how to write a business plan for a new position

How to Write a Business Case for a New Position?

Are you considering about adding more team members in your team?

The first step towards this is to craft a compelling business case for a new position.

Because it’s not just about finding room for an extra chair—it’s about strategically aligning your team for success.

In this blog post, we’ll guide you through the art of advocating for a new position within your organization.

Whether you’re amidst an expansion phase, facing evolving industry demands, or simply striving for better efficiency, this step-by-step guide will help you build a solid case that speaks the language of decision-makers and positions your team for the win.

Let’s embark on the journey of how to write a business case for a new position.

What is a business case?

A business case is a comprehensive document that outlines the justification for initiating a new project, making a significant business decision, or undertaking a specific action within an organization.

It serves as a tool to present a structured argument, providing key information and analysis to support decision-makers in understanding the potential benefits, costs, risks, and strategic alignment of a proposed initiative.

Read in detail: How to write a good business case

Why it is important to write a business case for a new position? 

Writing a business case for a new position is essential for several reasons:

Clarity of Purpose

A business case defines the need for the new position and its purpose within the organization. If the new role and responsibilities are clearly articulated and aligned with the organizational goals then there are high chances that the case for new position will get approval of managment.

Strategic Alignment

Management and decision makers often question about need of a new position. One of the logical way is to tell them how a new position is aligned with overall strategic direction of the organization and how the new position will contribute to the long-term success and growth of the business. And the best way to present this information and rationale in a form of a business case.

Resource Justification

Management and other stakeholders also need to know what a new position cost their organization. A good business case for a new position also provides a detailed breakdown of the costs associated with the new position. It surely helps justify the allocation of resources, including budget, personnel, and time.

Risk Assessment

There are always some form of risks associated with every new position in an organisation. A good business case for a new position also identifies potential risks and challenges associated with the new position. And it also briefly outlines strategies for mitigating risks and addressing challenges.

Quantifiable Benefits

Like any other business idea, management is always interested in knowing benefit of a new position in comparison to the cost incurred against new position. So if a business case presents a cost-benefit analysis to showcase the expected return on investment, then it would be easier for management to take an informed decision.

Accountability and Evaluation

A well-crafted business case is also important because it establishes clear key performance indicators (KPIs) for the new position. If these KPIs are developed on very onset then it is quite helpful for both an employer and an employee to track progress and performance. So a business case provides a roadmap of how accountability and assessment for a new position will be conducted.

Features of Business Case for a New Position

Here are some key features of such business case that would be helpful for any business manager who is supposed to write a business case for a new position.

1. Analysis of Current Organizational Structure

The first step to write a business case for a new position is to identify gaps in the current organizational structure. This section serves as a foundation of the business case and rationale behind proposing a new position.

Below are some key areas that should be included in this analysis section:

Current Workload Assessment

Evaluate the existing workload within the organization. Identify departments, teams, or individuals that may be overburdened or struggling to meet their goals due to excessive tasks.

Capacity Analysis

Understand the capacity of the current workforce to handle the workload. Are teams stretched thin? Are there consistent bottlenecks in certain processes? Assess the overall efficiency and productivity levels.

Impact on Organizational Goal

Relate the workload analysis to the achievement of organizational goals. Determine if the current staffing levels are hindering the organization’s ability to meet targets, deadlines, or deliver quality products/services.

Assessment of Skill Gaps

Identify the strengths and weaknesses of team members in relation to the organization’s strategic objective. Anticipate the skills that will be crucial for the organization’s future success. This involves considering industry trends, technological advancements, and changes in customer demands. Are there emerging skills that the current workforce lacks?

2. Emerging Industry Trends

This information is vital for making the case for a new position, as it demonstrates a forward-thinking approach to adaptability and positions the organization to thrive in a dynamic business environment. When writing the business case, be sure to clearly articulate how the proposed new position directly addresses these emerging challenges and positions the organization for sustained success.

Market Analysis

In this section, a crisp analysis of the current state of the industry is presented. All the major shifts in market dynamics, customer preferences, and technological advancements need to be highlighted here and what are those emerging trends that could impact the organization.

Competitor Analysis

A brief analysis of competitor will also help to understand that how competitors are addressing those challenge. Assess their strategies and developments happening in the industry. Identify areas where competitors are gaining a competitive advantage or where the organization may be falling behind.

Regulatory Changes

A paragraph or so on regulatory framework is also helpful to build the context. It is important to mention the latest changes in regulations that could impact the industry. Identify what are those compliance with new regulations that may require additional roles or skills within the organization.

3. Job Role and Responsibilities

After setting up the context and rationale for a new position, now it is turn to define exact job title, core duties and responsibilities.

Choose a job title that clearly communicates the role and is relevant within the industry and organizational context. The title should resonate with industry standards and be easily understood by both internal and external stakeholders.

Hierarchy and Positioning

Consider the hierarchical positioning of the new role within the organization. Ensure that the job title accurately reflects the level of responsibility and authority associated with the position.

Job Description

Provide a detailed description of the core duties and responsibilities associated with the new position. Clearly outline the day-to-day tasks and the role’s overarching purpose within the organization.

Connect the core duties to the broader objectives of the organization. Explain how the responsibilities of the new position contribute to the achievement of strategic goals and address current challenges.

Key Performance Indicators (KPIs)

Define measurable KPIs that will be used to assess the performance of the new position. These indicators should align with the overall goals of the organization and provide a basis for evaluating the success of the role.

4. Desired Qualifications

Clearly defining the desired qualifications helps in creating a profile for the ideal candidate. This section not only assists in the recruitment process but also reinforces the strategic alignment of the new position by ensuring that the candidate possesses the necessary skills and knowledge to contribute effectively to the organization’s objectives.

Skills and Competencies

Specify the technical skills required for the position. This could include proficiency in specific software, languages, or tools relevant to the role.

Identify essential soft skills such as communication, problem-solving, teamwork, leadership, and adaptability. These skills are often as important as technical expertise in contributing to a positive work environment and effective job performance.

If there are skills specific to the industry or niche, outline them clearly. This ensures that the candidate not only has a general skill set but also possesses industry-specific knowledge.

Educational Background

Define the minimum educational requirements for the position, such as a bachelor’s or master’s degree in a relevant field. Be specific about the type of degree required.

 If there are preferred qualifications or certifications that would enhance a candidate’s suitability for the role, list them. This could include professional certifications, specialized training, or additional degrees.

Explain how the educational background is directly relevant to the responsibilities of the new position. For example, certain roles may require a background in a specific field to ensure a deep understanding of industry intricacies.

5. Cost-Benefit Analysis

When projecting costs related to salary and benefits, it’s important to not only consider the immediate financial impact but also to emphasize the long-term value that the organization will gain from investing in a qualified and motivated professional. This section of the business case provides decision-makers with a transparent view of the financial commitment required for the successful implementation of the new position.

Projecting Costs

Clearly outline the anticipated base salary for the new position. This should be competitive within the industry and commensurate with the level of responsibility associated with the role.

Detail the benefits that will be provided to the employee, including health insurance, retirement plans, bonuses, and any other perks or allowances. The benefits package is a crucial component of the overall compensation offered.

If applicable, include any variable or performance-based compensation elements, such as bonuses or commissions. Specify the criteria for earning these variable components.

Provide a comprehensive view of the total compensation package, combining the base salary and benefits. This gives decision-makers a clear understanding of the financial commitment associated with the new position

Anticipated Benefits

Explain how the new position will help in distributing the workload more effectively across the team or department. This can prevent burnout and ensure that tasks are completed with a higher level of attention and quality.

Highlight how the skills and expertise brought by the new hire will lead to specialized contributions, potentially accelerating project timelines and improving overall team output.

Discuss how the introduction of the new position is expected to save time for existing team members, allowing them to focus on more strategic or complex task.

6. Timeline and Implementation Plan

By providing a detailed timeline and implementation plan, you demonstrate a thoughtful approach to the integration of the new position into the organization. This section helps decision-makers understand the practical aspects of bringing the proposed role to fruition and ensures a well-managed and efficient process from approval to successful onboarding.

Recruitment Process

Clearly state the expected timeline for obtaining approval for the new position. This could involve meetings with stakeholders, discussions with the leadership team, and the formal approval process.

Specify the anticipated duration for creating and posting the job opening. Discuss the recruitment strategy, including where the position will be advertised and the methods for sourcing candidates.

Outline the time allocated for reviewing applications, shortlisting candidates, and conducting initial screenings. This phase may involve collaboration with HR and hiring managers.

Onboarding and Training

Detail the expected timeline for extending a job offer to the selected candidate and the subsequent acceptance period. This includes negotiations, if any, related to compensation and benefits.

If the selected candidate is currently employed elsewhere, factor in the notice period and any transitional activities. Plan for a smooth handover if needed.

Present the onboarding plan, including the orientation process, introduction to team members, and initial training sessions. Consider any department-specific or role-specific onboarding requirements.

Outline the training schedule for the new hire, including any skills development, software training, or industry-specific training. Specify who will be responsible for conducting the training sessions.

7. Setting up Key Performance Indicators (KPIs) 

Establishing Key Performance Indicators (KPIs) is a critical step in ensuring that the success and impact of the new position can be measured effectively. Here’s how you can structure this section of the business case:

Identify Relevant KPIs

Determine specific, measurable metrics that directly align with the objectives of the new position. For example, if the goal is to enhance customer satisfaction, a relevant KPI could be the percentage increase in positive customer feedback.

Ensure that the selected KPIs are directly tied to the strategic goals and objectives outlined in the business case. This alignment reinforces the contribution of the new position to the overall success of the organization.

Define Performance Targets

Set realistic and achievable performance targets for each identified KPI. Consider historical data, industry standards, or organizational benchmarks to establish a baseline for comparison.

Specify the timeframe within which these performance targets are expected to be achieved. This could include short-term, medium-term, and long-term goals.

Continuous Improvement Mechanism

Incorporate feedback mechanisms to gather insights from team members, supervisors, and other stakeholders. This information can be valuable in adjusting strategies and optimizing the performance of the new position.

Acknowledge that KPIs and performance targets may need adjustments based on evolving organizational needs, changes in the business environment, or unforeseen challenges

Final Words 

A well-articulated business case for a new position is a strategic document for organizations seeking growth and adaptability. Business leaders need all the rationale and information related to new position to make an informed decision. From identifying gaps in the current organizational structure to outlining the anticipated benefits and establishing key performance indicators, each step in process helps to write an effective business case for a new position.

About The Author

Tahir Abbas

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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 perfect job proposal in 7 easy steps to get the best match to your team

Hanna Stechenko Manager, SEO Management

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Having a vacant position requires immediate action from the Human Resources (HR) Department. Typically, whenever a new position (or a new job) is available inside a company, the Talent Acquisition manager starts seeking the best candidate.

Job seekers always search for new job postings on different platforms.

Whether we are talking about a full-time position or a part-time one, we always need a detailed job description, allowing potential employees to get a better understanding of your company’s expectations.

When it comes to creating a proposal document for a new job position, many recruiters come up with the same complex question: How do write effective employment proposals that will stand out on the job market?

On the other side, candidates seeking new working opportunities always wonder How to pitch a new job position?

These two questions can be easily answered by getting an in-depth understanding of what a job proposal template looks like and which are the most important sections of a job application, from a hiring manager’s perspective.

→DOWNLOAD NOW: FREE JOB PROPOSAL TEMPLATE

Key takeaways

• Reviewing the job requirements and company culture is the most vital thing before writing the proposal.
• Start with a clear, concise executive summary that outlines the purpose, and benefits.
• Outline the job’s duties and responsibilities, as well as any necessary qualifications.
• Explain how your skills and experience make you a good fit for the position.
• Provide a detailed breakdown of the proposed compensation package, including salary, benefits, and any other perks.
• Address potential objections or concerns the employer may have and provide solutions to overcome them.
• Conclude the proposal with a call to action and the next steps.
• Polish and proofread the proposal carefully to ensure it is professional and error-free.

Why is a job proposal important?

Job proposals are the key to new and beneficial collaboration between free job experts and companies. Businesses encounter different issues which need immediate solutions.

You are aware of the fact that company owners will not come to your door, knock and offer you a paycheck. After all, why would they choose you?

Surely, you have already thought about several reasons why you should get an interview for a company but now you have to focus on convincing the hiring manager to see your real value.

How to write a job proposal effectively for a new position

There is no magic recipe to create the perfect proposal letter for a new hire. It all depends on the company’s approach and business model .

Usually, staffing campaigns generate a handful of time-consuming tasks that the HR Department has to take care of. Writing accurate job descriptions which actually help people understand your business plan takes a lot of time.

However, the amount of time spent on writing these proposals will reduce significantly if using a simple yet effective template.

In spite of the fact that many job seekers usually think that sending their CVs via e-mail is enough to get an interview for a new job, business owners always seek more.

Spending extra time to give the final touch to your job proposal will usually make you stand out from the crowd and offer you better chances of getting hired.

Job proposal outline example

Writing an effective job proposal can be easily compared to a movie. You have to identify the gap in the workflow, forecast a potential solution and start working towards fixing the problem.

The outline of your proposal should make your potential employer want to find out more about you and your skills. What is more, using an effective outline usually results in an increased level of readability.

The text should not be too complicated and should not require more than one or two complete reads to get a full understanding of even the smallest details.

One great example of an effective job proposal outline includes:

• The company’s challenge
• The actual value of the position
• The responsibilities
• Your qualifications
• Your history with the company

After getting your outline ready, we do highly recommend putting everything into a simple yet effective template.

But before polishing things up, let’s find out what exactly you should include in each section and more importantly what you should not include in your job proposal.

Step 1. Define the company’s challenge

Identifying problems is one of the most important parts of the decision-making process. A solution optimized for a misidentified issue will end up being useless.

Moreover, spending time and money to fill a gap that does not actually exist in your company will eventually have many negative consequences over time.

Maybe they struggle with a low conversion rate. Turning leads into actual customers happens fewer and fewer times.

The cash flow drops significantly and the management team can figure out why those things happen.

This is one of the worst-case scenarios where a company can be.

This section should answer the following question: Why should the company spend money on this type of service?

Step 2. Emphasize the value of your position

If you have identified a potential issue related to your area of expertise then you should explain it with as many details as possible.

Offering your potential client an overview of why they should hire you is great. However, getting into details and offering an in-depth explanation of a potential collaboration’s benefits will skyrocket your hiring chances.

Let’s face it: no one will hire you if they do not need you. This is why it is very important to emphasize what benefits you can bring to their company.

For example, say you are an experienced web designer and you have found a website that lacks mobile compatibility and does not have a user-friendly navigation menu.

Based on your experience, poor design results in lower chances of turning leads into customers. Therefore, you might want to explain these correlations to your potential customer so they can easily understand why they should go the extra mile to resolve this problem.

Having great marketing skills will help you convince potential customers of your value. You might have to put in a lot of effort to properly explain why they should hire you instead of anyone else.

Moreover, some leads may not understand the actual value from the first time. Including pre-defined answers for some of the most frequently asked questions your potential client may ask will significantly increase your chances of persuading them of your value.

Filling this section with the appropriate content will reveal the answer to the following question: Why is this position so important?

Step 3. Clarify the responsibilities

Having clear responsibilities will help you focus more on what you have to do to reach your goal. We highly recommend using bullet points to create a comprehensive list that includes all the tasks you are able to perform for the company.

Many sample job proposal letters use simple and understandable terms to explain what the candidate is able to do. This helps the hiring manager figure out in what position that person would be the ideal candidate.

If you are not sure what a duty list should look like, that is perfectly fine. Here are some examples of responsibilities one may include in their digital marketing-related job proposal :

• Research thoroughly and come up with interesting and relevant topics for blog posts
• Identify, assess, and suggest keywords that should be approached in articles
• Perform on-page and off-page S.E.O
• Keep track of the blog insights, determine and implement the best strategy to increase the number of visitors

Step 4. Explain your qualifications

This is where many candidates mess things up. A job proposal is not your CV . When writing a job proposal for a company you should always make sure the qualifications you mention are relevant to the management team.

