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What Is a Business Plan?

Understanding business plans, how to write a business plan, common elements of a business plan, the bottom line, business plan: what it is, what's included, and how to write one.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

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

Key Takeaways

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

Investopedia / Ryan Oakley

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

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

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

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

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

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

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

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

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

Common elements in many business plans include:

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

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

2 Types of Business Plans

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

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

Why Do Business Plans Fail?

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

How Often Should a Business Plan Be Updated?

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

What Does a Lean Startup Business Plan Include?

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

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

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

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

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

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

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

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

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

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Business Plan Example and Template

Learn how to create a business plan

What is a Business Plan?

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

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

Contents of a Business Plan

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

1. Title Page

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

2. Executive Summary

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

3. Industry Overview

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

4. Market Analysis and Competition

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

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

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

5. Sales and Marketing Plan

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

6. Management Plan

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

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

7. Operating Plan

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

8. Financial Plan

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

9. Appendices and Exhibits

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

Business Plan Template

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

Section 1: Executive Summary

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

Section 2: Industry Overview

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

Section 3: Market Analysis and Competition

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

Section 4: Sales and Marketing Plan

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

Section 5: Management Plan

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

Section 6: Operating Plan

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

Section 7: Financial Plan

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

Section 8: Appendices and Exhibits

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

Related Readings

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

• Corporate Structure
• Three Financial Statements
• Business Model Canvas Examples
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What is a Business Plan? Definition, Tips, and Templates

Published: June 28, 2024

Years ago, I had an idea to launch a line of region-specific board games. I knew there was a market for games that celebrated local culture and heritage. I was so excited about the concept and couldn't wait to get started.

But my idea never took off. Why? Because I didn‘t have a plan. I lacked direction, missed opportunities, and ultimately, the venture never got off the ground.

And that’s exactly why a business plan is important. It cements your vision, gives you clarity, and outlines your next step.

In this post, I‘ll explain what a business plan is, the reasons why you’d need one, identify different types of business plans, and what you should include in yours.

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What is a business plan?

What is a business plan used for.

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Purposes of a Business Plan

What does a business plan need to include, types of business plans.

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A business plan is a comprehensive document that outlines a company's goals, strategies, and financial projections. It provides a detailed description of the business, including its products or services, target market, competitive landscape, and marketing and sales strategies. The plan also includes a financial section that forecasts revenue, expenses, and cash flow, as well as a funding request if the business is seeking investment.

The business plan is an undeniably critical component to getting any company off the ground. It's key to securing financing, documenting your business model, outlining your financial projections, and turning that nugget of a business idea into a reality.

The purpose of a business plan is three-fold: It summarizes the organization’s strategy in order to execute it long term, secures financing from investors, and helps forecast future business demands.

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Table of Contents

How to make a business plan

How to make a good business plan: step-by-step guide.

A business plan is a strategic roadmap used to navigate the challenging journey of entrepreneurship. It's the foundation upon which you build a successful business.

A well-crafted business plan can help you define your vision, clarify your goals, and identify potential problems before they arise.

But where do you start? How do you create a business plan that sets you up for success?

This article will explore the step-by-step process of creating a comprehensive business plan.

What is a business plan?

A business plan is a formal document that outlines a business's objectives, strategies, and operational procedures. It typically includes the following information about a company:

Products or services

Target market

Competitors

Marketing and sales strategies

Financial plan

Management team

A business plan serves as a roadmap for a company's success and provides a blueprint for its growth and development. It helps entrepreneurs and business owners organize their ideas, evaluate the feasibility, and identify potential challenges and opportunities.

As well as serving as a guide for business owners, a business plan can attract investors and secure funding. It demonstrates the company's understanding of the market, its ability to generate revenue and profits, and its strategy for managing risks and achieving success.

Business plan vs. business model canvas

A business plan may seem similar to a business model canvas, but each document serves a different purpose.

A business model canvas is a high-level overview that helps entrepreneurs and business owners quickly test and iterate their ideas. It is often a one-page document that briefly outlines the following:

Key partnerships

Key activities

Key propositions

Customer relationships

Customer segments

Key resources

Cost structure

Revenue streams

On the other hand, a Business Plan Template provides a more in-depth analysis of a company's strategy and operations. It is typically a lengthy document and requires significant time and effort to develop.

A business model shouldn’t replace a business plan, and vice versa. Business owners should lay the foundations and visually capture the most important information with a Business Model Canvas Template . Because this is a fast and efficient way to communicate a business idea, a business model canvas is a good starting point before developing a more comprehensive business plan.

A business plan can aim to secure funding from investors or lenders, while a business model canvas communicates a business idea to potential customers or partners.

Why is a business plan important?

A business plan is crucial for any entrepreneur or business owner wanting to increase their chances of success.

Here are some of the many benefits of having a thorough business plan.

Helps to define the business goals and objectives

A business plan encourages you to think critically about your goals and objectives. Doing so lets you clearly understand what you want to achieve and how you plan to get there.

A well-defined set of goals, objectives, and key results also provides a sense of direction and purpose, which helps keep business owners focused and motivated.

Guides decision-making

A business plan requires you to consider different scenarios and potential problems that may arise in your business. This awareness allows you to devise strategies to deal with these issues and avoid pitfalls.

With a clear plan, entrepreneurs can make informed decisions aligning with their overall business goals and objectives. This helps reduce the risk of making costly mistakes and ensures they make decisions with long-term success in mind.

Attracts investors and secures funding

Investors and lenders often require a business plan before considering investing in your business. A document that outlines the company's goals, objectives, and financial forecasts can help instill confidence in potential investors and lenders.

A well-written business plan demonstrates that you have thoroughly thought through your business idea and have a solid plan for success.

Identifies potential challenges and risks

A business plan requires entrepreneurs to consider potential challenges and risks that could impact their business. For example:

Is there enough demand for my product or service?

Will I have enough capital to start my business?

Is the market oversaturated with too many competitors?

What will happen if my marketing strategy is ineffective?

By identifying these potential challenges, entrepreneurs can develop strategies to mitigate risks and overcome challenges. This can reduce the likelihood of costly mistakes and ensure the business is well-positioned to take on any challenges.

Provides a basis for measuring success

A business plan serves as a framework for measuring success by providing clear goals and financial projections . Entrepreneurs can regularly refer to the original business plan as a benchmark to measure progress. By comparing the current business position to initial forecasts, business owners can answer questions such as:

Are we where we want to be at this point?

Did we achieve our goals?

If not, why not, and what do we need to do?

After assessing whether the business is meeting its objectives or falling short, business owners can adjust their strategies as needed.

How to make a business plan step by step

The steps below will guide you through the process of creating a business plan and what key components you need to include.

1. Create an executive summary

Start with a brief overview of your entire plan. The executive summary should cover your business plan's main points and key takeaways.

Keep your executive summary concise and clear with the Executive Summary Template . The simple design helps readers understand the crux of your business plan without reading the entire document.

2. Write your company description

Provide a detailed explanation of your company. Include information on what your company does, the mission statement, and your vision for the future.

Provide additional background information on the history of your company, the founders, and any notable achievements or milestones.

3. Conduct a market analysis

Conduct an in-depth analysis of your industry, competitors, and target market. This is best done with a SWOT analysis to identify your strengths, weaknesses, opportunities, and threats. Next, identify your target market's needs, demographics, and behaviors.

Use the Competitive Analysis Template to brainstorm answers to simple questions like:

What does the current market look like?

Who are your competitors?

What are they offering?

What will give you a competitive advantage?

Who is your target market?

What are they looking for and why?

How will your product or service satisfy a need?

These questions should give you valuable insights into the current market and where your business stands.

4. Describe your products and services

Provide detailed information about your products and services. This includes pricing information, product features, and any unique selling points.

Use the Product/Market Fit Template to explain how your products meet the needs of your target market. Describe what sets them apart from the competition.

5. Design a marketing and sales strategy

Outline how you plan to promote and sell your products. Your marketing strategy and sales strategy should include information about your:

Pricing strategy

Advertising and promotional tactics

Sales channels

The Go to Market Strategy Template is a great way to visually map how you plan to launch your product or service in a new or existing market.

6. Determine budget and financial projections

Document detailed information on your business’ finances. Describe the current financial position of the company and how you expect the finances to play out.

Some details to include in this section are:

Startup costs

Revenue projections

Profit and loss statement

Funding you have received or plan to receive

Strategy for raising funds

7. Set the organization and management structure

Define how your company is structured and who will be responsible for each aspect of the business. Use the Business Organizational Chart Template to visually map the company’s teams, roles, and hierarchy.

As well as the organization and management structure, discuss the legal structure of your business. Clarify whether your business is a corporation, partnership, sole proprietorship, or LLC.

8. Make an action plan

At this point in your business plan, you’ve described what you’re aiming for. But how are you going to get there? The Action Plan Template describes the following steps to move your business plan forward. Outline the next steps you plan to take to bring your business plan to fruition.

Types of business plans

Several types of business plans cater to different purposes and stages of a company's lifecycle. Here are some of the most common types of business plans.

Startup business plan

A startup business plan is typically an entrepreneur's first business plan. This document helps entrepreneurs articulate their business idea when starting a new business.

Not sure how to make a business plan for a startup? It’s pretty similar to a regular business plan, except the primary purpose of a startup business plan is to convince investors to provide funding for the business. A startup business plan also outlines the potential target market, product/service offering, marketing plan, and financial projections.

Strategic business plan

A strategic business plan is a long-term plan that outlines a company's overall strategy, objectives, and tactics. This type of strategic plan focuses on the big picture and helps business owners set goals and priorities and measure progress.

The primary purpose of a strategic business plan is to provide direction and guidance to the company's management team and stakeholders. The plan typically covers a period of three to five years.

Operational business plan

An operational business plan is a detailed document that outlines the day-to-day operations of a business. It focuses on the specific activities and processes required to run the business, such as:

Organizational structure

Staffing plan

Production plan

Quality control

Inventory management

Supply chain

The primary purpose of an operational business plan is to ensure that the business runs efficiently and effectively. It helps business owners manage their resources, track their performance, and identify areas for improvement.

Growth-business plan

A growth-business plan is a strategic plan that outlines how a company plans to expand its business. It helps business owners identify new market opportunities and increase revenue and profitability. The primary purpose of a growth-business plan is to provide a roadmap for the company's expansion and growth.

The 3 Horizons of Growth Template is a great tool to identify new areas of growth. This framework categorizes growth opportunities into three categories: Horizon 1 (core business), Horizon 2 (emerging business), and Horizon 3 (potential business).

One-page business plan

A one-page business plan is a condensed version of a full business plan that focuses on the most critical aspects of a business. It’s a great tool for entrepreneurs who want to quickly communicate their business idea to potential investors, partners, or employees.

A one-page business plan typically includes sections such as business concept, value proposition, revenue streams, and cost structure.

Best practices for how to make a good business plan

Here are some additional tips for creating a business plan:

Use a template

A template can help you organize your thoughts and effectively communicate your business ideas and strategies. Starting with a template can also save you time and effort when formatting your plan.

Miro’s extensive library of customizable templates includes all the necessary sections for a comprehensive business plan. With our templates, you can confidently present your business plans to stakeholders and investors.

Be practical

Avoid overestimating revenue projections or underestimating expenses. Your business plan should be grounded in practical realities like your budget, resources, and capabilities.

Be specific

Provide as much detail as possible in your business plan. A specific plan is easier to execute because it provides clear guidance on what needs to be done and how. Without specific details, your plan may be too broad or vague, making it difficult to know where to start or how to measure success.

Be thorough with your research

Conduct thorough research to fully understand the market, your competitors, and your target audience . By conducting thorough research, you can identify potential risks and challenges your business may face and develop strategies to mitigate them.

Get input from others

It can be easy to become overly focused on your vision and ideas, leading to tunnel vision and a lack of objectivity. By seeking input from others, you can identify potential opportunities you may have overlooked.

Review and revise regularly

A business plan is a living document. You should update it regularly to reflect market, industry, and business changes. Set aside time for regular reviews and revisions to ensure your plan remains relevant and effective.

Create a winning business plan to chart your path to success

Starting or growing a business can be challenging, but it doesn't have to be. Whether you're a seasoned entrepreneur or just starting, a well-written business plan can make or break your business’ success.

The purpose of a business plan is more than just to secure funding and attract investors. It also serves as a roadmap for achieving your business goals and realizing your vision. With the right mindset, tools, and strategies, you can develop a visually appealing, persuasive business plan.

Ready to make an effective business plan that works for you? Check out our library of ready-made strategy and planning templates and chart your path to success.

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What Is a Business Plan? Definition and Planning Essentials Explained

Posted august 1, 2024 by kody wirth.

What is a business plan? It’s the roadmap for your business. The outline of your goals, objectives, and the steps you’ll take to get there. It describes the structure of your organization, how it operates, as well as the financial expectations and actual performance. 

A business plan can help you explore ideas, successfully start a business, manage operations, and pursue growth. In short, a business plan is a lot of different things. It’s more than just a stack of paper and can be one of your most effective tools as a business owner. 

Let’s explore the basics of business planning, the structure of a traditional plan, your planning options, and how you can use your plan to succeed. 

What is a business plan?

A business plan is a document that explains how your business operates. It summarizes your business structure, objectives, milestones, and financial performance. Again, it’s a guide that helps you, and anyone else, better understand how your business will succeed.  

Why do you need a business plan?

The primary purpose of a business plan is to help you understand the direction of your business and the steps it will take to get there. Having a solid business plan can help you grow up to 30% faster , and according to our own 2021 Small Business research working on a business plan increases confidence regarding business health—even in the midst of a crisis. 

These benefits are directly connected to how writing a business plan makes you more informed and better prepares you for entrepreneurship. It helps you reduce risk and avoid pursuing potentially poor ideas. You’ll also be able to more easily uncover your business’s potential. 

The biggest mistake you can make is not writing a business plan, and the second is never updating it. By regularly reviewing your plan, you can understand what parts of your strategy are working and those that are not.

