what questions does a business plan answer

135 Business Plan Questions

Embarking on the business journey of your dreams begins with a robust business plan. This plan is not just a document—it’s the roadmap to your success, painting a clear picture of where you’re headed and how you plan to get there.

Whether you’re a seasoned entrepreneur or a hopeful startup pioneer, the questions I’ve compiled are designed as your compass, guiding you through the intricate landscape of business strategy.

From your executive summary to the details of your financial projections, each question serves to dig deep into the essence of your vision, solidifying your plan with precision and care.

Table of Contents

Executive Summary

• What is the core mission of your business?
• How would you describe your company’s business model in simple terms?
• What unique problem does your business solve for its customers?
• What are the short-term and long-term goals of the company?
• Who are the intended clients or customers of your business?
• What is the vision statement for your business?
• Who are the founders and key team members, and what are their roles?
• How does your company set itself apart from the competition?
• What are the main achievements or milestones of your business to date?
• What key opportunities do you see in the market?
• How much funding are you seeking, and how will it be used?
• What are the main products or services your company offers?
• What is the current stage of your business (concept, start-up, growth)?
• How do you see your company evolving in the next five years?
• Can you summarize the financial outlook and projections for your company?

Company Description Considerations

• What is the legal structure of your business (e.g., sole proprietorship, LLC, corporation)?
• How did the idea for the business originate, and how has it been developed?
• Who are the target customers, and why will they choose your business?
• What are the key elements of your business’s operations?
• What are the specific advantages of your location or facilities, if any?
• How does your company’s history and background set it up for success?
• What business sector or industry does your company fall under?
• How does your company contribute to the economy and community?
• What partnerships or collaborations are essential to your business?
• What are the core values and culture of your company?
• How does your business respond to changes in the market?
• What relevant certifications, licenses, or permits does your business hold?
• What are the main risks and challenges your business faces?
• What role does sustainability play in your company’s operations?
• How does diversity and inclusion manifest in your company?

Market Analysis

• Who is your primary target market, and what are their defining characteristics?
• How large is the target market, and what is its projected growth?
• What are the trends and themes currently shaping your target market?
• Who are your top competitors, and what are their strengths and weaknesses?
• What is your market share, or what market share do you project to capture?
• How do your target customers make their purchasing decisions?
• What factors influence the demand for your products or services?
• What barriers to entry exist in your market, and how can they be overcome?
• How does pricing play a role in your market position?
• What is your value proposition to customers in comparison to competitors?
• How might technology impact your market in the future?
• What are the legal or regulatory factors affecting your market?
• How have external factors like the economy affected your market historically?
• How does geography affect your market and business model?
• What are the risks associated with your target market?

Organization and Management Structure

• Who comprises the leadership team, and what are their backgrounds?
• What is the organizational structure of your business?
• How will your management team help achieve the business’s goals?
• What gaps exist in your current team, and how do you plan to fill them?
• What are the roles and responsibilities of your management team members?
• How does the management structure align with your business strategy?
• How does your team make decisions and communicate internally?
• What systems are in place for performance management and accountability?
• What is your plan for recruiting and retaining skilled employees?
• How do you approach leadership development and training?
• How does the current team’s expertise align with the business goals?
• What are the board of directors’ roles, if applicable?
• How do you plan to create a productive company culture?
• What external advisors or consultants does the business use, and why?
• How have you planned for succession in key management roles?

Service or Product Line Inquiry

• What are the main products or services your business offers?
• How do these products or services fulfill customer needs?
• What is unique about your products or services?
• How does product/service quality compare to competitors?
• What is the lifecycle of your products or services?
• How is your product or service produced or delivered?
• Are there any patents, copyrights, or trademarks involved?
• What research and development activities are you pursuing?
• How do you plan to expand your product or service range?
• What customer feedback have you received about your product or service?
• How does your product or service adapt to changes in the market?
• What is the pricing strategy for your products or services?
• How does your product or service contribute to your brand image?
• What are the future plans for developing your product or service?
• How do warranty or guarantee terms play into your offering?

Marketing and Sales Strategies

• What marketing channels will you use to reach your target audience?
• How will you position your company within the market?
• What promotional strategies will you utilize to attract customers?
• What is your sales forecast for the first year and beyond?
• How will you set sales targets and measure success?
• What sales tactics will you employ to enhance customer acquisition?
• How will your marketing and sales strategies evolve as the business grows?
• What is your approach to online and social media marketing?
• What customer relationship management processes will you put in place?
• How do you plan to establish your brand identity?
• What partnerships or sponsorships will you leverage to enhance marketing?
• What are your strategies for repeat business and customer loyalty?
• What is your process for tracking marketing ROI?
• How do customer service and support fit into your sales strategy?
• How does your marketing strategy cater to different customer segments?

Funding Request Fundamentals

• How much total funding is required to reach your business objectives?
• What specific purposes will the funding be used for?
• What is your proposed timeline for the utilization of funds?
• What types of funding (e.g., equity, loan) are you pursuing?
• How will investors or lenders get a return on their investment?
• What is the current financial position of the business?
• How much equity are you willing to exchange for investment?
• What are the key financial milestones that the funding will help achieve?
• What are the terms you’re seeking for any loans?
• How do you plan to manage cash flow and ensure financial stability?
• What collateral, if any, are you offering to back up your funding request?
• How does the funding impact your business’s financial projections?
• What is the exit strategy for investors?
• How will additional funding influence your strategic business decisions?
• What contingencies do you have in place if you don’t secure the expected funding?

Financial Projections and Feasibility

• What are your financial forecasts for the next three to five years?
• How did you arrive at your revenue and expense estimates?
• What are the key assumptions underlying your financial projections?
• What are the projected cash flow statements for the next few years?
• What is your break-even analysis showing?
• What are your strategies for maintaining a healthy profit margin?
• How do you plan to monitor and manage financial risks?
• What is your approach to pricing and cost control?
• How will you balance reinvestment in the business with profitability?
• What financial metrics will you use to gauge business performance?
• How will you handle unexpected financial shortfalls or emergencies?
• What is your strategy for financial record-keeping and accounting?
• How do customer payment terms and cycles affect your cash flow?
• What financial software or tools do you use for projections?
• How will financial trends and economic conditions potentially impact your projections?

Appendix and Supporting Documents

• What supporting documents will you include in the appendix?
• How will these documents reinforce your business plan’s credibility?
• What resumes or biographies of your team members will you present?
• What legal documents are relevant to include (e.g., licenses, permits)?
• How can we access extensive market studies mentioned in the plan?
• What are your key technical product specifications or service descriptions?
• How do your financial statements and accounting documents get audited?
• What testimonials or case studies from customers can you showcase?
• What press coverage or media mentions has your business received?
• Can you provide industry endorsements or expert opinions?
• How will technology prototypes or demos be made available for review?
• What are your policies and procedures manuals like?
• How do your charts, graphs, and tables support your plan’s data?
• What correspondence or contracts with suppliers/partners are appropriate to include?
• How does your intellectual property documentation reflect on your business’s value?

Frequently Asked Questions

Can i write a business plan myself, or should i hire a professional.

Writing a business plan yourself is possible, especially with the aid of specific questions that cover all business aspects. However, hiring a professional can provide expertise and a polished result, particularly if you seek significant funding.

How often should I update my business plan?

Regular updates are crucial—annually at minimum or more often if your business is rapidly changing. This keeps your business plan relevant and useful as a dynamic, guiding document.

What’s the most critical part of a business plan?

While all sections are important, the Executive Summary is critical as it’s often the first (and sometimes only) part read by potential investors or partners. Clear and compelling financial projections are also vital for potential funders.

Final Thoughts

As your blueprint comes together, remember that the strength of your business plan lies in its details and its ability to represent the vision and practicalities of your enterprise honestly.

The questions outlined will challenge you to think critically, anticipate future hurdles, and prepare for success. With these comprehensive inquiries as your cornerstone, you can turn your business from a dream into an actionable, thriving reality.

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30+ Business Plan Questions & Step-By-Step Business Plan Guide

Last Updated: 30 May 2024

10 min read

Table Of Contents

• 30+ Business Plan Question s

8 Steps to Creating a Full-Proof Business Plan

• SurveySparrow: The Best Business Plan Tool

Whether in business, marketing, or sales, you know how crucial a solid business plan is to your success. It’s not just about getting started—it’s about setting a clear direction for growth and innovation. This blog is your first step toward clarity and strategy.

Creating a comprehensive business plan is critical for entrepreneurs and business owners. It serves as a roadmap for your business and helps secure funding from investors and banks.

A well-crafted business plan should address key areas of your business, providing a detailed overview of its objectives, strategies, and financial projections.

Here’s a guide structured around crucial categories, each followed by pertinent business plan questions that will help in developing a robust business plan

30 Critical Business Plan Questions to Ask

Whether you’re steering a startup toward uncharted territories, aiming to elevate an established brand, or driving relentless sales growth, your business plan is the compass that guides your strategy, operations, and financial foresight.

Understanding this, we’ve compiled 30 questions designed to ignite your planning process and refine your business strategy.

Here we go.

Executive Summary

• What is your business’s mission statement?
• What products or services does your business offer?
• Who are the founders, and what is their background?
• What is the current stage of the business (concept, start-up, expansion)?
• What are the key financial highlights?

Market Analysis

6. Who is your target market, and how large is it? 7. What are the current trends and growth in your industry? 8. Who are your competitors, and what are their strengths and weaknesses? 9. How does your business fit into the market? 10. What is your unique value proposition?

Wait, wouldn’t you need a survey to run these questions and gather feedback? What if I told you that you can do that easily with Surveysparrow .

If you’re ready to chart your business path, grab our Free Business Plan Questionnaire Template . Begin your journey to success now.

Sign up for free with your email and start using it right away.

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 Marketing and Sales Strategy

11. How will you reach your target market (marketing channels)? 12. What is your pricing strategy? 13. How do you plan to sell your product or service? 14. What is your sales forecast for the first year? 15. How will you measure the success of your marketing efforts?

Operations Plan

16. What is the location of your business, and why? 17. What facilities and equipment do you need? 18. Who are your suppliers, and what are your supply chain logistics? 19. What is the production process? 20. How will you ensure quality control and customer service?

Management and Organization

21. Who makes up the management team, and what are their roles? 22. How does your organizational structure look? 23. What are the backgrounds of your team members? 24. What gaps in expertise or knowledge exist in your team? 25. How will you fill these gaps (hiring, advisors, etc.)?

Financial Plan

26. What are your startup costs? 27. What is your break-even analysis? 28. What are your projected profit and loss statements for the first 1-3 years? 29. What are your cash flow projections? 30. What are the assumptions underlying your financial projections?

By carefully answering these questions, you can construct a thorough business plan that addresses all the critical components needed for your business’s success. Remember, a business plan is not a static document; it should evolve as your business grows and adapts to market changes.

• A Journey Begins: Identifying the Problem
• The Voyage of Discovery: Defining Your Customers
• The Battle Plan: Reaching Your Customers
• Understanding the Landscape: Identifying Your Competitors
• The Strategy Map: Outlining Your Operational Plan
• Charting the Course: Defining Your Business Structure
• The Guardian of Your Venture: Creating a Risk Management Plan
• Calculating the Costs: Budgeting and Financial Projections

1. Identify the Problem

Just as any memorable journey starts with a step, every successful business starts with identifying a problem.

The burning question to answer here is: what problem is your business attempting to solve? Remember, the more specific the issue, the better your chances of designing a unique solution that customers will flock to.

2. Define Your Customers

Identifying your target customer is crucial in the business planning process. This involves understanding and defining your potential customers’ specific demographics, psychographics, behaviors, and needs.

By doing this, you can tailor your products, services, and marketing strategies to meet their specific needs. The more precisely you can define your target audience , the more effectively you can serve them and set your business up for success.

3. Reach Your Customers

Now that You’ve discovered your target customers. Now comes the next challenge: How do you reach them?

Consider all possible marketing channels. Will it be social media? Email newsletters? Influencer partnerships? The choice is yours, but ensure it aligns with where your customers spend their time. After all, there’s no point in sending smoke signals if your customers are tuned into the radio.

 4. Identify Your Competitors

Now you have your bearings; it’s time to study the lay of the land. This means understanding your competition. The question is: Who are they, and how do they solve the same problem?

Understanding your competitors will help you differentiate your business and position it uniquely in the market. After all, in the quest for customer loyalty, your unique selling proposition (USP) is your Excalibur.

 5. Outline Your Operational Plan

So, you’ve identified the problem, defined your customers, planned your marketing, and sized up the competition. You’re almost ready to set sail. But first, there’s another significant piece of the business puzzle to put in place: your operational plan.

Your operational plan should include a detailed plan for sourcing deals. Using the Grata data deal sourcing platform can further help streamline this process and ensure you have access to the most relevant and up-to-date information.

How will your business function day-to-day? What resources will you need? Answering these business plan questions will help you create a clear blueprint of your business operations, ensuring your venture runs as smoothly as a well-oiled machine.

6. Define Your Business Structure

One question that’s often overlooked in the excitement of crafting business plans is this: What is your business structure? Sole proprietorship, partnership, corporation, or LLC ?

Your business structure will significantly affect taxation, liability, and other legalities. It’s like choosing the right ship for your journey – you need one that will safely weather the storms of your entrepreneurial voyage.

7. Create a Risk Management Plan

In the entrepreneurship journey, bumps and detours are part of the course. Having a risk management plan is essential. The business plan question is: What potential obstacles might you face, and how will you mitigate them?

A well-thought-out risk management plan ensures you’re prepared for the challenges ahead.

8. Create Budget and Financial Projections

Now, onto the numbers. What will be the cost of starting and running your business? How soon before you break even? Financial forecasts might seem as daunting as navigating uncharted waters, but they’re vital in answering the essential business-related question : Will your venture be financially viable?

How Can SurveySparrow Help You in Critical Business Planning

With SurveySparrow by your side, you’re never alone in your business planning journey. Its extensive suite of customer and employee experience tools offers invaluable insights to help answer all these key questions in your business plan.

Use SurveySparrow to conduct comprehensive market research, understand customer behavior, and even keep tabs on employee satisfaction. With this trusty tool, you’re well-equipped to answer all your business plan questions, ensuring your entrepreneurial journey is successful.

Here’s how you can do it.

Market Research : SurveySparrow allows you to design and distribute surveys to gather insights about your market. You can explore potential customer needs, preferences, and pain points and evaluate market trends and size, all of which are critical inputs for your business plan.

Customer Segmentation and Profiling : Using SurveySparrow, you can categorize your potential customers based on their preferences, behavior, demographics, and more. This can help you define your target market, tailor your offerings, and devise effective marketing strategies.

Competitor Analysis : By surveying consumers, you can gain insights about your competitors – their strengths, weaknesses, and what customers think of them. This data can be vital in positioning your business uniquely in the market.

Pricing Strategy : You can use surveys to understand what customers are willing to pay for your product or service, helping you devise a suitable pricing strategy.

Risk Assessment : Use surveys to gather feedback about potential risks or barriers to your business. Understanding these risks in advance can help you form strategies to mitigate them.

Employee Engagement : If you plan to have employees, understanding their needs and expectations is crucial for crafting your operations plan and culture. SurveySparrow can assist with gathering employee feedback and gauging engagement .

Product Testing : Before launching, you can use SurveySparrow to get feedback on your product or service. This can help you fine-tune it according to your target market’s needs and preferences.

Financial Projections : The data you gather from customer and market surveys can help inform your sales forecasts and financial projections, key business plan components .

In short, SurveySparrow can offer a wealth of information, helping you answer the critical questions in your business plan. You’re better equipped to create a robust, data-driven business plan by leveraging these tools.

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That’s All of It.

Remember, every successful business starts with a comprehensive business plan. And every comprehensive business plan starts with answering the right questions. So, go ahead and take the plunge. Your entrepreneurial journey awaits, and with SurveySparrow as your co-pilot, you’re set for an exciting voyage.

After all, the sky’s the limit regarding what you can achieve in the business world. Onwards and upwards, future tycoons!

Growth Marketer at SurveySparrow

Passionate, eidetic, and a writer at large.

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

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

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

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

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

Let’s get started.