Moreover, including skills that are not related to your area of expertise may sometimes do more bad than good.

For example, if you are a copywriter and you include great programming skills (C# and Java) in your job proposal, the business owner may assume you are not a focused person and you try to approach as many income sources as possible.

This will dramatically lower your chances of getting hired, especially considering that companies nowadays require real expertise, instead of people that have just a brief idea of how to get the job done.

Having many years of experience will not necessarily make you look better in the hiring manager’s eyes. However, being capable of performing complex tasks with great performance will surely put the highlight on your proposal.

Before writing the job proposal, we highly recommend taking a quick glance at what skill set helps you perform in your domain.

Based on the most popular skills you can find out what makes you stand out from the crowd and emphasize that specific aspect. For example, when offering digital marketing services, some of the most popular skills are:

• S.E.O. and S.E.M.
• Storytelling
• Strategic thinking
• Persuasivitiy

Another interesting aspect you might want to include in your proposal is related to the hard skills and soft skills you possess.

Being flexible, punctual, and communicative brings you extra points when applying for a position that requires working in a team.

What is more, being able to properly communicate in a foreign language will give you more credit if you are about to join an internationally-formed digital marketing team.

Make sure you support your hard skills with the appropriate certifications. Any officially issued documents which attest to the fact that you have a specific skill will only increase your chances of getting an interview.

Step 5. Describe your history with the company

Keeping an existing client is five times cheaper than acquiring a new one . Therefore, working with a repetitive customer is a great way of reducing your operational expenses.

If you have previously worked with a specific company, then you are more likely to get hired compared to a freshman that has just submitted their first cover letter.

Make sure you include all the projects you have worked on with that company (yes, even the ones that were not so successful). Being honest about your performance is a great way of gaining your potential client’s trust.

Posing as the ideal candidate while only being an average-performance freelancer will not bring you any good. Say you claim to be an expert in web development and you convince a business owner to pay you a couple of thousand dollars for a completely new and improved website.

However, you only have basic web development skills and you spend two weeks creating a boring site. Think about it from your client’s perspective: do you think they will hire you ever again?

Working with the same company again has many benefits. You both know your working style, you already understand their business approach, and the business owner knows how to explain potential issues identified with the final product.

However, nothing lasts forever and collaborations are no different. At some point, you will have to find new clients and go through the entire acclimatization process with them.

Step 6. Create a written proposal

This is the most complex step you have to perform when applying for a job or offering a collaboration. Putting all your thoughts into a great writing form requires many sessions of tweaking and trying.

Before creating the actual document you want to send to your potential client, you might want to write a sample letter so you can get accustomed to how to approach the situation.

Concluding your proposal, you should definitely include a budget and an estimated deadline. This will allow your potential customer to determine whether their company is able to gain access to your services. Many startups have limited budgets and this is why collaborating with experts in different areas is a complex issue.

However, extending the deadline, reducing the number of revisions, and even lowering the number of responsibilities are factors that are often associated with a reduced price.

Another crucial thing you should include in your written proposal is a call to action. This can be literally anything: a button, a headline, contact information, an invitation, social media information, etc.

The only thing you have to take into account is to do your best to persuade your potential client to get in touch with you. Getting an interview is generally harder than convincing someone to hire you. Especially when you think about the fact that any hiring manager gets at least a dozen application letters every week.

Make an attractive cover page and make sure you include the job title on the first page. This way you can get the business owner’s attention within a few seconds.

Fonts and headlines are important too. Using the right color for your text and including appropriate images will increase your chances of getting an interview. After all, getting hired is your ultimate goal.

After sending the job proposal, you should be ready to wait. And wait. And wait. Up to 7 calendar days. According to a recent survey, 44% of applicants hear back from their employers within a week of applying .

Therefore, make sure you are ready to wait patiently. However, if even after 7 days you do not get an answer from the hiring manager, it may be a great idea to send a follow-up email.

Many email platforms have integrated functions that remind you of the messages you have sent and remained without an answer.

For example, Google Mail (GMail) pops up a reminder 3 days after sending an email and not getting any reply from the recipient. This way you make sure you do not forget about any job proposal you have previously sent.

Using job proposal templates

If this is your first time writing and sending a job proposal, then you might want to stick to a previously created template. One of the most popular templates available on the market is the PandaDoc Job Proposal Template .

Job Proposal Template

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Reviewed by Ulyana Stepanovskaya

It can be found on the official website , under the Templates section . The template is fully customizable using the online editor. Moreover, all you have to do in order to take advantage of it is to create a free account on the platform.

You can either register using an email/password combination or by connecting to your Google or LinkedIn account. There is no need to add a credit card in order to use this business proposal template.

Regardless of the template, you are planning on using, here are some of the key aspects you have to take into account:

• Be honest : No hiring manager wants to put the wrong person in the wrong position.
• Point out the previously identified issue : Make sure you explain why the company needs help on overcoming a specific problem.
• Explain your value : Emphasize the benefits of hiring you and why the business owner should spend a fraction of the budget on paying for your services.
• Showcase your skills : Soft skills, hard skills and even other competencies (but make sure they are relevant to your potential client).
• Call to action : If you do not persuade the business owner to contact you then you have already wasted both your and their time.

Final thoughts

Now that you’re aware of how an effective job proposal looks like, it is the perfect time to write one for yourself!

Psst… we have got an extra tip for you! Using the new and improved PandaDoc Job Proposal Template , writing a business proposal is just a piece of cake. But you do not have to take our words for granted.

Convince yourself by trying it out!

Originally was published in October 2021 and has been updated for comprehensiveness in April 2023

Frequently asked questions

What is the format of a proposal.

A job proposal generally has up to 7 sections, as follows:

• Introduction
• Previously identified issue
• The importance of the position
• Responsibilities
• Detailed skillset
• Previous projects

Depending on the complexity of the addressed issue, there may be  extra sections  or even fewer.

What is a job proposal?

A job proposal is an offer made by an individual to another individual or to a company. It generally comes up with a solution to an issue that has been identified by the job seeker. A business proposal may come in many formats but some of the most popular are e-mail and application letters.

How do you write a simple proposal?

Writing a simple proposal is not the smartest move, especially when you deal with mid-sized and large companies. We do highly recommend going the extra mile and writing a complete proposal that includes all the appropriate sections. However, if you prefer sticking to a simple business proposal, you can use the following outline:

• Issue (What?)
• Solution (How?)
• Qualifications (Why me?)
• Proposal (How much?)

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How to Create a New Job at Your Current Company

So there you are, coasting along at your current job. You enjoy your work, and you especially like your company.

The thing is, you’re feeling a little restless lately. Perhaps you know your job so well that you could do it in your sleep. Or maybe you don’t see much opportunity for growth or movement in your department. That little voice in your head is saying it’s ready for new challenges, but the thought of leaving your awesome company is really daunting. There’s got to be a better way, right?

Before you start polishing up your resume , it’s worth thinking about how you can create your own opportunity at your current company . But how do you do this? Where do you start? How do you even get the right people to listen to you? Read on for five easy steps for creating a new job at your current company.

1. Define a Current Business Problem and Match Your Skills to It

For your boss and company to consider shifting your role, they’ll want to know what’s in it for them. So, look around. What are some of the biggest challenges and problems that need to be solved at your company? Perhaps your department lacks a comprehensive training program, or maybe no one has developed a much-needed social media strategy. Maybe the marketing department is down a person who has never been replaced. Try matching up these opportunities to your own expertise, and think about what you can offer.

2. Create a Detailed Plan

Now that you’ve identified a new role or opportunity you could fill, you’ll want to create a plan. First, create a thorough job description, along with a set of goals for this position within the first year. (To speak your boss’ language, create it using the same format that your company uses already.) Spelling out exactly how this role will look will give management a better idea of what you can accomplish.

Then, put some thought into what will happen to your current role—will you keep some of your tasks and transition some of them to others, or will your boss need to hire a replacement? Remember, if that’s the case, you’ll need to make an especially compelling argument as to why your new role is needed or how it can impact the business. On that note:

3. Pitch the Idea to Your Supervisor

By this point, you might be so excited about your idea that you want to run straight to your boss’ boss (or higher). However, the best place to start is usually your immediate supervisor. He or she will hopefully be a great initial sounding board. Start by scheduling a meeting during a quiet time when your supervisor will be less distracted. Next, present a simple outline of your idea , starting with the business problem you will solve. Be sure to mention your strong interest in developing your skills and owning your career. After all, you’ve already mastered your current job, and you’re ready for new challenges now. It also wouldn’t hurt to mention how much you enjoy working for your current company and how you’d like to stay there long-term.

Also, don’t be afraid to ask your supervisor to punch holes in this idea; you’ll want to be prepared to answer challenging questions if your idea gets to the next level. If your supervisor agrees that your idea could work, then ask about the next step—i.e., the right people to talk to in order to make the job a reality.

On the other hand, if your manager shows resistance, ask him or her to think about it some more and then get back to you with specific feedback. Maybe your idea could still work with a little tweaking. Or perhaps your supervisor is afraid of backfilling your role, and you need to work on a better transition plan. If the idea is flat-out rejected, don’t be afraid to talk to a mentor or trusted colleague who has a fresh perspective—he or she may have a different idea for approaching matters (or other thoughts on how you could shift your role).

4. Revise Your Idea and Present it to the Decision Makers

Once your boss has green-lighted the idea and pointed you to the right folks to talk to next, take another look at your plan. You’ll want to tailor your approach based on the people you are meeting with. If you’re meeting with a high-level director, you might want to pare down the details and focus on results. If you’re meeting with human resources, you’ll want to include some specific experiences that showcase your untapped talent.

No matter what, again you’ll want to focus on how this new role will be a great thing for the company—and why you’re exactly the right person to take it on.

5. Be Patient

Even if everyone from the custodial staff to the CEO thinks your idea is wonderful, that doesn’t necessarily mean that you’ll be starting your new job within two weeks. Some ideas need to be vetted with the right people before they can take flight, whereas others may simply need the right funding to become a reality. And unfortunately, some ideas may depend on the right timing. Your organization may need to wrap up current strategic projects before the right resources can be redirected to your idea.

But remember: If your idea is worth doing and you’d really enjoy it, try to hang in there until the timing is right—it just might pay off in the end. In the meantime, use that waiting period to brush up on those skills you’ll use in your new job. You never know when you’ll be tapped to make that jump.

Have you ever created your own opportunity at your current company? What did you do? Share your experiences with us at The Muse!

Photo courtesy of Jeff Sheldon .

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Written by Jesse Sumrak | May 14, 2023

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

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

Bah. Sounds like homework, right?

Yes. Yes, it does.

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

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

Table of Contents

What Is a Business Plan?

Tips to Make Your Small Business Plan Ironclad

How to Write a Business Plan in 6 Steps

Startup Business Plan Template

Business Plan Examples

Work on Making Your Business Plan

How to Write a Business Plan FAQs

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

A business plan is a roadmap that outlines:

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

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

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

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

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

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

Don’t Skip: Business Startup Costs Checklist

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

Be Professional and Legit

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

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

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

Know Your Audience

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

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

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

Invest Time Researching

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

Your audience will want:

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

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

Stay Realistic

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

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

How to Write a Business Plan—6 Essential Elements

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

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

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

1. Executive Summary

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

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

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

2. Business Overview

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

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

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

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

3. Products and Services

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

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

You’ll need to include:

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

4. Market Analysis

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

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

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

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

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

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

5. Competitive Analysis

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

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

6. Financial Strategy

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

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

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

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

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

Read More: 16 Financial Concepts Every Entrepreneur Needs to Know

Startup Business Plan Template (Copy/Paste Outline)

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

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

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

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

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

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

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

5 Frame-Worthy Business Plan Examples

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

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

Get to Work on Making Your Business Plan

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

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

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

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

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

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

Keep Learning: New Product Development Process in 8 Easy Steps

What financial information should be included in a business plan?

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

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

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

Who should review my business plan before I submit it?

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

Ready to Write Your Business Plan?

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

Let us help you get started.

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

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

About Jesse Sumrak

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

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How to Write a Business Plan: Beginner’s Guide (& Templates)

Written by: Chloe West

Thinking about starting a business? One of the first steps you’ll need to take is to write a business plan. A business plan can help guide you through your financial planning, marketing strategy, unique selling point and more.

Making sure you start your new business off on the right foot is key, and we’re here to help. We’ve put together this guide to help you write your first business plan. Or, you can skip the guide and dive right into a business plan template .

Ready to get started?

Here’s a short selection of 8 easy-to-edit business plan templates you can edit, share and download with Visme. View more templates below:

8-Step Process for Writing a Business Plan

What is a business plan, why is a business plan important, step #1: write your executive summary, step #2: put together your company description, step #3: conduct your market analysis, step #4: research your competition, step #5: outline your products or services, step #6: summarize your financial plan, step #7: determine your marketing strategy, step #8: showcase your organizational chart, 14 business plan templates to help you get started.

A business plan is a document that helps potential new business owners flesh out their business idea and put together a bird’s eye view of their business. Writing a business plan is an essential step in any startup’s ideation process.

Business plans help determine demographics, market analysis, competitive analysis, financial projections, new products or services, and so much more.

Each of these bits of information are important to have on hand when you’re trying to start a business or pitching investors for funds.

Here’s an example of a business plan that you can customize to incorporate your own business information.

We’re going to walk you through some of the most important parts of your business plan as well as how to write your own business plan in 8 easy steps.

If you’re in the beginning stages of starting a business , you might be wondering if it’s really worth your time to write out your business plan. 

We’re here to tell you that it is.

A business plan is important for a number of reasons, but mostly because it helps to set you up for success right from the start.

Here are four reasons to prove to you why you need to start your business off on the right foot with a plan.

Reason #1: Set Realistic Goals and Milestones

Putting together a business plan helps you to set your objectives for growth and make realistic goals while you begin your business. 

By laying out each of the steps you need to take in order to build a successful business, you’re able to be more reasonable about what your timeline is for achieving everything as well as what your financial projections are.

The best way to set goals is using the SMART goals guidelines, outlined below.

Reason #2: Grow Your Business Faster

Having a business plan helps you be more organized and strategic, improving the overall performance of your business as you start out. In fact, one study found that businesses with a plan grow 30% faster than businesses that don’t.

Doesn’t that sound reason enough alone to start out your business venture with a solidified plan? We thought so too, but we’ve still got two more reasons.

Reason #3: Minimize Risk

Starting a new business is uncharted territory. However, when you start with a roadmap for your journey, it makes it easier to see success and minimize the risks that come with startups.

Minimize risk and maximize profitability by documenting the most important parts of your business planning.

Reason #4: Secure Funding

And finally, our last reason that business plans are so important is that if you plan to pitch investors for funding for your new venture, they’re almost always going to want to see a detailed business plan before deciding whether or not to invest.

You can easily create your business plan and investor pitch deck right here with Visme. Just sign up for a free account below to get started. 

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The executive summary is a brief overview of your entire business plan, giving anyone who reads through your document a quick understanding of what they’re going to learn about your business idea.

However, you need to remember that some of the people who are going to read your business plan don’t want to or have time to read the entire thing. So your executive summary needs to incorporate all of the most important aspects of your plan.

Here’s an example of an executive summary from a business plan template you can customize and turn into your own.

Your executive summary should include:

• Key objective(s)
• Market research
• Competitor information
• Products/services
• Value proposition
• Overview of your financial plan
• How you’re going to actually start your business

One thing to note is that you should actually write your executive summary after the rest of your business plan so that you can properly summarize everything you’ve already created.

So at this point, simply leave a page blank for your executive summary so you can come back to it at the end of your business plan.

The next step is to write out a full description of your business and its core offerings. This section of your business plan should include your mission statement and objectives, along with your company history or overview.

In this section, you may also briefly describe your business formation details from a legal perspective.

Mission Statement

Don’t spend too much time trying to craft this. Your mission statement is a simple “why” you started this business. What are you trying to achieve? Or what does your business solve?

This can be anything from one single quote or a paragraph, but it doesn’t need to be much longer than that. In fact, this could be very similar to your value proposition.