That just scratches the surface of why having a plan is valuable. Check out our full write-up for fifteen more reasons why you need a business plan .  

What can you do with your plan?

So what can you do with a business plan once you’ve created it? It can be all too easy to write a plan and just let it be. Here are just a few ways you can leverage your plan to benefit your business.

Test an idea

Writing a plan isn’t just for those who are ready to start a business. It’s just as valuable for those who have an idea and want to determine whether it’s actually possible. By writing a plan to explore the validity of an idea, you are working through the process of understanding what it would take to be successful. 

Market and competitive research alone can tell you a lot about your idea. 

• Is the marketplace too crowded?
• Is the solution you have in mind not really needed? 

Add in the exploration of milestones, potential expenses, and the sales needed to attain profitability, and you can paint a pretty clear picture of your business’s potential.

Document your strategy and goals

Understanding where you’re going and how you’re going to get there is vital for those starting or managing a business. Writing your plan helps you do that. It ensures that you consider all aspects of your business, know what milestones you need to hit, and can effectively make adjustments if that doesn’t happen. 

With a plan in place, you’ll know where you want your business to go and how you’ve performed in the past. This alone prepares you to take on challenges, review what you’ve done before, and make the right adjustments.

Pursue funding

Even if you do not intend to pursue funding right away, having a business plan will prepare you for it. It will ensure that you have all of the information necessary to submit a loan application and pitch to investors. 

So, rather than scrambling to gather documentation and write a cohesive plan once it’s relevant, you can keep it up-to-date and attempt to attain funding. Just add a use of funds report to your financial plan and you’ll be ready to go.

The benefits of having a plan don’t stop there. You can then use your business plan to help you manage the funding you receive. You’ll not only be able to easily track and forecast how you’ll use your funds but also easily report on how it’s been used. 

Better manage your business

A solid business plan isn’t meant to be something you do once and forget about. Instead, it should be a useful tool that you can regularly use to analyze performance, make strategic decisions, and anticipate future scenarios. It’s a document that you should regularly update and adjust as you go to better fit the actual state of your business.

Doing so makes it easier to understand what’s working and what’s not. It helps you understand if you’re truly reaching your goals or if you need to make further adjustments. Having your plan in place makes that process quicker, more informative, and leaves you with far more time to actually spend running your business.

What should your business plan include?

The content and structure of your business plan should include anything that will help you use it effectively. That being said, there are some key elements that you should cover and that investors will expect to see. 

Executive summary

The executive summary is a simple overview of your business and your overall plan. It should serve as a standalone document that provides enough detail for anyone—including yourself, team members, or investors—to fully understand your business strategy. Make sure to cover:

• The problem you’re solving
• A description of your product or service
• Your target market
• Organizational structure
• A financial summary
• Necessary funding requirements.

This will be the first part of your plan, but it’s easiest to write it after you’ve created your full plan.

Products & Services

When describing your products or services, you need to start by outlining the problem you’re solving and why what you offer is valuable. This is where you’ll also address current competition in the market and any competitive advantages your products or services bring to the table. 

Lastly, outline the steps or milestones you’ll need to hit to launch your business successfully. If you’ve already achieved some initial milestones, like taking pre-orders or early funding, be sure to include them here to further prove your business’s validity. 

Market analysis

A market analysis is a qualitative and quantitative assessment of the current market you’re entering or competing in. It helps you understand the industry’s overall state and potential, who your ideal customers are, the positioning of your competition, and how you intend to position your own business.

This helps you better explore the market’s long-term trends, what challenges to expect, and how you will need to introduce and even price your products or services.

Check out our full guide for how to conduct a market analysis in just four easy steps.  

Marketing & sales

Here you detail how you intend to reach your target market. This includes your sales activities, general pricing plan, and the beginnings of your marketing strategy. If you have any branding elements, sample marketing campaigns, or messaging available—this is the place to add them. 

Additionally, it may be wise to include a SWOT analysis that demonstrates your business or specific product/service position. This will showcase how you intend to leverage sales and marketing channels to deal with competitive threats and take advantage of any opportunities.

Check out our full write-up to learn how to create a cohesive marketing strategy for your business. 

Organization & management

This section addresses the legal structure of your business, your current team, and any gaps that need to be filled. Depending on your business type and longevity, you’ll also need to include your location, ownership information, and business history.

Basically, add any information that helps explain your organizational structure and how you operate. This section is particularly important for pitching to investors but should be included even if attempted funding is not in your immediate future.

Financial projections

Possibly the most important piece of your plan, your financials section is vital for showcasing your business’s viability. It also helps you establish a baseline to measure against and makes it easier to make ongoing strategic decisions as your business grows. This may seem complex, but it can be far easier than you think. 

Focus on building solid forecasts, keep your categories simple, and lean on assumptions. You can always return to this section to add more details and refine your financial statements as you operate. 

Here are the statements you should include in your financial plan:

• Sales and revenue projections
• Profit and loss statement
• Cash flow statement
• Balance sheet

The appendix is where you add additional detail, documentation, or extended notes that support the other sections of your plan. Don’t worry about adding this section at first; only add documentation that you think will benefit anyone reading your plan.

Types of business plans explained

While all business plans cover similar categories, the style and function depend on how you intend to use your business plan . So, to get the most out of your plan, it’s best to find a format that suits your needs. Here are a few common business plan types worth considering. 

Traditional business plan

The tried-and-true traditional business plan (sometimes called a detailed business plan ) is a formal document meant for external purposes. It is typically required when applying for a business loan or pitching to investors. 

It can also be used when training or hiring employees, working with vendors, or any other situation where the full details of your business must be understood by another individual. 

A traditional business plan follows the outline above and can be anywhere from 10-50 pages depending on the amount of detail included, the complexity of your business, and what you include in your appendix. We recommend only starting with this business plan format if you plan to immediately pursue funding and already have a solid handle on your business information. 

Business model canvas

The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea. 

The structure ditches a linear structure in favor of a cell-based template. It encourages you to build connections between every element of your business. It’s faster to write out and update and much easier for you, your team, and anyone else to visualize your business operations. 

The business model canvas is really best for those exploring their business idea for the first time, but keep in mind that it can be difficult to actually validate your idea this way as well as adapt it into a full plan.

One-page business plan

The true middle ground between the business model canvas and a traditional business plan is the one-page business plan . Sometimes referred to as a lean plan, this format is a simplified version of the traditional plan that focuses on the core aspects of your business. It basically serves as a beefed-up pitch document and can be finished as quickly as the business model canvas.

By starting with a one-page plan, you give yourself a minimal document to build from. You’ll typically stick with bullet points and single sentences making it much easier to elaborate or expand sections into a longer-form business plan. 

A one-page business plan is useful for those exploring ideas, needing to validate their business model, or who need an internal plan to help them run and manage their business.

Growth plan

Now, the option that we here at LivePlan recommend is a growth plan . However, growth planning is less of a specific document type and more of a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, test, review, refine, and take action based on performance.

It holds all of the benefits of the single-page plan, including the potential to complete it in as little as 27-minutes . 

However, it’s even easier to convert into a more detailed business plan thanks to how heavily it’s tied to your financials. The overall goal of growth planning isn’t to just produce documents that you use once and shelve. Instead, the growth planning process helps you build a healthier company that thrives in times of growth and stable through times of crisis.

It’s faster, concise, more focused on financial performance, and ensures that your plan is always up-to-date.

How can you write your own business plan?

Now that you know the definition of a business plan, it’s time to write your own.

Get started by downloading our free business plan template or try a business plan builder like LivePlan for a fully guided experience and an AI-powered Assistant to help you write, generate ideas, and analyze your business performance.

No matter which option you choose, writing a business plan will set you up for success. You can use it to test an idea, figure out how you’ll start, and pursue funding.  And if you review and revise your plan regularly, it can turn into your best business management tool.

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How to Write a Business Plan for a Small Business

Noah Parsons

24 min. read

Updated September 2, 2024

Writing a business plan doesn’t have to be complicated. 

In this step-by-step guide, you’ll learn how to write a business plan that’s detailed enough to impress bankers and potential investors, while giving you the tools to start, run, and grow a successful business.

• The basics of writing a business plan

If you’re reading this guide, then you already know why you need a business plan . 

You understand that writing a business plan helps you: 

• Raise money
• Grow strategically
• Keep your business on the right track 

As you start to write your business plan, it’s useful to zoom out and remember what a business plan is .

At its core, a business plan is an overview of the products and services you sell, and the customers that you sell to. It explains your business strategy: how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

Most business plans also include financial forecasts for the future. These set sales goals, budget for expenses, and predict profits and cash flow. 

A good business plan is much more than just a document that you write once and forget about. It’s also a guide that helps you outline and achieve your goals. 

After writing your business plan, you can use it as a management tool to track your progress toward your goals. Updating and adjusting your forecasts and budgets as you go is one of the most important steps you can take to run a healthier, smarter business. 

We’ll dive into how to use your plan later in this article.

There are many different types of plans , but we’ll go over the most common type here, which includes everything you need for an investor-ready plan. However, if you’re just starting out and are looking for something simpler—I recommend starting with a one-page business plan . It’s faster and easier to create. 

It’s also the perfect place to start if you’re just figuring out your idea, or need a simple strategic plan to use inside your business.

Dig deeper : How to write a one-page business plan

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• What to include in your business plan

Executive summary

The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally just one to two pages. Most people write it last because it’s a summary of the complete business plan.

Ideally, the executive summary can act as a stand-alone document that covers the highlights of your detailed plan. 

In fact, it’s common for investors to ask only for the executive summary when evaluating your business. If they like what they see in the executive summary, they’ll often follow up with a request for a complete plan, a pitch presentation , or more in-depth financial forecasts .

Your executive summary should include:

• A summary of the problem you are solving
• A description of your product or service
• An overview of your target market
• A brief description of your team
• A summary of your financials
• Your funding requirements (if you are raising money)

Dig Deeper: How to write an effective executive summary

Products and services description

When writing a business plan, the produces and services section is where you describe exactly what you’re selling, and how it solves a problem for your target market. The best way to organize this part of your plan is to start by describing the problem that exists for your customers. After that, you can describe how you plan to solve that problem with your product or service. 

This is usually called a problem and solution statement .

To truly showcase the value of your products and services, you need to craft a compelling narrative around your offerings. How will your product or service transform your customers’ lives or jobs? A strong narrative will draw in your readers.

This is also the part of the business plan to discuss any competitive advantages you may have, like specific intellectual property or patents that protect your product. If you have any initial sales, contracts, or other evidence that your product or service is likely to sell, include that information as well. It will show that your idea has traction , which can help convince readers that your plan has a high chance of success.

Market analysis

Your target market is a description of the type of people that you plan to sell to. You might even have multiple target markets, depending on your business. 

A market analysis is the part of your plan where you bring together all of the information you know about your target market. Basically, it’s a thorough description of who your customers are and why they need what you’re selling. You’ll also include information about the growth of your market and your industry .

Try to be as specific as possible when you describe your market. 

Include information such as age, income level, and location—these are what’s called “demographics.” If you can, also describe your market’s interests and habits as they relate to your business—these are “psychographics.” 

Related: Target market examples

Essentially, you want to include any knowledge you have about your customers that is relevant to how your product or service is right for them. With a solid target market, it will be easier to create a sales and marketing plan that will reach your customers. That’s because you know who they are, what they like to do, and the best ways to reach them.

Next, provide any additional information you have about your market. 

What is the size of your market ? Is the market growing or shrinking? Ideally, you’ll want to demonstrate that your market is growing over time, and also explain how your business is positioned to take advantage of any expected changes in your industry.

Dig Deeper: Learn how to write a market analysis

Competitive analysis

Part of defining your business opportunity is determining what your competitive advantage is. To do this effectively, you need to know as much about your competitors as your target customers. 

Every business has some form of competition. If you don’t think you have competitors, then explore what alternatives there are in the market for your product or service. 

For example: In the early years of cars, their main competition was horses. For social media, the early competition was reading books, watching TV, and talking on the phone.

A good competitive analysis fully lays out the competitive landscape and then explains how your business is different. Maybe your products are better made, or cheaper, or your customer service is superior. Maybe your competitive advantage is your location – a wide variety of factors can ultimately give you an advantage.

Dig Deeper: How to write a competitive analysis for your business plan

Marketing and sales plan

The marketing and sales plan covers how you will position your product or service in the market, the marketing channels and messaging you will use, and your sales tactics. 

The best place to start with a marketing plan is with a positioning statement . 

This explains how your business fits into the overall market, and how you will explain the advantages of your product or service to customers. You’ll use the information from your competitive analysis to help you with your positioning. 

For example: You might position your company as the premium, most expensive but the highest quality option in the market. Or your positioning might focus on being locally owned and that shoppers support the local economy by buying your products.

Once you understand your positioning, you’ll bring this together with the information about your target market to create your marketing strategy . 

This is how you plan to communicate your message to potential customers. Depending on who your customers are and how they purchase products like yours, you might use many different strategies, from social media advertising to creating a podcast. Your marketing plan is all about how your customers discover who you are and why they should consider your products and services. 

While your marketing plan is about reaching your customers—your sales plan will describe the actual sales process once a customer has decided that they’re interested in what you have to offer. 

If your business requires salespeople and a long sales process, describe that in this section. If your customers can “self-serve” and just make purchases quickly on your website, describe that process. 

A good sales plan picks up where your marketing plan leaves off. The marketing plan brings customers in the door and the sales plan is how you close the deal.

Together, these specific plans paint a picture of how you will connect with your target audience, and how you will turn them into paying customers.

Dig deeper: What to include in your sales and marketing plan

Business operations

When writing a business plan, the operations section describes the necessary requirements for your business to run smoothly. It’s where you talk about how your business works and what day-to-day operations look like. 

Depending on how your business is structured, your operations plan may include elements of the business like:

• Supply chain management
• Manufacturing processes
• Equipment and technology
• Distribution

Some businesses distribute their products and reach their customers through large retailers like Amazon.com, Walmart, Target, and grocery store chains. 