What Do You Need A Business Plan For?

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

1. Secure Funds

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

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

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

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

2. Monitor Business Growth

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

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

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

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

3. Measure Business Success

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

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

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

4. Document Your Marketing Strategies

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

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

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

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

How to Write a Business Plan Step-by-Step

1. create your executive summary.

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

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

A good executive summary should do the following:

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

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

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

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

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

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

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

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

2. Add Your Company Overview

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

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

Your company overview should contain the following:

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

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

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

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

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

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

• Mission Statement

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

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

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

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

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

Business Objectives

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

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

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

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

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

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

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

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

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

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

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

Market Analysis

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

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

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

• Market Research

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

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

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

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

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

How to Quantify Your Target Market

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

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

What Does a Good Market Analysis Entail?

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

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

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

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

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

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

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

Competitive Analysis

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

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

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

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

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

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

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

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

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

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

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

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

Direct vs Indirect Competition

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

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

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

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

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

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

Factors that Differentiate Your Business from the Competition

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

1. Cost Leadership

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

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

2. Product Differentiation

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

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

3. Market Segmentation

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

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

4. Define Your Business and Management Structure

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

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

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

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

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

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

Management Team

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

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

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

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

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

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

Key Questions to Answer When Structuring Your Management Team

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

Additional Tips for Writing the Management Structure Section

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

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

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

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

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

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

Organizational Chart

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

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

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

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

5. Describe Your Product and Service Offering

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1. Avoid Technical Descriptions and Industry Buzzwords

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

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

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

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

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

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

3. Long or Short Products or Services Section

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

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

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

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

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

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

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

4. Describe Your Relationships with Vendors or Suppliers

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

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

5. Your Primary Goal Is to Convince Your Readers

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

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

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

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

Key Questions to Answer When Writing your Products and Services Section

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

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

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

6. Show and Explain Your Marketing and Sales Plan

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

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

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

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

Outline Your Business’ Unique Selling Proposition (USP)

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

Target Market and Target Audience

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

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

Creating a Smart Marketing and Sales Plan

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

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

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

Your Positioning Statement

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Basic Rules to Follow When Pricing Your Offering

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

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

Pricing Strategy

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

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

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

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

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

Advertising

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

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

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

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

Public Relations

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

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

Content Marketing

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

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

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

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

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

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

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

Social Media

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

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

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

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

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

Strategic Alliances

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

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

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

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

Steps Involved in Creating a Marketing and Sales Plan

1. Focus on Your Target Market

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

2. Evaluate Your Competition

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

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

These questions can help you know your competition.

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

3. Consider Your Brand

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

4. Focus on Benefits

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

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

5. Focus on Differentiation

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

Key Questions to Answer When Writing Your Marketing and Sales Plan

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

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

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

7. Clearly Show Your Funding Request

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

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

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

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

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

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

Funding Request: Debt or Equity?

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

Case for Equity

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

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

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

Case for Debt

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

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

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

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

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

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

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

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

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

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

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

8. Detail Your Financial Plan, Metrics, and Projections

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

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

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

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

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

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

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

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

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

Use Graphs and Charts

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

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

Address the Risk Factors and Show Realistic Financial Projections

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

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

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

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

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

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

1. Sales Forecast

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

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

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

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

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

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

2. Personnel Plan

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

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

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

3. Income Statement

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

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

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

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

4. Cash Flow Statement

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

5. Balance Sheet

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

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

6. Exit Strategy

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

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

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

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

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

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

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

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

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

9. Add an Appendix to Your Business Plan

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

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

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

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

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

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

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

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

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

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

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

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

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

Tips and Strategies for Writing a Convincing Business Plan

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

1. Know Your Audience

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

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

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

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

2. Get Inspiration from People

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

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

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

3. Avoid Being Over Optimistic

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

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

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

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

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

4. Keep it Simple and Short

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

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

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

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

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

5. Make an Outline and Follow Through

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

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

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

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

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

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

6. Ask a Professional to Proofread

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

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

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

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

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

1. hubspot's one-page business plan.

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

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

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

2. Bplan’s Free Business Plan Template

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

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

3. HubSpot's Downloadable Business Plan Template

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

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

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

4. Business Plan by My Own Business Institute

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

The comprehensive template consists of a whopping 15 sections.

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

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

5. Score's Business Plan Template for Startups

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

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

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

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

6. Minimalist Architecture Business Plan Template by Venngage

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

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

7. Small Business Administration Free Business Plan Template

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

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

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

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

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

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

9. PandaDoc’s Free Business Plan Template

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

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

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

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

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

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

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

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

Alternatives to the Traditional Business Plan

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

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

Business Model Canvas (BMC)

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

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

Segments of the Business Model Canvas

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

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

Lean Canvas

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

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

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

Startup Pitch Deck

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

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

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

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

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

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

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

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

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

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

Business Plan FAQ

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

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

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

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

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

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

Exlore Further

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

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

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

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6 Questions Every Business Plan Should Answer

Lay out your goals and a road map for achieving them.

Table of Contents

An actionable business plan is crucial, whether your business is brand-new or an established player in its field. A business plan is especially vital for SMBs, which often must contend with lower name recognition, fewer loyal customers and other typical business challenges. While it doesn’t guarantee success, creating a business plan with research and care can help a business prepare for any future uncertainties.

Entrepreneurs and small business owners must ensure their business plans address six primary questions. Thinking through these questions and developing potential solutions helps set up your venture for success. 

What is a business plan, and why does it matter?

A business plan is a formal document designed to help you set achievable business goals and outline how you’ll accomplish them. The business plan should include various road maps dedicated to the following operational elements:

• Product creation
• Operational goals

A business plan is a valuable tool internally and externally.

• Internal business plan functions: Internally, a business plan helps align its decisions with an overall road map to help it stay on track. Businesses can also use road maps to help think through difficult choices, such as headcount decisions.
• External business plan functions: Externally, a road map is critical for securing funding from outside investors like angel investors . A business must demonstrate to investors that it has a solid business plan with achievable goals and a road map to success. 

What should a business plan include?

Typically, a business plan should include the following elements: 

• Executive summary. An executive summary highlights a business plan’s essential elements. Readers should be able to understand your business plan by reading your executive summary, even if they don’t read the rest of the document.
• Budget. A small business budget should include overall operational and personnel costs. Consider your payroll budget , marketing budget and other departmental budgets.
• Market analysis. A market analysis should include a thorough market assessment that identifies competitors, your target customer , customer buying habits, marketing demographics and what customers are willing to pay. A market analysis may include a competitive analysis that dives more deeply into direct and indirect competitors.
• Product analysis. A product analysis outlines decisions about optimal product pricing. While you want to sell as many products as possible, low prices can scare off customers and eat into your profit margins, while prices that are too high will have customers turning to your competitors. 
• Marketing strategy. Your marketing plan should outline how best to market the business and its products or services. Consider digital marketing targeted to specific online and social platforms, email marketing and local marketing. 

Business plans vary in length depending on your business’s size, industry and scope. An SMB typically has a shorter and more succinct business plan than a larger, established business that operates across industries. 

Questions every business plan should answer

We spoke with six business leaders who shared their thoughts on the crucial questions a business plan should answer. Consider these six essential questions to optimize your business plan.

1. What is the competitive advantage?

Scott Locke, chair of the intellectual property department at Dorf and Nelson LLP, advises thoroughly researching copyright infringement issues when determining your competitive advantage. 

“I always look for what will give the business a competitive advantage relative to businesses that want to offer the same or similar goods and services and an analysis of the competitive landscape,” Locke explained. “I pay particular attention as to whether there is valuable intellectual property, be it patents, trademarks, copyrights or trade secrets, that will serve as barriers to entry for competitors. Similarly, I like to see a discussion of the intellectual property of the most direct competitors and how the new business will avoid infringing on it.”

2. Is the business in a growth market?

Walter Recher, principal consultant at SmallBall Marketing, says your business plan should emphasize how you plan to grow your business . 

“The key to any successful business is to be a growing company in a growth market. A business plan should articulate how the entrepreneurs will enter the market, apply their investment to prepare them to grow quickly, and participate in the expansion of an industry that is thriving, with a better-than-average growth trajectory,” Recher said. “As I have spent my career working for hyper-growth companies in rapidly expanding markets, a founder of several small businesses and adjunct professor of a course on entrepreneurship, this has been the common denominator.”

3. Will customers pay for it?

Andi Gray, founder and president of Strategy Leaders, advises examining the risks of entrepreneurship and determining what and how customers will pay for their products and services. 

“When looking at business plans, I always want to know how the owners plan to get paying customers to engage at a fee and quantity that allows them, as owners, to be in business and sustain themselves,” Gray advised. “My frequently asked question is, ‘How do you plan to feed and clothe yourself, and where do you plan to sleep while you’re getting this venture off the ground?’ My hope is that it will cause the students to consider why they are planning to take the risks of entrepreneurship.” 

4. How will the business be staffed?

Larry Holfelder, senior consultant at DJL Insurance Services Inc., emphasizes the importance of staffing considerations. 

“In every business plan, I like to see the recognition of the need to cover and staff the production, sales and finance parts of the business. Roles should be established for the entity as if it were mature and successful,” Holfelder advised. “Multiple roles should be assigned at first, if necessary, and filled with the right people as the entity grows and the timing is right.” 

Holfelder says thoughtful staffing coverage shows that the business owners are realistic. “I like to see that type of thought process because it shows me they recognize that they won’t be able to do it all themselves and that business success revolves around collaboration and management,” Holfelder said. “It also shows that they recognize their own limitations, their ability to focus on their strengths, and the need to bring in others who know what they don’t in order to reach the goals they envision.”

5. Is the product innovative?

Irwin Glenn, chief identity scientist at Hunova, stresses the importance of innovation and inventiveness as well as the team’s level of inspiration. 

“Is the idea for the product or service innovative, a unique invention, or is the dream truly inspired? Glenn asked. “By innovative, I want to understand if the business plan is centered around a new twist on already-existing technology or services delivered in a new and compelling way. If inventive, can the idea be protected against new or existing competition? Finally, is the team assembled an excellent group that can’t be stopped from succeeding? Are they inspiring to me, each other, and their marketplace?”

6. Are the plans and goals realistic?

Charles North, former president and CEO of the Dutchess County Regional Chamber of Commerce, prioritizes a realistic business plan with reasonable expectations. 

“I look for it to be a realistic business plan, not something that is pie-in-the-sky. I want to see reasonable expectations,” North explained. “I tend to look more on the conservative side, since I feel that is the safest way to go. The idea doesn’t have to be reasonable; the plan does. The idea can be anything.”

North also emphasizes the importance of sales forecasts . “I always look for projections on what the business will do in the first year, second year, third year and fourth year showing sales, expenses [and the] bottom line as the business progresses. Those assumptions have to be reasonable.”

How planning for success pays off

A great business idea is no guarantee of success, but a solid business plan is a way to start a new business off the right foot and prepare your venture for a lucrative future. 

Business plans are a vital resource for businesses of all sizes. While business plans should, at minimum, lay out a series of goals and a road map for achieving them, a business plan should also help answer questions ranging from analyzing a business’ competitive advantages to considering if its goals are realistic. 

If you think through these questions while creating your business plan, your business will be in a better position to achieve its goals and weather any challenges it may face. 

David Mielach contributed to the reporting and writing in this article.

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How To Write A Business Plan: A Comprehensive Guide

The Startups Team

How To Write A Business Plan: A Comprehensive Guide

A comprehensive, step-by-step guide - complete with real examples - on writing business plans with just the right amount of panache to catch an investor's attention and serve as a guiding star for your business.

Introduction to Business Plans

So you've got a killer startup idea. Now you need to write a business plan that is equally killer.

You fire up your computer, open a Google doc, and stare at the blank page for several minutes before it suddenly dawns on you that,  Hm…maybe I have no idea how to write a business plan from scratch after all.

Don't let it get you down. After all, why would you know anything about business planning? For that very reason we have  4 amazing business plan samples  to share with you as inspiration.

For most founders,  writing a business plan  feels like the startup equivalent of homework. It's the thing you know you have to do, but nobody actually wants to do.

Here's the good news: writing a business plan doesn't have to be this daunting, cumbersome chore.

Once you understand the fundamental questions that your business plan should answer for your readers and how to position everything in a way that compels your them to take action, writing a business plan becomes way more approachable.

Before you set fingers to the keyboard to turn your business idea into written documentation of your organizational structure and business goals, we're going to walk you through the most important things to keep in mind (like company description, financials, and market analysis, etc.) and to help you tackle the writing process confidently — with plenty of real life business plan examples along the way to get you writing a business plan to be proud of!

Keep It Short and Simple.

There's this old-school idea that business plans need to be ultra-dense, complex documents the size of a doorstop because that's how you convey how serious you are about your company.

Not so much.

Complexity and length for complexity and length's sake is almost never a good idea, especially when it comes to writing a business plan. There are a couple of reasons for this.

1. Investors Are Short On Time

If your chief goal is using your business plan to secure funding, then it means you intend on getting it in front of an investor. And if there's one thing investors are, it's busy. So keep this in mind throughout writing a business plan.

Investors wade through hundreds of business plans a year. There's no version of you presenting an 80-page business plan to an investor and they enthusiastically dive in and take hours out of their day to pour over the thing front to back.

Instead, they're looking for you to get your point across as quickly and clearly as possible so they can skim your business plan and get to the most salient parts to determine whether or not they think your opportunity is worth pursuing (or at the very least initiating further discussions).

You should be able to refine all of the key value points that investors look for to 15-20 pages (not including appendices where you will detail your financials). If you find yourself writing beyond that, then it's probably a case of either over explaining, repeating information, or including irrelevant details in your business plan (you don't need to devote 10 pages to how you're going to set up your website, for example).

Bottom line: always be on the lookout for opportunities to “trim the fat" while writing a business plan (and pay special attention to the executive summary section below), and you'll be more likely to secure funding.

2. Know Your Audience

If you fill your business plan with buzzwords, industry-specific jargon or acronyms, and long complicated sentences, it might make sense to a handful of people familiar with your niche and those with superhuman attention spans (not many), but it alienates the vast majority of readers who aren't experts in your particular industry. And if no one can understand so much as your company overview, they won't make it through the rest of your business plan.

Your best bet here is to use simple, straightforward language that's easily understood by anyone — from the most savvy of investor to your Great Aunt Bertha who still uses a landline.

How To Format Your Business Plan

You might be a prodigy in quantum mechanics, but if you show up to your interview rocking cargo shorts and lime green Crocs, you can probably guess what the hiring manager is going to notice first.

In the same way,  how  you present your business plan to your readers equally as important as what you present to them. So don't go over the top with an extensive executive summary, or get lazy with endless bullet points on your marketing strategy.

If your business plan is laden with inconsistent margins, multiple font types and sizes, missing headings and page numbers, and lacks a table of contents, it's going to create a far less digestible reading experience (and totally take away from your amazing idea and hours of work writing a business plan!)

While there's no one  right  way to format your business plan, the idea here is to ensure that it presents professionally. Here's some easy formatting tips to help you do just that.

If your margins are too narrow, it makes the page look super cluttered and more difficult to read.

A good rule of thumb is sticking to standard one-inch margins all around.

Your business plan is made up of several key sections, like chapters in a book.

Whenever you begin a section (“Traction” for example) you'll want to signify it using a header so that your reader immediately knows what to expect from the content that follows.

This also helps break up your content and keep everything nice and organized in your business plan.

Subheadings

Subheadings are mini versions of headings meant to break up content within each individual section and capture the attention of your readers to keep them moving down the page.

In fact, we're using sub-headers right now in this section for that very purpose!

Limit your business plan to two typefaces (one for headings and one for body copy and subheadings, for example) that you can find in a standard text editor like Microsoft Word or Google Docs.

Only pick fonts that are easy to read and contain both capital and lowercase letters.

Avoid script-style or jarring fonts that distract from the actual content. Modern, sans-serif fonts like Helvetica, Arial, and Proxima Nova are a good way to go.

Keep your body copy between 11 and 12-point font size to ensure readability (some fonts are more squint-inducing than others).

You can offset your headings from your body copy by simply upping the font size and by bolding your subheadings.

Sometimes it's better to show instead of just tell.

