how to make a five year business plan

How to Write a Five-Year Business Plan

Noah Parsons

15 min. read

Updated October 27, 2023

Learn why the traditional way of writing a five-year business plan is often a waste of time and how to use a one-page plan instead for smarter, easier strategic planning to establish your long-term vision. 

In business, it can sometimes seem hard enough to predict what’s going to happen next month, let alone three or even five years from now. But, that doesn’t mean that you shouldn’t plan for the long term. After all, your vision for the future is what gets you out of bed in the morning and motivates your team. It’s those aspirations that drive you to keep innovating and figuring out how to grow.

• What is a long-term plan?

A long-term or long-range business plan looks beyond the traditional 3-year planning window, focusing on what a business might look like 5 or even 10 years from now. A traditional 5-year business plan includes financial projections, business strategy, and roadmaps that stretch far into the future.

I’ll be honest with you, though—for most businesses, long-range business plans that stretch 5 and 10 years into the future are a waste of time. Anyone who’s seriously asking you for one doesn’t know what they’re doing and is wasting your time. Sorry if that offends some people, but it’s true.

However, there is still real value in looking at the long term. Just don’t invest the time in creating a lengthy version of your business plan with overly detailed metrics and milestones for the next five-plus years. No one knows the future and, more than likely, anything you write down now could be obsolete in the next year, next month, or even next week. 

That’s where long-term strategic planning comes in. A long-term business plan like this is different from a traditional business plan in that it’s lighter on the details and more focused on your strategic direction. It has less focus on financial forecasting and a greater focus on the big picture. 

Think of your long-term strategic plan as your aspirational vision for your business. It defines the ideal direction you’re aiming for but it’s not influencing your day-to-day or, potentially, even your monthly decision making. 

• Are long-term business plans a waste of time?

No one knows the future. We’re all just taking the information that we have available today and making our best guesses about the future. Sometimes trends in a market are pretty clear and your guesses will be well-founded. Other times, you’re trying to look around a corner and hoping that your intuition about what comes next is correct.

Now, I’m not saying that thinking about the future is a waste of time. Entrepreneurs are always thinking about the future. They have to have some degree of faith and certainty about what customers are going to want in the future. Successful entrepreneurs do actually predict the future — they know what customers are going to want and when they’re going to want it.

Entrepreneurship is unpredictable 

Successful entrepreneurs are also often wrong. They make mistakes just like the rest of us. The difference between successful entrepreneurs and everyone else is that they don’t let mistakes slow them down. They learn from mistakes, adjust and try again. And again. And again. It’s not about being right all the time; it’s about having the perseverance to keep trying until you get it right. For example, James Dyson, inventor of the iconic vacuum cleaner, tried out 5,126 prototypes of his invention before he found a design that worked.

So, if thinking about the future isn’t a waste of time, why are 5-year business plans a waste of time? They’re a waste of time because they typically follow the same format as a traditional business plan, where you are asked to project sales, expenses, and cash flow 5 and 10 years into the future. 

Let’s be real. Sales and expense projections that far into the future are just wild guesses, especially for startups and new businesses. They’re guaranteed to be wrong and can’t be used for anything. You can’t (and shouldn’t) make decisions based on these guesses. They’re just fantasy. You hope you achieve massive year-over-year growth in sales, but there’s no guarantee that’s going to happen. And, you shouldn’t make significant spending decisions today based on the hope of massive sales 10 years from now.

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• Why write a long-term business plan?

So, what is the purpose of outlining a long-term plan? Here are a few key reasons why it’s still valuable to consider the future of your business without getting bogged down by the details.

Showcase your vision for investors

First, and especially important if you are raising money from investors, is your vision. Investors will want to know not only where you plan on being in a year, but where the business will be in five years. Do you anticipate launching new products or services? Will you expand internationally? Or will you find new markets to grow into? 

Set long-term goals for your business

Second, you’ll want to establish goals for yourself and your team. What kinds of high-level sales targets do you hope to achieve? How big is your company going to get overtime? These goals can be used to motivate your team and even help in the hiring process as you get up and running.

That said, you don’t want to overinvest in fleshing out all the details of a long-range plan. You don’t need to figure out exactly how your expansion will work years from now or exactly how much you’ll spend on office supplies five years from now. That’s really just a waste of time.

Instead, for long-range planning, think in broad terms. A good planning process means that you’re constantly revising and refining your business plan. You’ll add more specifics as you go, creating a detailed plan for the next 6-12 months and a broader, vague plan for the long term.

You have a long development time

Businesses with extremely long research and development timelines do make spending decisions now based on the hope of results years from now. For example, the pharmaceutical industry and medical device industry have to make these bets all the time. The R&D required to take a concept from idea to proven product with regulatory approval can take years for these industries, so long-range planning in these cases is a must. A handful of other industries also have similar development timelines, but these are the exceptions, not the rule.

Your business is well-established and predictable 

Long-term, detailed planning can make more sense for businesses that are extremely well established and have long histories of consistent sales and expenses with predictable growth. But, even for those businesses, predictability means quite the opposite of stability. The chances that you’ll be disrupted in the marketplace by a new company, or the changing needs and desires of your customers, is extremely high. So, most likely, those long-range predictions of sales and profits are pretty useless.

• What a 5-year plan should look like

With the exception of R&D-heavy businesses, most 5-year business plans should be more like vision statements than traditional business plans. They should explain your vision for the future, but skip the details of detailed sales projections and expense budgets. 

Your vision for your business should explain the types of products and services that you hope to offer in the future and the types of customers that you hope to serve. Your plan should outline who you plan to serve now and how you plan to expand if you are successful.

This kind of future vision creates a strategic roadmap. It’s not a fully detailed plan with sales forecasts and expense budgets, but a plan for getting started and then growing over time to reach your final destination.

For example, here’s a short-form version of what a long-term plan for Nike might have looked like if one had been written in the 1960s:

Nike will start by developing high-end track shoes for elite athletes. We’ll start with a focus on the North West of the US, but expand nationally as we develop brand recognition among track and field athletes. We will use sponsored athletes to spread the word about the quality and performance of our shoes. Once we have success in the track & field market segment, we believe that we will be able to successfully expand both beyond the US market and also branch out into other sports, with an initial focus on basketball.

Leadership and brand awareness in a sport such as basketball will enable us to cross over from the athlete market into the consumer market. This will lead to significant business growth in the consumer segment and allow for expansion into additional sports, fashion, and casual markets in addition to building a strong apparel brand.

Interestingly enough, Nike (to my knowledge) never wrote out a long-range business plan. They developed their plans as they grew, building the proverbial airplane as it took off.

But, if you have this kind of vision for your business, it’s useful to articulate it. Your employees will want to know what your vision is and your investors will want to know as well. They want to know that you, as an entrepreneur, are looking beyond tomorrow and into the future months and years ahead.

• How to write a five-year business plan

Writing out your long-term vision for your business is a useful exercise. It can bring a sense of stability and solidify key performance indicators and broad milestones that drive your business. 

Developing a long-range business plan is really just an extension of your regular business planning process. A typical business plan covers the next one to three years, documenting your target market, marketing strategy, and product or service offerings for that time period. 

A five-year plan expands off of that initial strategy and discusses what your business might do in the years to come. However, as I’ve mentioned before, creating a fully detailed five-year business plan will be a waste of time. 

Here’s a quick guide to writing a business plan that looks further into the future without wasting your time:

1. Develop your one-page plan

As with all business planning, we recommend that you start with a one-page business plan. It provides a snapshot of what you’re hoping to achieve in the immediate term by outlining your core business strategy, target market, and business model.

A one-page plan is the foundation of all other planning because it’s the document that you’ll keep the most current. It’s also the easiest to update and share with business partners. You will typically highlight up to three years of revenue and profit goals as well as milestones that you hope to achieve in the near term.

Check out our guide to building your one-page plan and download a free template to get started.

2. Determine if you need a traditional business plan

Unlike a one-page business plan, a traditional business plan is more detailed and is typically written in long-form prose. A traditional business plan is usually 10-20 pages long and contains details about your product or service, summaries of the market research that you’ve conducted, and details about your competition. Read our complete guide to writing a business plan .

Companies that write traditional business plans typically have a “business plan event” where a complete business plan is required. Business plan events are usually part of the fundraising process. During fundraising, lenders and investors may ask to see a detailed plan and it’s important to be ready if that request comes up. 

But there are other good reasons to write a detailed business plan. A detailed plan forces you to think through the details of your business and how, exactly, you’re going to build your business. Detailed plans encourage you to think through your business strategy, your target market, and your competition carefully. A good business plan ensures that your strategy is complete and fleshed out, not just a collection of vague ideas.

A traditional business plan is also a good foundation for a long-term business plan and I recommend that you expand your lean business plan into a complete business plan if you intend to create plans for more than three years into the future.

3. Develop long-term goals and growth targets

As you work on your business plan, you’ll need to think about where you want to be in 5+ years. A good exercise is to envision what your business will look like. How many employees will you have? How many locations will you serve? Will you introduce new products and services? 

When you’ve envisioned where you want your business to be, it’s time to turn that vision into a set of goals that you’ll document in your business plan. Each section of your business plan will be expanded to highlight where you want to be in the future. For example, in your target market section, you will start by describing your initial target market. Then you’ll proceed to describe the markets that you hope to reach in 3-5 years.

To accompany your long-term goals, you’ll also need to establish revenue targets that you think you’ll need to meet to achieve your goals. It’s important to also think about the expenses you’re going to incur in order to grow your business. 

For long-range planning, I recommend thinking about your expenses in broad buckets such as “marketing” and “product development” without getting bogged down in too much detail. Think about what percentage of your sales you’ll spend on each of these broad buckets. For example, marketing spending might be 20% of sales. 

4. Develop a 3-5 year strategic plan

Your goals and growth targets are “what” you want to achieve. Your strategy is “how” you’re going to achieve it.

Use your business plan to document your strategy for growth. You might be expanding your product offering, expanding your market, or some combination of the two. You’ll need to think about exactly how this process will happen over the next 3-5 years. 

A good way to document your strategy is to use milestones. These are interim goals that you’ll set to mark your progress along the way to your larger goal. For example, you may have a goal to expand your business nationally from your initial regional presence. You probably won’t expand across the country all at once, though. Most likely, you’ll expand into certain regions one at a time and grow to have a national presence over time. Your strategy will be the order of the regions that you plan on expanding into and why you pick certain regions over others.

Your 3-5 year strategy may also include what’s called an “exit strategy”. This part of a business plan is often required if you’re raising money from investors. They’ll want to know how they’ll eventually get their money back. An “exit” can be the sale of your business or potentially going public. A typical exit strategy will identify potential acquirers for your business and will show that you’ve thought about how your business might be an attractive purchase.

5. Tie your long-term plan to your one-page plan

As your business grows, you can use your long-term business plan as your north star. Your guide for where you want to end up. Use those goals to steer your business in the right direction, making small course corrections as you need to. 

You’ll reflect those smaller course corrections in your one-page plan. Because it is a simple document and looks at the shorter term, it’s easier to update. The best way to do this is to set aside a small amount of time to review your plan once a month. You’ll review your financial forecast, your milestones, and your overall strategy. If things need to change, you can make those adjustments. Nothing ever goes exactly to plan, so it’s OK to make corrections as you go.

You may find that your long-term plan may also need corrections as you grow your business. You may learn things about your market that change your initial assumptions and impacts your long-range plan. This is perfectly normal. Once a quarter or so, zoom out and review your long-range plan. If you need to make corrections to your strategy and goals, that’s fine. Just keep your plan alive so that it gives you the guidance that you need over time. 

• Vision setting is the purpose of long-term planning

Part of what makes entrepreneurs special is that they have a vision. They have dreams for where they want their business to go. A 5-year business plan should be about documenting that vision for the future and how your business will capitalize on that vision.

So, if someone asks you for your 5-year business plan. Don’t scramble to put together a sales forecast and budget for 5 years from now. Your best guess today will be obsolete tomorrow. Instead, focus on your vision and communicate that. 

Explain where you think your business is going and what you think the market is going to be like 5 years from now. Explain what you think customers are going to want and where trends are headed and how you’re going to be there to sell the solution to the problems that exist in 5 and 10 years. Just skip the invented forecasts and fantasy budgets.

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

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The 6 Steps I Use to Create Five-Year Plans I Can Actually Stick To [+ Expert Tips]

Updated: August 02, 2024

Published: August 01, 2024

As people, we all have big goals — both personal and professional. I’ve been asked in countless interviews about my five-year plan for my career.

I’ve also had lengthy internal monologues about whether I want to buy a house, the countries I want to travel to, and the mountains (literal and figurative) I want to climb.

However, a desire without a plan is just a dream. I want to make sure I make my long-term goals a reality. That’s why I love five-year plans. That’s enough time to take the steps to prepare for lofty accomplishments.

So, in this post, I’ll share my tips for creating five-year plans that you can actually stick to. I’ll also share examples of what these steps look like in practice. Let’s dive in.

Table of Contents

What is a Five-year plan?

Benefits of a five-year plan, what to cover in a five-year plan, five-year plan tips, five-year plan template, how to make a five-year plan, five-year plan common mistakes, five-year plan example.

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A five-year plan is an outline of professional and/or personal goals you want to reach within the next five years. It usually includes broad goals relating to career, relationships, health, and finances that are broken down into action items and milestones.

1. It can give you a fresh start.

Whether professional or personal, a five-year plan can serve as a reset for your life. Who doesn’t like a fresh start?

After all, that’s why New Year’s resolutions are so popular. They give us something to look forward to. There’s also something to be said about writing out a detailed plan. It can be a great motivator to put something in motion.

Personally, I’ve said countless times that I want to be fluent in Spanish. However, it's not until I write a detailed plan for how that will happen that it feels real.

2. It gives you clarity.

Sometimes, a path seems scarier than it actually is because we don’t know what it looks like.

Creating a plan is like pointing a flashlight on a dark road. A more accurate description is that it turns that dark, twisty road into a clear path forward. This doesn’t mean there won’t be any bumps in the road, but at least you’ll know exactly where you’ll land and how to get there.

For example, working for HubSpot was a longtime goal of mine. I took the time to assess why I wanted to work for the company — the great culture and renowned blog pulled me in. Then, I made a plan on how to get here. I started by taking Academy classes and networking.

I never knew if my plan would work out precisely, but I did have time for introspection, giving me clarity on why I liked a company.

3. It serves as a reminder of what’s at stake.

In your daily life, it can be easy to forget that every day, we’re shaping our future. The decisions we make today affect what our lives will look like years from now. Having a visual reminder of this can keep you focused on your goals.

For example, I spoke to my colleague, Kaitlin Milliken about five-year goals she has had. She mentioned that she wanted to see the Philippines and explore the country her family immigrated from.

“When I first made the decision, I was still in college and didn’t have the money or time to make that trip,” Milliken says. “That goal was a great motivator for a lot of smaller choices, like saving, being smart with my vacation time, and making the space to plan the trip.”

4. It helps with professional development.

Having a five-year plan encourages you to think about and plan for the necessary skills and knowledge you will need in the future. This can guide your professional development journey and activities, such as training, education, or gaining specific experiences.

If you need a plan designed to help you with this, grab HubSpot’s free professional development plan to help you understand where you’re at, where you want to go, and how you’ll get there.

5. It helps with risk management and mitigation

If you’re a business owner, having a five-year business plan can help you manage and mitigate risks as much as possible.

By forecasting potential challenges and market changes over a five-year period, you can develop and implement contingency plans, diversify your income streams, adjust your business model in response to market demands, and maintain financial stability.

A five-year business plan makes it easier for you to navigate through potential pitfalls more effectively and sustain growth even in fluctuating economic conditions.

Before you get started with your plan, there are a few things you’ll need to figure out ahead of time.

1. Areas of Focus

Your five-year plan can cover various areas from education, career development, finance, hobbies, or even health. It’s up to you. Don’t feel stuck having to stick to one category and choose the ones that best interest you and fit your needs.

For example, one of my goals is to learn a second language, specifically Spanish. This is a personal goal for me that’s right at the intersection of education and my hobbies.

Putting down your values in writing will help you discover your “why” (more on that later). This step will also help you narrow down what’s most important to you and shape the goals you set for yourself.

Why do I want to learn Spanish? Well, it’s a super helpful language to know if you live in the U.S. Beyond that, I really want to travel throughout Spain. Being fluent in the language would help me better connect with people throughout my journey.

3. Goal Path

Your five-year plan is only as successful as the effort put into creating it. To create a viable plan, it has to be actionable. Once you’ve got an idea of the goals you’d like to include, start researching the path to attaining them.

For example, if you’d like to set a career goal to become a marketing director, start looking at the steps and credentials required. Do you need to skill up? Is there a pathway at your current job? Doing some initial research will set you up for success.

Learning a language involves lots of steps. I decided to buy a few language textbooks and download Duolingo on my phone. Beyond that, I’m researching if there are local classes in my area that I can sign up for. A structured classroom setting can often be helpful for adults learning a second language.

4. HARD Goals

Tackling heartfelt, animated, required, and difficult (HARD) goals can be a rewarding but challenging part of a five-year plan. These types of goals will push you out of your comfort zone and help you achieve things you didn’t think were possible before. Think of these goals as highly ambitious but achievable with a five-year timeline.

Think of HARD goals this way:

• Heartfelt — what reasons are behind achieving this goal?
• Animated — what gets you excited about achieving this goal? Get specific.
• Required — what is it going to take to achieve this goal? What will you need to accomplish in six months to a year to stay on track?
• Difficult — what skills will you need to accomplish this goal, and how will you obtain them?

Let’s apply this to my desire to learn Spanish:

• Heartfelt — I want to learn Spanish so I can communicate with folks who may not be fluent in English and so I can travel to Spanish-speaking countries.
• Animated — the idea of visiting Spain and speaking with the locals gets me excited to learn.
• Required — I know that finding a local Spanish class will help me stay on track and develop a basic understanding of the language. Beyond that, I want to practice every day.
• Difficult — I need to know a substantial number of vocabulary words to become fluent. I will spend time drilling flashcards every day to help me learn more helpful verbs and nouns.

Now that we’ve covered the groundwork, we’ve got more tips to help you create a five-year plan that keeps you motivated and inspired.

If creating a plan from scratch makes your eyes glaze over, check out these tips to help you start getting some ideas on paper. I also asked Kaitlin Milliken, a senior program manager at HubSpot, to share how these tips help her shape her five-year plans.

1. Give yourself space to brainstorm.

To help you focus better when creating your plan, do a bit of pre-work.

Give yourself time to really think about what you’d like to accomplish and the things that are most important to you. For example, you could write out a list of potential goals or ideas and rank them in order of importance, including notes about why they are important.

Milliken often works through this exercise. This helps her decide what she wants to work on, which goals can be accomplished quickly, and which are most complicated and need to be a part of her five-year plan.

“I always start broad. I sit down with a note book and write out what I want to accomplish — totally blue sky. I can organize and narrow this list down later,” she says.

2. Consider separating long-term and short-term goals.

Once you’ve jotted down some goals, decide which are better suited for short or long-term ones.

Completely paying off debt might be a long-term goal, but deciding which debt to tackle first could be a short-term goal. It may also help to divide them up into a 30-60-90 day plan to help best set a timeline.

I asked Milliken how she decides which goals fall into each category. For example, Milliken says she wants to run a half marathon. However, that’s a goal she can work toward in a year.

In contrast, “I want to learn Tagalog — a language I don’t have a background in — and to build the program I run at work to support different departments at HubSpot. These are loftier goals that fit better in a five-year timespan,” she says.

3. Break down annual goals into monthly ones.

Tackling lofty goals can be overwhelming. This is why it’s important to break them down into smaller tasks that are manageable so you don’t get discouraged along the way. Let’s say you want to save $10,000 in a year. You can break that amount down into a recurring monthly payment of $833 or even split it into smaller weekly payments.

Milliken told me that she starts off each year with a lofty set of goals — like writing a few short stories, saving a certain amount of money, and getting a promotion at work.

From there, she decides which goal posts she needs throughout the year to check her progress. For example, she’ll set a savings goal every month.

“I also check in on my long-term goals every six months. Am I spending enough time on professional development to build my leadership skills? Am I on track to manage a team within the next five years?” Milliken explains.

4. Find an accountability partner.

Sometimes, life gets in the way and throws us curve balls — greatly impacting our ability to stay motivated and consistent. Having an accountability partner can help you stay on track.

This could be someone you check in with monthly, a close friend, a family member, or a mentor. Whoever you choose, just make sure it’s someone who will keep you honest. Perhaps they’ll even have their own five-year plan, and you can take this journey together.

“No matter the goal, I tell my best friend Meg. She encourages me to put in the time, celebrates my wins, and is the perfect accountability partner,” Milliken says. “If you’re looking to find your own accountability partner, you’ll want someone who can both keep you on track and be happy for you when you reach your goals.”

5. Don’t be afraid to make adjustments.

Remember that your five-year plan is yours. You can make adjustments as you see fit once you start tracking your progress. If your priorities change, update your plan.

Milliken says her first job out of school was in journalism, so her initial five-year plan for her career focused on being a great reporter. However, “as I worked in the field, I discovered that I loved editing and working with other people,” she says. “I adapted my goals to reflect those new discoveries.”

Milliken notes that her five-year plan changed from working for a top newspaper to finding a role that allows her to work with writers, giving them feedback for improving their work.

If you‘re ready to create your own five-year plan, we’ve got you covered.

HubSpot created the following five-year plan template for you to download.

In it, you'll find a short and long version, both designed to help you break down your plan into actionable goals for each year.

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Kick off your five-year plan with this free template.

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5-year business plan example: your roadmap to success.

Imagine your business five years from now. Where do you want it to be? A business plan is like a map to help get you there. It outlines your goals and how you’ll reach them. A 5-year business plan example gives you a big-picture view for the future of your company.

Table of Contents

Key Components of a 5-Year Business Plan

Key components of a 5-year business plan:

Executive Summary

• Think of it as the “elevator pitch” for your business plan. This section should be brief (around one page) but powerful.
• Summarize the most compelling elements: Your company’s mission statement, the problem you solve, your target market, a highlight of your competitive advantage, and your key financial goals for the next five years.

Company Description

• Provide the backstory. When was your business founded? What were the motivations behind starting it?
• Explain your value proposition: What sets you apart from the competition? Why should customers choose you over others?
• Describe your company culture: What values guide you? A strong culture helps attract the right talent and build customer loyalty.

Market Analysis

• Know your playing field: What is the overall size of your market? Is it growing, shrinking, or staying the same? What trends could impact it in the future?
• Customer profiling: Create a detailed picture of your ideal customer. Go beyond demographics (age, location) to include their pain points, motivations, and how they make buying decisions.
• Competitor analysis: Identify your direct and indirect rivals. Analyze their strengths, weaknesses, and how you’ll position your business to stand out. A SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) can be helpful here.

Organization and Management

• Showcase your team: Summarize the expertise and experience of your key leaders. Highlight any skills gaps you plan to fill as you grow.
• Organizational structure: Provide a visual chart of how your business is structured (who reports to whom). This shows how decisions are made.
• Hiring strategy: Outline your plans for attracting top talent. What are your expectations for employee growth within the 5-year period?

Products and Services

• Itemize: Provide a clear breakdown of your current offerings, including pricing structures.
• Innovation roadmap: Do you have plans for new products or services? Briefly outline any research & development plans and estimated timelines.
• Competitive differentiation: For each product/service, explain how it’s unique vs. the competition.

Marketing and Sales Strategy

• Target audience segments: If you have different types of ideal customers, break down how you’ll reach each one.
• Marketing mix: Outline the channels you’ll use (website, social media, events, advertising, etc.) and the key messages for each.
• Sales process: How will you convert leads into paying customers? Will you have a dedicated sales team, use online channels, or a mix?

Financial Projections

• Income statement: Projects your revenue, costs, and profitability over the 5 years.
• Balance sheet: Shows your company’s assets, liabilities, and overall financial health at specific points in time.
• Cash flow statement: This is critical! Tracks cash coming in and out to ensure you have enough to pay bills and make investments.
• Assumptions: Clearly state all the factors your financial projections are based upon. This is important for transparency and risk assessment.

Why Use 5-Year Business Plan Example

A close up view of a 5 year business plan example document on a digital tablet.

Here’s a benefits of using a 5-year business plan or a template:

Key Reasons to Use a 5-Year Business Plan

1. Provides Focus and Direction:

• Forces you to think strategically about where you want your business to be in the future.
• Aligns day-to-day decisions with long-term objectives.
• Reduces the risk of getting sidetracked by short-term distractions or opportunities that don’t truly move you forward.

2. Identifies Potential Roadblocks:

• Thorough market research uncovers potential challenges ahead of time (e.g., competitors, changing consumer needs).
• Realistic financial projections help you anticipate cash flow issues.
• Contingency planning helps minimize the impact of unexpected events.

3. Attracts Investors and Funding:

• Investors want to see a well-considered plan before putting money into a business.
• Demonstrates that you’ve done your homework and are serious.
• Shows potential for profitability and a return on their investment.

4. Aligns Your Team:

• Creates a shared understanding of where the company is headed.
• Informs hiring decisions and helps you find employees with the right skills to match your growth strategy.
• Fosters a sense of collective ownership and drives motivation.

5. Measures Progress

• Sets benchmarks to gauge your performance against.
• Highlights areas where you’re excelling and those that need improvement.
• Keeps you accountable and helps you stay on track.

Tips for Creating a Successful 5-Year Business Plan

A business professional, a middle aged South Asian man, working on a 5 year business plan using Microsoft PowerPoint on his laptop

Set SMART Goals

• Specific: Avoid vague goals like “grow the business.” Instead, be precise. Example: “Increase website traffic by 30% within the first year.”
• Measurable: How will you know if you’ve achieved your goal? Example: “Track website traffic with Google Analytics and compare results month-over-month.”
• Achievable: Be ambitious, but don’t set yourself up for failure. Consider your resources and market realities.
• Relevant: Your goals should align with your overall business vision. Aiming for random growth won’t necessarily make you successful.
• Time-bound: Set deadlines! Example: “Achieve a 10% market share in the Southeast region within three years.”

Be Realistic

• Acknowledge challenges: Every business faces hurdles. Factor in potential delays, competitor moves, or economic shifts.
• Prepare alternate plans: Have contingency ideas ready. If plan A doesn’t work out, what’s your plan B or C?
• Data is your friend: Base projections on solid research, not wishful thinking. Look at historical trends and industry benchmarks.

Review and Adapt

• Regular Check-ins: Schedule quarterly or semi-annual reviews. Compare your progress to your projections.
• Don’t be afraid to change course: The business world is unpredictable. If your initial assumptions turn out wrong, it’s better to adjust your plan than to stubbornly stick with a failing strategy.
• Track, Analyze, Optimize: Use data to pinpoint what’s working and what’s not. Use this knowledge to make informed changes to your plan.

Example: Applying SMART Goals and Realism

Instead of a vague goal like “increase sales” consider something like this:

• SMART Goal: Increase sales of Product X by 25% in the Northeast Region within the next 12 months through targeted online marketing campaigns and strategic retail partnerships.

This goal is specific, measurable, seems achievable based on past data, directly relevant to business growth, and has a clear deadline.

Additional Tip: Get Feedback

• Share your draft plan with mentors, advisors, or potential investors. Even with the best intentions, we sometimes miss our blind spots. Getting outside perspectives can help refine and strengthen your 5-year business plan.

Common Problems & Solutions

Mistake 1: guessing about money.

• Problem: If you think you’ll make way more money than is realistic or forget to plan for extra costs, your whole plan is in trouble.
• Study the past: Look carefully at how your business did before. Compare yourself to others in your field.
• Prepare for the unexpected: Things don’t always go smoothly! Plan for slow times or surprise bills.
• Ask for help: Have a business mentor or advisor check your financial predictions.

Mistake 2: Not Knowing Your Customers

• Problem: If you don’t understand who you’re selling to or what they need, your plan won’t work.
• Dig deep: Do surveys, read studies, and talk to real customers to learn about them.
• Spy on the competition: What do other businesses do well? Where could you be better?
• Think about the big picture: Could changes in the economy or new laws affect your business?

Mistake 3: Boring Goals

• Problem: Goals that are too easy or unclear won’t get your team excited. Investors might not be impressed either!
• Get specific: Use the SMART method – goals should be Specific, Measurable, Achievable, Relevant, and Time-bound.
• Connect to the big dream: Make sure your goals match the overall mission of your business.
• Aim high (but be realistic): Set challenging goals to inspire yourself, but don’t set yourself up for failure.

Mistake 4: A Plan That Can’t Change

• Problem: A plan that never changes is useless! The world moves fast.
• Regular check-ups: Review your plan every few months and update your predictions.
• Have a plan B (and C): What will you do if things go wrong?
• Change course if needed: Don’t stubbornly stick to a plan that isn’t working.

Mistake 5: All Talk, No Action

• Problem: A plan with big dreams but no steps to get there is just a daydream.
• Baby steps: Break big goals into smaller, easier milestones on a timeline.
• Who’s in charge?: Decide exactly who is responsible for each task.
• Measure your progress: Keep track of important numbers to see if you’re on target.

Extra Tip: Get another pair of eyes on your plan! Advisors, investors, or experienced business owners can spot problems you might have missed.

Changes Made:

• Shorter sentences and simpler words: For example, “underestimating” became “forgetting”.
• Direct, conversational tone: Questions and phrases like “Dig deep” make it more engaging.
• Visuals and formatting: Breaking up the text with headings and bullet points adds white space, making it easier for a younger reader to follow.

5-Year Business Plan Example

Example 5-Year Business Plan (1)

5 Year Business Plan Example 1

Business Name: Coastal Coffee Roasters

• Mission: To provide ethically sourced, expertly roasted coffee and a welcoming community experience to the Pacific Northwest.
• Products/Services: Premium coffee beans (whole and ground), in-store beverages, light snacks.
• Target Market: Coffee enthusiasts, remote workers, local community members.
• 5-Year Goal: Expand to three locations, launch an online retail store, achieve a $500,000 annual revenue.
• History: Founded in 2023 by [Your Name], inspired by a passion for specialty coffee and creating community hubs.
• Value Proposition: High-quality coffee, commitment to sustainability, cozy atmosphere.
• Team: Briefly list key team members (owner, experienced barista, etc.)
• Market Size & Trends: Growing demand for specialty coffee, rise of local roasters.
• Target Customers: [Outline their demographics, interests, and why they’ll choose you].
• Competitors: Identify major competitors, their strengths/weaknesses, and your advantage.
• Legal Structure: (LLC, sole proprietorship, etc.)
• Leadership: Introduce main owner(s) and their relevant experience/skills.
• Hiring Plan: Outline projected staffing needs over the next 5 years.
• Detailed Offerings: Coffee varieties, signature drinks, food items, potential merchandise.
• Pricing Strategy: Explain how prices are set in comparison to competitors and to ensure profitability.
• Innovation: Plans for new products or services down the line.
• Reaching Customers: (Social media, local partnerships, events, loyalty programs, etc.)
• Sales Channels: Primarily in-store, but potential online store expansion in year 3.
• Branding: How will you present a unique, memorable image to customers?
• Income Statement (5 Years): Project revenue, expenses, and profit. Be realistic!
• Balance Sheet (5 Years): Shows assets, liabilities, and overall financial health.
• Cash Flow Statement (5 Years): Tracks money in and out; vital for managing operations.
• Funding Needs: If seeking investors or loans, state your requirements.
• Restate your key goals and why your 5-year plan positions Coastal Coffee Roasters for success.