What are your goals? What do you plan to achieve in the first 90 days or one year of your business? What kind of impact do you hope to make on the market?

These are all good points to include in your objectives section so anyone reading your business plan knows upfront what you hope to achieve.

History or Overview

If you’re not launching a brand new business or if you’ve previously worked on another iteration of this business, let potential investors know the history of your company.

If not, simply provide an overview of your business, sharing what it does or what it will do.

Your third step is to conduct a market analysis so you know how your business will fit into its target market. This page in your business plan is simply meant to summarize your findings. Most of your time should be spent actually doing the research.

Your market analysis needs to look at things like:

• Market size, and if it’s grown in recent years or shrinking
• The segment of the market you plan to target
• Demographics and behavior of your target audience
• The demand for your product or service
• Your competitive advantage or differentiation strategy
• The average price of your product or service

Put together a summary of your market analysis and industry research in a 1-2 page format, like we see below.

Your next step is to conduct a competitive analysis. While you likely touched on this briefly during your market analysis, now is the time to do a deep dive so that you have a good grasp on what your competitors are doing and how they are generating customers.

Start by creating a profile of all your existing competitors, or at the very least, your closest competitors – the ones who are offering very similar products or services to you, or are in a similar vicinity (if you’re opening a brick and mortar store).

Focus on their strengths and what they’re doing really well so that you can emulate their best qualities in your own way. Then, look at their weaknesses and what your business can do better.

Take note of their current marketing strategy, including the outlets you see a presence, whether it’s on social media, you hear a radio ad, you see a TV ad, etc. You won’t always find all of their marketing channels, but see what you can find online and on their website.

After this, take a minute to identify potential competitors based on markets you might try out in the future, products or services you plan to add to your offerings, and more.

Then put together a page or two in your business plan that highlights your competitive advantage and how you’ll be successful breaking into the market.

Step five is to dedicate a page to the products or services that your business plans to offer.

Put together a quick list and explanation of what each of the initial product or service offerings will be, but steer clear of industry jargon or buzzwords. This should be written in plain language so anyone reading has a full understanding of what your business will do.

You can have a simple list like we see in the sample page above, or you can dive a little deeper. Depending on your type of business, it might be a good idea to provide additional information about what each product or service entails.

The next step is to work on the financial data of your new business. What will your overhead be? How will your business make money? What are your estimated expenses and profits over the first few months to a year? The expenses should cover all the spending whether they are recurring costs or just one-time LLC filing fees .

There is so much that goes into your financial plan for a new business, so this is going to take some time to compile. Especially because this section of your business plan helps potential cofounders or investors understand if the idea is even viable.

Your financial plan should include at least five major sections:

• Sales Forecast: The first thing you want to include is a forecast or financial projection of how much you think your business can sell over the next year or so. Break this down into the different products, services or facets of your business.
• Balance Sheet: This section is essentially a statement of your company’s financial position. It includes existing assets, liabilities and equity to demonstrate the company’s overall financial health.
• Income Statement: Also known as a profit and loss statement (P&L), this covers your projected expenses and revenue, showcasing whether your business will be profitable or not.
• Operating Budget: A detailed outline of your business’s income and expenses. This should showcase that your business is bringing in more than it’s spending.
• Cash Flow Statements: This tracks how much cash your business has at any given point, regardless of whether customers or clients have paid their bills or have 30-60+ days to do so.

While these are the most common financial statements, you may discover that there are other sections that you want to include or that lenders may want to see from you.

You can automate the process of looking through your documents with an OCR API , which will collect the data from all your financial statements and invoices.

The next step is coming up with a successful marketing plan so that you can actually get the word out about your business. 

Throughout your business plan, you’ve already researched your competitors and your target market, both of which are major components of a good marketing strategy. You need to know who you’re marketing to, and you want to do it better than your competition.

On this page or throughout this section of your business plan, you need to focus on your chosen marketing channels and the types of marketing content you plan to create.

Start by taking a look at the channels that your competitors are on and make sure you have a good understanding of the demographics of each channel as well. You don’t want to waste time on a marketing channel that your target audience doesn’t use.

Then, create a list of each of your planned marketing avenues. It might look something like:

• Social media ( Facebook, Instagram, Pinterest)
• Email newsletter
• Digital ads

Depending on the type of business you’re starting, this list could change quite a bit — and that’s okay. There is no one-size-fits-all marketing strategy, and you need to find the one that brings in the highest number of potential customers.

Your last section will be all about your leadership and management team members. Showcasing that you have a solid team right from the start can make potential investors feel better about funding your venture.

You can easily put together an organizational chart like the one below, with the founder/CEO at the top and each of your team leaders underneath alongside the department they’re in charge of.

Simply add an organizational chart like this as a page into your overall business plan and make sure it matches the rest of your design to create a cohesive document.

If you want to create a good business plan that sets your new business up for success and attracts new investors, it’s a good idea to start with a template. 

We’ve got 14 options below from a variety of different industries for you to choose from. You can customize every aspect of each template to fit your business branding and design preferences.

If you're pressed for time, Visme's AI business plan generator can churn out compelling business plans in minutes. Just input a detailed prompt, choose the design, and watch the tool generate your plan in a few seconds.

Template #1: Photography Business Plan Template

This feminine and minimalistic business plan template is perfect for getting started with any kind of creative business. Utilize this template to help outline the step-by-step process of getting your new business idea up and running.

Template #2: Real Estate Business Plan Template

Looking for a more modern business plan design? This template is perfect for plainly laying out each of your business plans in an easy-to-understand format. Adjust the red accents with your business’s colors to personalize this template.

Template #3: Nonprofit Business Plan Template

Creating a business and marketing plan for your nonprofit is still an essential step when you’re just starting out. You need to get the word out to increase donations and awareness for your cause.

Template #4: Restaurant Business Plan Template

If your business plan needs to rely heavily on showcasing photos of your products (like food), this template is perfect for you. Get potential investors salivating at the sight of your business plan, and they’re sure to provide the capital you need.

Template #5: Fashion Business Plan Template

Serifs are in. Utilize this template with stunning serif as all the headers to create a contemporary and trendy business plan design that fits your business. Adjust the colors to match your brand and easily input your own content.

Template #6: Daycare Business Plan Template

Creating a more kid-friendly or playful business? This business plan template has bold colors and design elements that will perfectly represent your business and its mission. 

Use the pages you need, and remove any that you don’t. You can also duplicate pages and move the elements around to add even more content to your business plan.

Template #7: Consulting Business Plan Template

This classic business plan template is perfect for a consulting business that wants to use a stunning visual design to talk about its services.

Template #8: Coffee Shop Business Plan Template

Customize this coffee shop business plan template to match your own business idea. Adjust the colors to fit your brand or industry, replace photos with your own photography or stock photos that represent your business, and insert your own logo, fonts and colors throughout.

Template #9: SaaS Business Plan Template

A SaaS or service-based company also needs a solid business plan that lays out its financials, list of services, target market and more. This template is the perfect starting point.

Template #10: Small Business Plan Template

Every startup or small business needs to start out with a strong business plan in order to start off on the right foot and set yourself up for success. This template is an excellent starting point for any small business.

Template #11: Ecommerce Business Plan Template

An ecommerce business plan is ideal for planning out your pricing strategy of all of your online products, as well as the site you plan to use for setting up your store, whether WordPress, Shopify, Wix or something else.

Template #12: Startup Business Plan Template

Customize this template and make it your own! Edit and Download  

This is another generic business plan template for any type of startup to customize. Switch out the content, fonts and colors to match your startup branding and increase brand equity.

Template #13: One-Page Business Plan Template

Want just a quick business plan to get your idea going before you bite the bullet and map out your entire plan? This one-page template is perfect for those just starting to flesh out a new business idea.

Template #14: Salon Business Plan Template

This salon business plan template is easy on the design and utilizes a light color scheme to put more focus on the actual content. You can use the design as is or keep it as a basis for your own design elements.

Create Your Own Business Plan Today

Ready to write your business plan? Once you’ve created all of the most important sections, get started with a business plan template to really wow your investors and organize your startup plan.

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About the Author

Chloe West is the content marketing manager at Visme. Her experience in digital marketing includes everything from social media, blogging, email marketing to graphic design, strategy creation and implementation, and more. During her spare time, she enjoys exploring her home city of Charleston with her son.

Writing a Job Proposal for a New Position

by Marta Kuzma , 6 October 2022

A new position at your company can be a win-win for you and your employer. You can fashion a role that better suits your skills and professional goals while your company benefits from your contributions and years of experience. 

How do you convince your employer to create a new role for you? Write a persuasive, well-planned job proposal. Let us walk you through crafting a top-notch pitch. 

Even if you’re not a current employee, you still can benefit from learning how to write a job proposal for potential employers.

Why You Need a Job Proposal

Pitching an idea for a new gig at your current company can:

Address an unmet need or promising opportunity for the organization

Move your professional career forward faster than waiting on a promotion, job postings, or job offer 

Ensure your job description aligns with your skill set, interests, and setting

Allow you to position yourself as the best candidate for the role

Knowing these potential benefits can help you to write a convincing proposal for work. 

Before You Begin

Here’s the first piece of advice for writing a great job proposal: Do plenty of research beforehand. You’re reading this article, so you’re already off to a great start!

Before diving into writing, take plenty of time to familiarize yourself with the process of proposal creation. Give yourself a generous timeline, with plenty of time to rework and fine-tune the report before you submit it. 

Identify the Need

Your proposal won’t be persuasive if the new job isn’t addressing an urgent or profitable need for the company. Otherwise, how can you convince the employer to pay for the work you’d be doing?

All great job proposals must tackle a current problem or opportunity that plagues the organization. They may not even realize that the issue exists; it’s up to you to bring the need to light.  This may involve enhancing marketing, sales, customer service, training, communication, recordkeeping, web design, SEO, or other facets of operations.

Do Your Homework

Identifying a need in your company is easier said than done! It takes plenty of research to get a solid grasp on how an organization can improve in performance and profitability. That comes with understanding key aspects like:

The internal workings of the organization

Context of the company in the larger industry or market

The company’s overarching business plan and strategic goals

Products and services the business sells

The company’s prior ventures

Spend time studying these before drafting your proposal. Have conversations with current and former employees, especially those who understand the shortcomings of the company’s operations and its products.

What are the steps to writing a proposal?

Step 1: Define the problem

Step 2: Research the situation

Step 3: Assess possible solutions

Step 4: Form your solution

Step 5: Project the impact

Step 6: Write the complete proposal

You can apply these steps whether you’re writing a job proposal, a bid proposal , or any other business pitch.

What Should Be Included in Your Proposal Letter

What does a new job proposal consist of? A new job proposal should include:

A cover letter introducing the proposal

A table of contents

A current challenge for the company

How the new job solves the issue

Financial costs and benefits analysis

A detailed job description

Your qualifications and experience

A recap of the proposal and summary of your recommendation 

An appendix of the data supporting your proposal

Always begin with a cover letter. If it’s missing or written poorly, your supervisor may overlook your report. 

What is a good cover letter for a job proposal? One that succinctly summarizes your relationship to the company, what you’re proposing, and why it’s worth hearing out.

Explanation of the Problem/Opportunity

Consider the employer’s perspective when you present the challenge their company faces. Define the current obstacle that is hindering the company’s growth, profits, or market viability. Use specific data and competitor analyses to support your claim.

Emphasize the situation in a way that makes it feel urgent. In other words, make them feel the hurt that you intend to heal.

Job Description of the New Position

Make sure the employer understands your vision for the role you’re proposing. This is a brand new job that doesn’t currently exist, so it’s important that you describe it thoroughly. This includes listing: 

Daily duties

Overarching responsibilities

Managerial level

Performance objectives/goals

Be sure to specify if it will be a full-time or part-time role, if it’s in-office or remote , and what the official job title could be. Also discuss the implications of the position within the organization’s structure if it will affect the team.

Impacts of the New Position

Clearly demonstrate the value a new position would provide. Be as in-depth as possible by describing specific tasks you will complete and how they will directly resolve the obstacle you defined.

The most compelling way to do this is to project the job’s financial impact, though you can also identify efficiency improvements and operational value. 

Your Qualifications

Now it’s time to sell yourself to your hiring manager. Why are you the best candidate for the role you defined? What makes you more qualified than other employees or freelancers on their roster? 

Talk yourself up by listing your

Professional experience

Certifications

Performance history

Achievements

Expertise in the industry

Soft skills

Consider this the job application portion of your proposal. Don’t forget to mention any leadership traits you have. 

Your History with the Company

Use your history with the company to your advantage. Go in-depth on what you’ve already done for the company and how well-versed you are in their vision, policies, and operations. 

Leverage your employment history to make a better case for why it’s in the manager’s best interest to appoint you. It’s something you offer that they won’t find in a new hire.

Summary & Recommendations

Conclude the proposal by summarizing the problem and your solution again briefly to ensure they’re firmly planted in the reader’s mind. Instead of ending on a passive note, inspire urgency in the reader by including a call to action with next-step recommendations that will galvanize the decision-making process.

Mention ways the decision-maker can follow up with you face-to-face, such as a meeting or phone screen interview .

Copies of Relevant Metrics

Your job proposal should include plenty of data to strengthen your case. If these details are too extensive to fit within the body of the proposal, include them at the end in an appendix. You can include full reports, charts, analyses, and other relevant metrics that illustrate the company’s deficiencies and projected profits.

Don’t be afraid to get creative here. If you know of other companies that have benefited from the kinds of changes you hope to make, include their information as case studies.

Best Practices for Writing a Business Proposal

A great job proposal isn’t just what you write; it’s also how you write it. Follow these recommendations to perfect your report for busy readers.

Sell Yourself

Don’t be afraid to paint yourself in an outstanding light. This is your opportunity to shine, so don’t be modest about your strengths and competencies. If you struggle with being too humble, ask some coworkers or friends to help talk you up. This position is your idea, and you want to ensure the company knows you’re ideal candidate.

It’s easy to be too wordy in a job proposal if you’re excited about the possibilities. Strive to be concise in your writing. Edit your draft repeatedly, removing all text that isn’t necessary. 

Remember, if the manager is intrigued by your proposal, you can wrestle over the finer points in greater detail later. For now, respect the reader’s time and only make the pitch long enough to hook them.

Format for Clarity

Make it easy for the reader to follow your line of thought, even if they’re skimming — and you should assume they’ll skim. Use formatting tools like bold text, bullet points, headers, and visual aids to emphasize key points of the proposal.

End with a Thank You

If your reader made it to the end of your proposal, they deserve your thanks. Express your appreciation for the time they spent reviewing your documents and for considering your suggestion. This shows that you value their time and recognize their generosity in hearing you out.

New Job Proposal Example

Here is a sample job proposal letter to help you get started. Due to its short length, it forgoes a cover letter, table of contents, and appendix. 

Dear [Name], 

Because of the recent increase in written tasks that our marketing manager has been given, I believe a dedicated content writer would benefit our company. 

A content writer could provide higher-quality marketing copy at a faster rate. I believe I am the best candidate to fulfill this new position for the company.

[Company] currently employs only one marketing specialist, and they have been saddled with an increasing load of duties to complete every week. This is resulting in rushed, inadequate text on our public-facing channels well after they’re needed. 

Our marketing manager does not have the time to dedicate to creating satisfactory, quality text for our website, print advertising, and social media channels by the necessary deadlines. However, appointing a skilled employee to write this time-sensitive text can solve the problem. 

My research has found that recent sub-par content and a growing backlog of copywriting needs are causing us to miss as much as 25% additional leads every month. Plus, quality content will better represent our company’s competency and professionalism in our industry. 

I am more than qualified to serve as our company’s content writer because I have

served the company for over 6 years

been closely involved in recent advertising projects 

formed a close working relationship with our marketing manager

majored in English and business in college

developed expertise on SEO and content marketing best practices

Thank you for taking the time to consider my proposal for creating a new content editor position in our company. I believe my qualifications make me the top candidate for the role, and I would love to serve our company in a new capacity to help us better achieve our business goals. 