These businesses should review how this part of their business works. The plan should discuss the logistics and costs of getting products onto store shelves and any potential hurdles the business may have to overcome.

If your business is much simpler than this, that’s OK. This section of your business plan can be either extremely short or more detailed, depending on the type of business you are building.

For businesses selling services, such as physical therapy or online software, you can use this section to describe the technology you’ll leverage, what goes into your service, and who you will partner with to deliver your services.

Dig Deeper: Learn how to write the operations chapter of your plan

Key milestones and metrics

Although it’s not required to complete your business plan, mapping out key business milestones and the metrics can be incredibly useful for measuring your success.

Good milestones clearly lay out the parameters of the task and set expectations for their execution. You’ll want to include:

• A description of each task
• The proposed due date
• Who is responsible for each task

If you have a budget, you can include projected costs to hit each milestone. You don’t need extensive project planning in this section—just list key milestones you want to hit and when you plan to hit them. This is your overall business roadmap. 

Possible milestones might be:

• Website launch date
• Store or office opening date
• First significant sales
• Break even date
• Business licenses and approvals

You should also discuss the key numbers you will track to determine your success. Some common metrics worth tracking include:

• Conversion rates
• Customer acquisition costs
• Profit per customer
• Repeat purchases

It’s perfectly fine to start with just a few metrics and grow the number you are tracking over time. You also may find that some metrics simply aren’t relevant to your business and can narrow down what you’re tracking.

Dig Deeper: How to use milestones in your business plan

Organization and management team

Investors don’t just look for great ideas—they want to find great teams. Use this chapter to describe your current team and who you need to hire . You should also provide a quick overview of your location and history if you’re already up and running.

Briefly highlight the relevant experiences of each key team member in the company. It’s important to make the case for why yours is the right team to turn an idea into a reality. 

Do they have the right industry experience and background? Have members of the team had entrepreneurial successes before? 

If you still need to hire key team members, that’s OK. Just note those gaps in this section.

Your company overview should also include a summary of your company’s current business structure . The most common business structures include:

• Sole proprietor
• Partnership

Be sure to provide an overview of how the business is owned as well. Does each business partner own an equal portion of the business? How is ownership divided? 

Potential lenders and investors will want to know the structure of the business before they will consider a loan or investment.

Dig Deeper: How to write about your company structure and team

Financial plan

The last section of your business plan is your financial plan and forecasts. 

Entrepreneurs often find this section the most daunting. But, business financials for most startups are less complicated than you think, and a business degree is certainly not required to build a solid financial forecast. 

A typical financial forecast in a business plan includes the following:

• Sales forecast : An estimate of the sales expected over a given period. You’ll break down your forecast into the key revenue streams that you expect to have.
• Expense budget : Your planned spending such as personnel costs , marketing expenses, and taxes.
• Profit & Loss : Brings together your sales and expenses and helps you calculate planned profits.
• Cash Flow : Shows how cash moves into and out of your business. It can predict how much cash you’ll have on hand at any given point in the future.
• Balance Sheet : A list of the assets, liabilities, and equity in your company. In short, it provides an overview of the financial health of your business. 

A strong business plan will include a description of assumptions about the future, and potential risks that could impact the financial plan. Including those will be especially important if you’re writing a business plan to pursue a loan or other investment.

Dig Deeper: How to create financial forecasts and budgets

This is the place for additional data, charts, or other information that supports your plan.

Including an appendix can significantly enhance the credibility of your plan by showing readers that you’ve thoroughly considered the details of your business idea, and are backing your ideas up with solid data.

Just remember that the information in the appendix is meant to be supplementary. Your business plan should stand on its own, even if the reader skips this section.

Dig Deeper : What to include in your business plan appendix

Optional: Business plan cover page

Adding a business plan cover page can make your plan, and by extension your business, seem more professional in the eyes of potential investors, lenders, and partners. It serves as the introduction to your document and provides necessary contact information for stakeholders to reference.

Your cover page should be simple and include:

• Company logo
• Business name
• Value proposition (optional)
• Business plan title
• Completion and/or update date
• Address and contact information
• Confidentiality statement

Just remember, the cover page is optional. If you decide to include it, keep it very simple and only spend a short amount of time putting it together.

Dig Deeper: How to create a business plan cover page

How to use AI to help write your business plan

Generative AI tools such as ChatGPT can speed up the business plan writing process and help you think through concepts like market segmentation and competition. These tools are especially useful for taking ideas that you provide and converting them into polished text for your business plan.

The best way to use AI to write a business plan is to leverage it as a collaborator , not a replacement for human creative thinking and ingenuity. 

AI can come up with lots of ideas and act as a brainstorming partner. It’s up to you to filter through those ideas and figure out which ones are realistic enough to resonate with your customers. 

There are pros and cons of using AI to help with your business plan . So, spend some time understanding how it can be most helpful before just outsourcing the job to AI.

Learn more: 10 AI prompts you need to write a business plan

• Writing tips and strategies

To help streamline the business plan writing process, here are a few tips and key questions to answer to make sure you get the most out of your plan and avoid common mistakes .  

Determine why you are writing a business plan

Knowing why you are writing a business plan will determine your approach to your planning project. 

For example: If you are writing a business plan for yourself, or just to use inside your own business , you can probably skip the section about your team and organizational structure. 

If you’re raising money, you’ll want to spend more time explaining why you’re looking to raise the funds and exactly how you will use them.

Regardless of how you intend to use your business plan , think about why you are writing and what you’re trying to get out of the process before you begin.

Keep things concise

Probably the most important tip is to keep your business plan short and simple. There are no prizes for long business plans . The longer your plan is, the less likely people are to read it. 

So focus on trimming things down to the essentials your readers need to know. Skip the extended, wordy descriptions and instead focus on creating a plan that is easy to read —using bullets and short sentences whenever possible.

Have someone review your business plan

Writing a business plan in a vacuum is never a good idea. Sometimes it’s helpful to zoom out and check if your plan makes sense to someone else. You also want to make sure that it’s easy to read and understand.

Don’t wait until your plan is “done” to get a second look. Start sharing your plan early, and find out from readers what questions your plan leaves unanswered. This early review cycle will help you spot shortcomings in your plan and address them quickly, rather than finding out about them right before you present your plan to a lender or investor.

If you need a more detailed review, you may want to explore hiring a professional plan writer to thoroughly examine it.

Use a free business plan template and business plan examples to get started

Knowing what information to include in a business plan is sometimes not quite enough. If you’re struggling to get started or need additional guidance, it may be worth using a business plan template. 

There are plenty of great options available (we’ve rounded up our 8 favorites to streamline your search).

But, if you’re looking for a free downloadable business plan template , you can get one right now; download the template used by more than 1 million businesses. 

Or, if you just want to see what a completed business plan looks like, check out our library of over 550 free business plan examples . 

We even have a growing list of industry business planning guides with tips for what to focus on depending on your business type.

Common pitfalls and how to avoid them

It’s easy to make mistakes when you’re writing your business plan. Some entrepreneurs get sucked into the writing and research process, and don’t focus enough on actually getting their business started. 

Here are a few common mistakes and how to avoid them:

Not talking to your customers : This is one of the most common mistakes. It’s easy to assume that your product or service is something that people want. Before you invest too much in your business and too much in the planning process, make sure you talk to your prospective customers and have a good understanding of their needs.

• Overly optimistic sales and profit forecasts: By nature, entrepreneurs are optimistic about the future. But it’s good to temper that optimism a little when you’re planning, and make sure your forecasts are grounded in reality. 
• Spending too much time planning: Yes, planning is crucial. But you also need to get out and talk to customers, build prototypes of your product and figure out if there’s a market for your idea. Make sure to balance planning with building.
• Not revising the plan: Planning is useful, but nothing ever goes exactly as planned. As you learn more about what’s working and what’s not—revise your plan, your budgets, and your revenue forecast. Doing so will provide a more realistic picture of where your business is going, and what your financial needs will be moving forward.
• Not using the plan to manage your business: A good business plan is a management tool. Don’t just write it and put it on the shelf to collect dust – use it to track your progress and help you reach your goals.
• Presenting your business plan

The planning process forces you to think through every aspect of your business and answer questions that you may not have thought of. That’s the real benefit of writing a business plan – the knowledge you gain about your business that you may not have been able to discover otherwise.

With all of this knowledge, you’re well prepared to convert your business plan into a pitch presentation to present your ideas. 

A pitch presentation is a summary of your plan, just hitting the highlights and key points. It’s the best way to present your business plan to investors and team members.

Dig Deeper: Learn what key slides should be included in your pitch deck

Use your business plan to manage your business

One of the biggest benefits of planning is that it gives you a tool to manage your business better. With a revenue forecast, expense budget, and projected cash flow, you know your targets and where you are headed.

And yet, nothing ever goes exactly as planned – it’s the nature of business.

That’s where using your plan as a management tool comes in. The key to leveraging it for your business is to review it periodically and compare your forecasts and projections to your actual results.

Start by setting up a regular time to review the plan – a monthly review is a good starting point. During this review, answer questions like:

• Did you meet your sales goals?
• Is spending following your budget?
• Has anything gone differently than what you expected?

Now that you see whether you’re meeting your goals or are off track, you can make adjustments and set new targets. 

Maybe you’re exceeding your sales goals and should set new, more aggressive goals. In that case, maybe you should also explore more spending or hiring more employees. 

Or maybe expenses are rising faster than you projected. If that’s the case, you would need to look at where you can cut costs.

A plan, and a method for comparing your plan to your actual results , is the tool you need to steer your business toward success.

Learn More: How to run a regular plan review

How to write a business plan FAQ

What is a business plan?

A document that describes your business , the products and services you sell, and the customers that you sell to. It explains your business strategy, how you’re going to build and grow your business, what your marketing strategy is, and who your competitors are.

What are the benefits of writing a business plan?

A business plan helps you understand where you want to go with your business and what it will take to get there. It reduces your overall risk, helps you uncover your business’s potential, attracts investors, and identifies areas for growth.

Writing a business plan ultimately makes you more confident as a business owner and more likely to succeed for a longer period of time.

What are the 7 steps of writing a business plan?

The seven steps to writing a business plan include:

• Write a brief executive summary
• Describe your products and services.
• Conduct market research and compile data into a cohesive market analysis.
• Describe your marketing and sales strategy.
• Outline your organizational structure and management team.
• Develop financial projections for sales, revenue, and cash flow.
• Add any additional documents to your appendix.

What are the 5 most common business plan mistakes?

There are plenty of mistakes that can be made when writing a business plan. However, these are the 5 most common that you should do your best to avoid:

• 1. Not taking the planning process seriously.
• Having unrealistic financial projections or incomplete financial information.
• Inconsistent information or simple mistakes.
• Failing to establish a sound business model.
• Not having a defined purpose for your business plan.

What questions should be answered in a business plan?

Writing a business plan is all about asking yourself questions about your business and being able to answer them through the planning process. You’ll likely be asking dozens and dozens of questions for each section of your plan.

However, these are the key questions you should ask and answer with your business plan:

• How will your business make money?
• Is there a need for your product or service?
• Who are your customers?
• How are you different from the competition?
• How will you reach your customers?
• How will you measure success?

How long should a business plan be?

The length of your business plan fully depends on what you intend to do with it. From the SBA and traditional lender point of view, a business plan needs to be whatever length necessary to fully explain your business. This means that you prove the viability of your business, show that you understand the market, and have a detailed strategy in place.

If you intend to use your business plan for internal management purposes, you don’t necessarily need a full 25-50 page business plan. Instead, you can start with a one-page plan to get all of the necessary information in place.

What are the different types of business plans?

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. Here are a few common business plan types worth considering.

Traditional business plan: The tried-and-true traditional business plan is a formal document meant to be used when applying for funding or pitching to investors. This type of business plan follows the outline above and can be anywhere from 10-50 pages depending on the amount of detail included, the complexity of your business, and what you include in your appendix.

Business model canvas: The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea.

One-page business plan: This format is a simplified version of the traditional plan that focuses on the core aspects of your business. You’ll typically stick with bullet points and single sentences. It’s most useful for those exploring ideas, needing to validate their business model, or who need an internal plan to help them run and manage their business.

Lean Plan: The Lean Plan is less of a specific document type and more of a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, test, review, refine, and take action based on performance. It’s faster, keeps your plan concise, and ensures that your plan is always up-to-date.

What’s the difference between a business plan and a strategic plan?

A business plan covers the “who” and “what” of your business. It explains what your business is doing right now and how it functions. The strategic plan explores long-term goals and explains “how” the business will get there. It encourages you to look more intently toward the future and how you will achieve your vision.

However, when approached correctly, your business plan can actually function as a strategic plan as well. If kept lean, you can define your business, outline strategic steps, and track ongoing operations all with a single plan.

Noah is the COO at Palo Alto Software, makers of the online business plan app LivePlan. He started his career at Yahoo! and then helped start the user review site Epinions.com. From there he started a software distribution business in the UK before coming to Palo Alto Software to run the marketing and product teams.

Table of Contents

• Use AI to help write your plan
• Common planning mistakes
• Manage with your business plan

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What is a business plan?

1. write an executive summary, 2. describe your company, 3. state your business goals, 4. describe your products and services, 5. do your market research, 6. outline your marketing and sales plan, 7. perform a business financial analysis, 8. make financial projections, 9. summarize how your company operates, 10. add any additional information to an appendix, business plan tips and resources.

A business plan outlines your business’s financial goals and explains how you’ll achieve them over the next three to five years. Here’s a step-by-step guide to writing a business plan that will offer a strong, detailed road map for your business.

LLC Formation

A business plan is a document that explains what your business does, how it makes money and who its customers are. Internally, writing a business plan should help you clarify your vision and organize your operations. Externally, you can share it with potential lenders and investors to show them you’re on the right track.

Business plans are living documents; it’s OK for them to change over time. Startups may update their business plans often as they figure out who their customers are and what products and services fit them best. Mature companies might only revisit their business plan every few years. Regardless of your business’s age, brush up this document before you apply for a business loan .

» Need help writing? Learn about the best business plan software .