Important Notes

• Get Specific: Replace placeholders with real data for your area and unique business.
• Use Visuals: Charts, tables, etc. make financial info easier to grasp.
• Get Feedback: Share your draft with advisors or potential investors.

Example 5-Year Business Plan (2)

5 Year Business Plan Example 2

Business Name: Swift Fitness Solutions

• Mission: To help busy professionals achieve their fitness goals through convenient, personalized training programs.
• Products/Services: In-home personal training, online fitness classes, nutrition consulting.
• Target Market: Individuals aged 25-50 with limited time who value personalized health and fitness.
• 5-Year Goal: Build a team of 5 qualified trainers, establish a dedicated training studio, reach $300,000 in annual revenue.
• History: Founded in 2023 by [Your Name], a certified personal trainer with experience helping individuals overcome time constraints to reach fitness goals.
• Value Proposition: Expertise, flexibility (in-home or online sessions), results-oriented approach.
• Team: Currently just the founder, but plan to hire as clientele grows.
• Market Size & Trends: Increasing focus on health and wellness, rise of in-home fitness options and hybrid (online/in-person) training models.
• Target Customers: [Describe demographics, income level, fitness challenges, motivations].
• Competitors: Local gyms, other personal trainers, online fitness platforms. Analyze what makes you unique.
• Legal Structure: (Sole proprietorship, LLC, etc.)
• Leadership: Highlight your credentials and any relevant business management skills.
• Hiring Plan: Project when you’ll add trainers, qualifications you’ll seek, potential for administrative staff.
• Detailed Offerings: 1-on-1 sessions, potential for group classes, nutrition plans as an add-on service.
• Pricing Strategy: Package-based pricing (e.g., 10-session bundles), competitive with market rates.
• Innovation: Possible expansion into corporate wellness programs or niche specializations.
• Reaching Customers: Social media (highlighting client results), content marketing (blog, videos), partnerships with local businesses catering to similar demographics.
• Sales Channels: Direct inquiries through website, introductory consultation offers.
• Branding: Focus on themes of efficiency, personalization, and achieving results despite limited time.
• Income Statement (5 Years): Project revenue growth based on client acquisition and service expansion.
• Balance Sheet (5 Years): Assets might include equipment, studio space (in later years).
• Cash Flow Statement (5 Years): Crucial for managing income fluctuations and expansion investments.
• Funding Needs: If seeking outside funding for equipment or a studio space, state the goals.
• Restate Swift Fitness Solutions’ unique value and how this 5-year plan sets the stage for growth in a changing fitness landscape.
• Emphasize Experience: Your credentials are crucial in a service-based business.
• Testimonials Matter: As you gain clients, feature their successes as social proof.
• Adaptability is Key: The fitness industry evolves – keep your plan flexible.

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A 5-year business plan helps you make smart choices for the future. It’s time to start building your own!

FAQs: 5-Year Business Plans

What’s the difference between a business plan and a 5-year business plan?

A traditional business plan is a snapshot of your business now – its structure, offerings, and goals. A 5-year plan charts a longer path, forecasting growth and outlining strategies for the next several years.

My business is brand new. Do I still need a 5-year plan?

Yes! A 5-year plan is especially important for new businesses. It forces you to define your vision, understand your market, and map out how you’ll achieve growth.

Isn’t 5 years too long to predict? Things change fast!

You’re right! A 5-year plan isn’t a rigid, unchangeable document. It’s about setting a direction and then regularly reviewing and revising it as needed.

Creating a 5-year plan seems overwhelming. Where do I start?

Start small! Focus on your mission statement (why your business exists) and one or two major goals you want to hit in the next 5 years. You can build out the rest later.

Do I need to hire a consultant to make my 5-year plan?

Not necessarily. There are many templates and online resources to guide you. However, if you need in-depth advice or want to present your plan to investors, professional help is worthwhile.

Is there a specific format use?

There are standard components most plans include (executive summary, market analysis, etc.), but some flexibility is allowed. Focus on making it clear, organized, and realistic.

How often should I update my 5-year plan?

Aim for at least an annual review. Quarterly check-ins are even better, especially if your industry moves quickly.

What if I don’t reach all the goals in my plan?

That’s okay! Plans are tools for learning and adapting. Analyze why goals were missed and adjust your strategies.

The content creator team at calipsotree.com is dedicated to making topics accessible to everyone, with over 9 years of experience in writing and breaking down complex concepts into easy-to-understand articles that answer readers’ financial questions.

About The Author

Calypsotree.com.

The content creator team at calipsotree.com is dedicated to making topics accessible to everyone, with over 9 years of experience in writing and breaking down complex concepts into easy-to-understand articles that answer readers' financial questions.

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How to Write a 5-Year Business Plan: A Guide to Creating a Good Business Future

Learning how to write an effective five-year business plan helps you manage, and optimize your business operations for the better.

Jenna Bunnell

Jenna Bunnell is the Director for Field and Strategic Events at Dialpad.

To run and grow a successful business, planning is crucial. 

A typical business plan covers the next one to three years and details your target audience, marketing strategy, and products or services for that time period. A five-year business plan expands on this premise, and predicts what your business might do in the next five years. 

Learning how to write an effective five-year business plan helps you manage, and optimize your business operations for the better. Without a firm business plan, you risk straying from your intended course. 

Establishing a long-term plan determines your business’s priorities and aspirations, including several important milestones. A long-term business ensures you are improving business time management skills. 

To get cracking with developing your ideal five-year business plan, follow this simple guide to success.  ​​​​​​​

Why Create a 5-Year Business Plan?

Suppose you implement a robust five-year business plan at some point in your business’s lifetime. In that case, it will provide valuable insight into how your business is likely to fare over the coming years. 

In addition to long-term business insights, your business plan helps with:

An important part of your business plan is thorough market research, and measuring what your competitors are doing. Conducting this analysis allows you to make strategic decisions about moving your business forward. 

Strategic Planning

The creation of your five-year business plan solidifies the ideas you have for your business, and what you need in place to see those ideas come to fruition. 

Partnerships

If you can envision future collaboration opportunities, your five-year business plan is a great resource for other companies to learn about your business, and decide if they want to go into partnership with you. 

A strategic five-year business plan helps you encourage data-driven business growth in the long-term, and assists with decisions about the company’s future. Businesses that create long-term business plans are good at strategic thinking and prepared for potential obstacles their companies may face. 

What Should a 5-Year Business Plan Include?

A traditional five-year business plan should include business strategies, financial projections, competitive analysis, SWOT analysis, and future roadmaps. In essence, your five-year business plan should detail your business's direction, what you think your industry will look like in five years, trend predictions, and how your business will solve your target audience’s problems.   

Your five-year business plan will probably include the following aspects; however, it may vary slightly from this outline:

• Executive Summary. A brief description of your business, and its goals. 
• Business Description. Where does your business operate, and what does it do?
• Management Team. The people who run your business.
• Products and Services. A description of your business’s offerings.  
• SWOT Analysis. Analysis of strengths, weaknesses, opportunities, and threats concerning your business. 
• Target Audience. Who buys from your business, and are there potential new audiences you want to reach?
• Competitive Analysis. Who are your competitors, and how does your business compare to them?
• Market Analysis. How does your business meet the needs of its customers?
• Marketing and Sales Plan. Plans for brand awareness, and increasing sales. 
• Financials. Profit and loss statements, and future financial projections. 
• Conclusion. An overall summary of your five-year business plan. 

How to Write a 5-Year Business Plan

Let’s look at the outline above in detail, to uncover what to include in each section. 

Executive Summary 

Write your executive summary with your business’s overview, and mission statement. Concise mission statements that reflect your business’s goals and objectives are ideal, such as these from famous brands:

“To connect the world’s professionals to make them more productive, and successful.” LinkedIn “To help people worldwide plan and have the perfect trip.” Trip Advisor 

Consider writing your business’s executive summary after completing the other sections, as this element of your plan should be a complete rundown of your business. 

Business Description

This section contains all the essential information about your business, including your goals, target customers, business structure, and future restructuring plans to align with objectives. Consider why your business exists, your hopes for your business’s future, and its values to fill out this section. 

Management Team

Include a brief description of your management team’s job responsibilities, skills, and how they fit into your business. Your team can act as your business’s USP, especially if they bring unique talents to the table. 

Products and Services

A detailed description of your business’s products and services, including benefits, features, and supplier information if relevant. List potential new services or products in the early planning stages, how much revenue you plan to make from them, and how they will serve your target audience. 

SWOT Analysis

Focus on your business’s strengths, weaknesses, opportunities, and potential threats. For example, strengths may include your business’s exemplary customer service. A weakness might be that you need to optimize resource scheduling . Opportunities are areas your business can explore to scale up, and threats can include opposition problems or changes in your industry. 

Target Audience

Describe your current target audience, and any potential new audiences your business plans to expand to reach. Segment your customers into demographics, behavior patterns, values, and level of education if appropriate to your business. Doing this helps readers of your five-year business plan further understand how your business plans to grow.  

Competitive Analysis

Your business plan should include information about who your competitors are, and, where your business sits compared to them. For example, SaaS businesses would conduct cloud call center software comparison research to understand the competitive landscape. Finish off with details about your competitors’ strengths, and weaknesses in this section. Competitive analysis helps you understand areas your business can win over your competitors. If their social media platforms show that their overall customer service is underperforming, you can make strides to elevate your customer service efforts, and overtake them in this area. 

Market Analysis

Research your market and write your findings, incorporating statistics, and relevant data. This area of your business plan should focus on where your business is positioned currently in the market, and your predictions for future market changes regarding your business’s strategies. Think about how big the current market is for your products or services, and this should create ideas for future product developments. 

Marketing and Sales Plan 

You need an overall plan for marketing your business’s offerings to your target audience. Include information about digital marketing plans, and opportunities to increase your brand’s reach. If you plan to explore the benefits of local phone numbers to level up your sales team’s capabilities, add this information as part of your marketing plan. 

Include details about your sales strategy, involving future staff required to meet your business’s goals. Information about sales targets is helpful in this section of your business plan.  

Financials 

Prepare a financial report demonstrating your business’s financial projections over the next five years. Your report must include anticipated revenue based on market, and competitor research. 

Conclusion 

Illustrate the key points within your five-year business plan in a neat summary. This section should reassure potential investors that your business is viable, and has solid plans for growth. 

Develop Long-term Growth Targets

While creating your five-year business plan, always have in mind where you envision your business in five years.

When writing your long-term business plan, the following questions are helpful:

• How many customers do you predict to gain in the next five years?
• What do you need to put in place to achieve that customer number?
• Do you need to consider shopify alternatives ?
• How much does your business need to earn in year three to be on track?
• Do you need to hire new staff members? If so, how many?
• Will you change your business location?
• Will you need to open up different locations for your business operations?
• Will you introduce new products or services?

Consider setting milestones for the course of your five-year business plan, as this approach is often easier to manage. 

Say your business plans to dabble in the affiliate marketing world. Investigate drop shipping vs affiliate marketing approaches to ascertain which marketing method is most beneficial for your business. Then set a milestone to join a set number of affiliate marketing programs by a specific date, review your results, and move upwards from there.  

Making a Good Business Future 

Your five-year business plan will require amendments over time. And that’s perfectly normal. As your business grows and changes, you’ll learn new things about your business’s industry, and need to alter your roadmap accordingly. 

An effective five-year business plan serves to convince investors that your business is worth investing in. It also ensures that your business moves in the right, and planned direction. 

By creating a five-year business plan now, your business stands the best chance of success for the next five years, and the future. 

About the author

Jenna Bunnell is the Director for Field and Strategic Events at Dialpad, an AI-incorporated cloud-hosted unified communications system that provides valuable call details for business owners and sales representatives. She is driven and passionate about communicating a brand’s design sensibility and visualizing how content can be presented in creative and comprehensive ways. Here is her  LinkedIn .

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5 Year Business Plan Template

The following detailed overview of a five-year business plan is designed to assist your efforts in creating the structure your business requires. In the business plan template outlined below, you’ll find the essential components of every 5 year business plan template – a company overview, analyses of competitors, industry data and target market demographics. Also included are a financial plan, a marketing plan and an operations plan. The 5 year business plan will provide the strategic roadmap required for ultimate success. Let’s get your five-year business plan started.

Download our Ultimate Business Plan Template here >

Five Year Business Plan Template

Executive summary.

The first step to creating a business plan is, oddly, the ending of it. An executive summary is placed in the front of the business plan; however, it cannot be completed until the fully detailed business plan is in place. At that time, it is used as a specific overview of the business plan. The executive summary allows busy executives to quickly grasp the main ideas and make informed decisions about the business concepts and plans; as such, present succinct, clear details in readable sentences that are defined and positive in tone.

Although placed in the business plan at the end of the process, the executive summary helps drive the project forward. Within the executive summary, an overview of the business, including its mission, goals, and the problem it solves will be highlighted. The competitive advantage, target market, and financial projections will be detailed, as well.

Company Overview

After the executive summary, a full company overview is added into the business plan. Include the basic information about the company, detailing the location, name, mission statement, and the legal structure for the business. Outline the jurisdiction in which the company is registered and add the names of the founders and management team. List the founders and key members of the management team again, highlighting their backgrounds, expertise, and roles within the company. Their background information adds depth of experience to that of yours and reflects well with interested lenders or investors. These facts also offer an informed decision base for those considering working for the business. Finally, the unique selling proposition and competitive advantage of the products or services produced by the business will be detailed.

Industry Analysis

In the next segment of the business plan, an industry analysis is compiled, provided as market research data and analyzed in relation to the business. The outcome of the analysis is included in the business plan. It offers a detailed look at the current state and future prospects of the industry sector, market trends, competitive targets, customer preferences and regulatory influences. The analysis within the business plan is suggestive of positive growth, flexibility, and data-driven outcomes that serve the business. The industry analysis also helps identify growth potential, possible risks, and key challenges that may lie ahead. If needed after reading the industry analysis, a business executive may choose to pivot and reposition plans to make informed choices with better outcomes.

Customer Analysis

In the customer analysis section of the business plan, the vital component of the business strategy is revealed: that of the customers who drive the profit margins. The demographics of customers is highly valuable, as the more an understanding of customers’ preferences, likes, dislikes, habits, purchasing choices, and delivery of products is understood and used in business decisions, the better and stronger the positive outcomes. With all of the input and market research data, an important, deeper understanding of the target market is gained, which enables the business to better tailor products, services and the initial marketing efforts accordingly. The market analysis is not only valuable; it is dependable.

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Competitive Analysis

At this juncture, the competitive analysis and data-driven results are obtained to round out the analyses sections of the business plan. The competitive analysis provides valuable insights into the strengths and weaknesses of key competitors operating in the same market. By evaluating and understanding the competitive landscape, businesses can identify opportunities for differentiation to gain that much-desired competitive edge over competitors. The competitive analysis should also reveal everything available about competitors, including brand reputation, customer loyalty, distribution channels and the financial resources they hold. Because the goal of the business is to capitalize on market opportunities, take note of the environment of every competitor directly in competition with the business and make changes where needed in the unique value propositions offered to customers.

Marketing Plan

Strategic marketing naturally follows the analyses of the business landscape and those who compete within it. Use tools to create a dynamic and strategic marketing plan in this section of the business plan. A strategic marketing analysis is one that utilizes every scrap of data available to form the best message for the target audience. Gathered and pressed into service, the data will inform best practices for marketing methods, and best means of sending those messages to the target audience. Marketing plans will naturally follow well-designed and specific data analysis. Use a variety of means to deliver the marketing messages, according to the strengths of the business and the consumer preferences involved. In short, your marketing strategy will encompass various elements, such as branding, advertising, digital marketing, public relations, and social media to create a cohesive and impactful marketing campaign. The ultimate objective of the marketing plan is to achieve your desired business outcomes. As it should.

Operations Plan

A business plan is not complete without a detailed operations plan. A five-year plan will typically outline the first year and then follow with successively more speculative plans for organization as the years progress; however, some facts relating to manufacturing processes will remain stable and the same throughout. These types of operations can always be included in trend discussions and help stabilize the business overall. Plan the operations functions to align the activities of the various departments or teams with broader organizational objectives. Processes and procedures are the highlights of the operations plan, along with the timelines and scheduling of the implementation of those objectives. Knowing how well the business will actually conduct business five years in the future is the perfect starting place for success right now.

Management Team

Comprised of experienced professionals, the management team is highlighted in detail as the operations plans are revealed. The present key leaders understand the collaboration and strong leadership skills needed to effectively manage and operate the entire team and they will be guided by a customer-centric approach. A detailed description of the skills of team leaders, business partners and executives, along with the relevant professional backgrounds will complete this section of the business plan. You should also detail the operational structure of the company here.

Financial Plan

In the final portion of the business plan, the financial plan is fully extended and specifically detailed to offer an informed snapshot of the health of the business in the present, as well as in the five-year period of sustained growth that is anticipated ahead. It is the overlook of the financial goals, along with the strategies and actions needed to achieve them. The five-year financial projections outlines the financial stability, growth, and long-term sustainability of the business.

The 5 year plan encompasses various key areas that are crucial for success, including revenue generation, expense management, investment strategies, risk assessment, and financial performance monitoring for the business during the years ahead. It also outlines key aspects, such as budgeting, savings, investment plans, and debt management that can adapt to changing circumstances and it maximizes the financial stability and growth projections of the five-year plan. Ultimately, the financial plan serves as a roadmap for informed decision-making and the long-term financial success that extends well beyond the five-year period under discussion.

Crafting a well-thought-out, traditional business plan is the first step in the business planning process and it is vital for any business owner. With our 5 year business plan pdf provided here, a vital and simply inviting business plan can be created for your own purposes and those potential stakeholders who will want to review them. We trust the creation of your business plan will lead to new beginnings, exciting and fulfilling directions and sustained long-term growth in successful years of business ahead.

How to Write a 5 Year Business Plan

Welcome to our ultimate guide on how to write a 5 Year Business Plan. In today’s ever-changing business landscape, it’s more important than ever to have a clear roadmap for your company’s success. A 5 Year Business Plan provides the structure and direction needed to navigate the challenges and capitalize on the opportunities that lie ahead. ‘Welcome to our ultimate guide on how to master the future with a 5 Year Business Plan. In today’s ever-changing business landscape, it’s more important than ever to have a clear roadmap for your company’s success. A 5 Year Business Plan provides the structure and direction needed to navigate the challenges and capitalize on the opportunities that lie ahead.

In this comprehensive guide, we will walk you through the entire process of creating a 5 Year Business Plan, from understanding its importance to structuring and presenting it effectively. Whether you are a startup entrepreneur, small business owner, or seasoned executive, this guide will equip you with the knowledge and tools to develop a powerful and actionable plan for the next five years.

Section 1: Introduction to the 5 Year Business Plan

We will begin by exploring what exactly a 5 Year Business Plan is and why it is crucial for your business’s long-term success. We will also discuss the benefits of creating a 5 Year Business Plan and the common challenges that you may encounter along the way.

Section 2: Preparing for Your 5 Year Business Plan

Before diving into writing your 5 Year Business Plan, it’s essential to lay a solid foundation. We will guide you through conducting a SWOT analysis to identify your strengths, weaknesses, opportunities, and threats. We will also help you define your vision and mission, set SMART goals, assess market and industry trends, and gather the necessary financial data.

Section 3: Structuring Your 5 Year Business Plan

Once you have gathered all the necessary information, it’s time to structure your 5 Year Business Plan. We will provide a step-by-step breakdown of each section, including the executive summary, company description, market analysis, organizational structure, product or service strategy, marketing and sales plan, operations and production plan, financial projections, and risk assessment.

Section 4: Writing and Presenting Your 5 Year Business Plan

In this section, we will discuss the writing style and tone, formatting and structure, and the effective use of visuals and graphics in your 5 Year Business Plan. We will also provide tips on proofreading and editing, seeking feedback, and presenting your plan to stakeholders.

Section 5: Reviewing and Updating Your 5 Year Business Plan

Creating a 5 Year Business Plan is not a one-time task. It requires regular monitoring, adaptation, and revision to stay relevant and impactful. We will guide you through the process of monitoring performance and progress, adapting to market changes, and reviewing and updating your plan accordingly.

Conclusion: The Power of a Well-Crafted 5 Year Business Plan

A well-crafted 5 Year Business Plan can be the key to unlocking your business’s full potential. It provides a clear roadmap for success, helps you make informed decisions, and enables you to navigate challenges with confidence. By following the steps outlined in this guide, you will be on your way to mastering the future and achieving your long-term business goals. So let’s dive in and start crafting your 5 Year Business Plan today!

Effective Communication and Order Management

Communication is the lifeblood of any business, and when it comes to managing orders, effective communication becomes even more critical. In this section, we will explore the importance of communication in order management and provide strategies to ensure smooth and efficient processes.

The Role of Communication in Order Management

In order management, communication plays a pivotal role in ensuring that orders are processed accurately, efficiently, and in a timely manner. Effective communication helps to establish clear expectations, foster transparency, and build trust between all parties involved in the order management process, including customers, suppliers, and internal teams.

Clear and Timely Order Confirmation

One of the first steps in order management is confirming the order with the customer. This confirmation serves as a mutual agreement between the customer and the business, ensuring that both parties are on the same page regarding the order details, such as product specifications, quantities, pricing, and delivery timelines. It is crucial to communicate this confirmation promptly to avoid any misunderstandings or delays.

Streamlined Communication Channels

To ensure effective communication in order management, it is essential to establish streamlined communication channels. This includes having a dedicated point of contact for customers to reach out to with any questions or concerns regarding their orders. Providing multiple channels of communication, such as phone, email, or live chat, can also enhance accessibility and convenience for customers.

Real-Time Order Tracking and Updates

Transparency is key in order management, and providing real-time order tracking and updates can greatly enhance the customer experience. By implementing a robust order management system, businesses can enable customers to track their orders at every stage of the process, from order confirmation to shipping and delivery. Regular updates, such as notifications on order status changes or delays, can also help manage customer expectations and build trust.

Collaboration and Coordination with Internal Teams

Effective order management requires seamless collaboration and coordination within the business. This involves clear communication channels between different departments, such as sales, inventory management, and logistics, to ensure that everyone is aligned and working towards fulfilling customer orders efficiently. Regular meetings or status updates can help synchronize efforts and address any bottlenecks or challenges along the way.

Handling Order Changes and Exceptions

In the dynamic business environment, order changes and exceptions are inevitable. It is crucial to have clear processes in place to handle such situations promptly and effectively. This includes establishing communication protocols for customers to request changes, notifying relevant teams or suppliers of any modifications, and ensuring timely updates to the customer regarding the status of their revised order.

Resolving Order Issues and Customer Complaints

Despite the best efforts, order issues or customer complaints may arise. In such cases, effective communication becomes even more critical to resolve these issues promptly and maintain customer satisfaction. Promptly acknowledging the issue, actively listening to the customer’s concerns, and providing timely updates on the resolution process can help mitigate any potential damage to the customer relationship.

Continuous Improvement through Feedback

Communication in order management should not be a one-way street. Encouraging customers to provide feedback on their ordering experience can provide valuable insights for continuous improvement. Implementing feedback mechanisms, such as customer surveys or feedback forms, can help identify areas of improvement and address any communication gaps or process inefficiencies.

Effective communication is the backbone of successful order management. By establishing clear communication channels, providing real-time updates, collaborating with internal teams, and promptly addressing any issues or customer concerns, businesses can streamline their order management processes and enhance customer satisfaction. Remember, communication is not just about conveying information but also about building strong relationships with customers and stakeholders. Implementing robust communication strategies will ensure that your order management processes are efficient, accurate, and customer-centric.

Conducting a SWOT Analysis

Before diving into the process of writing a 5 Year Business Plan, it is crucial to conduct a comprehensive SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and this analysis helps businesses gain a deeper understanding of their internal and external factors that can impact their long-term success.

Identifying Your Strengths

The first step in conducting a SWOT analysis is to identify and evaluate your strengths. These are the internal factors that give your business a competitive advantage and contribute to its success. Strengths could include aspects such as a strong brand reputation, unique products or services, a loyal customer base, a talented team, or efficient internal processes. By recognizing your strengths, you can leverage them to maximize opportunities and overcome weaknesses and threats.

Analyzing Your Weaknesses

Next, it is important to assess and analyze your weaknesses. These are internal factors that hinder your business’s growth or put it at a disadvantage compared to competitors. Weaknesses could include limited financial resources, inadequate infrastructure, lack of market presence, outdated technology, or skill gaps within the team. By identifying and acknowledging these weaknesses, you can develop strategies to address them and minimize their impact on your business’s future growth.

Exploring External Opportunities

In addition to evaluating internal factors, it is essential to identify and explore external opportunities that can benefit your business. Opportunities are external factors that have the potential to positively impact your business’s growth and profitability. These could include emerging market trends, changes in consumer behavior, new technologies, or untapped market segments. By proactively seeking out and seizing these opportunities, you can position your business for long-term success and growth.

Evaluating Potential Threats

Lastly, a SWOT analysis helps identify potential threats that can negatively impact your business’s performance. Threats are external factors beyond your control that pose risks to your business. These could include intense competition, changing market conditions, economic downturns, legal or regulatory challenges, or shifts in customer preferences. By recognizing these threats, you can develop strategies to mitigate their impact and protect your business from potential harm.

Utilizing SWOT Analysis in Your 5 Year Business Plan

Once you have conducted a thorough SWOT analysis, you can use the insights gained to inform your 5 Year Business Plan. The strengths identified can be leveraged to capitalize on opportunities and overcome weaknesses and threats. Weaknesses can be addressed through strategic initiatives and investments. Opportunities can be incorporated into your growth strategies and objectives. Threats can be mitigated through contingency plans and risk management strategies.

By incorporating the findings of your SWOT analysis into your 5 Year Business Plan, you can create a roadmap that maximizes your strengths, minimizes weaknesses, seizes opportunities, and mitigates threats. This holistic approach ensures that your business plan is built on a solid foundation of self-awareness and knowledge of the external market dynamics.

Conducting a SWOT analysis is a critical step in the process of writing a 5 Year Business Plan. It provides valuable insights into your business’s internal strengths and weaknesses, as well as external opportunities and threats. By leveraging the findings of your SWOT analysis, you can develop strategies and initiatives that position your business for long-term success. Remember, a well-informed and comprehensive SWOT analysis is the first step towards crafting a robust and effective 5 Year Business Plan.

Defining Your Vision and Mission

In order to create a 5 Year Business Plan that is focused and aligned with your long-term goals, it is crucial to define a clear vision and mission for your business. Your vision and mission statements serve as guiding principles that outline your purpose, values, and aspirations. They provide a sense of direction and act as a compass for decision-making throughout your business journey.

Crafting a Clear Vision Statement

Your vision statement paints a picture of what you envision your business to become in the future. It should be concise, inspiring, and reflect your aspirations. When crafting your vision statement, consider the following questions:

• What is the ultimate goal or destination you want to achieve with your business?
• How do you see your business making a positive impact on the world or your industry?
• What sets your business apart and makes it unique?

A well-crafted vision statement should capture the essence of your long-term goals and inspire both your team and stakeholders to work towards a common vision.

Developing a Compelling Mission Statement

While the vision statement focuses on the future, the mission statement is more focused on the present. It outlines the purpose of your business and defines the core activities and values that guide your daily operations. When developing your mission statement, consider the following aspects:

• What is the primary purpose or reason for your business’s existence?
• Who are your target customers or audience?
• What products or services do you offer, and how do they benefit your customers?

A compelling mission statement should be concise, clear, and communicate the value your business provides to its customers and stakeholders. It should also reflect your company’s core values and unique selling propositions.

Aligning Your Vision and Mission

To ensure a cohesive and effective 5 Year Business Plan, it is essential to align your vision and mission statements with your business strategies and objectives. Your vision and mission should serve as guiding principles that inform your decision-making, goal setting, and resource allocation. As you develop your business plan, refer back to your vision and mission statements to ensure that each component is aligned and working towards the realization of your long-term goals.

Communicating Your Vision and Mission

Once you have defined your vision and mission, it is important to effectively communicate them to your team, stakeholders, and customers. Your vision and mission statements should be prominently displayed on your website, marketing materials, and internal communications. Regularly share updates and progress towards your vision and mission to keep your team motivated and engaged. By effectively communicating your vision and mission, you can create a sense of purpose and alignment throughout your organization.

Defining a clear vision and mission is a crucial step in creating a 5 Year Business Plan that is focused, purposeful, and aligned with your long-term goals. Your vision statement outlines your aspirations and what you want your business to become, while your mission statement defines your purpose and how you provide value to your customers. By aligning your business strategies and objectives with your vision and mission, you can create a roadmap that drives growth, fosters alignment, and guides decision-making. Remember, your vision and mission statements act as the compass that keeps your business on track towards long-term success.

Setting SMART Goals

Setting clear and achievable goals is a crucial component of a 5 Year Business Plan. Goals provide direction, focus, and a sense of purpose for your business. When setting goals for the next five years, it is important to ensure that they are Specific, Measurable, Attainable, Relevant, and Time-Bound – in other words, SMART goals.

Specific Goals

Specific goals are clear and well-defined. They answer the questions of what, why, and how. Instead of setting a vague goal like “increase sales,” a specific goal would be “increase annual sales revenue by 15% by the end of year 3.” The more specific your goals are, the easier it is to develop strategies and action plans to achieve them.

Measurable Goals

Measurable goals are quantifiable and can be tracked and measured. They provide a way to assess progress and determine success. For example, instead of setting a goal to “improve customer satisfaction,” a measurable goal would be “increase customer satisfaction ratings by 10% based on post-purchase surveys.” Measurable goals allow you to gauge your performance and make data-driven decisions.

Attainable Goals

Attainable goals are realistic and achievable given your available resources, capabilities, and external factors. While it’s important to set ambitious goals, they should also be within reach. Setting unattainable goals can lead to frustration and demotivation. Consider factors such as your budget, manpower, market conditions, and industry benchmarks when setting attainable goals.

Relevant Goals

Relevant goals are aligned with your overall business objectives and strategic priorities. They should contribute to the growth and success of your business. Each goal should be directly linked to your vision and mission, and should have a clear purpose and impact. Avoid setting goals that are not relevant to your core business or that do not align with your long-term vision.

Time-Bound Goals

Time-bound goals have a specific deadline or timeframe. They provide a sense of urgency and help create a timeline for action. Instead of setting open-ended goals, establish a target date or milestone for each goal. For example, instead of setting a goal to “expand into new markets,” a time-bound goal would be “enter three new international markets by the end of year 5.” Time-bound goals help prioritize tasks and ensure progress towards your long-term objectives.

Setting SMART goals is crucial for creating a 5 Year Business Plan that is focused, actionable, and aligned with your long-term vision. By setting specific, measurable, attainable, relevant, and time-bound goals, you provide clarity and direction for your business’s growth and success. Remember, goals are not set in stone and may need to be adjusted based on changing circumstances. Regularly review and evaluate your goals to ensure they remain relevant and achievable. With SMART goals in place, you can chart a clear path towards your desired outcomes and measure your progress along the way.

