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How to create a business plan.

Oct 28, 2024 | 5 minute read

Learn to build a business plan that helps you focus your goals so you can start achieving them.

Whether you’re seeking investments or starting a business, a solid business plan is essential. It serves as a roadmap, providing you direction and clarity as you navigate the journey ahead. By outlining your goals and evaluating your ideas, a well-crafted business plan not only guides your efforts but also sets the foundation for your success.

Four important reasons to build a business plan:

Decision-making: Writing a business plans help you clear up confusion by putting specific information down in black and white. Making tough decisions is often one of the hardest and most useful parts of writing a business plan.
A reality check: The first real challenge after deciding to launch a new venture may be writing a business plan. Through the process, you may realize your business idea isn’t quite as solid as you thought. This may feel like extra work, but the effort you put into improving your idea during this step can significantly boost your chance of future success.
New ideas: Discovering new ideas, different approaches and fresh perspectives are invaluable parts of the business planning process. Working closely with your concept can lead to unexpected insights, shifting your business in the right direction.
Developing an action plan: Your business plan is a tool that will help you outline action items, next steps and future activities. This living, breathing document shows where you are and where you want to be, with the framework you need to get there.

Business plan guide: how to get started

Use this exercise to gather some of the most important information. When you're ready to put an outline together, follow our standard business plan template (PDF) and use this business plan example to learn how to create a business plan. Once your outline is finalized, you can share it with business partners, investors or banks as a tool to promote your concept.

A well written business plan should contain:

Vision: Your vision statement sets the stage for everything you hope your business will accomplish going forward. Let yourself dream, pinpointing the ideas that will keep you inspired and motivated when you hit a bump in the road.
Mission: A mission statement clarifies the purpose of your business and guides your plan, answering the crucial question, "Why do you exist?"
Objectives: Use P business objectives to define your goals and priorities. What are you going to accomplish with your business, and in what timeframe? These touchstones will drive your actions and help you stay focused.
Strategies: Your objectives describe what you’re going to do, while your strategies describe how you’re going to do it. Consider your goals here, and identify the different ways you’ll work to reach them.
Startup capital: Determine what your startup expenses will be. Having a clear idea will allow you to figure out where the money is coming from and help you spend what you have in the right areas.
Monthly expenses: What do you estimate your business’ ongoing monthly expenses will be? This may change significantly over time — consider what your expenditure could be immediately after launch, in three months, in six months and in one year.
Monthly income: In order to cover your expenses (and hopefully make a profit), you will need to estimate your income. What are your revenue streams? It's always wise to diversify your income. That way, you won’t be tied to one stream that might not be profitable as quickly as you need it to be.
Goal-setting and creating an action plan: Once you have all the specifics outlined, it's time to set up the step-by-step action items explained in this printable business plan outline . This process will utilize the hard work you've already done, breaking each step down in a way that you can follow.

A business plan isn’t necessarily a static document to set-aside. With this roadmap you will be better equipped to adjust your priorities, stay on track and keep your goals in sight.

Business plan: an outline

Use this exercise to gather important information about your business.

Answer these questions to start your planning process. Your responses will provide important information about your business, which you can use as an overview to develop your plan further.

What is your dream?
What do you feel inspired to do or create?
What keeps you motivated, even in the face of uncertainty?
Why does this business exist?
What purpose(s) or need(s) does it fulfill for customers?
List the goals of your company, then number them in order of importance.
What will the business accomplish when it’s fully established and successful?
How much time will it take to reach this point?
For each goal or objective listed above, write one or more strategies or actions required to complete it.

Startup capital

List any and all startup expenses that come to mind.
Estimate the cost of any expenses you can.
List the most likely source of the funding.
Circle the high-priority expenses.
Assess whether your available capital is going toward the high-priority items. If not, reconsider the way you will allocate funds.

Monthly expenses

If you can, estimate your business’ ongoing monthly expenses immediately after launch, in three months, in six months and in one year.
If you can’t, what information will you need in order to estimate your expenses?
Make sure to account for all expenses, even the seemingly small ones.

Monthly income

What are your revenue streams? Estimate your monthly income accordingly.
Which revenue sources deliver fast or slow returns? Are there other sources you could consider to diversify assets?
This step will also help you determine the price you need to charge and volume you need from your product or service to meet your income goals.

After completing your outline, reference your responses as you work through a traditional business plan guide . This next step will allow you to expand and add more detailed information to your plan.

Starting a business requires a comprehensive plan . From there you can make decisions, test ideas, uncover new perspectives and create an actionable roadmap.

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This discussion is intended to be informational only and is not exhaustive or conclusive. It is not intended to serve as a recommendation or solicitation for the purchase or sale of any particular product or service. It does not constitute advice and is issued without regard to any particular objective or the financial situation of any particular individual. Some of the information provided has been obtained from sources believed to be reliable, but is not guaranteed as to accuracy or completeness. Other information represents the opinion of U.S. Bank and is not intended to be a forecast of future events or a guarantee of future results. U.S. Bank and its representatives do not provide tax, accounting or legal advice. Each individual's financial situation is unique. You should consult your tax, accounting and/or legal advisor for advice and information concerning your particular situation.