Assume that your readers are going to skim your plan rather than read it word-for-word and treat it as an opportunity to grab their attention with color graphics, tables, and charts (especially with financial forecasts), as well as product images, if applicable.

This will also help your reader better visualize what your business model is all about.

Need some help with this?

Our  business planning wizard  comes pre-loaded with a modular business plan template that you can complete in any order and makes it ridiculously easy to generate everything you need from your value proposition, mission statement, financial projections, competitive advantage, sales strategy, market research, target market, financial statements, marketing strategy, in a way that clearly communicates your business idea.

Refine Your Business Plans. Then Refine Them Some More.

Your business isn't static, so why should your business plan be?

Your business strategy is always evolving, and so are good business plans. This means that the early versions of your business plans probably won't (and shouldn't be) your last. The details of even even the best business plans are only as good as their last update.

As your business progresses and your ideas about it shift, it's important revisit your business plan from time to time to make sure it reflects those changes, keeping everything as accurate and up-to-date as possible. What good is market analysis if the market has shifted and you have an entirely different set of potential customers? And what good would the business model be if you've recently pivoted? A revised business plan is a solid business plan. It doesn't ensure business success, but it certainly helps to support it.

This rule especially holds true when you go about your market research and learn something that goes against your initial assumptions, impacting everything from your sales strategy to your financial projections.

At the same time, before you begin shopping your business plan around to potential investors or bankers, it's imperative to get a second pair of eyes on it after you've put the final period on your first draft.

After you run your spell check, have someone with strong “English teacher skills” run a fine-tooth comb over your plan for any spelling, punctuation, and grammatical errors you may have glossed over. An updated, detailed business plan (without errors!) should be constantly in your business goals.

More than that, your trusty business plan critic can also give you valuable feedback on how it reads from a stylistic perspective. While different investors prefer different styles, the key here is to remain consistent with your audience and business.

Writing Your Business Plan: A Section-By-Section Breakdown

We devoted an entire article carefully breaking down the  key components of a business plan  which takes a comprehensive look of what each section entails and why.

If you haven't already, you should check that out, as it will act as the perfect companion piece to what we're about to dive into in a moment.

For our purposes here, we're going to look at a few real world business plan examples (as well as one of our own self-penned “dummy” plans) to give you an inside look at how to position key information on a section-by-section basis.

1. Executive Summary

Quick overview.

After your Title Page — which includes your company name, slogan (if applicable), and contact information — and your Table of Contents, the Executive Summary will be the first section of actual content about your business.

The primary goal of your Executive Summary is to provide your readers with a high level overview of your business plan as a whole by summarizing the most important aspects in a few short sentences. Think of your Executive Summary as a kind of “teaser” for your business concept and the information to follow — information which you will explain in greater detail throughout your plan. This isn't the place for your a deep dive on your competitive advantages, or cash flow statement. It is an appropriate place to share your mission statement and value proposition.

Executive Summary Example

Here's an example of an Executive Summary taken from a sample business plan written by the Startups.com team for a fictional company called Culina. Here, we'll see how the Executive Summary offers brief overviews of the  Product ,  Market Opportunity ,  Traction , and  Next Steps .

Culina Tech specializes in home automation and IoT technology products designed to create the ultimate smart kitchen for modern homeowners.

Our flagship product, the Culina Smart Plug, enables users to make any kitchen appliance or cooking device intelligent. Compatible with all existing brands that plug into standard two or three-prong wall outlets, Culina creates an entire network of Wi-Fi-connected kitchen devices that can be controlled and monitored remotely right from your smartphone.

The majority of US households now spend roughly 35% of their energy consumption on appliances, electronics, and lighting.  With the ability to set energy usage caps on a daily, weekly or monthly basis, Culina helps homeowners stay within their monthly utility budget through more efficient use of the dishwasher, refrigerator, freezer, stove, and other common kitchen appliances.

Additionally, 50.8% of house fires are caused in the kitchen — more than any other room in the home — translating to over $5 billion in property damage costs per year.  Culina provides the preventative intelligence necessary to dramatically reduce kitchen-related disasters and their associated costs and risk of personal harm.

Our team has already completed the product development and design phase, and we are now ready to begin mass manufacturing. We've also gained a major foothold among consumers and investors alike, with 10,000 pre-ordered units sold and $5 million in investment capital secured to date.

We're currently seeking a $15M Series B capital investment that will give us the financial flexibility to ramp up hardware manufacturing, improve software UX and UI, expand our sales and marketing efforts, and fulfill pre-orders in time for the 2018 holiday season.

2. Company Synopsis

Your Company Synopsis section answers two critically important questions for your readers: What painful  PROBLEM  are you solving for your customers? And what is your elegant  SOLUTION  to that problem? The combination of these two components form your value proposition.

Company Synopsis Example

Let's look at a real-life company description example from  HolliBlu * — a mobile app that connects healthcare facilities with local skilled nurses — to see how they successfully address both of these key aspects.  *Note: Full disclosure; Our team worked directly with this company on their business plan via Fundable.

Notice how we get a crystal clear understanding of why the company exists to begin with when they set up the  problem  — that traditional nurse recruitment methods are costly, inconvenient, and time-consuming, creating significant barriers to providing quality nursing to patients in need.

Once we understand the painful problem that HolliBlu's customers face, we're then directly told how their  solution  links back directly to that problem — by creating an entire community of qualified nurses and directly connecting them with local employers more cost-effectively and more efficiently than traditional methods.

3. Market Overview

Your Market Overview provides color around the industry that you will be competing in as it relates to your product/service.

This will include statistics about industry size, [growth](https://www.startups.com/library/expert-advice/the-case-for-growing-slowly) rate, trends, and overall outlook. If this part of your business plan can be summed up in one word, it's  research .

The idea is to gather as much raw data as you can to make the case for your readers that:

This is a market big enough to get excited about.

You can capture a big enough share of this market to get excited about.

Target Market Overview Example

Here's an example from HolliBlu's business plan:

HolliBlu's Market Overview hits all of the marks — clearly laying out the industry size ($74.8 billion), the Total Addressable Market or TAM (3 million registered nurses), industry growth rate (581,500 new RN jobs through 2018; $355 billion by 2020), and industry trends (movement toward federally-mandated compliance with nurse/patient ratios, companies offering sign-on bonuses to secure qualified nurses, increasing popularity of home-based healthcare).

4. Product (How it Works)

Where your Company Synopsis is meant to shed light on why the company exists by demonstrating the problem you're setting out to solve and then bolstering that with an impactful solution, your Product or How it Works section allows you to get into the nitty gritty of how it actually delivers that value, and any competitive advantage it provides you.

Product (How it Works) Example

In the below example from our team's Culina sample plan, we've divided the section up using subheadings to call attention to product's  key features  and how it actually works from a user perspective.

This approach is particularly effective if your product or service has several unique features that you want to highlight.

5. Revenue Model

Quite simply, your Revenue Model gives your readers a framework for how you plan on making money. It identifies which revenue channels you're leveraging, how you're pricing your product or service, and why.

Revenue Model Example

Let's take a look at another real world business plan example with brewpub startup  Magic Waters Brewpub .*

It can be easy to get hung up on the financial aspect here, especially if you haven't fully developed your product yet. And that's okay. *Note: Full disclosure; Our team worked directly with this company on their business plan via Fundable.

The thing to remember is that investors will want to see that you've at least made some basic assumptions about your monetization strategy.

6. Operating Model

Your Operating Model quite simply refers to how your company actually runs itself. It's the detailed breakdown of the processes, technologies, and physical requirements (assets) that allow you to deliver the value to your customers that your product or service promises.

Operating Model Example

Let's say you were opening up a local coffee shop, for example. Your Operating Model might detail the following:

Information about your facility (location, indoor and outdoor space features, lease amount, utility costs, etc.)

The equipment you need to purchase (coffee and espresso machines, appliances, shelving and storage, etc.) and their respective costs.

The inventory you plan to order regularly (product, supplies, etc.), how you plan to order it (an online supplier) and how often it gets delivered (Mon-Fri).

Your staffing requirements (including how many part or full time employees you'll need, at what wages, their job descriptions, etc.)

In addition, you can also use your Operating Model to lay out the ways you intend to manage the costs and efficiencies associated with your business, including:

The  Critical Costs  that make or break your business. In the case of our coffee shop example, you might say something like,

“We're estimating the marketing cost to acquire a customer is going to be $25.  Our average sale is $45.  So long as we can keep our customer acquisition costs below $25 we will have enough margin to grow with.”

Cost Maturation & Milestones  that show how your Critical Costs might fluctuate over time.

“If we sell 50 coffees a day, our average unit cost will be $8 on a sale of $10.  At that point we're barely breaking even. However as we scale up to 200 coffees a day, our unit costs drop significantly to $4, creating a 100% increase in net income.”

Investment Costs  that highlight strategic uses of capital that will have a big Return on Investment (ROI) later.

“We're investing $100,000 into a revolutionary new coffee brewing system that will allow us to brew twice the amount our current output with the same amount of space and staff.”

Operating Efficiencies  explaining your capability of delivering your product or service in the most cost effective manner possible while maintaining the highest standards of quality.

“By using energy efficient Ecoboilers, we're able to keep our water hot while minimizing the amount of energy required. Our machines also feature an energy saving mode. Both of these allow us to dramatically cut energy costs.”

7. Competitive Analysis

Like the Market Overview section, you want to show your readers that you've done your homework and have a crazy high level of awareness about your current competitors or any potential competitors that may crop up down the line for your given business model.

When writing your Competitive Analysis, your overview should cover  who  your closest competitors are, the chief  strengths  they bring to the table, and their biggest  weaknesses .

You'll want to identify at least 3 competitors — either direct, indirect, or a combination of the two. It's an extremely important aspect of the business planning process.

Competition Analysis Example

Here's an example of how HolliBlu lays out their Competitive Analysis section for just one of their competitors, implementing each of the criteria noted above:

8. Customer Definition

Your Customer Definition section allows you to note which customer segment(s) you're going after, what characteristics and habits each customer segment embodies, how each segment uniquely benefits from your product or service, and how all of this ties together to create the ideal portrait of an actual paying customer, and how you'll cultivate and manage customer relationships.

Customer Definition Example

HolliBlu's Customer Definition section is effective for several reasons. Let's deconstruct their first target market segment, hospitals.

What's particularly successful here is that we are explained why hospitals are optimal buyers.

They accomplish this by harkening back to the central problem at the core of the opportunity (when hospitals can't supply enough staff to meet patient demands, they have to resort on costly staffing agencies).

On top of that, we are also told how  big  of an opportunity going after this customer segment represents (5,534 hospitals in the US).

This template is followed for each of the company's 3 core customer segments. This provides consistency, but more than that, it emphasizes how diligent research reinforces their assumptions about who their customers are and why they'd open their wallets. Keep all of this in mind when you are write your own business plan.

9. Customer Acquisition

Now that you've defined who your customers are for your readers, your Customer Acquisition section will tell them what marketing and sales strategy and tactics you plan to leverage to actually reach the target market (or target markets) and ultimately convert them into paying customers.

marketing Strategy Example

Similar to the exercise you will go through with your Revenue Model, in addition to identifying  which  channels you're pursuing, you'll also want to detail all of relevant costs associated with your customer acquisition channels.

Let's say you spent $100 on your marketing plan to acquire 100 customers during 2018. To get your CAC, you simply divide the number of customers acquired by your spend, giving you a $1.00 CAC.

10. Traction

This one's huge. Traction tells investors one important thing: that you're business has momentum. It's evidence that you're making forward progress and hitting milestones. That things are happening. It's one of the most critical components of a successful business plan.

Why is this so important? Financial projections are great and all, but if you can prove to investors that your company's got legs before they've even put a dime into it, then it will get them thinking about all the great things you'll be able to accomplish when they do bankroll you.

Traction Example

In our Culina Traction section, we've called attention to several forms of traction, touching on some of the biggest ones that you'll want to consider when writing your own plan.

Have I built or launched my product or service yet?

Have I reached any customers yet?

Have I generated any revenue yet?

Have I forged any strategic industry relationships that will be instrumental in driving growth?

The key takeaway here: the more traction you can show, the more credibility you build with investors. After all, you can't leave it all on market analysis alone.

11. Management Team

Here's what your Management Team section isn't: it's not an exhaustive rundown of each and every position your team members have held over the course of their lives.

Instead, you should tell investors which aspects of your team's experience and expertise directly translates to the success of  this  company and  this  industry.

In other words, what applicable, relevant background do they bring to the table?

Management Team Example

Let's be real. The vast majority of startup teams probably aren't stacked with Harvard and Stanford grads. But the thing to home in on is how the prior experience listed speaks directly to how it qualifies that team member's current position.

The word of the day here is relevancy. If it's not relevant, you probably don't need to include it in your typical business plan.

12. Funding

Funding overview.

The ask! This is where you come out and, you guessed it,  ask  your investors point blank how much money you need to move your business forward, what specific milestones their investment will allow you to reach, how you'll allocate the capital you secure, and what the investor will get in exchange for their investment.

You can also include information about your  exit strategy  (IPO, acquisition, merger?).

Funding Example

While we've preached against redundancy in your business plan, an exception to the rule is using the Funding section to offer up a very brief recap that essentially says, “here are the biggest reasons you should invest in my company and why it will ultimately benefit you.”

13. Financials

Spreadsheets and numbers and charts, oh my! Yes, it's everybody's “favorite” business plan section: Financials.

Your Financials section will come last and contain all of the forecasted numbers that say to investors that this is a sound investment. This will include things like your sales forecast, expense budget, and break-even analysis. A lot of this will be assumptions, or estimates.

The key here is keeping those estimates as realistic as humanly possible by breaking your figures into components and looking at each one individually.

Financials Example

The balance sheet above illustrates the business' estimated net worth over a three-year period by summarizing its assets (tangible objects owned by the company), liabilities (debt owed to a creditor of the company), and shareholders' equity (source of financing used to fund the assets).

In plain words, the balance sheet is basically a snapshot of your business' financial status by laying out what you own and owe, helping investors determine the level of risk involved and giving them a good understanding of the financial health of the business.

If you're looking to up your game from those outdated Excel-style spreadsheets,  our business planning software  will help you create clean, sleek, modern financial reports the modern way. Plus, it's as easy to use as it is attractive to look at. You might even find yourself enjoying financial projections, building a cash flow statement, and business planning overall.

You've Got This!

You've committed to writing your business plan and now you've got some tricks of the trade to help you out along the way. Whether you're applying for a business loan or seeking investors, your well-crafted business plan will act as your Holy Grail in helping take your business goals to the next plateau.

This is a ton of work. It's not a few hours and a free business plan template. It's not just a business plan software. We've been there before. Writing your [business plan](https://www.startups.com/library/expert-advice/top-4-business-plan-examples) is just one small step in startup journey. There's a whole long road ahead of you filled with a marketing plan, investor outreach, chasing venture capitalists, actually getting funded, and growing your business into a successful company.

And guess what? We've got helpful information on all of it — and all at your disposal! We hope this guides you confidently on how to write a business plan worth bragging about.

Ronald Calderon

Great info for feedback my current business plan!

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Business Plan Questions: How To Set Yourself up for Success

• articles--table-of-contents#moveToHeadline" data-target="articles--table-of-contents.section">Why Having a Business Plan Is Critical
• articles--table-of-contents#moveToHeadline" data-target="articles--table-of-contents.section">What Are the Four Basic Business Questions?
• articles--table-of-contents#moveToHeadline" data-target="articles--table-of-contents.section">Additional Questions To Ask When Starting a Business Plan
• articles--table-of-contents#moveToHeadline" data-target="articles--table-of-contents.section">Business Plan Questions Checklist Help You Turn Your Idea Into Reality

“Ideas are easy. Execution is everything.” This is Silicon Valley venture capitalist John Doerr’s advice to aspiring entrepreneurs and business school students. But between an idea and its execution is planning. That’s why it’s essential to have an effective business plan. How do you do that? With clear answers to business plan questions. Here we’ve put together an all-in-one roadmap to those planning questions.

Why Having a Business Plan Is Critical

Before we jump into questions a solid business plan should answer, let’s explain why you need business plans anyway.

