- Sources of Business Finance
- Small Business Loans
- Small Business Grants
- Crowdfunding Sites
- How to Get a Business Loan
- Small Business Insurance Providers
- Best Factoring Companies
- Types of Bank Accounts
- Best Banks for Small Business
- Best Business Bank Accounts
- Open a Business Bank Account
- Bank Accounts for Small Businesses
- Free Business Checking Accounts
- Best Business Credit Cards
- Get a Business Credit Card
- Business Credit Cards for Bad Credit
- Build Business Credit Fast
- Business Loan Eligibility Criteria
- Small-Business Bookkeeping Basics
- How to Set Financial Goals
- Business Loan Calculators
- How to Calculate ROI
- Calculate Net Income
- Calculate Working Capital
- Calculate Operating Income
- Calculate Net Present Value (NPV)
- Calculate Payroll Tax
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How to Write a Business Plan in 9 Steps (+ Template and Examples)
Every successful business has one thing in common, a good and well-executed business plan. A business plan is more than a document, it is a complete guide that outlines the goals your business wants to achieve, including its financial goals . It helps you analyze results, make strategic decisions, show your business operations and growth.
If you want to start a business or already have one and need to pitch it to investors for funding, writing a good business plan improves your chances of attracting financiers. As a startup, if you want to secure loans from financial institutions, part of the requirements involve submitting your business plan.
Writing a business plan does not have to be a complicated or time-consuming process. In this article, you will learn the step-by-step process for writing a successful business plan.
You will also learn what you need a business plan for, tips and strategies for writing a convincing business plan, business plan examples and templates that will save you tons of time, and the alternatives to the traditional business plan.
Let’s get started.
What Do You Need A Business Plan For?
Businesses create business plans for different purposes such as to secure funds, monitor business growth, measure your marketing strategies, and measure your business success.
1. Secure Funds
One of the primary reasons for writing a business plan is to secure funds, either from financial institutions/agencies or investors.
For you to effectively acquire funds, your business plan must contain the key elements of your business plan . For example, your business plan should include your growth plans, goals you want to achieve, and milestones you have recorded.
A business plan can also attract new business partners that are willing to contribute financially and intellectually. If you are writing a business plan to a bank, your project must show your traction , that is, the proof that you can pay back any loan borrowed.
Also, if you are writing to an investor, your plan must contain evidence that you can effectively utilize the funds you want them to invest in your business. Here, you are using your business plan to persuade a group or an individual that your business is a source of a good investment.
2. Monitor Business Growth
A business plan can help you track cash flows in your business. It steers your business to greater heights. A business plan capable of tracking business growth should contain:
- The business goals
- Methods to achieve the goals
- Time-frame for attaining those goals
A good business plan should guide you through every step in achieving your goals. It can also track the allocation of assets to every aspect of the business. You can tell when you are spending more than you should on a project.
You can compare a business plan to a written GPS. It helps you manage your business and hints at the right time to expand your business.
3. Measure Business Success
A business plan can help you measure your business success rate. Some small-scale businesses are thriving better than more prominent companies because of their track record of success.
Right from the onset of your business operation, set goals and work towards them. Write a plan to guide you through your procedures. Use your plan to measure how much you have achieved and how much is left to attain.
You can also weigh your success by monitoring the position of your brand relative to competitors. On the other hand, a business plan can also show you why you have not achieved a goal. It can tell if you have elapsed the time frame you set to attain a goal.
4. Document Your Marketing Strategies
You can use a business plan to document your marketing plans. Every business should have an effective marketing plan.
Competition mandates every business owner to go the extraordinary mile to remain relevant in the market. Your business plan should contain your marketing strategies that work. You can measure the success rate of your marketing plans.
In your business plan, your marketing strategy must answer the questions:
- How do you want to reach your target audience?
- How do you plan to retain your customers?
- What is/are your pricing plans?
- What is your budget for marketing?
![management example in business plan Business Plan Infographic](https://www.founderjar.com/wp-content/uploads/2021/07/Business-Plan-Infographic.jpg)
How to Write a Business Plan Step-by-Step
1. create your executive summary.
The executive summary is a snapshot of your business or a high-level overview of your business purposes and plans . Although the executive summary is the first section in your business plan, most people write it last. The length of the executive summary is not more than two pages.
![management example in business plan Executive Summary of the business plan](https://www.founderjar.com/wp-content/uploads/2021/07/Executive-Summary-of-the-business-plan.jpg)
Generally, there are nine sections in a business plan, the executive summary should condense essential ideas from the other eight sections.
A good executive summary should do the following:
- A Snapshot of Growth Potential. Briefly inform the reader about your company and why it will be successful)
- Contain your Mission Statement which explains what the main objective or focus of your business is.
- Product Description and Differentiation. Brief description of your products or services and why it is different from other solutions in the market.
- The Team. Basic information about your company’s leadership team and employees
- Business Concept. A solid description of what your business does.
- Target Market. The customers you plan to sell to.
- Marketing Strategy. Your plans on reaching and selling to your customers
- Current Financial State. Brief information about what revenue your business currently generates.
- Projected Financial State. Brief information about what you foresee your business revenue to be in the future.
The executive summary is the make-or-break section of your business plan. If your summary cannot in less than two pages cannot clearly describe how your business will solve a particular problem of your target audience and make a profit, your business plan is set on a faulty foundation.
Avoid using the executive summary to hype your business, instead, focus on helping the reader understand the what and how of your plan.
View the executive summary as an opportunity to introduce your vision for your company. You know your executive summary is powerful when it can answer these key questions:
- Who is your target audience?
- What sector or industry are you in?
- What are your products and services?
- What is the future of your industry?
- Is your company scaleable?
- Who are the owners and leaders of your company? What are their backgrounds and experience levels?
- What is the motivation for starting your company?
- What are the next steps?
Writing the executive summary last although it is the most important section of your business plan is an excellent idea. The reason why is because it is a high-level overview of your business plan. It is the section that determines whether potential investors and lenders will read further or not.
The executive summary can be a stand-alone document that covers everything in your business plan. It is not uncommon for investors to request only the executive summary when evaluating your business. If the information in the executive summary impresses them, they will ask for the complete business plan.
If you are writing your business plan for your planning purposes, you do not need to write the executive summary.
2. Add Your Company Overview
The company overview or description is the next section in your business plan after the executive summary. It describes what your business does.
Adding your company overview can be tricky especially when your business is still in the planning stages. Existing businesses can easily summarize their current operations but may encounter difficulties trying to explain what they plan to become.
Your company overview should contain the following:
- What products and services you will provide
- Geographical markets and locations your company have a presence
- What you need to run your business
- Who your target audience or customers are
- Who will service your customers
- Your company’s purpose, mission, and vision
- Information about your company’s founders
- Who the founders are
- Notable achievements of your company so far
When creating a company overview, you have to focus on three basics: identifying your industry, identifying your customer, and explaining the problem you solve.
If you are stuck when creating your company overview, try to answer some of these questions that pertain to you.
- Who are you targeting? (The answer is not everyone)
- What pain point does your product or service solve for your customers that they will be willing to spend money on resolving?
- How does your product or service overcome that pain point?
- Where is the location of your business?
- What products, equipment, and services do you need to run your business?
- How is your company’s product or service different from your competition in the eyes of your customers?
- How many employees do you need and what skills do you require them to have?
After answering some or all of these questions, you will get more than enough information you need to write your company overview or description section. When writing this section, describe what your company does for your customers.
![management example in business plan It describes what your business does](https://www.founderjar.com/wp-content/uploads/2021/07/Company-Description-describes-what-your-business-does.jpg)
The company description or overview section contains three elements: mission statement, history, and objectives.
- Mission Statement
The mission statement refers to the reason why your business or company is existing. It goes beyond what you do or sell, it is about the ‘why’. A good mission statement should be emotional and inspirational.
Your mission statement should follow the KISS rule (Keep It Simple, Stupid). For example, Shopify’s mission statement is “Make commerce better for everyone.”
When describing your company’s history, make it simple and avoid the temptation of tying it to a defensive narrative. Write it in the manner you would a profile. Your company’s history should include the following information:
- Founding Date
- Major Milestones
- Location(s)
- Flagship Products or Services
- Number of Employees
- Executive Leadership Roles
When you fill in this information, you use it to write one or two paragraphs about your company’s history.
Business Objectives
Your business objective must be SMART (specific, measurable, achievable, realistic, and time-bound.) Failure to clearly identify your business objectives does not inspire confidence and makes it hard for your team members to work towards a common purpose.
3. Perform Market and Competitive Analyses to Proof a Big Enough Business Opportunity
The third step in writing a business plan is the market and competitive analysis section. Every business, no matter the size, needs to perform comprehensive market and competitive analyses before it enters into a market.
Performing market and competitive analyses are critical for the success of your business. It helps you avoid entering the right market with the wrong product, or vice versa. Anyone reading your business plans, especially financiers and financial institutions will want to see proof that there is a big enough business opportunity you are targeting.
This section is where you describe the market and industry you want to operate in and show the big opportunities in the market that your business can leverage to make a profit. If you noticed any unique trends when doing your research, show them in this section.
Market analysis alone is not enough, you have to add competitive analysis to strengthen this section. There are already businesses in the industry or market, how do you plan to take a share of the market from them?
You have to clearly illustrate the competitive landscape in your business plan. Are there areas your competitors are doing well? Are there areas where they are not doing so well? Show it.
Make it clear in this section why you are moving into the industry and what weaknesses are present there that you plan to explain. How are your competitors going to react to your market entry? How do you plan to get customers? Do you plan on taking your competitors' competitors, tap into other sources for customers, or both?
Illustrate the competitive landscape as well. What are your competitors doing well and not so well?
Answering these questions and thoughts will aid your market and competitive analysis of the opportunities in your space. Depending on how sophisticated your industry is, or the expectations of your financiers, you may need to carry out a more comprehensive market and competitive analysis to prove that big business opportunity.
Instead of looking at the market and competitive analyses as one entity, separating them will make the research even more comprehensive.
Market Analysis
Market analysis, boarding speaking, refers to research a business carried out on its industry, market, and competitors. It helps businesses gain a good understanding of their target market and the outlook of their industry. Before starting a company, it is vital to carry out market research to find out if the market is viable.
![management example in business plan Market Analysis for Online Business](https://www.founderjar.com/wp-content/uploads/2021/07/Market-Analysis-for-Online-Business.jpg)
The market analysis section is a key part of the business plan. It is the section where you identify who your best clients or customers are. You cannot omit this section, without it your business plan is incomplete.
A good market analysis will tell your readers how you fit into the existing market and what makes you stand out. This section requires in-depth research, it will probably be the most time-consuming part of the business plan to write.
- Market Research
To create a compelling market analysis that will win over investors and financial institutions, you have to carry out thorough market research . Your market research should be targeted at your primary target market for your products or services. Here is what you want to find out about your target market.
- Your target market’s needs or pain points
- The existing solutions for their pain points
- Geographic Location
- Demographics
The purpose of carrying out a marketing analysis is to get all the information you need to show that you have a solid and thorough understanding of your target audience.
Only after you have fully understood the people you plan to sell your products or services to, can you evaluate correctly if your target market will be interested in your products or services.
You can easily convince interested parties to invest in your business if you can show them you thoroughly understand the market and show them that there is a market for your products or services.
How to Quantify Your Target Market
One of the goals of your marketing research is to understand who your ideal customers are and their purchasing power. To quantify your target market, you have to determine the following:
- Your Potential Customers: They are the people you plan to target. For example, if you sell accounting software for small businesses , then anyone who runs an enterprise or large business is unlikely to be your customers. Also, individuals who do not have a business will most likely not be interested in your product.
- Total Households: If you are selling household products such as heating and air conditioning systems, determining the number of total households is more important than finding out the total population in the area you want to sell to. The logic is simple, people buy the product but it is the household that uses it.
- Median Income: You need to know the median income of your target market. If you target a market that cannot afford to buy your products and services, your business will not last long.
- Income by Demographics: If your potential customers belong to a certain age group or gender, determining income levels by demographics is necessary. For example, if you sell men's clothes, your target audience is men.
What Does a Good Market Analysis Entail?
Your business does not exist on its own, it can only flourish within an industry and alongside competitors. Market analysis takes into consideration your industry, target market, and competitors. Understanding these three entities will drastically improve your company’s chances of success.
![management example in business plan Market Analysis Steps](https://www.founderjar.com/wp-content/uploads/2021/07/Market-Analysis-Steps.jpg)
You can view your market analysis as an examination of the market you want to break into and an education on the emerging trends and themes in that market. Good market analyses include the following:
- Industry Description. You find out about the history of your industry, the current and future market size, and who the largest players/companies are in your industry.
- Overview of Target Market. You research your target market and its characteristics. Who are you targeting? Note, it cannot be everyone, it has to be a specific group. You also have to find out all information possible about your customers that can help you understand how and why they make buying decisions.
- Size of Target Market: You need to know the size of your target market, how frequently they buy, and the expected quantity they buy so you do not risk overproducing and having lots of bad inventory. Researching the size of your target market will help you determine if it is big enough for sustained business or not.
- Growth Potential: Before picking a target market, you want to be sure there are lots of potential for future growth. You want to avoid going for an industry that is declining slowly or rapidly with almost zero growth potential.
- Market Share Potential: Does your business stand a good chance of taking a good share of the market?
- Market Pricing and Promotional Strategies: Your market analysis should give you an idea of the price point you can expect to charge for your products and services. Researching your target market will also give you ideas of pricing strategies you can implement to break into the market or to enjoy maximum profits.
- Potential Barriers to Entry: One of the biggest benefits of conducting market analysis is that it shows you every potential barrier to entry your business will likely encounter. It is a good idea to discuss potential barriers to entry such as changing technology. It informs readers of your business plan that you understand the market.
- Research on Competitors: You need to know the strengths and weaknesses of your competitors and how you can exploit them for the benefit of your business. Find patterns and trends among your competitors that make them successful, discover what works and what doesn’t, and see what you can do better.
The market analysis section is not just for talking about your target market, industry, and competitors. You also have to explain how your company can fill the hole you have identified in the market.
Here are some questions you can answer that can help you position your product or service in a positive light to your readers.
- Is your product or service of superior quality?
- What additional features do you offer that your competitors do not offer?
- Are you targeting a ‘new’ market?
Basically, your market analysis should include an analysis of what already exists in the market and an explanation of how your company fits into the market.
Competitive Analysis
In the competitive analysis section, y ou have to understand who your direct and indirect competitions are, and how successful they are in the marketplace. It is the section where you assess the strengths and weaknesses of your competitors, the advantage(s) they possess in the market and show the unique features or qualities that make you different from your competitors.
![management example in business plan Four Steps to Create a Competitive Marketing Analysis](https://www.founderjar.com/wp-content/uploads/2021/07/Four-Steps-to-Create-a-Competitive-Marketing-Analysis.jpg)
Many businesses do market analysis and competitive analysis together. However, to fully understand what the competitive analysis entails, it is essential to separate it from the market analysis.
Competitive analysis for your business can also include analysis on how to overcome barriers to entry in your target market.
The primary goal of conducting a competitive analysis is to distinguish your business from your competitors. A strong competitive analysis is essential if you want to convince potential funding sources to invest in your business. You have to show potential investors and lenders that your business has what it takes to compete in the marketplace successfully.
Competitive analysis will s how you what the strengths of your competition are and what they are doing to maintain that advantage.
When doing your competitive research, you first have to identify your competitor and then get all the information you can about them. The idea of spending time to identify your competitor and learn everything about them may seem daunting but it is well worth it.
Find answers to the following questions after you have identified who your competitors are.
- What are your successful competitors doing?
- Why is what they are doing working?
- Can your business do it better?
- What are the weaknesses of your successful competitors?
- What are they not doing well?
- Can your business turn its weaknesses into strengths?
- How good is your competitors’ customer service?
- Where do your competitors invest in advertising?
- What sales and pricing strategies are they using?
- What marketing strategies are they using?
- What kind of press coverage do they get?
- What are their customers saying about your competitors (both the positive and negative)?
If your competitors have a website, it is a good idea to visit their websites for more competitors’ research. Check their “About Us” page for more information.
![management example in business plan How to Perform Competitive Analysis](https://www.founderjar.com/wp-content/uploads/2021/07/How-to-Perform-Competitive-Analysis.jpg)
If you are presenting your business plan to investors, you need to clearly distinguish yourself from your competitors. Investors can easily tell when you have not properly researched your competitors.
Take time to think about what unique qualities or features set you apart from your competitors. If you do not have any direct competition offering your product to the market, it does not mean you leave out the competitor analysis section blank. Instead research on other companies that are providing a similar product, or whose product is solving the problem your product solves.
The next step is to create a table listing the top competitors you want to include in your business plan. Ensure you list your business as the last and on the right. What you just created is known as the competitor analysis table.
Direct vs Indirect Competition
You cannot know if your product or service will be a fit for your target market if you have not understood your business and the competitive landscape.
There is no market you want to target where you will not encounter competition, even if your product is innovative. Including competitive analysis in your business plan is essential.
If you are entering an established market, you need to explain how you plan to differentiate your products from the available options in the market. Also, include a list of few companies that you view as your direct competitors The competition you face in an established market is your direct competition.
In situations where you are entering a market with no direct competition, it does not mean there is no competition there. Consider your indirect competition that offers substitutes for the products or services you offer.
For example, if you sell an innovative SaaS product, let us say a project management software , a company offering time management software is your indirect competition.
There is an easy way to find out who your indirect competitors are in the absence of no direct competitors. You simply have to research how your potential customers are solving the problems that your product or service seeks to solve. That is your direct competition.
Factors that Differentiate Your Business from the Competition
There are three main factors that any business can use to differentiate itself from its competition. They are cost leadership, product differentiation, and market segmentation.
1. Cost Leadership
A strategy you can impose to maximize your profits and gain an edge over your competitors. It involves offering lower prices than what the majority of your competitors are offering.
A common practice among businesses looking to enter into a market where there are dominant players is to use free trials or pricing to attract as many customers as possible to their offer.
2. Product Differentiation
Your product or service should have a unique selling proposition (USP) that your competitors do not have or do not stress in their marketing.
Part of the marketing strategy should involve making your products unique and different from your competitors. It does not have to be different from your competitors, it can be the addition to a feature or benefit that your competitors do not currently have.
3. Market Segmentation
As a new business seeking to break into an industry, you will gain more success from focusing on a specific niche or target market, and not the whole industry.
If your competitors are focused on a general need or target market, you can differentiate yourself from them by having a small and hyper-targeted audience. For example, if your competitors are selling men’s clothes in their online stores , you can sell hoodies for men.
4. Define Your Business and Management Structure
The next step in your business plan is your business and management structure. It is the section where you describe the legal structure of your business and the team running it.
Your business is only as good as the management team that runs it, while the management team can only strive when there is a proper business and management structure in place.
If your company is a sole proprietor or a limited liability company (LLC), a general or limited partnership, or a C or an S corporation, state it clearly in this section.
Use an organizational chart to show the management structure in your business. Clearly show who is in charge of what area in your company. It is where you show how each key manager or team leader’s unique experience can contribute immensely to the success of your company. You can also opt to add the resumes and CVs of the key players in your company.
The business and management structure section should show who the owner is, and other owners of the businesses (if the business has other owners). For businesses or companies with multiple owners, include the percent ownership of the various owners and clearly show the extent of each others’ involvement in the company.
Investors want to know who is behind the company and the team running it to determine if it has the right management to achieve its set goals.
Management Team
The management team section is where you show that you have the right team in place to successfully execute the business operations and ideas. Take time to create the management structure for your business. Think about all the important roles and responsibilities that you need managers for to grow your business.
Include brief bios of each key team member and ensure you highlight only the relevant information that is needed. If your team members have background industry experience or have held top positions for other companies and achieved success while filling that role, highlight it in this section.
![management example in business plan Create Management Team For Business Plan](https://www.founderjar.com/wp-content/uploads/2021/07/Create-Management-Team-For-Business-Plan.jpg)
A common mistake that many startups make is assigning C-level titles such as (CMO and CEO) to everyone on their team. It is unrealistic for a small business to have those titles. While it may look good on paper for the ego of your team members, it can prevent investors from investing in your business.
Instead of building an unrealistic management structure that does not fit your business reality, it is best to allow business titles to grow as the business grows. Starting everyone at the top leaves no room for future change or growth, which is bad for productivity.
Your management team does not have to be complete before you start writing your business plan. You can have a complete business plan even when there are managerial positions that are empty and need filling.
If you have management gaps in your team, simply show the gaps and indicate you are searching for the right candidates for the role(s). Investors do not expect you to have a full management team when you are just starting your business.
Key Questions to Answer When Structuring Your Management Team
- Who are the key leaders?
- What experiences, skills, and educational backgrounds do you expect your key leaders to have?
- Do your key leaders have industry experience?
- What positions will they fill and what duties will they perform in those positions?
- What level of authority do the key leaders have and what are their responsibilities?
- What is the salary for the various management positions that will attract the ideal candidates?
Additional Tips for Writing the Management Structure Section
1. Avoid Adding ‘Ghost’ Names to Your Management Team
There is always that temptation to include a ‘ghost’ name to your management team to attract and influence investors to invest in your business. Although the presence of these celebrity management team members may attract the attention of investors, it can cause your business to lose any credibility if you get found out.
Seasoned investors will investigate further the members of your management team before committing fully to your business If they find out that the celebrity name used does not play any actual role in your business, they will not invest and may write you off as dishonest.
2. Focus on Credentials But Pay Extra Attention to the Roles
Investors want to know the experience that your key team members have to determine if they can successfully reach the company’s growth and financial goals.
While it is an excellent boost for your key management team to have the right credentials, you also want to pay extra attention to the roles they will play in your company.
Organizational Chart
![management example in business plan Organizational chart Infographic](https://www.founderjar.com/wp-content/uploads/2021/07/An-organizational-chart-helps-to-identify-how-best-to-structure-your-management-team.jpg)
Adding an organizational chart in this section of your business plan is not necessary, you can do it in your business plan’s appendix.
If you are exploring funding options, it is not uncommon to get asked for your organizational chart. The function of an organizational chart goes beyond raising money, you can also use it as a useful planning tool for your business.
An organizational chart can help you identify how best to structure your management team for maximum productivity and point you towards key roles you need to fill in the future.
You can use the organizational chart to show your company’s internal management structure such as the roles and responsibilities of your management team, and relationships that exist between them.
5. Describe Your Product and Service Offering
In your business plan, you have to describe what you sell or the service you plan to offer. It is the next step after defining your business and management structure. The products and services section is where you sell the benefits of your business.
Here you have to explain how your product or service will benefit your customers and describe your product lifecycle. It is also the section where you write down your plans for intellectual property like patent filings and copyrighting.
The research and development that you are undertaking for your product or service need to be explained in detail in this section. However, do not get too technical, sell the general idea and its benefits.
If you have any diagrams or intricate designs of your product or service, do not include them in the products and services section. Instead, leave them for the addendum page. Also, if you are leaving out diagrams or designs for the addendum, ensure you add this phrase “For more detail, visit the addendum Page #.”
Your product and service section in your business plan should include the following:
- A detailed explanation that clearly shows how your product or service works.
- The pricing model for your product or service.
- Your business’ sales and distribution strategy.
- The ideal customers that want your product or service.
- The benefits of your products and services.
- Reason(s) why your product or service is a better alternative to what your competitors are currently offering in the market.
- Plans for filling the orders you receive
- If you have current or pending patents, copyrights, and trademarks for your product or service, you can also discuss them in this section.
What to Focus On When Describing the Benefits, Lifecycle, and Production Process of Your Products or Services
In the products and services section, you have to distill the benefits, lifecycle, and production process of your products and services.
When describing the benefits of your products or services, here are some key factors to focus on.
- Unique features
- Translating the unique features into benefits
- The emotional, psychological, and practical payoffs to attract customers
- Intellectual property rights or any patents
When describing the product life cycle of your products or services, here are some key factors to focus on.
- Upsells, cross-sells, and down-sells
- Time between purchases
- Plans for research and development.
When describing the production process for your products or services, you need to think about the following:
- The creation of new or existing products and services.
- The sources for the raw materials or components you need for production.
- Assembling the products
- Maintaining quality control
- Supply-chain logistics (receiving the raw materials and delivering the finished products)
- The day-to-day management of the production processes, bookkeeping, and inventory.
Tips for Writing the Products or Services Section of Your Business Plan
1. Avoid Technical Descriptions and Industry Buzzwords
The products and services section of your business plan should clearly describe the products and services that your company provides. However, it is not a section to include technical jargons that anyone outside your industry will not understand.
A good practice is to remove highly detailed or technical descriptions in favor of simple terms. Industry buzzwords are not necessary, if there are simpler terms you can use, then use them. If you plan to use your business plan to source funds, making the product or service section so technical will do you no favors.
2. Describe How Your Products or Services Differ from Your Competitors
When potential investors look at your business plan, they want to know how the products and services you are offering differ from that of your competition. Differentiating your products or services from your competition in a way that makes your solution more attractive is critical.
If you are going the innovative path and there is no market currently for your product or service, you need to describe in this section why the market needs your product or service.
For example, overnight delivery was a niche business that only a few companies were participating in. Federal Express (FedEx) had to show in its business plan that there was a large opportunity for that service and they justified why the market needed that service.
3. Long or Short Products or Services Section
Should your products or services section be short? Does the long products or services section attract more investors?
There are no straightforward answers to these questions. Whether your products or services section should be long or relatively short depends on the nature of your business.
If your business is product-focused, then automatically you need to use more space to describe the details of your products. However, if the product your business sells is a commodity item that relies on competitive pricing or other pricing strategies, you do not have to use up so much space to provide significant details about the product.
Likewise, if you are selling a commodity that is available in numerous outlets, then you do not have to spend time on writing a long products or services section.
The key to the success of your business is most likely the effectiveness of your marketing strategies compared to your competitors. Use more space to address that section.
If you are creating a new product or service that the market does not know about, your products or services section can be lengthy. The reason why is because you need to explain everything about the product or service such as the nature of the product, its use case, and values.
A short products or services section for an innovative product or service will not give the readers enough information to properly evaluate your business.
4. Describe Your Relationships with Vendors or Suppliers
Your business will rely on vendors or suppliers to supply raw materials or the components needed to make your products. In your products and services section, describe your relationships with your vendors and suppliers fully.
Avoid the mistake of relying on only one supplier or vendor. If that supplier or vendor fails to supply or goes out of business, you can easily face supply problems and struggle to meet your demands. Plan to set up multiple vendor or supplier relationships for better business stability.
5. Your Primary Goal Is to Convince Your Readers
The primary goal of your business plan is to convince your readers that your business is viable and to create a guide for your business to follow. It applies to the products and services section.
When drafting this section, think like the reader. See your reader as someone who has no idea about your products and services. You are using the products and services section to provide the needed information to help your reader understand your products and services. As a result, you have to be clear and to the point.
While you want to educate your readers about your products or services, you also do not want to bore them with lots of technical details. Show your products and services and not your fancy choice of words.
Your products and services section should provide the answer to the “what” question for your business. You and your management team may run the business, but it is your products and services that are the lifeblood of the business.
Key Questions to Answer When Writing your Products and Services Section
Answering these questions can help you write your products and services section quickly and in a way that will appeal to your readers.
- Are your products existing on the market or are they still in the development stage?
- What is your timeline for adding new products and services to the market?