This is your elevator pitch. It should include a mission statement, a brief description of the products or services your business offers and a broad summary of your financial growth plans.

Though the executive summary is the first thing your investors will read, it can be easier to write it last. That way, you can highlight information you’ve identified while writing other sections that go into more detail.

» MORE: How to write an executive summary in 6 steps

Next up is your company description. This should contain basic information like:

Your business’s registered name.

Address of your business location .

Names of key people in the business. Make sure to highlight unique skills or technical expertise among members of your team.

Your company description should also define your business structure — such as a sole proprietorship, partnership or corporation — and include the percent ownership that each owner has and the extent of each owner’s involvement in the company.

Lastly, write a little about the history of your company and the nature of your business now. This prepares the reader to learn about your goals in the next section.

» MORE: How to write a company overview for a business plan

The third part of a business plan is an objective statement. This section spells out what you’d like to accomplish, both in the near term and over the coming years.

If you’re looking for a business loan or outside investment, you can use this section to explain how the financing will help your business grow and how you plan to achieve those growth targets. The key is to provide a clear explanation of the opportunity your business presents to the lender.

For example, if your business is launching a second product line, you might explain how the loan will help your company launch that new product and how much you think sales will increase over the next three years as a result.

» MORE: How to write a successful business plan for a loan

In this section, go into detail about the products or services you offer or plan to offer.

You should include the following:

An explanation of how your product or service works.

The pricing model for your product or service.

The typical customers you serve.

Your supply chain and order fulfillment strategy.

You can also discuss current or pending trademarks and patents associated with your product or service.

Lenders and investors will want to know what sets your product apart from your competition. In your market analysis section , explain who your competitors are. Discuss what they do well, and point out what you can do better. If you’re serving a different or underserved market, explain that.

Here, you can address how you plan to persuade customers to buy your products or services, or how you will develop customer loyalty that will lead to repeat business.

Include details about your sales and distribution strategies, including the costs involved in selling each product .

» MORE: R e a d our complete guide to small business marketing

If you’re a startup, you may not have much information on your business financials yet. However, if you’re an existing business, you’ll want to include income or profit-and-loss statements, a balance sheet that lists your assets and debts, and a cash flow statement that shows how cash comes into and goes out of the company.

Accounting software may be able to generate these reports for you. It may also help you calculate metrics such as:

Net profit margin: the percentage of revenue you keep as net income.

Current ratio: the measurement of your liquidity and ability to repay debts.

Accounts receivable turnover ratio: a measurement of how frequently you collect on receivables per year.

This is a great place to include charts and graphs that make it easy for those reading your plan to understand the financial health of your business.

This is a critical part of your business plan if you’re seeking financing or investors. It outlines how your business will generate enough profit to repay the loan or how you will earn a decent return for investors.

Here, you’ll provide your business’s monthly or quarterly sales, expenses and profit estimates over at least a three-year period — with the future numbers assuming you’ve obtained a new loan.

Accuracy is key, so carefully analyze your past financial statements before giving projections. Your goals may be aggressive, but they should also be realistic.

NerdWallet’s picks for setting up your business finances:

The best business checking accounts .

The best business credit cards .

The best accounting software .

Before the end of your business plan, summarize how your business is structured and outline each team’s responsibilities. This will help your readers understand who performs each of the functions you’ve described above — making and selling your products or services — and how much each of those functions cost.

If any of your employees have exceptional skills, you may want to include their resumes to help explain the competitive advantage they give you.

Finally, attach any supporting information or additional materials that you couldn’t fit in elsewhere. That might include:

Licenses and permits.

Equipment leases.

Bank statements.

Details of your personal and business credit history, if you’re seeking financing.

If the appendix is long, you may want to consider adding a table of contents at the beginning of this section.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Here are some tips to write a detailed, convincing business plan:

Avoid over-optimism: If you’re applying for a business bank loan or professional investment, someone will be reading your business plan closely. Providing unreasonable sales estimates can hurt your chances of approval.

Proofread: Spelling, punctuation and grammatical errors can jump off the page and turn off lenders and prospective investors. If writing and editing aren't your strong suit, you may want to hire a professional business plan writer, copy editor or proofreader.

Use free resources: SCORE is a nonprofit association that offers a large network of volunteer business mentors and experts who can help you write or edit your business plan. The U.S. Small Business Administration’s Small Business Development Centers , which provide free business consulting and help with business plan development, can also be a resource.

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What is corporate planning?

It might seem frivolous to generate business plans for the next three to five years when it seems like we’re facing a new disruption every three to five days. But during times like these, intentionality and planning are most important. When faced with uncertainty, a comprehensive, flexible corporate plan can actually help the business and its various branches stay on course.

The corporate planning process is essential to executing your business plan. Here’s what you need to know to engage in corporate strategic planning.

Why Corporate Strategic Planning Matters

There are different types of planning in the business world, and they can sometimes run together. But a corporate plan isn’t just a business plan by another name: They’re two separate items, and each one plays an essential role in moving your company forward. 

Here are some of the differences between business planning and corporate planning, as well as why corporate planning is essential for bringing the business plan to life.

Business Planning vs. Corporate Planning

The business plan typically covers the business’s long-term goals, especially concerning the industry and other external forces. The business planning stage often occurs at the company’s inception or before a significant change is made. The business plan should be reviewed and updated frequently (at least once every one or two years).

Exercises like strengths, weaknesses, opportunities, and threats (SWOT) analysis are deployed at the business planning stage to get a sense of the business compared to competitors.

Corporate planning , on the other hand, looks internally. Corporate planning answers the question of how you’ll carry out the business plan. Corporate plans should span three to five years. Their goal is typically to align business units that have traditionally operated in silos and govern core services like HR, payroll, accounting, IT, and security.

Corporate strategic planning uses similar exercises (such as the SWOT analysis ) to arrive at broad operating principles and strategic actions to carry out the business plan.

The Importance of Corporate Planning

Your corporate plan may seem less important than the broader vision set out in the business plan. But without the corporate plan, the business plan has no movement. The principles and actions laid out in the corporate plan are necessary to bring the business plan to life.

If one of your business goals is to increase company profits by 25% within the next five years, for instance, you need a corporate plan to visualize the steps you’ll have to take internally to get there. One key aspect of turning a profit is reducing operating costs . HR can work with other department heads to evaluate employee efficiency, spot weaknesses, and develop a plan to increase profit per employee.

3 Types of Corporate Planning

Your overarching corporate plan should connect areas that have historically existed in silos. Develop corporate plans that cut across and pull together the different types of work within the company. 

Here are three types of corporate planning to implement at your company.

Strategic Planning 

The corporate strategic planning process evaluates the resources available to the company and identifies gaps that you will need to fill to drive business results. These could be gaps within tangible resources (inventory, technology, or headcount) or intangible (institutional knowledge or role-specific skills). 

Within the context of the  Growth Playbook , strategic planning usually starts in the same place as the business plan: the C-suite, with critical internal stakeholders present. Business and department leaders need to have a conversation to identify the resources the company will need to carry out the business plan.

The strategic planning process provides a high-level blueprint of your corporate plan and feeds into the operational and project planning processes.

Operational Planning

Operational planning in the business plan lays out the actions you’ll need to take internally to reach those goals. Within the operational plan, you’ll assign individual people to take ownership of those actions. 

An objectives and key results (OKR) framework can help take the high-level business plan down to the level of individual actions. Using this model, business leaders set strategic goals at the top, moving down the organization from corporate management to individual team members.

At the team level, managers and employees review the business’s strategic goals and craft their objectives that drive these priorities forward. This process results in clear ownership over each smaller objective feeding into the company’s larger business goals. 

Additionally, bringing employees into the process to identify how they can support the business strategy often results in creative solutions to challenging problems. Employee innovations can be standardized and fed into the next round of corporate planning.

Project Planning

Project planning breaks down the business plan into individual projects with defined objectives. The project plan provides a blueprint for project managers to keep costs, schedules, and resources on track to deliver the plan’s results. Where operational planning bridges the strategic and project planning processes, project planning is purely tactical.  

With your company OKRs in place, bring project managers on board to help execute them efficiently and effectively. Work with your project managers to evaluate your resources and create a realistic plan for achieving company priorities.

3 Stages of Corporate Planning

Corporate planning is a complex process that requires time and dedication at each stage. The corporate planning process follows three defined stages:

Formulation

Forming the corporate plan is the first step. It should build on the business plan and will require input from critical stakeholders. At this stage, be sure to incorporate some scenario planning. The process of setting long-term objectives for the business plan should have anticipated potential future scenarios. Work contingencies into your final result to account for these scenarios as you form your corporate plan.

You need to create a plan that can flex without breaking, so return to the different types of corporate planning as you form your plan. What skill gaps might be amplified, for example, if the economy rebounds and the demand for your product or service doubles? How might that scenario change the actions you’ll have to take or the resources at your disposal?

Formulating a flexible plan on the front end requires a lot of work but improves your ability to implement and execute successfully.

Implementation

Putting the plan into action requires clear roles and defined ownership over each objective. Before you can implement your corporate plan, you need to confirm buy-in and commitment from each person involved. Without a firm commitment, implementation often fails.

Implementing the plan comes down to setting all of the processes into motion at a high level. This could include authorizing the use of agreed-upon resources, for example, or consulting with team leads as they begin to execute their portions of the plan.

Your job isn’t complete just because you’ve set the plan into motion. You must constantly evaluate your corporate plan as it’s in progress and after it’s done. Check in frequently with department heads and managers to monitor their progress toward their portions of the plan.

Once you have completed your corporate plan, conduct a post-mortem to review what worked and what you need to improve as you design and implement your next plan. At this point, it’s a good idea to revisit your SWOT analysis. How have your strengths and weaknesses shifted? How have your opportunities and threats evolved? 

The answers to these questions can feed into the next planning round, providing essential data and a frame of reference from previous experience executing a corporate strategy.

5 Elements of Successful Corporate Plan

The stages of corporate planning inform your process at a higher strategic level. But taking that process down to the tactical, day-to-day level is as important (if not more so) as the process of setting the plan at the top.

Drafting and implementing a successful corporate plan requires a steady tactical process and effective communication across organizational levels. Here’s a framework for outlining and executing your corporate plan.

Establish the Plan’s Objectives

Start with the business strategy and plan. What are the business objectives that the corporate plan needs to achieve? Drive these objectives down to the lowest levels of the company. Everyone must get an opportunity to think strategically and offer suggestions for achieving the larger business strategy.

Don’t be too proud to consult employees on the front lines regarding better and more effective working methods. Front-line employees often have the most significant insights into the processes and actions that bring the most value and drive the best results.

Develop Strategies for Achieving Goals

Break the larger plan down into specific projects and actions, with metrics indicating the success or failure of each venture. Using an OKR framework, each objective should have defined key results that show whether the company has met its objectives. This makes it easy to track progress toward larger business goals.

This is where you can get creative with operations and resources, especially human resources. Don’t confine your objectives to existing teams or departments. One of the keys to harnessing enterprise agility is assembling cross-functional teams to cut across silos. 

Cross-functional teams can be risky, especially if the team members have never worked together. Such teams bring together different viewpoints and ways of working that can cause friction. But with the right facilitator, that healthy conflict can bring your corporate plan to life.

Implement Your Corporate Plan

Successfully implementing a corporate plan requires effort and input from every team member. To get that buy-in, employees at all levels — especially the front lines — need to see their role in moving the plan forward. 

An OKR framework gives the sense of a flattened hierarchy where individuals can see their roles much more clearly. And when employees can see how they move the needle on business results, they bring more engagement and productivity to achieving them.

However, poor management can snuff out that engagement. To support the plan’s tactical implementation, train managers to manage work by outcomes rather than managing the employees themselves.

Keep Track of the Plan’s Performance

Just because you’ve implemented the plan doesn’t mean you’re done with it: Consult each team lead with ownership over each objective. Ask for their honest input on how the plan is progressing. Make sure that the owner of each objective knows that it’s better to admit that something isn’t working than to keep concentrating employee efforts on the wrong results or no results at all.

With a flexible corporate plan, you can course-correct if it isn’t producing the results you anticipated. In this case, you may need to implement one of your scenario plans to keep things moving forward and in the right direction. 

One clear metric for tracking a plan’s performance is to align the key results with employee performance metrics. If employees are achieving their outcomes and are connected with the plan’s outcomes, you can see at a glance when something is off track.

Analyze the Impact of the Plan

After you have executed the plan, spend time analyzing its impact. Did it create the intended results at each point? What could you and your team have done differently to make a more significant impact? 

Bring individuals in from across the organization to help with this post-mortem. Ask them to share their insights and experiences regarding the plan’s strengths and where it was weakest. Then, gather input on overcoming these challenges in future corporate plans.

Once you’ve gathered input from a representative slice of the workforce, sit down with the leadership team to apply these insights to the next planning process.

Achieve Your Vision

We can’t know the future, but we can set clear directions we want our companies to take. And, with a clear sense of our business plan and desired business outcomes, we can anticipate the potential challenges to getting there. The corporate strategic planning process takes our vision for the business and makes it possible to achieve.

Corporate planning isn’t an easy process: It forces you to be intentional, seek out new perspectives, and implement innovative ideas. But when successful, your corporate plan drives actual business results, helping you turn your business vision into reality.

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Understanding Corporate Plan: Strategy, Implementation, and Examples

A corporate plan is a strategic blueprint that outlines an organization’s long-term goals, objectives, and strategies to achieve sustainable growth and competitive advantage. It serves as a roadmap for decision-making and resource allocation across various functional areas within the company.

Table of Contents

Importance of corporate plans.

Corporate plans play a crucial role in:

1. Setting Strategic Direction

• Purpose: Defining the organization’s vision, mission, and core values.
• Advantages: Aligning stakeholders’ efforts towards common goals and objectives.

2. Resource Allocation

• Impact: Optimizing the allocation of financial, human, and technological resources.
• Strategic Focus: Prioritizing initiatives that support long-term growth and profitability.

Components of a Corporate Plan

1. vision and mission statements.