Please don’t hesitate to contact me with any questions or to discuss a content writer role in more detail.

Sincerely, 

Looking for a New Challenge? 

Now your ready to write a new job proposal and move into a job that fits your skillset. If you’re looking for new ways to put your skills to work and grow your career, don’t forget there are plenty of options outside your current company. MVP Match can help job seekers like you achieve professional fulfillment by connecting freelancers with potential clients.

We have helped many employees make the jump to full-time freelancing . Our freelance network helps people like you find new clients and opportunities in an ever-changing job market. Join us and find your next great gig!

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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.

• How to Start a Business: A Comprehensive Guide and Essential Steps
• How to Do Market Research, Types, and Example
• Marketing Strategy: What It Is, How It Works, How To Create One
• Marketing in Business: Strategies and Types Explained
• What Is a Marketing Plan? Types and How to Write One
• Business Development: Definition, Strategies, Steps & Skills
• Business Plan: What It Is, What's Included, and How to Write One CURRENT ARTICLE
• Small Business Development Center (SBDC): Meaning, Types, Impact
• How to Write a Business Plan for a Loan
• Business Startup Costs: It’s in the Details
• Startup Capital Definition, Types, and Risks
• Bootstrapping Definition, Strategies, and Pros/Cons
• Crowdfunding: What It Is, How It Works, and Popular Websites
• Starting a Business with No Money: How to Begin
• A Comprehensive Guide to Establishing Business Credit
• Equity Financing: What It Is, How It Works, Pros and Cons
• Best Startup Business Loans
• Sole Proprietorship: What It Is, Pros & Cons, and Differences From an LLC
• Partnership: Definition, How It Works, Taxation, and Types
• What is an LLC? Limited Liability Company Structure and Benefits Defined
• Corporation: What It Is and How to Form One
• Starting a Small Business: Your Complete How-to Guide
• Starting an Online Business: A Step-by-Step Guide
• How to Start Your Own Bookkeeping Business: Essential Tips
• How to Start a Successful Dropshipping Business: A Comprehensive Guide

A business plan is a document that outlines a company's goals and the strategies to achieve them. It's valuable for both startups and established companies. For startups, a well-crafted business plan is crucial for attracting potential lenders and investors. Established businesses use business plans to stay on track and aligned with their growth objectives. This article will explain the key components of an effective business plan and guidance on how to write one.

Key Takeaways

• A business plan is a document detailing a company's business activities and strategies for achieving its goals.
• Startup companies use business plans to launch their venture and to attract outside investors.
• For established companies, a business plan helps keep the executive team focused on short- and long-term objectives.
• There's no single required format for a business plan, but certain key elements are essential for most companies.

Investopedia / Ryan Oakley

Any new business should have a business plan in place before beginning operations. Banks and venture capital firms often want to see a business plan before considering making a loan or providing capital to new businesses.

Even if a company doesn't need additional funding, having a business plan helps it stay focused on its goals. Research from the University of Oregon shows that businesses with a plan are significantly more likely to secure funding than those without one. Moreover, companies with a business plan grow 30% faster than those that don't plan. According to a Harvard Business Review article, entrepreneurs who write formal plans are 16% more likely to achieve viability than those who don't.

A business plan should ideally be reviewed and updated periodically to reflect achieved goals or changes in direction. An established business moving in a new direction might even create an entirely new plan.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. It allows for careful consideration of ideas before significant investment, highlights potential obstacles to success, and provides a tool for seeking objective feedback from trusted outsiders. A business plan may also help ensure that a company’s executive team remains aligned on strategic action items and priorities.

While business plans vary widely, even among competitors in the same industry, they often share basic elements detailed below.

A well-crafted business plan is essential for attracting investors and guiding a company's strategic growth. It should address market needs and investor requirements and provide clear financial projections.

While there are any number of templates that you can use to write a business plan, it's best to try to avoid producing a generic-looking one. Let your plan reflect the unique personality of your business.

Many business plans use some combination of the sections below, with varying levels of detail, depending on the company.

The length of a business plan can vary greatly from business to business. Regardless, gathering the basic information into a 15- to 25-page document is best. Any additional crucial elements, such as patent applications, can be referenced in the main document and included as appendices.

Common elements in many business plans include:

• Executive summary : This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations.
• Products and services : Describe the products and services the company offers or plans to introduce. Include details on pricing, product lifespan, and unique consumer benefits. Mention production and manufacturing processes, relevant patents , proprietary technology , and research and development (R&D) information.
• Market analysis : Explain the current state of the industry and the competition. Detail where the company fits in, the types of customers it plans to target, and how it plans to capture market share from competitors.
• Marketing strategy : Outline the company's plans to attract and retain customers, including anticipated advertising and marketing campaigns. Describe the distribution channels that will be used to deliver products or services to consumers.
• Financial plans and projections : Established businesses should include financial statements, balance sheets, and other relevant financial information. New businesses should provide financial targets and estimates for the first few years. This section may also include any funding requests.

Investors want to see a clear exit strategy, expected returns, and a timeline for cashing out. It's likely a good idea to provide five-year profitability forecasts and realistic financial estimates.

2 Types of Business Plans

Business plans can vary in format, often categorized into traditional and lean startup plans. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

• Traditional business plans : These are detailed and lengthy, requiring more effort to create but offering comprehensive information that can be persuasive to potential investors.
• Lean startup business plans : These are concise, sometimes just one page, and focus on key elements. While they save time, companies should be ready to provide additional details if requested by investors or lenders.

Why Do Business Plans Fail?

A business plan isn't a surefire recipe for success. The plan may have been unrealistic in its assumptions and projections. Markets and the economy might change in ways that couldn't have been foreseen. A competitor might introduce a revolutionary new product or service. All this calls for building flexibility into your plan, so you can pivot to a new course if needed.

How Often Should a Business Plan Be Updated?

How frequently a business plan needs to be revised will depend on its nature. Updating your business plan is crucial due to changes in external factors (market trends, competition, and regulations) and internal developments (like employee growth and new products). While a well-established business might want to review its plan once a year and make changes if necessary, a new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.

What Does a Lean Startup Business Plan Include?

The lean startup business plan is ideal for quickly explaining a business, especially for new companies that don't have much information yet. Key sections may include a value proposition , major activities and advantages, resources (staff, intellectual property, and capital), partnerships, customer segments, and revenue sources.

A well-crafted business plan is crucial for any company, whether it's a startup looking for investment or an established business wanting to stay on course. It outlines goals and strategies, boosting a company's chances of securing funding and achieving growth.

As your business and the market change, update your business plan regularly. This keeps it relevant and aligned with your current goals and conditions. Think of your business plan as a living document that evolves with your company, not something carved in stone.

University of Oregon Department of Economics. " Evaluation of the Effectiveness of Business Planning Using Palo Alto's Business Plan Pro ." Eason Ding & Tim Hursey.

Bplans. " Do You Need a Business Plan? Scientific Research Says Yes ."

Harvard Business Review. " Research: Writing a Business Plan Makes Your Startup More Likely to Succeed ."

Harvard Business Review. " How to Write a Winning Business Plan ."

U.S. Small Business Administration. " Write Your Business Plan ."

SCORE. " When and Why Should You Review Your Business Plan? "

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How to Write a Business Plan (Plus Examples & Templates)

Have you ever wondered how to write a business plan step by step? Mike Andes, told us: 

This guide will help you write a business plan to impress investors.

Throughout this process, we’ll get information from Mike Andes, who started Augusta Lawn Care Services when he was 12 and turned it into a franchise with over 90 locations. He has gone on to help others learn how to write business plans and start businesses.  He knows a thing or two about writing  business plans!

We’ll start by discussing the definition of a business plan. Then we’ll discuss how to come up with the idea, how to do the market research, and then the important elements in the business plan format. Keep reading to start your journey!

What Is a Business Plan?

A business plan is simply a road map of what you are trying to achieve with your business and how you will go about achieving it. It should cover all elements of your business including: 

• Finding customers
• Plans for developing a team
•  Competition
• Legal structures
• Key milestones you are pursuing

If you aren’t quite ready to create a business plan, consider starting by reading our business startup guide .

Get a Business Idea

Before you can write a business plan, you have to have a business idea. You may see a problem that needs to be solved and have an idea how to solve it, or you might start by evaluating your interests and skills. 

Mike told us, “The three things I suggest asking yourself when thinking about starting a business are:

• What am I good at?
• What would I enjoy doing?
• What can I get paid for?”

If all three of these questions don’t lead to at least one common answer, it will probably be a much harder road to success. Either there is not much market for it, you won’t be good at it, or you won’t enjoy doing it. 

As Mike told us, “There’s enough stress starting and running a business that if you don’t like it or aren’t good at it, it’s hard to succeed.”

If you’d like to hear more about Mike’s approach to starting a business, check out our YouTube video

Conduct Market Analysis

Market analysis is focused on establishing if there is a target market for your products and services, how large the target market is, and identifying the demographics of people or businesses that would be interested in the product or service. The goal here is to establish how much money your business concept can make.

Product and Service Demand

A search engine is your best friend when trying to figure out if there is demand for your products and services. Personally, I love using presearch.org because it lets you directly search on a ton of different platforms including Google, Youtube, Twitter, and more. Check out the screenshot for the full list of search options.

With quick web searches, you can find out how many competitors you have, look through their reviews, and see if there are common complaints about the competitors. Bad reviews are a great place to find opportunities to offer better products or services. 

If there are no similar products or services, you may have stumbled upon something new, or there may just be no demand for it. To find out, go talk to your most honest friend about the idea and see what they think. If they tell you it’s dumb or stare at you vacantly, there’s probably no market for it.

You can also conduct a survey through social media to get public opinion on your idea. Using Facebook Business Manager , you could get a feel for who would be interested in your product or service.

 I ran a quick test of how many people between 18-65  you could reach in the U.S. during a week. It returned an estimated 700-2,000 for the total number of leads, which is enough to do a fairly accurate statistical analysis.

Identify Demographics of Target Market

Depending on what type of business you want to run, your target market will be different. The narrower the demographic, the fewer potential customers you’ll have. If you did a survey, you’ll be able to use that data to help define your target audience. Some considerations you’ll want to consider are:

• Other Interests
• Marital Status
• Do they have kids?

Once you have this information, it can help you narrow down your options for location and help define your marketing further. One resource that Mike recommended using is the Census Bureau’s Quick Facts Map . He told us,  

“It helps you quickly evaluate what the best areas are for your business to be located.”

How to Write a Business Plan

Now that you’ve developed your idea a little and established there is a market for it, you can begin writing a business plan. Getting started is easier with the business plan template we created for you to download. I strongly recommend using it as it is updated to make it easier to create an action plan. 

Each of the following should be a section of your business plan:

• Business Plan Cover Page
• Table of Contents
• Executive Summary
• Company Description
• Description of Products and Services

SWOT Analysis

• Competitor Data
• Competitive Analysis
• Marketing Expenses Strategy 

Pricing Strategy

• Distribution Channel Assessment
• Operational Plan
• Management and Organizational Strategy
• Financial Statements and/or Financial Projections

We’ll look into each of these. Don’t forget to download our free business plan template (mentioned just above) so you can follow along as we go. 

How to Write a Business Plan Step 1. Create a Cover Page

The first thing investors will see is the cover page for your business plan. Make sure it looks professional. A great cover page shows that you think about first impressions.

A good business plan should have the following elements on a cover page:

• Professionally designed logo
• Company name
• Mission or Vision Statement
• Contact Info

Basically, think of a cover page for your business plan like a giant business card. It is meant to capture people’s attention but be quickly processed.

How to Write a Business Plan Step 2. Create a Table of Contents

Most people are busy enough that they don’t have a lot of time. Providing a table of contents makes it easy for them to find the pages of your plan that are meaningful to them.

A table of contents will be immediately after the cover page, but you can include it after the executive summary. Including the table of contents immediately after the executive summary will help investors know what section of your business plan they want to review more thoroughly.

Check out Canva’s article about creating a  table of contents . It has a ton of great information about creating easy access to each section of your business plan. Just remember that you’ll want to use different strategies for digital and hard copy business plans.

How to Write a Business Plan Step 3. Write an Executive Summary

An executive summary is where your business plan should catch the readers interest.  It doesn’t need to be long, but should be quick and easy to read.

Mike told us,

How long should an executive summary bein an informal business plan?

For casual use, an executive summary should be similar to an elevator pitch, no more than 150-160 words, just enough to get them interested and wanting more. Indeed has a great article on elevator pitches .  This can also be used for the content of emails to get readers’ attention.

It consists of three basic parts:

• An introduction to you and your business.
• What your business is about.
• A call to action

Example of an informal executive summary 

One of the best elevator pitches I’ve used is:

So far that pitch has achieved a 100% success rate in getting partnerships for the business.

What should I include in an executive summary for investors?

Investors are going to need a more detailed executive summary if you want to secure financing or sell equity. The executive summary should be a brief overview of your entire business plan and include:

• Introduction of yourself and company.
• An origin story (Recognition of a problem and how you came to solution)
• An introduction to your products or services.
• Your unique value proposition. Make sure to include intellectual property.
• Where you are in the business life cycle
• Request and why you need it.

Successful business plan examples

The owner of Urbanity told us he spent 2 months writing a 75-page business plan and received a $250,000 loan from the bank when he was 23. Make your business plan as detailed as possible when looking for financing. We’ve provided a template to help you prepare the portions of a business plan that banks expect.

Here’s the interview with the owner of Urbanity:

When to write an executive summary?

Even though the summary is near the beginning of a business plan, you should write it after you complete the rest of a business plan. You can’t talk about revenue, profits, and expected expenditures if you haven’t done the market research and created a financial plan.

What mistakes do people make when writing an executive summary?

Business owners commonly go into too much detail about the following items in an executive summary:

• Marketing and sales processes
• Financial statements
• Organizational structure
• Market analysis

These are things that people will want to know later, but they don’t hook the reader. They won’t spark interest in your small business, but they’ll close the deal.

How to Write a Business Plan Step 4. Company Description

Every business plan should include a company description. A great business plan will include the following elements while describing the company:

• Mission statement
• Philosophy and vision
• Company goals

Target market

• Legal structure

Let’s take a look at what each section includes in a good business plan.

Mission Statement

A mission statement is a brief explanation of why you started the company and what the company’s main focus is. It should be no more than one or two sentences. Check out HubSpot’s article 27 Inspiring Mission Statement for a great read on informative and inspiring mission and vision statements. 

Company Philosophy and Vision

The company philosophy is what drives your company. You’ll normally hear them called core values.  These are the building blocks that make your company different. You want to communicate your values to customers, business owners, and investors as often as possible to build a company culture, but make sure to back them up.

What makes your company different?

Each company is different. Your new business should rise above the standard company lines of honesty, integrity, fun, innovation, and community when communicating your business values. The standard answers are corporate jargon and lack authenticity. 

Examples of core values

One of my clients decided to add a core values page to their website. As a tech company they emphasized the values:

•  Prioritize communication.
•  Never stop learning.
•  Be transparent.
•  Start small and grow incrementally.

These values communicate how the owner and the rest of the company operate. They also show a value proposition and competitive advantage because they specifically focus on delivering business value from the start. These values also genuinely show what the company is about and customers recognize the sincerity. Indeed has a great blog about how to identify your core values .

What is a vision statement?

A vision statement communicate the long lasting change a business pursues. The vision helps investors and customers understand what your company is trying to accomplish. The vision statement goes beyond a mission statement to provide something meaningful to the community, customer’s lives, or even the world.

Example vision statements

The Alzheimer’s Association is a great example of a vision statement:

A world without Alzheimer’s Disease and other dementia.

It clearly tells how they want to change the world. A world without Alzheimers might be unachievable, but that means they always have room for improvement.

Business Goals

You have to measure success against goals for a business plan to be meaningful. A business plan helps guide a company similar to how your GPS provides a road map to your favorite travel destination. A goal to make as much money as possible is not inspirational and sounds greedy.

