how to write a business plan market analysis

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How to Write a Market Analysis for a Business Plan

Dan Marticio is a freelance writer. He’s written on a broad range of topics from stocks and net worth to productivity hacks. His work has appeared on Fundera and LendingTree.

Robert Beaupre leads the SMB team at NerdWallet. He has covered financial topics as an editor for more than a decade. Before joining NerdWallet, he served as senior editorial manager of QuinStreet's insurance sites and managing editor of Insure.com. In addition, he served as an online media manager for the University of Nevada, Reno.

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

A lot of preparation goes into starting a business before you can open your doors to the public or launch your online store. One of your first steps should be to write a business plan . A business plan will serve as your roadmap when building your business.

Within your business plan, there’s an important section you should pay careful attention to: your market analysis. Your market analysis helps you understand your target market and how you can thrive within it.

Simply put, your market analysis shows that you’ve done your research. It also contributes to your marketing strategy by defining your target customer and researching their buying habits. Overall, a market analysis will yield invaluable data if you have limited knowledge about your market, the market has fierce competition, and if you require a business loan. In this guide, we'll explore how to conduct your own market analysis.

How to conduct a market analysis: A step-by-step guide

In your market analysis, you can expect to cover the following:

Industry outlook

Target market

Market value

Competition

Barriers to entry

Let’s dive into an in-depth look into each section:

Step 1: Define your objective

Before you begin your market analysis, it’s important to define your objective for writing a market analysis. Are you writing it for internal purposes or for external purposes?

If you were doing a market analysis for internal purposes, you might be brainstorming new products to launch or adjusting your marketing tactics. An example of an external purpose might be that you need a market analysis to get approved for a business loan .

The comprehensiveness of your market analysis will depend on your objective. If you’re preparing for a new product launch, you might focus more heavily on researching the competition. A market analysis for a loan approval would require heavy data and research into market size and growth, share potential, and pricing.

Step 2: Provide an industry outlook

An industry outlook is a general direction of where your industry is heading. Lenders want to know whether you’re targeting a growing industry or declining industry. For example, if you’re looking to sell VCRs in 2020, it’s unlikely that your business will succeed.

Starting your market analysis with an industry outlook offers a preliminary view of the market and what to expect in your market analysis. When writing this section, you'll want to include:

Market size

Are you chasing big markets or are you targeting very niche markets? If you’re targeting a niche market, are there enough customers to support your business and buy your product?

Product life cycle

If you develop a product, what will its life cycle look like? Lenders want an overview of how your product will come into fruition after it’s developed and launched. In this section, you can discuss your product’s:

Research and development

Projected growth

How do you see your company performing over time? Calculating your year-over-year growth will help you and lenders see how your business has grown thus far. Calculating your projected growth shows how your business will fare in future projected market conditions.

Step 3: Determine your target market

This section of your market analysis is dedicated to your potential customer. Who is your ideal target customer? How can you cater your product to serve them specifically?

Don’t make the mistake of wanting to sell your product to everybody. Your target customer should be specific. For example, if you’re selling mittens, you wouldn’t want to market to warmer climates like Hawaii. You should target customers who live in colder regions. The more nuanced your target market is, the more information you’ll have to inform your business and marketing strategy.

With that in mind, your target market section should include the following points:

Demographics

This is where you leave nothing to mystery about your ideal customer. You want to know every aspect of your customer so you can best serve them. Dedicate time to researching the following demographics:

Income level

Create a customer persona

Creating a customer persona can help you better understand your customer. It can be easier to market to a person than data on paper. You can give this persona a name, background, and job. Mold this persona into your target customer.

What are your customer’s pain points? How do these pain points influence how they buy products? What matters most to them? Why do they choose one brand over another?

Research and supporting material

Information without data are just claims. To add credibility to your market analysis, you need to include data. Some methods for collecting data include:

Target group surveys

Focus groups

Reading reviews

Feedback surveys

You can also consult resources online. For example, the U.S. Census Bureau can help you find demographics in calculating your market share. The U.S. Department of Commerce and the U.S. Small Business Administration also offer general data that can help you research your target industry.

Step 4: Calculate market value

You can use either top-down analysis or bottom-up analysis to calculate an estimate of your market value.

A top-down analysis tends to be the easier option of the two. It requires for you to calculate the entire market and then estimate how much of a share you expect your business to get. For example, let’s assume your target market consists of 100,000 people. If you’re optimistic and manage to get 1% of that market, you can expect to make 1,000 sales.

A bottom-up analysis is more data-driven and requires more research. You calculate the individual factors of your business and then estimate how high you can scale them to arrive at a projected market share. Some factors to consider when doing a bottom-up analysis include:

Where products are sold

Who your competition is

The price per unit

How many consumers you expect to reach

The average amount a customer would buy over time

While a bottom-up analysis requires more data than a top-down analysis, you can usually arrive at a more accurate calculation.

Step 5: Get to know your competition

Before you start a business, you need to research the level of competition within your market. Are there certain companies getting the lion’s share of the market? How can you position yourself to stand out from the competition?

There are two types of competitors that you should be aware of: direct competitors and indirect competitors.

Direct competitors are other businesses who sell the same product as you. If you and the company across town both sell apples, you are direct competitors.

An indirect competitor sells a different but similar product to yours. If that company across town sells oranges instead, they are an indirect competitor. Apples and oranges are different but they still target a similar market: people who eat fruits.

Also, here are some questions you want to answer when writing this section of your market analysis:

What are your competitor’s strengths?

What are your competitor’s weaknesses?

How can you cover your competitor’s weaknesses in your own business?

How can you solve the same problems better or differently than your competitors?

How can you leverage technology to better serve your customers?

How big of a threat are your competitors if you open your business?

Step 6: Identify your barriers

Writing a market analysis can help you identify some glaring barriers to starting your business. Researching these barriers will help you avoid any costly legal or business mistakes down the line. Some entry barriers to address in your marketing analysis include:

Technology: How rapid is technology advancing and can it render your product obsolete within the next five years?

Branding: You need to establish your brand identity to stand out in a saturated market.

Cost of entry: Startup costs, like renting a space and hiring employees, are expensive. Also, specialty equipment often comes with hefty price tags. (Consider researching equipment financing to help finance these purchases.)

Location: You need to secure a prime location if you’re opening a physical store.

Competition: A market with fierce competition can be a steep uphill battle (like attempting to go toe-to-toe with Apple or Amazon).

Step 7: Know the regulations

When starting a business, it’s your responsibility to research governmental and state business regulations within your market. Some regulations to keep in mind include (but aren’t limited to):

Employment and labor laws

Advertising

Environmental regulations

If you’re a newer entrepreneur and this is your first business, this part can be daunting so you might want to consult with a business attorney. A legal professional will help you identify the legal requirements specific to your business. You can also check online legal help sites like LegalZoom or Rocket Lawyer.

Tips when writing your market analysis

We wouldn’t be surprised if you feel overwhelmed by the sheer volume of information needed in a market analysis. Keep in mind, though, this research is key to launching a successful business. You don’t want to cut corners, but here are a few tips to help you out when writing your market analysis:

Use visual aids

Nobody likes 30 pages of nothing but text. Using visual aids can break up those text blocks, making your market analysis more visually appealing. When discussing statistics and metrics, charts and graphs will help you better communicate your data.

Include a summary

If you’ve ever read an article from an academic journal, you’ll notice that writers include an abstract that offers the reader a preview.

Use this same tactic when writing your market analysis. It will prime the reader of your market highlights before they dive into the hard data.

Get to the point

It’s better to keep your market analysis concise than to stuff it with fluff and repetition. You’ll want to present your data, analyze it, and then tie it back into how your business can thrive within your target market.

Revisit your market analysis regularly

Markets are always changing and it's important that your business changes with your target market. Revisiting your market analysis ensures that your business operations align with changing market conditions. The best businesses are the ones that can adapt.

Why should you write a market analysis?

Your market analysis helps you look at factors within your market to determine if it’s a good fit for your business model. A market analysis will help you:

1. Learn how to analyze the market need

Markets are always shifting and it’s a good idea to identify current and projected market conditions. These trends will help you understand the size of your market and whether there are paying customers waiting for you. Doing a market analysis helps you confirm that your target market is a lucrative market.

2. Learn about your customers

The best way to serve your customer is to understand them. A market analysis will examine your customer’s buying habits, pain points, and desires. This information will aid you in developing a business that addresses those points.

3. Get approved for a business loan

Starting a business, especially if it’s your first one, requires startup funding. A good first step is to apply for a business loan with your bank or other financial institution.

A thorough market analysis shows that you’re professional, prepared, and worth the investment from lenders. This preparation inspires confidence within the lender that you can build a business and repay the loan.

4. Beat the competition

Your research will offer valuable insight and certain advantages that the competition might not have. For example, thoroughly understanding your customer’s pain points and desires will help you develop a superior product or service than your competitors. If your business is already up and running, an updated market analysis can upgrade your marketing strategy or help you launch a new product.

Final thoughts

There is a saying that the first step to cutting down a tree is to sharpen an axe. In other words, preparation is the key to success. In business, preparation increases the chances that your business will succeed, even in a competitive market.

The market analysis section of your business plan separates the entrepreneurs who have done their homework from those who haven’t. Now that you’ve learned how to write a market analysis, it’s time for you to sharpen your axe and grow a successful business. And keep in mind, if you need help crafting your business plan, you can always turn to business plan software or a free template to help you stay organized.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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How to Write a Market Analysis: Guidelines & Templates

Written by: Unenabasi Ekeruke

Whether you're starting a new business or improving existing business processes, you’ll need a detailed market analysis. Not having a proper assessment of your market will make it difficult, if not impossible, to achieve your business goals.

On top of that, you'll end up leaving money, customers and growth opportunities on the table. And your competitors will grasp it.

A market analysis tells you everything you need to know about your industry, competitors, customers that directly affect the growth of your business.

According to Think with Google , 40% of marketers leverage consumer research to make decisions. Getting it right with market analysis helps you make sound decisions, putting you a step ahead of your competitors.

Conducting a market analysis might appear daunting and complex. We've created this guide to discuss what a market analysis is, the components of market analysis and templates to help you create your own.

Let's get to it.

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

Table of Contents

What is a market analysis.

• Benefits of a Market Analysis

What Are the Components of a Market Analysis?

9 market analysis templates, how to conduct a market analysis.

• Get to Work: Create Market Analysis with Visme
• A market analysis is a detailed assessment of the market for a product, service or business.
• Market analysis are vital for making informed decisions, staying up to date with emerging trends, developing the right offerings for your market, forecasting potential revenue and gauging business performance.
• A market analysis is composed of an industry description and outlook, a market description, market trends, a competitive analysis, key success factors, market projections and environmental factors.
• To conduct an analysis of the market, you must define your objective, identify your target market, gather competitor data, assess market trends, do a SWOT analysis and summarize the findings into a market analysis document.
• Take advantage of all the business features available in the editor to create your market analysis.
• Access an extensive library of templates , integrated analytics, collaboration and workflow features, plus millions of design assets right at your fingertips to streamline your business process.

A market analysis is an assessment of the industry or market for a product, service, or business. This analysis gives you an overview of all the elements that affect your specific market. Analyzing your market or industry helps you:

• Assess the attractiveness of the market
• Uncover opportunities for growth
• Develop strategies to overcome obstacles and edge out the competition
• Better position your business to serve customers right

A market analysis isn't just for writing business plans or marketing plans . It can be conducted as part of activities for launching new products or services, diversifying into new industries, or revamping your current business strategy.

For example, let's say you're looking for a gap in the market to create a new product or service. A thorough market analysis can point you in the right direction of what's most in demand.

A market analysis isn't a one-time event. If you want your efforts to be successful, keep your market knowledge up-to-date using a marketing dashboard .

You can use a marketing analysis at different stages of your business. It can be helpful to conduct it once or twice a year to keep up to date with major changes in the market.

With a detailed marketing analysis, you can gather valuable insights into:

• The size of the market in terms of value and volume
• Potential customer segments
• Demand for products or services and buying patterns
• The purchasing habits of customers
• Barriers to entry
• Regulations
• Competition (including their strengths and weaknesses)
• The overall market dynamics that influence the prices of products
• Forces affecting the behaviors of industry players and customers

5 Benefits of a Market Analysis

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A market analysis is valuable to your marketing deck . It provides a core understanding of your market and puts your business in the driving seat for success.

Here are some of the other reasons you need a market analysis for your business.

1. Make Informed Decisions

A market analysis gives you insight into market trends, competitors and key success factors. You're able to spot risks, threats and opportunities for growth. This information helps you develop a targeted business strategy and make the right decisions to drive growth.

2. Stay Up to Date With Emerging Trends

By conducting market analysis, you can stay on top of industry trends and see what your competitors aren't seeing. Taking advantage of this information puts you a step ahead of other players in your industry.

3. Develop the Right Offerings for Your Market

Market research and analysis involve listening to the market and communicating with customers. While conducting market analysis, you want to identify these things.

• Who or what influences their purchase decisions?
• What do they expect from brands?
• Why do customers choose your products over those of your competition?
• How do your customers use your products and how do they meet their needs?
• Does your product have the right product-market fit ?

You are better positioned to provide targeted solutions when you have a firm grasp of what customers want. Plus, you can use that information to tailor your business's offerings to your customers' needs.

While building your market analysis, use Google Analytics to assess how your website visitors are reacting to your product and service offerings. Analyze data like where they’re finding your products, how long they’re spending on your pages and where they’re dropping off. Visualize the Google Analytics data in your market analysis report with the help of Visme's integration with Google Analytics .

4. Forecast Potential Revenue and Future Earnings

A market forecast is a critical component of marketing analysis. It predicts the trends, financial projections and characteristics of your target market.

This forecast gives you an idea of what revenue, cost and profit margins to expect. You can tweak your business plan and budget accordingly.

5. Gauge Business Performance

Without metrics, it can be challenging to gauge your business performance. This is where a market analysis comes in handy. It provides benchmarks for measuring your business performance against other companies in your niche.

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A market analysis gives you a holistic view of the industries you’re interested in or currently operating in. The components of your market analysis should include:

• Industry description and outlook
• A description of your target market and trends
• Analysis of key competitors
• Key success factors in your industry
• Projections
• Environmental Factors

Let’s look at each of these components in more detail.

1. Industry Description and Outlook

When preparing your market analysis, you want to conduct an in-depth analysis of your industry to determine the current state and your industry's future. This section should have the following information:

• What the industry offers
• Size of your industry
• Emerging trends in the industry
• Rate of growth and the potential for growth
• Sustainability of the industry

These measures give a broad overview of your industry. For example, let’s say your business is operating in the software industry. You'll want to describe how large the industry is, the current growth rate and the projected growth rate over the next few years.

To gather statistics, reports and studies about your industry, leverage credible sources like:

• Government agencies
• Trade associations
• Local chamber of commerce

2. Market Description

In this section, you want to narrow down your data to focus on the specific market you're operating in.

From the software example above, the target market could be a specific niche within the software industry, like the finance or productivity software market.

By digging into the specifics of your target population, you're able to forecast how viable the market is and how profitable it will be to sell your solution to these customers. You'll also decide the best strategy to get value from this specific market.

Notice how the infographic template below provides detailed market analysis data about the virtual reality (VR) market.

3. Market Trends

Once you grasp your market description, double down on the occurrences that impact your industry over time. These trends could be short-term, intermediate and long-term.

Here you want to hone in to see how your market started, how it has evolved and where it's headed.

Why is this important? Monitoring the trends that affect your business ensures you aren't caught off-guard. Plus, it keeps you a step ahead of your competitors.

Here are some of the trends you'll have to keep an eye on:

• Changes in consumer preferences
• Change in market demographics
• Technological advancements
• Demand for specific products or services
• The supplier's influence over prices
• Price fluctuations and sensitivity

Not sure how to monitor trends unique to your target market? Here are some ideas:

• Read industry publications. Browse websites like Think with Google , Google Trends , Pew Research Center and US Census Business Data . They can provide a bigger picture of your market, consumer behavior and how it relates to the economy.
• Leverage industry trends analytics. You'll find a huge repository of data about past and current trends in your markets.
• Observe your competitors. If your major competitors are going in a particular direction in the market, they probably have access to insights that you don't have. Observing them can help you make more informed decisions.
• Attend industry events. Network with industry leaders and other relevant people and subscribe to newsletters.

Identifying market trends is mostly about keeping your ears to the ground and listening out for approaching shifts in your industry. As you explore these trends, you should track how your offerings align, fit in, or operate counter to the trends.

4. Competitive Analysis

Analyzing your competitive landscape involves identifying who your competitors are and where they stack up against you.

The competitive analysis gives a bird's eye view of:

• Who your direct and indirect competitors are
• Their products' quality and pricing
• Their marketing strategy and overall business strategy
• What makes your competitors stand out
• What your competitors' strengths and weaknesses are
• What enables you to outperform your competitors?

The beauty of competitive analysis is that it gives you a clearer idea of what you're up against. You can identify aspects of your business that need improvement to enable you to measure up or stay competitive in your industry.

Here's an excellent example of competitive data for your market analysis.

Much like market trends, the competitive landscapes for various markets change over time. And depending on what metrics you're looking at, you may get different results. Hence the need to make your competitive analysis an ongoing process.

Let's look at the various ways you can analyze the competitive environment.

Investigate Your Competitors

You can check out your competitors, websites, social media pages, news, press releases and other marketing content. You can even shop from them, read testimonials and reviews and conduct surveys . You're sure to have a clearer idea of why customers buy from them or what makes them stand out.

Using Porter’s Five Forces

Porter's Five Forces analyzes five major competitive forces that shape every market. They include:

• The bargaining power of suppliers
• The bargaining power of buyers
• The competitive rivalry
• The threat of substitute products
• The threat of new entrants

Bargaining power of suppliers analyses the number of suppliers in your industry and how easy it is to raise their prices. Suppliers have more power when they are fewer and raising prices can impact your profitability.

Bargaining power of buyers examines the influence that buyers have on prices and quality. Consumers have control when they are fewer. And because there are multiple sellers, they can easily switch to your rivals.

Competitive rivalry describes how intense the competition is in your market. Here you want to find out the following:

• How many competitors exist in the market?
• What is the quality and quantity of their offering compared to yours?

The threat of substitute products examines how easy it is for customers to switch to competing products. Customers will often find cheaper substitutes that cut their expenses, which may, in turn, affect your profitability.

The threat of new entrants examines how easy or difficult it is for new businesses to join your market. The easier it is for new firms to enter your market, the greater the number of competitors and the smaller your market share.

SWOT Analysis

A SWOT analysis is an excellent framework for evaluating your competitive position and making strategic decisions. This framework organizes your strengths, weaknesses, opportunities and threats to your business into a simple two-by-two grid.

Strengths and weaknesses are internal to your company. They include things you can change or have some control over. Examples include your team, intellectual property, patents, location and other resources.

Opportunities and threats are external. These are things that happen in the larger market. Essentially, you have no control over them. Examples include customer shopping trends, competitors, increasing demand for certain products, prices of raw materials and economic growth or decline.

Use the SWOT analysis template below as a guide to build on your strengths, address your weaknesses, seize new opportunities and minimize threats or risks.

Strategic Group Analysis

This tool also effectively analyzes the rivalry among competitors within your industry. It groups companies and analyzes their competitive positions based on common characteristics such as:

• Company size
• Product quality and features
• Number of market segments served
• Distribution channels
• Product and service diversity
• Price policy
• Technological position
• Vertical integration
• Financial or operating leverage

5. Key Success Factors

The key success factors in any industry include those competitive factors that impact the ability of businesses to thrive in the marketplace. These factors may include:

• Competitive capabilities
• Product and service attributes
• Operational strategies
• Marketing strategies
• People and processes

By evaluating key success factors, you can:

• Grasp the key elements you need to compete in your target market and become sustainable.
• Identify your areas of strength and where you need improvement.
• Identify pathways to achieve your business goals and objectives.
• Ensure the success and continued growth of your business.

If you're starting your business, find out what the top players in your industry are doing right. Check out their business model and how they structure their business in response to changing business environments.

6. Market Projections

This section should project financial forecasts, future numbers and trends in your target market. Here you want to hone in on significant numbers like:

• Market segments
• Market size and value
• Projected sales volume
• Average purchase value per customer
• Market share
• Pricing structure
• Gross and net margin within the industry

To get a near-accurate projection, you'll have to combine information from multiple sources including:

• Market trends
• Competitor analysis
• Customer descriptions and
• Purchase behavior

While forecasting your market, avoid making educated guesses that don't add up. Rather collect data from reliable sourcres.

Tools like Statista and Euromonitor provide detailed forecasts and market information relevant to different industries.

Check out how this graphic highlights key market data and projections.

7. Environmental Factors

These are outside factors that exert an external influence on your business. They include economic, social, political, legal and technological factors.

Although you have limited control of these factors, you must study and include them in your market analysis.

Why's that? They can improve or disrupt your business processes.

Having a bird's eye view of these factors from different angles lets you identify and resolve the problems they can cause.

One of the most popular ways to measure environmental factors is the PESTLE analysis model . Here are some things to consider when carrying out a PESTLE analysis.

• Social factors in your business environment. They include lifestyle trends, demographic considerations, socio-economic status, location, consumer beliefs and values.
• The political climate. These include government policies, free trade disputes, taxation, laws, competition regulations, import restrictions, fiscal policy initiatives .
• Economic factors. They include interest rates, foreign exchange rates and economic policies.
• Technological innovations and trends likely to affect the market, such as automation, cybersecurity, 5G and the internet of things (IoT).
• Legal factors include employment laws, intellectual property laws, safety standards and consumer protection laws.
• Environmental considerations like carbon footprint, climate change impacts, extreme weather events.

Now you know the components that go into detailed market analysis. The next step is to create it for your next marketing presentation .

Let's look at some of our editable templates for creating your market analysis.

1. Market Analysis

Whether you're starting a new business or switching up your business strategy, this market analysis presentation template is an excellent starting point. It provides a perfect structure for uncovering, analyzing and reporting trends in your target market.

The template features an overview page that enables you to summarize key information. The following page uses unique data widgets like pie charts , bar charts , maps and line graphs to summarize important data like:

• Global trends
• Survey results
• Survey results by country
• Trends over time
• Key takeaways

This market analysis example is fully editable, making it a perfect fit for businesses in any industry. Simply plug in your data, figures and statistics and other important market data.

Visme has a rich library of built-in shapes , icons , stock photos , videos and animations. Feel free to make this template your own by adding your logo and changing the fonts , colors , images and videos. You have everything to ignite your creative spark and make a solid impression on your audience.

2. SWOT Analysis

This beautiful SWOT analysis template gives investors and other key stakeholders a detailed view of your business' competitive landscape.

The 4-page presentation captures your company's strengths, weaknesses, opportunities and threats. At a glance, you'll have a clearer view of where your brand sits within the wider market and identify potential growth opportunities.

A SWOT analysis is a company-wide activity and requires collaborative efforts. You want to consider your SWOT from many angles and ensure nothing is left out. Our software makes it super-easy for you to collaborate with your team to conduct your SWOT analysis.

You can set up a workspace for your organization and invite team members to collaborate and manage roles from your dashboard.

Team members can make changes, drop comments and more.

What's more, your SWOT analysis doesn't have to be some boring document staring at your audience. Spice it up with interactivity by adding animations, videos, images and graphics.