• Vision: A statement of what the organization aspires to achieve in the future.
• Mission: Defines the organization’s purpose, target audience, and primary activities.

2. Strategic Objectives

• SMART Goals: Specific, Measurable, Achievable, Relevant, and Time-bound objectives.
• Example: Increasing market share by 15% within the next three years through new product launches and geographic expansion.

3. SWOT Analysis

• Strengths, Weaknesses, Opportunities, Threats: Evaluates internal capabilities and external factors influencing strategic decisions.
• Strategic Positioning: Identifying competitive advantages and mitigating risks.

Developing a Corporate Plan

1. environmental scan.

• Market Analysis: Assessing industry trends, customer preferences, and competitive landscape.
• Regulatory Environment: Understanding legal and regulatory constraints impacting business operations.

2. Strategic Initiatives

• Business Strategies: Differentiation, cost leadership, or niche market focus strategies.
• Innovation: Investing in research and development to drive product innovation and market expansion.

Example of a Corporate Plan

Consider a fictional tech company developing a corporate plan:

• Objective: Become a market leader in renewable energy solutions within five years.
• Strategies: Expand product line to include solar panels and energy storage systems.
• Implementation: Partner with utility companies for distribution and invest in sustainable manufacturing practices.

Benefits of Corporate Plans

1. organizational alignment.

• Clear Direction: Ensuring all departments work towards achieving common goals.
• Employee Engagement: Engaging employees by communicating their roles in achieving strategic objectives.

2. Risk Management

• Contingency Planning: Anticipating potential challenges and developing strategies to mitigate risks.
• Adaptability: Flexibility to respond to changing market conditions and technological advancements.

Criticisms and Challenges

1. implementation gap.

• Execution: Difficulty in translating strategic plans into actionable steps.
• Monitoring: Ensuring ongoing evaluation and adjustments to stay relevant in dynamic markets.

2. Short-term Focus

• Quarterly Pressures: Balancing long-term strategic goals with short-term financial performance expectations.
• Stakeholder Expectations: Managing expectations of shareholders, customers, and employees.

Role in Business Strategy

1. corporate governance.

• Board Oversight: Ensuring alignment with shareholder interests and ethical business practices.
• Transparency: Communicating progress and challenges to stakeholders.

2. Strategic Investments

• Capital Allocation: Prioritizing investments that deliver sustainable returns and support long-term growth.
• Mergers and Acquisitions: Evaluating opportunities that align with corporate goals and enhance market position.

Future Trends and Considerations

As businesses evolve:

• Digital Transformation: Leveraging technology to enhance operational efficiency and customer engagement.
• Sustainability Initiatives: Integrating environmental, social, and governance (ESG) factors into corporate strategies.
• Global Expansion: Navigating geopolitical uncertainties and exploring new growth markets.

A corporate plan serves as a strategic compass for organizations, guiding decisions and actions towards achieving long-term success and competitiveness. By defining vision, setting objectives, and outlining strategies, companies can navigate complexities, capitalize on opportunities, and mitigate risks in a dynamic business environment. Understanding the components, benefits, and challenges of corporate planning empowers stakeholders to drive sustainable growth and create value for all stakeholders.

For further insights, exploring real-world case studies and industry-specific examples can deepen understanding of how effective corporate planning contributes to organizational resilience and strategic agility.

Corporate Plan: Guiding Strategic Growth and Competitive Advantage

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Corporate Planning

Published on :

21 Aug, 2024

Blog Author :

Edited by :

Reviewed by :

Dheeraj Vaidya

What Is Corporate Planning?

Corporate planning is setting long-term objectives and goals within the organization's scope to enable an environment conducive to growth in terms of revenue and profit margins. It includes defining strategies, decision-making, and allocating resources. The corporate planning strategy aids the whole team to work in one direction- the organization’s goals.

A corporate planning cycle is a dynamic and continuous process throughout the organization's life. Through planning on a corporate level, hurdles that might hinder the growth towards the pre-determined goals come to light, and the management can provide solutions to solve them. Moreover, it allows the company to manage its resources more efficiently.

Table of contents

Corporate planning process explained.

• Advantages and Disadvantages
• Difference Between Corporate Planning and Strategic Planning
• Difference Between Corporate Planning and Functional Planning

Frequently Asked Questions (FAQs)

Recommended articles.

• Corporate planning is the process through which companies draw a map of their plan of action that enables their growth in quantifiable terms.
• It is typically carried out through the top-level management of the company. It is a medium-term goal that acts as the basis for macro-level planning, called strategic planning.
• To create a foolproof corporate plan, the organization must collect sufficient data about their company and gain insights into their competitor's business model.
• It is a continuous process that helps the organization grow continuously through constant technological developments.

Corporate planning is the process through which the organizations' goals are set with a clearly defined plan to achieve them. Then, it allows them to find opportunities and methods that facilitate the efficiency of the whole process.

The planning process's effectiveness depends on the data of the company's strategies, the strengths, weaknesses, and tactics of competitors, and the industry's growth forecast. However, a wiser way to begin the planning process is by identifying customer needs and finding a solution to meet those needs.

Once the solutions for customer needs are drawn, the company can set quantitative targets such as a certain amount of increase in revenue, gross margin percentages, and productivity. Setting goals that can be quantified is vital; otherwise, growth cannot be calculated in an absolute manner.

Since the area of development and means to measure the improvement are drawn at this point, the company has to design action plans to reach the determined goals. This part of the process is particular and guides the team with the workflow that will help the company achieve its goals and objectives.

As a corporate planning manager, it is essential to look at the developmental aspects of the company from an outsider.- say, a competitor or customer. This helps in drawing a plan that considers a lot more data points. A successful corporate plan has the six elements mentioned below:

#1 - Information

The first step towards creating a foolproof corporate plan is collecting information, regardless of whether the data paints a good or bad picture of the company's current status. Moreover, similar information about competitors gives an even better view of the areas that can be improved to gain a more significant market share .

#2 - Objectives & Strategies

Objectives refer to the overall outcome of the plan. On the other hand, strategies are specific steps taken to reach organizational goals. For example, objectives could be an increase in sales by 25% or responding to customer support issues within 2 hours. Making a product the market leader by the end of the financial year through influencer and social media marketing could be an example of a strategy.

#3 - Devising a Plan of Action

Once the objectives and goals are devised, the company must articulate a step-by-step plan that helps its employees gain significant insights into the plan's intricacies. This part of the process could be fulfilled by employee training, a new approach to production, or a change in marketing strategy.

#4 - Implementation

The action is taken toward the objectives and goals of the pillars of the organization's growth story. Irrespective of how well-planned a strategy is, it will deliver average results unless implemented or executed to perfection. The implementation comes in different forms depending on the specifics of the plan.

#5 - Monitoring

Once the implementation process is underway, the corporate planning manager monitors the progress or decline in following the procedure. Since the plan is not a one-time action, it must be supervised and monitored regularly.

#6 - Evaluation

After a certain period, the manager can check for differences after implementing the corporate planning strategy. The check will provide the management insights into the progress, decline, or stagnancy toward organizational goals.

Since each organization is bound to have different plans based on its organizational framework, management style, and product, naturally, they might want to implement a plan that fits their work style better rather than opting for a generic method. Therefore, let us discuss different types of corporate planning through the points below:

#1 - Tactical Planning

A tactical plan is usually implemented after a strategic plan has been set in motion. A tactical plan is a short-term goal to address immediate goals, which over time, contribute to the bigger plan. Typically, a short-term goal helps tackle hindrances that prevent the company from achieving its medium or long-term goals.

#2 - Contingency Planning

A contingency plan is when a company develops strategies that help them tackle an event from stopping its operations. This strategy is carried out in an adverse scenario, such as a natural calamity or pandemic. However, a contingency plan can also be initiated for positive events, such as a high inflow of unexpected client funds.

#3 - Operational Planning

Operational planning is a form of action where the daily tasks of each employee and manager are specified and monitored. It is usually planned for a period beyond one year. However, to reach short-term objectives that aid the enormous growth of the business, operation planning is a wise choice as it optimally allocates financial, physical, and human resources.

Let us understand the concept with the help of the examples below:

Audacity Corporation manufactures microphones and is one of the market leaders in the domain. They have produced studio and live performance microphones for over half a decade. Their CEO Brendon wanted to ensure that their range of microphones for streamers and gamers were market leaders by the end of the financial year.

To ensure their product was top-selling in the market, they studied their competitors in the domain and found that most of them produced these microphones in-house, and their cost of raw materials was high.

Audacity tied up with companies in China and Taiwan to procure raw materials at lower prices and trained their employees to assemble these products more efficiently.

That year, their streaming and gaming microphones sold 20% more than any competitor.

ExxonMobil is one of the largest oil and gas companies internationally. In their announcement about their corporate plans in 2022, they declared that they plan on increasing their investments in emission reduction solutions.

By 2027 , they plan to increase investments by $17 billion in this domain to gain a competitive advantage over other layers in the market and tackle climate change and carbon emissions.

Advantages And Disadvantages

The extensive planning for the future allows businesses to tackle quite a few situations better. However, they have their set of disadvantages too. Let us discuss the advantages and disadvantages of corporate planning through the points below:

• Reduces Uncertainty: Running a business is filled with constant uncertainties and risks. However, an excellent corporate plan helps the company by forecasting risk value in the future, thereby reducing the risk of uncertainty.
• Unity: A well-defined plan helps the employees to understand their roles in a better manner. In addition, since all employees are clear on their roles, there is less conflict and higher levels of unity within the organization.
• Aids Growth: With cooperation from employees and constant development of the processes within the company's scope, objectives, and strategies and easier to implement, a higher success rate can be expected.

Disadvantages

• Rigidity: Following a set of rules as a part of the plan can become an inflexible environment. As a result, it can lower the morale of employees.
• Time: From collecting data, devising a plan, implementing, monitoring, and evaluating, it can take quite some time before the company begins to see results.
• Ambiguity: Since most of the planning is based on the prediction of the future, it cannot be foolproof as situations opposite to the plan can occur, and businesses can be caught off-guard.

Difference Between Corporate Planning And Strategic Planning

Let us understand the difference between corporate planning and strategic planning through the table below:

Difference Between Corporate Planning And Functional Planning

Let us understand the difference between  corporate and functional planning through the points below:

• A corporate plan devises a plan for the whole organization to achieve overall growth in revenue , profits , or a higher customer base.
• It is typically a top-level management that curates a corporate plan.
• It is a continuous process that is monitored and evaluated regularly.
• A corporate plan is to cater to the short to medium-term goals of the organization.
• This plan formulates objectives within the organization's scope to derive better results outside the organization through factors beyond the control of the organization and its managers.

Functional Planning

• Functional planning aims to ensure the standardization of management protocols at every level of the organization.
• Quantifiable goals are set to measure growth, decline, or stagnancy after a given period.
• Managers of different departments are expected to look for gaps or inefficiencies in processes and provide insights into developing them.
• An operational plan is usually for a period slightly above a year.
• While supervising the processes, managers must be able to explain the utilization of resources in specific areas. In addition, the top management level is usually keen on ensuring cost efficiency is kept in mind during the whole process.

A corporate plan is a process that maps out a path through which companies grow in terms of profits, brand identity, and revenue. It is a tool that organizations use to ensure an upper hand over their competitors. Moreover, a corporate plan is a foundation on which a macro-level strategy is built. This macro plan is called strategic planning.

It helps the organization face uncertainties in the future in a better manner as they have planned for contingencies well in advance. Moreover, a clear plan and an objective for each employee give them a sense of belonging and unity.

Since a corporate plan involves the organization's overall growth, it is vital to ensure that the resources are being used efficiently and there is minimal to no wastage in the process.

The very nature of planning is to ensure the whole process is forward-looking. Moreover, it is a continuous process and a big goal consisting of smaller goals for the short-term that helps the employees and their managers to quantify the growth effectively.

This has been a guide to what is Corporate Planning & its meaning. We explain its process, elements, examples, and advantages and comparison with strategic and functional planning. You can learn more about finance from the following articles –

• Human Resource Planning
• Enterprise Resource Planning
• Corporate Strategy

The Differences Between Business Planning & Corporate Planning

Business success is dependent upon clear and decisive planning. Sure, strong sales and customer retention drive profit success. However, the increased sales and improved customer retention is a product of the business planning that occurs behind the scenes. Of the many types of planning that businesses use, business planning and corporate planning are the most common.

Business Planning

Business planning defines the strategies the business will use to meet its goals and missions. Business planning provides details on the business' operations, products and services, and marketing strategies as it relates to the inclusive industry. This process expounds the operation strategies from short- and long-term views while focusing on the overall activity of the company. The business plan does not identify specific employee strategies but rather provides industry strategies.

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Corporate Planning

Corporate planning defines the strategies that the employees will take to meet the business' goals and missions. This type of planning, also known as strategic planning, focuses on staff responsibilities and procedures. As with business planning, strategic planning requires a close look at the company's missions, strengths and weaknesses. However, corporate planning identifies the step-by-step process of the business, such as the actual steps the staff will take to counteract challenges, train employees and achieve accomplishments. Corporate planning also provides specific, measurable goals with realistic time lines.

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Business planning and corporate planning are interdependent. Although business planning can exist without corporate planning, the goals of the business plan are much more attainable with corporate planning. As with business planning, the corporate plan can exist without a business plan. However, without business planning, the overall goals and missions of the business are not clear. Therefore, the corporate planning becomes incomplete.

There are many effects of business and corporate planning. Not only does the planning process help businesses to succeed, it helps businesses to determine when new directions and changes are needed. A close analysis can result in early recognition of potential issues and dangers, as well as help the company to quickly adapt to customer demand and needs.

Considerations

Business and strategic plans should be reviewed periodically. The plans should be reviewed to compare the business' current standpoints against those that were outlined in the plans. Adjustments should be made, if necessary, to align the business' actual activities to the defined plans. When analyzing needed changes, consideration should be given to the industry's environment and trends, as well as the economy's stability, customer demand and business needs. The balancing of the business and strategic plans should outline the moves or changes that the business will strive to implement and framework the strategies that the employees will use to meet the business' missions and goals.