Sure, business owners want to increase their profits and improve customer service, but they need to present an overview of what they consider success. The goals should help everyone prioritize their work.

How far in advance should a business plan?

Business planning should be done at least one year in advance, but many banks and investors prefer three to five year business plans. Longer plans show investors that the management team  understands the market and knows the business is operating in a constantly shifting market. In addition, a plan helps businesses to adjust to changes because they have already considered how to handle them.

Example of great business goals

My all time-favorite long-term company goals are included in Tesla’s Master Plan, Part Deux . These goals were written in 2016 and drive the company’s decisions through 2026. They are the reason that investors are so forgiving when Elon Musk continually fails to meet his quarterly and annual goals.

If the progress aligns with the business plan investors are likely to continue to believe in the company. Just make sure the goals are reasonable or you’ll be discredited (unless you’re Elon Musk).

You did target market research before creating a business plan. Now it’s time to add it to the plan so others understand what your ideal customer looks like. As a new business owner, you may not be considered an expert in your field yet, so document everything. Make sure the references you use are from respectable sources. 

Use information from the specific lender when you are applying for lending. Most lenders provide industry research reports and using their data can strengthen the position of your business plan.

A small business plan should include a section on the external environment. Understanding the industry is crucial because we don’t plan a business in a vacuum. Make sure to research the industry trends, competitors, and forecasts. I personally prefer IBIS World for my business research. Make sure to answer questions like:

• What is the industry outlook long-term and short-term?
• How will your business take advantage of projected industry changes and trends?
• What might happen to your competitors and how will your business successfully compete?

Industry resources

Some helpful resources to help you establish more about your industry are:

• Trade Associations
• Federal Reserve
• Bureau of Labor Statistics

Legal Structure

There are five basic types of legal structures that most people will utilize:

• Sole proprietorships
• Limited Liability Companies (LLC)

Partnerships

Corporations.

• Franchises.

Each business structure has their pros and cons. An LLC is the most common legal structure due to its protection of personal assets and ease of setting up. Make sure to specify how ownership is divided and what roles each owner plays when you have more than one business owner.

You’ll have to decide which structure is best for you, but we’ve gathered information on each to make it easier.

Sole Proprietorship

A sole proprietorship is the easiest legal structure to set up but doesn’t protect the owner’s personal assets from legal issues. That means if something goes wrong, you could lose both your company and your home.

To start a sole proprietorship, fill out a special tax form called a  Schedule C . Sole proprietors can also join the American Independent Business Alliance .

Limited Liability Company (LLC)

An LLC is the most common business structure used in the United States because an LLC protects the owner’s personal assets. It’s similar to partnerships and corporations, but can be a single-member LLC in most states. An LLC requires a document called an operating agreement.

Each state has different requirements. Here’s a link to find your state’s requirements . Delaware and Nevada are common states to file an LLC because they are really business-friendly. Here’s a blog on the top 10 states to get an LLC.

Partnerships are typically for legal firms. If you choose to use a partnership choose a Limited Liability Partnership. Alternatively, you can just use an LLC.

Corporations are typically for massive organizations. Corporations have taxes on both corporate and income tax so unless you plan on selling stock, you are better off considering an LLC with S-Corp status . Investopedia has good information corporations here .

There are several opportunities to purchase successful franchises. TopFranchise.com has a list of companies in a variety of industries that offer franchise opportunities. This makes it where an entrepreneur can benefit from the reputation of an established business that has already worked out many of the kinks of starting from scratch.

How to Write a Business Plan Step 5. Products and Services

This section of the business plan should focus on what you sell, how you source it, and how you sell it. You should include:

• Unique features that differentiate your business products from competitors
• Intellectual property
• Your supply chain
• Cost and pricing structure 

Questions to answer about your products and services

Mike gave us a list  of the most important questions to answer about your product and services:

• How will you be selling the product? (in person, ecommerce, wholesale, direct to consumer)?
• How do you let them know they need a product?
• How do you communicate the message?
• How will you do transactions?
• How much will you be selling it for?
• How many do you think you’ll sell and why?

Make sure to use the worksheet on our business plan template .

How to Write a Business Plan Step 6. Sales and Marketing Plan

The marketing and sales plan is focused on the strategy to bring awareness to your company and guides how you will get the product to the consumer.  It should contain the following sections:

SWOT Analysis stands for strengths, weaknesses, opportunities, and threats. Not only do you want to identify them, but you also want to document how the business plans to deal with them.

Business owners need to do a thorough job documenting how their service or product stacks up against the competition.

If proper research isn’t done, investors will be able to tell that the owner hasn’t researched the competition and is less likely to believe that the team can protect its service from threats by the more well-established competition. This is one of the most common parts of a presentation that trips up business owners presenting on Shark Tank .

SWOT Examples

Examples of strengths and weaknesses could be things like the lack of cash flow, intellectual property ownership, high costs of suppliers, and customers’ expectations on shipping times.

Opportunities could be ways to capitalize on your strengths or improve your weaknesses, but may also be gaps in the industry. This includes:

• Adding offerings that fit with your current small business
• Increase sales to current customers
• Reducing costs through bulk ordering
• Finding ways to reduce inventory
•  And other areas you can improve

Threats will normally come from outside of the company but could also be things like losing a key member of the team. Threats normally come from competition, regulations, taxes, and unforeseen events.

The management team should use the SWOT analysis to guide other areas of business planning, but it absolutely has to be done before a business owner starts marketing. 

Include Competitor Data in Your Business Plan

When you plan a business, taking into consideration the strengths and weaknesses of the competition is key to navigating the field. Providing an overview of your competition and where they are headed shows that you are invested in understanding the industry.

For smaller businesses, you’ll want to search both the company and the owners names to see what they are working on. For publicly held corporations, you can find their quarterly and annual reports on the SEC website .

What another business plans to do can impact your business. Make sure to include things that might make it attractive for bigger companies to outsource to a small business.

Marketing Strategy

The marketing and sales part of business plans should be focused on how you are going to make potential customers aware of your business and then sell to them.

If you haven’t already included it, Mike recommends:

“They’ll want to know about Demographics, ages, and wealth of your target market.”

Make sure to include the Total addressable market .  The term refers to the value if you captured 100% of the market.

Advertising Strategy

You’ll explain what formats of advertising you’ll be using. Some possibilities are:

• Online: Facebook and Google are the big names to work with here.
• Print : Print can be used to reach broad groups or targeted markets. Check out this for tips .
• Radio : iHeartMedia is one of the best ways to advertise on the radio
• Cable television : High priced, hard to measure ROI, but here’s an explanation of the process
• Billboards: Attracting customers with billboards can be beneficial in high traffic areas.

You’ll want to define how you’ll be using each including frequency, duration, and cost. If you have the materials already created, including pictures or links to the marketing to show creative assets.

Mike told us “Most businesses are marketing digitally now due to Covid, but that’s not always the right answer.”

Make sure the marketing strategy will help team members or external marketing agencies stay within the brand guidelines .

This section of a business plan should be focused on pricing. There are a ton of pricing strategies that may work for different business plans. Which one will work for you depends on what kind of a business you run.

Some common pricing strategies are:

• Value-based pricing – Commonly used with home buying and selling or other products that are status symbols.
• Skimming pricing – Commonly seen in video game consoles, price starts off high to recoup expenses quickly, then reduces over time.
• Competition-based pricing – Pricing based on competitors’ pricing is commonly seen at gas stations.
• Freemium services –  Commonly used for software, where there is a free plan, then purchase options for more functionality.

HubSpot has a great calculator and blog on pricing strategies.

Beyond explaining what strategy your business plans to use, you should include references for how you came to this pricing strategy and how it will impact your cash flow.

Distribution Plan

This part of a business plan is focused on how the product or service is going to go through the supply chain. These may include multiple divisions or multiple companies. Make sure to include any parts of the workflow that are automated so investors can see where cost savings are expected and when.

Supply Chain Examples

For instance, lawn care companies  would need to cover aspects such as:

• Suppliers for lawn care equipment and tools
• Any chemicals or treatments needed
• Repair parts for sprinkler systems
• Vehicles to transport equipment and employees
• Insurance to protect the company vehicles and people.

Examples of Supply Chains

These are fairly flat supply chains compared to something like a clothing designer where the clothes would go through multiple vendors. A clothing company might have the following supply chain:

• Raw materials
• Shipping of raw materials
• Converting of raw materials to thread
• Shipping thread to produce garments
• Garment producer
• Shipping to company
• Company storage
• Shipping to retail stores

There have been advances such as print on demand that eliminate many of these steps. If you are designing completely custom clothing, all of this would need to be planned to keep from having business disruptions.

The main thing to include in the business plan is the list of suppliers, the path the supply chain follows, the time from order to the customer’s home, and the costs associated with each step of the process.

According to BizPlanReview , a business plan without this information is likely to get rejected because they have failed to research the key elements necessary to make sales to the customer.

How to Write a Business Plan Step 7. Company Organization and Operational Plan

This part of the business plan is focused on how the business model will function while serving customers.  The business plan should provide an overview of  how the team will manage the following aspects:

Quality Control

• Legal environment

Let’s look at each for some insight.

Production has already been discussed in previous sections so I won’t go into it much. When writing a business plan for investors, try to avoid repetition as it creates a more simple business plan.

If the organizational plan will be used by the team as an overview of how to perform the best services for the customer, then redundancy makes more sense as it communicates what is important to the business.

Quality control policies help to keep the team focused on how to verify that the company adheres to the business plan and meets or exceeds customer expectations.

Quality control can be anything from a standard that says “all labels on shirts can be no more than 1/16″ off center” to a defined checklist of steps that should be performed and filled out for every customer.

There are a variety of organizations that help define quality control including:

• International Organization for Standardization – Quality standards for energy, technology, food, production environments, and cybersecurity
• AICPA – Standard defined for accounting.
• The Joint Commission – Healthcare
• ASHRAE – HVAC best practices

You can find lists of the organizations that contribute most to the government regulation of industries on Open Secrets . Research what the leaders in your field are doing. Follow their example and implement it in your quality control plan.

For location, you should use information from the market research to establish where the location will be. Make sure to include the following in the location documentation.

• The size of your location
• The type of building (retail, industrial, commercial, etc.)
• Zoning restrictions – Urban Wire has a good map on how zoning works in each state
• Accessibility – Does it meet ADA requirements?
• Costs including rent, maintenance, utilities, insurance and any buildout or remodeling costs
• Utilities – b.e.f. has a good energy calculator .

Legal Environment

The legal requirement section is focused on defining how to meet the legal requirements for your industry. A good business plan should include all of the following:

• Any licenses and/or permits that are needed and whether you’ve obtained them
• Any trademarks, copyrights, or patents that you have or are in the process of applying for
• The insurance coverage your business requires and how much it costs
• Any environmental, health, or workplace regulations affecting your business
• Any special regulations affecting your industry
• Bonding requirements, if applicable

Your local SBA office can help you establish requirements in your area. I strongly recommend using them. They are a great resource.

Your business plan should include a plan for company organization and hiring. While you may be the only person with the company right now, down the road you’ll need more people. Make sure to consider and document the answers to the following questions:

• What is the current leadership structure and what will it look like in the future?
• What types of employees will you have? Are there any licensing or educational requirements?
• How many employees will you need?
• Will you ever hire freelancers or independent contractors?
• What is each position’s job description?
• What is the pay structure (hourly, salaried, base plus commission, etc.)?
• How do you plan to find qualified employees and contractors?

One of the most crucial parts of a business plan is the organizational chart. This simply shows the positions the company will need, who is in charge of them and the relationship of each of them. It will look similar to this:

Our small business plan template has a much more in-depth organizational chart you can edit to include when you include the organizational chart in your business plan.

How to Write a Business Plan Step 8. Financial Statements 

No business plan is complete without financial statements or financial projections. The business plan format will be different based on whether you are writing a business plan to expand a business or a startup business plan. Let’s dig deeper into each.

Provide All Financial Income from an Existing Business

An existing business should use their past financial documents including the income statement, balance sheet, and cash flow statement to find trends to estimate the next 3-5 years.

You can create easy trendlines in excel to predict future revenue, profit and loss, cash flow, and other changes in year-over-year performance. This will show your expected performance assuming business continues as normal.

If you are seeking an investment, then the business is probably not going to continue as normal. Depending on the financial plan and the purpose of getting financing, adjustments may be needed to the following:

• Higher Revenue if expanding business
• Lower Cost of Goods Sold if purchasing inventory with bulk discounts
• Adding interest if utilizing financing (not equity deal)
• Changes in expenses
• Addition of financing information to the cash flow statement
• Changes in Earnings per Share on the balance sheet

Financial modeling is a challenging subject, but there are plenty of low-cost courses on the subject. If you need help planning your business financial documentation take some time to watch some of them.

Make it a point to document how you calculated all the changes to the income statement, balance sheet, and cash flow statement in your business plan so that key team members or investors can verify your research.

Financial Projections For A Startup Business Plan

Unlike an existing business, a startup doesn’t have previous success to model its future performance. In this scenario, you need to focus on how to make a business plan realistic through the use of industry research and averages.

Mike gave the following advice in his interview:

Financial Forecasting Mistakes

One of the things a lot of inexperienced people use is the argument, “If I get one percent of the market, it is worth $100 million.” If you use this, investors are likely to file the document under bad business plan examples.

Let’s use custom t-shirts as an example.

Credence Research estimated in 2018 there were 11,334,800,000 custom t-shirts sold for a total of $206.12 Billion, with a 6% compound annual growth rate.

With that data,  you can calculate that the industry will grow to $270 Billion in 2023 and that the average shirt sold creates $18.18 in revenue.

Combine that with an IBIS World estimate of 11,094 custom screen printers and that means even if you become an average seller, you’ll get .009% of the market.

Here’s a table for easier viewing of that information.

The point here is to make sure your business proposal examples make sense.

You’ll need to know industry averages such as cost of customer acquisition, revenue per customer, the average cost of goods sold, and admin costs to be able to create accurate estimates.

Our simple business plan templates walk you through most of these processes. If you follow them you’ll have a good idea of how to write a business proposal.

How to Write a Business Plan Step 9. Business Plan Example of Funding Requests

What is a business plan without a plan on how to obtain funding?

The Small Business Administration has an example for a pizza restaurant that theoretically needed nearly $20k to make it through their first month.

In our video, How to Start a $500K/Year T-Shirt Business (Pt. 1 ), Sanford Booth told us he needed about $200,000 to start his franchise and broke even after 4 months.

Freshbooks estimates it takes on average 2-3 years for a business to be profitable, which means the fictitious pizza company from the SBA could need up to $330k to make it through that time and still pay their bills for their home and pizza shop.

Not every business needs that much to start, but realistically it’s a good idea to assume that you need a fairly large cushion.

Ways to get funding for a small business

There are a variety of ways to cover this. the most common are:

• Bootstrapping – Using your savings without external funding.
• Taking out debt – loans, credit cards
• Equity, Seed Funding – Ownership of a percentage of the company in exchange for current funds
• Crowdsourcing – Promising a good for funding to create the product

Keep reading for more tips on how to write a business plan.

How funding will be used

When asking for business financing make sure to include:

• How much to get started?
• What is the minimum viable product and how soon can you make money?
• How will the money be spent?

Mike emphasized two aspects that should be included in every plan, 

How to Write a Business Plan Resources

Here are some links to a business plan sample and business plan outline. 

• Sample plan

It’s also helpful to follow some of the leading influencers in the business plan writing community. Here’s a list:

• Wise Plans –  Shares a lot of information on starting businesses and is a business plan writing company.
• Optimus Business Plans –  Another business plan writing company.
• Venture Capital – A venture capital thread that can help give you ideas.

How to Write a Business Plan: What’s Next?

We hope this guide about how to write a simple business plan step by step has been helpful. We’ve covered:

• The definition of a business plan
• Coming up with a business idea
• Performing market research
• The critical components of a business plan
• An example business plan

In addition, we provided you with a simple business plan template to assist you in the process of writing your startup business plan. The startup business plan template also includes a business model template that will be the key to your success.

Don’t forget to check out the rest of our business hub .