- What are the positives that make your products and services different from your competitors?
- Do your products and services have any competitive advantage that your competitors’ products and services do not currently have?
- Do your products or services have any competitive disadvantages that you need to overcome to compete with your competitors? If your answer is yes, state how you plan to overcome them,
- How much does it cost to produce your products or services? How much do you plan to sell it for?
- What is the price for your products and services compared to your competitors? Is pricing an issue?
- What are your operating costs and will it be low enough for you to compete with your competitors and still take home a reasonable profit margin?
- What is your plan for acquiring your products? Are you involved in the production of your products or services?
- Are you the manufacturer and produce all the components you need to create your products? Do you assemble your products by using components supplied by other manufacturers? Do you purchase your products directly from suppliers or wholesalers?
- Do you have a steady supply of products that you need to start your business? (If your business is yet to kick-off)
- How do you plan to distribute your products or services to the market?
You can also hint at the marketing or promotion plans you have for your products or services such as how you plan to build awareness or retain customers. The next section is where you can go fully into details about your business’s marketing and sales plan.
6. Show and Explain Your Marketing and Sales Plan
Providing great products and services is wonderful, but it means nothing if you do not have a marketing and sales plan to inform your customers about them. Your marketing and sales plan is critical to the success of your business.
The sales and marketing section is where you show and offer a detailed explanation of your marketing and sales plan and how you plan to execute it. It covers your pricing plan, proposed advertising and promotion activities, activities and partnerships you need to make your business a success, and the benefits of your products and services.
There are several ways you can approach your marketing and sales strategy. Ideally, your marketing and sales strategy has to fit the unique needs of your business.
In this section, you describe how the plans your business has for attracting and retaining customers, and the exact process for making a sale happen. It is essential to thoroughly describe your complete marketing and sales plans because you are still going to reference this section when you are making financial projections for your business.
Outline Your Business’ Unique Selling Proposition (USP)
![management example in business plan Unique Selling Proposition (USP)](https://www.founderjar.com/wp-content/uploads/2021/07/Unique-Selling-Proposition-USP.jpg)
The sales and marketing section is where you outline your business’s unique selling proposition (USP). When you are developing your unique selling proposition, think about the strongest reasons why people should buy from you over your competition. That reason(s) is most likely a good fit to serve as your unique selling proposition (USP).
Target Market and Target Audience
Plans on how to get your products or services to your target market and how to get your target audience to buy them go into this section. You also highlight the strengths of your business here, particularly what sets them apart from your competition.
![management example in business plan Target Market Vs Target Audience](https://www.founderjar.com/wp-content/uploads/2021/07/Target-Market-Vs-Target-Audience.jpg)
Before you start writing your marketing and sales plan, you need to have properly defined your target audience and fleshed out your buyer persona. If you do not first understand the individual you are marketing to, your marketing and sales plan will lack any substance and easily fall.
Creating a Smart Marketing and Sales Plan
Marketing your products and services is an investment that requires you to spend money. Like any other investment, you have to generate a good return on investment (ROI) to justify using that marketing and sales plan. Good marketing and sales plans bring in high sales and profits to your company.
Avoid spending money on unproductive marketing channels. Do your research and find out the best marketing and sales plan that works best for your company.
Your marketing and sales plan can be broken into different parts: your positioning statement, pricing, promotion, packaging, advertising, public relations, content marketing, social media, and strategic alliances.
Your Positioning Statement
Your positioning statement is the first part of your marketing and sales plan. It refers to the way you present your company to your customers.
Are you the premium solution, the low-price solution, or are you the intermediary between the two extremes in the market? What do you offer that your competitors do not that can give you leverage in the market?
Before you start writing your positioning statement, you need to spend some time evaluating the current market conditions. Here are some questions that can help you to evaluate the market
- What are the unique features or benefits that you offer that your competitors lack?
- What are your customers’ primary needs and wants?
- Why should a customer choose you over your competition? How do you plan to differentiate yourself from the competition?
- How does your company’s solution compare with other solutions in the market?
After answering these questions, then you can start writing your positioning statement. Your positioning statement does not have to be in-depth or too long.
All you need to explain with your positioning statement are two focus areas. The first is the position of your company within the competitive landscape. The other focus area is the core value proposition that sets your company apart from other alternatives that your ideal customer might consider.
Here is a simple template you can use to develop a positioning statement.
For [description of target market] who [need of target market], [product or service] [how it meets the need]. Unlike [top competition], it [most essential distinguishing feature].
For example, let’s create the positioning statement for fictional accounting software and QuickBooks alternative , TBooks.
“For small business owners who need accounting services, TBooks is an accounting software that helps small businesses handle their small business bookkeeping basics quickly and easily. Unlike Wave, TBooks gives small businesses access to live sessions with top accountants.”
You can edit this positioning statement sample and fill it with your business details.
After writing your positioning statement, the next step is the pricing of your offerings. The overall positioning strategy you set in your positioning statement will often determine how you price your products or services.
Pricing is a powerful tool that sends a strong message to your customers. Failure to get your pricing strategy right can make or mar your business. If you are targeting a low-income audience, setting a premium price can result in low sales.
You can use pricing to communicate your positioning to your customers. For example, if you are offering a product at a premium price, you are sending a message to your customers that the product belongs to the premium category.
Basic Rules to Follow When Pricing Your Offering
Setting a price for your offering involves more than just putting a price tag on it. Deciding on the right pricing for your offering requires following some basic rules. They include covering your costs, primary and secondary profit center pricing, and matching the market rate.
- Covering Your Costs: The price you set for your products or service should be more than it costs you to produce and deliver them. Every business has the same goal, to make a profit. Depending on the strategy you want to use, there are exceptions to this rule. However, the vast majority of businesses follow this rule.
- Primary and Secondary Profit Center Pricing: When a company sets its price above the cost of production, it is making that product its primary profit center. A company can also decide not to make its initial price its primary profit center by selling below or at even with its production cost. It rather depends on the support product or even maintenance that is associated with the initial purchase to make its profit. The initial price thus became its secondary profit center.
- Matching the Market Rate: A good rule to follow when pricing your products or services is to match your pricing with consumer demand and expectations. If you price your products or services beyond the price your customer perceives as the ideal price range, you may end up with no customers. Pricing your products too low below what your customer perceives as the ideal price range may lead to them undervaluing your offering.
Pricing Strategy
Your pricing strategy influences the price of your offering. There are several pricing strategies available for you to choose from when examining the right pricing strategy for your business. They include cost-plus pricing, market-based pricing, value pricing, and more.
![management example in business plan Pricing strategy influences the price of offering](https://www.founderjar.com/wp-content/uploads/2021/07/Pricing-strategy-influences-the-price-of-offering.jpg)
- Cost-plus Pricing: This strategy is one of the simplest and oldest pricing strategies. Here you consider the cost of producing a unit of your product and then add a profit to it to arrive at your market price. It is an effective pricing strategy for manufacturers because it helps them cover their initial costs. Another name for the cost-plus pricing strategy is the markup pricing strategy.
- Market-based Pricing: This pricing strategy analyses the market including competitors’ pricing and then sets a price based on what the market is expecting. With this pricing strategy, you can either set your price at the low-end or high-end of the market.
- Value Pricing: This pricing strategy involves setting a price based on the value you are providing to your customer. When adopting a value-based pricing strategy, you have to set a price that your customers are willing to pay. Service-based businesses such as small business insurance providers , luxury goods sellers, and the fashion industry use this pricing strategy.
After carefully sorting out your positioning statement and pricing, the next item to look at is your promotional strategy. Your promotional strategy explains how you plan on communicating with your customers and prospects.
As a business, you must measure all your costs, including the cost of your promotions. You also want to measure how much sales your promotions bring for your business to determine its usefulness. Promotional strategies or programs that do not lead to profit need to be removed.
There are different types of promotional strategies you can adopt for your business, they include advertising, public relations, and content marketing.
Advertising
Your business plan should include your advertising plan which can be found in the marketing and sales plan section. You need to include an overview of your advertising plans such as the areas you plan to spend money on to advertise your business and offers.
Ensure that you make it clear in this section if your business will be advertising online or using the more traditional offline media, or the combination of both online and offline media. You can also include the advertising medium you want to use to raise awareness about your business and offers.
Some common online advertising mediums you can use include social media ads, landing pages, sales pages, SEO, Pay-Per-Click, emails, Google Ads, and others. Some common traditional and offline advertising mediums include word of mouth, radios, direct mail, televisions, flyers, billboards, posters, and others.
A key component of your advertising strategy is how you plan to measure the effectiveness and success of your advertising campaign. There is no point in sticking with an advertising plan or medium that does not produce results for your business in the long run.
Public Relations
A great way to reach your customers is to get the media to cover your business or product. Publicity, especially good ones, should be a part of your marketing and sales plan. In this section, show your plans for getting prominent reviews of your product from reputable publications and sources.
Your business needs that exposure to grow. If public relations is a crucial part of your promotional strategy, provide details about your public relations plan here.
Content Marketing
Content marketing is a popular promotional strategy used by businesses to inform and attract their customers. It is about teaching and educating your prospects on various topics of interest in your niche, it does not just involve informing them about the benefits and features of the products and services you have,
![management example in business plan The Benefits of Content Marketing](https://www.founderjar.com/wp-content/uploads/2021/07/The-Benefits-of-Content-Marketing.jpg)
Businesses publish content usually for free where they provide useful information, tips, and advice so that their target market can be made aware of the importance of their products and services. Content marketing strategies seek to nurture prospects into buyers over time by simply providing value.
Your company can create a blog where it will be publishing content for its target market. You will need to use the best website builder such as Wix and Squarespace and the best web hosting services such as Bluehost, Hostinger, and other Bluehost alternatives to create a functional blog or website.
If content marketing is a crucial part of your promotional strategy (as it should be), detail your plans under promotions.
Including high-quality images of the packaging of your product in your business plan is a lovely idea. You can add the images of the packaging of that product in the marketing and sales plan section. If you are not selling a product, then you do not need to include any worry about the physical packaging of your product.
When organizing the packaging section of your business plan, you can answer the following questions to make maximum use of this section.
- Is your choice of packaging consistent with your positioning strategy?
- What key value proposition does your packaging communicate? (It should reflect the key value proposition of your business)
- How does your packaging compare to that of your competitors?
Social Media
Your 21st-century business needs to have a good social media presence. Not having one is leaving out opportunities for growth and reaching out to your prospect.
You do not have to join the thousands of social media platforms out there. What you need to do is join the ones that your customers are active on and be active there.
![management example in business plan Most popular social media platforms](https://www.founderjar.com/wp-content/uploads/2021/07/Most-popular-social-media-platforms.jpg)
Businesses use social media to provide information about their products such as promotions, discounts, the benefits of their products, and content on their blogs.
Social media is also a platform for engaging with your customers and getting feedback about your products or services. Make no mistake, more and more of your prospects are using social media channels to find more information about companies.
You need to consider the social media channels you want to prioritize your business (prioritize the ones your customers are active in) and your branding plans in this section.
![management example in business plan Choosing the right social media platform](https://www.founderjar.com/wp-content/uploads/2021/07/Choosing-the-right-social-media-platform.jpg)
Strategic Alliances
If your company plans to work closely with other companies as part of your sales and marketing plan, include it in this section. Prove details about those partnerships in your business plan if you have already established them.
Strategic alliances can be beneficial for all parties involved including your company. Working closely with another company in the form of a partnership can provide access to a different target market segment for your company.
The company you are partnering with may also gain access to your target market or simply offer a new product or service (that of your company) to its customers.
Mutually beneficial partnerships can cover the weaknesses of one company with the strength of another. You should consider strategic alliances with companies that sell complimentary products to yours. For example, if you provide printers, you can partner with a company that produces ink since the customers that buy printers from you will also need inks for printing.
Steps Involved in Creating a Marketing and Sales Plan
1. Focus on Your Target Market
Identify who your customers are, the market you want to target. Then determine the best ways to get your products or services to your potential customers.
2. Evaluate Your Competition
One of the goals of having a marketing plan is to distinguish yourself from your competition. You cannot stand out from them without first knowing them in and out.
You can know your competitors by gathering information about their products, pricing, service, and advertising campaigns.
These questions can help you know your competition.
- What makes your competition successful?
- What are their weaknesses?
- What are customers saying about your competition?
3. Consider Your Brand
Customers' perception of your brand has a strong impact on your sales. Your marketing and sales plan should seek to bolster the image of your brand. Before you start marketing your business, think about the message you want to pass across about your business and your products and services.
4. Focus on Benefits
The majority of your customers do not view your product in terms of features, what they want to know is the benefits and solutions your product offers. Think about the problems your product solves and the benefits it delivers, and use it to create the right sales and marketing message.
Your marketing plan should focus on what you want your customer to get instead of what you provide. Identify those benefits in your marketing and sales plan.
5. Focus on Differentiation
Your marketing and sales plan should look for a unique angle they can take that differentiates your business from the competition, even if the products offered are similar. Some good areas of differentiation you can use are your benefits, pricing, and features.
Key Questions to Answer When Writing Your Marketing and Sales Plan
- What is your company’s budget for sales and marketing campaigns?
- What key metrics will you use to determine if your marketing plans are successful?
- What are your alternatives if your initial marketing efforts do not succeed?
- Who are the sales representatives you need to promote your products or services?
- What are the marketing and sales channels you plan to use? How do you plan to get your products in front of your ideal customers?
- Where will you sell your products?
You may want to include samples of marketing materials you plan to use such as print ads, website descriptions, and social media ads. While it is not compulsory to include these samples, it can help you better communicate your marketing and sales plan and objectives.
The purpose of the marketing and sales section is to answer this question “How will you reach your customers?” If you cannot convincingly provide an answer to this question, you need to rework your marketing and sales section.
7. Clearly Show Your Funding Request
If you are writing your business plan to ask for funding from investors or financial institutions, the funding request section is where you will outline your funding requirements. The funding request section should answer the question ‘How much money will your business need in the near future (3 to 5 years)?’
A good funding request section will clearly outline and explain the amount of funding your business needs over the next five years. You need to know the amount of money your business needs to make an accurate funding request.
Also, when writing your funding request, provide details of how the funds will be used over the period. Specify if you want to use the funds to buy raw materials or machinery, pay salaries, pay for advertisements, and cover specific bills such as rent and electricity.
In addition to explaining what you want to use the funds requested for, you need to clearly state the projected return on investment (ROI) . Investors and creditors want to know if your business can generate profit for them if they put funds into it.
Ensure you do not inflate the figures and stay as realistic as possible. Investors and financial institutions you are seeking funds from will do their research before investing money in your business.
If you are not sure of an exact number to request from, you can use some range of numbers as rough estimates. Add a best-case scenario and a work-case scenario to your funding request. Also, include a description of your strategic future financial plans such as selling your business or paying off debts.
Funding Request: Debt or Equity?
When making your funding request, specify the type of funding you want. Do you want debt or equity? Draw out the terms that will be applicable for the funding, and the length of time the funding request will cover.
Case for Equity
If your new business has not yet started generating profits, you are most likely preparing to sell equity in your business to raise capital at the early stage. Equity here refers to ownership. In this case, you are selling a portion of your company to raise capital.
Although this method of raising capital for your business does not put your business in debt, keep in mind that an equity owner may expect to play a key role in company decisions even if he does not hold a major stake in the company.
Most equity sales for startups are usually private transactions . If you are making a funding request by offering equity in exchange for funding, let the investor know that they will be paid a dividend (a share of the company’s profit). Also, let the investor know the process for selling their equity in your business.
Case for Debt
You may decide not to offer equity in exchange for funds, instead, you make a funding request with the promise to pay back the money borrowed at the agreed time frame.
When making a funding request with an agreement to pay back, note that you will have to repay your creditors both the principal amount borrowed and the interest on it. Financial institutions offer this type of funding for businesses.
Large companies combine both equity and debt in their capital structure. When drafting your business plan, decide if you want to offer both or one over the other.
Before you sell equity in exchange for funding in your business, consider if you are willing to accept not being in total control of your business. Also, before you seek loans in your funding request section, ensure that the terms of repayment are favorable.
You should set a clear timeline in your funding request so that potential investors and creditors can know what you are expecting. Some investors and creditors may agree to your funding request and then delay payment for longer than 30 days, meanwhile, your business needs an immediate cash injection to operate efficiently.
Additional Tips for Writing the Funding Request Section of your Business Plan
The funding request section is not necessary for every business, it is only needed by businesses who plan to use their business plan to secure funding.
If you are adding the funding request section to your business plan, provide an itemized summary of how you plan to use the funds requested. Hiring a lawyer, accountant, or other professionals may be necessary for the proper development of this section.
You should also gather and use financial statements that add credibility and support to your funding requests. Ensure that the financial statements you use should include your projected financial data such as projected cash flows, forecast statements, and expenditure budgets.
If you are an existing business, include all historical financial statements such as cash flow statements, balance sheets and income statements .
Provide monthly and quarterly financial statements for a year. If your business has records that date back beyond the one-year mark, add the yearly statements of those years. These documents are for the appendix section of your business plan.
8. Detail Your Financial Plan, Metrics, and Projections
If you used the funding request section in your business plan, supplement it with a financial plan, metrics, and projections. This section paints a picture of the past performance of your business and then goes ahead to make an informed projection about its future.
The goal of this section is to convince readers that your business is going to be a financial success. It outlines your business plan to generate enough profit to repay the loan (with interest if applicable) and to generate a decent return on investment for investors.
If you have an existing business already in operation, use this section to demonstrate stability through finance. This section should include your cash flow statements, balance sheets, and income statements covering the last three to five years. If your business has some acceptable collateral that you can use to acquire loans, list it in the financial plan, metrics, and projection section.
Apart from current financial statements, this section should also contain a prospective financial outlook that spans the next five years. Include forecasted income statements, cash flow statements, balance sheets, and capital expenditure budget.
If your business is new and is not yet generating profit, use clear and realistic projections to show the potentials of your business.
When drafting this section, research industry norms and the performance of comparable businesses. Your financial projections should cover at least five years. State the logic behind your financial projections. Remember you can always make adjustments to this section as the variables change.
The financial plan, metrics, and projection section create a baseline which your business can either exceed or fail to reach. If your business fails to reach your projections in this section, you need to understand why it failed.
Investors and loan managers spend a lot of time going through the financial plan, metrics, and projection section compared to other parts of the business plan. Ensure you spend time creating credible financial analyses for your business in this section.
Many entrepreneurs find this section daunting to write. You do not need a business degree to create a solid financial forecast for your business. Business finances, especially for startups, are not as complicated as they seem. There are several online tools and templates that make writing this section so much easier.
Use Graphs and Charts
The financial plan, metrics, and projection section is a great place to use graphs and charts to tell the financial story of your business. Charts and images make it easier to communicate your finances.
Accuracy in this section is key, ensure you carefully analyze your past financial statements properly before making financial projects.
Address the Risk Factors and Show Realistic Financial Projections
Keep your financial plan, metrics, and projection realistic. It is okay to be optimistic in your financial projection, however, you have to justify it.
You should also address the various risk factors associated with your business in this section. Investors want to know the potential risks involved, show them. You should also show your plans for mitigating those risks.
What You Should In The Financial Plan, Metrics, and Projection Section of Your Business Plan
The financial plan, metrics, and projection section of your business plan should have monthly sales and revenue forecasts for the first year. It should also include annual projections that cover 3 to 5 years.
A three-year projection is a basic requirement to have in your business plan. However, some investors may request a five-year forecast.
Your business plan should include the following financial statements: sales forecast, personnel plan, income statement, income statement, cash flow statement, balance sheet, and an exit strategy.
1. Sales Forecast
Sales forecast refers to your projections about the number of sales your business is going to record over the next few years. It is typically broken into several rows, with each row assigned to a core product or service that your business is offering.
One common mistake people make in their business plan is to break down the sales forecast section into long details. A sales forecast should forecast the high-level details.
For example, if you are forecasting sales for a payroll software provider, you could break down your forecast into target market segments or subscription categories.
![management example in business plan Benefits of Sales Forecasting](https://www.founderjar.com/wp-content/uploads/2021/07/Benefits-of-Sales-Forecasting.jpg)
Your sales forecast section should also have a corresponding row for each sales row to cover the direct cost or Cost of Goods Sold (COGS). The objective of these rows is to show the expenses that your business incurs in making and delivering your product or service.
Note that your Cost of Goods Sold (COGS) should only cover those direct costs incurred when making your products. Other indirect expenses such as insurance, salaries, payroll tax, and rent should not be included.
For example, the Cost of Goods Sold (COGS) for a restaurant is the cost of ingredients while for a consulting company it will be the cost of paper and other presentation materials.
![management example in business plan Factors that affect sales forecasting](https://www.founderjar.com/wp-content/uploads/2021/07/Factors-that-affect-sales-forecasting.jpg)
2. Personnel Plan
The personnel plan section is where you provide details about the payment plan for your employees. For a small business, you can easily list every position in your company and how much you plan to pay in the personnel plan.
However, for larger businesses, you have to break the personnel plan into functional groups such as sales and marketing.
The personnel plan will also include the cost of an employee beyond salary, commonly referred to as the employee burden. These costs include insurance, payroll taxes , and other essential costs incurred monthly as a result of having employees on your payroll.
![management example in business plan True HR Cost Infographic](https://www.founderjar.com/wp-content/uploads/2021/07/True-HR-Cost.jpg)
3. Income Statement
The income statement section shows if your business is making a profit or taking a loss. Another name for the income statement is the profit and loss (P&L). It takes data from your sales forecast and personnel plan and adds other ongoing expenses you incur while running your business.
![management example in business plan The income statement section](https://www.founderjar.com/wp-content/uploads/2021/07/The-income-statement-section.jpg)
Every business plan should have an income statement. It subtracts your business expenses from its earnings to show if your business is generating profit or incurring losses.
The income statement has the following items: sales, Cost of Goods Sold (COGS), gross margin, operating expenses, total operating expenses, operating income , total expenses, and net profit.
- Sales refer to the revenue your business generates from selling its products or services. Other names for sales are income or revenue.
- Cost of Goods Sold (COGS) refers to the total cost of selling your products. Other names for COGS are direct costs or cost of sales. Manufacturing businesses use the Costs of Goods Manufactured (COGM) .
- Gross Margin is the figure you get when you subtract your COGS from your sales. In your income statement, you can express it as a percentage of total sales (Gross margin / Sales = Gross Margin Percent).
- Operating Expenses refer to all the expenses you incur from running your business. It exempts the COGS because it stands alone as a core part of your income statement. You also have to exclude taxes, depreciation, and amortization. Your operating expenses include salaries, marketing expenses, research and development (R&D) expenses, and other expenses.
- Total Operating Expenses refers to the sum of all your operating expenses including those exemptions named above under operating expenses.
- Operating Income refers to earnings before interest, taxes, depreciation, and amortization. It is simply known as the acronym EBITDA (earnings before interest, taxes, depreciation, and amortization). Calculating your operating income is simple, all you need to do is to subtract your COGS and total operating expenses from your sales.
- Total Expenses refer to the sum of your operating expenses and your business’ interest, taxes, depreciation, and amortization.
- Net profit shows whether your business has made a profit or taken a loss during a given timeframe.
4. Cash Flow Statement
The cash flow statement tracks the money you have in the bank at any given point. It is often confused with the income statement or the profit and loss statement. They are both different types of financial statements. The income statement calculates your profits and losses while the cash flow statement shows you how much you have in the bank.
![management example in business plan Cash Flow Statement Example](https://www.founderjar.com/wp-content/uploads/2021/07/Cash-Flow-Statement-Example.jpg)
5. Balance Sheet
The balance sheet is a financial statement that provides an overview of the financial health of your business. It contains information about the assets and liabilities of your company, and owner’s or shareholders’ equity.
You can get the net worth of your company by subtracting your company’s liabilities from its assets.
![management example in business plan Balance sheet Formula](https://www.founderjar.com/wp-content/uploads/2021/07/Balance-sheet-Formula.jpg)
6. Exit Strategy
The exit strategy refers to a probable plan for selling your business either to the public in an IPO or to another company. It is the last thing you include in the financial plan, metrics, and projection section.
You can choose to omit the exit strategy from your business plan if you plan to maintain full ownership of your business and do not plan on seeking angel investment or virtual capitalist (VC) funding.
Investors may want to know what your exit plan is. They invest in your business to get a good return on investment.
Your exit strategy does not have to include long and boring details. Ensure you identify some interested parties who may be interested in buying the company if it becomes a success.
![management example in business plan Exit Strategy Section of Business Plan Infographic](https://www.founderjar.com/wp-content/uploads/2021/07/Exit-Strategy-Section-of-Business-Plan-Infographic.jpg)
Key Questions to Answer with Your Financial Plan, Metrics, and Projection
Your financial plan, metrics, and projection section helps investors, creditors, or your internal managers to understand what your expenses are, the amount of cash you need, and what it takes to make your company profitable. It also shows what you will be doing with any funding.
You do not need to show actual financial data if you do not have one. Adding forecasts and projections to your financial statements is added proof that your strategy is feasible and shows investors you have planned properly.
Here are some key questions to answer to help you develop this section.
- What is your sales forecast for the next year?
- When will your company achieve a positive cash flow?
- What are the core expenses you need to operate?
- How much money do you need upfront to operate or grow your company?
- How will you use the loans or investments?
9. Add an Appendix to Your Business Plan
Adding an appendix to your business plan is optional. It is a useful place to put any charts, tables, legal notes, definitions, permits, résumés, and other critical information that do not fit into other sections of your business plan.
The appendix section is where you would want to include details of a patent or patent-pending if you have one. You can always add illustrations or images of your products here. It is the last section of your business plan.
When writing your business plan, there are details you cut short or remove to prevent the entire section from becoming too lengthy. There are also details you want to include in the business plan but are not a good fit for any of the previous sections. You can add that additional information to the appendix section.
Businesses also use the appendix section to include supporting documents or other materials specially requested by investors or lenders.
You can include just about any information that supports the assumptions and statements you made in the business plan under the appendix. It is the one place in the business plan where unrelated data and information can coexist amicably.
If your appendix section is lengthy, try organizing it by adding a table of contents at the beginning of the appendix section. It is also advisable to group similar information to make it easier for the reader to access them.
A well-organized appendix section makes it easier to share your information clearly and concisely. Add footnotes throughout the rest of the business plan or make references in the plan to the documents in the appendix.
The appendix section is usually only necessary if you are seeking funding from investors or lenders, or hoping to attract partners.
People reading business plans do not want to spend time going through a heap of backup information, numbers, and charts. Keep these documents or information in the Appendix section in case the reader wants to dig deeper.
Common Items to Include in the Appendix Section of Your Business Plan
The appendix section includes documents that supplement or support the information or claims given in other sections of the business plans. Common items you can include in the appendix section include:
- Additional data about the process of manufacturing or creation
- Additional description of products or services such as product schematics
- Additional financial documents or projections
- Articles of incorporation and status
- Backup for market research or competitive analysis
- Bank statements
- Business registries
- Client testimonials (if your business is already running)
- Copies of insurances
- Credit histories (personal or/and business)
- Deeds and permits
- Equipment leases
- Examples of marketing and advertising collateral
- Industry associations and memberships
- Images of product
- Intellectual property
- Key customer contracts
- Legal documents and other contracts
- Letters of reference
- Links to references
- Market research data
- Organizational charts
- Photographs of potential facilities
- Professional licenses pertaining to your legal structure or type of business
- Purchase orders
- Resumes of the founder(s) and key managers
- State and federal identification numbers or codes
- Trademarks or patents’ registrations
Avoid using the appendix section as a place to dump any document or information you feel like adding. Only add documents or information that you support or increase the credibility of your business plan.