• Free Management Library: Basic Description of Strategic Planning
• Plan Ware: Business Planning Papers: Developing a Strategic Plan
• Free Management Library: Business Planning
• MasterCard International: The Plan
• Small Business Administration: Manage Your Business From Start to Finish

Writing professionally since 2004, Charmayne Smith focuses on corporate materials such as training manuals, business plans, grant applications and technical manuals. Smith's articles have appeared in the "Houston Chronicle" and on various websites, drawing on her extensive experience in corporate management and property/casualty insurance.

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9 Business Plan Examples to Inspire Your Own (2024)

Need support creating your business plan? Check out these business plan examples for inspiration and guidance.

Any aspiring entrepreneur researching how to start a business will likely be advised to write a business plan. But few resources provide business plan examples to really guide you through writing one of your own.

Here are some real-world and illustrative business plan examples to help you craft your business plan .

Business plan format: 9 examples

The business plan examples in this article follow this template:

• Executive summary
• Company description
• Market analysis
• Products and services
• Marketing plan
• Logistics and operations plan
• Financial plan
• Customer segmentation

1. Executive summary

Your executive summary is a page that gives a high-level overview of the rest of your business plan. While it appears at the beginning, it’s easiest to write this section last, as there are details further in the report you’ll need to include here.

In this free business plan template , the executive summary is four paragraphs and takes a little over half a page. It clearly and efficiently communicates what the business does and what it plans to do, including its business model and target customers.

2. Company description

You might repurpose your company description elsewhere, like on your About page , social media profile pages, or other properties that require a boilerplate description of your small business.

Soap brand ORRIS has a blurb on its About page that could easily be repurposed for the company description section of its business plan.

You can also go more in-depth with your company overview and include the following sections, like in this business plan example for Paw Print Post:

Business structure

This section outlines how you registered your business —as an LLC , sole proprietorship, corporation, or other business type : “Paw Print Post will operate as a sole proprietorship run by the owner, Jane Matthews.”

Nature of the business

“Paw Print Post sells unique, one-of-a-kind digitally printed cards that are customized with a pet’s unique paw prints.”

“Paw Print Post operates primarily in the pet industry and sells goods that could also be categorized as part of the greeting card industry.”

Background information

“Jane Matthews, the founder of Paw Print Post, has a long history in the pet industry and working with animals, and was recently trained as a graphic designer. She’s combining those two loves to capture a niche in the market: unique greeting cards customized with a pet’s paw prints, without needing to resort to the traditional (and messy) options of casting your pet’s prints in plaster or using pet-safe ink to have them stamp their ’signature.’”

Business objectives

“Jane will have Paw Print Post ready to launch at the Big Important Pet Expo in Toronto to get the word out among industry players and consumers alike. After two years in business, Jane aims to drive $150,000 in annual revenue from the sale of Paw Print Post’s signature greeting cards and to have expanded into two new product categories.”

“Jane Matthews is the sole full-time employee of Paw Print Post but hires contractors as needed to support her workflow and fill gaps in her skill set. Notably, Paw Print Post has a standing contract for five hours a week of virtual assistant support with Virtual Assistants Pro.”

Your mission statement may also make an appearance here. Passionfruit shares its mission statement on its company website, and it would also work well in its example business plan.

3. Market analysis

The market analysis consists of research about supply and demand , your target demographics, industry trends, and the competitive landscape. You might run a SWOT analysis and include that in your business plan. 

Here’s an example SWOT analysis for an online tailored-shirt business:

You’ll also want to do a competitive analysis as part of the market research component of your business plan. This will tell you which businesses you’re up against and give you ideas on how to differentiate your brand. A broad competitive analysis might include:

• Target customers
• Unique value proposition , or what sets the products apart
• Sales pitch
• Price points for products
• Shipping policy

4. Products and services

This section of your business plan describes your offerings—which products and services do you sell to your customers? Here’s an example for Paw Print Post that explains its line of custom greeting cards, along with details on what makes its products unique.

5. Marketing plan

It’s always a good idea to develop a marketing plan before you launch your business. Your marketing plan shows how you’ll get the word out about your business, and it’s an essential component of your business plan as well.

The Paw Print Post focuses on four Ps: price, product, promotion, and place. However, you can take a different approach with your marketing plan. Maybe you can pull from your existing marketing strategy , or maybe you break it down by the different marketing channels. Whatever approach you take, your marketing plan should describe how you intend to promote your business and offerings to potential customers.

6. Logistics and operations plan

The Paw Print Post example considered suppliers, production, facilities, equipment, shipping and fulfillment, and inventory. This includes any raw materials needed to produce the products.

7. Financial plan

The financial plan provides a breakdown of sales, revenue, profit, expenses, and other relevant financial metrics related to funding and profiting from your business.

Ecommerce brand Nature’s Candy’s financial plan breaks down predicted revenue, expenses, and net profit in graphs.

It then dives deeper into the financials to include:

• Funding needs
• Projected profit-and-loss statement
• Projected balance sheet
• Projected cash-flow statement

You can use a financial plan spreadsheet to build your own financial statements, including income statement, balance sheet, and cash-flow statement.

8. Customer segmentation

Customer segmentation means dividing your target market into groups based on specific characteristics. These characteristics can be demographics, psychographics, behavior, or geography. Your business plan will provide detailed information on each segment, like its size and growth potential, so you can show why they are valuable to your business. 

Airsign , an eco-friendly vacuum cleaner company, faced the challenge of building a sustainable business model in the competitive home appliance market. They identified three key customer personas to target:

• Design-oriented urban dwellers
• Millennials moving to suburbs
• Older consumers seeking high-quality appliances

The company utilized Shopify’s customer segmentation tools to gain insights and take action to target them. Airsign created targeted segments for specific marketing initiatives.

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.

9. Appendix

The appendix provides in-depth data, research, or documentation that supports the claims and projections made in the main business plan. It includes things like market research, finance, résumés, product specs, and legal documents. 

Readers can access detailed info in the appendix, but the main plan stays focused and easy to read. Here’s an example from a fictional clothing brand called Bloom:

Appendix: Bloom Business Plan

Types of business plans, and what to include for each

This lean business plan is meant to be high level and easy to understand at a glance. You’ll want to include all of the same sections in one-page business plan, but make sure they’re truncated and summarized:

• Executive summary: truncated
• Market analysis: summarized
• Products and services: summarized
• Marketing plan: summarized
• Logistics and operations plan: summarized
• Financials: summarized

A startup business plan is for a new business. Typically, these plans are developed and shared to secure funding . As such, there’s a bigger focus on the financials, as well as on other sections that determine viability of your business idea—market research, for example:

• Market analysis: in-depth
• Financials: in-depth

Your internal business plan is meant to keep your team on the same page and aligned toward the same goal:

A strategic, or growth, business plan is a big-picture, long-term look at your business. As such, the forecasts tend to look further into the future, and growth and revenue goals may be higher. Essentially, you want to use all the sections you would in a normal business plan and build upon each:

• Market analysis: comprehensive outlook
• Products and services: for launch and expansion
• Marketing plan: comprehensive outlook
• Logistics and operations plan: comprehensive outlook
• Financials: comprehensive outlook

Feasibility

Your feasibility business plan is sort of a pre-business plan—many refer to it as simply a feasibility study. This plan essentially lays the groundwork and validates that it’s worth the effort to make a full business plan for your idea. As such, it’s mostly centered around research:

Nonprofit business plans are used to attract donors, grants, and partnerships. They focus on what their mission is, how they measure success, and how they get funded. You’ll want to include the following sections in addition to a traditional business plan:

• Organization description
• Need statement
• Programs and services
• Fundraising plan
• Partnerships and collaborations
• Impact measurement

Set yourself up for success as a business owner

Building a good business plan serves as a roadmap you can use for your ecommerce business at launch and as you reach each of your business goals. Business plans create accountability for entrepreneurs and synergy among teams, regardless of your business model .

Kickstart your ecommerce business and set yourself up for success with an intentional business planning process—and with the sample business plans above to guide your own path.

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Business plan examples FAQ

How do i write a simple business plan.

To write a simple business plan, begin with an executive summary that outlines your business and your plans. Follow this with sections detailing your company description, market analysis, organization and management structure, product or service, marketing and sales strategy, and financial projections. Each section should be concise and clearly illustrate your strategies and goals.

What is the best format to write a business plan?

The best business plan format presents your plan in a clear, organized manner, making it easier for potential investors to understand your business model and goals. Always begin with the executive summary and end with financial information or appendices for any additional data.

What are the 4 key elements of a business plan?

• Executive summary: A concise overview of the company’s mission, goals, target audience, and financial objectives.
• Business description: A description of the company’s purpose, operations, products and services, target markets, and competitive landscape.
• Market analysis: An analysis of the industry, market trends, potential customers, and competitors.
• Financial plan: A detailed description of the company’s financial forecasts and strategies.

What are the 3 main points of a business plan?

• Concept: Your concept should explain the purpose of your business and provide an overall summary of what you intend to accomplish.
• Contents: Your content should include details about the products and services you provide, your target market, and your competition.
• Cash flow: Your cash flow section should include information about your expected cash inflows and outflows, such as capital investments, operating costs, and revenue projections.

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How To Start A Corporation In 9 Steps (2024 Guide)

Expert Reviewed

Updated: Jul 24, 2024, 10:51pm

Table of Contents

Which type of corporation is right for you, how to start a corporation in 9 steps, bottom line, frequently asked questions (faqs).

A corporation is a type of business entity that offers limited liability for owners, the shareholders. Corporations have well-established legal precedents and a uniform management structure, and corporate shares are easy to transfer from one shareholder to another. Because of this, corporations are often the favored business structure of large companies and investors. You can form a corporation yourself, use an online business formation service or consult with an attorney. Startup expenses range depending on the business needs and type.

Read our simple guide to learn how to start a corporation in 2024. We’ll walk you through everything you need to know to form your new corporation today.

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Depending on your business goals and ownership structure, there are a few different types of corporations to consider. They include:

• A C corporation (C-corp): A C-corp is a traditional corporation that pays corporate income tax. Large, publicly traded companies are usually structured as C-corps. A C-corp may be a good choice if you plan to solicit venture capital, go public and retain a significant amount of your earnings in the company. If you form a corporation, it will automatically be considered a C corp.
• An S corporation (S-corp): Unlike a C-corp, an S-corp has a pass-through tax structure. The corporation does not pay corporate income tax. Instead, the shareholders pay personal income tax on their share of the company’s profits. This may result in an overall tax savings. You establish an S-corp by forming a corporation and then filing Form 2553 with the IRS to elect S-corp taxation. S-corps must meet certain criteria, including having no more than 100 shareholders, having only one class of stock and not having foreign shareholders.
• A B corporation (B-corp). In some states, you can form a benefit corporation. A B-corp has a social mission in addition to its profit-making goals. B-corps may be subject to additional reporting requirements to demonstrate how they are advancing their social mission.

The legal and tax structure of your corporation can have a major impact on the way you run your business and the taxes you’ll pay. Consult with a business lawyer and/or certified public accountant (CPA) before you make any final decisions.

Every state has slightly different requirements for forming a corporation but, in general, you’ll want to follow these steps.

1. Choose a Name for Your Corporation

Choosing a business name is the first important step in forming a corporation. Your business name must be different from the names of existing businesses in your state. You can search name availability online at the website of the secretary of state or other state agency responsible for business filings. Each state office has specific rules in regard to your corporation’s name and you must comply with the rules of your state’s corporate division.

In general, here are a few guidelines that typically apply:

• Your business name must contain entity identifiers, such as “Incorporated,” “limited” “Corporation,” “Company,” or an abbreviation, such as “Inc.,” “Co.,” or “Ltd.”
• Exclude any words in your business name, such as “trust,” “bank,” “credit union” or “trustee” or words related to a government agency, such as “FBI,” “State Department” or “treasury”

2. Appoint Initial Directors

The board of directors oversees the overall direction of your company―the “big picture.” To incorporate, you’ll need to appoint an initial board, but you can replace this temporary board with a more permanent one after your corporation has been formed.

Different states have different requirements for the number of people who must be on your board. You may only need one board member or may need three or more.

3. File Articles of Incorporation

To create a new corporation you will file a legal document called the articles of incorporation with your state business filing agency (usually the secretary of state). In most states, you can complete this process online. Although requirements can vary from one state to another, the articles of incorporation will typically include:

• Your corporation’s name
• Its principal place of business
• Its purpose
• The name and address of the registered agent who will accept the service of legal papers on your corporation’s behalf
• The names and addresses of incorporators and/or initial board members

The best thing to do is research what documents are required for your articles of incorporation according to your specific state. Every state has different requirements, different terminology, different forms and filing fees.

Once the articles are approved, you will receive a certificate of formation.

4. Draft Corporate Bylaws

Some states require corporate bylaws to be recognized legally as a corporation. Corporate bylaws are rules and regulations of a corporation outlining how it operates. You can draft bylaws either before or after you’ve submitted your corporate formation documents.

Corporate bylaws provide a roadmap for how the company will be run and how decisions will be made.

These bylaws should include:

• The roles assigned to each officer
• How business decisions will be made
• Where and when annual shareholder meetings will occur
• The percentage of shareholders needed to make decisions
• Where and when dividends are paid

If you need assistance with drafting this legal document, it’s a good idea to consult with a corporate lawyer. You can also find a template online, but make sure to check with your specific state regarding what needs to be included.

5. Hold the First Board of Directors’ Meeting

Once your corporation has been officially formed and bylaws have been drafted, hold a meeting of the initial board of directors. Be sure to follow the notice guidelines in your bylaws. At this meeting, the directors usually appoint a permanent board, approve the bylaws, appoint officers to run the company’s day-to-day business, establish the corporation’s accounting year and authorize the issuance of shares of stock. Minutes of all board meetings should be recorded and kept with the corporation’s records.

6. Issue Stock

Issuing stock to the shareholders is one of the first formal corporate actions after forming a corporation. Make a record of the shares issued to each shareholder and the price paid.