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1. Design Your Brand

Decide What To Sell

Identify your ideal customer, choose a name, 2. write a business plan, secure funding, crunch the numbers, file the paperwork, 3. stock your shelves, connect with vendors, make an inventory management plan, 4. attract your first customers, plan promotions, launch a customer loyalty program, explore other marketing opportunities, 5. invest in the right pos system, how to open a retail store with pos nation, how to open a retail store: 7-step checklist.

Ask any small business owner and they’ll agree: the rewards of small business ownership are well worth the hard work.

By opening a retail store, you can become a cornerstone of your community, providing them with high-quality products and even better customer service. Beyond these feel-good benefits, you can also turn a significant profit.

But your retail store’s grand opening might seem impossibly far away. With so much to learn and so much to do, getting started might seem daunting.

That’s why we’ve created this quick but comprehensive guide to share how to open a retail store. We’ll walk you through every step of your small business journey — from crafting your business plan to making your first sale .

1. Design Your Brand

Before you make any other decisions, you need to carve out an identity for your retail store and decide what you’ll sell, who you’ll sell to, and what you’ll call your store.

Let’s take a closer look at each of these decisions and explore how to create a retail brand that appeals to customers and stands out from competitors.

The most important choice you’ll make as you learn how to open a retail store is what to sell.

This decision isn’t just about what will be profitable; you should also keep your unique interests and expertise in mind.

If you keep up with all the latest fashion trends, you might have luck opening a boutique. If you’re a cigar connoisseur, perhaps you should launch a tobacco store. If you’re a proud resident of a tourist-friendly destination, consider opening a gift shop .

Specializing in products that you’re passionate about will help you connect with customers and build their trust in your brand.

Now that you know what you’re selling, the next step is identifying and learning about your ideal customer. Who will your products appeal to? What are their likes and dislikes? What are their demographics?

Understanding this ideal customer will help you make informed decisions and ensure that your products, customer service, and marketing strategies appeal to the right people.

You know what you’re selling and who your ideal customer is, and now it’s time to choose a name for your business that matches.

Naming your retail store is a fun but crucial decision. This name will be displayed in large letters on your sign, printed on all of your receipts, and passed around by word-of-mouth from happy customers.

Here are a few important steps to take before you commit to a store name:

Ask for feedback from family and friends who fit your ideal customer’s profile.
Thoroughly search the internet to make sure your store’s name is unique.
Conduct a trademark search to learn whether you can get a trademark or service mark for your store’s name.

Renaming your business can be a costly and inconvenient endeavor, so choose wisely the first time.

You’re one step closer to turning your retail store dreams into a reality! Now it’s time to make a concrete game plan for opening your doors.

Here are three essential elements of a comprehensive retail store business plan .

Opening a retail store takes more than hard work and a great idea; it also requires a significant financial investment.

Whether you’ve been saving up for years or you plan to apply for loans, your business plan should cover exactly how you plan to secure funding for your small business.

Your business plan should also include a thorough financial plan, outlining how much you plan to spend and how much revenue you hope to bring in through sales.

Here are some key expenses to include in your prospective budget:

Your location’s lease or purchase price
Utilities and maintenance
Initial and ongoing inventory
Your employees’ pay and benefits
Retail equipment like shopping carts, shelving, and point of sale (POS) technology

Don’t forget to include a buffer for any unexpected expenses.

Your next step in how to open a retail store is to make sure that your small business is legally compliant.

You likely need to apply for federal, state, and local business licenses and permits, so make sure to start the process as early as possible. Here’s what to expect during this process:

Apply for an Employee Identification Number (EIN) .
Select your business structure and file appropriate tax documents.
File for a business operation license with your state, county, or city.
Apply for a seller’s license if needed. Depending on your inventory, you may need specific permits or licenses, especially if you plan to sell tobacco or alcohol products.

The Small Business Administration and your state government’s website are great sources of information about the legal requirements of owning a retail store.

With the groundwork laid, it’s time to stock your store’s shelves with products. Here are three ways to get started on the right foot when it comes to inventory management.

Product vendors are a critical piece of the retail store puzzle. They supply your store with high-quality products, provide timely deliveries to prevent stockouts, and let you expand your offerings when new items hit the market.

That’s why it’s important to establish solid connections with vendors you can trust. Evaluate your options, negotiate your contract, and ensure constant communication throughout your business relationship.

Having the best vendors at your side only matters if you have an effective inventory management strategy .

The easiest way to track your stock levels and prevent stockouts is to invest in a POS system with built-in inventory management features. This powerful tool monitors your stock levels in real time, detects shrinkage, and generates purchase orders when you’re running low on a certain product.

With the right POS system, you’ll be able to provide the largest selection to your customers, keep up with seasonal changes in your sales, and optimize your offerings to meet your shoppers’ wants and needs.

You’ve built a brand, secured a business license, and stocked your shelves — now all you need to do is attract shoppers.

Marketing is a critical part of how to open a retail store, letting you bring new customers through your door and keep them coming back. Here are three strategies to grow your customer base and keep the sales flowing.

There’s nothing customers love more than the opportunity to save money — which is why enticing promotions are a must-have for effective retail marketing.

Offer a mixture of buy one, get one (BOGO) deals, mix and match sales, flash sales, and storewide coupons to encourage customers to spend more during each visit to your store.

Did you know that it’s four to five times more expensive to attract a new customer than to retain an existing one?