Tips and Strategies for Writing a Convincing Business Plan
To achieve a perfect business plan, you need to consider some key tips and strategies. These tips will raise the efficiency of your business plan above average.
1. Know Your Audience
When writing a business plan, you need to know your audience . Business owners write business plans for different reasons. Your business plan has to be specific. For example, you can write business plans to potential investors, banks, and even fellow board members of the company.
The audience you are writing to determines the structure of the business plan. As a business owner, you have to know your audience. Not everyone will be your audience. Knowing your audience will help you to narrow the scope of your business plan.
Consider what your audience wants to see in your projects, the likely questions they might ask, and what interests them.
- A business plan used to address a company's board members will center on its employment schemes, internal affairs, projects, stakeholders, etc.
- A business plan for financial institutions will talk about the size of your market and the chances for you to pay back any loans you demand.
- A business plan for investors will show proof that you can return the investment capital within a specific time. In addition, it discusses your financial projections, tractions, and market size.
2. Get Inspiration from People
Writing a business plan from scratch as an entrepreneur can be daunting. That is why you need the right inspiration to push you to write one. You can gain inspiration from the successful business plans of other businesses. Look at their business plans, the style they use, the structure of the project, etc.
To make your business plan easier to create, search companies related to your business to get an exact copy of what you need to create an effective business plan. You can also make references while citing examples in your business plans.
When drafting your business plan, get as much help from others as you possibly can. By getting inspiration from people, you can create something better than what they have.
3. Avoid Being Over Optimistic
Many business owners make use of strong adjectives to qualify their content. One of the big mistakes entrepreneurs make when preparing a business plan is promising too much.
The use of superlatives and over-optimistic claims can prepare the audience for more than you can offer. In the end, you disappoint the confidence they have in you.
In most cases, the best option is to be realistic with your claims and statistics. Most of the investors can sense a bit of incompetency from the overuse of superlatives. As a new entrepreneur, do not be tempted to over-promise to get the interests of investors.
The concept of entrepreneurship centers on risks, nothing is certain when you make future analyses. What separates the best is the ability to do careful research and work towards achieving that, not promising more than you can achieve.
To make an excellent first impression as an entrepreneur, replace superlatives with compelling data-driven content. In this way, you are more specific than someone promising a huge ROI from an investment.
4. Keep it Simple and Short
When writing business plans, ensure you keep them simple throughout. Irrespective of the purpose of the business plan, your goal is to convince the audience.
One way to achieve this goal is to make them understand your proposal. Therefore, it would be best if you avoid the use of complex grammar to express yourself. It would be a huge turn-off if the people you want to convince are not familiar with your use of words.
Another thing to note is the length of your business plan. It would be best if you made it as brief as possible.
You hardly see investors or agencies that read through an extremely long document. In that case, if your first few pages can’t convince them, then you have lost it. The more pages you write, the higher the chances of you derailing from the essential contents.
To ensure your business plan has a high conversion rate, you need to dispose of every unnecessary information. For example, if you have a strategy that you are not sure of, it would be best to leave it out of the plan.
5. Make an Outline and Follow Through
A perfect business plan must have touched every part needed to convince the audience. Business owners get easily tempted to concentrate more on their products than on other sections. Doing this can be detrimental to the efficiency of the business plan.
For example, imagine you talking about a product but omitting or providing very little information about the target audience. You will leave your clients confused.
To ensure that your business plan communicates your full business model to readers, you have to input all the necessary information in it. One of the best ways to achieve this is to design a structure and stick to it.
This structure is what guides you throughout the writing. To make your work easier, you can assign an estimated word count or page limit to every section to avoid making it too bulky for easy reading. As a guide, the necessary things your business plan must contain are:
- Table of contents
- Introduction
- Product or service description
- Target audience
- Market size
- Competition analysis
- Financial projections
Some specific businesses can include some other essential sections, but these are the key sections that must be in every business plan.
6. Ask a Professional to Proofread
When writing a business plan, you must tie all loose ends to get a perfect result. When you are done with writing, call a professional to go through the document for you. You are bound to make mistakes, and the way to correct them is to get external help.
You should get a professional in your field who can relate to every section of your business plan. It would be easier for the professional to notice the inner flaws in the document than an editor with no knowledge of your business.
In addition to getting a professional to proofread, get an editor to proofread and edit your document. The editor will help you identify grammatical errors, spelling mistakes, and inappropriate writing styles.
Writing a business plan can be daunting, but you can surmount that obstacle and get the best out of it with these tips.
Business Plan Examples and Templates That’ll Save You Tons of Time
1. hubspot's one-page business plan.
![management example in business plan HubSpot's One Page Business Plan](https://www.founderjar.com/wp-content/uploads/2021/07/HubSpots-One-Page-Business-Plan.jpg)
The one-page business plan template by HubSpot is the perfect guide for businesses of any size, irrespective of their business strategy. Although the template is condensed into a page, your final business plan should not be a page long! The template is designed to ask helpful questions that can help you develop your business plan.
Hubspot’s one-page business plan template is divided into nine fields:
- Business opportunity
- Company description
- Industry analysis
- Target market
- Implementation timeline
- Marketing plan
- Financial summary
- Funding required
2. Bplan’s Free Business Plan Template
![management example in business plan Bplan’s Free Business Plan Template](https://www.founderjar.com/wp-content/uploads/2021/07/Bplans-Free-Business-Plan-Template.jpg)
Bplans' free business plan template is investor-approved. It is a rich template used by prestigious educational institutions such as Babson College and Princeton University to teach entrepreneurs how to create a business plan.
The template has six sections: the executive summary, opportunity, execution, company, financial plan, and appendix. There is a step-by-step guide for writing every little detail in the business plan. Follow the instructions each step of the way and you will create a business plan that impresses investors or lenders easily.
3. HubSpot's Downloadable Business Plan Template
![management example in business plan HubSpot's Downloadable Business Plan Template](https://www.founderjar.com/wp-content/uploads/2021/07/HubSpots-Downloadable-Business-Plan-Template.jpg)
HubSpot’s downloadable business plan template is a more comprehensive option compared to the one-page business template by HubSpot. This free and downloadable business plan template is designed for entrepreneurs.
The template is a comprehensive guide and checklist for business owners just starting their businesses. It tells you everything you need to fill in each section of the business plan and how to do it.
There are nine sections in this business plan template: an executive summary, company and business description, product and services line, market analysis, marketing plan, sales plan, legal notes, financial considerations, and appendix.
4. Business Plan by My Own Business Institute
![management example in business plan The Business Profile](https://www.founderjar.com/wp-content/uploads/2021/07/The-Business-Profile.jpg)
My Own Business Institute (MOBI) which is a part of Santa Clara University's Center for Innovation and Entrepreneurship offers a free business plan template. You can either copy the free business template from the link provided above or download it as a Word document.
The comprehensive template consists of a whopping 15 sections.
- The Business Profile
- The Vision and the People
- Home-Based Business and Freelance Business Opportunities
- Organization
- Licenses and Permits
- Business Insurance
- Communication Tools
- Acquisitions
- Location and Leasing
- Accounting and Cash Flow
- Opening and Marketing
- Managing Employees
- Expanding and Handling Problems
There are lots of helpful tips on how to fill each section in the free business plan template by MOBI.
5. Score's Business Plan Template for Startups
![management example in business plan Score's Business Plan Template for Startups](https://www.founderjar.com/wp-content/uploads/2021/07/Scores-Business-Plan-Template-for-Startups.jpg)
Score is an American nonprofit organization that helps entrepreneurs build successful companies. This business plan template for startups by Score is available for free download. The business plan template asks a whooping 150 generic questions that help entrepreneurs from different fields to set up the perfect business plan.
The business plan template for startups contains clear instructions and worksheets, all you have to do is answer the questions and fill the worksheets.
There are nine sections in the business plan template: executive summary, company description, products and services, marketing plan, operational plan, management and organization, startup expenses and capitalization, financial plan, and appendices.
The ‘refining the plan’ resource contains instructions that help you modify your business plan to suit your specific needs, industry, and target audience. After you have completed Score’s business plan template, you can work with a SCORE mentor for expert advice in business planning.
6. Minimalist Architecture Business Plan Template by Venngage
![management example in business plan Minimalist Architecture Business Plan Template by Venngage](https://www.founderjar.com/wp-content/uploads/2021/07/Minimalist-Architecture-Business-Plan-Template-by-Venngage.jpg)
The minimalist architecture business plan template is a simple template by Venngage that you can customize to suit your business needs .
There are five sections in the template: an executive summary, statement of problem, approach and methodology, qualifications, and schedule and benchmark. The business plan template has instructions that guide users on what to fill in each section.
7. Small Business Administration Free Business Plan Template
![management example in business plan Small Business Administration Free Business Plan Template](https://www.founderjar.com/wp-content/uploads/2021/07/Small-Business-Administration-Free-Business-Plan-Template.jpg)
The Small Business Administration (SBA) offers two free business plan templates, filled with practical real-life examples that you can model to create your business plan. Both free business plan templates are written by fictional business owners: Rebecca who owns a consulting firm, and Andrew who owns a toy company.
There are five sections in the two SBA’s free business plan templates.
- Executive Summary
- Company Description
- Service Line
- Marketing and Sales
8. The $100 Startup's One-Page Business Plan
![management example in business plan The $100 Startup's One Page Business Plan](https://www.founderjar.com/wp-content/uploads/2021/07/The-100-Startups-One-Page-Business-Plan.jpg)
The one-page business plan by the $100 startup is a simple business plan template for entrepreneurs who do not want to create a long and complicated plan . You can include more details in the appendices for funders who want more information beyond what you can put in the one-page business plan.
There are five sections in the one-page business plan such as overview, ka-ching, hustling, success, and obstacles or challenges or open questions. You can answer all the questions using one or two sentences.
9. PandaDoc’s Free Business Plan Template
![management example in business plan PandaDoc’s Free Business Plan Template](https://www.founderjar.com/wp-content/uploads/2021/07/PandaDocs-Free-Business-Plan-Template.jpg)
The free business plan template by PandaDoc is a comprehensive 15-page document that describes the information you should include in every section.
There are 11 sections in PandaDoc’s free business plan template.
- Executive summary
- Business description
- Products and services
- Operations plan
- Management organization
- Financial plan
- Conclusion / Call to action
- Confidentiality statement
You have to sign up for its 14-day free trial to access the template. You will find different business plan templates on PandaDoc once you sign up (including templates for general businesses and specific businesses such as bakeries, startups, restaurants, salons, hotels, and coffee shops)
PandaDoc allows you to customize its business plan templates to fit the needs of your business. After editing the template, you can send it to interested parties and track opens and views through PandaDoc.
10. Invoiceberry Templates for Word, Open Office, Excel, or PPT
![management example in business plan Invoiceberry Templates Business Concept](https://www.founderjar.com/wp-content/uploads/2021/07/Invoiceberry-Templates-Business-Concept.jpg)
InvoiceBerry is a U.K based online invoicing and tracking platform that offers free business plan templates in .docx, .odt, .xlsx, and .pptx formats for freelancers and small businesses.
Before you can download the free business plan template, it will ask you to give it your email address. After you complete the little task, it will send the download link to your inbox for you to download. It also provides a business plan checklist in .xlsx file format that ensures you add the right information to the business plan.
Alternatives to the Traditional Business Plan
A business plan is very important in mapping out how one expects their business to grow over a set number of years, particularly when they need external investment in their business. However, many investors do not have the time to watch you present your business plan. It is a long and boring read.
Luckily, there are three alternatives to the traditional business plan (the Business Model Canvas, Lean Canvas, and Startup Pitch Deck). These alternatives are less laborious and easier and quicker to present to investors.
Business Model Canvas (BMC)
The business model canvas is a business tool used to present all the important components of setting up a business, such as customers, route to market, value proposition, and finance in a single sheet. It provides a very focused blueprint that defines your business initially which you can later expand on if needed.
![management example in business plan Business Model Canvas (BMC) Infographic](https://www.founderjar.com/wp-content/uploads/2021/07/Business-Model-Canvas-BMC.jpg)
The sheet is divided mainly into company, industry, and consumer models that are interconnected in how they find problems and proffer solutions.
Segments of the Business Model Canvas
The business model canvas was developed by founder Alexander Osterwalder to answer important business questions. It contains nine segments.
![management example in business plan Segments of the Business Model Canvas](https://www.founderjar.com/wp-content/uploads/2021/07/Segments-of-the-Business-Model-Canvas.jpg)
- Key Partners: Who will be occupying important executive positions in your business? What do they bring to the table? Will there be a third party involved with the company?
- Key Activities: What important activities will production entail? What activities will be carried out to ensure the smooth running of the company?
- The Product’s Value Propositions: What does your product do? How will it be different from other products?
- Customer Segments: What demography of consumers are you targeting? What are the habits of these consumers? Who are the MVPs of your target consumers?
- Customer Relationships: How will the team support and work with its customer base? How do you intend to build and maintain trust with the customer?
- Key Resources: What type of personnel and tools will be needed? What size of the budget will they need access to?
- Channels: How do you plan to create awareness of your products? How do you intend to transport your product to the customer?
- Cost Structure: What is the estimated cost of production? How much will distribution cost?
- Revenue Streams: For what value are customers willing to pay? How do they prefer to pay for the product? Are there any external revenues attached apart from the main source? How do the revenue streams contribute to the overall revenue?
Lean Canvas
The lean canvas is a problem-oriented alternative to the standard business model canvas. It was proposed by Ash Maurya, creator of Lean Stack as a development of the business model generation. It uses a more problem-focused approach and it majorly targets entrepreneurs and startup businesses.
![management example in business plan The lean canvas is a problem oriented alternative to the standard business model canvas](https://www.founderjar.com/wp-content/uploads/2021/07/The-lean-canvas-is-a-problem-oriented-alternative-to-the-standard-business-model-canvas.jpg)
Lean Canvas uses the same 9 blocks concept as the business model canvas, however, they have been modified slightly to suit the needs and purpose of a small startup. The key partners, key activities, customer relationships, and key resources are replaced by new segments which are:
- Problem: Simple and straightforward number of problems you have identified, ideally three.
- Solution: The solutions to each problem.
- Unfair Advantage: Something you possess that can't be easily bought or replicated.
- Key Metrics: Important numbers that will tell how your business is doing.
Startup Pitch Deck
While the business model canvas compresses into a factual sheet, startup pitch decks expand flamboyantly.
Pitch decks, through slides, convey your business plan, often through graphs and images used to emphasize estimations and observations in your presentation. Entrepreneurs often use pitch decks to fully convince their target audience of their plans before discussing funding arrangements.
![management example in business plan Startup Pitch Deck Presentation](https://www.founderjar.com/wp-content/uploads/2021/07/Startup-Pitch-Deck-Presentation.jpg)
Considering the likelihood of it being used in a small time frame, a good startup pitch deck should ideally contain 20 slides or less to have enough time to answer questions from the audience.
Unlike the standard and lean business model canvases, a pitch deck doesn't have a set template on how to present your business plan but there are still important components to it. These components often mirror those of the business model canvas except that they are in slide form and contain more details.
![management example in business plan Airbnb Pitch Deck](https://www.founderjar.com/wp-content/uploads/2021/07/Airbnb-Pitch-Deck.jpg)
Using Airbnb (one of the most successful start-ups in recent history) for reference, the important components of a good slide are listed below.
- Cover/Introduction Slide: Here, you should include your company's name and mission statement. Your mission statement should be a very catchy tagline. Also, include personal information and contact details to provide an easy link for potential investors.
- Problem Slide: This slide requires you to create a connection with the audience or the investor that you are pitching. For example in their pitch, Airbnb summarized the most important problems it would solve in three brief points – pricing of hotels, disconnection from city culture, and connection problems for local bookings.
- Solution Slide: This slide includes your core value proposition. List simple and direct solutions to the problems you have mentioned
- Customer Analysis: Here you will provide information on the customers you will be offering your service to. The identity of your customers plays an important part in fundraising as well as the long-run viability of the business.
- Market Validation: Use competitive analysis to show numbers that prove the presence of a market for your product, industry behavior in the present and the long run, as well as the percentage of the market you aim to attract. It shows that you understand your competitors and customers and convinces investors of the opportunities presented in the market.
- Business Model: Your business model is the hook of your presentation. It may vary in complexity but it should generally include a pricing system informed by your market analysis. The goal of the slide is to confirm your business model is easy to implement.
- Marketing Strategy: This slide should summarize a few customer acquisition methods that you plan to use to grow the business.
- Competitive Advantage: What this slide will do is provide information on what will set you apart and make you a more attractive option to customers. It could be the possession of technology that is not widely known in the market.
- Team Slide: Here you will give a brief description of your team. Include your key management personnel here and their specific roles in the company. Include their educational background, job history, and skillsets. Also, talk about their accomplishments in their careers so far to build investors' confidence in members of your team.
- Traction Slide: This validates the company’s business model by showing growth through early sales and support. The slide aims to reduce any lingering fears in potential investors by showing realistic periodic milestones and profit margins. It can include current sales, growth, valuable customers, pre-orders, or data from surveys outlining current consumer interest.
- Funding Slide: This slide is popularly referred to as ‘the ask'. Here you will include important details like how much is needed to get your business off the ground and how the funding will be spent to help the company reach its goals.
- Appendix Slides: Your pitch deck appendix should always be included alongside a standard pitch presentation. It consists of additional slides you could not show in the pitch deck but you need to complement your presentation.
It is important to support your calculations with pictorial renditions. Infographics, such as pie charts or bar graphs, will be more effective in presenting the information than just listing numbers. For example, a six-month graph that shows rising profit margins will easily look more impressive than merely writing it.
Lastly, since a pitch deck is primarily used to secure meetings and you may be sharing your pitch with several investors, it is advisable to keep a separate public version that doesn't include financials. Only disclose the one with projections once you have secured a link with an investor.
Advantages of the Business Model Canvas, Lean Canvas, and Startup Pitch Deck over the Traditional Business Plan
- Time-Saving: Writing a detailed traditional business plan could take weeks or months. On the other hand, all three alternatives can be done in a few days or even one night of brainstorming if you have a comprehensive understanding of your business.
- Easier to Understand: Since the information presented is almost entirely factual, it puts focus on what is most important in running the business. They cut away the excess pages of fillers in a traditional business plan and allow investors to see what is driving the business and what is getting in the way.
- Easy to Update: Businesses typically present their business plans to many potential investors before they secure funding. What this means is that you may regularly have to amend your presentation to update statistics or adjust to audience-specific needs. For a traditional business plan, this could mean rewriting a whole section of your plan. For the three alternatives, updating is much easier because they are not voluminous.
- Guide for a More In-depth Business Plan: All three alternatives have the added benefit of being able to double as a sketch of your business plan if the need to create one arises in the future.
Business Plan FAQ
Business plans are important for any entrepreneur who is looking for a framework to run their company over some time or seeking external support. Although they are essential for new businesses, every company should ideally have a business plan to track their growth from time to time. They can be used by startups seeking investments or loans to convey their business ideas or an employee to convince his boss of the feasibility of starting a new project. They can also be used by companies seeking to recruit high-profile employee targets into key positions or trying to secure partnerships with other firms.
Business plans often vary depending on your target audience, the scope, and the goals for the plan. Startup plans are the most common among the different types of business plans. A start-up plan is used by a new business to present all the necessary information to help get the business up and running. They are usually used by entrepreneurs who are seeking funding from investors or bank loans. The established company alternative to a start-up plan is a feasibility plan. A feasibility plan is often used by an established company looking for new business opportunities. They are used to show the upsides of creating a new product for a consumer base. Because the audience is usually company people, it requires less company analysis. The third type of business plan is the lean business plan. A lean business plan is a brief, straight-to-the-point breakdown of your ideas and analysis for your business. It does not contain details of your proposal and can be written on one page. Finally, you have the what-if plan. As it implies, a what-if plan is a preparation for the worst-case scenario. You must always be prepared for the possibility of your original plan being rejected. A good what-if plan will serve as a good plan B to the original.
A good business plan has 10 key components. They include an executive plan, product analysis, desired customer base, company analysis, industry analysis, marketing strategy, sales strategy, financial projection, funding, and appendix. Executive Plan Your business should begin with your executive plan. An executive plan will provide early insight into what you are planning to achieve with your business. It should include your mission statement and highlight some of the important points which you will explain later. Product Analysis The next component of your business plan is your product analysis. A key part of this section is explaining the type of item or service you are going to offer as well as the market problems your product will solve. Desired Consumer Base Your product analysis should be supplemented with a detailed breakdown of your desired consumer base. Investors are always interested in knowing the economic power of your market as well as potential MVP customers. Company Analysis The next component of your business plan is your company analysis. Here, you explain how you want to run your business. It will include your operational strategy, an insight into the workforce needed to keep the company running, and important executive positions. It will also provide a calculation of expected operational costs. Industry Analysis A good business plan should also contain well laid out industry analysis. It is important to convince potential investors you know the companies you will be competing with, as well as your plans to gain an edge on the competition. Marketing Strategy Your business plan should also include your marketing strategy. This is how you intend to spread awareness of your product. It should include a detailed explanation of the company brand as well as your advertising methods. Sales Strategy Your sales strategy comes after the market strategy. Here you give an overview of your company's pricing strategy and how you aim to maximize profits. You can also explain how your prices will adapt to market behaviors. Financial Projection The financial projection is the next component of your business plan. It explains your company's expected running cost and revenue earned during the tenure of the business plan. Financial projection gives a clear idea of how your company will develop in the future. Funding The next component of your business plan is funding. You have to detail how much external investment you need to get your business idea off the ground here. Appendix The last component of your plan is the appendix. This is where you put licenses, graphs, or key information that does not fit in any of the other components.
The business model canvas is a business management tool used to quickly define your business idea and model. It is often used when investors need you to pitch your business idea during a brief window.
A pitch deck is similar to a business model canvas except that it makes use of slides in its presentation. A pitch is not primarily used to secure funding, rather its main purpose is to entice potential investors by selling a very optimistic outlook on the business.
Business plan competitions help you evaluate the strength of your business plan. By participating in business plan competitions, you are improving your experience. The experience provides you with a degree of validation while practicing important skills. The main motivation for entering into the competitions is often to secure funding by finishing in podium positions. There is also the chance that you may catch the eye of a casual observer outside of the competition. These competitions also provide good networking opportunities. You could meet mentors who will take a keen interest in guiding you in your business journey. You also have the opportunity to meet other entrepreneurs whose ideas can complement yours.
Exlore Further
- 12 Key Elements of a Business Plan (Top Components Explained)
- 13 Sources of Business Finance For Companies & Sole Traders
- 5 Common Types of Business Structures (+ Pros & Cons)
- How to Buy a Business in 8 Steps (+ Due Diligence Checklist)
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Martin luenendonk.
Martin loves entrepreneurship and has helped dozens of entrepreneurs by validating the business idea, finding scalable customer acquisition channels, and building a data-driven organization. During his time working in investment banking, tech startups, and industry-leading companies he gained extensive knowledge in using different software tools to optimize business processes.
This insights and his love for researching SaaS products enables him to provide in-depth, fact-based software reviews to enable software buyers make better decisions.
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How to Write Management Team Section in a Business Plan
![Plan Template thumb Ultimate Guide On Writing A Business Plan](https://static-web.upmetrics.co/wp-content/uploads/2022/07/02092518/the-ultimate-guide-to-writing-a-business-header-70x70.png)
Free Ultimate Guide On Writing A Business Plan
- May 1, 2024
![management example in business plan management team in business plan](https://static-web.upmetrics.co/wp-content/uploads/2022/07/06170851/management-team-in-business-plan.png)
A business is as efficient as its team and its management. Therefore, it becomes important for business owners to build a structured management team that achieves the objectives and goals set by the organization.
Andrew Carnegie, an American steel magnate, beautifully summarized it –
“Teamwork is the ability to work together toward a common vision. The ability to direct individual accomplishments toward organizational objectives.”
A business management plan helps build an efficient team and formalizes business operations. This helps businesses streamline strategies to achieve their goals.
So, if you are a business owner who is looking to formalize their business structure and write the management team section in their business plans, this guide is for you.
Here’s a sneak peek into what you’ll learn:
Sounds good? Let’s dive in.
What is the Management Section of a Business Plan?
The management section of a business plan is an in-depth description of a business’s team, its structure, and the owners of a business.
The section discusses who is on the management team—internal and external, their skill sets, experiences, and how meaningfully they would contribute to an organization’s mission statement and goals.
Now that we have defined what the management section of a business plan is, let’s understand why it is so important.
Importance of a Business Plan Management Section
The management section helps you to
- Showcase leadership: The management team section helps you showcase how qualified and experienced team you have.
- Clarify team roles: It outlines who does what in your team, ensuring everyone knows their key performance areas and works together towards the same goals.
- Attract investors: Present your team in the best possible way, as it is one of the key factors in making the final investment decision.
What to include in the Management Section of a Business Plan?
Now that you know why exactly a management section in the business plan is necessary, let’s move ahead with what to include in it:
1. The Management Team
An organization’s entire management team can be divided into parts — the internal team and the external team. Let us see those in detail:
The Internal Management Team
A business team consists of several departments. The most common departments are—marketing, sales, IT, customer service, operations, finance, and HR.
These departments depend on the nature and functioning of your business. For example, a dental clinic may not require a sales department per se.
The entire management team is distinguished according to their responsibility. This helps the business owners and investors be aware of the roles, benefits, ESOPs (if applicable), profit sharing (for sales), work contracts, NDAs (Non-Disclosure Agreements), and Non-Competition Agreements of the entire team.
It is recommended that business owners collect and document the following information about their team:
- Educational Background
- Work Experience
- Accomplishments
For example, your present VP of Marketing helped their previous company grow its bottom line from $3 million to $10 million over 18 months.
The External Management Team
The external management team is usually composed of—advisory board members and professional services.
Advisory board members help by:
- Bringing their industry expertise, experience, and knowledge to the table.
- Offering strategic advice and helping the business develop long-term goals with future considerations in mind.
- Having a lot more contacts than any other individual can help businesses grow.
Credible advisory board members show great commitment to a company’s growth. Therefore, it becomes important to mention their experience and specialization in the business management plan.
The advisory board members can help give valuable advice that internal team members need or lack.
Usually, board members meet quarterly or monthly to provide strategic guidance in place of stock options in your company. This helps attract the best advisors and motivates them to invest in your business.
On the other hand, professional service helps by
- Offering highly specialized advice and sharing knowledge.
- Helping through the implementation process of strategies.
Such services help businesses leverage skills that would be difficult to build and acquire over a short period.
Examples of such professional services are:
- IT Consultants
- Business coaches and consultants
After a brief overview of the management team, let’s move forward.
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2. The Management Team Gaps
The management team gap is an important part of the management section. Primarily because it helps document if your management team currently has gaps or missing skills.
Your team may lack a few required skills while starting. The management team gaps help you to be aware and make efforts to close this gap.
As a business owner, you must document what positions are missing and who ought to fill those positions or take responsibility.
For example, if you need a VP of Sales, clearly document this in the section.
