicity, Greek Mediterranean, seafood), geographic location and types (mobile food stands, mobile refreshment stands, mobile snack stands, street vendors of food, mobile food concession stands). Secondary competing industries include chain restaurants, single location full-service restaurants, food service contractors, caterers, fast food restaurants, and coffee and snack shops. The top food truck competitors according to the , the daily newspaper in La Vida Lola’s market, are Bento Bus, Mix’d Up Burgers, Mac the Cheese, The Fry Guy, and The Blaxican. Bento Bus positions itself as a Japanese-inspired food truck using organic ingredients and dispensing in eco-friendly ware. The Blaxican positions itself as serving what it dubs “Mexican soul food,” a fusion mashup of Mexican food with Southern comfort food. After years of operating a food truck, The Blaxican also recently opened its first brick-and-mortar restaurant. The Fry Guy specializes in Belgian-style street fries with a variety of homemade dipping sauces. These three food trucks would be the primary competition to La Vida Lola, since they are in the “ethnic food” space, while the other two offer traditional American food. All five have established brand identities and loyal followers/customers since they are among the industry leaders as established by “best of” lists from area publications like the . Most dishes from competitors are in the $10–$13 price range for entrees. La Vida Lola dishes will range from $6 to $13. One key finding from Off the Grid’s report is that mobile food has “proven to be a powerful vehicle for catalyzing diverse entrepreneurship” as 30 percent of mobile food businesses are immigrant owned, 30 percent are women owned, and 8 percent are LGBTQ owned. In many instances, the owner-operator plays a vital role to the brand identity of the business as is the case with La Vida Lola. Atlanta has also tapped into the nationwide trend of food hall-style dining. These food halls are increasingly popular in urban centers like Atlanta. On one hand, these community-driven areas where food vendors and retailers sell products side by side are secondary competitors to food trucks. But they also offer growth opportunities for future expansion as brands solidify customer support in the region. The most popular food halls in Atlanta are Ponce City Market in Midtown, Krog Street Market along the BeltLine trail in the Inman Park area, and Sweet Auburn Municipal Market downtown Atlanta. In addition to these trends, Atlanta has long been supportive of international cuisine as Buford Highway (nicknamed “BuHi”) has a reputation for being an eclectic food corridor with an abundance of renowned Asian and Hispanic restaurants in particular. The Atlanta region is home to a thriving Hispanic and Latinx population, with nearly half of the region’s foreign-born population hailing from Latin America. There are over half a million Hispanic and Latin residents living in metro Atlanta, with a 150 percent population increase predicted through 2040. The median age of metro Atlanta Latinos is twenty-six. La Vida Lola will offer authentic cuisine that will appeal to this primary customer segment. La Vida Lola must contend with regulations from towns concerning operations of mobile food ventures and health regulations, but the Atlanta region is generally supportive of such operations. There are many parks and festivals that include food truck vendors on a weekly basis. |
Competitive Analysis
The competitive analysis is a statement of the business strategy as it relates to the competition. You want to be able to identify who are your major competitors and assess what are their market shares, markets served, strategies employed, and expected response to entry? You likely want to conduct a classic SWOT analysis (Strengths Weaknesses Opportunities Threats) and complete a competitive-strength grid or competitive matrix. Outline your company’s competitive strengths relative to those of the competition in regard to product, distribution, pricing, promotion, and advertising. What are your company’s competitive advantages and their likely impacts on its success? The key is to construct it properly for the relevant features/benefits (by weight, according to customers) and how the startup compares to incumbents. The competitive matrix should show clearly how and why the startup has a clear (if not currently measurable) competitive advantage. Some common features in the example include price, benefits, quality, type of features, locations, and distribution/sales. Sample templates are shown in Figure 11.17 and Figure 11.18 . A competitive analysis helps you create a marketing strategy that will identify assets or skills that your competitors are lacking so you can plan to fill those gaps, giving you a distinct competitive advantage. When creating a competitor analysis, it is important to focus on the key features and elements that matter to customers, rather than focusing too heavily on the entrepreneur’s idea and desires.
Operations and Management Plan
In this section, outline how you will manage your company. Describe its organizational structure. Here you can address the form of ownership and, if warranted, include an organizational chart/structure. Highlight the backgrounds, experiences, qualifications, areas of expertise, and roles of members of the management team. This is also the place to mention any other stakeholders, such as a board of directors or advisory board(s), and their relevant relationship to the founder, experience and value to help make the venture successful, and professional service firms providing management support, such as accounting services and legal counsel.
Table 11.6 shows a sample operations and management plan for La Vida Lola.
Operations and Management Plan Category | Content |
---|---|
Key Management Personnel | The key management personnel consist of Lola González and Cameron Hamilton, who are longtime acquaintances since college. The management team will be responsible for funding the venture as well as securing loans to start the venture. The following is a summary of the key personnel backgrounds. Chef Lola González has worked directly in the food service industry for fifteen years. While food has been a lifelong passion learned in her grandparents’ kitchen, chef González has trained under some of the top chefs in the world, most recently having worked under the James Beard Award-winning chef José Andrés. A native of Duluth, Georgia, chef González also has an undergraduate degree in food and beverage management. Her value to the firm is serving as “the face” and company namesake, preparing the meals, creating cuisine concepts, and running the day-to-day operations of La Vida Lola. Cameron Hamilton has worked in the hospitality industry for over twenty years and is experienced in accounting and finance. He has a master of business administration degree and an undergraduate degree in hospitality and tourism management. He has opened and managed several successful business ventures in the hospitality industry. His value to the firm is in business operations, accounting, and finance. |
Advisory Board | During the first year of operation, the company intends to keep a lean operation and does not plan to implement an advisory board. At the end of the first year of operation, the management team will conduct a thorough review and discuss the need for an advisory board. |
Supporting Professionals | Stephen Ngo, Certified Professional Accountant (CPA), of Valdosta, Georgia, will provide accounting consulting services. Joanna Johnson, an attorney and friend of chef González, will provide recommendations regarding legal services and business formation. |
Marketing Plan
Here you should outline and describe an effective overall marketing strategy for your venture, providing details regarding pricing, promotion, advertising, distribution, media usage, public relations, and a digital presence. Fully describe your sales management plan and the composition of your sales force, along with a comprehensive and detailed budget for the marketing plan. Table 11.7 shows a sample marketing plan for La Vida Lola.
Marketing Plan Category | Content |
---|---|
Overview | La Vida Lola will adopt a concentrated marketing strategy. The company’s promotion mix will include a mix of advertising, sales promotion, public relations, and personal selling. Given the target millennial foodie audience, the majority of the promotion mix will be centered around social media platforms. Various social media content will be created in both Spanish and English. The company will also launch a crowdfunding campaign on two crowdfunding platforms for the dual purpose of promotion/publicity and fundraising. |
Advertising and Sales Promotion | As with any crowdfunding social media marketing plan, the first place to begin is with the owners’ friends and family. Utilizing primarily Facebook/Instagram and Twitter, La Vida Lola will announce the crowdfunding initiative to their personal networks and prevail upon these friends and family to share the information. Meanwhile, La Vida Lola needs to focus on building a community of backers and cultivating the emotional draw of becoming part of the La Vida Lola family. To build a crowdfunding community via social media, La Vida Lola will routinely share its location, daily if possible, on both Facebook, Instagram, and Twitter. Inviting and encouraging people to visit and sample their food can rouse interest in the cause. As the campaign is nearing its goal, it would be beneficial to offer a free food item to backers of a specific level, say $50, on one specific day. Sharing this via social media in the day or two preceding the giveaway and on the day of can encourage more backers to commit. Weekly updates of the campaign and the project as a whole are a must. Facebook and Twitter updates of the project coupled with educational information sharing helps backers feel part of the La Vida Lola community. Finally, at every location where La Vida Lola is serving its food, signage will notify the public of their social media presence and the current crowdfunding campaign. Each meal will be accompanied by an invitation from the server for the patron to visit the crowdfunding site and consider donating. Business cards listing the social media and crowdfunding information will be available in the most visible location, likely the counter. Before moving forward with launching a crowdfunding campaign, La Vida Lola will create its website. The website is a great place to establish and share the La Vida Lola brand, vision, videos, menus, staff, and events. It is also a great source of information for potential backers who are unsure about donating to the crowdfunding campaigns. The website will include these elements: . Address the following questions: Who are you? What are the guiding principles of La Vida Lola? How did the business get started? How long has La Vida Lola been in business? Include pictures of chef González. List of current offerings with prices. Will include promotional events and locations where customers can find the truck for different events. Steps will be taken to increase social media followers prior to launching the crowdfunding campaign. Unless a large social media following is already established, a business should aggressively push social media campaigns a minimum of three months prior to the crowdfunding campaign launch. Increasing social media following prior to the campaign kickoff will also allow potential donors to learn more about La Vida Lola and foster relationship building before attempting to raise funds. |
Facebook Content and Advertising | The key piece of content will be the campaign pitch video, reshared as a native Facebook upload. A link to the crowdfunding campaigns can be included in the caption. Sharing the same high-quality video published on the campaign page will entice fans to visit Kickstarter to learn more about the project and rewards available to backers. |
Crowdfunding Campaigns | Foodstart was created just for restaurants, breweries, cafés, food trucks, and other food businesses, and allows owners to raise money in small increments. It is similar to Indiegogo in that it offers both flexible and fixed funding models and charges a percentage for successful campaigns, which it claims to be the lowest of any crowdfunding platform. It uses a reward-based system rather than equity, where backers are offered rewards or perks resulting in “low-cost capital and a network of people who now have an incentive to see you succeed.” Foodstart will host La Vida Lola’s crowdfunding campaigns for the following reasons: (1) It caters to their niche market; (2) it has less competition from other projects which means that La Vida Lola will stand out more and not get lost in the shuffle; and (3) it has/is making a name/brand for itself which means that more potential backers are aware of it. La Vida Lola will run a simultaneous crowdfunding campaign on Indiegogo, which has broader mass appeal. |
Publicity | Social media can be a valuable marketing tool to draw people to the Foodstarter and Indiegogo crowdfunding pages. It provides a means to engage followers and keep funders/backers updated on current fundraising milestones. The first order of business is to increase La Vida Lola’s social media presence on Facebook, Instagram, and Twitter. Establishing and using a common hashtag such as #FundLola across all platforms will promote familiarity and searchability, especially within Instagram and Twitter. Hashtags are slowly becoming a presence on Facebook. The hashtag will be used in all print collateral. La Vida Lola will need to identify social influencers—others on social media who can assist with recruiting followers and sharing information. Existing followers, family, friends, local food providers, and noncompetitive surrounding establishments should be called upon to assist with sharing La Vida Lola’s brand, mission, and so on. Cross-promotion will further extend La Vida Lola’s social reach and engagement. Influencers can be called upon to cross promote upcoming events and specials. The crowdfunding strategy will utilize a progressive reward-based model and establish a reward schedule such as the following: In addition to the publicity generated through social media channels and the crowdfunding campaign, La Vida Lola will reach out to area online and print publications (both English- and Spanish-language outlets) for feature articles. Articles are usually teased and/or shared via social media. Reaching out to local broadcast stations (radio and television) may provide opportunities as well. La Vida Lola will recruit a social media intern to assist with developing and implementing a social media content plan. Engaging with the audience and responding to all comments and feedback is important for the success of the campaign. Some user personas from segmentation to target in the campaign: |
Financial Plan
A financial plan seeks to forecast revenue and expenses; project a financial narrative; and estimate project costs, valuations, and cash flow projections. This section should present an accurate, realistic, and achievable financial plan for your venture (see Entrepreneurial Finance and Accounting for detailed discussions about conducting these projections). Include sales forecasts and income projections, pro forma financial statements ( Building the Entrepreneurial Dream Team , a breakeven analysis, and a capital budget. Identify your possible sources of financing (discussed in Conducting a Feasibility Analysis ). Figure 11.19 shows a template of cash-flow needs for La Vida Lola.
Entrepreneur In Action
Laughing man coffee.
Hugh Jackman ( Figure 11.20 ) may best be known for portraying a comic-book superhero who used his mutant abilities to protect the world from villains. But the Wolverine actor is also working to make the planet a better place for real, not through adamantium claws but through social entrepreneurship.
A love of java jolted Jackman into action in 2009, when he traveled to Ethiopia with a Christian humanitarian group to shoot a documentary about the impact of fair-trade certification on coffee growers there. He decided to launch a business and follow in the footsteps of the late Paul Newman, another famous actor turned philanthropist via food ventures.