Have you written a business plan before? How did it impact your ability to achieve your goals?

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How to write a proposal for a new job position.

Writing a proposal for a new position at your company should focus on demonstrating that your employer needs the new position and will profit from its creation. Once you make that sale, showcase your skills and capabilities to demonstrate that you’re the best candidate for the newly-created job.

Find the Need

Start your project by determining the need for the position. The new position might solve a problem, such as eliminating production or delivery bottlenecks. It might help the company take advantage of an opportunity, such as fostering increased sales by targeting a territory or sales method that current reps can’t handle. Your proposed position might allow the company to expand its marketing, improve customer service, reduce employee turnover or decrease manufacturing expenses.

Emphasize the Employer’s Benefits

List the direct benefits of the new position to the employer. Try to find both quantitative and qualitative benefits to make your case stronger. For example, if your position will improve customer service, cite figures that show how many customers have left during the past year, or how many complaints you’ve had. Provide a company organization chart in your proposal and show where your position fits. Try to demonstrate that the company has a hole in its organization without this position. Make it clear to whom the position will report, and if the position will oversee any subordinates. Add comments from department heads to support your premises.

Calculate the Financial Impact

If possible, provide financial projections to justify the position. Calculate the cost of the position, including salary, benefits, equipment and any other related costs. Project how much of an increase in revenue the position will bring or how much of a decrease in expenses the new job will create. Try to demonstrate the financial benefit of improved customer service and decreased employee turnover if your position addresses benefits such as those. If you are proposing to bring contracted work in house at a higher salary expense, show how the benefits, such as improved quality or increased customer satisfaction, will result in increased sales and revenues.

Write The Job Description

Write the position description so your boss knows exactly what you would be doing 40 hours each week. Include how the position serves or oversees other positions. This position description should be complete enough that it can form the basis for an annual review. Without padding the description, include skills, competencies, abilities, education, training and certifications that you have.

List Your Qualifications

Match your credentials to the job description you’ve created. Be careful not to oversell yourself or inflate the job description. This will set off a red flag with your boss that the rest of the document might not be credible. Rather than just listing your skills, explain how each skill or ability you have will be used to do the work.

Create The Proposal Document

Write your proposal using the information you’ve gathered. Include a cover page, table of contents, executive summary and your different sections. In the executive summary, briefly describe the position and list the benefits it offers. Include an appendix if you are providing historical sales or customer service data, or detailed financial projections. Include the following sections after the executive summary:

• Company Problem or Opportunity
• Solution the Position Provides 
• Financial Impacts 
• Detailed Job Description
• Your Qualifications 
• Summary and Recommendations

Your document should be concise, but don't sacrifice details for the sake of brevity.

Related Articles

How to request a salary increase →.

How to Write a Job Position Justification →

How to Sell Yourself With Management Skills →

Sample Letter for Negotiating Salary →

How to negotiate salary & moving expenses →.

How to Write Self-Appraisals →

• Career Igniter: How To Write A Job Proposal

Sam Ashe-Edmunds has been writing and lecturing for decades. He has worked in the corporate and nonprofit arenas as a C-Suite executive, serving on several nonprofit boards. He is an internationally traveled sport science writer and lecturer. He has been published in print publications such as Entrepreneur, Tennis, SI for Kids, Chicago Tribune, Sacramento Bee, and on websites such Smart-Healthy-Living.net, SmartyCents and Youthletic. Edmunds has a bachelor's degree in journalism.

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Business Plan: What It Is and How to Write One in 9 Steps

Business plans aren’t just for entrepreneurs who need to secure funding—they can help you plan and evaluate new ideas or growth plans, too. Find out how to write a business plan and get the most out of the process in this comprehensive guide.

A great business plan can help you clarify your strategy, identify potential roadblocks, determine necessary resources, and evaluate the viability of your idea and growth plan before you start a business .

Not every successful business launches with a formal business plan, but many founders find value in the process. When you make a business plan, you get to take time to step back, research your idea and the market you’re looking to enter, and understand the scope and the strategy behind your tactics.

Learn how to write a business plan with this step-by-step guide, including tips for getting the most of your plan and real business plan examples to inspire you.

What is a business plan?

A business plan is a strategic document that outlines a company’s goals, strategies for achieving them, and the time frame for their achievement. It covers aspects like market analysis , financial projections, and organizational structure. Ultimately, a business plan serves as a roadmap for business growth and a tool to secure funding.

Often, financial institutions and investors need to see a business plan before funding any project. Even if you don’t plan to seek outside funding, a well-crafted plan becomes the guidance for your business as it scales.

The key components of a business plan

Putting together a business plan will highlight the parts of your company’s strategy and goals. It involves several key business plan components that work together to show the roadmap to your success.

Your business plan’s key components should include: 

• Executive summary: A brief overview of your entire plan.
• Company description: An explanation of what your business does and why it’s unique. 
• Market analysis: Research on your industry, target market, and competitors.
• Organization and management: Details about your business structure and the people running it.
• Products or services: A description of what you’re selling and how it benefits customers. 
• Customer segmentation: A breakdown of your target market into different groups.
• Marketing and sales plan: The strategy for promoting and selling your products and services.
• Logistics and operations: An overview of how your business will run its daily activities and manage resources.
• Financials: A complete look at projected income, expenses, and funding needs. 

How to write a business plan in 9 steps

• Draft an executive summary
• Write a company description
• Perform a market analysis
• Outline the management and organization
• List your products and services
• Perform customer segmentation
• Define a marketing plan
• Provide a logistics and operations plan
• Make a financial plan

Few things are more intimidating than a blank page. Starting your business plan with a structured outline and key elements for what you’ll include in each section is the best first step you can take.

Since an outline is such an important step in the process of writing a business plan, we’ve put together a high-level overview to get you started (and help you avoid the terror of facing a blank page).

Once you have your business plan template in place, it’s time to fill it in. We’ve broken it down by section to help you build your plan step by step.

1. Draft an executive summary

A good executive summary is one of the most crucial sections of your business plan—it’s also the last section you should write.

The executive summary distills everything that follows and gives time-crunched reviewers (e.g., potential investors and lenders) a high-level overview of your business that persuades them to read further.

Again, it’s a summary, so highlight the key points you’ve uncovered while writing your plan. If you’re writing for your own planning purposes, you can skip the summary altogether—although you might want to give it a try anyway, just for practice.

An executive summary shouldn’t exceed one page. Admittedly, that space constraint can make squeezing in all of the salient information a bit stressful—but it’s not impossible. 

Your business plan’s executive summary should include:

• Business concept. What does your business do?
• Business goals and vision. What does your business want to accomplish?
• Product description and differentiation. What do you sell, and why is it different?
• Target market. Who do you sell to?
• Marketing strategy. How do you plan on reaching your customers?
• Current financial state. What do you currently earn in revenue?
• Projected financial state. What do you foresee earning in revenue?
• The ask. How much money are you asking for?
• The team. Who’s involved in the business?

2. Write a company description

This section of your business plan should answer two fundamental questions: 

• Who are you?
• What do you plan to do? 

Answering these questions with a company description provides an introduction to why you’re in business, why you’re different, what you have going for you, and why you’re a good investment. 

For example, clean makeup brand Saie shares a letter from its founder on the company’s mission and why it exists.

Clarifying these details is still a useful exercise, even if you’re the only person who’s going to see them. It’s an opportunity to put to paper some of the more intangible facets of your business, like your principles, ideals, and cultural philosophies.

Here are some of the components you should include in your company description:

• Your business structure (Are you a sole proprietorship, general partnership, limited partnership, or incorporated company?)
• Your business model
• Your industry
• Your business’s vision, mission, and value proposition
• Background information on your business or its history
• Business objectives, both short and long term
• Your team, including key personnel and their salaries

Brand values and goals

To define your brand values , think about all the people your company is accountable to, including owners, employees, suppliers, customers, and investors. Now consider how you’d like to conduct business with each of them. As you make a list, your core values should start to emerge.

Your company description should also include both short- and long-term goals. Short-term goals, generally, should be achievable within the next year, while one to five years is a good window for long-term goals. Make sure your goal setting includes SMART goals : specific, measurable, attainable, realistic, and time-bound.

Vision and mission statements

Once you know your values, you can write a mission statement . Your statement should explain, in a convincing manner, why your business exists, and should be no longer than a single sentence.

Next, craft your vision statement : What impact do you envision your business having on the world once you’ve achieved your vision? Phrase this impact as an assertion—begin the statement with “We will” and you’ll be off to a great start. Your vision statement, unlike your mission statement, can be longer than a single sentence, but try to keep it to three at most. The best vision statements are concise.

3. Perform a market analysis

Market analysis is a key section of your business plan, whether or not you ever intend for anyone else to read it.

No matter what type of business you start, whether a home-based business or service-based, it’s no exaggeration to say your market can make or break it. Choose the right market for your products—one with plenty of customers who understand and need your product—and you’ll have a head start on success. 

If you choose the wrong market, or the right market at the wrong time, you may find yourself struggling for each sale. Your market analysis should include an overview of how big you estimate the market is for your products, an analysis of your business’s position in the market, and an overview of the competitive landscape. Thorough research supporting your conclusions is important both to persuade investors and to validate your own assumptions as you work through your plan.

How big is your potential market?

The potential market is an estimate of how many people need your product. While it’s exciting to imagine sky-high sales figures, you’ll want to use as much relevant independent data as possible to validate your estimated potential market.

Since this can be a daunting process, here are some general tips to help you begin your research:

• Understand your ideal customer profile. Look for government data about the size of your target market , learn where they live, what social channels they use, and their shopping habits.
• Research relevant industry trends and trajectory. Explore consumer trends and product trends in your industry by looking at Google Trends, trade publications, and influencers in the space.
• Make informed guesses. You’ll never have perfect, complete information about your total addressable market. Your goal is to base your estimates on as many verifiable data points as necessary.

Some sources to consult for market data include government statistics offices, industry associations, academic research, and respected news outlets covering your industry.

Read more: What is a Marketing Analysis? 3 Steps Every Business Should Follow

SWOT analysis

A SWOT analysis looks at your strengths, weaknesses, opportunities, and threats. 

That involves asking questions like: 

• What are the best things about your company? 
• What are you not so good at? 
• What market or industry shifts can you take advantage of and turn into opportunities? 
• Are there external factors threatening your ability to succeed?

SWOT is often depicted in a grid or otherwise visual way. With this visual presentation, your reader can quickly see the factors that may impact your business and determine your competitive advantage in the market.

Competitive analysis

There are three overarching factors you can use to differentiate your business in the face of competition:

• Cost leadership. You have the capacity to maximize profits by offering lower prices than the majority of your competitors. Examples include companies like Mejuri and Endy .
• Differentiation. Your product or service offers something distinct from the current cost leaders in your industry and banks on standing out based on your uniqueness. Think of companies like Knix and QALO .
• Segmentation. You focus on a very specific, or niche, target market, and aim to build traction with a smaller audience before moving on to a broader market. Companies like TomboyX and Heyday Footwear are great examples of this strategy.

To understand which is the best fit, you’ll need to understand your business as well as the competitive landscape.

You’ll always have competition in the market, even with an innovative product, so it’s important to include a competitive overview in your business plan. If you’re entering an established market, include a list of a few companies you consider direct competitors and explain how you plan to differentiate your products and business from theirs.

For example, if you’re selling jewelry , your competitive differentiation could be that, unlike many high-end competitors, you donate a percentage of your profits to a notable charity or pass savings on to your customers.

If you’re entering a market where you can’t easily identify direct competitors, consider your indirect competitors—companies offering products that are substitutes for yours. For example, if you’re selling an innovative new piece of kitchen equipment, it’s too easy to say that because your product is new, you have no competition. Consider what your potential customers are doing to solve the same problems.

4. Outline the management and organization

The management and organization section of your business plan should tell readers about who’s running your company. Detail the legal structure of your business. Communicate whether you’ll incorporate your business as an S corporation or create a limited partnership or sole proprietorship.

If you have a management team, use an organizational chart to show your company’s internal structure, including the roles, responsibilities, and relationships between people in your chart. Communicate how each person will contribute to the success of your startup.

5. List your products and services

Your products or services will feature prominently in most areas of your business plan, but it’s important to provide a section that outlines key details about them for interested readers.

If you sell many items, you can include more general information on each of your product lines. If you only sell a few, provide additional information on each. 

For example, bag shop BAGGU sells a large selection of different types of bags, in addition to home goods and other accessories. Its business plan would list out those categories and key details about the products within each category.

Describe new products you’ll launch in the near future and any intellectual property you own. Express how they’ll improve profitability. It’s also important to note where products are coming from—handmade crafts are sourced differently than trending products for a dropshipping business, for instance.

6. Perform customer segmentation

Your ideal customer, also known as your target market, is the foundation of your marketing plan , if not your business plan as a whole. 

You’ll want to keep this buyer persona in mind as you make strategic decisions, which is why an overview of who they are is important to understand and include in your business plan.

To give a holistic overview of your ideal customer, describe a number of general and specific demographic characteristics. Customer segmentation often includes:

• Where they live
• Their age range
• Their level of education
• Some common behavior patterns
• How they spend their free time
• Where they work
• What technology they use
• How much they earn
• Where they’re commonly employed
• Their values, beliefs, or opinions

This information will vary based on what you’re selling, but you should be specific enough that it’s unquestionably clear who you’re trying to reach—and more importantly, why you’ve made the choices you have based on who your customers are and what they value.

For example, a college student has different interests, shopping habits, and pricing sensitivity than a 50-year-old executive at a Fortune 500 company. Your business plan and decisions would look very different based on which one was your ideal customer.

Put your customer data to work with Shopify’s customer segmentation

Shopify’s built-in segmentation tools help you discover insights about your customers, build segments as targeted as your marketing plans with filters based on your customers’ demographic and behavioral data, and drive sales with timely and personalized emails.

7. Define a marketing plan

Your marketing efforts are directly informed by your ideal customer. That’s why, as you outline your current decisions and future strategy, your marketing plan should keep a sharp focus on how your business idea is a fit for that ideal customer.

If you’re planning to invest heavily in Instagram marketing or TikTok ads , for example, it makes sense to include whether Instagram and TikTok are leading platforms for your audience. If the answer is no, that might be a sign to rethink your marketing plan.

Market your business with Shopify’s customer marketing tools

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Most marketing plans include information on four key subjects. How much detail you present on each will depend on both your business and your plan’s audience.

• Price: How much do your products cost, and why have you made that decision?
• Product: What are you selling and how do you differentiate it in the market?
• Promotion: How will you get your products in front of your ideal customer?
• Place: Where will you sell your products? On what channels and in which markets?

Promotion may be the bulk of your plan, since you can more readily dive into tactical details, but the other three areas should be covered at least briefly—each is an important strategic lever in your marketing mix.

8. Provide a logistics and operations plan

Logistics and operations are the workflows you’ll implement to make your business idea a reality. If you’re writing a business plan for your own planning purposes, this is still an important section to consider, even though you might not need to include the same level of detail as if you were seeking investment.

Cover all parts of your planned operations, including:

• Suppliers. Where do you get the raw materials you need for production, or where are your products produced?
• Production. Will you make, manufacture, wholesale , or dropship your products? How long does it take to produce your products and get them shipped to you? How will you handle a busy season or an unexpected spike in demand?
• Facilities. Where will you and any team members work? Do you plan to have a physical retail space? If yes, where?
• Equipment. What tools and technology do you require to be up and running? This includes everything from software to lightbulbs and everything in between.
• Shipping and fulfillment. Will you be handling all the fulfillment tasks in-house, or will you use a third-party fulfillment partner?
• Inventory. How much will you keep on hand, and where will it be stored? How will you ship it to partners if required, and how will you approach inventory management ?

This section should signal to your reader that you’ve got a solid understanding of your supply chain, with strong contingency plans in place to cover potential uncertainty. If your reader is you, it should give you a basis to make other important decisions, like how to price your products to cover your estimated costs, and at what point you anticipate breaking even on your initial spending.