Also, write down the job description and key responsibilities to be undertaken. For example—you might mention that the role requires 10 years of experience in the sales domain. The applicant must have experience handling a sales team, closing new accounts, and working in tandem with the marketing team.
Be as detailed as possible. This will help you build a checklist while interviewing the right candidate and also win investor confidence in your managerial skills.
Here are a few key positions you would want to include in your management team business plan:
- Founder and/or CEO
- Chief Technical Officer (CTO)
- Chief Marketing Officer (CMO)
- Head of Product Management (PM)
- VP of Sales
- VP of Marketing
- Business Development Manager
- Customer Service Manager
- Sales Managers/Sales Staff
- Human Resources Manager
- Advisory Board Members
3. The Management Structure
The management structure defines how a business organizes its management hierarchy. A hierarchy helps determine all team members’ roles, positions, power, and responsibilities.
The management structure also depends upon the type of business ownership. Business ownership can be—a sole proprietorship, partnership, or LLC.
Following is a sample management structure of an organization.
![management example in business plan The Management Structure](https://static-web.upmetrics.co/assets/media/the-management-structure.png)
Now that we understand what details we need to document in business management plans, let’s have a look at the example.
Example of a Management Section Plan
[management section of a hotel], [management team], internal team members.
Name: Charles Fargo Role: Owner Responsibility: Formulating key strategies, defining budgets, and building a business plan Experience: 35 years of owning multiple hotels in Las Vegas Educational Background: B.Sc in Hospitality Management from South Dakota State University.
Name: Michael Clark Role: General Manager Responsibility: Overall hotel operations – guest interactions, revenue management, brand ambassador of the hotel, customer satisfaction, and experience, leadership to all departments Experience: 25 years working with several technology hotels as the general manager. Educational Background: MBA from Wharton School
Name: George Trump Role: Department Manager Responsibility: Manage employees, smooth coordination amongst employees, plan daily affairs of the department, strategize, prepare reports, and deal with complaints and suggestions. Lead team members to function as a team Experience: 15 years working as a department manager Educational Background: BSc in Hotel Management from Texas University
Note: There can be multiple Department Managers depending on the nature of your business. In the case of hotels, departments can include – housekeeping, logistics, security, food, and banquets.
Name: Donald Clooney Role: Marketing and Sales Manager Responsibility: Increase occupancy and generate revenue. Position the hotel as an option for leisure activities, relaxation, and holidays. Experience: 11 years working as the marketing and sales manager for hotels Educational Background: MBA in Tourism and Hospitality from Midway University
Name: Oprah Williams Role: Human Resources Manager Responsibility: Recruit and train hotel staff, maintain smooth onboarding process for new recruits, train, counsel, and coach staff, resolve conflicts, and conduct performance reviews Experience: 9 years working as human resources manager for hotels Educational Background: MBA in Human Resources Management from California University
External Team Members
Advisory Board Member
#1 Richard Branson Responsibility: Strategic advisory for sustainable growth and expansion Experience: Founder of Virgin Group
Professional Services
#1 Digital Marketing Agency – Neil Patel – Help market and sell our product using digital mediums – blog, website, YouTube, and social media.
[Management Structure]
![management example in business plan Example Of A Management Section Plan](https://static-web.upmetrics.co/assets/media/example-of-a-management-section-plan.png)
There is a gap in one key position in our startup.
#1 Chief Finance Officer (CFO) Responsibilities: Finance, Accounting, Tracking Profit and Loss, and overseeing FP&A (Financial Planning and Analysis)
So, that’s it for today! Now that you know how to write a management team section, make sure you write the best one by mentioning all the necessary details.
If you are still confused about writing the management team sections, then you can visit various sample business plans to know more. You can even use smart business planning software to smooth your business planning process.
Build your Business Plan Faster
with step-by-step Guidance & AI Assistance.
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Frequently Asked Questions
What tone should i use when writing the management team section.
When writing about your management team in your business plan, use a tone that’s confident, professional, and positive. This shows investors that your team is experienced, qualified, and able to lead your company to success.
Who should be included in the management team's business plan?
In the management team of a business plan, you should include all the key members of the company:
- Top management
- Founder/CEO
- VP of sales
Do I need to include personal information about team members?
In a business plan, it’s not necessary to include personal information about team members unless it directly relates to their role in the business. The focus should be on professional qualifications, experience, and skills that are relevant to their position.
About the Author
![management example in business plan management example in business plan](https://static-web.upmetrics.co/wp-content/uploads/2023/10/30183709/upms-icon-copy-.jpg)
Upmetrics Team
Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more
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How to Write a Management Plan
Last Updated: September 18, 2023 Fact Checked
This article was co-authored by Madison Boehm . Madison Boehm is a Business Advisor and the Co-Founder of Jaxson Maximus, a men’s salon and custom clothiers based in southern Florida. She specializes in business development, operations, and finance. Additionally, she has experience in the salon, clothing, and retail sectors. Madison holds a BBA in Entrepreneurship and Marketing from The University of Houston. There are 9 references cited in this article, which can be found at the bottom of the page. This article has been fact-checked, ensuring the accuracy of any cited facts and confirming the authority of its sources. This article has been viewed 246,029 times.
A management plan describes how an organization or business is run. Writing a management plan allows you to formalize your management structure and operations. It also ensures that everyone is on the same page and that your goals will be accomplished. You can easily write your own management plan with a few simple steps.
Management Plan Outline and Example
![management example in business plan management example in business plan](https://www.wikihow.com/images/thumb/b/ba/Management-Plan-Outline_sample.png/340px-Management-Plan-Outline_sample.png)
Starting Your Management Plan
![management example in business plan Step 1 Determine the need for a management plan.](https://www.wikihow.com/images/thumb/4/49/Write-a-Management-Plan-Step-1-Version-2.jpg/v4-460px-Write-a-Management-Plan-Step-1-Version-2.jpg)
- Defining roles also creates accountability by making it clear who's fault it was that something did or did not happen. [3] X Trustworthy Source Kansas University Center for Community Health and Development Community-based research center focused on supporting public health development and education Go to source
![management example in business plan Step 2 Outline your plan.](https://www.wikihow.com/images/thumb/d/d9/Write-a-Management-Plan-Step-2-Version-2.jpg/v4-460px-Write-a-Management-Plan-Step-2-Version-2.jpg)
- A section detailing management members and their responsibilities and authorities.
- A chart of section detailing interactions between and responsibilities of each level of the organization.
- A section explaining different aspects of your organization being managed and the policies and procedures of that management.
- A schedule for updating, enhancing, and growing management and the management plan. [6] X Research source
![management example in business plan Step 3 Describe your management structure.](https://www.wikihow.com/images/thumb/4/42/Write-a-Management-Plan-Step-3-Version-2.jpg/v4-460px-Write-a-Management-Plan-Step-3-Version-2.jpg)
Describing Ownership and Management
![management example in business plan Step 1 Note what type of ownership policies are in place.](https://www.wikihow.com/images/thumb/f/f5/Write-a-Management-Plan-Step-5.jpg/v4-460px-Write-a-Management-Plan-Step-5.jpg)
- Include a copy of board policies, including election policies, term length, responsibility, authority, and conflict resolution. This information should already be stated in your operating agreement or other founding documents.
![management example in business plan Step 3 Introduce the key management members.](https://www.wikihow.com/images/thumb/6/65/Write-a-Management-Plan-Step-7.jpg/v4-460px-Write-a-Management-Plan-Step-7.jpg)
- List past positions and duties of each member that apply to their current management obligations. Explain how these obligations highlight applicable skills and strengthen the management positions.
- Highlight all relevant educational backgrounds for each of the managers. Explain how their training will benefit the company. Only include the education that is relevant to the positions that they currently hold.
- If you are the only employee in your business, be sure to include your own experience and strengths.
![management example in business plan Step 5 Describe the hiring process.](https://www.wikihow.com/images/thumb/2/27/Write-a-Management-Plan-Step-9.jpg/v4-460px-Write-a-Management-Plan-Step-9.jpg)
- Accountants.
- Insurance brokers.
- Consultants.
![management example in business plan Step 7 Summarize your management team's abilities.](https://www.wikihow.com/images/thumb/a/a1/Write-a-Management-Plan-Step-11.jpg/v4-460px-Write-a-Management-Plan-Step-11.jpg)
- For example, “Our team, with its diverse array of skills, have a combined forty years of experience in this field. With our coordinated democratic structure, they can work together effectively to produce results. With this team, we are confident that our business will become profitable in two years.”
![management example in business plan Step 8 Describe relationships between management, ownership, and employees.](https://www.wikihow.com/images/thumb/c/cf/Write-a-Management-Plan-Step-12.jpg/v4-460px-Write-a-Management-Plan-Step-12.jpg)
Writing Out Policies and Procedures
![management example in business plan Step 1 Consider your need for written policies.](https://www.wikihow.com/images/thumb/d/d6/Write-a-Management-Plan-Step-13.jpg/v4-460px-Write-a-Management-Plan-Step-13.jpg)
- For example, a policy might be using and selling only green materials and products. The procedures to support that policy might be shopping from approved green vendors or checking the environmental impact of each material or product used.
![management example in business plan Step 4 Check that the policies fit in with your culture and philosophy.](https://www.wikihow.com/images/thumb/4/41/Write-a-Management-Plan-Step-16.jpg/v4-460px-Write-a-Management-Plan-Step-16.jpg)
Revising Your Plan
![management example in business plan Step 1 Proofread your plan carefully.](https://www.wikihow.com/images/thumb/0/07/Write-a-Management-Plan-Step-17.jpg/v4-460px-Write-a-Management-Plan-Step-17.jpg)
- When they approve, have all owners sign the plan before you submit it to your investors, bank, or fundraising bodies.
![management example in business plan Step 5 Make a commitment to amend your plan as necessary.](https://www.wikihow.com/images/thumb/4/4c/Write-a-Management-Plan-Step-21.jpg/v4-460px-Write-a-Management-Plan-Step-21.jpg)
- Make sure there is a way for all management and employees to submit their feedback regarding the plan.
- Then, create a method by which changes to the plan can be approved and instituted. [20] X Trustworthy Source Kansas University Center for Community Health and Development Community-based research center focused on supporting public health development and education Go to source
Expert Q&A
![management example in business plan Madison Boehm](https://www.wikihow.com/images/thumb/1/11/Madison_Boehm.png/-crop-200-200-200px-Madison_Boehm.png)
- Many investors will read the management section of your business plan before any other section, including marketing and finances, so you want to make sure that you have the best proposal possible. Thanks Helpful 0 Not Helpful 0
![management example in business plan management example in business plan](https://www.wikihow.com/images/c/cc/Wpro_v02_420x250_2x_green.jpg)
- Do not neglect your management plan in favor of your financial plans. Both are equally important to a business plan. Thanks Helpful 0 Not Helpful 2
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- ↑ Madison Boehm. Business Owner and Advisor. Expert Interview. 24 August 2021.
- ↑ http://ctb.ku.edu/en/table-of-contents/leadership/effective-manager/management-plan/main
- ↑ https://www.brown.edu/research/conducting-research-brown/preparing-proposal/proposal-development-services/writing-management-plan
- ↑ https://www.thebalance.com/how-to-write-the-management-summary-2951561
- ↑ https://open.lib.umn.edu/humanresourcemanagement/chapter/4-1-the-recruitment-process/
- ↑ https://www.entrepreneur.com/article/241072
- ↑ https://writingcenter.unc.edu/tips-and-tools/editing-and-proofreading/
- ↑ http://www.businessnewsdaily.com/4533-business-plan-outline.html
About This Article
![management example in business plan Madison Boehm](https://www.wikihow.com/images/thumb/1/11/Madison_Boehm.png/-crop-100-100-100px-Madison_Boehm.png)
The best way to write a management report is to describe the company’s management structure in 10 to 20 pages. Name the board members and explain the company’s ownership policies. Introduce all management members and present the strengths of each team member. Then, write out workplace policies and procedures. Send the management report to the company’s bank, investors, or fundraising bodies. For more tips from our Financial Reviewer, like how to outline, format, and revise your plan, read on! Did this summary help you? Yes No
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Management Plan in a Business Plan
What is a management plan in a business plan? As a small business owner, you know you face an uphill battle. 4 min read
What is a management plan in a business plan? As a small business owner, you know you face an uphill battle. About 80 percent of new ventures fail within their first five years. Why? Most of the time it's due to flawed operating procedures or a less-than-optimal management structure.
What Is a Management Plan?
The management plan is all about employees and operations.
- Employees are one of the most important parts of any new venture. Good employees can make your life much easier, while bad employees can distract you and be a detriment to your success.
- Operational structure can be the difference between a successful venture and a failure.
When you're putting together a business plan , the operations and management section will describe how your business will operate on a day-to-day basis. It will cover all the essentials:
- Your company's physical location
- Other important processes
This section is an easy way to answer basic questions about your business without overwhelming readers.
Carefully crafting a professional and thorough business plan is an important step in forming a new venture. It will keep you on track and clearly define strategy and goals. However, business plans are only as good as the people behind them.
A venture's biggest asset is the entrepreneur. Investors won't make a move until they know they have complete confidence in an entrepreneur. Does he or she have the right experience? Is he or she willing to put in the work? These are just two of the questions Investors will have to answer before working with a new entrepreneur.
The management section of your business plan is an excellent space to highlight the members of your management team . Tell your readers and potential investors who will be managing your company, where they come from, how they will help your venture, and anything else that will signal your venture's future success. Be sure to cast the best light on your management team. Your investors need to know that this team is capable of anything.
There are usually three parts to a good Management and Staffing portion of a business plan:
- Management team details
- Key supporters and alliances, such as an advisory board
- Staffing and employment requirements
A few things to remember as you work on this section of your business plan:
- Your readers are usually potential investors. They need to know you and your management team are trustworthy and deserving of their investment.
- Investors need to know that you and your team can do the job; they need to get a feel for your attitudes and your abilities.
- Showing your team has a wide variety of skills and experiences will give you an advantage when presenting your business plan.
- It's all about the people. Business plans are great for answering key questions about the new venture, but at the end of the day, investors are looking to partner with hard-working, trustworthy people.
Now let's talk about operations. The operations section of the business plan describes several key characteristics of your business. For example, if your business has a physical, "brick and mortar" location, take time in this portion of the business plan to describe the area around your business. Tell your investors why your location is optimal for your business.
Make a note of your standard operating hours. Answer questions like,
- When will you open every day?
- When will you close?
- Will you be open during holidays?
- If so, which ones?
This is also a great section to list out your daily operation details, the different products or services you will provide, your standard operating procedures, customer service, and so on.
Take time in the Inventory section of your operations plan to list out potential suppliers, vendors, or contractors with whom you have agreements. Your partners, even the third-party ones, reflect upon you, so make sure to sing their praises. Put some thought into an inventory plan. Remember, too much inventory means you're likely wasting valuable resources that could be deployed elsewhere. On the other hand, too little inventory means you could be losing out on potential customers.
Once again, your management team plays a crucial role in your operations plan. Tell your investors exactly who they are, how they are uniquely qualified, and how their responsibilities will be divided with operations.
The management and operations sections of your business plan will demonstrate to your investors that you have the right team and the right strategy to be successful in a competitive industry.
If you need help with a management plan in a business plan, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.
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Business Plan Organization and Management: How to Write Guide .
Sep 17, 2023 | Business Consulting , Business Plan , Organization and Management , Organizational Development , Strategy
![Management Structure Every successful business plan should include a section on organization and management. This section will help you communicate your vision for your business's structure. Here's a guide on how to write an effective section.](https://www.noirwolf.com/wp-content/uploads/2023/09/Management-Structure.webp)
Writing the Business Plan Organization and Management Section
It provides critical information for those looking for evidence that your staff has the necessary experience, skills, and pedigree to realize the objectives detailed in the rest of your business plan.
What Is the Organization and Management Section in a Business Plan?
The organization and management section of your business plan should provide details about your business structure and team. This section typically comes after the executive summary. However, some people have it further in the document after the market analysis section.
This section generally is separated into two parts. The first concerns the organization as a whole. It gives readers an overview of the company structure, which is an excellent opportunity for the reader to lift the roof off your office and peer into its inner workings. For your legal design, you may set up as a limited liability company (LLC) or nonprofit/ charity or form a partnership. It’s crucial to include this section. However, suppose you’re starting a home business or have an already operating business where you’re the only person involved. In that case, you can skip this section or show the company registration details from either the company’s house or the awarding .gov.
The second part focuses specifically on your management team and introduces readers to each member — your chance to impress them with the many accomplishments pinned to your organization’s management team.
This section may seem less important than some of the other parts of your business plan, but the truth is that your people are your business. If they’re highly competent and accomplished, the implication is that so is your business.
Of course, if you’re a sole proprietor with no management structure or any employees, this section is unnecessary other than to talk about yourself and your achievements.
![management example in business plan Every successful business plan should include a section on organization and management. This section will help you communicate your vision for your business's structure. Here's a guide on how to write an effective section.](https://www.noirwolf.com/wp-content/uploads/2023/09/Management-Structure.webp)
The section on organization and management should outline the hierarchy, individual roles, and corresponding responsibilities. It should also highlight each person’s strengths and qualifications for their positions.
Business Plan Organization Section
The organizational section of your business plan outlines the hierarchy of individuals involved in your business, typically in a chart format. This section identifies the President or CEO, CFO, Director of Marketing, and other roles for partnerships or multi-member LLCs. If you’re a single-person home business, this section is straightforward as you are the only person on the chart.
Although this section primarily focuses on owner members, you can include outsourced workers or virtual assistants if you plan to hire them. For example, you may have a freelance web admin, marketing assistant, or copywriter. You may even have a virtual assistant who coordinates with your other freelancers. While these individuals are not owners, they hold significant responsibilities in your business.
There are various business structures, such as sole proprietorships, partnerships, LLCs, and corporations.
Detail the Legal Structure within the Business Plan Organization and Management Section
Here is an indicative list of business structures. It would help if you talked to your accountant and legal advisors to determine which legal form is the best for your business proposition.
Sole Proprietorship
When embarking on a business venture, it’s essential to consider the various structures available. A sole proprietorship is a structure whereby the business is not regarded as separate from its owner’s finances. The owner retains complete control and responsibility for the company. However, they are unable to sell stocks or bring in new owners. The business becomes a sole proprietorship if not registered under any other structure.
Partnership
When forming a partnership, it can either be a limited partnership (LP) or a limited liability partnership (LLP). One partner assumes most liability in a limited partnership (LP). In contrast, the other partners have limited liability and control over the business. Alternatively, in a limited liability partnership (LLP), all partners have limited liability from debts and actions of other partners, and there is no general partner.
Limited Liability Company
A limited company (LTD) or limited liability company (LLC) is a mixture of business structures that mixes aspects of partnerships and corporations. It offers limited personal liability to the owner and passes profits through to their tax returns.
Corporation
There are various types of corporate structures. A C-corporation enables the issuance of stock shares, pays corporate taxes instead of personal returns, and provides the highest level of personal protection from business activities. On the other hand, nonprofit corporations are similar to C corporations. However, they do not aim to make profits and are exempt from state or federal income taxes.
More information on company legal structures is available on UK.Gov and USA.SBA websites.
Describe Your Company’s Organizational Structure
This first step illustrates the positions in your organization’s employee hierarchy and how they all relate to each other.
This is usually done graphically as a guide, using an organizational chart, or “org chart” for short. People use a Microsoft tool, i.e., PowerPoint or Excel, to help.
Organization Charts typically follow a top-down hierarchy, starting with your CEO/ Managing Director in the top box at the top of the page. Lines extend down from that person’s name to boxes containing the terms of the CEO’s direct reports.
We have included an example organizational chart below for guidelines only.
![management example in business plan Showing an organizational structure for a business](https://www.noirwolf.com/wp-content/uploads/2023/09/Org-Chart-example.webp)
Identify your business organization structure and list your team members’ strengths and skills.
Those managers then have lines extending to those who report to them, and so on, down to your lowest staff positions.
This section will give your readers a quick understanding of your management and governance structure, the size of your organization, and your lines of control and communication.
Describe your Team in your Business Plan Organization and Management Section
In your business plan’s Organization and Management section, please provide a detailed description of your team. Y ou will discuss the company’s management team, starting with the owners.
This section highlights who is involved in the running of your business and who are the support professionals. It also includes the roles and responsibilities of managers.
Suppose the company structure is a multi-owner arrangement or some other multi-owner arrangement. In that case, you’ll want to include information for every member and their percentage of ownership and ongoing involvement in the company.
It’s important to discuss how ownership interests are split, their responsibilities, what they did before securing their current position, and how they came to be involved with the company.
Here, it would help if you talked about some of your critical team members. These people are directly responsible for large portions of your business operations.
Owner/Manager/Members
Within your business o rganization and management section, y ou should introduce the team and talk about their experience, qualifications, previous companies and achievements, role in the company, and any special skills they bring with them. Please provide the following details for each owner, manager, or member of the business within your business plan:
- Percentage of ownership (if applicable)
- Level of involvement (active or silent partner)
- Type of ownership (e.g., stock options, general partner)
- Position in the company (CEO, CFO, etc.)
- Responsibilities and Duties
- Educational background
- Relevant experience and skills
- Previous employment history
- Skills that will benefit the business
- Awards or recognition received
- Compensation structure
- How each individual’s skills and experience will complement and contribute to the business’s success
Perhaps they’re an entrepreneur, business coach, exclusive advisor, or industry specialist to help you grow.
This is an ideal opportunity for companies with an Executive Board of Directors, Governance Structure, or Advisory Board to introduce them to your readers.
Executive Board
Having a board of directors is essential for your management team. Without one, you may be missing out on crucial information. This section includes details similar to those found in the ownership and management team sub-section, such as the names, areas of expertise, positions (if applicable), and involvement with the company of each board member.
Strategic Advisors
Suppose you’re looking for funding for your business or to fill a gap in your knowledge, or you may not have the funds to hire an executive board. In that case, you must inform potential partners and investors that you have a team of professionals assisting you. This includes lawyers, accountants, and any freelancers or contractors you may be working with. When listing these individuals, include their name, title, educational background, certifications, services they provide to your business, and their relationship with you (i.e., hourly rates, projects, retainer, as-needed, regular). Additionally, highlight their skills and experience that make them an asset to your team you need
Does anything else make them stand out as quality professionals (awards, past working with credible brands)?
Spotlight on the Wider Team Structure
Now, you’ve showcased the management team in its entirety. You can provide brief bios for hiring team needs or secondary members and talk at length about how the team’s combined skills complement each other and how they amplify the team’s effectiveness.
It’s also important to point out any gaps in the knowledge your team is currently suffering. Your readers will likely be savvy enough to pick up on existing holes.
Therefore, you’ll want to get ahead of these criticisms and demonstrate that you’re already aware of the positions and complementary skill sets your management team still requires and how you plan to address the knowledge gaps with future hires.
Do you need help writing your business plan o rganization and management section ?
Every successful business plan should include the organization and management section, helping you communicate your legal structure and team.
Writing a business plan can seem overwhelming, especially when starting a small, one-person business. However, it can be a reasonably simple task. This section of the plan should be updated if there are any changes to the organization structure or team members, such as additional training, awards, or other resume changes that benefit the business.
Creating your comprehensive business plan takes planning, research, time, and a herculean effort. If, at any point, the work becomes too much to handle, we can step in to assist.
Do you want an expert “second opinion” before creating your business plan or financial forecasts? Let’s talk !
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Writing the Organization and Management Section of Your Business Plan
What is the organization and management section in a business plan.
- What to Put in the Organization and Management Section
Organization
The management team, helpful tips to write this section, frequently asked questions (faqs).
vm / E+ / Getty Images
Every business plan needs an organization and management section. This document will help you convey your vision for how your business will be structured. Here's how to write a good one.
Key Takeaways
- This section of your business plan details your corporate structure.
- It should explain the hierarchy of management, including details about the owners, the board of directors, and any professional partners.
- The point of this section is to clarify who will be in charge of each aspect of your business, as well as how those individuals will help the business succeed.
The organization and management section of your business plan should summarize information about your business structure and team. It usually comes after the market analysis section in a business plan . It's especially important to include this section if you have a partnership or a multi-member limited liability company (LLC). However, if you're starting a home business or are writing a business plan for one that's already operating, and you're the only person involved, then you don't need to include this section.
What To Put in the Organization and Management Section
You can separate the two terms to better understand how to write this section of the business plan.
The "organization" in this section refers to how your business is structured and the people involved. "Management" refers to the responsibilities different managers have and what those individuals bring to the company.
In the opening of the section, you want to give a summary of your management team, including size, composition, and a bit about each member's experience.
For example, you might write something like "Our management team of five has more than 20 years of experience in the industry."
The organization section sets up the hierarchy of the people involved in your business. It's often set up in a chart form. If you have a partnership or multi-member LLC, this is where you indicate who is president or CEO, the CFO, director of marketing, and any other roles you have in your business. If you're a single-person home business, this becomes easy as you're the only one on the chart.
Technically, this part of the plan is about owner members, but if you plan to outsource work or hire a virtual assistant, you can include them here, as well. For example, you might have a freelance webmaster, marketing assistant, and copywriter. You might even have a virtual assistant whose job it is to work with your other freelancers. These people aren't owners but have significant duties in your business.
Some common types of business structures include sole proprietorships, partnerships, LLCs, and corporations.
Sole Proprietorship
This type of business isn't a separate entity. Instead, business assets and liabilities are entwined with your personal finances. You're the sole person in charge, and you won't be allowed to sell stock or bring in new owners. If you don't register as any other kind of business, you'll automatically be considered a sole proprietorship.
Partnership
Partnerships can be either limited (LP) or limited liability (LLP). LPs have one general partner who takes on the bulk of the liability for the company, while all other partner owners have limited liability (and limited control over the business). LLPs are like an LP without a general partner; all partners have limited liability from debts as well as the actions of other partners.
Limited Liability Company
A limited liability company (LLC) combines elements of partnership and corporate structures. Your personal liability is limited, and profits are passed through to your personal returns.
Corporation
There are many variations of corporate structure that an organization might choose. These include C corps, which allow companies to issue stock shares, pay corporate taxes (rather than passing profits through to personal returns), and offer the highest level of personal protection from business activities. There are also nonprofit corporations, which are similar to C corps, but they don't seek profits and don't pay state or federal income taxes.
This section highlights what you and the others involved in the running of your business bring to the table. This not only includes owners and managers but also your board of directors (if you have one) and support professionals. Start by indicating your business structure, and then list the team members.
Owner/Manager/Members
Provide the following information on each owner/manager/member:
- Percentage of ownership (LLC, corporation, etc.)
- Extent of involvement (active or silent partner)
- Type of ownership (stock options, general partner, etc.)
- Position in the business (CEO, CFO, etc.)
- Duties and responsibilities
- Educational background
- Experience or skills that are relevant to the business and the duties
- Past employment
- Skills will benefit the business
- Awards and recognition
- Compensation (how paid)
- How each person's skills and experience will complement you and each other
Board of Directors
A board of directors is another part of your management team. If you don't have a board of directors, you don't need this information. This section provides much of the same information as in the ownership and management team sub-section.
- Position (if there are positions)
- Involvement with the company
Even a one-person business could benefit from a small group of other business owners providing feedback, support, and accountability as an advisory board.
Support Professionals
Especially if you're seeking funding, let potential investors know you're on the ball with a lawyer, accountant, and other professionals that are involved in your business. This is the place to list any freelancers or contractors you're using. Like the other sections, you'll want to include:
- Background information such as education or certificates
- Services provided to your business
- Relationship information (retainer, as-needed, regular, etc.)