Jackman launched Laughing Man Coffee two years later; he sold the line to Keurig in 2015. One Laughing Man Coffee café in New York continues to operate independently, investing its proceeds into charitable programs that support better housing, health, and educational initiatives within fair-trade farming communities. 55 Although the New York location is the only café, the coffee brand is still distributed, with Keurig donating an undisclosed portion of Laughing Man proceeds to those causes (whereas Jackman donates all his profits). The company initially donated its profits to World Vision, the Christian humanitarian group Jackman accompanied in 2009. In 2017, it created the Laughing Man Foundation to be more active with its money management and distribution.
- You be the entrepreneur. If you were Jackman, would you have sold the company to Keurig? Why or why not?
- Would you have started the Laughing Man Foundation?
- What else can Jackman do to aid fair-trade practices for coffee growers?
What Can You Do?
Textbooks for change.
Founded in 2014, Textbooks for Change uses a cross-compensation model, in which one customer segment pays for a product or service, and the profit from that revenue is used to provide the same product or service to another, underserved segment. Textbooks for Change partners with student organizations to collect used college textbooks, some of which are re-sold while others are donated to students in need at underserved universities across the globe. The organization has reused or recycled 250,000 textbooks, providing 220,000 students with access through seven campus partners in East Africa. This B-corp social enterprise tackles a problem and offers a solution that is directly relevant to college students like yourself. Have you observed a problem on your college campus or other campuses that is not being served properly? Could it result in a social enterprise?
Work It Out
Franchisee set out.
A franchisee of East Coast Wings, a chain with dozens of restaurants in the United States, has decided to part ways with the chain. The new store will feature the same basic sports-bar-and-restaurant concept and serve the same basic foods: chicken wings, burgers, sandwiches, and the like. The new restaurant can’t rely on the same distributors and suppliers. A new business plan is needed.
- What steps should the new restaurant take to create a new business plan?
- Should it attempt to serve the same customers? Why or why not?
This New York Times video, “An Unlikely Business Plan,” describes entrepreneurial resurgence in Detroit, Michigan.
- 48 Chris Guillebeau. The $100 Startup: Reinvent the Way You Make a Living, Do What You Love, and Create a New Future . New York: Crown Business/Random House, 2012.
- 49 Jonathan Chan. “What These 4 Startup Case Studies Can Teach You about Failure.” Foundr.com . July 12, 2015. https://foundr.com/4-startup-case-studies-failure/
- 50 Amy Feldman. “Inventor of the Cut Buddy Paid YouTubers to Spark Sales. He Wasn’t Ready for a Video to Go Viral.” Forbes. February 15, 2017. https://www.forbes.com/sites/forbestreptalks/2017/02/15/inventor-of-the-cut-buddy-paid-youtubers-to-spark-sales-he-wasnt-ready-for-a-video-to-go-viral/#3eb540ce798a
- 51 Jennifer Post. “National Business Plan Competitions for Entrepreneurs.” Business News Daily . August 30, 2018. https://www.businessnewsdaily.com/6902-business-plan-competitions-entrepreneurs.html
- 52 “Rice Business Plan Competition, Eligibility Criteria and How to Apply.” Rice Business Plan Competition . March 2020. https://rbpc.rice.edu/sites/g/files/bxs806/f/2020%20RBPC%20Eligibility%20Criteria%20and%20How%20to%20Apply_23Oct19.pdf
- 53 “Rice Business Plan Competition, Eligibility Criteria and How to Apply.” Rice Business Plan Competition. March 2020. https://rbpc.rice.edu/sites/g/files/bxs806/f/2020%20RBPC%20Eligibility%20Criteria%20and%20How%20to%20Apply_23Oct19.pdf; Based on 2019 RBPC Competition Rules and Format April 4–6, 2019. https://rbpc.rice.edu/sites/g/files/bxs806/f/2019-RBPC-Competition-Rules%20-Format.pdf
- 54 Foodstart. http://foodstart.com
- 55 “Hugh Jackman Journey to Starting a Social Enterprise Coffee Company.” Giving Compass. April 8, 2018. https://givingcompass.org/article/hugh-jackman-journey-to-starting-a-social-enterprise-coffee-company/
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Free PDF Business Plan Templates and Samples
By Joe Weller | September 9, 2020
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We’ve gathered the most useful collection of business plan PDF templates and samples, including options for organizations of any size and type.
On this page, you’ll find free PDF templates for a simple business plan , small business plan , startup business plan , and more.
Simple Business Plan PDF Templates
These simple business plan PDF templates are ready to use and customizable to fit the needs of any organization.
Simple Business Plan Template PDF
This template contains a traditional business plan layout to help you map out each aspect, from a company overview to sales projections and a marketing strategy. This template includes a table of contents, as well as space for financing details that startups looking for funding may need to provide.
Download Simple Business Plan Template - PDF
Lean Business Plan Template PDF
This scannable business plan template allows you to easily identify the most important elements of your plan. Use this template to outline key details pertaining to your business and industry, product or service offerings, target customer segments (and channels to reach them), and to identify sources of revenue. There is also space to include key performance metrics and a timeline of activities.
Download Lean Business Plan Template - PDF
Simple 30-60-90 Day Business Plan Template PDF
This template is designed to help you develop and implement a 90-day business plan by breaking it down into manageable chunks of time. Use the space provided to detail your main goals and deliverables for each timeframe, and then add the steps necessary to achieve your objectives. Assign task ownership and enter deadlines to ensure your plan stays on track every step of the way.
Download Simple 30-60-90 Day Business Plan Template
PDF | Smartsheet
One-Page Business Plan PDF Templates
The following single page business plan templates are designed to help you download your key ideas on paper, and can be used to create a pitch document to gain buy-in from partners, investors, and stakeholders.
One-Page Business Plan Template PDF
Use this one-page template to summarize each aspect of your business concept in a clear and concise manner. Define the who, what, why, and how of your idea, and use the space at the bottom to create a SWOT analysis (strengths, weaknesses, opportunities, and threats) for your business.
Download One-Page Business Plan Template
If you’re looking for a specific type of analysis, check out our collection of SWOT templates .
One-Page Lean Business Plan PDF
This one-page business plan template employs the Lean management concept, and encourages you to focus on the key assumptions of your business idea. A Lean plan is not stagnant, so update it as goals and objectives change — the visual timeline at the bottom is ideal for detailing milestones.
Download One-Page Lean Business Plan Template - PDF
One-Page 30-60-90 Day Business Plan Template
Use this business plan template to identify main goals and outline the necessary activities to achieve those goals in 30, 60, and 90-day increments. Easily customize this template to fit your needs while you track the status of each task and goal to keep your business plan on target.
Download One-Page 30-60-90 Day Business Plan Template
For additional single page plans, including an example of a one-page business plan , visit " One-Page Business Plan Templates with a Quick How-To Guide ."
Small Business Plan PDF Templates
These business plan templates are useful for small businesses that want to map out a way to meet organizational objectives, including how to structure, operate, and expand their business.
Simple Small Business Plan Template PDF
A small business can use this template to outline each critical component of a business plan. There is space to provide details about product or service offerings, target audience, customer reach strategy, competitive advantage, and more. Plus, there is space at the bottom of the document to include a SWOT analysis. Once complete, you can use the template as a basis to build out a more elaborate plan.
Download Simple Small Business Plan Template
Fill-In-the-Blank Small Business Plan Template PDF
This fill-in-the-blank template walks you through each section of a business plan. Build upon the fill-in-the-blank content provided in each section to add information about your company, business idea, market analysis, implementation plan, timeline of milestones, and much more.
Download Fill-In-the-Blank Small Business Plan Template - PDF
One-Page Small Business Plan Template PDF
Use this one-page template to create a scannable business plan that highlights the most essential parts of your organization’s strategy. Provide your business overview and management team details at the top, and then outline the target market, market size, competitive offerings, key objectives and success metrics, financial plan, and more.
Download One-Page Business Plan for Small Business - PDF
Startup Business Plan PDF Templates
Startups can use these business plan templates to check the feasibility of their idea, and articulate their vision to potential investors.
Startup Business Plan Template
Use this business plan template to organize and prepare each essential component of your startup plan. Outline key details relevant to your concept and organization, including your mission and vision statement, product or services offered, pricing structure, marketing strategy, financial plan, and more.
Download Startup Business Plan Template
Sample 30-60-90 Day Business Plan for Startup
Startups can use this sample 30-60-90 day plan to establish main goals and deliverables spanning a 90-day period. Customize the sample goals, deliverables, and activities provided on this template according to the needs of your business. Then, assign task owners and set due dates to help ensure your 90-day plan stays on track.
Download Sample 30-60-90 Day Business Plan for Startup Template
For additional resources to create your plan, visit “ Free Startup Business Plan Templates and Examples .”
Nonprofit Business Plan PDF Templates
Use these business plan PDF templates to outline your organization’s mission, your plan to make a positive impact in your community, and the steps you will take to achieve your nonprofit’s goals.
Nonprofit Business Plan Template PDF
Use this customizable PDF template to develop a plan that details your organization’s purpose, objectives, and strategy. This template features a table of contents, with room to include your nonprofit’s mission and vision, key team and board members, program offerings, a market and industry analysis, promotional plan, financial plan, and more. This template also contains a visual timeline to display historic and future milestones.
Download Nonprofit Business Plan Template - PDF
One-Page Business Plan for Nonprofit Organization PDF
This one-page plan serves as a good starting point for established and startup nonprofit organizations to jot down their fundamental goals and objectives. This template contains all the essential aspects of a business plan in a concise and scannable format, including the organizational overview, purpose, promotional plan, key objectives and success metrics, fundraising goals, and more.
Download One-Page Business Plan for Nonprofit Organization Template - PDF
Fill-In-the-Blank Business Plan PDF Templates
Use these fill-in-the-blank templates as a foundation for creating a comprehensive roadmap that aligns your business strategy with your marketing, sales, and financial goals.
Simple Fill-In-the-Blank Business Plan PDF
The fill-in-the-blank template contains all the vital parts of a business plan, with sample content that you can customize to fit your needs. There is room to include an executive summary, business description, market analysis, marketing plan, operations plan, financial statements, and more.
Download Simple Fill-In-the-Blank Business Plan Template - PDF
Lean Fill-In-the-Blank Business Plan PDF
This business plan is designed with a Lean approach that encourages you to clarify and communicate your business idea in a clear and concise manner. This single page fill-in-the-blank template includes space to provide details about your management team, the problem you're solving, the solution, target customers, cost structure, and revenue streams. Use the timeline at the bottom to produce a visual illustration of key milestones.
Download Fill-In-the-Blank Lean Business Plan Template - PDF
For additional resources, take a look at " Free Fill-In-the-Blank Business Plan Templates ."
Sample Business Plan PDF Templates
These sample business plan PDF templates can help you to develop an organized, thorough, and professional business plan.
Business Plan Sample
This business plan example demonstrates a plan for a fictional food truck company. The sample includes all of the elements in a traditional business plan, which makes it a useful starting point for developing a plan specific to your business needs.
Download Basic Business Plan Sample - PDF
Sample Business Plan Outline Template
Use this sample outline as a starting point for your business plan. Shorten or expand the outline depending on your organization’s needs, and use it to develop a table of contents for your finalized plan.
Download Sample Business Plan Outline Template - PDF
Sample Business Financial Plan Template
Use this sample template to develop the financial portion of your business plan. The template provides space to include a financial overview, key assumptions, financial indicators, and business ratios. Complete the break-even analysis and add your financial statements to help prove the viability of your organization’s business plan.
Download Business Financial Plan Template
PDF | Smartsheet
For more free, downloadable templates for all aspects of your business, check out “ Free Business Templates for Organizations of All Sizes .”
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How to Write a Business Plan for a Small Business
Noah Parsons
24 min. read
Updated September 2, 2024
Writing a business plan doesn’t have to be complicated.
In this step-by-step guide, you’ll learn how to write a business plan that’s detailed enough to impress bankers and potential investors, while giving you the tools to start, run, and grow a successful business.
- The basics of writing a business plan
If you’re reading this guide, then you already know why you need a business plan .
You understand that writing a business plan helps you:
- Raise money
- Grow strategically
- Keep your business on the right track
As you start to write your business plan, it’s useful to zoom out and remember what a business plan is .
At its core, a business plan is an overview of the products and services you sell, and the customers that you sell to. It explains your business strategy: how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.
Most business plans also include financial forecasts for the future. These set sales goals, budget for expenses, and predict profits and cash flow.
A good business plan is much more than just a document that you write once and forget about. It’s also a guide that helps you outline and achieve your goals.
After writing your business plan, you can use it as a management tool to track your progress toward your goals. Updating and adjusting your forecasts and budgets as you go is one of the most important steps you can take to run a healthier, smarter business.
We’ll dive into how to use your plan later in this article.