You can share that document with your audience via a link that automatically updates when you change the design or content.

3. Competitive Analysis

To capture a sizable share of your market, you must determine how you stack up against your competitors in your market. Whether you're analyzing a competitor's business-level strategy, market share, target market, or competitive advantage, this market research template offers side-by-side comparison in an infographic layout. It also centralizes your market analysis in a single location, making it accessible to your team for decision making.

The data illustrations and beautiful icons, pictures and graphics make the template visually appealing. You can engage your readers and quickly grab their attention with this colorful competitive analysis template.

Feel free to tweak fonts and colors and add logos to showcase your brand image.

When creating with the Visme editor, take advantage of all the features that Visme AI has to offer. Create complete documents from a text prompt with the AI Document Generator , get help writing headers and text with the AI Writer.

Craft unique visuals with the AI Image Generator , remove backgrounds to create cutouts from photos with the AI Background Remover , and edit your images with the integrated AI Edit Tools .

4. Marketing SWOT Analysis

With this professional SWOT analysis infographic, you can visualize that information in an immersive and engaging way. Visme's intuitive drag-and-drop editor lets you whip up beautiful documents using your design ideas.

This marketing analysis template lets you easily swap the existing fonts, images, icons and texts and opt for more vibrant colors for your document.

Work on this SWOT analysis together with your team using Visme’s workflow feature . Assign each section to one team member at a time and see what ideas they come up with. Then, assign the others until several people have added their input to the strengths, weaknesses, opportunities and threats. Then, check it together to see what stands out the most and finalize the graphic.

5. Market Segmentation

Market segmentation lets you identify different groups within your target market. You can maximize your efforts by delivering more targeted offerings to them. Use this attractive market assessment template to share information about the characteristics of your market segments.

The template showcases these key elements of your market analysis.

• Short induction of your product, service, or solution
• Company profile
• The problem statement and what you're looking to achieve with the market segment
• Demographic, geographic, psychographic and behavioral segmentation
• Value proposition statement

The template is fully customizable. So you can edit this marketing presentation deck to match your business. Tweak the design, typefaces, visuals and other elements to suit your taste.

6. Industry Trends

Explore the events that will change the trajectory of your industry with this striking industry trends infographic template. Using this template, you can present a brand infographic on patterns relating to price, sales, consumption, buying behavior, marketing and other areas in your industry.

You don't need professional design experience to tweak this template into an informative marketing deck. Visme's professional online editor and customizable templates give you a creative edge. You can personalize this template to reflect your company's branding by adding logos, icons, colors and fonts relevant to your messaging.

Using Visme's brand kit feature, you can save your corporate brand and apply it to any project with a few clicks. Upload your logos, color palettes, fonts and other design assets and your brand kit will be set up within seconds.

7. Competitor Analysis Worksheet

This marketing deck worksheet is a huge time saver. It has everything you need to organize and communicate the details of your competitive research.

While the SWOT we discussed earlier focuses on your brand, this one is different. This SWOT analysis sheds light on your competitors' strengths, weaknesses, opportunities and strengths.

The template has a minimalist design and a simplistic layout. However, Visme gives you the creative freedom to cut, copy and paste anything you like until you are satisfied with the final version.

Once done, you can easily share your competitor analysis worksheet with relevant stakeholders using a link that automatically updates when you change your design. You can also embed your content on your website or blog using a code or download it in PDF, PNG, PowerPoint and HTML5 file formats.

8. Market Share

Build your market analysis and share relevant information about market segments, market share, size and opportunities using this beautiful template.

The template will help inform your business plan and strategy and communicate the size of the opportunity to potential investors.

Visme has thousands of designs, fonts, stock images, themes and assets to make your infographic pop. Make this template your own by adding new text and images and bold headings to emphasize titles. Customize your color scheme, icons and fonts and watch your infographic transform into a compelling graphic.

Not convinced? Take a look at what small business owner Jessica L. has to say;

Small Business Owner

9. SWOT Analysis Infographics

Break down competitor information with this customizable SWOT analysis that leaves an impression on your audience.

This SWOT marketing infographic is fully editable. You can spice up your infographics by adding your brand colors, typefaces and high-quality icons and images, all sourced from Visme's extensive collections of design assets.

If you want to present facts and data, Visme has your back. Our software has a wide variety of interactive tools and data widgets, including graphs, maps, charts, pictograms and much more. You can also make your infographic dynamic by adding animated characters, illustrations and clickable icons with customizable repetitions, speed and colors.

Step 1: Define your objective

Clearly outline what you aim to achieve with the market analysis, whether it’s launching a new product or entering a different demographic.

Step 2: Identify your target market

Pinpoint the specific group of customers you intend to serve, considering demographics, psychographics and buying behavior. Use Visme feedback forms to assess how your product or service is helping your current clients and pinpoint issues early on.

Step 3: Gather relevant data on competitors

Research competitors and conduct a market share analysis of their pricing strategies, market positioning, and key strengths and weaknesses.

Step 4: Assess market trends and dynamics

Stay informed about current and emerging trends, economic factors, and industry changes that may impact your market. Use a marketing dashboard that includes all the vital metrics your team wants to track.

Step 5: Do a SWOT analysis

Evaluate your internal strengths and weaknesses as well as external opportunities and threats to develop a comprehensive understanding of your position in the market. Anticipate challenges that may arise, allowing for proactive planning.

Step 6: Summarize findings to inform strategic decisions

Consolidate your analysis into actionable insights to guide business strategies and decision-making. Use Visme to help you create a market analysis document that’s impactful and easy to follow. Then, share it with your team using Visme’s different sharing and publishing options like PDF, HTML5 or a digital flipbook.

Create Your Market Analysis with Visme

One of the biggest setbacks you'll face in business is lacking an understanding of your industry or target market. That's where a market analysis becomes useful and having a detailed one will save you the heartache.

It gives you a bird's eye view of market conditions, competitors, consumer behavior and other factors that impact your business.

Without detailed market analysis, you'll miss out on growth opportunities, make poor business decisions and lose out to your competitors.

A market analysis isn't a one-off activity. You need to make it an ongoing process. We recommend using Visme's market analysis template to collect and share detailed information about your market. Best of all, you don't need to be a professional designer to know how to use our tool.

Effortlessly create insightful marketing reports and more with Visme.

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About the Author

Unenabasi is a content expert with many years of experience in digital marketing, business development, and strategy. He loves to help brands tell stories that drive engagement, growth, and competitive advantage. He’s adept at creating compelling content on lifestyle, marketing, business, e-commerce, and technology. When he’s not taking the content world by storm, Unenabasi enjoys playing or watching soccer.

How to Write a Market Analysis: a Comprehensive Guide

• March 21, 2024
• Business Plan , How to Write

A market analysis is essential for any business, be it a tech startup or a traditional brick-and-mortar establishment. It provides invaluable insights into the competitive landscape, consumer behavior, and market trends .

This guide will illustrate the process through the lens of both a digital product (a Fitness app) and a physical service business (a hair salon). Let’s dive in!

How to Define Your Target Market

Defining your target market is the first step in a market analysis. It involves identifying and understanding the specific group of consumers you aim to serve. By segmenting the market based on demographics, behaviors, and needs, you can focus your efforts on the most lucrative market segments.

• Example for a Hair Salon: If you’re opening a salon in an upscale urban area, your target market might be professionals aged 30-50, looking for high-end hair care services and willing to pay a premium for organic or bespoke treatments.
• Example for a Fitness App: Imagine you’re launching a fitness app aimed at busy professionals. Your target market might include individuals aged 25-40, with full-time jobs, interested in quick and effective home workouts.

How to Use TAM, SAM, SOM to Determine Market Size

Understanding the size of your market is crucial for setting realistic business goals and attracting investment. Total Addressable Market (TAM), Serviceable Available Market (SAM), and Serviceable Obtainable Market (SOM) are metrics that help quantify the market opportunity for your business.

• Example for a Hair Salon: The TAM could be all individuals seeking hair care services in the city, the SAM might be those seeking high-end services, and the SOM could be professionals in the downtown area looking for organic hair treatments.
• Example for a Fitness App : For the fitness app, the TAM could be all individuals interested in fitness apps globally, the SAM might be those in countries you plan to operate in, and the SOM could be busy professionals in those countries looking for quick workout solutions.

How to Conduct an Industry Analysis

An industry analysis provides a deeper understanding of the market environment your business operates in. It examines market trends, key competitors , regulatory landscape, and technological advancements. Utilizing frameworks like a SWOT analysis can help assess the competitive intensity and attractiveness of an industry.

• Example for a Hair Salon: Analysis might show a trend toward more personalized hair care experiences. Also, you could show an increase in male grooming services, and a growing emphasis on sustainable practices within salons.
• Example for a Fitness App: an industry analysis might reveal a trend towards personalized workout plans. Or even a high competition among apps, and the importance of partnerships with fitness influencers as a key strategy.

How to Write a Customer Analysis

A customer analysis gives you insights into who your customers are, what they need, and how they make purchasing decisions. This component of the market analysis is essential for tailoring your product, marketing strategies , and customer experience to meet your target audience’s needs.

• Example for a Hair Salon: you may find that your target customers value convenience and quality over price. Also you could find that they prefer booking appointments online, and are influenced by social media trends and testimonials.
• Example for a Fitness App : customer analysis might show that busy professionals prefer apps that offer short, varied workouts. You may also find that customers are influenced by recommendations from fitness experts and user reviews.

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How to Write a Business Plan: Target Market Analysis

The Business Plan and the Importance of Defining Your Target Market

Susan Ward wrote about small businesses for The Balance for 18 years. She has run an IT consulting firm and designed and presented courses on how to promote small businesses.

Conducting a Market Analysis

Polling your target market, writing the market analysis, online tools for market research, u.s. online market research sources, canadian online market research, local sources of market research, doing your own market research.

 Creative Commons CC0

The market analysis is basically the target market section of your business plan . It is a thorough examination of the ideal people to whom you intend to sell your products or services.  

Even if you intend on selling a product or service only in your community, you won't be selling that service to everyone who lives there. Knowing exactly what type(s) of people might be interested in buying your product or service and how many of them reside in your projected area or region is fundamental in creating your market analysis.

Once target market data has been established, you'll also work on sales projections within specific time frames, as well as how prospective sales might be affected by trends and policies.

Research is key and cornerstone of any solid  business plan .

Don't Skip This Step!

Don't skip market research; otherwise, you could end up starting a business that doesn't have a paying market.

Use these general terms as linchpins in research data for the market analysis section of your business plan, and to identify your target market:

But don't stop here. To succinctly define your target market, poll or survey members of your prospective clients or customers to ask specific questions directly related to your products or services. For instance, if you plan to sell computer-related services, ask questions relating to the number of computing devices your prospective customers own and how often they require servicing. If you plan on selling garden furniture and accessories, ask what kinds of garden furniture or accessories your potential customers have bought in the past, how often, and what they expect to buy within the next one, three, and five years.

Answers to these and other questions related to your market are to help you understand your market potential.

The goal of the information you collect is to help you project how much of your product or service you'll be able to sell. Review these important questions you need to try to answer using the data you collect:

• What proportion of your target market has used a product similar to yours before?
• How much of your product or service might your target market buy? (Estimate this in gross sales and/or in units of product/service sold.)
• What proportion of your target market might be repeat customers?
• How might your target market be affected by demographic shifts?
• How might your target market be affected by economic events (e.g. a local mill closing or a big-box retailer opening locally)?
• How might your target market be affected by larger socio-economic trends?
• How might your target market be affected by government policies (e.g. new bylaws or changes in taxes)?

One purpose of the market analysis is to ensure you have a viable business idea.

Find Your Buying Market

Use your market research to make sure people don't just like your business idea, but they're also willing to pay for it.

If you have information suggesting that you have a large enough market to sustain your business goals, write the market analysis in the form of several short paragraphs using appropriate headings for each. If you have several target markets, you may want to number each. 

Sections of your market analysis should include:

• Industry Description and Outlook
• Target Market
• Market Research Results
• Competitive Analysis

Remember to properly cite your sources of information within the body of your market analysis as you write it. You and other readers of your business plan, such as potential investors, will need to know the sources of the statistics or opinions that you've gathered.

There are several online resources to learn if your business idea is something worth pursing, including:

• Keyword searches can give you an overall sense of potential demand for your product or service based on the number of searches.
• Google Trends analysis can tell you how the number of searches has changed over time.
• Social media campaigns can give you an indication of the potential customer interest in your business idea.

The U.S. Small Business Administration (SBA) has information on doing your market research and analysis , as well as a list of free small business data and trends resources you can use to conduct your research. Consider these sources for data collection:

• SBA  Business Data and Statistics  
• The U.S. Census Bureau maintains a huge database of demographic information that is searchable by state, county, city/town, or zip code using its census data tool . Community, housing, economic, and population surveys are also available.
• The U.S. Department of Commerce Bureau of Economic Analysis (BEA) has extensive statistics on the economy including consumer income/spending/consumption, business activity, GDP, and more, all of which are searchable by location.

The Government of Canada offers a guide on doing market research and tips for understanding the data you collect. Canadian data resources include:

• Statistics Canada  offers demographic and economic data.
• The  Business Development Bank of Canada (BDC)  offers market research and consulting with industry experts.
• The Canada Business Network provides business information to entrepreneurs by province/territory, including market research data.

There are also a great many local resources for building target market information to explore, including:

• Local library
• Local Chamber of Commerce
• Board of Trade
• Economic Development Centre
• Local government agent's office
• Provincial business ministry
• Local phone book

All of these will have information helpful in defining your target market and providing insights into trends.

The above resources are secondary sources of information, in which others have collected and compiled the data. To get specific information about your business, consider conducting your own market research . For instance, you might want to design a questionnaire and survey your target market to learn more about their habits and preferences relating to your product or service.

Market research is time-consuming but is an important step in affording your business plan validity. If you don't have the time or the research skills to thoroughly define your target market yourself, hiring a person or firm to do the research for you can be a wise investment.​

Small Business Administration. " Market Research and Competitive Analysis. " Accessed Jan. 13, 2020.

How to Write a Business Plan: Step-by-Step Guide + Examples

Noah Parsons

24 min. read

Updated May 7, 2024

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

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

• The basics of business planning

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

You understand that planning helps you: 

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

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

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

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

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

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

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

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

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

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

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• What to include in your business plan

Executive summary

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

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

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

Your executive summary should include:

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

Dig Deeper: How to write an effective executive summary

Products and services description

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

This is usually called a problem and solution statement .

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

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

Market analysis

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

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

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

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

Related: Target market examples

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

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

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

Dig Deeper: Learn how to write a market analysis

Competitive analysis

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

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

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

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

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

Marketing and sales plan

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

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

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

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

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

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

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

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

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

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

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

Business operations

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

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

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

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

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

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

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

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

Key milestones and metrics

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

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

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

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

Possible milestones might be:

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

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

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

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

Dig Deeper: How to use milestones in your business plan

Organization and management team

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

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

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

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

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

• Sole proprietor
• Partnership

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

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

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

Financial plan

Last, but certainly not least, is your financial plan chapter. 

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

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

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

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

Dig Deeper: How to create financial forecasts and budgets

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

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

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

Dig Deeper : What to include in your business plan appendix

Optional: Business plan cover page

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

Your cover page should be simple and include:

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

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

Dig Deeper: How to create a business plan cover page

How to use AI to help write your business plan

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

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

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

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

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

• Writing tips and strategies

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

Determine why you are writing a business plan

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

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

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

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

Keep things concise

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

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

Have someone review your business plan

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

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

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

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

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

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

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

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

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

Common pitfalls and how to avoid them

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

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

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

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

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

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

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

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

Use your business plan to manage your business

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

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

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

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

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

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

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

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

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

Learn More: How to run a regular plan review

Free business plan templates and examples

Kickstart your business plan writing with one of our free business plan templates or recommended tools.

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How to write a business plan FAQ

What is a business plan?

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

What are the benefits of a business plan?

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

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

What are the 7 steps of a business plan?

The seven steps to writing a business plan include:

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

What are the 5 most common business plan mistakes?

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

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

What questions should be answered in a business plan?

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

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

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

How long should a business plan be?

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

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

What are the different types of business plans?

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

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

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

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

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

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

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

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

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

Table of Contents

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

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How to Write a Business Plan in 9 Steps (+ Template and Examples)

Every successful business has one thing in common, a good and well-executed business plan. A business plan is more than a document, it is a complete guide that outlines the goals your business wants to achieve, including its financial goals . It helps you analyze results, make strategic decisions, show your business operations and growth.

If you want to start a business or already have one and need to pitch it to investors for funding, writing a good business plan improves your chances of attracting financiers. As a startup, if you want to secure loans from financial institutions, part of the requirements involve submitting your business plan.

Writing a business plan does not have to be a complicated or time-consuming process. In this article, you will learn the step-by-step process for writing a successful business plan.

You will also learn what you need a business plan for, tips and strategies for writing a convincing business plan, business plan examples and templates that will save you tons of time, and the alternatives to the traditional business plan.

Let’s get started.

What Do You Need A Business Plan For?

Businesses create business plans for different purposes such as to secure funds, monitor business growth, measure your marketing strategies, and measure your business success.

1. Secure Funds

One of the primary reasons for writing a business plan is to secure funds, either from financial institutions/agencies or investors.

For you to effectively acquire funds, your business plan must contain the key elements of your business plan . For example, your business plan should include your growth plans, goals you want to achieve, and milestones you have recorded.

A business plan can also attract new business partners that are willing to contribute financially and intellectually. If you are writing a business plan to a bank, your project must show your traction , that is, the proof that you can pay back any loan borrowed.

Also, if you are writing to an investor, your plan must contain evidence that you can effectively utilize the funds you want them to invest in your business. Here, you are using your business plan to persuade a group or an individual that your business is a source of a good investment.

2. Monitor Business Growth

A business plan can help you track cash flows in your business. It steers your business to greater heights. A business plan capable of tracking business growth should contain:

• The business goals
• Methods to achieve the goals
• Time-frame for attaining those goals

A good business plan should guide you through every step in achieving your goals. It can also track the allocation of assets to every aspect of the business. You can tell when you are spending more than you should on a project.

You can compare a business plan to a written GPS. It helps you manage your business and hints at the right time to expand your business.

3. Measure Business Success

A business plan can help you measure your business success rate. Some small-scale businesses are thriving better than more prominent companies because of their track record of success.

Right from the onset of your business operation, set goals and work towards them. Write a plan to guide you through your procedures. Use your plan to measure how much you have achieved and how much is left to attain.

You can also weigh your success by monitoring the position of your brand relative to competitors. On the other hand, a business plan can also show you why you have not achieved a goal. It can tell if you have elapsed the time frame you set to attain a goal.

4. Document Your Marketing Strategies

You can use a business plan to document your marketing plans. Every business should have an effective marketing plan.

Competition mandates every business owner to go the extraordinary mile to remain relevant in the market. Your business plan should contain your marketing strategies that work. You can measure the success rate of your marketing plans.

In your business plan, your marketing strategy must answer the questions:

• How do you want to reach your target audience?
• How do you plan to retain your customers?
• What is/are your pricing plans?
• What is your budget for marketing?

How to Write a Business Plan Step-by-Step

1. create your executive summary.

The executive summary is a snapshot of your business or a high-level overview of your business purposes and plans . Although the executive summary is the first section in your business plan, most people write it last. The length of the executive summary is not more than two pages.

Generally, there are nine sections in a business plan, the executive summary should condense essential ideas from the other eight sections.

A good executive summary should do the following:

• A Snapshot of Growth Potential. Briefly inform the reader about your company and why it will be successful)
• Contain your Mission Statement which explains what the main objective or focus of your business is.
• Product Description and Differentiation. Brief description of your products or services and why it is different from other solutions in the market.
• The Team. Basic information about your company’s leadership team and employees
• Business Concept. A solid description of what your business does.
• Target Market. The customers you plan to sell to.
• Marketing Strategy. Your plans on reaching and selling to your customers
• Current Financial State. Brief information about what revenue your business currently generates.
• Projected Financial State. Brief information about what you foresee your business revenue to be in the future.

The executive summary is the make-or-break section of your business plan. If your summary cannot in less than two pages cannot clearly describe how your business will solve a particular problem of your target audience and make a profit, your business plan is set on a faulty foundation.

Avoid using the executive summary to hype your business, instead, focus on helping the reader understand the what and how of your plan.

View the executive summary as an opportunity to introduce your vision for your company. You know your executive summary is powerful when it can answer these key questions:

• Who is your target audience?
• What sector or industry are you in?
• What are your products and services?
• What is the future of your industry?
• Is your company scaleable?
• Who are the owners and leaders of your company? What are their backgrounds and experience levels?
• What is the motivation for starting your company?
• What are the next steps?

Writing the executive summary last although it is the most important section of your business plan is an excellent idea. The reason why is because it is a high-level overview of your business plan. It is the section that determines whether potential investors and lenders will read further or not.

The executive summary can be a stand-alone document that covers everything in your business plan. It is not uncommon for investors to request only the executive summary when evaluating your business. If the information in the executive summary impresses them, they will ask for the complete business plan.

If you are writing your business plan for your planning purposes, you do not need to write the executive summary.

2. Add Your Company Overview

The company overview or description is the next section in your business plan after the executive summary. It describes what your business does.

Adding your company overview can be tricky especially when your business is still in the planning stages. Existing businesses can easily summarize their current operations but may encounter difficulties trying to explain what they plan to become.

Your company overview should contain the following:

• What products and services you will provide
• Geographical markets and locations your company have a presence
• What you need to run your business
• Who your target audience or customers are
• Who will service your customers
• Your company’s purpose, mission, and vision
• Information about your company’s founders
• Who the founders are
• Notable achievements of your company so far

When creating a company overview, you have to focus on three basics: identifying your industry, identifying your customer, and explaining the problem you solve.

If you are stuck when creating your company overview, try to answer some of these questions that pertain to you.

• Who are you targeting? (The answer is not everyone)
• What pain point does your product or service solve for your customers that they will be willing to spend money on resolving?
• How does your product or service overcome that pain point?
• Where is the location of your business?
• What products, equipment, and services do you need to run your business?
• How is your company’s product or service different from your competition in the eyes of your customers?
• How many employees do you need and what skills do you require them to have?

After answering some or all of these questions, you will get more than enough information you need to write your company overview or description section. When writing this section, describe what your company does for your customers.

The company description or overview section contains three elements: mission statement, history, and objectives.

• Mission Statement

The mission statement refers to the reason why your business or company is existing. It goes beyond what you do or sell, it is about the ‘why’. A good mission statement should be emotional and inspirational.

Your mission statement should follow the KISS rule (Keep It Simple, Stupid). For example, Shopify’s mission statement is “Make commerce better for everyone.”

When describing your company’s history, make it simple and avoid the temptation of tying it to a defensive narrative. Write it in the manner you would a profile. Your company’s history should include the following information:

• Founding Date
• Major Milestones
• Location(s)
• Flagship Products or Services
• Number of Employees
• Executive Leadership Roles

When you fill in this information, you use it to write one or two paragraphs about your company’s history.

Business Objectives

Your business objective must be SMART (specific, measurable, achievable, realistic, and time-bound.) Failure to clearly identify your business objectives does not inspire confidence and makes it hard for your team members to work towards a common purpose.

3. Perform Market and Competitive Analyses to Proof a Big Enough Business Opportunity

The third step in writing a business plan is the market and competitive analysis section. Every business, no matter the size, needs to perform comprehensive market and competitive analyses before it enters into a market.