• Your business plan is your company’s foundation and backbone. It’s your business model and should inform every aspect of your company’s operations.
• It’s your vision statement. Your business plan lays out your short and long-term objectives and guides you from one milestone to the next. It keeps you focused on what’s relevant, especially when establishing your presence in your industry.
• It proves you mean serious business, pun intended. This is important not only if you’re looking for investors or funding but also when hiring the right people. A good business plan gives you credibility and inspires confidence in your ability to implement business success.
• It helps you understand the competition. Crafting your business plan involves studying and understanding other players in the marketplace. This will put you in a better position within the competitive landscape.
• Whether you own small businesses or large corporations, business planning questions and business plans identify your target market. It points your market analysis in the right direction to cater to your target customer.
• It clarifies your financial needs. It lays out the complex numbers. How much capital do you need? How much does everything cost? When can you expect a return on your investment?
• It determines your brand’s position in the market. A successful plan shows what niche your company can occupy and how.

What Are the Four Basic Business Questions?

What are the four basic business questions your business plan should answer? They are:

• What do you do?
• What gap in the market do you fill?
• How will you make a profit?
• Who is your target customer?

Keep scrolling and see how we dive deeper into each of these inquiries. If you can answer these four, your growing company has the competitive advantage to attract potential customers.

1. Business Plan Questions: What Do You Do?

“What does your business do?”

This is a simple enough question, right? Anyone who wants to start a company has a product or service they want to sell.

But if you want to own a successful business, you need to go further than that. It’s not enough to just know what you want to provide; you need details. For example, say you want to own a restaurant. What kind of restaurant? What food do you serve, what is your service style, and why?

The “why” behind what your business does is crucial. It has to motivate you when presenting to financing partners. It has to keep you going when you’re struggling to attract clients. It has to push you to have a competitive advantage over your neighbors.

Do you need some help getting the juices flowing? Grab a pen and paper and start writing all details about your business and what it does.

2. What Gap in the Market Are You Filling?

What is your niche? How does your brand-new company differ from your competitors? In short, what gap in the market do you fill?

However great your idea is, someone else probably thought of it too. In this fast-paced world, it takes time to develop a new way of delivering a unique product or service.

Successful business plans and models create new ways to solve old problems. You need to find which part of the market other folks overlook and figure out how to fill it. Do that, and you’ll increase your chances of getting more money and funding.

No matter your industry, you’ll face competition that’s been in the game longer than you. They’ll already have a loyal following. You need to offer something different, so customers take notice.

So how do you find your niche? Do tons of research — this time, on the competition. See what others do and identify how to set yourself apart from the crowd.

This could be by presenting your product/service differently or adding something small but special. Or mastering new technology and online marketing tools. Whatever you choose, create a distinct identity for your business and emphasize it from the get-go.

In your plan, describe what makes you different and how you will assert this advantage.

3. Business Plan Questions: How Will You Earn Money?

Money, finance, costs. These (sometimes scary) words are a big part of any effective business plan. That’s why one of the most crucial business plan questions you must answer is: how will you earn money?

And your answer needs to go further than “By selling this product/service, of course.” How your business makes money involves multiple approaches.

How are you going to sell your products/services? Where are you going to sell them? How much do your products and services cost? What unexpected expenses might you have to pay for? Do you need additional funding to cover these costs? How will you pay your workers?

Your business plan should answer all of these questions.

That way, you’ll know if your business is sustainable in terms of your financial projections. Plus, you’ll see how and where you can adjust to achieve your goals in a realistic period. Next, you’ll better understand the necessary financial risks to get your business off the ground.

Lastly, you’ll understand what funding you need to secure and what research you need to do to get there. That way, working out the maximum profitability of your venue or business won’t be such a mystery.

4. Who Is Your Target Customer?

Last on our list of the four essential business planning questions: who is your target customer?

We can talk about sales, financial projections, bright ideas, and marketing all day. But there’s only a point if you know who you’re selling to.

Apart from understanding your goal client’s purchasing decisions, you need to know as much as possible about their demographic. You need to identify their age, gender status, geographic location, education, employment status, marital status, etc.

First, identify your initial demographic. Start-up businesses and businesses that have been in the game for years have different audiences. In general, you want to begin with a specific demographic.

Get as detailed as you can. This way, you set your company up for success with folks who are the most interested in what you’re selling. As time passes, you can expand that radius to reach more people.

The best way to conduct this market analysis is through (you guessed it) research. For example, look at your competitors and see who shops at their establishment or buys their services.

Additional Questions To Ask When Starting a Business Plan

With those four business planning questions, you’ve got the start of a solid business plan. Of course, you can’t just leave it at that. Successful businesses know they must go above and beyond the bare minimum.

With that in mind, we’ve come up with more critical things to focus on if you want to succeed. Here are our top additional questions to ask when starting a business plan.

Business Planning Questions: What Is Your Marketing Strategy?

However tremendous or unique your business model, if you don’t know how to market it effectively, it will fail. Even if you add your business to Google Maps , you won’t rank high on local searches without solid marketing.

That’s why we recommend creating a firm marketing strategy outline addressing your goals and challenges. Base your strategy on your product or service, your niche, your budget, and what your competitors do.

Why do we emphasize competitor research so much? Because it shows you what works and what doesn’t.

Of course, you want to avoid copying whatever they do. (Honest business practices are the best practices.) But you should use them as inspiration for your objectives.

What Do You Need To Turn Your Dreams Into Action?

How do you turn your dreams into reality? In short, how do you go from brainstorming to doing? Say you’re a restaurateur. It’s one thing to figure out how to open a restaurant versus how to win a Michelin star .

Answering this fundamental question for a business plan should give your potential investors a clear picture of the bottom line. That way, they can decide if your business is feasible.

You need initial capital and resources to start. You should identify your starting line and understand that it varies from industry to industry. (For example, the profit that successful bars make is different than what a hotel makes.) Then, provide the details of what you need to spend from this starting line when you craft your business plan.

How much revolving capital will you need for the initial run of your business? Do you need to hire people or purchase/rent equipment? What’s the price of the equipment?

How many costs can you cover out of pocket, and which require additional support? How long will it take before you can circulate your initial capital? Include all these questions and answers in your business outline, and you’ll succeed.

What Are Your Short and Long-term Goals?

Last but not least, for our business plan questions, let’s talk about your goals. No matter your services or products, you need a timeline for short and long-term goals.

Short-term goals are ideally achieved within a startup’s first two years. Long-term goals go beyond the first two years after your business is finally experiencing its initial ROI. (Return on Investment.) Make you have realistic goals and timelines. Here are critical business goals you may want to manage:

• Reduce business overhead
• Increase productivity
• Reach a specific number of followers on social media through organic growth.
• Reach a specific number of social media followers through paid advertising
• Develop a new product or services
• Launch your new product
• Open another store

Business Plan Questions Checklist Help You Turn Your Idea Into Reality

We hope this business plan questions checklist and article help you manage your company successfully.

With this, you can craft an impressive plan for potential investors and guide your business from point to point. Remember: your first business plan will evolve as you adapt to new opportunities, challenges, and trends.

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• Understand your clients with innovative proximity marketing tools set up with your existing WiFi .
• Establish a perfect online reputation with customer reviews.

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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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Remember, a well-crafted business plan can attract investors, partners, and customers. It can also help you anticipate challenges and make informed decisions. So, take the time to answer these questions thoroughly and honestly.

Finally, keep in mind that a business plan is not a static document. It should be continually updated as your business evolves and grows. By regularly reviewing and revising your plan, you can stay on track and ensure that your business is always headed in the right direction. With a solid business plan in place, you can confidently pursue your entrepreneurial dreams and achieve success.

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

Business Plan Questionnaire

Successful business plans clearly explain a company’s business model, objectives, strategies, and competitive advantages. Use our business plan questionnaire below for a list of the questions you should answer in each section of your business plan to ensure clarity and understanding of your business’s hopes and mission. 

Download our Ultimate Business Plan Template here

What Questions Should Be Asked in a Business Plan?

The business plan questionnaire can help you with how to write your business plan . It will give you a concrete set of directions for the future and allow you to further examine and learn about the market you are entering. Be sure to provide answers to the following questions in each key section of your business plan.

Executive Summary Questions

You may ask yourself:

• What is the issue your business is addressing?
• How are you solving it?
• What are your business’s strengths?
• Why should an investor be interested in your business?

Company Analysis Questions

Ask yourself the following:

• What is your business’ mission?
• What is your history?
• What are some of your past achievements?
• What is your business’ legal structure?
• Where is your business located?
• Why did you start the business?
• How do you measure your business success?

Industry Analysis Questions

Include the answers to the following questions:

• What is the size of the market?
• What are the characteristics of the market: growth trends, units sold, employment? 
• What factors are influencing growth or decline in the market?
• Are there any barriers to entering the market? 
• Are there any government regulations that affect the market? 

    Finish Your Business Plan Today!

Customer analysis questions.

Be sure to include the following in your analysis:

• What is the size of the target customer market?
• Where are these prospective customers located?
• What are their desires and needs, and how will your business meet those needs?
• In descriptive terms, who is your target market? (what motivates them to purchase, what influences their purchasing decisions) 
• Why will your target customers seek out your business?
• What trends/purchasing shifts could occur in the market?
• How will you monitor customer satisfaction? (e.g., surveys, reviews, etc.)

Competitive Analysis Questions

First, simply focus on your competition and what they are up to.

Address the following:

• Who are your direct competitors? (e.g., other businesses in your genre) What percentage of market share do they occupy?
• Who are your indirect competitors? (e.g., other companies that may not be specified in your business’s genre, but provide similar results to that of your business) 
• What are your competitors’ strengths and weaknesses?
• What are their products and pricing like?

Then, look into your business’ competitive advantage to describe how your business will be better.

• Will you offer more or better features?
• Will you ensure better results for your users?
• Will you offer better pricing?
• Will your customer service be more efficient?
• Will you offer a better overall customer experience?

Marketing Plan Questions

A complete plan will include the following marketing plan sections:

• How will you communicate to your target customers about your product or service?
• Why are you choosing these specific avenues (e.g., website, Social Media, etc.)?
• What materials do you have or need, and what will be the cost of this?
• What do you plan to spend on marketing per prospect and per client?
• How will you retain existing customers?
• How will your business attract publicity?
• What media will you target?
• How will your product or service be delivered to the market?
• How might future changes impact your marketing?
• How will you price your product relative to others in the market to be competitive yet profitable?
• What type of payment will you accept?
• Overall, how will your marketing strategy be effective to your target customers?

Operations Plan Questions

Consider the following:

• What equipment is needed, and what is the cost?
• What are your hours of operation and number of shifts?
• How many employees will you have?
• What are the skill sets required when looking to hire new employees?
• What are your practices for scheduling, managing, and hiring personnel?
• What are the processes you will use to produce and sell your product or service?
• What is your purchasing process?
• How will finished goods be distributed?
• How will quality be measured and improved over time?
• What will your procedures to keep track of inventory look like?

Management Team Questions

In this section, answer the following:

• Who are your founding members and what is their background?
• Who are your support team members and what are their responsibilities? (include position title, person’s name, and role)
• Do you offer any ownership options to attract key management?
• Do you have any Board of Directors?
• Do you have any outside consultants that will work with your business as it grows?
• What is your business’ organizational structure? 

Financial Plan Questions

Your financial plan should include:

• Profit & Loss statement 
• Cash flow statement
• Balance sheet
• Sales volume forecast
• Personnel plan
• Break-even analysis

Here, you must gather data and convey just how much money your business will need and how much income you will earn, as well as when your business will be profitable. 

Be sure to consider the following:

• How were your numbers calculated?
• Why are the salaries and office expenses you have calculated reasonable to your business?
• Why are your expense estimates realistic?
• How have you budgeted for unexpected costs?
• Is there any debt the business currently has?
• What is the amount of equity the owners and stockholders have? 
• What is your annual interest expense?
• What is the percentage of sales issued for returns? 
• What is your average daily inventory value?
• Are you using a fixed or variable inventory method?
• What is the limit on your line of credit and the average interest rate?
• What is your minimum checking account balance to have at all times?

Your financial plan should prove that you are informed and knowledgeable on the numbers around your business. It should prove that you are aware of all potential unexpected costs or other out-of-the-blue setbacks. 

Appendix Questions

Appendices may be anywhere from just a few pages to a hundred or more.

Your appendix can include:

• Resumes of key management, blurbs on other management members
• Job descriptions/titles
• Copies of any agreements having bearing on the business plan
• Copies of licenses
• Personal and business tax returns (if applying for a loan)
• Marketing materials 
• Photos or sketches of the building, property, equipment, products 
• Industry studies or other information supporting industry trends
• Summaries of secondary market studies

Business Plan Questionnaire Conclusion

The above sample survey questionnaire for a business plan should be a guide for you to use as an outline and checklist of items that will need to be addressed in your company’s business plan. Growthink’s fill in the blank business plan includes each of these key elements and more to help your business succeed.

How to Finish Your Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

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6 Critical Questions Your Business Plan Must Answer If you want to lay the groundwork for a stable business and attract investors, make sure you're hitting these points.

By Larry Alton Edited by Dan Bova Mar 18, 2015

Opinions expressed by Entrepreneur contributors are their own.

Never underestimate the importance of your business plan . It is the backbone of your company, a foundational pillar from which your enterprise will be built. It's going to serve as the first impression for countless potential partners and investors, and it's going to serve as a roadmap for your whole business -- at least for the first several years.

In some ways, writing a business plan is easy -- there are no rules or requirements for length, format, presentation, or even subject matter. But finding the right answers to the right questions is critical if you want to lay the groundwork for a stable business and attract sufficient attention from investors.

Related: 25 Common Characteristics of Successful Entrepreneurs

1. What need are you addressing?

This is an important question because it extends beyond the simple "What does your business do?" It's one thing to outline your business in general, describing what products you make or what services you offer, but if you want a solid business plan you have to take it to the next level.

It's nice to imagine your business as providing something useful, and if you're excited about the idea, it's that much easier to think about people buying it. But you need to be logical and critical when you consider the driving force behind your customers' purchasing decisions: what fundamental customer need is your business addressing? You'll want to back this up with research that shows the need actually exists.

2. What makes you different?

It's a big world out there, and startups are constantly coming on and off the radar. Chances are, there are multiple businesses out there who are already serving the crucial need you outlined from question one. That doesn't mean you can't serve it better, or serve it in a different way, but therein lies the challenge—figuring out what makes you different.

First, you'll need to acknowledge all the major players in your space, and this is going to require some research. Acknowledge what they're doing right, what they're doing wrong, and how they're going about their business. Identify the differentiating factor that will allow you to stand out, and emphasize it.

Related: Struggling to Define Your Business Goals? Ask Yourself These Questions.

3. Who is your audience?

Here's a hint: the answer can't be "everybody." No matter how useful or practical your product or service is, there's no way you're going to be able to sell to everyone in the world. Think about factors like age, sex, education, geographic location, working status, marital status, and perform some preliminary market research to determine the best path forward.

Your key demographic may evolve over time, so don't stay too committed to one niche. Also remember, that it's easy to expand to other markets once you've established yourself in one, so if you have multiple key demographics, it may be wise to focus on one to start things off.

4. How is your business going to make money?

This seems like an obvious question to answer, but you'd be surprised how many entrepreneurs fail to elaborate on their plan. The brief answer to this question is "sell products/services," but how are you going to sell? Where are you going to sell? How much are you going to sell for?

The other side of the question is what are your operating expenses? Who are you going to pay? What services or partners will you need to pay for? And ultimately, will the amount you sell be able to surpass the amount you owe? When will you break even?

5. How will you promote your business?

Promoting your business is just as important as creating it. Otherwise, people will never know who you are. Your marketing strategy should start off based on what similar businesses before you have done. Do they rely on traditional advertising or online marketing? Do they attend tradeshows and local events, or use technology to spread the word about their existence?

Related: The Ultimate Guide to Writing a Business Plan

6. What do you need to get started?

For many potential partners and investors, this is the bottom line. All businesses have to start somewhere, but that starting line varies dramatically from industry to industry and from entrepreneur to entrepreneur. Do you need any advanced equipment? Who will you need to hire? How much will you need for an initial run? These questions should give you an idea exactly how much capital and what resources you need initially.