There are many different types of plans , but we’ll go over the most common type here, which includes everything you need for an investor-ready plan. However, if you’re just starting out and are looking for something simpler—I recommend starting with a one-page business plan . It’s faster and easier to create.
It’s also the perfect place to start if you’re just figuring out your idea, or need a simple strategic plan to use inside your business.
Dig deeper : How to write a one-page business plan
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- What to include in your business plan
Executive summary
The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally just one to two pages. Most people write it last because it’s a summary of the complete business plan.
Ideally, the executive summary can act as a stand-alone document that covers the highlights of your detailed plan.
In fact, it’s common for investors to ask only for the executive summary when evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation , or more in-depth financial forecasts .
Your executive summary should include:
- A summary of the problem you are solving
- A description of your product or service
- An overview of your target market
- A brief description of your team
- A summary of your financials
- Your funding requirements (if you are raising money)
Dig Deeper: How to write an effective executive summary
Products and services description
When writing a business plan, the produces and services section is where you describe exactly what you’re selling, and how it solves a problem for your target market. The best way to organize this part of your plan is to start by describing the problem that exists for your customers. After that, you can describe how you plan to solve that problem with your product or service.
This is usually called a problem and solution statement .
To truly showcase the value of your products and services, you need to craft a compelling narrative around your offerings. How will your product or service transform your customers’ lives or jobs? A strong narrative will draw in your readers.
This is also the part of the business plan to discuss any competitive advantages you may have, like specific intellectual property or patents that protect your product. If you have any initial sales, contracts, or other evidence that your product or service is likely to sell, include that information as well. It will show that your idea has traction , which can help convince readers that your plan has a high chance of success.
Market analysis
Your target market is a description of the type of people that you plan to sell to. You might even have multiple target markets, depending on your business.
A market analysis is the part of your plan where you bring together all of the information you know about your target market. Basically, it’s a thorough description of who your customers are and why they need what you’re selling. You’ll also include information about the growth of your market and your industry .
Try to be as specific as possible when you describe your market.
Include information such as age, income level, and location—these are what’s called “demographics.” If you can, also describe your market’s interests and habits as they relate to your business—these are “psychographics.”
Related: Target market examples
Essentially, you want to include any knowledge you have about your customers that is relevant to how your product or service is right for them. With a solid target market, it will be easier to create a sales and marketing plan that will reach your customers. That’s because you know who they are, what they like to do, and the best ways to reach them.
Next, provide any additional information you have about your market.
What is the size of your market ? Is the market growing or shrinking? Ideally, you’ll want to demonstrate that your market is growing over time, and also explain how your business is positioned to take advantage of any expected changes in your industry.
Dig Deeper: Learn how to write a market analysis
Competitive analysis
Part of defining your business opportunity is determining what your competitive advantage is. To do this effectively, you need to know as much about your competitors as your target customers.
Every business has some form of competition. If you don’t think you have competitors, then explore what alternatives there are in the market for your product or service.
For example: In the early years of cars, their main competition was horses. For social media, the early competition was reading books, watching TV, and talking on the phone.
A good competitive analysis fully lays out the competitive landscape and then explains how your business is different. Maybe your products are better made, or cheaper, or your customer service is superior. Maybe your competitive advantage is your location – a wide variety of factors can ultimately give you an advantage.
Dig Deeper: How to write a competitive analysis for your business plan
Marketing and sales plan
The marketing and sales plan covers how you will position your product or service in the market, the marketing channels and messaging you will use, and your sales tactics.
The best place to start with a marketing plan is with a positioning statement .
This explains how your business fits into the overall market, and how you will explain the advantages of your product or service to customers. You’ll use the information from your competitive analysis to help you with your positioning.
For example: You might position your company as the premium, most expensive but the highest quality option in the market. Or your positioning might focus on being locally owned and that shoppers support the local economy by buying your products.
Once you understand your positioning, you’ll bring this together with the information about your target market to create your marketing strategy .
This is how you plan to communicate your message to potential customers. Depending on who your customers are and how they purchase products like yours, you might use many different strategies, from social media advertising to creating a podcast. Your marketing plan is all about how your customers discover who you are and why they should consider your products and services.
While your marketing plan is about reaching your customers—your sales plan will describe the actual sales process once a customer has decided that they’re interested in what you have to offer.
If your business requires salespeople and a long sales process, describe that in this section. If your customers can “self-serve” and just make purchases quickly on your website, describe that process.
A good sales plan picks up where your marketing plan leaves off. The marketing plan brings customers in the door and the sales plan is how you close the deal.
Together, these specific plans paint a picture of how you will connect with your target audience, and how you will turn them into paying customers.
Dig deeper: What to include in your sales and marketing plan
Business operations
When writing a business plan, the operations section describes the necessary requirements for your business to run smoothly. It’s where you talk about how your business works and what day-to-day operations look like.
Depending on how your business is structured, your operations plan may include elements of the business like:
- Supply chain management
- Manufacturing processes
- Equipment and technology
- Distribution
Some businesses distribute their products and reach their customers through large retailers like Amazon.com, Walmart, Target, and grocery store chains.
These businesses should review how this part of their business works. The plan should discuss the logistics and costs of getting products onto store shelves and any potential hurdles the business may have to overcome.
If your business is much simpler than this, that’s OK. This section of your business plan can be either extremely short or more detailed, depending on the type of business you are building.
For businesses selling services, such as physical therapy or online software, you can use this section to describe the technology you’ll leverage, what goes into your service, and who you will partner with to deliver your services.
Dig Deeper: Learn how to write the operations chapter of your plan
Key milestones and metrics
Although it’s not required to complete your business plan, mapping out key business milestones and the metrics can be incredibly useful for measuring your success.
Good milestones clearly lay out the parameters of the task and set expectations for their execution. You’ll want to include:
- A description of each task
- The proposed due date
- Who is responsible for each task
If you have a budget, you can include projected costs to hit each milestone. You don’t need extensive project planning in this section—just list key milestones you want to hit and when you plan to hit them. This is your overall business roadmap.
Possible milestones might be:
- Website launch date
- Store or office opening date
- First significant sales
- Break even date
- Business licenses and approvals
You should also discuss the key numbers you will track to determine your success. Some common metrics worth tracking include:
- Conversion rates
- Customer acquisition costs
- Profit per customer
- Repeat purchases
It’s perfectly fine to start with just a few metrics and grow the number you are tracking over time. You also may find that some metrics simply aren’t relevant to your business and can narrow down what you’re tracking.
Dig Deeper: How to use milestones in your business plan
Organization and management team
Investors don’t just look for great ideas—they want to find great teams. Use this chapter to describe your current team and who you need to hire . You should also provide a quick overview of your location and history if you’re already up and running.
Briefly highlight the relevant experiences of each key team member in the company. It’s important to make the case for why yours is the right team to turn an idea into a reality.
Do they have the right industry experience and background? Have members of the team had entrepreneurial successes before?
If you still need to hire key team members, that’s OK. Just note those gaps in this section.
Your company overview should also include a summary of your company’s current business structure . The most common business structures include:
- Sole proprietor
- Partnership
Be sure to provide an overview of how the business is owned as well. Does each business partner own an equal portion of the business? How is ownership divided?
Potential lenders and investors will want to know the structure of the business before they will consider a loan or investment.
Dig Deeper: How to write about your company structure and team
Financial plan
The last section of your business plan is your financial plan and forecasts.
Entrepreneurs often find this section the most daunting. But, business financials for most startups are less complicated than you think, and a business degree is certainly not required to build a solid financial forecast.
A typical financial forecast in a business plan includes the following:
- Sales forecast : An estimate of the sales expected over a given period. You’ll break down your forecast into the key revenue streams that you expect to have.
- Expense budget : Your planned spending such as personnel costs , marketing expenses, and taxes.
- Profit & Loss : Brings together your sales and expenses and helps you calculate planned profits.
- Cash Flow : Shows how cash moves into and out of your business. It can predict how much cash you’ll have on hand at any given point in the future.
- Balance Sheet : A list of the assets, liabilities, and equity in your company. In short, it provides an overview of the financial health of your business.
A strong business plan will include a description of assumptions about the future, and potential risks that could impact the financial plan. Including those will be especially important if you’re writing a business plan to pursue a loan or other investment.
Dig Deeper: How to create financial forecasts and budgets
This is the place for additional data, charts, or other information that supports your plan.
Including an appendix can significantly enhance the credibility of your plan by showing readers that you’ve thoroughly considered the details of your business idea, and are backing your ideas up with solid data.
Just remember that the information in the appendix is meant to be supplementary. Your business plan should stand on its own, even if the reader skips this section.
Dig Deeper : What to include in your business plan appendix
Optional: Business plan cover page
Adding a business plan cover page can make your plan, and by extension your business, seem more professional in the eyes of potential investors, lenders, and partners. It serves as the introduction to your document and provides necessary contact information for stakeholders to reference.
Your cover page should be simple and include:
- Company logo
- Business name
- Value proposition (optional)
- Business plan title
- Completion and/or update date
- Address and contact information
- Confidentiality statement
Just remember, the cover page is optional. If you decide to include it, keep it very simple and only spend a short amount of time putting it together.
Dig Deeper: How to create a business plan cover page
How to use AI to help write your business plan
Generative AI tools such as ChatGPT can speed up the business plan writing process and help you think through concepts like market segmentation and competition. These tools are especially useful for taking ideas that you provide and converting them into polished text for your business plan.
The best way to use AI to write a business plan is to leverage it as a collaborator , not a replacement for human creative thinking and ingenuity.
AI can come up with lots of ideas and act as a brainstorming partner. It’s up to you to filter through those ideas and figure out which ones are realistic enough to resonate with your customers.
There are pros and cons of using AI to help with your business plan . So, spend some time understanding how it can be most helpful before just outsourcing the job to AI.
Learn more: 10 AI prompts you need to write a business plan
- Writing tips and strategies
To help streamline the business plan writing process, here are a few tips and key questions to answer to make sure you get the most out of your plan and avoid common mistakes .
Determine why you are writing a business plan
Knowing why you are writing a business plan will determine your approach to your planning project.
For example: If you are writing a business plan for yourself, or just to use inside your own business , you can probably skip the section about your team and organizational structure.
If you’re raising money, you’ll want to spend more time explaining why you’re looking to raise the funds and exactly how you will use them.
Regardless of how you intend to use your business plan , think about why you are writing and what you’re trying to get out of the process before you begin.
Keep things concise
Probably the most important tip is to keep your business plan short and simple. There are no prizes for long business plans . The longer your plan is, the less likely people are to read it.
So focus on trimming things down to the essentials your readers need to know. Skip the extended, wordy descriptions and instead focus on creating a plan that is easy to read —using bullets and short sentences whenever possible.
Have someone review your business plan
Writing a business plan in a vacuum is never a good idea. Sometimes it’s helpful to zoom out and check if your plan makes sense to someone else. You also want to make sure that it’s easy to read and understand.
Don’t wait until your plan is “done” to get a second look. Start sharing your plan early, and find out from readers what questions your plan leaves unanswered. This early review cycle will help you spot shortcomings in your plan and address them quickly, rather than finding out about them right before you present your plan to a lender or investor.
If you need a more detailed review, you may want to explore hiring a professional plan writer to thoroughly examine it.
Use a free business plan template and business plan examples to get started
Knowing what information to include in a business plan is sometimes not quite enough. If you’re struggling to get started or need additional guidance, it may be worth using a business plan template.
There are plenty of great options available (we’ve rounded up our 8 favorites to streamline your search).
But, if you’re looking for a free downloadable business plan template , you can get one right now; download the template used by more than 1 million businesses.
Or, if you just want to see what a completed business plan looks like, check out our library of over 550 free business plan examples .
We even have a growing list of industry business planning guides with tips for what to focus on depending on your business type.
Common pitfalls and how to avoid them
It’s easy to make mistakes when you’re writing your business plan. Some entrepreneurs get sucked into the writing and research process, and don’t focus enough on actually getting their business started.
Here are a few common mistakes and how to avoid them:
Not talking to your customers : This is one of the most common mistakes. It’s easy to assume that your product or service is something that people want. Before you invest too much in your business and too much in the planning process, make sure you talk to your prospective customers and have a good understanding of their needs.
- Overly optimistic sales and profit forecasts: By nature, entrepreneurs are optimistic about the future. But it’s good to temper that optimism a little when you’re planning, and make sure your forecasts are grounded in reality.
- Spending too much time planning: Yes, planning is crucial. But you also need to get out and talk to customers, build prototypes of your product and figure out if there’s a market for your idea. Make sure to balance planning with building.
- Not revising the plan: Planning is useful, but nothing ever goes exactly as planned. As you learn more about what’s working and what’s not—revise your plan, your budgets, and your revenue forecast. Doing so will provide a more realistic picture of where your business is going, and what your financial needs will be moving forward.