Performing market and competitive analyses are critical for the success of your business. It helps you avoid entering the right market with the wrong product, or vice versa. Anyone reading your business plans, especially financiers and financial institutions will want to see proof that there is a big enough business opportunity you are targeting.

This section is where you describe the market and industry you want to operate in and show the big opportunities in the market that your business can leverage to make a profit. If you noticed any unique trends when doing your research, show them in this section.

Market analysis alone is not enough, you have to add competitive analysis to strengthen this section. There are already businesses in the industry or market, how do you plan to take a share of the market from them?

You have to clearly illustrate the competitive landscape in your business plan. Are there areas your competitors are doing well? Are there areas where they are not doing so well? Show it.

Make it clear in this section why you are moving into the industry and what weaknesses are present there that you plan to explain. How are your competitors going to react to your market entry? How do you plan to get customers? Do you plan on taking your competitors' competitors, tap into other sources for customers, or both?

Illustrate the competitive landscape as well. What are your competitors doing well and not so well?

Answering these questions and thoughts will aid your market and competitive analysis of the opportunities in your space. Depending on how sophisticated your industry is, or the expectations of your financiers, you may need to carry out a more comprehensive market and competitive analysis to prove that big business opportunity.

Instead of looking at the market and competitive analyses as one entity, separating them will make the research even more comprehensive.

Market Analysis

Market analysis, boarding speaking, refers to research a business carried out on its industry, market, and competitors. It helps businesses gain a good understanding of their target market and the outlook of their industry. Before starting a company, it is vital to carry out market research to find out if the market is viable.

The market analysis section is a key part of the business plan. It is the section where you identify who your best clients or customers are. You cannot omit this section, without it your business plan is incomplete.

A good market analysis will tell your readers how you fit into the existing market and what makes you stand out. This section requires in-depth research, it will probably be the most time-consuming part of the business plan to write.

• Market Research

To create a compelling market analysis that will win over investors and financial institutions, you have to carry out thorough market research . Your market research should be targeted at your primary target market for your products or services. Here is what you want to find out about your target market.

• Your target market’s needs or pain points
• The existing solutions for their pain points
• Geographic Location
• Demographics

The purpose of carrying out a marketing analysis is to get all the information you need to show that you have a solid and thorough understanding of your target audience.

Only after you have fully understood the people you plan to sell your products or services to, can you evaluate correctly if your target market will be interested in your products or services.

You can easily convince interested parties to invest in your business if you can show them you thoroughly understand the market and show them that there is a market for your products or services.

How to Quantify Your Target Market

One of the goals of your marketing research is to understand who your ideal customers are and their purchasing power. To quantify your target market, you have to determine the following:

• Your Potential Customers: They are the people you plan to target. For example, if you sell accounting software for small businesses , then anyone who runs an enterprise or large business is unlikely to be your customers. Also, individuals who do not have a business will most likely not be interested in your product.
• Total Households: If you are selling household products such as heating and air conditioning systems, determining the number of total households is more important than finding out the total population in the area you want to sell to. The logic is simple, people buy the product but it is the household that uses it.
• Median Income: You need to know the median income of your target market. If you target a market that cannot afford to buy your products and services, your business will not last long.
• Income by Demographics: If your potential customers belong to a certain age group or gender, determining income levels by demographics is necessary. For example, if you sell men's clothes, your target audience is men.

What Does a Good Market Analysis Entail?

Your business does not exist on its own, it can only flourish within an industry and alongside competitors. Market analysis takes into consideration your industry, target market, and competitors. Understanding these three entities will drastically improve your company’s chances of success.

You can view your market analysis as an examination of the market you want to break into and an education on the emerging trends and themes in that market. Good market analyses include the following:

• Industry Description. You find out about the history of your industry, the current and future market size, and who the largest players/companies are in your industry.
• Overview of Target Market. You research your target market and its characteristics. Who are you targeting? Note, it cannot be everyone, it has to be a specific group. You also have to find out all information possible about your customers that can help you understand how and why they make buying decisions.
• Size of Target Market: You need to know the size of your target market, how frequently they buy, and the expected quantity they buy so you do not risk overproducing and having lots of bad inventory. Researching the size of your target market will help you determine if it is big enough for sustained business or not.
• Growth Potential: Before picking a target market, you want to be sure there are lots of potential for future growth. You want to avoid going for an industry that is declining slowly or rapidly with almost zero growth potential.
• Market Share Potential: Does your business stand a good chance of taking a good share of the market?
• Market Pricing and Promotional Strategies: Your market analysis should give you an idea of the price point you can expect to charge for your products and services. Researching your target market will also give you ideas of pricing strategies you can implement to break into the market or to enjoy maximum profits.
• Potential Barriers to Entry: One of the biggest benefits of conducting market analysis is that it shows you every potential barrier to entry your business will likely encounter. It is a good idea to discuss potential barriers to entry such as changing technology. It informs readers of your business plan that you understand the market.
• Research on Competitors: You need to know the strengths and weaknesses of your competitors and how you can exploit them for the benefit of your business. Find patterns and trends among your competitors that make them successful, discover what works and what doesn’t, and see what you can do better.

The market analysis section is not just for talking about your target market, industry, and competitors. You also have to explain how your company can fill the hole you have identified in the market.

Here are some questions you can answer that can help you position your product or service in a positive light to your readers.

• Is your product or service of superior quality?
• What additional features do you offer that your competitors do not offer?
• Are you targeting a ‘new’ market?

Basically, your market analysis should include an analysis of what already exists in the market and an explanation of how your company fits into the market.

Competitive Analysis

In the competitive analysis section, y ou have to understand who your direct and indirect competitions are, and how successful they are in the marketplace. It is the section where you assess the strengths and weaknesses of your competitors, the advantage(s) they possess in the market and show the unique features or qualities that make you different from your competitors.

Many businesses do market analysis and competitive analysis together. However, to fully understand what the competitive analysis entails, it is essential to separate it from the market analysis.

Competitive analysis for your business can also include analysis on how to overcome barriers to entry in your target market.

The primary goal of conducting a competitive analysis is to distinguish your business from your competitors. A strong competitive analysis is essential if you want to convince potential funding sources to invest in your business. You have to show potential investors and lenders that your business has what it takes to compete in the marketplace successfully.

Competitive analysis will s how you what the strengths of your competition are and what they are doing to maintain that advantage.

When doing your competitive research, you first have to identify your competitor and then get all the information you can about them. The idea of spending time to identify your competitor and learn everything about them may seem daunting but it is well worth it.

Find answers to the following questions after you have identified who your competitors are.

• What are your successful competitors doing?
• Why is what they are doing working?
• Can your business do it better?
• What are the weaknesses of your successful competitors?
• What are they not doing well?
• Can your business turn its weaknesses into strengths?
• How good is your competitors’ customer service?
• Where do your competitors invest in advertising?
• What sales and pricing strategies are they using?
• What marketing strategies are they using?
• What kind of press coverage do they get?
• What are their customers saying about your competitors (both the positive and negative)?

If your competitors have a website, it is a good idea to visit their websites for more competitors’ research. Check their “About Us” page for more information.

If you are presenting your business plan to investors, you need to clearly distinguish yourself from your competitors. Investors can easily tell when you have not properly researched your competitors.

Take time to think about what unique qualities or features set you apart from your competitors. If you do not have any direct competition offering your product to the market, it does not mean you leave out the competitor analysis section blank. Instead research on other companies that are providing a similar product, or whose product is solving the problem your product solves.

The next step is to create a table listing the top competitors you want to include in your business plan. Ensure you list your business as the last and on the right. What you just created is known as the competitor analysis table.

Direct vs Indirect Competition

You cannot know if your product or service will be a fit for your target market if you have not understood your business and the competitive landscape.

There is no market you want to target where you will not encounter competition, even if your product is innovative. Including competitive analysis in your business plan is essential.

If you are entering an established market, you need to explain how you plan to differentiate your products from the available options in the market. Also, include a list of few companies that you view as your direct competitors The competition you face in an established market is your direct competition.

In situations where you are entering a market with no direct competition, it does not mean there is no competition there. Consider your indirect competition that offers substitutes for the products or services you offer.

For example, if you sell an innovative SaaS product, let us say a project management software , a company offering time management software is your indirect competition.

There is an easy way to find out who your indirect competitors are in the absence of no direct competitors. You simply have to research how your potential customers are solving the problems that your product or service seeks to solve. That is your direct competition.

Factors that Differentiate Your Business from the Competition

There are three main factors that any business can use to differentiate itself from its competition. They are cost leadership, product differentiation, and market segmentation.

1. Cost Leadership

A strategy you can impose to maximize your profits and gain an edge over your competitors. It involves offering lower prices than what the majority of your competitors are offering.

A common practice among businesses looking to enter into a market where there are dominant players is to use free trials or pricing to attract as many customers as possible to their offer.

2. Product Differentiation

Your product or service should have a unique selling proposition (USP) that your competitors do not have or do not stress in their marketing.

Part of the marketing strategy should involve making your products unique and different from your competitors. It does not have to be different from your competitors, it can be the addition to a feature or benefit that your competitors do not currently have.

3. Market Segmentation

As a new business seeking to break into an industry, you will gain more success from focusing on a specific niche or target market, and not the whole industry.

If your competitors are focused on a general need or target market, you can differentiate yourself from them by having a small and hyper-targeted audience. For example, if your competitors are selling men’s clothes in their online stores , you can sell hoodies for men.

4. Define Your Business and Management Structure

The next step in your business plan is your business and management structure. It is the section where you describe the legal structure of your business and the team running it.

Your business is only as good as the management team that runs it, while the management team can only strive when there is a proper business and management structure in place.

If your company is a sole proprietor or a limited liability company (LLC), a general or limited partnership, or a C or an S corporation, state it clearly in this section.

Use an organizational chart to show the management structure in your business. Clearly show who is in charge of what area in your company. It is where you show how each key manager or team leader’s unique experience can contribute immensely to the success of your company. You can also opt to add the resumes and CVs of the key players in your company.

The business and management structure section should show who the owner is, and other owners of the businesses (if the business has other owners). For businesses or companies with multiple owners, include the percent ownership of the various owners and clearly show the extent of each others’ involvement in the company.

Investors want to know who is behind the company and the team running it to determine if it has the right management to achieve its set goals.

Management Team

The management team section is where you show that you have the right team in place to successfully execute the business operations and ideas. Take time to create the management structure for your business. Think about all the important roles and responsibilities that you need managers for to grow your business.

Include brief bios of each key team member and ensure you highlight only the relevant information that is needed. If your team members have background industry experience or have held top positions for other companies and achieved success while filling that role, highlight it in this section.

A common mistake that many startups make is assigning C-level titles such as (CMO and CEO) to everyone on their team. It is unrealistic for a small business to have those titles. While it may look good on paper for the ego of your team members, it can prevent investors from investing in your business.

Instead of building an unrealistic management structure that does not fit your business reality, it is best to allow business titles to grow as the business grows. Starting everyone at the top leaves no room for future change or growth, which is bad for productivity.

Your management team does not have to be complete before you start writing your business plan. You can have a complete business plan even when there are managerial positions that are empty and need filling.

If you have management gaps in your team, simply show the gaps and indicate you are searching for the right candidates for the role(s). Investors do not expect you to have a full management team when you are just starting your business.

Key Questions to Answer When Structuring Your Management Team

• Who are the key leaders?
• What experiences, skills, and educational backgrounds do you expect your key leaders to have?
• Do your key leaders have industry experience?
• What positions will they fill and what duties will they perform in those positions?
• What level of authority do the key leaders have and what are their responsibilities?
• What is the salary for the various management positions that will attract the ideal candidates?

Additional Tips for Writing the Management Structure Section

1. Avoid Adding ‘Ghost’ Names to Your Management Team

There is always that temptation to include a ‘ghost’ name to your management team to attract and influence investors to invest in your business. Although the presence of these celebrity management team members may attract the attention of investors, it can cause your business to lose any credibility if you get found out.

Seasoned investors will investigate further the members of your management team before committing fully to your business If they find out that the celebrity name used does not play any actual role in your business, they will not invest and may write you off as dishonest.

2. Focus on Credentials But Pay Extra Attention to the Roles

Investors want to know the experience that your key team members have to determine if they can successfully reach the company’s growth and financial goals.

While it is an excellent boost for your key management team to have the right credentials, you also want to pay extra attention to the roles they will play in your company.

Organizational Chart

Adding an organizational chart in this section of your business plan is not necessary, you can do it in your business plan’s appendix.

If you are exploring funding options, it is not uncommon to get asked for your organizational chart. The function of an organizational chart goes beyond raising money, you can also use it as a useful planning tool for your business.

An organizational chart can help you identify how best to structure your management team for maximum productivity and point you towards key roles you need to fill in the future.

You can use the organizational chart to show your company’s internal management structure such as the roles and responsibilities of your management team, and relationships that exist between them.

5. Describe Your Product and Service Offering

In your business plan, you have to describe what you sell or the service you plan to offer. It is the next step after defining your business and management structure. The products and services section is where you sell the benefits of your business.

Here you have to explain how your product or service will benefit your customers and describe your product lifecycle. It is also the section where you write down your plans for intellectual property like patent filings and copyrighting.

The research and development that you are undertaking for your product or service need to be explained in detail in this section. However, do not get too technical, sell the general idea and its benefits.

If you have any diagrams or intricate designs of your product or service, do not include them in the products and services section. Instead, leave them for the addendum page. Also, if you are leaving out diagrams or designs for the addendum, ensure you add this phrase “For more detail, visit the addendum Page #.”

Your product and service section in your business plan should include the following:

• A detailed explanation that clearly shows how your product or service works.
• The pricing model for your product or service.
• Your business’ sales and distribution strategy.
• The ideal customers that want your product or service.
• The benefits of your products and services.
• Reason(s) why your product or service is a better alternative to what your competitors are currently offering in the market.
• Plans for filling the orders you receive
• If you have current or pending patents, copyrights, and trademarks for your product or service, you can also discuss them in this section.

What to Focus On When Describing the Benefits, Lifecycle, and Production Process of Your Products or Services

In the products and services section, you have to distill the benefits, lifecycle, and production process of your products and services.

When describing the benefits of your products or services, here are some key factors to focus on.

• Unique features
• Translating the unique features into benefits
• The emotional, psychological, and practical payoffs to attract customers
• Intellectual property rights or any patents

When describing the product life cycle of your products or services, here are some key factors to focus on.

• Upsells, cross-sells, and down-sells
• Time between purchases
• Plans for research and development.

When describing the production process for your products or services, you need to think about the following:

• The creation of new or existing products and services.
• The sources for the raw materials or components you need for production.
• Assembling the products
• Maintaining quality control
• Supply-chain logistics (receiving the raw materials and delivering the finished products)
• The day-to-day management of the production processes, bookkeeping, and inventory.

Tips for Writing the Products or Services Section of Your Business Plan

1. Avoid Technical Descriptions and Industry Buzzwords

The products and services section of your business plan should clearly describe the products and services that your company provides. However, it is not a section to include technical jargons that anyone outside your industry will not understand.

A good practice is to remove highly detailed or technical descriptions in favor of simple terms. Industry buzzwords are not necessary, if there are simpler terms you can use, then use them. If you plan to use your business plan to source funds, making the product or service section so technical will do you no favors.

2. Describe How Your Products or Services Differ from Your Competitors

When potential investors look at your business plan, they want to know how the products and services you are offering differ from that of your competition. Differentiating your products or services from your competition in a way that makes your solution more attractive is critical.

If you are going the innovative path and there is no market currently for your product or service, you need to describe in this section why the market needs your product or service.

For example, overnight delivery was a niche business that only a few companies were participating in. Federal Express (FedEx) had to show in its business plan that there was a large opportunity for that service and they justified why the market needed that service.

3. Long or Short Products or Services Section

Should your products or services section be short? Does the long products or services section attract more investors?

There are no straightforward answers to these questions. Whether your products or services section should be long or relatively short depends on the nature of your business.

If your business is product-focused, then automatically you need to use more space to describe the details of your products. However, if the product your business sells is a commodity item that relies on competitive pricing or other pricing strategies, you do not have to use up so much space to provide significant details about the product.

Likewise, if you are selling a commodity that is available in numerous outlets, then you do not have to spend time on writing a long products or services section.

The key to the success of your business is most likely the effectiveness of your marketing strategies compared to your competitors. Use more space to address that section.

If you are creating a new product or service that the market does not know about, your products or services section can be lengthy. The reason why is because you need to explain everything about the product or service such as the nature of the product, its use case, and values.

A short products or services section for an innovative product or service will not give the readers enough information to properly evaluate your business.

4. Describe Your Relationships with Vendors or Suppliers

Your business will rely on vendors or suppliers to supply raw materials or the components needed to make your products. In your products and services section, describe your relationships with your vendors and suppliers fully.

Avoid the mistake of relying on only one supplier or vendor. If that supplier or vendor fails to supply or goes out of business, you can easily face supply problems and struggle to meet your demands. Plan to set up multiple vendor or supplier relationships for better business stability.

5. Your Primary Goal Is to Convince Your Readers

The primary goal of your business plan is to convince your readers that your business is viable and to create a guide for your business to follow. It applies to the products and services section.

When drafting this section, think like the reader. See your reader as someone who has no idea about your products and services. You are using the products and services section to provide the needed information to help your reader understand your products and services. As a result, you have to be clear and to the point.

While you want to educate your readers about your products or services, you also do not want to bore them with lots of technical details. Show your products and services and not your fancy choice of words.

Your products and services section should provide the answer to the “what” question for your business. You and your management team may run the business, but it is your products and services that are the lifeblood of the business.

Key Questions to Answer When Writing your Products and Services Section

Answering these questions can help you write your products and services section quickly and in a way that will appeal to your readers.

• Are your products existing on the market or are they still in the development stage?
• What is your timeline for adding new products and services to the market?
• What are the positives that make your products and services different from your competitors?
• Do your products and services have any competitive advantage that your competitors’ products and services do not currently have?
• Do your products or services have any competitive disadvantages that you need to overcome to compete with your competitors? If your answer is yes, state how you plan to overcome them,
• How much does it cost to produce your products or services? How much do you plan to sell it for?
• What is the price for your products and services compared to your competitors? Is pricing an issue?
• What are your operating costs and will it be low enough for you to compete with your competitors and still take home a reasonable profit margin?
• What is your plan for acquiring your products? Are you involved in the production of your products or services?
• Are you the manufacturer and produce all the components you need to create your products? Do you assemble your products by using components supplied by other manufacturers? Do you purchase your products directly from suppliers or wholesalers?
• Do you have a steady supply of products that you need to start your business? (If your business is yet to kick-off)
• How do you plan to distribute your products or services to the market?

You can also hint at the marketing or promotion plans you have for your products or services such as how you plan to build awareness or retain customers. The next section is where you can go fully into details about your business’s marketing and sales plan.

6. Show and Explain Your Marketing and Sales Plan

Providing great products and services is wonderful, but it means nothing if you do not have a marketing and sales plan to inform your customers about them. Your marketing and sales plan is critical to the success of your business.

The sales and marketing section is where you show and offer a detailed explanation of your marketing and sales plan and how you plan to execute it. It covers your pricing plan, proposed advertising and promotion activities, activities and partnerships you need to make your business a success, and the benefits of your products and services.

There are several ways you can approach your marketing and sales strategy. Ideally, your marketing and sales strategy has to fit the unique needs of your business.

In this section, you describe how the plans your business has for attracting and retaining customers, and the exact process for making a sale happen. It is essential to thoroughly describe your complete marketing and sales plans because you are still going to reference this section when you are making financial projections for your business.

Outline Your Business’ Unique Selling Proposition (USP)

The sales and marketing section is where you outline your business’s unique selling proposition (USP). When you are developing your unique selling proposition, think about the strongest reasons why people should buy from you over your competition. That reason(s) is most likely a good fit to serve as your unique selling proposition (USP).

Target Market and Target Audience

Plans on how to get your products or services to your target market and how to get your target audience to buy them go into this section. You also highlight the strengths of your business here, particularly what sets them apart from your competition.

Before you start writing your marketing and sales plan, you need to have properly defined your target audience and fleshed out your buyer persona. If you do not first understand the individual you are marketing to, your marketing and sales plan will lack any substance and easily fall.

Creating a Smart Marketing and Sales Plan

Marketing your products and services is an investment that requires you to spend money. Like any other investment, you have to generate a good return on investment (ROI) to justify using that marketing and sales plan. Good marketing and sales plans bring in high sales and profits to your company.

Avoid spending money on unproductive marketing channels. Do your research and find out the best marketing and sales plan that works best for your company.

Your marketing and sales plan can be broken into different parts: your positioning statement, pricing, promotion, packaging, advertising, public relations, content marketing, social media, and strategic alliances.

Your Positioning Statement

Your positioning statement is the first part of your marketing and sales plan. It refers to the way you present your company to your customers.

Are you the premium solution, the low-price solution, or are you the intermediary between the two extremes in the market? What do you offer that your competitors do not that can give you leverage in the market?

Before you start writing your positioning statement, you need to spend some time evaluating the current market conditions. Here are some questions that can help you to evaluate the market

• What are the unique features or benefits that you offer that your competitors lack?
• What are your customers’ primary needs and wants?
• Why should a customer choose you over your competition? How do you plan to differentiate yourself from the competition?
• How does your company’s solution compare with other solutions in the market?

After answering these questions, then you can start writing your positioning statement. Your positioning statement does not have to be in-depth or too long.

All you need to explain with your positioning statement are two focus areas. The first is the position of your company within the competitive landscape. The other focus area is the core value proposition that sets your company apart from other alternatives that your ideal customer might consider.

Here is a simple template you can use to develop a positioning statement.

For [description of target market] who [need of target market], [product or service] [how it meets the need]. Unlike [top competition], it [most essential distinguishing feature].

For example, let’s create the positioning statement for fictional accounting software and QuickBooks alternative , TBooks.

“For small business owners who need accounting services, TBooks is an accounting software that helps small businesses handle their small business bookkeeping basics quickly and easily. Unlike Wave, TBooks gives small businesses access to live sessions with top accountants.”

You can edit this positioning statement sample and fill it with your business details.

After writing your positioning statement, the next step is the pricing of your offerings. The overall positioning strategy you set in your positioning statement will often determine how you price your products or services.

Pricing is a powerful tool that sends a strong message to your customers. Failure to get your pricing strategy right can make or mar your business. If you are targeting a low-income audience, setting a premium price can result in low sales.

You can use pricing to communicate your positioning to your customers. For example, if you are offering a product at a premium price, you are sending a message to your customers that the product belongs to the premium category.

Basic Rules to Follow When Pricing Your Offering

Setting a price for your offering involves more than just putting a price tag on it. Deciding on the right pricing for your offering requires following some basic rules. They include covering your costs, primary and secondary profit center pricing, and matching the market rate.

• Covering Your Costs: The price you set for your products or service should be more than it costs you to produce and deliver them. Every business has the same goal, to make a profit. Depending on the strategy you want to use, there are exceptions to this rule. However, the vast majority of businesses follow this rule.
• Primary and Secondary Profit Center Pricing: When a company sets its price above the cost of production, it is making that product its primary profit center. A company can also decide not to make its initial price its primary profit center by selling below or at even with its production cost. It rather depends on the support product or even maintenance that is associated with the initial purchase to make its profit. The initial price thus became its secondary profit center.
• Matching the Market Rate: A good rule to follow when pricing your products or services is to match your pricing with consumer demand and expectations. If you price your products or services beyond the price your customer perceives as the ideal price range, you may end up with no customers. Pricing your products too low below what your customer perceives as the ideal price range may lead to them undervaluing your offering.