To keep your sales high and marketing costs low, we recommend launching a loyalty program . Your loyalty program should reward shoppers for choosing your business by letting them earn points and unlock exclusive perks. The more they spend, the more they’ll save — which means it’s a win-win.

If you’re hoping to get a head start on attracting customers to your store, you can also leverage digital marketing techniques . Here are a few approaches to consider:

Embrace the power of e-commerce and create an online store for your business.
Use social media to share your small business story and highlight your product selection.
Send text and email updates to customers using your POS system’s marketing integrations.

These strategies can expand your reach and help you spread the word about your retail store.

If you’re still following along, you’ve probably noticed a common thread in all our tips: a powerful POS solution is the foundation of retail store success.

That’s why our final and most important tip is to choose a POS system designed to help your store survive and thrive. Here are just a few ways to use your store’s POS system:

Keep your checkout lines short with features like customizable hotkeys and smart search.
Track your inventory levels in real time, automatically generate purchase orders, and identify shrinkage before it affects your bottom line.
Learn about your store’s performance and your customers with advanced sales reporting .
Attract new customers by launching a loyalty program, planning enticing promotions, and using marketing integrations.
Save time and simplify the payroll process with an employee time-tracking system.

The right POS system has the power to keep your store running smoothly and profitably, giving you more time to spend connecting with customers and growing your business.

Congratulations! Now you know how to open a retail store, and you’re ready to take your first steps toward small business success.

Looking for support as you start your journey? See how this specialty retailer relied on POS Nation to simplify their operations, save time, and provide excellent customer service.

If you’re ready to see how our feature-rich software and industry-leading support team can give your retail store the best chance of success, schedule your live demo today!

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How To Build a Financial Model For a Retail Shop

October 21, 2024

Every business needs a budget. Whether you want to understand what’s your breakeven , your valuation or create a financial model for your retail shop business plan, you’ve come the right way.

Whether you sell food, commodities, clothing or auto parts, in this article we’ll explain you how to create powerful and accurate financial projections for a retail shop business.

1. Forecast customers & transactions

The first thing you need to do is to estimate the number of customers you will acquire, and retain, over time.

The number of customers who make a purchase each month is the result of:

Customers = New customers + Repeat customers

New Customers

New customers are a function of the visitors that enter your store, and a conversion rate. For example: 400 visitors per week x 30% = 120 transactions a week.

Repeat Customers

There are multiple ways to do this.

The most accurate (and flexible) is to set a number of assumptions:

The percentage of your customers who are repeat (those who will buy 2 or more times in their lifetime from your store)
The purchase frequency (when they buy again, how many times a year do they do so?)
The churn rate (they will likely not buy forever, instead they might churn in average after 10 years or so)

This will allow you to accurately forecast the transactions made by repeat customers in the future and obtain something like the chart below.

2. Forecast revenue

Once you have estimated the number of transactions, both from new and repeat customers, you can calculate revenue.

Revenue can be obtained by first segmenting transactions into different product categories (with each different prices and costs) for maximum accuracy.

You can do so by setting percentages for product sales mix as shown below. Note that in this example we’ve also added launch and end dates (if you plan to start and discontinue product lines at different times in the future.

3. Forecast expenses

In addition to the one-off startup costs, you must also consider the total recurring cost of running a retail store. Those expenses include:

COGS (Cost of Goods Sold)

COGS include the expenses incurred to source (or manufacture) the products you sell. As a retail shop, COGS typically include the costs to source but also any transport, customs (if any) and packaging costs.

Download an expert-built 5-year Excel financial model for your business plan

Monthly and hourly salaries are one of the major expenses you must consider. There will possibly be a store manager in addition to a receptionist and operations staff. If you are the store manager, that is one less expense to think about. Make sure that you must budget your payroll expenses accordingly.

The average hourly salary of retail store staff depending on the role can be anywhere between $10.91 an hour to $14.64 an hour as per indeed .

Marketing & Advertisements

A retail shop business typically requires to invest in marketing. You need to market your business through both online and offline channels.

Marketing expenses are usually high during the first 6 to 12 months when you need to promote your business aggressively to reach a stage of self-sustaining organic word-of-mouth growth.

For offline marketing, it is possible to reach a large audience through advertisement models like billboards, vehicle branding, pamphlets & flyers, gifts & cards, coupons, etc.

Similarly, for online marketing, you can maximize your reach through Google and other search engine ads, social media ads (such as Facebook, Instagram, & Twitter ads), influencer marketing, etc.

The online advertisement cost-per-click (CPC) will depend on the audience size and geographic location you are targeting.

Utility Bills & Janitorial Services

Do not forget the utility expenses such as water and electricity bills. There will be cleaning services, too. The national average for commercial cleaning, according to Home Advisor , is $0.11 per square foot. You can also go for hourly rates or a fixed monthly rate. The overall cost will depend on your store size and the type of cleaning you need.

Bookkeeping Fees

In addition to an accountant for the quarterly and annual reports, you can opt for an accounting software like Quickbooks which can cost anywhere between $12.50 a month to $90 a month depending on the plan you are selecting.

Even though you are not manufacturing your own products, but only selling them through your retail store, you must get insurance.

The most important one is the product liability insurance. There are no standard rates available, and the asking premium rate depends on the risk propensity of the products you are selling.