- Not using the plan to manage your business: A good business plan is a management tool. Don’t just write it and put it on the shelf to collect dust – use it to track your progress and help you reach your goals.
- Presenting your business plan
The planning process forces you to think through every aspect of your business and answer questions that you may not have thought of. That’s the real benefit of writing a business plan – the knowledge you gain about your business that you may not have been able to discover otherwise.
With all of this knowledge, you’re well prepared to convert your business plan into a pitch presentation to present your ideas.
A pitch presentation is a summary of your plan, just hitting the highlights and key points. It’s the best way to present your business plan to investors and team members.
Dig Deeper: Learn what key slides should be included in your pitch deck
Use your business plan to manage your business
One of the biggest benefits of planning is that it gives you a tool to manage your business better. With a revenue forecast, expense budget, and projected cash flow, you know your targets and where you are headed.
And yet, nothing ever goes exactly as planned – it’s the nature of business.
That’s where using your plan as a management tool comes in. The key to leveraging it for your business is to review it periodically and compare your forecasts and projections to your actual results.
Start by setting up a regular time to review the plan – a monthly review is a good starting point. During this review, answer questions like:
- Did you meet your sales goals?
- Is spending following your budget?
- Has anything gone differently than what you expected?
Now that you see whether you’re meeting your goals or are off track, you can make adjustments and set new targets.
Maybe you’re exceeding your sales goals and should set new, more aggressive goals. In that case, maybe you should also explore more spending or hiring more employees.
Or maybe expenses are rising faster than you projected. If that’s the case, you would need to look at where you can cut costs.
A plan, and a method for comparing your plan to your actual results , is the tool you need to steer your business toward success.
Learn More: How to run a regular plan review
How to write a business plan FAQ
What is a business plan?
A document that describes your business , the products and services you sell, and the customers that you sell to. It explains your business strategy, how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.
What are the benefits of writing a business plan?
A business plan helps you understand where you want to go with your business and what it will take to get there. It reduces your overall risk, helps you uncover your business’s potential, attracts investors, and identifies areas for growth.
Writing a business plan ultimately makes you more confident as a business owner and more likely to succeed for a longer period of time.
What are the 7 steps of writing a business plan?
The seven steps to writing a business plan include:
- Write a brief executive summary
- Describe your products and services.
- Conduct market research and compile data into a cohesive market analysis.
- Describe your marketing and sales strategy.
- Outline your organizational structure and management team.
- Develop financial projections for sales, revenue, and cash flow.
- Add any additional documents to your appendix.
What are the 5 most common business plan mistakes?
There are plenty of mistakes that can be made when writing a business plan. However, these are the 5 most common that you should do your best to avoid:
- 1. Not taking the planning process seriously.
- Having unrealistic financial projections or incomplete financial information.
- Inconsistent information or simple mistakes.
- Failing to establish a sound business model.
- Not having a defined purpose for your business plan.
What questions should be answered in a business plan?
Writing a business plan is all about asking yourself questions about your business and being able to answer them through the planning process. You’ll likely be asking dozens and dozens of questions for each section of your plan.
However, these are the key questions you should ask and answer with your business plan:
- How will your business make money?
- Is there a need for your product or service?
- Who are your customers?
- How are you different from the competition?
- How will you reach your customers?
- How will you measure success?
How long should a business plan be?
The length of your business plan fully depends on what you intend to do with it. From the SBA and traditional lender point of view, a business plan needs to be whatever length necessary to fully explain your business. This means that you prove the viability of your business, show that you understand the market, and have a detailed strategy in place.
If you intend to use your business plan for internal management purposes, you don’t necessarily need a full 25-50 page business plan. Instead, you can start with a one-page plan to get all of the necessary information in place.
What are the different types of business plans?
While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. Here are a few common business plan types worth considering.
Traditional business plan: The tried-and-true traditional business plan is a formal document meant to be used when applying for funding or pitching to investors. This type of business plan follows the outline above and can be anywhere from 10-50 pages depending on the amount of detail included, the complexity of your business, and what you include in your appendix.
Business model canvas: The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea.
One-page business plan: This format is a simplified version of the traditional plan that focuses on the core aspects of your business. You’ll typically stick with bullet points and single sentences. It’s most useful for those exploring ideas, needing to validate their business model, or who need an internal plan to help them run and manage their business.
Lean Plan: The Lean Plan is less of a specific document type and more of a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, test, review, refine, and take action based on performance. It’s faster, keeps your plan concise, and ensures that your plan is always up-to-date.
What’s the difference between a business plan and a strategic plan?
A business plan covers the “who” and “what” of your business. It explains what your business is doing right now and how it functions. The strategic plan explores long-term goals and explains “how” the business will get there. It encourages you to look more intently toward the future and how you will achieve your vision.
However, when approached correctly, your business plan can actually function as a strategic plan as well. If kept lean, you can define your business, outline strategic steps, and track ongoing operations all with a single plan.
Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.
Table of Contents
- Use AI to help write your plan
- Common planning mistakes
- Manage with your business plan
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12 Key Elements of a Business Plan (Top Components Explained)
Starting and running a successful business requires proper planning and execution of effective business tactics and strategies .
You need to prepare many essential business documents when starting a business for maximum success; the business plan is one such document.
When creating a business, you want to achieve business objectives and financial goals like productivity, profitability, and business growth. You need an effective business plan to help you get to your desired business destination.
Even if you are already running a business, the proper understanding and review of the key elements of a business plan help you navigate potential crises and obstacles.
This article will teach you why the business document is at the core of any successful business and its key elements you can not avoid.
Let’s get started.
Why Are Business Plans Important?
Business plans are practical steps or guidelines that usually outline what companies need to do to reach their goals. They are essential documents for any business wanting to grow and thrive in a highly-competitive business environment .
1. Proves Your Business Viability
A business plan gives companies an idea of how viable they are and what actions they need to take to grow and reach their financial targets. With a well-written and clearly defined business plan, your business is better positioned to meet its goals.
2. Guides You Throughout the Business Cycle
A business plan is not just important at the start of a business. As a business owner, you must draw up a business plan to remain relevant throughout the business cycle .
During the starting phase of your business, a business plan helps bring your ideas into reality. A solid business plan can secure funding from lenders and investors.
After successfully setting up your business, the next phase is management. Your business plan still has a role to play in this phase, as it assists in communicating your business vision to employees and external partners.
Essentially, your business plan needs to be flexible enough to adapt to changes in the needs of your business.
3. Helps You Make Better Business Decisions
As a business owner, you are involved in an endless decision-making cycle. Your business plan helps you find answers to your most crucial business decisions.
A robust business plan helps you settle your major business components before you launch your product, such as your marketing and sales strategy and competitive advantage.
4. Eliminates Big Mistakes
Many small businesses fail within their first five years for several reasons: lack of financing, stiff competition, low market need, inadequate teams, and inefficient pricing strategy.
Creating an effective plan helps you eliminate these big mistakes that lead to businesses' decline. Every business plan element is crucial for helping you avoid potential mistakes before they happen.
5. Secures Financing and Attracts Top Talents
Having an effective plan increases your chances of securing business loans. One of the essential requirements many lenders ask for to grant your loan request is your business plan.
A business plan helps investors feel confident that your business can attract a significant return on investments ( ROI ).
You can attract and retain top-quality talents with a clear business plan. It inspires your employees and keeps them aligned to achieve your strategic business goals.
Key Elements of Business Plan
Starting and running a successful business requires well-laid actions and supporting documents that better position a company to achieve its business goals and maximize success.
A business plan is a written document with relevant information detailing business objectives and how it intends to achieve its goals.
With an effective business plan, investors, lenders, and potential partners understand your organizational structure and goals, usually around profitability, productivity, and growth.
Every successful business plan is made up of key components that help solidify the efficacy of the business plan in delivering on what it was created to do.
Here are some of the components of an effective business plan.
1. Executive Summary
One of the key elements of a business plan is the executive summary. Write the executive summary as part of the concluding topics in the business plan. Creating an executive summary with all the facts and information available is easier.
In the overall business plan document, the executive summary should be at the forefront of the business plan. It helps set the tone for readers on what to expect from the business plan.
A well-written executive summary includes all vital information about the organization's operations, making it easy for a reader to understand.
The key points that need to be acted upon are highlighted in the executive summary. They should be well spelled out to make decisions easy for the management team.
A good and compelling executive summary points out a company's mission statement and a brief description of its products and services.
An executive summary summarizes a business's expected value proposition to distinct customer segments. It highlights the other key elements to be discussed during the rest of the business plan.
Including your prior experiences as an entrepreneur is a good idea in drawing up an executive summary for your business. A brief but detailed explanation of why you decided to start the business in the first place is essential.
Adding your company's mission statement in your executive summary cannot be overemphasized. It creates a culture that defines how employees and all individuals associated with your company abide when carrying out its related processes and operations.
Your executive summary should be brief and detailed to catch readers' attention and encourage them to learn more about your company.
Components of an Executive Summary
Here are some of the information that makes up an executive summary:
- The name and location of your company
- Products and services offered by your company
- Mission and vision statements
- Success factors of your business plan
2. Business Description
Your business description needs to be exciting and captivating as it is the formal introduction a reader gets about your company.
What your company aims to provide, its products and services, goals and objectives, target audience , and potential customers it plans to serve need to be highlighted in your business description.
A company description helps point out notable qualities that make your company stand out from other businesses in the industry. It details its unique strengths and the competitive advantages that give it an edge to succeed over its direct and indirect competitors.
Spell out how your business aims to deliver on the particular needs and wants of identified customers in your company description, as well as the particular industry and target market of the particular focus of the company.
Include trends and significant competitors within your particular industry in your company description. Your business description should contain what sets your company apart from other businesses and provides it with the needed competitive advantage.
In essence, if there is any area in your business plan where you need to brag about your business, your company description provides that unique opportunity as readers look to get a high-level overview.
Components of a Business Description
Your business description needs to contain these categories of information.
- Business location
- The legal structure of your business
- Summary of your business’s short and long-term goals
3. Market Analysis
The market analysis section should be solely based on analytical research as it details trends particular to the market you want to penetrate.
Graphs, spreadsheets, and histograms are handy data and statistical tools you need to utilize in your market analysis. They make it easy to understand the relationship between your current ideas and the future goals you have for the business.
All details about the target customers you plan to sell products or services should be in the market analysis section. It helps readers with a helpful overview of the market.
In your market analysis, you provide the needed data and statistics about industry and market share, the identified strengths in your company description, and compare them against other businesses in the same industry.
The market analysis section aims to define your target audience and estimate how your product or service would fare with these identified audiences.
Market analysis helps visualize a target market by researching and identifying the primary target audience of your company and detailing steps and plans based on your audience location.
Obtaining this information through market research is essential as it helps shape how your business achieves its short-term and long-term goals.
Market Analysis Factors
Here are some of the factors to be included in your market analysis.
- The geographical location of your target market
- Needs of your target market and how your products and services can meet those needs
- Demographics of your target audience
Components of the Market Analysis Section
Here is some of the information to be included in your market analysis.
- Industry description and statistics
- Demographics and profile of target customers
- Marketing data for your products and services
- Detailed evaluation of your competitors
4. Marketing Plan
A marketing plan defines how your business aims to reach its target customers, generate sales leads, and, ultimately, make sales.
Promotion is at the center of any successful marketing plan. It is a series of steps to pitch a product or service to a larger audience to generate engagement. Note that the marketing strategy for a business should not be stagnant and must evolve depending on its outcome.
Include the budgetary requirement for successfully implementing your marketing plan in this section to make it easy for readers to measure your marketing plan's impact in terms of numbers.
The information to include in your marketing plan includes marketing and promotion strategies, pricing plans and strategies , and sales proposals. You need to include how you intend to get customers to return and make repeat purchases in your business plan.
5. Sales Strategy
Sales strategy defines how you intend to get your product or service to your target customers and works hand in hand with your business marketing strategy.
Your sales strategy approach should not be complex. Break it down into simple and understandable steps to promote your product or service to target customers.
Apart from the steps to promote your product or service, define the budget you need to implement your sales strategies and the number of sales reps needed to help the business assist in direct sales.
Your sales strategy should be specific on what you need and how you intend to deliver on your sales targets, where numbers are reflected to make it easier for readers to understand and relate better.
6. Competitive Analysis
Providing transparent and honest information, even with direct and indirect competitors, defines a good business plan. Provide the reader with a clear picture of your rank against major competitors.
Identifying your competitors' weaknesses and strengths is useful in drawing up a market analysis. It is one information investors look out for when assessing business plans.