It may seem counterintuitive, but answering these questions isn't a one-time process. Your business plan should be a living, changing document that evolves along with your company. Throughout your course of entrepreneurship, you're going to encounter new challenges, new opportunities, and hundreds of factors you never considered as significant to your business when you were writing the initial plan. To survive, you're going to have to revise your answers to these questions and update your business plan accordingly.

Related: The Essential Ingredients to Startup Success

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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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10 Questions Your Business Plan Should Answer

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One reason people are sometimes intimidated by the prospect of writing a business plan is simple: They don't have a clue what a plan should contain. The good news is that there are no hard and fast rules. In fact, no two plans look exactly alike. For a sole proprietor, a business plan may run a couple of pages. A business plan for a large company plotting a turnaround can take up a hundred or more pages, with plenty of appendices. But to be useful and effective, all business plans should provide answers to these ten questions.

What business are you in?

The question sounds easy enough. But for some businesses, the answer isn't as straightforward as you may think. The best way to zero in on exactly what business you're in is by taking time to craft a mission and vision statement.

Consider Amazon. It began as an online bookstore. Then it morphed into a vast online discount retailer, selling everything from food to clothing. A few years ago Amazon turned into a publisher. Now, with the advent of cloud storage, it also provides a place for people to store their books and music.

Even small companies often have to give some thought to defining what their business is. Take the example of a garden maintenance company that found itself gaining a reputation for turning bland yards into showpieces. More and more people began to turn to the company not just to maintain their gardens but also to design them. The company began to realize that it could be much more successful — and charge a whole lot more — if it marketed itself as a garden design company.

How will the business make money?

You may think this would be the most elementary of all questions. But in reality, many start-up enterprises fail to formulate a business model — a fancy term that means how they'll make money. There was even a time, in the early days of the online world, when people dismissed the very notion of a business model as something from the old economy. If you build a website that's cool enough, the thinking went, success will follow. Well, it didn't always. A lot of clever websites found themselves scrambling for a way to pay the bills.

Even many conventional businesses need to think about their business model to ensure success. A hair salon may make some of its money from cutting, shampooing, and styling hair, for example, but it may also find that it can substantially boost the bottom line by selling hair care products. Thinking through all the different ways that your business can make money is crucial to success.

What does your business need to get off the ground?

Start-ups require a lot of enthusiasm and hard work, and often plenty of cold cash. One of the biggest blunders new companies make is not thinking ahead about how much money they'll need to get up and running. When the money runs out before the doors open, the best business idea in the world isn't going to spell success.

A good business plan must take into account everything that is required to start — and how much it's likely to cost. Building a little cushion into those estimates is always wise.

What is the operating budget?

The financial section of your business plan also must address how much it will cost you to run your business, month by month, and how much you need to earn to meet your expenses and make a profit. Chances are you'll need to make a bunch of decision up-front before you come up with a reliable number — decisions about where you'll do business, what kinds of equipment and staff you'll need, a marketing budget, and so on.

You'll then need to think about how much you'll charge for your product and service and how much you can expect to take in month by month. Needless to say, the more carefully you think through all these questions in advance, the better prepared you'll be.

Who are your customers?

Build a better mousetrap, the saying goes, and the world will beat a path to your door. Maybe. But to build a better mousetrap, you need to know what customers want and how much they're willing to spend.

The more you know about your prospective customers, the more successful you're likely to be. Take the time to look at what your customers like and don't like. The Internet has made it easier to understand customers. All you have to do is read through reviews on Amazon or Yelp to know what people are raving about and what they're dissing, covering a wide range of products and services. But old-fashioned tools are also effective, including customer surveys, focus groups, and simply observing customer behavior.

How will you reach your customers?

You can reach your customers these days in more ways than ever before, ranging from billboards, shop signs, newspaper ads, websites, e-newsletters, tweets, mass mailings, Facebook posts, and more. Your business plan should spell out how you intend to reach your customers and maintain an ongoing relationship with them.

Social media has created brand new ways to engage in two-way exchanges with your customers. Digital communications have greatly improved customer service for many businesses. But be advised that the Internet has also raised expectations about what great service should be. Customers are savvier than ever, and more demanding.

What sets you apart from the competition?

If you've invented something unlike anything the world has ever seen before, congratulations. You're in rare company. If you're like most businesses, you compete in a marketplace with other players. To succeed, you have to give customers good reasons to choose you over your competitors. An effective business plan should spell out those reasons and develop strategies to make the most of them.

To get started, find out all you can about your competitors and their strengths and weaknesses. Then consider how the business you're planning stacks up. Typically, businesses compete on the basis of price, quality, service, and features. But a company's image can also be part of its competitive advantage. For example, people buy Newman's Own foods not only because the quality is good and the price is right but also because of the company's image of doing good by donating a chunk of its profits to good causes. In a similar way, other companies attract customers by promoting their products or services on the basis of environmental protection.

What are your strengths and weaknesses?

This question may well be the most important one you ponder as you develop your business plan. Most people have a vague sense of what they do well and what they could do better. If you're part of an organization, you can recognize some of its strengths and weaknesses. But there's a lot that people don't face up to. The process of writing a business plan gives you an opportunity to be far more honest and thorough in your assessment. A formal SWOT analysis grid can allow you to measure your strengths and weaknesses against the opportunities and threats in your business environment.

This question is so important because business success really depends on leveraging your strengths and addressing your weaknesses. For instance, when an orthopedic institute in southern California noticed that its patient satisfaction scores were slipping, the doctors were puzzled. The institute's complication rates were very low. The length of time patients spent in the hospital was below the national average. The medical staff, it seemed, were doing a great job. But in surveys, many patients complained that the care felt impersonal and rushed. To remedy the situation, the institute hired social workers who met with patients when they were admitted and again before discharge to talk over their concerns. The institute also scheduled a follow-up call between surgeon and patient a month after discharge. A year later, patient satisfaction scores were back on top.

What are the biggest challenges you face?

Every business faces challenges, especially in competitive markets or with technological change. Your business plan should describe in detail the particular challenges you face and how you plan to overcome them. The challenges can be part of the business environment you compete in — a crowded field of competitors or regulatory uncertainties, for example. But some of the challenges you face are also likely to be related specifically to your company, such as hiring and holding on to skilled employees, for instance, or responding quickly to changes in the marketplace.

How will you measure success?

The simple answer to this question is money. Make enough money, and any business is a success. But in fact, for most enterprises, the answer is more complex. The most obvious example is a not-for-profit company. Consider a nonprofit community orchestra. Its success is measured in terms of filling seats for its concerts and providing local musicians a chance to play. Or consider a food bank. It spells success in terms of reaching as many people in need and giving them nutritious food as possible.

Your business plan should acknowledge all the ways you plan to measure your success. Your financial section will look at dollars and cents. Your goals and objectives will mark off specific mileposts that will help you chart your progress. Your mission and value statements will serve as a guide to the less tangible items that spell success for you.

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4 Questions Your Business Plan Must Answer to Prove Your Idea Works

Posted june 11, 2024 by kody wirth.

Could your idea actually become a real business? 

To find out, you only need a simple one-page plan filled with bulleted lists and notes about your business.

Nothing fancy, just a functional document that can help you validate or invalidate your idea by answering four key questions.

1. What problem does your business solve?

Real businesses solve actual problems. 

“This is probably the most important thing for entrepreneurs to think about and understand: How does your business make life better for your customers?” — Noah Parsons, COO at Palo Alto Software

You may provide critical life-saving solutions, such as glucose monitors for diabetics, or something more lighthearted, like a luxury lounger for your labradoodle.

The point is that your business fits into people’s lives. That you provide real value.

Do you save them money? Do you make their jobs easier? Do you make their lives more convenient or enjoyable?

So, how does the one-page plan help you define the problem? Well, it comes down to the first three sections:

• Your value proposition
• The problem you solve
• Your solution

You can tackle these in any order.

But defining the problem and how you’ll solve it first will make explaining what you do much easier.

If you struggle to get more than a few words down for any of these sections—that’s a sign you need to go back to the drawing board.

Further Reading: How to create a problem/solution statement

2. Who is your target market?

Answering what problem you solve is really a two-part question. The other half is determining who you’re actually solving a problem for. 

These are your ideal customers .

Your target customer shapes your entire business strategy—from product positioning and pricing to sales channels and marketing. It’s about getting inside the head of your customers to create products and services that truly resonate.

And creating a one-page plan helps you do that. It forces you to address the problem, what solution you have in mind, and quickly describe who will benefit from it.

For this work, you’re sticking to bulleted lists and either adding a handful of potential customers or describing one segment with a list of demographic information. This gives you enough to then go out and actually talk to these customers and verify if there’s any real interest.

Imagine you’ve created a low-calorie, probiotic-rich soda with natural sweeteners. Who will buy it? 

• Young parents concerned about sugar? 
• Health-conscious professionals seeking an energy boost?
• Trendy Gen Z college students? 

Each group has unique needs, which impact where they shop, how they discover products, and what messaging and product design appeal to them.

These are the people you need to connect and test your product with.

Further Reading: How to Validate Your Business Idea

3. Why is now the right time to start your business?

Timing is everything in business. 

Your reasons for starting, experience, and commitment level all matter. So does the current market landscape, emerging trends, and what your competitors are up to.

So, you need to explain:

• Why you’re the right person: What unique skills, knowledge, or connections do you bring to the table?
• Your vision: What milestones are you aiming for, and what’s your timeline?
• Market opportunity: Is there a demand for your product or service? Are there favorable market trends? What businesses are already present?

Luckily, the one-page plan has you address these points across a few sections (your team, milestones, and competition). Like everything else, it’s not meant to be overly detailed or perfect. You’re just trying to get down enough information to answer the larger question.

Let’s say you’re a software engineer who has noticed a growing trend toward digital health solutions and a lack of user-friendly pain management tools. 

This could be your chance to fill a gap in the market.

To demonstrate that it’s a good opportunity, you may highlight your:

• Technical expertise and understanding of user experience design. 
• Knowledge of the growing demand for accessible medical solutions. 
• Existing connections with healthcare providers and plans to partner with them to improve reach and trust.

These three points help answer why you’re the right person, what the opportunity is, and what milestones you need to hit.

4. How will your business make money?

This is the big one that stories of notoriously unprofitable startups may make you believe is unnecessary. 

It’s not just about covering expenses. It’s about earning enough revenue so you can grow sustainably. 

If that sounds stressful, don’t worry. The beauty of a one-page plan is you don’t actually have to dig into the numbers just yet.

You’re just listing potential revenue streams and expenses , trying to get an idea of how you would actually monetize the idea and what costs may be involved.

A dog walking business might generate revenue through:

• Group walks: Offer discounted rates for walking multiple dogs at once.
• Private walks: Cater to owners who want one-on-one attention for their furry friends.
• Pet sitting: Expand services to include overnight stays and basic pet care.
• Training sessions: Offer specialized training classes for dogs of all ages and breeds.
• Add-on services: Provide extras like pet taxi services, grooming, or medication administration.

If you were to actually start this business, you may not initially offer all of these services. However, having multiple revenue options in mind allows you to test customer interest and plan for ways to grow. 

Tip: Use the AI-powered LivePlan Assistant to generate possible revenue streams and expenses for your business.

Writing a business plan helps you answer questions at every stage

It’s never too early to write a business plan.

Research shows that you are actually 152% more likely to turn an idea into a business if you create a plan. And planning early can stop you from wasting time and money on an idea that simply won’t work (at least in its current state).

That’s because your plan provides answers, or at least ways to find answers, about your business. And it’s not limited to just formalizing an idea.

Revisiting, revising, and expanding your plan can help you answer more difficult questions as you:

• Start your business
• Pursue funding
• Look for opportunities to grow

And don’t worry—I’ll address what specific questions your plan helps answer at those business stages in future articles.

Make planning easier with LivePlan

If you want to create a business plan that grows with you and helps answer these questions (and more), try LivePlan.

LivePlan combines your business plan with powerful budgeting and forecasting features to make every effort count. With a single tool, you can go from exploring a potential idea to creating detailed forecasts and pitching your business.

Try it out today risk-free .

It’s the perfect tool to start, plan, manage, and grow your business.

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50 Questions to Ask Before Starting a New Business

Starting a business is an inherently risky venture. Getting your business off the ground requires a plan, capital, and a whole lot of hard work. From coming up with a great business idea to creating the proper business structure to execute this idea; from raising the money to fund startup costs to conducting the market research to justify your company’s raison d’etre, there are tons of steps before you can even think about opening the doors (physical or virtual) to your customers.

If you’re looking for a quick pathway from idea to implementation, we strongly recommend jumping from here to our article highlighting the 10 Steps to Starting a Business.

On the other hand, if you’re still in the early planning stages, you’ve come to the right place. The best way to really get the ball rolling is to start by asking yourself all the tough questions first. While you may not have an exact answer for each of these questions, this collection of inquiries is a great way to get you thinking about everything–big and small–that goes into launching your own business.

50 Questions To Help You Start a Successful Business

There’s obviously a lot that goes into getting a business off the ground. So how can you be sure you’ve thought of everything first? Well, you can’t. Rule number one–be prepared for the unexpected as a business owner. That said, you can take every possible step to reduce the risk of the unexpected. We’ve devised 50 critical questions to help you do exactly that. Because there’s a lot here, we’ve divided these questions into specific areas. Read on to find out which questions you should be asking about your Business Idea and Structure, the Competition and Customers shaping the marketplace, the Financial and Organizational components you’ll need to address to build your business, and finally, the Brand that you’ll be working to establish.

The Business Idea

1. What problem are you solving?

This is the very first question you need to ask yourself, because it will ultimately tell you whether or not there’s an actual need for the product or service you plan to market. Where did your business idea come from? Have you observed an unsatisfied demand for a certain product or service, or the need for innovation or improvement in the way a product or service is delivered? Perhaps you’ve found a way to offer quality with greater affordability, or a faster delivery system, or simply with a more customer friendly approach than the industry standard. Whatever it is that roots your business idea, be sure it’s something that addresses an actual problem with a viable solution. Moreover, be sure that the solution you’re offering is also profitable. Indeed, your goal here is to identify the need for your idea as well as the ability of this idea to generate profit.

2. Do you have a business plan?

Of course, it’s one thing to say that you have a great idea that can render a profit. It’s another thing to show it. That’s what your business plan is for. This is your chance to explain your idea in its entirety–to conduct a SWOT (Strengths; Weaknesses; Opportunities; Threats) analysis; to elaborate on the key features of the broader marketplace including the competition and the customers; to present financial forecasts that demonstrate the idea’s profitability; and more. That said, there aren’t necessarily any formal rules on what must be in a business plan. As an article from the Small Business Administration (SBA) notes, “A business plan is a written tool about your business that projects 3-5 years ahead and outlines the path your business intends to take to make money and grow revenue. Think of it as a living project for your business, and not as a one-time document. Break it down into mini-plans – one for sales and marketing, one for pricing, one for operations, and so on.” Ultimately, this will be a valuable document for securing bank loans, investor funding, or just for giving yourself a set of meaningful benchmarks to pursue. Developed properly, your business plan should give you the chance to think objectively about the various moving pieces that must ultimately come together to transform your idea into a reality.

3. What is your Unique Selling Proposition (USP)?

What is the value that you will offer your customers? Is there really a demand for this value, and can you actually deliver it? And can you deliver that value in a way that betters the current offerings in the marketplace? The key behind a great idea is that it will likely resonate with prospective customers either because it provides something heretofore unseen in the marketplace, because it significantly improves upon something in the marketplace, because it improves the accessibility of something in the marketplace for which there is great demand, or because it otherwise represents a distinct value to the customer that cannot be obtained elsewhere. Make sure you fully understand what makes your product or service offering unique, and just as importantly, why these unique properties represent a chance for profitability.