- Skills and experience making them ideal for the work you need
- Anything else that makes them stand out as quality professionals (awards, etc.)
Writing a business plan seems like an overwhelming activity, especially if you're starting a small, one-person business. But writing a business plan can be fairly simple.
Like other parts of the business plan, this is a section you'll want to update if you have team member changes, or if you and your team members receive any additional training, awards, or other resume changes that benefit the business.
Because it highlights the skills and experience you and your team offer, it can be a great resource to refer to when seeking publicity and marketing opportunities. You can refer to it when creating your media kit or pitching for publicity.
Why are organization and management important to a business plan?
The point of this section is to clarify who's in charge of what. This document can clarify these roles for yourself, as well as investors and employees.
What should you cover in the organization and management section of a business plan?
The organization and management section should explain the chain of command , roles, and responsibilities. It should also explain a bit about what makes each person particularly well-suited to take charge of their area of the business.
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Business plans might seem like an old-school stiff-collared practice, but they deserve a place in the startup realm, too. It’s probably not going to be the frame-worthy document you hang in the office—yet, it may one day be deserving of the privilege.
Whether you’re looking to win the heart of an angel investor or convince a bank to lend you money, you’ll need a business plan. And not just any ol’ notes and scribble on the back of a pizza box or napkin—you’ll need a professional, standardized report.
Bah. Sounds like homework, right?
Yes. Yes, it does.
However, just like bookkeeping, loan applications, and 404 redirects, business plans are an essential step in cementing your business foundation.
Don’t worry. We’ll show you how to write a business plan without boring you to tears. We’ve jam-packed this article with all the business plan examples, templates, and tips you need to take your non-existent proposal from concept to completion.
Table of Contents
What Is a Business Plan?
Tips to Make Your Small Business Plan Ironclad
How to Write a Business Plan in 6 Steps
Startup Business Plan Template
Business Plan Examples
Work on Making Your Business Plan
How to Write a Business Plan FAQs
What is a business plan why do you desperately need one.
A business plan is a roadmap that outlines:
- Who your business is, what it does, and who it serves
- Where your business is now
- Where you want it to go
- How you’re going to make it happen
- What might stop you from taking your business from Point A to Point B
- How you’ll overcome the predicted obstacles
While it’s not required when starting a business, having a business plan is helpful for a few reasons:
- Secure a Bank Loan: Before approving you for a business loan, banks will want to see that your business is legitimate and can repay the loan. They want to know how you’re going to use the loan and how you’ll make monthly payments on your debt. Lenders want to see a sound business strategy that doesn’t end in loan default.
- Win Over Investors: Like lenders, investors want to know they’re going to make a return on their investment. They need to see your business plan to have the confidence to hand you money.
- Stay Focused: It’s easy to get lost chasing the next big thing. Your business plan keeps you on track and focused on the big picture. Your business plan can prevent you from wasting time and resources on something that isn’t aligned with your business goals.
Beyond the reasoning, let’s look at what the data says:
- Simply writing a business plan can boost your average annual growth by 30%
- Entrepreneurs who create a formal business plan are 16% more likely to succeed than those who don’t
- A study looking at 65 fast-growth companies found that 71% had small business plans
- The process and output of creating a business plan have shown to improve business performance
Convinced yet? If those numbers and reasons don’t have you scrambling for pen and paper, who knows what will.
Don’t Skip: Business Startup Costs Checklist
Before we get into the nitty-gritty steps of how to write a business plan, let’s look at some high-level tips to get you started in the right direction:
Be Professional and Legit
You might be tempted to get cutesy or revolutionary with your business plan—resist the urge. While you should let your brand and creativity shine with everything you produce, business plans fall more into the realm of professional documents.
Think of your business plan the same way as your terms and conditions, employee contracts, or financial statements. You want your plan to be as uniform as possible so investors, lenders, partners, and prospective employees can find the information they need to make important decisions.
If you want to create a fun summary business plan for internal consumption, then, by all means, go right ahead. However, for the purpose of writing this external-facing document, keep it legit.
Know Your Audience
Your official business plan document is for lenders, investors, partners, and big-time prospective employees. Keep these names and faces in your mind as you draft your plan.
Think about what they might be interested in seeing, what questions they’ll ask, and what might convince (or scare) them. Cut the jargon and tailor your language so these individuals can understand.
Remember, these are busy people. They’re likely looking at hundreds of applicants and startup investments every month. Keep your business plan succinct and to the point. Include the most pertinent information and omit the sections that won’t impact their decision-making.
Invest Time Researching
You might not have answers to all the sections you should include in your business plan. Don’t skip over these!
Your audience will want:
- Detailed information about your customers
- Numbers and solid math to back up your financial claims and estimates
- Deep insights about your competitors and potential threats
- Data to support market opportunities and strategy
Your answers can’t be hypothetical or opinionated. You need research to back up your claims. If you don’t have that data yet, then invest time and money in collecting it. That information isn’t just critical for your business plan—it’s essential for owning, operating, and growing your company.
Stay Realistic
Your business may be ambitious, but reign in the enthusiasm just a teeny-tiny bit. The last thing you want to do is have an angel investor call BS and say “I’m out” before even giving you a chance.
The folks looking at your business and evaluating your plan have been around the block—they know a thing or two about fact and fiction. Your plan should be a blueprint for success. It should be the step-by-step roadmap for how you’re going from Point A to Point B.
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How to Write a Business Plan—6 Essential Elements
Not every business plan looks the same, but most share a few common elements. Here’s what they typically include:
- Executive Summary
- Business Overview
- Products and Services
- Market Analysis
- Competitive Analysis
- Financial Strategy
Below, we’ll break down each of these sections in more detail.
1. Executive Summary
While your executive summary is the first page of your business plan, it’s the section you’ll write last. That’s because it summarizes your entire business plan into a succinct one-pager.
Begin with an executive summary that introduces the reader to your business and gives them an overview of what’s inside the business plan.
Your executive summary highlights key points of your plan. Consider this your elevator pitch. You want to put all your juiciest strengths and opportunities strategically in this section.
2. Business Overview
In this section, you can dive deeper into the elements of your business, including answering:
- What’s your business structure? Sole proprietorship, LLC, corporation, etc.
- Where is it located?
- Who owns the business? Does it have employees?
- What problem does it solve, and how?
- What’s your mission statement? Your mission statement briefly describes why you are in business. To write a proper mission statement, brainstorm your business’s core values and who you serve.
Don’t overlook your mission statement. This powerful sentence or paragraph could be the inspiration that drives an investor to take an interest in your business. Here are a few examples of powerful mission statements that just might give you the goosebumps:
- Patagonia: Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.
- Tesla: To accelerate the world’s transition to sustainable energy.
- InvisionApp : Question Assumptions. Think Deeply. Iterate as a Lifestyle. Details, Details. Design is Everywhere. Integrity.
- TED : Spread ideas.
- Warby Parker : To offer designer eyewear at a revolutionary price while leading the way for socially conscious businesses.
3. Products and Services
As the owner, you know your business and the industry inside and out. However, whoever’s reading your document might not. You’re going to need to break down your products and services in minute detail.
For example, if you own a SaaS business, you’re going to need to explain how this business model works and what you’re selling.
You’ll need to include:
- What services you sell: Describe the services you provide and how these will help your target audience.
- What products you sell: Describe your products (and types if applicable) and how they will solve a need for your target and provide value.
- How much you charge: If you’re selling services, will you charge hourly, per project, retainer, or a mixture of all of these? If you’re selling products, what are the price ranges?
4. Market Analysis
Your market analysis essentially explains how your products and services address customer concerns and pain points. This section will include research and data on the state and direction of your industry and target market.
This research should reveal lucrative opportunities and how your business is uniquely positioned to seize the advantage. You’ll also want to touch on your marketing strategy and how it will (or does) work for your audience.
Include a detailed analysis of your target customers. This describes the people you serve and sell your product to. Be careful not to go too broad here—you don’t want to fall into the common entrepreneurial trap of trying to sell to everyone and thereby not differentiating yourself enough to survive the competition.
The market analysis section will include your unique value proposition. Your unique value proposition (UVP) is the thing that makes you stand out from your competitors. This is your key to success.
If you don’t have a UVP, you don’t have a way to take on competitors who are already in this space. Here’s an example of an ecommerce internet business plan outlining their competitive edge:
FireStarters’ competitive advantage is offering product lines that make a statement but won’t leave you broke. The major brands are expensive and not distinctive enough to satisfy the changing taste of our target customers. FireStarters offers products that are just ahead of the curve and so affordable that our customers will return to the website often to check out what’s new.
5. Competitive Analysis
Your competitive analysis examines the strengths and weaknesses of competing businesses in your market or industry. This will include direct and indirect competitors. It can also include threats and opportunities, like economic concerns or legal restraints.
The best way to sum up this section is with a classic SWOT analysis. This will explain your company’s position in relation to your competitors.
6. Financial Strategy
Your financial strategy will sum up your revenue, expenses, profit (or loss), and financial plan for the future. It’ll explain how you make money, where your cash flow goes, and how you’ll become profitable or stay profitable.
This is one of the most important sections for lenders and investors. Have you ever watched Shark Tank? They always ask about the company’s financial situation. How has it performed in the past? What’s the ongoing outlook moving forward? How does the business plan to make it happen?
Answer all of these questions in your financial strategy so that your audience doesn’t have to ask. Go ahead and include forecasts and graphs in your plan, too:
- Balance sheet: This includes your assets, liabilities, and equity.
- Profit & Loss (P&L) statement: This details your income and expenses over a given period.
- Cash flow statement: Similar to the P&L, this one will show all cash flowing into and out of the business each month.
It takes cash to change the world—lenders and investors get it. If you’re short on funding, explain how much money you’ll need and how you’ll use the capital. Where are you looking for financing? Are you looking to take out a business loan, or would you rather trade equity for capital instead?
Read More: 16 Financial Concepts Every Entrepreneur Needs to Know
Startup Business Plan Template (Copy/Paste Outline)
Ready to write your own business plan? Copy/paste the startup business plan template below and fill in the blanks.
Executive Summary Remember, do this last. Summarize who you are and your business plan in one page.
Business Overview Describe your business. What’s it do? Who owns it? How’s it structured? What’s the mission statement?
Products and Services Detail the products and services you offer. How do they work? What do you charge?
Market Analysis Write about the state of the market and opportunities. Use date. Describe your customers. Include your UVP.
Competitive Analysis Outline the competitors in your market and industry. Include threats and opportunities. Add a SWOT analysis of your business.
Financial Strategy Sum up your revenue, expenses, profit (or loss), and financial plan for the future. If you’re applying for a loan, include how you’ll use the funding to progress the business.
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5 Frame-Worthy Business Plan Examples
Want to explore other templates and examples? We got you covered. Check out these 5 business plan examples you can use as inspiration when writing your plan:
- SBA Wooden Grain Toy Company
- SBA We Can Do It Consulting
- OrcaSmart Business Plan Sample
- Plum Business Plan Template
- PandaDoc Free Business Plan Templates
Get to Work on Making Your Business Plan
If you find you’re getting stuck on perfecting your document, opt for a simple one-page business plan —and then get to work. You can always polish up your official plan later as you learn more about your business and the industry.
Remember, business plans are not a requirement for starting a business—they’re only truly essential if a bank or investor is asking for it.
Ask others to review your business plan. Get feedback from other startups and successful business owners. They’ll likely be able to see holes in your planning or undetected opportunities—just make sure these individuals aren’t your competitors (or potential competitors).
Your business plan isn’t a one-and-done report—it’s a living, breathing document. You’ll make changes to it as you grow and evolve. When the market or your customers change, your plan will need to change to adapt.
That means when you’re finished with this exercise, it’s not time to print your plan out and stuff it in a file cabinet somewhere. No, it should sit on your desk as a day-to-day reference. Use it (and update it) as you make decisions about your product, customers, and financial plan.
Review your business plan frequently, update it routinely, and follow the path you’ve developed to the future you’re building.
Keep Learning: New Product Development Process in 8 Easy Steps
What financial information should be included in a business plan?
Be as detailed as you can without assuming too much. For example, include your expected revenue, expenses, profit, and growth for the future.
What are some common mistakes to avoid when writing a business plan?
The most common mistake is turning your business plan into a textbook. A business plan is an internal guide and an external pitching tool. Cut the fat and only include the most relevant information to start and run your business.
Who should review my business plan before I submit it?
Co-founders, investors, or a board of advisors. Otherwise, reach out to a trusted mentor, your local chamber of commerce, or someone you know that runs a business.
Ready to Write Your Business Plan?
Don’t let creating a business plan hold you back from starting your business. Writing documents might not be your thing—that doesn’t mean your business is a bad idea.
Let us help you get started.
Join our free training to learn how to start an online side hustle in 30 days or less. We’ll provide you with a proven roadmap for how to find, validate, and pursue a profitable business idea (even if you have zero entrepreneurial experience).
Stuck on the ideas part? No problem. When you attend the masterclass, we’ll send you a free ebook with 100 of the hottest side hustle trends right now. It’s chock full of brilliant business ideas to get you up and running in the right direction.
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About Jesse Sumrak
Jesse Sumrak is a writing zealot focused on creating killer content. He’s spent almost a decade writing about startup, marketing, and entrepreneurship topics, having built and sold his own post-apocalyptic fitness bootstrapped business. A writer by day and a peak bagger by night (and early early morning), you can usually find Jesse preparing for the apocalypse on a precipitous peak somewhere in the Rocky Mountains of Colorado.
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How to Write the Management Team Section of a Business Plan + Examples
Written by Dave Lavinsky
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Over the last 20+ years, we’ve written business plans for over 4,000 companies and hundreds of thousands of others have used the best business plan template and our other business planning materials.
From this vast experience, we’ve gained valuable insights on how to write a business plan effectively , specifically in the management section.
What is a Management Team Business Plan?
A management team business plan is a section in a comprehensive business plan that introduces and highlights the key members of the company’s management team. This part provides essential details about the individuals responsible for leading and running the business, including their backgrounds, skills, and experience.
It’s crucial for potential investors and stakeholders to evaluate the management team’s competence and qualifications, as a strong team can instill confidence in the company’s ability to succeed.
Why is the Management Team Section of a Business Plan Important?
Your management team plan has 3 goals:
- To prove to you that you have the right team to execute on the opportunity you have defined, and if not, to identify who you must hire to round out your current team
- To convince lenders and investors (e.g., angel investors, venture capitalists) to fund your company (if needed)
- To document how your Board (if applicable) can best help your team succeed
What to Include in Your Management Team Section
There are two key elements to include in your management team business plan as follows:
Management Team Members
For each key member of your team, document their name, title, and background.
Their backgrounds are most important in telling you and investors they are qualified to execute. Describe what positions each member has held in the past and what they accomplished in those positions. For example, if your VP of Sales was formerly the VP of Sales for another company in which they grew sales from zero to $10 million, that would be an important and compelling accomplishment to document.
Importantly, try to relate your team members’ past job experience with what you need them to accomplish at your company. For example, if a former high school principal was on your team, you could state that their vast experience working with both teenagers and their parents will help them succeed in their current position (particularly if the current position required them to work with both customer segments).
This is true for a management team for a small business, a medium-sized or large business.
Management Team Gaps
In this section, detail if your management team currently has any gaps or missing individuals. Not having a complete team at the time you develop your business plan. But, you must show your plan to complete your team.
As such, describe what positions are missing and who will fill the positions. For example, if you know you need to hire a VP of Marketing, state this. Further, state the job description of this person. For example, you might say that this hire will have 10 years of experience managing a marketing team, establishing new accounts, working with social media marketing, have startup experience, etc.
To give you a “checklist” of the employees you might want to include in your Management Team Members and/or Gaps sections, below are the most common management titles at a growing startup (note that many are specific to tech startups):
- Founder, CEO, and/or President
- Chief Operating Officer
- Chief Financial Officer
- VP of Sales
- VP of Marketing
- VP of Web Development and/or Engineering
- UX Designer/Manager
- Product Manager
- Digital Marketing Manager
- Business Development Manager
- Account Management/Customer Service Manager
- Sales Managers/Sales Staff
- Board Members
If you have a Board of Directors or Board of Advisors, you would include the bios of the members of your board in this section.
A Board of Directors is a paid group of individuals who help guide your company. Typically startups do not have such a board until they raise VC funding.
If your company is not at this stage, consider forming a Board of Advisors. Such a board is ideal particularly if your team is missing expertise and/or experience in certain areas. An advisory board includes 2 to 8 individuals who act as mentors to your business. Usually, you meet with them monthly or quarterly and they help answer questions and provide strategic guidance. You typically do not pay advisory board members with cash, but offering them options in your company is a best practice as it allows you to attract better board members and better motivate them.
Management Team Business Plan Example
Below are examples of how to include your management section in your business plan.
Key Team Members
Jim Smith, Founder & CEO
Jim has 15 years of experience in online software development, having co-founded two previous successful online businesses. His first company specialized in developing workflow automation software for government agencies and was sold to a public company in 2003. Jim’s second company developed a mobile app for parents to manage their children’s activities, which was sold to a large public company in 2014. Jim has a B.S. in computer science from MIT and an M.B.A from the University of Chicago
Bill Jones, COO
Bill has 20 years of sales and business development experience from working with several startups that he helped grow into large businesses. He has a B.S. in mechanical engineering from M.I.T., where he also played Division I lacrosse for four years.
We currently have no gaps in our management team, but we plan to expand our team by hiring a Vice President of Marketing to be responsible for all digital marketing efforts.
Vance Williamson, Founder & CEO
Prior to founding GoDoIt, Vance was the CIO of a major corporation with more than 100 retail locations. He oversaw all IT initiatives including software development, sales technology, mobile apps for customers and employees, security systems, customer databases/CRM platforms, etc. He has a B.S in computer science and an MBA in operations management from UCLA.
We currently have two gaps in our Management Team:
A VP of Sales with 10 years of experience managing sales teams, overseeing sales processes, working with manufacturers, establishing new accounts, working with digital marketing/advertising agencies to build brand awareness, etc.
In addition, we need to hire a VP of Marketing with experience creating online marketing campaigns that attract new customers to our site.
How to Finish Your Business Plan in 1 Day!
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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.
Click here to see how Growthink’s professional business plan consulting services can create your business plan for you.
Other Resources for Writing Your Business Plan
- How to Write an Executive Summary
- How to Expertly Write the Company Description in Your Business Plan
- How to Write the Market Analysis Section of a Business Plan
- The Customer Analysis Section of Your Business Plan
- Completing the Competitive Analysis Section of Your Business Plan
- Financial Assumptions and Your Business Plan
- How to Create Financial Projections for Your Business Plan
- Everything You Need to Know about the Business Plan Appendix
- Business Plan Conclusion: Summary & Recap
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How to Write a Business Plan: Step-by-Step Guide + Examples
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Noah Parsons
24 min. read
Updated July 29, 2024
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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 business planning
If you’re reading this guide, then you already know why you need a business plan .
You understand that planning helps you:
- Raise money
- Grow strategically
- Keep your business on the right track
As you start to write your 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 completing your 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
This 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
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
Last, but certainly not least, is your financial plan chapter.
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 for your 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 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.
Having 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 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.
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Table of Contents
- Use AI to help write your plan
- Common planning mistakes
- Manage with your business plan
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How To Write A Business Plan (2024 Guide)
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Updated: Apr 17, 2024, 11:59am
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Table of Contents
Brainstorm an executive summary, create a company description, brainstorm your business goals, describe your services or products, conduct market research, create financial plans, bottom line, frequently asked questions.
Every business starts with a vision, which is distilled and communicated through a business plan. In addition to your high-level hopes and dreams, a strong business plan outlines short-term and long-term goals, budget and whatever else you might need to get started. In this guide, we’ll walk you through how to write a business plan that you can stick to and help guide your operations as you get started.
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Drafting the Summary
An executive summary is an extremely important first step in your business. You have to be able to put the basic facts of your business in an elevator pitch-style sentence to grab investors’ attention and keep their interest. This should communicate your business’s name, what the products or services you’re selling are and what marketplace you’re entering.
Ask for Help
When drafting the executive summary, you should have a few different options. Enlist a few thought partners to review your executive summary possibilities to determine which one is best.
After you have the executive summary in place, you can work on the company description, which contains more specific information. In the description, you’ll need to include your business’s registered name , your business address and any key employees involved in the business.
The business description should also include the structure of your business, such as sole proprietorship , limited liability company (LLC) , partnership or corporation. This is the time to specify how much of an ownership stake everyone has in the company. Finally, include a section that outlines the history of the company and how it has evolved over time.
Wherever you are on the business journey, you return to your goals and assess where you are in meeting your in-progress targets and setting new goals to work toward.
Numbers-based Goals
Goals can cover a variety of sections of your business. Financial and profit goals are a given for when you’re establishing your business, but there are other goals to take into account as well with regard to brand awareness and growth. For example, you might want to hit a certain number of followers across social channels or raise your engagement rates.
Another goal could be to attract new investors or find grants if you’re a nonprofit business. If you’re looking to grow, you’ll want to set revenue targets to make that happen as well.
Intangible Goals
Goals unrelated to traceable numbers are important as well. These can include seeing your business’s advertisement reach the general public or receiving a terrific client review. These goals are important for the direction you take your business and the direction you want it to go in the future.
The business plan should have a section that explains the services or products that you’re offering. This is the part where you can also describe how they fit in the current market or are providing something necessary or entirely new. If you have any patents or trademarks, this is where you can include those too.
If you have any visual aids, they should be included here as well. This would also be a good place to include pricing strategy and explain your materials.
This is the part of the business plan where you can explain your expertise and different approach in greater depth. Show how what you’re offering is vital to the market and fills an important gap.
You can also situate your business in your industry and compare it to other ones and how you have a competitive advantage in the marketplace.
Other than financial goals, you want to have a budget and set your planned weekly, monthly and annual spending. There are several different costs to consider, such as operational costs.
Business Operations Costs
Rent for your business is the first big cost to factor into your budget. If your business is remote, the cost that replaces rent will be the software that maintains your virtual operations.
Marketing and sales costs should be next on your list. Devoting money to making sure people know about your business is as important as making sure it functions.
Other Costs
Although you can’t anticipate disasters, there are likely to be unanticipated costs that come up at some point in your business’s existence. It’s important to factor these possible costs into your financial plans so you’re not caught totally unaware.
Business plans are important for businesses of all sizes so that you can define where your business is and where you want it to go. Growing your business requires a vision, and giving yourself a roadmap in the form of a business plan will set you up for success.
How do I write a simple business plan?
When you’re working on a business plan, make sure you have as much information as possible so that you can simplify it to the most relevant information. A simple business plan still needs all of the parts included in this article, but you can be very clear and direct.
What are some common mistakes in a business plan?
The most common mistakes in a business plan are common writing issues like grammar errors or misspellings. It’s important to be clear in your sentence structure and proofread your business plan before sending it to any investors or partners.
What basic items should be included in a business plan?
When writing out a business plan, you want to make sure that you cover everything related to your concept for the business, an analysis of the industry―including potential customers and an overview of the market for your goods or services―how you plan to execute your vision for the business, how you plan to grow the business if it becomes successful and all financial data around the business, including current cash on hand, potential investors and budget plans for the next few years.
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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 .
![management example in business plan Business Plan - Document with the words Business Plan on the title](https://cdn.corporatefinanceinstitute.com/assets/business-plan1-1024x682.jpeg)
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.
![management example in business plan Business Plan Template - Components](https://cdn.corporatefinanceinstitute.com/assets/business-plan.png)
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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First Steps: Writing the Management Section of Your Business Plan This quick guide offers tips that will help you create the management section for your business plan.
By Teresa Ciulla Jan 4, 2015
Opinions expressed by Entrepreneur contributors are their own.
In their book Write Your Business Plan , the staff of Entrepreneur Media, Inc. offer an in-depth understanding of what's essential to any business plan, what's appropriate for your venture, and what it takes to ensure success. In this edited excerpt, the authors discuss what type of information you should include in the management section of your business plan.
In the management section of your business plan, you describe who'll run the company. This may be no more than a simple paragraph noting that you'll be the only executive and describing your background. Or it may be a major section in the plan, consisting of an organizational chart outlining interrelationships among every department and manager in the company, plus bios of all key executives.
Time and again, financiers utter some variation of the following statement: "I don't invest in ideas; I invest in people." Whether this is the whole story—investors certainly prefer capable people with good ideas to inept people with good ideas—there's no doubt that you, and the people who run your company, will receive considerable scrutiny from financiers as well as from customers, suppliers and anyone else with an interest in your plan. People are, after all, a company's most important asset. Not adequately addressing this issue in a business plan is a serious failing. Luckily, it's one of the easiest parts.
Be sure to include all of the following parts, where applicable:
You. Before you can impress people with your management team, it's important to let your readers know who's at the helm and who's selecting the management team. You, therefore, have to let them know your background, including your vision, your credentials, and why you chose the management team you did. You need to briefly explain what's expected of this management team and the role you see them playing in the future of this business.
Your managers. Identifying your managers is about presenting what they bring to the table. You can provide this by describing them in terms of the following characteristics:
Education . Impressive educational credentials among company managers provide strong reasons for an investor or other plan reader to feel good about your company. Use your judgment in deciding what educational background to include and how to emphasize it.
Employment . Prior work experience in a related field is something many investors look for. If you've spent ten years in management in the retail men's apparel business before opening a tuxedo outlet, an investor can feel confident that you know what you're doing. Likewise, you'll want to explain the key, appropriate positions of your team members. Describe any relevant jobs in terms of job title, years of experience, names of employers, etc. Feel free to omit any irrelevant experience.
Skills . In addition to pointing out that you were a district sales manager for a stereo-equipment wholesaler, you should describe your responsibilities and the skills you honed while fulfilling them. Again, list the skills that your management team has that pertain to this business. Each time you mention skills that you or a member of your management team has spent years acquiring at another company, it will be another reason for an investor to believe you can do it at your own company.
Accomplishments. If you or one of your team members has been awarded patents, achieved record sales gains or once opened an unbelievable number of new stores in the space of a year, now's the time to tell about it. And don't brag: Just be factual and remember to quantify. If, for example, you have 12 patents or your sales manager had five years of 30 percent annual sales gains, this is the stuff investors and others reading your business plan will want to see.
Personal . Investors want to know with whom they're dealing in terms of the personal side, too. Personal information on each member of your management team may include age, city of residence, notable charitable or community activities and, last but far from least, personal motivation for joining the company. Investors like to see vigorous, committed, involved people in the companies they back. Mentioning one or two relevant personal details of your key managers may help investors feel they know what they're getting into, especially in today's increasingly transparent business climate.
In a longer plan, when you give your management team's background and describe their titles, go on and tell readers exactly what each member of the management team will be expected to do in the company. This may be especially important in a startup, in which not every position is filled from the start. If your marketing work is going to be handled by the CFO until you get a little further down the road, let readers know this up front. You certainly can't expect them to figure that out on their own.
Board members. Your board members, and their reasons for being included, should be a brief part of your business plan. A board of directors gives you access to expertise, provided you choose them wisely, but at the cost of giving up control of the business to them. Technically, the officers of a corporation report to the board of directors, who bear the ultimate responsibility for the proper management of the company.