Assessing Market and Industry Trends

In order to create a 5 Year Business Plan that is well-informed and aligned with the market dynamics, it is essential to assess market and industry trends. Understanding the current state of the market, as well as the projected future trends, allows you to identify opportunities and challenges that may impact your business in the long run.

Identifying Target Market Segments

The first step in assessing market trends is to identify and define your target market segments. These are specific groups of customers who share similar characteristics and needs. By understanding the demographics, psychographics, and purchasing behaviors of your target market segments, you can tailor your products, services, and marketing efforts to effectively reach and engage them.

Analyzing Competitor Landscape

Another important aspect of assessing market trends is analyzing the competitor landscape. Identify who your direct and indirect competitors are, and study their strategies, strengths, weaknesses, and market positioning. This analysis helps you gain insights into the competitive dynamics of your industry and enables you to differentiate your business and identify areas of opportunity.

Understanding Market Growth and Demand

It is crucial to evaluate the overall market growth and demand trends in your industry. Is the market expanding or contracting? Are there any emerging trends or shifts in consumer behavior that could impact your business? By monitoring market growth and demand, you can identify potential gaps or niches that your business can capitalize on, as well as any potential threats or challenges that may arise.

Examining Industry Regulations and Changes

In addition to evaluating market trends, it is important to stay informed about industry regulations and changes. Industries are subject to various laws, regulations, and compliance requirements. Stay updated on any changes in regulations that may impact your business operations, such as environmental regulations, labor laws, or industry-specific regulations. Failure to comply with these regulations can have significant consequences for your business.

Utilizing Market and Industry Trends in your 5 Year Business Plan

The insights gained from assessing market and industry trends play a vital role in shaping your 5 Year Business Plan. By incorporating these trends into your plan, you can align your strategies, objectives, and action plans with the evolving market dynamics. Here are some ways you can utilize market and industry trends in your business plan:

• Identify opportunities for growth and expansion based on emerging trends or underserved market segments.
• Anticipate potential threats or challenges and develop contingency plans to mitigate their impact.
• Adjust your product or service offerings to meet changing customer demands and preferences.
• Stay ahead of the competition by understanding their strategies and positioning.
• Ensure compliance with industry regulations and adapt your operations accordingly.

By considering market and industry trends, you can position your business to leverage opportunities, mitigate risks, and stay competitive in a rapidly evolving business landscape.

Assessing market and industry trends is a crucial step in developing a 5 Year Business Plan that is well-informed and aligned with the market dynamics. By identifying target market segments, analyzing the competitor landscape, understanding market growth and demand, and staying updated on industry regulations and changes, you can make informed decisions and develop strategies that will drive your business’s long-term success. Remember, the market is constantly evolving, so regularly reassessing market trends and adjusting your plan accordingly is essential for staying ahead of the curve.

Gathering Financial Data

When creating a 5 Year Business Plan, one of the critical aspects to consider is gathering and analyzing financial data. Financial data provides insights into the financial health and viability of your business, helps in making informed decisions, and supports the development of realistic financial projections.

Reviewing Historical Financial Statements

Start by reviewing your historical financial statements, including income statements, balance sheets, and cash flow statements. These statements provide a snapshot of your business’s financial performance over a specific period, typically the past three to five years. Analyze the trends, identify any areas of concern or improvement, and understand the key financial indicators for your business.

Projecting Future Financial Performance

Based on the historical financial data and your business goals, project your future financial performance for the next five years. Develop detailed financial projections, including revenue forecasts, expense budgets, and cash flow projections. Consider factors such as market trends, growth strategies, pricing strategies, and cost management initiatives to estimate future financial performance.

Determining Funding and Investment Needs

Assess your funding and investment needs for the next five years. Evaluate your capital requirements for new projects, equipment purchases, marketing initiatives, research and development, and other investments necessary to achieve your business goals. Identify potential funding sources, such as external financing, equity investments, or cash flow from operations, and determine the most viable options for meeting your financial needs.

Evaluating Financial Risks and Contingencies

Identify potential financial risks and develop contingency plans to mitigate their impact. Consider external factors such as economic fluctuations, regulatory changes, or market volatility that could affect your business’s financial stability. Assess the financial risks associated with your strategies, such as new product launches, market expansions, or changes in pricing. Develop risk management strategies and contingency plans to minimize financial risks.

Utilizing Financial Data in Your 5 Year Business Plan

The financial data you gather and analyze serves as a foundation for your 5 Year Business Plan. It helps you make informed decisions, set realistic financial goals, and develop strategies to achieve them. Here’s how you can utilize financial data in your business plan:

• Incorporate financial projections, including revenue forecasts and expense budgets, into your plan to demonstrate the financial feasibility of your strategies.
• Highlight key financial indicators, such as profitability ratios, liquidity ratios, and return on investment, to showcase the financial health and performance of your business.
• Present your funding and investment needs, along with a clear plan for how you will secure the necessary capital to support your growth initiatives.
• Outline risk management strategies and contingency plans to address potential financial risks and ensure the financial stability of your business.

By utilizing financial data effectively in your 5 Year Business Plan, you can demonstrate the financial viability of your strategies, attract potential investors or lenders, and ensure that your business is on track to achieve its long-term financial objectives.

Gathering and analyzing financial data is a crucial step in creating a comprehensive and realistic 5 Year Business Plan. By reviewing historical financial statements, projecting future financial performance, determining funding and investment needs, and evaluating financial risks, you can develop a solid financial foundation for your plan. Remember, financial data provides insights into the financial health of your business and supports informed decision-making. By incorporating financial data effectively in your business plan, you can demonstrate the financial feasibility of your strategies and set your business on a path to long-term financial success.

Structuring Your 5 Year Business Plan

After gathering all the necessary information and data, it’s time to structure your 5 Year Business Plan. A well-structured plan provides a clear roadmap for your business’s future, facilitates effective communication, and ensures that all key aspects are covered in a logical and organized manner. In this section, we will guide you through the essential sections to include in your plan and provide insights on how to structure each section effectively.

Executive Summary

The executive summary is a concise overview of your entire 5 Year Business Plan. It should capture the essence of your plan and highlight the key objectives, strategies, and financial projections. Although it appears at the beginning of your plan, it is often written last to ensure that it accurately reflects the content of the entire document. Keep the executive summary clear, compelling, and engaging to capture the reader’s attention and provide a solid foundation for the rest of the plan.

Company Description

The company description section provides an overview of your business, its history, legal structure, ownership, and key milestones. It should also highlight your unique selling proposition (USP) and explain how your products or services meet the needs of your target market. Use this section to showcase your company’s strengths, values, and competitive advantages.

Market Analysis

The market analysis section dives deep into understanding your target market, industry trends, and competitive landscape. Identify your target market segments, analyze consumer behavior, and assess the size and growth potential of your market. Conduct a competitive analysis to understand your competitors’ strengths, weaknesses, and market positioning. This section should provide a comprehensive understanding of the market dynamics that will influence your business’s success.

Organizational Structure and Management

In this section, outline your organizational structure and introduce key members of your management team. Clearly define roles and responsibilities, and highlight the expertise and experience of your team members. Provide an organizational chart to visually represent the hierarchy and relationships within your company. This section demonstrates that you have a capable and skilled team in place to execute your business strategies.

Product or Service Strategy

The product or service strategy section details your offerings and how they meet the needs and preferences of your target market. Describe your products or services in detail, highlighting their unique features, benefits, and value proposition. Explain your product development roadmap, including any plans for innovation, research, or improvements. Emphasize how your offerings differentiate you from the competition and provide a competitive advantage.

Marketing and Sales Plan

The marketing and sales plan outlines how you will promote and sell your products or services to your target market. Define your marketing objectives and strategies, including the channels and tactics you will use to reach your audience. Discuss your pricing strategy, distribution channels, and promotional activities. Include your sales forecast and projections to demonstrate the revenue potential of your marketing efforts.

Operations and Production Plan

The operations and production plan section focuses on the practical aspects of running your business. Describe your facilities, equipment, and technology requirements. Outline your supply chain management processes, including sourcing, inventory management, and logistics. Explain your production processes, quality control measures, and capacity planning. This section provides a clear understanding of how you will deliver your products or services efficiently and effectively.

Financial Projections

The financial projections section is a critical component of your 5 Year Business Plan. It includes detailed financial forecasts, such as sales forecasts, expense projections, cash flow statements, profit and loss statements, and balance sheets. Use historical data, market trends, and growth projections to develop realistic financial projections. Include key financial ratios and metrics to assess the financial performance and viability of your business.

Risk Assessment and Mitigation Strategies

The risk assessment and mitigation strategies section identifies potential risks and challenges that may impact your business’s success. Conduct a thorough risk assessment, including internal and external factors that could pose threats. Develop strategies and contingency plans to mitigate these risks and ensure business continuity. This section demonstrates that you have considered the potential challenges and have plans in place to address them.

Structuring your 5 Year Business Plan effectively is crucial to ensure clarity, coherence, and readability. Each section plays a vital role in providing a comprehensive and cohesive overview of your business’s future. By following a well-structured format and including all the essential components, you can create a compelling and informative plan that guides your business towards its long-term objectives.

Writing and Presenting Your 5 Year Business Plan

Once you have structured your 5 Year Business Plan, it’s time to focus on effectively communicating your ideas and strategies. Writing and presenting your business plan in a clear, concise, and compelling manner is crucial for conveying your vision, gaining support from stakeholders, and securing funding or investment. In this section, we will explore key considerations and tips for writing and presenting your 5 Year Business Plan.

Writing Style and Tone

When writing your business plan, it is important to maintain a professional and formal tone. Use clear and concise language to convey your ideas and avoid jargon or technical terms that may confuse readers. Be specific and provide relevant details, but also be mindful of not overwhelming the reader with excessive information. Use proper grammar, punctuation, and formatting to ensure the plan is easy to read and understand.

Formatting and Structure

Pay attention to the formatting and structure of your business plan to enhance its readability. Use headings, subheadings, bullet points, and numbered lists to organize information and create a logical flow. Consider using visual elements such as charts, graphs, and tables to present data in a visually appealing and easy-to-understand format. Ensure consistency in font styles, sizes, and formatting throughout the document.

Using Visuals and Graphics

Visuals and graphics can greatly enhance the presentation of your business plan. Utilize charts and graphs to illustrate financial projections, market trends, or growth targets. Visual representations can make complex information more accessible and engaging for the reader. However, ensure that the visuals are clear, relevant, and properly labeled to avoid any confusion or misinterpretation.

Proofreading and Editing

Before finalizing your business plan, thoroughly proofread and edit the content. Check for spelling and grammatical errors, inconsistencies, and clarity of language. It is helpful to have multiple reviewers, including professionals or advisors, to provide feedback and suggestions for improvement. Ensure that all sections are cohesive, and the overall narrative flows smoothly. A polished and error-free plan demonstrates professionalism and attention to detail.

Seeking Feedback and Professional Assistance

Seeking feedback from trusted individuals or professionals can provide valuable insights and improve the quality of your business plan. Share your plan with mentors, advisors, or industry experts who can provide constructive feedback and help you identify areas for improvement. Consider engaging the services of a professional business plan writer or consultant who can provide expertise and ensure that your plan meets industry standards and best practices.

Presenting Your Plan to Stakeholders

When presenting your 5 Year Business Plan to stakeholders, such as investors, lenders, or potential partners, tailor your presentation to your audience. Highlight the most important aspects of your plan and focus on the key messages and value propositions. Use visuals, such as PowerPoint slides, to support your presentation and keep the audience engaged. Practice your presentation to ensure a confident and persuasive delivery.

Addressing Questions and Concerns

During the presentation or afterward, be prepared to address questions and concerns from stakeholders. Anticipate potential queries and objections, and have well-thought-out answers ready. Be open to feedback and be willing to adjust or clarify aspects of your plan based on stakeholder input. This demonstrates your flexibility, adaptability, and commitment to the success of your business.

Writing and presenting your 5 Year Business Plan effectively is essential for conveying your ideas, gaining support, and securing resources for your business’s long-term success. By maintaining a professional writing style, utilizing proper formatting and visuals, and seeking feedback from trusted individuals, you can ensure that your plan is clear, compelling, and persuasive. Remember, a well-written and well-presented plan increases your chances of attracting the necessary support and resources to turn your vision into reality.

Reviewing and Updating Your 5 Year Business Plan

Creating a 5 Year Business Plan is not a one-time task. To ensure its effectiveness and relevance, it is essential to regularly review and update your plan. The business environment is dynamic, and factors such as market trends, competition, and internal dynamics may change over time. In this section, we will explore the importance of reviewing and updating your business plan and provide guidance on how to do so effectively.

Monitoring Performance and Progress

Regularly monitoring your business’s performance and progress is crucial for evaluating the effectiveness of your strategies and objectives outlined in the plan. Establish key performance indicators (KPIs) that align with your business goals and track them consistently. Assess your financial statements, sales figures, customer feedback, and other relevant metrics to measure your progress. This ongoing evaluation allows you to identify areas of improvement, make necessary adjustments, and ensure that you are on track to meet your long-term objectives.

Establishing Key Performance Indicators

Key Performance Indicators (KPIs) are quantifiable metrics that help you measure progress towards your goals. By establishing specific KPIs for each area of your business, you can track performance and identify areas that require attention. Some common KPIs include revenue growth, customer acquisition and retention rates, profitability ratios, operational efficiency metrics, and employee productivity. Regularly analyze and review these KPIs to assess the overall health and performance of your business.

Analyzing Financial Reports

Financial reports provide valuable insights into the financial health and stability of your business. Regularly review your financial statements, including income statements, balance sheets, and cash flow statements, to assess your business’s financial performance. Analyze revenue trends, expense patterns, profitability ratios, and liquidity ratios to identify areas of strength and areas that require improvement. Use this information to make informed decisions and adjust your strategies as necessary.

Making Adjustments and Course Corrections

As you review the performance of your business and analyze financial reports, you may identify areas that require adjustments or course corrections. This could involve revisiting your marketing strategies, refining your product offerings, reallocating resources, or modifying your operational processes. Be open to adapting your plan as needed to address changing market conditions, emerging opportunities, or unforeseen challenges. Flexibility and agility are key to maintaining a competitive edge in a dynamic business environment.

Adapting to Market Changes

The business landscape is constantly evolving, and it is crucial to adapt your 5 Year Business Plan to market changes. Stay informed about industry trends, technological advancements, shifting consumer preferences, and regulatory updates that may impact your business. Regularly assess the competitive landscape and adjust your strategies to maintain your market position. By staying abreast of market changes and making necessary adaptations, you can ensure that your business remains relevant and competitive.

Reviewing and Revising the Business Plan

Periodically review and revise your 5 Year Business Plan to incorporate the insights gained from monitoring performance, analyzing financial reports, and adapting to market changes. Schedule regular plan reviews, such as annually or semi-annually, to assess the effectiveness of your strategies and objectives. Incorporate any lessons learned and update your plan accordingly. Communicate changes to stakeholders, including your team members, investors, and partners, to ensure alignment and understanding.

Regularly reviewing and updating your 5 Year Business Plan is essential for maintaining its effectiveness and relevance. Monitoring performance, establishing key performance indicators, analyzing financial reports, making adjustments and course corrections, and adapting to market changes are all critical components of this ongoing process. By continuously reviewing and updating your plan, you can ensure that it remains a dynamic and relevant roadmap for your business’s long-term success. Remember, the business environment is constantly evolving, and your plan should reflect these changes to keep your business on track towards achieving its goals.

The Power of a Well-Crafted 5 Year Business Plan

A well-crafted and carefully executed 5 Year Business Plan has the potential to transform your business and set it on a path to long-term success. It serves as a roadmap that guides your decision-making, focuses your efforts, and aligns your team towards a common vision. In this final section, we will explore the power and benefits of having a well-crafted 5 Year Business Plan.

Strategic Direction and Focus

A 5 Year Business Plan provides strategic direction and focus to your business. It outlines your vision, mission, and goals, ensuring that all actions and decisions are aligned with your long-term objectives. By having a clear plan in place, you can avoid distractions, prioritize tasks, and stay on track towards achieving your desired outcomes. The plan serves as a constant reminder of what you need to accomplish and helps you stay focused amidst changing market conditions or unforeseen challenges.

Alignment and Cohesion

A well-crafted business plan fosters alignment and cohesion within your organization. It ensures that everyone in your team is working towards the same goals and objectives. The plan provides a framework for decision-making, allowing team members to make informed choices that are in line with the overall business strategy. This alignment leads to increased efficiency, productivity, and collaboration, as everyone understands their role in contributing to the business’s success.

Risk Mitigation and Contingency Planning

A 5 Year Business Plan enables you to identify potential risks and develop contingency plans to mitigate their impact. By conducting a SWOT analysis and regularly reviewing your plan, you can anticipate and address potential challenges before they become significant issues. This proactive approach allows you to develop strategies and contingencies to navigate unexpected events or market fluctuations. A well-prepared business plan gives you the confidence and resilience to weather challenges and adapt to changing circumstances.

Attracting Stakeholders and Resources

A comprehensive and well-crafted business plan is a powerful tool for attracting stakeholders and securing the necessary resources for your business’s growth. Whether you are seeking investment, loans, or partnerships, a solid plan demonstrates your professionalism, vision, and commitment to success. Stakeholders and investors are more likely to support your business when they can see a clear and well-thought-out plan that outlines the potential for growth and profitability.

Measuring Progress and Accountability

A 5 Year Business Plan provides a framework for measuring progress and holding yourself and your team accountable. By setting specific goals, establishing key performance indicators, and regularly tracking your performance against these targets, you can objectively assess your progress and make data-driven decisions. This accountability ensures that you stay on track, make necessary adjustments when required, and celebrate achievements along the way.

Continual Improvement and Adaptation

A business plan is not a static document but rather a living roadmap that evolves and adapts to changing circumstances. As you implement your plan and gain insights from monitoring, analyzing, and reviewing, you can make continual improvements and adjustments. By regularly updating and revising your plan, you can ensure that it remains relevant, effective, and aligned with your business’s needs and goals.

A well-crafted 5 Year Business Plan is a powerful tool that guides your business’s journey towards success. It provides strategic direction, aligns your team, mitigates risks, attracts stakeholders, measures progress, and encourages continual improvement. By investing time and effort in creating a comprehensive and thoughtful plan, you can set your business on a path to long-term growth, profitability, and sustainability. Remember, a business plan is not just a document; it is a roadmap that empowers you to navigate challenges, seize opportunities, and achieve your business’s full potential.

A well-crafted 5 Year Business Plan is a powerful tool that sets the foundation for your business’s success. It provides strategic direction, aligns your team, attracts stakeholders, and guides decision-making. By following the steps outlined in this guide, you can develop a comprehensive and effective plan that charts a clear path towards your long-term goals.

Throughout this guide, we have explored various aspects of writing a 5 Year Business Plan, from conducting a SWOT analysis to structuring the plan, gathering financial data, and reviewing and updating it regularly. Each step plays a crucial role in ensuring that your plan is thorough, well-informed, and adaptable to the dynamic business environment.

Remember, a well-crafted 5 Year Business Plan is not set in stone. It should be viewed as a living document that evolves and adapts as your business grows and market conditions change. Regularly review and update your plan to reflect new insights, market trends, and emerging opportunities. Continually measure your progress, make adjustments when necessary, and celebrate your achievements along the way.

In conclusion, a well-crafted 5 Year Business Plan empowers you to master the future of your business. It provides a roadmap that guides your decision-making, aligns your team, attracts resources, and helps you navigate challenges and seize opportunities. Embrace the power of a well-crafted plan and embark on a journey towards long-term success.

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How do I create a five-year business plan?

A business plan helps leaders to step back and think carefully about the bigger picture.

This includes looking at the company's strengths and weaknesses, as well as the financial situation and resources available. It also encourages you to consider the long-term vision for your business: what does success look like?

A five-year business plan makes your business work more effectively and allows you to continually meet expectations. Don’t assume that business plans are just for startups or companies applying for loans either – they’re valuable for every business.

The benefits of creating a business plan

There are plenty of benefits when it comes to five-year plans.

Identify a long-term goal

A business plan forces you to settle on a direction and goal for your business, which is essential if you’re easily distracted by trends or new projects.

Once you’ve identified the direction you want to take, you’ll have a better idea of how strategically aligned your business is. Does your day-to-day activity match up with what you want to achieve?

Set priorities

You can’t do everything at once. A business plan ensures your time, effort and resources are best spent. When thinking about how to write a strategic plan, ensure you choose which tasks to prioritise and which tasks aren’t as essential as part of the process.

Once you understand your priorities, you can set objectives for the company based on these priorities.

Calculate your resources

Putting together a five-year business plan for a company helps to map out what you'll need in the next few years. While circumstances inevitably change over time, you’ll know roughly what resource is required to get projects successfully out of the door.

Spot potential problems

A business plan encourages you to take a critical look at the next steps you’ll take. That makes them useful for spotting any potential problems that could derail the business.

For example, you might find your financial projections are unrealistic or you haven’t factored in the budget you need for extra developers. It’s better to realise this now, rather than suddenly facing a blocker a year down the line.

How to write a strategic plan

There are seven main components of a business plan.

Executive summary

The executive summary provides an overview of your plan and business. Although it comes first, it’s best to write it last when you have a clearer idea of what you want to achieve.

Try to keep the executive summary to a single page. It should be a concise, accessible way for employees, advisers and investors to understand your business plan.

Company mission statement

You’re planning for your company’s future, so what better time to remind yourself of the reason why you started? The goals you set in your business plan should ultimately relate back to your mission statement.

SWOT analysis

A SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis lets you analyse your company’s capabilities.

By identifying your strengths, you’ll know which areas of the business you can build on and which areas need improvement before you can progress.

For example, your strengths might be in your operational capabilities. You have an efficient service that customers rate highly and there’s plenty of opportunity for growth. However, your weaknesses are that your marketing team is inexperienced and your internet presence is minimal.

As a result of this SWOT analysis, your next steps could be:

• Hire a marketing manager with experience in your sector
• Research the resources needed to build a competitive online presence
• Strengthen your leadership team to prepare for growth

Setting goals

Having long-term goals is essential for businesses. If you don’t have an ambitious goal that excites you and drives your team forward, your business will stagnate.

The first step is to identify your five-year or long-term goals.

• Keep goals clear, simple and specific
• Think big – your long-term goals shouldn’t be something you can achieve in six months
• Make sure your goals tie back to your mission statement

Try to make your goals as specific as possible. For example, if it’s to increase your share of the market, ask yourself: by how much? The more specific you can be, the easier it will be to measure how much progress you’re making towards them.

Customer, industry and competitor analysis

By this point in your business plan, you will have established your strengths, areas for improvement and goals. But a business plan shouldn’t just focus on your company – you need to look at external factors that could affect you too.

Customer analysis

This component of your business plan looks at who your target customers are and where you’ll focus your marketing efforts. The more you know about your prospective customers, the higher your return on investment will be.

Even if you’ve been running your business for a while, bear in mind that the market is constantly changing and customers’ demands around speed and quality of service is increasing. Will your current marketing methods still be effective in five years? What other ways could you attract new customers?

Industry analysis

This section doesn’t have to be an exhaustive report on your market. But it is important to look at where it is likely to go in the future.

You need to ensure the market is growing and there are future opportunities in your current sector. If not, you might need to diversify your offering and look at new opportunities you could take.

Competitor analysis

Define your main competitors and list their strengths and weaknesses. Online reviews can help to give you a customer’s perspective.

This analysis determines your current competitive advantage and any areas you could build on.

Examples of competitor analysis questions include:

• What markets or market segments do your competitors work in?
• Why do customers buy from them?
• Is there a service that customers want from your competition that they don’t offer?

Summary of your team

Even with a comprehensive business plan in place for your company, you won’t achieve your goals if you don’t have the right people on board.

Provide a summary of your team, including brief bios of key members. Look in particular at their experience and skills to see where you might have gaps.

Can you accomplish your goals with your current team? Does your team have the relevant industry experience and background?

Financial projections

Financial projections are an essential component of your business plan because they help you decide the best opportunity to pursue. If you don’t analyse your future finances, you risk spending a year on a project and then running out of money.

This section will also help you clarify your goals and ensure they’re grounded in financial knowledge. For example, if your goal is to increase the number of first-time customers, look at how much it’ll cost you to reach your goal each month.

Try to roughly outline your annual projections over the next five years, but be prepared to come back to this section regularly. You can update it each month as you have more clarity and insight about what your business is spending.

Adapt if your business plan goes off course

Five-year plans rarely stay the same. You’ll need to continually reassess the components of your business plan in response to changing market conditions, staff and competition.

What matters most is how you adapt to unexpected challenges. If something comes up, be flexible and prepared to rework your plan. Don’t tie yourself to a goal if it’s no longer in your company’s best interests.

Fourth-generation family business H.Forman & Son faced a series of disasters which turned their plans upside down. The first was a factory fire, then a local river flooded and left the building under a metre of water. The factory had to be rebuilt near the top of a hill, with extra fire safety precautions and three years’ business interruption insurance.

During tough times, owner Lance Forman recommends revisiting your business plan and deciding where your company goes next. Focusing on the future keeps him motivated, but he emphasises that business owners should be prepared for change.

“None of us know what’s around the corner. It doesn’t mean you shouldn’t have an idea of where you want to get to, but being too rigid is a mistake." Lance Forman, owner of H.Forman & Son

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[Updated 2023] How to Write a Five Year Business Plan [Best Templates Included]

Smriti Srivastava

Achieving a set of goals is challenging.

Maintaining the motivation and productivity to achieve business goals is even harder.

In the words of Yogi Berra, a big-league baseball player-turned-manager, “Without a plan, even the most brilliant business can get lost. You need to have goals, create milestones, and have a strategy in place to set yourself up for success.”

This is why everyone in the industry — from an interviewer looking to hire top talent to an entrepreneur who accomplishes goals systematically — splits their business plan into five years. A five-year business plan not only extends a generous period to attain the set targets but at the same time keeps everyone on their toes, removing procrastination.

But writing a five-year business plan can get tedious, messy, and, sometimes, take forever to hit the right spot.

Therefore, this blog will cover the essential steps to help you write a tremendous five-year business plan.

Chronology of writing a spectacular five-year business plan

It is quite simple. You cannot achieve something great when you don’t know your priorities, objectives, ways, and timeframe to achieve those targets. It is essential to build a five-year plan for your business as well as the outcomes and expectations related to it.

But where do you start?

Here are the five sections you must include in your plan:

#1 A clear company introduction

A brief yet effective overview of your business, its market, team structure, roles and responsibilities, company offerings, and value proposition builds the foundation for your future endeavors. You use a company overview to set the right tone at the beginning of your business plan, as it serves as the base and a direction for your audience.

Related read: How to Create an Attention-Grabbing Company Introduction Slide in 10 Minutes

#2 vision and mission statement.

You have to ensure your employees, stakeholders, investors, and potential clients understand what your company is all about and what you stand for. Your vision and mission statement helps you with it. It enlightens the audience about your future plans - where you see your company in five years and the results you will work to achieve.

Related read: Top 10 Mission and Vision Statement Templates to Guide Your Organizational Culture

#3 target market and branding.

State who your company is looking to serve and why. Provide clarity on your target market based on psychographics and demographics. And do not forget to mention the size of your target market. You have to create a framework for making your brand visible exponentially and simultaneously create a lead generation and conversion strategy.

Related read: Top 30 PowerPoint Templates to Analyze Dominant Market Drivers

#4 product overview.

Set clear priorities based on the distinction between your primary and secondary products. You need to connect your branding around the product or service core to your company. This categorization will help you establish the revenue your products generate and the impacts they create. Further, it will help modify your plans accordingly.

Related read: Top 10 One-Page Product Overview PowerPoint Templates to Drive Sales

#5 swot analysis.

Measuring your strengths, weaknesses, opportunities, and threats in the industry can help you successfully dominate the market. Therefore, your five-year business plan must include regular and timely analysis of all your business operations. There is no better way to meet targets than keeping a check on one’s activities. It will help you focus on the proprietary system of your company.

Related read: Top 50 SWOT Analysis PowerPoint Templates Used by Professionals Worldwide

Templates to nail your business plan.

Often we have countless ideas to plan our way to a successful business. But as the day-to-day grind starts, it is easy to get distracted from the end goal and stray from the path leading to our intent. We look for a north star to point us directly to our mission. So we decided to make your life a bit easier by providing our readymade and editable five-year business plan templates. You can access them below. Dive in!

Template 1: Five Year Business Plan Roadmap Template

Help your team stay on track with your future business ambitions by taking the assistance of our invigorating PowerPoint template. This content-ready template helps you visualize your work plan and present your vision impactfully. You just need to click the download link to start customizing it.

Download this template

Template 2: Key Poniters for Five Year Business Plan

Use this business plan template that includes vital pointers such as setting clear goals and objectives, conducting market research and competitor analysis, developing a comprehensive marketing strategy, creating financial projections, and establishing a system for measuring progress and adjusting your plan accordingly. By following a structured template and considering these essential elements, you can create a plan that sets your organization up for long-term success.

Template 3: Five Year Roadmap Timeline for Business Plan

Employ this professionally curated template to improve the success rate of your business. This template helps you track the progress of all your operational activities without any hassle. Also, our color-coded template makes it easy to comprehend and follow. So download this adaptable template to start adding your data effortlessly.

Template 4: Five-Year Business Plan Roadmap with Operations and Functions

You can utilize this template to articulate the workflow of your organization smoothly. This template allows you to write an attractive executive summary of your business operations and functions. Download the template and start assembling your key milestones immediately. Click the link below!

Template 5: Five Year Milestones Template

Outline the timeline for achieving future goals with the help of this template. Our experts have designed this PowerPoint template to help you summarize your vision, mission, targets, and timeframe in an easily accessible format. Grasp the attention of your employees and stakeholders right away by downloading this template.

Template 6: Five-Year Roadmap for Business Planning

A comprehensive plan of action displays confidence and foresightedness. Therefore, we have curated this content-specific template to help you create a strategic roadmap for your business goals. This template distributes the target phases based on yearly milestones, thereby making it easily understandable. Grab it now!

Template 7: Five Year Business Plan with Roadmap

Take your business to the next level with this five-year business roadmap with checkpoints. It includes sections for sales, product, operations,  and targets set for different team members. It also includes timelines and checkpoints for processes and activities. Download this editable PowerPoint Slide now to streamline your business alignment.

Template 8: Five Year Business Plan With Financial Projection

Make your future financial outcomes expectations loud and clear by using this PowerPoint template. Represent your business planning elements creatively by employing this template. You can even highlight your company’s ongoing functions and practices in a structured way with the assistance of our entirely adaptable PPT template.

Template 9: Five Year Business Plan Implementation Roadmap

The success rate of business plans hugely depends on the plan of action, and this editable five years roadmap of the organization rightly serves the purpose. Encapsulate all the information related to the project in a well-structured manner to obtain maximum efficiency by incorporating this stunning PowerPoint slide. State the critical deliverable, steps involved, time frame, workforce allocation, and lots more in an easy-to-understand manner by utilizing this pre-designed roadmap layout. Download now!