The competitive analysis section clearly defines the notable differences between your company and your competitors as measured against their strengths and weaknesses.
This section should define the following:
- Your competitors' identified advantages in the market
- How do you plan to set up your company to challenge your competitors’ advantage and gain grounds from them?
- The standout qualities that distinguish you from other companies
- Potential bottlenecks you have identified that have plagued competitors in the same industry and how you intend to overcome these bottlenecks
In your business plan, you need to prove your industry knowledge to anyone who reads your business plan. The competitive analysis section is designed for that purpose.
7. Management and Organization
Management and organization are key components of a business plan. They define its structure and how it is positioned to run.
Whether you intend to run a sole proprietorship, general or limited partnership, or corporation, the legal structure of your business needs to be clearly defined in your business plan.
Use an organizational chart that illustrates the hierarchy of operations of your company and spells out separate departments and their roles and functions in this business plan section.
The management and organization section includes profiles of advisors, board of directors, and executive team members and their roles and responsibilities in guaranteeing the company's success.
Apparent factors that influence your company's corporate culture, such as human resources requirements and legal structure, should be well defined in the management and organization section.
Defining the business's chain of command if you are not a sole proprietor is necessary. It leaves room for little or no confusion about who is in charge or responsible during business operations.
This section provides relevant information on how the management team intends to help employees maximize their strengths and address their identified weaknesses to help all quarters improve for the business's success.
8. Products and Services
This business plan section describes what a company has to offer regarding products and services to the maximum benefit and satisfaction of its target market.
Boldly spell out pending patents or copyright products and intellectual property in this section alongside costs, expected sales revenue, research and development, and competitors' advantage as an overview.
At this stage of your business plan, the reader needs to know what your business plans to produce and sell and the benefits these products offer in meeting customers' needs.
The supply network of your business product, production costs, and how you intend to sell the products are crucial components of the products and services section.
Investors are always keen on this information to help them reach a balanced assessment of if investing in your business is risky or offer benefits to them.
You need to create a link in this section on how your products or services are designed to meet the market's needs and how you intend to keep those customers and carve out a market share for your company.
Repeat purchases are the backing that a successful business relies on and measure how much customers are into what your company is offering.
This section is more like an expansion of the executive summary section. You need to analyze each product or service under the business.
9. Operating Plan
An operations plan describes how you plan to carry out your business operations and processes.
The operating plan for your business should include:
- Information about how your company plans to carry out its operations.
- The base location from which your company intends to operate.
- The number of employees to be utilized and other information about your company's operations.
- Key business processes.
This section should highlight how your organization is set up to run. You can also introduce your company's management team in this section, alongside their skills, roles, and responsibilities in the company.
The best way to introduce the company team is by drawing up an organizational chart that effectively maps out an organization's rank and chain of command.
What should be spelled out to readers when they come across this business plan section is how the business plans to operate day-in and day-out successfully.
10. Financial Projections and Assumptions
Bringing your great business ideas into reality is why business plans are important. They help create a sustainable and viable business.
The financial section of your business plan offers significant value. A business uses a financial plan to solve all its financial concerns, which usually involves startup costs, labor expenses, financial projections, and funding and investor pitches.
All key assumptions about the business finances need to be listed alongside the business financial projection, and changes to be made on the assumptions side until it balances with the projection for the business.
The financial plan should also include how the business plans to generate income and the capital expenditure budgets that tend to eat into the budget to arrive at an accurate cash flow projection for the business.
Base your financial goals and expectations on extensive market research backed with relevant financial statements for the relevant period.
Examples of financial statements you can include in the financial projections and assumptions section of your business plan include:
- Projected income statements
- Cash flow statements
- Balance sheets
- Income statements
Revealing the financial goals and potentials of the business is what the financial projection and assumption section of your business plan is all about. It needs to be purely based on facts that can be measurable and attainable.
11. Request For Funding
The request for funding section focuses on the amount of money needed to set up your business and underlying plans for raising the money required. This section includes plans for utilizing the funds for your business's operational and manufacturing processes.
When seeking funding, a reasonable timeline is required alongside it. If the need arises for additional funding to complete other business-related projects, you are not left scampering and desperate for funds.
If you do not have the funds to start up your business, then you should devote a whole section of your business plan to explaining the amount of money you need and how you plan to utilize every penny of the funds. You need to explain it in detail for a future funding request.
When an investor picks up your business plan to analyze it, with all your plans for the funds well spelled out, they are motivated to invest as they have gotten a backing guarantee from your funding request section.
Include timelines and plans for how you intend to repay the loans received in your funding request section. This addition keeps investors assured that they could recoup their investment in the business.
12. Exhibits and Appendices
Exhibits and appendices comprise the final section of your business plan and contain all supporting documents for other sections of the business plan.
Some of the documents that comprise the exhibits and appendices section includes:
- Legal documents
- Licenses and permits
- Credit histories
- Customer lists
The choice of what additional document to include in your business plan to support your statements depends mainly on the intended audience of your business plan. Hence, it is better to play it safe and not leave anything out when drawing up the appendix and exhibit section.
Supporting documentation is particularly helpful when you need funding or support for your business. This section provides investors with a clearer understanding of the research that backs the claims made in your business plan.
There are key points to include in the appendix and exhibits section of your business plan.
- The management team and other stakeholders resume
- Marketing research
- Permits and relevant legal documents
- Financial documents
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What Is a Business Plan? Definition and Planning Essentials Explained
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11 min. read
Updated September 23, 2024
What is a business plan? It’s the roadmap for your business. The outline of your goals, objectives, and the steps you’ll take to get there. It describes the structure of your organization, how it operates, as well as the financial expectations and actual performance.
A business plan can help you explore ideas, successfully start a business, manage operations, and pursue growth. In short, a business plan is a lot of different things. It’s more than just a stack of paper and can be one of your most effective tools as a business owner.
Let’s explore the basics of business planning, the structure of a traditional plan, your planning options, and how you can use your plan to succeed.
What is a business plan?
A business plan is a document that explains how your business operates. It summarizes your business structure, objectives, milestones, and financial performance. Again, it’s a guide that helps you, and anyone else, better understand how your business will succeed.
Why do you need a business plan?
The primary purpose of a business plan is to help you understand the direction of your business and the steps it will take to get there. Having a solid business plan can help you grow up to 30% faster , and according to our own 2021 Small Business research working on a business plan increases confidence regarding business health—even in the midst of a crisis.
These benefits are directly connected to how writing a business plan makes you more informed and better prepares you for entrepreneurship. It helps you reduce risk and avoid pursuing potentially poor ideas. You’ll also be able to more easily uncover your business’s potential.
The biggest mistake you can make is not writing a business plan, and the second is never updating it. By regularly reviewing your plan, you can understand what parts of your strategy are working and those that are not.
That just scratches the surface of why having a plan is valuable. Check out our full write-up for fifteen more reasons why you need a business plan .
What can you do with your plan?
So what can you do with a business plan once you’ve created it? It can be all too easy to write a plan and just let it be. Here are just a few ways you can leverage your plan to benefit your business.
Test an idea
Writing a plan isn’t just for those who are ready to start a business. It’s just as valuable for those who have an idea and want to determine whether it’s actually possible. By writing a plan to explore the validity of an idea, you are working through the process of understanding what it would take to be successful.
Market and competitive research alone can tell you a lot about your idea.
- • Is the marketplace too crowded?
- • Is the solution you have in mind not really needed?
Add in the exploration of milestones, potential expenses, and the sales needed to attain profitability, and you can paint a pretty clear picture of your business’s potential.
Document your strategy and goals
Understanding where you’re going and how you’re going to get there is vital for those starting or managing a business. Writing your plan helps you do that. It ensures that you consider all aspects of your business, know what milestones you need to hit, and can effectively make adjustments if that doesn’t happen.
With a plan in place, you’ll know where you want your business to go and how you’ve performed in the past. This alone prepares you to take on challenges, review what you’ve done before, and make the right adjustments.
Pursue funding
Even if you do not intend to pursue funding right away, having a business plan will prepare you for it. It will ensure that you have all of the information necessary to submit a loan application and pitch to investors.
So, rather than scrambling to gather documentation and write a cohesive plan once it’s relevant, you can keep it up-to-date and attempt to attain funding. Just add a use of funds report to your financial plan and you’ll be ready to go.
The benefits of having a plan don’t stop there. You can then use your business plan to help you manage the funding you receive. You’ll not only be able to easily track and forecast how you’ll use your funds but also easily report on how it’s been used.
Better manage your business
A solid business plan isn’t meant to be something you do once and forget about. Instead, it should be a useful tool that you can regularly use to analyze performance, make strategic decisions, and anticipate future scenarios. It’s a document that you should regularly update and adjust as you go to better fit the actual state of your business.
Doing so makes it easier to understand what’s working and what’s not. It helps you understand if you’re truly reaching your goals or if you need to make further adjustments. Having your plan in place makes that process quicker, more informative, and leaves you with far more time to actually spend running your business.
What should your business plan include?
The content and structure of your business plan should include anything that will help you use it effectively. That being said, there are some key elements that you should cover and that investors will expect to see.
Executive summary
The executive summary is a simple overview of your business and your overall plan. It should serve as a standalone document that provides enough detail for anyone—including yourself, team members, or investors—to fully understand your business strategy. Make sure to cover:
- • The problem you’re solving
- • A description of your product or service
- • Your target market
- • Organizational structure
- • A financial summary
- • Necessary funding requirements.
This will be the first part of your plan, but it’s easiest to write it after you’ve created your full plan.
Products & Services
When describing your products or services, you need to start by outlining the problem you’re solving and why what you offer is valuable. This is where you’ll also address current competition in the market and any competitive advantages your products or services bring to the table.
Lastly, outline the steps or milestones you’ll need to hit to launch your business successfully. If you’ve already achieved some initial milestones, like taking pre-orders or early funding, be sure to include them here to further prove your business’s validity.
Market analysis
A market analysis is a qualitative and quantitative assessment of the current market you’re entering or competing in. It helps you understand the industry’s overall state and potential, who your ideal customers are, the positioning of your competition, and how you intend to position your own business.
This helps you better explore the market’s long-term trends, what challenges to expect, and how you will need to introduce and even price your products or services.
Check out our full guide for how to conduct a market analysis in just four easy steps.
Marketing & sales
Here you detail how you intend to reach your target market. This includes your sales activities, general pricing plan, and the beginnings of your marketing strategy. If you have any branding elements, sample marketing campaigns, or messaging available—this is the place to add them.
Additionally, it may be wise to include a SWOT analysis that demonstrates your business or specific product/service position. This will showcase how you intend to leverage sales and marketing channels to deal with competitive threats and take advantage of any opportunities.
Check out our full write-up to learn how to create a cohesive marketing strategy for your business.
Organization & management
This section addresses the legal structure of your business, your current team, and any gaps that need to be filled. Depending on your business type and longevity, you’ll also need to include your location, ownership information, and business history.
Basically, add any information that helps explain your organizational structure and how you operate. This section is particularly important for pitching to investors but should be included even if attempted funding is not in your immediate future.
Financial projections
Possibly the most important piece of your plan, your financials section is vital for showcasing your business’s viability. It also helps you establish a baseline to measure against and makes it easier to make ongoing strategic decisions as your business grows. This may seem complex, but it can be far easier than you think.
Focus on building solid forecasts, keep your categories simple, and lean on assumptions. You can always return to this section to add more details and refine your financial statements as you operate.
Here are the statements you should include in your financial plan:
- • Sales and revenue projections
- • Profit and loss statement
- • Cash flow statement
- • Balance sheet
The appendix is where you add additional detail, documentation, or extended notes that support the other sections of your plan. Don’t worry about adding this section at first; only add documentation that you think will benefit anyone reading your plan.
Types of business plans explained
While all business plans cover similar categories, the style and function depend on how you intend to use your business plan . So, to get the most out of your plan, it’s best to find a format that suits your needs. Here are a few common business plan types worth considering.
Traditional business plan
The tried-and-true traditional business plan (sometimes called a detailed business plan ) is a formal document meant for external purposes. It is typically required when applying for a business loan or pitching to investors.
It can also be used when training or hiring employees, working with vendors, or any other situation where the full details of your business must be understood by another individual.
A traditional business plan follows the outline above and can be anywhere from 10-50 pages depending on the amount of detail included, the complexity of your business, and what you include in your appendix. We recommend only starting with this business plan format if you plan to immediately pursue funding and already have a solid handle on your business information.
Business model canvas
The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea.
The structure ditches a linear structure in favor of a cell-based template. It encourages you to build connections between every element of your business. It’s faster to write out and update and much easier for you, your team, and anyone else to visualize your business operations.
The business model canvas is really best for those exploring their business idea for the first time, but keep in mind that it can be difficult to actually validate your idea this way as well as adapt it into a full plan.