Pricing Strategy

Your pricing strategy influences the price of your offering. There are several pricing strategies available for you to choose from when examining the right pricing strategy for your business. They include cost-plus pricing, market-based pricing, value pricing, and more.

• Cost-plus Pricing: This strategy is one of the simplest and oldest pricing strategies. Here you consider the cost of producing a unit of your product and then add a profit to it to arrive at your market price. It is an effective pricing strategy for manufacturers because it helps them cover their initial costs. Another name for the cost-plus pricing strategy is the markup pricing strategy.
• Market-based Pricing: This pricing strategy analyses the market including competitors’ pricing and then sets a price based on what the market is expecting. With this pricing strategy, you can either set your price at the low-end or high-end of the market.
• Value Pricing: This pricing strategy involves setting a price based on the value you are providing to your customer. When adopting a value-based pricing strategy, you have to set a price that your customers are willing to pay. Service-based businesses such as small business insurance providers , luxury goods sellers, and the fashion industry use this pricing strategy.

After carefully sorting out your positioning statement and pricing, the next item to look at is your promotional strategy. Your promotional strategy explains how you plan on communicating with your customers and prospects.

As a business, you must measure all your costs, including the cost of your promotions. You also want to measure how much sales your promotions bring for your business to determine its usefulness. Promotional strategies or programs that do not lead to profit need to be removed.

There are different types of promotional strategies you can adopt for your business, they include advertising, public relations, and content marketing.

Advertising

Your business plan should include your advertising plan which can be found in the marketing and sales plan section. You need to include an overview of your advertising plans such as the areas you plan to spend money on to advertise your business and offers.

Ensure that you make it clear in this section if your business will be advertising online or using the more traditional offline media, or the combination of both online and offline media. You can also include the advertising medium you want to use to raise awareness about your business and offers.

Some common online advertising mediums you can use include social media ads, landing pages, sales pages, SEO, Pay-Per-Click, emails, Google Ads, and others. Some common traditional and offline advertising mediums include word of mouth, radios, direct mail, televisions, flyers, billboards, posters, and others.

A key component of your advertising strategy is how you plan to measure the effectiveness and success of your advertising campaign. There is no point in sticking with an advertising plan or medium that does not produce results for your business in the long run.

Public Relations

A great way to reach your customers is to get the media to cover your business or product. Publicity, especially good ones, should be a part of your marketing and sales plan. In this section, show your plans for getting prominent reviews of your product from reputable publications and sources.

Your business needs that exposure to grow. If public relations is a crucial part of your promotional strategy, provide details about your public relations plan here.

Content Marketing

Content marketing is a popular promotional strategy used by businesses to inform and attract their customers. It is about teaching and educating your prospects on various topics of interest in your niche, it does not just involve informing them about the benefits and features of the products and services you have,

Businesses publish content usually for free where they provide useful information, tips, and advice so that their target market can be made aware of the importance of their products and services. Content marketing strategies seek to nurture prospects into buyers over time by simply providing value.

Your company can create a blog where it will be publishing content for its target market. You will need to use the best website builder such as Wix and Squarespace and the best web hosting services such as Bluehost, Hostinger, and other Bluehost alternatives to create a functional blog or website.

If content marketing is a crucial part of your promotional strategy (as it should be), detail your plans under promotions.

Including high-quality images of the packaging of your product in your business plan is a lovely idea. You can add the images of the packaging of that product in the marketing and sales plan section. If you are not selling a product, then you do not need to include any worry about the physical packaging of your product.

When organizing the packaging section of your business plan, you can answer the following questions to make maximum use of this section.

• Is your choice of packaging consistent with your positioning strategy?
• What key value proposition does your packaging communicate? (It should reflect the key value proposition of your business)
• How does your packaging compare to that of your competitors?

Social Media

Your 21st-century business needs to have a good social media presence. Not having one is leaving out opportunities for growth and reaching out to your prospect.

You do not have to join the thousands of social media platforms out there. What you need to do is join the ones that your customers are active on and be active there.

Businesses use social media to provide information about their products such as promotions, discounts, the benefits of their products, and content on their blogs.

Social media is also a platform for engaging with your customers and getting feedback about your products or services. Make no mistake, more and more of your prospects are using social media channels to find more information about companies.

You need to consider the social media channels you want to prioritize your business (prioritize the ones your customers are active in) and your branding plans in this section.

Strategic Alliances

If your company plans to work closely with other companies as part of your sales and marketing plan, include it in this section. Prove details about those partnerships in your business plan if you have already established them.

Strategic alliances can be beneficial for all parties involved including your company. Working closely with another company in the form of a partnership can provide access to a different target market segment for your company.

The company you are partnering with may also gain access to your target market or simply offer a new product or service (that of your company) to its customers.

Mutually beneficial partnerships can cover the weaknesses of one company with the strength of another. You should consider strategic alliances with companies that sell complimentary products to yours. For example, if you provide printers, you can partner with a company that produces ink since the customers that buy printers from you will also need inks for printing.

Steps Involved in Creating a Marketing and Sales Plan

1. Focus on Your Target Market

Identify who your customers are, the market you want to target. Then determine the best ways to get your products or services to your potential customers.

2. Evaluate Your Competition

One of the goals of having a marketing plan is to distinguish yourself from your competition. You cannot stand out from them without first knowing them in and out.

You can know your competitors by gathering information about their products, pricing, service, and advertising campaigns.

These questions can help you know your competition.

• What makes your competition successful?
• What are their weaknesses?
• What are customers saying about your competition?

3. Consider Your Brand

Customers' perception of your brand has a strong impact on your sales. Your marketing and sales plan should seek to bolster the image of your brand. Before you start marketing your business, think about the message you want to pass across about your business and your products and services.

4. Focus on Benefits

The majority of your customers do not view your product in terms of features, what they want to know is the benefits and solutions your product offers. Think about the problems your product solves and the benefits it delivers, and use it to create the right sales and marketing message.

Your marketing plan should focus on what you want your customer to get instead of what you provide. Identify those benefits in your marketing and sales plan.

5. Focus on Differentiation

Your marketing and sales plan should look for a unique angle they can take that differentiates your business from the competition, even if the products offered are similar. Some good areas of differentiation you can use are your benefits, pricing, and features.

Key Questions to Answer When Writing Your Marketing and Sales Plan

• What is your company’s budget for sales and marketing campaigns?
• What key metrics will you use to determine if your marketing plans are successful?
• What are your alternatives if your initial marketing efforts do not succeed?
• Who are the sales representatives you need to promote your products or services?
• What are the marketing and sales channels you plan to use? How do you plan to get your products in front of your ideal customers?
• Where will you sell your products?

You may want to include samples of marketing materials you plan to use such as print ads, website descriptions, and social media ads. While it is not compulsory to include these samples, it can help you better communicate your marketing and sales plan and objectives.

The purpose of the marketing and sales section is to answer this question “How will you reach your customers?” If you cannot convincingly provide an answer to this question, you need to rework your marketing and sales section.

7. Clearly Show Your Funding Request

If you are writing your business plan to ask for funding from investors or financial institutions, the funding request section is where you will outline your funding requirements. The funding request section should answer the question ‘How much money will your business need in the near future (3 to 5 years)?’

A good funding request section will clearly outline and explain the amount of funding your business needs over the next five years. You need to know the amount of money your business needs to make an accurate funding request.

Also, when writing your funding request, provide details of how the funds will be used over the period. Specify if you want to use the funds to buy raw materials or machinery, pay salaries, pay for advertisements, and cover specific bills such as rent and electricity.

In addition to explaining what you want to use the funds requested for, you need to clearly state the projected return on investment (ROI) . Investors and creditors want to know if your business can generate profit for them if they put funds into it.

Ensure you do not inflate the figures and stay as realistic as possible. Investors and financial institutions you are seeking funds from will do their research before investing money in your business.

If you are not sure of an exact number to request from, you can use some range of numbers as rough estimates. Add a best-case scenario and a work-case scenario to your funding request. Also, include a description of your strategic future financial plans such as selling your business or paying off debts.

Funding Request: Debt or Equity?

When making your funding request, specify the type of funding you want. Do you want debt or equity? Draw out the terms that will be applicable for the funding, and the length of time the funding request will cover.

Case for Equity

If your new business has not yet started generating profits, you are most likely preparing to sell equity in your business to raise capital at the early stage. Equity here refers to ownership. In this case, you are selling a portion of your company to raise capital.

Although this method of raising capital for your business does not put your business in debt, keep in mind that an equity owner may expect to play a key role in company decisions even if he does not hold a major stake in the company.

Most equity sales for startups are usually private transactions . If you are making a funding request by offering equity in exchange for funding, let the investor know that they will be paid a dividend (a share of the company’s profit). Also, let the investor know the process for selling their equity in your business.

Case for Debt

You may decide not to offer equity in exchange for funds, instead, you make a funding request with the promise to pay back the money borrowed at the agreed time frame.

When making a funding request with an agreement to pay back, note that you will have to repay your creditors both the principal amount borrowed and the interest on it. Financial institutions offer this type of funding for businesses.

Large companies combine both equity and debt in their capital structure. When drafting your business plan, decide if you want to offer both or one over the other.

Before you sell equity in exchange for funding in your business, consider if you are willing to accept not being in total control of your business. Also, before you seek loans in your funding request section, ensure that the terms of repayment are favorable.

You should set a clear timeline in your funding request so that potential investors and creditors can know what you are expecting. Some investors and creditors may agree to your funding request and then delay payment for longer than 30 days, meanwhile, your business needs an immediate cash injection to operate efficiently.

Additional Tips for Writing the Funding Request Section of your Business Plan

The funding request section is not necessary for every business, it is only needed by businesses who plan to use their business plan to secure funding.

If you are adding the funding request section to your business plan, provide an itemized summary of how you plan to use the funds requested. Hiring a lawyer, accountant, or other professionals may be necessary for the proper development of this section.

You should also gather and use financial statements that add credibility and support to your funding requests. Ensure that the financial statements you use should include your projected financial data such as projected cash flows, forecast statements, and expenditure budgets.

If you are an existing business, include all historical financial statements such as cash flow statements, balance sheets and income statements .

Provide monthly and quarterly financial statements for a year. If your business has records that date back beyond the one-year mark, add the yearly statements of those years. These documents are for the appendix section of your business plan.

8. Detail Your Financial Plan, Metrics, and Projections

If you used the funding request section in your business plan, supplement it with a financial plan, metrics, and projections. This section paints a picture of the past performance of your business and then goes ahead to make an informed projection about its future.

The goal of this section is to convince readers that your business is going to be a financial success. It outlines your business plan to generate enough profit to repay the loan (with interest if applicable) and to generate a decent return on investment for investors.

If you have an existing business already in operation, use this section to demonstrate stability through finance. This section should include your cash flow statements, balance sheets, and income statements covering the last three to five years. If your business has some acceptable collateral that you can use to acquire loans, list it in the financial plan, metrics, and projection section.

Apart from current financial statements, this section should also contain a prospective financial outlook that spans the next five years. Include forecasted income statements, cash flow statements, balance sheets, and capital expenditure budget.

If your business is new and is not yet generating profit, use clear and realistic projections to show the potentials of your business.

When drafting this section, research industry norms and the performance of comparable businesses. Your financial projections should cover at least five years. State the logic behind your financial projections. Remember you can always make adjustments to this section as the variables change.

The financial plan, metrics, and projection section create a baseline which your business can either exceed or fail to reach. If your business fails to reach your projections in this section, you need to understand why it failed.

Investors and loan managers spend a lot of time going through the financial plan, metrics, and projection section compared to other parts of the business plan. Ensure you spend time creating credible financial analyses for your business in this section.

Many entrepreneurs find this section daunting to write. You do not need a business degree to create a solid financial forecast for your business. Business finances, especially for startups, are not as complicated as they seem. There are several online tools and templates that make writing this section so much easier.

Use Graphs and Charts

The financial plan, metrics, and projection section is a great place to use graphs and charts to tell the financial story of your business. Charts and images make it easier to communicate your finances.

Accuracy in this section is key, ensure you carefully analyze your past financial statements properly before making financial projects.

Address the Risk Factors and Show Realistic Financial Projections

Keep your financial plan, metrics, and projection realistic. It is okay to be optimistic in your financial projection, however, you have to justify it.

You should also address the various risk factors associated with your business in this section. Investors want to know the potential risks involved, show them. You should also show your plans for mitigating those risks.

What You Should In The Financial Plan, Metrics, and Projection Section of Your Business Plan

The financial plan, metrics, and projection section of your business plan should have monthly sales and revenue forecasts for the first year. It should also include annual projections that cover 3 to 5 years.

A three-year projection is a basic requirement to have in your business plan. However, some investors may request a five-year forecast.

Your business plan should include the following financial statements: sales forecast, personnel plan, income statement, income statement, cash flow statement, balance sheet, and an exit strategy.

1. Sales Forecast

Sales forecast refers to your projections about the number of sales your business is going to record over the next few years. It is typically broken into several rows, with each row assigned to a core product or service that your business is offering.

One common mistake people make in their business plan is to break down the sales forecast section into long details. A sales forecast should forecast the high-level details.

For example, if you are forecasting sales for a payroll software provider, you could break down your forecast into target market segments or subscription categories.

Your sales forecast section should also have a corresponding row for each sales row to cover the direct cost or Cost of Goods Sold (COGS). The objective of these rows is to show the expenses that your business incurs in making and delivering your product or service.

Note that your Cost of Goods Sold (COGS) should only cover those direct costs incurred when making your products. Other indirect expenses such as insurance, salaries, payroll tax, and rent should not be included.

For example, the Cost of Goods Sold (COGS) for a restaurant is the cost of ingredients while for a consulting company it will be the cost of paper and other presentation materials.

2. Personnel Plan

The personnel plan section is where you provide details about the payment plan for your employees. For a small business, you can easily list every position in your company and how much you plan to pay in the personnel plan.

However, for larger businesses, you have to break the personnel plan into functional groups such as sales and marketing.

The personnel plan will also include the cost of an employee beyond salary, commonly referred to as the employee burden. These costs include insurance, payroll taxes , and other essential costs incurred monthly as a result of having employees on your payroll.

3. Income Statement

The income statement section shows if your business is making a profit or taking a loss. Another name for the income statement is the profit and loss (P&L). It takes data from your sales forecast and personnel plan and adds other ongoing expenses you incur while running your business.

Every business plan should have an income statement. It subtracts your business expenses from its earnings to show if your business is generating profit or incurring losses.

The income statement has the following items: sales, Cost of Goods Sold (COGS), gross margin, operating expenses, total operating expenses, operating income , total expenses, and net profit.

• Sales refer to the revenue your business generates from selling its products or services. Other names for sales are income or revenue.
• Cost of Goods Sold (COGS) refers to the total cost of selling your products. Other names for COGS are direct costs or cost of sales. Manufacturing businesses use the Costs of Goods Manufactured (COGM) .
• Gross Margin is the figure you get when you subtract your COGS from your sales. In your income statement, you can express it as a percentage of total sales (Gross margin / Sales = Gross Margin Percent).
• Operating Expenses refer to all the expenses you incur from running your business. It exempts the COGS because it stands alone as a core part of your income statement. You also have to exclude taxes, depreciation, and amortization. Your operating expenses include salaries, marketing expenses, research and development (R&D) expenses, and other expenses.
• Total Operating Expenses refers to the sum of all your operating expenses including those exemptions named above under operating expenses.
• Operating Income refers to earnings before interest, taxes, depreciation, and amortization. It is simply known as the acronym EBITDA (earnings before interest, taxes, depreciation, and amortization). Calculating your operating income is simple, all you need to do is to subtract your COGS and total operating expenses from your sales.
• Total Expenses refer to the sum of your operating expenses and your business’ interest, taxes, depreciation, and amortization.
• Net profit shows whether your business has made a profit or taken a loss during a given timeframe.

4. Cash Flow Statement

The cash flow statement tracks the money you have in the bank at any given point. It is often confused with the income statement or the profit and loss statement. They are both different types of financial statements. The income statement calculates your profits and losses while the cash flow statement shows you how much you have in the bank.

5. Balance Sheet

The balance sheet is a financial statement that provides an overview of the financial health of your business. It contains information about the assets and liabilities of your company, and owner’s or shareholders’ equity.

You can get the net worth of your company by subtracting your company’s liabilities from its assets.

6. Exit Strategy

The exit strategy refers to a probable plan for selling your business either to the public in an IPO or to another company. It is the last thing you include in the financial plan, metrics, and projection section.

You can choose to omit the exit strategy from your business plan if you plan to maintain full ownership of your business and do not plan on seeking angel investment or virtual capitalist (VC) funding.

Investors may want to know what your exit plan is. They invest in your business to get a good return on investment.

Your exit strategy does not have to include long and boring details. Ensure you identify some interested parties who may be interested in buying the company if it becomes a success.

Key Questions to Answer with Your Financial Plan, Metrics, and Projection

Your financial plan, metrics, and projection section helps investors, creditors, or your internal managers to understand what your expenses are, the amount of cash you need, and what it takes to make your company profitable. It also shows what you will be doing with any funding.

You do not need to show actual financial data if you do not have one. Adding forecasts and projections to your financial statements is added proof that your strategy is feasible and shows investors you have planned properly.

Here are some key questions to answer to help you develop this section.

• What is your sales forecast for the next year?
• When will your company achieve a positive cash flow?
• What are the core expenses you need to operate?
• How much money do you need upfront to operate or grow your company?
• How will you use the loans or investments?

9. Add an Appendix to Your Business Plan

Adding an appendix to your business plan is optional. It is a useful place to put any charts, tables, legal notes, definitions, permits, résumés, and other critical information that do not fit into other sections of your business plan.

The appendix section is where you would want to include details of a patent or patent-pending if you have one. You can always add illustrations or images of your products here. It is the last section of your business plan.

When writing your business plan, there are details you cut short or remove to prevent the entire section from becoming too lengthy. There are also details you want to include in the business plan but are not a good fit for any of the previous sections. You can add that additional information to the appendix section.

Businesses also use the appendix section to include supporting documents or other materials specially requested by investors or lenders.

You can include just about any information that supports the assumptions and statements you made in the business plan under the appendix. It is the one place in the business plan where unrelated data and information can coexist amicably.

If your appendix section is lengthy, try organizing it by adding a table of contents at the beginning of the appendix section. It is also advisable to group similar information to make it easier for the reader to access them.

A well-organized appendix section makes it easier to share your information clearly and concisely. Add footnotes throughout the rest of the business plan or make references in the plan to the documents in the appendix.

The appendix section is usually only necessary if you are seeking funding from investors or lenders, or hoping to attract partners.

People reading business plans do not want to spend time going through a heap of backup information, numbers, and charts. Keep these documents or information in the Appendix section in case the reader wants to dig deeper.

Common Items to Include in the Appendix Section of Your Business Plan

The appendix section includes documents that supplement or support the information or claims given in other sections of the business plans. Common items you can include in the appendix section include:

• Additional data about the process of manufacturing or creation
• Additional description of products or services such as product schematics
• Additional financial documents or projections
• Articles of incorporation and status
• Backup for market research or competitive analysis
• Bank statements
• Business registries
• Client testimonials (if your business is already running)
• Copies of insurances
• Credit histories (personal or/and business)
• Deeds and permits
• Equipment leases
• Examples of marketing and advertising collateral
• Industry associations and memberships
• Images of product
• Intellectual property
• Key customer contracts
• Legal documents and other contracts
• Letters of reference
• Links to references
• Market research data
• Organizational charts
• Photographs of potential facilities
• Professional licenses pertaining to your legal structure or type of business
• Purchase orders
• Resumes of the founder(s) and key managers
• State and federal identification numbers or codes
• Trademarks or patents’ registrations

Avoid using the appendix section as a place to dump any document or information you feel like adding. Only add documents or information that you support or increase the credibility of your business plan.

Tips and Strategies for Writing a Convincing Business Plan

To achieve a perfect business plan, you need to consider some key tips and strategies. These tips will raise the efficiency of your business plan above average.

1. Know Your Audience

When writing a business plan, you need to know your audience . Business owners write business plans for different reasons. Your business plan has to be specific. For example, you can write business plans to potential investors, banks, and even fellow board members of the company.

The audience you are writing to determines the structure of the business plan. As a business owner, you have to know your audience. Not everyone will be your audience. Knowing your audience will help you to narrow the scope of your business plan.

Consider what your audience wants to see in your projects, the likely questions they might ask, and what interests them.

• A business plan used to address a company's board members will center on its employment schemes, internal affairs, projects, stakeholders, etc.
• A business plan for financial institutions will talk about the size of your market and the chances for you to pay back any loans you demand.
• A business plan for investors will show proof that you can return the investment capital within a specific time. In addition, it discusses your financial projections, tractions, and market size.

2. Get Inspiration from People

Writing a business plan from scratch as an entrepreneur can be daunting. That is why you need the right inspiration to push you to write one. You can gain inspiration from the successful business plans of other businesses. Look at their business plans, the style they use, the structure of the project, etc.

To make your business plan easier to create, search companies related to your business to get an exact copy of what you need to create an effective business plan. You can also make references while citing examples in your business plans.

When drafting your business plan, get as much help from others as you possibly can. By getting inspiration from people, you can create something better than what they have.

3. Avoid Being Over Optimistic

Many business owners make use of strong adjectives to qualify their content. One of the big mistakes entrepreneurs make when preparing a business plan is promising too much.

The use of superlatives and over-optimistic claims can prepare the audience for more than you can offer. In the end, you disappoint the confidence they have in you.

In most cases, the best option is to be realistic with your claims and statistics. Most of the investors can sense a bit of incompetency from the overuse of superlatives. As a new entrepreneur, do not be tempted to over-promise to get the interests of investors.

The concept of entrepreneurship centers on risks, nothing is certain when you make future analyses. What separates the best is the ability to do careful research and work towards achieving that, not promising more than you can achieve.

To make an excellent first impression as an entrepreneur, replace superlatives with compelling data-driven content. In this way, you are more specific than someone promising a huge ROI from an investment.

4. Keep it Simple and Short

When writing business plans, ensure you keep them simple throughout. Irrespective of the purpose of the business plan, your goal is to convince the audience.

One way to achieve this goal is to make them understand your proposal. Therefore, it would be best if you avoid the use of complex grammar to express yourself. It would be a huge turn-off if the people you want to convince are not familiar with your use of words.

Another thing to note is the length of your business plan. It would be best if you made it as brief as possible.

You hardly see investors or agencies that read through an extremely long document. In that case, if your first few pages can’t convince them, then you have lost it. The more pages you write, the higher the chances of you derailing from the essential contents.

To ensure your business plan has a high conversion rate, you need to dispose of every unnecessary information. For example, if you have a strategy that you are not sure of, it would be best to leave it out of the plan.

5. Make an Outline and Follow Through

A perfect business plan must have touched every part needed to convince the audience. Business owners get easily tempted to concentrate more on their products than on other sections. Doing this can be detrimental to the efficiency of the business plan.

For example, imagine you talking about a product but omitting or providing very little information about the target audience. You will leave your clients confused.