Template 10: Five Year Business Plan with Risk Status

Select this PowerPoint template to predict your future growth. Using this PPT template, you can assess potential risks that can stunt your business development in the coming years. Revamp your venture by utilizing this template as a guiding star. Download it and start with your strategic planning right away!

Having a strategic roadmap for handling your business operations and objectives is the only way to go. You cannot expect high profit and returns on investment without having a clear outline for the next five years of your business. With our stunning business plan ppt templates, you will definitely look confident, assertive, reliable, and foresighted.

FAQs on Five-Year Business Plan

How to write a five year business plan.

Here are some key steps to consider when writing your plan:

Define your mission and vision: Start by articulating your organization's purpose and long-term goals.

Conduct market research : Analyze your industry, identify trends, and understand your target audience.

Evaluate your competition: Analyze your competitors' strengths and weaknesses, and determine how you can differentiate yourself in the marketplace.

Develop a marketing and sales strategy: Outline how you will reach and engage with your target audience and define your pricing strategy.

Create financial projections: Develop a comprehensive financial model that includes revenue and expense projections, as well as cash flow analysis.

Establish a system for measuring progress: Determine key performance indicators (KPIs) that will help you track progress towards your goals, and create a plan for reviewing and updating your plan on a regular basis.

What is a good 5-year business plan?

A good 5-year business plan is a comprehensive document that outlines an organization's strategy for achieving its long-term goals. Here are some key elements to include in a good 5-year business plan:

Executive summary: Provide an overview of your organization's mission, vision, and goals, as well as a summary of the key elements of your plan.

Market analysis: Conduct thorough research to understand your industry, target audience, and competition.

Marketing and sales strategy: Outline how you will reach and engage with your target audience, and define your pricing strategy.

Financial projections: Develop a comprehensive financial model that includes revenue and expense projections, as well as cash flow analysis.

Organizational structure: Outline the roles and responsibilities of key personnel, and describe how your organization will be structured to achieve its goals.

Risk management: Identify potential risks and develop strategies to mitigate them.

Performance metrics: Determine key performance indicators (KPIs) that will help you track progress towards your goals, and create a plan for reviewing and updating your plan on a regular basis.

Related posts:

5 essential tips to develop a solid 5-year business plan.

• How to Design the Perfect Service Launch Presentation [Custom Launch Deck Included]
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Looking to Start a Small Business? These Top 15 Printable Business Plan Templates Will Save You Time and Money

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How to Create a 5-Year Business Plan in 8 Easy Steps

• March 11, 2024

12 Min Read

As an entrepreneur or a business owner, you know it can be challenging enough to predict business growth for the long term. And the business decisions you make today will shape your company’s future.

Well, having a strategic plan for the next three or even five years will guide you toward long-term business goals and increase the potential for success.

So, why take a chance? Keep a solid five-year business plan with you!

Need help writing a business plan from scratch? Don’t worry;  we’re here to support you with our 5-year business plan template .

This will help you learn more about the business plan for 5 years and what components you should include in it. Also, it allows you to organize ideas, set realistic growth targets, and refine your business strategy that will attract investors.

Sounds good, right? Let’s get started.

Free 5-Year Business Plan Template

Download our 5-year business plan template now and start planning with ease.

What is a 5 Year Business Plan?

A 5-year business plan is a professional document that serves as a strategic roadmap for your company’s future. It outlines business goals, strategies, financial projections, and growth plans for the next five years. 

It helps you set clear objectives, define target customers, allocate resources effectively, mitigate risks, adapt to changing market conditions, and make informed decisions.

Ultimately, a well-developed 5-year plan keeps you on track and drives sustainable growth and profitability over the specified timeframe.

Why do you need a 5 year business plan?

Writing a solid business plan is one of the most important aspects of your entrepreneurial journey.

A 5-year business plan gives you a structural framework to think strategically about your company’s plans over the next few years. It helps you organize your business idea and guide your strategic decision-making.

The following are a few key reasons why it’s valuable to have a 5-year business plan:

Highlight your long-term vision

A 5-year plan helps you articulate your long-term vision and define a set of strategic goals for your business over the next five years. This will allow you to stay focused on your objectives and make smart decisions to navigate the complexities of your business environment.

Build investor confidence

If you’re looking for investors or stakeholders to fund your business expansion, a well-written 5-year plan is necessary. It demonstrates your commitment to long-term growth and assures investors that your business will make profits. So, this will increase their confidence and belief in your long-term strategy.

Mitigate potential risks

Analyzing and identifying potential risks is the key aspect of any business. So, an actionable plan helps you develop strategies to mitigate those risks and ensure your business continuity. If there is economic volatility, regulatory transitions, or technical disruptions, a 5-year business plan helps you anticipate and prepare for business challenges.

Promote strategic planning

A good 5-year business plan enables you to think about the business and how to attain sustainable growth and success over the next few years. It also helps you make strategic hiring decisions and anticipate future staffing needs. By identifying market trends, competitors, and internal capabilities, you can enhance strategies to capitalize on opportunities and reduce potential risks.

Now that you know why a business plan is necessary, it’s time to understand what to include in a detailed 5-year plan.

What to include in your detailed five-year business plan

1. executive summary.

An executive summary is a brief introduction to your 5-year business plan and summarizes each component you mentioned in the document.

Though it is the first section, it is written in the last, since it provides a high-level overview of the complete business plan.

The executive summary is the introductory section of the plan, so its primary goal is to quickly attract readers and convince them to delve further into the rest of the plan.

Here are a few details you may consider including in your executive summary:

• A quick overview of your business idea and objectives
• Your company’s mission and vision statements
• Industry analysis and market research
• Sales and marketing plan
• Key performance indicators
• Introduction of your management team
• Financial forecasts for the next five years

Remember that you keep your summary simple, concise, and compelling enough to build investors or readers trust.

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2. Business Overview

As its name indicates, the business overview section provides a detailed description of your company. It covers all the essential information, from a business idea to its long-term goals.

Since you’ll give a brief company description in the executive summary, this chapter would be an expansion on it, providing an in-depth understanding of your business.

So, this section makes it easier for readers or potential business partners to quickly understand and confirm the nature of your business, such as what your company does, who the potential customers are, and how you plan to reach your objectives.

You may include all the following crucial elements in this section:

• The type of small business you operate
• A brief history or background details of your business
• Achievements or milestones you’ve achieved
• Business legal structure(s-corp, LLC, sole proprietorship, etc.)
• Mission statement
• Short-term goals and long-term objectives

3. Market Analysis

Industry analysis and market research is a detailed breakdown of the external business environment. It provides a thorough understanding of the specific industry or sector in which your business will operate.

This section helps your readers or potential investors to easily understand the broader industry, target customers, emerging trends, and market demands.

Apart from that, it helps you and your team to analyze and identify the untapped key areas in the market and develop strategies to stand out from the competitors.

Here are some specific details you may include:

• Market size and growth potential
• Target market
• Ideal customers, along with their preferences and buying habits
• Competitors’ research and SWOT analysis
• Industry trends
• Regulatory environment

4. Product and Services

In the product and services section, you may provide details of your product or service range, main features, pricing, and more. It helps you demonstrate the current capabilities of your business and highlight the USPs.

So, you may consider adding the below points in this section:

• Product/service description
• Pricing details
• Quality standards
• Future product development plan

While you’re planning how to start your own business, you have to explore the market and determine how your offerings will encounter customer problems and satisfy their needs better than competitors.

5. Sales and Marketing Strategies

Your sales and marketing plan outlines the strategies you’ll use to reach the target audience and how you’ll bring more customers by promoting your products/services to them.

A well-written marketing plan will encourage you to create effective campaigns and simplify your marketing efforts while maintaining the marketing budget and maximizing return on investment.

Thus, you may describe a list of sales strategies and promotional tactics to attract new customers and retain existing ones.

Here’s a list of key components you may include in this section:

• Target audience
• Marketing strategy
• Sales approach
• Sales and marketing goals
• Customer retention program

6. Operations Plan

As you’ve mentioned your business goals in the previous sections, now it’s time to define how you’ll meet those goals.

In your operations plan, you’ll need to outline all the details of everyday business operations and activities. This will help you and your team to define responsibilities, daily tasks, and short-term goals you plan to achieve, keeping track of your future goals.

Well, here is some distinct information you should include in the operations plan:

• Staffing and training
• Operational process
• Supply chain & Inventory management
• Facilities and equipment

Note that your operations plan is a living document, you may adjust and update it as needed.

7. Management Team

A well-trained and experienced management team is crucial for driving your business ahead.

So, highlight your business owners and key executives in this section, along with their roles & responsibilities, educational qualifications, industry experience, and how you plan to compensate them.

It allows readers to easily understand your management team’s background, skills, and expertise that help you grow your company and make informed business decisions.

The following information you may consider including in the management team section:

• Company owner profile
• Resume-styled summary of key members
• Organizational structure
• Compensation plan
• Advisory board members

8. 5-year Financial Projections

A financial plan is the most crucial aspect of your five-year business plan, as potential investors or lenders want to know more about your business profit margins.

It provides a detailed blueprint of your business’s 5-year financial reports broken out both monthly or quarterly for the first year of operation and then annually.

While creating an in-depth financial plan for the next 5-years, you’ll need to highlight all the below factors:

• Revenue forecast
• Cost estimates
• Profitability analysis
• Cash flow projections
• Break-even analysis
• Business ratios

In addition to that, if you’re seeking funding or investors, you will need to summarize exactly how much money you need, how you plan to use these funds, and how you pay it back.

Well, having realistic financial forecasts at your hand can help you evaluate your business’s financial health and growth potential in the long run.

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Tips for creating a five-year business plan

Now that you understand what to include in a business plan, it’s time to consider how you’ll actually create the document. Here are some tips for drafting a comprehensive five-year business plan.

This will help you prepare a business plan that serves its purpose and can be an easy reference for the years ahead.

Conduct thorough analysis

Conduct a thorough analysis of the market, competition, internal capabilities, and the current financial situation of your business before you finalize your five-year plan. Also, identify your strengths and address weaknesses. This helps you pinpoint potential risks and opportunities that impact your business and strategic decisions for the next few years.

Set realistic financial goals

While setting your business objectives, it’s important to define specific, measurable, and achievable goals that you can accomplish in the years ahead. Try to consider a few factors, such as marker conditions, emerging trends, and your business capabilities when setting revenue targets, profit margins, and other financial milestones. This will help you stay focused and motivated.

Demonstrate the potential for ROI

A 5-year plan should effectively show the investors and stakeholders that your business has the potential for return on investment(ROI). It will help you outline how your strategic initiatives will generate revenue and profitability over the next five years. So you can provide a clear opportunity for investment and support.

Develop contingency plans

Developing a contingency plan is crucial for the potential challenges that may arise over the next few years. You can consider several factors like economic downturns, supply chain disruptions, regulatory changes, or other unforeseen events. This will mitigate the impact of these risks and ensure that your business runs smoothly even in challenging circumstances.

Ensure clear communicate

A detailed five-year plan allows entrepreneurs and business owners to clearly communicate their business goals, milestones, and strategies. So this will be easy to understand for all the stakeholders, including potential partners, investors, and employees. You can also use charts, graphs, and visuals to share intricate details and make your plan more compelling.

Review and update regularly

Once you have crafted your entire business plan, you should regularly schedule reviews to assess progress, update assumptions, and update strategies as needed. Since the business plan is a living document, it evolves over time based on new facts or varying business environments. By revising and updating your plan, you make sure that it will remain relevant and effective.

So, try to keep in mind these few factors while creating a 5-year plan. Now, let’s move forward and explore several types of business plan templates.

Examples of 5-year business plan templates

As there are several types of 5-year business plan templates available, no two business owners build the same 5-year plans.

This is so because the business plan template that works best for your company depends on the age of your business, objectives, and the purpose behind using the plan.

Here are a few examples that are tailored to different aspects of business planning:

Traditional 5-year business plan template

This kind of business plan template follows the standard format as you establish a new business or startup, define the target audience, and market your products/services. It includes lengthy sections about company overview, market analysis, marketing and sales strategies, or financial forecasting. So, this will provide a detailed plan for your business over the next 5 years.

Strategic plan for growth and expansion

When you’ve been running the business for a few years and thinking about expansion or growth, a strategic growth plan might be your choice. It will help you approach your growth strategically and provide the best opportunities to identify risks and techniques to mitigate them. So, this type of template helps align your business activities with long-term objectives.

Simple one-page plan

As the name suggests, it is a single-page business plan that helps you provide a high-level overview of your business to the partners, investors, or suppliers. Since it is shorter in length, it highlights the most crucial points, and even writing a one-page business plan can be much simpler and quicker compared to the traditional business plan.

Start preparing your business plan

Finally, with the help of details and resources provided in this guide, you’re well-equipped to start an exciting journey of preparing a successful 5-year business plan.

Whether you’re an experienced entrepreneur or a new business owner, you can consider using a business plan app like Upmetrics to streamline your business planning approach.

Upmetrics is a user-friendly platform that provides easy-to-follow guides, 400+ business plan examples, and AI support to create an actionable plan in manageable steps. It also helps you develop realistic financial projections if needed or when you feel stuck with a financial plan.

So, start writing your plan today and bring your vision to life!

Make your plan in half the time & twice the impact with Upmetrics

Fill-in-the-blanks, AI-assistance, and automatic financials make it easy.

Frequently Asked Questions

Is it good to make a 5 year plan.

Creating a 5-year or long-term plan is highly beneficial for your businesses. It helps you set clear goals, anticipate potential risks & challenges, develop realistic financial outlook, demonstrate growth potential to investors, and build their confidence. So, it guides you in the right direction to attain sustainable growth and success over the long term. 

How much detail should I include in the financial projections?

The following are a few key elements that you need to include in your financial projections:

• Sales forecast
• Expenses budget
• Cash flow statement
• Profit and loss statement (Income statement)
• Balance sheet

How long should my 5-year business plan be?

The length of a 5-year business plan typically ranges from 15-35 pages and beyond as it depends on your purpose, business concept, objectives, resources you plan to use, and the strategies you will need to achieve your business goals.

Can I write a business plan myself?

Of course, you can write your business plan by yourself. If you are new to the planning process, you may get help from various resources available. You may consider including business plan software, online guides, templates, strategic planning sessions, and professional writers.

What's the best way to format my 5-year plan?

The best way to format your 5-year plan depends on your specific needs, target market, and business strategy. You may follow the below guidelines to create a professional-looking business plan:

• Write a compelling executive summary
• Provide a detailed company overview
• Conduct thorough market and industry analysis
• Describe the products and services
• Outline sales and marketing strategy
• Summarize operations plan
• Introduce your management team
• Present 5-year financial forecast

About the Author

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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Writing a 5-Year Plan: Best Tips & Examples to Get You Started

Last Updated: May 28, 2024 Fact Checked

Creating a 5-Year Plan

What is a 5-year plan, benefits of a 5-year plan, sample 5-year plans, expert q&a.

This article was co-authored by Shannon O'Brien, MA, EdM and by wikiHow staff writer, Jennifer Mueller, JD . Shannon O'Brien is the Founder and Principal Advisor of Whole U. (a career and life strategy consultancy based in Boston, MA). Through advising, workshops and e-learning Whole U. empowers people to pursue their life's work and live a balanced, purposeful life. Shannon has been ranked as the #1 Career Coach and #1 Life Coach in Boston, MA by Yelp reviewers. She has been featured on Boston.com, Boldfacers, and the UR Business Network. She received a Master's of Technology, Innovation, & Education from Harvard University. There are 10 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 794,694 times.

If you have ideas for things you want to accomplish in your life, a 5-year plan can help you get to where you want to go. A 5-year plan allows you to plot out specific, concrete steps that will help you create the life you envision—but how do you get started? We talked to life and career coach Shannon O'Brien for tips on how you can get your life on track with a 5-year plan.

Writing an Achievable 5-Year Plan

• Visualize yourself in 5 years. Note the changes that need to happen to get you there.
• Find your "why"—the reason you want to accomplish these goals.
• Learn what resources and knowledge you need to accomplish your goals.
• Create specific, measurable short-term goals to work toward your larger goals.

• Think about improvements you might like to see in areas like your health, relationships, career, family, community, religion or spirituality, or hobbies and recreation.
• For example, if you see yourself as a physically fit person running in a marathon, you might design a health-focused 5-year plan with the goal of getting in shape and starting a regular running training program.
• If you're working on a career-focused 5-year plan, you might create a fictional résumé for yourself in 5 years. This helps make the goals you set along the path to success more concrete. Just don't submit your fictional résumé for a job opening! [2] X Research source

• HARD goals are things that you can't imagine life without. If you didn't achieve these things, you would feel as though something was missing in your life. [4] X Research source

• For example, if you want to become more physically fit , your first answer might be so that you feel better about your body. But if you keep digging, you might find that what you're really concerned about is being around and being healthy for your family. Your family is your core value.

• For example, if you have a 5-year goal of running in a marathon, running a 5K wouldn't be a suitable goal for Year 1. There are many Couch-to-5K programs that can be completed in 30 days, so that goal wouldn't be challenging enough.

• For example, if your 5-year goal is to run a marathon, your short-term goals would likely involve running shorter distances, or running a shorter distance at or under a specific time.
• Choose goals that are based on your performance, not on the outcome. These are more specific and measurable. For example, rather than setting a goal of being fluent in a language, you might set a goal to learn 10 new words every day. [11] X Research source

• For example, if you have a goal related to physical fitness, you might need to buy a gym membership or hire a personal trainer.
• Some goals might require you to learn things. For example, if one of your goals is to teach English in Venezuela, you might need to learn Spanish first.

• You might hang a copy of your 5-year plan in your bathroom so you can reflect on it while you're getting ready in the morning, or near your desk so you'll see it while you're working.
• Don't be shy about your 5-year plan—share it with friends and colleagues who can cheer you on, help motivate you to achieve your goals, and hold you accountable.

• For example, what if your 5-year plan was to run a marathon, but you're running half-marathons with ease after 1 year of training? It's not going to take you 5 years to get ready for the marathon, so you might revise it to a 2- or 3-year goal.
• Sometimes you'll also want to revise your plan due to a change in circumstances beyond your control. For example, you'd likely scrap your 5-year plan to pay off your student loans if the federal government announced all student loans were being forgiven.

• The most important thing to remember about a 5-year plan is that it's never set in stone. A lot can happen in 5 years, so it could be that everything in your plan will change.
• The point of the plan is to show a way that you can achieve your goal, even if it ends up not being the way you ultimately get there.
• Any 5-year plan tends to center around your goals, but goals and plans are two very different things. Your goals are what you want to achieve while your plan is like a roadmap that tells you how you're going to get there. [16] X Research source

• Your plan's flexibility also helps motivate you because you aren't as worried about being derailed if you hit a snag. Because you have the big picture in mind, you know you can work through any challenges that come your way.

• If your plan includes a goal that other people are involved in, the plan also gives those people clarity on what they need to do to achieve the goal collectively.
• You don't have to wonder if the next steps you're taking are leading in the right direction because you've already plotted the whole thing out.
• A clear path also enables you to see how to quickly regroup and get headed toward reaching your goal again if you become sidetracked.

• The plan also allows you to see the whole path clearly so you can understand how each small step that you make is gradually getting you closer to achieving your goal.

• For example, if you have a 5-year plan to become partner of your firm, you might take on projects that set you apart from your colleagues or actively pursue promotions. This gives you more control than if you just waited for the higher-ups to notice you.

• When you're plotting out your 5-year plan, you'll naturally think about stumbling blocks that might arise. Then, you can figure out what you'll do to get around them if they do come up.
• With a 5-year plan, you'll feel like you're on top of things because you have all of the details mapped out. Taking care of the details like this allows you to see the big picture and celebrate all the small accomplishments that eventually lead to major success.

You Might Also Like

• ↑ https://students.carleton.ca/log/five-year-plan/
• ↑ https://capd.mit.edu/resources/creating-your-five-year-plan/
• ↑ https://public.summaries.com/files/samples/hard-goals.pdf
• ↑ Shannon O'Brien, MA, EdM. Life & Career Coach. Expert Interview. 24 September 2021.
• ↑ https://www.berkeleywellbeing.com/personal-goals.html
• ↑ https://www.mindtools.com/a5ykiuq/personal-goal-setting
• ↑ https://www.psychologytoday.com/ca/blog/the-cross-examined-life/202401/learn-first-plan-later-drafting-a-useful-five-year-plan
• ↑ https://www.berkeleywellbeing.com/my-10-year-plan.html
• ↑ https://psycnet.apa.org/record/2010-04488-003
• ↑ https://www.mindtools.com/blog/whats-the-point-of-business-plannin-benefits-of-a-5-year-business-plan/

About This Article

To write a five year plan, come up with some goals that are as specific as possible, which will make them easier to track. For example, instead of saying "I want to be making more money," you could say "I want my salary to increase by 15 percent." Once you've made a list of goals, write out a plan for achieving each one. Also, break your goals up into a series of short-term goals so that you feel like you're accomplishing things along the way. For help choosing goals and working toward achieving them, keep reading! Did this summary help you? Yes No

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Going somewhere? Write the 5-year plan you need to achieve it

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What is a 5 year plan?

The benefits of creating a 5 year plan, how to create a 5 year plan in 6 easy steps, 5 year plan examples.

You may have heard of SMART goal setting (Specific, Measurable, Achievable, Realistic, and Time-bound goals), but have you ever heard of HARD goal setting?

Society has been pushing SMART goals since the early ’80s, but a 2020 study found that people who set SMART goals are much less likely to love their jobs , while people who set HARD goals are 53% more likely to love their jobs. 

But, what are HARD goals? HARD goals are defined as: 

• Heartfelt 
• Animated 
• Required 
• Difficult 

They are goals for which you have an emotional connection, strong visualization, great urgency, and difficulty. 

While there are laudable aspects of SMART goals, the study shows serious problems regarding the ‘achievable’ and realistic’ aspects of SMART goal-setting. 

Methodologies that emphasize creating difficult goals are far more likely to be successful and generate higher employee engagement.

In this article, we’ll show you how to use HARD goals to make a 5 year plan, as well as show you two 5 year plan examples.

A 5 year plan is a personal and/or professional list of goals that you want to achieve in the next 5 years. 

Oftentimes, 5 year plans include smaller, concrete goals, to help you achieve the larger goals on your list. 

For example, if a long-term goal is to buy a bigger house, then a smaller goal might include setting aside a certain amount of money each month to go toward a deposit on a home loan. 

Or, if one of your long-term goals is to be a certified nurse, then a smaller goal might include finding the best nursing program in your area or applying for a student loan.

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One of the best things about a 5 year plan is that it can significantly motivate you to create the life you want to live. Notice we said “create the life “ not just “achieve the goal.” A 5 year plan that works for you will be more effective if you think of your life holistically — how do you want to feel? What values will you be living? — as you create it. 

Whatever the specific goals you have in mind — whether it’s starting a business, becoming certified or developing expertise, competing in an event, having a child, or taking a big trip — a 5 year plan can help you move from dreaming into doing, wish into a reality. 

Here are some other benefits of creating a 5 year plan:

• It creates a starting point for a career, start-up idea, or personal goal . If you have a goal without a plan, it may not ever happen. But, if you know you want to be a real estate broker by 2026, you’re in a better position to start the process and take actionable steps to achieve that.
• It helps you stay focused and aligned with your ambitions, rather than your dreams constantly hanging out in the back seat. 
• It’s a consistent reminder of what you’re aiming toward, and what you need to do to get there. 

The trick is: keep your plan as visible as possible, make sure it’s what you deeply desire, and make sure your goals are specific, measurable, time-bound, and HARD. 

What should be included in a 5 year plan? 

Grab a pen and a piece of paper. Visualize your life 5 years from now, and write down everything you see without thinking or judging . If any fears, doubts, or negative emotions come up, that’s normal. The key is to ignore them and not attribute any meaning to them.

Use the following categories to help you write your complete brainstorm. 

How do you want your nutritional health , mental fitness , physical health , and mental health to look in 5 years?

Are you interested in being vegan? Do you want to lose weight? Do you want to start a yoga practice ? Would you like to regularly meet with a therapist? 

Relationships

Imagine your future professional relationships, friendships, and familial relationships. What do you want them to look like?

Do you want to join a networking group? Are you interested in starting a book club? Do you want to adopt a child? Do you want to take more trips with your partner?

Visualize your financial goals in these buckets: 

• Bills 
• Everyday expenses (i.e. groceries) 
• Flexible spending (i.e. entertainment) 
• Emergency savings 
• Goal savings 
• Investments 

What do you see?

Will you be contributing higher amounts to your 401(k)? Are you planning on saving for higher education? What do you want your emergency savings to look like? Do you want to save for a big trip?

Career/business

What are your career and business aspirations?

Do you picture yourself leading a huge team or an entire corporation? Do you want to be a digital nomad? Are you planning on starting a blog? 

The truth is, the world of business and how people buy and use goods and services is constantly changing — and fast. Don’t get hung up on roles and titles. Especially if you’re early in your career, you will discover career aspirations and opportunities that don’t even exist today. That being said, spend time thinking about what types of activities interest you, what type of environment you enjoy, what type of impact you want to make day-to-day.

If you’re feeling stuck about your career goals, consider:

• Taking career assessments
• Making a list of various career paths
• Finding the overlap between things you like and what companies are hiring for
• Working with mentors
• Building your network
• Creating your own job or business that lines up with your interests
• Listing your passions, values, skills, and interests, then finding or creating jobs that match some parts of the list

If you’re still unsure about your dream job, don’t worry. Go after jobs you’re interested in, learn from them, and eventually, you’ll come across pursuits you’re excited about. Many people also worry if they don’t have a passion. The reality is that pursuing interests and immersing yourself in the work is a good way to discover and develop passion . It’s also okay if you’re multi-passionate and interested in several jobs. 

Personal/spiritual/religious development

How do you want to grow personally and/or spiritually?

Are you interested in starting a home church? Do you want to work with a life coach or career coach? Do you want to meditate more? Would you like to start a gratitude or prayer practice? Do you want to build resilience ? 

Environment/organization/space/home

How do you picture your future environment?

Are you living in a tropical bungalow in Bali? Are you in a newly decorated and renovated home? Do you have a custom pool in your backyard? Are you living with your family to save money? Are you embracing minimalism?

Recreation/fun

What kinds of hobbies will you have in the future?

Will you be snowboarding every winter and surfing every summer? Are you interested in joining a soccer league? Do you want to take up cooking or art classes? 

Service/contribution

What kind of meaningful contribution would you like to be a part of?

Are you interested in volunteering for a vegetable co-op? Will you be tutoring kids on the weekends? Being a mentor ? Do you want to buy monthly groceries for one of your friends in need until they get back on their feet?

• Focus your plan
• Consider potential goals
• Determine your 'why?'
• Identify annual goals and create monthly goals
• Research how to reach your goals
• Adjust and revisit as needed

Here’s how to use your notes to create your plan:

1. Focus your plan

Take a look at your notes and decide which specific areas to focus on. 

You might decide that you’d rather focus on a few areas, like your health and career, or you might decide that you want to focus on all areas. 

Once you decide, grab a piece of paper for every area you plan to focus on and write the area of growth at the top of each. 

For example, if you decide just to focus on health and money, you’ll write ‘health’ at the top of your first paper and ‘money’ at the top of your second paper. 

2. Consider potential goals

Next, divide each paper into two columns. The left column will be for ‘goals,’ and the right column will be for ‘action steps’ or ‘skills.’ 

Then, decide which goals you want to achieve for each category. Remember that ‘specific’, ‘measurable’, and ‘time-bound’ are positive aspects of SMART goals. That said, the ‘achievable’ and ‘realistic’ aspects of SMART goals can deter you from going after more audacious goals. 

Challenge yourself to leave your comfort zone with HARD goals. 

This doesn’t mean setting goals with no chance of success. But, setting goals with, let’s say, a 50/50 chance of success is difficult and ambitious enough to give you a real sense of accomplishment when you succeed.

For example, on your ‘health’ paper, let’s say you decide to write the following in the ‘goals’ column: 

• Be more active
• Increase nutrients 

Then, you might write the following in the ‘action steps’ or ‘skills’ column: 

• Eat raw and organic fruits and vegetables three times a day 
• Walk for two hours a day
• Take a daily multivitamin and add superfoods to morning smoothies 

Next, decide between long-term and short term goals:

Review your list of goals. Decide which are better suited for short-term goals and which are better suited for long-term goals. 

For example, you might decide that being a teacher in Peru is a long-term goal while researching places to live in Peru is a short-term goal. You might start outlining your short- and long-term goals with a 30-60-90 day plan . 

3. Determine your ‘why?’

What’s your big ‘why?’ Why do you want to be a Teaching English Foreign Language (TEFL) teacher in Peru? 

Write your reason down and hang it in a place where you’ll see it daily. 

For example, “I want to be a TEFL teacher in Peru, so I can learn Spanish, help students develop their English skills, and fulfill my dream of exploring South America.”

4. Identify annual goals and create monthly goals

First, establish annual goals that will help you reach your 5 year goals. 

For example, if one of your 5 year goals is to adopt a child, then your first annual goal will probably consist of setting interviews with adoption agencies.

Next, break down your annual goals into monthly goals. 

For example, if your annual goal is becoming a TEFL teacher in Peru, your monthly breakdown could look like this:

• Month 1: Research reputable TEFL programs and set online appointments with TEFL advisors to decide which program you like best
• Months 2-3: Take your TEFL course, study for exams, and write essays
• Month 4: Take your final TEFL exam and wait for your certificate 
• Months 5: Edit your resume and look for a short TEFL internship
• Month 6: Intern with a TEFL academy and ask for feedback from your mentors
• Month 7: Create a lesson plan portfolio and start looking for jobs
• Month 8: Set up job interviews 
• Month 9-10: Land a job from one of your interviews and buy your plane tickets
• Month 11: Move to Peru, find a furnished apartment, and get to know your neighborhood
• Month 12: Start work at your new job as a TEFL teacher 

5. Research how to reach your goals

Next, research the best ways to reach your goals. 

If you plan on moving to Peru, are there some YouTube channels you can check out with tips on how to move? If you plan on creating a start-up, can you meet with some start-up experts that can mentor you? If you plan on learning how to bake macarons, is there a French macaron cookbook you can buy?

6. Adjust and revisit as needed

Life is full of unexpected twists and turns. While the 5 year plan is designed to help you stay focused and persist despite bumps and detours, sometimes the unexpected is you.

As you start working on your goals, you may realize that your interests and passions don't quite align. This is where self-directed learning can help.

Plan for periodic review, reflection, and adjustment as part of life. If your long-range plan still feels right, zoom in to your monthly goals. Decide if your monthly goals are working or if you need to adjust them.

For example, you might find that trying to conduct online interviews with a Peruvian academy is impossible. So you could decide to fly out early to meet directors in person instead. 

You may also decide that creating weekly or even daily goals is essential to hitting your monthly goals.

Revisit and revise your plan as often as needed (at least once a year). You might be surprised at how fast you reach some goals while other goals might take a bit longer than expected.

Here's an example of a 5 year plan for a student interested in being a Certified Public Accountant (CPA):

Here’s a personal 5 year plan example for someone interested in becoming fluent in Spanish:

Creating a 5 year plan is one of the best ways to see your dreams come to life. 