Apart from that, you must consider property insurance, workers’ compensation, directors’ & officers’ insurance, and more.

Additional Recurring Costs

There will be a few more additional recurring costs that you should consider while preparing your budget. Those costs include:

POS System : There is a one-time hardware expense that will cost up to $1,100. Additionally, there is software expense that can be anywhere between $39 to $69 a month.
Website (Optional) : If you have a supporting online store or a supporting website to provide information about your store, there will be domain renewal, hosting, and website maintenance charges
3PL (Optional) : If you have a supporting e-commerce or online shop, you will have a recurring third-party logistics cost, which can be anywhere between 20-30% of your total inventory (if you opt for 3rd party warehousing)

4. Build your P&L And Cash flow

Once we have forecasted revenues and expenses, we can easily build the profit-and-loss (P&L) from revenues down to net profit . This will help you to visualise key financial metrics such as Gross Profit or EBITDA margin as shown below:

The cash flow statement, in comparison, needs to include all cash items from the P&L and other cash movements such as capital investments (also referred as “Capex”), fundraising, debt, etc.

Cash flow is vital as it will help you understand how much funding you should get, either from investors or the bank (SBA loan for example) to start and run your own retail store.

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Starting a Business | Listicle

Types of Business Plans: Ultimate Guide for Business Owners

Published October 2, 2024

Published Oct 2, 2024

WRITTEN BY: Mary King

This article is part of a larger series on Starting a Business .

1. One-page Business Plan

2. traditional business plan, 3. business model canvas, 4. startup plan, 5. lean canvas, 6. strategic plan, 7. feasibility plan, 8. operations plan.

9. Contingency Plan

10. Expansion Plan

11. nonprofit business plan, business plan writing services, bottom line.

Starting or growing your small business requires careful planning. A business plan is a detailed document outlining the goals, strategies, operational plans, and risks associated with starting or running a business. Various types of business plans will be your roadmaps to securing funding, planning for growth, or making big decisions through your business’s lifespan.

In this guide, I’ll walk you through different types of business plans, discussing their format and ideal use cases so you can make the best moves for your business.

Key Takeaways:

Business plans are not a one-time project when you start your business.
You may use one or more types of plans in business to make major changes throughout its lifespan.
The type of business plan you need varies by your industry, business size, and goals.

The one-page business plan is for very small businesses like side hustles. A one-page business plan is a great way to get your ideas on paper and work out the fundamentals of the business without doing a bunch of high-level calculations that aren’t relevant to your micro-business.

With this plan, you’ll write a couple of sentences for a few important business sections. Your one-page business plan should include information on your business model (how will your business make money?) and competitive advantage (what will your business do better than competitors?).

You should plan on spending around an hour to write out a one-page business plan. The simplified financial projections will be the most challenging and time-consuming. Most likely, you will need to do research online to get accurate income and expense estimates.

Key Sections

To create a one-page business plan, you’ll need to write one to two sentences to answer the following questions:

Problem: What problem will your business solve?
Solution: What will your business provide to solve that problem?
Business model: How will your business make money?
Target customers: What type of people will buy your product or service?
Promotion: How will your target customers learn about your business?
Competitive advantage: What will your business do better than the competitors?
Financial projections: How much money do you need to start? How much will you earn every month? And how much will you spend every month?
Funding required: How much money do you need to start the business?

A one-page business plan is a great fit for side hustles like dog walking, small handicrafts, and cottage food businesses. If you are helping your child start a business, a one-page business plan is a good exercise to help prepare your child for thinking through their business plans.

Get started writing a one-page business plan by downloading our free template.

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One Page Business Plan Template

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The traditional business plan is more thorough than the one-pager. A traditional plan may contain over 40 pages of info about your business. Typically, you’ll use this plan to get funding, such as a larger loan from a bank. You may also use a traditional business plan to attract investors.

You should plan on spending at least 30 hours creating a well-researched business plan. In addition to writing the plan, you will also spend time doing market research and creating financial projections.

Most small business owners can easily do the research and write a traditional business plan. Where most have difficulty is financial projections, which require creating several financial documents. If you don’t have a financial analysis background or interest, it’s a wise strategy to purchase a business plan software that walks you step-by-step through the financial projection process or hire an accountant to assist.

A traditional business plan has many sections and can be 30 to 40 pages (or more) in length. The length of your traditional business plan will vary depending on your business type, industry, and the amount of information you include in your appendix.

Opening organizational and legal pages: The opening pages of your business plan need to be a cover page, a non-disclosure agreement, and a table of contents.
Executive summary: This one- to two-page section is a summary of the whole plan, highlighting the key details to encourage potential investors, business partners, or banks to read the full business plan.
Company summary: Discuss the basics of the company such as its history, location, facilities, ownership, and competitive advantage.
Products and services: Talk about how your business makes money (business model), its products or services, and future products or services.
Market and industry analysis: This section analyzes your potential customers and industry. Include any data here about your current (or ideal) customers, business industry, and competitors.
Marketing strategy and implementation summary: How will you reach your customers? Discuss your marketing, sales, and pricing strategy.
Management and organization summary: Who will own and operate the business? If your business isn’t open yet, give a compelling reason why your background will make it a success. Include information on any managers in the business as well.
Financial data and analysis: Here you want to show in charts and graphs how your business will be a success. You will include financial projections such as a profit & loss statement, projected cash flow, and business ratios.
Appendix: Any documents or information that doesn’t fit in the above categories goes in the appendix. You may want to include documents such as a floor plan, trademark, or marketing materials.