9. Make a financial plan

No matter how great your idea is—and regardless of the effort, time, and money you invest—a business lives or dies based on its financial health. At the end of the day, people want to work with a business they expect to be viable for the foreseeable future.

The level of detail required in your financial plan will depend on your audience and goals, but typically you’ll want to include three major views of your financials: an income statement, a balance sheet, and a cash-flow statement. It also may be appropriate to include financial data and projections.

Here’s a spreadsheet template that includes everything you’ll need to create an income statement, balance sheet, and cash-flow statement, including some sample numbers. You can edit it to reflect projections if needed.

Let’s review the types of financial statements you’ll need.

Income statements

Your income statement is designed to give readers a look at your revenue sources and expenses over a given time period. With those two pieces of information, they can see the all-important bottom line or the profit or loss your business experienced during that time. If you haven’t launched your business yet, you can project future milestones of the same information.

Balance sheets

Your balance sheet offers a look at how much equity you have in your business. On one side, you list all your business assets (what you own), and on the other side, all your liabilities (what you owe). 

This provides a snapshot of your business’s shareholder equity, which is calculated as:

Assets - Liabilities = Equity

Cash flow statements

Your cash flow statement is similar to your income statement, with one important difference: it takes into account when revenues are collected and when expenses are paid.

When the cash you have coming in is greater than the cash you have going out, your cash flow is positive. When the opposite scenario is true, your cash flow is negative. Ideally, your cash flow statement will help you see when cash is low, when you might have a surplus, and where you might need to have a contingency plan to access funding to keep your business solvent .

It can be especially helpful to forecast your cash-flow statement to identify gaps or negative cash flow and adjust operations as required.

📚 Read more: Cash Flow Management: What It Is & How To Do It (+ Examples)

Why write a business plan?

Investors rely on business plans to evaluate the feasibility of a business before funding it, which is why business plans are commonly associated with getting a business loan. 

Business plans also help owners identify areas of weakness before launching, potentially avoiding costly mistakes down the road. “Laying out a business plan helped us identify the ’unknowns’ and made it easier to spot the gaps where we’d need help or, at the very least, to skill up ourselves,” says Jordan Barnett, owner of Kapow Meggings .

There are several other compelling reasons to consider writing a business plan, including:

• Strategic planning. Writing out your plan is an invaluable exercise for clarifying your ideas and can help you understand the scope of your business, as well as the amount of time, money, and resources you’ll need to get started.
• Evaluating ideas. If you’ve got multiple ideas in mind, a rough business plan for each can help you focus your time and energy on the ones with the highest chance of success.
• Research. To write a business plan, you’ll need to research your ideal customer and your competitors—information that will help you make more strategic decisions.
• Recruiting. Your business plan is one of the easiest ways to communicate your vision to potential new hires and can help build their confidence in the venture, especially if you’re in the early stages of growth.
• Partnerships. If you plan to collaborate with other brands , having a clear overview of your vision, your audience, and your business strategy will make it much easier for them to identify if your business is a good fit for theirs.
• Competitions. There are many business plan competitions offering prizes such as mentorships, grants, or investment capital. 

If you’re looking for a structured way to lay out your thoughts and ideas, and to share those ideas with people who can have a big impact on your success, making a business plan is an excellent starting point.

Business plan types

Business plan types can span from one page to multiple pages, with detailed graphs and reports. There’s no one right way to create a business plan. The goal is to convey the most important information about your company for readers.

Common business plans we see include, but are not limited to, the following types:

Traditional business plans

These are the most common business plans. Traditional business plans take longer to write and can be dozens of pages long. Venture capitalist firms and lenders ask for this plan. Traditional business plans may not be necessary if you don’t plan to seek outside funding. That’s where a lean business plan comes in.

Lean business plans

A lean business plan is a shorter version of a traditional business plan. It follows the same format, but only includes the most important information. Businesses use lean business plans to onboard new hires or modify existing plans for a specific target market. If you want to write a business plan purely for your own planning purposes when starting a new small business, a lean business plan is typically the way to go. 

Nonprofit business plans

A nonprofit business plan is for any entity that operates for public or social benefit. It covers everything you’ll find in a traditional business plan, plus a section describing the impact the company plans to make. For example, a speaker and headphone brand would communicate that they aim to help people with hearing disabilities. Donors often request this type of business plan.

📚 Read more: 7 Business Plan Examples to Inspire Your Own (2024)

7 tips for creating a small business plan

There are a few best practices when it comes to writing a business plan. While your plan will be unique to your business and goals, keep these tips in mind as you write.

1. Know your audience

When you know who will be reading your plan—even if you’re just writing it for yourself to clarify your ideas—you can tailor the language and level of detail to them. This can also help you make sure you’re including the most relevant information and figure out when to omit sections that aren’t as impactful.

2. Have a clear goal

When creating a business plan, you’ll need to put in more work and deliver a more thorough plan if your goal is to secure funding for your business, versus working through a plan for yourself or your team.

3. Invest time in research

Sections of your business plan will primarily be informed by your ideas and vision, but some of the most crucial information you’ll need requires research from independent sources. This is where you can invest time in understanding who you’re selling to, whether there’s demand for your products, and who else is selling similar products or services.

4. Keep it short and to the point

No matter who you’re writing for, your business plan should be short and readable—generally no longer than 15 to 20 pages. If you do have additional documents you think may be valuable to your audience and your goals, consider adding them as appendices.

5. Keep the tone, style, and voice consistent

This is best managed by having a single person write the plan or by allowing time for the plan to be properly edited before distributing it.

6. Use a business plan template

You can also use a free business plan template to provide a skeleton for writing a plan. These templates often guide you through each section—from financial projects to market research to mission statement—ensuring you don’t miss a step.

7. Try business plan software

Writing a business plan isn’t the easiest task for business owners. But it’s important for anyone starting or expanding a business. 

Fortunately, there are tools to help with everything from planning, drafting, creating graphics, syncing financial data, and more. Business plan software also has business plan templates and tutorials to help you finish a comprehensive plan in hours, rather than days.

A few curated picks include:

• LivePlan : the most affordable option with samples and templates
• Bizplan : tailored for startups seeking investment
• Go Small Biz : budget-friendly option with industry-specific templates

📚 Read more:  6 Best Business Plan Software Platforms (2024)

Common mistakes when writing a business plan

Other articles on business plans would never tell you what we’re about to tell you: Your business plan can fail. 

The last thing you want is for time and effort to go down the drain, so avoid these common mistakes:

• Bad business idea. Sometimes your idea may be too risky for potential investors or too expensive to run, or there’s no market. Aim for small business ideas that require low startup costs.
• No exit strategy. If you don’t show an exit strategy, or a plan for investors to leave the business with maximum profits, you’ll have little luck securing capital.
• Unbalanced teams. A great product is the cost of entry to starting a business. But an incredible team will take it to the top. Unfortunately, many business owners overlook a balanced team. They focus on potential profits, without worrying about how it will be done operationally. 
• Missing financial projections. Don’t forget your balance sheet, cash flow statements, P&L statements, and income statements. Include your break-even analysis and return-on-investment calculations in your financial projections to create a successful business plan.
• Spelling and grammar errors. All the best organizations have an editor review their documents. If someone spots typos while reading your business plan, sloppy errors like those can evoke a larger sense of distrust in your capabilities to run a successful company. It may seem minor, but legibility and error-free writing helps make a good impression on your business plan’s audience. 

Updating and revising a business plan

Business plans aren’t static documents. The business world moves fast and your plan will need to keep up. You don’t want it to get stale. 

Here’s a good rule of thumb for business plan revisions:

• Monthly: Update KPIs like sales, website traffic, and customer acquisition costs. Review your cash flow. Is your money situation as expected? Make the necessary changes.
• Quarterly : Are you hitting your targets? Be sure to update your financial performance, successful marketing campaigns, and any other recent milestones achieved.
• Yearly : Think of this as a big overhaul. Compare projections to actuals and update your forecasts. 

When updating your plan, don’t just go with your gut. Use data like surveys and website analytics to inform each update. Using outdated information will only lead to confusion and missed opportunities.

Remember not to just update one part of your plan—it’s all connected. Fortunately, with business plan software you can easily give your plan attention and help your business thrive. 

How to present a business plan

Here are some tips for presenting your business plan to stakeholders.

Understand your audience

Start by doing homework on who you’ll be presenting to. Are they investors, potential partners, or a bank? Each group will have different interests and expectations. 

Consider the following about your presentation audience:

• Background: What’s their professional experience?
• Knowledge level: How familiar are they with your industry?
• Interests: What aspects of your plan will excite them most?
• Concerns: What might make them hesitant about your idea?

Depending on who you’re presenting to, you can tweak your presentation accordingly. For example, if you’re presenting to a group of investors, you’d probably want to highlight financial projections and market analysis. 

Structure your presentation

Once you know your audience, you can organize your presentation. Think of this as the story you’ll tell listeners. A well-structured presentation helps listeners follow along and remember key points. 

Your opening should grab attention and give a snapshot of what’s to come. It’s kind of like an elevator pitch that gives an overview of your business idea. 

From there, break your presentation into clear sections:

• Problem: What issue are you solving?
• Solution: How does your business address this problem?
• Market: Who are your potential customers?
• Competition: Who else is in this space, and how are you different?
• Business model: How will you make money?
• Financial projections: What are your expected costs and revenues?
• Team: Who’s involved, and what makes them qualified?

Use visual aids to support your points. Graphs, charts, and even simple illustrations can make your information more digestible. Remember to practice your timing, too. A good presentation flows smoothly, giving each section the right amount of attention for its intended audience. 

Handle objections and questions

Facing objections or questions can be nerve-wracking, but it’s actually a great opportunity. It shows your listeners are engaged and thinking critically about your idea. The key is to be prepared and stay calm. 

Try to anticipate potential questions. Put yourself in the listener’s shoes: What would you want to know if you were them? Come up with clear answers to these questions ahead of time.

When handling questions:

• Listen carefully: Make sure you fully understand the question before answering.
• Stay positive: Even if the question seems critical, respond with enthusiasm.
• Be honest: If you don’t know something, it’s OK. Offer to find out and follow up. 

Use questions as a way to highlight the strengths of your business plan. If a question needs more thought or refresh, it’s perfectly fine to say, “That’s a great question. I’d love to look further into it and get back to you with a detailed answer.”

Handling questions well shows that you’re knowledgeable, thoughtful, and open to feedback—all things that will impress listeners and make them feel confident in your business plan. 

Prepare your business plan today

A business plan can help you identify clear, deliberate next steps for your business, even if you never plan to pitch investors—and it can help you see gaps in your plan before they become issues. 

Whether you’re working on starting a new online business idea , building a retail storefront, growing your established business, or purchasing an existing business , you now understand how to write a business plan that suits your business’s goals and needs.

Feature illustration by Rachel Tunstall

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Business plan FAQ

How do i write a business plan.

Learning how to write a business plan is simple if you use a business plan template or business plan software. Typically, a traditional business plan for every new business should have the following components:

• Executive summary
• Company description, including value proposition
• Market analysis and competitive analysis
• Management and organization
• Products and services
• Customer segmentation
• Marketing plan
• Logistics and operations
• Financial plan and financial projections

What is a good business plan?

A good business plan clearly communicates your company’s purpose, goals, and growth strategies. It starts with a strong executive summary, then adequately outlines idea feasibility, target market insights, and the competitive landscape. 

A business plan template can help businesses be sure to follow the typical format of traditional business plans, which also include financial projections, details about the management team, and other key elements that venture capital firms and potential investors want to see.

What are the 3 main purposes of a business plan?

The three main purposes of a business plan are: 

• To clarify your plans for growth
• To understand your financial needs
• To attract funding from investors or secure a business loan

What are the different types of business plans?

The types of business plans include startup, refocusing, internal, annual, strategic, feasibility, operations, growth, and scenario-based. Each type of business plan has a different purpose. Business plan formats include traditional, lean, and nonprofit. Find a business plan template for the type of plan you want to write.

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How to Develop a Positioning Statement for Your Business

4 min. read

Updated May 10, 2024

Positioning is the essence of marketing strategy, and some would say of all business strategy.

It’s about how your business is different from the others. It’s about what your business does for people that other businesses don’t do.

• The positioning statement template

I’m not sure where this classic positioning statement template started, or whom to credit, but I’ve found it very useful for years of developing business plans.

“For [target market description] who [target market need], [how our business offering meets the need]. Unlike [key competition], it [most distinguishing feature].”

Here’s an example of that template in action for a social media consulting service, with the components separated:

“For [small business owners who want social media marketing but don’t have time to do it themselves], our social media services [do it for them without taking their time and effort]. Unlike [most social media consulting], [we don’t just advise; we do the work].”

Another example for a healthy fast food restaurant:

“For [busy people who want healthy foods but need fast meals], [we offer organic healthy fast foods]. Unlike [most fast foods offerings], we [offer fresh local ingredients, organic, grilled not fried, with a lot of vegetables and vegetarian options, and free-range meats].”

The examples show how the positioning statement sets the business and its offering apart from others. It implies strategic focus and a strategic match between target market, market need, and business offering. It’s a great tool to help you view your own business strategically, and to explain your strategy to outsiders when necessary.

• Positioning diagrams

I also like to explain positioning graphically with diagrams, like this simple one from Philip Kotler’s iconic textbook, “Marketing Management,” that shows positioning related to breakfast:

The diagram illustrates simple positioning related to breakfast. Breakfast can be slow or quick, and expensive or inexpensive. Pancakes might compete with hot cereal for slow and inexpensive, but bacon and eggs are different because they are slow and expensive. The instant breakfast doesn’t compete with bacon and eggs. That’s positioning.

To do your own positioning diagram, start with creative thinking about how you can divide your market in terms of variables that make strategic sense. In the example below I decided to organize the automobile market according to two factors: economical versus expensive, and practical versus fun. If I were looking to position specific cars with this, I’d put a luxury SUV on one extreme as practical and expensive; and a Mini-Cooper on another, as economical but fun.

I hope you can see how this kind of positioning diagram can lead to strategic thinking. What kinds of cars compete against the Mini-Cooper? What kinds of cars compete in the luxury SUV area? I hope you can also see how the positioning will help set marketing strategy, marketing messaging, and so forth.

We could take this diagram and develop a formal positioning statement for the Mini-Cooper:

For people who like fun-to-drive sporty cars but can’t afford to spend what a Porsche costs, the Mini-Cooper S offers a small car with great cornering and good acceleration that costs only about $30,000.

You may notice that the positioning diagram example here is a lot like the competitive matrix that appears in many business plans. That similarity is not an accident. The competitive matrix that appears in many plans and pitches is a direct descendent of the positioning diagram that Philip Kotler first popularized in the 1970s and 1980s.

What I wrote in an earlier discussion of the competitive matrix also applies here, with positioning:

“Don’t, please, discount [this] as an internal tool to help with strategy development and specifics of designing products. For this use, you don’t worry about showing how what you have is better; you use it to look for holes in the market, and needs that aren’t covered, so you can lead product development toward solutions that are better business opportunities.”

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• Place it in your plan where it achieves your goal

So which do you include in your business plan: competitive matrix, positioning statement, positioning diagram, or two or even three of these components? As with so many elements of a good business plan, this depends on the exact goal of your plan and the nature of your business.

If your plan is to serve as background information for raising angel investment, then you’ll need a pitch deck ; and either your positioning diagram or your competitive matrix will be one slide in the deck. Don’t give your investors both.

If you use the more trendy competitive matrix, include it in the part of the presentation that you’re using to explain and develop your product, product positioning, or marketing. Put it close to your relevant information, and be flexible, because the flow of a pitch depends on the specifics. If you use the more traditional positioning diagram, keep it close to strategy or marketing strategy.

Within the plan itself, in that case, include the formal verbal positioning statement as part of marketing strategy. Done right, it’s concise and communicates strategy very well. Set it aside as a “positioning statement.” That specific phrase will be meaningful to people who have studied marketing.

If you’re doing a lean business plan, use the positioning statement and the positioning diagram to help with strategy development. It fits into strategy or tactics, and concrete specific actions to react to your competitive positioning could easily be milestones.