At BetterUp, we love seeing individuals reach their fullest potential and achieve their dreams. Request a demo today to find out more.

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Five-year business plan: why you need one and how to write it

What is a five-year business plan, do you actually need a five-year business plan, who is a five-year business plan for, how to write a five-year business plan, five business plan tips from anthony rose, final thoughts, kaylin sullivan.

Many founders roll their eyes at the idea of forecasting the growth of their business for the next five years. However, having a clear plan that sets out your ambitious yet realistic growth targets can help get investors on board.

In this article, we’ll reveal why you need to write a five-year business plan with tips from Anthony Rose, SeedLegals’ CEO and serial entrepreneur.

A five-year business plan gives an overview of what a business does, what it intends to do and how it plans to do it.

It includes everything from vision statements to market research, strategic planning and financial forecasts. The five-year plan helps prospective investors get an idea of whether they feel a business has long term potential.

Founders and investors both know that a five-year business plan includes some artistic licence. You don’t know exactly how things are going to go. Things can take longer than you expect and the economic landscape can shift overnight.

However, there’s still plenty of value in a five-year business plan. If you get your numbers right, you can use the business plan to show investors why they should invest in you and how they could see a return on their time and money.

Your five-year plan is also necessary if you’re applying for SEIS/EIS Advance Assurance . HMRC needs to see a three or five-year business plan in your pitch deck so they can be confident that you actually plan to grow the business.

In the startup space, a five-year business plan is especially useful for founders and investors.

It helps founders strategise how their business is going to work and shows investors how they might get a return on their investment.

Founders can use the business plan to align on the direction of travel with other senior members of the team.

Investors see the five-year business plan as a measure of the market opportunity for the business. If the opportunity looks good, investors are more likely to want to get involved.

It’s a good idea to create two versions of your business plan: a detailed version and a compact general overview.

A detailed plan that covers all aspects of your business can help you gain clarity and refine your goals.

Once you’re clear on what you want to do, the general overview shows investors what your plans are in a digestible way.

What to include in your detailed five-year business plan

The purpose of your five-year plan is to explain the who, what, why and, most importantly, the how behind your company’s plans. The detailed version of your plan should include:

• A description of your business
• Long-term goals
• Short-term goals
• A SWOT analysis (strengths, weaknesses, opportunities and threats)
• A competitor analysis
• Details on who your customers are
• What your products and services are and their pricing
• Details on the management team you have and need
• A spreadsheet that details all your company’s financials
• A financial forecast including a line graph depicting growth in revenue
• Investment you require

Once you have that, you can condense it into a general overview.

What to include in your general overview

Creating a general overview helps you to convey the most important information about your business in a concise manner.

When dealing with investors, your time is limited. No investor wants to go through a 20-page business plan. They want to cut to the chase, and founders need to be prepared to accommodate them.

Based on feedback from founders who’ve been through funding rounds themselves, we recommend that you condense your detailed five-year plan into the following:

• A one-page executive summary
• A SWOT analysis
• A line graph showing your revenue growth forecast over 5 years
• A spreadsheet that breaks down all the financials behind that line graph including profit and loss, expenditure and revenue

Your pitch deck for investors should include the line graph, SWOT analysis and executive summary. HMRC will also want to see this info when you apply for SEIS/EIS.

In your pitch, you’ll need to describe your business and point out your business goals, but you don’t need to include all of the finer details from your in-depth business plan at this stage. The financials spreadsheet doesn’t need to be in your pitch deck. It’s only for later on when you meet with investors.

It’s worth having a look at some pitch deck examples for inspiration.

What to include in your line graph

The purpose of the graph is to depict your projected growth in revenue at a glance.

The number of years you show depends on your business’ initial growth rate. If it’s going to take a few years before you generate revenue because you have complex product development to do, you’ll want to forecast far enough into the future to show when the exponential growth happens.

The graph should include:

• Profit forecast over X number of years
• Loss forecast over X number of years

What to include in your financials spreadsheet

This is your opportunity to break down every financial detail behind what’s depicted in the line graph. Your spreadsheet should include:

• All your business costs
• Your revenue projections
• Market size
• Cost of acquiring customers

The more information the better. This is what you’re going to present to investors once they’ve expressed interest in your pitch.

What you present will be a significant factor in whether they invest in you or not. Here’s an idea of what your spreadsheet might look like.

Image source: Brixx

SeedLegals CEO Anthony Rose has been through a fair amount of funding rounds and seen hundreds of pitch decks himself. In the video below, he offers his insights on “The art of the five-year business plan”.

We’ve put Anthony’s thoughts from the video into a written breakdown below to help you digest the information. 

1. Show the potential for ROI

Showing your ambition goes beyond an inspiring vision statement. It’s about creating hype through numbers – the real, grounded kind of hype that makes investors feel excited and confident that the goals can be achieved.

A five-year business plan that’s going to close investments needs to show the founder’s ambitions to grow the business exponentially. The investor is going to want to see that making this investment is worth their while.

Many founders are satisfied with a modest approach. The fact that they can create a good, profitable business that will add value to its market and pay the salaries and bills that need to be paid is what makes them happy.

But an investor might see it as a “hobby business” if you’re not ambitious enough. Your five-year business plan needs to include financial projections that show a steady, exponential increase in your revenue (which means the same for their ROI).

An investor is going to want to see a massive return on investment. In five years they’re going to want to see a 10x or a 50x return on the investment to make it worthwhile, given the risks involved. Anthony Rose Co-founder & CEO, SeedLegals

2. Don’t overpromise

The key here is to get your five-year number just right. Your graph should show a steady increase in revenue, but not at an unachievable rate.

If you’re not delivering on the numbers you projected at the get-go, you’ll have unhappy investors and a lot of changes to make. You will most likely have trouble getting investors on board in the first place if you’re projecting growth at a statistically unlikely rate.

Seeing that founders can run the numbers is an important measure for investors. If the numbers aren’t connecting from one year to the next, or you appear to be losing money altogether, investors aren’t going to have a whole lot of faith in you running your business well.

3. Use the unicorn formula

Before we dive into the formula, it will help to know that a company is classified as a unicorn if it is valued at US$1 billion or more (around £800 million).

The unicorn formula is the growth pathway to becoming a unicorn company, and it goes like this: triple, triple, triple, double, double.

So what does that mean for your five-year business plan? It means that if you can create a graph projecting financial growth at a rate of tripling year-on-year revenue for three years and doubling it for two, you’re on a good, steady growth path towards becoming a unicorn.

At a rate of 10x revenue for your valuation, reaching that (roughly) £100 million in revenue after five years would classify your company as a unicorn.

Not every company intends to become a unicorn, however, so how does this apply if that’s you? Well, the golden nugget in this formula is the rate of growth it suggests. It’s ambitious and steady, which will appeal to investors. So even if you’re not aiming for a unicorn valuation, applying the formula to your financial forecasting will still be beneficial.

The line graph below depicts a hypothetical business’s revenue according to the unicorn formula rate. It’s the shape of the line that’s important here – this is the shape of a healthy growth rate.

4. Spreadsheet the numbers

We covered this in the section on how to write a five-year business plan, so make sure you read and re-read that section. In case you missed it, though, we’ll reiterate the point here.

The most important part of your meetings with investors is presenting a robust breakdown of your company’s financials. Make sure you keep an up-to-date spreadsheet that details current and future income and expenditure.

5. Be honest about where you are now

Be fully transparent about where your business’s revenue is now. Don’t allow for disparity between what is displayed in the graph on your pitch deck and the revenue your business is making today.

Make sure your financial forecasting is up-to-date and begins with where you stand currently. Make sure you update it regularly so you remain confident and transparent whenever you meet with investors.

The five-year business plan still has value. It will help with procuring investment and getting your SEIS/EIS Advance Assurance from HMRC.

The key takeaway is to get your financials just right. Show ambition, grow steadily and be transparent. First-hand advice from people who have been there and done that is extremely valuable, so turn to expert input for help.

At SeedLegals, we have a team of experts who can help you with all the nuances involved in starting and growing your business, so hit the chat button to get in touch. We’ll be happy to guide you and answer any questions.

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Free 5-year plan template to organize the planning process

As a business leader, you know the decisions you make today can shape the future of the company. If you want to control that trajectory, a 5-year plan template can be a useful tool. The right template helps you organize ideas, analyze data, and prioritize the goals you want to achieve — that way, you can create a framework that informs strategic decisions and guides your company toward its ultimate growth goals.

In this article, we’ll explore the parts of a 5-year plan template and discuss how to use it in your business. Then, we’ll dive into the ways you can integrate a 5-year plan into the monday.com Work OS to create a more efficient and powerful workflow.

Get the template

What is a 5-year plan template?

A 5-year plan template is a model document that helps you map out company goals and strategies for the next 5 years. Many templates contain a variety of common sections that you can edit to reflect the goals and needs of your business:

• Executive summary: Top-level overview of your objectives and strategies
• Business description:  Mission statement, description of your products and services, and an introduction to your management or leadership team
• Market analysis: Data about your industry and target audience, trends, opportunities, and competitors
• Financial information: Historical revenue, expense data, and financial projections
• Plans and objectives: Goes into detail about your short and long-term goals and sets company priorities, discusses the goals you want to achieve, and explains the strategies and methods you’ll use

The right structure for your 5-year plan template depends on your company’s specific goals. If you’re going after investors, for example, a traditional structure can help you meet expectations. If the plan is mostly for internal use, you can be more flexible and still reap the benefits of the template.

Why use a 5-year plan template?

A 5-year business plan provides a structure to help you think strategically about your company’s plans for the next few years. Use the preexisting headers to guide your discussions and spark new ideas; you can also add new sections to tailor the content to your business. When it’s time to write, the template helps you organize ideas and format them into a usable document that can provide a slew of benefits for your business.

Guide business decisions

A 5-year plan clarifies your company’s priorities, creating a set of strategic objectives that serves as a reference point when it’s time to make decisions or evaluate opportunities. If your priority is to build brand awareness among Gen Z customers, for example, you might jump at the chance to establish a presence on the hottest new social media platform. If you’re laser-focused on building the best management team in the industry, however, it would be easy to see that your resources are better spent elsewhere.

In addition to serving as a guidepost for major strategic initiatives, your 5-year plan can inform business decisions of all sizes. Look to it when you’re:

• Making a budget
• Assessing the organizational structure
• Designing a marketing plan
• Adding or removing products and services
• Writing business policies
• Setting up a technology infrastructure

Enable strategic hiring and training

A solid 5-year plan makes it easier to anticipate upcoming personnel needs, so you can make strategic hiring decisions. If you have limited resources, the plan can also help you figure out which tasks require a full-time employee and which ones you can outsource.

Are you thinking about training your existing employees? To determine the courses and topics with the highest ROI, compare the skills and abilities of your workforce against the practical needs outlined in the 5-year plan. This process highlights skill gaps and exposes the most urgent training opportunities.

Stay focused on goals

A lot can happen in 5 years — managers come and go, market conditions shift, and unexpected events can arise out of nowhere. In the midst of all that change, a well-written 5-year plan is a constant. It keeps your team focused on the same long-term goals, regardless of turnover. This unified approach can ensure that you’re always making progress in the right direction.

Prepare for challenges

Writing a 5-year plan requires you to analyze the business and the industry. As you dig into available data, you gain a deeper understanding of your customers, operations, competitors, and the market itself. With that knowledge, you’re better positioned to anticipate potential challenges and roadblocks. Awareness is everything; it helps you spot early warning signs, so you can start preparing the company to adjust short-term goals and adapt quickly.

Build confidence among investors

If you’re thinking about seeking investments to fund business expansion, a 5-year plan is essential. A thorough, well-written document reassures investors that you’ve done your due diligence and demonstrates that your company is positioned to make a profit. A template can help you examine and analyze each part of the business systematically to ensure the plan addresses investors’ top concerns.

When you’re ready to grow, a professional 5-year plan template can help you woo investors.

What are some examples of 5-year plan templates?

No two companies have identical 5-year plans; the template that works best for your organization depends on the age of the business, the nature of your goal, and how you’re planning to utilize the plan.

Startup plan

A 5-year plan creates a roadmap to follow as you establish a startup, build an audience, and stake out a place in the industry. This type of template often contains lengthy sections about marketing, sales, and product or service development; it also tends to be heavy on research and analysis.

Growth and expansion plan

When your company has been in business for a few years, you might start to think about expanding. A 5-year plan helps you approach growth strategically; it’s a good way to identify the best opportunities and find ways to minimize risk. These plans often analyze competitors and discuss the costs and benefits of different growth options.

One-page plan

Whether you’re growing a startup or expanding an established business, a traditional 5-year plan contains a high level of detail. The one-page business plan  version provides a quick overview — it highlights the most important points of each section. Instead of explaining your market research and explaining how they inform each goal, for example, you could note the key findings and include a prioritized list of goals.

5-year plan template on monday.com

Whether you’re creating a plan for an arts nonprofit or an engineering firm, the 5-Year Plan Template on monday.com can help you navigate the process. A color-coded header system enables you to organize and identify top-level sections. Within each one, you can add descriptions and build out a list of objectives, goals, manager profiles, financial projections, and other details.

The monday.com template adds an extra level of detail and functionality to your 5-year plan. For each item in a section, you can add a variety of columns that track the status of a project, identify relevant team members, designate a timeline, or set a budget. You can even add a column that links critical files to ensure easy access for all of your stakeholders. When you start working toward the goals in your plan, monday.com offers different Board Views , project management tools, and automations to streamline your workflow. Your template also integrates seamlessly with Work OS, an open platform that enables you to create and customize the tools you need to monitor and run your business.

A 5-year plan is just one of the documents you need to map out and execute a long-term business strategy. The template library at monday.com includes a variety of options to help manage your company’s growth and development.

Related templates on monday.com

We got a ton of really great task management templates, here are some of the best ones.

Marketing plan

If marketing plays a role in your 5-year plan, consider integrating the Marketing Plan Template  into your strategic planning sessions. With sections for different projects and columns that enable you to assign tasks and monitor progress, it can also serve as a project management tool.

Recruitment process

Manage the hiring goals in your 5-year plan with the help of the Recruitment Process Template . It tracks each applicant through the different stages of the process and enables you to track referral sources to inform your job-posting strategy. Status reports for interviews and hiring decisions ensure efficient communication between departments.

Frequently asked questions

What is a 5-year plan.

A 5-year plan is a document that outlines your company’s goals and strategies for the upcoming years. It also provides information to support the plan, such as a market analysis and financial projections.

What should I include in a 5-year plan?

When you’re writing a 5-year plan, include an executive summary, a description of the business, and an analysis of the market, company finances , competitors, and customers. Follow that up with a section that lays out the goals, objectives, and strategies your company will pursue over the next 5 years.

What are 5-year goals examples?

Examples of 5-year goals might include developing new products, expanding to a new location, or reaching new audience segments. You might also set internal goals, such as improving the company culture or building the most talented workforce in the industry.

Using the 5-year plan template for sustainable growth

As you navigate the strategic-planning process, a 5-year plan template can help organize your ideas and set thoughtful, research-backed goals. You’ll emerge with a document that guides business decisions and unites employees around a common purpose. With monday.com, you can incorporate the 5-year plan template into your Work OS to manage projects, set smaller goals, and track progress toward your high-level objectives.

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5 Year Business Plan

Where do you see your business five years from now? This is often the question that is asked when you want to assess how good your business is now and how well it will be in the next five years. It is a common question among companies and business owners, to see to it that their business or company will be a success within the allotted time. Looking from the outside in, it will look impossible without a plan. This is where a 5-year business plan comes to play. Check out the example templates of a 5-year business plan now.

10+ 5 Year Business Plan Examples

1. 5 year business plan template.

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2. 5 Year Business Plan and Budget

3. 5 Year Business Plan in PDF

Size: 26 MB

4. Vision for 5 Year Business Plan

Size: 167 KB

5. 5 Year Business Strategic Plan

Size: 449 KB

6. 5 Year Business Plan Overview and Progress

Size: 432 KB

7. Printable 5 Year Business Plan

Size: 405 KB

8. Draft 5 Year Business Plan

9. Standard 5 Year Business Plan

Size: 102 KB

10. General 5 Year Business Plan

11. 5 Year Strategic Business Plan

Size: 696 KB

What Is a 5-Year Business Plan?

A five-year business plan is a plan that focuses on the future of your business. This strategic action plan is catered to how you want your business to succeed more positively. In addition, a five-year business plan shows companies or businesses the better path or road to take to avoid any roadblocks or risks that could harm the growth of the company. In addition, the factors that make a five-year business plan a success is also how and what you add to it. Strategies that you will use for your business plan should suffice a five-year route.

How to Write a Five-Year Business Plan

To make an effective five-year business plan, it needs to have a complete set of strategies and important details that helps your business plan. A goal and an executive summary are the most common things in a business plan . Here are four simple steps to follow to make an effective five-year business plan.

Step 1: Create Your Executive Summary

A brief executive summary should be about the basics of your business. It includes the current status of your business. What to expect within the five-year time. In addition, the basic strategies you plan to make to reach the mark or your goal for the business plan.

Step 2: Add a SWOT Analysis

Strengths, Weaknesses, Opportunities, and Threats. Add  a SWOT analysis  to your business plan.  The SWOT analysis  gives you a better view of the strengths and opportunities you can grasp to make your business grow and the weaknesses and threats you can address.

Step 3: Include Strategies That Benefit Your Business Plan

Strategies must benefit your business plan and help make your business or the company grow. It is best to seek out solutions that will solve all roadblocks and help avoid any risks. In addition, avoid writing a single strategy , rather, have as much as three to five. As every strategy works differently in areas of your business.

Step 4: Get To Know Your Target Clients

To get the best out of your business plan, get to know your target clients for your company or your business. How you run your business or your company will also matter as to who your target clients are. This is the kind of marketing strategy you need to add and think about.

What is a business plan?

A business plan is a strategic action plan that caters to and focuses on the strategies made for a business. Business plans vary from the type of business or company you plan to set up, to the strategies you need to avoid risks and roadblocks. Companies and businesses use business plans to help them grow their business and to gain a fruitful outcome from it.

What are the types of business plans?

There are a lot of types of business plans. The ones listed below are just the common types of business plans that you should be interested in knowing.

• Vending machine business plan
• Event planning business plan
• Solid business plan
• Start-up business plan
• Clothing business plan

What are the elements of a business plan?

The elements of a business plan can range on the kind of business plan you will make. But the most common elements of a business plan are as follows:

• Executive summary
• Goals and objectives
• Vision and Mission statements

Where do you see your business within five years from now? Do you see a successful company that competes with the biggest brands in business or do you see yourself struggling to make it to the top? The answer to this question will depend on one thing. A business plan. To make sure that you end on a successful note, don’t forget to make a five-year business plan. Download any of the example templates you found above and follow the simple steps to creating your business plan.

Text prompt

• Instructive
• Professional

Create a study plan for final exams in high school

Develop a project timeline for a middle school science fair.

How to Develop a 5-Year Career Plan

by Mary McNevin, Ed. D.

Summary .   

Having a long-term plan for your career can help you reduce career-related stress, increase your perceived employability, and allow you to connect more deeply with your purpose. But how do you move beyond yearly career goals and create a five-year plan?

• Brainstorm. Start by thinking about how you want your career to develop and what you need to do to get there. This requires self-reflection. You’ll need to identify your primary goal, your passions, how your existing skills contribute to both those things, and your areas for improvement.
• Gather feedback. We’re not aways the best judges of our own capabilities and strengths. That’s why it can be important early in your planning process to gather feedback from your superiors, mentors, and peers. They may help you discover career opportunities you never considered for yourself, clue you into strengths you may be overlooking, and share insights regarding your areas for growth and development.
• Map it out. After doing some self-reflection and gathering feedback, it’s time to organize the information you’ve collected. Consider keeping track of your plan in PowerPoint. For example, slide 1 should outline the career goals you identified in your self-reflection. Slide 2 should list out the skills you already have and the ones you would need to achieve your ultimate career goals. Slide 3 should highlight the development activities you plan to pursue over the next five years to help you achieve your goals. And slide 4 should present all of the possible obstacles that might prevent you from achieving your goal and how to address those challenges.
• Iterate. Unlike year-long goal setting, the process of creating a five-year plan is never complete. One way to ensure you’re keeping your plan updated is to set a quarterly calendar reminder. This will help you address any new developments in your life or career and make changes where necessary.

“Where do you see yourself in five years?”

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• What is strategic planning? A 5-step gu ...

What is strategic planning? A 5-step guide

Strategic planning is a process through which business leaders map out their vision for their organization’s growth and how they’re going to get there. In this article, we'll guide you through the strategic planning process, including why it's important, the benefits and best practices, and five steps to get you from beginning to end.

Strategic planning is a process through which business leaders map out their vision for their organization’s growth and how they’re going to get there. The strategic planning process informs your organization’s decisions, growth, and goals.

Strategic planning helps you clearly define your company’s long-term objectives—and maps how your short-term goals and work will help you achieve them. This, in turn, gives you a clear sense of where your organization is going and allows you to ensure your teams are working on projects that make the most impact. Think of it this way—if your goals and objectives are your destination on a map, your strategic plan is your navigation system.

In this article, we walk you through the 5-step strategic planning process and show you how to get started developing your own strategic plan.

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What is strategic planning?

Strategic planning is a business process that helps you define and share the direction your company will take in the next three to five years. During the strategic planning process, stakeholders review and define the organization’s mission and goals, conduct competitive assessments, and identify company goals and objectives. The product of the planning cycle is a strategic plan, which is shared throughout the company.

What is a strategic plan?

A strategic plan is the end result of the strategic planning process. At its most basic, it’s a tool used to define your organization’s goals and what actions you’ll take to achieve them.

Typically, your strategic plan should include: 

Your company’s mission statement

Your organizational goals, including your long-term goals and short-term, yearly objectives

Any plan of action, tactics, or approaches you plan to take to meet those goals

What are the benefits of strategic planning?

Strategic planning can help with goal setting and decision-making by allowing you to map out how your company will move toward your organization’s vision and mission statements in the next three to five years. Let’s circle back to our map metaphor. If you think of your company trajectory as a line on a map, a strategic plan can help you better quantify how you’ll get from point A (where you are now) to point B (where you want to be in a few years).

When you create and share a clear strategic plan with your team, you can:

Build a strong organizational culture by clearly defining and aligning on your organization’s mission, vision, and goals.

Align everyone around a shared purpose and ensure all departments and teams are working toward a common objective.

Proactively set objectives to help you get where you want to go and achieve desired outcomes.

Promote a long-term vision for your company rather than focusing primarily on short-term gains.

Ensure resources are allocated around the most high-impact priorities.

Define long-term goals and set shorter-term goals to support them.

Assess your current situation and identify any opportunities—or threats—allowing your organization to mitigate potential risks.

Create a proactive business culture that enables your organization to respond more swiftly to emerging market changes and opportunities.

What are the 5 steps in strategic planning?

The strategic planning process involves a structured methodology that guides the organization from vision to implementation. The strategic planning process starts with assembling a small, dedicated team of key strategic planners—typically five to 10 members—who will form the strategic planning, or management, committee. This team is responsible for gathering crucial information, guiding the development of the plan, and overseeing strategy execution.

Once you’ve established your management committee, you can get to work on the planning process. 

Step 1: Assess your current business strategy and business environment

Before you can define where you’re going, you first need to define where you are. Understanding the external environment, including market trends and competitive landscape, is crucial in the initial assessment phase of strategic planning.

To do this, your management committee should collect a variety of information from additional stakeholders, like employees and customers. In particular, plan to gather:

Relevant industry and market data to inform any market opportunities, as well as any potential upcoming threats in the near future.

Customer insights to understand what your customers want from your company—like product improvements or additional services.

Employee feedback that needs to be addressed—whether about the product, business practices, or the day-to-day company culture.

Consider different types of strategic planning tools and analytical techniques to gather this information, such as:

A balanced scorecard to help you evaluate four major elements of a business: learning and growth, business processes, customer satisfaction, and financial performance.

A SWOT analysis to help you assess both current and future potential for the business (you’ll return to this analysis periodically during the strategic planning process). 

To fill out each letter in the SWOT acronym, your management committee will answer a series of questions:

What does your organization currently do well?

What separates you from your competitors?

What are your most valuable internal resources?

What tangible assets do you have?

What is your biggest strength? 

Weaknesses:

What does your organization do poorly?

What do you currently lack (whether that’s a product, resource, or process)?

What do your competitors do better than you?

What, if any, limitations are holding your organization back?

What processes or products need improvement? 

Opportunities:

What opportunities does your organization have?

How can you leverage your unique company strengths?

Are there any trends that you can take advantage of?

How can you capitalize on marketing or press opportunities?

Is there an emerging need for your product or service? 

What emerging competitors should you keep an eye on?

Are there any weaknesses that expose your organization to risk?

Have you or could you experience negative press that could reduce market share?

Is there a chance of changing customer attitudes towards your company? 

Step 2: Identify your company’s goals and objectives

To begin strategy development, take into account your current position, which is where you are now. Then, draw inspiration from your vision, mission, and current position to identify and define your goals—these are your final destination. 

To develop your strategy, you’re essentially pulling out your compass and asking, “Where are we going next?” “What’s the ideal future state of this company?” This can help you figure out which path you need to take to get there.

During this phase of the planning process, take inspiration from important company documents, such as:

Your mission statement, to understand how you can continue moving towards your organization’s core purpose.

Your vision statement, to clarify how your strategic plan fits into your long-term vision.

Your company values, to guide you towards what matters most towards your company.

Your competitive advantages, to understand what unique benefit you offer to the market.

Your long-term goals, to track where you want to be in five or 10 years.

Your financial forecast and projection, to understand where you expect your financials to be in the next three years, what your expected cash flow is, and what new opportunities you will likely be able to invest in.

Step 3: Develop your strategic plan and determine performance metrics

Now that you understand where you are and where you want to go, it’s time to put pen to paper. Take your current business position and strategy into account, as well as your organization’s goals and objectives, and build out a strategic plan for the next three to five years. Keep in mind that even though you’re creating a long-term plan, parts of your plan should be created or revisited as the quarters and years go on.

As you build your strategic plan, you should define:

Company priorities for the next three to five years, based on your SWOT analysis and strategy.

Yearly objectives for the first year. You don’t need to define your objectives for every year of the strategic plan. As the years go on, create new yearly objectives that connect back to your overall strategic goals . 

Related key results and KPIs. Some of these should be set by the management committee, and some should be set by specific teams that are closer to the work. Make sure your key results and KPIs are measurable and actionable. These KPIs will help you track progress and ensure you’re moving in the right direction.

Budget for the next year or few years. This should be based on your financial forecast as well as your direction. Do you need to spend aggressively to develop your product? Build your team? Make a dent with marketing? Clarify your most important initiatives and how you’ll budget for those.

A high-level project roadmap . A project roadmap is a tool in project management that helps you visualize the timeline of a complex initiative, but you can also create a very high-level project roadmap for your strategic plan. Outline what you expect to be working on in certain quarters or years to make the plan more actionable and understandable.

Step 4: Implement and share your plan

Now it’s time to put your plan into action. Strategy implementation involves clear communication across your entire organization to make sure everyone knows their responsibilities and how to measure the plan’s success. 

Make sure your team (especially senior leadership) has access to the strategic plan, so they can understand how their work contributes to company priorities and the overall strategy map. We recommend sharing your plan in the same tool you use to manage and track work, so you can more easily connect high-level objectives to daily work. If you don’t already, consider using a work management platform .  

A few tips to make sure your plan will be executed without a hitch: 

Communicate clearly to your entire organization throughout the implementation process, to ensure all team members understand the strategic plan and how to implement it effectively. 

Define what “success” looks like by mapping your strategic plan to key performance indicators.

Ensure that the actions outlined in the strategic plan are integrated into the daily operations of the organization, so that every team member's daily activities are aligned with the broader strategic objectives.

Utilize tools and software—like a work management platform—that can aid in implementing and tracking the progress of your plan.

Regularly monitor and share the progress of the strategic plan with the entire organization, to keep everyone informed and reinforce the importance of the plan.

Establish regular check-ins to monitor the progress of your strategic plan and make adjustments as needed. 

Step 5: Revise and restructure as needed

Once you’ve created and implemented your new strategic framework, the final step of the planning process is to monitor and manage your plan.

Remember, your strategic plan isn’t set in stone. You’ll need to revisit and update the plan if your company changes directions or makes new investments. As new market opportunities and threats come up, you’ll likely want to tweak your strategic plan. Make sure to review your plan regularly—meaning quarterly and annually—to ensure it’s still aligned with your organization’s vision and goals.

Keep in mind that your plan won’t last forever, even if you do update it frequently. A successful strategic plan evolves with your company’s long-term goals. When you’ve achieved most of your strategic goals, or if your strategy has evolved significantly since you first made your plan, it might be time to create a new one.

Build a smarter strategic plan with a work management platform

To turn your company strategy into a plan—and ultimately, impact—make sure you’re proactively connecting company objectives to daily work. When you can clarify this connection, you’re giving your team members the context they need to get their best work done. 

A work management platform plays a pivotal role in this process. It acts as a central hub for your strategic plan, ensuring that every task and project is directly tied to your broader company goals. This alignment is crucial for visibility and coordination, allowing team members to see how their individual efforts contribute to the company’s success. 

By leveraging such a platform, you not only streamline workflow and enhance team productivity but also align every action with your strategic objectives—allowing teams to drive greater impact and helping your company move toward goals more effectively. 

Strategic planning FAQs

Still have questions about strategic planning? We have answers.

Why do I need a strategic plan?

A strategic plan is one of many tools you can use to plan and hit your goals. It helps map out strategic objectives and growth metrics that will help your company be successful.

When should I create a strategic plan?

You should aim to create a strategic plan every three to five years, depending on your organization’s growth speed.

Since the point of a strategic plan is to map out your long-term goals and how you’ll get there, you should create a strategic plan when you’ve met most or all of them. You should also create a strategic plan any time you’re going to make a large pivot in your organization’s mission or enter new markets. 

What is a strategic planning template?

A strategic planning template is a tool organizations can use to map out their strategic plan and track progress. Typically, a strategic planning template houses all the components needed to build out a strategic plan, including your company’s vision and mission statements, information from any competitive analyses or SWOT assessments, and relevant KPIs.

What’s the difference between a strategic plan vs. business plan?

A business plan can help you document your strategy as you’re getting started so every team member is on the same page about your core business priorities and goals. This tool can help you document and share your strategy with key investors or stakeholders as you get your business up and running.

You should create a business plan when you’re: 

Just starting your business

Significantly restructuring your business

If your business is already established, you should create a strategic plan instead of a business plan. Even if you’re working at a relatively young company, your strategic plan can build on your business plan to help you move in the right direction. During the strategic planning process, you’ll draw from a lot of the fundamental business elements you built early on to establish your strategy for the next three to five years.

What’s the difference between a strategic plan vs. mission and vision statements?

Your strategic plan, mission statement, and vision statements are all closely connected. In fact, during the strategic planning process, you will take inspiration from your mission and vision statements in order to build out your strategic plan.

Simply put: 

A mission statement summarizes your company’s purpose.

A vision statement broadly explains how you’ll reach your company’s purpose.