Small to medium-sized businesses that may need investors, grants, or business loans to get started can benefit from a traditional business plan. Beyond ensuring you get the funds you need, going through the process of writing a traditional business plan will help you refine your idea and answer questions you may not have considered.

A business model canvas is a visually dynamic one-page business plan. This business plan model was developed in the early 2000s as a collaborative tool to help fast-moving, customer-focused businesses quickly collaborate on a business plan. The Business Model Canvas (BMC) is a strategic tool that lets you visualize your business model.

Many business owners prefer to use the BMC because it can be done as a visual exercise with the leadership team. Together, the team can go through each section and provide high-level input. Once you create the basics of the BMC, it’s easy to share with others. The contents can be summed up on one page, whereas the traditional plan above will likely be at least 40 pages.

Source: Strategyzer

Key partners: What people or organizations (outside of the business) help your business operate such as suppliers or referral sources?
Key activities: What crucial activities need to be done in the business so that you can serve your customers?
Key resources: Who are the key people (inside the business), and what are the patents, places, and machines that the business couldn’t operate without?
Value proposition: What value will you be delivering to customers? What customer problems are you trying to solve?
Customer relationships: How will you maintain relationships with your customers?
Channels: What channels will you use to reach customers and maintain relationships?
Customer segments: Who are the most important types of customers or businesses that will be buying your products or services?
Cost structure: What are the largest expenses in your business? List at least seven.
Revenue streams: In what ways will your business earn money? If possible, list specific numbers such as the average earned per product or service performed.

The Business Model Canvas is great for team collaboration. It is a great business plan for startups and businesses that need agility. If you need to raise funds for your business, you’ll need to supplement your BMC with financial projections.

A startup plan is similar to a traditional business plan. However, startups tend to be larger, more complex businesses than the typical small to midsize business. A startup business plan will have many of the same sections as a traditional business plan, but the financial projections for a startup plan will typically include many more dynamic visualizations to dramatically illustrate the idea. Startups are characterized by fast growth and a need for large initial investments, so startup business plans tend to focus a lot of energy on finding funding.

You’ll see a lot of the same sections in a startup business plan as in a traditional business plan, though the key sections may have a different focus.

Opening organizational and legal pages: A non-disclosure agreement is standard for a startup business plan. This section also includes business information like the addresses and contact information of key owners and partners.
Executive summary: This is a high-level summary of the entire business plan that enables potential investors and business partners to quickly understand the key elements of your proposed business.
Company description: This section covers your business mission, vision, and goals. It should also list your legal structure (i.e. sole proprietorship, LLC, corporation), and briefly describe what sets your company apart from competitors.
Market research and analysis: Demonstrate your understanding of the market size, trends, competition, and customer demographics. Potential investors want to feel confident that you know the industry you are entering.
Organization and management: Introduce key team members, including a brief description of their roles, responsibilities, and qualifications. If you have an advisory board (not uncommon for startups) list those key stakeholders, too.
Products or services: Explain how your product or service solves a problem or meets a market need. Include specific mention of any intellectual property or proprietary technology you have or will develop.
Marketing and sales strategy: Outline your plan for attracting and retaining customers. Include details about your pricing strategy, sales tactics, and distribution channels.
Financial projections: It can be tricky to generate accurate financial projections if you are proposing a new business model or developing a disruptive technology. Financial projections in a startup business plan are generally more speculative than in a traditional business plan and are based on hypotheses about customer acquisition, market penetration, and growth. Startup plans may only include one-, three-, and five-year projections and leave off longer-term 10-year projections.
Funding request: Detail how much money you need and what you’ll use it for. Startups tend to have multiple funding “rounds,” so list the timeline and requested funds for each funding round here.
Appendix: As with a traditional business plan, any documents—like design plans, licenses, or patents—that don’t fit in the categories above, add them to your appendix.

A startup business plan is the right fit for technology-based and industry-disrupting businesses. If your product or service is novel and expected to grow quickly, a startup business plan can also work for you. Any business with a focus on quickly raising lots of initial capital from investors or banks can benefit from following this business plan format.

The Lean Canvas combines the Business Model Canvas template with the focus of a lean business plan. A Lean Canvas is ideal for startups that want a more focused, streamlined business plan. The Lean Canvas is great for quickly recording a business idea based on a gut feeling or instinct.

A Lean Canvas plan focuses on the customers’ problems and the solution your business will provide. Unlike a traditional business model, a Lean Canvas is not heavy on financial projections. Like all canvas-based business plans, the Lean Canvas is also great for collaborating with other stakeholders or business partners to create a business plan.

These are the major sections of a Lean Canvas business plan. As with a Business Model Canvas, these sections are all laid out in a tile formation on a single page.