A board of advisors is a less-formal entity. You can have the same kind of people on an advisory board but you don't report to them nor do they have the same power as a board of directors. Your board should be able to challenge your thinking, help you solve knotty problems, and even change management if necessary.
Outside professionals. Some of the most important people who'll do work for you won't work for you. Your attorney, your accountant and your insurance broker are all crucial members of your team. Your business plan should reassure readers that you have your bases covered in these important professional positions.
Investors want profit. They don't just give money to people they like or admire. But it's also true that if they don't like, admire or at least respect the people running your company, they're likely to look elsewhere. The management section of your plan is where you tell them about the human side of the equation. You can't control your readers' responses to that, but you owe it to them to provide the information.
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Top 7 Business Management Plan Examples with Templates and Samples
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When Dropbox was founded in 2007, it faced stiff competition in the crowded cloud storage market. The company's co-founders, Drew Houston, and Arash Ferdowsi, developed a thorough business management plan that outlined their goals, strategies, and financial projections.
With the plan as their guide, the duo managed to secure funding and created a product that was simple, reliable, and easy to use.
As Dropbox grew, Houston and Ferdowsi continued to refine their business management plan, using it as a roadmap for achieving their goals and navigating challenges. The plan helped them prioritize high-quality products and customer service standards.
Craft a Winning Business Plan with Slideteam's Professionally Designed Templates!
Our PPT Templates are invaluable tools for entrepreneurs and business owners aspiring to create effective business management plans. Use these templates to integrate and manage your thoughts and ideas logically and coherently, making it easier to communicate your plan to others, such as investors and lenders.
Browse the pre-designed templates below to unlock your business potential!
Each of the templates is 100% editable and customizable. The content-ready nature offers you the starting point, the editability feature offers you the flexibility to adapt to audience profile and needs.
Let’s take a tour of the templates now!
Template 1: Agenda Checklist Business Management Planning Strategy Marketing
Your diverse business needs this PPT Template to create a comprehensive and effective marketing plan, considering all the critical elements of business management planning, strategy development, and execution. You can have up to four bulleted points highlighted using this presentation template. The idea is to give the heading, followed by a brief description of it. For instance, it could be resources, the goals, the cost involved and the timeline for the business project under consideration.
![Agenda Agenda](https://www.slideteam.net/wp/wp-content/uploads/2023/06/Agenda-1.png)
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Template 2: Venn with Five Circles Business Management Planning
A Venn diagram with five circles illustrates the relationships and intersections between five distinct sets or categories. With this template presentation, you can accomplish this. Visualize and understand the interdependencies between aspects of business management that interact to create a profitable result for your company. Showcase your expertise in how strategy, finance, marketing, operations, and human resources overlap and influence each other. This insight lets you consider broader implications and connections when making decisions or implementing changes.
![Venn Venn](https://www.slideteam.net/wp/wp-content/uploads/2023/06/Venn-2.png)
Template 3: Org Structure Icon for Business Management Planning
This PPT design addresses how your company operates and how units and employees are organized. Download this template to discuss and clarify the roles and responsibilities of individuals and groups, facilitate efficient coordination and collaboration, and enable effective management of resources. The idea, as always, is to ensure that organizational priorities figure in the business management plan that is finally prepared and outlined.
![Org Structure Icon for Business Management Planning Org Structure Icon for Business Management Planning](https://www.slideteam.net/wp/wp-content/uploads/2023/06/Org-Structure-Icon-for-Business-Management-Planning-3.png)
Template 4: Business Management Plan Executive Overview
The strategic objectives and goals, performance metrics, and key performance indicators (KPIs) are crucial factors that must be defined while designing a business plan. You can convert these important aspects using this Business Management Plan PPT Layout on a single slide. This template assists you in aligning the company's mission and vision with specific strategies and initiatives. Plus, it enables executives to assess strategies and initiatives potential impact, risks, and benefits. The segment that presents financial KPIs in color-coded bar graphs is the USP of this presentation template. Get it now!
![Business management plan executive overview Business management plan executive overview](https://www.slideteam.net/wp/wp-content/uploads/2023/06/Business-management-plan-executive-overview-4.png)
Template 5: Matrix Business Management Planning Strategy Marketing Planning
Analyze market segments based on customer demographics, needs, preferences, and profitability using this matrix template design. This layout can assist you in making decisions on product development, resource allocation, and divestment. Download this template using the link below to create a visually appealing sketch of a comprehensive and comparative analysis.
![Matrix Matrix](https://www.slideteam.net/wp/wp-content/uploads/2023/06/Matrix-5.png)
Template 6: Quotes Business Management Planning Strategy Marketing Communication
Use this PPT design to inspire and engage the audience with motivational messages, thought-provoking ideas, or words of wisdom. Quote templates are valuable for enhancing communication and presentations. Use this slide in newsletters, reports, or speeches to provide impactful and memorable statements to support your critical business messages and themes.
![Quotes Quotes](https://www.slideteam.net/wp/wp-content/uploads/2023/06/Quotes-6.png)
Template 7: Mind Map Knowledge Business Management Planning Strategy Planning
With this visually-appealing mind map PPT Slide, you can organize and represent your business information, ideas, and knowledge in a hierarchical and interconnected manner. Evoke a central topic in the center of the mind map and create branches radiating from it. Use colors, font sizes, and visual hierarchy to create this model of a mind map. Use the link below to download this adaptable slide to comprehend information more effectively.
![Mind Map Mind Map](https://www.slideteam.net/wp/wp-content/uploads/2023/06/Mind-Map-7.png)
Template 8: Repeating Process for Business Management Planning
Adopt a professional, systematic approach where specific steps or actions are carried out on a recurring basis to ensure effective and continuous planning. Implement a cyclical or iterative process to review and evaluate existing business management plans. This PPT Template assists you in tracking progress, monitoring results, and creating a historical record for reference and future analysis. The six-step process outlined that starts with formulation of organizational goals and ends with monitoring plans is the USP.
![Repeating Process for Business Management Planning Repeating Process for Business Management Planning](https://www.slideteam.net/wp/wp-content/uploads/2023/06/Repeating-Process-for-Business-Management-Planning-8.png)
Charting a Course for Success Using SlideTeam's Business Management Plan Templates
With a clear roadmap and actionable strategies, a business management plan empowers you to make informed decisions, navigate complexities, and keep ahead of the competition. From market analysis to resource allocation, it provides a framework that aligns your business goals with targeted execution. Ignite success, optimize operations, and achieve sustainable profitability using the above presentation templates!
PS Unleash your strategic genius with this dynamic planning guide , the secret weapon to propel your business toward extraordinary success.
FAQs on Business Management Plan
What is a business management plan.
A business management plan is a crisp and strategic document delineating the goals, stratagems, and actions required to effectively manage a business. It performs a roadmap role for decision-making and resource allocation. For example, a business management plan for a new restaurant would include objectives like achieving a specific number of customers and revenue targets, along with strategies for menu development, marketing, and staff training. It provides a framework for organizing operations, setting priorities, and tracking progress toward business goals. The aim is to ensure a cohesive and focused approach to managing the business.
How do you write a business management plan?
Writing a business management plan involves carefully crafting a comprehensive roadmap for success. Firstly, provide an overview of your business, highlighting its mission, values, and unique selling proposition. Conduct a thorough market analysis, identifying target audiences, competition, and market trends. Define your product or service offerings, focusing on their benefits and competitive advantages. Develop a solid marketing and sales strategy outlining reaching and attracting customers.Establish performance metrics and a monitoring system to track progress.
Furthermore, highlight your team's expertise and demonstrate a strong understanding of industry trends. Finally, ensure your plan is well-structured, visually appealing, and supported by relevant data and research. A thorough and well-written business management plan will serve as a valuable guide, helping you navigate challenges and achieve long-term success.
What are the seven steps of a business plan?
The seven steps of a business plan are:
- Start with an executive summary. Summarizing your business concept, goals, and strategies.
- Next, describe your business, target market, and competition in the market analysis section.
- Now, outline your product or service offerings and demonstrate how they meet customer needs.
- Build up a marketing and sales strategy to attract and retain customers.
- Construct an organizational structure and delineate the jobs and responsibilities of key team members.
- Present financial projections, including revenue, expenses, and funding requirements.
- Lastly, conclude with a thorough risk analysis and mitigation strategies.
What is an example of a management plan?
Objective: Enhance customer service to improve satisfaction, loyalty, and brand reputation.
- Training and Development: Implement a comprehensive training program to equip customer service representatives with modern skills, product knowledge, and effective communication techniques.
- Service Standards: Define clear service standards and expectations to deliver exceptional customer experiences consistently. Implement modern customer service tools and technologies for efficient issue resolution.
- Feedback and Evaluation: Implement a feedback system to capture customer insights, measure satisfaction levels, and identify areas for improvement. Use modern survey tools and sentiment analysis to gather and analyze feedback effectively.
- Personalization and Relationship Building: Develop personalized customer interactions, leveraging modern CRM systems and data-driven insights. Implement loyalty programs, targeted offers, and customized communication to foster long-term relationships.
- Omni-Channel Support: Offer support across multiple channels, including phone, email, live chat, and social media. Use modern customer service platforms to ensure seamless and efficient service delivery.
- Empowerment and Autonomy: Empower customer service representatives to make autonomous decisions, resolving customer issues promptly and effectively. Provide them with modern tools and resources for efficient problem-solving.
- Continuous Improvement: Analyze customer service metrics, identify trends, and implement process improvements. Encourage a culture of ongoing learning and innovation to enhance service quality.
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Business Plan Section 3: Organization and Management
This section explains how your business runs and who’s on your team. Learn how to present the information in this section of your business plan.
![management example in business plan Organization and Management](https://aofund.org/app/uploads/2021/01/whiteboard-849811-1024x576.jpg)
This section of your business plan, Organization and Management, is where you’ll explain exactly how you’re set up to make your ideas happen, plus you’ll introduce the players on your team.
As always, remember your audience. If this is a plan for your internal use, you can be a little more general than if you’ll be presenting it to a potential lender or investor. No matter what its purpose, you’ll want to break the organization and management section into two segments: one describing the way you’ve set up the company to run (its organizational structure), and the other introducing the people involved (its management).
Business Organization
Having a solid plan for how your business will run is a key component of its smooth and successful operation. Of course, you need to surround yourself with good people, but you have to set things up to enable them to work well with each other and on their own.
It’s important to define the positions in the company, which job is responsible for what, and to whom everyone will report. Over time, the structure may grow and change and you can certainly keep tweaking it as you go along, but you need to have an initial plan.
If you’re applying for funding to start a business or expand one, you may not even have employees to fit all the roles in the organization. However, you can still list them in your plan for how the company will ideally operate once you have the ability to do so.
Obviously, for small businesses, the organization will be far more streamlined and less complicated than it is for larger ones, but your business plan still needs to demonstrate an understanding of how you’ll handle the workflow. At the very least, you’ll need to touch on sales and marketing, administration, and the production and distribution of your product or the execution of your service.
For larger companies, an organizational plan with well-thought-out procedures is even more important. This is the best way to make sure you’re not wasting time duplicating efforts or dealing with internal confusion about responsibilities. A smooth-running operation runs far more efficiently and cost-effectively than one flying by the seat of its pants, and this section of your business plan will be another indication that you know what you’re doing. A large company is also likely to need additional operational categories such as human resources and possibly research and development.
One way to explain your organizational structure in the business plan is graphically. A simple diagram or flowchart can easily demonstrate levels of management and the positions within them, clearly illustrating who reports to whom, and how different divisions of the company (such as sales and marketing) relate to each other.
Here is where you can also talk about the other levels of employees in your company. Your lower-level staff will carry out the day-to-day work, so it’s important to recognize the types of people you’ll need, how many, what their qualifications should be, where you’ll find them, and what they’ll cost.
If the business will use outside consultants, freelancers, or independent contractors, mention it here as well. And talk about positions you’d want to add in the future if you’re successful enough to expand.
Business Management
Now that we understand the structure of your business, we need to meet the people who’ll be running it. Who does what, and why are they onboard? This section is important even for a single practitioner or sole proprietorship, as it will introduce you and your qualifications to the readers of your plan.
Start at the top with the legal structure and ownership of the business. If you are incorporated, say so, and detail whether you are a C or S corporation. If you haven’t yet incorporated, make sure to discuss this with your attorney and tax advisor to figure out which way to go. Whether you’re in a partnership or are a sole owner, this is where to mention it.
List the names of the owners of the business, what percent of the company each of them owns, the form of ownership (common or preferred stock, general or limited partner), and what kind of involvement they’ll have with day-to-day operations; for example, if they’re an active or silent partner.
Here’s where you’ll list the names and profiles of your management team, along with what their responsibilities are. Especially if you’re looking for funding, make sure to highlight the proven track record of these key employees. Lenders and investors will be keenly interested in their previous successes, particularly in how they relate to this current venture.
Include each person’s name and position, along with a short description of what the individual’s main duties will be. Detail his or her education, and any unique skills or experience, especially if they’re relevant to the job at hand. Mention previous employment and any industry awards or recognition related to it, along with involvement with charities or other non-profit organizations.
Think of this section as a resume-in-a-nutshell, recapping the highlights and achievements of the people you’ve chosen to surround yourself with. Actual detailed resumes for you and your management team should go in the plan’s appendix, and you can cross-reference them here. You want your readers to feel like your top staff complements you and supplements your own particular skill set. You also want readers to understand why these people are so qualified to help make your business a success.
This section will spell out the compensation for management team members, such as salary, benefits, and any profit-sharing you might be offering. If any of the team will be under contract or bound by non-compete agreements, you would mention that here, as well.
If your company will have a Board of Directors, its members also need to be listed in the business plan. Introduce each person by name and the position they’ll hold on the board. Talk about how each might be involved with the business (in addition to board meetings.
Similar to what you did for your management team, give each member’s background information, including education, experience, special skills, etc., along with any contributions they may already have had to the success of the business. Include the full resumes for your board members in the appendix.
Alternately, if you don’t have a Board of Directors, include information about an Advisory Board you’ve put together, or a panel of experts you’ve convened to help you along the way. Having either of these, by the way, is something your company might want to consider whether or not you’re putting together the organization and management section or your business plan.
NEXT ARTICLE > Business Plan Section 4: Products and Services
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- How to Write a Great Business Plan: Management Team
The ninth in a comprehensive series to help you craft the perfect business plan for your startup.
![management example in business plan How to Write a Great Business Plan: Management Team](https://images.inc.com/uploaded_files/image/1920x1080/team_364474.jpg)
This article is part of a series on how to write a great business plan .
Many investors and lenders feel the quality and experience of the management team is one of the most important factors used to evaluate the potential of a new business.
But putting work into the Management Team section will not only benefit people who may read your plan. It will also help you evaluate the skills, experiences, and resources your management team will need. Addressing your company's needs during implementation will make a major impact on your chances for success.
Key questions to answer:
- Who are the key leaders? (If actual people have not been identified, describe the type of people needed.) What are their experiences, educational backgrounds, and skills?
- Do your key leaders have industry experience? If not, what experience do they bring to the business that is applicable?
- What duties will each position perform? (Creating an organization chart might be helpful.) What authority is granted to and what responsibilities are expected in each position?
- What salary levels will be required to attract qualified candidates for each position? What is the salary structure for the company, by position?
The Management Team section for our cycling rental business could start something like this:
Jim Rouleur, Owner and Manager
Joe has over twenty years experience in the cycling business. He served for ten years as a product manager for ACME Bikes. After that he was the Operations Manager of Single Track Cycles, a full-service bike shop located in Bend, Oregon. He has an undergraduate degree in marketing from Duke University and an MBA from Virginia Commonwealth University. (A complete resume for Mr. Rouleur can be found in the Appendix.(
Mary Gearset, Assistant Manager
Mary was the 2009 U.S. Mountain Biking National Champion. She worked in product development for High Tec frames, creating custom frames and frame modifications for professional cyclists. She also has extensive customer service and sales experience, having worked for four years as the online manager of Pro Parts Unlimited, an online retailer of high-end cycling equipment and accessories.
In some instances you may also wish to describe your staffing plans.
For example, if you manufacture a product or provide a service and will hire a key skilled employee, describe that employee's credentials. Otherwise, include staffing plans in the Operations section.
One key note: Don't be tempted to add a "name" to your management team in hopes of attracting investors. "Celebrity" management team members may attract the attention of your readers, but experienced lenders and investors will immediately ask what role that person will actually play in the running of the business--and in most cases those individuals won't play any meaningful role.
If you don't have a lot of experience--but are willing to work hard to overcome that lack of experience--don't be tempted to include other people in your plan that will not actually work in the business.
If you can't survive without help, that's okay. In fact that's expected; no one does anything worthwhile on their own. Just make plans to get help from the right people.
Finally, when you create your Management section, focus on credentials but pay extra focus to what each person actually will do . Experience and reputation are great, but action is everything.
That way your Management section will answer the "Who is in charge?" question.
Next time we'll look at the next main component in a business plan: the ever-popular Financial Analysis .
More in this series:
- How to Write a Great Business Plan: Key Concepts
- How to Write a Great Business Plan: the Executive Summary
- How to Write a Great Business Plan: Overview and Objectives
- How to Write a Great Business Plan: Products and Services
- How to Write a Great Business Plan: Market Opportunities
- How to Write a Great Business Plan: Sales and Marketing
- How to Write a Great Business Plan: Competitive Analysis
- How to Write a Great Business Plan: Operations
- How to Write a Great Business Plan: Financial Analysis
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7 Business Plan Examples to Inspire Your Own (2024)
Need support creating your business plan? Check out these business plan examples for inspiration.
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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 .
7 business plan examples: section by section
The business plan examples in this article follow this template:
- Executive summary. An introductory overview of your business.
- Company description. A more in-depth and detailed description of your business and why it exists.
- Market analysis. Research-based information about the industry and your target market.
- Products and services. What you plan to offer in exchange for money.
- Marketing plan. The promotional strategy to introduce your business to the world and drive sales.
- Logistics and operations plan. Everything that happens in the background to make your business function properly.
- Financial plan. A breakdown of your numbers to show what you need to get started as well as to prove viability of profitability.
- Executive summary
Your executive summary is a page that gives a high-level overview of the rest of your business plan. It’s easiest to save this section for last.
In this free business plan template , the executive summary is four paragraphs and takes a little over half a page:
![management example in business plan A four-paragraph long executive summary for a business.](https://cdn.shopify.com/s/files/1/0070/7032/files/executive_summary_2b780640-bba6-4fa9-979f-f4b7a7baec6d.png?v=1685052930)
- 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.
![management example in business plan A company description from the website of soap brand Orris](https://cdn.shopify.com/s/files/1/0070/7032/files/orris.png?v=1685053110)
You can also go more in-depth with your company overview and include the following sections, like in the 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.”
- Industry. “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 have expanded into two new product categories.”
- Team. “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.
![management example in business plan A mission statement example on the website of apparel brand Passionfruit, alongside a picture of woman](https://cdn.shopify.com/s/files/1/0070/7032/files/mission_statement.png?v=1685053205)
- 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:
![management example in business plan A SWOT analysis table showing strengths, weaknesses, opportunities and threats](https://cdn.shopify.com/s/files/1/0070/7032/files/swot-example.png?v=1685053230)
You’ll also want to do a competitive analysis as part of the market research component of your business plan. This will tell you who you’re up against and give you ideas on how to differentiate your brand. A broad competitive analysis might include:
- Target customers
- Unique value add or what sets their products apart
- Sales pitch
- Price points for products
- Shipping policy
- 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:
![management example in business plan An example products and services section from a business plan](https://cdn.shopify.com/s/files/1/0070/7032/files/products_0d941ab8-5039-424b-8f0e-abd0716b9918.png?v=1685053278)
- 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.
- Logistics and operations plan
The Paw Print Post example considered suppliers, production, facilities, equipment, shipping and fulfillment, and inventory.
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.
![management example in business plan A sample bar chart showing business expenses by month](https://cdn.shopify.com/s/files/1/0070/7032/files/financial-metrics_example.png?v=1685053351)
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 this financial plan spreadsheet to build your own financial statements, including income statement, balance sheet, and cash-flow statement.
![management example in business plan A sample financial plan spreadsheet](https://cdn.shopify.com/s/files/1/0070/7032/files/financial-plan-spreadsheet.png?v=1685053380)
Types of business plans, and what to include for each
A one-page business plan is meant to be high level and easy to understand at a glance. You’ll want to include all of the sections, 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 outside 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 bigger picture, more-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.
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, what is the best format to write a business plan, 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.
- Cashflow: 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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Management plan 101: How to create a comprehensive plan
Last updated
31 January 2024
Reviewed by
Shawnna Johnson
A company's success begins with a comprehensive management plan. This plan becomes the North Star for the team and maintains operations integrity when problems arise.
A management plan is the framework a company needs to achieve its goals and acquire new market share. Let's explore the concept of a management plan and discuss essential strategies.
- What is a management plan?
A management plan is a document that describes how to execute, monitor, and control a project, program, business, or organization. The size and complexity of the plan depend on the scope.
The management plan's goal is to guide the team, build consistency, and help meet deadlines. Since each project involves simultaneous processes, it's easy to get off track without a plan.
A well-designed management plan can help business owners manage resources, meet goals, and plan future operations. It contains a strategy for meeting short- and long-term goals.
Management plans aren't set in stone. They are flexible enough to introduce changes according to the project's progress, economic downturns, market fluctuations, and other variables.
- Benefits of a management plan
A business can benefit from a management plan regardless of its size. Even if you have a small team, a comprehensive plan can become integral to successful operations.
No matter how many tasks you have to manage to achieve your goals, a transparent framework can maximize operational efficiency.
Resource management
Juggling numerous resources is one of the toughest tasks a company faces when executing a project. From financial to human, companies often waste these resources due to the lack of structure.
A management plan outlines the resources an organization needs for each project, allowing you to control available assets and avoid waste.
Imagine a software development firm lands a large one-time government project. A management plan can help the company see how many developers it can spare while considering ongoing work.
Goal alignment
A management plan doesn't just serve as a robust operation framework. It helps the company to set clear goals. In fact, without setting SMART goals , it can be nearly impossible to design an effective plan.
Goal clarity helps allocate resources and delegate tasks to team members. It also shows your employees how their work contributes to business success, increasing engagement and boosting productivity .
Risk mitigation
No matter how strong your business is, unexpected issues arise with internal operations and the external environment. From local security breaches to economic crises, each disruption can cause downtime and lost market share.
A management plan accounts for risks and gives your team guidelines to counter them. Your plan can minimize the impact of risk by proactively assessing and preparing for it.
Decision-making
A management plan can make your decision-making process more strategic. A robust framework ensures decision-makers have an easier time considering risks, evaluating options, and selecting the most suitable course of action.
With a management plan, there is less uncertainty for the future and more opportunities for making data-driven decisions. This is especially valuable during crises.
Performance measurement
A robust management plan establishes key performance indicators (KPIs) and metrics to evaluate the project’s progress. This simplifies ongoing monitoring and allows for timely adjustments.
Higher-level management can use the performance management instruments outlined in the plan to prioritize activities when directing the team. It simplifies the process of making adjustments and staying on track to achieving the goal.
Communication
A management plan should define communication channels at the project planning stage. It must outline exactly how all team members communicate and the reporting hierarchy. This can ensure proper accountability for each employee.
With the right approach to communication planning, you can minimize misunderstandings, waste, and duplicate work.
- How to create an effective management plan
While complex plans may require extensive blueprints, the effort you invest in creating an effective management plan can have an impressive ROI. Each step of a management plan simplifies business operations and risk mitigation.
Step 1: Outline vision and mission statements
Regardless of the project you’re working on, you must ensure it aligns with your vision and mission. This is especially important when creating a general management plan for your company's operations.
These statements guide your team when setting goals, prioritizing, and outlining key steps to achieve milestones. Ensure you’re clear on the purpose of your business, its underlying philosophy and values, and your target audience.
Step 2: Set goals
Whether you’re creating a long-term business management plan or a short-term project management plan, you need to identify goals. Even plans for short-term projects should still be part of long-term business objectives.
Ideally, you should be creating SMART goals from the start. If your current objectives are vague, consider breaking them down into smaller parts.
Since goal clarity is the power behind an effective plan, try to provide as many details as possible. Make sure all goals align with the company's mission, values, and philosophy.
While setting goals, consider focusing on negative goals as well. Outline exactly what you don't want the project to focus on. These boundaries can keep your team on track.
Step 3: Allocate resources
The next step is to outline the finances, time, people, and equipment you need to achieve the goals. How much time can you spare for this particular project? This step has a direct effect on the scope of your operations. It may also help you adjust the initial goals.
The money and workforce you can dedicate to the project must be realistic. Rely on historical company data to understand how much you can invest. If you couldn’t complete similar projects in the past, make relevant adjustments to resource distribution.
At this step, you should also plan for unexpected factors. The project's budget should include a force majeure allocation. Meanwhile, you should have a backup plan for bringing in more team players if necessary.
Step 4: Define roles
At this stage, focus on delegating project elements to team members. Clarity and detail are essential to avoid confusion.
You can create a team chart that demonstrates who is involved in the project and what activities they’re responsible for. Simplify collaboration by mentioning who each person reports to and adding contact options.
Each team member must know who to turn to for advice and information. Otherwise, you won't be able to handle any emergencies effectively.
Step 5: Create a timeline
If you have a time-bound goal, create a timeline to help your team stay on track for deadlines. A transparent schedule will also help with allocating resources.
Imagine you’re planning a rebranding. A key question is how long it will take. Without a defined timeline, this sizable project could continue indefinitely, hurting your business and affecting employee engagement .
Your goal is to make sure everyone knows when they have to deliver. Outlining this in a plan creates a North Star for the team.
Step 6: Conduct a situational analysis
To mitigate risks and support operations, you need to assess the internal and external factors that can impact your business and its projects. A SWOT analysis covers everything, including analyzing strengths, weaknesses, opportunities, and threats.
During the threat analysis, you need to identify:
Problems with the potential to disrupt the project or business operations
Any point in a timeline where risks are likely
The chance of risks and disasters
Risk triggers
Next, you need to figure out a strategy for addressing the possible risks and avoiding triggers.
Understanding what outcomes to expect if a disaster happens mitigates the negative elements, keeping the business on track.
Step 7: Share your management plan
Communicating your management plan to all the stakeholders brings everyone on board.
Share the plan with employees, managers, and investors in the most digestible way possible. For some, this plan becomes an essential tool for team management. For others, it's proof of your business' stability and potential.
Educate your team members about the elements of the management plan and teach them how to use it for their benefit. Explain how this guidance can help them achieve business goals.
Step 8: Create an executive summary
An executive summary is a concise overview of the key plan elements and highlights. It provides a high-level summary of your business's goals, strategies, and action plans.
This summary provides busy executives, stakeholders, or decision-makers with a quick understanding of the management plan without reading the entire document.
Your summary should include:
Brief business description
Mission and vision
Key objectives
Execution strategies
Major initiatives
Expected outcomes
In short, the executive summary should capture the essence of the management plan and invite the reader to explore details where necessary.
Step 9: Review and update your plan
Management plans require continuous monitoring, reviewing, and updating. As the market, economy, or internal situation changes, you may need to adjust the plan.
Make sure the plan stays relevant to your business goals and external factors. Otherwise, even the most robust risk mitigation strategy won't be able to keep the business running smoothly.