A share of stock represents a unit of ownership. A corporation is owned by its shareholders and shareholders make a contribution to the corporation for shares of ownership. Shares authorized are the maximum number you are issued to sell. The number of authorized shares is stated in the company’s articles of incorporation.

Although small corporations are exempt from many United States Securities and Exchange Commission (SEC) regulations regarding stock issuance, it’s still a good idea to get advice from a small business lawyer to make sure you are complying with all regulations when you issue stock.

7. Draft a Shareholders’ Agreement

Although optional, a shareholders agreement can contribute greatly to the success of your business over the long haul.

A shareholders agreement is a contract between the owners of a small company. It determines how ownership will be managed if a shareholder dies, retires, becomes disabled or leaves the company. Signing a shareholders’ agreement in your company’s early stages can help ensure business continuity and avoid disagreements in the future.

It’s best to get help from an experienced small business lawyer who can tailor the shareholders’ agreement to your company’s specific needs.

8. Get an Employer Identification Number

An employer identification number (EIN) allows the IRS to identify your business for tax reporting. It is similar to a Social Security number, but for your business.

A corporation is required to obtain an EIN, and you’ll need it to open a bank account, set up payroll withholding and set up state tax accounts. You can get an EIN quickly and at no charge on the IRS website.

9. Get Business Permits, Licenses and DBAs

Most businesses need some type of business license or permit, but the requirements for your business will depend on where you’re located and what industry you’re in. Some states and many localities require all businesses to have a general business license. Many industries, such as alcohol and firearms sales, aviation and restaurants, require additional licenses.

The Small Business Administration (SBA) has a chart of industries subject to federal licensing. Contact your state and local governments for information about additional licenses you need in your locality.

If you plan on doing business under a name other than your corporation’s official name, you will also need to register a DBA name. The DBA name is also known as “doing business as” or a “fictitious business name.” Depending on where you’re located, you may need to register the DBA with your state, city and county. If you’ll only be using your official corporation name in your business, you can skip this step.

As a business owner, it’s important to stay informed on what is required of you after forming a corporation. The rules for running a corporation vary from state to state. Some may ask for yearly reports, require you to issue shares and hold yearly meetings as well as keep accurate and complete records, written communications, financial statements and meeting minutes. Check with your state or consult with a lawyer for more information regarding the specific requirements to remain compliant.

Choose carefully when deciding which business structure is right for you. It’s important to find the right balance of legal protection and corporation benefits that meet your specific needs.

Which type of business owner is best suited for a corporation?

Business owners who want to scale their business by hiring employees and taking on outside investors are best suited for a corporation. Corporate shares are easier to transfer than LLC membership interests, and established investors tend to prefer the well-established and predictable structure of a corporation. Entrepreneurs who want to create a business that upholds their commitment to a positive impact on society or the environment may want to consider forming a benefit corporation (B-corp), if it’s available in your state.

Can just one person form a corporation?

If you are the sole shareholder, you can still form a corporation, but you must follow all the same corporate requirements to stay in compliance.

Can a corporation transfer ownership?

If the owner passes away or wants to sell their share of the company the business will still exist and you can sell or transfer over shares to another person.

Is it required of my corporation to draft corporate bylaws?

It depends. Not all states require your corporation to have corporate bylaws, but it’s important you check with your local secretary of state’s office in which you plan to do business.

Do I need a business plan to start a business?

While you don’t exactly need a business plan to start a business, it’s a good idea to create one. The reason is having a strong business plan will help you stay true to your original vision. Planning out your suppliers, goals and general growth plan will set you up for success in the future.

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Natalie Cusson is a small business owner with over 15 years experience in the creative arts. She's worked on ad campaigns for many trusted brands such as Nike, Subaru, Polaris, Red Bull and Progressive Insurance, just to name a few. Beyond her professional accomplishments, Natalie is driven by her love for writing and research, and is committed to maintaining a growth mindset. Not only is she passionate about learning and growing, she believes in embracing a healthy lifestyle.

Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist covering small business marketing content. She is a former Google Tech Entrepreneur and she holds an MSc in International Marketing from Edinburgh Napier University. Additionally, she is a Columnist at Inc. Magazine.

• Product management
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What is a business roadmap? Best practices to achieve your business plan

Last updated: March 2024

A business (or company) roadmap is a tool that outlines the direction you will take to achieve your business plan and meet your long-term strategic goals. Company and product leaders use business roadmaps to communicate an organization's vision and plans at every growth stage — from early-stage startup to established enterprise company.

This custom roadmap created in Aha! Roadmaps shows business goals and initiatives, success metrics, and progress.

Build your own roadmap

Business roadmaps can help organizations of all sizes scale and innovate. Regardless of industry or market, these are essential tools that help everyone in the organization understand key objectives, communicate status, and take action. This guide offers definitions and best practices to help you learn about what goes into creating a business roadmap. The details of your own roadmap will differ based on the unique facets of your company, but there are universal elements that apply to any business.

Use the following links to jump ahead to a specific section:

What is the purpose of a business roadmap?

Business plan vs. business roadmap: what is the difference, what to include on a business roadmap, how to build a business roadmap, who uses a business roadmap, types of business roadmaps, get started with a business roadmap template.

A business roadmap helps you visualize exactly what needs to happen — and when — to transform a company’s vision into reality. You can lay out what will happen in a given month, quarter, or year (or whatever timeline you prefer for visualizing when you will achieve your goals). A business roadmap is flexible by nature. It can be as detailed or abstract as you need it to be depending on the business's maturity and the size of your team.

You might be wondering about the differences between business roadmaps and business plans. If you already have a defined business plan, why do you need another planning tool? To make things more confusing, some people even refer to your business plan as a type of roadmap.

Although there are some areas of overlap between a business plan and a business roadmap, there are also critical distinctions. Let's take a closer look at each tool and what makes them different.

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• How to build a brilliant roadmap

Vision vs. mission vs. strategy

A business plan is a detailed foundational document that is generally created at any company's outset. It is essential to running a business and is especially useful for new companies. More established businesses benefit from updating their business plans or creating new ones when expanding into new markets or developing offerings that fundamentally change how their businesses operate.

Here is what you should know about a business plan:

Now, let's focus on a business roadmap. A business roadmap is a visualization of specific aspects of your business plan in a given time frame. It contains active and upcoming work at a high level and is a helpful way to gauge how well the company is tracking toward achieving its business plan.

Broadly speaking, your business roadmap should include the most important strategic plans across the company. This includes goals, initiatives, and major themes of work from cross-functional teams. Because you will likely need to adjust your roadmap over time, be sure everything you add to it deserves to be there. The more you add to your roadmap, the more difficult it can be to change course when new opportunities arise.

You might find that you create a few roadmaps concurrently. For example, you could create a long-term roadmap that covers all aspects of business planning over the next three to five (or even 10) years. This might include high-level forecasts for revenue, marketing and sales, staffing, and operations — as well as new products or services you plan to develop.

Then, you could have a shorter-term business roadmap, either a year or six months at a time. This roadmap might include corporate-level goals and initiatives as well as those of specific functions. You want to show how the entire company will work toward overall business objectives.

To truly benefit from this adaptive style of planning, it is helpful to have all teams working within a shared strategic planning tool like Aha! Roadmaps . Because planning data is updated in real time, every roadmap that the team sees will automatically show progress as it happens. This aligns the organization around what you will achieve and provides clarity into how you will work together to do it.

Creating a business roadmap should be part of your strategic planning process. Most successful companies follow a goal-first approach to roadmapping.

Set goals: Establish what you want to achieve, from revenue to hiring.

Gather information: Seek input from organizational leaders and research your market.

Organize into themes: Identify patterns in your inputs.

Prioritize initiatives: Use those themes to define initiatives, making sure each one supports a specific goal.

Add time frames: Forecast resourcing and evaluate when each initiative would need to be completed.

Review and revise: Evaluate your progress against the roadmap often so you can spot challenges and adjust as needed.

As you build your business roadmap, remember to keep your goals in mind. They should inform all of your plans.

Anyone with a vested interest in your company’s success will benefit from having access to some version of your business roadmap. Because a business roadmap visualizes the company’s goals and objectives, you can think of it as a blueprint that all stakeholders can rally around and follow. Here are some of the types of people and teams who can use a business roadmap:

Angel investors

Business owners

Consultants

Entrepreneurs

Marketing teams

Product managers

Sales teams

Startup founders

Venture capitalists

What is the best way to engage with each person? What information do they need to do their job well? What is superfluous? Use the empathy you built and seek to share what can help them succeed in their role. Alignment happens when you provide the right information at the right time. Brian de Haaff Aha! co-founder and CEO

Each functional group should have their own roadmap — from product management to marketing and IT . There might be times when you need different types of business roadmaps or different views for different audiences. Unlike a startup roadmap, these are geared toward more established companies. Here are a couple examples:

Business development roadmap: A business development roadmap outlines strategic expansion efforts. This would include things like new partnerships, sales channels, or market shifts.

Business intelligence roadmap: A business intelligence roadmap focuses on tracking and planning all business operations . This would include strategic efforts to affect performance, such as change management, process improvement, or adopting new technologies.

• What is the role of a product operations manager?

Objectives and key results (OKR) templates

Business roadmaps vs. product roadmaps

• What is an agile roadmap?

Templates help you repeat success, standardize work, and save time. Define your strategic planning process and create a format for your business roadmap that works for your company. Then, templatize it. Standardizing your business roadmap template will help reduce inefficiencies. When people do not have to guess at how to do their planning, they can spend more time on strategic thinking.

6 business model templates for product builders

100+ templates for every stage of product development

Internal vs. external product documentation

Take a look at this roadmap template built on a whiteboard in Aha! software. You can easily customize the roadmap by adding your own goals, initiatives, milestones, and dependencies. This is a simple, lightweight way to get started with business roadmapping. For more robust roadmapping functionality, Aha! Roadmaps connects your visual plans to actual work. It also includes the whiteboard template below and many other dynamic roadmap views.

Start using this template now

FAQs about business roadmaps

What is the difference between a business roadmap and a business strategy?

A business roadmap is a visualization of your business strategy — a step-by-step, more tactical guide for how you will achieve a business plan. It ensures you can meet any long-term goals you set previously. And in particular, it involves your business's goals, initiatives , milestones , and dependencies .

A business strategy outlines how you approach your work in general. At Aha! we like to break it down into three components:

Foundation: This is where you define your strategic vision and tie it back to business models and positioning templates.

Market: The market includes your customer profiles as well as your competitors.

Imperatives: Imperatives bridge your overall strategy to the work you are going to deliver (i.e., your releases and features). In other words, imperatives link goals to the work items needed to reach them.

What is the difference between a business roadmap and a business vision?

Your business vision is all about defining what lies ahead. It covers why your company exists, where it is headed, and why you believe in that future. Because it impacts your culture, values, and strategic direction, it is important to map out this concept early on and adjust it whenever your future changes. On the other hand, a business roadmap conveys the near-term work you will do to achieve that long-term vision.

How often should you update your business roadmap?

Your business roadmap should be flexible enough that you can update it regularly and painlessly. As a general rule, you should adjust your roadmaps whenever your plans — and those plan details — happen to change. This keeps stakeholders aligned with what is happening throughout the organization in order to reach pre-defined goals.

If you already use Aha! software , we have some good news to share: Because changes you make to records in Aha! Roadmaps automatically update on your roadmap views, there is no work needed on your end to update any existing business roadmaps when plans shift. Everything happens in real time.

How should I plan my startup's first business roadmap?

The process of building a business roadmap is similar for startups and larger enterprises. Start by setting your goals and gathering insights from leadership and the market surrounding what your focus areas should be. You should then organize all of those insights into themes, prioritizing the initiatives that are most aligned with your goals. From there, add realistic time frames for completing each initiative and review your roadmap regularly to gauge progress and determine whether anything needs adjusting.

It is the actual content within a startup's business roadmap that will vary significantly. Both the goals and the work needed to get there will be much different from what you might see on a more established enterprise's roadmap. Rather than goals such as, say, launching an additional product line or expanding sales into a new country, an early-stage startup might aim to launch a Minimum Lovable Product and gain its first 50 customers. Startups seeking outside funding could set a goal to raise a specific amount of venture capital, whereas a bootstrapped startup might focus more on breaking into smaller markets and customer retention. No matter your startup's goals, though, they should appear on your business roadmap.

If you are curious about whether a product roadmap would work for your early-stage startup, try out this template . We also offer higher-fidelity business roadmapping options in Aha! Roadmaps that update automatically whenever your plans change.

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Corporate Planning & Strategy

Last updated 22 Mar 2021

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A revision presentation providing business students with an overview of the role of planning in business strategy.

It highlights the key parts to the strategic planning process and considers the main business benefits of effective planning.

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Trump suggests tariffs can help solve rising child care costs in a major economic speech

Former President Donald Trump is suggesting his plans to increase tariffs on foreign imports will solve seemingly unrelated challenges such as the rising cost of child care

NEW YORK -- Former President Donald Trump suggested to business leaders Thursday that his plans to increase tariffs on foreign imports would solve seemingly unrelated challenges such as the rising cost of child care in the U.S.

The GOP presidential nominee promised to lead what he called a “national economic renaissance” by increasing tariffs, slashing regulations to boost energy production and drastically cutting government spending as well as corporate taxes for companies that produce in the U.S.

Trump was asked at his appearance before the Economic Club of New York about his plans to drive down child care costs to help more women join the workforce.

“Child care is child care, it’s something you have to have in this country. You have to have it," he said. Then, he said his plans to tax imports from foreign nations at higher levels would “take care” of such problems.

“We’re going to be taking in trillions of dollars, and as much as child care is talked about as being expensive, it’s — relatively speaking — not very expensive, compared to the kind of numbers we’ll be taking in,” he said.

Trump has embraced tariffs as he appeals to working-class voters who oppose free-trade deals and the outsourcing of factories and jobs. But in his speech Thursday and his economic plans as a whole, Trump has made a broader — to some, implausible — promise on tariffs: that they can raise trillions of dollars to fund his agenda without those costs being passed along to consumers in the form of higher prices.