One-page business plan
The true middle ground between the business model canvas and a traditional business plan is the one-page business plan . Sometimes referred to as a lean plan, this format is a simplified version of the traditional plan that focuses on the core aspects of your business. It basically serves as a beefed-up pitch document and can be finished as quickly as the business model canvas.
By starting with a one-page plan, you give yourself a minimal document to build from. You’ll typically stick with bullet points and single sentences making it much easier to elaborate or expand sections into a longer-form business plan.
A one-page business plan is useful for those exploring ideas, needing to validate their business model, or who need an internal plan to help them run and manage their business.
Growth plan
Now, the option that we here at LivePlan recommend is a growth plan . However, growth planning is less of a specific document type and more of a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, test, review, refine, and take action based on performance.
It holds all of the benefits of the single-page plan, including the potential to complete it in as little as 27-minutes .
However, it’s even easier to convert into a more detailed business plan thanks to how heavily it’s tied to your financials. The overall goal of growth planning isn’t to just produce documents that you use once and shelve. Instead, the growth planning process helps you build a healthier company that thrives in times of growth and stable through times of crisis.
It’s faster, concise, more focused on financial performance, and ensures that your plan is always up-to-date.
How can you write your own business plan?
Now that you know the definition of a business plan, it’s time to write your own.
Get started by downloading our free business plan template or try a business plan builder like LivePlan for a fully guided experience and an AI-powered Assistant to help you write, generate ideas, and analyze your business performance.
No matter which option you choose, writing a business plan will set you up for success. You can use it to test an idea, figure out how you’ll start, and pursue funding. And if you review and revise your plan regularly, it can turn into your best business management tool.
Like this post? Share with a friend!
Kody currently works as the Inbound and Content Marketing Specialist at Palo Alto Software and runs editorial for both LivePlan and Bplans, working with various freelance specialists and in-house writers. A graduate of the University of Oregon, he specializes in SEO research, content writing, and branding.
Table of Contents
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Browse Course Material
Course info.
- Joseph Hadzima
Departments
- Sloan School of Management
As Taught In
- Entrepreneurship
Learning Resource Types
Nuts and bolts of business plans, lecture notes.
TOPICS | SUBTOPICS | LECTURE NOTES |
---|---|---|
Part 1: Introduction and Overview of Business Plans
| | |
Part 2: Refining and Presenting Your Venture Idea
| Entrepreneurs are always “selling” their ideas to potential employees, customers, partners and investors. How do you position and present your ideas in the best light? Part of this class will be an interactive session with students and others who are in the process of developing a business plan. | |
Part 1: Marketing and Sales
| Many entrepreneurs, especially technology based entrepreneurs, are accused of being too in love with their technology or concept. They rationalize that if they develop a better mousetrap then the product will sell itself. However, a good technology or product idea is a necessary but not a sufficient condition to establishing and growing a successful business venture. Who will buy the product? How will you reach buyers? How much will they pay? If you have an idea for a product or service, how do you determine whether there is a market for it? How do you develop a marketing strategy? How do you turn your idea and market research into sales? What do you need to do to convince potential investors that there is a market and that your idea is viable? If you don’t have a specific product or service idea but you see a potential need, how do you turn the need into a product or service? This session will discuss these issues and provide guidance on how to approach the marketing section of your business plan. | |
Part 2: Business Models
| You have identified a market. Now the most important question “How Do You Make Money”? This session will discuss Business Models. What are some common business models and when are they most appropriately used? | |
Part 1: Financing Sources Panel
| You have identified the product / service and the market. You have settled on a business model and have done your financial projections. How will you finance the plan? This session will cover: Bootstrapping the early stages. Funding from the 3 F’s–Friends, Family and Fools. Angels—who are they and what are they looking for? Private placements. Customer financing. Consulting—getting someone else to pay for the development, provide a beta site and endorse your idea. Venture capital. Bank financing. You will learn about the institutional constraints and needs of various funding sources. As a result you will be in a better position to determine if, when and how to approach these sources for financing. This part of the program will feature a panel of experts representing different financing sources. | No presentation slides. |
Part 2: Financial Projections
| Armed with an understanding of the market for your products how do you figure out what financial resources you will need to bring a product to that market? This portion of the program will introduce some financial projection techniques based on actual business experience. |
|
Part 1: Founder’s Journey
| What road are you embarking upon in starting a company, and what obstacles threaten your success? What else and who else will you need? These are the themes that are explored by Ken Zolot in course 6.933 “The Founder’s Journey.” In this session of Nuts and Bolts, Ken provides an overview of these important questions with a panel of entrepreneurs. | No presentation slides. |
Part 2: Legal Issues Joe Hadzima | Identifying and dealing with legal issues in the Business Plan. Securities laws and the Business Plan—How to avoid Going to Jail without passing Go and without Collecting $200. Intellectual Property Law-Patents, Copyrights, Trademarks and Tradesecrets. Major hidden tax traps in starting a business—how to avoid generating phantom income and taxes. General questions and answers on legal issues for the entrepreneur—What you always wanted to know about the law but were afraid to ask / pay for. | |
Part 1: Negotiation Skills | Interactive presentation. | No slides used. This session was not recorded. |
Part 2: Organizational and People Issues
| Most ventures which fail do so because of people issues, not technology, market or funding issues. What people are needed to take the Business Plan from paper to reality? How do you identify good team members and avoid problems? Building an External Team and an Internal Team. Developing and implementing a philosophy for the business. | “On People.” Not included. |
Pitfalls and Plan Execution
| Your Idea is great. You have good feedback from potential customers. You are convinced that your Strategy is correct. So how come you are having trouble raising money or attracting a team or partners? Yonald Chery will talk about what really happened to Virtual Ink: The Good, The Bad and the Ugly. | Virtual Ink: The Good, The Bad and the Ugly. Not included. |
You are leaving MIT OpenCourseWare
Fundamentals of Business - 4th Edition
(9 reviews)
Stephen J. Skripak, Virginia Tech
Ron Poff, Virginia Tech
Copyright Year: 2023
ISBN 13: 9780997920178
Publisher: Virginia Tech Libraries
Language: English
Formats Available
Conditions of use.
Learn more about reviews.
Reviewed by Stacy McManus, Adjunct Professor, Minnesota West Community & Technical College on 2/16/23
The book did an excellent job of covering the basics of business. Everything that I cover in my course was covered in this book. read more
Comprehensiveness rating: 5 see less
The book did an excellent job of covering the basics of business. Everything that I cover in my course was covered in this book.
Content Accuracy rating: 4
Book was very accurate, up-to-date and thorough.
Relevance/Longevity rating: 5
The chapters were ordered thoughtfully and progressed in a manner which will help the students to learn the material. Content was up-to-date, and I don't feel that it will be situation where a new edition is required each year.
Clarity rating: 4
The book was clear and easy to understand.
Consistency rating: 4
The e-book is easy to navigate and follows a consistent pattern. The material is pleasing to the eye and is an easy read.
Modularity rating: 5
The chapters are set up well - not too long to lose interest but yet detailed and thorough.
Organization/Structure/Flow rating: 5
The chapters and topics were arranged in a logical manner.
Interface rating: 5
I reviewed the e-book version and did not have any issues with the interface. The book was easy to navigate and the appearance was very professional.
Grammatical Errors rating: 5
No grammatical errors were immediately apparent.
Cultural Relevance rating: 4
I did not notice anything offensive or concerning.
I was excited to find this OER book. It is well done, detailed, and thorough. I appreciated the test banks that were included. I would like to see some recommended activities for each chapter, but overall the book was excellent. I was happy to see an additional chapter on hospitality as well. I look forward to adopting this for my Foundations of Business class.
Reviewed by Marie Looby, adjunct instructor, Massasoit Community College on 6/5/21
Varied subject matters that progress logically and are covered in detail with terms well defined. Offers outside links for further enrichment. read more
Varied subject matters that progress logically and are covered in detail with terms well defined. Offers outside links for further enrichment.
Content Accuracy rating: 5
Found no errors while moving through the text including the quizzes.
The book uses modern day examples that the student can relate to and reference. Although the examples are current the skills are timeless.
Clarity rating: 5
There are embedded links for sources allowing students to access backup while reading online.
Consistency rating: 5
The text shows all the same tools throughout making it easy for students to develop study skills for this book.
The text is organized in chapters with mini quizzes built in as the subject veers in a different direction in each chapter.
The chapters build on the skills and knowledge as they go along eg: group think.
No navigation problems. While clicking on various links there were no difficulties reaching the sources.
Well done and consistent grammar.
Cultural Relevance rating: 5
Illustrations showed diversity
The materials were interesting enough to encourage you to continue reading.
Reviewed by Steve Lesh, Associate Professor, Bowling Green State University on 1/8/21
I must first state that I am a Doctor of Physical Therapy educator who holds a PhD in Business which is not a common combination of degree paths. I was intrigued by the possibility of adding more business theory to my health service administration... read more
I must first state that I am a Doctor of Physical Therapy educator who holds a PhD in Business which is not a common combination of degree paths. I was intrigued by the possibility of adding more business theory to my health service administration courses, but the cost has been historically prohibitive to the students in my experience. We utilize a niche health care admin textbook which misses some of the greater foundational business skills. When this opportunity presented to review materials that I could add to my course without adding cost, I was very pleased. I find Skripak to be comprehensive with the added bonus of my favorite chapter #18 Personal Finances which for Physical Therapy students who typically leave school with great debt to be invaluable!
I found the materials to be easy to read, well organized and did not find errors. I really enjoyed the links to external videos that supported the concepts. I feel the presentation was unbiased.
As this is the second edition with a 2018 publish date it was very current, however, I noticed after I began reading the 2nds edition that a 3rd edition (2020) has been released which updates figures, graphs, and some of the recent law changes. Having the book turn over that quickly makes it even a greater value to me as the instructor and to the student. I appreciate the relevance of being able to submit suggestions or corrections to the author and that they are making a test bank available in support of this material! Doesn't get much better than that!
Well written and not overly technical. The narrative flows well from the beginning to the end of each chapter.
From what I can tell, it is very consistent. I did not observe any changes in tone or terminology, but again, I am reading this through the eyes of someone who has earned a PhD in Business, so it is all very familiar to me.
Modularity rating: 4
When you go to the website, you can easily download each chapter in bits [https://vtechworks.lib.vt.edu/handle/10919/84848]. I first started reviewing the full .pdf of the 2nd edition and found that it didn't have bookmarks for each chapter so the scrolling was a bit annoying. I would add that piece to the full .pdf if possible and it appears they did that in the 3rd ed. However, the module approach online eliminates the need for a full book .pdf download.
Starts with teamwork which is perhaps one of the most important concepts in modern business. So I really appreciate that. The 18 chapters of the 2nd (and 3rd) edition cover all of the major elements of modern business. Certainly, each chapter could be expanded into it's own book. For example, Chapter 14 is Marketing, and there are full marketing textbooks, however, that is not the function of this book. The purpose is to take you through all of the major components of business as opposed to deep dives into each topic.
Again, I loved the interface with online videos. The links appeared to all work. Adds a multimedia approach to the words on the page.
I didn't see any that were obvious during my readings.
There were no elements that were culturally insensitive or offensive that I noted.
I look forward to integrating this open textbook into my Physical Therapy health service admin course as I can now get a glimpse of business fundamentals to supplement the health care niche that my students receive! Thank you for this opportunity. I do have some ideas for writing open textbooks and would be open to doing so. Steven G. Lesh
Reviewed by Babu George, Associate Professor, Fort Hays State University on 10/26/18
This book covers the overall landscape of contemporary businesses pretty well. While nothing significant is 'lacking', I would love to have the authors provide a chapter that quickly takes students through the history of business and another... read more
This book covers the overall landscape of contemporary businesses pretty well. While nothing significant is 'lacking', I would love to have the authors provide a chapter that quickly takes students through the history of business and another chapter that discusses the futuristic dimensions of business.
The contents are accurate. The authors have provided citations to key claims. The references have hyperlinks to more scholarly resources on topics discussed in the book.
Relevance/Longevity rating: 4
The contents are presented in a generalized manner - meaning, the book could stand the test of time for a significant duration. The dynamism of the contemporary businesses could have been captured better, however. The digital transformation of businesses and societies has made the life cycle of knowledge shorter. More stress on e-businesses and digital models would have made the book more relevant.
The authors have used simple English. Overall, the book is very accessible.
Yes, there is a unity of purpose and a sense of unity, throughout the book.
The chapters are stand-alone, for the most part. So, professors need not teach the content sequentially.