A strategic plan pulls in inspiration from your mission and vision statements and outlines what actions you’re going to take to move in the right direction. 

For example, if your company produces pet safety equipment, here’s how your mission statement, vision statement, and strategic plan might shake out:

Mission statement: “To ensure the safety of the world’s animals.” 

Vision statement: “To create pet safety and tracking products that are effortless to use.” 

Your strategic plan would outline the steps you’re going to take in the next few years to bring your company closer to your mission and vision. For example, you develop a new pet tracking smart collar or improve the microchipping experience for pet owners. 

What’s the difference between a strategic plan vs. company objectives?

Company objectives are broad goals. You should set these on a yearly or quarterly basis (if your organization moves quickly). These objectives give your team a clear sense of what you intend to accomplish for a set period of time. 

Your strategic plan is more forward-thinking than your company goals, and it should cover more than one year of work. Think of it this way: your company objectives will move the needle towards your overall strategy—but your strategic plan should be bigger than company objectives because it spans multiple years.

What’s the difference between a strategic plan vs. a business case?

A business case is a document to help you pitch a significant investment or initiative for your company. When you create a business case, you’re outlining why this investment is a good idea, and how this large-scale project will positively impact the business. 

You might end up building business cases for things on your strategic plan’s roadmap—but your strategic plan should be bigger than that. This tool should encompass multiple years of your roadmap, across your entire company—not just one initiative.

What’s the difference between a strategic plan vs. a project plan?

A strategic plan is a company-wide, multi-year plan of what you want to accomplish in the next three to five years and how you plan to accomplish that. A project plan, on the other hand, outlines how you’re going to accomplish a specific project. This project could be one of many initiatives that contribute to a specific company objective which, in turn, is one of many objectives that contribute to your strategic plan. 

What’s the difference between strategic management vs. strategic planning?

A strategic plan is a tool to define where your organization wants to go and what actions you need to take to achieve those goals. Strategic planning is the process of creating a plan in order to hit your strategic objectives.

Strategic management includes the strategic planning process, but also goes beyond it. In addition to planning how you will achieve your big-picture goals, strategic management also helps you organize your resources and figure out the best action plans for success. 

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How Asana streamlines strategic planning with work management

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Kamala Harris Tax Plan Ideas: Details and Analysis

Topline preliminary estimates.

• 10-Year Revenue (Billions) +$1,697
• Long-run GDP -2.0%
• Long-Run Wages -1.2%
• Long-Run FTE Jobs -786,000

Tax Foundation General Equilibrium Model, September 2024.

With less than two months left in the 2024 presidential campaign, Vice President Kamala Harris has sketched out sufficient details of her fiscal and economic agenda for us to provide a preliminary analysis of the budgetary, economic, and distributional effects. On tax A tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. policy, Harris carries forward much of President Biden’s FY 2025 budget, including higher taxes aimed at businesses and high earners. She would also further expand the child tax credit A tax credit is a provision that reduces a taxpayer’s final tax bill, dollar-for-dollar. A tax credit differs from deductions and exemptions, which reduce taxable income, rather than the taxpayer’s tax bill directly. (CTC) and various other tax credits and incentives while exempting tips from income tax.

On a gross basis, we estimate that Vice President Harris’s proposals would increase taxes by about $4.1 trillion from 2025 to 2034. After taking various credits and tax cuts into account, Harris would raise about $1.7 trillion over 10 years on a conventional basis, and after factoring in reduced revenue from slower economic growth, the net revenue increase comes to $642 billion. We estimate the proposed tax changes would reduce long-run GDP by 2.0 percent, the capital stock by 3.0 percent, wages by 1.2 percent, and employment by about 786,000 full-time equivalent jobs.

We find the tax policies would raise top tax rates on corporate and individual income to among the highest in the developed world, slowing economic growth and reducing competitiveness. The tax credits and other carveouts would complicate the tax code, run more spending through the IRS, and, together with various price controls, fail to improve affordability challenges in housing and other sectors.

Many tax policies remain unspecified, including how Harris might deal with next year’s expiration of the Tax Cuts and Jobs Act (TCJA). Harris has not clearly indicated if or how her spending priorities align with the FY 2025 budget proposals. Depending on where she lands on these issues, the deficit impacts could be large.

In a possible scenario in which she extends the TCJA for all those earning under $400,000 and adopts all the spending proposals specified in the FY 2025 budget, we estimate the net effect of her policies would increase deficits by $1.5 trillion over the next decade, measured on a conventional basis. Including the economic impacts of the tax increases, the net effect could increase deficits by roughly $2.6 trillion over the next decade.

The wide range of possibilities reflects considerable uncertainty about her fiscal policy stance at this point, leaving a large void regarding how she might deal with the already unprecedented , dangerous, and unsustainable federal debt trajectory.

Detailed Harris Tax Proposals

Harris’s tax plan relies on higher taxes on businesses and high earners to raise new revenues as outlined in President Biden’s FY 2025 budget with some revisions (to capital gains taxes, as noted), combined with several tax credits. All provisions are modeled as starting in calendar year 2025 unless otherwise noted.

Major business provisions modeled:

• Increase the corporate income tax A corporate income tax (CIT) is levied by federal and state governments on business profits. Many companies are not subject to the CIT because they are taxed as pass-through businesses , with income reportable under the individual income tax . rate from 21 percent to 28 percent
• Increase the corporate alternative minimum tax introduced in the Inflation Inflation is when the general price of goods and services increases across the economy, reducing the purchasing power of a currency and the value of certain assets. The same paycheck covers less goods, services, and bills. It is sometimes referred to as a “ hidden tax ,” as it leaves taxpayers less well-off due to higher costs and “bracket creep,” while increasing the government’s spending power. Reduction Act from 15 percent to 21 percent
• Quadruple the stock buyback tax implemented in the Inflation Reduction Act from 1 percent to 4 percent
• Make permanent the excess business loss limitation for pass-through businesses
• Further limit the deductibility of employee compensation under Section 162(m)
• Increase the global intangible low-taxed income (GILTI) tax rate from 10.5 percent to 21 percent, calculate the tax on a jurisdiction-by-jurisdiction basis, and revise related rules
• Repeal the reduced tax rate on foreign-derived intangible income (FDII)

Major individual, capital gains, and estate tax An estate tax is imposed on the net value of an individual’s taxable estate, after any exclusions or credits , at the time of death. The tax is paid by the estate itself before assets are distributed to heirs. provisions modeled:

• Expand the base of the net investment income tax (NIIT) to include nonpassive business income and increase the rates for the NIIT and the additional Medicare tax to reach 5 percent on income above $400,000
• Increase top individual income tax An individual income tax (or personal income tax) is levied on the wages, salaries, investments, or other forms of income an individual or household earns. The U.S. imposes a progressive income tax where rates increase with income. The Federal Income Tax was established in 1913 with the ratification of the 16th Amendment . Though barely 100 years old, individual income taxes are the largest source of tax revenue in the U.S. rate to 39.6 percent on income above $400,000 for single filers and $450,000 for joint filers
• Tax long-term capital gains and qualified dividends at 28 percent (as opposed to 39.6 percent as in the Biden budget) for taxable income Taxable income is the amount of income subject to tax , after deductions and exemptions . For both individuals and corporations, taxable income differs from—and is less than—gross income. above $1 million and tax unrealized capital gains at death above a $5 million exemption ($10 million for joint filers)
• Limit retirement account contributions for high-income taxpayers with large individual retirement account (IRA) balances
• Tighten rules related to the estate tax
• Tax carried interest as ordinary income for people earning more than $400,000
• Limit 1031 like-kind exchanges to $500,000 in gains
• Exempt tipped income from income taxation for occupations where tips are currently customary
• Expand the Section 195 deduction limit for startup expenses from $5,000 to $50,000.

Major tax credit provisions modeled:

• Revive and make permanent the American Rescue Plan Act (ARPA) child tax credit (CTC) and increase the CTC for newborns to $6,000 in the first year of life
• Permanently extend the ARPA earned income tax credit (EITC) expansion for workers without qualifying children
• Provide a $25,000 tax credit for first-time homebuyers over four years

We also modeled various miscellaneous provisions for corporations, pass-through businesses, and individuals, including several energy-related tax hikes largely pertaining to fossil fuel production. While the Biden budget improperly characterized fossil fuel provisions as subsidies, many are deductions for costs (or approximations of costs) incurred.

Major provisions not modeled by us, but included in total fiscal impacts based on Biden administration estimates:

• Repeal the base erosion and anti-abuse tax (BEAT) and replace it with an undertaxed profits rule (UTPR) consistent with the Organisation for Economic Co-operation and Development (OECD)/G20 global minimum tax model rules
• Replace FDII with unspecified research and development (R&D) incentives
• Create a 25 percent “billionaire minimum tax” to tax unrealized capital gains of high-net-worth taxpayers
• Permanently extend the ARPA premium tax credits (PTCs) expansion (we do include PTCs in our distributional analysis)
• Changes to tax compliance and administration

Long-Run Economic Effects of Vice President Harris’s Tax Proposals

We estimate the tax changes in Harris’s tax proposals would reduce long-run GDP by 2.0 percent, the capital stock by 3.0 percent, wages by 1.2 percent, and employment by about 786,000 full-time equivalent jobs. Harris’s tax proposals would decrease American incomes (as measured by gross national product, or GNP) by 1.8 percent in the long run, reflecting offsetting effects of increased taxes and reduced deficits, as debt reduction reduces interest payments to foreign owners of the national debt.

Raising the corporate income tax rate to 28 percent is the largest driver of the negative effects, reducing long-run GDP by 0.6 percent, the capital stock by 1.1 percent, wages by 0.5 percent, and full-time equivalent jobs by 125,000.

Our economic estimates likely understate the effects of the Harris tax plan since they exclude two novel and highly uncertain yet large tax increases on high earners and multinational corporations, namely a new minimum tax on unrealized capital gains and a UTPR consistent with the OECD/G20 global minimum tax model rules. Nor do we include the proposed unspecified R&D incentives that would replace the lower tax rate on foreign-derived intangible income FDII.

Revenue and Debt Effects of Vice President Harris’s Tax Proposals

Across the major provisions modeled by Tax Foundation, we estimate that Harris’s tax plan would raise $2.2 trillion of tax revenue from corporations and $1.2 trillion from individuals from 2025 through 2034.

For tax proposals from the Biden FY 2025 budget, we relied on estimates from the White House Office of Management and Budget (OMB) for provisions we did not model, including the billionaire minimum tax, UTPR, various international tax changes for oil and gas companies, smaller international tax changes, improvements to tax compliance and administration, and unspecified R&D incentives to replace FDII.

In total, accounting for all provisions, we estimate the budget would raise just over $4.1 trillion in gross revenue from tax changes over the 10-year budget window.

Tax cuts, like the tax exemption A tax exemption excludes certain income, revenue, or even taxpayers from tax altogether. For example, nonprofits that fulfill certain requirements are granted tax-exempt status by the Internal Revenue Service ( IRS ), preventing them from having to pay income tax. for tip income, the expanded deduction for startup expenses, and the unspecified incentive to replace FDII, reduce gross revenue by $235 billion, while expanded tax credits reduce the revenue by another $2.2 trillion. This results in a net tax increase of about $1.7 trillion over 10 years on a conventional basis.

On a dynamic basis, factoring in reduced tax revenues resulting from the smaller economy, we estimate Harris’s tax plan would raise about $642 billion over 10 years.

The economic harm from Harris’s tax hikes would also greatly reduce the ability to address an emerging debt crisis. Under current law, the debt-to-GDP ratio will hit 201 percent in 40 years, while the Harris tax plan on a conventional basis would reduce the debt-to-GDP ratio to 189 percent. However, after factoring in reduced tax collections and a smaller economy, the debt-to-GDP ratio would decline only slightly, to 200 percent.

Adding more uncertainty and potentially increasing deficits substantially, Harris may extend the TCJA for people making under $400,000, as the FY 2025 budget mentions but does not formally include in the budget accounting. Harris could accomplish TCJA extension in many ways, but all possibilities would likely have a high fiscal cost, given that about 98 percent of taxpayers earn less than $400,000.

For instance, the Committee for a Responsible Federal Budget has estimated the cost of TCJA permanence for people earning less than $400,000 could range from about $1.5 trillion to $2.5 trillion over 10 years.

Nor has Vice President Harris specifically outlined her proposed changes to federal spending. While we do not assume a specific spending plan as part of our formal score, Harris has proposed investing in affordable childcare and long-term care programs , among other unspecified spending proposals, which would reduce net revenue collection further.

To tally up the range of potential deficit impacts from Harris’s proposals, we include as a proxy for potential spending the net change in spending under the FY 2025 budget of $1.18 trillion covering childcare and early learning, health care, drug pricing, education, and housing; paid leave and home care; public health; and some additional savings from other reductions in discretionary spending (note that we only include the spending changes over the 10-year budget window).

Assuming $1.18 trillion of additional spending and a $2 trillion revenue loss for TCJA extension, Harris’s combined fiscal policies could add as much as $1.5 trillion to deficits over the next decade on a conventional basis.

Under this scenario, and after accounting for the economic effects of the tax increases, we estimate deficits could increase by roughly $2.6 trillion over the next decade on a dynamic basis.

Alternatively, Harris could specify additional tax increases to offset the cost of TCJA extension, which would have additional negative impacts on the economy, or Harris could simply allow the TCJA to expire. Harris could also abandon part or all of the FY 2025 spending proposals.

Distributional Effects of Vice President Harris’s Tax Proposals

Vice President Harris’s tax plan would raise marginal income tax rates faced by higher earners and corporations while expanding tax credits for lower-income households, resulting in substantially increased redistribution of income through the tax code. Our modeling of the distributional effects on after-tax income After-tax income is the net amount of income available to invest, save, or consume after federal, state, and withholding taxes have been applied—your disposable income. Companies and, to a lesser extent, individuals, make economic decisions in light of how they can best maximize their earnings. only includes specified tax proposals and does not include the impact of drug pricing provisions, the 25 percent billionaire minimum tax, the undertaxed profits rule, miscellaneous tax credits, IRS enforcement, or spending program changes.

The Harris tax plan would redistribute income from high earners to low earners. The bottom 60 percent of earners would see increases in after-tax income in 2025, while the top 40 percent of earners would see decreases. After-tax income for the bottom quintile would increase by 16.5 percent, largely from expanded tax credits. In contrast, the top 1 percent of earners would experience a 9.5 percent decrease in after-tax income.

The bottom quintile would see a slightly smaller 13.6 percent increase in after-tax income in 2034 on a conventional basis, while the top two quintiles would see decreases in their after-tax incomes. The top 1 percent would see a 7.3 percent decrease in after-tax income.

On a long-term dynamic basis, the smaller economy would reduce after-tax incomes relative to the conventional analysis. On average, tax filers in the top three quintiles would experience a drop in after-tax incomes, while the bottom quintile would still see an increase, albeit reduced to 11.8 percent, driven by the permanent changes to the CTC, EITC, and PTC.

Analysis of Harris’s Tax Credit and Tax Cut Proposals

Like the Biden administration, Harris’s tax plan puts a heavy emphasis on tax credits. Harris would restore the CTC expansion under the 2021 American Rescue Plan Act, which increased the credit from $2,000 under current law to $3,000 for older children and $3,600 for younger children for 2021 only. She would further increase the credit amount for newborns to $6,000, resulting in a CTC that provides $6,000 for children under one year old, $3,600 for children two through five, and $3,000 for children six and older. The ARPA expansion also removed work and income requirements to claim the credit, providing the maximum credit to qualifying individuals regardless of whether they had earned income, thus much of the expansion is technically spending administered by the IRS.

Tax Foundation estimates Harris’ CTC expansion would cost about $1.6 trillion over 10 years on a conventional basis. The expansion would shrink long-run economic output by about 0.1 percent by removing the credit’s phase-in and lengthening the credit’s phaseout, thus raising marginal tax rates for workers along both ranges. The smaller economy would result in further revenue losses for the federal government, increasing the fiscal cost to $1.7 trillion over the next decade.

Harris would extend or make permanent the expansion of health insurance PTC subsidies enacted under ARPA, which are set to expire at the end of 2025, and expand the EITC for single and joint filers who do not claim children on their tax returns. Over 10 years, permanence for the PTCs would cost about $238 billion, and the EITC expansion about $160 billion.

Harris also proposes several new housing tax incentives and penalties. For housing construction, she would expand the low-income housing tax credit (a similar proposal in the FY 2025 budget would cost $37 billion over a decade) and create a tax credit for the construction of starter homes. However, Harris would limit deductions for interest and depreciation Depreciation is a measurement of the “useful life” of a business asset, such as machinery or a factory, to determine the multiyear period over which the cost of that asset can be deducted from taxable income . Instead of allowing businesses to deduct the cost of investments immediately (i.e., full expensing ), depreciation requires deductions to be taken over time, reducing their value and discouraging investment. for large property investors.

Expanding a proposal in the FY 2025 budget, the Harris campaign proposes providing an average of $25,000 for all eligible first-time homebuyers, with additional support for first-generation homebuyers. Depending on how the subsidy is structured and limited, the fiscal cost would be about $100 billion over four years, based on the plan’s aim of reaching 4 million first-time homebuyers. Other housing credits and related subsidies specified in the FY 2025 budget would cost approximately another $100 billion over the next decade.

While the details are unclear, Harris has announced she would end taxes on tips for service and hospitality workers and work with Congress to establish guardrails on the policy. The exemption itself, and any safeguards added, would add to the complexity of the tax code overall while failing to benefit many low-income earners, given the small share of the population working in tipped occupations. We estimate that an exemption could cost around $118 billion over the 10-year budget window on a conventional basis.

Harris has proposed expanding the Section 195 deduction for business startup costs from its current level of $5,000 to $50,000. Based on past revenue estimates of similar proposals from the Joint Committee on Taxation, we estimate the change would reduce revenue by about $24.5 billion over the 10-year budget window on a conventional basis. The economic impacts are uncertain but small given the revenue impact; to the extent the policy allows more businesses to recover costs, it will boost business investment and potentially economic dynamism.

Subsidies and Price Controls Likely to Backfire

Many, but not all, of Harris’s housing policy proposals flow through the tax code. In terms of non-fiscal policy levers, the Harris plan includes regulatory streamlining to make construction easier, a crackdown on certain pricing tools in rental property management, and a new fund for public housing.

Harris’s reliance on subsidies for supply-constrained housing would be economically harmful for families, as it would boost demand and lead to higher housing prices. While some of her policies do target supply, like the expanded low-income housing tax credit and the credit for starter homes, these boutique tax breaks have not been effective historically .

Subsidies for different niches of the housing market are a poor substitute for better tax treatment of housing investment broadly. Multifamily housing construction still has not recovered to 1986 levels, as the Tax Reform Act of 1986 reduced the deductibility of investment.

Instead of reversing that poor tax treatment, the Harris package would further penalize rental housing construction by peeling back depreciation and interest deductions for certain large property investors, reducing investment incentives. These penalties would be in addition to a Biden-Harris administration proposal aimed at capping rent increases by disallowing certain deductions for depreciation.

Harris would deploy economically ruinous price controls in several other ways. Harris would cap the cost of insulin at $35 and out-of-pocket expenses for prescription drugs at $2,000 for all households, accelerate the speed of Medicare negotiations for prescription drug prices as part of the Inflation Reduction Act, and ban certain price increases for food and groceries.

Price controls harm consumers by reducing incentives to produce price-controlled goods. For example, the price controls on prescription drugs are likely deterring new drug development, resulting in up to 135 fewer drugs brought to market through 2039. Harris’s proposed price controls for groceries poorly address a problem that does not exist, as grocery profit margins are much lower than average across industries.

Top Tax Rates Would Be among the Highest in the Developed World

Harris’s subsidies would largely be funded by raising top tax rates on corporate and individual income to levels far above international norms.

The current top combined corporate tax rate—including the average of state rates—is 25.6 percent. Harris would increase it to 32.2 percent, the second-highest corporate tax rate in the OECD (behind Colombia ’s 35 percent).

The current top combined personal tax rate is 42.5 percent, consisting of the top federal rate (37 percent) and the average of state and local rates. This is about equal to the OECD average. Under Harris, the top combined rate would rise to 45.1 percent before accounting for the proposed 5 percent additional Medicare tax, half of which falls on the employer. Including the employee-side portion would raise the top rate to 47.6 percent.

The current top combined capital gains tax A capital gains tax is levied on the profit made from selling an asset and is often in addition to corporate income taxes, frequently resulting in double taxation. These taxes create a bias against saving, leading to a lower level of national income by encouraging present consumption over investment. rate is 29.1 percent, consisting of the 20 percent capital gains tax rate, the 3.8 percent NIIT, and the average of state and local income tax rates on capital gains. By taxing high earners’ capital gains at 28 percent and raising the NIIT to 5 percent, Harris’s proposals would raise the top tax rate on capital gains to 38.3 percent—the second highest in the OECD (behind Denmark ’s 42 percent). Similarly, under Harris’s proposals, the top tax rate on dividends would be nearly the highest in the OECD.

The combined integrated rate on corporate income reflects the two layers of tax corporate income faces: first at the entity level through corporate taxes and again at the shareholder level through capital gains and dividends taxes. Currently, the top combined integrated tax rate on corporate income distributed as capital gains is 47.2 percent. Under Harris’s proposals, it would rise to 58.1 percent—the highest in the OECD.

By placing a higher burden on work, saving, and investment, the Harris tax plan would reduce competitiveness and weaken key drivers of US economic growth, shrinking GDP by about 2.0 percent over the long run.

Where Do the Candidates Stand on Taxes?

Tax policy has become a significant focus of the US 2024 presidential election.

Modeling Notes

We use the Tax Foundation General Equilibrium Tax Model to estimate the impact of tax policies, including recent updates allowing detailed modeling of US multinational enterprises . The model produces conventional and dynamic revenue and distributional estimates of tax policy. Conventional estimates hold the size of the economy constant and attempt to estimate potential behavioral effects of tax policy. Dynamic revenue estimates consider both behavioral and macroeconomic effects of tax policy on revenue. The model also produces estimates of how policies impact measures of economic performance such as GDP, GNP, wages, employment, capital stock, investment, consumption, saving, and the trade deficit.

Note, however, that our conventional and dynamic estimates for the stock buyback tax do not account for behavioral shifting from buybacks to dividends, which would also shift the individual income tax base The tax base is the total amount of income, property, assets, consumption, transactions, or other economic activity subject to taxation by a tax authority. A narrow tax base is non-neutral and inefficient. A broad tax base reduces tax administration costs and allows more revenue to be raised at lower rates. from capital gains to dividends.

Regarding Vice President Harris’s proposed changes to the GILTI regime, we modeled most of the major changes, including the 75 percent GILTI inclusion rate, country-by-country application, the reduction in the foreign tax credit (FTC) haircut to 5 percent, elimination of the qualified business asset investment (QBAI) exemption, and elimination of the foreign oil and gas extraction income (FOGEI) exclusion. We did not model the changes allowing carryforward of GILTI foreign tax credits (FTCs) and losses, repeal of the high-tax exemption for subpart F, or the tax increases on dual capacity taxpayers.

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Debate Fact Check: Harris and Trump on the Economy, Immigration and Abortion

The 2024 presidential candidates clashed on their records and their visions for the country’s future in a high-stakes debate.

By The New York Times

• Share full article

Luke Broadwater

“I had nothing to do” with Jan. 6

— Former President Donald J. Trump

Trump and his allies spread lies for months about vast fraud that they falsely claimed stole the 2020 election from him. His supporters then organized a large rally near the White House designed to pressure Congress to overturn his loss. Trump encouraged the crowd to attend, promising it would be “wild.” He urged his supporters to march to the Capitol, where the rally turned into a violent riot that injured about 150 police officers. He faces federal felony charges of plotting to overturn the 2020 election and similar charges in Georgia.

Sheryl Gay Stolberg

“Now she wants to do transgender operations on illegal aliens that are in prison.”

This needs context..

Trump is referring to Harris’s response to a 2019 American Civil Liberties Union questionnaire , in which she said she supported using taxpayer funds to give access to gender-affirming care to transgender and nonbinary people, including those in immigration detention and prison.

CNN reported on the survey earlier this week, in a segment that drew sharp criticism from supporters of gay, lesbian and transgender people. The survey asked: “As president, will you use your executive authority to ensure that transgender and nonbinary people who rely on the state for medical care — including those in prison and immigration detention — will have access to comprehensive treatment associated with gender transition, including all necessary surgical care? If yes, how will you do so?”

Harris answered yes, writing, “It is important that transgender individuals who rely on the state for care receive the treatment they need, which includes access to treatment associated with gender transition. That’s why, as attorney general, I pushed the California Department of Corrections and Rehabilitation to provide gender transition surgery to state inmates. I support policies ensuring that federal prisoners and detainees are able to obtain medically necessary care for gender transition, including surgical care, while incarcerated or detained. Transition treatment is a medical necessity, and I will direct all federal agencies responsible for providing essential medical care to deliver transition treatment.”

In an interview on Tuesday morning on Fox News, Michael Tyler, Harris’s campaign communications director, sought to distance Harris from the statement without disavowing it. “That questionnaire is not what she is proposing or running on,” Tyler said.

Advertisement

Hamed Aleaziz

“In Springfield, they’re eating the dogs. The people that came in, they’re eating the cats. They’re eating — they’re eating the pets of the people that live there.”

A spokeswoman for the city of Springfield, Ohio, said this week that despite viral social media posts that have been promoted by Trump and his supporters, “there have been no credible reports or specific claims of pets being harmed, injured or abused by individuals within the immigrant community.” A Clark County, Ohio, official said that they “have absolutely no evidence of this happening.”

Alexandra Berzon

“A lot of these illegal immigrants coming in —” Democrats are “trying to get them to vote.”

This lacks evidence..

In recent months, Trump and other Republicans have frequently made the false claim that there’s a major crisis of noncitizens illegally voting in federal elections . They often claim, with no evidence, that Democrats are trying to get undocumented immigrants to vote in order to cheat their way to electoral victory.

In fact, people who are not U.S. citizens already face fines or imprisonment for voting in federal elections under a 1996 law. And experts point to data indicating that cases of noncitizens voting are rare and nowhere near the threshold to sway an election. Instance of undocumented people doing so are even rarer . Registrants to vote have to swear under penalty of perjury that they are citizens, and some states check for citizenship against federal databases.

Organizations including the left-leaning Brennan Center , the conservative Heritage Foundation and the libertarian Cato Institute that have examined the legal system, registration records or election offices for cases of citizenship fraud have found very few examples.

Jeanna Smialek

“We have inflation like very few people have ever seen before. Probably the worst in our nation’s history: We were at 21 percent.”

Inflation was higher by standard measures during the late 1970s and early 1980s. The Consumer Price Index peaked at 9.1 percent in 2022, less than in that earlier episode. Analysts will sometimes argue that if one adjusts for a methodological change to how housing is measured, recent inflation has rivaled that episode, which may be what Trump is referencing. In any case, it is not true that America’s recent inflation episode is the world leader, as one can see by looking at international data

“All I can say is I read where she was not Black. That she put out. And I’ll say that and then I read that she was Black, and that’s OK. Either one was OK with me.”

It’s unclear what Trump read, but Vice President Kamala Harris has always identified as Black and South Asian during her time in public office. Harris wrote in her 2019 memoir that “my mother understood very well that she was raising two Black daughters.”

Harris joined Alpha Kappa Alpha, a sorority for Black women , at Howard University, a historically Black university. She was also the president of the Black Law Students Association at the University of California Hastings College of the Law. A 1999 Los Angeles Times article mentioning Harris, then an assistant district attorney in San Francisco, referred to her as a “liberal African American” prosecutor, and a 2000 San Francisco Examiner article called Harris a leader in the city’s Black community.

She first ran for public office in 2002 for San Francisco district attorney and, when she won her race, became the state’s first Black district attorney. She appeared on a panel as an emerging leader in the Black community in a 2006 conference. And in a 2009 speech to a Los Angeles-area high school about Black history, Harris spoke of her personal history as intertwined with that of the civil rights movement, alluding to how her parents “organized” in the streets during the 1960s.

Michael Crowley

“As of today, there is not one member of the United States military who is in active duty in a combat zone, in any war zone around the world, for the first time this century.”

— Vice President Kamala Harris

No U.S. troops are fighting in an all-out war like the ones in Iraq and Afghanistan. But thousands of American troops have become entangled in hostilities around the Middle East since the Oct. 7 Hamas attacks.

President Biden has deployed numerous warships and fighter jets to Israel’s coast, and U.S. forces have intercepted Iranian missiles and drones fired at Israel. They have also launched dozens of airstrikes against Yemen’s Houthi militants. American forces have also suffered casualties: Three U.S. service members based in Jordan were killed in January by an attack drone, and two Navy Seals drowned earlier in February during anti-Houthi operations. Iranian-backed militias have also repeatedly attacked U.S. forces stationed in Iraq and Syria, causing multiple injuries.

Zolan Kanno-Youngs

“Crime here is up and through the roof.”

The claim is factually incorrect. While there was an increase in crime during the pandemic, various studies have shown violent crime has now dropped to the lowest level in decades. Despite public perception of lawlessness, violent crime was higher in 2020 under Mr. Trump than under President Biden so far. The violent crime rate was 380.7 per 100,000 people in 2022, according to police agencies’ data gathered by the F.B.I. That was a lower rate than in all but three years — 2013, 2014 and 2015 — since 1985. Preliminary analysis from the F.B.I. suggested that violent crime decreased 15.2 percent in the first quarter of 2024 from the same period in 2023 , with an even greater drop of 18 percent in cities with more than one million people. Still, some studies have found that shoplifting and motor vehicle theft increased in 2023.

Kate Zernike

“Her vice-presidential pick says abortion in the ninth month is absolutely fine. He also says execution after birth. It’s execution, no longer abortion, because the baby is born is, OK, and that’s not OK with me.”

Abortion terminates a pregnancy, so “abortion after birth” is a contradiction. Killing a child after birth is infanticide, which is illegal in all 50 states. Vice President Kamala Harris has said she wants to restore the abortion rights established in Roe v. Wade. Roe, the 1973 Supreme Court decision overturned in 2022, allowed states to prohibit abortion in the third trimester — the seventh, eighth and ninth months of pregnancy — so long as they made exceptions to save the health and life of the mother. “Late term” is defined as 41 weeks, or just beyond nine months. According to federal data , less than 1 percent of all abortions take place after the 20th week of pregnancy; 93 percent are at or before 13 weeks. Minnesota, where the Democrat vice-presidential nominee, Tim Walz, is governor, is one of the few states to allow abortion at any stage of pregnancy . But allowing abortions at that stage does not mean that doctors perform them. State data for 2022 , the most recent available, shows that of the 12,175 abortions in the state that year, only two happened between 25 and 30 weeks of pregnancy, and none after the 30th week of pregnancy, which is roughly the start of the third trimester.

Ben Protess

“Every one of those cases was started by them against their political opponent.”

Trump’s claims that the Biden administration orchestrated his four criminal cases , including the one in Manhattan that led to his conviction in May on charges of falsifying records to cover up a sex scandal, has no basis in fact.