- Project management plan template
An example of a project management plan is:
Project scope :
Project goals, objectives, and deliverables
Key stakeholders and their roles and responsibilities
Project timelines and milestones
Team organization:
A project team with the required skills and expertise
Roles and responsibilities of each team member
Communication channels and reporting structures
Risk management:
Potential risks and uncertainties that could impact the project
Risk mitigation plan to address and minimize the impact of these risks
Resource allocation
Identification of available resources (staffing, equipment, budget)
Resource allocation according to the project needs and schedule
Communication plan:
Team and stakeholder communication channels
Frequency and methods of project communication (meetings, reports, emails, etc.)
Change management:
Process for managing changes to the project scope, requirements, or timeline
Roles and responsibilities for change control
Project monitoring and control:
A system to track progress, including key performance indicators (KPIs) and metrics
Corrective actions for deviations
Documentation and reporting:
A documentation plan to ensure all project-related documents are properly maintained
Reporting schedule and format for project updates
While this example works for most cases, you should tailor your management plan to the specific needs of your project and business.
- Leveraging management plans for business improvement
Business and project management plans can streamline your business operations. They give you the blueprint for achieving goals and guide the team to stay on track.
A successful management plan requires in-depth research and a full evaluation of the company's capabilities. The more you analyze historical data, the easier it will be to create a realistic plan.
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Executive Summary of a Florist: Template & Example
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- August 26, 2024
- Business Plan , Executive Summary
![management example in business plan Executive Summary of a Florist business plan](https://sharpsheets.io/wp-content/uploads/2024/08/Florist-business-plan.png.webp)
A florist business plan needs a straightforward executive summary . This part of your plan is the first thing investors and partners see, and it should clearly outline what your store is all about. It’s where you explain what makes your florist different and worth investing in.
We recommend using a two-slide PowerPoint format for this summary. The first slide should cover the basics of your business and the market you’re entering. Here, you detail your store’s products, location, and what sets you apart from others. The second slide focuses on your management team and your financial plans, highlighting the people behind the business and how you expect the store to grow financially.
This simple, two-slide approach ensures that your executive summary is easy to follow and covers all the essential points about your florist business.
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Florist Business Plan
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Florist Executive Summary: Page 1
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Business Overview
Your business overview should provide clear and concise information about your florist shop. This includes the name of your shop, its location, and a brief overview of daily operations.
In this section, it’s essential to emphasize your unique selling proposition (USP)—what makes your florist shop stand out. Whether it’s your focus on locally sourced flowers, custom floral designs, or sustainable practices, your USP should be central to your executive summary. This is your chance to captivate your audience by showcasing the distinct value your business offers in the marketplace.
Example “Blossom & Bloom Florist,” located in the bustling downtown area of Riverside, operates from a 2,000 sq. ft. space on Elm Street. The shop opens daily at 9 AM, offering a wide range of fresh bouquets, potted plants, and custom floral arrangements. The USP of Blossom & Bloom is its commitment to sustainability, using only locally sourced flowers and eco-friendly packaging materials, making it the go-to florist for environmentally conscious customers.
Market Overview
The market overview section should present the size, growth trends, and key dynamics of the floral industry.
Highlight the potential of the U.S. floral industry, supported by relevant data such as market size and growth rates. Discuss emerging trends like the increasing demand for sustainable and personalized floral arrangements, which can offer insight into how your florist shop fits within this evolving market.
It’s also important to address the competitive landscape. Identify your key competitors and explain how your florist shop positions itself uniquely within this environment. Whether through exceptional customer service, innovative floral designs, or a wide variety of seasonal flowers, this section should clearly illustrate how your florist shop will stand out.
Example Blossom & Bloom Florist is part of the $72.8 billion U.S. floral industry, which has been growing at a 15% CAGR over the past five years. Competing with several local florists and large retail chains in Riverside, Blossom & Bloom differentiates itself by offering bespoke floral designs and a strong commitment to eco-friendly practices, catering to a growing base of sustainability-minded consumers.
Florist Executive Summary: Page 2
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Management Team
The management team’s background is crucial to your business’s success. This part of your executive summary should emphasize the expertise and experience of your key team members.
This could include details such as the co-founder’s extensive experience in floral design or the financial manager’s background in retail management. Highlighting your team’s qualifications not only adds credibility but also reassures potential investors and partners of your florist shop’s potential for success.
Example At Blossom & Bloom, co-founders Emily Rose and David Green lead the team. Emily, with over 10 years of experience in floral design, has a passion for creating unique and memorable floral arrangements, while David, with a background in retail management, ensures the smooth operation and financial health of the shop, combining their expertise to drive the business forward.
Financial Plan
Your financial plan overview should succinctly outline your financial goals and projections, such as revenue targets and profit margins, giving a clear snapshot of your florist shop’s financial trajectory.
Example Blossom & Bloom aims to achieve $3 million in annual revenue by 2028, targeting a 12% EBITDA margin. The financial strategy involves an initial investment in premium floral supplies and a welcoming shop atmosphere, with growth driven by community engagement and a strong online presence, positioning the florist shop for profitability and local recognition within five years.
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Great Business Plan Examples That Drive Success
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Creating a successful business plan is both an art and a science. A well-crafted plan not only outlines your business’s goals but also lays out a clear roadmap for achieving them. From identifying target markets to detailing financial projections, a strong business plan serves as the foundation for growth, providing direction and attracting potential investors. However, creating such a plan can be challenging, requiring a deep understanding of your industry, precise financial modeling, and the ability to foresee potential challenges.
This is where great business plan examples come into play. By studying proven examples, you can gain insights into what works and avoid common pitfalls. These examples show how to structure your plan, effectively communicate your vision, and back up your ideas with solid data. Using a 10-year financial model template alongside these examples can elevate your plan, offering a detailed, long-term view of your business’s potential, and setting you on the path to success.
Exceptional Business Plan Examples That Inspire Success
Embarking on a new business venture or scaling an existing one necessitates a robust and comprehensive business plan. Crafting an effective business plan is essential as it serves as a blueprint for your company’s growth, helping to communicate your vision and strategy to stakeholders and investors. Whether you’re a seasoned entrepreneur or a newcomer to the business world, examining well-crafted business plan examples can provide invaluable insights and inspiration. Learning from successful businesses that have navigated similar challenges can significantly enhance your planning process, setting you up for long-term accomplishment.
In this article, we will delve into several great business plan examples that have demonstrated remarkable success in their respective industries. These examples will highlight various approaches ranging from visionary startups to social entrepreneurship. By studying these successful business plans, you will be equipped with better tools and strategies to create a compelling blueprint for your own business aspirations. Let’s explore these exceptional business plans and discover what makes them a model worth emulating.
Creating a great business plan is crucial for any new or existing venture looking to succeed. An exceptional business plan not only outlines your vision and strategy but also provides a roadmap for achieving your objectives. Let’s explore some inspirational business plan examples that can serve as models for your own endeavors.
Visionary Startups
Many startups start with a visionary concept that fills a gap in the market. Two standout examples in this category include:
- Airbnb: Initially, Airbnb was founded to help people find short-term lodging in private homes rather than hotels. Their business plan emphasized scalability, targeting urban markets, and user-friendly technology. Today, they highlight community and trust as their core business values.
- Warby Parker: This eyewear company disrupted the traditional glasses market with a direct-to-consumer model. Their plan emphasized social responsibility, offering a pair of glasses to someone in need for every pair sold. Their marketing strategy relied heavily on a strong online presence and innovation in customer service.
Social Entrepreneurship
Business plans for social enterprises often intertwine profit with purpose. Notable examples include:
- Toms: Known for their one-for-one model, Toms has built a business plan around giving back. Their strategies integrate ethical sourcing and sustainable practices with a focus on community upliftment, which resonates remarkably with modern consumers.
- Unreasonable Group: This company’s plan focuses on supporting entrepreneurs who tackle social and environmental challenges. Unreasonable Group combines investment with mentoring, demonstrating a model that prioritizes impactful solutions over mere profits.
Established Enterprises with Innovative Plans
Even well-established companies can inspire with their innovative approaches. Consider the following:
- Google: Their early business plan defined a commitment to excellence in technology and information management. Google continually evolves its strategy, focusing on data-driven decision-making and agility in the face of technological change.
- Apple: Apple’s plan has consistently centered around innovation and user experience. With a strong focus on branding, they managed to create a loyal customer base. Their business strategy combines a premium pricing model with a robust ecosystem of complementary products and services.
Key Components of an Exceptional Business Plan
To stand out, a business plan needs to incorporate several essential components:
- Executive Summary: Offer a snapshot of your business and its potential.
- Market Analysis: Clearly outline your target market and competitor landscape.
- Organization and Management: Highlight your business structure and team qualifications.
- Service or Product Line: Discuss what you’re offering and how it solves a problem.
- Marketing Strategy: Define how you’ll reach your audience and grow your customer base.
- Funding Request: If seeking investment, detail any funding you need to launch or expand.
- Financial Projections: Provide data on expected revenue and expenses to reassure stakeholders.
Technology-Driven Business Models
In today’s fast-paced world, technology-driven businesses often shape their plans to leverage digital tools and platforms. Check out these compelling examples:
- Spotify: By focusing on user experience and a freemium model, Spotify revolutionized how we consume music. Their business plan prioritizes partnerships with artists and measures success through user engagement metrics.
- Slack: Starting as an internal communication tool, Slack’s business plan effectively catered to the growing need for collaboration in remote work. Their plan focuses on integration capabilities and user-friendly features, driving user growth and retention.
Exceptional business plans are not one-size-fits-all; they are tailored to fit the unique needs and goals of the business. By analyzing successful examples and incorporating fundamental elements into your own plan, you position yourself for success. These businesses illustrate that a strong plan can pave the way for growth and transformation, making all the difference in today’s competitive landscape.
Key Components of an Effective Business Plan
Crafting an effective business plan is crucial for anyone looking to launch or grow a business. An impactful plan serves as both a roadmap for the entrepreneur and a tool to attract investors. Focusing on the essential components ensures that the plan is thorough and meets the needs of its intended audience.
Executive Summary
The executive summary is the first impression you make on stakeholders. It should encapsulate your business idea, the problem it solves, and your vision. Aim to make this section engaging yet concise. Typically, it should not exceed two pages. Highlight key points like your mission statement, fundamental financial projections, and details on the management team.
Company Description
In this section, provide an overview of your business. Discuss the type of business structure—such as sole proprietorship, partnership, or corporation. Include information about your business goals, what sets you apart from competitors, and the industries you operate in. Your company description should clearly articulate your business’s mission and vision.
Market Analysis
Perform a thorough analysis of your target market. This includes identifying your target demographics, market trends, and potential barriers to entry. Employ research to provide insights on competitors. Utilizing tools like SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) can be invaluable in assessing where your business fits into the current market landscape.
Marketing Strategy
A well-defined marketing strategy lays the groundwork for how you’ll attract customers. Whether it encompasses traditional advertising, social media, or email campaigns, justify your methods with data. Outline specific marketing tactics, budget allocations, and metrics for measuring success. Decide if you’ll employ a direct sales approach or use distribution channels, and be clear about your positioning strategy.
Organization and Management
This section should detail your business’s organizational structure. Include bios of key team members, their roles, and responsibilities. Highlight relevant experiences and qualifications. A visual organizational chart might be beneficial. Discuss any advisors, consultants, or board members you plan to engage. This section is critical for establishing credibility.
Products or Services
Explain what you are offering consumers. This part should describe your products or services in detail, including their life cycle, features, and benefits. Discuss research and development plans if applicable. Address how your offerings solve customer pain points or fulfill needs, thereby differentiating themselves from competitors.
Funding Request
If you seek external funding, be clear about your needs. Include how much funding you require, how it will be utilized, and your planned repayment strategy. This is where you can specify your financial projections and expected returns for investors. Clarity and specificity in this section can build trust and confidence in potential funders.
Financial Projections
In the financial projections segment, present a detailed projection for at least three to five years. Utilize tables for clarity. This often includes:
- Income statements
- Cash flow statements
- Balance sheets
- Break-even analysis
These figures should align with your funding requests and market analysis. Use realistic assumptions backed by market research.
An appendix is not mandatory but can add value. It provides supplementary information that supports your business plan but may disrupt the flow if included in the main sections. You might include resumes, legal agreements, product images, or additional financial data here. This section acts as a resource that interested readers can refer to for more in-depth insights.
Creating an effective business plan involves meticulously covering these core components. By ensuring each section is thoughtfully prepared with concise information and actionable insights, you lay a solid foundation for your business venture. A clear, well-organized business plan can be the key to not only securing funding but also guiding your business toward long-term success.
Analyzing the Business Plans of Successful Startups
Analyzing the business plans of successful startups reveals significant insights that aspiring entrepreneurs can leverage to build their own ventures. Distilling the essence of these plans not only highlights the critical elements that contribute to a startup’s success but also serves as a blueprint for those embarking on their entrepreneurial journey.
One vital aspect to note in successful business plans is the clear articulation of the business idea. This concept should solve a specific problem or meet a unique need in the market. For instance, consider companies like Airbnb and Uber; both recognized gaps in the market for affordable accommodation and transportation, respectively. They capitalized on existing resources, transforming how people find places to stay and travel around cities. A well-defined business idea should answer the questions:
- What problem does the startup solve?
- Who are the potential customers?
- What makes this solution unique?
The next critical component is the market analysis section. Successful startups invest time in conducting exhaustive research to understand their target audience and market dynamics. For example, a deep dive into competitor analysis allows startups to identify gaps and opportunities in the market. This section must answer key questions such as:
- Who are the main competitors?
- What are the current market trends?
- What is the size of the target market?
Moreover, financial projections play an essential role in business plans. Startups like Slack and Zoom provided realistic and well-structured financial forecasts that outlined their potential revenue streams, costs, and funding needs. These projections should not only show the expected growth over time but also include detailed assumptions that support the financial estimates. Important financial elements include:
- Startup costs
- Revenue streams
- Projected income statements
Another crucial aspect present in the business plans of successful startups is an effective marketing strategy. Startups like Warby Parker utilized innovative marketing approaches, such as leveraging social media and creating referral programs that resonate with their audience. They understood their customer segment and communicated effectively through channels that could reach them. Your marketing strategy should cover:
- Brand positioning
- Marketing channels (digital, offline, etc.)
- Customer acquisition strategies
Furthermore, a solid operational plan demonstrates how a startup intends to deliver its product or service effectively. This section should outline the operational workflow, supply chain logistics, and team structure. Startups such as Tesla are meticulous in detailing their manufacturing and operational processes, showcasing how they maintain quality while scaling production. Important considerations for an operational plan include:
- Key metrics to measure efficiency
- Partnerships and supplier management
- Team roles and responsibilities
The importance of a compelling executive summary cannot be overstated. This section serves as a hook, piquing the interest of investors or stakeholders. An engaging executive summary should encapsulate the startup’s vision, mission, key selling points, and impressive statistics that hint at future success. Think of it as your business’s elevator pitch, succinct yet powerful.
The lessons learned from analyzing the business plans of thriving startups also highlight the significance of adaptability. Companies like Netflix evolved from DVD rentals to becoming a leading streaming service, exemplifying how the ability to pivot based on market trends can lead to sustained success. Entrepreneurs should build flexibility into their business models, allowing them to adapt to changes in consumer preferences or emerging technologies.
Successful business plans share several common characteristics that aspiring entrepreneurs can emulate. By focusing on a clear business idea, conducting thorough market analysis, crafting realistic financial projections, developing effective marketing and operational strategies, and composing an engaging executive summary, one can lay down a solid foundation for a startup. The entrepreneurial landscape is filled with opportunities, and with the right strategies in place, aspiring business owners can navigate it with confidence.
Importance of Customizing Your Business Plan
Every entrepreneur knows that a robust business plan serves as the backbone of a successful venture. However, many overlook the fundamental importance of customizing their business plan. Each business is unique, and a one-size-fits-all approach can lead to missed opportunities and potential pitfalls. Tailoring a business plan to fit specific goals, industry standards, and target audiences is crucial for success.
When you customize your business plan, you ensure that it aligns with your unique vision and objectives. This alignment helps clarify your mission and keeps your team focused and motivated. A strategic, customized approach makes it easier to communicate your vision to stakeholders, investors, and team members, fostering a shared understanding of your goals.
Engaging your target audience is another critical aspect. For instance, if you’re seeking investment, your business plan should speak to potential investors’ interests and concerns. Highlighting your competitive advantage, projected returns, and market positioning will resonate far more than generic data points.
Key Reasons for Customizing Your Business Plan
- Market Relevance: A customized business plan considers current market trends and industry specifics. This relevance can give you an edge over competitors who use outdated or generalized plans.
- Tailored Financial Projections: Altering your financial forecasts to adapt to your unique circumstances enables a more accurate reflection of your potential profitability, operational costs, and cash flow.
- Specific Target Audience: Understanding your audience allows you to modify your messaging, ensuring it aligns with their needs and interests. Whether you’re addressing investors, customers, or partners, this tailored approach builds trust and credibility.
- Flexibility in Strategies: Customization allows for dynamic strategies that can respond quickly to changes in the market or business environment. This flexibility is essential in navigating unforeseen challenges.
Creating a personalized business plan requires a detailed understanding of your industry, competition, and target customer. Research is a vital component, as it offers critical insights into what your audiences value and the existing gaps in the market. Utilizing market intelligence enables you to define your unique selling proposition and the specific needs your product or service can meet.
Components of a Custom Business Plan
Here is a breakdown of essential components you should focus on when customizing your business plan:
- Executive Summary: This should effectively summarize what your business does, your mission, and how you stand out in your sector.
- Market Analysis: Conduct thorough research to identify trends, customer segments, and competitive landscape specifics, ensuring your content reflects real data relevant to your niche.
- Marketing Strategy: Tailor your approach to show how you’ll reach your target audience. Include details about the channels you’ll use, messaging, and customer engagement tactics.
- Operational Plan: Make sure to address how your operations reflect the specific needs of your business model. Outline your daily operations, team organization, and key resources required.
- Financial Projections: Be realistic and reflect your unique business context, factoring in local economic conditions and your operational circumstances.
Moreover, as you tailor your business plan, it’s vital to revisit and revise it regularly. Your business environment is in constant flux, so adjustments should be made to remain relevant. This ongoing customization shows that you are proactive and adaptable, qualities highly valued by investors and stakeholders alike.
Ultimately, a customized business plan serves as a powerful tool that not only communicates your vision but also acts as a roadmap for navigating the complex landscape of entrepreneurship. It encourages resourcefulness and strategic thinking, equipping you for both everyday challenges and long-term planning. Investing the time and effort to create a personalized business plan will set you on the path to realizing your entrepreneurial dreams.
Customizing your business plan is not just beneficial; it’s essential. It creates a clear, actionable strategy that resonates with your target audience and aligns with your unique business objectives. By understanding the importance of a tailored approach, you can position your venture for a successful journey ahead.
How to Present Your Business Plan to Investors
Presenting your business plan to investors is a crucial step in securing the funding you need to launch or grow your business. A well-structured presentation captures their attention and persuades them to take the leap and invest in your vision. Here are some effective strategies for delivering a compelling presentation.
Understand Your Audience
Before you even begin to craft your presentation, take time to learn about your investors. Consider their interests, previous investments, and the sectors they typically fund. Tailoring content to meet their preferences can make a significant difference in how your business plan is received.
Craft a Clear and Engaging Narrative
Every good business plan tells a story. It’s essential to present your business not just as numbers and charts, but as a compelling narrative that showcases your mission and vision. Start with a strong opening that captures attention, such as a personal anecdote or thought-provoking statistic, followed by a logical flow that takes them through your plan. Use the following structure:
- Problem Statement: Define the problem your business aims to solve.
- Solution: Explain how your product or service effectively addresses this problem.
- Market Opportunity: Highlight the size and potential of your target market.
- Competitive Advantage: Discuss what sets your business apart from others in the industry.
- Business Model: Detail how your business will make money.
- Financial Projections: Present your expected revenue, expenses, and profits over the next few years.
Focus on Visual Aids
Your presentation should be visually appealing to keep investors engaged. Use slides that are clear, concise, and not overloaded with information. Employ graphs and charts to illustrate key points, such as market analysis, financial projections, and competitive landscape. Here are some tips for effective visual aids:
- Minimal Text: Use bullet points instead of full sentences to maintain clarity.
- Consistent Design: Stick to a consistent color scheme and font style.
- Incorporate Images: Visuals of your product, service, or team can add a human element to your presentation.
Anticipate Questions
Investors are likely to have questions about your business model and market strategy. Prepare for this by anticipating potential inquiries and formulating clear, concise answers. Consider common questions such as:
- What are the risks associated with your business?
- Who are your main competitors, and how will you capture market share?
- What will you do if your projections do not meet expectations?
Being well-prepared shows investors that you understand your business and the risks involved, boosting their confidence in your ability to manage challenges.
Practice, Practice, Practice
Nothing beats practice when it comes to delivering your presentation. Rehearse multiple times, preferably in front of friends or colleagues who can provide honest feedback. Focus on your pacing, articulation, and body language. Look for ways to make your delivery natural and conversational, rather than robotic or overly rehearsed.
Follow Up After the Presentation
After you’ve delivered your presentation, don’t end the conversation there. A follow-up email expressing gratitude for their time is not just courteous; it reinforces your professionalism. Include a recap of your business plan and any additional information that can support your case. This keeps the dialogue open and shows that you’re genuinely interested in their feedback and engagement.
Presenting your business plan to investors is both an art and a science. A thorough understanding of your audience, a compelling narrative, engaging visuals, and confident delivery can create a strong impression. Remember to prepare for questions and stay proactive in following up. Each of these elements contributes to making your pitch not just successful, but memorable.
Common Mistakes in Business Plans and How to Avoid Them
Creating a business plan is a vital step for any entrepreneur, but it’s easy to make mistakes that can derail the entire process. Understanding the common pitfalls can help you craft a plan that is not only comprehensive but also appealing to investors and stakeholders. Let’s explore some of these common mistakes and how to avoid them.
Overly Ambitious Projections
One of the biggest mistakes people make in a business plan is presenting overly optimistic financial projections. While it’s important to showcase potential growth, unrealistic forecasts can lead to skepticism from investors.
- Research Market Trends: Use real data to support your projections. Analyze industry trends, competitor performance, and economic conditions.
- Be Conservative: It’s better to underpromise and overdeliver. Provide a range of potential outcomes rather than a single, absolute figure.
Neglecting to Address Your Competition
Ignoring the competitive landscape can make your business plan appear naive. It’s crucial to acknowledge competitors and present a strategy for how your business will stand out.
- Conduct a SWOT Analysis: Evaluate your business’s Strengths, Weaknesses, Opportunities, and Threats concerning your competitors.
- Identify Your Unique Selling Proposition (USP): Clearly outline what makes your product or service unique and why customers should choose you over the competition.
Lack of a Clear Marketing Strategy
A business plan that doesn’t outline how you intend to reach your target audience lacks direction. Your marketing strategy should clearly articulate how you will acquire and retain customers.
- Define Your Target Audience: Provide detailed demographics and psychographics of your ideal customers.
- Outline Your Channels: Specify which marketing channels (social media, email, content marketing) you will use to engage with your audience.
Ignoring the Business Model
Another common oversight is not defining a sustainable business model. Investors want to know how you plan to make money.
- Clearly Define Revenue Streams: Identify all potential revenue streams your business will depend upon.
- Explain Your Cost Structure: Provide a breakdown of your costs, including fixed and variable expenses.
Focusing Too Much on the Product
While it’s essential to describe your product or service, focusing solely on its features can detract from the overall business plan. Instead, emphasize customer benefits and value.
- Discuss the Problem You Solve: Focus on how your product resolves a pain point for your customers.
- Include Testimonials or Case Studies: These can help validate your claims and demonstrate the effectiveness of your solution.
Being Vague or Jargon-Heavy
Using jargon or ambiguous language can alienate potential readers of your business plan. Aim for clarity and simplicity to ensure your message is accessible.
- Use Clear Language: Avoid technical terms unless absolutely necessary. If you must use them, explain them clearly.
- Be Specific: Provide details rather than general statements. Instead of saying “we will market aggressively,” specify how you will do that.
Failing to Update the Plan Regularly
A successful business plan is not static. Failing to revise your plan as your business grows can result in an outdated strategy that doesn’t align with current market conditions.
- Schedule Regular Reviews: Set aside time every few months to revisit your business plan and adjust as necessary.
- Seek Feedback: Regularly consult mentors, advisors, or peers for input to ensure your plan remains relevant.
By avoiding these common mistakes, you can create a business plan that not only serves as a roadmap for your venture but also effectively communicates your vision to potential investors and stakeholders. Remember, a well-thought-out business plan increases your chances of success and demonstrates to others that you are serious about your business journey.
The Role of Market Research in Crafting Your Business Plan
Creating a robust business plan requires a thorough understanding of the market landscape. Market research plays a critical role in this process, providing insights that shape every aspect of your business strategy. Whether you’re starting a new venture or seeking to improve an existing one, leveraging market research is key to making informed decisions that align with consumer needs and industry opportunities.
To start, market research helps identify your target audience. Understanding who your customers are is essential for tailoring your products or services. Through surveys, focus groups, and data analysis, you can capture vital information about demographics, preferences, and purchasing behavior. This not only aids in pinpointing your target market but also assists in creating buyer personas that inform marketing strategies.
Consider these benefits of in-depth market research:
- Competitive Analysis: Researching competitors reveals their strengths and weaknesses. By analyzing their marketing strategies, pricing models, and customer feedback, you can uncover gaps in the market and identify opportunities to differentiate your offerings.
- Trend Identification: Trends evolve rapidly in every industry. Regularly conducting market research helps you stay relevant by identifying emerging trends that could shape consumer behavior and preferences.
- Risk Mitigation: Launching a new product or service carries risks, but market research can reduce them. By understanding market conditions, consumer demand, and potential challenges, you can make educated decisions that minimize uncertainties.
- Strategic Planning: Insights gained from market research directly inform your business planning process. From sales forecasts to marketing strategies, having a clear picture of the market landscape ensures your plan is grounded in reality.
Moreover, effective market research informs your product development cycle. Knowing what your consumers want allows you to innovate and refine existing products or services. This feedback loop ensures that you stay ahead of the competition by continuously adapting to consumer needs. For example, if market research shows a growing demand for sustainable products, your business can pivot to meet that demand before competitors even notice.
Utilizing diverse research methods is crucial for a well-rounded perspective. Qualitative research methods, such as interviews and focus groups, provide deep insights into consumer emotions and motivations, while quantitative methods, like surveys, offer numerical data that can confirm or challenge assumptions. By combining these approaches, you create a comprehensive view of the market.
In addition, understanding your industry’s regulatory environment is essential. Regulations can significantly affect how you operate and your plan’s feasibility. A thorough review of legal constraints, industry standards, and economic conditions is critical. Consult industry reports, attend trade shows, and network with other professionals to stay informed about the regulatory landscape.
The timing of your research is also vital. Conducting market research not only before launching but also throughout the business lifecycle keeps you informed about shifts in consumer preferences and competitive dynamics. Regular check-ins can help you adjust strategies in real time and maintain a strong market position.
Including data in your business plan is essential. Market research findings lend credibility to your projections and strategies. When potential investors or stakeholders read your plan, solid data is more compelling than conjecture. Showcasing well-researched statistics can reinforce your business’s viability and growth potential. Presenting your research visually, through charts or graphs, can enhance understanding and engagement.