4. Is there a proof of concept for your idea?

So you’ve established the unique value proposition implied by your idea. But how can you be sure that it’s something people will actually pay for? That’s where proof of concept comes in. According to the definition provided by the Gartner Glossary of business terms, a proof of concept “is a demonstration of a product, service or solution in a sales context. A POC should demonstrate that the product or concept will fulfill customer requirements while also providing a compelling business case for adoption.” In other words, is there some precedent to prove that people will pay for what you’re offering? While your offering may be a unique proposition, is there a track record of success for similar product or service offerings? Have you yourself experienced even anecdotal success selling others on your product or service? And is that anecdotal success compelling enough to justify the launching of an entire business? In short, you’re looking to find the perfect balance between something that is at once novel and proven–a unique value spin on a product or service with a proven track record.

5. Have you thought of a good business name?

Believe it or not, this is one of the toughest parts of the process. Coming up with the perfect name can be genuinely challenging. And that makes sense. After all, a lot rests on a business name. The right name effectively describes what your business does, conveys the identity of your business, and gives your target customers something memorable to latch onto. While an imperfect name may not doom your business idea to failure, the perfect name could be a real game changer in your pursuit of success. Don’t rush this stage. Take the time to brainstorm ideas, run them by people you know and trust, and don’t settle for something that doesn’t feel right. Once you come up with the right business name, you can move on to the clerical steps like registration, licensing, and tax filing.

6. Can you explain your business idea in just a few words?

There’s an old adage that says, “if you can’t explain it simply, you don’t understand it well enough.” The quote is sometimes attributed to Albert Einstein, though historians have generally disputed this, especially in light of the actual complexity of his scientific theories. To wit, it may well have been coined by an unknown business magnate, because it applies brilliantly to the notion of a business startup. You need to be able to explain your business idea in as little as 30 seconds–the length of the so-called elevator pitch. This is important, because that’s about how long the attention span is of the average person. The attention span may be even shorter for the average venture capitalist. If you’re looking to excite others about your idea, perhaps even enough to net a few worthy investors, you need to be able to convey your business idea in a way that is at once compelling, clear and concise.

The Business Structure

7. What will be the legal structure of your business?

Now is the time to determine the best legal structure for your business based on the scale of your operation, the legal liabilities specific to your sector, and the nature of your product or service. Will your business be a sole proprietorship, a limited liability company, a partnership, or a corporation? Is your business intended as a non-profit entity, a religious organization seeking tax exempt status, or a traditional brick and mortar business in the retail space? Each of these entity types will come with its own specific rules for registration, licensing, tax status, operational regulations, and more. It’s up to you to determine which of these models makes the most sense for your product or service. If you’re not sure, this is a great time to consult a business attorney. You’ll want to be sure you get this step right as so many subsequent steps will hinge on making the right call here.

8. Do you need to register your business? 

The answer to this question may be different for every aspiring business owner and will depend on factors like your locality, the nature of your business, and the intended scale of your operation. In most cases, registration will be pretty straightforward, but it may not always be necessary. As an article from the Small Business Administration (SBA) notes, “For most small businesses, registering your business is as simple as registering your business name with state and local governments. In some cases, you don’t need to register at all. If you conduct business as yourself using your legal name, you won’t need to register anywhere. But remember, if you don’t register your business, you could miss out on personal liability protection, legal benefits, and tax benefits.” As long as you’re speaking with a lawyer about the structure of your business, you’ll probably want to inquire about these protections and benefits. Determine whether or not it makes sense to register your business. But bear in mind that you’ll probably need to register your business in order to respond in the affirmative to the next question.

9. Do you have an Employer Identification Number (EIN)?

This is important because you’ll need this number for just about everything else that comes with starting a business. Your EIN is kind of like a social security number, but for your business. This is what the U.S. government uses to identify your business as an official taxpaying entity. As an article from the Small Business Administration notes, “Your Employer Identification Number (EIN) is your federal tax ID. You need it to pay federal taxes, hire employees, open a bank account, and apply for business licenses and permits. It’s free to apply for an EIN, and you should do it right after you register your business.” The SBA explains that you’ll need an EIN to do everything from operating as a corporation to establishing a partnership; from paying employees to filing tax returns for employment; from withholding income tax from employees to overseeing certain tax-deferred pension plans. In other words, getting an EIN should be among your first steps. The good news is that it’s pretty easy to get an EIN directly through the IRS EIN assistance portal .

10. Do you have a general business license? No matter what kind of business you plan to operate, you are required to have a business license. In the vast majority of cases, a General Business License will suffice, and this will usually be issued by your locality. According to an article from Investopedia, “ Any business, including home-based businesses, must obtain a local city or county business license. This is a basic license that allows the holder to engage in business activities within the local jurisdiction. If your city or county doesn’t have a specific business licensing department, you can obtain information on obtaining a basic business license at your local tax office.”

11. Does your business model require a special sales tax license?

Depending on where you plan to operate, this license may already be included as part of the general business license. But this is not always the case. And where it isn’t the case, you are legally liable for ensuring that you do carry this additional licensing. According to the article from Investopedia “A sales tax license may be part of the general business license in some areas. But a separate sales tax license is required in other areas in addition to a local business license. Not sure if you need a separate tax license? The local department from which you obtain a business license can tell you if you must obtain a separate sales tax license and where to get it at either the state or local level. Make sure that you have this covered before you open your business.” Indeed, failure to do so could actually make you criminally liable.

12. Do you require special permits to conduct your business?

However you slice it, you will need to get this license. However, there is also specialized permitting that you may need to get. This will largely depend on the nature of your business. Permits, as per their name, give you permission to engage in specific business activities within your locality, and will usually be granted by a professional association specific to your sector. For instance, say the article from Investopedia, “ Environmental licenses or health department permits are less common for home-based businesses. These documents are most generally required for businesses that engage in the wholesale or retail sale of food and beverage products. In any event, it’s easy enough to check with state environmental protection agencies or local health departments to find out if your business requires any type of environmental inspection or permit.”

13. Do you need specialized insurance?

The answer to this question will depend on the nature of your business, as well as the organization, resources, and personnel involved in this business. If you are a sole proprietorship selling a creative service like web design or digital marketing, you won’t likely require any special insurance coverage to operate out of your home office space. On the other hand, if you plan to rent or purchase property for the operation of your business, you plan to hire employees, you expect to operate vehicles or machinery in the production or delivery of your products or services, or you are manufacturing a retail item that will find its way into the homes of consumers, you may need to carry certain specialized insurance policies. This may include commercial property insurance, professional liability insurance, or general liability insurance. Some small business owners will choose to carry a generalized business insurance simply in order to mitigate unforeseen risks and legal entanglements. If you’re not sure which types of insurance are recommended or required in your sector, consult a business attorney.

14. Are there zoning requirements you need to be aware of?

Before you start a business in your locality, make sure you’re aware of any practical legal limitations on what you can and can’t do. If you’re planning to rent or purchase a property, be sure you understand all the zoning rules in your municipality and county. Will your business objectives be in compliance with these rules? Are there additional steps you’ll need to take, and expenses you’ll need to sustain, in order to achieve compliance? You may need to ask these same questions if you plan to run your business out of your own home. Be sure that you are aware of any rules or regulations imposed by your township or country regarding the operation of certain business types from spaces that are zoned as residential properties.

15. Does your Home Owners Association (HOA) have any rules about operating a home business?`

Speaking of operating a business out of your own home, many communities and developments are overseen by organizations called Home Owners Associations (HOA). HOAs often have pretty far reaching rules about how you can and can’t use your residential space. Some may even have restrictions on operating a business out of your home. This is something you’ll want to be aware of before you attempt to launch a business from your home office or backyard workshop. If your HOA forbids this type of commercial activity, you may be required to rent or purchase an alternative space for the operation of your business. Naturally, this means you’ll need to factor this cost into your operating expenses.

The Competition

16. Who are the leading competitors in the space you’re entering?

Find out everything you can about the businesses that are leading in your space. Which companies are dominating in sales and market share? Which companies have succeeded in establishing a sturdy reputation in the space, and which entrants have made the biggest splash as innovators? In addition to finding out who these competitors are, you should know how each one has built a successful business in the space you plan to enter. An article from Business News Daily advises exploring all aspects of your competitors’ business to achieve a comprehensive understanding of what has allowed them to succeed. According to Business News Daily, “these aspects could be pricing, distribution and delivery strategies, market share, new products or services coming to market, who their long-standing, highest-spending customers are, the quality of after-sales support, and which sales and marketing channels they use.”

17. Is there room for a new entrant?

Now that you understand a bit more about the competition, you should be in a better position to honestly assess this question. How much space is there in the market for a new entrant? Are you facing down a field in which the competition is endowed with billions of dollars in operating capital? Is the field saturated with other startup businesses looking to build their own reputations as trailblazers? (Cryptocurrency industry–I’m looking in your direction.) As you prepare to make your own splash in a selected marketplace, do some honest soul searching about how much space there really is for your idea in this sector. If you find a marketplace that is deeply tilted toward just a few monopolistic entities, or one that is absolutely teeming with would-be innovators, you may want to turn your attention elsewhere.

18. Are you looking to innovate in your field?

Speaking of innovators, are you among them? This ties directly into the question of your Unique Sales Proposition (USP). Are you preparing to offer a product that significantly enhances what has previously been available in the marketplace? Is your service offering a meaningful step forward from previous service offerings in the same space? If you are offering customers something that is truly a distinctive, first-of-its-kind purchasing opportunity, you may be in a position to transform the marketplace, and place yourself at the forefront of this transformation. Before you enter the field, determine whether you plan to work within the parameters already established by those who came before you or whether you plan to disrupt the industry with exciting new innovations.

19. How will you differentiate your business offering from the competition?

Of course, innovation isn’t the only way to differentiate your offering from others in the marketplace. You can find ways to make your products and services more affordable, more accessible, more efficient, or more functional. Even incremental improvements in what’s available could set your company apart. An article from Business News Daily asks, “Could you improve the quality of your products or services by adding or amending a feature, lowering the price to be more affordable or improving after-sales support? Could you achieve a better ROI on your marketing budget by investing in a more capable CRM for better lead management?” Determine how you will set yourself apart, both from those who have established themselves as leaders in the space, and from those who are going head to head with you at the startup tier.

20. Is there anybody else who can do what you plan to do?

Do you have an ace in the hole–something that your business will do or offer that nobody else can replicate? Have you invented an exciting proprietary technology, or created an unparalleled synergy with another business partner, or is your team simply loaded with the type of intellect and talent that other companies can’t match? Identify the greatest strengths that your business has to offer, whether these are features embodied in your personnel, your products, your structure, or all of the above. Once you know what these strengths are, do everything you can to magnify them. These strengths will be your greatest selling point when it comes to beating the competition.

21. How has this industry or space changed in the last several years? Where is it going in the future?

Beyond just studying the current players in your business, you should have a strong sense of the history of your space. What are the trends and innovations that have helped to shape your area of the market? Are there technological or conceptual developments that have been inflection points in this field? And how has the field evolved since these inflection points? Try to gain a full understanding of the leading trends in the marketplace, as well as the path that led to this point. The better you understand what came before, the more readily you will be able to anticipate future developments in your field. Naturally, this anticipation could be the key to tremendous success.

22. What do the success stories in your industry look like?

Speaking of success, it’s not a bad idea to get a firsthand glimpse at exactly what this looks like. You’ve already identified the leading competitors in the field. Now find out what got them to where they are today? What was the unique value proposition that each of these successful businesses offered? What innovations did these businesses bring to the market? In short, what were the keys to their success? Whether you hope to replicate, build on, or surpass that success, the first step is to fully understand how your competitors achieved it. Every company has a story. Explore these stories and think about how they can inform your success.

23. What do the failures in your industry look like?

Not to be negative, but you can also learn a lot from the failures in your midst. Just as the sector you plan to enter is populated with winners, the world of business must also have losers. Find out more about the also-rans, the companies that tried, failed, and folded. These are cautionary tales with tremendous value to you, as a new entrant into the field. What were the causes of their failure–a failure to differentiate themselves, a lack of capital, poor organization, or just bad luck? All are possibilities, and more. Before you launch your business, use these stories of disappointment and poor fortune to identify, anticipate and sidestep your own pitfalls.

The Customers

24. Who are your customers?

Now that you know the competition, it’s absolutely critical that you also identity your customer base. Which demographics do you expect to serve, and more importantly, how well do you know the real people who make up these demographics. You need to understand your target if you are to effectively market to these populations. One helpful exercise here is to actually create target customer personas as hypothetical use cases for your products or services. To clarify, we mean that you should literally write out 300 word descriptions of imaginary customers–who they are, what their needs are, and why they are likely to find your product or service offering to be the ideal solution to that need. Beyond identifying customers by what you perceive to be key demographics, this exercise should allow you to hone in on individual customer types. Create characters around these customers and do your best to put yourself in their shoes. The better you understand exactly who your customers are, the easier it will be for you to identify their needs and provide products and services that effectively meet these needs.

25. Is there a large enough market for your product or service to fuel a profitable business?

Identifying your target customers should naturally lend an answer to this subsequent question. Does the customer base that you’ve identified constitute a large enough population to support your product or service? In the section below, we’ll discuss some of the financial components of starting a business. These will make it a bit easier to address a question like this. But on its own, the purpose of this question is to determine whether there is realistically a large enough market for your offering to fuel a profitable business. Without enough prospective buyers, it won’t matter how innovative your idea is. It will still be unlikely to generate a profit.

26. How will you market yourself to your target customers?

Now that you know who your customers are, and how many of them are out there, you have to figure out how you’ll reach them. This means determining where your prospective customers hang out. Are they online, browsing store aisles, or doing a bit of both? Are they reading print ads, clicking onto products from various social media accounts, or making their purchasing decisions based on word of mouth? This offers further motivation for getting to know your intended target market on a deeper and more personal level. As an article from The Score explains, “Knowing your target audience will also help you know how to market your business. For example, younger audiences may be attracted to social media channels, such as Snapchat or Instagram, while B2B audiences may respond better to webinars and white papers. Do you want to focus on SEO and content marketing or do you want to spend time gaining reviews and word-of-mouth referrals? Before you start a business, it’s important to understand where and how you are going to market that company. The best brands in the world have figured out how to communicate their value proposition effectively.” You need to be able to draw the triangulating lines that connect your marketing strategy, your value proposition, and your customer.

27. What is your marketing budget?

On the one hand, there’s the strategy you plan to implement in order to reach your prospective customer base. On the other hand, there’s the actual amount of money that you have with which to do so. Again, we’ll address some of the financial components of your startup business in the section below. But the purpose of the question in this section is to incline you to think realistically about what it costs to reach your targets through the various channels where you are most likely to find them. Will you be budgeted for a robust marketing campaign right out of the gate, or will you opt for a soft launch while you raise additional funding? The latter option may even be preferable if you are still in the process of working out the kinks in your product or process. In other words, you’ll want to develop an initial marketing budget based both on your available resources and your readiness for an influx of new customers.

28. Are your customers local, online or both?

Speaking of new customers, where are you expecting to find them, and where are you most likely to complete transactions with these customers? Is your business a strictly online business with a national or even global customer demographic? Is your business a strictly local operation like a landscaping business, a wedding cake baker, or a dentist? If it’s the latter, your strategy for reaching customers will likely be quite different from the strategy of those in the former category. Geography matters when marketing to your customer base for a variety of reasons, including its impact on the channels you will use to reach them, the language and tone you will use to engage them, and the nature of the products and services you will make available to them. Make sure your product or service offerings, and your marketing strategy, match the practical geographical expectations of your target.

29. Are there underserved groups in this space, or gaps in the marketplace?

Have you identified a unique subset of your chosen marketplace that is not currently being reached by your anticipated competitors? This could represent the opportunity to fill a need in your space. Remember those target personas that you developed? Now let’s think of some personas that are not having their needs met in the current marketplace. Are there prospective customers who are being priced out by the cost of products and services in your industry? Are there customers who require a more specialized type of service that simply isn’t available? Is there a geographic or cultural enclave that isn’t being reached by the messaging and marketing of current competitors? Try to find gaps in the way the marketplace is being served. These gaps could represent a substantial opportunity both to address unmet customer needs and to facilitate the growth of your business. Depending on the nature of your business, carving out a specialized niche could be just as profitable as taking a lead position in the industry, writ large.