The Manhattan investigation began while Trump, not President Biden, was in office. The case was brought by the district attorney, Alvin L. Bragg, a local Democrat who does not answer to Biden or Vice President Kamala Harris. The same goes for Trump’s criminal case in Georgia, where a district attorney accused him of trying to overturn the 2020 election results in that state. And Trump’s two federal cases were brought by a special counsel, a semi-independent prosecutor who is accountable to the attorney general. While the attorney general is chosen by the president, the White House has no direct influence over the special counsel.

All of Trump’s legal challenges to the outcome of the 2020 election were dismissed on “technicalities” or the basis of “standing.”

This is false..

While some of the challenges to the last election were rejected on the basis of standing — that is, on the issue of whether the plaintiffs had the legal right to question the results and assert they had been harmed — there were some cases that were decided on the merits of whether there were improprieties in the race. And none of those cases were decided in Mr. Trump’s favor. One of the merits cases was decided in Wisconsin by Brett H. Ludwig, a federal judge appointed by Mr. Trump. “This court has allowed the plaintiff the chance to make his case,” Judge Ludwig wrote in his ruling, “and he has lost on the merits.”

Julian E. Barnes

“Putin endorsed her last week, said, ‘I hope she wins.’”

This is misleading..

Most observers believe that Vladimir V. Putin’s comments on Sept. 5 that he supported Vice President Kamala Harris were said in jest. The U.S. intelligence agencies have assessed that Putin supports the election of Trump. Documents released as part of an indictment against two employees of the Russian state broadcaster show the Kremlin developed a plan to influence swing state voters in favor of Trump. The Kremlin believes Trump will cut back, or end, U.S. military aid to Ukraine. While Trump has claimed that the invasion of Ukraine would not have taken place if he were president, there is little evidence that he would have taken action to deter Russia.

Helene Cooper

“They sent her in to negotiate with Zelensky and Putin, and she did, and the war started three days later.”

The vice president traveled to the Munich Security Conference in February 2022, in the days before Russia’s invasion of Ukraine that month. President Volodymyr Zelensky of Ukraine was there, and Harris met with him. Putin was not present.

Margot Sanger-Katz

“When Donald Trump was president, 60 times he tried to get rid of the Affordable Care Act — 60 times.”

As president, Trump did try to get rid of the Affordable Care Act, urging Republicans in Congress in 2017 to pass several bills to repeal and replace major portions of it. Those efforts were ultimately unsuccessful. Republicans in Congress had voted many times since the health law was enacted in 2010 to fully repeal or substantially modify Obamacare. Most of those attempts predated Trump’s presidency. Various analysts have tallied those efforts at 70 , or even 100 . But those very high counts include even proposed changes to the landmark legislation that were relatively minor — and some that had bipartisan support. Most failed to become law.

“I had a choice to make” on Obamacare. “Do I save it and make it as good as it can be? Or do I let it rot? And I saved it. I did the right thing.”

Trump did not “save” the health insurance law known as Obamacare; the United States Senate did, in defiance of him. During his first year in office, Trump asked Congress to pass legislation repealing the Affordable Care Act, the 2010 law that created the program. The Republican-controlled House approved the bill. But in a dramatic moment on Capitol Hill, Senator John McCain, the Arizona Republican and nemesis of Trump, cast the decisive vote to defeat the proposal, just days after returning to the Senate after receiving a diagnosis of brain cancer. The vote was a surprise to Trump; he had cheered McCain’s return to Washington in a social media post calling the Arizona senator “brave” and a “hero,” apparently believing that he had come back to Congress to help kill — not save — Obamacare.

Andrew Duehren

“Over the last four years, we have invested $1 trillion in a clean energy economy.”

The current administration has facilitated a burst of private investment because of tax credits and other incentives included in the Inflation Reduction Act passed in 2022. According to the Clean Investment Monitor, which tracks investments, clean energy investment since 2021 has totaled roughly $700 billion. Some experts expect the clean energy incentives to eventually help drive more than $1 trillion in private investment.

“Donald Trump, the candidate, has said in this election there will be a blood bath if this, and the outcome of this election, is not to his liking.”

Harris is correct that Trump warned of a “blood bath” if he did not win the 2024 election, but Trump has contended that he was speaking about an economic blood bath and was focused on competition from Chinese electric vehicles.

Here is the full quote of what Trump said at rally in March, so readers can decide for themselves.

“If you’re listening, President Xi, and you and I are friends, but he understands the way I deal, those big monster car manufacturing plants that you’re building in Mexico right now, and you think you’re going to get that, you’re going to not hire Americans and you’re going to sell the cars to us, we’re going to put a 100 percent tariff on every single car that comes across the line, and you’re not going to be able to sell those cars if I get elected,” he said.

“Now, if I don’t get elected, it’s going to be a blood bath. That’s going to be the least of it. It’s going to be a blood bath for the country. That’ll be the least of it. But they’re not going to sell those cars,” he continued.

“We have millions of people pouring into our country from prisons and jails, from mental institutions and insane asylums.”

Immigration experts have said they could not corroborate Mr. Trump’s claims . The Trump campaign has previously cited a September 2022 article in Breitbart, a conservative website. One unnamed source told Breitbart that officials believed an unspecified number of Venezuelan prison inmates were headed for the United States’ southern border with Mexico. (No other news organization or government source has verified this report.)

The campaign also pointed to reports warning that Tren de Aragua, a transnational criminal gang founded in Venezuela, was growing in the United States. But none of this is evidence that “millions” of criminals are infiltrating the southern border.

Customs and Border Protection reported apprehending 47 members of Tren de Aragua along the southern border under Mr. Biden. Prison populations all over the world have been increasing, not decreasing. Penal Reform International, a Netherlands-based nonprofit, estimated that the global prison population was a record 11.5 million in 2023 , an increase of 500,000 people since 2020 .

“For years we were paying almost all of NATO. We were being ripped off by European nations, both on trade and on NATO. I got them to pay up.”

Trump incorrectly characterizes the North Atlantic Treaty Organization. Member countries make direct contributions to the organization, based on national income, and also agree to spend at least 2 percent of their gross domestic product on their own defense.

Trump’s complaints led to NATO reducing the United States’ contribution to the common fund. Previously the United States paid about 22 percent of its central budget, and it dropped to 16 percent. And the number of countries meeting that 2 percent guideline increased to 10 from five in recent years.

Trump can claim some credit for increased spending, but it’s worth noting that countries pledged in 2014 to meet that goal within a decade.

Jim Tankersley

“The Trump administration resulted in a trade deficit — one of the highest we’ve ever seen in the history of America.”

In 2020, at the end of Donald J. Trump’s tenure in office, the trade deficit — the difference between how much the United States imports and how much it exports — was about $650 billion. That was lower than four years of the George W. Bush administration, and the first three years of the Biden-Harris administration.

Brad Plumer

“We had the largest increase in domestic oil production in history, because of an approach that recognizes that we cannot over-rely on foreign oil.”

U.S. crude oil production has indeed risen to record highs this year , though experts say that has little to do with actions taken by the Biden administration. Most oil production has occurred on private and state lands, where the federal government has little oversight. At times, President Biden has actually tried to restrict drilling on federal lands and waters in the name of tackling climate change, but the courts have frequently limited his ability to do so .

Lisa Friedman

Biden “ended the XL pipeline, the XL pipeline in our country. He ended that.”

On his first day in office, President Biden rescinded the construction permit for the Keystone XL oil pipeline , which would have transported carbon-heavy oil from the Canadian oil sands to the Gulf Coast. That same day, the sponsor of the project, TC Energy, a Canadian company, said that it was suspending work on the line.

Trump had revived the project after it stalled under the Obama administration, but it continued to face legal challenges that hampered construction. Opponents had fought the project for years over concerns that burning oil sands crude could make climate change worse and harder to reverse.

I “have built it into many, many billions of dollars; many, many billions.”

This is exaggerated..

Trump habitually exaggerates his wealth, so much so that the New York attorney general’s office sued him for fraudulently inflating his net worth, a case that led to a more than $450 million judgment against him .

In reality, he has about $400 million in cash, stocks and bonds, though if the New York case is upheld on appeal, it will essentially wipe out his liquid assets.

Much of his purported net worth is tied up in the real estate he owns. So when Trump says he is worth many billions, he appears to be referring to the value of that property. But property values fluctuate, and there is no reliable assessment of his assets. He also has a roughly $2 billion stake in his social media company, though he can’t yet access those shares and their value has plummeted in recent months.

“She wouldn’t even meet with Netanyahu when he went to Congress to make a very important speech. She refused to be there because she was at a sorority party of hers.”

It is true that when Prime Minister Benjamin Netanyahu of Israel addressed Congress on July 19, Vice President Kamala Harris did not attend the speech. On that day she delivered a long-planned speech in Indiana to the national conference for Zeta Phi Beta, one of the country’s historically Black sororities. But Harris returned to Washington the next day for a meeting with Netanyahu .

“And when she ran, she was the first one to leave because she failed” in the 2020 Democratic presidential primary.

Harris dropped out of the Democratic primary in December 2019 , which came as a surprise given expectations surrounding her candidacy. But her exit was preceded by more than a dozen others , including prominent members of Congress, former and sitting governors and the mayor of New York City.

“She went out in Minnesota and wanted to let criminals that killed people, that burned down Minneapolis.”

After the murder of George Floyd in Minneapolis and the protests that ensued, Vice President Kamala Harris posted on social media in June 2020 asking supporters “to help post bail for those protesting on the ground in Minnesota” by donating to the Minnesota Freedom Fund, a bail fund.

The fund used some of those money to bail out people who committed serious crimes. But Ms. Harris did not specifically call to release murderers from behind bars.

Michael D. Shear

“Remember that she was the border czar. She doesn’t want to be called the border czar because she’s embarrassed by the border.”

Harris was never appointed “border czar,” nor was she tasked with addressing border security. Rather, she had a role in addressing the root causes of migration in Central American countries. Moreover, she did visit the border in June 2021, where she toured an immigration facility in El Paso.

“By the way, Joe Biden was found essentially guilty on the documents case.”

A special counsel, Robert K. Hur, was appointed by Attorney General Merrick B. Garland to determine whether there was sufficient evidence to prosecute President Biden after his aides reported that classified documents from his time as vice president had been found in his possession. Hur spent months investigating Biden and in February issued a report in which he declined to bring charges against Biden for a number of reasons. Among them was that Biden, unlike Trump, cooperated with the federal inquiry into his handling of classified documents.

Elizabeth Dias

“And as far as the abortion ban, no, I’m not in favor of abortion ban.”

Trump privately expressed support for a 16-week abortion ban earlier this year, although he later reviewed polling suggesting it was problematic, and did not support it. His allies, including former Trump administration officials, have also planned new sweeping abortion restrictions that do not require a national ban passed by Congress. One plan includes enforcing a long-dormant law from 1873, called the Comstock Act , to criminalize the shipping of any materials used in an abortion — including the medication used in the majority of abortions in America.

“Fracking? She’s been against it for 12 years.”

During her first presidential campaign in 2019, Harris endorsed a ban on hydraulic fracturing, or fracking , a process used to extract oil and natural gas from bedrock. She also challenged federal approvals of offshore fracking when she was attorney general of California. When she became President Biden’s running mate in 2020, she distanced herself from that position, and now says she no longer supports a ban on fracking.

“We made ventilators for the entire world.”

Early in the pandemic, the Trump administration was criticized for a shortage of ventilators . In March 2020, Trump’s son-in-law, Jared Kushner, was put in charge of an effort to ramp up production. Trump later announced a plan to make the United States the “king of ventilators” by donating them to other countries. But ProPublica reported that while White House officials had pushed the U.S. Agency for International Development to purchase thousands of ventilators and donate them abroad, the effort was “marked by dysfunction.”

In the end, the ventilators weren’t needed. By May 2020, doctors began using ventilators only as a last resort, after observing unusually high death rates for Covid-19 patients who were put on the devices. The Associated Press quoted Daniel Edelman, a professor at the University of Chicago Booth School of Business, as saying the Trump administration was buying more than twice the number of ventilators it needed.

“People give me credit for rebuilding the military.”

Trump’s allies often repeat his talking point that he “rebuilt” the military. He did increase the defense budget during his four years in office, by around $225 billion. But he also promised to build a 350-ship Navy and to expand the Army. He did neither. The Army today is at its smallest size since 1940. The year Mr. Trump left office, the Navy was down to 294 ships. Efforts to expand the number of Air Force squadrons received no presidential push and went nowhere.

“I have nothing to do with Project 2025.”

Project 2025, a set of conservative policy proposals assembled by a Washington think tank for a Republican presidential administration, does not directly come from Trump or his campaign. Still, CNN documented that 140 people who worked for the Trump administration had a role in Project 2025. Some were top advisers to Trump in his first term and are all but certain to step into prominent posts should he win a second term.

Trump has also supported some of the proposals, with some overlap between Project 2025 and his own campaign plans. Among the similarities: undercutting the independence of the Justice Department and pressing to end diversity, equity and inclusion programs. And he enacted other initiatives mentioned in Project 2025 in his first term, such as levying tariffs on China and making it easier to fire federal workers. Trump has criticized some elements as “absolutely ridiculous and abysmal,” though he has not specified which proposals he opposes.

When the director of the project departed the think tank, Trump’s campaign released a statement that said, “Reports of Project 2025’s demise would be greatly welcomed and should serve as notice to anyone or any group trying to misrepresent their influence with President Trump and his campaign — it will not end well for you.”

“We handed them over a country where the economy and with — the stock market was higher than it was before the pandemic came in. Nobody’s ever seen anything like it.”

The economy grew at a fairly normal pace in the United States in the years leading up to the pandemic, and while the stock market did touch new highs under Trump’s watch, that is typically the case during a presidency: Historically, stock prices tend to climb over time. Stocks have traced new highs under the Biden administration, as measured by the S&P 500 index .

“Every legal scholar — every Democrat, every Republican, liberal, conservative — they all wanted” abortion policy “to be brought back to the states.”

Some conservative legal scholars asked the Supreme Court to overturn Roe v. Wade, the 1973 decision that identified a right to abortion in the Constitution. They said state legislators, not unelected justices, should set abortion policy. But many legal scholars also filed briefs urging the court not to do so, arguing that the original decision had been on solid legal ground and that overturning federal protection for abortion would disastrously reverse five decades of precedent.

Immigrants are “coming in and they’re taking jobs that are occupied right now by African Americans.”

Various economists have found that immigrants are a crucial part of the U.S. labor force and that their presence has been healthy for the nation’s economy. The population of foreign-born workers is also not large enough to offset job creation over the past three years. A few studies have indeed shown negative wage effects, particularly on Black workers and other Americans in occupations in which there are many immigrants. But while this dynamic has been debated for decades, there is no clear conclusion.

Several studies have, however, found a mutually beneficial relationship between high-skilled immigrants and similarly skilled U.S.-born workers, as well as between low-skilled immigrants and more highly skilled U.S.-born workers, contributes to higher wages for natives. Economists also have found immigrants are especially important as more Americans age and leave the labor force.

Immigrants are “taking over the towns. They’re taking over buildings. They’re going in violently.”

The claim is factually incorrect. The former president was referring to towns in Ohio and Colorado that have seen large influxes of immigrants, most of whom came into the United States legally, often with work permits. There have been examples of crime in those cities, but the vast majority of the immigrants have been working and paying taxes. In Springfield, Ohio, for example, thousands of Haitian immigrants have helped fill jobs as the city recovered from steep economic decline, but their presence has divided the town politically. A traffic accident caused by a Haitian immigrant has roiled the city, but there has not been widespread violence, and many in the city support the Haitian migrants as an important part of the economy.

“She’s a Marxist. Everybody knows she’s a Marxist.”

Marxism refers to the political, social and economics theories of Karl Marx, practiced as socialism or communism. Ms. Harris’s campaign has described her as a capitalist . She has not proposed to seize the means of production. And she has received the backing of more than 80 chief executives , some of whom have called her “pro-business.”

“The only jobs they got were bounce-back jobs.”

Trump claimed that the only jobs created under the Biden-Harris administration were from recovering jobs that were lost under Trump amid the pandemic recession. In fact, under the Biden administration, the American economy has regained all the jobs it lost from before the pandemic and created nearly 6.5 million additional jobs on top of that.

“Donald Trump left us the worst unemployment since the Great Depression.”

Unemployment spiked to its worst levels since the Great Depression in the pandemic recession of 2020, but it was 6.4 percent the month Trump left office . That’s nowhere near the worst rate since the Depression.

Shawn Hubler

“This business about taking everyone’s guns away — Tim Walz and I are both gun owners.”

This is true..

A career prosecutor in California before she ran for the U.S. Senate, Harris has long said that she owns a handgun. “I am a gun owner, and I own a gun for probably the reason a lot of people do — for personal safety,” she told reporter s outside a campaign event in Iowa during her run for the White House in 2019.

Although she has long called for universal background checks, a ban on assault-style weapons and other controls, she has not called for seizing legally purchased firearms. Gov. Tim Walz of Minnesota, her running mate, is an Army veteran and a hunter who was endorsed by the National Rifle Association until he began supporting tighter firearm restrictions after a teenage gunman opened fire at a Florida high school in 2018.

“I was a better shot than most Republicans in Congress and I have the trophies to prove it,” he said. “But I’m also a dad. I believe in the Second Amendment, but I also believe that our first responsibility is to keep our kids safe.”

“He lost manufacturing jobs.”

The United States had lost nearly 200,000 factory jobs at the end of Donald Trump’s presidency compared with when Trump took office. Those losses were largely a product of the pandemic recession.

“We have created over 800,000 new manufacturing jobs.”

Since President Biden took office, seasonally adjusted manufacturing employment has increased by 739,000 jobs. Previous estimates put that increase above 800,000, but that number fell after the Labor Department issued an annual revision to its jobs numbers last month.

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NPR fact-checked the Harris-Trump presidential debate. Here's what we found

Vice President and Democratic presidential candidate Kamala Harris and former President and Republican presidential candidate Donald Trump speak during a presidential debate. Saul Loeb/AFP via Getty Images hide caption

Vice President Harris and former President Donald Trump faced off Tuesday in their first — and possibly only — debate of the 2024 campaign, taking questions on key issues like the border, the economy and abortion.

With the candidates virtually tied in the polls, and just 55 days until Election Day, Trump and Harris sought to define their visions for America in front of a national audience and deflect attacks from the other side.

NPR reporters fact-checked the candidates' claims in real time . Here's what they found:

NPR's White House Correspondent Discusses The Debate | Morning Edition | NPR

TRUMP: "I had no inflation, virtually no inflation. They had the highest inflation, perhaps in the history of our country, because I've never seen a worse period of time. People can't go out and buy cereal or bacon or eggs or anything else."

Inflation soared to a four-decade high of 9.1% in 2022, according to the consumer price index. While inflation has since fallen to 2.9% (as of July), prices — particularly food prices — are still higher than many Americans would like.

Other countries have also faced high inflation in the wake of the pandemic, as tangled supply chains struggled to keep pace with surging demand. Russia’s invasion of Ukraine also fueled inflation by driving up energy and food prices worldwide.

Government spending in the U.S. under both the Biden-Harris administration and Trump also may have contributed, putting more money in people’s pockets and enabling them to keep spending in the face of high prices.

While high prices are a source of frustration for many Americans, the average worker has more buying power today than she did before the pandemic. Since February 2020 (just before the pandemic took hold in the U.S.), consumer prices have risen 21.6% while average wages have risen 23%.

Many prices were depressed early in the pandemic, however, so the comparison is less flattering if you start the clock when President Biden and Vice President Harris took office. Since early 2021, consumer prices have risen 19.6%, while average wages have risen 16.9%. Wage gains have been outpacing price increases for over a year, so that gap should eventually close.

— NPR economics correspondent Scott Horsley

2024 Election

Taylor swift endorses kamala harris in instagram post after the debate.

HARRIS: "Donald Trump left us the worst unemployment since the Great Depression."

At the height of the Great Depression in 1933, the national unemployment rate was near 25%, according to the Franklin D. Roosevelt Presidential Library.

At the start of the COVID pandemic, the unemployment rate peaked at 14.8% in April 2020, a level not seen since 1948, according to the Congressional Research Service.

But by the time Trump left office, unemployment had fallen to a lower, but still elevated, level. The January 2021 unemployment rate was 6.3%.

— NPR producer Lexie Schapitl

Immigration

TRUMP: "You see what's happening with towns throughout the United States. You look at Springfield, Ohio, you look at Aurora in Colorado. They are taking over the towns. They're taking over buildings. They're going in violently. These are the people that she and Biden let into our country, and they're destroying our country. They're dangerous. They're at the highest level of criminality, and we have to get them out."

Trump attacked Harris and Biden's records on immigration, arguing that they're failing to stem people from other countries from entering the U.S. and causing violence.

In the last two years, more than 40,000 Venezuelan immigrants have arrived in the Denver metro area. And it is true that many now live in Aurora.

A few weeks ago, a video of gang members in an Aurora, Colo., apartment building had right-wing media declaring the city's takeover by Venezuelan gangs. NPR looked into these claims .

Indian migrants drive surge in northern U.S. border crossings

Shortly after the video appeared, Colorado's Republican Party sent a fundraising letter claiming the state is under violent attack, and Venezuelan gangs have taken over Aurora.

It's also true Aurora police have recently arrested 10 members of a Venezuelan gang called Tren de Aragua. But Aurora's interim police chief, Heather Morris, says there's no evidence of a gang takeover of apartment buildings in her city.

What's more, violent crime — including murder, robbery and rape — is way down nationwide, according to the most recent data from the FBI . Notably, analysts predict violent crime rates this year will fall back down to where they were before they surged during the pandemic and may even approach a 50-year low.

Trump also claims that migrants are driving up crime rates in the U.S. That is not true. Researchers from Stanford University found that since the 1960s, immigrants have been 60% less likely to be incarcerated than people born in the U.S. The Cato Institute, a libertarian think tank, found undocumented immigrants in Texas were 37% less likely to be convicted of a crime.

— NPR immigration correspondent Jasmine Garsd and criminal justice reporter Meg Anderson

TRUMP: "In Springfield, they're eating the dogs. The people that came in, they're eating the cats. They're eating the pets of the people that live there."

This remark refers to a debunked, dehumanizing claim that Haitian migrants living in Springfield, Ohio, are abducting pets and eating them .

Untangling Disinformation

Jd vance spreads debunked claims about haitian immigrants eating pets.

The claim, which local police say is baseless, first circulated among far-right activists, local Republicans and neo-Nazis before being picked up by congressional leaders, vice presidential candidate JD Vance and others. A well-known advocate for the Haitian community says she received a wave of racist harassment after Vance shared the theory on social media.

The Springfield News-Sun reported that local police said that incidents of pets being stolen or eaten were "not something that's on our radar right now." The paper said the unsubstantiated claim seems to have started with a post in a Springfield Facebook group that was widely shared across social media.

The claim is the latest example of Trump leaning into anti-immigrant rhetoric. Since entering the political arena in 2015, Trump accused immigrants of being criminals, rapists, or "poisoning the blood of our nation."

— NPR immigration correspondent Jasmine Garsd

TRUMP: "A lot of these illegal immigrants coming in, [Democrats] are trying to get them to vote."

It is illegal for noncitizens to vote in federal elections, and there is no credible evidence that it has happened in significant numbers, or that there is an effort underway to illegally register undocumented immigrants to vote this election.

Voter registration forms require voters to sign an oath — under penalty of perjury — that they are U.S. citizens. If a noncitizen lies about their citizenship on a registration form and votes, they have created a paper trail of a crime that is punishable with jail time and deportation.

“The deterrent is incredibly strong,” David Becker, executive director of the Center for Election Innovation and Research, told NPR.

Illegal crossings hit Biden-era low as migrants wait longer for entry

Election officials routinely verify information on voter registration forms, which ask registrants for either a driver’s license number or the last four digits of Social Security numbers.

In 2016, the Brennan Center for Justice surveyed local election officials in 42 jurisdictions with high immigrant populations and found 30 cases of suspected noncitizens voting out of 23.5 million votes cast, or 0.0001%.

Georgia Secretary of State Brad Raffensperger launched an audit in 2022 that found fewer than 1,700 suspected noncitizens had attempted to register to vote over the past 25 years. None were able to vote.

— NPR disinformation reporter Jude Joffe-Block

TRUMP: "[Harris] was the border czar. Remember that she was the border czar."

Republicans have taken to calling Harris the "border czar" as a way to blame her for increased migration to the U.S. and what they see as border security policy failures of the Biden administration.

There is no actual "border czar" position. In 2021, President Biden tasked Harris with addressing the root causes of migration from Central America.

As Republicans attack Harris on immigration, here’s what her California record reveals

The "root causes strategy ... identifies, prioritizes, and coordinates actions to improve security, governance, human rights, and economic conditions in the region," the White House said in a statement. "It integrates various U.S. government tools, including diplomacy, foreign assistance, public diplomacy, and sanctions."

While Harris has been scrutinized on the right, immigration advocates have also criticized Harris, including for comments in 2021 where she warned prospective migrants, "Do not come."

TRUMP: "You could do abortions in the seventh month, the eighth month, the ninth month, and probably after birth."

As ABC News anchor Linsey Davis mentioned during her real-time fact check, there is no state where it is legal to kill a baby after birth (Trump called it "execution"). A report from KFF earlier this year also noted that abortions “after birth” are illegal in every state.

According to the Pew Research Center, the overwhelming majority of abortions — 93% — take place during the first trimester. Pew says 1% take place after 21 weeks. Most of those take place before 24 weeks, the approximate timeline for fetal viability, according to a report by KFF Health News.

Trump repeats the false claim that Democrats support abortion 'after birth' in debate

A separate analysis from KFF earlier this year noted that later abortions are expensive to obtain and offered by relatively few providers, and often occur because of medical complications or because patients face barriers earlier in their pregnancies.

“Nowhere in America is a woman carrying a pregnancy to term and asking for an abortion. That isn’t happening; it’s insulting to the women of America,” Harris said.

Harris also invoked religion in her response, arguing that “one does not have to abandon their faith” to agree that the government should not control reproductive health decisions.

As Davis also noted, Trump has offered mixed messages about abortion over the course of the campaign. He has bragged about his instrumental role in overturning Roe v. Wade , while appearing to backpedal on an issue that polling makes clear is a liability for Republicans.

— NPR political correspondent Sarah McCammon

Afghanistan

TRUMP: The U.S. withdrawal from Afghanistan "was one of the most incompetently handled situations anybody has ever seen."

Trump and Republicans in Congress say President Biden is to blame for the fall of Kabul to the Taliban three years ago, and the chaotic rush at the airport where 13 U.S. troops died in a suicide bomb attack that killed nearly 200 Afghan civilians trying to flee. Of late, Republicans have been emphasizing Harris’ role . But the Afghanistan war spanned four U.S. presidencies , and it's important to note that it was the Trump administration that signed a peace deal that was basically a quick exit plan.

Trump regularly claims there were no casualties in Afghanistan for 18 months under his administration, and it’s not true, according to Pentagon records.

— NPR veterans correspondent Quil Lawrence

Military policy

HARRIS: “There is not one member of the military who is in active duty in a combat zone in any war zone around the world for the first time this century.”

This is a common administration talking point, and it's technically true. But thousands of troops in Iraq and on the Syrian border are still in very dangerous terrain. U.S. troops died in Jordan in January on a base that keeps watch over the war with ISIS in Syria.

HARRIS: "I will not ban fracking. I have not banned fracking as vice president United States, and in fact, I was the tie-breaking vote on the inflation Reduction Act which opened new leases for fracking."

When she first ran for president in 2019, Harris had said she was firmly in favor of banning fracking — a stance she later abandoned when she joined President Biden’s campaign as his running mate.

In an interview with CNN last month, Harris attempted to explain why her position has changed from being against fracking to being in favor of it.

“What I have seen is that we can grow, and we can increase a clean energy economy without banning fracking,” Harris told CNN’s Dana Bash.

Harris says she won't ban fracking. What to know about the controversial topic

Under the Biden-Harris administration, the U.S. produced a record amount of oil last year — averaging 12.9 million barrels per day. That eclipsed the previous record of 12.3 million barrels per day, set under Trump in 2019. 2023 was also a record year for domestic production of natural gas . Much of the domestic boom in oil and gas production is the result of hydraulic fracturing or “fracking” techniques .

In addition to record oil and gas production, the Biden-Harris administration has also coincided with rapid growth of solar and wind power . Meanwhile, coal has declined as a source of electricity.

Health care

TRUMP: "I had a choice to make: Do I save [the Affordable Care Act] and make it as good as it can be, or do I let it rot? And I saved it."

During his presidency, Trump undermined the Affordable Care Act in many ways — for instance, by slashing funding for advertising and free "navigators" who help people sign up for a health insurance plan on HealthCare.gov. And rather than deciding to "save" the ACA, he tried hard to get Congress to repeal it, and failed. When pushed Tuesday on what health policy he would put in its place, he said he has "concepts of a plan."

Shots - Health News

Amid medicaid's 'unwinding,' many states work to expand health care access.

The Biden administration has reversed course from Trump's management of the Affordable Care Act. Increased subsidies have made premiums more affordable in the marketplaces, and enrollment has surged. The uninsurance rate has dropped to its lowest point ever during the Biden administration.

The Affordable Care Act was passed in 2010 and is entrenched in the health care system. Republicans successfully ran against Obamacare for about a decade, but it has faded as a campaign issue this year.

— NPR health policy correspondent Selena Simmons-Duffin

Fact-checking the presidential debate between Trump and Harris

Vice President Kamala Harris and former President Donald Trump faced off in their first debate Tuesday night, trading barbs on foreign policy, abortion and guns.

Trump advanced a number of debunked conspiracy theories related to migration, crime and voting in the combative showdown, while Harris made misleading statements about manufacturing jobs and whether U.S. troops are in combat zones.

Here's what Harris and Trump got right and wrong on the debate stage in Philadelphia.

Fact check: Trump calls Harris’ dad a Marxist

“Her father’s a Marxist professor in economics, and he taught her well," Trump said.

That’s not what his students say.

In interviews, three of Professor Donald Harris’ former students, who are now economists themselves, told NBC News that they disagreed that Harris’ father is a Marxist. Donald Harris taught at Stanford University for nearly three decades until he retired in 1998, and while he was there, he studied Karl Marx’s economic philosophy among the philosophies of other different thinkers, his students recall. While Harris has spoken about her father’s influence in her early childhood, she has credited her mother for being the parent who shaped her into the person she is today.

Fact check: Did the U.S. leave $85 billion worth of military equipment in Afghanistan?

“We wouldn’t have left $85 billion worth of brand-new, beautiful military equipment behind," Trump said.

This is false.

The Taliban did gain possession of U.S.-made military equipment when they retook power in 2021, but the $85 billion figure is grossly exaggerated. It is a rounding up of the approximately $83 billion in total assistance appropriated for the Afghan military and police during the two-decade war, including training, equipment and housing.

According to a  2022 Defense Department report , the Taliban seized much of the estimated $7.12 billion in U.S.-funded equipment that was in the hands of the former Afghan government when it collapsed, the condition of which was unknown. The report said the U.S. military had removed or destroyed almost all the major equipment it was using in Afghanistan in the months leading up to the U.S. withdrawal.