To ensure that your business plan communicates your full business model to readers, you have to input all the necessary information in it. One of the best ways to achieve this is to design a structure and stick to it.

This structure is what guides you throughout the writing. To make your work easier, you can assign an estimated word count or page limit to every section to avoid making it too bulky for easy reading. As a guide, the necessary things your business plan must contain are:

• Table of contents
• Introduction
• Product or service description
• Target audience
• Market size
• Competition analysis
• Financial projections

Some specific businesses can include some other essential sections, but these are the key sections that must be in every business plan.

6. Ask a Professional to Proofread

When writing a business plan, you must tie all loose ends to get a perfect result. When you are done with writing, call a professional to go through the document for you. You are bound to make mistakes, and the way to correct them is to get external help.

You should get a professional in your field who can relate to every section of your business plan. It would be easier for the professional to notice the inner flaws in the document than an editor with no knowledge of your business.

In addition to getting a professional to proofread, get an editor to proofread and edit your document. The editor will help you identify grammatical errors, spelling mistakes, and inappropriate writing styles.

Writing a business plan can be daunting, but you can surmount that obstacle and get the best out of it with these tips.

Business Plan Examples and Templates That’ll Save You Tons of Time

1. hubspot's one-page business plan.

The one-page business plan template by HubSpot is the perfect guide for businesses of any size, irrespective of their business strategy. Although the template is condensed into a page, your final business plan should not be a page long! The template is designed to ask helpful questions that can help you develop your business plan.

Hubspot’s one-page business plan template is divided into nine fields:

• Business opportunity
• Company description
• Industry analysis
• Target market
• Implementation timeline
• Marketing plan
• Financial summary
• Funding required

2. Bplan’s Free Business Plan Template

Bplans' free business plan template is investor-approved. It is a rich template used by prestigious educational institutions such as Babson College and Princeton University to teach entrepreneurs how to create a business plan.

The template has six sections: the executive summary, opportunity, execution, company, financial plan, and appendix. There is a step-by-step guide for writing every little detail in the business plan. Follow the instructions each step of the way and you will create a business plan that impresses investors or lenders easily.

3. HubSpot's Downloadable Business Plan Template

HubSpot’s downloadable business plan template is a more comprehensive option compared to the one-page business template by HubSpot. This free and downloadable business plan template is designed for entrepreneurs.

The template is a comprehensive guide and checklist for business owners just starting their businesses. It tells you everything you need to fill in each section of the business plan and how to do it.

There are nine sections in this business plan template: an executive summary, company and business description, product and services line, market analysis, marketing plan, sales plan, legal notes, financial considerations, and appendix.

4. Business Plan by My Own Business Institute

My Own Business Institute (MOBI) which is a part of Santa Clara University's Center for Innovation and Entrepreneurship offers a free business plan template. You can either copy the free business template from the link provided above or download it as a Word document.

The comprehensive template consists of a whopping 15 sections.

• The Business Profile
• The Vision and the People
• Home-Based Business and Freelance Business Opportunities
• Organization
• Licenses and Permits
• Business Insurance
• Communication Tools
• Acquisitions
• Location and Leasing
• Accounting and Cash Flow
• Opening and Marketing
• Managing Employees
• Expanding and Handling Problems

There are lots of helpful tips on how to fill each section in the free business plan template by MOBI.

5. Score's Business Plan Template for Startups

Score is an American nonprofit organization that helps entrepreneurs build successful companies. This business plan template for startups by Score is available for free download. The business plan template asks a whooping 150 generic questions that help entrepreneurs from different fields to set up the perfect business plan.

The business plan template for startups contains clear instructions and worksheets, all you have to do is answer the questions and fill the worksheets.

There are nine sections in the business plan template: executive summary, company description, products and services, marketing plan, operational plan, management and organization, startup expenses and capitalization, financial plan, and appendices.

The ‘refining the plan’ resource contains instructions that help you modify your business plan to suit your specific needs, industry, and target audience. After you have completed Score’s business plan template, you can work with a SCORE mentor for expert advice in business planning.

6. Minimalist Architecture Business Plan Template by Venngage

The minimalist architecture business plan template is a simple template by Venngage that you can customize to suit your business needs .

There are five sections in the template: an executive summary, statement of problem, approach and methodology, qualifications, and schedule and benchmark. The business plan template has instructions that guide users on what to fill in each section.

7. Small Business Administration Free Business Plan Template

The Small Business Administration (SBA) offers two free business plan templates, filled with practical real-life examples that you can model to create your business plan. Both free business plan templates are written by fictional business owners: Rebecca who owns a consulting firm, and Andrew who owns a toy company.

There are five sections in the two SBA’s free business plan templates.

• Executive Summary
• Company Description
• Service Line
• Marketing and Sales

8. The $100 Startup's One-Page Business Plan

The one-page business plan by the $100 startup is a simple business plan template for entrepreneurs who do not want to create a long and complicated plan . You can include more details in the appendices for funders who want more information beyond what you can put in the one-page business plan.

There are five sections in the one-page business plan such as overview, ka-ching, hustling, success, and obstacles or challenges or open questions. You can answer all the questions using one or two sentences.

9. PandaDoc’s Free Business Plan Template

The free business plan template by PandaDoc is a comprehensive 15-page document that describes the information you should include in every section.

There are 11 sections in PandaDoc’s free business plan template.

• Executive summary
• Business description
• Products and services
• Operations plan
• Management organization
• Financial plan
• Conclusion / Call to action
• Confidentiality statement

You have to sign up for its 14-day free trial to access the template. You will find different business plan templates on PandaDoc once you sign up (including templates for general businesses and specific businesses such as bakeries, startups, restaurants, salons, hotels, and coffee shops)

PandaDoc allows you to customize its business plan templates to fit the needs of your business. After editing the template, you can send it to interested parties and track opens and views through PandaDoc.

10. Invoiceberry Templates for Word, Open Office, Excel, or PPT

InvoiceBerry is a U.K based online invoicing and tracking platform that offers free business plan templates in .docx, .odt, .xlsx, and .pptx formats for freelancers and small businesses.

Before you can download the free business plan template, it will ask you to give it your email address. After you complete the little task, it will send the download link to your inbox for you to download. It also provides a business plan checklist in .xlsx file format that ensures you add the right information to the business plan.

Alternatives to the Traditional Business Plan

A business plan is very important in mapping out how one expects their business to grow over a set number of years, particularly when they need external investment in their business. However, many investors do not have the time to watch you present your business plan. It is a long and boring read.

Luckily, there are three alternatives to the traditional business plan (the Business Model Canvas, Lean Canvas, and Startup Pitch Deck). These alternatives are less laborious and easier and quicker to present to investors.

Business Model Canvas (BMC)

The business model canvas is a business tool used to present all the important components of setting up a business, such as customers, route to market, value proposition, and finance in a single sheet. It provides a very focused blueprint that defines your business initially which you can later expand on if needed.

The sheet is divided mainly into company, industry, and consumer models that are interconnected in how they find problems and proffer solutions.

Segments of the Business Model Canvas

The business model canvas was developed by founder Alexander Osterwalder to answer important business questions. It contains nine segments.

• Key Partners: Who will be occupying important executive positions in your business? What do they bring to the table? Will there be a third party involved with the company?
• Key Activities: What important activities will production entail? What activities will be carried out to ensure the smooth running of the company?
• The Product’s Value Propositions: What does your product do? How will it be different from other products?
• Customer Segments: What demography of consumers are you targeting? What are the habits of these consumers? Who are the MVPs of your target consumers?
• Customer Relationships: How will the team support and work with its customer base? How do you intend to build and maintain trust with the customer?
• Key Resources: What type of personnel and tools will be needed? What size of the budget will they need access to?
• Channels: How do you plan to create awareness of your products? How do you intend to transport your product to the customer?
• Cost Structure: What is the estimated cost of production? How much will distribution cost?
• Revenue Streams: For what value are customers willing to pay? How do they prefer to pay for the product? Are there any external revenues attached apart from the main source? How do the revenue streams contribute to the overall revenue?

Lean Canvas

The lean canvas is a problem-oriented alternative to the standard business model canvas. It was proposed by Ash Maurya, creator of Lean Stack as a development of the business model generation. It uses a more problem-focused approach and it majorly targets entrepreneurs and startup businesses.

Lean Canvas uses the same 9 blocks concept as the business model canvas, however, they have been modified slightly to suit the needs and purpose of a small startup. The key partners, key activities, customer relationships, and key resources are replaced by new segments which are:

• Problem: Simple and straightforward number of problems you have identified, ideally three.
• Solution: The solutions to each problem.
• Unfair Advantage: Something you possess that can't be easily bought or replicated.
• Key Metrics: Important numbers that will tell how your business is doing.

Startup Pitch Deck

While the business model canvas compresses into a factual sheet, startup pitch decks expand flamboyantly.

Pitch decks, through slides, convey your business plan, often through graphs and images used to emphasize estimations and observations in your presentation. Entrepreneurs often use pitch decks to fully convince their target audience of their plans before discussing funding arrangements.

Considering the likelihood of it being used in a small time frame, a good startup pitch deck should ideally contain 20 slides or less to have enough time to answer questions from the audience.

Unlike the standard and lean business model canvases, a pitch deck doesn't have a set template on how to present your business plan but there are still important components to it. These components often mirror those of the business model canvas except that they are in slide form and contain more details.

Using Airbnb (one of the most successful start-ups in recent history) for reference, the important components of a good slide are listed below.

• Cover/Introduction Slide: Here, you should include your company's name and mission statement. Your mission statement should be a very catchy tagline. Also, include personal information and contact details to provide an easy link for potential investors.
• Problem Slide: This slide requires you to create a connection with the audience or the investor that you are pitching. For example in their pitch, Airbnb summarized the most important problems it would solve in three brief points – pricing of hotels, disconnection from city culture, and connection problems for local bookings.
• Solution Slide: This slide includes your core value proposition. List simple and direct solutions to the problems you have mentioned
• Customer Analysis: Here you will provide information on the customers you will be offering your service to. The identity of your customers plays an important part in fundraising as well as the long-run viability of the business.
• Market Validation: Use competitive analysis to show numbers that prove the presence of a market for your product, industry behavior in the present and the long run, as well as the percentage of the market you aim to attract. It shows that you understand your competitors and customers and convinces investors of the opportunities presented in the market.
• Business Model: Your business model is the hook of your presentation. It may vary in complexity but it should generally include a pricing system informed by your market analysis. The goal of the slide is to confirm your business model is easy to implement.
• Marketing Strategy: This slide should summarize a few customer acquisition methods that you plan to use to grow the business.
• Competitive Advantage: What this slide will do is provide information on what will set you apart and make you a more attractive option to customers. It could be the possession of technology that is not widely known in the market.
• Team Slide: Here you will give a brief description of your team. Include your key management personnel here and their specific roles in the company. Include their educational background, job history, and skillsets. Also, talk about their accomplishments in their careers so far to build investors' confidence in members of your team.
• Traction Slide: This validates the company’s business model by showing growth through early sales and support. The slide aims to reduce any lingering fears in potential investors by showing realistic periodic milestones and profit margins. It can include current sales, growth, valuable customers, pre-orders, or data from surveys outlining current consumer interest.
• Funding Slide: This slide is popularly referred to as ‘the ask'. Here you will include important details like how much is needed to get your business off the ground and how the funding will be spent to help the company reach its goals.
• Appendix Slides: Your pitch deck appendix should always be included alongside a standard pitch presentation. It consists of additional slides you could not show in the pitch deck but you need to complement your presentation.

It is important to support your calculations with pictorial renditions. Infographics, such as pie charts or bar graphs, will be more effective in presenting the information than just listing numbers. For example, a six-month graph that shows rising profit margins will easily look more impressive than merely writing it.

Lastly, since a pitch deck is primarily used to secure meetings and you may be sharing your pitch with several investors, it is advisable to keep a separate public version that doesn't include financials. Only disclose the one with projections once you have secured a link with an investor.

Advantages of the Business Model Canvas, Lean Canvas, and Startup Pitch Deck over the Traditional Business Plan

• Time-Saving: Writing a detailed traditional business plan could take weeks or months. On the other hand, all three alternatives can be done in a few days or even one night of brainstorming if you have a comprehensive understanding of your business.
• Easier to Understand: Since the information presented is almost entirely factual, it puts focus on what is most important in running the business. They cut away the excess pages of fillers in a traditional business plan and allow investors to see what is driving the business and what is getting in the way.
• Easy to Update: Businesses typically present their business plans to many potential investors before they secure funding. What this means is that you may regularly have to amend your presentation to update statistics or adjust to audience-specific needs. For a traditional business plan, this could mean rewriting a whole section of your plan. For the three alternatives, updating is much easier because they are not voluminous.
• Guide for a More In-depth Business Plan: All three alternatives have the added benefit of being able to double as a sketch of your business plan if the need to create one arises in the future.

Business Plan FAQ

Business plans are important for any entrepreneur who is looking for a framework to run their company over some time or seeking external support. Although they are essential for new businesses, every company should ideally have a business plan to track their growth from time to time.  They can be used by startups seeking investments or loans to convey their business ideas or an employee to convince his boss of the feasibility of starting a new project. They can also be used by companies seeking to recruit high-profile employee targets into key positions or trying to secure partnerships with other firms.

Business plans often vary depending on your target audience, the scope, and the goals for the plan. Startup plans are the most common among the different types of business plans.  A start-up plan is used by a new business to present all the necessary information to help get the business up and running. They are usually used by entrepreneurs who are seeking funding from investors or bank loans. The established company alternative to a start-up plan is a feasibility plan. A feasibility plan is often used by an established company looking for new business opportunities. They are used to show the upsides of creating a new product for a consumer base. Because the audience is usually company people, it requires less company analysis. The third type of business plan is the lean business plan. A lean business plan is a brief, straight-to-the-point breakdown of your ideas and analysis for your business. It does not contain details of your proposal and can be written on one page. Finally, you have the what-if plan. As it implies, a what-if plan is a preparation for the worst-case scenario. You must always be prepared for the possibility of your original plan being rejected. A good what-if plan will serve as a good plan B to the original.

A good business plan has 10 key components. They include an executive plan, product analysis, desired customer base, company analysis, industry analysis, marketing strategy, sales strategy, financial projection, funding, and appendix. Executive Plan Your business should begin with your executive plan. An executive plan will provide early insight into what you are planning to achieve with your business. It should include your mission statement and highlight some of the important points which you will explain later. Product Analysis The next component of your business plan is your product analysis. A key part of this section is explaining the type of item or service you are going to offer as well as the market problems your product will solve. Desired Consumer Base Your product analysis should be supplemented with a detailed breakdown of your desired consumer base. Investors are always interested in knowing the economic power of your market as well as potential MVP customers. Company Analysis The next component of your business plan is your company analysis. Here, you explain how you want to run your business. It will include your operational strategy, an insight into the workforce needed to keep the company running, and important executive positions. It will also provide a calculation of expected operational costs.  Industry Analysis A good business plan should also contain well laid out industry analysis. It is important to convince potential investors you know the companies you will be competing with, as well as your plans to gain an edge on the competition. Marketing Strategy Your business plan should also include your marketing strategy. This is how you intend to spread awareness of your product. It should include a detailed explanation of the company brand as well as your advertising methods. Sales Strategy Your sales strategy comes after the market strategy. Here you give an overview of your company's pricing strategy and how you aim to maximize profits. You can also explain how your prices will adapt to market behaviors. Financial Projection The financial projection is the next component of your business plan. It explains your company's expected running cost and revenue earned during the tenure of the business plan. Financial projection gives a clear idea of how your company will develop in the future. Funding The next component of your business plan is funding. You have to detail how much external investment you need to get your business idea off the ground here. Appendix The last component of your plan is the appendix. This is where you put licenses, graphs, or key information that does not fit in any of the other components.

The business model canvas is a business management tool used to quickly define your business idea and model. It is often used when investors need you to pitch your business idea during a brief window.

A pitch deck is similar to a business model canvas except that it makes use of slides in its presentation. A pitch is not primarily used to secure funding, rather its main purpose is to entice potential investors by selling a very optimistic outlook on the business.

Business plan competitions help you evaluate the strength of your business plan. By participating in business plan competitions, you are improving your experience. The experience provides you with a degree of validation while practicing important skills. The main motivation for entering into the competitions is often to secure funding by finishing in podium positions. There is also the chance that you may catch the eye of a casual observer outside of the competition. These competitions also provide good networking opportunities. You could meet mentors who will take a keen interest in guiding you in your business journey. You also have the opportunity to meet other entrepreneurs whose ideas can complement yours.

Exlore Further

• 12 Key Elements of a Business Plan (Top Components Explained)
• 13 Sources of Business Finance For Companies & Sole Traders
• 5 Common Types of Business Structures (+ Pros & Cons)
• How to Buy a Business in 8 Steps (+ Due Diligence Checklist)

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Martin luenendonk.

Martin loves entrepreneurship and has helped dozens of entrepreneurs by validating the business idea, finding scalable customer acquisition channels, and building a data-driven organization. During his time working in investment banking, tech startups, and industry-leading companies he gained extensive knowledge in using different software tools to optimize business processes.

This insights and his love for researching SaaS products enables him to provide in-depth, fact-based software reviews to enable software buyers make better decisions.

Ownr Blog  > Ownrship 101  > Business Stages  > Before You Start  > How to Do a Market Analysis for a Business Plan

How to Do a Market Analysis for a Business Plan

A market analysis is an integral part of writing a business plan . It shows that you have conducted research into the market in which your business is entrenched. In this article we provide an overview on what a market analysis is, and how to do a market analysis for a business plan.

• What is a market analysis?

A market analysis is a study of the current and future state of a particular industry. It helps in understanding the opportunities and threats that exist in the industry. It is a detailed overview and analysis of target demographics and buying trends, industry competition, and the overall health of the economy.

• What should be included in a market analysis?

A market analysis typically consists of:

• Size of target market and industry
• Customer purchase trends and needs
• Analysis of competition and market share
• Any challenges in the industry
• Forecasted growth of your business
• Qualitative vs quantitative market research

An effective market analysis will have both a qualitative and quantitative aspect. Quantitative analyses help with short-term predictions and include market statistics and forecasting. A lot of entrepreneurs use outside resources in business analysis techniques, such as financial experts.

Conversely, qualitative analyses are limited to data available and rely on opinions, which can be slightly subjective. There will always be a margin of error.

A quantitative market analysis seeks to remove that human margin of error and relies solely on objective figures. These figures will also look outside your particular industry and include wider economic health such as fluctuating real estate, average household debt, and gross domestic product , among others. A quantitative analysis can be used for long-term forecasting.

We’ve compiled these seven steps to help entrepreneurs conduct a market analysis for their business plans .

• 7 steps to prepare a market analysis for a business plan

There are a few key steps on how to conduct a market analysis for a business plan. These business analysis techniques will help entrepreneurs get a clear picture of not just the market, but the future health of their company.

• 1. Identify the primary objectives of the business

The primary objectives of your company should also be an integral part of your business plan. What is it you are setting out to achieve with your business? This will include a few key considerations:

• What is your service or product that you are offering?
• Who is your target market ?
• What market gaps are you trying to fill?
• What milestones are you setting about to achieve with your business plan?
• 2. Define the scope of your business analysis

Not all analyses are the same, and not all set out to achieve the same goals. Some can be all-encompassing, but for newer entrepreneurs, this can be a big undertaking and might require the use of a business analyst.

When defining the scope of your analysis, ask yourself what it is you are looking to do with it. Are you looking to plan for the next six months? Long-term forecasting? Or are you trying to secure funding or investigating expansion?

Identify a problem or opportunity that can be analyzed. This could include:

• launching a new product, service, or project
• identifying brand effectiveness
• fiscal quarter outlook
• investigating which business model is best for you

These questions will help you set out the detailed requirements of your analysis and restrict the time that you are looking to investigate.

• 3. Create your business analysis deliverables

A business analysis is a set of deliverables that need to be completed in order for you to be successful. The market analysis will give you a fully-formed picture of the future of your company in the identified timeframe within which you are working.

Business analysis deliverables can include:

• financial achievements
• detailed company expansion
• social media exposure
• 4. Define the requirements in detail

Defining the requirements is your next step. These can include:

Industry description and outlook: This is like the introduction and sets the tone for the entire analysis. This should be a clear and concise description of the industry in which your company is situated and the overall outlook of that industry, including trends and projected growth.

Target market: In your market research process, you should identify the size of your target market as accurately as possible. You can gather this information from government data, industry research reports, or other organizations that specialize in market data compilation. Target market research can include a SWOT analysis : strengths, weaknesses, opportunities and threats.

Competitive analysis: This is where you look critically at your competitors in the business community and analyze what they are doing right and what they are doing wrong. This will help you identify any market gaps that you can fill.

Projections : Projections are estimated guesses that are based on statistical data and are well-informed. However, there is always room for error, which should be taken into consideration.

Regulations : Being aware of any government regulations regarding your industry or potential changes in legislation is important. You want to make sure you invest wisely in an industry that will become subject to stricter regulations. This is particularly relevant to gig-workers .

• 5. Supporting the technical implementation

You now have a fairly clear understanding of the market and where it is going, in whatever time constraints you have applied to your particular research. Now you can relate this back to your own company and look at how your team will go about implementing changes in reaction or anticipation of market fluctuations.

How this is completed will include factors such as products and services, growth, or amendments. This might include the introduction of new products, holding off on launches, or investing in new services. Asking yourself if your company will need to hire employees or expertise, outsource materials, or perhaps acquire more capital or physical space is part of technical implementation.

• 6. Apply the solution

Applying the solution means a clear breakdown of the steps required to achieve the goal that you set out to accomplish at the beginning of the market analysis. Remember your initial question or problem? Here is where you answer that. This should be a step-wise solution with actionable and measurable goals.

• 7. Assess value created by the solution

Step back and take stock. Has this solution that is based on the market research gathered and analyzed created value for your company? If so, how much? Is the upfront investment worth the gains? How risky is this?

This value assessment will help inform your overall business plan by giving you insight into possible needs like labour, supplies, capital, or if you need to pivot strategy in reaction to market changes. This value assessment should be in the same timeframe in which the original market research analysis was conducted.

Creating a financial statement that dovetails your current financial health and incorporating this new solution will help give a clear picture of where your company can go.

• Reduce risk with a market analysis

When creating a business plan, a market analysis is an integral part. It helps make you aware of any potential problems while also giving you room to test some proposed solutions. Any new direction, product, or re-branding always comes with risk, but a market analysis can help you reduce that risk and keep potential fall-out to a minimum should your endeavour fail.

A market analysis can make the difference between floundering and failure—or flourishing and success.

This article offers general information only, is current as of the date of publication, and is not intended as legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. While the information presented is believed to be factual and current, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author(s) as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by RBC Ventures Inc. or its affiliates.

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Market Analysis

Connecting the Dots, Quantifying Technology Trends & Measuring Disruption

How to do a market analysis for a business plan

A market analysis is an important part of a business plan because it helps you understand the market in which your business will operate. It involves researching and analyzing the target market, competitors, and industry trends in order to identify opportunities and challenges. Here are the steps you can follow to do a market analysis for a business plan:

Define your target market: The first step in a market analysis is to identify the specific group of customers that you will be targeting with your products or services. This may include demographics (age, gender, income, education level, etc.), geographic location, and other characteristics that are relevant to your business.