Problem: This section lists the one to three major problems your business will solve. It also typically includes a short list of one to three businesses that already exist to solve this problem.
Solution: These are the top features of your product or service that will solve the problems you listed in the first section. It should provide a clear vision of how your solutions directly solve the problems.
Key metrics: This is a short bulleted list of the key performance indicators you’ll track to measure your business’s growth and success. Customer acquisition cost, customer lifetime value, customer retention, and sales per customer are all common KPIs.
Unique value proposition (UVP): Describe what makes your business unique compared to your competitors.
Unfair advantage: This goes beyond your UVP to list exactly what your business can provide that other competitors cannot replicate. Many people think of this as the “moat” around your business.
Channels: These are the pathways you will use to reach your customer segments. Depending on your business type, you might list direct sales, social media, partnerships, government contracts, ecommerce platforms, or more.
Customer segments: Define the specific customer types or groups that will benefit from your business. Include a brief description of the likely “early adopters.”
Cost structure: List the major fixed and variable costs required to get your business started (permits, licenses, rent, etc.) and keep it running (marketing, salaries, etc.).
Revenue streams: List the ways your business will make money—subscriptions, direct sales, consulting fees, licensing, ecommerce sales, etc.

The Lean Canvas emphasizes agility and a customer-centered approach. It is great for startups that focus on experimentation and direct problem-solving for customers, like software-as-a-service (SaaS) companies. It’s not the greatest fit for a brick-and-mortar business like a retail or restaurant operation.

A strategic plan is a business plan that you write after your business is already operational. These plans are designed to help your business plan for growth in a specific area while staying aligned with your mission and core values.

A strategic plan will focus on long-term goals and objectives, laying out your path to achieving strategic milestones. Depending on your business type, those milestones might be growing sales in a specific region or obtaining a business certification, like a B Corp designation. Medium to large businesses commonly write strategic plans. But it can also be a good fit for small businesses that operate in challenging or quickly changing industries.

Your strategic plan needs to be clear, concise, and easy to understand. It should simplify your decision-making process, not complicate it. If you need support writing a strategic plan, contact a small business advisor at your local Small Business Development Center (SBDC), or book some time with a business consultant in your industry to get additional guidance.

Vision and mission statements: Starting with your vision statement or mission statement ensures you keep your strategic plan focused and design solutions that demonstrate your business values.
Organizational goals: Write down where you hope to see your business in three, five, and ten years. If you foresee changes on the horizon for your industry, include a brief description of the challenge and how you plan to react to it. Mention how you will grow your business and reach new customers at each milestone.
SWOT analysis: A SWOT analysis is a list of your business’s strengths, weaknesses, opportunities, and threats.
PESTEL analysis: This is typically a table that illustrates the external forces that influence your business. To create your table follow the acronym and list the political, economic, social, technological, environmental, and legal influences.
Current state: This is a description of the current state of your business performance and business operation. This section provides a baseline to compare your future business states, so you can more easily see your business growth.
Future state: This is a detailed description of the future state you see for your business, or where you hope the business will go.
Key objectives: This is a list of your major projects, initiatives, or goals; whatever activities you’ll need to undertake to get your business where you want it to be.
Strategies: Describe what needs to happen for your business to meet your stated goals. List what resources you will need (and when) to get there. This section should include a one-page action plan that summarizes each key action you plan to take and the planned timeline for each shift.
Key Performance Indicators (KPIs): List the KPIs or metrics you will use to measure your business’s progress toward your long-term goals. What will you measure, and how will you measure it?

Strategic plans are a great fit for established businesses that need to grow or refine operations and for businesses pivoting due to disruption from third parties or market forces (like supply chain disruption or inflation).

A feasibility study is like a rough draft of a business plan; it’s a “business plan lite.” A feasibility plan focuses on answering a single question: is this business idea viable? A feasibility plan or feasibility study helps you determine if a business idea will be profitable before you expend too much time or money to get the business off the ground.

Executive summary: As with other business plan types, the feasibility plan starts with a one-page executive summary. This lists the key takeaways from your whole plan, so you and other stakeholders can get the main information quickly.
Business idea: Clearly and succinctly detail your business idea. This is the foundation for the rest of the document, so make sure it is clear how your business will make money.
Demand analysis: This section is a summary of how many people, and what specific types of customers are likely to purchase your proposed product or service. List who they are, where they are located relative to your business, and other defining characteristics.
Market research: This section lists competitors in your market and looks at how your proposed business idea compares.
Risk analysis: This section should include foreseeable legal concerns (like any permits or licenses you’ll need to obtain), logistics issues (like supply chain logistics), and technical challenges (like needing to design an app).
Financial feasibility: This section includes costs like marketing, required staff, rent, and other costs as compared to your projected profits. These
Recommendations: This section is the “TL;DR” section of this feasibility plan. After considering all the information in the plan document, does the business idea get a thumbs up or a thumbs down? If the recommendation is that the business idea is not feasible, you should offer alternative ideas that may work instead.

Feasibility plans are a great first step before committing to writing a full, traditional business plan. Feasibility plans, or feasibility studies, are ideal for startups and any business that is offering novel products or services.

A lot of these business plans have focused on big questions like your business vision, the big problems your product will solve, and your projections for the future. An operations plan is focused on the day-to-day logistics and workflows that keep your business running. If other business plans focus on the “why” and the “what,” your operations plan is all about the “how.”