Fact check: Trump claims Harris ‘wants to confiscate your guns’

“She wants to confiscate your guns,” Trump claimed.

Online posts have advanced a similar false claim. Harris has advocated for gun safety laws, proposing requirements for “anyone who sells more than five guns a year” to conduct background checks and for unlawful gun dealers to face penalties.

Harris responded moments later: “This business about taking everyone’s guns away? Tim Walz and I are both gun owners. We’re not taking anybody’s guns away.”

Fact check: Harris says Trump oversaw manufacturing job losses

“Donald Trump said he was going to create manufacturing jobs. He lost manufacturing jobs," Harris said.

This needs context.

Before the onset of the pandemic, the U.S.  added about 500,000 manufacturing jobs  during the Trump administration. But by the time Trump left office at the height of the pandemic, the U.S. had given up virtually all those gains as a result of the worldwide economic devastation from the virus.

Meanwhile, Trump actually understated the number of manufacturing jobs lost last month:  It was 24,000, not 10,000.

Fact check: Would Trump end the Russia-Ukraine war by giving up Ukrainian interests?

"I believe Donald Trump says that this war would be over within 24 hours. It’s because he would just give it up. And that’s not who we are as Americans," Harris said.

Harris’ comments came during a lengthy exchange that was kicked off when debate moderator David Muir asked Trump, “Do you want Ukraine to win this war?”

Trump responded by saying only that “I want the war to stop. I want to save lives that are being uselessly, people being killed by the millions.” He added that “I will get it settled” because “what I’ll do is I’ll speak to one, I’ll speak to the other, I’ll get them together.”

Harris responded with the above quotation and brought up that the Biden administration had helped bring dozens of countries together to support Ukraine’s defense.

“Because of our support, because of the air defense, the ammunition, the artillery … that we have provided, Ukraine stands as an independent and free country. If Donald Trump were president, Putin would be sitting in Kyiv right now,” she said.

Trump hasn’t publicly discussed what his specific plan to end the war would be.  The Washington Post reported in April that the plan  was essentially a land-for-peace deal.

Citing people who discussed the plan with Trump and his advisers, the Post reported that  Trump would plan to push Ukraine to hand over control  of Crimea and the Donbas region to Russia in any future deal, which would effectively formalize the gains Russian President Vladimir Putin made during his illegal invasion. In exchange, the Post reported, Putin would stop the war. The report attracted criticism across the political spectrum and from Kyiv, with many lawmakers and international figures saying the deal amounted to appeasement.

Regardless of whether such a plan would ever bear fruit, Harris’ latest comments build on the narrative that Trump continues to seek cozy ties with Moscow. Before Russia invaded Ukraine, Trump praised Putin as “genius” and “savvy” for declaring his intention to invade. 

In addition, it’s important to note that Trump didn’t say in his direct response to Muir that he wanted Ukraine to win in the war. He said only that he wanted the war to stop.

And even if Trump won and tried to stop the war, U.S. and European governments say Russia has shown no sign it is genuinely interested in any peace negotiations.

Fact check: Harris says no U.S. military members are on active duty in a combat zone

“And as of today, there is not one member of the United States military who is in active duty in a combat zone, in any war zone around the world, the first time this century," Harris said.

While Congress hasn’t formally declared a war in decades, American troops are certainly in combat zones around the world.

They’re serving in places like Iraq and Syria, where they work with local troops to fight terrorist networks. And they also conduct missions in both places — we saw that late last month in Iraq’s Anbar province, where an operation killed 15 Islamic State fighters and two U.S. soldiers were medevaced for injuries (and five more were injured). And a drone attack in Syria last month injured eight U.S. service members .

U.S. troops are also in Somalia and other parts of Africa, where they support local troops fighting terrorist groups, and they’ve been shooting down Houthi drones and missiles in the Red Sea.

Fact check: Trump claims he saved Obamacare

“Do I save it and make it as good as it can be, or do I let it rot, and I saved it," Trump said.

During Trump’s term in office, he made several attempts to repeal the Affordable Care Act. While those efforts were unsuccessful, Republicans in Congress did repeal its individual mandate, which required people to have health insurance or face fines.

Fact check: Did Trump’s election cases fail on standing?

“No judge looked at it. ... They said we didn’t have standing. That’s the other thing. They said we didn’t have standing. Can you imagine a system where a person in an election doesn’t have standing? The president of the United States doesn’t have standing? That’s how we lost if you look at the facts, and I’d love to have you do a special on it. I’ll show you Georgia, and I’ll show you Wisconsin, and I’ll show you Pennsylvania," Trump said.

Trump falsely claimed that judges rejected the more than 50 lawsuits brought by his supporters claiming widespread fraud because the president did not have legal “standing.”

The  majority of the lawsuits were rejected  because of a lack of evidence of voter fraud, a finding that Attorney General William Barr supported. Judges in Georgia, Wisconsin and Pennsylvania rejected the claims of widespread voter fraud. The Supreme Court rejected Trump’s appeal because of a lack of standing. There is  extensive proof  that the 2020 election wasn’t marred by fraud. 

Fact check: Is ‘migrant crime’ happening at high levels?

“They’ve destroyed the fabric of our country. Millions of people let in and all over the world, crime is down all over the world, except here. Crime here is up and through the roof, despite their fraudulent statements that they made, crime in this country’s through the roof, and we have a new form of crime. It’s called migrant crime. I like that. It’s happening at levels nobody thought possible," Trump said.

This is misleading.

The rate of violent and property crimes dropped precipitously in the first three months of 2024 compared with the same period last year, according to quarterly statistics released Monday by the FBI known as the  Uniform Crime Report . The murder rate fell by 26.4%, reported rapes decreased by 25.7%, robberies fell by 17.8%, aggravated assault fell by 12.5%, and the overall violent crime rate went down by 15.2%, the statistics indicate.

Pressed about the crime rates’ contradicting him, Trump claimed the FBI didn’t “include the cities with the worst crime; it was a fraud.” And while it’s true that some cities data isn’t included in the FBI crime data, city-level data shows similar trends. For example, New York City data compiled  by the police department  indicates that crime was down overall in the first quarter of 2024 there, too.

Under President Joe Biden, over 112,000 migrants with criminal backgrounds have been apprehended at the border, compared with over 63,000 under Trump. The number of people who are on the terrorist watchlist stopped at the border has largely stayed the same, with an estimated 1,400 encounters under Trump and 1,800 under Biden. But the government has acknowledged the difficulty of vetting migrants coming from countries that won’t share criminal history data with the U.S., and investigators have opened more than 100 investigations into the Tren de Aragua, a Venezuelan gang that has spread into the U.S.

Fact check: Are noncitizens being encouraged to vote?

“We have to have borders, and we have to have good elections. Our elections are bad. And a lot of these illegal immigrants coming in, they’re trying to get them to vote. They can’t even speak English. They don’t even know what country they’re in, practically. And these people are trying to get them to vote, and that’s why they’re allowing them to come into our country," Trump said.

It is a crime to register or vote as a noncitizen in all state and federal elections, though Washington, D.C., and a handful of municipalities in California, Maryland and Vermont allow noncitizen voting in local elections. Few people break those laws.

There’s no evidence of “people” trying to get undocumented migrants to vote, either.

Fact check: Trump says ‘fossil fuel will be dead’ under Harris

“If she won the election, the day after that election, go back to destroying our country and oil will be dead. Fossil fuel will be dead. We’ll go back to windmills, and we’ll go back to solar, where they need a whole desert to get some energy to come out. You ever see a solar plant? By the way, I’m a big fan of solar, but they take 400-500 acres of desert soil," Trump said.

Oil and gas production is at an all-time high under the Biden administration, and the U.S. is the world’s top oil producer.

Meanwhile, wind and solar power are rapidly expanding across the country. The U.S. Energy Information Association projects the amount of new solar power coming online will grow by 75% from 2023 to 2025. New wind power is also increasing by 11%.

In the context of the cost of living for Americans, solar and onshore wind are also significantly cheaper sources of energy than fossil fuel. Solar power, on average, costs nearly half the price of fossil gas energy, according to the EIA.

Fact check: Did Trump threaten there would be a ‘bloodbath’ if he doesn’t win the election?

“Donald Trump, the candidate, has said, in this election, there will be a bloodbath if this and the outcome of this election is not to his liking. Let’s turn the page on this. Let’s not go back. Let’s chart a course for the future and not go backwards to the past," Harris said.

This is true, though Trump says differently.

During the debate, Trump hit back at Harris, saying: “Let me just it was a different term, and it was a term that related to energy, because they have destroyed our energy business. ... That story has been, as you would say, debunked.”

Harris was referring  to comments Trump made at a rally in Andalia, Ohio, in March .

At the rally, Trump vowed there would be a “bloodbath” if he’s not elected in November — comments that came during a broader tirade that included his referring to the possibility of an increasing trade war with China over auto manufacturing.

At the Ohio rally, Trump said: “If you’re listening, President Xi — and you and I are friends — but he understands the way I deal. Those big monster car manufacturing plants that you’re building in Mexico right now … you’re going to not hire Americans and you’re going to sell the cars to us, no. We’re going to put a 100% tariff on every single car that comes across the line, and you’re not going to be able to sell those cars if I get elected.”

“Now, if I don’t get elected, it’s going to be a bloodbath for the whole — that’s gonna be the least of it,” he added. “It’s going to be a bloodbath for the country. That will be the least of it. But they’re not going to sell those cars. They’re building massive factories.”

Later, Trump said, “If this election isn’t won, I’m not sure that you’ll ever have another election in this country.”

Trump has continued to refuse to acknowledge that he lost the 2020 election. The doubt he cast on the results of the race helped sow the Jan. 6, 2021, Capitol insurrection.

In response to the comments in March, Trump campaign spokeswoman Karoline Leavitt told NBC News at the time that “Biden’s policies will create an economic bloodbath for the auto industry and autoworkers.”

Fact check: Who is responsible for the botched troop exit from Afghanistan?

“They didn’t fire anybody having to do with Afghanistan and the Taliban and the 13 people who were just killed, viciously and violently killed. And I got to know the parents and the family. They didn’t fire, they should have fired all those generals, all those top people, because that was one of the most incompetently handled situations anybody has ever seen," Trump said.

This is true, but additional context is needed.

It’s true that no one in the Biden administration was held accountable for the final withdrawal of troops from Afghanistan in August 2021, a chaotic event that resulted in 13 deaths.

But Trump and Biden share responsibility for the withdrawal and its consequences. Both publicly supported pulling U.S. troops out and rejected advice from military commanders to keep a small U.S. force on the ground.

Trump and his supporters have tried to solely blame Biden and Harris for the chaotic pullout. The Biden administration, in a National Security Council report last year, tried to pin most of the blame on the Trump administration, arguing that Biden was “severely constrained” by Trump’s decisions.

In February 2020, the Trump administration negotiated an agreement with the Taliban that excluded the Afghan government, reduced U.S. troops levels from 12,500 to 2,500, freed 5,000 Taliban prisoners   in a prisoner exchange and required all U.S. troops to withdraw by May 1, 2021.

In return, the U.S received an ambiguous pledge from the Taliban not to allow Afghanistan to become a base for terrorist attacks against the U.S. and its allies. 

Trump then scaled back U.S. troop levels over the course of 2020 from about 13,000 to 2,500 as part of the deal, even though the Taliban didn’t keep their commitment to reduce violence and it maintained ties with Al Qaeda. Republican lawmakers in November expressed alarm over the troop reductions, with Sen. Marco Rubio, of Florida, warning of a “Saigon-type situation.”

The February 2020 Doha agreement and the troop drawdown presented Biden with difficult choices. Some administration officials were concerned that if the U.S. chose to renege on the Doha agreement, the administration would have to deploy additional U.S. troops in Afghanistan to bolster the small contingent remaining. That, in turn, risked triggering an intensified war with the Taliban.

The head of U.S. Central Command, Gen. Frank McKenzie, recommended keeping a small force of 2,500 in place to counter the terrorist threat from the country and to support the Afghan army. The chairman of the Joint Chiefs of Staff, Gen. Mark Milley, agreed with the recommendation.

Biden eventually moved up the timeline for full troop withdrawal to Aug. 31 (from Sept. 11) as the Taliban made dramatic advances across the country.

In August, Taliban forces seized Kabul without a fight, and Afghan President Ashraf Ghani fled the country amid chaotic scenes at the Kabul airport. Desperate Afghans climbed onto the wings of a U.S. cargo plane and fell from the sky after it took off. 

On Aug. 26, a bombing at the airport’s Abbey Gate during the final days of the withdrawal killed 13 U.S. service members and 170 Afghans and wounded many more people. The attack was carried out by ISIS. 

Fact check: Trump says Harris ‘wants to do transgender operations on illegal aliens that are in prison’

“Now she wants to do transgender operations on illegal aliens that are in prison," Trump said.

CNN  recently reported  that in her response to an American Civil Liberties Union questionnaire in 2019, Harris said transgender people who rely on the state for care, including federal prisoners and detainees, should have access to gender transition treatment. The Harris campaign didn’t answer questions from CNN about whether she still supports that position.

Fact check: Trump says Democrats support ‘execution after birth’

“You can look at the governor of West Virginia, the previous governor of West Virginia — not the current governor, who is doing an excellent job, but the governor before — he said the baby will be born and we will decide what to do with the baby. In other words, we’ll execute it. And that’s why I did that, because that predominates, because they’re radical. The Democrats are radical. ... Her vice presidential pick says abortion in the ninth month is absolutely fine. He also says execution after birth is execution — no longer abortion because the baby is born OK, and that’s not OK with me," Trump said.

While some Democrats, including Walz, support broad access to abortion regardless of gestation age, infanticide is illegal, and no Democrats advocate for it. What’s more, just 1% of abortions are performed after 21 weeks’ gestation,  according to the Centers for Disease Control and Prevention , and they are typically due to serious medical causes.

This is a frequent falsehood from Trump dating to 2019, referring to something former Virginia Gov. Ralph Northam, a Democrat, said on a radio program. NBC News  debunked the claim  then, reporting that Northam’s remarks were about resuscitating infants with severe deformities or nonviable pregnancies. 

Asked what happens when a woman who is going into labor desires a third-trimester abortion, Northam noted that such procedures occur only in cases of severe deformities or nonviable pregnancies. He said that in those scenarios, “the infant would be resuscitated if that’s what the mother and the family desired, and then a discussion would ensue between the physicians and the mother.”

Fact check: Are pets being harmed by migrants?

Baseless rumors have  spread on social media for days  claiming that Haitian immigrants in Ohio are abducting and eating pets. Most of the rumors involve Springfield, which has a large number of Haitian immigrants, but police there knocked down the stories Monday in a statement saying they hadn’t seen any documented examples.

“There have been no credible reports or specific claims of pets being harmed, injured or abused by individuals within the immigrant community,” the statement said.

Republicans, including Vance, have pointed to the claims as evidence that immigrants are causing chaos. Vance, though, hedged somewhat  in a statement  on X on Tuesday, saying, “It’s possible, of course, that all of these rumors will turn out to be false.”

Immigration is  a potent subject  in the presidential face. In an NBC News poll in April,  22% of voters  put immigration and the border as the most important issue facing the country, second only to inflation and the cost of living, at 23%.

John Kirby, the White House’s national security spokesperson,  denounced the claims  about Haitians in Ohio as a dangerous conspiracy theory that could inspire anti-immigrant violence.

“There will be people that believe it no matter how ludicrous and stupid it is, and they might act on that kind of information and act on it in a way where somebody could get hurt,” he told reporters Tuesday.

Fact check: Have the jobs created under the Biden administration been ‘bounce-back’ jobs?

“[T]he only jobs they got were bounce-back jobs. These were jobs bounce back, and it bounced back, and it went to their benefit, but I was the one that created them," Trump said.

The U.S. regained all the jobs lost during the Covid-19 pandemic  in June 2022 . Since then, more than 6 million jobs have been created.

Fact check: Trump says inflation is ‘probably the worst in our nation’s history’

“Look, we’ve had a terrible economy because inflation has — which is really known as a country buster. It breaks up countries. We have inflation like very few people have ever seen before, probably the worst in our nation’s history," Trump said.

Inflation is at 2.9%, the lowest it has been since March 2021, although the rate did reach a peak of 9.1% during June 2022 amid the Covid-19 pandemic. Inflation was at that level at multiple points of the Trump presidency, as well, in June and July 2018.

Fact check: Trump says he has ‘nothing to do with Project 2025’

“I have nothing to do with Project 2025. That’s out there. I haven’t read it. I don’t want to read it purposely. I’m not going to read it. This was a group of people that got together. They came up with some ideas, I guess, some good, some bad, but it makes no difference," Trump said.

Trump has spent weeks trying to push back against associations with Project 2025, a 900-page policy wish list put out by the Heritage Foundation.

It’s true that Trump has disavowed some of the policies in the document and that he didn’t write it, but many of his allies and former aides  are behind it  and have advanced the positions proposed in it.

The Heritage Foundation also had significant influence in the Trump administration. In 2018, it boasted  that Trump and his administration “embraced nearly two-thirds of the policy recommendations” it advanced in a similar document. 

Fact check: Are 21 million migrants coming into the U.S. monthly?

“But when you look at what she’s done to our country, and when you look at these millions and millions of people that are pouring into our country monthly, where it’s I believe 21 million people, not the 15 that people say," Trump said.

According to statistics from U.S. Customs and Border Protection, there have been an estimated 10 million encounters across U.S. land borders during the Biden administration. In July, CBP recorded 170,273 national encounters between and at U.S. ports of entry. The most national encounters recorded since the start of fiscal year 2024 has been 370,887.

Fact check: Would Trump tax cuts create a $5 trillion deficit?

“My opponent, on the other hand, his plan is to do what he has done before, which is to provide a tax cut for billionaires and big corporations, which will result in $5 trillion to America’s deficit. My opponent has a plan that I call the Trump sales tax, which would be a 20% tax on everyday goods that you rely on to get through the month. Economists have said that that Trump sales tax would actually result for middle-class families in about $4,000 more a year," Harris said.

This is true.

A report in May  from the nonpartisan Congressional Budget Office found that extending the Trump tax cuts for 10 years would add $4.6 trillion to the federal deficit.

Harris’ reference to Trump’s “sales tax” actually refers to his proposal to raise tariffs on all nearly all imported basic goods by 10% and by up to 60% on basic goods imported from China. Economists,  including from the left-leaning Center for American Progress , have said those levels of tariffs would pass costs on to consumers, amounting to about $3,900 in additional costs for an average middle-class family.

Jane C. Timm is a senior reporter for NBC News.

Adam Edelman is a politics reporter for NBC News.

David Rohde is the senior executive editor for national security at NBC News. A Pulitzer Prize winner who previously worked at the New York Times and the New Yorker, his latest book is Where Tyranny Begins: The Justice Department, the FBI and the War on Democracy .

Money blog: Supermarket giant announces Boxing Day closures; hugely popular UK district plotting tourist tax

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By Dan Whitehead , West of England and Wales correspondent

The number of second homes being put up for sale in one part of Wales has increased by more than 250% - as homeowners and businesses criticise the Welsh government's council tax premium.

Many councils in Wales now charge an inflated tax rate for second homes, up to 300%, with the aim of freeing up rarely used housing stock for locals and generating income.

In Pembrokeshire, the council tax premium increased to 200% in April, trebling the cost for homeowners and leading to many selling up.

Figures show that this July 135 second homes were listed for sale in the county, a rise of 255% compared to the 38 on the market at the same time last year.

Despite the influx of listings, actual sales are at a record low.

Estate agent Hamptons says second home sales accounted for just 4.5% of sales in Pembrokeshire in the first six months of 2024 - compared to 21% a decade ago.

Local agents say the properties coming onto the market are too expensive for first-time buyers - and that many homes are being listed in a loophole to avoid the increased tax.

Read the rest of Dan's report here:

Workers should still receive pensions from their employers, even if they don't pay into it themselves, a leading thinktank has said.

The Institute for Fiscal Studies has proposed employees should receive an employer pension of at least 3% of total pay, irrespective of whether they also contribute (currently you have to pay in to qualify for your employer to match you - the amount they contribute depends on the company).

But the proposed change would particularly benefit women, part-time workers, young adults and lower earners, it was suggested.

It could also benefit 22% of private sector employees who either opt out of their pension scheme, or who are not automatically enrolled due to their earnings being too low.

The age range targeted by automatic enrolment should also be widened from 22 to state pension age to 16 to 74 to try and help more people in paid work save for later life.

The IFS has also suggested default employee contributions should be targeted at people on average incomes and above, to help middle and higher earners better supplement their state pension.

For example, the IFS has suggested a 12% default contribution rate of earnings above £35,000.

Less than half of private sector employees who save into a workplace pension contribute more than 8% of their earnings, researchers said.

Our business presenter Ian King  investigated the retirement crisis facing the country earlier this summer - read his analysis here:

A scenic reservoir that went viral during the pandemic has gone up for sale (once again) and could be yours for £25,000...

Brombil Reservoir in Margam, Neath Port Talbot, saw a surge in visitors during COVID after millions viewed it on a TikTok about the UK's hidden gems.

In 2023 it first went up for sale for £75,000.

Speaking to the BBC at the time, estate agent Robin James said: "It's a one-off, to be honest, it's not something that's ever come up in the 24 years that I've been here."

Well, far from being a one-off, it appears to have spent more time on the market than off.

With a guide price equivalent to an average home in the area, it seems the sale didn't go as planned and its new owners put it back on the market (reportedly an hour after buying it).

The land was put back on the market on 27 February this year at £30,000 and was bought for half that on 11 March, according to the BBC.

Now it has a new guide price, of between £20,000 and 25,000.

But while it may seem cheaper than buying a house, it's not without its liabilities.

Samantha Price, who handled the sale for Watts & Morgan, told the BBC in March: "Brombil is actually high risk, because it is above residential units, so it's quite important that those items on that report are done within the set criteria."

Expedia has launched its first loyalty programme in the UK. 

The One Key scheme is available for free for travellers who book flights, holiday homes, hotels, car rentals and activities on the travel website as well as Hotels.com and Vrbo. 

It works by allowing you to earn a percentage of the programme's reward currency, called OneKeyCash, on purchases. 

You can also earn the currency with most airline loyalty programmes, meaning you can get the rewards and still claim your frequent flier miles.

£1 of OneKeyCash equals a £1 discount on eligible bookings. 

The amount you earn on each booking depends on whicj one of the four tiers you are on. 

You move through the tiers by booking more trip elements, e.g. flights, rental cars and hotels. 

With each higher tier, you can access better savings. 

The tiers are: 

• Blue members - save 10% or more with member prices.
• Silver members - five trip elements per year - access to savings of 15% or more; earn rate can reach 3% in OneKeyCash for stays at VIP access properties, plus a perk like food and beverage extras. 
• Gold members - 15 trip elements per year - save 20%; earn rate can reach 4% in OneKeyCash for stays at VIP access properties; a perk like food and beverage extras and room upgrades.
• Platinum members - 30 trip elements per year  - access to savings of 20% or more; earn rate up to 6% in OneKeyCash for stays at VIP access properties; perks like food and beverage extras and room upgrades. 

Here's an example: A family of five staying five nights in a holiday home, flights and a car for five days would equal 15 trip elements. This would then unlock Gold status. 

Or, a 10-night family holiday in a hotel, with flights, a rental car for 10 days, four activities and one airport transfer would equate to 30 elements, which would unlock Platinum status.

VIP access properties are stays that consistently receive high guest reviews on Expedia and meet the sites' quality standards. 

Your membership tier resets each calendar year. The smallest booking fee you are able to gain rewards on is £20. 

Your OneKeyCash will not expire as long as you earn or use it at least once in 18 months. 

It might be too soon to be talking about Christmas, but this is a bit of an early present for some retail workers...

More than 300 John Lewis and Waitrose stores will remain closed on Boxing Day and New Year's Day, despite the holiday being seen as a lucrative day for retailers.

It comes as there has been a growing call to give retail staff the time off over the festive period, with Home Bargains set to close all of its branches on Christmas Day, Boxing Day and New Year's Day.

Big brands, including Wilko and The Range, closed their stores on the 26 December last year, so there is potential for more to follow suit again this year.

Some premium Waitrose sites attached to petrol stations will remain open, and as well as the John Lewis in Trafford and Stratford shopping centre. 

The boss of Octopus Energy has said suppliers should "be helpful" to elderly people losing their winter fuel payments.

Greg Jackson, who founded Octopus in 2016, said while some people were receiving it who didn't need it, "there's grey area of people losing it that need it - that's where we can help".

Winter fuel payments will now be restricted to just those receiving pension credits, which means about 10 million people will lose out this winter. About 11.5 million people previously received it.

The government argues it is right to means-test the benefit, worth up to £300, in order to tackle what it calls a “black hole” in the public finances.

But it has prompted outcry, including from some Labour MPs, with critics pointing out that pension credit only tops up income to £11,300 a year for individuals, meaning many who do not qualify could still struggle to pay bills.

Mr Jackson, who has been vocal in his support for previous Labour policies, said: "In these transition periods, it's easy for people to kick and scream.

"Alternatively, companies and others can say: 'How do we make this work in a way that is best for Britain and, in our case, best for our customers?'"

He added that the government has got to "make difficult decisions. So now let's be helpful in making sure that when you make those decisions, we can look after the people who will be worst affected."

However, ministers should keep a "close eye on the impact" of the policy if this winter is colder than usual, Mr Jackson said, and be "ready to act" if more support is needed.

Last year, his company's UK energy retail arm took on £69m of costs to lower customer bills.

The comments come just weeks before energy bills are due to get more expensive, after Ofgem increased the quarterly price cap, meaning bills are set to increase an average of £149 from October.

The average price tag on a home has jumped by nearly £3,000 this month, according to Rightmove.

Across Britain, the typical price being asked for a home coming on to the market increased by 0.8% or £2,974 to reach £370,759.

The price increase has come because the housing market in general appears to be recovering - compared to where it was this time in 2023.

Mortgage rates have been edging down, property choice has grown and earnings are rising faster than inflation and house price growth, all contributing to a market rebound.

Rightmove said the average property is still taking 60 days to find a buyer, which is three days longer than at this time last year, suggesting that buyers are taking their time to find the right home at the right price.

This means homeowners shouldn't let the increased activity make them feel over-optimistic and should still price competitively to sell their homes.

By James Sillars , business reporter

The focus of financial markets this morning is firmly on the US central bank.

The Federal Reserve is widely expected to cut interest rates for the first time since early 2020 on Wednesday, signalling a long-awaited drop in borrowing costs ahead.

The easing in the inflation crisis, which was largely caused by Russia's invasion of Ukraine, and a slowdown in US growth is allowing the Fed to move.

But investors are increasingly pondering whether the rate-setting committee will opt for a bigger cut than the 0.25 percentage point reduction most had initially expected.

They cite data suggesting US rate policy is too restrictive given weakening economic fundamentals.

The effective split in market opinion over a 0.5 percentage point reduction pushed the dollar down against major currencies. It was trading a third of a cent lower versus the pound at $1.31.

As for stock markets, the FTSE 100 and US futures showed a fairly muted start to the week amid market closures for public holidays in China and Japan.

The FTSE was four points lower in early deals. Miners saw the main declines.

Analysts credited renewed economic weakness in China revealed in data over the weekend.

The Scottish Highlands could become the latest place in the UK to introduce a tourist tax.

If implemented, it would allow hotels, B&Bs, campsites and holiday lets in the hugely popular mountainous region to charge overnight guests an additional fee.

The money would be used by local councils to reinvest in services and facilities largely used by tourists and business visitors.

Last year, politicians in Scotland took the first step towards tourist taxes after passing the Visitor Levy (Scotland) Bill which allows councils that want to introduce a visitor levy to do so, after consultation with local communities, businesses and tourism organisations.

Highlands Council plans to start its three-month consultation later this year - with a price for the tax yet to be determined.

"Tourism is one of our most important sectors and the levy would form an essential part of how we sustain, maintain and develop the services and infrastructure which the sector relies on," Inverness councillor Ken Gowans said in favour of the tax.

"The upcoming consultation will give everyone the opportunity to put forward their views on how a levy scheme should operate and what the proceeds should be spent on."

The Highlands - which made National Geographic's Best of the World list last year - attracts millions of tourists annually and lays claim to hotspots such as Ben Nevis, Loch Ness and John o' Groats.

Various other UK cities have already implemented additional visitor fees, including Manchester, which charges £1 a night on most paid accommodation establishments across the city.

A £2 per room per night additional fee was implemented across Bournemouth, Christchurch, and Poole in July.

Under the Visitor Levy Bill, the earliest any form of tourist tax across Scotland could come into force would be spring 2026.

Every Monday we get an expert to answer your money problems or consumer disputes. Find out how to submit yours at the bottom of this post. Today's question is...

My holiday cottage cancelled my booking 24 hours before my holiday, there are no alternative options similar to what I booked for a similar price. Do they need to pay me for the extras of booking last minute? Dave

We asked Scott Dixon, AKA The Complaints Resolver , to answer this one...

The first thing you need to do is check the T&Cs and see what their cancellation policy is.

Do they allow a host to cancel a booking with only 24 hours' notice?

A trader cannot revoke a contract unless the T&Cs include a fair term that stipulates how and when they can do so - the Consumer Rights Act 2015 protects you here.

So are they in breach of contract?

If so, you can typically expect a full refund via the same payment method (you do not have to accept a credit note/vouchers), although that does not address the problem of finding alternative options comparable to what you booked at a similar price.

A refund would only cover the original price and any extras paid to restore you to the original position you would have been in before you entered into the contract.

If they won't give you a refund, as a last resort you can take your case to the Small Claims Court in England and Wales, or use the respective legal routes in  Scotland and Northern Ireland .

But again, legal action would only cover the original price you paid.

Go to third parties

If you booked the holiday cottage via a third-party listing site such as Airbnb, check their host cancellation policy. The listing site may levy penalties on the host if they have breached the cancellation policy.

If you booked it with a letting agent, you ought to be offered a full refund and possibly compensation. 

You could try and claim on any travel insurance policy you may have in place.

If you are struggling to get a refund, you can contact your bank or credit card provider within 120 days of payment and raise a chargeback to dispute the transaction.

Stress there has been a "breach of contract" under the Consumer Rights Act 2015, as chargebacks are often rejected on the first attempt.

Your bank or credit card provider will reverse the payment and give the holiday cottage provider an opportunity to present their case.

If you paid at least a deposit by credit card and the stay was more than £100 (likely to be the case), you can make a S75 claim under the Consumer Credit Act 1974 against the credit card provider who is jointly liable.

Again, you need to cite "breach of contract" under the Consumer Rights Act 2015 and push hard on it.

One route to get the additional compensation you asked about

If your credit card provider or travel insurance provider rejects your claim, ask for a deadlock/final response letter so you can refer your complaint to the  Financial Ombudsman Service .

This usually means that they need to restore you to the position you were in before you entered into the contract and whether it is appropriate to award compensation for any distress or inconvenience caused.

This feature is not intended as financial advice - the aim is to give an overview of the things you should think about.  Submit your dilemma or consumer dispute via:

• The form above - you need to leave a phone number or email address so we can contact you for further details
• Email [email protected] with the subject line "Money blog"
• WhatsApp us  here

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