Research the market size: Next, you’ll need to determine the size of the market you are targeting. This will help you understand the potential demand for your products or services and determine whether the market is large enough to support your business. You can use various sources of data, such as industry reports and government statistics, to estimate the size of the market.

Analyze competitors: It’s important to understand who your competitors are and what they are offering. This will help you identify unique selling points for your business and determine how you can differentiate yourself from your competitors. You can research your competitors online, ask customers about their preferences, and even visit their stores or websites to get a sense of their product offerings and pricing.

Assess industry trends: Understanding industry trends can help you anticipate changes in the market and position your business to take advantage of them. Look for trends in areas such as technology, consumer behavior, and regulatory changes that may affect your business.

Determine your target market’s needs and preferences: To effectively market your products or services, you need to understand what your target customers need and want. You can gather this information through customer surveys, focus groups, and other market research methods.

Determine your target market’s purchasing power: It’s important to understand how much your target customers are willing and able to pay for your products or services. This will help you determine your pricing strategy and determine whether there is enough demand at your target price point.

Analyze your target market’s attitudes and behaviors: Understanding your target customers’ attitudes and behaviors can help you tailor your marketing efforts to their preferences. For example, if your target market values sustainability, you may want to highlight the eco-friendliness of your products in your marketing materials.

By conducting a thorough market analysis, you can gain a better understanding of the market in which your business will operate and make informed decisions about your marketing, pricing, and product development strategies.

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How to Write a Market Analysis for a Business Plan?

Free Market Analysis Kit

• April 11, 2024

13 Min Read

Market analysis is the foundation upon which the success of your business relies.

Whether you are a seasoned entrepreneur planning to enter a new geographical market or an emerging startup struggling to place together your business plan—a thorough understanding of the market, customers, and competitors is essential for a business to thrive successfully. 

Now, writing a market analysis for your business plan is quite a challenge. But with this step-by-step guide, we have made the entire process quite simple and easy to follow. 

Also, get tips to write this section and our curated market analysis example for a business plan. 

Ready to dive in? Let’s get started.

What is Market Analysis?

Market analysis is a detailed analysis of your business’s target market and the competitive landscape within a specific industry. It is an important section of your business plan offering a thorough insight into the state of the industry, the potential target market, and your business’s competition.

A well-targeted market analysis forms the base upon which the foundation of your business relies. It assures the readers that you have a thorough understanding of the market you are about to enter.

Why should you Conduct Market Analysis?

Wondering how market analysis will contribute to the success of your business? Well, check these benefits of conducting a comprehensive market analysis for your business:

1. Reduces the risk

Instead of operating on instincts and gut feelings, market research enables you to make decisions based on data and analysis. When you know with surety what works and what doesn’t, you will make decisions that are more likely to succeed than fail.

To summarize, having an in-depth market analysis will reduce the risks associated with starting a business in a thriving marketplace.

2. Identifies emerging trends

A market analysis identifies emerging market trends and patterns and thereby helps you stay at the top of the competition. Not only the trends, but you can also identify challenges that may potentially arise in your business and design a pivot plan.

3. Assist in product development

A detailed analysis of the target market, industry, and competitors helps you create the product that the customer will be willing to buy. The analysis will not only assist in product development, but also with pricing, marketing, and sales strategies to ensure thriving business conditions.

4. Optimize your target market

Your business is not for everyone and the sooner you realize this the better. A target market analysis helps in understanding who your potential customers are and accordingly strategize your marketing efforts to attract them.

5. Establishes evaluation benchmarks

Market analysis benefits your business by offering evaluation metrics and KPIs. Such metrics help in measuring a company’s performance and its edge over the competitors.

Lastly, a thorough market analysis is quintessential if you are planning to secure funds. As a matter of fact, it is non-negotiable.

Now that you know how important having a market analysis section is, let’s learn a detailed way of conducting such analysis.

How to Simplify Your Market Analysis?

Market analysis is a broad concept covering a wide range of details. There’s no denying that it is a tiring task requiring extremely dedicated efforts.

From understanding the purpose of research to undertaking surveys, gathering data, and converting it into worthy analysis—the research itself is a lot for an individual to cover.

Upmetrics market analysis tool kit includes a variety of guidebooks and templates that will help you with target customer analysis , surveys, and competitor surveys.

The documents will guide you in a strategic direction to conduct qualitative research and analysis. They are well-crafted and quite simple to follow even for someone with no prior experience at market analysis.

Got it? No more side talking, let’s get straight to what you are here for.

How to Conduct a Market Analysis?

Conducting thorough market research and analysis could be a hassle, but not with this easy-to-follow 7-step guide. Let’s get over it.

1. Determine your objective

When you write a business plan , market analysis is going to be one prominent component.

However, it is important to know the clear objective of conducting such analysis before you kickstart.

For instance, are you planning to acquire funding from investors or are you conducting this research to test the viability of your business idea? Are you looking to add a new product segment to your business or are you looking to expand in other states and countries?

That being said, the purpose of your market analysis will determine the extent and scope of research essential for your business.

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2. Conduct an Industry Analysis

In this part of your analysis, you will highlight the state of the current industry and show where it seems to be moving. Investors would want to know if the industry is growing or declining, so present accordingly.

This section should include metrics for market size, projected growth, average market growth rate,  product life cycle, and market trends.

Ensure that you gather data from highly authoritative sites like the US Bureau of Labor Statistics (BLS), Bureau of Economic Analysis, and industry publications to make your analysis.

To make this section enriching and meaningful, begin with a macro industry overview and then drill down to your specific market and business offering as thorough details as possible.

3. Identify your target audience

This section of your market analysis is dedicated to your potential target customers.

And, although your product might be suitable for everyone, there is a high possibility that not all of them will be your customers due to many reasons.

It is therefore better to target a specific category of customers to grow your business effectively and efficiently.

Now, you can begin by creating a buyer’s persona of your ideal customer describing their demographic and psychographic details. This includes talking about the age, gender, location, income, occupation, needs, pain points, problems, and spending capacity of your target customer.

You can conduct surveys, interviews, and focus groups, and gather data from high-end sources to get essential details for a customer profile.

However, make sure that you dig into details to make this section resourceful for business planning and strategizing.

4. Analyze your competitors

Competitive analysis is the most important aspect of your market analysis highlighting the state of the competitive landscape, potential business competitors, and your competitive edge in the market.

Now, a business may have direct as well as indirect competitors. And while indirect competition won’t affect your business directly, it definitely would have an impact on your market share.

To begin this section, identify your top competitors and list them down.

Conduct a SWOT analysis of your top competitors and evaluate their strengths and weaknesses against your business.

Identify their USPs, study their market strategies, understand how they pose a threat to your business, and ideate strategies to leverage their weaknesses.

Don’t undervalue or overestimate your competitors. Instead, focus on offering a realistic state of competition to the readers.

Additionally, readers also want to know your strengths and how you will leverage a competitive edge over your competitors. Ensure that this section highlights your edge in terms of pricing, product, market share, target customer, or anything else.

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5. Calculate your market share

The analysis section of your business plan must also include details of your market share.

If your estimated market share is not big enough, chances are your business idea might not be profitable enough to pursue further.

Now, you can use these proven metrics to forecast your market share:

TAM (Total available market)

It represents the total demand available in the market. In other words, it is the maximum amount of sales or revenue the market has to offer.

SAM (Serviceable available market)

It represents the segment of TAM that you can obtain with your solution within your limitations. These limitations can be geographical location, business model, type of product, etc.

SOM (Serviceable obtainable market)

It represents the segment of SAM that you can realistically capture after considering your competitors, customer preferences, production capabilities, etc.

SOM is your estimated market share. Once you have calculated it, you can actualize it via suitable pricing strategies.

Apart from this method, you can also use other approaches like top-down, bottom-up, and triangulation to estimate your market share.

However, whatever method you use, ensure that the projections are realistic and attainable.

6. Know the regulations and restrictions

Before entering a new market or starting a new business , you need to know the regulations and restrictions in your industry.

Understanding these can help you stay out of legal pitfalls and inspire confidence in prospective investors.

Some of the regulations you need to know are:

• Government policies
• Tax regulations
• Trade policies
• Employment laws
• Environmental regulations
• Security and privacy
• Protection of intellectual properties

Include these details in your market analysis section to help readers understand the risk value and federal regulations associated with your business.

7. Organize and implement the data

After completing your research, it’s now time to make sense of all the data you’ve gathered.

There is no strict structure when it comes to organizing your market analysis. However, ensure that your analysis includes specific sections for objective, target market, and competition.

Focus on creating an easy-to-digest and visually appealing analysis section to help the readers gather essential essence.

Now, it’s a waste if you are not putting all this research to some use. Identify the business areas where you can implement your research be it product development, exploring the new market, or business operations, and develop strategies accordingly.

All in all lay the foundation of a successful business with a thorough and insightful market analysis. And, you can do it by having an organized market analysis section in your business plan.

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Tips to Write Your Market Analysis

After conducting thorough market research, it is important to present that information strategically in a business plan to help the readers get meaningful insights.

Well, here are a few tips to help you write the market analysis for a business plan.

1. Stay in context

Remember the objective of your market analysis and stick to it. Keeping the context in mind, identify what essential information to present and back them up with high-end sources.

Also, tie your data with essential analysis to show how your business would survive and thrive in the market.

2. Add visual graphics

No one prefers shifting through pages of pure text content. Graphics and visuals make your market analysis easy to absorb and understand. You are more likely to capture readers with visual attractiveness rather than risk their attention with pure textual content.

3. Offer an engaging summary

Offer readers a quick overview of your detailed market analysis by including a summarizing text. A summary will help readers gather a macro perspective before diving deep into hard facts and figures.

4. Avoid fluff and repetition

Ensure that everything you present in your market analysis section holds a meaning. Avoid adding inessential and fluff information.

To best identify whether or not the information is essential for the reader, ask this simple question: Will the reader learn something about my business’s market or its customers from this information?

If not, the information is most likely inessential. And, those were some quick tips to ensure effective market analysis for your business plan.

Market Analysis in a Business Plan Example

Before we conclude, check out this market analysis example from Upmetrics’ sample yoga studio business plan.

Business Name: Lotus Harmony

Location: Green Valley

Core Objective for Market Analysis

Our goal for the market analysis at Lotus Harmony is straightforward: to deeply understand what the Green Valley community seeks in yoga and wellness. We’ll closely look at local demand and the competitive scene, shaping our services to precisely meet community needs. This approach promises to make Lotus Harmony a distinct and beloved wellness destination in our neighborhood.

Industry Overview of the Green Valley Yoga Market

Market Size:

Green Valley is home to nearly 1M yoga enthusiasts, predominantly aged 25-45. This demographic suggests a robust market for yoga and wellness, ripe for a studio that offers diverse and inclusive programs.

Projected Growth:

The yoga community is expected to grow by 5% annually over the next five years. This growth is driven by an increasing interest in holistic health, presenting a fertile ground for a new yoga studio to thrive.

Market Trends:

A rising trend is the demand for comprehensive wellness services, including mindfulness and nutrition, alongside traditional yoga. Specialized classes like prenatal yoga are also gaining popularity, signaling opportunities for niche offerings.

By tapping into these insights, a new yoga studio in Green Valley can strategically position itself as a premier wellness destination, catering to the evolving needs of the community.

Target Market Analysis for Lotus Harmony

Lotus Harmony Yoga Studio’s ideal customers are mainly Urban Millennials and Gen Z (ages 18-35) who prioritize:

• Wellness and mindfulness as part of their lifestyle.
• Affordable, holistic health experiences blending physical and mental well-being.
• Convenience with flexible class schedules and online access.
• Community and sustainability, preferring spaces that offer personal growth and eco-consciousness.
• A welcoming atmosphere that supports inclusivity and connection.

Competitive Landscape for Lotus Harmony

Lotus Harmony’s success relies on understanding consumer preferences and income, securing prime locations, attracting patrons, and offering quality services. Competing with gyms, wellness centers, and home fitness, it positions itself as a holistic wellness choice, aiming to stand out in Green Valley’s wellness scene.

Market Share for Lotus Harmony

Regulatory Requirements for Lotus Harmony

Here are a few aspects of legal compliance essential for Lotus Harmony:

• Business Registration and Licensing
• Zoning and Land Use Permits
• Health and Safety Compliance
• Professional Liability Insurance
• Instructor Certifications
• Building Safety Certificates
• Accessibility Compliance
• Tax Registration

Final Thoughts

It takes an extremely dedicated effort to undertake market research and craft it into a compelling analysis. However, it’s a worthy business planning effort that will set a cornerstone of success for your business.

Don’t worry. You don’t need to spend days figuring out what and how to write your market analysis. Upmetrics, an AI-powered business planning app , will help you write your overall business plan in less than an hour.

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Frequently Asked Questions

What are the 4 c's of marketing analysis.

The 4 C’s of marketing analysis are customer, cost, convenience, and communication which would together determine whether the company would succeed or fail in the long run.

Is SWOT analysis a market analysis?

SWOT analysis is a small but important tool for market research that would determine the success of a business or its edge over other businesses based on strengths, weaknesses, opportunities, and threats.

How long does a market analysis take?

Market analysis can take anywhere from 4 to 8 weeks, given that secondary sources of data are easily available. However, for complex large-scale projects, analysis can take up to months to complete.

What are the three core components of a market analysis?

The three most crucial components of a market analysis are the study of market size and market share, target market determination, and competitor analysis.

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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How to Do a Market Analysis for a Business Plan?

• What is Market Analysis in a Business Plan?

Market analysis for a  business plan serves the purpose of exploring the suitability of your product or service for the market. 

Why you should do Market Analysis for a business plan?

What should you include in market analysis, how to do market analysis for a business plan, market research from wisebusinessplans.

• Market Research Institutes and Databases we use

Sample Research

Your market analysis for a business plan lets you see your position in the market. It helps you identify the market trends, product demand, buying trends, seasonality, competition, etc.

A good market analysis will prepare you for a successful launch and steady growth. The time you invest in exploring your target market is well-spent. 

In this article, we have discussed how to conduct market research for a business plan. Make sure you read till the end to fully understand  how to do a market analysis in business plan .

Want to write a business plan? Get help from our business plan writers for hire !

When you analyze your target market in-depth, you understand it better. You understand what market demands are and how your product can serve the market. This market knowledge will help you convince your lenders and investors to work with you. 

These are some reasons why you should include a market analysis business plan.

Reduce Risk

Target on the right customer base, know the trend, project revenues, set growth benchmarks , optimize marketing strategy .

Doing a market analysis will lower your risk of failure by helping you spot market pitfalls. When you know what lies ahead, you can plan better and prepare better. 

A market analysis for a business plan will help you identify the right customer base for your product or service. 

Many people cast a wide net at the start but a market analysis proves them wrong. 

For example, if we say that many Indians live in a neighborhood and an Indian food restaurant will be a sure hit there may be wrong. Maybe all they are eating at home is Indian food and they don’t wish to eat the same food at a restaurant. 

Another example would be thinking that since your product or service is a good match for small businesses, all small businesses are your target customers. 

When you do market analysis and look critically at your customer base, you can dodge false optimism.

All markets are unpredictable in one way or another. Knowing how the market behaves when changes occur and understanding the market trends is important for long-term success. 

Check for seasonality, innovation in the market, and consumer behavior trends. See how your industry responds to the changes in economy.

 A market analysis for a business plan can help you make sound revenue projections for your business. Your projections with data are no longer your wishful thoughts. 

If your revenue forecast is based on solid market research, potential investors and lenders will know it and consider you a serious candidate for funding. 

Every industry moves in a distinct way. Some industries have favorable business conditions and growth is rapid in that industry. 

Doing a market analysis and knowing your industry will help you set realistic growth benchmarks. When you set aggressive growth benchmarks with a reasonable chance of success, you can maximize your business growth. 

Your marketing strategy is how you’ll raise awareness and drive sales for your product or service. Your market analysis can tell you:

• how to reach your customers, 
• how you should design your offers, 
• how much will you need to spend 
• When will you achieve your marketing goals

You will analyze the target market in business plan in this section. Here is what you should include in a market analysis for business plan.

Industry Outlook

Industry outlook shows the direction of your industry. It shows if you are in a growing industry, a stagnant, or a declining industry. 

Consider adding these points to  your industry outlook:

• Are you in a big market like casual wear clothing or a niche market like heavy snow coats 
• Discuss the product life cycle 
• Discuss projected year-over-year growth

Target Market 

Determine and specify your target market. Your initial, super-optimistic estimations about your target market may be incorrect. 

Base your assumptions on data. Specify your target market by using these markers. 

• Identify your target customers’ demographics like gender, age, location, income, education, etc. 
• Create a buyer persona to show what your ideal customer looks like 
• Include research and surveys about your target market like focus groups, and feedback surveys

Product/Service Demand 

Document your product or service demand in the market. See how many units of similar products or services are sold per year and how many people make the purchase. 

Market Growth Prospects 

Assess the overall change in your industry. Every industry has different dynamics. Some industries react to economic shocks with a rapid decline while others may show resilience. 

Many consumer goods industries stay stable for a long stretch of time and you can spot the decline years ahead. On the same lines, discuss the growth prospects of your industry and the market.

Market Trends 

Trends are the sudden changes that disrupt. The fashion industry is one of the best examples to study market trends. 

Watch for similar market trends in your industry and document them. 

Competitor Analysis 

Competitor analysis is the meat of your market analysis for a business plan. These businesses are like case studies as you can learn from their business practices and growth trajectories. 

Industry Entry Barriers 

If the industry entry barriers are low, you’ll compete with a lot of businesses. However, your chances of early success are higher in such industries as you can easily reach the breakeven point and sustain your business. 

Hard entry barriers mean there are established players in that industry and it will take time for you to grab a share of the market. 

Industry Regulations 

See the level of regulations for your industry and make a plan ahead to deal with them. The regulations increase business operating and overhead costs.

When doing industry analysis in business plan, list the industry regulations you’ll need to care for. 

Access our free business plan examples now!

A market analysis is about collecting all the necessary information and research and getting into the details of your industry and competitors. 

You can do a market analysis using this simple framework.

Decide your Purpose 

Do industry research, define your customer, understand competition, collect more data for the market , make use of this data .

You may be doing a market analysis for knowing your industry better or for convincing a potential lender or investor. Once you determine the purpose of market analysis, you can estimate the time and type of research the process will take.

Discuss the industry trends and see how the market is changing over the past few years. You’ll also need to include industry forecasts to complete the picture. 

A comparative market analysis helps you identify your competitive advantage. Make sure to include this in the market analysis.

Defining your customer helps you understand their needs. Define your customer in terms of demographics like:

• Occupation 

Build a buyer persona for your product or service. This will help you understand the customer well and design products and services for your ideal customer. 

Pro Tips: Learn how to write a business plan products and services section.

Understanding your competition will prepare you for the market. Look into their strengths and weakness. See what businesses are successful in your industry and study them to understand how they are doing it. 

Steps for doing competitor analysis business plan.

• List your top competitors 
• Do a SWOT analysis for each competitor 
• Compare their product or service with yours 
• Analyze why a customer chooses their product over others 
• Identify opportunities on how you can improve your product

The more data you have, the better your chances are of doing a top-notch market analysis. 

Collect your data from credible sources. Make sure your data is factually correct. You will be making decisions on the basis of this data. 

Here are some reliable and credible data sources that you use in your market analysis. 

• U.S. Bureau of Labor Statistics
• U.S. Census Bureau
• Local Chamber of Commerce & Industries 
• Trade Journals and Academic Research
• Your own SWOT analysis
• Market surveys or feedback

It is time to make sense of the numbers. 

The market analysis includes details from business conditions to long-term success in the industry. It calculates risk for your business.  Some factors may not be in your favor and you’ll have to decide on your chances of success.  

Keep your data organized in sections. Organize your data with a goal to present it before investors, lenders, and the team. That way, you’ll keep it simple and easy to understand.

Do you want to see an example of market analysis in a business plan? See our business plan examples to understand how it is done. 

Still wondering what is a market analysis in a business plan? See this example of market analysis in a business plan and writer a killer market analysis. Download the  Business Plan Market Analysis Example PDF  here. 

At Wise Business Plans™ we pride ourselves on giving you the best market research for business plans available. We subscribe to commercial software programs and pay hefty licensing fees to give your business a competitive edge. 

Instead of spending hours on figuring out how to do market research for a business plan, hire professionals from WiseBusinessPlans and get a top-notch market research report for your business plan. 

Market Research Institutes and Databases we use 

IBIS World’s Industry Market Research Reports are powerful business tools that provide strategic insight and analysis on over 700 U.S. industries. 

ESRI: Market Research combines GIS (Geographic Information System) technology with extensive demographic, consumer spending, and business data for the entire United States to deliver on-demand, boardroom-ready reports and maps.

Dun & Bradstreet: D&B’s products and services are drawn from a global database of more than 130 million companies.

Hoovers : Hoover’s database of industry information, 65 million company records, and 85 million people records you can deliver valuable business insight to your employees and customers.

First Research: First Market Research is the leading provider of market analysis tools that help sales and marketing teams perform faster and smarter, open doors, and close more deals.

Worried about writing a business plan? Hiring a business plan writer can ease your worries and create a strong plan.

Base your Market Research on data and expertise you can trust.   Hire professional market researchers from WiseBusinessPlans and take a solid start. 

A market analysis in a business plan is an assessment of the target market and industry in which your business operates. It involves researching and analyzing factors such as market size, competition, customer needs, trends, and growth potential.

Gather information for a market analysis by conducting market research through various methods like surveys, interviews, online research, and analyzing industry reports. Collect data on customer demographics, market trends, competitors, and customer preferences.

Include key components in a market analysis, such as an overview of the industry, target market segmentation, customer profiles, competitor analysis, market trends and growth projections, and barriers to entry. Use this information to identify opportunities and assess the viability of your business.

Analyze the competition by identifying direct and indirect competitors in your target market. Assess their strengths, weaknesses, market share, pricing strategies, and unique selling propositions. This analysis will help you understand your competitive landscape and differentiate your business.

A market analysis is crucial for a business plan as it provides insights into the market potential, customer demand, and competitive landscape. It helps you make informed decisions, develop effective marketing strategies, and demonstrate to investors or lenders that there is a viable market for your products or services.

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How to Write the Market Analysis Section of a Business Plan

Written by Dave Lavinsky

What is the Market Analysis in a Business Plan?

The market analysis section of your business plan is where you discuss the size of the market in which you’re competing and market trends that might affect your future potential such as economic, political, social and/or technological shifts.

This helps you and readers understand if your market is big enough to support your business’ growth, and whether future conditions will help or hurt your business. For example, stating that your market size is $56 billion, has been growing by 10% for the last 10 years, and that trends are expected to further increase the market size bodes well for your company’s success.

Download our Ultimate Business Plan Template here

What Should a Market Analysis Include?

You’ll want to address these issues in your market analysis:

• Size of Industry – How big is the overall industry?
• Projected Growth Rate of Industry – Is the industry growing or shrinking? How fast?
• Target Market – Who are you targeting with this product or service?
• Competition – How many businesses are currently in the same industry?

Learn how to write the full market analysis below.

How to Write a Market Analysis

Here’s how to write the market analysis section of a business plan.

• Describe each industry that you are competing in or will be targeting.
• Identify direct competition, but don’t forget about indirect competition – this may include companies selling different products to the same potential customer segments.
• Highlight strengths and weaknesses for both direct and indirect competitors, along with how your company stacks up against them based on what makes your company uniquely positioned to succeed.
• Include specific data, statistics, graphs, or charts if possible to make the market analysis more convincing to investors or lenders.