His campaign attacks Democratic nominee Kamala Harris ’ proposals to increase corporate tax rates by saying they would ultimately be borne by workers in the form of fewer jobs and lower incomes. Yet taxes on foreign imports would have a similar effect with businesses and consumers having to absorb those costs in the form of higher prices.

The United States had $3.8 trillion worth of imports last year, according to the Bureau of Economic Analysis. Trump in the past has talked about universal tariffs of at least 10%, if not higher, though he has not spelled out details about how these taxes would be implemented.

Kimberly Clausing, an economist at the University of California, Los Angeles, has repeatedly warned in economic analyses about the likely damage to people’s finances from Trump’s tariffs. She noted that Trump wants tariffs to pay for everything, even though they can’t.

“I believe Trump has already spent this revenue, to pay for his tax cuts (which it doesn’t), or to perhaps end the income tax (which it cannot),” she said in an email. “It is unclear how there would be any revenues left over to fund child care.”

Child care is unaffordable for many Americans and financially precarious for many day care operators and their employees. Democrats in Congress have long argued the child care industry is in crisis and requires a drastic increase in federal aid — and some Republicans have joined them. Trump pointed to his tariff ideas as well as efforts he announced to reduce what he described as “waste and fraud.”

“I want to stay with child care, but those numbers are small relative to the kind of economic numbers that I'm talking about, including growth, but growth also headed up by what the plan is that I just told you about,” he said.

Trump’s running mate JD Vance was also asked about proposals to lower day care costs earlier this week, and he suggested making it easier for families to keep the kids at home with a grandparent or another relative.

“Make it so that, maybe like grandma or grandpa wants to help out a little bit more,” he said. “If that happens, you relieve some of the pressure on all the resources that we are spending on day care.”

Vance also suggested training more people to work in day cares, and said some states required what he called “ridiculous certification that has nothing to do with taking care of kids."

In his speech, Trump said he would immediately issue “a national emergency declaration” to achieve a massive increase in the domestic energy supply and eliminate 10 current regulations for every new regulation the government adopts. He said Tesla and SpaceX CEO Elon Musk has agreed to head a commission to perform a financial audit of the federal government that would save trillions of dollars.

“My plan will rapidly defeat inflation, quickly bring down prices and reignite explosive economic growth,” Trump claimed.

Trump has previously floated the idea of chopping the corporate tax rate to 15%, but on Thursday clarified that would be solely for companies that produce in the U.S. The corporate rate had been 35% when he became president in 2017, and he later signed a bill lowering it.

Harris calls for raising the corporate tax rate to 28% from 21%. Her policy proposals this week have been geared toward promoting more entrepreneurship, a bet that making it easier to start new companies will increase middle-class prosperity.

On Thursday, Trump attacked Harris’ proposals on banning price gouging and accused her of embracing Marxism and communism.

“She wants four more years to enforce the radical left agenda that poses a fundamental threat to the prosperity of every American family and America itself,” he said.

He also vowed to end what he called Harris’ “anti-energy crusade,” promising that energy prices would be cut in half, although energy prices are often driven by international fluctuations. He said an emergency declaration would help with rapid approvals for new drilling projects, pipelines, refineries, power plants and reactors, where local opposition is generally fierce.

And he also said he would ask Congress to pass legislation to ban the spending of taxpayer money on people who have entered the country illegally. He specifically said he would bar them from obtaining mortgages in California, targeting a bill passed in that state last week. Throughout his campaign, Trump has railed against the economic impact of the influx of migrants that have entered the country in recent years and their strain on some government services.

The Harris campaign issued a memo accusing Trump of wanting to hurt the middle class, arguing his ideas would expand the national debt and shrink economic growth and job creation.

“He wants our economy to serve billionaires and big corporations,” the campaign said in a statement.

Their dueling economic proposals are likely to be central to the upcoming presidential debate on Tuesday. Harris arrived Thursday in downtown Pittsburgh to devote the next several days to preparing for the debate. She intentionally picked a key part of the battleground state of Pennsylvania to hone her ideas ahead of their showdown.

In June, the right-leaning Tax Foundation estimated that Trump’s proposed tariffs would amount to a $524 billion yearly tax hike that would shrink the economy and cost the equivalent of 684,000 jobs. After Trump floated tariffs as high as 20% in August, the Harris campaign seized on an analysis suggesting that figure would raise a typical family’s expenses by almost $4,000 annually.

The money raised by tariffs would not be enough to offset the cost of his various income tax cuts, including a plan to whittle the corporate rate to 15% from 21%. The Penn Wharton Budget Model put the price tag on that at $5.8 trillion over 10 years.

Economists have warned about Trump’s plans to impose tariffs that he says would return manufacturing jobs to the U.S. Some have said such taxes on imports could worsen inflation, though he is vowing to cut down costs. Inflation peaked in 2022 at 9.1% but has since eased to 2.9% as of last month.

“Some might say it’s economic nationalism. I call it common sense. I call it America First,” he said on Thursday.

Gomez Licon reported from Fort Lauderdale, Florida, and Boak reported from Pittsburgh. Associated Press writers Moriah Balingit and Amelia Thomson-DeVeaux in Washington contributed to this report.

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Trump suggests tariffs can help solve rising child care costs in a major economic speech

Former President Donald Trump Former tells business leaders he’ll lead a “national economic renaissance” by slashing regulations to boost energy production, drastically cutting government spending and reducing taxes for companies that produce in the US.

Republican presidential nominee former President Donald Trump answers questions during a campaign event at the Economic Club of New York, Thursday, Sept. 5, 2024, in New York. (AP Photo/Alex Brandon)

Republican presidential nominee former President Donald Trump responds to questions during a campaign event at the Economic Club of New York, Thursday, Sept. 5, 2024, in New York. (AP Photo/Alex Brandon)

Democratic presidential nominee Vice President Kamala Harris speaks during a campaign stop at the Throwback Brewery, in North Hampton, N.H., Wednesday, Sept. 4, 2024. (AP Photo/Steven Senne)

Republican presidential nominee former President Donald Trump speaks during a campaign event at the Economic Club of New York, Thursday, Sept. 5, 2024, in New York. (AP Photo/Pamela Smith)

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NEW YORK (AP) — Former President Donald Trump suggested to business leaders Thursday that his plans to increase tariffs on foreign imports would solve seemingly unrelated challenges such as the rising cost of child care in the U.S.

The GOP presidential nominee promised to lead what he called a “national economic renaissance” by increasing tariffs, slashing regulations to boost energy production and drastically cutting government spending as well as corporate taxes for companies that produce in the U.S.

Trump was asked at his appearance before the Economic Club of New York about his plans to drive down child care costs to help more women join the workforce.

“Child care is child care, it’s something you have to have in this country. You have to have it,” he said. Then, he said his plans to tax imports from foreign nations at higher levels would “take care” of such problems.

“We’re going to be taking in trillions of dollars, and as much as child care is talked about as being expensive, it’s — relatively speaking — not very expensive, compared to the kind of numbers we’ll be taking in,” he said.

Trump has embraced tariffs as he appeals to working-class voters who oppose free-trade deals and the outsourcing of factories and jobs. But in his speech Thursday and his economic plans as a whole, Trump has made a broader — to some, implausible — promise on tariffs: that they can raise trillions of dollars to fund his agenda without those costs being passed along to consumers in the form of higher prices.

His campaign attacks Democratic nominee Kamala Harris ’ proposals to increase corporate tax rates by saying they would ultimately be borne by workers in the form of fewer jobs and lower incomes. Yet taxes on foreign imports would have a similar effect with businesses and consumers having to absorb those costs in the form of higher prices.

The United States had $3.8 trillion worth of imports last year, according to the Bureau of Economic Analysis. Trump in the past has talked about universal tariffs of at least 10%, if not higher, though he has not spelled out details about how these taxes would be implemented.

Kimberly Clausing, an economist at the University of California, Los Angeles, has repeatedly warned in economic analyses about the likely damage to people’s finances from Trump’s tariffs. She noted that Trump wants tariffs to pay for everything, even though they can’t.

“I believe Trump has already spent this revenue, to pay for his tax cuts (which it doesn’t), or to perhaps end the income tax (which it cannot),” she said in an email. “It is unclear how there would be any revenues left over to fund child care.”

Trump was asked to talk about child care

Child care is unaffordable for many Americans and financially precarious for many day care operators and their employees. Democrats in Congress have long argued the child care industry is in crisis and requires a drastic increase in federal aid — and some Republicans have joined them. Trump pointed to his tariff ideas as well as efforts he announced to reduce what he described as “waste and fraud.”

“I want to stay with child care, but those numbers are small relative to the kind of economic numbers that I’m talking about, including growth, but growth also headed up by what the plan is that I just told you about,” he said.

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Trump’s running mate JD Vance was also asked about proposals to lower day care costs earlier this week, and he suggested making it easier for families to keep the kids at home with a grandparent or another relative.

“Make it so that, maybe like grandma or grandpa wants to help out a little bit more,” he said. “If that happens, you relieve some of the pressure on all the resources that we are spending on day care.”

Vance also suggested training more people to work in day cares, and said some states required what he called “ridiculous certification that has nothing to do with taking care of kids.”

Trump laid out a series of economic proposals

In his speech, Trump said he would immediately issue “a national emergency declaration” to achieve a massive increase in the domestic energy supply and eliminate 10 current regulations for every new regulation the government adopts. He said Tesla and SpaceX CEO Elon Musk has agreed to head a commission to perform a financial audit of the federal government that would save trillions of dollars.

“My plan will rapidly defeat inflation, quickly bring down prices and reignite explosive economic growth,” Trump claimed.

Trump has previously floated the idea of chopping the corporate tax rate to 15%, but on Thursday clarified that would be solely for companies that produce in the U.S. The corporate rate had been 35% when he became president in 2017, and he later signed a bill lowering it.

Harris calls for raising the corporate tax rate to 28% from 21%. Her policy proposals this week have been geared toward promoting more entrepreneurship, a bet that making it easier to start new companies will increase middle-class prosperity.

On Thursday, Trump attacked Harris’ proposals on banning price gouging and accused her of embracing Marxism and communism.

“She wants four more years to enforce the radical left agenda that poses a fundamental threat to the prosperity of every American family and America itself,” he said.

He also vowed to end what he called Harris’ “anti-energy crusade,” promising that energy prices would be cut in half, although energy prices are often driven by international fluctuations. He said an emergency declaration would help with rapid approvals for new drilling projects, pipelines, refineries, power plants and reactors, where local opposition is generally fierce.

And he also said he would ask Congress to pass legislation to ban the spending of taxpayer money on people who have entered the country illegally. He specifically said he would bar them from obtaining mortgages in California, targeting a bill passed in that state last week. Throughout his campaign, Trump has railed against the economic impact of the influx of migrants that have entered the country in recent years and their strain on some government services.

The Harris campaign issued a memo accusing Trump of wanting to hurt the middle class, arguing his ideas would expand the national debt and shrink economic growth and job creation.

“He wants our economy to serve billionaires and big corporations,” the campaign said in a statement.

Their dueling economic proposals are likely to be central to the upcoming presidential debate on Tuesday. Harris arrived Thursday in downtown Pittsburgh to devote the next several days to preparing for the debate. She intentionally picked a key part of the battleground state of Pennsylvania to hone her ideas ahead of their showdown.

Trump plans to rely heavily on tariffs

In June, the right-leaning Tax Foundation estimated that Trump’s proposed tariffs would amount to a $524 billion yearly tax hike that would shrink the economy and cost the equivalent of 684,000 jobs. After Trump floated tariffs as high as 20% in August, the Harris campaign seized on an analysis suggesting that figure would raise a typical family’s expenses by almost $4,000 annually.

The money raised by tariffs would not be enough to offset the cost of his various income tax cuts, including a plan to whittle the corporate rate to 15% from 21%. The Penn Wharton Budget Model put the price tag on that at $5.8 trillion over 10 years.

Economists have warned about Trump’s plans to impose tariffs that he says would return manufacturing jobs to the U.S. Some have said such taxes on imports could worsen inflation, though he is vowing to cut down costs. Inflation peaked in 2022 at 9.1% but has since eased to 2.9% as of last month.

“Some might say it’s economic nationalism. I call it common sense. I call it America First,” he said on Thursday.

Gomez Licon reported from Fort Lauderdale, Florida, and Boak reported from Pittsburgh. Associated Press writers Moriah Balingit and Amelia Thomson-DeVeaux in Washington contributed to this report.

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What We Know About Kamala Harris’s $5 Trillion Tax Plan So Far

The vice president supports the tax increases proposed by the Biden White House, according to her campaign.

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By Andrew Duehren

Reporting from Washington

In a campaign otherwise light on policy specifics, Vice President Kamala Harris this week quietly rolled out her most detailed, far-ranging proposal yet: nearly $5 trillion in tax increases over a decade.

That’s how much more revenue the federal government would raise if it adopted a number of tax increases that President Biden proposed in the spring . Ms. Harris’s campaign said this week that she supported those tax hikes, which were thoroughly laid out in the most recent federal budget plan prepared by the Biden administration.

No one making less than $400,000 a year would see their taxes go up under the plan. Instead, Ms. Harris is seeking to significantly raise taxes on the wealthiest Americans and large corporations. Congress has previously rejected many of these tax ideas, even when Democrats controlled both chambers.

While tax policy is right now a subplot in a turbulent presidential campaign, it will be a primary policy issue in Washington next year. The next president will have to work with Congress to address the tax cuts Donald J. Trump signed into law in 2017. Many of those tax cuts expire after 2025, meaning millions of Americans will see their taxes go up if lawmakers don’t reach a deal next year.

Here’s an overview of what we now know — and still don’t know — about the Democratic nominee’s views on taxes.

Higher taxes on corporations

The most recent White House budget includes several proposals that would raise taxes on large corporations . Chief among them is raising the corporate tax rate to 28 percent from 21 percent, a step that the Treasury Department estimated could bring in $1.3 trillion in revenue over the next 10 years.

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