Tim Berry is the founder and chairman of Palo Alto Software , a co-founder of Borland International, and a recognized expert in business planning. He has an MBA from Stanford and degrees with honors from the University of Oregon and the University of Notre Dame. Today, Tim dedicates most of his time to blogging, teaching and evangelizing for business planning.

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The Money blog is your place for consumer and personal finance news and tips. Today's posts include NatWest launching the cheapest mortgage on the market, an old Liam Gallagher tweet about ticket pricing and our latest Bring It Back feature - as McVitie's tells us Trio could return.

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Female founders have been dealt a "blow" after Innovate UK delivered just half the number of grants pledged in a funding competition for women business owners.

The Women in Innovation programme was aimed at encouraging women leading small to medium-sized businesses to apply for grants of up to £75,000 each.

The government-backed agency said it would be offering the grants to 50 female founders when it launched the competition earlier this year - but subsequently changed the wording to say "up to 50". 

Only 25 ended up being chosen to receive funding, out of 1,452 applicants.

Dearbump and Femtech founder Emma Jarvis said in a LinkedIn post that the situation will have left many female entrepreneurs "pretty disheartened"

The post  has been shared more than 100 times and has garnered nearly 830 reactions.

"Innovate UK's decision is a blow not just to existing female founders but future ones," Ms Jarvis said. "It's really disappointing to hear that the number of awards was cut in half and that the wording was changed after the results were announced."

She said the "only way forward" was for Innovate UK to honour its original commitment of 50 awards.

Meanwhile, Patricia McGirr, Repossession Rescue founder , said female founders "deserve more than lip service". 

She said Innovate UK's decision "isn't just trimming fat, it's cutting opportunity and ambition".

"This broken promise to the women fuelling our future is a step backward for innovation and a slap in the face to countless women who dare to lead."

And Debbie Porter, managing director at Destination Digital Marketing , said the move was "hard to believe".

"Innovate UK ought to go back over those 1,427 other applications as a matter of priority to fix this situation," she said. 

In a statement to the Money blog, Innovate UK apologised and said its decision was a "mistake". It also said it would honour its original commitment to award 50 applicants with funding.

The added: "We recognise the impact this has had on the many applicants and on the community as a whole, and we apologise wholeheartedly.

"We confirm we will be funding a total of 50 awards."

Our Money blog reporter Jess Sharp spoke to women who are  leading figures in their respective fields for our eight-part Women in Business series earlier this year. You can read some of their stories here...

Chancellor Rachel Reeves has refused to rule out heavier taxation on pensions in the October budget. 

"I'm not going to speculate on what will be in the budget, but I'm absolutely determined to ensure that working people are better off," she told MPs in the House of Commons. 

"This budget will be a budget to fix the foundations of the economy after the mess left by the previous government."

How could your pension be taxed further? Let's have a look at some of the possibilities...

Leading left-wing thinktank The Fabian Society said the government could raise at least £10bn a year by reducing pension tax relief for high earners. 

At the moment, pension tax relief depends on an individual's tax band. 

But Ms Reeves could create a single flat rate of tax relief for all tax bands, the society said.

"First, the rate of income tax relief should be equalised for people on all tax bands - for example at 30% of gross earnings, midway between the 20p and 40p rates of tax," the thinktank said in a report. 

Ms Reeves could also reduce the maximum tax-free lump sum  you can get on retirement from £268,275 to £100,000 or 25% of pension wealth. 

"The Institute for Fiscal Studies estimates that this might eventually save over £2bn per year, which would be targeted entirely at people with high lifetime earnings or assets," the report added. 

Another suggestion was to charge national insurance on private pension incomes . 

The organisation said it would lead to today's affluent pensioners making a higher tax contribution.

Other possibilities could be to levy income tax on all inherited pensions. 

It said pension pots could also be liable to inheritance tax in the same way as other assets. 

What else did the chancellor say today?

Away from refusing to rule out pension tax changes, Ms Reeves also confirmed a cap on corporation tax.

Speaking during Treasury questions, she said the tax would be capped at its current level of 25% to "give business the confidence to grow". 

Corporation tax applies to the annual profits of UK resident companies and branches of overseas companies.

The 25% main rate is payable by companies with taxable profits above £250,000.

A small profits rate applies for companies with profits of £50,000 or below, meaning they will pay 19%.

Up until April 2023, the previous corporation tax main rate was 19%.

After the revival of popular Cadbury's chocolate bar Top Deck earlier this year, we asked you which discontinued treat you would like to see brought back - and we got so many responses that we've decided to make a weekly feature of it called  Bring It Back . 

Every Tuesday, we'll pick one from our comments box and look at why it was so beloved and, crucially, find out whether the companies in question might consider reintroducing them.

This week we're looking at a chocolate bar that became a staple of lunch boxes in the 1980s and '90s - and spawned a TV advert that is among the most fondly remembered of the era: McVitie's Trio.

Sold in multipacks of six, each bar included three segments made up of a caramel layer over biscuit, all covered with milk chocolate.

The product became synonymous with a memorable commercial that featured an animation by artist Bob Godfrey and a play on the traditional Jamaican folk song "Day-O (The Banana Boat Song)".

Its lyrics, which will be familiar to almost anyone who grew up in the 1980s, included the bar's tagline: "I want a Trio and I want one now."

Having discontinued the product in 2003, it briefly returned to shop shelves in 2016 following a Facebook campaign, before vanishing from sale again shortly after.

Hordes of Sky News readers have called for the chocolate bar's revival.

Kellie said: "I'd love to have Trios back! They were yummy. McVitie's really need to start selling them again."

Derek told us: "What a chocolate bar the Trio was! I could eat an entire multipack in one sitting now if given the chance. And that old advert... instantly transported back to childhood just thinking about it."

Samantha said: "I can hear the jingle in my head now! Trios were just delicious chocolate bars... and we want one now!"

When asked by Sky News, a McVitie's spokesperson conspicuously declined to rule out a return for the iconic chocolate treat, saying the company was "constantly listening to what audiences want".

"This helps us to keep innovating and adapting to changing tastes, meaning more biscuits and snacks you love for generations to come," they said.

"For those who miss the caramel taste of Trio, one of our newest and most exciting innovations, McVitie's Gold Billions Wafer, will be your new favourite for on-the-go chocolate moments."

And, tantalisingly for fans of the bar, they added: "Watch this space for more to come..."

Along with the legions of Trio diehards, the Money blog will certainly be doing that - and hope to bring you news of further developments in the crusade in the near future.

Got a craving for any of the products below? Click the links to find out if they've got any chance at making a comeback... 

NatWest has launched the cheapest five-year fixed mortgage deal on the market. 

The 3.71% rate comes with a £1,495 product fee and is available to customers who have a 40% deposit. 

Other lenders have also announced cuts this week, including Barclays and Halifax. 

Yesterday, Barclays reduced its five-year fixed 60% LTV remortgage deal from 4.06% to 3.93%. 

It also announced cuts across its purchase product range, with a five-year fixed 75% LTV deal coming with a 3.95% rate and a £899 product fee. 

Halifax also launched a 3.81% five-year deal to new borrowers yesterday. 

Brokers have welcomed the cuts as "hugely positive" news, and suggested more lenders could follow suit. 

"NatWest's latest rate cut is another clear signal that mortgage lenders are pulling out all the stops to reignite the housing market," Ranald Mitchell, director of Charwin Mortgages, told Newspage.

"This flurry of rate reductions is a positive step towards finding that sweet spot where consumer confidence rebounds, and the property market gets back on track. 

"It's an exciting time for potential buyers, affordability is improving, and the window of opportunity is wide open." 

Justin Moy, the managing director at EHF Mortgages, said: "Lenders are looking to grab some market share by the end of the year.

"Other lenders will likely want to make a similar move over the coming days to remain competitive." 

By James Sillars , business reporter

It's a fairly muted start to the day's trading, again, on financial markets.

The FTSE 100 has opened 10 points higher at 8,373.

Rolls-Royce, the civil aerospace-to-defence firm (not to be confused with the luxury motor car manufacturer), is leading the gainers.

Its shares rallied by 4% early this morning after a 6.5% decline the previous day.

That tumbled was in reaction to the apparent mid-air failure of one of its engines on a Cathay Pacific flight .

Analysts said that the share price recovery was down to an update from  the airline that the fleet affected should be back to full operation by the weekend.

A tweet Liam Gallagher wrote seven years ago criticising the eye-watering price of gig tickets has come back to haunt him.

His message, written in September 2017 about his older brother Noel, who was touring America with his band High Flying Birds at the time, read: "350 dollars to go and see rkid in USA what a c*** when will it all stop as you were LG x"

The tweet has resurfaced after dynamic pricing for Oasis's much-hyped reunion next year left fans - many of whom had spent hours queueing online - stunned after some standard tickets more than doubled in price from £148 to £355 on Ticketmaster due to demand.

X users pointed out the irony upon seeing the 2017 tweet, posting comments including, "Well this is evergreen", "What's your excuse for charging over 368 quid then?" and "Not ageing well, Liam".

Tap here to follow the Daily podcast - 20 minutes on the biggest stories every day

Using a phrase Liam adopts in his own social media comments, another fan wrote simply "BIBLICAL".

Hundreds of people have complained to the Advertising Standards Authority (ASA) over "misleading claims about availability and pricing".

In response, Sir Keir Starmer has said the government will get a "grip" on the issue of surge pricing, with Culture Secretary Lisa Nandy promising a consultation over the transparency and use of dynamic pricing, and the technology around queuing systems, to ensure fans don't get ripped off.

Yesterday we revealed that official reseller Twickets had lowered its fees after criticism from Oasis fans.

Scroll through today's Money blog for: Cheapest dates to go on holiday this year (6.42 post); how do you get free school meals (7.58 post); pay-per-mile tax proposed (7.38 post)

Basically, free school meals are aimed at making sure the country's more vulnerable youngsters don't go hungry while they're learning in their earlier years.

Children of certain ages automatically qualify without having to apply, but the rules differ across the four nations.

Children whose parents claim certain benefits or asylum support may also be eligible - though an application may be needed.

Free school meals without having to apply

In England, outside of London , all state school children in reception to year two automatically qualify for infant free school meals, while in the capital , all state primary school children up to age 11 qualify for the benefit in the 2024-25 academic year.

In Scotland , all state school children up to primary five (around four to nine years old) get the meals automatically. There are plans for this to be extended to pupils in receipt of the Scottish child payment in primary six and seven from February.

In Wales  all primary school children in state schools can get free meals from September.

Families who claim benefits

If your child falls outside the eligibility criteria for automatic free school meals, they'll still be able to benefit in certain circumstances.

Wherever you are in the UK, your child may be able to get free school meals if you get one or more of the following:

• Income support
• Universal credit
• Income-based jobseeker's allowance
• Income-related employment and support allowance
• Support under part six of the Immigration and Asylum Act 1999
• The guaranteed element of pension credit
• Child tax credit
• Working tax credit (Scotland and Northern Ireland)
• Working tax credit run-on England and Wales) – paid for four weeks after you stop qualifying for working tax credit

There's some specific criteria for families by devolved nation, which we'll break down below...

England and Wales

If you're claiming universal credit, your net household income must be less than £7,400 after tax, and not including any benefits.

Those receiving child tax credit must not also be entitled to working tax credit and must have an annual income of less than £16,190.

If you're classed as having no recourse to public funds - a type of condition placed on temporary visas in the UK - and the parents are able to work, they must have a household income of no more than:

• £22,700 for families outside of London with one child
• £26,300 for families outside of London with two or more children
• £31,200 for families within London with one child
• £34,800 for families within London with two or more children

People claiming universal credit in Scotland must have a household monthly income of no more than £796 (£9,552 per year) to qualify for free school meals. 

Families on child tax credit, but not working tax credit, can get the meals if they earn less than £19,995. For those on both benefits, their income must be no more than £9,552.

Northern Ireland

You may be able to claim free school meals in Northern Ireland if you receive universal credit and your post-tax earnings are £15,000 or less per year.

If you get child tax credit or working tax credit, you can still get free school meals on an annual income of up to £16,190.

How can I claim the meals?

In England, Wales and Scotland, you apply to your local council.

The UK government website has a local authority postcode checker here , which directs you to the council running services in your area. There are similar tools on the Scottish and Welsh government websites.

In Northern Ireland, you can use this form to apply directly to the government.

How many children are eligible - and how much does it cost? 

According to the latest data from the Department for Education, 2.1 million pupils were eligible for free school meals in the 2023-24 academic year - 24.6% of pupils. This was a rise from 23.8% the year before.

According to the London mayor's office, it's estimated that school meals cost £13.25 per week - or £2.65 meal - on average.

It says its free school meals offer for all state-educated primary school children in the capital saves parents around £500 per year.

According to a 2023 report from the IFS, the current system of free school meals in England – both means-tested and universal provision – costs the government around £1.4bn a year.

But separate research from the Food Foundation found that expanding free school meal eligibility to all primary school students could generate around £41bn in direct benefits to students and a further £58bn to the wider economy over 20 years.

Read other entries in our Basically series.. .

Tax receipts from petrol and diesel duty bring in £25bn for the Treasury each year - and questions have been raised about what happens as more drivers go electric.

Today, the public transport charity Campaign for Better Transport (CBT) is proposing that drivers of zero-emission vehicles (ZEVs), such as electric cars, should be charged based on how far they travel.

They are asking Chancellor Rachel Reeves to impose the pay-per-mile scheme, saying it's the solution to a "black hole" that will be created by the loss of fuel duty.

The scheme would not apply to drivers of traditionally fuelled cars.

Under the plan, drivers with a ZEV before the implementation date would be exempt, incentivising the switch to electric vehicles.

Previous governments have found the prospect of introducing per-mile charges - known as road pricing - to be too politically toxic.

But CBT claims it would have public support.

Let us know your thoughts in the comments box - and read more on this story here ...

Summer may be edging towards the rear-view mirror, but that doesn't mean Britons are turning their back on sunshine. 

With many looking to sort an autumn holiday, Expedia has taken a look at the best times to fly and book hotels - with savings of up to £120 if you are savvy. 

Its data is based on average daily rates for lodging and flight prices between 22 September and 21 December this year.

When to book flights for

• Cheapest : 22, 23 or 24 September
• Least busy : 10 or 17 December
• Most expensive : 19, 20 or 21 December
• Busiest : 20 and 21 October

"For the best deals, travellers should look to book their flights 14 to 20 days before travel, saving them on average £120 compared to booking 91 days or more out, or saving £60 compared to booking 60-90 days out," Expedia says. 

"Target the 22-29 September for travel, when average ticket prices (ATPs) for flights are shaping up to be nearly £100 cheaper than the autumn average, and £50 cheaper than summer ATPs."

When to  book a hotel

• Cheapest : 20 November or 11 December
• Most expensive : 14 or 21 October
• Busiest : 23 October or 25 September

"For hotel stays, target the 3-9 November, when average daily rates are £15 cheaper per night than the seasonal average and summer stays," Expedia says. 

The holiday booking site says the most popular autumn destinations have remained largely the same as last year based on the largest number of hotel searches...

• New York, USA
• Paris, France
• Edinburgh, Scotland
• Amsterdam, Netherlands
• Manchester, UK
• Tenerife, Spain
• Birmingham, UK
• Rome, Italy

Despite this, Expedia says savvy Britons are searching out "under the radar" getaway spots.

"Flight searches have surged for Brits looking to discover new, under-the-radar European cities this autumn, such as Tirana (+95%) in Albania and Bucharest (+70%) in Romania, as Brits look to stretch their budgets further by looking outside the popular city break hotspots."

The top 10 destinations with the biggest search increases are:

• Saint Malo, France
• Didim, Turkey
• Syracuse, Italy
• Beijing, China 
• Palermo, Italy
• Tromso, Norway 
• Brescia, Italy 
• Poznan, Poland
• Tangier, Morocco
• Ischia, Italy

The Money blog will return shortly - meantime, why not scroll through some of our best and most popular features below...

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