Ideas are organized systematically. Every chapter opens with a set of learning objectives and this gives direction to the learners. The students are asked to reflect upon certain key questions, from time to time. Answers to these question are then made available in the content discussed. At the end of each chapter, certain key takeaways are listed. This facilitates a natural form of learning.
No issue noted.
Well written.
No culturally insensitive use of language or images noted. However, in the forthcoming iterations, the authors are requested to bring in more dimensions of global businesses. Examples of business practices in other countries and cultures would add value.
One chapter (Chapter 15: Hospitality and Tourism) does not make a lot of sense. One might wonder why the authors devoted a full chapter for one industry! Why not similar chapters for other industries? It almost sounds like one of the authors had a chapter written for some other purpose, which needed to be inserted in this book. There are several other examples and case studies related to tourism in this book, too. Thinking of it positively, this book thus has an added advantages for students majoring in Hospitality and Tourism.
Reviewed by Mindy Bean, Faculty, Linn-Benton Community College on 6/19/18
The OER does well on covering topics in an introductory level business course. It adds a section that is not in typical business fundamental material of hospitality which compliments our new program that we started at our college. read more
The OER does well on covering topics in an introductory level business course. It adds a section that is not in typical business fundamental material of hospitality which compliments our new program that we started at our college.
The book is consistent with most material that is available.
The examples in the book are commonly used in most topics of basic business fundamentals. It should hold relevancy for 4-5 more years.
The book is clear in the writing that can be easily read. Business terms are well represented and explained thoroughly. The material is written well for a student's first time learning business and how to apply it to what is happening around them.
The book is consistent from chapter to chapter. The sources of material are well represented. Visuals compliment the written material.
The chapters are seamless with transition from topic to topic. It could easily be broken up into sections of reading during certain points in the course. This text seems to be set up well for student team work to learn on each important topic of business basics.
Chapters are organized in a good way to learn all material and have it related to each former chapter. Personally I will be teaching the chapters in a different order to complement a business plan being created by students.
Interface rating: 3
The book could use a few more visuals for students to relate to the material. Some of the visuals could use improvement, but as for the written material, it is clear and written well for beginners understanding business.
I did not find any grammatical errors.
Globalization section addresses cultural differences in a way that is not culturally insensitive or offensive in any way. It used examples of variety of countries and global management practices.
Reviewed by Jeff Bauer, Professor of Management & Dean, University of Cincinnati - Clermont on 3/27/18
The text is quite comprehensive covering: ECON, Ethics, Global Business, Forms of Ownership, Entre, MGMT, OB/OD, OM, Motivation, H/R, Unions, MKTG, Pricing, Hospitality MGMT, ACCT/FIN, and Personal FIN. Only areas "missing" = Information Systems... read more
Comprehensiveness rating: 4 see less
The text is quite comprehensive covering: ECON, Ethics, Global Business, Forms of Ownership, Entre, MGMT, OB/OD, OM, Motivation, H/R, Unions, MKTG, Pricing, Hospitality MGMT, ACCT/FIN, and Personal FIN. Only areas "missing" = Information Systems and Data Analytics/Analysis.
Well researched and the sources are thoroughly documented.
With a 2016 publication date, it is up-to-date and should have a shelf life of several years. The biggest challenge will be updating the stories/vignettes as new information becomes available on the firms mentioned and technology inevitably impacts the content.
The material is easily accessible to the Introduction to Business student. Well written and the material flows well. Terms/jargon are thoroughly explained in the chapter and at the end of each chapter.
Consistency format for each of the chapters and interspersed well with photos, charts, and real-world stories.
The layout presents the material well and is easy to read. Chapter lengths and the length of the entire text fit well with the organization of a class over a semester.
I might organize the material a bit differently as the Global and Ethics items are early in the text and I might bump them to later in the term after additional terminology is learned and can be applied to that material. That said, overall the text is laid out logically and "like" content is connected in successive chapters, e.g. MGMT then OB/OD, etc.
Worked fine for me reading it on-screen.
I did not edit the text, but nothing glaring related to grammar jumped out at me.
On the contrary, I think the text tackles diversity head on and provides a good review of the 21st Century workplace and marketplace.
I am VERY likely to adopt this text for the next Intro to Business class that I teach.
Reviewed by Thomas Goodwin, Part-time Instructor, Miami University on 6/20/17
This text does a good job of introducing key functions of an organization (Marketing, HR, Accounting/Finance) as well as core principles such as ethics, legal issues, and economics. The material is appropriate for an introductory course to serve... read more
This text does a good job of introducing key functions of an organization (Marketing, HR, Accounting/Finance) as well as core principles such as ethics, legal issues, and economics. The material is appropriate for an introductory course to serve as the foundation for general business or to move on to a concentration in any of these business disciplines. There are two chapters that do not quite seem to fit in with the rest of the text: chapter 12 discusses Union/Management Issues, which makes sense in the flow of the book that it follows chapter 11 on HR, but for an introductory course the chapter 12 topic gets into a lot of HR detail not generally covered in an introductory course. Chapter 15 focuses on the hospitality and tourism industry. This is a very specific chapter embedded within the book about an industry while the rest of the book is mostly general information that could be applied to any number or types of organizations. Still, out of 17 chapters there are 15 solid chapters that provide great content and overview of the subject matter.
The book is written in an easy to read format with no noticeable grammatical errors or formatting issues. It is easy to find topics within chapters based on the layout, fonts, etc. The information itself is rooted in fundamental concepts of each chapter's topic or subject matter within the business discipline and there are no overt attempts to lead the reader in a particular manner to form bias or opinions, other than to establish critical thinking of topics.
While there are some examples that may seem somewhat dated, they are explained in a manner that is easy to understand and they are relevant (or "fit") within the context of the chapters and course concepts being discussed. The book is quite lengthy but given the 17 chapters that is to be expected. The author could probably eliminate two chapters on ancillary material to make it a shorter text but the chapters are not unnecessarily bloated for the sake of adding more vocabulary or unnecessary graphics.
The book uses easy to understand language, explains course concepts and terminology, and reinforces abstract ideas with examples. Overall it does a good job of relaying topics that are being introduced to students for the first time.
The text remains consistent in present tense tone of voice, chapter structure is organized consistently throughout the text, and the use of masculine vs. feminine language is muted so that it presents information to readers in a gender-neutral manner.
One could easily pick up this course text and only read select chapters that were of interest. Gaining an understanding of the legal topics (Chapter 5 Forms of Business Ownership) was not necessary to learning about subsequent chapters such as Marketing, HR, economics, etc. An instructor could pull needed material from this course text to supplement other teaching materials as well as to expand on the introductory materials contained herein to build out a more robust, in-depth course on any of the topics contained within this textbook.
Organization/Structure/Flow rating: 4
There is a very logical structure with the early chapters discussing types of business formation, teamwork, and ethics before moving to more operational activities such as financing, marketing, management and so forth. A few chapters could be reorganized. The ethics chapter could be moved to coincide with the legal (chapters 3 & 5) and there are two chapters that do not seem to fit with the introductory material (Chapter 12 on Unions and Chapter 15 on Hospitality & Tourism) but otherwise the book had a good flow of advancing through the broad goal of introducing multiple aspects of business.
Interface rating: 4
The book could use more graphs, pictures, diagrams, etc. to emphasize course concepts; however, the author made the textbook very easy to read (especially online) so the lack of numerous photos or graphics may conversely make it easier to download and read as plain text.
Grammatical Errors rating: 4
There are no noticeable grammatical, spelling, or punctuation errors. There are a few figures that are either not labeled or are not appropriately referencing the course text where they are presented, leaving "floating images" in some places that have no meaning to the topic discussed. Figure 7.3 on page 167 is an example. There is a photo of someone's arm by a laptop and notepad next to sections discussing operational plans and planning for contingencies or crises.
Gender neutral language is used throughout the course text and no offensive references are made or examples presented. The textbook examples cover a wide array of businesses, industries, and geographical reference points.
This course is an excellent resource for a first-year business student that is seeking a broad overview of several business disciplines and to lead into more in-depth study of the course topics throughout an undergraduate curriculum.
Reviewed by Ann Strunk, Adjunct Instructor, Klamath Community College on 6/20/17
The text covers all the typical topics for introductory business course. The Chapter 15: Hospitality and Tourism is relevant to the increasing industry segment. The last chapter on Personal Finances does come after Chapter 16 Accounting but seems... read more
The text covers all the typical topics for introductory business course. The Chapter 15: Hospitality and Tourism is relevant to the increasing industry segment. The last chapter on Personal Finances does come after Chapter 16 Accounting but seems out of place with no connection to the rest of the text.
There does not seem to be any errors or biases.
The textbook was recently written making issues and news items current. Social media marketing is thorough discussed. The Marketing chapter introduces the SAVE marketing model which is taking the place of the four Ps of the marketing mix. Historic ethics cases such as WorldCom and Bernie Madoff are presented.
Pages are of a simple layout with easy readability. All terms are defined and this would also be an appropriate text to use with high school dual credit courses.
Graphics are appealing and provide a distinct look for the various sections of the text. All chapters start with learning objectives and end with take-aways. The individual chapters are of various lengths. Chapter 12: Labor Unions covers just the one topic. Other chapters are much longer with up to seven sections.
There many chapters that could be assigned or presented in a different sequence. It is easy to find and refer to tables and divisions of the chapters.
I find the placement of teamwork as the preface could be very be very beneficial in setting up for class activities and useful for students as they become active in college clubs and organizations.
Effective graphics make the chapters and sections clear. There are very few photos and those are clear and useful.
I found no grammatical errors.
Cultural differences, of course, are addressed in Chapter 4: Globalization of Business. Although there are few photos only one features a person of color.
While the chapter concepts are summarized with "Key Take-Aways", there is no end of chapter "check for understanding" such as review questions, discussions, or activities. Adoption of this textbook would require significant development of assessment tools. The references section at the end of the book is organized by chapter and provides a valuable resource of website hyperlinks.
Reviewed by Ehsan Salek, Professor of Business, Virginia Wesleyan College on 2/8/17
The text has an extensive coverage and actually has several chapters one doesn't normally find in an introductory textbook on business. If this was a traditional textbook, I would not adopt it since there are superfluous chapters and sections that... read more
The text has an extensive coverage and actually has several chapters one doesn't normally find in an introductory textbook on business. If this was a traditional textbook, I would not adopt it since there are superfluous chapters and sections that I would not want in the book but since I can custom-make an electronic copy, I would cut the unnecessary section.
The content is standard and can be found in many similar textbooks. I did not find any errors or biased opinion. All assertions are backed by reputable sources.
In such a book, the only areas that need regular updating are the examples, vocabulary, and technology. 1. Examples must be current, real, and interesting for the students in order to drive home the issues. Most recent news from companies like Apple, Amazon, or Starbucks attract the attention of students. 2. Vocabulary. "Human Resources" instead of "Personnel" or "Tossed salad" instead of "Melting Pot," etc. 3. Technology. Other than specific case studies which might have a historical significance, all references to hardware, software, and telecom should show the most current examples.
It flows well if a freshman or any student new to the business major (otherwise why one would read such a book) can get past the boring look and "feel" of the book. the book looks like a long term paper! Proper use of deeper indentations and special boxes can give the book a more interesting and magazine-like feel, although I understand that part of the bland look is due to cost restrictions.
I did not find any inconsistencies.
The book, by it's electronic nature, is naturally flexible but only to the extent of being able to cut or move materials but I am not sure if an adopter can add his/her own chapters/sections.
Organization/Structure/Flow rating: 2
This is where I will offer the bulk of my feedback. A. Why does TEAMWORK has its own special section before the chapters start? It should be moved to chapter 7, 8, or 10. B. Chapter 12 (Union-Management Issues) is not necessary in such a basic business text. The topic can be subsumed under chapter 3 or 11. C. Another superfluous chapter is #15 (Hospitality and Tourism). It looks like one of the contributors to this text has a specialty in this area. For instance, do students also need to read a chapter about Real Estate or another one about the Airline Industry? D. As much as Personal Finance (chap. 17) is a very useful topic, especially for younger generation of students, allocating a separate chapter to it seems unnecessary to me. How about moving an itemized summary of it to an appendix at the end. E. In place of the deleted chapters, add or restructure as follows, so as to have more chapters about marketing which has the effect of making the text a lot more interesting for the commercial and consumer-driven society we all live in. Chapter 13, Marketing (Introduction to the topic plus discussion of the Product aspects) Chapter 14, Marketing (Price & Place) or (Price and Distribution) Chapter 15, Marketing (Promotion & Advertising)
The only interface issue I found is mentioned in #7.
Grammar is good.
I did not find any of words or phrases that may come across as culturally insensitive or politically incorrect.