An operations plan is much shorter than a typical business plan. Key sections of an operational plan include:

Product (or service) delivery: This section describes how you deliver your product or service to customers. It covers every step of the process, from sourcing raw materials to final delivery. Service-based businesses should detail how services are scheduled and managed. Product-based businesses should include details about their manufacturing, inventory management, and distribution processes.
Supply chain management: This section focuses on the source of your raw materials. It lists your key suppliers, explains your purchasing strategy, and details how these materials arrive at your location.
Facilities and equipment: Provide information about your physical business spaces, along with the equipment and technology that you use to run your business. Depending on your business type, you might list office space, warehouses, retail locations, or manufacturing facilities. If you plan to schedule upgrades or additional equipment when you reach key milestones, mention that here.
Staffing and organizational structure: List your business’s personnel needs and management structure. Explain the key employee roles, the number of each employee you need, and how you plan to recruit, train, and manage these team members.
Operating model: Describe your typical work tasks and their workflows. How do customers place orders or book appointments? How are those orders communicated internally amongst your staff? How do you handle customer inquiries or complaints?
Quality control: Explain how you’ll monitor the quality of your products or services. Will you inspect and test products? Will you use secret shoppers?
Risk management: Identify common risks you encounter and your plans for mitigating those risks. Risks might include supply chain disruption, employee workplace injuries, customer injuries, equipment failure, or natural disasters.
Key metrics: List the major performance indicators you will track to measure your operational performance.

An operations plan is a great tool for businesses in complex industries and those with complicated supply chains. If your business combines any configuration of manufacturing, distribution, sales, and services, an operations plan will help you identify bottlenecks and keep you organized.

9. Contingency Plan (What-if Plan)

A contingency plan (also called a “What-if Plan”) helps your business prepare for unexpected events like changes in customer demand or market downturns. You can write a contingency plan at any stage in your business journey, whether you are a new or existing business. A contingency plan can help your business weather crises from natural disasters to cyberattacks.

Risk assessment: Identify the potential risks that can impact your business. Cyberattacks, data breaches, supply chain disruptions, and equipment failures are common small business risks.
Impact assessment: Evaluate the potential impact of each risk you identified. Consider revenue, employee, customer, and safety impacts. Prepare for both short- and long-term impacts.
Response strategy: Outline the specific steps your business will take to respond to each risk you listed. Be detailed and include alternatives to ensure your business is prepared for all variables. List the resources you’ll need for each strategy to ensure they are easily accessible if the worst happens.
Chain of command: Clearly articulate who should take responsibility for key tasks in your business in the event that you need to implement any of your response strategies.
Communication strategy: Describe how information about your business response to crises will be communicated to your team, your suppliers, customers, and the general public.
Training plan: Include a schedule and training details for how you plan to get your whole team on the same page for each response strategy.
Monitoring and updating: How will you monitor risk development? How often will you update your contingency plan?

Businesses in volatile industries (like ecommerce or technology) or those with complex supply chains (like manufacturers) have long created contingency plans. In the wake of the COVID-19 pandemic and multiple armed conflicts around the world, though, it’s clear that even small businesses can benefit from creating contingency plans.

An expansion plan will guide your business as it grows, laying out a strategic plan for expanding your existing operation. Whether you are opening a new location, launching new products, or expanding your services, an expansion plan will keep you focused and keep your costs in line.

An expansion plan is shorter than a traditional business plan, but it still has some key elements to include.

Executive summary: Like all the other business plan types, your expansion plan should start with an executive summary to highlight the key points of the complete plan.
Market analysis: This is a detailed analysis of the market for the new audience you hope to attract or the new competitors your business will encounter by expanding.
Expansion strategy: Outline the specific steps you need to take to complete your expansion, from locating additional storage or operational space, obtaining or creating new products or services, entering new markets, or building new locations. Include a timeline for each phase in your expansion plan.
Operational adjustments: Will you need to hire additional staff or retrain existing ones? Will you need to secure additional suppliers, forge relationships with new vendors, or improve your customer service bandwidth to meet increased demand?
Marketing and sales strategy: How will you draw new customers or inform existing ones of your expansion? Include plans for advertising, partnerships, and other promotional efforts.
Risk assessment: Include a clear assessment of the risks of expanding your business, including your plan for mitigating those risks.
Financial projections: As an existing business, you should have some historical data to draw from to create future projections for this expansion. Use this information, along with your expectations of the expansion, to generate projections of your expected costs, cash flow, and how much capital you will need to fund your expansion. This is particularly important if you need to seek funding in the form of loans or investments to fund your expansion.
Metrics and KPIs: Define the metrics you’ll use to measure the success of your expansion, from revenue growth to customer ratings and retention.

An expansion plan is a great idea for any growing business to strategically plan to grow their business and measure impacts. Even the smallest businesses should comprise an expansion plan to ensure they maintain profitability as they grow.

A nonprofit business plan is different from a traditional business plan because it focuses more on mission and longevity than profit. Unlike for-profit businesses that create plans to appeal to investors, nonprofit business plans need to appeal to donors and grant-awarding agencies. A nonprofit business plan needs to show how a nonprofit organization will achieve its mission while remaining financially stable.

A nonprofit business plan may be 12 to 30 pages long, depending on the organization’s mission, the number of staff, and the impact it hopes to have on the community.