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Industry overview.

In your industry overview, you will define the market in which you are competing (e.g., restaurant, medical devices, etc.).

You will then detail the sub-segment or niche of that market if applicable (e.g., within restaurants there are fast food restaurants, fine dining, etc.).

Next, you will describe the key characteristics of your industry. For example, discuss how big the market is in terms of units and revenues. Let the reader know if the market is growing or declining (and at what rate), and what key industry trends are facing your market.

Use third-party market research as much as possible to validate the discussion of your industry.

Here is a list of additional items you may analyze for a complete industry overview:

• An overview of the current state of the industry . How big is it, how much does it produce or sell? What are its key differentiators from competitors? What is its target customer base like – demographic information and psychographics? How has the industry performed over time (global, domestic)?
• Analyze the macro-economic factors impacting your industry . This includes items such as economic growth opportunities, inflation, exchange rates, interest rates, labor market trends, and technological improvements. You want to make sure that all of these are trending in a positive direction for you while also being realistic about them. For example, if the economy is in shambles you might want to wait before entering the particular market.
• Analyze the political factors impacting your industry . This is an often-overlooked section of any business plan, but it can be important depending on what type of company you are starting. If you’re in a highly regulated industry (such as medical devices), this is something that you’ll want to include.
• Analyze the social factors impacting your industry . This includes analyzing society’s interest in your product or service, historical trends in buying patterns in your industry, and any effects on the industry due to changes in culture. For example, if there is a growing counter-culture trend against big oil companies you might want to position yourself differently than a company in this industry.
• Analyze the technological factors impacting your industry . This includes analyzing new technologies being developed in software, hardware, or applications that can be used to improve your product or service. It also includes emerging consumer trends and will be highly dependent on your business type. In a technology-related venture, you would analyze how these changes are impacting consumers. For an educational-related venture, you would analyze how these changes are impacting students, teachers, and/or administrators.

For each of these items, you want to provide some detail about them including their current state as well as what external factors have played a role in the recent past. You can also include many other important factors if they apply to your business including demographic trends, legal issues, environmental concerns, and sustainability issues.

When you are done analyzing all of these factors, wrap it up by summing them up in a statement that includes your view on the future of the industry. This should be positive to attract investors, potential customers, and partners.

If you’re having trouble thinking about all of these factors then it might be helpful to first develop a SWOT analysis for your business.

Once you have an understanding of the market, you’ll need to think about how you will position yourself within that potential market.

Picking Your Niche

You want to think about how large your market is for this venture. You also want to consider whether you’d like to pick a niche within the overall industry or launch yourself into the mainstream.

If you have an innovative product it can be easier to enter the mainstream market – but at the same time, you might face some additional competition if there are similar products available.

You can choose to specialize in a niche market where you’ll face less competition – but might be able to sell your services at a higher price point (this could make it easier for you to get potential customers).

Of course, if your product or service is unique then there should be no competition. But, what happens if it isn’t unique? Will you be able to differentiate yourself enough to create a competitive advantage or edge?

If you are planning on entering the mainstream market, think about whether there are different sub-niches within your specific market. For example, within the technology industry, you can choose to specialize in laptops or smartphones or tablets, or other categories. While it will be more difficult to be unique in a mainstream market, you will still be able to focus on one type or category of products.

How Will You Stand Out?

Many companies are able to stand out – whether by offering a product that is unique or by marketing their products in a way that consumers notice. For example, Steve Jobs was able to take a business idea like the iPhone and make it into something that people talked about (while competitors struggled to play catch up).

You want your venture to stand out – whether with an innovative product or service or through marketing strategies. This might include a unique brand, name, or logo. It might also include packaging that stands out from competitors.

Write down how you will achieve this goal of standing out in the marketplace. If it’s a product, then what features do you have that other products don’t? If it’s a service, then what is it about this service that will make people want to use your company rather than your competition?

You also need to think about marketing. How are you going to promote yourself or sell your product or service? You’ll need a marketing plan for this – which might include writing copy, creating an advertisement, setting up a website, and several other activities. This should include a description of each of these strategies.

If you’re struggling with the details of any of these sections, it might be helpful to research what other companies in your market are doing and how they’ve been successful. You can use this business information to inform your own strategies and plans.

Relevant Market Size & Competition

In the second stage of your analysis, you must determine the size and competition in your specific market.

Target Market Section

Your company’s relevant market size is the amount of money it could make each year if it owned a complete market share.

It’s simple.

To begin, estimate how many consumers you expect to be interested in purchasing your products or services each year.

To generate a more precise estimate, enter the monetary amount these potential customers may be ready to spend on your goods or services each year.

The size of your market is the product of these two figures. Calculate this market value here so that your readers can see how big your market opportunity is (particularly if you are seeking debt or equity funding).

You’ll also want to include an analysis of your market conditions. Is this a growing or declining market? How fast is it growing (or declining)? What are the general trends in the market? How has your market shifted over time?

Include all of this information in your own business plan to give your readers a clear understanding of the market landscape you’re competing in.

The Competition

Next, you’ll need to create a comprehensive list of the competitors in your market. This competitive analysis includes:

• Direct Competitors – Companies that offer a similar product or service
• Indirect Competitors – Companies that sell products or services that are complementary to yours but not directly related

To show how large each competitor is, you can use metrics such as revenue, employees, number of locations, etc. If you have limited information about the company on hand then you may want to do some additional research or contact them directly for more information. You should also include their website so readers can learn more if they desire (along with social media profiles).

Once you complete this list, take a step back and try to determine how much market share each competitor has. You can use different methods to do this such as market research, surveys, or conduct focus groups or interviews with target customers.

You should also take into account the barriers to entry that exist in your market. What would it take for a new company to enter the market and start competing with you? This could be anything from capital requirements to licensing and permits.

When you have all of this information, you’ll want to create a table like the one below:

Once you have this data, you can start developing strategies to compete with the other companies which will be used again later to help you develop your marketing strategy and plan. 

Writing a Market Analysis Tips

• Include an explanation of how you determined the size of the market and how much share competitors have.
• Include tables like the one above that show competitor size, barriers to entry, etc.
• Decide where you’re going to place this section in your business plan – before or after your SWOT analysis. You can use other sections as well such as your company summary or product/service description. Make sure you consider which information should come first for the reader to make the most sense.
• Brainstorm how you’re going to stand out in this competitive market.

Formatting the Market Analysis Section of Your Business Plan

Now that you understand the different components of the market analysis, let’s take a look at how you should structure this section in your business plan.

Your market analysis should be divided into two sections: the industry overview and market size & competition.

Each section should include detailed information about the topic and supporting evidence to back up your claims.

You’ll also want to make sure that all of your data is up-to-date. Be sure to include the date of the analysis in your business plan so readers know when it was conducted and if there have been any major changes since then.

In addition, you should also provide a short summary of what this section covers at the beginning of each paragraph or page. You can do this by using a title such as “Industry Overview” or another descriptive phrase that is easy to follow.

As with all sections in a business plan, make sure your market analysis is concise and includes only the most relevant information to keep your audience engaged until they reach your conclusion.

A strong market analysis can give your company a competitive edge over other businesses in its industry, which is why it’s essential to include this section in your business plan. By providing detailed information about the market you’re competing in, you can show your readers that you understand the industry and know how to capitalize on current and future trends.

Business Plan Market Analysis Examples

The following are examples of how to write the market analysis section of a business plan:

Business Plan Market Analysis Example #1 – Hosmer Sunglasses, a sunglasses manufacturer based in California

According to the Sunglass Association of America, the retail sales volume of Plano (non-prescription) sunglasses, clip-on sunglasses, and children’s sunglasses (hereinafter collectively referred to as “Sunwear”) totaled $2.9 billion last year. Premium-priced sunglasses are driving the Plano Sunwear market. Plano sunglasses priced at $100 or more accounted for more than 49% of all Sunwear sales among independent retail locations last year. 

The Sunglass Association of America has projected that the dollar volume for retail sales of Plano Sunwear will grow 1.7% next year. Plano sunglass vendors are also bullish about sales in this year and beyond as a result of the growth of technology, particularly the growth of laser surgery and e-commerce.

Business Plan Market Analysis Example #2 – Nailed It!, a family-owned restaurant in Omaha, NE

According to the Nebraska Restaurant Association, last year total restaurant sales in Nebraska grew by 4.3%, reaching a record high of $2.8 billion. Sales at full-service restaurants were particularly strong, growing 7% over 2012 figures. This steady increase is being driven by population growth throughout the state. The Average Annual Growth Rate (AGR) since 2009 is 2.89%.

This fast growth has also encouraged the opening of new restaurants, with 3,035 operating statewide as of this year. The restaurant industry employs more than 41,000 workers in Nebraska and contributes nearly $3 billion to the state economy every year.

Nebraska’s population continues to increase – reaching 1.9 million in 2012, a 1.5% growth rate. In addition to population, the state has experienced record low unemployment every year since 2009 – with an average of 4.7% in 2013 and 2014.

Business Plan Market Analysis Example #3 – American Insurance Company (AIC), a chain of insurance agencies in Maine

American Insurance Company (AIC) offers high-quality insurance at low prices through its chain of retail outlets in the state of Maine. Since its inception, AIC has created an extensive network of agents and brokers across the country with expanding online, call center and retail business operations.

AIC is entering a market that will more than double in size over the next 50 years according to some industry forecasts. The insurance industry is enjoying low inflation rates, steady income growth, and improving standards of living for most Americans during what has been a difficult period for much of American business. This makes this a good time to enter the insurance industry as it enjoys higher margins because customers are purchasing more coverage due to increased costs from medical care and higher liability claims.

American Insurance Company provides affordable homeowners, auto, and business insurance through high-quality fulfillment centers across America that have earned a reputation for top-notch customer service.

AIC will face significant competition from both direct and indirect competitors. The indirect competition will come from a variety of businesses, including banks, other insurance companies, and online retailers. The direct competition will come from other well-funded start-ups as well as incumbents in the industry. AIC’s competitive advantages include its low prices, high quality, and excellent customer service.

AIC plans to grow at a rate that is above average for the industry as a whole. The company has identified a market that is expected to grow by more than 100% in the next decade. This growth is due to several factors: the increase in the number of two-income households, the aging population, and the impending retirement of many baby boomers will lead to an increase in the number of people who are purchasing insurance.

AIC projects revenues of $20M in year one, which is equivalent to 100% growth over the previous year. AIC forecasts revenue growth of 40%-60% each year on average for 10 years. After that, revenue growth is expected to slow down significantly due to market saturation.

The following table illustrates these projections:

Competitive Landscape

Direct Competition: P&C Insurance Market Leaders

Indirect Competition: Banks, Other Insurance Companies, Retailers

Market Analysis Conclusion

When writing the market analysis section, it is important to provide specific data and forecasts about the industry that your company operates in. This information can help make your business plan more convincing to potential investors.

If it’s helpful, you should also discuss how your company stacks up against its competitors based on what makes it unique. In addition, you can identify any strengths or weaknesses that your company has compared to its competitors.

Based on this data, provide projections for how much revenue your company expects to generate over the next few years. Providing this information early on in the business plan will help convince investors that you know what you are talking about and your company is well-positioned to succeed.  

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Other Resources for Writing Your Business Plan

How to Write a Great Business Plan Executive Summary How to Expertly Write the Company Description in Your Business Plan The Customer Analysis Section of Your Business Plan Completing the Competitive Analysis Section of Your Business Plan The Management Team Section of Your Business Plan Financial Assumptions and Your Business Plan How to Create Financial Projections for Your Business Plan Everything You Need to Know about the Business Plan Appendix Best Business Plan Software Business Plan Conclusion: Summary & Recap  

Other Helpful Business Planning Articles & Templates

How to Write a Market Analysis for Your Business Plan

An important part of any good business plan is the Market Analysis. Before you can describe your marketing and sales strategies, you need to figure out what market you serve and what need you fulfill. Then, your Marketing Strategy and Implementation Plan, ideally covered in the next section of your business plan, will fit into a logical flow.

I have read many business plans that make the mistake of starting a Market Analysis section, only to wander off into a description of what the company sells, how it will promote its products, and how its product or service is different. These are all undeniably important points; however, they deserve a their own section and should be addressed in turn.

Let’s start with what a market is. A market, in this instance, refers either to a place where goods can be sold, or to a particular class of buyers. So the market is the “Where?” that your product or service is sold, and the “Who?” you sell it to.

So what should you include in the Market Analysis section of your business plan?

Size of the Market

The first number you need to identify is the total annual sales, in dollars, of the market you serve. If you are selling cars, state the total sales of cars in your geographical area for the most recently ended year. This number will be important later when you forecast your sales because it will enable you to calculate what share of the market you expect to capture.

Besides stating the current size of the market, it is also valuable to include forecasts of the future size of the market. Such market projections should be offered only if they come from acknowledged government or research organizations. Certainly you can make up your own projection, but it will lack the credibility of a recognized authority on the subject and probably will serve only to make you look amateurish.

We hope you find this article helpful. For more great information about writing a quality business plan, check out “How to Write a Shark-Ready Business Plan” by our Founder Al Lierman.

Market Segments

There are several ways that you can break a market down into segments. Doing so will help you and the reader of your plan understand where your specific product fits into the total market, and who the potential customers are.

Geography and Location

It is a good idea to indicate the geographic segments of your product’s market, especially the market in which you sell. If you are an international company, then describe the size and characteristics of the international market. If, on the other extreme, you only sell to customers within 10 miles of your location, then provide information about this local segment.

Customer Segments

On one level, all customers who a buy a particular product make up that product’s market. But, not all buyers of the product buy it for the same reason. For example, buyers of Personal Computers can be segmented into business users and home users. This type of market segmentation is essential because your marketing plan, which you will present later, will describe your strategy for targeting these customers.

Further segmentation might be called for in many cases. To continue with the PC example, if your business is selling servers to corporate clients, it makes sense to identify the portion of the PC market that is businesses that buy network servers. The more detail you can provide about the customer segments that you target, the better.

The level of detail you provide about your market’s customer segments depends on the level of detail in your marketing plan. Any customers you intend to pursue with your marketing strategy should be identified and quantified in the market analysis section.

This section is also an appropriate place to provide a profile of your target customer. This profile should include any demographic or psychographic information relevant to buyers of your product or service. For business customers, provide statistics about the size of the typical client firm, number of employees, location, or industry.

Market Trends and Needs

Once you have described the segments of your product’s market, explain the trends, growth, and needs of the market. Turn your focus especially to the trends in the market segments within which your product fits. In this section you should provide statistics for the growth in the market over the last five to ten years. If you can provide forecasted growth rates from an acknowledged agency or research firm, do it.

If your market segment is growing and is projected to continue to grow, talk about it and back it up with numbers. If the trend is for new products like yours to sell well and replace older models, then say so. Ideally, the trends you identify should support the positioning statement and marketing strategy that you are about to present.

As for market needs, a business plan can make a powerful statement about a company’s chance for success if it can show a need in the market that is unmet or underserved, and then present the company’s product as the perfect solution to that problem.

Venture capitalists and angel investors often refer to products as either painkillers or vitamins. Painkillers tend to get the most funding because they are products that, as soon as they come out, people have to have them. Vitamins are products that are good, useful, and maybe even important, but we can live without them.

The ultimate goal of the Market Analysis is to show where the burning need, the source of the pain, is in the market. In the best business plans, the Marketing Strategy describes how the company will position its product to ease the pain.

Industry Analysis

The final section of the Market Analysis is the Industry Analysis. Where the earlier sections of the Market Analysis dealt with issues of who buys the product and where they are located, the Industry Analysis addresses the making and selling of the product: industry participants, distribution patterns, and competition. A thorough discussion of these aspects of the industry will provide a good overview of the industry to a reader who is otherwise unfamiliar with it.

Industry Participants

Industry participants are those firms and individuals that are involved in at least one aspect of bringing the industry’s product to its customers. Examples include manufacturers, suppliers, service providers, wholesalers, distributors, dealers, and reps.

For example, an analysis of the book publishing industry would identify participants such as authors, agents, publishers, book manufacturers, book wholesalers, bookstores, and book clubs.

Distribution Patterns

If you are dealing with a physical product you will probably want to describe how it is distributed, from the time it is created until it makes its way into a customer’s hands. Explain the various ways that finished products are distributed, whether directly to end users, through wholesalers, from wholesalers to retailers, and so on.

A company can often distinguish itself, even if it does not have a unique product, by providing a new way to sell or distribute the product to its customers. Dell Computer was a great example back in the day. The company was successful not because its PCs were better then any other company’s; it made a fortune because it revolutionized the way computers were manufactured and distributed to consumers. It configured its products to its customers’ specifications and sold them direct rather than prebuilding them and selling them through distributors as its competitors did. In short, it’s success was based on a better business model more than on a better product.

Competition

Once you have identified all of the industry’s participants you are in a better position to explain where your company fits in. Unless you have a completely new concept or product with no competition, your industry analysis should include a thorough discussion of your competitors. I have seen many first-time plan writers gloss over this section or ignore it altogether. Don’t make this mistake.

Any smart venture capitalist, angel investor, or lending officer recognizes that every business has competition. By avoiding this topic in your business plan you will show your reader one of two things: either you are naïve about your competition and have not done your homework, or you are less than forthcoming and are hiding something. Furthermore, you miss an opportunity to show exactly how your proposition is unique and different from your competitors’.

The Market Analysis section of your business plan is a great place to show that you know your business inside and out. Stick to the concept of describing the market and the industry as they exist today, a sort of situation analysis. If you do it right, the stage will be set for you to present your plan for conquering the world in your Marketing Plan and Strategy Implementation section immediately following the Market Analysis.

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A business plan for lawyers: How to write one and what to include

• June 21, 2024

Jennifer Anderson

If you’re reading this article, Congratulations! You must be thinking about starting a law firm and are looking for examples of a business plan for lawyers.

Of course, if you’re serious about this prospect, one of the first things you’ll need to do is sit down and draft a business plan. And, as luck would have it, that’s why we’re here today.

In this post, we’re going to walk you through the steps of creating a business plan for your new firm. As Aristotle once said, “For the things we have to learn before we can do them, we learn by doing them.”

Sound advice.

A simple guide for a business plan for lawyers

So, we’ll provide you with the key parts and pieces for creating a law firm business plan along with a sample plan intended to show you how to create your own plan. 

Now, in order to walk you through this, we’ve created a hypothetical firm using certain assumptions, which we’ll list below. Your new firm almost certainly has different factors at play.

That’s alright. We trust you’ll be able to plug in the particulars that suit your business. For now, here’s what our fictional new law firm looks like:

• This California-based law firm is founded by four partners who were all business owners before going to law school. Using our fictional founders’ last names, we’ll call the firm Smith, Jones, Jackson, & Wyle, LLP.
• The firm aims to have multiple practice areas including business litigation, labor and employment, technology, and real estate.
• The target clients will be small-to-midsize regional businesses throughout the state. 
• The partners’ goal is to hire up to 10 associates over the next five years. 
• The firm’s main competitors are other small, regional business-focused firms. 
• Initial marketing ideas include social media, networking with former business contacts, and becoming thought leaders in various areas of the law through blogging and public speaking.
• The partners envision being highly tech dependent, utilizing CRMs, AI, and other tech tools as much as possible. 
• The founding partners’ goal is to launch the firm in 6 months and to be profitable within a year.

With those basic facts in mind, let’s break down the various components that we’ll include in our business plan:

1. Executive summary

A business plan for lawyers, like any plan, should start with an e xecutive summary . This section concisely outlines a business plan’s key points, goals, and strategies. Ultimately, it serves as a snapshot for quick understanding and decision-making and should include the following parts:

Mission statement

A Mission Statement is like the elevator speech for your new firm. It charts the course for your goals, objectives, clients – and also quickly lays out your proposed methods for reaching those goals. A sample Mission Statement for our firm might say: 

At Smith, Jones, Jackson, & Wyle, LLP (“SJJW”) we are dedicated to empowering small-to-midsize businesses in California with comprehensive legal solutions. With a foundation built on the rich business acumen and legal expertise of our founding partners, we aim to bridge the gap between business challenges and legal success. Our mission is to provide personalized, effective, and technology-driven legal services that not only address today’s legal needs but also anticipate tomorrow’s challenges. We are committed to becoming trusted advisors to our clients who leverage our unique background as former business owners to offer practical, actionable legal advice. Through innovation, integrity, and a client-focused approach, SJJW strives to achieve excellence in all aspects of our service, fostering long-term partnerships with our clients and contributing to their success.

Here, you will outline the firm’s growth objectives and provide a snapshot of the firm’s operations.

SJJW aims to become the leading legal advisor for California’s small to mid-sized businesses, expand our team with 10 associates within five years, and leverage technology to enhance efficiency and client satisfaction.

Brief overview

Some business plans also include a brief overview of the business. Our hypothetical firm’s overview might look like this:

Founded by four partners with business ownership backgrounds, our California-based law firm specializes in serving small-to-midsize businesses, emphasizing technology-driven solutions and personalized legal services to navigate complex challenges.

2. Firm description

Your law firm description will provide a bit more detail about the make-up of your business. This section should include information on: (1) legal structure and history; (2) location and areas of practice; and (3) vision for the future: 

SJJW is a dynamic legal partnership founded by four seasoned attorneys who are also experienced business owners. Based in California, our firm offers comprehensive legal services tailored to the needs and challenges of small-to-midsize businesses across the state. Our firm practices in four distinct areas: Business Litigation, Labor and Employment, Technology, and Real Estate. With a deep understanding of both the legal landscape and the entrepreneurial journey, our team is uniquely positioned to provide strategic, effective solutions across this range of legal disciplines. As an LLP, we emphasize collaboration, integrity, and innovation, leveraging cutting-edge technology to deliver exceptional service and outcomes for our clients. Our commitment to excellence, combined with our business-savvy approach, makes us a trusted partner for businesses seeking to navigate legal complexities with confidence.

3. Market analysis

The next part of our business plan for lawyers is the market analysis. Your market analysis is where you do the heavy lifting around how your firm fits into California’s extensive legal market. It should include information on your target market, a competitive analysis, and the need for your particular firm within the region. 

Target market

SJJW’s primary target market consists of small-to-midsize businesses in California, spanning various industries such as technology, retail, real estate, energy, and manufacturing. These businesses often encounter unique legal challenges that require personalized attention and expertise. With the state’s diverse economic landscape, there is a substantial demand for legal services that cater specifically to the nuanced needs of these entities, from regulatory compliance and intellectual property protection to labor disputes and contract negotiations.

Competitive landscape

The legal services market in California is highly competitive, with numerous firms vying for the business sector’s attention. Small, regional law firms similar to ours form the bulk of this competition, offering a range of general and specialized services. However, our differentiation lies in the unique blend of legal expertise and real-world business experience possessed by our founding partners. This combination positions us to offer unparalleled insights and practical solutions that resonate with business owners.

Market trends

The increasing complexity of regulatory environments, coupled with the rapid evolution of technology and the digital economy, has led businesses to seek legal partners who are not only advisors but also innovators. There’s a growing trend towards legal services that are highly specialized yet broadly knowledgeable about the cross-functional impacts of legal decisions.