The Financial Components

30. What are the startup costs for your business idea?

Once you’re certain that there is both space for your ideas in the industry and customers to help make your idea marketable, it’s time to get down to dollars and cents. How much money do you need to get your ideas off the ground? Startup costs will usually include a variety of administrative fees for licensing, registration, permitting, zoning, etc. These costs will also include property rental or purchase, any necessary insurance coverage, contract labor, employment costs, production costs, marketing costs and more. Clearly, there’s a lot of expense that comes with the start of a new business. Make sure you have a full sense of what those costs are. Refer back to your business plan for specifics. Hopefully, those specifics will also help you pin down sources for funding, whether these startup costs come from angel investors, venture capitalists, bank lenders, or from your own pocket.

31. What does it cost to make your products or deliver your services?

In addition to start up costs, you’ll need to know the operational costs of your business before you start paying the bills. If you’re manufacturing a product, you’ll need to calculate the costs of materials, labor, and delivery on the supply chain. If you’re delivering a service, you’ll need to calculate the costs of personnel, transportation, and actual labor. Do some research on your competitors to find out what they’re spending on these line items. Before you can determine what to charge for your goods and services, you need to know what it will cost you to deliver them.

32. Are there commodities that you’ll require that come with fluctuating costs?

Of course, that is easier said than done. That’s because many of the key commodities that businesses rely upon for production or for the delivery of services can fluctuate dramatically in price. The most obvious example is gas. Countless factors can impact the price of gas from inflation and supply chain disruption to natural disasters and political unrest. Of course, these occurrences can be highly difficult to predict, which means the price of this essential commodity can be difficult to anticipate. This directly impacts businesses that rely upon gas-powered vehicles for delivery or gas powered machinery for manufacturing. And of course, this is just one example. Shifts in the cost of lumber can have rippling effects on costs for builders and contractors. Changes in the availability of corn, rice, wheat, or soy can impact prices across the food distribution and service industries. These pricing fluctuations can impact profit margins and ultimately shape the price that you pass along to consumers. These fluctuations can be quite unpredictable. As you initiate your business, take into consideration your reliance on commodities that tend to fluctuate in value. To the extent that is possible, you’ll want to prepare for these possibilities in both your budgeting and pricing structure.

33. How will you price your products or services?

Speaking of pricing structure, it’s important to establish a price point for your products and services that makes sense within the scope of your industry and the broader economy. An article from Forbes notes that pricing is a delicate balance. Forbes points out that “You don’t want to over priced, but you don’t want to price your products too low. This is where research comes in handy as you want to look at what your competitors’ price their products at. Are your items the same, more luxurious or more simple? You also want to take into consideration the packaging and postage costing as well as maintaining the business overall. Where do you fit in the market for your target consumers?” Make sure you establish a price that consumers are likely to accept, but one that also ensures the profitability of your business regardless of your operational costs and potential fluctuations in the cost of commodities.

34. What is the product life-cycle for the goods or services you plan to deliver?

Obviously, you want to provide high quality products and services. This is a great way to ensure customer loyalty. On the other hand, nothing lasts forever. Do your products have a relative expiration date? Does the impact of your services have a diminishing benefit over time? In other words, will your customers ultimately need to update or upgrade the products they’ve purchased from you? Will they need regular service visits to ensure the continued effectiveness of the services rendered? This is important to know, because the timeline from initial purchase to subsequent purchase or service visit may tell you a great deal about your company’s profitability. If the goods and services you offer do indeed have a finite lifespan, be sure you have positioned your company to provide the appropriate replacements or repairs when the time is right.

35. How will you define financial success?

We recognize that this is a fairly broad question, but it is worthwhile to identify some financial benchmarks by which to log your own successes. Before you launch your business, you should have a clear sense of the milestones that you will use to mark your progress. Will you be targeting a specific amount of annual revenue; a break even point based on your initial investment; or a certain degree of profitability? What financial achievements will you use to track your company’s progress? Identify these measures in advance so that you have some concrete financial goals to shoot for.

36. Will you be opening a separate business bank account?

This is a good idea even if you operate as a sole proprietorship. A designated business account can make it a great deal easier to conduct effective accounting, to keep your personal finances separate, and to process customer payments. Indeed, you can set your business account to feed inputs into your accounting software, to accept credit card payments, to make payments on your business credit card, and more. In the simplest terms, you really should have a separate business bank account even for the smallest and most independent of operations. It helps to keep things clear and organized while reducing your personal financial risk.

The Organization

37. What skills do you bring to the table? What skills will you need to source from others?

You’ve decided to launch your own business, so obviously you are enterprising and ambitious. But what other virtues do you bring to the table? Are you good at delegating responsibilities and communicating ideas to others? Or are you better at wheeling and dealing with other business leaders? Do you have a gift for understanding and connecting with clients or are your skill sets more technical? It’s important to identify the talents you bring to the table for a few reasons. First and foremost, you’ll want to channel your greatest strengths into helping get this company off the ground. But secondly, and just as importantly, you’ll want to identify the areas where you may not be as strong. These are areas where you might want to enlist engagement from others. If you excel at business planning but are less skilled at engaging personnel, you may wish to partner with somebody who has managerial skills. If you bring a ton of technical expertise to the table but you don’t really know how to crunch the numbers in order to turn a profit, bring in somebody with financial management experience. In short, identify the areas where you excel, and partner with those who excel in areas where you don’t.

38. Are you still planning to work your day job?

This is worth asking if only because it underscores just how much time you’ll be able to invest in launching your own company. It’s understandable that you wish (or need) to retain your paying income even as you work to get a new company off the ground. But if this is the case, you simply need to be realistic about how much time you have to invest in your new venture. Divided attention may delay or even stand in the way of establishing a successful business. Taking the leap from full time work into full startup mode can be scary, but it may also be the only way to make it really work. If you have a day job with flexibility, you may be able to do both. But if your daily work responsibilities are standing in the way of your ability to launch a new company, you may want to think very seriously about taking the full leap into your new venture, and if possible, paying yourself a salary from the startup funding or revenue generated by this business.

39. How many employees will be needed to make this business work?

Speaking of taking a salary, you may not be the only one that your new company must pay. If you are a sole proprietorship, this probably isn’t a concern for you. But most business enterprises require other people to succeed. How many people you need to succeed will depend entirely on the initial scale of your organization. To the point, an article from Forbes notes the importance of anticipating the startup scale of your organization. Realistically speaking, what are the labor requirements for making your idea into a reality? Forbes notes that you may be “starting this business solo or with a business partner, but you also want to consider how many employees you will need as the time goes on. This is important to consider if you are beginning a business with the idea that it will scale up in the future, and require a team for growth.”

40. Is your business idea scalable? Can your company grow, and if so, what will that mean?

Speaking of growth, what do you envision for the future of your company? Are you providing a product that can be manufactured and distributed en masse? Are you offering a service that can be made widely accessible? How realistic is it that your company could expand regionally, nationally, or even globally? And if it did, what would that mean for your overhead costs, the size of your labor pool, and the potential for profitability? While all of these ambitions may be well in the future, you’ll want to anticipate these possibilities even now, at the outset of your business venture. Are these ambitions possible? Does your business model allow for this level of growth? And if not, what must you do to make this type of growth possible? Take steps now to analyze and recognize the potential scalability of your business model. This consideration may prevent you from suddenly realizing at some future date that you’ve reached the limits of your company’s ability to grow.

41. What logistical challenges will you have to address?

While there is a lot that you can control as a business entrepreneur, you must also rely on the competence of others to carry out your work. This may include mail sorters, parcel delivery services, truck driving fleets, port workers and countless others in the supply chain who will contribute to the timeliness of your shipments. Whether you’re waiting for incoming supplies or banking on the expedient shipment of outgoing products, there are logistical factors that will contribute directly to your costs of operation and your organizational efficiency. Make sure you have a full understanding of these logistical factors, and that you’re prepared to manage the challenges that these factors can sometimes impose on your ability to serve customers effectively.

42. Are there political externalities to consider?

In addition to logistical concerns, there are some businesses that are directly at the mercy of external political factors. Are you entering into the type of business that relies on government funding, that requires the efforts of lobbyists, or that touches upon an area that is considered divisive in American politics? Some products and services may even fluctuate in popularity based on their political and cultural appeal. Does your business idea depend on the political dominance of one party or another? Is your business model vulnerable to fluctuations in prevailing political ideals? If this is the case, you should be aware of the potential ebbs and flows this could create in your company’s popularity and relevance. These factors could consequently cause ongoing volatility in your company’s bottom line.

43. Will it be possible to delegate leadership responsibilities to others?

What role do you see for yourself in this company? Will you be a hands-on, day-to-day business manager? Or are you more likely to delegate responsibilities and take a hands off approach? The answer to this question should depend on your skill sets. Some business managers prefer to oversee every detail of their company’s operations. But speaking with candor, the most successful business owners are those that can effectively hand business leadership responsibilities over to trusted employees. In an ideal world, you would be able to delegate most daily management tasks to trusted personnel in your organization.

44. Do you plan to exit your business at any time?

This may seem like kind of a funny question to ask when you’re literally at the very start of running your own business. But it may be valuable to consider this question before you get your business off the ground. Do you envision this as a family company, one that you will ultimately pass on to the next generation? Or is it merely a profitable idea that you would ultimately sell to the highest bidder? In short, do you see yourself running this company for the rest of your working life, or would you be just as happy (if not happier) to create a valuable enterprise that ultimately sells to a bigger company for a big price tag? If you chose the latter, we can’t say we blame you.

45. What is your company’s identity, and how does this connect to your target market?

Your brand refers to the way you present yourself. So how do you intend to present your company? This should be a function of your target market. If you’re pursuing a younger demographic, you’ll want to establish an identity that is at once informal and authentic. If you’re pursuing a demographic of business professionals, you’ll want to establish an identity that is polished and articulate. Such is to say that your intended audience will play a big role in defining your brand. Make sure you establish an identity–in your imagery, marketing material, and personnel–that reflects the desires of your target demographic.

46. What are your company values?

Your brand is more than just an abstract vibe. It’s also the foundation underlying your company’s values–the things that your organization stands for. Identify those values from the start and it can help you to better understand your own brand. Is your company focused on affordability, accessibility and inclusion? Do your values emphasize activism in the face of global climate change? Or are your company’s values simply focused on creating profits for your shareholders? Whatever demographics and priorities you serve, take time to articulate your company values now. This may help to create a brand that truly resonates with your target audience over the long haul.

47. Does your company have a mission and vision?

Your values are an indication of what your company stands for. By contrast, your mission and vision speak to what your company actually intends to do. What do you hope to accomplish as an organization? Is it innovation, equality, environmental justice, social progress, or technological advancement, just to name a few of the infinite possible answers to that question? Part of establishing your brand is articulating the mission that your company will actively pursue and the vision that your company will hold as its grandest ambition.

48. How will you convey this brand?

Now that you’ve pinned down your brand, how can you be sure that others will perceive the image that you’re putting out there? Do you have plans to build a website that captures your company’s identity, tone and vibe? Do you have a way to source a logo, color palette, and iconography that match your organization’s culture, energy, and intent? In most cases, these are tasks that you will want to outsource to qualified third-party providers. But you’ll need to establish your own clear sense of these things first. Take time to think about the aesthetic that you believe will best convey your company’s identity and find artists, copywriters and web designers who will work closely with you to capture this aesthetic

49. Do you need any special patents or trademark copyrights?

In addition to working with artists and web designers to create your company’s iconography, you’ll want to work with lawyers to ensure that this ephemera is protected from intellectual property theft. That’s why, according to our own Ultimate Guide to Starting a Business, “Many companies apply for trademarks to protect the unique components of their company. Trademarks can cover a specific brand, a logo, a catchphrase, or product design. Or anything else that sets your business apart from your competitors.” Make sure you apply for these protections in the early going. When your company achieves massive success, you’ll be glad that you secured your images and icons against misuse.

50. Does your company have a story to tell?

Part of your brand identity is your personal history, the history of your idea, and the history of the organization you’ve built to deliver that idea to your customers. Find a compelling way to tell this story in your company’s literature, on your website, and through your marketing materials. Your company’s story can help to personalize the purchasing experience for your customers, to make your brand more relatable, and to ultimately help you establish an identity with lasting commercial impact.

Looking for even more detail on how to succeed at business? Our Ultimate Guide to Starting a Business includes step by step details on how to create a business plan, a rundown of special business permits and licenses, and tons of other actionable tips on getting your business venture off the ground. 

Entrepreneurship / Business Plans - Hammond Campus

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Market Analysis

• Company/Competitor Information
• What is your financial plan
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Subject Guide

What is you company

Why do customers need your product or service?

What is your business concept or business model?

What are the conditions and overview of your industry?

Who is your target market / customer?

Who is your competition ?

Is your competition local or national?

Are there many or few competitors?

What is your Marketing Plan?

Describe your target market.

What is your product strategy?

What is your pricing strategy?

What is your distribution strategy?

How will you advertise or promote your product or service?

What is your sales forecast?

How will your company operate?

Location and facilities

How will you grow your business?

Development strategy

Who is the Management Team?

What risks does your business face?

Risks from competitors

Risks from changes in the marketplace or economy

Changing consumer needs or tastes

What type of financing and how much will you need?

Venture capital

What is your financial plan?

Gross and operating margins

Balance sheets

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20 Business Plan Quiz Questions and Answers

A business plan is a comprehensive document that outlines the goals, strategies, and financial projections of a business venture. It serves as a roadmap for entrepreneurs and stakeholders to understand the direction and viability of the business. Here’s an overview of the key components typically included in a business plan:

Executive Summary: This section provides a concise overview of the entire business plan. It highlights the company’s mission, vision, key objectives, and a summary of the proposed business model.

Company Description: Here, you’ll provide a detailed explanation of your business concept. Include the type of business, its legal structure, location, target market, and any unique selling propositions that set your business apart.

Market Analysis: Conduct thorough market research to understand your industry, target market, and competitors. Identify trends, potential opportunities, and challenges. Explain how your product or service will meet the needs of your target audience better than existing solutions.

Organization and Management: Describe the organizational structure of your business, including key team members, their roles, and relevant experience. Investors want to know that you have a capable team driving the venture.

Article overview

Part 1: 30 business plan quiz questions & answers.