Executive summary: Like traditional business plans, a nonprofit business plan should include a summary at the beginning that lists the key points of the business plan.
Mission statement: This is the foundation of the whole nonprofit organization. This should describe the specific social, environmental, or community issues your organization will address.
Needs analysis: This is similar to the market research section of a traditional business plan. Research and include detailed information about the community your nonprofit will serve, other organizations that work on similar issues, and any specific gaps your organization will fill.
Programs and services: This section describes all the programs and services the nonprofit will offer and mentions how they align with the nonprofit’s mission. For each program or service you outline, include the population the program serves and how you will measure its success.
Fundraising strategy: How will your nonprofit generate the financial resources needed to support its mission? Include details about fundraising campaigns, grant applications, corporate partnerships, and other donor strategies.
Organizational structure and management: List the nonprofit’s key team members. This may include the leadership team and staff, as well as a full list of the board of directors. If you rely on volunteers, include information about how you recruit, train, and manage them.
Operations and administrative plan: Describe all the processes that keep your organization running from day to day. This might include administrative tasks, tasks associated with legal and regulatory requirements in the industry you serve, and fundraising. Mention internal communication and reporting procedures, as well.
Marketing and outreach strategy: Describe how you will promote your programs and raise awareness of your cause. Include strategies for reaching donors, volunteers, and the beneficiaries of your services. This might include printed materials, social media campaigns, community events, and media outreach.
Impact measurement: Outline the methods and metrics you will use to measure the impact of your nonprofit’s efforts. Include how you will evaluate the success of individual programs and services as well as how you will track progress toward long-term goals.
Financial plan: Nonprofit organizations have an obligation to demonstrate fiscal responsibility. This section should include your projected operating budget, along with any income statements, cash flow projections, and contingency plans for financial difficulties.

Nonprofit organizations of all sizes—from grassroots community groups to large, charitable foundations—benefit from the structure and planning that composing a nonprofit business plan provides. A nonprofit business plan helps organizations that rely on donors, grants, or corporate partnerships attract funding. Newly formed nonprofits can use a nonprofit business plan to establish credibility and articulate their vision.

If you need a business plan, but don’t want to write it yourself, you have two major options; use business plan writing software or pay a professional to create your plan. Several companies provide business plan writing services with experts who do market research and create custom-designed plans. Many of these companies also offer other writing services such as a pitch deck, feasibility study, or franchise-specific plans.

How to Choose a Biz Plan Writing Service

When choosing a business plan writing service, you first want to review the background of the writers. Some companies provide writers with MBAs (Master of Business Administration).

You also want to review samples of the business plans created. The company likely provided their best-designed business plans in their portfolio, so make sure to ask how much a particular well-designed business plan will cost; it may be out of your budget.

Cost of a Business Plan Writing Service

A basic business plan writing service will typically charge you a minimum of $2,000. If your plan requires extensive research, custom graphics, and enhanced overall design, that cost can go up to over $10,000.

Contact Your Local SBDC for a Review

If you have your business plan and are looking for someone to review it for feedback, your local SBDC (Small Business Development Center) may be able to help. The SBDC provides no-cost consulting and is funded in part by the SBA (Small Business Administration). There are over 1,000 SBDC locations across the US, most of them housed in or near state colleges and universities. Visit the SBDC website to find your local SBDC.

One of the SBDC’s core services is to provide detailed reviews of business plans. Depending on the expertise of your local SBDC Consultants, you may get lucky and have a business plan expert at your local center. Inquire if he or she can review your biz plan and provide feedback.

Frequently Asked Questions (FAQs)

These are the most common questions I hear about business plan types.

How many types of business plans are there?

There are dozens of business plan types that you might use to create a roadmap for various business strategies. Most small businesses benefit from a traditional or a one-page business plan. Existing businesses can benefit from targeted business plans like an expansion plan, contingency plan, or feasibility plan.

What are the components of a business plan?

Every business plan starts with an executive summary that highlights the key takeaways from the entire business plan. You’ll also typically need to include the following sections:

Opening organizational and legal pages
Company summary
Products and services
Market and industry analysis
Marketing strategy and implementation summary
Management and organization summary
Financial data and analysis

Various business plan types can help you plan your business strategy, attract business partners, or qualify for small business loans and grants. Your next steps after writing your business plan depends on your business type and the business plan type.

About the Author

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Mary King is an expert restaurant and small business contributor at Fit Small Business. With more than a decade of small business experience, Mary has worked with some of the best restaurants in the world, and some of the most forward-thinking hospitality programs in the country. Mary’s firsthand operational experience ranges from independent food trucks to the grand scale of Michelin-starred restaurants, from small trades-based businesses to cutting-edge co-working spaces.

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How to Write a Business Plan, Step by Step

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What is a business plan?

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

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

LLC Formation

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

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

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

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

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

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

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

Your business’s registered name.

Address of your business location .

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

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

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

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

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

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

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

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

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

You should include the following:

An explanation of how your product or service works.

The pricing model for your product or service.

The typical customers you serve.

Your supply chain and order fulfillment strategy.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

NerdWallet’s picks for setting up your business finances:

The best business checking accounts .

The best business credit cards .

The best accounting software .

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

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

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

Licenses and permits.

Equipment leases.

Bank statements.

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

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

How much do you need?

with Fundera by NerdWallet

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

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

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

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

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

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

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