Opportunities

Given our firm’s unique positioning and expertise, significant opportunities exist to capture market share by:

• Offering specialized services that address the intersection of business operations and legal requirements, such as compliance, data privacy, and e-commerce.
• Developing niche expertise in emerging areas of law that are particularly relevant to California’s business environment, such as tech startups, renewable energy, and digital media.
• Leveraging technology to provide more efficient, transparent, and cost-effective legal services, appealing to the tech-savvy and cost-conscious small-to-midsize business sector.
• Building strong relationships through networking and thought leadership, establishing the founding partners as go-to experts in legal matters relating to business.

Key challenges include establishing a distinct brand in a crowded market, continually adapting to rapidly changing legal and technological landscapes, and ensuring the firm remains accessible and appealing to the target market’s cost and value expectations.

In summary, the market analysis underscores the potential for SJJW to carve out a significant presence in California’s legal services sector for small-to-midsize businesses. By focusing on our strengths and strategically addressing the market’s needs, we can achieve substantial growth and success.

4. Marketing and sales strategy

The marketing and sales strategy is a crucial but often neglected aspect of any business plan for lawyers. This is where you lay out how you’re going to attract clients, convince them to use your firm’s services, and – importantly – how you’re going to retain those clients long term: 

Our objective is to establish SJJW as the premier legal service provider for small to mid-sized businesses in California, leveraging our unique blend of business acumen and legal expertise.

Marketing strategy

Brand positioning

Position the firm as not just legal experts, but as partners in our clients’ business success, emphasizing our founding partners’ background as business owners.

Digital marketing

• Website : Develop a professional website highlighting our expertise, services, and the unique value we bring to businesses.
• Content marketing : Regularly publish blogs, articles, and whitepapers on legal issues affecting our target market, positioning us as thought leaders.
• Social media : Engage with our audience on platforms like LinkedIn and Twitter, sharing insights, legal updates, and participating in discussions relevant to our target industries.

Networking and partnerships

• Leverage the existing business contacts of our founding partners and actively participate in industry events, seminars, and local business associations to build relationships and referrals.
• Establish partnerships with complementary service providers (e.g., accounting firms, business consultants) to offer bundled services or referrals.

Public relations

• Engage in speaking opportunities at industry conferences, webinars, and local business events to increase visibility and establish credibility.
• Utilize press releases for significant firm milestones, new service offerings, or significant case wins to build brand awareness.

Sales strategy

Client acquisition

• Implement a CRM system to manage leads and opportunities effectively and utilize  personalized follow-up and engagement strategies.
• Offer free initial consultations to prospective clients that provide immediate value and foster trust from the first interaction.

Client retention

• Provide exceptional client service with a focus on transparency, regular communication, and technology-driven solutions for ease of access and efficiency.
• Implement a client feedback loop to continuously improve services and address client needs proactively.

Cross-selling and up-selling

Once a client relationship is established, SJJW will identify additional legal needs or areas where the firm can provide value. The goal is to make sure all clients are aware of the full range of services offered.

By executing this comprehensive marketing and sales strategy, SJJW aims to rapidly grow its client base while maintaining high levels of client satisfaction and loyalty.

5. Operations plan

An operations plan outlines the day-to-day activities required to run your law firm. It details  things like processes, technology, staffing, and resources needed to achieve business objectives.

To ensure efficient, effective, and client-focused legal service delivery through advanced technology integration and streamlined processes.

Legal operations

Case managemen t: Implement a state-of-the-art Case Management System (CMS) to track and manage all cases efficiently, ensuring deadlines are met, and clients are kept informed.

Document management : Utilize a secure, cloud-based Document Management System (DMS) for storing, retrieving, and sharing documents with clients and within the team, enhancing collaboration and security.

Client communication : Adopt Customer Relationship Management (CRM) software to manage client interactions, ensuring personalized and timely communication across all touchpoints.

Technology integration

Artificial Intelligence (AI) : Leverage AI tools for legal research, document review, and predictive analytics to increase accuracy and reduce turnaround times.

Automation tools : Implement automation in routine tasks such as billing, client notifications, and document drafting to improve efficiency and reduce the risk of human error.

Human resources

Team structure : SJJW will initially be comprised of four partners and support staff, with plans to expand to up to 10 associates within five years. It is our goal to foster a culture of teamwork and continuous learning.

Professional development : Invest in ongoing training and professional development opportunities for all staff, ensuring the team remains at the forefront of legal and technological advancements.

Client service

Service delivery model : Offer flexible service models including traditional hourly billing and alternative arrangements like flat fees for defined services.  

Client feedback system : Implement a system for collecting and acting on client feedback to continually refine and improve service offerings.

Compliance and quality assurance

Regulatory compliance : Ensure strict adherence to legal and ethical standards, with regular reviews of compliance protocols, especially regarding data protection and privacy laws.

Quality control : Establish a quality control framework to review legal work internally, guaranteeing the highest standards of legal service.

6. Financial plan

Your financial plan is one of the most critical aspects of a business plan for lawyers. There are too many factors at play here for us to create a meaningful sample plan for our hypothetical firm, but here are the details you definitely want to include in your plan:

Initial capital and use

Detail how the initial capital provided by the founding partners will be allocated (e.g., office space, technology, marketing, initial payroll).

Financial projections

Include projections for revenue, expenses, and profitability for the first 1-5 years. Use realistic assumptions based on the size of your target market, expected client acquisition rates, billing rates, and operational costs. 

Revenue projections

Estimate potential earnings from client work, taking into account the growth in associate numbers and the capacity to handle more cases and matters.

Expense projections

Forecast expenses, including salaries, technology investments, office overhead, and marketing costs.

Profitability analysis

Calculate when the firm expects to become profitable. Our hypothetical firm, for example, aims to be profitable within the first year.

7. Legal and regulatory compliance

What kind of lawyers would you be if your plan didn’t include a section on legal and regulatory compliance ? A business plan for lawyers should always cover compliance, particularly in an environment where it is becoming increasingly important for firms to accommodate it .

This is where you’ll provide details regarding legal practice, data protection, and any relevant regulations for your areas of practice.

To uphold the highest standards of legal and ethical integrity by ensuring full compliance with all applicable laws, regulations, and professional guidelines governing the practice of law in California.

Compliance framework

State Bar of California : SJJW will strictly adhere to the rules and ethical standards set forth by the State Bar of California, including those related to client confidentiality, conflict of interest, and professional conduct.

Data protection and privacy : We will implement powerful data security measures compliant with the California Consumer Privacy Act (CCPA) and any relevant federal laws. We will also protect client information through encrypted storage and secure communication channels.

Business operations compliance : As an LLP, SJJW will maintain compliance with California’s business operation laws, including partnership registration requirements, financial reporting, and tax obligations.

Employment law : It is our steadfast aim to follow all state and federal employment laws, ensuring fair labor practices, workplace safety, and equal opportunity employment within the firm.

Continuous monitoring and education

Regular training : We will conduct or host ongoing legal education and training for all partners and staff on compliance matters, changes in the law, and best practices in legal ethics and data protection.

Compliance audits : The firm will perform regular internal audits to review and assess compliance with all legal, regulatory, and ethical standards, identifying and rectifying any potential issues proactively.

Risk management

Professional liability insurance : Before beginning operations, SJJW will secure comprehensive professional liability insurance to protect the firm and its clients against potential legal malpractice claims or other claims.

Conflict of interest checks : The firm will implement a rigorous system for conducting conflict of interest checks for every new client and case, with the goal of preventing ethical breaches and maintaining the firm’s integrity.

Client confidentiality and trust

Confidentiality protocols : SJJW will establish strict confidentiality protocols to protect client information, including secure document handling procedures and restricted access to sensitive data.

Client trust accounts : In accordance with California law, the firm will manage client funds with the utmost care, adhering to the State Bar’s guidelines for handling and accounting for trust accounts, ensuring transparency and accountability.

8. Milestones and timeline

Finally, a business plan for lawyers should include a section that details the timing involved in getting your law firm up and running. Again, there are probably too many details to give an effective sample here, but at the very least, your plan should include the following components:

Launch timeline

Here, you’ll plot out the key steps leading up to your launch date , including legal organization, the establishment of your office space, technology implementation, and initial marketing.

Growth milestones

Lawyers love deadlines and the growth milestones section is a good place to create them. Set specific goals for things like client acquisition, revenue targets, and team expansion to be reached within the first year and beyond.

Obviously, your firm’s business plan will include a lot more detail than our hypothetical plan for SJJW. We hope, however, that this sample plan gets you started on an enjoyable journey to starting a successful law firm.

Starting a law firm is a challenging yet rewarding endeavor. A well-crafted business plan for lawyers means getting all the essentials in place to guide your firm’s growth and success.

Get your executive summary, firm description, market analysis, marketing and sales strategy, operations plan, financial plan, and legal compliance all covered before embarking.

With careful planning and execution, you can build a firm that not only meets but exceeds your expectations, providing exceptional legal services to your clients.

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How to Write a Business Plan Step-By-Step [Free Business Plan Template]

Author: Tania Griffis

May 20, 2024 19 Comments

Learning how to write a business plan is essential for any new business idea. Unfortunately, we’re not all taught this skill in school.

Writing a strong business plan is an art. It involves accurately communicating one’s full potential and market knowledge in a single document. 

Luckily, you don’t need to reinvent the wheel.

I’ve created a concise template for you to write the ultimate business plan, no matter your industry experience. 

Whether you’ve been workshopping startups for decades or starting your first small business, we all start from the same place. 

A killer business plan!

Ready to skip to the good stuff? Download my  free business plan template  and start planning your success. Still, I highly recommend you read on for detailed advice every step of the way. 

Why Write a Business Plan?

I get it; you want to hit the ground running. But a little planning never hurt anyone. In fact, a well-made business plan is one of the key elements in achieving career success. 

A detailed plan can help you narrow in on company objectives, guide business decisions, and determine whether your business is feasible. 

Learning how to write a business plan also has monetary benefits, helping you gain funding, potential investors, loans, and grants. 

A business plan is an excellent tool to refer back to, including growth projections, performance benchmarks, and potential weaknesses in your strategy. 

The best part about crafting a business plan is that it will grow with you, serving as a living resource of all you have and hope to accomplish.

Elements of a Great Business Plan

Beyond formatting standards, there are specific elements that make for a standout business plan:

• Write in concise, easy-to-understand language, avoiding unnecessary fluff.
• Include all relevant documents, demonstrating attention to detail and a well-thought-out business model.
• Demonstrate apparent market knowledge through research and projections.
• Include a mission statement and unique value proposition that makes your business a market standout.

How to Write a Business Plan: 11 Steps to Success

Ready to get writing? Entrepreneurs can use this simple, 11-step process to make their dream business a reality. 

Note that this business plan format is meant for personal planning. It will need some formatting changes before it’s sent to potential investors (more on that later!). 

1. Establish Your Monthly Income Goal

First up, establish your monthly income goal. 

It may sound simple enough, but this goal will inform almost every decision you make in the future.

This short-term goal will also give you and potential investors a peak into long-term success. 

2. Describe Your Business Vision

Next, write a short section describing your business vision. This is also known as a UVP or unique value proposition.

• This is the “what” portion of your proposal. What are the basics of your business? What are you selling? What do you hope to accomplish? 
• This may also include a mission statement, the “why” in your business that makes it stand out from the competition. 

If you’re struggling to land on the right business for you, check out our posts on:

• 40 Small Business Ideas You Can Do From Home
• 24 Creative Business Ideas for Aspiring Entrepreneurs
• 17 Home Businesses You Can Start With No Money

3. Name Your Business

This will either be the easiest or the most challenging step in writing a business plan. First impressions are everything. And your business name will be your forever first impression!

• Choose a business name that best represents you and your long-term business goals. 
• Check to see if the domain is available and if there are any existing trademarks. 
• File for a DBA (Doing Business As) if you’re not using your name.

Check out this article for tips on naming your business . 

4. Establish a Legal Structure

Next, outline your business structure, both in the short and long term. Will you run your business as a:

• Sole proprietorship:  Simplest structure with one individual acting as the business
• Partnership:  Operated by two or more people with shared business responsibilities 
• LLC:  Known as a “limited liability company because members are protected from personal liabilities when it comes to the business
• Corporation:  Separate from individual members, corporations are legal entities with higher taxation and regulations but high protection of personal assets

5. Look at Certifications 

All industries require varying levels of qualification to run a business. Describe any needed:

• Permits 
• And all other certifications!

6. Consider Payment Methods

Gone are the days of cash payments. In the digital age, almost all transactions are digital.

That said, there are still plenty of payment methods to choose from. Consider one or a combination of:

• Physical payments, cash, or card
• Secure online transactions
• PayPal or other payment app
• Third-party like Etsy or Shopify

7. Product Expenses and Tracking

Before starting a new business, having an easy, thorough way to track payments is going to save you a lot of time during tax season. It’s also a necessary step in tracking and forecasting financial plans. 

In this stage of “how to write a business plan,” consider:

• How you’ll keep track of your bookkeeping
• The price of your products/services

8. Identify Necessary Permits

Depending on your business structure and industry, you may need any combination of:

• Licenses to conduct your business

Identify any necessary permits and show proof of obtaining them in your formal business plan. 

9. Decide if You Need a Business Phone or Address

Business numbers or PO boxes are necessities for some businesses. 

For example, PO boxes are used for product returns. This offers business members a level of privacy and security that wouldn’t be provided if they used their home addresses. 

PO boxes are also highly reliable and regulated, making them frequently more efficient than a physical address. 

Business phone numbers offer a similar level of privacy, allowing customers to seek direct support during business hours. 

A business number allows for accessibility, as some customers aren’t able to access online support. 

10. Consider Marketing Methods

New business owners should consider a marketing plan straight from the jump. Marketing is at the core of making any new company a success. 

Develop a clear marketing strategy, including:

• Industry trends + market analysis
• Target market + customer segments
• Industry competitors + positioning
• Advertising methods (social media, email marketing , paid advertisements, cold calling)
• Social media presence + digital marketing strategy 
• Marketing goals + key performance indicators 

11. Decide on Your Platform

Finally, decide which platform will be the bread and butter of your business. 

While you may have diverse revenues from a single business venture, you’ll need to choose one platform to run your primary website. 

Popular website options include:

• WordPress (blogging)
• Patreon (membership)
• Podia (blogging, membership, and selling courses)
• Shopify (e-commerce)
• Wix (blogging and personal website)

Each platform offers different customization capabilities and levels of online support. Some are incredibly user-friendly, while others require basic coding knowledge. 

Choose the platform that will best suit your capabilities and customization needs. 

How to Format a Formal Business Plan

While you can download my  free business plan template  to start, this is meant for personal use.

When sending a business plan to potential investors, the text needs to be a bit more formal. Here’s how to do it:

• Create a document filled with the imperative information above. 
• Frame all content as either statements or projections. 
• Omit or alter content written for personal use. 

Format Standards 

Traditional business plans all follow a strict formula. Luckily, you’ve already done all the leg work above!

Simply use your workshopped content to include the following:

• Cover page:  A minimalist cover page that represents your business, including your name, business name, proposed logo, and contact information
• Table of contents:  List all sections and included documents as a navigation aid
• Executive summary:  This is a concise, complete overview of your business plan, including key elements of opportunity and strategy
• Company description:  Describe the “what” and “why” of your business model
• Market analysis:  Share in-depth marketing analysis, including targets, trends, and growth opportunities 
• Business structure:  Ownership and legal structures
• Products/services offered:  Sharing your product and how it fills a gap in the market
• Marketing strategy:  Full strategy, including pricing, advertisement methods, and budget
• Funding request:  Amount requested, type of funding (equity or debt), and future financial plans
• Financial projections:  Include monetary forecasts such as balance sheets, income statements, cash flow statements, and expenditure budgets for the next five years. 
• Appendix:  All other necessary documents, such as legal agreements, references from industry experts, and marketing data research

More on How to Write a Business Plan

Writing a business plan doesn’t need to be daunting; it’s an opportunity to explore the possibilities of your future business. 

When tackling your business plan, follow these simple steps rather than drowning in industry jargon. 

Download my  free business plan template  to get started. And if you’re looking for more resources, check out all of our posts on  how to start a business .

What questions or suggestions do you have for writing a business plan? We would love to hear from you!

Free Business Plan Template

Would you like to start a home-based business, but you're not sure where to start?

Grab our FREE Simplified Business Plan Template , which will walk you through the questions and steps you need to take to get your business off the ground!

About the Author

Tania Griffis

Tania Griffis is a blogger and business owner who has a background in human resources, hiring, and recruiting. She's been featured on CNN and dozens of other blogs and online publications, putting her journalism degree to good use. Tania loves using a combination of creativity and business savvy to help business owners succeed through her services offered at, The Creative Wheelhouse . She is also a mama to a beautiful baby girl who keeps Tania and her husband on their toes.

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Reader Interactions

19 comments.

June 22, 2023 at 8:20 pm

Thanks for your post I have started in online wig business on hopes of making wearable products for Cancer patients mam or female but in reading your words my hopes is to open a store front so to cater one on one service is it best for me to apply for my LLC or sole proprietor??

June 26, 2023 at 6:57 am

Hi Cynthia,

It depends. They are pros and cons with each arrangement. Talking to a CPA or an lawyer can help you determine which structure is right for your situation.

All the best!

August 9, 2022 at 5:52 pm

I believe this information will help me because I’m scared to write a business plan and it’s like you said where to start first.

May 20, 2024 at 7:33 am

All the best with your business, Irene!

February 28, 2019 at 10:04 am

Hi, my name is Sheron.

I want you to help me on to draft a business plan.

March 1, 2019 at 8:01 am

If you need further assistance in writing your business, you can use this free business plan template: https://the-work-at-home-woman-llc.ck.page/e471670755

Good luck and keep me posted on your journey!

April 18, 2018 at 10:10 pm

This was a really good read. I was trying to take a few steps in creating a business plan for a golfing company I’ m planning to start with my son.

April 19, 2018 at 7:08 am

Glad you enjoyed the tips, Danny!

April 1, 2023 at 2:12 pm

Helpful. It’s good I have somewhere to start from

April 1, 2023 at 4:46 pm

Glad you enjoyed the article!

February 7, 2018 at 3:23 am

Hi my name is Billy, I understand all sections of a business plan, however I’m struggling with what I am planning on starting. I have the vision the mission everything, I’m Trying to start a Non Profit, however the Financial Section is hard to project when I cant put an exact Income on Cash flow through Fundraising, or hopeful Grants. Was wondering if anyone here has some advice on this subject. I have everything else pretty much figured

February 7, 2018 at 12:33 pm

Have you connected with a mentor on SCORE?

SCORE offers free mentorship and guidance — they are an excellent organization and will be able to point you in the right direction with your non-profit. https://www.score.org

February 8, 2017 at 2:25 pm

Creating a business plan is one of the most overlooked things when working at home. Tho many businesses do it in the offline world too. But it is easy to get sidetracked or to tell yourself what you want in your business and call it a day.

I struggled with business plans in the past and without them you really tend to slack off. Unfortunately it is something that people don’t believe until it happens too. I remember thinking to myself that I wanted a lot of traffic to my blog, had a vague idea of what I wanted to do with it and set out thinking I was going to be rich. Yeah, that didn’t work out as planned (mainly because I had no plan.)

I still am not the best planner, but I have learned through my mistakes. Great article and I cannot think of anything to add.

Glad you enjoyed the article, Dawn!

February 3, 2017 at 9:55 am

Indeed a Great Post with valuable tips. A business plan is always important, doesn’t matter in which field we are working in, we should always have a proper plan before starting our business, either offline or online, but later on, it also becomes important to refine that plan according to the results we are getting.

So regarding business plan that, you article has some great tips. It will help many including me, as I am looking to start a new online business. Hope I will succeed.

February 6, 2017 at 8:15 am

Glad you enjoyed Dawn’s post, Jenny.

May 24, 2011 at 3:09 am

Tim Berry suggested that a business plan is organic in that it should grown as your business grows.

It’s a good way of looking at it as you need to refine things as you go along and… remember that you can CHANGE the business plan.

It’s not a sacred document.

July 15, 2021 at 5:07 am

A very helpful tool in business plan writing. Kudos!

July 16, 2021 at 8:29 am

Glad you enjoyed the tips!

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Michigan Volunteer Toolkit

Build a strong volunteer program with these five key areas: identifying volunteers, recruiting volunteers, orienting volunteers, monitoring volunteer activity and retaining volunteers.

Hastings, NE  © Molly Kluver

Leading Main Street

Learn the five of these key attributes of successful Main Street leaders with insights and examples from across the Main Street America network. Published in State of Main.

Catalyst Strategies

A list of transformation strategies to guide your Main Street revitalization efforts.

Community Engagement for Main Street Transformation

Learn how to launch or strengthen your community engagement efforts, including actionable tools to put to use in your own community.

Memorandum of Understanding

Use this template to create a memorandum of understanding you can use with partner organizations.

How to Manage Risk for Main Street Organizations

An overview of non-profit insurance options from the National Trust Insurance Services.

Downtowns Matter

Ed McMahon explores the key characteristics of successful downtowns. Published in State of Main.

Cultivating Effective Leadership to Transform Communities

Insights from across the network on how to lead your Main Street program. Published in State of Main.

Debunking Myths about Main Street Boards

13 myths around non-profit board service and why you should consider volunteering for your local downtown community revitalization group. Published in Main Street Now Journal.

Engaging the Future to Preserve the Past

Learn how Main Street downtown preservation organizations can build strong youth engagement programs to support the next generation of leadership. Published in Main Street Now Journal. Written by Katelin Olson and Sue Starkweather-Miller.

The Keys to Launching a Main Street Program

Learn how Otsego, Michigan used community support and strategic visioning to launch their revitalization efforts. Published in Main Street Now Journal.

Growing Your Volunteer Program

Main Street Vineland's four-point plan for growing their volunteer program focusing on recruitment, retention, and recognition.

Youth on Main Street

Learn how youth groups give young people a chance to share what they want for downtown.

Clinton, TN

Hiring a Main Street Director

This guide provides everything you need to conduct a successful candidate search and identify a new executive director for your Main Street organization.

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June 6, 2024

Written by Dr. Nashlie Sephus, AI scientist, AWS

I'm an AWS AI scientist. Watch me show small businesses how to boost their productivity using generative AI.

5 ways generative AI is helping Amazon Bedrock users work better and faster

Here’s how AWS customers are using generative AI to streamline tasks and make work more productive, and enjoyable.

1. Create a pitch deck for investors with PartyRock, including a competitive analysis

2. PartyRock can help you draft marketing emails in seconds, in different styles for different audiences

Amazon aims to provide free AI skills training to 2 million people by 2025 with its new ‘AI Ready’ commitment

Amazon’s AI Ready initiative comes as new AWS study finds strong demand for AI talent and the potential for workers with AI skills to earn up to 47% more in salaries.

3. Write blog posts for your website with PartyRock, to spotlight your business and boost your hits with search

Watch: Amazon CEO Andy Jassy talks about our innovation in AI, faster delivery, and more

Andy Jassy sat down for an interview with CNBC's Squawk Box, sharing highlights from his 2023 Shareholder Letter published on April 11.

Here are my top tips for using PartyRock:

Start with your pain points, think about your prompts, always keep a human in the loop.

• PartyRock is free—Get started with PartyRock today. (PartyRock is not intended for users under 18.)
• To learn more about PartyRock and other AI tools, create a free AWS Educate account and get started in the AI/ML course section.