Think about the long-term implications of your market research. As your business grows, maintaining a relationship with your customers through regular feedback mechanisms is vital. Continuous market research ensures you adapt to changing needs and remain competitive over time.
Market research is not merely a step in the business planning process; it is the foundation that supports every strategic decision. By investing time and resources in understanding the market landscape, you position your business for sustainable growth and success.
Crafting a great business plan is not just a chore; it’s an essential step toward achieving success for your entrepreneurial endeavors. The journey through the exceptional business plan examples provided earlier encourages aspiring entrepreneurs to harness creativity and strategic thinking. Notable companies, exemplified by their comprehensive and inspiring business plans, light the way for new ventures. These examples showcase that a solid foundation built on clear goals, detailed strategies, and realistic financial projections attracts the attention and investment necessary for growth.
An effective business plan comprises several key components that ensure its functionality. It should include an executive summary, a detailed description of the business, market analysis, organizational structure, and financial details. Each section serves a unique purpose but must flow seamlessly from one to the next, weaving together a compelling narrative that highlights the viability of the business idea. By clearly articulating each aspect, entrepreneurs not only clarify their vision for themselves but also make it easier for potential investors to understand and buy into their possibilities.
Analyzing the business plans of successful startups provides invaluable insights. These case studies reveal diverse approaches and diverse industries, offering lessons that can be adapted to any business model. Startups often thrive by recognizing their unique selling propositions and articulating them effectively within their plans. By studying the successes and failures of others, you can avoid common pitfalls and develop techniques that resonate with your target audience.
Customizing your business plan is paramount. A generic plan will not capture the interest of stakeholders, nor will it address the specific challenges or opportunities within an industry or market niche. Personalization fosters connection, whether speaking to potential investors or aligning with the long-term aspirations of your own team. Tailoring your business plan means engaging with the local market dynamics, understanding customer segments, and outlining methods that address their needs. It underscores the unique aspects of your business, setting you apart from competitors vying for the same resources.
Presenting your business plan effectively to investors is another critical factor that can significantly impact your fundraising success. Investors want to see conviction and competence in applicants, so how you sell your business concept is just as important as the content itself. Crafting a compelling narrative, practicing your presentation skills, and anticipating questions leads to a more engaging experience. Visual aids, such as graphs and charts, can enhance understanding while keeping the investor’s attention focused on your key points. Remember that storytelling is powerful, and a well-told journey of your business can leave a lasting impression.
Despite the care taken, many entrepreneurs fall into common traps when drafting their business plans. These pitfalls include neglecting financial projections, overlooking the competitive landscape, or failing to review and revise their plans. Avoiding these mistakes involves diligent research, thorough reviews, and seeking feedback from mentors or industry experts. By continually iterating your plan, you make it more robust and reflective of the realities of your business environment.
The role of market research cannot be overstated in the creation of an effective business plan. Engaging with potential customers, understanding market trends, and gathering competitive intelligence serve as the bedrock for informed decision-making. A business plan grounded in solid research showcases your commitment to understanding the landscape you’re entering and paints a picture that resonates with investors. They want evidence that you’ve done your homework and can anticipate market shifts, customer behaviors, and potential challenges.
Navigating the complex world of business planning requires diligence, creativity, and adaptability. Your business plan is a living document that evolves alongside your business. Keeping it updated and relevant ensures it remains a tool for success rather than a mere formality. By learning from great business plan examples, adhering to key components, customizing for distinct needs, presenting effectively, avoiding common mistakes, and leveraging market research, you’ll be better positioned to drive your startup toward success. Embrace the journey, apply these insights, and turn your vision into a reality. Ultimately, a meticulously crafted business plan serves as your roadmap—guiding you toward the milestones that define your entrepreneurial journey.
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What are business goals? Types and examples
As a manager or business leader , you may be wondering how to help lead your company in the right direction. Business goals help to set up a company for success. With long- and short-term goals, you can plan strategic actions and stay focused. By reading this guide, you'll learn about various types of business goals and objectives and how to set them. Here's what we'll cover:
- What are business goals?
- Types of business goals you may set as a manager
- How to set business goals as a manager
- Examples of business goals companies typically set
Adjusting business goals
What are business goals .
Business goals are broad targets a company wants to achieve over a set period. They shape business strategy and guide decision-making. They provide direction on how to align resources and efforts. Although many people use the terms "goals" and "objectives" interchangeably, they differ. In Singapore’s business landscape, clear business goals are important for planning and resource allocation. Objectives are measurable actions to get closer to your long-term business goals.
Types of business goals you may set as a manager
Explore the different business goals you can set for your team or company:
Short-term vs long-term business goals
Short-term business goals are measurable objectives you want the team to achieve in a few days, weeks, or months. They provide motivation and a sense of achievement as you reach each goal quickly. Here are some short-term business goals examples:
- Increase traffic on the company's blog by 20% by the end of the month.
- Hire five new sales representatives over the next three months.
- Create two social media posts per week.
A business's long-term goals are ambitious outcomes that aim further into the future, usually many months or years. Measuring the progress of these business goals may be harder. And they may take longer to achieve. But they provide shared direction and motivation for team members. A company may use a long-term goal as a vision or mission statement.
Here are some long-term business goal examples:
- Increase the company's market share to 35% in the next 10 years.
- Set up eight offices in the APAC region within 10 years.
- Increase employee retention to 85% in the next five years.
Long-term business goals may only provide a general course, not specific steps to take. Short-term goals provide step-by-step directions on how to reach your target. Many business leaders break down long-term business goals into several short-term goals. This can make them more achievable. Think of short-term business goals as building blocks towards larger goals.
It's important to balance short-term achievements with long-term vision to succeed. The company needs a long-term business goal to understand its destination. A long-term vision reminds team members of their end goal and motivates them to work towards it. Short-term goals help you understand what you need to do to achieve the long-term vision.
Financial goals
Financial or economic, goals are specific monetary targets a company wants to achieve. These goals can relate to the company's profit margin, cost reduction, investments, or economic stability. Financial business goals help you properly estimate and create budgets. With clear business objectives and measurable benchmarks, you can better manage the company's finances. Prioritising its spending can help the company achieve financial success.
Financial business goals are often measurable and focus on long-term success. These goals also vary based on which lifecycle stage the business is in. For example, a company may be in the start-up stage. Its economic goals may focus on getting funding from investors to buy equipment, rent office space, and hire employees. For mature organisations, financial business goals may centre on investing in new technologies and emerging markets.
In this digital age, you can use various financial planning tools and apps to simplify the financial goal-setting process. These tools can help with budgeting, investment management, and even tax preparation.
Non-financial goals
Examples of non-financial business goals include brand reputation, customer loyalty, employee training and development, and community involvement. These goals may help the company improve its image and stay in business for a long time. They also confirm that the company considers the well-being of its employees, customers, and the community. Companies that update employees' skills and relevant education may benefit from increased productivity. Improving brand perception can help attract and retain top-quality workers.
Businesses emphasise non-financial goals like corporate social responsibility (CSR) to enhance brand perception and attract top talent. Initiatives such as sponsoring charity events or promoting employee volunteerism contribute to community welfare, fostering a positive corporate image essential for sustained growth.
How to set business goals as a manager
The process of setting business goals may start with a review of past goals. It can also include an assessment of the current state of the organisation. It may involve working with a team and getting feedback and input. This helps you craft specific business goals and clear action plans.
SMART goals
SMART is a popular goal-setting framework. You can use it to define your business goals and ensure they're actionable. It also helps you set goals in an organised and structured way. SMART stands for specific, measurable, achievable, relevant, and time-bound. SMART goals provide clear steps to take and help you stay on track while working towards your business objectives.
When setting a SMART goal, focus on a specific business goal. Use some kind of metric, such as a percentage, to measure progress and decide if you're on track to reach your business goals.
Ensure the goal is achievable. This helps motivate you even if the task is difficult. A relevant business goal helps you rank tasks and align them with the business plan. Finally, set a deadline to ensure timely progress on the goal. Here are some examples of SMART goals:
- Increase customer retention rate by 25% within one year.
- Increase revenue from the online store by 10% in the next six months.
- Acquire 10 new clients within the next three months.
One common mistake business leaders make is setting unrealistic goals. These are overly ambitious or lack a reasonable deadline. Be realistic about your team's abilities, the company's resources, and time constraints. Break down the large business goal into smaller, more manageable tasks to stay motivated.
Another error is neglecting to have a structured execution plan. Overcome this issue by assigning a project lead accountable for the tasks.
Alignment with vision and mission
It's essential to align business goals with the company's vision and mission. The company's vision reflects its purpose, so managers should tailor goals towards fulfilling it. To ensure alignment, reflect on the company's values and ask yourself how each goal is connected to the vision and mission. There is no clear direction when there's a misalignment between goals, vision, and mission. This can create confusion and a fall in motivation levels among employees.
A great example of a company that aligns its goals with its vision and mission is Amazon . The vision and mission of Amazon is "to be Earth's most customer-centric company, Earth's best employer, and Earth's safest place to work." Its goals and strategies start with the customer and work backwards.
Amazon is responsive to the customers' changing needs and wants, which has boosted customer satisfaction and increased loyalty. It's constantly innovating to improve user experience by giving personalised recommendations. Its huge selection of products, hassle-free return policy, and efficient customer service show its commitment to being a customer-centric company.
Examples of business goals companies typically set
Explore these examples of business goals :
Profit maximisation
A profit maximisation business goal is a company seeking to make the highest profit possible. This may mean extending the store's operating hours, expanding product offerings, or increasing employee productivity. It's important not to compromise on ethics when trying to increase profits. For example, reducing costs by using cheap, low-quality materials or overworking and underpaying employees is unethical.
Here are some steps you can take to set profit maximisation goals:
- Assess and reduce your operating costs.
- Adjust pricing.
- Increase customer lifetime value.
- Cross-sell products.
- Lower overhead costs.
- Motivate employees.
- Sustainable development
This business objective means using environmentally friendly and ethical practices. Companies may integrate sustainability into business models and strategies. For example, they may reduce waste production at factories. The PwC's Global Investor Survey 2023 found that most investors agree on the importance of environmental, social, and governance (ESG) issues. 75% said that companies' management of sustainability-related matters is important in their investment decisions.
Singaporean companies such as Sembcorp Industries, Kawarin Enterprise, and Containers Printers are actively working to reduce carbon emissions and embrace a low-carbon future. Singapore businesses can enhance their competitiveness in today's dynamic market by pivoting towards green initiatives. This strategic shift opens new revenue streams and plays a crucial role in advancing a sustainable, low-carbon future for all.
You can explore areas such as energy efficiency or plastic usage to set a sustainable development goal. Set specific targets and devise ways to achieve them. For example, switching to LED lights makes the workplace more energy efficient.
Increased revenue
To increase company revenue, you can add products or services, new payment forms, or offer subscriptions. Innovation plays a key role in increasing revenue. It lets companies identify untapped markets, create new products and services, and apply technology.
Companies can also look at ways to improve online or in-person customer experience. Positive and consistent interactions can lead to brand loyalty; 86% of consumers would be willing to pay more for a better customer experience .
The Humble Food Company faced a 95% drop in revenue due to the COVID-19 pandemic. With a digitised point-of-sale (POS) solution, they optimised their workforce and costs. Specifically, their loyalty program using the POS cashback function led to an increase in sales.
Improved customer satisfaction
This represents how content and fulfilled customers are when they interact with products and services. You can measure customer satisfaction using metrics such as customer satisfaction score, customer effort score, net promoter score, and churn rate. When customers are happy, they tend to be loyal and may also serve as brand ambassadors. They're likely to share their positive experiences with others and drive word-of-mouth referrals. This can lead to an improvement in business performance.
To improve customer satisfaction, understand customer needs through market research. You can also gather feedback. Keep product quality consistently high by implementing strict quality control measures. Communicate effectively and regularly with customers. Let them know about new product launches and any updates or disruptions.
Business process optimisation
Process optimisation enhances efficiency by identifying bottlenecks and redundancies in the workflow. It helps you improve the quality of products and services. It can also boost profitability and promote innovation. All these factors contribute to achieving your business goals.
Explore process improvement methods and tool improvement-tools/s to optimise business operations. These include business process automation, business process management, Six Sigma, root cause analysis, and process diagrams. You can also use technology to automate repetitive tasks. This can free up employees' time for more important work. Employ data analytics to identify areas of improvement within business processes.
For example, Singapore Airports began using the Lean Six Sigma methodology to improve passenger flow through the airport. It applied this process optimisation to its terminal operations, security screening, and customer experience management. This improved wayfinding, reduced queue time and congestion, and enhanced maintenance. The company achieved its target. The average queue time at immigration was 10 minutes for departure and 15 minutes at arrival 90% of the time.
Assessing your business goals
Regularly assess the company's strategic goals to ensure you're on track to achieving them. You can use a scoreboard as a visual tool to keep track of your actions. Decide what data to track and design it in a way that's easy to understand at a glance. Update it often for motivation.
You can also gather feedback from team members to assess business goals. For example, they may tell you that the timeline wasn't realistic, as certain tasks took longer to complete. Learn from the issues employees raise and adjust strategies based on assessment outcomes.
Here are two ways to adjust your business goals:
Responding to market changes
Business goals should be dynamic instead of static, as the market is constantly changing. Set and adjust business goals according to the latest market trends. Seek customer feedback to get early signals of changing preferences or emerging needs. Engage with customers through surveys and social media platforms to gain insight into the evolving market.
For example, more customers may request sugar-free options. This may suggest that the broader market is moving towards health consciousness.
Use Agile methods in your product development process; they're flexible and allow you to deliver your product faster. Use Scrum, Kanban, or Lean frameworks and tools such as sprints, backlogs, and user stories to improve and speed up your product development process.
Companies like Yellow Pages effectively responded to digital and social media growth by digitising their entire business. They moved from being a print-based offering to providing an online directory for businesses. Another example would be the toy manufacturer Lego, which faced serious financial difficulties due to changing consumer preferences and low sales. It restructured its operations, streamlined its supply chains, and refocused its product lines. It also introduced the Lego Movie, which helped to boost its brand image and increase sales.
Continuous improvement
Continuous improvement means reviewing the company's performance and upgrading its products, processes, and strategies. It's about reaching a business goal. This can happen over time through incremental changes or, at once, through a breakthrough improvement.
You can foster a culture of continuous improvement. Do this by allowing employees to identify solutions and change their work areas within agreed guidelines. Create channels to get employee suggestions and feedback, and have a system to evaluate and implement their ideas.
Empower employees to take ownership, train them, and recognise and reward their efforts. You'll help create a supportive environment where they can experiment and grow. This can bring about positive changes in the organisation and contribute to reaching business goals.
Business goals are essential to set the direction of a company. They help you devise strategies and stay focused. Set various goals to ensure you're covering all aspects of the company's operations. For example, these can include cutting operational costs and increasing employee satisfaction.
Use the SMART framework to define your business goals and ensure they're achievable. Measure progress and use it to adjust the goals along the way. Also, market trends and employee and customer feedback should be considered.
Here are answers to common questions about business goals:
- What are some common challenges in setting and achieving business goals? One common challenge is that the goals lack clarity. When the team doesn't have a firm understanding of the goals, they're unable to plan specific actions to achieve them. This can cause confusion, frustration, and low motivation, which are common issues faced by businesses in Singapore striving for growth and efficiency. Another challenge is that the goals may be unrealistic in terms of the size of the accomplishment and the time period.
- How to set effective business goals as a manager? The first step is to assess the current state of the business through a framework, such as SWOT. After identifying the company's strengths, weaknesses, opportunities and threats, you can decide what needs to be improved. Get external and internal feedback to gain valuable insights. You can then use the SMART framework to set specific and time-bound goals. Finally, think about measuring progress and using existing metrics or creating new ones.
- How to communicate business goals to my colleagues? Share the business goals clearly and concisely. Avoid using jargon and buzzwords. Assign each team member with specific roles and responsibilities. Emphasise how the efforts of each individual will contribute to achieving the company's broader objectives. Use different internal channels to communicate the goals, such as newsletters, digital signage, and corporate screensavers. Repetitive messaging in various formats can help with message retention.
- How can I react to market changes as a manager? First, foster a culture of adaptability so that employees will embrace changes and be more resilient. Conduct market analysis regularly to identify emerging trends and customer preferences specific to Singapore. This can help you anticipate market changes and make informed decisions. Adopt an agile organisational structure to respond to the Singaporean market changes quickly. Encourage experimentation and innovation to develop agility and flexibility in the team. This can help the team to seize opportunities and lessen any negative impacts of market changes.
- How can I adjust my company's business goals? Monitor and measure the progress constantly and track KPIs to evaluate the results. Adjust the scope, timeline, or indicators of your goals depending on the progress and market changes. You may even add or remove some goals. Be open to new ideas and innovations and incorporate them into the goals. When modifying business goals, ensure they align with the company's mission and vision. Be transparent, communicate the changes to your team and stakeholders, and get their feedback and support.
- What are the benefits of setting long-term business objectives? Setting long-term business objectives gives you a clear target to work towards and motivates and inspires employees, especially during challenging times. They help you prioritise tasks, allocate resources effectively, measure progress over time, and celebrate achievements.
- Are there any tools or software to help with tracking business goals? Yes. Here's a list of tools you can use: -Asana -Trello -Engagedly -Friday -15Five -Jira -Goalscape -Lattice -PerformYard -Performance Pro
- How often should I review and adjust my business goals? It's advisable to review your business goals every quarter to make sure the goals are relevant to the Singaporean market. In Singapore, business conditions can change rapidly; therefore, reviewing your goals regularly also helps you track progress and determine if the goals are realistic.
- What strategies can I use to align my business goals with my company's mission? Clearly articulate the company's mission and values so that all team members know the purpose of the organisation and its principles. Refer to the overarching purpose and principles to guide the goal-setting process. Always ask "why" to ensure the goals reflect the company's mission and values.
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3 Essential Product Management Templates to Streamline Your Process
- Updated on August 21, 2024
What is Product Management?
Product management is a crucial and multifaceted role within any organization that develops and sells products. At its core, product management is about guiding a product through its entire lifecycle—from the initial concept and development to its launch, continuous improvement, and eventual retirement. The primary goal is to ensure that the product delivers maximum value to customers while aligning with the company’s strategic objectives.
A product manager serves as the linchpin of this process, bridging the gap between various teams, including engineering, design, marketing, sales, and customer support. Their responsibility is to ensure that everyone is working toward a common goal: creating a product that meets market demands and provides a competitive edge.
Whether you’re launching a new product, orchestrating a major event, or crafting a compelling marketing strategy, the right tools can make all the difference. That’s where Nimble’s comprehensive suite of product management templates comes into play.
Designed to streamline your workflow and enhance collaboration, these templates are your secret weapon for success. From managing the minutiae of product events to executing flawless marketing campaigns and keeping your product development on track, Nimble’s Templates have got you covered.
If you are looking to refine your product management approach, these templates offer practical ways to organize your projects and boost efficiency. Consider how they might fit into your current workflow to support your product development goals.
1. Product Event Management Template
Streamline Your Product Launch with Nimble
Product event management is key to executing successful launches that create buzz and drive engagement. It involves coordinating all aspects of an event, from planning and promotion to execution and follow-up, ensuring everything runs smoothly.
Nimble’s Product Launch Event Management Template offers a structured framework to guide you through every step of your launch. No matter the growth stage of your company, we have you covered. If you’re in the dynamic startup phase, the template’s well-defined stages provide a rapid kickoff. For more established organizations, the template’s high configurability saves time and ensures a seamless rollout.
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Key Features:
☑ Comprehensive Planning Framework: Utilize Nimble’s template to create detailed event plans, set ambitious goals, and define clear objectives. With different views and extensive visualization features , Identify your target audience precisely, choose ideal venues, allocate resources effectively through budget planning, and develop a strategic timeline for smooth execution. This is enabled with
☑ Real-Time Collaboration Hub: In today’s dynamic business landscape, effective teamwork is crucial. Nimble’s template is built with Humanizing Work and Integration features that enable seamless collaboration, and document management, allowing multiple stakeholders to access, update, and sync information instantly. Keep your entire team aligned and agile throughout the planning process.
☑ Enterprise-Ready Scalability: From startups unveiling their first product to global corporations launching their latest innovation, the template adapts to your specific needs. It’s engineered to manage complex, multi-team collaborations while maintaining an intuitive, user-friendly interface.
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Improvise your product launch strategy with the Product Event Management template . It provides a balanced mix of structure and flexibility, leveraging data-driven insights to support innovation and achieve successful outcomes. Try here .
2. Product Marketing Template
Boost Your Product Strategy with Nimble’s Marketing Template
Product marketing focuses on understanding customer needs, positioning products effectively, and driving demand through targeted strategies. It bridges the gap between product development and sales, ensuring that the right message reaches the right audience at the right time. Enhance your product’s market impact with Nimble’s advanced Product Marketing Template. It helps your team track performance, foster collaboration, and make informed decisions based on real data.
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☑ Data-Driven Decision Making : Converts raw data into actionable insights, equipping your product team with the information needed to refine features, adjust marketing strategies, and enhance overall product performance.
☑ Cross-Functional Alignment : Serves as a single source of truth, facilitating collaboration among product teams, marketing teams, and stakeholders by ensuring consistent, up-to-date information is accessible to everyone.
☑ Streamlined Communication : Promotes clear, efficient communication by providing a unified data set, reducing misunderstandings and enhancing strategic alignment across teams.
☑ Agile Strategy Adaptation : Offers real-time insights for quick adjustments to your product strategy, enabling your team to respond swiftly to market changes or new opportunities.
☑ Future Planning : Tracks trends over time to identify opportunities for growth and plan for new product launches, updates, or changes in the market.
Amplify your product’s market impact with the Product Marketing Template. Experience it using the Free trial .
3. Product Management Template
Enhance Your Product Development with our Innovative Solution
Product management is the process of guiding a product through its lifecycle, from concept to market, ensuring it meets customer needs and business goals. It involves a deep understanding of market demands, strategic planning, and effective execution.
Improve your Product Development process with Nimble’s template. We’ve combined story mapping , value stream tracking, and advanced analytics to create a powerful tool that drives efficiency and fosters innovation. This integrated approach ensures your product evolves with the market, delivering value at every stage.
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☑ Visualize Your Product Journey: Nimble’s story mapping feature brings your product development lifecycle to life. See the big picture at a glance, helping your cross-functional teams work together more effectively through effortless document management and Webhook capabilities . This visual approach makes it easy to allocate resources wisely and understand how different work streams connect, ensuring everyone is aligned on your product vision.
☑ Optimize Your Workflow: Gain unprecedented insight into your development process with our value stream tracking. Attack bottlenecks before they slow you down and identify opportunities to streamline your operations. The result? Improved productivity and operational excellence that keep you ahead of the competition.
☑ Make Data-Driven Decisions: Say goodbye to guesswork. Our advanced analytics builder features turn product performance metrics and user engagement data into clear, actionable insights. Empower your team to make strategic decisions based on solid evidence, not just intuition. This data-driven approach cultivates a culture of continuous improvement, driving your product—and your business—forward.
Experience the power of intelligent product development. With Nimble , you’ll not only keep pace with the rapidly evolving market—you’ll lead it.
As the demands of product management continue to evolve, having the right tools at your disposal can set you apart from the competition. Our suite of product management templates is designed to simplify complex processes, enhance collaboration, and ensure that every aspect of your product’s journey is meticulously planned and executed.
By utilizing these templates, you’re not just organizing tasks; you’re creating a structured approach that fosters innovation, drives efficiency, and delivers results. From flawless event management and impactful marketing strategies to comprehensive lifecycle oversight, these templates are crafted to support your unique needs and objectives.
The path to product excellence starts here—leveraging these templates is your first step towards achieving remarkable outcomes and leading your team to new heights. Take a free trial and let these templates guide you to success in every phase of your product management journey.
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Sai Prasanth M K
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IMAGES
COMMENTS
In the context of a business plan, a management plan is a high level plan for the direction and control of an organization. The following are examples of elements that can be included in a management plan.
The management plan section of the business plan includes your management team and your human resources needs. Here's how to write it.
Learn how to write a business plan to help you communicate your business plan and vision to investors and business partners.
Description of the management summary section of a small business plan, what should be included, a sample, and tips for writing an effective section.
Crafting a solid management team section for your business plan? Learn what to include with expert tips and strategies and showcase the best of your team.
A management plan describes how an organization or business is run. Writing a management plan allows you to formalize your management structure and operations. It also ensures that everyone is on the same page and that your goals will be accomplished. You can easily write your own management plan with a few simple steps.
What is a management plan in a business plan? As a small business owner, you know you face an uphill battle.
A good business plan guides you through each stage of starting and managing your business. You'll use your business plan as a roadmap for how to structure, run, and grow your new business. It's a way to think through the key elements of your business. Business plans can help you get funding or bring on new business partners.
Every successful business plan should include the organization and management section, helping you communicate your legal structure and team.
The organization and management section of your business plan should summarize information about your businness's structure and team.
Want to learn how to write a business plan? We've jam-packed this article with the examples, templates, and tips you need.
Learn the goals and components of the management team section to help you properly write a business plan of your own. Plus 2 examples!
Writing a business plan can be quick and simple. Follow this step-by-step guide to create a great business plan that you'll actually use.
Read our simple guide to learn how to write a business plan quickly and easily. A solid business plan is essential for any new business.
A business plan is a document that contains the operational and financial plan of a business and details how its objectives will be achieved.
This quick guide offers tips that will help you create the management section for your business plan.
A management plan is a document that outlines how a management team will direct resources to achieve objectives. These can be used to manage missions, teams, programs, projects and initiatives. The following are examples of sections that can be included in a management plan as required.
For example, a business management plan for a new restaurant would include objectives like achieving a specific number of customers and revenue targets, along with strategies for menu development, marketing, and staff training.
The Organization and Management section of your business plan explains how your business runs and who's on your team. Learn more.
For example, if you manufacture a product or provide a service and will hire a key skilled employee, describe that employee's credentials. Otherwise, include staffing plans in the Operations ...
7 business plan examples: section by section. The business plan examples in this article follow this template: Executive summary. An introductory overview of your business. Company description. A more in-depth and detailed description of your business and why it exists. Market analysis.
To make a positive first impression on potential investors, learn the definition of a management team business plan and explore steps for creating your own.
A management plan is a document that describes how to execute, monitor, and control a project, program, business, or organization. The size and complexity of the plan depend on the scope. The management plan's goal is to guide the team, build consistency, and help meet deadlines. Since each project involves simultaneous processes, it's easy to ...
The management team's background is crucial to your business's success. This part of your executive summary should emphasize the expertise and experience of your key team members. This could include details such as the co-founder's extensive experience in floral design or the financial manager's background in retail management.
Whether you're a seasoned entrepreneur or a newcomer to the business world, examining well-crafted business plan examples can provide invaluable insights and inspiration. Learning from successful businesses that have navigated similar challenges can significantly enhance your planning process, setting you up for long-term accomplishment.
Examples of business goals companies typically set Explore these examples of business goals: Profit maximisation . A profit maximisation business goal is a company seeking to make the highest profit possible. This may mean extending the store's operating hours, expanding product offerings, or increasing employee productivity.
☑ Future Planning: Tracks trends over time to identify opportunities for growth and plan for new product launches, updates, or changes in the market. Amplify your product's market impact with the Product Marketing Template. Experience it using the Free trial. 3. Product Management Template