1. Question: What is the primary purpose of a business plan? a) Secure funding b) Improve employee morale c) Enhance customer service d) Increase market competition Answer: a) Secure funding

2. Question: Which section of a business plan outlines the company’s mission and vision? a) Marketing strategy b) Financial projections c) Executive summary d) Company overview Answer: d) Company overview

3. Question: Which of the following is NOT a common business plan component? a) Competitive analysis b) SWOT analysis c) Cash flow statement d) Social media strategy Answer: d) Social media strategy

4. Question: What is the purpose of conducting a market analysis in a business plan? a) Determine the company’s competitors b) Develop financial projections c) Define the company’s mission d) Set employee goals Answer: a) Determine the company’s competitors

5. Question: Which section of a business plan highlights the company’s unique selling proposition (USP)? a) Marketing strategy b) Company description c) Competitive analysis d) Financial projections Answer: a) Marketing strategy

6. Question: What financial document shows a company’s revenues and expenses over a specific period? a) Balance sheet b) Cash flow statement c) Income statement d) Profit and loss statement Answer: c) Income statement

7. Question: In a business plan, what does ROI stand for? a) Return on Investment b) Revenue on Investment c) Risk of Inflation d) Rate of Interest Answer: a) Return on Investment

8. Question: Which business plan section outlines the marketing tactics to promote a product or service? a) Financial projections b) Market analysis c) Marketing strategy d) Company overview Answer: c) Marketing strategy

9. Question: What is a break-even analysis used for in a business plan? a) Identifying potential customers b) Calculating potential profits c) Determining the point of profitability d) Analyzing competitor strategies Answer: c) Determining the point of profitability

10. Question: In a business plan, what does the term “SWOT” stand for? a) Strengths, Weaknesses, Opportunities, Threats b) Sales, Workforce, Objectives, Technology c) Strategies, Workflow, Operations, Targets d) Success, Wealth, Objectives, Tactics Answer: a) Strengths, Weaknesses, Opportunities, Threats

11. Question: What is the purpose of an executive summary in a business plan? a) Provide an overview of the company’s history b) Detail the company’s long-term objectives c) Summarize the key points of the entire plan d) Highlight the company’s competitive advantages Answer: c) Summarize the key points of the entire plan

12. Question: Which financing option involves giving up ownership shares of a company in exchange for capital? a) Debt financing b) Equity financing c) Venture capital d) Angel investing Answer: b) Equity financing

13. Question: What does the term “KPI” mean in a business context? a) Key Performance Indicator b) Key Profit Increment c) Key Planning and Implementation d) Key Personnel Improvement Answer: a) Key Performance Indicator

14. Question: What section of a business plan should discuss the company’s organizational structure and management team? a) Market analysis b) Financial projections c) Company overview d) Marketing strategy Answer: c) Company overview

15. Question: What type of business plan primarily targets internal decision-making and planning? a) Startup business plan b) Strategic business plan c) Operational business plan d) Feasibility business plan Answer: c) Operational business plan

Part 2: Download business plan questions & answers for free

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16. Question: What external factor analysis tool helps identify the political, economic, social, and technological influences on a business? a) PEST analysis b) SWOT analysis c) BCG matrix d) Porter’s Five Forces Answer: a) PEST analysis

17. Question: Which statement best describes a vision statement in a business plan? a) Outlines the short-term goals of the company b) Identifies potential risks and challenges c) Describes the company’s future aspirations d) Analyzes the company’s target market Answer: c) Describes the company’s future aspirations

18. Question: What is the purpose of conducting a competitive analysis in a business plan? a) Identify potential partners b) Analyze customer feedback c) Evaluate strengths and weaknesses of competitors d) Forecast financial performance Answer: c) Evaluate strengths and weaknesses of competitors

19. Question: Which financing option involves borrowing money that must be repaid with interest over time? a) Debt financing b) Equity financing c) Venture capital d) Angel investing Answer: a) Debt financing

20. Question: What does the term “ROI” stand for in the context of financial analysis? a) Revenue on Investment b) Return on Innovation c) Risk of Inflation d) Return on Investment Answer: d) Return on Investment

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13 Business Analyst Interview Questions w/ Sample Answers

By Henry Garrison

15 min read

Business analyst interview questions help hiring managers determine your competence during a job interview . Interviewers ask these questions to examine your skills, experiences, and qualifications. By answering optimally, you can portray yourself as the right person for the job and progress to the next stage of the hiring process.

That’s why you should familiarize yourself with the most common business analyst interview questions. In this article, we’ll explore those questions, find out why hiring managers ask them, and learn how you should respond using concrete examples . 

Let’s dive in!

How to Answer Business Analyst Interview Questions

To best answer business analyst interview questions, you want to demonstrate your competence through examples of your actions .

One of the best ways to do this is by using the STAR method . This methodical approach to answering interview questions consists of four distinct parts, namely:

STAR Method Steps

Situation . Start by describing the context.

Task . Continue by explaining what you were supposed to do.

Action . Precisely illustrate the action you took to resolve the situation.

Result . Disclose the exact result of your actions to demonstrate your competence.

The STAR method is highly effective when answering behavioral interview questions , but you can’t use it to respond to everything hiring managers ask you.

Regardless of the business analyst interview question you’re asked, you want to answer clearly and concisely . You should avoid steering off-topic or talking about irrelevant details. Instead, highlight relevant experience and skills and talk about specific tools and methodologies you use to emphasize your expertise briefly and coherently.

13 Business Analyst Interview Sample Questions & Answers

Now, let’s examine some of the most common interview questions for a business analyst. We’ll explain why hiring managers and employers ask them, give you sample answers, and clarify what makes these answers good . By the end, you’ll know how to pass a business analyst interview with flying colors.

#1. What are the essential skills a business analyst should have?

Hiring managers ask this question to assess your understanding of the profession and the business analyst skills required to perform in the workplace. By correctly answering which abilities are vital in which situations, you’ll demonstrate an in-depth knowledge of the craft, indicating that you possess the necessary technical and interpersonal competence.

Here’s a good example of an answer:

Good Answer

“Some of the fundamental skills for business analysts are technical. My proficiency in Excel, SQL, and Tableau, as well as several project management software programs, allows me to work on data modeling and process mapping with high efficiency.

Problem-solving and analytical thinking are essential in identifying issues and coming up with optimal solutions. Finally, communication skills and stakeholder management help business analysts effectively work with others, build relationships, and manage expectations.”

This answer works as it provides a thorough understanding of what it takes to be a competent business analyst . The response mentions not only job-specific, hard skills but valuable interpersonal abilities as well.

#2. How do you handle explaining findings to colleagues who are not familiar with business analytics?

Interviewers ask this question to assess your communication skills . More precisely, they want to see whether you can convey complex and technical ideas to non-experts . Being able to simplify intricate data is essential when communicating with clients and stakeholders.

Let’s see how you can answer this business analyst interview question:

“During one of my previous quarterly reviews, I had to present complex insights to senior executives unfamiliar with business analytics. I realized I needed to help them understand the implications without overly relying on technical language.

That’s why I created a simplified presentation with easy-to-understand graphics to emphasize key points. I avoided using industry-specific jargon and instead communicated through relatable examples. The executives appreciated the clarity of the presentation and had very few questions toward the end before having enough information to make decisions.”

This response highlights what makes the STAR method so efficient. It demonstrates your ability to explain your findings through a concrete example .

#3. What types of business analytics tools/programs have you worked with?

This question evaluates your technical skills . Hiring managers ask this to find out whether you’re familiar with the industry-standard tools and applications essential for business analysts. Your answer can also show whether you have experience in the role.

Here’s an excellent way to answer this question:

“In my previous roles, I typically used SQL for databases, Excel to work with data, and Tableau to create compelling visuals. While I have extensive experience with these tools and consider them a staple in the business, I also have intermediate proficiency in Python, which I use for automation and advanced data analysis.

Finally, I am adept at using Power BI for reporting, and my go-to software for project tracking is Jira.”

This answer works well as it doesn’t just list the tools and programs but gives more detail about how you use them . An extensive set of tools mentioned also highlights your versatility and signals that you’re ready to start contributing from day one.

#4. What is the role of a business analyst in a company?

This is one of the entry-level business analyst interview questions, as its purpose is to determine your understanding of your role within the organization . Interviewers ask this to gauge whether you grasp how your actions can contribute to business goals.

Let’s see one way to answer this business analyst interview question:

“As a business analyst, I represent a bridge between different departments. My main goal is to gather and analyze enough data to ensure everyone understands the business needs. By identifying trends and giving actionable, information-driven advice, I contribute to decision-making processes.

Furthermore, I often work with stakeholders to understand their requirements and ensure they align with the company’s project goals and broader objectives.”

This answer thoroughly explains what it takes to be a competent business analyst and demonstrates it with a personal example . By mentioning key concepts, like data analysis and communication with stakeholders, you show that you understand the elasticity of your job.

#5. What is business modeling?

This is one of the technical business analyst interview questions that hiring managers ask to evaluate your understanding of the fundamental concepts in business . Having a comprehensive understanding of business models allows you to analyze processes and workflows, extract valuable insights, and help achieve organizational goals.

Here’s how you can answer this interview question for a business analyst:

“Business modeling is the process of examining and shaping businesses’ systems and strategies. By analyzing these models, we can see how different parts of a business interact with each other. We can use uncovered insights to optimize relevant components and predict possible outcomes.

Common planning and management techniques utilized in business modeling include SWOT and PEST analysis. These can help companies evaluate current states and develop potential scenarios that can result in more effective goal achievement.”

This is an excellent answer, as it clearly and concisely describes business modeling and gives examples of concrete techniques .

#6. What kind of documents do business analysts create?

The purpose of this business analyst interview question is to determine whether you’re familiar with the documentation aspect of your profession . Business analysts have to create plenty of clear and accurate documents to communicate with others, develop plans, write reports, and more.

Here’s an example of a good answer:

“Business analysts create a variety of documents, starting with business requirement documents (BRD), business analysis plans, functional requirement specifications (FRS), and functional specification documents.

They also create system requirement specifications (SRS) and system requirement documents (SRD). On top of that, business analysts can produce gap analysis reports and data models and design wireframes, mockups, and use case diagrams.”

This brief but comprehensive answer shows a thorough understanding of the variety of documents business analysts create. It shows you’re well-versed in the different facets of business analysis documentation.

#7. Describe a time when you identified a business problem and how you resolved it.

This business analyst interview question probes into your problem-solving skills . Your answer should describe how you use your analysis prowess to identify challenges businesses face and the steps you take to overcome them.

Let’s see that in an example:

“In my previous role, I noticed a decrease in revenue due to a decline in customer retention. I needed to determine the underlying issue that caused it and propose an optimal solution. By examining customer feedback and their purchasing data, I discovered that our customer service department’s responses were slower than needed.

I suggested the implementation of an automated chatbot to handle common inquiries and leave dedicated customer service specialists room to handle more complex tasks. This approach resulted in a 37% improvement in response times and a 15% increase in customer retention.”

This is the perfect example of how using the STAR method accurately answers the questions while highlighting your abilities and the outcome that came as a result .

#8. How do you prioritize tasks when working on multiple projects?

Hiring managers ask this business analyst interview question to evaluate your prioritization skills . These abilities are critical, as they allow you to remain efficient while working on multiple projects simultaneously.

Here’s a good way to answer this question:

“I prioritize tasks based on their urgency and their impact on each project’s goal. After conducting analysis, I can group tasks into critical, high-priority, neutral, and low-priority. I also regularly communicate with coworkers and stakeholders to verify whether there’s been a shift in priorities and ensure everyone’s aligned.”

This answer works as it showcases the exact method you use to prioritize tasks . It also highlights your adaptability and focus on continuous evaluation of priorities to ensure long-term success.

#9. How do you handle multiple stakeholders with different expectations?

Handling multiple stakeholders with different expectations requires the ability to negotiate and handle conflict . This is one of the senior business analyst interview questions that examines whether you can navigate these situations to find results that benefit all parties.

Let’s see an example of an answer:

“On my last project at my previous job, two stakeholders were conflicted regarding the project’s scope. My task was to find the middle ground and develop a solution that satisfies both parties while aligning with business goals.

I organized a small meeting with these stakeholders to listen to their concerns, hear their propositions, and implement suggestions from both sides. I explained how the newfound solution benefits the project, and both parties agreed we should move forward without further delays.”

This is a solid answer as it uses the STAR method and showcases valuable skills , such as active listening, conflict resolution, and communication.

#10. What do you do when you have to make a decision with incomplete information?

Interviewers ask this business analyst interview question to see how strong your decision-making skills are under uncertainty .

“When I have to make a decision without enough information, I start by gathering as much data on the topic as possible, even if it’s not of the highest quality. I then use the information obtained to assess the potential risks and benefits of the decision and consult with colleagues and 

stakeholders for additional insight.

After making a decision, I continuously monitor the progress to make adjustments if needed. This helps me confidently move forward, minimizing the chances of an unfavorable outcome.”

This answer works because it shows your ability to minimize potential risks and offset a lack of information with careful decision-making.

#11. Why do you want to join this company?

This is a typical business analyst interview question that you can get asked by industry leaders like Deloitte, Accenture, and Capgemini. With it, interviewers want to gauge your motivation for applying and whether you’ve researched their company .

Here’s a sample answer:

“I want to join this company due to its reputation for innovation. I’ve been following your work for a while, and your recent “Driven by AI” initiative demonstrated how this new technology can be used to its full capacity.

Your forward-thinking approach to making strategic decisions aligns with my career goals, and I’m excited to join a collaborative environment of like-minded professionals.”

The best way to answer is to highlight something specific about the company , showing that you’re familiar with their work and culture.

#12. How do you keep up with industry trends and the latest technologies?

Job interviewers ask this question to see your approach to professional growth . They want to know whether you’re proactive regarding continuous learning and improvement and how you keep up with the trends and technologies essential for your work.

Here’s a good answer:

“To keep up with industry trends and the latest technologies, I am subscribed to several publications and frequently follow blogs on various topics. I try to attend conferences whenever they are in my area, and I regularly attend webinars. These allow me to hear from industry leaders and update myself on the most recent developments.

I also often make an effort to incorporate the latest tools and methodologies into my workflow to see whether there are ways to speed up or improve my processes. Finally, I’ve already taken several courses and certifications that significantly improved my knowledge in specific areas, and I plan on continuing to do so.”

This answer highlights your resourcefulness when it comes to learning and improving . It demonstrates an enthusiastic and active mentality, showing that you will only get better and more efficient over time.

#13. How do you stay organized in this role?

Hiring managers ask this question to evaluate your organizational skills . It is a common business analyst interview question for the insurance domain, banking sphere, financial management field, etc., where you need to stay on top of your tasks all the time.

Here’s a good example of how to answer this question:

“I stay organized through a combination of behavioral routines and digital tools. My proficiency in project management software like Jira and Trello helps me stay on top of my tasks and deadlines.

Additionally, I regularly communicate with stakeholders and colleagues to ensure everyone is aligned and there are no conflicts. Finally, I use simple daily to-do lists that help me stay focused on immediate tasks.”

This is a strong answer, as it highlights your methodical approach to organization . It shows the way you handle efforts on an organizational level and how you coordinate day-to-day tasks.

5 Expert Tips on How to Ace Your Business Analyst Interview

To ace your business analyst interview, consider these five expert tips:

Business Analyst Interview Tips

Research the company . By learning about the company’s work, products and services, mission, values, and culture, you’ll better understand what they need. This will help you optimally answer questions to show that you’re the right person for the job.

Prepare questions for the interviewers . Interviewers often ask whether you have questions for them toward the end of the interview. Asking something meaningful will provide more information about the potential employer while demonstrating your interest in the role.

Brush up on your technical knowledge . Depending on the role you’re after, you want to ensure you’re on top of the game with the required tools and methodologies. This will help you ace the technical aspect of the interview.

Practice your interview . Conducting a mock interview is one of the best ways to prepare for the actual event. You should approach this practice with the same seriousness, including wearing the appropriate outfit and being mindful of your body language.

Follow up after an interview . A brief and polite interview follow-up email can leave a more memorable impression on hiring managers. You can use it to emphasize your appreciation for the opportunity and additionally express your enthusiasm for the role.

Final Thoughts

Business analysis is a vast field with many roles to apply for. The roles range from budget analysts with a 3% job outlook and a yearly median salary of $84,940 to management analysts with 10% projected job growth and a $99,410 median salary.

Regardless of the position, knowing how to pass a business analyst interview is essential to getting ahead of the competition and securing the job. That’s why we’ve given you an extensive list of the most common business analyst interview questions and answers to help you prepare for it, along with expert tips to help you ace it. Good luck!

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Trump and Vance Took Questions on Child Care. Their Non-Answers Said a Lot.

The former president and his running mate gave nearly equally confusing answers when asked separately this week how they would make child care more affordable.

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By Michael C. Bender

A question lobbed from the stage of the Economic Club of New York on Thursday about what, if anything, he would do about the cost of child care should have been right in former President Donald J. Trump’s wheelhouse.

But instead of a crisp, camera-ready reply from a seasoned three-time presidential candidate, Mr. Trump unspooled two of the most puzzling minutes of his campaign.

His answer was a jolting journey through disjointed logic about how the size of his tariffs would take care of all the nation’s children, which only raised a new, more complicated question about why he remains unable to provide straightforward answers about policies he would prioritize in a second term.

“Well, I would do that,” he said when asked if he would commit to supporting legislation to make child care more affordable, and how he would seek to do so.

“And we’re sitting down — you know, I was somebody — we had Senator Marco Rubio and my daughter Ivanka was so impactful on that issue,” Mr. Trump continued, referring to the pair’s previous push for paid family leave and expanding the child tax credit. “It’s a very important issue. But I think when you talk about the kind of numbers that I’m talking about that — because the child care is, child care, it’s, couldn’t, you know, there’s something, you have to have it. In this country, you have to have it.

“But when you talk about those numbers compared to the kind of numbers that I’m talking about, by taxing foreign nations at levels that they’re not used to, but they’ll get used to it very quickly — and it’s not going to stop them from doing business with us, but they’ll have a very substantial tax when they send product into our country. Those numbers are so much bigger than any numbers that we’re talking about, including child care, that it’s going to take care.”

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