Table of Contents
Chapter 1 Teamwork in Business
Chapter 2 The Foundations of Business
Chapter 3 Economics and Business
Chapter 4 Ethics and Social Responsibility
Chapter 5 Business in a Global Environment
Chapter 6 Forms of Business Ownership
Chapter 7 Entrepreneurship and Small Business Development
Chapter 8 Management and Leadership
Chapter 9 Structuring Organizations
Chapter 10 Operations Management
Chapter 11 Motivating Employees
Chapter 12 Managing Human Resources
Chapter 13 Union/Management Issues
Chapter 14 Marketing: Providing Value to Customers
Chapter 15 Pricing Strategy
Chapter 16 Hospitality and Tourism
Chapter 17 Accounting and Financial Information
Chapter 18 Personal Finances
Chapter 19 Technology in Business
Ancillary Material
About the book.
Fundamentals of Business , 4th Edition is an open education resource intended to serve as a no-cost, faculty-customizable primary text for one-semester undergraduate introductory business courses. It covers the following topics in business: Teamwork; economics; ethics; entrepreneurship; business ownership, management, and leadership; organizational structures and operations management; human resources and motivating employees; managing in labor union contexts; marketing and pricing strategy; hospitality and tourism, accounting and finance, personal finances, and technology in business. The textbook was designed for use in Virginia Tech’s Pamplin College of Business introductory level business course, MGT1104 Foundations of Business and is shared under a Creative Commons Attribution Non-Commercial ShareAlike 4.0 license.
If you are an instructor reviewing, adopting, or adapting this textbook, please help us understand your use by filling out this form http://bit.ly/business-interest .
A testbank is now available by request for this book: http://hdl.handle.net/10919/93404 . The testbank covers chapters 1-18 and (currently) aligns to previous editions of the textbook. It is available to any instructor who has adopted Fundamentals of Business in their course.
About the Contributors
Stephen J. Skripak is (retired) Professor of Practice in Management at Pamplin College of Business, Virginia Tech (2005 – 2021) and former Associate Dean for Graduate Programs (2006-2014). He is a senior executive with 25 years of business leadership experience, including positions as General Manager and Chief Financial Officer with divisions of Fortune 500 companies. His background includes financial services, consumer packaged goods, apparel, and industrial companies, with emphasis in turnaround situations. He was the lead contributor and subject matter expert for the 2016 and 2018 editions of Fundamentals of Business , and reviewed the 2020 and 2023 versions of the book.
Ron Poff is Assistant Professor of Management Practice in the Management Department at Pamplin College of Business, Virginia Tech, where he teaches management courses. He began his career as an enlisted member of the US Navy Reserves before entering his primary career in supply chain operations then sales and marketing, where he served in executive roles with large corporations for over 25 years. As an entrepreneur, he then founded his own marketing agency. His education includes a B.S. in Business Management, M.S. Marketing, and a Graduate Certificate in eMarketing. He is the project lead, chief contributor, and coordinator of contributors for the third (2020) and fourth editions (2023) of Fundamentals of Business.
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– Last Week, Congressman Roger Williams (TX-25), Chairman of the House Committee on Small Business, wrote a letter to the U.S. Small Business Administration (SBA) demanding that the SBA hand over its “strategic plan” to implement voter registration after the Agency repeatedly failed to comply with a subpoena.
Charles Creitz September 18, 2024 A House committee plans to surprise a top Biden administration official at a Wednesday hearing with a scathing document-request letter after lawmakers said the agency repeatedly failed to comply with a subpoena regarding its swing-state electioneering activities. House Small Business Committee Chairman Roger Williams, R-Texas, said the Small Business Administration (SBA) drafted a “strategic plan” for its voter registration work in Michigan, in compliance with a President Biden executive order, but has claimed it does not exist in its requested form. However, committee sources tell Fox News Digital an SBA response to a separate Freedom of Information Act (FOIA) request from an outside organization indicated the existence of such a document. The committee’s Republican majority has pursued the agency for months seeking answers about its work in Michigan amid allegations it has been involved in partisan voter registration outreach in the key swing state. While the agency has contended any work has been done aboveboard and pursuant to Biden Executive Order 14019 – “Promoting Access to Voting,” – the committee noted the edict requires a “strategic plan” to be drafted identifying ways the agency can “promote voter registration and voter participation.” That document, Williams said, is key to the committee’s work investigating whether a deal forged between the SBA and the Michigan Department of State is potentially unconstitutional as well as a misuse of taxpayer dollars. “The Committee is deeply concerned that the SBA has misled the Committee regarding the existence of a document the Committee specifically demanded in the subpoena: the strategic plan the SBA submitted to the White House’s Domestic Policy Counsel in September 2021 under Executive Order (E.O.) 14019,” the letter reads, signed by Williams and Small Business Oversight Subcommittee Chairwoman Beth Van Duyne, R-Texas. “On numerous occasions, the SBA and its staff claimed that this document did not exist before eventually claiming it could not be produced to the Committee…” it read. “In response to the subpoena, SBA officials stated to Committee staff that no responsive document existed. The Committee was skeptical of SBA’s claim, as failing to submit this report would violate the terms of the Executive Order… On two separate occasions, Committee staff further inquired about this document with SBA staff and added context to help the SBA identify the document… the SBA again indicated that no such document exists.” Williams and others in Congress have accused the SBA of using the pact to funnel taxpayer resources to a swing state in a partisan manner during an election year. A source familiar said a FOIA case reportedly initiated by a conservative legal foundation found evidence of at least a draft document. The SBA had been subject to a filing by the conservative Heritage Foundation’s Oversight Project watchdog organization in May. “It’s curious that the Small Business Administration has entered an agreement with the Michigan secretary of state in this context, with the election this year,” Oversight Project attorney Kyle Brosnan said of that case in a prior interview. “After months of claiming a crucial document relating to SBA’s implementation of the Biden-Harris electioneering executive order doesn’t exist, court filings show that they were not being honest. This revelation calls into question the credibility of the agency and gives our committee all the more motivation to keep demanding answers,” Williams said. The way the MOU has been acted upon is controversial and potentially unconstitutional, Williams has said, as he and others in Congress previously accused the SBA of using it to funnel resources to a swing state in a partisan way. He previously said the SBA is “diverting its resources away from assisting Main Street so it can register Democratic voters” in Michigan. Sen. Joni Ernst, R-Iowa, the top Republican on the Senate Small Business & Entrepreneurship Committee, added that the American people “have a right to know what their government is doing with their tax dollars, and I am going to make sure the SBA is held accountable.” In compliance with the White House order, the SBA submitted their strategic plan within the 200-day window, the committee contends. In March, the agency launched what it called a “first of its kind” agreement to assist with registering voters in Michigan. The SBA had claimed in response to the committee’s original demand that the document was not “final,” and therefore not responsive to the request. The committee, however, did request both “interim” and “final” documents. According to a source familiar, the document was withheld from the FOIA suit under an exemption, but the committee has different privileges than private FOIA litigation. “The SBA cannot claim a document doesn’t exist merely because it is potentially privileged,” they said. In August, an SBA spokesperson argued that the agency has provided “extensive testimony, briefings, transcribed interviews, documents and other information in response to congressional inquires, including the Committee’s most recent subpoena.” “We are continuing the work to fulfill the subpoena beyond our initial document production. Any suggestion that the agency is conducting improper work or that its response has been anything other than cooperative is simply not true,” the spokesperson added. ### |
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Launches of bond-focused exchange traded funds have surged from year-ago levels in 2024, boosted by expectations of interest rate cuts by the Federal Reserve, according to data from CFRA and Strategas.
IMAGES
VIDEO
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Provide projections for two to four years in the future, including: 1. Forecasted income (monthly for first two years, then by quarter or year thereafter), 2. Forecasted cash flows by month (monthly for first two years, then by quarter or year thereafter), 3. Forecasted balance sheet for all years (year-end), and. 4.
Start with a cogent and concise one sentence statement of the business idea. A sentence that is so clear and appealing that the reader can immediately visualise or 'see' the business. You can then go on to describe: The market at which you are aiming. The specific benefits offered by your product or service.
Key Takeaways. A business plan is a document detailing a company's business activities and strategies for achieving its goals. Startup companies use business plans to launch their venture and to ...
BUSINESS PLAN GUIDE. A structured guide with worksheets to assist you in the development of your business plan, financial projections, and operating budget. Adapted from materials written by Donald J. Reilly. Southeastern MA Regional Small Business Development Center. 200 Pocasset Street.
Describe Your Services or Products. 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 ...
As the road map for a business's development, the business plan. Defines the vision for the company. Establishes the company's strategy. Describes how the strategy will be implemented. Provides a framework for analysis of key issues. Provides a plan for the development of the business. Helps the entrepreneur develop and measure critical ...
Rice University's Student Business Plan Competition, one of the largest and overall best-regarded graduate school business-plan competitions (see Telling Your Entrepreneurial Story and Pitching the Idea), requires an executive summary of up to five pages to apply. 51, 52 Its suggested sections are shown in Table 11.2.
Traditional business plans use some combination of these nine sections. Executive summary. Briefly tell your reader what your company is and why it will be successful. Include your mission statement, your product or service, and basic information about your company's leadership team, employees, and location.
ve cash flow, even if it means you have to postpone writing the plan.Know your targeted investor groups (e.g., venture capitalist, angel investor, bank, or leasing company) and what the. eally want and what they dislike, and tailor your plan accordingly. Let realistic market and sales projections drive the assum.
Lean Business Plan Template PDF. This scannable business plan template allows you to easily identify the most important elements of your plan. Use this template to outline key details pertaining to your business and industry, product or service offerings, target customer segments (and channels to reach them), and to identify sources of revenue.
Prepare the following projections place them in the Business Plan Appendix: • Income Statement by years for 5 years; by months for years 1-2 and by quarters for years 3-5. • Balance Sheet years for 5 years. • Cash Flow by years for 5 years; by months for years 1-2 and by quarters for years 3-5. • Break-even Analysis.
It's a long-term battle to regain home equity if the business doesn't succeed.You will be left with a large mortgage payment, business debts, and the possibility of the bank foreclosing on your home. Many marriages have dissolved for this reason. Business is a gamble, even when you have a good poker hand. 3.
Products and services description. When writing a business plan, the produces and services section is where you describe exactly what you're selling, and how it solves a problem for your target market. The best way to organize this part of your plan is to start by describing the problem that exists for your customers.
Here are some of the components of an effective business plan. 1. Executive Summary. One of the key elements of a business plan is the executive summary. Write the executive summary as part of the concluding topics in the business plan. Creating an executive summary with all the facts and information available is easier.
The 10 Components of a Business Plan. Every business has its own goals and organizational structure. Here are 10 key components of a successful business plan that you should be sure to have.
It's the roadmap for your business. The outline of your goals, objectives, and the steps you'll take to get there. It describes the structure of your organization, how it operates, as well as the financial expectations and actual performance. A business plan can help you explore ideas, successfully start a business, manage operations, and ...
The first step is a financial plan. To support your basic financial plan you will need three separate documents: an income (profit and loss) statement. a balance sheet. a statement of cash-flows. The financial plan itself should include a budget with projections of revenue, expenses, and profits.
These are the themes that are explored by Ken Zolot in course 6.933 "The Founder's Journey.". In this session of Nuts and Bolts, Ken provides an overview of these important questions with a panel of entrepreneurs. No presentation slides. Part 2: Legal Issues.
Learn how to write a business plan for your small business today. Download our business plan template and follow our 10-step plan with easy-to-ready samples. Whether you're a founder, a new owner, or just beginning to think about starting a business , demands come at you fast. Tasks, to-do lists, meetings, and more.
Reference: Chapter 3, 4, 5, and 16. III. Marketing and Sales. This section of the business plan should clearly communicate an understanding of how to successfully market and sell your product to the identified customer segments. Understanding and communicating your customer development strategy is as important as your product development strategy.
Fundamentals of Business, 4th Edition is an open education resource intended to serve as a no-cost, faculty-customizable primary text for one-semester undergraduate introductory business courses. It covers the following topics in business: Teamwork; economics; ethics; entrepreneurship; business ownership, management, and leadership; organizational structures and operations management; human ...
How do you write a business plan? It can seem overwhelming, but your plan is an important step in helping your company launch and grow. Parts of a Business Plan: 7 Essential Sections
WASHINGTON, D.C. - Last Week, Congressman Roger Williams (TX-25), Chairman of the House Committee on Small Business, wrote a letter to the U.S. Small Business Administration (SBA) demanding that the SBA hand over its "strategic plan" to implement voter registration after the Agency repeatedly failed to comply with a subpoena.
Italy's Eni considers Libya a key country for upstream activities and plans to start exploration in the Ghadames basin next year, the energy group's head of North Africa and Levant said on Monday.